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The
ollimerct31
Volume 135
financial
Iwunick
New York, Saturday, November 5 1932.
Number 35/52
The Financial Situation
N THE eve of the Presidential election, the so largely confined to agriculture and that live stock
canvas for which has been putting such a seri- raising is the main, and it might almost be said the
embargo
on business activity, already at an un- single pursuit of the people of the State. A dispatch
ous
precedentedly low level, checking the embryonic re- from Reno to the New York "Journal of Commerce"
vival which struggled so hard to get under way with stated that the drop in prices for live stock over a
the advent of the second half of the year, there have long period, leaving the banks with loans based on a.
been the present week some new distressing and higher price level, created general weakness. Some
depressing events. The bank moratorium which has of the loans, for instance, are understood to have
been declared out in Nevada is among these. On been based on as much as $8 a head on stock which
Tuesday news came quite unexpectedly, in an Asso- to-day will bring no more than $2.50.
ciated Press dispatch from Reno, that a so-called
Thus we have a new illustration and a new manibusiness and bank holiday, extending until Nov. 12, festation of the hardships that are being experienced
had been declared throughout the State of Nevada by the agricultural classes of the country under the _
by Lieutenant-Governor Morley Griswold, acting in. steady sinking in market values of the products of
the absence of Governor Fred B. Balzar, who, it the soil. The statement of the Lieutenant-Governor
appeared, was in Washington trying to secure a loan of the State explained the difficulties which forced
for the embarrassed banks and who had instructed the closing of the banks. Pointing out the close relathe Lieutenant-Governor to take the step referred tionship existing between banking and agriculture
to. Mr. Griswold gave as a reason for calling the'
in Nevada Mr. Griswold declared: "Banks holding
"holiday" his conviction that business, banks, bank as security depreciated farm lands and live stock
depositors and the entire people of the State of - have been obliged to advance additional loans largely
Nevada would be best protected by the action. Simul- for labor, seed and taxes. Agriculture being our taneously, the account said, a reorganization of the chief source of income,all other business in the State
12 banking corporations controlled by the George is of course seriously affected by these same conWingfield interests was under way. The First Na- ditions. The situation has at last been reached where
tional Bank of Reno, it was stated, was the only • the conditions can no longer be met by ordinary
institution in Reno that did not observe the holiday. banking methods without reorganization. It has
A run by depositors had been threatened for a time become necessary to call upon the public to underin the morning, but withdrawals had subsided at stand the problem and to unite in an effort to
noon, and there were even reports that several new solve it."
deposit accounts had •been opened. Strengthened
Plainly we have here a very onerous situation
by the arrival from San Francisco of a shipment of on the part of the community to which the banks
$1,500,000, the First National, which is not a Wing- catered, entirely apart from the linking of the diffield institution, was well prepared, its directors ferent banks under a common control. And as indiannounced, to meet any emergency. All of the 12 cating how closely banking control has been concenWingfield banks, located in nine cities and carrying trated under Wingfield interests, it deserves to be
deposits of over $17,000,000, had been closed down noted that out of the four banks in Reno, three have
as had several of the 13 other banks in the State.
been under such control. The remaining Wingfield
And the inability of livestock men, hard hit by the institutions are scattered among the smaller comdepression and the drouth, during the last three munities throughout the State.
years, to meet their obligations, was in large part
Only three of the 13 banks in the State not under
responsible, the public was told, for the decision to Wingfield control appear to have availed of the moradeclare the holiday. It is always a weak point in torium; the rest remain open,though they are mostly
any banking situation to have a large number of minor units. It was pointed out in the dispatch to
banks under the control of a single interest, since the New York "Journal of Commerce" that the moradefects of management are likely to extend to the torium or holiday will create severe difficulties for
whole group even where they function as separate business men. Much business is already carried on
institutions, but in this case the trouble seems to with currency, but for larger concerns the need of
have been due to business conditions rather than the available bank cash is obvious. It is thought proboutgrowth of special banking methods, though it is able that for well known concerns whose funds are
evident there was a common policy of loaning too temporarily tied up, business will be carried on
freely on the same line of loans, which, however, is through use of open book credits. And there is some
not strange,seeing that the interests of the State are talk among merchants of forming their own informal
O
3036
Financial Chronicle
clearing organization with the purpose of clearing
their own debts while the banks are closed, though
how far this will go, or how far it will need to go, is
a matter of conjecture.
Mention is made here of all this simply to show
what hardships ensue on the suspension of banking
facilities, all the more so in the present instance,
since the community itself is laboring under such
great hardships by reason of the unfortunate condition of the live stock industry and other farming.
The fact that there should come a new eruption of
banking difficulties and to such an extent as to involve nearly all the banks in one of the smaller States
of the West has come as a great shock here in the
East, where we have been taught to believe that most
of the banking difficulties of the West were behind
us, or at least that actual bank suspensions were a
thing of the past. However, the outcropping of banking difficulties in this instance probably may be
looked upon as the aftermath attending a long trail
of previous difficulties of the same kind. Special
means have been created for dealing with such a
situation through the Reconstruction Finance Corporation, and this body is certainly actively functioning. Cognizant of this, Governor Fred Balzar has
been in Washington seeking aid for the banks, and it
is understood that he is asking upward of $2,000,000.
He has now returned to Nevada, and as showing
how anxious the Reconstruction Finance Corporation is to extend relief an Associated Press dispatch
from Reno, Wednesday, Nov. 2, stated that two examiners of the Finance Corporation had just arrived
by airplane to confer with executives of the Wingfield banks. It was observed also that with deposits
of nearly $20,000,000 tied up in the closed banks-12
Wingfield institutions and three others—merchants
throughout that section, which embraces the great
stock-raising area of the State, reported business
was proceeding on a curtailed basis. Thus we may
suppose that things will be quickly restored to the
normal, without ill effects outside of Nevada.
Nov. 5 1932
plan, without the expense and delay of a sale in
receivership.
This is a harsh proceeding, though the position of
the management is admittedly a difficult and delicate one. First the security holders were threatened
with a receivership, now the receivership has been
thrust upon them. This accomplished, a new threat
is hurled forth, namely foreclosure, with the machinery ready to put it into effect. But will the
recalcitrant security holders be any more inclined to
yield than before? Many of them are acting as a matter of principle. They object to the action of the
Commerce Commission in forcing a readjustment at
this time. It should be clearly understood that the
objection on the part of many security holders is not
to the management, nor to the plan of readjustment,
but to the action of the Inter-State Commerce Commission in compelling a readju tment of fixe,d
charges at a time of abnormally low earnings. It is
an assumption of authority by the Commission for
which no warrant can be found anywhere in the law.
Moreover, they object to their company being singled
out for that purpose.
The action of the Commerce Commission in this
case is arbitrary and high-handed, and there ought
to be enough red blood in the management or in the
security holders to resist such high-handed action.
The course of the Commission is tantamount to a
destruction of the property of the security holders.
The securities and the fixed charges which they impose and which the Commerce Commission now condemns were issued with the expre s sanction and
approval of the Commerce Commission only four
years ago. The facts on that point have been stated
so many times in these columns, and been iterated
and reiterated, that it seems like a work of supererogation to repeat them again at length so we will only
say here that in 1928 the St. Louis-San Francisco
Railway Co. submitted a plan of refinancing and
the Commission not only approved and authorized
this plan, but required, as we showed in our issue of
May 7 last, that $102,000,000 of the consolidated
OT the same degree of assurance can be felt with mortgage 41/2y
( gold bonds series A which were to
reference to the receivership for the St. Louis- be issued immediately "be sold at not less than 94%
San Francisco Railway, which has also been one of and interest." The sale, then, was consummated
the events of the week. The receivership is a friendly with great success. What do these bonds sold at 941/
2
one, established with the idea of compelling those command now? They sold down to 9 on the Stock
bondholders and stockholders who have not yet as- Exchange the present week. At the time referred to,
sented to the readjustment scheme forced upon the in 1928, the Commerce Commission also authorized
management by the Inter-State Commerce Commis- the company "to issue $49,157,000 of 6% preferred
sion,to fall in line. At the same time a notice has been stock, said stock to be offered at par and dividend
issued saying that the readjustment plan has been to the holders of common stock of record March 16
declared operative and in effect. It is pointed out 1928 at the rate of three-fourths of a share of new
that holders of about $167,000,000 principal amount, stock for each share of common stock held." This
or approximately 64% of the outstanding bonds preferred stock now sells for next to nothing, being
affected by the plan, have assented to it. The Read- down to 11/2. It is pertinent to ask whether in the
justment Managers express the belief that the failure event of foreclosure which is now threatened they
of the remaining bondholders thus far to assent has could sell any lower.
been largely due to uncertainty as to whether the
We repeat, therefore, that the action of the Complan would be carried out. The assents already re- mission is tantamount to a destruction of the value
ceived, it is stated, make it possible to consummate of the property of the security holders. And this
the plan through foreclosure sale or other proceed- action of the Commission ought to be opposed in
ings in receivership which will effectively bind all most vigorous fashion. That is the motive influencsecurity holders whether or not assenting to the plan. ing, we take it, the security holders who have failed
To provide the method whereby the plan may, if thus far to assent to the readjustment plan, and they
necessary, be so consummated the company has con- ought to be encouraged in the effort. It is possible
sented to the appointment of a receiver. Neverthe- that readjustment to a lower basis of fixed charges
less and notwithstanding these receivership proceed- may actually become necessary later on, but so it is
ings, the Readjustment Managers believe that the possible with reference to every other railroad sysplan can, and should, be carried out as a voluntary tem in the country. Readjustment, however, in none
N
Volume 135
k
Financial Chronicle
of these cases should be predicated on the basis of
present earnings. These earnings must be considered as entirely abnormal, since they are the product
wholly of bad times—so bad that no parallel to them
can be found anywhere in the past.
It should ever lie borne in mind that current
diminutive earnings are as clearly abnormal as were
the earnings of 1929 abnormal at the other extreme.
The normal level is probably somewhere between
these two extremes, but time must be left to determine that. The Reconstruction Finance Corporation was expressly devised to tide the railroads over
the intervening period of abnormally low earnings,
and especially was it the intention to prevent receiverships, whereas the policy of the Commission is
calculated to drive the roads directly into the hands
o? receivers by withholding the financial assistance
which the law was intended to extend to them during
the present critical period of low earnings and poor
credit.
Many security holders feel that the Commission
ought not to be encouraged in such destructive work,
and it must always be remembered that what is
possible in the case of one large railroad system like
the St. Louis-San Francisco may sooner or later overtake other large systems,and is sure to overtake them
if the Commerce Commission persists in its course
and if the present level of abnormally low earnings
is prolonged. In such a situation the greater part of
all the railroads in the country would in the end pass
into the hands of receivers, and in that event what
will be the situation of the savings banks and the
insurance companies which hold such large masses
of their securities? This last is the most serious
menace now confronting the country.
•
It is the Commerce Commission which is responsible for all the predicament and plight in which the
St. Louis-San Francisco security holders find themselves, and not the managers of the property, and
therefore the blame rests upon the Commission and
not upon them. Candor compels the statement that
the Commerce Commission is undoing all the good
work which it was intended to bestow upon the roads
by Congress and the Executive. Accordingly, after
the Presidential election has passed, no matter
whether Mr. Hoover or Mr. Roosevelt is chosen, one
of the first steps to be undertaken ought to be to
strip the Commerce Commission of its powers for
evil and destruction. We will repeat what we have
said many times before, that a return to enduring
trade prosperity is out of the question until the railroads of the country are once more placed firmly
upon their feet.
3037
though the difference is not great, the total this week
being $2,216,305,000 and last week having been
$2,212,391,000. In the items going to make up the
total of the bill and security holdings there are really
no changes of any great consequence, the increase
having occurred wholly in the discount holdings,
which reflect member bank borrowing. These discounts stand at $326,044,000 this week as against
$322,322,000 last week. Gold holdings have further
increased during the week, and are now $3,003,647,000 as against $2,992,623,000 last week. Member bank re.erves have been reduced during the week
from $2,411,946,000 to $2,384,097,000, and,as a consequence, deposit liabilities have also decreased. The
result altogether is that the ratio of total reserves to
deposit and Federal Reserve note liabilities combined
has moved up from 61.9% to 62.1%.
The amount of United States Government securities held as part collateral for Federal Reserve notes
decrea:ed from $451,200,000 to $439,100,000 during
the week. The amount of acceptances held by the
Reserve banks for account of foreign central banks
is a little larger this week than last week, being $38,847,000 as against $37,993,000, but this compares
with $105,470,000 on Nov.4 last year. Foreign bank
deposits are virtually unchanged at $9,888,000
against $9,852,000, but on Nov. 4 last year this item
stood at $131,431,000.
OME further reductions in corporate dividend
payments have been announced this week.
Among these may be mentioned a reduction in the
quarterly dividend on its common shares by the
Burroughs Adding Machine Co. from 20c. a share to
10c. a share, and the same reduction—that is, from
20c. a share to 10c. a share—has been made by the
Socony-Vacuum Corp. in the quarterly dividend on
its capital stock. The Pillsbury Flour Mills, Inc-,
reduced the quarterly distribution on common from
30c. a share to 15c. a share. On the other hand the
General Motors Corp., regarding whose dividends
there was some doubt, made no change from 25c. a
share on common, the amount paid at the two preceding quarterly periods. Standard Oil of N. J.
declared the usual extra dividend of 25c. a share and
the regular quarterly dividend of 25c. on its capital
stock. Drug,Inc., voted to maintain the usual quarterly payment of $1 a share on its common stock.
S
HE New York stock market this week has been
depressed and lower, though with a rally on
Friday. The decline proceeded day after day almost
without interruption until Friday. The depressing
influences were many. The commodity markets were
HE Federal Reserve statements this week dis- again weak and both wheat and cotton suffered furclose no special features except that Federal ther noteworthy declines. Wheat indeed kept tumReserve note circulation this time again shows an bling very fast, and after last week's drop to the
Ancrease, the amount of the outstanding volume of lowest level reached in centuries established sucReserve notes having risen from $2,688,871,000 cessive new low records in all time on several occaOct. 26 to $2,700,818,000 Nov. 2, and presumably this sions during the week. The December option at
has been concurrent with a further increase in the Chicago reached its lowest point last week at 441/
8c.
amount of National bank circulation outstanding. on Oct. 26, but Saturday there was a further decline
The Reserve note circulation at $2,700,818,000 Nov.2 to a low of 437
/8c., and on Monday of this week to
compares with $2,447,069,000 12 months ago, on 431/
8c. On Tuesday, Nov. 1, the price got down to
/8,and on Thursday a yet lower depth was reached
Nov. 4 1931, which latter was after Great Britain 427
/8c., with the close yesterday at 43%c. At the
had been forced off the gold standard, and this gives at 417
an idea of the inflation which has taken place in the same time cotton also continued its downward
interval since then. The volume of Reserve credit course, some of the future options selling below 6c. a
outstanding, as measured by the bill and security pound. The price for spot cotton at New York was
holdings, has also slightly increased during the week, marked down on Saturday last from 6.35c. to 6.20c.,
T
3038
Financial Chronicle
on Monday to 6.15c., and on l'uesday to 6.10c., at
which figure it remained until yesterday, when the
quotation became 6.20c. On Tuesday came the news
that a dozen banks in Nevada were in difficulties
and sought assistance from the Reconstruction Finance Corporation, and that as a temporary measure
of relief the chief executive of the State had declared a moratorium or a business and bank holiday extending until November 12 throughout the
State.
On Wednesday announcement was made that the
St. Louis-San Francisco Railway had been placed in
the hands of a receiver to force through the readjustment plan for a drastic lowering of fixed charges
as required by the Inter-State Commerce Commission. In the foreign exchange market the pound
sterling continued to rule low. There was a sharp
upward movement on Tuesday when the London market was closed, it being All Saints' Day, cable transfers on that day rising from $3.281/
4 to $3.31, and with
a further rise to $3.323
4 on Nov. 2, but with a renewed break to $3.287
/
8 on Thursday, and a range
yesterday of $3.29 3/16@$3.29%. A little greater
activity was observable in steel production, the steel
mills of the country being reported as engaged to
20% of capacity as against 1.9% last week, but the
price structure was weak and sales of a number of
products showed further concessions in quotations.
The political campaign waxed hot, both Presidential
candidates indulging in a continuous round of addresses, and this had a retarding effect both on general business and in Stock Exchange trading, no one
being inclined to make any extensive commitments
pending determination of the outcome. Betting continued strongly in favor of Mr. Roosevelt, the odds
on him at the close of the week being 4/
1
2and 5 to 1.
The bond market was also weak, at least in the case
of the low-priced issues, and particularly in the case
of railroad issues of that class. On the Stock Exchange,even though the course of prices was strongly
downward, only 10 stocks established new low levels
for the year. Call loans on the Stock Exchange
again ruled unchanged at 1%.
Trading has continued light, though running a
little heavier beginning with Wednesday. At the
half-day session on Saturday last the sales on the
New York Stock Exchange were 359,820 shares; on
Monday they were 384,760 shares; on Tuesday,
522,135 shares; on Wednesday, 1,100,790 shares; on
Thursday, 1,020,150 shares, and on Friday 969,185
shares. On the New York Curb Exchange the sales
last Saturday were 45,945 shares; on Monday, 77,135
shares; on Tuesday, 94,840 shares; on Wednesday,
151,155 shares; on Thursday, 155,250 Shares, and on
I'ri day, 142,040 shares.
As compared with Friday of last week, prices are
quite generally lower, though there are some exceptions to the rule. General Electric closed yesterday
1
2on Friday of last week; Brooklyn
at 16 against 15/
Union Gas at 76 bid against 77; North American at
27/
1
2 against 29%;Standard Gas & Electric at 15/
1
2
against 167
/
8; Consolidated Gas of N. Y. at 561
/
4
against 58; Pacific Gas & Electric at 27% against
1
4; Columbia Gas & Electric at 12% against 13%;
27/
Electric Power & Light at 71/
4 against 8½; Public
Service of N. J. at 477
/
8 against 49%; International
Harvester at 203
% against 213%;J. I. Case Threshing
Machine at 36/
1
2against 403%; Sears, Roebuck & Co.
1
4; Montgomery Ward & Co. at
at 17% against 19/
/8 against 37;
1
2; Woolworth at 367
1
2 against 12/
11/
Nov. 5 1932
Safeway Stores at 49 against 50; Western Union
Telegraph at 28% against 30; American Tel. & Tel.
at 1033% against.104%; Int. Tel. & Tel. at8% against
1
2 against 53½; United
'8; American Can at 51/
States Industrial Alcohol at 25/
1
4.against 25½;Commercial Solvents at 9 against 9/
1
4; Shattuck & Co. at
7% against 8/
1
4, and Corn Products at 501/
4
against 511/
2.
Allied Chemical & Dye closed yesterday at 72/
1
2
against 745
/
8 on Friday of last week; Associated Dry
Goods at 53% bid against 61/2; E. I. du Pont de Nemours at 33/
1
2against 34%; National Cash Register
"A" at 93% against 10%; International Nickel at 8
against 8; Timken Roller Bearing at 14/
1
2 against
141/
8; Johns-Manville at 211/
8 against 221/8; Gillette
Safety Razor at 17 against 17%; National Dairy
Products at 17% against 18; Texas Gulf Sulphur at
21% against 221/
4; Freeport Texas at 237
/8 against
23½;American & Foreign Power at 7/
1
4 against 7%;
United Gas Improvement at 177
/
8 against 18%; National Biscuit at 37/
1
2 against 38; Coca-Cola at 91
against 943%;Continental Can at 32% against 331/
8;
Eastman Kodak at 51 against 517
/8; Gold Dust Corp.
at 15% against 163%; Standard Brands at 147
/
8
against 151/
8; Paramount Publix Corp. at 2/
78
against 3%;Kreuger & Toll at 1/
4 against ½; Westinghouse Elec. & Mfg. at 25 against 27; Drug, Inc.,
at 34% against 31%; Columbian Carbon at 247
/8
against 277
/8; Reynolds Tobacco class B at 29/
1
2
against 297
/
8; Liggett & Myers class B at 56 against
58; Lorillard at 13 against 13/
1
4; American Tobacco
at 62/
1
2against 65, and Yellow Truck & Coach at 41/4
against 3%.
The steel shares are also lower. United States
Steel closed yesterday at 34% against 365
/
8 on Friday
of last week; Bethlehem Steel at 17% against 17%,
and Vanadium at 12/
1
2 against 137
/
8. In the auto
group Auburn Auto closed yesterday at 403
4 against
42% on Friday of last week; General Motors at 131/
4
against 13/
1
2; Chrysler at 137
/8 against 14/
1
4; Nash
Motors at 13/
1
2against 13½;Packard Motors at 27
/8
against 27
/8; Hudson Motor Car at 4% against 51/
8,
and Hupp Motors at 2/
1
2 against 2% bid. In the
rubber group Goodyear Tire & Rubber closed yesterday at 16/
1
4 against 153
% on Friday of last week;
B. F. Goodrich at 51/4 against 5½; United States
Rubber at 5 against 5/
1
4, and the preferred at 9/
1
2
against 10.
The railroad shares have been conspicuously weak.
Pennsylvania RR. closed yesterday at 133% against
15% on Friday of last week; Atchison Topeka &
Santa Fe at 40 against 44; Atlantic Coast Line at 21
against 21 bid; Chicago Rock Island & Pacific at 5%
against 6%; New York Central at 22 against 251/
8;
Baltimore & Ohio at 12/
1
2against 13%; New Haven
at 147
/8 against 16%; Union Pacific at 63/
1
4 against
667
/8; Missouri Pacific at 5 against 57
/8; Southern
Pacific at 17% against 21; Missouri-Kansas-Texas
at 6/
1
2against 77
/8; Southern Railway at8 against 9;
Chesapeake & Ohio at 22 against 24%; Northern
Pacific at 161/
2 against 18/
1
4,and Great Northern at
12 against 13/
1
4.
The oil shares have held up better than the rest of
the market. Standard Oil of N. J. closed yesterday
at 297
/8 against 30% on Friday of last week; Standard Oil of Calif. at 25/
1
4 against 25½; Atlantic Refining at 157
/8 against 16/
1
4, and Texas Corp. at 14
against 14. The copper group moved within narrow
limits. Anaconda Copper closed yesterday at 9
against 9 on Friday of last week; Kennecott Copper
Volume 135
Financial Chronicle
4 against 10%; American Smelting & Refining
at 103
/8; Phelps Dodge at 5% against
at 14% against 147
Cerro
de
Copper at 734 against 734,and
Pasco
5/8;
Calumet & Heela at 314 against 314.
3039
issue of 41/2% rentes was introduced in this session
2. The bonds advanced a little in,the course
at 961/
trading,
but did not maintain their gain and
of
closed unchanged. French and foreign stocks were
alike dull, and small declines predominated. The
RICE trends on the Stock Exchanges in the lead- month-end settlement was effected easily, with
ing European financial centers have been ir- money at 1/
8 of 1%. The Paris market inaugurated
regular this week, and most sessions have been ex- after the official close, Wednesday, a "Bourse du
tremely dull. All Saints Day was observed by the Soir," or Evening Stock Exchange, which opened at
closing of the London Stock Exchange, Tuesday, 2.45 P. M., when the regular trading ended, and
while the Paris *Bourse was closed both Monday and closed at 3.30 P. M. This Bourse, which will be a
Tuesday in observance of this holiday. Only the regular feature of the French market, will permit
Berlin Boerse continued its operations without in- French arbitrage firms doing business with New
terruption, among the European markets. The holi- York, to operate after the opening of the New York
days early in the week naturally affected trading Stock Exchange. Dealings on the Paris Bourse,
adversely. A favorable price tendency was estab- Thursday, showed a sharp gain and the price trend
lished on the London Stock Exchange, Wednesday, also was distinctly better. Rentes moved forward
by announcement of a £300,000,000 3% Government vigorously,stimulating other securities as well. Both
loan at a price of 971/
2. A good interpretation was French and foreign stocks were in demand. The
placed on this transaction, and prices of securities trend was irregular on the Bourse yesterday, but
were marked upward rapidly. Additional strength changes were unimportant.
was occasioned by an official intimation that the
The Berlin Boerse was quiet but confident in the
British unemployment totals for October will show a opening session, Monday. There was some hesitation
decline of about 111,000, when they are published at first, but a general buying movement developed
next week. These developments sufficed to over- and net gains of one to two points were recorded in
come the adverse effects of a strike by 200,000 cotton active issues. I. G. Farbenindustrie and United
spinners, Monday, which tied up the Lancashire Steel Works shares were especially in demand. The
industry. Trade and industrial reports from the feature of the market,Tuesday, was the start of tradContinental countries continue to reflect slight im- ing in the new tax-redemption certificates of the
provement, with prices of manufactured goods rising Government, which can be used for payment of cerin some instances. The better trend has been main- tain corporate and other taxes from 1934 to 1938.
tained especially in Germany, according to Berlin Transactions amounted to 500,000 marks, at prices
reports. All the European markets are awaiting ranging from 90 for certificates due 1934 to 71 for
the end of the American election campaign with im- 1938 maturities. The market was dull otherwise,
patience, as the belief prevails that distinct improve- with the tendency soft. The closing of other markets
ment may follow in the United States.
tended to restrict activity on the Boerse. Dealings
Business on the London Stock Exchange was Wednesday were again on a very limited scale, as
restricted in the initial session of the week, largely the impending Parliamentary elections in the Reich
as a result of the impending holiday. Some activity distracted attention from the securities market.
was registered in British funds, which reflected good Small gains and losses were noted in the active
buying, but other departments of the market were issues, with a definite trend lacking. Unsettlement
extremely dull and uncertain. Textile stocks were prevailed in Thursday's session, partly as a result
marked down, in view of the impending strike, and of a strike of employees of the Berlin traction
most other industrial issues also declined. Interna- system. Interest in stocks and bonds dropped to
tional stocks weakened in consequence of unfavor- a minimum, and small declines were recorded in
able reports from New York. The British Treasury quotations. Modest gains were recorded in light
announced its final refunding plans over the holi- trading on the Boerse yesterday.
day, Tuesday, and when the markets resumed Wednesday, they were stimulated markedly by this deEBT conversion operations of the British Govvelopment. British funds surged upward at the
ernment, designed to reduce the national debt
opening, the gains amounting to as much as 21/
2 seryice burden, have been carried to their logical
points in some issues. Industrial stocks also were completion for the time being by the call for resought, especially in the highest rated categories, demption on Feb. 1 1933, of a further £114,600,000
and a sustained advance followed on the Stock Ex- of 5% Treasury bonds, and an offering of £300,change. There was some profit-taking toward the 000,000 in 3% bonds to provide funds for cash reend, but the quotations were well maintained. The demptions on Dec. 1 and Feb. 1. Three months'
opening Thursday was a little uncertain, but im- notification was given Monday of redemption on
mediate success of the £300,000,000 Treasury loan the next interest date, Feb. 1, of £114,600,000 5%
brought new buying into the market and prices again bonds due 1935 and callable 1933. This action was
advanced. British funds overcame the early un- expected in the London market, owing to
the sucsettlement and closed with gains. Greatest advances, cessive steps recently taken by the
British Treasury
however, were recorded in industrial stocks, while for refunding or conversion of 5 and 41/2% issues
home rail issues also were in good demand. The into lower interest cost obligations. The redempinternational group was dull and lower on further tion call issued this week increases to approximately
unfavorable advices from New York. Gilt-edged '£2,352,000,000 the debt recently converted or about
issues were in demand yesterday, after early uncer- to be dealt with. It is estimated that the annual intainty. Industrial stocks also improved.
terest saving to the British Exchequer will be about
Trading on the Paris Bourse did not begin this £38,000,000. No further transactions of this nature
week until Wednesday, and the tone at the opening are now likely until 1934, when £105,000,000 4%
of that session was uncertain. The new conversion Treasury bonds may be called.
P
D
3040
Financial Chronicle
The current series of conversion operations was
started early last July, when the 5% war loan issue
of £2,086,000,000 was called for redemption Dec. 1,
holders being given the alternative of subscribing
to a 3/
1
2% issue. It was established early in October that conversions amounted to £1,920,000,000,
leaving £166,000,000 for cash payment Dec. 1. In
September the Treasury issued a call for redemption
on Dec. 1 of £140,000,000 4y2% Treasury bonds and
£13,000,000 41/2% war loan bonds, holders being
given the alternative of subscribing to a 2% shortterm issue of £150,000,000, of which £10,000,000 was
made available on cash subscriptions only, with the
cash portion subject to increase. Of these £153,000,000 41/2% bonds, holders of £68,000,000 did not
avail themselves of the exchange offer and requested
cash redemption Dec. 1. The Treasury thus finds
it necessary to provide funds in the amount of
£234,000,000 for redemption Dec. 1 of the unconverted portions of the 5 and 4/
1
2% bonds called for
that date. In addition, it will be necessary to meet,
on Feb. 1, the £114,600,000 of 5% Treasury bonds
called last Monday. Part of the needed money
already has been provided through cash subscriptions to the 2% short-term issue announced in September. To provide the remaining funds the Treasury announced late Tuesday an issue of £300,000,000
3% bonds due 1953, callable 1948. The subscription
price is 971/2, to yield about 3.23 to the earliest call
date, and the issue will proiide £292,500,000 in new
funds. Payment is to be made in installments of 5%
of par value on application, 521/2% on Dec. 1, and
40% on Feb. 1.
Nov. 5 1932
national control be established, and that the nations
negotiate pacts of mutual regional assistance. A
brief outline of the proposals was placed before the
Chamber of Deputies and M. Herriot received a vote
of confidence in which 430 Deputies supported him,
while only 20 were opposed. It was variously reported that France would ask the United States for
no new engagements, and that she would insist upon
a consultative anti-war treaty. This phase of the
French plan was discussed by the.French officials
in Paris, last Saturday, with Norman H. Davis,
American delegate to the disarmament conference,
and representatives of the United States Embassy.
Mr. Davis informed Premier Herriot, an Associated
Press dispatch said, that the United States Government would not commit itself to the use of force
in defense of the Kellogg-Briand pact. Joseph PaulBoncour, War Minister, stated the same day that the
French position is misunderstood. France, he said,
is proposing military pacts solely among the European countries, to supplement agreements already
existing. "At the summit," he added, "would be
the consultative pact, which might include all nations, even the United States, and that would tend
to assure moral and perhaps material aid to a country as victim of aggression."
In an address at Poitiers, last Sunday, M. Herriot
indicated that the Disarmament Conference once
more has reached a critical stage. "What must be
faced," he said, "is the alternative whether we can
find a system which gives to the peoples of the world
—our .own people first of all—the right to work in
peace or if we must resume that armament rivalry
the consequences Of which are not only ruin but
ISCUSSION of the disarmament problem was worse." The world is still in a state of disorder 14
resumed formally at Geneva, Thursday, when years after the end of the World War, he pointed
the Bureau of the General Disarmament Conference out. Proclaiming French willingness
to lead in the
assembled to consider further steps to be taken in fight against the fate that seetns to be overtaking
the plenary sessions and to hear the much-discussed Europe, M. Herriot stated that France
is making
French proposals. No German delegates were an appeal to the world for generosity and justice.
present when the sessions were resumed, and the "Once more we have preferred the risk of suggestion
Bureau avoided consideration of the Reich demand to the ease of postponement," he declared. The Prefor equality of status. International supervision mier also stated that France is prepared to embark
of disarniaments was discussed by the Bureau. Hugh on a freer commercial policy. If other countries are
Wilson, American Minister to Switzerland, pointed to buy French luxury products, they must also have
Out that reduction of armaments should be achieved access to French markets, he said.
before the matter of supervision is taken up, but the
Main provisions of the French disarmament plan
majority preferred to continue the conversation, and were disclosed by M. Joseph Paul-Boncour, in a long
Mr. Wilson deferred to their wishes. In a report on address yesterday before the Bureau of the General
this subject, submitted by M. Bourquin,strong meas- Disarmament Conference. The plan was based, he
ures of supervision were suggested. The Conference said, upon the same general ideas which animated
Bureau also is expected to study reports on the gas President Hoover when the proposal for a general
and germs question, submitted by Signor Pilotti of one-third reduction in armaments was made by the
Italy; on air armaments, submitted by Senor de President. The French plan amplified, perfected,
Madariaga of Spain, and on effectives, submitted organized and applied the Hoover principles accordby a group of experts. As the Bureau delegates ing to French policies, M. Paul-Boncour remarked.
gathered, however, the great question before the The plan includes, he admitted, proposals for concOnference was that of possible German participa- sultation of all Powers when war threatens, a Eurotion. The outlook in that regard was not very hope- pean security agreement, and re-establishment in
ful, as Germany ignored even the request of the Europe of a conscription system on an equal basis
League of Nations for a four-months' extension of for all nations. France will promise to reduce her
the armaments building truce.
armaments, if the security plan is realized, the War
A new French disarmament plan, promised by Minister added. The United States would be invited
Premier Edouard Herriot last week, was the subject to join the consultative agreement, and would be
of numerous informal diplomatic conversations early expected to abandon the advantages which neuthis week. Paris dispatches indicated late last week trality gives, an Associated Press report quotes M.
that M. Herriot would propose the substitution of Paul-Boncour as saying. An increase in defensive
national defensive militias for regular armies in and a decrease in offensive arms would be effected
all European countries. He also suggested, it is by the plan, which also calls for international supersaid, that the term of service be reduced, that inter- vision of armaments. An international peace army,
D
Volume 135
Financial Chronicle
under control of the League of Nations, would be in
command of all unusually powerful arms, suitable
for attack. This force, moreover, would be placed
at the disposal of a State designated as the object of
aggression. "Equal consideration for all States"
was promised by the French spokesman in all connections. Details of this plan are to be announced
next week.
WENTY recognized economists from the leading nations of the world gathered at Geneva,
Monday,to formulate an agenda for the world monetary and economic conference which is to be held
in London next year. The London conference, constituting the second phase of the Lausanne negotiations, will consider factors other than reparations
which are affecting world trade adversely. It will
be held at the invitation of the British Government,
but is a direct result of suggestions made by the
Young Plan Advisory Committee last December. A
conference of governments was proposed by the committee to consider not only reparations, but other
problems as well. The United States Government
did not attend the Lausanne gathering, which considered the purely European question of reparations,
but agreed to attend the world economic conference.
Professor Jbhn H. Williams, of Harvard University,
was appointed American delegate to the Preparatory
Committee which met at Geneva, Monday.
The sessions were opened by Joseph Avenol,
Deputy Secretary-General of the League of Nations,
who charged the experts to prepare a list of all
questions suitable for the agenda of the London conference. In view of the gravity of the world situation, the experts should prepare definitive statements wherever possible, he said, since "agreements
on certain given points would constitute a measure
of success." Dr. L. J. A. Trip, of the Netherlands,
was elected Chairman of the meeting. Two subcommittees promptly were formed, one under the chairmanship of Professor Alberto Beneduce of Italy, to
deal with monetary questions, and the other under
the direction of M. van Langenhove of Belgium, to
consider general economic matters. Professor Williams, appointed to the first of these committees, informed his colleagues, Tuesday, that the problem of
price levels could not be solved by increasing the
credit supply, or'by any purely national action. The
United States is now making the biggest experiment
of this kind ever attempted by any nation, Geneva dispatches quote him as saying. The failure of the
experiment leads to the conclusion that world factors are more important, he indicated. Leon Fraser,
Vice-President of the B. I. S., informed the meeting
Wednesday, that immediate action is necessary by
many governments for stabilizing their currencies.
The best means for general return to the gold standard is through the gold exchange standard, he declared. In a Geneva report of Wednesday to the
New York "Times," it was remarked that two prospects already stand out from the early deliberations
of the experts. One is that the committee itself is
not likely to complete its work before Christmas,
owing to the multitude of problems to be considered.
The second is that the London conference probably
will not meet before next March or April.
T
ONSIDERATION of the British unemployment
problem was started by the House of Commons
in London, yesterday, the debate having been hast-
C
3041
ened by riots of "hunger marchers" and others in
London during the fast 10 days. At the instance of
Labor members, the House speeded its action on the
Ottawa agreements bill, which passed its third and
final reading, Thursday, with a vote of 416 to 68.
The favorable division on this measure, which commits Great Britain to an Empire preference trade
policy for five years, was a foregone conclusion,
owing to the overwhelming preponderance of Conservatives in the Parliament. Although the Laborites were opposed to the Ottawa measures,they urged
hasty passage so that unemployment could be considered. This problem was given unusual prominence by the arrival in London, Oct. 27, of an "army"
of 2,000 unemployed from various parts of England,
in order to protest to Parliament against administration of the "means" test for recipients of unemployment relief. Demonstrations in Hyde Park occasioned severe fighting between mobs of London unemployed and the police.
A group of the marchers, accompanied by thousands of sympathizers, moved toward the King's palace and the official residence in Downing Street,
last Sunday, but the police forced them back after
further disorders at Trafalgar Square. A renewed
attempt at demonstrations was made Tuesday, when
20,000 unruly persons tried to force their way toward
the House of Commons, in violation of the rule that
no gatherings of this kind may be held within a mile
of the Parliament buildings. The crowd again was
turned back after brisk clashes. An official casualty
list was issued Wednesday, stating that 12 policemen and 32 unemployed had been injured in the
rioting of the previous days. The hunger marchers
finally started toward their homes, almost on the
eve of the debate on the Government's unemployment policy. It was indicated, meanwhile, that a
decrease of about 111,000 in the unemployment roster
will be shown in the official figures for October, when
they are published next Monday.
Stanley Baldwin, leader of the Conservatives and
Lord President of the Council, announced Wednesday that the Government intends to initiate sweeping
legislation to deal with the problem of able-bodied
unemployment in Great Britain. The means test is
justified and must be retained, he said, but its administration should be eased. Unemployment was the
main issue in the national election of 1929, when the
Laborites were swept into power, and the increase
of the jobless during the two following years is believed to have contributed to the defeat of the party
and the overwhelming success of the Conservatives
last year. Municipal elections in Great Britain,
Tuesday, indicate that the tide is again swinging
the other way. The Laborites made a net gain of 11
seats in 159 city councils over the high mark achieved
three years ago, when the seats contested this year
were last filled.
—4--REMIER EDOUARD HERRIOT of France
essayed a journey to Madrid, early this week,
for the avowed purpose of cementing the friendship
existing between the French and Spanish republics.
His purpose was largely frustrated, however, owing
to insistent reports that M. Herriot would seek some
form of military alliance with Spain. The rumors
aroused active resentment among the Spanish people,
and especially among the irrepressible students of
that country. At the conclusion of the visit of state,
Wednesday, the Madrid correspondent of the New
P
3042
Financial Chronicle
York "Times" reported that M. Herriot's trip was a
"distinct failure," which "weakened rather than
strengthened the link between France and Spain."
It was admitted, however, that this result was due
mainly to the bad management of M. Herriot's visit
by Spanish officials. The Spanish Foreign Minister,
Luis de Zulueta, is believed to have started the unfortunate train of rumors which attended the journey
of the French Premier. Senor de Zulueta declared
on Oct. 18 that "an entente between France and
Spain would be desirable." Despite official denials
and explanations, the belief prevailed in some Spanish circles thereafter that M.Herriotintended to seek
an understanding on concerted action between the
two countries in case of war.
M. Herriot explained his visit to Madrid last Sunday, before leaving France. "I am going simply to
convey to the Spanish nation the expression of the
friendship of France," he said. "Prejudice, malevolence and ignorance have sought to distort an act
which has no other value than its sincerity," he continued. "I desire only that the friendship of our
two republics should be a symbol and an example of
those friendships which should unite all peoples."
When the Premier arrived in Madrid, Monday, he
was greeted with the greatest cordiality by Spanish
officials. Groups of students, however, gave a disconcerting aspect to the welcome by shouting,"Down
with war," and "Death to Herriot." Law students
at the University of Madrid went on strike for the
duration of the French Premier's visit. Hostile comments on the Premier's visit found their way into
even the most conservative Spanish journals. The
round of ceremonies in which M. Herriot engaged
from Monday to Wednesday furnished a marked contrast between the affability of Premier Azana and his
associates in the Spanish Government,and the popular protests against the French "mission of imperialist war."
"Before M. Herriot made his visit France had
Spain pretty much in her pocket," the Madrid correspondent of the New York "Times" reported,
Wednesday. "The closest co-operation was observed
in Morocco and at Geneva, where Salvador de Madariaga, a friend of France, had just organized a
group of eight important nations, including Spain,
to support her. M. Herriot had been informed by
the French Embassy here and the sympathetic Spanish Embassy in Paris that the Spanish Republic
would appreciate his trip, believing it would seal a
bond of friendship, which is extremely important
in view of the fact that Italy is looking toward
Africa. The French Premier may have had the idea
that without any fixed understanding Spain would
become so tied up with France she would have to
permit French troops to pass through Spain in case
of war and would perhaps even support France. He
had *every reason for this belief, so close had relations been. However, the Spanish people, who still
remember Napoleon and do not love the French, have
shown clearly that, whatever their Government may
do, they will never consent either to troop movements through Spain or to support France in case
of trouble."
EFAULT on two Yugoslavian dollar loans aggregating $45,250,000 was announced Tuesday,
when interest and sinking fund payments due on that
date were lacking. Like other Central • European
government defaults on external loans, this one is
D
Nov. 5 1932
due to the inability of the authorities to obtain the
necessary foreign exchange for the payments. Yugoslavia attempted to overcome this obstacle by negotiating a further loan in France, but the efforts were
unsuccessful. The defaulted dollar loans comprise
$30,000,000 7% bonds and $15,250,000 8% bonds,
both issued in 1922 and due 1962. Dr. Milan Georgevitch, Finance Minister, announced the defaults
through 'bankers here, and he indicated at the same
time that the sums due had been deposited in dinars
in a special blocked account of the National Bank of
Yugoslavia. "The Government wishes to assure
holders of these bonds," he said, "that its failure
to make the present payment arises from circumstances entirely beyond its control. As a result of
the world-wide financial and economic crisis, which
has been particularly acute in Central Europe, foreign trade, tourist traffic, emigrant remittances and
other activities from which means of effecting international payments are normally derived have suffered a substantial reduction. The cessation of
reparations payments and lack of foreign capital
have further diminished the foreign balances usually
available for payments on the external debt. The
Minister of Finance is desirous of arranging such
temporary measures as can be taken during the
present abnormal period in the best interests of bondholders. The Government does not desire to impair
its obligations, but rather to find some method of
meeting the present crisis."
ATIONAL elections were held this week in Chile,
Ecuador, Honduras and Cuba. The Chilean
balloting aroused international interest, owing to
the rapid changes effected by revolutionary means
during recent months. Former President Arturo
Alessandri, candidate of the Center parties, was an
easy victor over his nearest competitor, Colonel Marmad-uke Grove,leader of the Socialist factions. Hector Rodriguez de la Sotta, Conservative, was third.
Senor Alessandri received more than 60% of the
vote, and he will be President for the next six years.
In Ecuador a triumph was registered for the Liberal
candidate, Juan de Dios Martinez Mera, -fiOlo will
continue the succession of Liberal Presidents, which
has been unbroken for 30 years. The Honduran voting resulted in the overwhelming election of the
Nationalist party ticket, headed by.General Tiburco
Carias, who will assume the executive office for a
four-year term. The opposing Liberal party slate
was headed by Dr. Angel Zuniga Huete. Parliamentary elections in Cuba, Tuesday, resulted in sweeping success for the candidates of the Liberal party,
headed by President Gerardo Machado. The national plebiscites were quiet and orderly in Ecuador
and Honduras. In Chile there were popular demonstrations for the defeated Socialist candidate, and
the police fired rifles and machine guns on part of a
crowd of his adherents. There were minor riots in
Cuba, which caused three deaths and injuries to two
persons.
N
HERE have been no changes the present week
in the discount rates of any of the foreign
central banks. Rates are 10% in Greece; 83/2% in
Bulgaria; 7% in Rumania, Portugal and Lithuania;
63/2% in Finland; 6% in Spain, Austria and Poland;
5% in Estonia; 5% in Italy and Colombia; 432%
in Hungary, Chile and in Czechoslovakia; 4.38% in
Japan; 4% in Germany, Norway, Danzig and India;
33/2% in Sweden, Denmark, Belgium and in Ireland;
T
Volume 135
Financial Chronicle
23/2% in France and in Holland, and 2% in England
and in Switzerland. In the London open market
discounts for short bills on Friday were %@.1146%,
as against 11-16@%% on Friday of last week, and
11-16@%% for three months' bills as against Y
i
A% on Friday of last week. Money on call in
London on Friday was M%. At Paris the open
market rate continues at 13/8%, and in Switzerland
at 1M%.
HE Bank of England statement for the week
ended Nov. 2 shows an increase of £19,470 in
bullion, but as circulation expanded £3,041,000,
reserves fell off £3,022,000. Gold holdings now
aggregate £140,460,423 in comparison with £121,908,804 a year ago. Public deposits decreased £18,408,000, while other deposits rose £26,645,643. The
latter consists of bankers' accounts and other accounts
which increased £25,336,228 and £1,309,415 respectively. The reserve ratio is at 37.33%, as compared
with 41.81% last week and 31.44% a year ago.
Loans on Government securities went up £11,815,000
and those on other securities £541,207. Other securities include discounts and advances which increased
£357,037 and securities which fell off £898,244. The
Bank rate remains at 2%. Below we furnish a
comparison of the various items for five years:
T
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1932
1931
1930
1929
1928
Nov. 2.
Nov. 4.
Nov. 5.
Nov. IL
Nov. 7,
E
E
Circulation a
361,472,000 358,856.922 356,463,738 358,403.000 133,935.880
7.018.000 19.877,160 19,377.205 9,526.000 17,739.332
Public deposits
137,569,460 101,144,854 90,047,095 100,367,521 99,589357
Other deposits
Bankers accounts102,671,840 60,936,340 55,532,565 61,620.909
Other accounts_ 34.897,620 40.208.514 34,514.530 38.746,612
Gov't securities
78.813.094 57.825,906 35,091,247 67,171,855 44,553,431
Other securities
29,489,559 42,841.379 26,945.752 26,570,232 39,690.497
Disc. & advances 11,593,766 10,750,890 4,459.233 8,754,012
Securities
17,535,793 32,090,489 22,486,519 19,816,220
Res've notes & coln_ 53,988,000 38,051.882 65.078,505 33.861,000 50.803.503
Coln and bunion. .140,460,423 121,908.804 161.542.243 132,266,076 164.989,383
37.33%
Prop. of res. to llab_
31.44%
59.47%
30.81%
%
Bank rate
2%
3%
6%
6%
%
a On Nov. 29 1928 the fiduciary currency was amalagmated with Bank of England
note issues, adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.
HE Bank of France statement for the week ended
Oct. 28 shows a gain in gold holdings of 232,263,210 francs. The total of gold now stands at
82,909,009,986 francs, in comparison with 64,648,226,580 francs last year and 50,807,009,985 francs
the previous year. An increase is shown in credit
balances abroad of 71,000,000 francs and a decrease
in bills bought abroad of 74,000,000 francs. Notes
in circulation show an expansion of 1,657,000,000
francs. The aggregate of circulation is now 82,205,667,470 francs, as compared with 83,638,617,190
francs a year ago and 74,786,601,350 francs two
years ago. French commercial bills discounted and
advances against securities record increases of
618,000,000 francs and 2,000,000 francs, while creditor current accounts are down 592,000,000 francs.
The proportion of gold on hand to sight liabilities
stands this week at 76.78%, as compared with 56.30%
a year ago. Below we furnish a comparison of the
various items for three years:
T
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Changes
Stains as of
for Week
Oc8. 28 1932. oa. 30 1931. oa. 81 1930.
Francs.
Francs,
Francs.
Francs.
Gold holdin3s—I00. 232.263.210 82,909,009.986 84.648.226.580 50.807.009.985
Credit bale. abed_Inc. 71.000,000 2,981,677,193 14.856,574.518 8.492.041.131
a French °annul
bffle dls00unted_580. 618.000,000 3.635.559.232 8.808.827.505 7.104,310.195
abed_ _Deo. 74.000,000 2.002,254.058 12.743,772.027 19.124,181.555
b Bins bol
2,000,000 2,763 970.015 2.711.659.721 2.770.043.428
Adv. eget. 8ecula-1no.
Note eirculatIon_Ino. 1,657.000.000 82.205.667.470 83.638,617.190 74.786.601.350
cram ourr. ace're_Deo. 592,000,000 25,782.490,824 31.181,601,224 21,468482,811
Proportion of gold
on hand to sight
0.54%
Dee.
76.78%
55.80%
52.78%
lIabIlIties
purchased in France, b Includes bills discounted abraad.
a Includes bills
3043
HE Bank of Germany in its statement for the
last quarter of October reveals an increase in
gold and bullion of 20,509,000 marks. Total bullion
is now 817,314,000 marks in comparison with 1,144,539,000 marks a year ago. Reserve in foreign. currency, silver and other coin, notes on other German
banks and other assets reveal decreases of 14,244,000
marks, 107,432,000 marks, 9,412,000 marks and 13,340,000 marks respectively. Notes in circulation is
up 206,072,000 marks, raising the total of the item
to 3,619,049,000 marks. Circulation last year stood
at 4,745,870,000 marks and the previous year at
4,674,631,000 marks. An increase appears in bills
of exchange and checks of 256,909,000 marks, in
advances of 112,781,000 marks, in investments of
49,000 marks, in other daily maturing obligations of
12,611,000 marks and in other liabilities of 27,137,000
marks. The proportion of gold and foreign currency
to note circulation went down this quarter to 26.0%,
as compared with 26.9% a year ago. A comparison
of the various items for three years is furnished below:
T
REICHSBANK'S COMPARATIVE STATEMENT.
Changes
for Week.
Oct. 31 1932. Oct. 31 1931. Oct. 31 1930.
Reichsmarks.
Reichamarks. Reichsmark:. Reichsmark,.
Assets—
Inc. 20,509,000 817,314.000 1344,539,000 2380,215.000
Gold and bullion
Of which dep. abed Unchanged.
63,351.000
87.345.000 221.376.000
Ree've in for'n cum Dec. 14,244,000 122,983,000 130,731.000 198.481.000
Bills of each. ex checksInc. 256,909.000 2,896,588.000 4.009,525.000 2,324,325.000
Silver and other coln Dec. 107,432.000 159,844.000
81.939,000 151,681.000
Notes on oth.Ger.bks_Dee. 9,412,000
2,797.000
2.572.000
5,324,000
Inc. 112.781,000 197,763.000 239,516,000 317.731,000
Advances
Inc.
49,000 362,291,000 102,884.000 102.475,000
Investments
Dec. 13,340,000 794,517,000 898,063,000 528,901.000
Other assets
Notes In circulation..me. 206,072,000 3,619,049,000 4,745.870,000 4,674,631.000
Oth.dally matur.oblig.Inc. 12,611,000 389.483.000 518.136,000 383,055.000
Other liabilities
Inc. 27,137,000 777,139,000 838,432,000 2 57,520,000
Proper. of gold & teen
1.4%
cur,to note circula'nDec.
28.0%
26.9%
50.9%
ONEY rates were unchanged this week in all
departments of the New York market. The
supply of funds remains plethoric and far in excess
of demand. Rates continued to show a corresponding
ease. Call loans on the New York Stock Exchange
were 1% for all transactions, whether renewals or
new loans. Funds were available every day in the
outside, or "street" market, where a rate of 32%
was quoted. Time loans also were dull and the
rates motionless. Both the regular compilations of
brokers' loans were published this week. The
comprehensive report of the New York Stock Exchange, covering the full month of October, showed
a decline of $55,099,384 for that period. The
tabulation of the Federal Reserve Bank of New
York disclosed an increase of $10,000,000 in such
loans for the week to Wednesday night. Gold
movements for the same weekly period at New York
consisted of imports of $1,858,000 and a net decrease
of $1,428,000 in the stock of the metal held earmarked for foreign account. Bids on a United States
Treasury bill issue of $75,000,000, due in 91 days,
were opened yesterday. These instruments were
awarded in the amount of $75,056,000, at an average
discount of 0.22%. The rate compares with a figure
of 0.20% on a similar issue, sold last week.
M
EALING in detail with call loan rates on the
Stock Exchange from day to day, 1% was the
ruling quotation all through the week both for new
loans and renewals. The time money market has
shown little progress. Rates are slightly lower, but
there is practically no demand for this class of accomodation. Rates are quoted nominally at 34%
for 30 to 90 days, Y
i% for 120 days, and 1% for five
and six months' maturity. Prime commercial paper
D
Financial Chronicle
3044
has been veryrquiet this week. There is very little
paper available and sales are limited on that account. Quotations for choice names of four to six
months' maturity are 1%@2%. Names less well
known are 23%. On some very high class paper
occasional transactions at 13/2% are noted.
HE market for prime bankers' acceptances
T
remains practically unchanged. Paper is scarce
and while there is only a moderate demand,the supply
is still short of the actual requirements. Rates are
unchanged. The quotations of the American Acceptance Council for bills up to and including three
months are N% bid, N% asked; for four months,
VI% bid, and N% asked; for five and six months,
1% bid and N% asked. The bill buying rate of the
New York Reserve Bank is I% for 1-90 days; IN%
for 91-120 days, and 13/2% for maturities from 121180 days. The Federal Reserve banks show a
trifling increase in their holdings of acceptances,
the total having risen from $33,695,000 last week to
$34,053,000 this week. Their holdings of acceptances
for foreign correspondents increased from $37,993,000
to $38,847,000. Open market rates for acceptances
are as follows:
Prime eligible bills
SPOT DELIVERY.
—180 Days— —150 Days—
BO. Asked.
Bid. Asked.
1
1
34
34
—120 Days—
BM.
ft
Asked.
Si
—90 Days— —60Days— —30 Days—
Bid. Asked.
Bid. Asked.
Bid. Asked.
Si
34
Si
Si
Prime eligible bills
Si
34
FOR DELIVERY WITHIN THIRTY DAYS.
1% bid
Eligible member banks
1% bid
Eligible non-member banks
HERE have been no changes this week in the
T
rediscount rates of the Federal Reserve banks.
The following is the schedule of rates now in effect
for the various classes of paper at the different
Reserve banks:
ruscomm RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Bt. Louis
Minneapolis
Kansas City
Dallas
Han Freedmen
Rare in
Effect on
Nov. 4.
Date
Established.
Previous
Rate.
334
234
334
334
334
334
234
334
336
334
334
214
Oct. 17 1931
June 24 1932
Oct. 22 1931
Oct. 24 1931
Jan. 25 1932
Nov. 14 1931
June 25 1932
Oct. 22 1931
Sept. 12 1930
Oct. 23 1931
Jan. 28 1932
Oet. 21 1931
294
3
8
3
4
3
334
214
4
3
4
214
TERLING exchange made a partial recovery this
S
week from the extreme lows recorded last week.
Trading is now more orderly. The market has been
exceptionally quiet as Monday and Tuesday were
holidays in Paris and at most of the European centres.
On Tuesday, Feast of All Souls, London was closed.
The range this week has been between 3.28 ®
3.32% for bankers' sight bills, compared with a range
of from 3.393/i down to 3.273/ last week. The range
for cable transfers has been between 3.283/i ®
3.32%, compared with a range of from 3.39 9-16
down to 3.273 a week ago. Sir Arthur Salter,
former director of economy and finance of the League
of Nations, who arrived in New York from England
on Wednesday, said that the slump in sterling which
characterized the market during the past three weeks
was not altogether due to seasonal pressure, but must
be attributed largely to fears aroused in foreign centres
over the British situation. Bear speculation was also
a contributing cause. "The situation in England on
the whole is a little better than most people think,"
Nov. 5 1932
Sir Arthur said. Regarding the December debt
payment due by the British Treasury to the United
States, he is reported to have said that Great Britain
can and will pay the instalment when it falls due.
But, he added, that she will not pay in the future,
because it is a physical impossibility. Well informed
sources assert that the December war debt instalment
can have no effect on sterling as the British Treasury
and the Bank of England are already well supplied
. with dollars in New York. •
An outstanding event, displaying the strength of
the British situation was the government issue on
Thursday of 000,000,000 of 3% conversion bonds.
The bonds were sold to provide funds to retire a
block of higher interest bearing securities under the
governments plan to reduce its fixed charges. The
new issue was sold completely in two hours and
twenty minutes. Part of the bond issue will undoubtedly be used for the repayment of cash maturities of the 5% War Loan on Dec. 1. The demands for cash at that time are estimated to amount
to approximately £165,000,000. The new issue
matures 1948-53. Whatever the real reasons for
the ease in the pound over the past three weeks,
and especially last week, there can be no doubt but
a great deal of money was withdrawn from the
London market by Continental banks acting for
clients. These withdrawals made an excuse for
advancing bill rates a fraction early last week. This
lack of support through foreign withdrawals was at
once rectified by the purchase of bills from the
market by the Bank of England.
It now seems again apparent to all that there is
nothing in Great Britain's domestic situation or
outlook to justify any uneasiness. Money is again
returning to London from abroad and open market
rates are displaying extreme ease. Sir Robert Horne
said one day last week that sterling exchange has
reached the level which it should naturally attain
in relation to the amount of trade now being done
with the outside world. Call money against bills
is now in abundance in London at % to N%. Two
months' bills are %to 11-16%;three months' 11-16%;
four months' 11-16 to 13-16% and six months' bills
are quoted 15-16 to 1%. Market opinion seems to
be divided as to the future course of sterling.
Some expect a rather steady tone around present
ranges until the turn of the year, when as a seasonal
matter, exchange turns in favor of London. Others
look for lower sterling before the end of the year.
But it seems hardly probable that the London
authorities will permit the rate to fall to the extreme
lows registered during the post-war period of gold
suspension previous to 1925. The low then was
touched in February 1920, when sterling fell in three
days around 3.49 to 3.18. Now the entire British
situation is immeasurably stronger and the outlook
brighter. Bankers both here' and abroad believe
that official intervention in the market will be kept
at a Minimum, especially during the period of seasonal pressure.
Foreign exchange operators find constant proof that
the Exchange Equalization Fund is fully alive. It
is clearly established that the British Treasury is on
both sides of the market, although its selling orders
are carefully concealed. If the rate displays firmness banks known to act for the Treasury sell in
the several markets, here and abroad. On signs
of too great weakness the Treasury calls for offers.
It is believed that on balance the London authori-
Volume 135
Financial Chronicle
ties are sellers, relying upon fears of a short squeeze
to prevent an excessive decline. It was stated in official quarters in London last week that the fall in
sterling will have no influence on official stabilization plans. • Nothing will be attempted in this
direction while seasonal pressure lasts, nor until there
is a much greater improvement in world economic
conditions. Most of the gold coming to the London
open market continues to be taken for shipment to
the Continent. Gold sold in the open market this
week at from 124s. 3d. to 125s. 8d. This week the
Bank of England reports an increase of £19,470 in
gold holdings the total standing at £140,460,423,
which compares with £121,908,804 a year ago.
At the port of New York the gold movement for
the week ended Nov. 2, as reported by the Federal
Reserve Bank of New York, consisted of imports of
$1,859,000, of which $1,496,000 came from Canada,
$189,000 from Mexico and $174,000 chiefly from
Latin American countries. There were no gold exports. The Reserve Bank reported a decrease of
$1,428,000 in gold earmarked for foreign account.
In tabular form the gold movement at the port of
New York for the week ended Nov. 2, as reported
by the Federal Reserve Bank of New York, was
as follows:
GOLD MOVEMENT AT NEW YORK OCT. 27-NOV. 2,INCLUSIVE.
Imports.
Exports.
$1,498,000 from Canada
189,000 from Mexico
174,000 chiefly from LatinNone
American countries
$1,859,000 total
Net Change in Gold Earmarked for Foreign Account.
Decrease: $1,428,000
The above figures are for the week ended Wednesday evening. On Thursday there were no imports or exports of the metal nor was there any
change in gold held earmarked for foreign account.
Yesterday $756,600 of gold was imported, $690,700
coming from Canada and $65,900 from Mexico;
$8,600 of gold was exported to Argentina. There
was no change in gold held earmarked for foreign
account. There were no reports during the week of
gold having been received at any other United
States ports.
Canadian exchange is relatively steady. Montreal
funds are still at a severe discount. On Saturday
last, Montreal was at a discount of 9
on Monday at 98%,on Tuesday at 93%,on Wednesday at
9%%, on Thursday at 93'%, and on Friday at
10%% discount.
Referring to day-to-day rates, sterling exchange on
Saturday last was steady in dull trading. Bankers'
sight was 3.28@3.28%; cable transfers 3.283'@
3.28%. On Monday trading was dull as most of
the Continental centres were closed, All Souls Eve.
The range was 3.283'@3.28% for bankers' sight and
3.28 5-16@3.283 for cable transfers. On Tuesday
sterling was active here and firmer, although London
was closed, Feast of All Souls. Bankers' sight was
3.28 11-16@3.30%; cable transfers 3.28%@3.31.
On Wednesday sterling was active and higher. The
range was 3.297
4@3.32% for bankers' sight and
3.30@3.32%
3 for cable transfers. On Thursday
exchange was steady but easier. Bankers' sight was
3.28%@3.299'; cable transfers 3.283/8@3.293/8. On
Friday the range was 3.29@3.29 9-16 for bankers'
sight and 3.29 3-16@3.29% for cable transfers.
Closing quotations on Friday were 3.29 9-16 for demand and 3.29% for cable transfers. Commercial
3045
sight bills finished at 3.293(; 60-day bills at 3.28;
90-day bills at 3.28; documents for payment (60
days) at 3.283
% and 7-day grain bills at 3.29 1-16.
Cotton and grain for payment closed at 3.29k.
on the Continental countries has
EXCHANGE
been steady, but rather inactive this week.
Monday and Tuesday
On
the banks and busineas
houses in Paris were generally closed owing to the
holidays of All Souls. These days were also observed
in most of the other European centres. French
francs continue exceptionally firm and ruled throughout the week at from 3.92 to 3.933i. Par is 3.92.
The unsettlement of sterling, causing a flow of funds
to Paris is largely responsible for the firmness in
francs. Neither seasonal factors nor the French
trade situation justify the present rates. Should
business and the security markets here pick up
after the elections the market expects to see weakness develop in French exchange as funds should
then leave Paris for more profitable employment
in New York. Of course, since the franc is so firmly
anchored to gold, with a great surplus of bullion
in the vaults of the Bank of France, the unit proves
a powerful magnet for the attraction of refugee
funds from many parts of the world. The Bank of
France statement for the week ended Oct. 28 shows
gold holdings at a new all-time peak of 82,909,009,986 francs, an increase for the week of 232,263,210
francs. The previous record high was 82,620,000,000 francs on Sept. 30 last. Present holdings
compare with 64,648,226,580 a year ago and with
28,935,000,000 francs when the unit was stabilized
in June, 1928. Owing to an increase in circulation
the Bank's ratio dropped during the week from
77.32% to 76.78%. Legal requirement is 35%.
Money continues easy and in great abundance in
Paris. Just recently the Department of the Seine
issued six months' notes at 1 7-10% and one year
notes at 2 7-16%.
German circles are cheered by the improvement in
the condition of the Reichsbank. Mark exchange is
of course largely nominal as the rate is under the
strict control of the Reichsbank. The German elections which take place on Sunday are not expected to
have any bearing on mark exchange, nor on German
fiscal policy, although German circles hope for an
eally return to constitutional government rather than
to rule by decree to which Germany has been so long
accustomed. If the life of the present cabinet is in
any way threated by the outcome of the elections
government by decree will be continued. The gold
holdings of the Reichsbank are now at the highest
since June 30, standing at 817,314,000 marks. Note
circulation is the lowest in years and the average
reserve ratio for October is the highest since November a year ago. The combined gold and foreign exchange reserves of the Bank now stand at 940,297,000
marks, the highest since July 7. The combined gold
and exchange reserves of the Reichsbank were at
their lowest on July 15 and July 23 when the Bank
reported gold at 754,109,000 marks and foreign
exchange at 137,549,000 marks. Most of the recent
gold acquisitions came from Russia. The last statement of the Bank reported an increase of 20,509,000
marks, all from Russia. The Bank's ratio was at its
lowest (22.4%) on July 30. On Oct. 23 the ratio was
at 27.4%, the highest reported since Nov. 23 1931,
when it stood at 27.8%. Owing to the improved outlook there is talk of a possible reduction in the
3046
Financial Chronicle
Nov. 5 1932
Reichsbank's rate of rediscount which was reduced of refugee funds from unsettled European countries.
only a short while ago, with the approval of the Bank With the restoration of confidence in other countries,
for International Settlements, from 5% to 4%. How- these funds are expected to move out. At present,
ever this talk is premature. A special Berlin dispatch seasonal factors are unfavorable to all the neutrals.
to the Wall Street Journal on Wednesday said: There is some movement of Dutch and Swiss funds
"Although the foreign exchange situation and the to Paris and now again to London which has a
small bill portfolio of the Reichsbank would permit tendency to depress current quotations. Once the
a further reduction in the Bank rate from the present elections here are over and business turns upward a
4%, the project has been given up because the movement of both Swiss and Holland funds to New
Reichsbank wishes to prevent the repayment of the York is expected to take place. This movement
old sterling credits. According to the German view, may be large enough to offset seasonal factors which
a lower Reichsbank rate would render the next stand- harden quotations for Holland and Swiss exchange
after the turn in the year. Spanish pesetas are
still discussions more difficult."
affected
ruling
ever
hardly
are
fractionally lower for no apparent reason
and
Italian lire are steady
A
exchanges.
other,
than to the dulness in this exchange
foreign
perhaps,
other
the
of
by the movements
due
statement
to
the
prolonged
Commerce
holidays in Spain during the
of
United States Department
prehas
All
tone
of
Souls.
better
There is no change in the
season
much
a
that
says
recently issued
weeks
recent
in
and
financial
economic
set-up in Spain and the
industry
and
finance
Italian
in
vailed
and points out that several factors contribute to the 'Bank of Spain shows an improved position from week
more hopeful outlook. These are the record wheat to week with gold holdings gradually but steadily
crop assuring small imports next year, a generally increasing while circulation is kept down.
Bankers' sight on Amsterdam finished on Friday
good agricultural outlook, continued improvement
rethe
and
at 40.243/2, against 40.233/ on Friday of last week;
in the gold position of the Bank of Italy
securities
cable transfers at 40.25, against 40.24, and commerItalian
duction of interest rates, strength of
cial sight bills at 40.20, against 40.18. Swiss francs
100,000,000
the
abroad, the private absorption of
governthe
closed at 19.28% for checks and at 19.29 for cable
Institute,
lire issue of the National Share
through
transfers, against 19.299 and 19.30. Copenhagen
employment
ments policy of stabilizing
checks finished at 17.183/ and cable transfers at
public works.
83.81
at
17.19, against 17.123/i and 17.13. Checks on
closed
Paris
on
rate
check
The London
of
Friday
closed at 17.393/ and cable transfers at
on
Sweden
83.57
against
week,
this
of
on Friday
last week. In New York sight bills on the French 17.40, against 17.183/ and 17.19; while checks on
centre finished on Friday at 3.93, against 3.92 11-16 Norway finished at 16.813/ and cable transfers at
on Friday of last week; cable transfers at 3.9338, 16.82, against 16.783/ and 16.79. Spanish pesetas
against 3.93, and commercial sight bills at 3.929. closed at 8.20 for bankers' sight bills and at 8.203/i
against 3.92%. Antwerp belgas finished at 13.93 for cable transfers, against 8.21 and 8.213/2.
for bankers' sight bills and at 13.933' for cable
XCHANGE on the South American countries
transfers, against 13.913/ and 13.92. Final quotasight
bankers'
still continues to be nominally quoted. There
for
23.75
were
tions for Berlin marks
no market in these currencies. All are
is
practically
in
comparison
transfers,
cable
for
bills and 23.753/
4
5.113
at
under
closed
difficulties arising from government
laboring
lire
Italian
23.77.
with 23.763' and
foreign
of
cable
transcontrol
for
5.123
exchange and foreign trade.
at
and
bills
sight
for bankers'
schillings
by
decreed
Moratoria
Austrian
several of the Southern re.
8
5.123/
and
5.11%
fers, against
practically
have
on
publics
exchange
14.103/2;
paralyzed exchange transagainst
14.103/2,
closed at
Czechoslovakia at 2.963/2, against 2.963/2; on Bucha- actions. Argentina has shown a disposition to
rest at 0.603, against 0.603.; on Poland at 11.243', .lighten the foreign exchange control recently. How2, and on Finland at 1.453/2, against ever, a severe drop in prices last week in the leading
against 11.243/
1.463. Greek exchange closed at 0.56 for bankers' export commodities of the country may result in a
sight bills and at 0.563/b for cable transfers, against temporary reversal of this attitude. Cattle prices
dropped to the lowest level since the establishment of
0.593/i and 0.60.
the packing business in Argentina. Flaxseed growers
XCHANGE on the countries neutral during are asking for the creation of a Federal board to
the war present no new features of importance. control prices.
Argentine paper pesos closed on Friday nominally
The market has been largely inactive owing to holi25% for bankers' sight bills, against 25% on Friat
European
most
in
days on Monday and Tuesday
of last week; cable transfers at 25.80, against
day
fluchave
currencies
centres. The Scandinavian
Brazilian milreis are nominally quoted 7.45
25.80.
sterling,
in
swings
the
to
owing
widely
rather
tuated
sight bills and 7.50 for cable transfers,
for
bankers'
They
up.
hooked
are
currencies
these
which
to
closed higher yesterday owing to the improvement against 7.45 and 7.50. Chilean exchange is nominally
of the pound over the extreme low ranges of a week quoted 63, against 634 Peru is nominal at 17.00,
ago. Holland guilders and Swiss francs, gold cur- against 18.00.
rencies, seem to have settled into permanently
XCHANGE on the Far Eastern countries is irregueasier grooves. Guilders are ruling close to dollar
lar and inclined to ease. The Chinese units are
while
parity, frequently dipping a shade under
low and have fluctuated rather widely this
ruling
the
par
Swiss francs have sold just a shade under
to the low rates and the swings in silver
owing
week
ago
these
while
short
greater part of the week. A
be recalled that on Wednesday of last
will
It
for
point
prices.
export
the
to
close
two units were ruling
was
silver
officially quoted at 26% cents in
week
Holland
year
in
the
earlier
while
gold from New York
of only 3/ of a cent an ounce above
price
a
York,
York.
New
New
gold
from
taking
and Switzerland were
low figure established Feb 16, 1931. Silver
Both countries have gold holdings much in excess the record
moved up 3 to 26% cents a fine ounce on Monday
of requirements and are depositories for large volumes
E
E
E
and on Tuesday went to 273/i cents. The average
quotation for the week works out around 27. Since
buying or selling exchange on China is equivalent to
a transaction in silver, the Chinese units reflect these
swings more or less. The silver market is mystified
by the present fluctuations. The transactions over
the past month or more apparently originate in China.
Japanese yen are fluctuating rather widely and in
7 of a cent to a
Monday's market the rate broke 4
compares
with the
This
cents.
21%
of
record low
closing price on Friday of last week of 22 cents and
with gold parity of 49.85. Yen closed yesterday at
2134. The easier yen rates and the fluctuations are
attributed partly to sympathetic relation of the unit
to sterling. The drop in yen since Japan went off the
gold standard in January, together with high tariffs
have made imports practically impossible in many
lines. The Japanese Finance ministry will meet the
budget deficits for 1931-32 and for 1932-33 from
bond issues rather than through increases in taxes,
Tokio announces.
Closing quotations for yen checks yesterday were
2134 against 22.00 on Friday of last week. Hong Kong
4@.22 15-16;
closed at 22%@22 15-16, against 227
Shanghai at 293
4@29 15-16 against 297
/
8@29 15-16;
Manila at 49%, against 49%; Singapore at 38%,
against 38%; Bombay at 253/
8, against 24.95 and
Calcutta at 253/8, against 24.95.
PURSUANT
to the requirements of Section 522
of the Tariff Act of 1922, the Federal Reserve
Bank is now certifying daily to the Secretary of the
Treasury the buying rate for cable transfers in the
different countries of the world. We give below a
record for the week just passed:
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
OCT. 29 1932 TO NOV. 4 1932, INCLUSIVE.
Country and Monetary
Unit.
3047
Financial Chronicle
Volume 135
Noon Buying liWe for Cable Transfers in New York.
Value In United Slates Money.
Oct. 29.
EUROPEs
Austria,schilling
.139437
Belgium, belga
mom
Bulgaria, ley
007200
Czechoslovakia, krone .029620
Denmark, krone
171207
England, pound
3,282833
sterling
014683
Finland. markka
039270
France, franc
Germany, reichemark .237623
.005971
Greece. drachma
.402067
Holland, guilder
.174250
Hungers,
. Pengo
.051185
IttaY.lifa
Norway, krone
.167546
.111710
Poland, zloty
.030133
Portugal, escudo
.005979
Rumania.leu
.081985
Spain, peseta
171700
Sweden,krona
Switzerland, franc
.192826
Yugoslavia, dinar.- ... .013886
ASIAChina308125
Chefoo tael
.302708
Hankow mei
.296093
Shanghai tael
313958
Tientsin tael
Hone Kong dollar__ .226250
Mexican dollar_ _._ .207500
Tientsin or Peiyang
.207916
dollar
.207916
Yuan dollar
.248200
India, rupee
.217250
Japan, yen
Singapore (8.8.) dollar .381250
NORTH AMER..904531
Canada. dollar
999112
Cuba, peso
Mexico, peso (silver) .312500
Newfoundland. dollar .901750
SOUTH AMER Argentina. peso (gold) .581835
.076300
Brazil, mIlreis
.060250
Chile, Peso
473333
Uruguay, Palo
952400
Colombia. peso
Oct. 31.
Noe. 1.
Nov. 2.
Nov. 3.
$
$
$
$
.139437 .139437 .139437
.138957 .139019 .139048
.007200 .007200 .007200
.029615 .029616 .029615
.171130 .171407 .172838
.139437
.139265
.007200
.029625
.171430
Noe. 4.
s
.139437
.139228
.007200
.029626
.171415
3.284041 3.295708 3.313333 3.290791 3.292708
.014550 .014718 .014500 .014633 .014468
.039263 .039276 .039288 .039319 .039315 I
.237532 .237442 .237482 .237450 .237503 i
.005917 .005833 .005844 .005854 .005823
.410917 .402028 .402267 .402571 .402496
.174260 .174750 .174250 .174250 .1742504
.051178 .051175 .051188 .051195 .051199 I
.167825 .187792 .168346 .167892 .187730
.111710 .111710 .111710 .111710 .111710
.030100 .030100 .030525 .030475 .030280
.005966 .005975 .005987 .005979 .005979 ,
.081857 .081864 .081821 .081803 .081967
.171969 .172584 .173825 .173046 .173415]
.192746 .192755 .192808 .193012 .192939
.013850 .013875 .013600 .013533 .013525
.308875
.301875
.294687
.313125
.224375
.207500
.308541 .308958 .307916 .307291
.303541 .303541 .302916 .302291
.298718 .297031 .296250 .295468
.314791 .314375 .313750 .313125
.226562 .226875 .225625 .225000
.209375 .209082 .208125 .207812
.207083
.207083
.248200
.211000
.381000
.208750
.208750
.248800
.210875
.381250
.209166
.209166
.250840
.212000
.384375
.207916
.207916
.249045
.212000
.382500
.207500
.207500
.249356
.212000
.381875
.902656
.999112
.313166
.900250
.904947 .908177
.999112 .999112
.313500 .313500
.902250 .905750
.902864
.999100
.313000
.900750
.897135
.999100
.313333
.895000
.585837
.076300
.060250
.473333
.952400
.585835
.076300
.080250
.473333
.952400
.585835
.076300
.080250
.473333
.952400
.585835
.076300
.060250
.473333
.952400
.585835
.076300
.060250
.473333
.952400
HE following table indicates the amount of gold
bullion in the principal European banks as of
Nov. 3 1932, together with comparisons as of the
corresponding dates in the four previous years:
T
Baas of-
1932.
1931.
1930.
1929.
1928.
£
121,908.804
517.185.812
52.725.700
89.867.000
58.895.000
69,656,000
73,370,000
49.220,000
11,858,000
9,118,000
6,560.000
£
161.542,243
406.458.079
101.521,350
99.048.000
57.221.000
35,459,000
37,007.000
25,583,000
13,438,000
9,565.000
8,134,000
£
132.266,076
320,407,423
103.968,750
102.597.000
55.984.000
36.893,000
29.357,000
21,348.000
13,420,000
9,584,000
8,152.000
•1
£
164.989,383
246.174,374
122.359,450
104,365.000
54.221,000
36.248.000
23,180,000
18.789,000
13,187,000
9,605.000
8.168,000
Total week 1,271,181.652 1,080,364,316
Prnv wank L287.7515.627 1.067.182.740
954,974.672
951.913.340
833.975.249
831.647.363
801.286.207
797.719.680
England-France a-Germany b
Spain
Italy
Nethlands_
Nat. Belg_
Switsland_
Sweden
Denmark
Norway..._
£
140.460,423
663.272,079
37,698,150
90,311.000
62,615.000
86,240.000
74,565,000
89.164,000
11,442,000
7,400,000
8,014,000
a These are the gold holdings of the Bank of France as reported in the new form
of statement. b Gold ho dings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year is £3,167,650.
New Devices for Preventing War.
If war could ever be abolished by agreements and
devices, the number of such undertakings and proposals that have appeared since the close of the
World War ought long since, it would seem, to have
ushered in the reign of assured and universal peace.
For maintaining peace in Europe, for example, we
have at the present time the peace treaties, together
with a League of Nations and a World Court created
specially to see that the treaties are observed; the
Locarno pacts affecting Great Britain, France,
Italy, Belgium and Germany;offensive and defensive
alliances between France and Czechoslovakia, Rumania and Poland; the Little Entente and the recent
Anglo-French entente, to the latter of which a number of other countries have adhered; a number of
pacts of non-aggression to which Soviet Russia and
several other countries are parties;the London Naval
Treaty, and the Paris anti-war pact. In addition,
the Disarmament Conference at Geneva has had
under consideration for several years a bewildering
array of projects for the reduction and limitation
of armaments, ranging all the way from complicated
technical schemes in regard to whose possible effects
the opinion of experts is divided, to Mr. Hoover's
sweeping proposal of a straight-out one-third reduction- of existing war forces. Save for a few minor
clashes, Europe has enjoyed a dozen years of peace,
but the peace has never for many consecutive months
appeared to be stable, it has become increasingly unstable during the past two or three years, and the
nations, with the exception of the former Central
Powers, are still heavily armed and nervously ready
for war notwithstanding that they have all pledged
themselves, in the Kellogg-Briand pact, to recognize
the abolition of war as an instrument of national
policy.
The newest device is the one which has just been
worked out by the Herriot Government. As outlined by M. Herriot to the Chamber of Deputies on
Oct. 28 and by Paul-Boncour on Friday to the
steering committee of the Disarmament Conference, France is prepared to accept, as of some
date yet to be determined, a short-term period
of service for all its home land forces, on condition
that other countries make a similar reduction, that
all military organizations,, such as the German
Reichswehr, which do not conform to the new plan
of organization shall be dissolved and home police
forces established according to a common plan, and
that the forces so constituted shall be subject to
international control with an obligatory right of
investigation. The Locarno pacts are to be supplemented by a series of regional pacts of which all
the European States shall become members,the pacts
to provide for a collective force, with "progressively
staggered national specialized contingents immedi-
3048
Financial Chronicle
ately available," and equipped with all necessary
war material, sufficient to deal with any aggression.
The United States is to "accord the security guaranties which they themselves have envisaged," the members of the League of Nations are to bind themselves
to fulfill all the obligations of Article 16 of the
Covenant (the Article providing for economic and
other sanctions against a member which resorts to
war in contravention of the Covenant), and arbitration of all disputes that cannot be settled diplomatically is to be obligatory.
A preliminary endorsement of the scheme in the
Chamber of Deputies by a vote of 430 to 20, and
expressions of opinion in Berlin and Washington
that it affords a hopeful basis for discussion, entitle
the Herriot plan to careful examination. On its
face the plan appears to contemplate two distinct
military forces. One comprises a group of national
standing armies, each presumably small but sufficient in the aggregate to deal with any aggressive
action, and subject to international control. The
form of control, it was reported on Tuesday, would
be a species of international general staff, a kind
of •European war council in which all countries
would be represented except Great Britain, the
latter country and the United States, it is said, being exempted from a share either in the direction of
this international force or in the contributions necessary for its maintenance. The other force would
consist of conscripts, recruited for short periods of
service, presumably less than one year, and called
into action only when the international standing
army proved insufficient. The reorganization of
the Reichswehr and its regulation according to a
general plan which took account of national needs,
might, accordingly, enable Germany to obtain
something like the arms equality that it desires.
The Chamber of Deputies, in approving the plan, approved also "the suppression by all countries of the
private manufacture of arms and the control of all
manufacture and commerce in arms and engines of
war," and while this does not appear as a part of
the plan as thus far revealed, it is perhaps to be regarded as a corollary of the international Organization and control which the plan proposes.
When we pass from the externals of the plan,
however, and examine its real significance, precisely
what is it that the Herriot Government proposes?
The suggestion of reduction of standing armies and
reliance, to a greater extent than heretofore, upon
a conscript force recruited for a short term is, indeed, a novelty, but the proposal of small national
standing armies internationally controlled is nothing more than M. Tardieu's old scheme of an international police force in another form. The States that
join in the scheme are to give up their control of the
regular armed forces which they are expected, apparently, severally to maintain, and turn the control
over to an international general staff in which all
the States are represented. Even the State police,
properly so called, are to be regulated by international agreement if they are armed and trained according to military requirements. The primary
right of a State, hitherto not challenged, to provide
for and control its own defense is here replaced by
a proposed agreement under which each State will,
to be sure, contribute its quota of troops and armament, but with an international staff empowered to
say, in any given case, whether the State needs defense and how defense shall be accorded. Only, it
Nov. 5 1932 ,
would seem, when the conscript forces are called out
would the State recover its right of initiative ad
decision, and the extent of such recovery is not clear.
As for the international general staff, its difficulties
would be multiple. The history of the World War
affords illuminating illustrations of the dissensions
which developed in the general staffs of all the
principal warring Powers, and still more in the
supreme central authority which the Allies eventually set up, but the problem of united and prompt
action would be vastly complicated with a central
body representing every European State and called
upon to deal with troubles arising among its own
members.
Not only does the Herriot scheme, as explained by
Paul-Boncour on Friday, revive the proposal of an
international force under the direction of the League,
but it also reasserts the old demand for a security
pact with the United States as one of the guarantors.
The United States, as M.Herriot has been quoted as
saying, would be expected to accord to the proposed
European arrangement "the security guaranties
which they themselves have envisaged." The reference, one gathers from explanations credited to semiofficial French sources, is to the Stimson doctrine,
first enunciated by Secretary Stimson in an address
before the Council on Foreign Relations in New York
on Aug. 8, that while the Kellogg-Briand pact does
not provide for forcible sanctions but "rests upon
the sanction of public opinion," "consultation between the signatories of the pact when faced with
the threat of its violation becomes inevitable," and
that such consultation "will take place as an incident to the unification" of public opinion. M.
Paul-Boncour, who is credited with a large share in
the formulation of the Herriot plan, was quoted on
Oct. 29 as saying that although the plan proposed
military pacts only among the nations of Continental
Europe, "at the summit would be a consultative
pact, which might include all nations, even the
United States, and that would tend to assure moral
and perhaps material aid to a country the victim
of an aggressor." At Geneva on Friday the proposed
consultation pact became an auti-war pact in which
the United States was to join, and all the members
were to give up their rights of neutrality. A summary of the plan as it was to be presented on Friday
to the Congress of the Radical Socialists at Toulouse
added the further information that the plan undertakes to define an aggressor, and includes a statement that "if the United States accepts the Capper
resolution to amend the Briand-Kellogg pact, a great
step toward the problem of the liberty of the seas will
have been achieved." Senator Capper's resolution
of last April forbids arms shipments to countries
violating the pact, and provides for the cessation of
trade and financial agreements with them.
If the Toulouse Congress endorses the new plan,
M. Herriot will be able to present it to the Disarmament Conference with at least the assurance of backing by the party which he represents, and a definitive
vote of approval may be forthcoming from the Chamber of Deputies. It seems very unlikely, however,
that the proposal will have smooth sailing. Paris
dispatches indicate pronounced opposition among
some members of the French General Staff and in
the parties of the Right, in both cases because of a
belief that it would seriously weaken the defensive
position of France. British public opinion has
shown a marked disposition of late to resist any fur-
Volume 135
Financial Chronicle
3049
terest that reasonable regulations should continue,
but that it should be applied to all alike and not
confined to the carriers. He advocated changes
in existing Federal legislation to permit railroads
to make rates and adjustments thereof to the extent
necessary to meet competition, however arising; that
the Inter-State Commerce Commission should not
be permitted to suspend rates and interfere with
the discretion of railroad management, at least so
long as the railroads are earning less than a fair
return upon the value of their properties. Railroads
should be permitted to engage in any and all kinds
of transportation upon substantially the same terms
as their competitors; and among their competitors
should be included the United States Government.
The Government should retire from the operation
of barge lines in competition with private enterprise.
It should stop improvements in inland waterways
which cannot be operated without a continuing loss
payable out of general taxation. Remedial legislation should also be applied to stop the useless expense in connection with the current valuation of
railroads and law suits for recapture of the income
alleged but not proved to have been earned.
"All common and contract carriers engaged in
interstate commerce by highway should be placed
under the jurisdiction of the Inter-State Commerce
Commission or other Federal tribunal. The same
regulations should be imposed upon them as upon
the railroads as to publishing and adhering to just
aland reasonable rates. The railroads should be
nate
lowed to perform highway service and to co-ordi
in the
the same with their rail service wherever
ds the
railroa
opinion of the management of these
the
by
tion
public can so be better served. Legisla
as
line
same
the
States should, in general, follow
should
n,
additio
in
by the Federal Government but,
distribute more equitably the cost of maintaining
and constructing highways upon the users of such
highways. To the extent that commercial vehicles
are failing to share the burden of such construction
a
and maintenance, they are currently receiving
subsidy paid at the expense either of the general
ads.
for
Railro
taxpayer or of the users of private automobiles.
Equality of Opportunity Urged
automobiles are paying
In an address before the Investment Bankers' The less expensive type of
proportion to the wear and tear
Association last week Mr. E. G. Buckland, Chair- taxes all out of
the highways. There
man of the Board of the New York, New Haven & which they impose upon
le distribution of license
Hartford Railroad, declared that the railroads are should be a more equitab
rated weight imposed
here to stay, are indispensable, will prosper with taxes based upon the concent
ded vehicles
heavily-loa
the
the return of prosperity, and have made an amazing upon the highways by
those that
by
ned
maintai
be
record in the double battle of fighting the depres- and this burden should
railroads
the
,
vehicles
sion and at the same time struggling against the operate the heavily-loaded
ed
permitt
are
they
if
burden
the
of
keen truck competition which is governed by no taking their share
trucks.
y
to operate highwa
such burdensome regulations.
"There should be relief from the burden of taxes
He pointed out that the railroads are performing
ly being paid. In the depression of 1931, the
current
a service that no other agency can perform and dotaxes paid by the railroads out of their
of
In
ratio
cally.
1931, except
ing it efficiently and economi
from the average of
on the Great Lakes, 85% of the freight was carried operating revenue was raised
to 31%; in other
by the railroads. They are meeting all the demands 5.88% for the ten-year period,
$100 earned
every
of
out
1931,
of commerce and in times of war could transport words, in the year
in
taxes. Al01
paid
ds
railroa
troops across the country in a manner that would from operation, the
operated
d
plant
was
railroa
the
of
rd
most one-thi
be impossible by any other way.
ments.
local
and
Govern
,
State
Federal
the
The most conservative investors are the savings to support
due
n
is,
of
course,
of
taxatio
burden
g
crushin
banks and life insurance companies. They have no This
are
g
ds
railroa
ly
speakin
general
that
fact
the
reason to apologize for the huge investments they to
the
upon
s
than
earning
rather
their
gross
on
taxed
have made in the railroads, but have every reason
pay.
to
ability
their
y
or
upon
propert
of
their
value
to defend them.
whereby
Mr. Buckland said the railroads are entitled to There should be some more equitable form
taxed
ly
similar
be
s
shall
agencie
rtation
all
transpo
a
"fair
for
ask
They
"equality of opportunity."
be
shall
none
field and no favor." They believe it in the public in- and at such a rate of taxation that
matter
ther proposals of concession to France in the
of the
16
Article
of
ions
obligat
of security, and the
Great
to
eful
distast
been
along
all
Covenant have
d, is
is
reporte
it
ment,
Govern
German
The
Britain.
if
the
only
but
tion,
proposi
the
discuss
to
willing
d.
concede
first
is
y
equalit
arms
for
demand
German
by
ed
present
is
A peculiarly troublesome question
the Fascist militia, a large and powerful body which
is not reckoned as formally a part of Italy's military
establishment, but which would nevertheless be a
strong reliance in the event of war. The Disarmament Conference, whose steering committee is going
on without a German delegate, will find it no easy
task to fit the Herriot plan into the various proposals which it has been considering, and more debate
and more delay are doubtless to be expected at
Geneva. If M. Herriot's recent visit to Spain turns
out to have •been a political failure, as is now reported, and Spain insists upon adhering to its traditional policy of neutrality instead of entering into
an agreement that would be of military advantage to
France, other neutrals are likely to be encouraged,
and the plan, if it is carried out at all, will fall considerably short of embracing all Europe.
So much of what has been proposed during the
past few years regarding disarmament and peace
has turned out, when examined, to depend upon ihvolving the United States in a systematic or even
obligatory policy of foreign intermeddling, that M.
Herriot cannot complain if his elaborate scheme is
looked upon in this country with some suspicion.
With the arrangements that Europe may make for
peace or security the United States is not concerned,
and it certainly should be made clear at Washington
that sympathetic interest in European proposals is
not to be interpreted as proof of willingness on the
part of this country to join in guaranteeing any nation security, or to dispense with any of the rights
of neutrality, or to limit complete freedom of action
in all international dealings. The United States
can render no better service to world peace than to
keep its own hands free.
3050
Financial Chronicle
required to bear an undue share of the support of
Government.
Nov. 5 1932
work is the good-will of an employee so highly regarded as in transportation where many lives are
at stake. Last year a single road, the Pennsylvania,
carried 79,522,936 passengers, and the mileage was
equivalent to carrying one passenger 2,920,816,796
miles.
One of the perquisites of being an officer or a
director of a railroad has not only been free transportation but at times the use of private or official
cars, affording a luxury in land travel for comfort
and convenience which has not been excelled. In
recent years the I.-S. Commerce Commission has
restricted the use of private cars to what might be
termed legitimate railroad purposes.
Railroad managers have done much to effect economy in operation in order to offset a shrinkage in
earnings. The additional restrictions as to passes
will be just one more step in the line of economy in
the interest of stockholders, many of whom are
anxiously looking forward •to the time when dividends may be resumed by some of the greatest carriers of this country.
Further Restriction of Railroad Passes.
Making further efforts to reduce expenses and to
increase passenger receipts, managers of the Eastern
lines of railroads will on Jan. 1 further curtail the
issuing of passes. Some years ago the custom among
all railroads of issuing free transportation was running riot. Politicians of importance carried annual
passes over extensive systems. Public officials, the
clergy and many newspaper men were equally
favored,and the common understanding was that the
holder of an annual pass could obtain trip transportation for any member of his family or any dependent upon request.
Practices of this kind never shrink, but naturally
enlarge until they become so obnoxious that they
must either be curtailed or abolished. One of the
greatest abuses of the free pass was the granting of
transportation to large shippers to an extent which
really amounted to rebates. Naturally the small
shippers felt that they were being discriminated
against, and they made their objections so pertinent
Container Traffic on Our Railways.
that the Inter-State Commerce Commission saw fit
It was hoped that the introduction of the container
to interfere and order drastic restrictions.
service by some of our large railway system would
s
The first blow, however, was struck by A. J. Cas- prove to be a valuable
acquisition in meeting motor
satt, when he was President of the Pennsylvania RR. truck competition. Recent
ly their use has been
Mr. Cassatt evidently saw what was coming, and he rendered unpopular by a
decision of the Inter-State
ordered passes abolished upon his road, making such Commerce Commission
regarding the rates to be
exceptions as later were sanctioned by the I.-S. Com- charged for traffic so
conveyed. Prior to July 1931,
merce Commission. For years it had been customary traffic forwarded by
container on the New York
to grant free transportation to judges, State and Central and other Easter
n railroads was charged at
municipal attorneys, members of the Legislatures, the rate of five cents
per mile for a minimum conto coroners and others, including municipal officers tainer load of two tons,
with an increase of 0.25
and councilmen. When a Governor was to be inaugu- cents for every additi
onal 500 pounds or fraction
rated trains were put at the disposal of politicians thereof, up to five tons.
The minimum charge was
for the transportation of political clubs to a State $8.25; thus a carloa
d of six containers would procapital. The extension of the favors had become so duce a minimum revenu
e of $50. This arrangement
wide that the practice grew to be a burden, and the ignored the classification
, and took no account of
railroad officials were glad to be relieved by the the value of the commod
ities shipped. But the
mandatory order of the I.-S. Commerce Commission. scheme proved to be
very successful in increasing
One of the jokes with which President Cassatt used the railroad net revenue.
to regale his friends concerned a request from the 1931, the Inter-State Comme Nevertheless, in April
rce Commission issued
President of a very short line in New Jersey. The a decision that these rates
were too low, and insisted
correspondent inclosed an annual pass to Mr.Cassatt on the introduction of a
new schedule based on the
over the road of diminutive mileage and politely net weight of the container,
such
requested Mr. Cassatt to reciprocate by issuing an lower than the contemporaneous rates to be not
third-class rates.
annual pass to the short line official over the PennThis decision has caused a huge
decrease in the
sylvania System comprising 10,897 miles of main line use of the container. In
April 1932, there was a
and 26,740 mileage of all tracks. This of course decline in the tonnage so
conveyed of 81.2% comwas an extreme case, otherwise it would not have pared with the same period
in 1931, while the revenue
been cited, but, nevertheless, the riciprocity pertain- fell by 54.1%. In July 1931,
the New York Central
ing to the issue of passes by the greater roads was Railroad handled 2,078
container loads between
very one-sided.
points in New York State, yielding
$41,886.65; by
It is not proposed to disturb the custom so far as September these figures
dropped to 223 containers
railroad employees and their families are concerned, and $6,324.38. The New
York Central is no.w applybut even here some curtailment or supervision would ing to the Inter-State
Commerce Commission for
benefit the public. Complaint is heard from com- permission to charge
reduced rates on a "per-conmuters who buy term tickets having to stand in the tainer" 'basis, with the
special object of meeting
aisles while clerks and members of their families, motor truck competition.
riding without charge, occupy seats of crowded
cars.
Railroads Earned at the Rate of Only
About
As to the trainmen, the favors which they receive
I% a Year in the Nine Month
s
Ended
regard
ed as a part of their compensation,
are
Sept. 30.
although there is no stipulation to that effect. The
Class I railroads of the United States for the
first nine
passes, essential for trainmen to reach their places months of 1932 had a net railway
operating income of
consti
work,
$202,45
tute
tie
a
6,126, which was at the annual rate of return
of friendship between emof
of
ployee and employer, and tend to hold the loyalty 1.04% on their property investment, according to reports
just
filed
by
of the trainmen to the corporation. In no line of Economics andthe carriers with the Bureau of Railway
made public on Nov. 4. In the first nine
Volume 135
Financial Chronicle
months of 1931 their net railway operating income was
$409,337,148, or 2.09% on their property investment.
Property investment is the value of road and equipment as
shown by the books of the railways, including materials,
supplies and cash. The net railway operating income is
what is left after the payment of operating expenses, taxes
and equipment rentals but before interest and other fixed
charges are paid.
This compilation as to earnings for the first nine months
of 1932 is based on reports from 167 Class I railroads, representing a total of 242,185 miles. Gross operating revenues
for the first nine months of 1932 totaled $2,363,830,088,
compared with $3,279,215,951 for the same period in 1931,
or a decrease of 27.9%. Operating expenses for the first
nine months Of 1932 amounted to $1,851,366,489, compared
with $2,524,366,240 for the same period one year ago, or
a decrease of 26.7%.
Class I railroads in the first nine months of 1932 paid
$221,213,744 in taxes, compared with $245,582,455 for the
same period in 1931, or a decrease of 9.9%. For the month
of September alone the tax bill of the Class I railroads
amounted to $23,760,919, a decrease of $2,493,985 under
September the previous year. Sixty-eight Class I railroads
failed to earn expenses and taxes in the first nine months
of 1932, of which 21 were in the Eastern, 16 in the Southern
and 31 in the Western District.
Class I railroads for the month of September alone had
a net railway operating income of $49,646,869, which, for
that month, was at the annual rate of return of 1.59% on
their property investment. In September 1931 their net
railway operating income was $55,428,260, or 1.77%.
Gross operating revenues for the month of September
amounted to $272,473,363, compared with $350,255,735 in
September 1931, a decrease of 22.2%. Operating expenses
in September totaled $189,376,913, compared with $258,201,567 in the same month in 1931, a decrease of 26.7%.
The following details are given.
Eastern District,
Class I railroads in the Eastern District for the first nine months in
1932 had a net railway operating income of $145,770,773, which was at
the annual rate of return of 1.56% on their property investment. For
the same period in 1931 their net railway operating income was $215.525.063.
or 2.32% on their property investment. Gross operating revenues of
the Class I railroads in the Eastern District for the first nine months in
1932 totaled $1,211,813,729, a decrease of 26.2% below the corresponding
period the year before, while operating expenses totaled $913,293,568,
a decrease of 27.6% under the same period in 1931.
Class I railroads in the Eastern District in the month of September
had a net railway operating income of 325,227,837, compared with $26.320,630 in September 1931.
Southern District.
Class I railroads in the Southern District for the first nine months of
1932 had a net railway operating income of $11,573,610, which was at
the annual rate of return of 0.47% on their property investment. For
the same period in 1931 their net railway operating income amounted
to $33,884,254, which was at the annual rate of return of 1.38% on their
property investment. Gross operating revenues of the Class I railroads
in the Southern District for the first nine months in 1932 amounted to
$284,013,329, a decrease of 29.5% under the same period in 1931, while
operating expenses totaled $239,923,307, a decrease of 27.4%.
Class I railroads in the Southern District for the month of September
had a net railway operating income of $4,243,018, compared with $2,123,578
in September last year.
Western District.
Class I railroads in the Western District for the first nine months in
had
a
net
1932
railway operating income of $45,111,743, which was at
the annual rate of return of 0.58% on their property investment. For
the same nine months in 1931 the railroads in that district had a net railway
operating income of $159,927,831, which was at the annual rate of return
of 2.04% on their property investment. Gross operating revenues of
the Clara I railroads in the Western District for the first nine months
period this year amounted to $868,003,030. a decrease of 29.7% under
the same period in 1931. while operating expenses totaled $698,149,614,
a decrease of 25.1% compared with the same period in 1931.
For the month of September alone, the net railway operating income
of the Class I railroads in the Western District amounted to $20,176.014.
The net railway operating income of the same roads in September 1931
totaled $26.984,052.
CLASS I RAILROADS—UNITED STATES.
%
1932.
Month of September—
1931.
Decline.
$272,473,363
Total operating revenues
$350,255.735
22.2
189,376,913
Total operating expenses
258,201,567
26.7
23,760.919
Taxes
26,254,904
9.5
49,646 869
55.428,260
Net railway operating income
10.4
Operating ratio—%
73.72
1.56%
Rate of return on prop. invest_
1.77%
-_-Months Ended •S'epl. 30—
9
2,363,830,088 3,279,215,951
Total operating revenues
27.9
1,851,366,489 2,524.366,240
Total operating expenses
26.7
221,213,744
245,582,455
Taxes
9.9
409,337,148
202,456.126
50.5
Net railway operating income_
76.98
78.32
Operating ratio--%
1.01%
2.09%
Rate of return on prop. invest
The Course of the Bond Market.
The general bond market declined steadily throughout the
current week up to Friday, on which day there was a sharp
rebound in bond prices in sympathy with the rise in stock and
commodity prices. On the decline the issues losing the
3051
most were the speculative bonds. The declines in both the
stock market and the commodity markets probably had
much to do in dampening the enthusiasm within the bond
market. All this uncertainty of the markets may be traced
to the nearness of the national election. At present the
investing public seems to be satisfied to sit on the sidelines
until after Nov. 8. Moody's price index for 120 domestic
bonds at 79.11 on Friday showed a.loss of 1.38 points for
the week. Last Friday this index was 80.49 and two weeks
ago, 81.18.
United States Government obligations moved about in a
narrow range during the week and ended on Friday little
changed from the levels of the 'preceding week. This
marking time in the government bond market can probably
be explained by reports of the disinclination of banks to
continue purchases of Government securities just before
election. The price index for eight long term Treasury
bonds finished the week at 101.31, as compared with 101.36
a week ago, a negligible change, and ).01.50 two weeks ago.
Railroad bonds were uniformly weak up to Friday.
Selling was apparently precipitated by the election uncertainty, by the downward trend of the stock market, by the
decline in carloadings, and by the appointment of a receiver
for the St. Louise-San Francisco Railway Co. High grade
bonds, as well as those of medium grade quality, and speculative issues, all were adversely affected, with the largest
declines, as usual,suffered by the last named group. Among
the high grade issues, Atchison gen. mtg. 4s, 1995, declined
from 92 to 903; Union Pacific 1st mtge 48, 1947, from
96% to 963; Delaware & Hudson 1st & ref. mtge. 4s, 1943,
from 808% to 793
4; Northern Pacific prior lien 4s, 1997,
from 8334 to 8134. In the medium grade classification,
some of the larger declines were experienced by the Pennsylvania RR. deb. 4328, 1970,from 67 to 6334; Great Northern
gen. mtge. 7s, 1936, from 70 to 67; Southern Pacific deb.
434s, 1968, from 50 to 473/2. In the speculative group
price declines from 2 to 5 points were numerous. Illinois
3
4s, 1966, declined 48% points from 39%
Central deb. 43
to 3534; Missouri Pacific 1st & ref. mtge. 58, 1977, 23%
points from 29 to 268%, and Southern Railway dev. & gen.
/s points for
mtge. 4s, 1956, from 273A to 2434, a loss of 27
the week. The price index for the railroad group was
71.57 on Friday, as compared with 73.45 a week ago, and
74.25 two weeks ago.
The utility bond market has been a rather dull affair all
through the week with the exception of Friday, such changes
as took place being in relatively small volume and generally
on the down side. The best grade bonds resisted declines
pretty well and such issues as Buffalo General Electric
434s, 1981, Public Service Electric & Gas 4s, 1971, West
Penn Power 4s, 1961, could be found close to their tops for
the year. Lower grade issues were quick to develop weakness and outstanding softness was exhibited by Southwestern Associated Telephone 5s, 1961, American Power &
Light 6s, 2016, Gatineau Power 6s, 1941, and United
Light & Railways 6s, 1973. Special developments in the
utility group were lacking, the rumor of certain necessary
financing being the only news of importance. The price
index of 40 public utility bonds computed by Moody's
was 83.85 on Friday, 85.23 the week previous and 86.12
two weeks ago.
The industrial bond list as a whole declined fractionally
through the week to Friday, on which day there was a
sizable recovery in the prices of bonds in this group. Issues
of Aaa and Aa calibre continue in good demand. Several
special situations in the medium grade and speculative groups
experienced severe reactions to lose most of their September
gains. In spite of poor third-quarter results currently being
issued, maintenance of the moderate improvement in the
steel industry scored in September has held these issues
steady. Rubber bonds were off a point or two, non-ferrous
metal issues fluctuated irregularly. Oils were firm to
higher. Hog price declines in the closing days of October
caused moderate selling and fractional weakness in meat
packing bonds. Fresh weakness appeared in the amusement
group. Other weak features were G. R. Kinney 7%s, 1936,
off some 30 points to 51; Purity Bakeries 5s, 1948, which
declined 9 points to 55 on a poor September quarter report,
and United Drug 5s, 1953, which sold down 234 points to
50. Moody's industrial bond price index was 82.74 on
Friday, as compared with 83.60 a week previous and 83.97
two weeks ago.
The trend of the foreign bond market during the current
week has been unchanged to slightly downward. The
default of Jugoslavia on its external loans during the week
3052
Financial Chronicle
Nov. 5 1932
because of its inability to obtain the necessary foreign exchange, had no apparent effect on the foreign group. Among
those issues to remain practically unchanged were Argentine
and Australian bonds, Scandinavian, Belgian and Polish
issues as well as the direct and indirect governmental obligations of Germany and the Japanese Empire. German
corporation, municipal and State issues also showed relatively few changes for the week, except the Dresden 7s,
which dropped some 10 points. Estonia and Finnish bonds,
on the other hand, declined slightly, as did Colombian and
Brazilian issues. A rather pronounced weakness was exhibited by Uruguayan obligations, the Ercole Morelli 6%s,
and the Isarco Hydro-Electric 7s, the latter two declining
some 5 points. Price appreciation was limited to a few
issues such as the City of Montevideo (Uruguay) and the
external 6s of the City of Vienna, which latter regained most
of the 5 points lost the previous week. The foreign bond
yield average on Friday was 10.30%, as compared with
10.20% a week ago, and 10.09% two weeks ago.
The municipal bond market continued its steady tone
throughout the week, although a number of declines were
reported. Short-term issues were scarce.
Moody's computed bond prices and bond yield averages
are shown in the tables below:
MOODY'S BOND PRICES.*
(Based on Average Yields.)
MOODY'S BOND YIELD AVERAGES.?
(Bleed on IndMdual Closing Prices.)
8
1
5
Feb. 26
19
11
5
102.30
101.47
100.49
100.33
99.68
99.36
98.73
96.70
95.18
94.29
93.28
91.81
90.83
90.13
90.27
90.55
90.13
89.04
86.64
89.45
92.10
93.26
93.86
94.58
92.82
92.88
94.58
96.70
96.70
97.62
95.63
94.29
93.70
91.67
91.81
92.25
93.40
93.70
102.30
85.61
106.96
87.96
Ian. 29
22
15
Sigh 1932
Low 1932
Sigh 1931
Low 1931
Year Agolov.
.4 1931
75.61 95.63
Two Years Agogoy. 1 1930
94.73 105.20
78.44
77.66
76.78
77.22
76.89
76.67
75.61
72.26
68.67
67.42
63.27
60.16
58.73
58.52
59.36
59.94
59.80
58.04
56.12
58.52
60.31
63.19
65.62
67.07
66.64
67.07
71.29
73.45
73.85
75.29
73.35
72.26
71.77
69.77
70.62
70.52
72.06
73.15
78.55
54.43
92.97
59.87
72.26
94.14
S
1901 24
17
10
3
May 28
21
14
7
AM 29
23
15
8
1
Mar. 24
18
11
82.50
82.14
80.84
81.78
81.18
80.95
80.14
76.67
72.26
70.43
66.98
64.71
62.87
62.48
63.27
63.90
63.11
60.97
59.01
62.02
63.98
66.55
68.40
69.86
68.49
67.07
71.67
74.88
75.61
77.55
75.82
74.67
74.46
72.16
72.65
73.95
74.36
74.77
82.62
57.57
93.55
62.56
8
5
July 29
22
15
101:31
101.47
101.81
101.81
101.81
101.64
102.14
102.14
102.30
X 322.20g20MMMnOt. M
1
WeeklySept. 30
23
16
9
2
Aug. 28
19
12
80.49
80.37
81.18
81.42
81.78
81.90
82.50
82.50
82.62
76.03
76.03
76.46
76.78
76.89
76.89
77.11
77.11
76.89
77.33
77.55
77.66
77.55
77.66
77.33
77.22
77.33
77.22
77.22
76.78
Stock
76.78
76.78
77.33
77.33
77.77
77.88
78.32
78.55
78.44
1A4.17:14w414w4..gwg.9.41pg.
.49FITHE!!!
mao tsgo
s
7
6
a
4
3
101.64
101.47
101.64
101.64
101.64
101.81
101.64
101.47
101.47
101.81
101.81
101.64
101.81
101.97
101.81
101.81
101.81
101.64
101.64
101.47
v""'xIlm.L1441;42.V51 rAllicga:gggi
.0
25
24
22
21
20
19.18
17
15
14
13
12
11
10
79.11
78.99
79.45
80.03
80.14
80.37
80.49
80.26
80.37
80.84
81.07
81.18
81.18
81.30
81.07
80.95
81.07
80.95
80.84
80.37
OVV4CoMMn
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Nov. 4
3
2
1
Oct. 31
29
28
27
26
et11
120
120 Domestics by Baling*.
Domestie.
daa.
de.
d.
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0-40
1932
Daily
dreragm.
120 Demesnes
by Groups
BR.
P. U. Indus.
82.74
82.50
82.99
83.23
83.23
83.60
83.60
83.60
83.60
83.97
83.85
84.10
83.97
84.10
84.10
83.97
83.85
83.72
83.72
83.48
71.57 88.85
71.57 83.85
72.16 84.22
72.85 84.85
73.05 84.97
73.25 84.97
73.45 85.23
72.85 85.23
72.96 85.35
73.55 85.74
74.05 86.12
74.15 86.12
74.25 86.12
74.36 86.25
73.85 86.25
73.75 85.99
74.05 85.99
74.15 85.74
73.95 85.61
72.95 85.61
go Clos ed
73.25 85.48
73.25 85.23
74.25 86.25
74.67 86.64
75.09 86.77
75.50 87.04
76.57 87.30
76.57 87.43
76.89 87.56
83.48
83.35
83.85
83.72
83.97
83.97
84.22
84.10
83.97
76.67
76.46
74.88
76.25
76.14
76.25
76.35
71.38
65.45
64.15
59.87
56.32
54.86
54.73
65.61
56.32
55.61
52.47
49.53
52.24
54.55
57.64
59.94
62.58
60.82
59.29
64.80
70.15
71.19
73.85
72.95
71.67
71.77
69.31
70.15
70.71
72.06
72.16
78.99
47.38
95.18
53.22
87.43
86.77
85.61
86.51
85.74
85.87
84.85
81.66
77.55
75.82
73.05
72.16
69.40
69.13
69.59
70.52
69.68
68.58
66.73
71.09
72.95
74.46
75.92
76.68
74.98
71.87
77.55
80.72
81.07
83.35
81.42
79.68
79.58
77.11
77.44
77.66
80.14
81.54
87.69
63.21
96.85
73.55
83.85
83.72
82.74
83.23
82.14
81.18
79.45
77.68
74.77
72.26
69.81
67.25
65.96
65.12
66.04
66.21
65.62
63.90
63.35
85.29
66.64
79.40
70.90
71.48
71.00
71.38
73.55
74.57
74.98
76.14
73.55
72.75
72.45
70.62
70.71
70.81
71.48
71.19
84.22
82.02
90.55
63.74
69.96
85.48
72.75
95.78
96.54
91.87
dll
1932
120
Daily
Domes
Averages. Sc.
Nov. 4-- 6.29
3__ 6.30
2._ 6.26
1__ 6.21
Oct. 31_ 6.20
29._ 6.18
28._ 6.17
27.. 6.19
26._ 6.18
25._ 6.14
24__ 8.12
22_. 6.11
21._ 6.11
20._ 6.10
19._ 6.12
18__ 6.13
'17-- 6.12
15.- 6.13
14__ '6.14
13__ 6.18
12__
11._ 6.17
10._ 6.18
8._ 6.11
7-- 6.09
6__ 6.06
5-- 6.05
4__ 6.00
3__ 6.00
1__ 5.99
Weekly
Sevt.30-- 6.00
23._ 6.03
16__ 6.14
9__ 6.06
2.._ 6.11
Aug.26__ 6.13
19__ 6.20
12__ 6.51
5__ 6.94
July 29._ 7.13
22.. 7.51
15._ 7.78
8__ 8.01
1._ 8.06
June 24._ 7.96
17._ 7.88
10._ 7.98
3__ 8.26
May 28.. 8.53
21-- 8.12
14._ 7.87
7._ 7.56
Apr. 29._ 7.35
22__ 7.19
15._ 7.34
8._ 7.50
1._ 7.00
Mar.24... 6.88
18._ 6.81
II__ 6.43
4.. 6.59
Feb. 26.. 6.71
19._ 6.72
11._ 6.95
5._ 6.90
Jan. 29.. 6.87
22._ 6.73
15._ 6.69
Low 1932 5.99
High 1932 8.74
Low 1931 5.17
High 1931 8.05
Yr. Ago.
Nov.4 '31 6.61
2 Yrs.Ago
Nov.1 '30 5.09
120 Domestics by Ratings.
daa.
do.
4.65
4.66
4.65
4.65
4.65
4.64
4.65
4.66
4.66
4.64
4.64
4.65
4.64
4.63
4.84
4.64
4.84
4.85
4.65
cm
5.60
5.59
5.57
5.57
5.56
.5.54
5.55
5.56
5.55
5.52
5.50
5.49
5.50
5.51
5.52
5.53
5.50
5.49
5.52
5.58
4.67
4.66
4.64
4.64
4.84
4.65
4.62
4.62
4.61
d.
Bus.
120 Domestics
by OrMM.
BB.
x
40
ForP. U. Indus. signs.
5.98
6.00
5.96
5.94
5.94
5.91
5.91
5.91
5.91
5.88
5.89
5.87
5.88
5.87
5.87
5.88
5.89
5.90
5.90
5.92
10.30
10.27
10.18
10.16
10.17
10.21
10.20
10.24
10.26
10.20
10.22
10.18
10.09
10.06
10.02
9.98
9.92
9.93
9.97
10.00
5.55
5.57
5.54
5.52
5.49
5.47
5.44
5.44
5.45
6.57
8.34
7.01
5.89
6.57
8.39
7.01
5.89
6.53
8.27
6.95
5.86
6.50
8.12
6.88
5.81
6.49
8.09
6.86
5.80
6.49
8.06
6.84
5.80
6.47
8.02
6.82
5.78
6.47
8.06
6.88
5.78
6.49
8.03
6.87
5.77
6.45
7.95
6.81
5.74
6.43
7.91
6.76
5.71
6.42
7.87
6.75
5.71
6.43
7.87
6.74
5.71
6.42
7.85
6.73
5.70
6.45
7.87
6.78
5.70
6.46
7.88
6.79
5.72
6.45
7.90
6.76* 5.72
6.46
7.91
6.75
5.74
6.46
7.91
6.77
5.75
6.50
8.00
6.87
5.75
Stock Exchan go deed
6.50
7.97
6.84
5.76
6.50
7.99
6.84
5.78
7.80
6.74
6.45
5.70
6.70
5.67
6.45
7.75
7.71
6.66
5.66
6.41
6.62
5.64
6.40
7.67
6.52
6.38
7.58
5.62
8.34
7.59
6.52
5.61
7.56
6.49
6.35
5.80
5.92
5.93
5.89
5.90
5.88
5.88
5.86
5.87
5.88
9.96
10.00
9.95
9.99
9.90
9.91
9.86
9.93
9.98
4.61
4.66
4.72
4.73
4.77
4.79
4.83
4.96
5.06
5.12
5.19
5.29
5.38
5.41
5.40
5.38
5.41
5.49
5.67
5.46
5.27
5.19
5.15
6.10
5.22
5.23
5.10
4.98
4.96
4.90
6.03
5.12
5.16
5.30
5.29
5.26
5.18
5.16
4.61
5.75
4.34
5.57
5.46
5.50
5.58
5.56
5.61
5.57
5.69
5.89
6.15
6.26
6.40
6.53
6.70
6.69
8.59
6.50
6.54
6.82
6.81
6.48
6.31
8.13
6.05
5.99
6.13
6.24
6.00
5.85
5.82
5.74
5.92
6.04
6.08
6.23
0.17
6.12
5.96
5.97
5.44
7.03
4.65
6.57
6.35
6.42
6.50
6.46
6.49
6.51
6.61
6.94
7.32
7.46
7.96
8.37
8.57
8.60
8.48
8.40
8.42
8.67
8.96
8.60
8.35
7.97
7.67
7.50
7.55
7.50
7.04
6.82
6.78
6.84
6.83
6.94
6.99
7.20
7.11
7.12
6.96
6.85
6.34
9.23
5.21
8.41
5.03
5.64
4.44
4.70
7.59
7.53
7.76
7.49
7.57
7.65
7.08
8.24
9.20
9.67
10.48
10.94
11.39
11.53
11.38
11.23
11.63
12.05
12.67
11.94
11.58
10.95
10.52
10.16
10.46
11.02
9.86
9.07
8.89
8.42
8.58
8.74
8.63
9.05
902
8.98
8.80
8.78
7.41
12.96
6.34
11.64
8.51
6.53
6.68
6.55
8.56
6.55
6.54
7.03
7.69
7.85
8.41
8.98
9.16
9.18
9.04
8.93
9.04
9.58
10.10
9.60
9.21
8.73
8.40
8.05
8.28
8.49
7.77
7.16
7.05
6.78
6.87
7.00
6.99
7.25
7.16
7.10
6.96
6.95
6.30
10.49
5.06
9.43
5.81
5.66
5.75
5.68
5.74
5.73
5.81
6.07
6.43
6.59
6.88
6.95
7.24
7.27
7.22
7.12
7.21
7.33
7.54
7.06
6.87
6.72
6.58
6.50
6.67
6.98
6.43
6.15
6.12
5.93
6.09
6.24
6.25
6.47
6.44
6.42
6.20
6.08
5.59
7.68
4.95
6.81
5.89
5.90
5.98
5.94
8.03
6.11
6.26
6.42
6.69
6.94
7.25
7.48
7.26
7.73
7.62
7.60
7.87
7.88
7.95
7.71
7.55
7.24
7.08
7.02
7.07
7.03
6.80
6.71
6.67
6.66
6.81
6.89
6.92
7.11
7.10
7.09
7.02
7.05
5.811
8,11
5.38
7.90
9.98
10.08
10.48
10.33
10.92
10.99
11.19
11.30
11.53
11.73
12.09
12.18
12.13
13.75
13.92
14.30
14.76
15.29
15.28
14.82
14.03
14.10
13.70
18.31
13.39
13.23
12.77
12.68
12.62
12.31
12.58
12.82
12.86
13.23
13.00
18.22
13.12
18.80
9.86
18.83
6.57
16.58
6.94
8.83
7.18
5.76
6.89
11.37
5.13
6.10
5.02
4.97
5.30
6.86
•Nom-These prices are computed from average yields on the basis of one "'blear bond (49(% coupon. maturing In 31 years) and do not purport to show
el her the
average ,evel or the average movement of actual price quota ions. 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.
I The last Complete list of bonds used in computing these Indexes was published In the 'Chronicle" on Oat. 1 1932. Page 2228. For Moody's index
of f.onsi
prices by months back to 1920, refer to the "Chronicle" of Feb. 6 1032. page 907.
a Revised back to Sept. 19. Other figures are as follows: Sept. 22, 1021; Sept. 21, 1031; Sept. 20, 1039, and Sept. 19, 1010.
Indications of Business Activity
THE STATE OF TRADE-COMMERCIAL EPITOME.
Friday Night, Nov. 4 1932.
General trade and speculation have been very quiet
during the past week with a general disposition to mark
time until the election is out of the way. In spite of this
pre-election apathy and partial stagnation, however, the
underlying situation shows continued strength and the
feeling appears to be growing that after Nov. 8 the country
will settle down to the real work of recovery again. As far
as the speculative markets are concerned the week has
been one of dullness, with a marked declining tendency, but
to-day sharp rallies in stocks, grain and cotton following
the receipt of Owen D. Young's speech in the Presidential
campaign indicated an oversold condition.
Many reports from different parts of the South state that
cotton mills are running on a full schedule both day and
night as has been the case with some of them for many weeks
past. The heavy industries, however, remain dull although
there has been a small but steady increase in steel output
which is holding at about 20% of capacity. Increasing
demands from railroads for repairs and buying by such motor
companies as are venturing to put out new models are the
Volume 135
Financial Chronicle
apparent reasons for the steadiness. The output of pig iron
has increased slightly but is still far below normal. Supplies
of grain and cotton are very large and this is also true in
the case of many other commodities. The price of wheat
in Argentine has been steadily declining and Russia is beginning to export wheat more freely to England. Although
there has recently been some export trade from this country
in hard winter wheat it was small in volume and has dwindled
to practically nothing.
On the 3rd all official records of the Chicago Board of
Trade were broken when December wheat sold down to
41 8c. While corn followed wheat downward to some
extent the tone was firmer with export sales of 500,000
bushels. To-day it was reported that Germany is expected
to negotiate soon for the purchase here of all or part of
20,000,000 bushels as the low price prevailing enables our
corn to compete with that from the Argentine. There has
been more steadiness shown in coffee, the monthly sale of
62,500 bags of Farm Board holdings brought higher prices
than had been expected and supplies here are approaching
the normal. The decree issued by President Machado of
Cuba, fixing the 1933 sugar crop at 2,000,000 tons caused
a sharp advance in raw sugar. Rubber has declined even
when decreased exports from producing countries were
announced. However, supplies are abundant and demand
none too satisfactory. Retail trade has lagged and while
shoe manufacturing continues busy catching up on old
orders as it has for some time past, new business is light.
Hides have been active but the overshadowing influence of
declining stock and commodity markets has weakened
prices. The motor industry remains quiet, with a marked
reduction in new car sales for October. Many plants have
closed their assembly Imes temporarily and there is little
disposition to make any definite announcement as to the
character of new modds until retailers have had an opportunity to clear out their current inventories. Stocks of
monetary gold showed a gain of $9,000,000 for the week
ended Nov. 2 and there were only 22 bank closings last
week as against 79 for the corresponding period labt year.
Meanwhile the election with its controversies which have
been unusually keen this year, will soon be passed and
industry will be able to plan for the future without the
necessity of taking into consideration quite so many cross
currents. Wheat ended 17A to 2%c. lower for the week.
Corn was He. lower to 3.4c. higher; oats unchanged to lc.
higher; rye, 13'3 to 13o. lower, but lard was 12 to 17 points
higher. Coffee rose 1 to 7 points and sugar 3 to 6. Cotton,
was 10 to 13 points lower,rubber 19 to 22 points,cocoa6 to
9 points, silk 3 to 4 and silver 18 to 25 points. Hides were
5 points lower to 20 points higher.
As to the stock market on Oct. 29 stocks were somewhat
higher e.irly in the session on week-end covering but declined
later as wheat prices broke to new lows and the general
market ended lower, especially for industrials. Total
transactions were only 359,820 shares. On Oct. 31 the
trading in stocks was the smallest in eight years. The total
volume fell off to 384,700 shares with an average decline of
3 points, the latter on the industrials. Bonds showed
3.4 to %
an irregular decline in the lightest trading in four years.
Foreign issues were steady. Wall Street was still marking
time. On the 1st inst. stocks were again dull and lower
with transactions in 522,400 shares and wheat and other
commodities lower. On the 2nd stocks fell 1 to 3 points and
domestic bonds 1 to 6. The volume of trading rose to 1,100,000 shares. Bond sales were $7,390,000. The regular
quarterly dividend of the General Motors Corp. was declared
but Wall Street was in no mood to make much of this. Preelection selling was the principal feature so far as anything
could be in such a dull market. The St. Louis & San
Francisco Ry. formally applied for a receivership but this
had been largely foreshadowed. Even so, railroad stocks
were the weakest of the list.
Stocks on the 3rd recovered in the late afternoon a good
part of the losses sustained earlier in the day. Sales were
approximately the same as on Wednesday, amounting to
some 1,020,150 shares. The most encouraging feature
was the fact that in spite of the week's decline the October
lows were not violated. Interest remained quiescent, however, and even the professional element held aloof. To-day
stocks advanced 1 to 5 points on leading shares. The campaign speech of Owen D. Young caused an improvement in
sentiment and this together with short covering was enough
to cause a sharp rally. Commodity markets were generally
higher. Bonds participated in the advance but with less
snap. Railroad issues were the leaders.
3053
Providence, R. I., wired that virtually all the larger woolen
mills in this State are sold through November. Consequently week-to-week fluctuations in operating activity are
narrow. Production continues at a lively pace and reorders
for fall piece goods still are being written despite lateness of
the season. Where the change in the woolen situation has
occurred recently is in the spring goods end of the trade.
Here there is a hesitancy, an inclination to withhold orders
temporarily until the outcome of the National election becomes known.
At Shannon, Ga., Southern Brighton Mills is operating
on a 60-hour a week day and night schedule. They have
been on this schedule for 18 months. At Toccoa, Ga.,
Hartwell Mill No. 2 has been operating on a schedule of
55 hours a week days and 50 hours a week nights for more
than six weeks. At Burlington, N. C., the Sherwood
Tapestry Co. is operating on a 55-hour a week day and
night time schedule, 100% production on tapestries, scarfs
and draperies. This plant has been on this schedule for about
90 days. At Fries, Va., Washington Mills Co., manufacturers of sheetings and drills, is now on a 55-hour day time and
night schedule. All of the machinery runs during the day
time schedule, and most of it at night. At Simpsonville,
S. C. the Woodside Cotton Mills Co. is operating on a day
aTiatiglit schedule of 60 hours. At Rutherfordton, N. C.,
the Grace Cotton Mill Co., is operating on a day and night
schedule of 60 hours. Charlotte, N. C., wired that trail;
was dull in textiles and production seems too high unless sales
improve.
At Avondale, N. C., the Cliffside Mills, manufacturers
of chambrays, are on a schedule of 55 hours a week, and have
been for over two months. A very good demand is reported.
At Opp, Ala., the Micolas Cotton Mills are operating on a
day and night schedule of 55 hours each shift weekly.
Sheetings and drills are manufactured. At Greenville,
S. C., mills are operating 55 hours, day and night, weekly,
and have been since August. At Spindale, N. C, the
Spencer Corp is on a day and night schedule of 60 hours a
week. At Balfour, N. C., the Balfour Mill is on a day
schedule of 60 hours a week and a night schedule. At
Athens, Ga., the Athens Mfg. Co. is operating on a day and
night schedule of 60 hours each shift. Tire fabrics are
manufactured. At Chattanooga, Tenn., the StandardCoosa-Thatcher Co. is operating '35 hours a week on a day
schedule, with very little night work, except in case of rush
orders. During the summer the machinery being operated
was approximately 65% and now it is running 100%.
At Anniston, Ala., The Anniston Manufacturing Co. is
on a schedule of 55 hours a week, days and 50 hours nights,
manufacturing sheetings and drills. At Martinsville, Va.,
the Martinsville Cotton Mills Co. is operating on a 55 hour
week day and 50 hour a week nights, namufacturing print
cloths. It has been on this schedule for approximately the
past three months.
London cabled, Oct. 31, that with the unions carrying out
their protest against wage reductions, the strike in the
spinning section of the Lancashire textile mills was about
complete to-day. It was estimated that about 170,000
operatives are affected. A ballot of the union membership
to be completed Saturday offers the chief hope of a settlement. Awaiting next Saturday's announcement, the
Ministry of Labor, which brought about the conference resuiting in the compromise reduction, has decided not to
intervene at present. This bolsters the opinion generally
held that the mills will be running again next week.
The Silk Association says that employment increased 14.5
per cent in the silk industry during September, as compared
with the previous month and was 5.9 per cent higher than
September 1931. Broad silk loom employment increased
17.5 per cent.
As to the weather, today it was 37 to 56 degrees here with
the forecast for fair and warmer conditions. During the past
few days it has been very pleasant. Overnight Boston had
30 to 44 degrees, Buffalo 34 to 42, Philadelphia 40 to 52,
Portland, Me. 30 to 42, Chicago 42 to 52, Cincinnati 44 to
60, Cleveland 40 to 52, Milwaukee 42 to 48, Kansas City 56
to 66, Denver 30 to 60,Portland, Ore.42 to 56,San Francisco
50 to 62, Montreal 30 to 38 and Winnipeg 28 to 40.
of Railroad Revenue Freight Lower Again.
Loading of revenue freight for the week ended on Oct. 22
totaled 642,173 cars, according to reports filed on Oct. 29
by the railroads with the car service division of the American
Railway Association. This was a reduction of 8,405 cars
under the preceding week, 127,500 cars under the same week
in 1931 and 317,319 ears under the same week two years ago.
Particulars follow:
Loading
Miscellaneous freight loading for the week of Oct. 22 totaled 236,250
cars, a decrease of 3,340 cars under the preceding week, 48,513 cars under
3054
Financial Chronicle
Nov. 51932
1932.
1931.
40-4wcncnoo.4.-4
crtCC CO tOO CC
wmcbencoog,
Four weeks In January
Four weeks in February
Four weeks in March
Five weeks in April
Four weeks In May
Four weeks in June
Five weeks in July
Four weeks in August
Four weeks in September
Week ended Oct. 1
Week ended Oct. 8
Week ended Oct. 15
Week ended Oct. 22
Total
wtQwwwwwtQw
c.nmenitsb--41.1
g.cpww,.mocbcom
!,Dfico
Cfl b3ntoco-ato
the corresponding week in 1931 and 129,829 cars below the same week in
1930.
Loading of merchandise less than carload lot freight totaled 178,744 cars,
an increase of 1.297 cars above the preceding week, but 35,968 cars below
the corresponding week last year and 61,311 cars under the same week two
years ago.
Coal loading totaled 140,805 cars, a decrease of 2,904 cars below the preceding week, 12,016 cars below the corresponding week last year and 51,376
cars below the same week in 1930.
Live stock loading amounted to 23,696 cars, a decrease of 1,193 cars
below the preceding week, 7,039 cars below the same week last year and
11,673 cars below the same week two years ago. In the Western districts
alone, loading of live stock for the week ended on Oct. 22 totaled 19,308
cars, a decrease of 5,595 cars compared with the same week last year.
Grain and grain products loading totaled 32,984 ears, 87 cars below the
preceding week, 7,179 cars below the corresponding week last year and 8,628
cars under the same week In 1930. In the Western districts alone, grain
and grain products loading for the week ended on Oct. 22 totaled 20.946
Cars, a decrease of 6,076 cars below the same week In 1931.
Forest products loading totaled 18,573 cars, a decrease of 979 cars below
the preceding week, 5,249 cars under the same week in 1931 and 20,314 cars
below the corresponding week two years ago.
Ore loading amounted to 6,283 cars, a decrease of 846 cars below the week
before, 10,641 cars under the corresponding week last year and 29,808 cars
under the same week in 1930.
Coke loading amounted to 4,838 cars, a decrease of 353 cars under the
Preceding week,895 cars below the same week last year and 4,380 cars below
the same week two years ago.
All districts reported reductions in the total loading of all commodities
compared with the same week in 1931 and 1930.
Loading of revenue freight in 1932 compared with the two previous
years follows:
1930.
2,873,211
2,834,119
2,936,928
3,757,863
2,958,784
2,991,950
3,692,362
2,990,507
2,908,271
777.712
763,818
761,596
769,673
31,016,794
22,895,145
3,470,797
3,506,899
3,515,733
4,561,634
3,650,775
3,718,983
4,475,391
3,752,048
3,725,686
971,255
954,782
931,105
959,492
38,194.580
The foregoing, as noted, covers total loadings by the railroads of the United States for the week ended Oct. 22. In
the table below we undertake to show also the loadings for
the separate roads and systems. It should be understood,
however, that in this case the figures are a week behind those
of the general totals-that is, are for the week ended Oct. 15.
During the latter period 29 roads showed increases over the
Corresponding week last year, the most important of which
Were the St. Louis-San Francisco Ry., the St. Louis Southwestern Ry., the Texas Pacific Ry., the Missouri-KansasTexas Lines, the Chicago St. Paul Minneapolis & Omaha Ry.,
the Minneapolis & St. Louis RR., the International Great
Northern RR.', the Pittsburgh & West Virginia Ry., the
Northwestern Pacific RR., the New York Ontario & Western
Ry., the Spokane Portland & Seattle Ry., the Chicago &
Eastern Illinois RR.and the Fort Dodge and Denver City Ry.
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED OCT. 15.
Total Revenue
Freight Loaded.
Railroads.
Eastern DistrictGroup A:
Bangor & Aroostook
Boston & Albany
Boston az Maine
Central Vermont
Maine Central
New York N. H.& Hartford._
Rutland
Total
Group B:
y Buff. Rochester.k Pittsburgh
Delaware& Hudson
Delaware Lackawanna & West..
Erie
Lehigh az Hudson River
Lehigh & New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western
Pittsburgh & Shawmut
Pittsb. Shawmut & Northern
x Ulster & Delaware
Total
Group C:
Ann Arbor
Chicago Indlanap. & Louisville_
Cleve. Cin. Chi. az St. Louis...
Central Indiana
Detroit & Mackinac
Detroit & Toledo Shore Line_
Detroit Toledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis..
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia.-Wabash
Wheeling & Lake Erie
Total Loads Received
from Connections.
1932.
1931.
1930.
1932.
1,123
2,543
7,488
708
2,728
10,355
643
1,843
3,192
8,111
730
2,933
12,489
631
1,959
3,215
9,875
930
4,198
13,956
723
196
4,764
9,427
2,262
2,043
11,145
917
283
5,760
11,422
2,634
2,730
13,871
1,263
25,588
29,929
34.856
30,754
37,953
tiii
9,493
12,191
155
1,591
9,115
1,858
21.979
2,064
566
328
7,428
12,685
15,058
198
2.277
10,875
2,519
25,322
2,009
613
462
9,024
11,827
16,484
244
2,395
11,769
2,873
33,303
1,604
535
553
6,100
5,234
13,363
1,754
870
6,049
42
26,120
2,033
109
302
7,517
6,398
15,091
2,318
1,297
7,339
36
30,176
1,927
50
277
64,812
79,444
90.611
62,249
72,426
574
1,761
8,807
39
383
265
1,302
2,557
5,543
3,648
5.082
4,680
3,695
1,381
5,523
3,332
688
1,788
9,392
50
388
210
1,171
2,694
6,605
4,146
5,751
5,216
4.489
1,365
6,270
3,568
764
2,369
11,352
75
517
390
2,399
4,041
8.814
5,191
7,113
7,846
6,298
1,701
7,270
3,999
969
1,784
11,382
70
118
1,853
666
5,265
7,339
233
7,579
4,066
4,368
535
6,806
1,588
1,176
2,083
11,931
95
151
2,106
786
5,324
8,444
261
8,201
4,441
5,807
904
7,002
2,313
1931.
48,572
53,791
70,139
54,621
61,925
Grand total Eastern District._
138,972
163,164
195,606
147,624
172,304
Allegheny DistrictBaltimore az Ohio
Bessemer & Lake Erie
y Buffalo & Susquehanna
Buffalo Creek & Gauiey
Central RR. of New Jersey-- Cornwall
Cumberland & Pennsylvania
Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
28,238
1,155
-269
6.535
2
228
185
1,108
56,567
14,295
2,884
69
3,157
33,605
2,459
m41,676
5,764
13,918
799
16,192
1,497
126
9,059
588
395
135
1,633
72,716
17,246
6,017
47
3,640
198
10,363
554
433
163
1,763
92,309
17,569
1,076
66
3,474
9
3,487
5
12,527
64
16
32
4,091
43,504
18,643
2,311
1
4,172
114,692
147,666
185,093
83,871
103,055
24,136
18.867
886
3,739
24,952
20,574
855
4,260
27,634
22,186
1,017
4.109
8,341
3,809
1,314
537
8,033
4,143
936
392
47,628
50,641
54,946
14.001
13.504
6,999
795
398
175
61
1.646
507
357
6,681
20,833
237
8,761
1,378
411
250
86
2,124
558
430
7,872
23,665
209
12,498
1,483
770
198
102
2,461
593
444
11,189
28,500
219
4,113
1,204
730
489
115
1,206
723
2,032
3,007
5
11,0
709
3
5.189
1,245
1,127
461
122
1.370
822
2.590
3.585
1,8.19123
12
Total
Total
Pocahontas DistrictChesapeake & Ohio
Norfolk az Western
Norfolk & Portsmouth Belt Line
Virginian
Total
Southern DistrictGroup A:
Atlantic Coast Line
Cllnchfield
Charleston & Western Carolina
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick.& Potom_
Seaboard Air Line
Southern System
Winston-Salem Southbound_ _
9,580
38
29
14
3,306
37,060
14,916
715
Railroads.
Group B:
Alabama Tenn.& Northern..- _
Atlanta Birmingham & Coast__
Atl.& W.P.-West RR.of Ala.
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Mason Dublin & Savannah..._
Mississippi Central
Mobile & Ohio
Nashville Chattanooga & St. L.
New Orleans-Great Northern_
Tennessee Central
Total Loads Received
from connections.
1032.
1931.
1930.
228
660
710
3,413
246
476
1,139
333
849
24,348
19,464
125
172
2,062
2,971
515
294
274
744
778
3,870
428
517
1,087
447
1,001
25,529
20,114
174
204
2,413
3,272
930
558
304
981
951
4,029
530
621
1,529
633
1,426
29,859
25,156
183
277
3,457
4,291
935
711
1932.
1931.
142
543
994
2,125
255
307
1,123
249
714
8,532
3,551
239
292
1,496
1,998
337
778
155
571
1,197
2,406
183
409
1,343
264
866
9,798
4,045
277
422
1,411
2,147
379
526
58,005
62,340
76,773
23,675
26,309
Grand total Southern District._
96,964
108,084
135,230
49.056
56,915
Northwestern DistrictBelt Ry. of Chicago
Chicago & North Western
Chicago Great Western
Chic. Milw. St. Paul & Pacific_
Chic. St. Paul Minn. & Omaha
Duluth Missabe & Northern. _ _
Duluth South Shore Ar Atlantic
Elgin Joliet az Eastern
Ft. Dodge Des M.& Southern.
Great Northern
Green Bay AL Western
Minneapolis & St. Louts
Minn. St. Paul & S. S. Marie..
Northern Pacific
Spokane Portland az Seattle... _
1,205
15.680
2,561
19,177
4,010
1,631
644
3,289
343
11,606
571
2,194
5,795
11.375
1,282
1,440
20,606
3,215
21,958
3,957
1,462
919
3,857
333
15,341
811
2.103
6,410
12,827
1,026
1,613
24,513
3,627
26,577
5,234
10,288
1,558
6,764
457
20,687
756
3,021
8,666
14,656
1,580
2,083
9,347
2,986
7,162
3,439
127
388
3,445
129
1,751
308
1,942
1,747
2,245
985
1,751
10,462
2,885
8,214
3,683
136
455
4,142
183
2,233
447
1,980
2,067
2,550
972
81,363
101,265
129,997
38,084
42,160
23,238
3,378
173
19,261
13,813
2,981
1,620
4,632
670
1,906
1,033
238
18,211
216
396
18,406
530
1,631
27,062
3,714
183
21,695
15,924
2.922
2,559
5,162
701
1,734
943
121
20,503
291
254
20.354
619
1,841
31,256
4,576
297
26,161
17,768
3,757
2,521
6,221
794
1,772
1,595
369
28,605
304
311
24,227
996
2,188
6,053
1,909
31
7,508
7,126
2,010
1,335
3,236
1,252
234
48
3,125
309
1,015
9,595
12
2,294
5,658
2,264
30
8,180
8,264
2,392
1.232
2,797
17
1,209
319
53
3,722
242
930
9.861
13
1,840
112,333
126,582
153,718
47,101
49,023
131
239
333
1,547
252
2.058
293
1,752
1,279
93
815
240
6,009
16,519
41
145
11,033
3,187
265
6,047
4,892
1,703
23
163
198
306
1,574
316
1,942
312
2,081
1,962
407
1,011
137
5,945
19,898
32
159
10,714
3,156
389
7,279
4.374
1,811
28
252
468
322
2,066
322
2,570
370
2,686
1,779
294
1,141
154
6,933
22,366
42
152
13,328
3,631
388
9,071
6,057
2,093
30
2,684
495
203
1,014
30
1,541
939
1,442
1.009
437
175
225
2,650
7,782
27
111
3,380
1,286
224
2,555
2,771
2,543
43
2,741
656
117
1,618
62
2.049
1,059
2,029
1,223
610
330
316
2,448
8,688
72
182
3.722
1,331
256
3,217
3,690
2,498
32
58.898
64.194
76,515
33,575
38,948
Total
Total
Central Western Dist.Atch. Top. & Santa Fe System_
Alton
Bingham & Garfield
Chicago Burlington & Quincy-Chicago Rock Island & Pacific_
Chicago & Eastern Illinois
Colorado A, Southern
Denver & Rio Grande Western.
Denver & Salt Lake
Fort Worth & Denver CIO,- -.Northwestern Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah
Western Pacific
Total
Southwestern DistrictAlton & Southern
Burlington-Rock Island
Fort Smith & Western
Gulf Coast Lines
Houston & Brazos ValleY
International-Great Northern_ _
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas_
M issourl-Kansas-Texas Lines_ _
Missouri Pacific
Natchez & Southern
Quanah Acme & Pacific
St. Louts-San Francisco
At. Louis Southwestern
San Antonio Uvalde & Gulf._ _ _
Southern Pacific in Texas & La.
Texas & pacific
Terminal RR. Assn. of St. Louis
Weatherford Min.Wells& N.W.
45,744
38,689
58.457
30,516
25,381
Total
Total
Included In New York Central. y Included in Baltimore & Ohio RR. a Estimated.
Total Revenue
Freight Loaded,
Financial Chronicle
The Financial Outlook.
Obviously, then, in comparison with the very difficult period that the
country's financial system has experienced, the current banking
situation
shows a vast improvement. With hoarding on the decrease, a
continuation
of the process of liquidating frozen assets, fewer bank suspensions and
growing confidence in the country's banks, and a strengthening of
reserve
balances by member banks, the financial outlook in this country, barring
unexpected adverse credit developments abroad, is exceptionally
promising.
Of course, the financial readjustment process is far from completed; and
in some sections of the country the situation is not quite so favorable,
particularly In rural and agricultural communities. Notwithstandi
ng this, a
review of the banking structure as a whole finds strong support for the
opinion that any failure of the recent upturn in general business to establish
a definite groundwork for revival must find other explanations than an
inability of our banking system as a whole to finance a sound expansion
of
industry and trade.
Problems of Readjustment.
The misgivings on the part of business men that have been reflected
in the
price recessions of the last few weeks appear to have been due not so much
developments
in
the
adverse
current
situation
as
to
a
growing
to
realization of
the formidable nature of some of the impediments that lie In the path of
economic recovery. Of all these obstacles, perhaps the most important-is
the network of trade barriers that has come into existence as a result of the
wave of economic nationalism that has swept over the world since the
beginning of the depression. The paralyzing effect of the trade restrictions
has been only imperfectly recognized; but as the movement has spread
from one country to another, business men have gradually come to realize
that the situation threatens the very existence of the international scale of
business organization that has been gradually built up In the past.
The seriousness of the problem lies in the fact that such trade restrictions
are, by their very nature, extremely difficult to remove. Unlike most of the
effects of the depression, these trade barriers represent an artificial growth
that will not disappear of its own accord but will continue to work its
harmful effects as long as public authorities fail to realize that such a system
Is not compatible with the conditions of modern economic life.
Sept.
1931.
July
1932.
Aug.
1932.
Sept.
1932.
Primary DistributionCar loadings, merchandise & miscellaneous
67
51
Car loadings, other
62
43
Exports
56
40
Imports
76
51
Waterways traffic
56
33
Wholesale trade
85
87
Distribution to ConsumerDepartment store sales. 2d District
85
69
Chain grocery sales
88
73
Other chain store sales
86
71
Mail order house sales
77
64
Advertising
74
54
Gasoline consumption
84
68
Passenger automobile registrations
45
27p
General Business ActivityBank debits, outside of New York City
79
60
Bank debits, New York City
77
60
Velocity of bank deposits, outside of N.Y.City
85
77
Velocity of bank deposits, New York City
84
65
Shares sold on New York Stock Exchange
141
229
Life insurance paid for
88
76
Electric power
83
67p
Employment in the United States
74
60
Business failures
108
140
Building contracts
52
29
New corporations formed in New York State
86
99
Real estate transfers
51
43
*General price level
147
132
*Composite index of wages
202
1799
*Cost of Living
148
134
17 Preliminary. r Revised. * 1913 averay100.
During September a preponderance of advances was shown by this
bank's indexes of the distribution of goods and of general business
activity.
Increases of larger than seasonal proportions occurred In freight car loadings,
foreign trade, and advertising, and in sales by department stores, mail
order houses, and chain stores other than grocery chains. In addition,
life insurance sales showed considerably less than the usual decline, and
after adjustment for the usual seasonal variations the number of business
failures was the smallest since February.
00WCP0.4.O.
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• tltl
0.0...1.4.4
.40000
...
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CON.M00,4C4—.10505
W—.1W
0.1. ..WONCONCDCAMWO
,
C1
C1
Industrial and Financial Improvement.
Notwithstanding these and other important exceptions,
the-general trend
in business has been unquestionably toward higher levels. Financial
conditions, which are discussed in some detail elsewhere in this
issue, show
equally clear signs of improvement. Further large gold imports bear
witness
to the growing confidence in the stability of the dollar, both at home
and
abroad. Bank failures have remained at comparatively low
levels, and the
amount of money in circulation has declined. Banks
have continued to
reduce their loans and to increase their investments, indicating
a scarcity
of opportunities for advantageous credit expansion but also a reviving
faith in the future of security prices.
Undoubtedly, political uncertainties have retarded
recovery and replaced
some measure of confidence with caution in both business
and market
circles. How much of this may be justified
economically only the future
can tell. A more definite adverse influence is the growing conviction
among
business men that the present cost of government
will continue to represent
a major economic obstacle until it is drastically reduced
and that no adequate tendency toward correction of the situation has
yet appeared.
Some encouragement is to be found In the Treasury report
for the first
quarter of the current fiscal year, which shows a reduction
in expenditures of
$140,000,000 from the total for the corresponding period
a year earlier.
Two factors, however, tend to modify the favorable construction
that might
be placed on the report. One is that texpenditures under present conditions
are affected to an unusual extent by large items of an exceptional
nature,
such as outlays for emergency relief, so that a saving in one period
is very
likely to be more than offset by a large increase in expenditures
later on.
The other is that receipts during the quarter, despite some Improvement,
continued to run considerably below Treasury estimates,
resulting in a
large deficit and indicating that the fiscal year will orh2g another
huge
excess of expenditures over revenues, unless new sources of income
are found
in the meantime.
The movement of merchandise and miscellaneous freight over the railroads continued to increase, although no consistent .change between
September and October is evident from the data for past year. As is
shown in the accompanying diagram, loadings of these classes of freight
have increased substantially since the end of July, whereas last year
no
rise occurred during this period, and the proportionate advance in the corresponding period of 1930 has been considerably exceeded by
the rise
this year. Department store sales In the New York metropolitan
area
during the first half of October were only 14% smaller than in the corresponding period of last year. as compared with an average decline
of
21% in the first eight months of the year, indicating a continuation of the
improvement that was reported for September. Moreover, the number
of business failures was aoout the same as in the previous month, although
a considerable increase in failures usually occurs in October.
(Adjusted for seasonal variations,for usual year-to-year growth, and where necessary
for price changes.)
.4C.4014.4.0
Conservative Optimism Continues.
It Is almost universally assumed that the industrial and financial prostration of last summer has been definitely overcome and that the general
tendency will continue to be toward Improvement. At the same time, there
is perhaps less disposition than a month ago to believe that. rapid strides
toward trade revival will be made In the immediate future. That the coming
winter will be a very difficult period, with widespread unemployment
and
distress and with both private and public agencies extended to the
utmost
to meet the demands upon them, is taken for granted.
Among the favorable business events of the last few weeks, the
most
impressive were a small but genuine increase In industrial employment,
some
improvement in retail trade, substantial gains in steel ingot and
pig iron
production, further increases In textile output, a strong upward
trend in
the production of coal, continued expansion in the movement of railway
freight with a resulting recovery in earnings, a considerable
increase In
foreign trade, and further improvement in the financial situation. On
the
other side of the picture has been the reactionary tendency in price, which
has been particularly marked in farm products and has carried grain quotations to the lowest levels on record. There has also been a continuation of
severe curtailment in numerous branches of industry and trade, including
the automotive and construction industries.
3055
New York Federal Reserve Bank's Indexes of Business
Activity-Further Improvement Indicated.
"Further improvement in business activity during October
is indicated by the data now available," says the Federal
Reserve Bank of New York, in presenting its indexes of
business activity in its Nov. 1. "Monthly Review." The
Bank goes on to say:
N0506+.4,,
00.000ONW
Guaranty Trust Co. of New York Finds Further Expansion in Business Activity, But Persistent
Weakness in Commodity and Security PricesMost Acute Phase of Depression Viewed as Past.
Business developments this month have continued to
present the same type of irregularity noted in September,
with further expansion in business activity on the one hand
and persistent weakness in commodity and security prices
on the other, states the Guaranty Trust Co. of New York in
"The Guaranty Survey," its monthly review of business and
financial conditions m the. United States and abroad,issued
Oct. 31. "The effect of these tendencies has been to
strengthen two generally accepted beliefs concerning the
economic outlok: first, that the most acute phase of the
depression in past; and second, that progress toward recovery will be slow and hesitant," says "The Survey" which
continues:
w..1t44.0Nw00.4.4MMOM
oPCON....1WOWW.0...0
Volume 135
Decrease of One-half of 1% Reported in Wholesale
Prices During Week Ended Oct. 29 by United
States Department of Labor.
The Bureau of Labor Statistics of the U.S. Department of
Labor announces that its index number of wholesale prices
for the week ended Oct. 29 stands at 64.1 as compared with
64.4 for the week ended Oct. 22, showing a decrease of
of 1%. Under date of Nov.2 the Bureau also said:
These index numbers are derived from price quotations of784 commodities
weighted according to the importance of each commodity and based on
average prices for the year 1926 as 100.0.
The accompanying statement shows'the Index numbers of groups of
commodities for the weeks ended Oct. 1,8. 15, 22. and 29.
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF
OCT. 1, 8, 15, 22, AND 29.
(1926=100).
Week Ended.
All commodities
Farm products
Foods
Hidesand leather productsTextile products
Fuel and lighting
Metals and metal products_
Buidling materials
Chemicals and drugs
Housefumishing goods_
Miscellaneous
Oct. 1.
Oct. 8.
Oct. 15.
Oct. 22.
Oct. 29.
65.4
49.5
62.0
73.3
56.4
71.7
80.0
70.6
73.0
74.6
64.5
64.9
48.8
61.5
73.0
56.3
71.3
80.1
70.5
72.9
74.1
64.1
64.4
47.4
60.7
72.5
54.9
71.3
80.1
70.5
72.7
72.4
63.9
64.4
47.0
60.8
72.8
54.7
71.9
80.3
70.5
72.7
72.5
63.9
64.1
46.2
60.1
72.2
54.5
72.8
79.9
70.6
72.4
72.5
63.9
Annalist Weekly Index of Wholesale Commodity Prices
Lower During Week of Nov. 1-At Lowest Point
Since June 14.
A loss of 1.0 point for the week carried the "Annalist"
Weekly Index of Wholesale Commodity Prices down to 88.5
on Nov. 1, in the 8th consecutive week of decline. It now
stands at the lowest point since June 14, when it touched
the post-war low of 87.3, and is 7.8 points or 8.1% under the
year's high of 96.3 established on Sept. 6. The "Annalist"
also reported as follows:
As was the case last week, all the groups participated in the decline, except chemicals and building materials, which are on a monthly basis, and
Financial Chronicle
3056
fuels which the further recovery of gasoline lifted till the group index now
stands 2.6% above a year ago. The downward movement was led by the
agricultural products, with wheat, cotton, live stocks and the meats in the
vanguard, supported by silk, wool, the textiles, and copper. While
special causes entered into the declines of these commodities, the prevalent
pre-election diffidence appears to account for the wide-spread lack ofsupport
and the extended range of losses.
"ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(Unadjusted for Seasonal Variation (1913=100)•
Nov. 5 1932
2%,and the normal change from July to September is an increase of 4.7%,
which is comparable with an increase of 6.6% for the same period of this
year. These figures indicate a fairly definite trend toward improvement
in the demand for electricity for public use during August and September.
The average daily production of electricity by the use of water power,
which has been decreasing in the past few months owing to the effect
of low water in power streams, was about 11% more than in September
1931.
TOTAL MONTHLY PRODUCTION OF ELECTRICITY BY PUBLIC
UTILITY POWER PLANTS IN 1931 AND 1932.
Noe. 1 1932. Oct. 251932. Nov.3 1931.
87.8
111.2
35.1
128.8
100.1
111.9
98.8
92.4
101.9
70.4
x95.5
x74.8
130.1
95.3
106.3
95.3
74.0
89.5
68.7
93.7
*74.3
132.1
95.0
106.4
95.3
73.3
88.5
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
All commodities
• Provisional. x Revised.
Weekly Production of Electricity Again Shows a Decline
of 7.2% as Compared with Corresponding Period
Last Year.
According to the National Electric Light Association,
the production of electricity by the electric light and power
industry of the United States for the week ended Oct. 29
1932 was 1,533,028,000 kwh., a decrease of 7.2% as compared with the same period in 1931, and compares with
1,528,145,000 kwh. for the preceding week, which was also
7.2% below the figure for a year previous. The output for
the Atlantic seaboard was down 3.1% from the same period
last year and compares with a decrease of 1.2% for the
week ended Oct. 22. New England, taken alyae, was off
2.7%, against an increase of 0.6% in the previous week.
The Central industrial region, outlined by Buffalo, Pittsburgh, Cincinnati, St. Louis and Milwaukee, showed an
decrease of 9.2%,compared with a decline of 9.3% the week
before. The Pacific Coast was down 7.8%, against a decrease of 9.8% in the Oct. 22 week.
Arranged in tabular form, the output in kilowatt hours
of the light and power companies for recent weeks and by
months since the first of the year is as follows:
Weeks
Ihtded.
1931.
1932.
1930.
1929.
1932
Under
1931.
Jan. 2 ---- 1.523.652.000 1,597.454,000 1,680.289.000 1,542,000,000 4.6%
Feb. 6 ---- 1,588,853.000 1.679,016,000 1,781.583,000 1.726,161,000 5.4%
Mar. 6 ---- 1.519,679.000 1,664,125.000 1,750.070,000 1,702,570,000 8.7%
Apr. 2 ---- 1.480.208,000 1.879,764,000 1,708,228.000 1.663,291.000 11.9%
1,429,032,000 1,837,296.000 1,689,034,000 1,608.492.000 12.7%
May 7
June 4 --_ x1.381.452,000 1,593,622,000 1.657.084.000 1,689.925,000 13.3%
1.466,961.000 61.607,238.000 1,594.124.000 1,592,075.000 9.3%
July 2
Aug. 8 -- 1,426,986,000 1,642,858,000 1,691,750.000 1,729,667.000 13.1%
Sept. 3 ---- 1,464,700.000 1,635.623,000 1,630,081,000 1,774,588,000 10.4%
8.7%
Sept.10 --- 1,443.977.000 1,582,267.000 1,728,800,000 1,808.259.000 11.2%
Sept.17 ---- 1,476.442.000 1,662,660.000 1,722,059,000 1.792,131,000 10.2%
Sept.24 ---- 1.490.863,000 1,660,204,000 1,714,201,000 1.777.854,000 8.9%
Oct. 1 --._ 1,499,459,000 1.645.587,000 1,711.123,000 1,819,276,000
1,806,403.000 8.9%
Oct. 8 --- 1.506,219.000 1,653.369.000 1,723.878,000 1,798.633.000
9.0%
Oct. 16 ---- 1,507,503,000 1.656.051.000 1,729,377.000 1.824,160.000 7.2%
1,747,353,000
Oct. 22 -- 1,528,145.000 1,646.531,000 1,741,295,000
1,815,749,000 7.2%
1,533,028,000 1,651.792,000
Oct. 29
lb Months5.7%
Jannary___. 7,014,066.000 7,439,888.000 8,021,749,000 7,585,334.000 y6.1%
8'ebruary-- - 6,518,245.000 6,705,564,000 7,066,788.000 6,850,855,000
6,781,347,000 7,381,004.000 7,580,335,000 7,380,263,000 8.2%
March
8,303,425.000 7.193.691.000 7,416,191.000 7,285,350,000 12.4%
Apra
6,212,090,000 7,183.341,000 7.494,807,000 7.486,635,000 13.5%
May
6,130,077,000 7.070.729.000 7,239,697,000 7,228,279,000 13.3%
June
6,112,175,000 7,286,576,000 7,363,730.000 7,484,727,000 16.1%
July
a 310 667.000 7.166.086,000 7,391.196.000 7,772,878,000 11.9%
Anannt _
I Including Memorial Day y Change computed on basis of average daily reports.
z Including July 4 holiday.
Electric Output During September 1932 Off 11% As
Compared With Corresponding Period Last Year.
According to the Division of Power Resources, Geological
Survey, production of electricity for public use in the
United States during the month of September 1932 amounted
to 6,738,948,000 kwh., a decline of 11% as compared
with the corresponding period last year, when output totaled
7,540,377,000 kwh. Of the total for, September 1932
there were produced by water power 2,431,092,000 kwh.
and by fuels 4,307,856,000 kwh. The statement of the
Geological Survey follows:
PRODUCTION OF ELECTRICITY FOR PUBLIC USE IN THE UNITED
STATES (IN KILOWATT-HOURS).
Dirtstos.
Total by Wader Power and Fuels.
July,
August.
September.
414.849.000 447.685.000 484.969.000
New England
1,742,928,000 1,816,586,000 1,829,134,000
Middle Atlantic_ _
East North Central_ 1,355.183,000 1,406.710.000 1,429,696,000
West North Central. 480,145.000 461,051,000 436.205,000
655,507.000 688,892,000 723.568,000
SouthAtlantic
East South Central.. 283,360.000 309,504.000 308.067,000
West South Central.. 349,148.000 365,681.000 358,413,000
214.554,000 222,730,000 213,798,000
Mountain
1,035.032.000 1.023.618,000 955,098,000
Pacific
Total for U.S____ 6,530,706,000 6,742.457.000 6.738,948.000
Change in Output
from Precious Year.
August.
Sept.
-8%
-9%
-13%
-11%
-14%
-8%
-12%
-20%
-8%
-12%
-11%
for public use in September
The average dal y production of electricity
3ji% more than the average in August.
was 224.600,000 kwh.. nearly
August to September is an increase of about
The normal change from
January-..-.
February -March
April
May
June
July
August
September.._
October
November...
December -
1931.
Kw. Hours.
1932.
Kw. Hours.
7,958,019.000
7.169,815,000
7,887,713,000
7,655,472,000
7,645,150.000
7,528,592,000
7.771,992.000
7,829,920,000
7,540,377,000
7,764,889.000
7,406.165,000
7,773.288.000
7.542,824,000
7,002.151,000
7,301,976,000
6.778,652,000
6,635.475,000
6,548.831,000
6,530,706,000
8,742,457.000
6,738,948,000
1931
Under
1930.
1932
Under
1931.
Produced by
Wafer Power,
1931.
1932.
8%
8%
4%
5%
5%
3%
2%
3%
3%
5%
5%
ail%
7%
11%
13%
13%
616%
12%
11%
____
30%
30%
34%
41%
41%
38%
35%
32%
29%
27%
41%
42%
42%
46%
45%
41%
41%
38%
33%
......
4%,
-_--
35%,
---
.....
33%
........
4%
91,729.390,000
Total
a Based on average daily production. b Fewer working days in July 1932. than
In July 1931.
The quantities given in the tables are based on the operation of all
Power plants producing 10,000 kwh. or more per month, engaged in generating electricity for public use, including central stations, both commercial and municipal, electric railway plants, plants operated by steam
railroads generating electricity for traction. Bureau of Reclamation plants,
public works plants, and that part of the output of manufacturing plants
which is sold for public use. The output of central stations, electric railway
and public works plants represents about 98% of the total of all types
of plants. The output as published by the National Electric Light Association and the "Electrical World" includes the output of central stations
only. Reports are received from plants representing over 95% of the total
capacity. The output of those plants which do not submit reports is
estimated; therefore, the figures of output and fuel consumption as reported in the accompanying tables are on a 100% basis.
[The Coal Division, Bureau of Mines. Department of Commerce, cooperates in the preparation of these reports.]
Decrease of 1,000,000 in Number of Unemployed
Reported by Secretary of Commerce Chapin in
Address in Philadelphia-Says However Problem
of Unemployed for Coming Winter "Is Far From
Being Solved."
A decrease of 1,000,000 in the number of unemployed
since the end of July, as shown in Department of Labor
figures, was cited on Nov. 3 by Roy D. Chapin, Secretary
of Commerce, as "undoubtedly the most significant net
result of the progress made toward economic recovery."
Thus, quoting Secretary Chapin, a dispatch Nov. 3 from
Philadelphia to the New York "Times" continued:
Addressing members of Philadelphia and Camden business organizations
at a dinner under the auspices of the Philadelphia Chamber of Commerce.
Mr. Chapin said that although "heavier industries have shown a tendency
to lag" and "the lighter industries supplying the needs of consumers have
shown the most improvement," the "betterment, which has been on a
rather broad front, offers a basis for genuine encouragement."
Mr. Chapin said it was not his habit "to look at the National economic
picture through rose-colored glasses," nor did he believe "in putting on
a pair of smoked glasses as soon as we can see a little sunlight."
"There is no question," he continued, "that since July the patches of
sunlight that have slipped through the clouds of depression have Justified
the restoration of confidence that has been increasingly apparent among all
classes of people.
"We cannot be accused of unwarranted cheerfulness if we are heartened
by the fact that America is no longer altogether on the retreat before the
forces of depression. We have consolidated our positions and our lines are
holding. We are attacking at many points and gaining ground."
Secretary Chapin declared that"not even the heat of a political campaign"
had repudiated the soundness of the "gigantic program undertaken at the
direct instance of President Hoover."
"As a business man of many years' experience, therefore, and not merely
as a loyal member of the President's Cabinet," he said, "it seems to be
only fair that I should at this time reiterate my conviction that the progress
we have made since last summer is due primarily to the whole-hearted
co-operation of the American people in the program set in motion by our
President."
De warned that despite improved conditions the problem of unemployment for the coming winter "la far from being solved."
"Our individual and community resources will have to be drawn upon
as never before to provide for the unfortunate men and women whose own
efforts to feed, clothe and house themselves have been unavailing," he
said. "But the gravity of the situation that is still ahead of us should not
lead us to minimize the positive results of our efforts up to this time."
Turning to the foreign situation, Secretary Chapin declared a committee of the United States Chamber of Commerce headed by James A.
Farrel. Chairman of the United States Steel Corporation, had discovered
that "more than half of the products now being imported into the United
States are benefiting from the advantage of depreciated currencies."
He said that recently there had been some concrete signs of business
Improvement abroad, adding:
"Do not let me convey the impression that economic difficulties in Europe
are all a thing of the past. I want only to emphasize that It was not until
American business had shown signs of an upturn that we could discover any
cheerful notes in the economic reports from Europe."
Slight Decline Reported by National Fertilizer Association in Commodity Prices During Week Ended
Oct. 29.
. Commodity prices declined slightly during the week ended
Oct. 29. The wholesale price index of The National Fertilizer
Volume
Financial Chronicle
135
Association declined three fractional points, declining from
60.6 to 60.3. (The three-year average 1926-1928 equals
100.) During the preceding week, the index declined one
fractional point, and two weeks ago there was a loss of two
points. The latest index number 60.3, is still seven fractional
points higher than the record low, 59.6, recorded on June 11
1932. The index reached a record high of 62.7 for the week
ended Sept. 10. Since that time, however, there has been a
gradual decline in the index. Under date of Oct. 31 the
Association also reported:
One group advanced, seven declined and the remaining six groups in the
index showed no change during the latest week. Fuel, including petroleum
and its products. advanced. Foods, grains, feeds and livestock, textiles,
metals, fats and oils, fertilizer materials and miscellaneous commodities
declined.
During the latest week, 41 commodities showed price losses while 13
commodities were higher. For the preceding week, there were 37 price
losses and 17 gains. Among the commodities that advanced during the
latest week were cotton, cheese, white potatoes, apples, corn, oats, barley,
good cattle, rosin, gasoline and rubber. The list of declining commodities
Included cottonseed meal, yarns, wool, burlap, silk, lard, °utter, cottonseed
oil, tallow, eggs, raw sugar, ham, flour, sweet potatoes, wheat, hogs,
lambs, pig iron, finished steel, tin, copper, silver and hides.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (1926-1928=100).
23.2
16.0
12.8
10.1
8.5
6.7
6.6
6.2
4.0
3.8
1.0
.4
.4
Foods
Fuel
Grains,feeds and livestock
Textiles
Miscellaneous commodities.Automobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural Implements
.3
100.0
All groups combined
Lcaest
Week
Oct. 29
1932.
Precatty
Week.
Month
Ago.
Year
Ago.
.1Ntt..NtROCitVtt
,
.W.
Group.
61.7
63.6
39.3
45.8
61.6
86.6
70.5
69.3
77.4
42.7
87.4
61.8
68.8
92.1
63.7
63.4
42.6
47.7
62.8
89.0
71.4
69.8
77.4
42.4
87.4
62.0
69.0
92.1
71.2
59.3
52.1
51.3
66.0
89.3
75.2
75.4
88.0
60.0
86.8
71.2
79.7
95.2
60.3
60.6
62.0
66.6
com,rwoovoomoa
I
Per Cent
Each Group
Bears to the
Total Index.
Further Improvement Noted in Industrial Conditions
in Philadelphia Federal Reserve District-More
Than Usual Increase in Output of Factories During Past Three Months Fairly Well Maintained
During Early October.
Industrial conditions in the Third (Philadelphia) Federal
Reserve District, according to the Federal Reserve Bank of
Philadelphia, have shown further improvement. Output of
factories states the Bank has increased more than usual for
three successive months, and this exceptional gain has been
fairly well maintained in early October, even though activity
in some of the lines was beginning to slacken seasonally.
The Bank in its "Business Review" of Nov. 1, from which
the foregoing is taken, also said as follows:
Production of coal also has increased more than usual between August and
September as well as in early October. Awards of building contracts decreased sharply in September but showed a noticeable upturn in the first
three weeks of October. More than ordinary gains occurred in freight car
loadings and retail trade sale. Some slight improvement is noted In collections at retail and manufacturing, while at wholesale payment of accounts
showed little change. Business failures continued on the decline both
In number and in liabilities. Neverthless, comparisons with other years
have continued unfavorable, although the spread between the current and
past levels of activity has been narrowing.
Industrial employment and payrolls showed further increases in September, both manufacturing and non-manufacturing industries sharing in these
gains. About one-half of the reporting factories in Pennsylvania indicate
that further increases in employment and payrolls occurred in the first
part of October.
Manufacturing.
A further improvement in the manufacturing industry took place in
September and continued in the first part of October. Sales of such finished
products as textiles, clothing, shoes, and certain building materials have
increased since the middle of last month, and in some instances comparisons
with last year were quite favorable. New orders showed gains in a number
of lines, so that the total of unfilled orders for manufactured products on
the books of reporting factories was slightly larger than in the previous
month. Stocks of finished goods have been reduced in most cases during
the month and continued smaller than a year ago. Inventories of raw
materials, while showing BOMB increases in September and through the first
part of October, remain lower than last year in most lines.
The majority of concerns report no material change in collections,
increases in some lines being practically offset by declines in other lines.
In comparison with a year ago, settlements of accounts continued to be less
favorable, although in a few instances there have been improvements.
Many concerns show a continued firmness in prices of their products,
but comparisons with last year are still adverse. National figures for
September show a slight advance in prices of manufactured commodities,
the sharpest rise from August occurring in quotations for textiles, hides, and
building materials. Compared with a year ago, the general level of prices
for manufactured products in September was about 5% lower. In the
first three weeks of October, a slight weakness developed in quotations for
many manufactures.
Factory employment and payrolls In this district showed substantial
increases from August to September, most sections of the district sharing
In the gains. Pennsylvania factories, for instance, reported an increase
of 4% In employment. 8% in payrolls, and almost 10% in operating time
during September. These gains were greater than usual and were nearly
twice as large as those in August. Compared with a record low level reached
in July, Pennsylvania employment in September was 7% higher and payrolls nearly 13% larger. All manufacturing groups shared in these gains
3057
except transportation equipment, and chemical and related products. The
employment index number in Pennsylvania rose to 61 and the payroll index
advanced to 36; compared with a year ago, employment thus was still 17%
smaller and wage payments 34% less.
Output of factory products has continued upward since July, reflecting a
more favorable trend than in the fall of the past two years. Our preliminary
Index number of productive activity in this district, which takes account
of the number of working days and seasonal changes, rose from 56 in August
to 61% of the 1923-25 average in September, showing an exceptional gain
of 10%. The rise in the national index amounted to about the same Percentage and the upward trend since July coincided with that for this district.
Compared with a year ago, the rate of factory production was 18% lower,
while for the country it was 13% less.
All manufacturing groups showed more than customary increases except
food products and tobacco and its products. The textile industry in particular continued to show extraordinary increases which were shared by all
of its important branches. Output of certain building materials and metal
products also registered unusual advances, reflecting a higher rate of operation in factories making producers' goods.
Information for 31 individual industries shows that more than ordinary
gains occurred during the month in 19 industries, no measurable change
in one line, and either larger than seasonal declines or less than usual gains
in 11 industries. This broadening has continued since July and suggests a
decided improvement in trend, particularly when compared with the contrary tendency that prevailed in these lines in the past two years. While
generally output of individual products has been under last year's volume,
nevertheless, activity in such industries as shipbuilding, silk, hosiery,
underwear, meat packing, sugar refining, and shoes showed marked gains
over September 1931. •
Additional evidence of unusual increase In activity is afforded by larger
consumption of such industrial fuels as bituminous coal and of electric
power, both showing extra-seasonal gains of over 8%. Production of
electric power increased slightly but not as much as was normally expected.
The largest relative gains in the sale of electricity were reported for lighting
Purposes and for industrial uses.
Chain Store Sales During September Continued Below
Those for Same Period Last Year.
A compilation by E. A. Pierce & Co. of this city showing
;ales by chain stores throughout the country, follows:
Sept. 1932.
Grocery ChainsGreat Atlantic & Pacific_a---Safeway Stores_b
Kroger Grocery _b
American Stores
First National Stores d
National Tea_b
H. C. Bohack_f
Grand Union_d
Dominion Storee_c
Jewel Tea.g
Winn & Lovett Grooery-e
Total
5 dt 10c-$1.00 ChainE. W. Woolworth
S. S. Kresge
W. T. Grant
S. H. Kress
McCrory Stores
J. J. Newberry
McLellan Stores
G. C. Murphy
Neisner Bros
M.H. Fishman
Total
Apparel ce Dept. ChainsJ. C. Penney
Lerner Stores
Interstate Dept. Stores
Lane Bryant
Total
Drug ChainsWelareen
Peoples Drug
Total
Shoe ChainsMelville Shoe
Schiff Co
Total
Restaurant Chains-Mektord'e
Exchange Buffet
Total
MiscellaneousWestern Auto supply (K.O.).-
Per Cent.
Pet Cent
Decresse
Decrease
from
9 Mos. 1932.
Irons
9 Mos.
Sept.
1931.
1931.
$63,625,099
34,040,198
31,175,058
8,204.433
9.926,762
9,551,036
2,357,087
2,759,801
2,138,464
792,210
397,888
14.1
x
11.9
16.3
2.8
18.0
15.8
18.6
16.1
14.8
z2.3
$665,784,671
177.722,266
165,589.328
87.346,084
76,880,000
51,053,318
24.454,573
22,619,111
17,498.116
7.612,325
3,783,338
x
13.6
15.4
4.2
14.6
7.8
14.0
10.7
19.7
2.8
$164,968,038
y13.4
$1,300,343.130
713.5
$19,463,169
9,430.252
5,662,094
4,914,392
2,825,286
2,694,790
1,491,543
1,418,572
1,123,538
218,611
10.4
13.9
z1.6
7.2
13.3
z4.2
11.9
4.7
5.2
z3.0
8174,100,234
86,023,029
48.549,724
43,444,486
27,236,818
22,094,939
13,265,959
12,459,453
10,193,446
1,744,679
10.6
13.8
1.2
6.6
6.3
z7.9
8.4
3.7
7.7
z1.0
$49,242,247
9.6
$439,212,767
9.3
$13,053,166
1,597,658
1.386,795
930.614
10.4
20.3
1.2
17.1
8104,532,238
15,303,335
12,756,947
8,769,255
11.4
16.0
15.1
24.9
$16,968,233
11.2
$141,361,775
13.3
$3,647,254
1,211,329
16.0
11.3
$34,597.783
11,930,516
15.7
6.8
$4,858,583
14.9
346.528,299
13.6
81,605,848
818.383
23.4
13.1
315,214,905
6,472,132
23.4
13.6
$2,424,331
20.2
821,687,037
20.7
$548.684
857,162
14.5
7.3
85,239,112
8,320,804
10.4
17.1
5905,846
11.8
$8,559,916
18.1
14.3
$1,110,271
z13.8
$8,501,663
8.3
Total 32 chains
$240,477,547
712.2
$1,966,194,587
712.4
Mail OrderSears Roebuck..b
Montgomery Ward
$43,498,818
14,638.277
15.7
16.4
$206.845.00
122,657.041
20.6
21.9
558,137,090
15.9
Total
21.1
5329,002,084
Grand total 34 companies
5298,614.637 713.0 $2,295,198,671 y13.9
a Four weeks and 39 weeks ended Oct. 1. b Eight weeks and 40 weeks ended
Oct. 8. c Ave weeks and 40 weeks ended Oct. 1. d Five weeks and 39 weeks
ended Oct. 1. c Four weeks and period (since Jan. 1) ended Sept. 26. f Four weeks
and 38 weeks ended Oct. 1. g Four weeks and 36 weeks ended Sept. 10.
Comparable figures for 1931 not available. y Safeway figures included in
totals but not considered In computing percentage decrease. z Increase over
Sept. 1931.
Decrease Again Noted in Employment and Paryolls in
Chicago Federal Reserve District During Period
from Aug.15 to Sept. 15 by Chicago Federal Reserve
Bank.
The Federal Reserve Bank of Chicago, in its Oct. 31
"Business Conditions Report," states that "as in August,
3058
Financial Chronicle
curtailment of operations in automobile plants again effected
a recession during September in Seventh (Chicago) District
employment." Continuing, the Bank also said:
The total for 10 manufacturing groups declined 4% in number of employes
and dropped 13% in wage payments. Of these 10 groups, however, sixrubber products, textiles, wood products, food, leather products, and stoneclay-glass-recorded gains in the number of wage earners, those in the last
two groups being contrary to seasonal trend. Textiles, leather products,
and stone-clay-glass, each registered increases in amount of payrolls, which
gains likewise were contrary to the usual trend for September. The paper
and printing and chemical groups had small declines in the number of wage
earners during the month, although both Increased the amount of payrolls.
Non-manufacturing activity recorded increases in the number employed
n coal mining, merchandising, and construction lines; with the exception
of mining, however, declines were recorded in wage earnings. The public
utility group had small recessions in both number of employes and payrolls.
The Department of Agriculture reports a continuance of the decline in
farm wages, without any appreciable change in the supply of workers available. For the entire country, the index of farm wage rates on Oct. 1 was
84% of the pre-war level and three points lower than on July 1.
EMPLOYMENT AND EARNINGS-SEVENTH FEDERAL RESERVE
DISTRICT.
Week of Sept. 15 1932.
Industrial Group.
Metals and products_a
Vehicles
Textiles and products
Food and products
Stone, clay and glass
Wood products
Chemical products
Leather products
Rubber products_ b
Paper and printing
Total manutact., 10 groups
Merchandlsing_c
Public utilities
Coal mining
Construction
Total non-mfg., 4 groups._ --
No. of Number
Reportof
Wage
ing
Firms. Earners.
Earnings.
Per Cent Changes
front Aug. 15.
Earn •
Wage
Earners. trios.
%
%
709
152
142
341
144
259
102
72
7
290
106,233
145,561
29,136
61.000
6,858
19,584
11,841
15,563
5,307
36,569
51,653,000
2,062,000
438,000
1,183,000
125,000
238,000
257,000
233,000
79,000
832,000
-1.8
-13.8
+7.7
+5.7
+5.5
+5.8
-1.7
+6.0
+8.4
-0.9
-1.8
-35.8
+12.9
+4.4
+8.2
+10.9
+4.2
+5.4
-19.4
+1.3
2,218
169
75
10
336
437.652
26,367
80,514
1,022
10.658
$7,100,000
566,000
2,281,000
16,000
221,000
-3.9
+0.9
--0.7
+27.4
+0.9
-12.7
-1.0
--2.3
+86.3
-4.1
590
118,561
$3,084,000
-0.0
-1.9
-9.7
---3.1
Total, 14 groups
2.808 556,213 $10,184,000
a Other than vehicles. b Michigan and Wisconsin. c Illinois and Wisconsin.
Business Activity in New England During September
Increased As Compared with August-Activity
During Third Quarter of 1932 Increased More Than
Seasonal According to Boston Federal Reserve
Bank.
In its Nov. 1 "Monthly Review" the Federal Reserve
Bank of Boston stated that "during the third quarter of
1932 an increase of more than seasonal nature occurred in
the level of general business activity in New England, and,
in contrast to the third quarter of 1931, in which both
August and September activity was less than in July, August
'his year was higher than July,and a further increase occurred
n September." The Bank also reported the following:
Electric power production in this district increased moderately but
steadily between May and September, gaining slightly each month, when
allowances for customary seasonal changes had been made. Carloadings
of merchandise and miscellaneous freight in New England, after declining
during the first half of the current year, increased during the third quarter
by more than the usual amount. Although the volume (square feet) of
residential building contracts awarded in this district usually declines
between August and September, an increase occurred this year, and a seasonally adjusted index for September was 25.4% of the 1923-24-25 average,
as compared with 21.5% for June, 21.5% for July. and 22.1% for August.
The seasonally adjusted volume of new commercial and industrial building
contracts awarded in this district in September was slightly higher than
In April, May or July, but was only 15.3% of the 1923-24-25 average.
The amount of raw cotton consumed by New England mills increased
considerably between August and September, and during the latter month
was larger than in any previous month this year since March. The consumption of raw wool in New England in September was greater than in
any month since July 1931. Production of boots and shoes in this district
declined slightly between August and September, but despite this decrease,
September production,seasonally adjusted, was greater than in any month
for a year, with the exception of August. The Massachusetts Department of Labor and Industries reported an increase of 9.8% in the number
employed in manufacturing establishments in Massachusetts between
August and September,commenting that the increase was decidedly greater
than the usual seasonal improvement. The amount of aggregate weekly
payrolls increased 13.2% from August to September, while average weekly
earnings per person employed increased 3.1%. During Septemner the
unount of new ordinary life insurance written in New England was 15.2%
e.,s than in September 1931, while in the first three quarters of 1932 the
amount was 18.0% less than in the corresponding period a year ago. Registrations of new automobiles in New England from January through September were 43.4% fewer than in the similar period last year. Sales of
reporting New England retail establishments in September were 14.8%
less than in Septembe: a year ago, and cumulative,sales during the first
nine months were 20.9% less than in the corresponding period a year ago.
Larger-Than-Seasonal Expansion Noted in Chicago
Frederal Reserve District Wholesale Trade During
September-Chicago Federal Reserve Bank also
Reports Increase Over August in Retail Sales of
Chain Stores.
"Wholesale trade in the Seventh (Chicago) Federal
Reserve District expanded in September considerably more
than seasonally in all reporting groups except drugs, where
Nov. 5 1932
the gain of 4% over August was the same as in the 1923-31
average for the period," says the Chicago Federal Reserve
Bank. "The increase," continues the Bank, "in grocery
sales of 9% this September compared with only 4% in the
average, that of 15% in hardware with 9%, the 37% gain
in dry goods with 17%, 163/3% in shoes with 5%, and 9%
in electrical supplies with 3% in the average." The Bank,
in its Oct. 31 "Business Conditions Report," also said:
Further reductions in the size of the declinesfrom a year ago were recorded
In all lines but drugs. Sales in the first three-quarters of 1932 totaled 21%
smaller for groceries than in the same period of 1931, hardware sales were
27% less, dry goods 32%, drugs 22%, shoes 40%, and electrical supplies
43% smaller. Prices for the most part remained steady or showed a further
tendency to strengthen.
WHOLESALE TRADE IN SEPTEMBER 1932.
Per Cent Change
From Same Month Last Year.
Commodity.
Net
Sales.
Stocks.
Ratio of
Accts. Outstanding to
CoiAccts. Outstanding. fusions. Net Sales.
Groceries
-lb.°
110.5
-20.8
--4.5
--26.1
Hardware
-23.2
--13.8
-17.8
300.5
--29.7
Dry Goods
--27.9
-25.5
-37.4
261.6
--33.5
Drugs
-21.4
-20.6
234.8
--29.1
--4.1
Shoes
-26.4
--42.1
-29.6
284.4
--35.4
Electrical supplies
-37.3
--I9.8
-29.1
--44.6
231.5
A greater than seasonal improvement likewise occurred in retail trade of
the district during September. Department store sales increased 40% in
the month as compared with a seasonal gain of but 24% and daily average
sales were more than half again as large as a month previous. Aggregate
sales by Chicago stores expanded 37% over August, those by Detroit stores
63%. in Indianapolis 53%, in Milwaukee 25%, while the dollar volume
sold by stores in other cities gained only 21%. As a consequence of the
heavy increases shown in September, the decline for the district of 22%
from a year ago was smaller than in a similar comparison for any month
since February. Stocks again increased, as is usual in September, but the
gain of 4%% was less than seasonal; the rate of turnover during the month
was slightly higher than last year-for the first time in 1932 so far.
DEPARTMENT STORE TRADE IN SEPTEMBER 1932.
Per Cent Change
September 1932
from
September 1931.
Locality.
Chicago
Detroit
Indianapolis
Milwaukee
Other cities
P.C.Change
9 Months
1932from
Same
Period1931
Ratio of August
Ratio of September
to Accounts
Outstanding
Aug. 31.
Net
Sales.
Stocks End
of Month.
Net
Sales.
1932.
1931.
---18.5
--27.5
---14.7
--26.4
--20.8
-34.4
-21.4
-30.3
-28.2
--26.2
--29.4
--25.4
--21.5
--26.4
--27.7
21.7
26.6
33.9
27.6
25.2
27.5
26.9
35.0
30.5
28.0
Seventh District
-22.0
-29.7
-27.3
25.8
28.3 .
Sales of shoes at retail during September expanded 75% over August,
according to data compiled from department store and dealer reports.
whereas the gain in September of the previous seven years has never been
much more than 50%, averaging 43%. The decline from last year, therefore, totaled only 20% as against 31% a month previous and 37% in July.
Stocks again increased somewhat, being enlarged 4% over Aug. 31, but
totaled 25% smaller than at the end of September, 1931.
Retail furniture sales also gained considerably in September over August-.
42%-the expansion being larger than usual for the period and comparing
with one of only 29% last year. Installment sales by dealers gained 5%
In the comparison, whereas a year ago they recorded a small decline. As
compared with last September, total sales by dealers and department stores
were 28%% smaller and installment sales 21% less. Practically no chango
took place between Aug. 31 and the end of September in stocks, which were
21% below a year ago.
In contrast to the decline shown in August from July and that registered
last September from the preceding month, chain store trade in September
this year recorded a gain over a month previous in the aggregate for reporting groups. Sales of 15 chains totaled 5% larger than in August, and the
decrease of 14% from a year ago compared with one of 20% a month previous. Among the groups to record gains in the current period were grocery
chains, rive-and-ton-cent stores, cigars, furniture, and musical instruments;
drug, men's clothing, and shoe chains experienced recessions in September
trade.
Mid-West Distribution of Automobiles Shows Decrease
During September as Compared with Month Previous-Third Consecutive Increase Reported in
Volume of Orders Booked by Furniture Manufacturers.
Automobile manufacturers further reduced output in
September-a seasonal action. Production of passenger
cars in the United States dropped to only 64,735 units, as
against 75,898 in August and 109,087 in September last year.
In the first nine months of 1932 output totaled 966,119
compared with 1,764,353 in the same period of 1931. Trucks
produced in September numbered 19,393, or 3434% more
than in the preceding month and 38% below a year ago;
output in the first three-quarters of this year totaled 190,326,
as against 351,594 in the corresponding months of 1931.
The Oct. 31 "Monthly Business Review" of the Federal
Reserve Bank of Chicago, in nothing this, also said as
follows:
Sales of automobiles likewise declined as Is usual in September. Wholesale distribution by reporting firms in the Middle West dropped 37% from
August, while retail sales were 17% smaller in number, both phases of
merchandising showing about the same declines as last year in the same
month. Differences between this year's volume and that of 1931 were
reduced somewhat further in the period. The number of new cars on hand
continued to be less than half that of a year ago. Used car sales fell off la
September,coincident with the decline in new car sales, and stocks remained
Financial Chronicle
Volume 135
low. The proportion of deferred payment sales to total sales of dealers
reporting the item was slightly higher than either a month previous or in
September last year, amounting to 54% as compared with 52% in August
and 51% a year ago.
MIDWEST DISTRIBUTION OF AUTOMOBILES.
Changes In September 1932 from Previous Months.
Per Cent Changefrom
New cars:
Wholesale:
Number sold
Value
Retail:
Number sold
Value
On hand Sept. 30:
Number
Value
Used cars:
Number sold
Salable on hand:
Number
Value
Aug. 1932.
Sept. 1931.
Companies
Included.
—36.8
—30.3
—38.3
—46.3
17
17
—16.9
—12.9
—33.9
—31.1
40
40
—12.8 '
—11.2
—54.1
—59.7
40
40
—21.5
—8.1
40
—3.9
—7.6
—30.1
—43.1
40
40
Regarding orders booked by furniture manufacturers, the
Bank reported as follows:
A third successive month-to-month increase in the. volume of orders
booked by furniture manufacturers reporting to this bank was recorded for
September, the gain of 26% over the preceding month—three times the
usual expansion—following upon increases of 67 and 11% in July and
August, respectively, the gain in July being considerably larger than usual
for the period and that for August contrary to trend. September shipments
were 36% in excess of the August totals, comparing with an average expansion of 11% and following an increase in August over July of 68%.
which increase was more than twice the average for the period. The spread
between current orders and shipments and those of September a year ago
amounted to only 30 and 34%. respectively, the average decline from 1931
for the nine-month period appreedmating 49% for orders and 47% for shipments. Although the aggregate of new orders booked was greater than the
total shipments made, currently, cancellations offset the difference to a
large extent, so that unfilled orders outstanding were only 1% in excess of
the volume of a month previous and amounted to approximately 74% of
current orders booked. The ratio of operations to capacity averaged 42%
during the month, nine points higher than a month previous and only five
points under that of September a year ago.
Lumber Production 20% and New Business 29%
Below Last Year.
Lumber production during the four weeks ended Oct. 29
was higher than during any month since May; new business
was lower than since August, according to telegraphic
reports to the National Lumber Manufacturers Association
from regional associations covering the operations of 701
leading softwood and hardwood mills. October orders were
slightly below the normal seasonal decline as compared with
July and August and were about 22% under the comparatively high record of September.
During the week ended Oct. 29, reported production was
123,484,000 ft. or 24% of capacity. New business was
127,424,000 ft. or 25% of capacity, compared with 26%
the previous week and 28% the week before. The Association further adds:
Hardwood production of 9,292,000 feet during the week ended Oct. 29
was the highest reported since June but this cut was by 258 mills as compared 248 mills reporting for the next highest week, that of Oct. 15, and
an average of 177 mills prior to October. Of the 258 mills included in
current report, 16 were northern hardwood operations which were not
producing. Although new business in relation to production has for many
weeks shown a more favorable ratio for hardwoods than for softwoods,
hardwood orders were the lowest during the week ended Oct. 29 of any
week since early August.
Of the softwood groups, the West Coast mills were the only ones to
report orders below production during the week ended Oct. 29 but their
drop in orders was sufficient to draw the softwood total relationship of
orders to cut to 99%. Southern hardwoods reported orders 42% above
production. Total orders were 103% of production.
Compared with last year the 604 identical mills reported decline of 20%
In production and of 29% in new business.
Lumber orders reported for the week ended Oct. 29 1932, by 459 softwood mills totaled 113,363,000 feet, or 1% below the production of the
same mills. Shipments as reported for the same week were 128,499.000
feet, or 13% above production. Production was 114.192,000 feet.
Reports from 258 hardwood mills give new business as 14,061,000 feet,
or 51% above production. Shipments as reported for the same week were
17.817.000 feet, or 92% above production. Production was 9,292,000 feet.
Unfilled Orders.
Reports from 395 softwood mills give unfilled orders of 363,262,000 feet.
on Oct. 29 1932, or the equivalent of 10 days' production. The 368 identical
softwood mills report unfilled orders as 356,278,000 feet on Oct.2 9 1932,
or the equivalent of 10 days' average production, as compared with 399,674,000 feet, or the equivalent of 11 days' average production on similar
date a year ago.
Last week's production of 421 identical softwood mills was 110,558,000
feet, and a year ago it was 135,629,000 feet; shipments were respectively
123,220,000 feet and 157.707,000; and orders received 109.296,000 feet and
155,634,000. In the case of hardwoods, 198 identical mills reported production last week and a year ago 7,997,000 feet and 12,338,000: shipments
15,130,000 feet and 16,591.000; and orders 11,502,000 feet and 14,513,000.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 217 mills reporting for
the week ended Oct. 29
UNSHIPPED ORDERS.
SHIPMENTS.
NEW BUSINESS
Feet.
Peet.
Feet.
Domestic cargo
Coastwise and
Domeetio cargo
delivery.-- _ 20.063.000 delivery- _ _ 95,922,000 intercoastal - 95,922,000
64,743,000 Export
Export....... 11,713,000 Foreign
12,585,000
40,092,000 Rail
19,324,000
Eon..------15.068,000 Rail
Local5,430,000
Local
5,430,000
Total ------52,274,000
Total
200,767,000
Total
60,489,000
3059
Production for the week was 62,289,000 feet. Production was 25%
and new business 21% of capacity, compared with 25% and 24% for
previous week.
Southern Pine.
The Southern Pine Association reported from New Orleans that for 116
mills reporting, shipments were 30% above production, and orders 13%
above production and 13% below shipments. New business taken during
the week amounted to 26.949,000 feet, (previous week 23,639.000 at 110
mills); shipments 31,044.000 feet, (previous week 27,802,000); and production 23,942,000 feet, (previous week 21.695.000). Production was 37%
and orders 42% of capacity, compared with 35% and 38% for the previous
week. Orders on hand at the end of the week at 105 mills were 67.087.000
feet. The 105 identical mills reported a decrease in production of 10%.
and in new business a decrease of 14%, as compared with the same week a
year ago.
Western Pine.
The Western Pine Association reported from Portland, Ore., that for
103 mills reporting, shipments were 26% above production, and orders
17% above production and 7% below shipments. New businessttaken
during the week amounted to 31,442,000 feet, (previous week 32,628,000
at 110 mills): shipments 33,675,000 feet, (previous week 36,544,000): and
production 26,795.000 feet, (previous week 27.216,000). Production was
21% and orders 25% of capacity, compared with 21% and 25% for the
previous week. Orders on hand at the end of the week at 103 mills:were
110.997,000 feet. The 93 identical mills reported a decrease in production
of 23%,and in new business a decrease of 15%,as compared with the same
week a year ago.
Northern Pine.
The Northern Pine Manufacturers of Minneapolis, Minn., reported production from 7 mills as 760,000 feet, shipments 2.257.000 feet and new
business 1.575,000 feet. The same number of mills reported new business
26% less than for the same week last year.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis.,reported production from 16 mills as 406,000 feet,shipments
1,034,000 and orders 1,123,000 feet. Orders were 14% of capacity compared with 8% the previous week. The 15 identical mills reported a decrease of7% in production and an increase of36% in new business,compared
with the same week a year ago.
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
production from 242 mills as 9,292,000 feet, shipments 16.934,000 and new
business 13,211,000. Production was 19% and orders 27% of capacity,
compared with 18% and 29% the previous week. The 183 identical mills
reported production 34% and new business 21% less than for the same week
last year.
The Northern Hemlock and Hardwood Manufacturers Association,rof
Oshkosh, Wis., reported no production from 16 mills, shipments 883.000
feet and orders 850.000 feet. Orders were 15% of capacity, compared with
17% the previous week. The 15 identical mills reported a decrease of 19%
in orders, compared with the same week last year.
Lumber Tariff Reduces Imports.
Lumber imports into the United States during the third
quarter of 1932 were only 16% of what they were in the
first half of the year, reports the National Lumber Manufacturers Association. If the last quarter of 1932 equals the
third quarter, which seems a reasonable assumption, imports
during the last half of 1932 will be only 30% of what they
were during the first half of 1932 and 23% of those of the
last h tlf of 1931. The decrease is attributed mainly to the
effects of the $3 increase in the tariff on lumber, which
became effective July 1. The Association continues to say:
Of the total imports during the third quarter. of 41,320,000 feet, 29,450,000 feet were softwoods from Canada and 8,638,000 feet were spruce
from Russia. Of the remaining 3,232,000 feet, 1,119.000 feet were softwoods from Europe and 2,113,000 feet were hardwoods, mostly from
Canada.
All these items showed marked decrease as compared with the first two
quarters of the year, except the imports from Russia, which were 6,571,000
feet during the first six months.
The greatest loss in the third quarter imports was fir and hemlock from
Canada, which dwindled to almost nothing in August and September.
Exports of fir and hemlock lumber and sawn timber to Canada showed
appreciable decrease in the third quarter of 1932 as compared with earlier
quarters of the year.
Lumber Sales Increased More Than Seasonally in
September—October Sales Show Normal Seasonal
Decline.
The September rise in lumber orders as reported by leading
manufacturers of the country to the National Lumber
Manufacturers Association was appreciably greater than
the seasonal upturn, as compared with September of the
years 1926 to 1930, inclusive, which may be considered a
"normal" period. September 1932 orders were approximately equal in volume to those of September 1931. The
week ended Sept. 17 was the highest week in 1932 for lumber
orders booked at reporting mills. The Association further
announced:
Decline of 20% in new business Is shown during the first three weeks
of October as compared with September, and of 14% as compared with
October of last year. The trend from September is normally downward.
The October drop this year was unusually great because of the high record
of September but conforms quite closely to the five year average decline
from August.
Orders received during September in the five years from 1926 to 1930
averaged less than 1% below those of similar averages for August. August
orders for the five years were 6% above the July average, and the October
average was 3% above that of July.
In 1932 July was the lowest month of the year in lumber orders received,
the total being approximately 40% less than in 1931. August showed an
increase of 28% above July. September reports indicated new business
17% above August.
Financial Chronicle
3060
Prices of New Plymouth Six Announced.
Walter P. Chrysler, President of the Chrysler Corp. on
Nov. 1, announced that the new Plymouth six would sell
at an average decrease of $60 per model from present prices.
Factory prices of the new Plymouth Six compare as follows:
"Four" Reduction.
-Siz"
Business coupe
Rumble seat coupe
Four-door sedan
Convertible coupe
$495
545
575
595
6565
610
635
645
$70
65
60
50
Proposal for Loan to China For Wheat Purchase Subject
of Conferences in Washington — Financing
Through Reconstruction Finance Corporation
Considered.
The question of financing through the Reconstruction
Finance Corporation the sale of 15,000,000 bushels of privately owned wheat to China was the subject of a conference
in Washington between Wilson McCarthy, a member of the
Corporation's board of directors, and George S. Milnor,
President of the Farmers' National Grain Corporation. A
dispatch from Washington Oct. 24 to the New York "Times"
reporting this went on to say:
After the conference, it was stated by an official of the Corporation that
an announcement with respect to a loan of between $7,000,000 and $8,000,000 might be made within the next twenty-four hours.
The Corporation, it was revealed, is ready to go ahead with the financing
immediately, provided it can obtain the signature of a bona fide American
concern to the note of the Chinese Government. It was on this point that
the conference between Mr. McCarthy and the head of the Farm Board's
central co-operative affiliate centered.
Although the project has been before the Corporation's legal division for
an opinion for a month, directors of the Corporation have been seeking
vainly for a guarantor.
The present effort is to induce the Northwestern Cooperative Association
to:underwrite the loan to China.
On Oct. 25 press advices from Washington stated that
further conferences were scheduled between Mr. Milnor,
and the Reconstruction Finance Corporation directors in
regard to the proposed 15,000,000-bushel Chinese wheat deal.
These advices added:
Milnor will communicate with the Northwestern Co-operative Association
to determine its views as to signing the note necessary before the Reconstruction Finance Corporation will make the loan for the deal.
The only obstacle retarding consummation of the deal is negotiations
necessary before either the Farmers' National or the Northwestern group
signifies its willingness to sign the note.
From Washington Oct. 27 a dispatch to the New York
"Journal of Commerce" said:
The Reconstruction Finance Corporation to-day appeared no nearer the
solution of its problem of finding some American co-operative to underwrite an $8,000,000 loan to China in order that that Government could purchase 15,000,000 bushels of United States wheat than it was several weeks
ago.
Despite many, optimistic reports that a suitable arrangement had been
made by the corporation with some co-operative to indorse the Chinese note
and an announcement would be forthcoming today, all indications to-day
were to the effect that such reports were false.
Efforts to induce George S. Milnor, general manager of the Grain Stabilization Corporation and president of the Farmers' National Grain Corporation,to use the name of the Farmers' National as indorsement of the Chinese
note have failed.
Unconfirmed reports today from the Pacific Northwest, where it is proposed that the grain shall be purchased for shipment to China, were to the
effect that the North Pacific Grain Growers,Inc., would indorse the Chinese
note.
Advices from Washington to the New York "Evening
Post" on Oct. 28 had the following to say:
Despite the announcement that the Northwest Pacific Grain Growers,
Inc., are willing to undertake a loan for a credit sale of 15,000,000 bushels
of wheat to China, there is little prospect of immediate consummation of
the deal, according to opinion in circles close to the Reconstruction Finance
Corporation.
Numerous conferences have been held here between corporation officials
and a representative of the Chinese Government, but it has been indicated
that further conferences and negotiations are necessary before the deal
can be brought to a successful conclusion.
Canada May Sell Wheat to China—Premiers to Consider Sending Envoy.
Associated Press accounts from Edmonton Oct. 28 were
published as follows in the New York "Sun":
A proposal to send an envoy to China to arrange sales of western Canada
wheat will be considered at the first meeting of the prairie premiers in
Regina tomorrow, it was learned today.
Leaving for Regina to attend the "prairie Parliament" session, Premier
J. E. Brownlee of Alberta announced such a proposal would be discussed
because of the "deplorable drop in wheat prices."
The emissaries would be commissioned to build up a demand for Canadian
wheat in the Orient. When sales were placed, all three of the provinces,
Manitoba, Saskatchewan and Alberta would benefit.
Premier Brownlee disclosed the idea was suggested to the western premiers
by Herbert Marier, Canadian Minister to Japan, who felt there was a wide
potential market in the Orient although there would be strong competition
from Australian wheat.
It is proposed the expenses of the envoy would be paid from the wheat
board surplus trust fund, which is devoted to the advancement of apiculture.
Premier John Backen of Manitoba and Premier J. T. M. Anderson of
Saskatchewan as well as Premier Brownlee will be in attendance at the
Regina meeting, the first to be held since the Winnipeg gathering of prairie
Nov. 5 1932
government officials decided to gather monthly to discuss problems common
to each province.
Imported Wheat Barred by Price Declines.
The Brooklyn "Daily Eagle" reported the following from
Washington yesterday (Nov. 4):
For the first time in the history of this country wheat has been worth no
more on the market than the amount of the tariff designed to protect it
from foreign competition.
The import duty on wheat is 42 cents a bushel. When prices were at
their lowest in Chicago yesterday the December contract for future delivery dropped below 42 cents a bushel.
Thus the domestic price was less than the amount of the tariff, Since
the market price of wheat and the tariff were actually equal, the rate of
duty automatically approximated a 100% tariff.
Practically it meant that wheat was worth no more on American markets
than it costs a foreign competitor to get wheat into this country above its
cost to him. Since the foreign seller to make a profit must first charge
enough for his wheat to get back the amount of the tariff, the drop in domestic prices closed the door completely to foreign competition.
The breaks sent statisticians back into medieval Europe and records to
find a lower set of values and was estimated to have carried the farm value
of western Nebraska No. 2 wheat for Chicago delivery possibly a little
below 20 cents a bushel.
Declines in Price of Wheat Explained by Department
of Agriculture—Ascribed to Weakness in Foreign
Exchange and to Better Crop Prospects.
The recent declines in wheat prices at Chicago and Winnipeg to the lowest levels on record were ascribed by the Department of Agriculture Oct. 31 to weakness in foreign exchange,
improved crop prospects in the Southern Hemisphere and
increased moisture in domestic Winter wheat areas and lack
of buying support. The Department gave these reasons for
the decline in a review of recent trends of the grain markets.
The Department's summary of its review was given as
follows in the "United States Daily" of Nov. 1:
Domestic wheat markets were sharply lower during the week ended Oct.
28 and futures at Chicago reached the lowest point in the history of that
market. Weakness in foreign exchange, sharp declines at Winnipeg where
buying support was lacking,improved prospects in the Southern Hemisphere
and increased moisture in domestic Winter wheat areas were principally
responsible for the weak wheat situation.
Cash wheat did not follow the full decline in futures since offerings were of
only moderate volume and milling inquiry was fairly active. Corn futures
declined with wheat but cash grain was relatively firm with smaller marketings meeting a steady demand from industries, shippers and feeders. Oats
and barley markets were dull and without special features. Rye was lower
with wheat while flax declined slightly under the same influence.
World's Exportable Supply of Wheat 60,000,000 Bushels
Below 1931 Total.
The world's exportable supplies of wheat this year are
60,000,000 bushels below the 1931 total, the International
Institute of Agriculture reports according to Associated Press
accounts from Rome (Italy) Nov.2 which added:
This drop is offset by a fall of 170.000,000 bushels in the probable requirements of importing countries, according to the institute. This situation has
been caused by poor crops in the exporting countries and good crops in the
importing countries, coupled with an abundance of rye, corn and potatoes.
the institute says. Stricter regulations of international wheat trade also are
held to have played a part.
The total amount of wheat available for export is fixed at 1.300,000.000
bushels. Of this amount 570.000,000 bushels are old stocks and 738,000,000
bushels represent the new crop surplus.
Since the old exportable stocks are adequate to meet almost nine tenths
of the needs of importers, virtually the entire surplus of the 1932 crop will
be carried over for consumption in 1933 and 1934.
It is estimated that the existing stocks have increased by 110,000,000
bushels.
The report states "it is to be hoped that the general economic situation
of the world shortly will improve and that international trade will again
regain normal movement, so that the formation of such a heavy burden of
stocks may be prevented."
Buenos
Aires Wheat Drops— Decline of 4 cents
Prices Lowest in Seventy Years.
Puts
The following Buenos Aires cablegram Oct. 31 is from the
Nw
ewheItOprrkices
"
che
ed
s"t:he lowest level in seventy years here today, when
T
rea
iin
they declined an equivalent of four cents a bushel from Saturday's figure,
closing at 5.70 pesos a quintal, equal to 40 cents a bushel. Prices had held
fairly well a week ago despite the declines in the Northern Hemisphere. but
they succumbed today to heavy bear pressure, which carried corn down the
equivalent of1 cents a bushel to 28 cents and flaxseed to 8.85 pesos a quintal,
or 57( cents, compared with 59 cents on Saturday (Oct. 29).
Chile to Take Over Wheat Crop to Insure Enough
Bread for All.
According to a cablegram Oct. 29 from Santiago, Chile,
to the New York "Times" the Chilean Government contemplates taking over the nation's entire wheat crop in the
next harvest, allowing no holding of private stocks, no
exporting and no speculation, in order to insure a sufficient
supply for bread for the people. The cablegram added:
The flour problem is becoming acute, due to lack of wheat. It has been
necessary to import from Argentina.
Among the suggestions considered is that the government compel the
farmers to turn over uncultivated land to the jobless to raise wheat. It is
also proposed to ban the exporting of barley, corn and oats, which can be
mixed with white flour.
Volume 135
Financial Chronicle
3061
Delegates at Annual Meeting of Saskatchewan Wheat
Pool Ask Federal Subsidy for Western Growers.
Under date of Nov. 2 Associated Press advices from
Regina, Saskatchewan said:
Two steamers have already arrived here with 105,300 bags or
13,899,600 pounds and the other 12 are racing northward
with an additional 245,000 bags, containing 32,240,000
pounds. The Exchange yesterday (Nov. 4)further Said:
Request for a Federal subsidy on grain production in the West will be
made to the Federal Government by delegates attending the eighth annual
meeting of the Saskatchewan wheat pool.
A resolution to this effect was approved last night and will be forwarded
to Ottawa. More than 150 delegates from all parts of the Province attended.
The port of Santos which is the outlet for the state of Sao Paulo, the
great coffee-producing state of Brazil, was blockaded on July 11th by
Federal warships. One steamer, the Paraguayo, with 13.450 bags of coffee
on board, broke through the blockade on July 14th but after that there were
no more shipments until the port was re-opened on October 12th, two weeks
after the Revolution came to a close.
During the interval of the Revolution an acute scarcity of Santos coffee
developed in this country and in many cases roasters were forced to substitute other coffees for the desired Santos in their blends. Now the steamers
are racing northward to recapture the American markets which were largely
in the hands of other producing countries while the Revolution was in
progress.
Irish Free State to Assume Control of all Cereals.
According to Associated Press accounts from Dublin Oct.
27 the text of a Government bill designed to give the state
control of growing and milling of all cereals and importation
of all foodstuffs for live stock was made public that day.
The cablegrams added:
The bill provides for registration of growers, millers and importers, who
alone will be permitted to deal for resale in the products affected by the bill.
The measure fires standard prices for home-grown wheat and provides a
bounty for such wheat, but only when grown on registered areas.
The standard price for 280-pound barrel of wheat would be 23 shillings
d pence between the months of August and December in 1933 and 1934
under the bill. This is equivalent currently to about$4.
Between January and July in 1934 and 1935 the price would be 25 shillings,
currently equivalent to $4.25. The bounty will be equal to the difference
between the ascertained and standard prices per barrel.
Price of Milk Reduced in Philadelphia—New Retail
Price 9 Cents a Quart and 5 Cents a Pint.
The retail price of milk in Philadelphia was reduced to
9 cents a quart and 5 cents a pint on Nov. 1. The cut,
which was announced on Oct. 29, according to the Philadelphia "Ledger" of Oct. 30, follows a lengthy price conference between officials of the Interstate Milk Producers
Association, representing farmers in the Philadelphia Milk
Shed, and Dr. Clyde L. King, Chairman of the Public
Service Commission, acting as arbitrator.. We also quote
as follows from the "Ledger":
An agreement was reached on Oct. 29 when Dr. King announced
the reduction of 1 cent on pints and quarts had been necessitated because
of over-production among farmers and a decrease in consumption.
The price conferences have been in progress for more than a month
at headquarters of the Producers' Association in Philadelphia.
The organization handles the product of more than 23,000 farmers in
southeastern Pennsylvania, south New Jersey, Delaware and Maryland's
eastern shore region, comprising the Philadelphia Milk Shed. All Philadelphia distributors, with the exception of those who maintain their own
farms, obtain their supply through the Association.
The statement issued by Dr. King was reported as follows
in the "Ledger":
After many days of price conferences and after another full day spent
yesterday, it was decided that for a long time interests of the Philadelphia
market indicated a price of 9 cents on quarts and 5 cents on pints. This
means a reduction to the consumer of 1 cent on quarts and 1 cent on pints
and will become effective Nov. 1.
In view of the amount of milk now produced in the Philadelphia Milk
Shed,it was found necessary at this time to reduce the price to the producers
to meet market conditions from $2.40 to $2.18 per hundred weight, a
reduction of 22 cents per hundred weight to the producers.
The reduction in price to the consumers as compared with this reduction
in price to the farmers means a decrease in the spread taken by milk dealers
from farmers to consumers of 35 cents per hundred pounds.
November Release of 62,500 Bags of Brazilian Coffee
Held by Grain Stabilization Corporation Sold
at Higher Prices.
Sealed bids were opened at noon on. Nov. 1 by the Grain
Stabilization Corporation for its November release of 62,500
bags of coffee. The sale of this,—the third allotment,—was
made at prices ranging from 10.27 to 10.77 cents a pound,
or nearly 1 cent a pound above the closing prices for December futures in the Santos contracts on the New York Coffee
and Sugar Exchange, according to the New York "Times"
of Nov. 2, which also had the following to say:
As a result of the unexpectedly high bids received for the coffee held by
the Farm Board affiliate, there was a rally on the Exchange and Santos
prices closed with gains ranging from 8 to 11 points, with the widest gain
in the December position, while Rio contracts were up from 2 to 3 points,
The coffee sold represented the third monthly sale from a block of 1.050,000 bags received in exchange for 25.000.000 bushels of wheat sent to
Brazil. Prices for the first sale ranged from 14.27 to 14.53 cents a pound,
while the second sale brought from 10.55 to 11.56 cents.
Reference to the September sale of the coffee by the Grain
Stabilization Corporation was made in our issue of September
3,page 1582; the bids for October were noted in these columns
Oct. 8, page 2406.
14 Coffee Laden Steamers Cleared from Port of Santos
(Brazil) Since Re-opening of Port—Two Steamers
with 103,500 Bags Already Arrived.
Fourteen coffee-laden steamers have cleared from the port
of Santos, Brazil for this country since the port was re-opened
following the close of the Brazilian Revolution, according to
cables received by the New York Coffee and Sugar Exchange.
$1,000,000 Coffee Advertising Campaign Arranged by
Coffee Council—T. C. Russell Sales Agent, of
Grain Stabilization Corporation to Head Committee.
A $1,000,000 coffee advertising campaign in the United
States has been arranged by the Coffee Council according to a
report from Rio de Janeiro Oct 29 to the New York "Times"
which added:
The contract is to be the largest of the kind ever placed by Brazil. The
Brazilian-American promotion committee will supervise it.
The council's officials say the campaign will include newspapers, magazines, radio and home canvassing, and it is believed a large increase in
consumption of Brazilian coffee will result. The contract will be signed
after minor modifications by the council.
From the New York "Journal of Commerce" of Nov. 4 it
is learned that Frank C. Russell, coffee sales agent of the
Grain Stabilization Corporation, has been appointed Chairman of the committee which will spend $1,000,000 in an
advertising campaign to promote increased coffee consumption in the United States. • The vice chairman is Sebastiao
Sampaia, consul general of Brazil in New York. The paper
quoted likewise said:
Other members of the committee include 0. Q. Artier of the BrazilianAmerican coffee promoting committee, Mr. Brownlee of General Foods,
Traver Smith of Standard Brands, Mr. Walker of Arbuckle, Berent Friele.
American Coffee Corporation: Miles Ryan, formerly with California
Packing Co.: John Hancock of Jewel Tea Co. and Philip Coste.
N. W. Ayer & Son, Inc., will handle the advertising campaign. They
have been the publicity directors of the Brazilian coffee promotion committee for the past four years.
Mr. Friele, it is understood, has just landed in Europe after a trip by
zeppelin from Brazil. It is understood he will leave Europe on the Bremen
and arrive in this country on November 10.
Newspapers will be used for the larger part in the campaign to promote
increased coffee consumption, but definite announcement of the plans will
not be announced until Mr. Friele returns.
Brazilian Government Denies Permission to Reship
to Santos Merchandise Destined for that Port but
Unloaded in Rio During Revolution.
Under date of Nov.1 an announcement by the Department
of Commerce at Washington said:
It still is impossible to secure permission from the Brazilian government
to reship to Santos merchandise originally destined there but unloaded
In Rio de Janeiro during the revolution which closed the port of Santos,
according to a cablegram to the Commerce Department from its office in
Rio de Janeiro.
The government has made it possible, however, for merchandise destined
for Santos but unloaded in Rio de Janeiro prior to October 4 to be cleared
through the Rio de Janeiro customs without paying port charges other than
2% gold, provided that the merchandise is so cleared before November 30.
Sugar Trading During October on New York Coffee
& Sugar Exchange Showed Improvement.
Volume of sugar trading on the New York Coffee & Sugar
Exchange showed an improvement for the month of October,
1932, the Exchange reported on Nov. 1. Turnover of sugar
futures for the month was 365,900 tons compared with 348,700 tons in September, and 321,950 tons in October, 1931.
Volume of sugar trading this year is running only slightly
behind 1931. For the first ten months of 1932 the turnover
was 4,767,050 tons compared with 5,171,000 tons in the first
ten months of 1931.
Larger Exports Than Imports of Cattle Hides During
September Reported by New York Hide Exchange.
Foreign trade in cattle hides during September again
showed an excess of exports over imports, marking the third
consecutive month in which this unusual movement has
taken place, according to a review published Nov. 2 by the
• New York Hide Exchange. According to the review the
imports of cattle hides have been sharply curtailed, the imports during the first nine months of this year amounting to
only 810,000 hides, compared with 1,395,000 hides during the
corresponding period in 1931 and 3,344,000 hides during the
same period in 1930.
3062
Financial Chronicle
President Machado Signs Decree Limiting Cuba's
Sugar Crop to 2,000,000 Tons.
The following from Havana, Nov. 2, is from the New
York "Times":
President Machado this afternoon signed a decree limiting Cuba's 19321933 sugar crop to 2,000,000 tons and fixing Feb. 1 as the date for the grinding season to start.
The tonnage fixed in this decree, plus the 700,000-ton pool which is to
be liquidated after June 1 1933, and 300.000 tons which must be sold yearly
out of the 1,500,000 tons segregated in 1930 under the terms of the Chadbourne plan, constitute the total of 3,000,000 tons ofsugar Cuba will market
next year.
Limitation of the coming sugar crop to 2,000,000 tons,
with grinding to begin on Feb. 1, was recommended on Oct.
28 to President Machado by the Sugar Institute after a
three-hour session that morning, said a cablegram to the
"Times" from Havana on Oct. 28, which further stated:
While the Chief Executive has not yet signed a decree putting the suggestion into force, he is expected to do so soon. It is understood he is in
complete agreement with the views of the Institute.
I. Thus the1932-33 crop probably will be reduced about 706,000 tons from
the amount ground last year. However, Cuba must liquidate in the coming
year the 700,000-ton pool formed last July as well as the 300,000 tons
that must be sold yearly from the sugar segregated under the Chadbourne
plan.
The quota recommended for shipment to the United States is fixed at
1,114,991 tons, to other countries 735,009 tons, and for domestic consumption 150,000 tons.
The amount to be produced by individual mills will be calculated according to last year's quotas, in which proportional reductions will be made.
To-day's recommendations have somewhat clarified the situation here
and dispel the possibility that the crop would be equal to last year's, which
had gained many adherents in the past three weeks.
Cuban Sugar Crop at 2,000,000 Tons Smallest in 20
Years According to New York Coffee & Sugar
Exchange, Inc.
The 1933 Cuban sugar crop, which has been fixed by
Presidential decree at 2,000,000 tons, will be the smallest
Cuban crop in 20 years, according to the statistical department of the New York Coffee & Sugar Exchange and will
represent a decrease of 23% compared with the 1932 crop
of 2,603,000 tons. The Exchange yesterday (Nov. 4)
reported:
Cuba made the largest crop in its history in 1929 with an output of
5,156,000 tons. Since then the production has declined steadily. In
1930 the production was 4,671,000 tons and in 1931 was 3,122,000 tons.
The 1933 crop of cane sugar is now growing and the grinding into the
actual raw sugar will commence on Feb. 1 to continue until May 31. During
that period no more than 2,000,000 tons of actual raw sugar may be produced by the Cuban centrals.
On Oct. 15, there were 884,069 tons segregated in Cuba under the Chadbourne plan. An additional 700,000 tons was segregated this summer
by Presidential decree and this amount also remains in Cuba and cannot
be sold until July 1 1933, unless the price reaches 1.50 cents a pound and
remains there for five consecutive days. However, recent rumors from
Cuba say that not 700,000 tons but only 561,000 tons of that amount was
segregated.
Nov. 5 1932
SUMMARY,
Imports During the Month.(x) Storage at End of Month.(x)
1932.
1931.
1930.
1932.
1931.
1930.
52,238
53,574
38,866
30,953
34,233
31,355
38.050
81,412
53,F59
58,775
49,294
47,827
57,391
29,446
42,264
46.825
37,315
58,411
48,040
70,490
67,999
50,617
43,175
42,234
39,990
37,515
22.598
22,369
47,063
51,147
58,292
65,594
55,293
64,616
62,905
70,570
62,675
57,849
59.159
53,048
50,721
52,228
49,393
54,465
-------
51,814
45,399
47,407
35,497
32,688
37,352
29,921
41.878
36,099
49.921
67,275
69,460
78,284
68,648
57,773
53,704
35,477
28.450
35,565
44.978
47,621
51,278
49,238
58,430
Total
454,320
Average monthly-- 45,432
605.919
50,493
549,884
45,824
57,616
45:393
50-,619
January
February
March_
April
May
June
July
August
September
October
November
December
Approximate Deliveries
to American Mills.(y)
January
February
March
April
May
June
July
August
September
October
November
December
Approximate Amount of Japan
Silk in Transit Between Japan
and New York End of Month.
1932.
1931.
1930.
1932.
1931.
1930.
58,793
45,909
46,761
35,779
32,923
37,488
38,382
59,905
59,s94
53,703
55,910
54,242
55,383
.41,356
45.073
42,161
44.746
46,454
53,819
56,668
50.645
48.432
57.683
49,852
50,863
41.584
40,823
29,396
39.948
41,734
55,649
61,937
57,333
55,424
48,500
31,000
28,800
34,800
30,800
31,100
43,158
43,400
42,F00
44,700
37,700
37,700
21,300
24,800
36,900
33,400
41,600
40,500
53,200
59,700
50,800
53.900
37,000
24,000
17,800
8,000
7,700
16,300
31.200
41,700
51,600
46.400
45,500
35,800
-
Total
469,315 594,889 582,226
Average monthly..
49,574
48,519
37,906 40.958 30,233
46,932
P x Covered by European manifests Nos 43 to 47 inclusive, Asiatic manifests Nos.
204 to 229 inclusive. y Includes re-exports. z Includes 2,546 bales held at terminals
at end of month. Stocks at warehouses include National Raw SilkkExchange
certified stocks 3,030 bales.
British Mills Shut By Spinners' Strike.
Under date of Oct. 31, Manchester (England) adviees to
the New York "Times" said:
Following rejection by the cotton spinners of a wage agreement..their
leaders had reached with the employers, a majority of the spluninemille
throughout Lancashire were closed to-day and nearly 200.000 workers
were idle. Some few mills were still running at the old rate.
The strike will continue at least a week and meanwhile ballots are being
taken by the operatives, with their executives strongly urging acceptance
of the settlement. There is no doubt of the outcome, as a four-fifths
majority is necessary to continue the strike. The leaders had agreed to a
wage reduction of one shilling sixpence halfpenny in a pound.
Petroleum and Its Products-Texas Legislature Urged
to Enlarge Powers of Commission in Regulating
Oil Flow-Sterling Warns of Return of "Chaotic
Condition" Otherwise.
In a message to the Texas State Legislature, which convened in special session Thursday, Gov. Ross Sterling yesterday strongly urged that immediate authority be given the
Railroad Commission to consider market demand as well as
physical waste in determining the rate of production of crude
Increase of 14.5% Reported by Silk Association of oil under its conservation authority.
America in Employment in Silk Industry During
The Governor reminded the Legislature that the validity
September As Compared With August.
of the new basis has been upheld by the United States
Employment increased 14.5% in the silk industry during Supreme Court, and that such legislation could not be legally
September as compared with the previous month, the construed as "price fixing." Ho pointed out that failure
Silk Association of America, Inc., reports, and was 5.9% to so empower the Commission will result in the return of
higher than September 1931. Broad silk loom employment "chaotic conditions" to the Texas petroleum fields, and a
increased 17.5%; narrow silk loom employment increased consequent serious drop in the State's receipts which now
7.2%, and spinning spindle employment increased 10.2% average $16,000 a day, but which would dwindle to a few
during September, as compared with August. Machinery thousand dollars daily, if production ran wild and prices
operations during September increased 23.8% for broad again hit bottom.
It is generally believed that the Legislature will adopt the
looms; 13.8% for narrow looms, and 23.5% for spinning
new amendment, and that the Railroad Commission will
spindles, as compared with the previous month.
thus be in a position impregnable to court attacks, such as
Raw Silk Imports During October 1932 Were 16.6% the recent injunction which held that they had operated outLower Than During Same Month in 1931- side their province in regulating the flow of crude. This
Deliveries Off 5.2%-Inventories Increase.
decision, which indirectly brought about the calling of a
According to the Silk Association of America, Inc., imports special session of the Legislature, threatened to disrupt the
of raw silk in October 1932 totaled 58,775 bales, a decrease entire industry. Prices of crude oil are now on a basis promisof 16.6% as compared with the corresponding month last ing profit to operators for the first time in years, and this
year when imports amounted to 70,490 bales. The former status has been brought about by the strict enforcement of
curtailment measures promulgated by the Railroad Comfigure also compares with 56,859 bales in September 1932.
Approximate deliveries to American mills during October mission in conjunction with committees of producers.
Standard of New Jersey this week explained its stand
1932 amounted to 53,703 bales as against 59,694 bales in the
upon the new crude prices, which their subsidiaries ignored.
preceding month and 56,668 bales in October 1931.
Stocks at warehouses on Oct. 31 1932 were 54,465 bales as Standard stated that it would be glad to pay, through its
compared with 49,921 bales a year ago and 49,393 bales a subsidiaries, higher prices for crude "when the product values
realized by its refineries justify higher prices." Standard
month previous. The Association's statement follows:
RAW SILK IN STORAGE.
holds that its product prices must justify crude prices, and
York City and Hoboken.)
not
(As reported by the principal public warehouses In New
the other way around. "Almost without exception
European.
Japan.
All
Other.
Total;
Figures in Boles2,712
49,393
1,282
45,399
product
values have failed to justify posted crude prices in
1932
Oct.
1
In storage,
2,851 51,227
4,897 58,775
Imports, month of Oct. 1932.x
any month since the summer of 1929," its statement declares.
4,133 96,626
7,409 108,168
Total available during Oct. 1932
"Purchasers of crude have paid these posted prices as their
2,133 48,270
4,062 54,465
In storage Nov. 1 1932.z
contribution to the conservation efforts of the State conserAmerican
mills
APproximate deliveries to
vation agencies. Crude prices are to-day profitable to the
3,347 53,703
2,000 48,358
1932-y
Oct.
during
Financial Chronicle
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
Bradford, Pa
$1.72 Eldorado, Ark., 40
$0.75
Corning, Pa
.85 Rusk, Tex., 40 and over
.95
Illinois
1.10 ,Salt Creek, Wyo., 40 and over-... .94
Western Kentucky
1.05'
Creek
.so
Mid-Continent, Okla., 40 and above 1.12!Darst
Midland Dist., Mich
.85
Hutchinson, Tex., 40 and over__ .871Sunburst,
Mont
1.05
Spindletop, Tex., 40 and over
.90 Santa Fe Springs.Calif.,40 and over 1.00
Winkler, Tex
.75 , Huntington, Calif., 26
1.00
Smackover, Ark., 24 and over
.76IPetrona. Canada
1.90
REFINED PRODUCTS-ATLANTIC
REFINING ADOPTS DISCOUNT PLAN-STRENGTHENING OF
MARKET EXPECTED
TO FOLLOW SETTLEMENT OF TEXAS
CRUDE SITUATIONKEROSENE SALES IMPROVE SEASONABLY
-BUNKER FUEL
OIL AND DIESEL STEADY.
Total
Week
Ended
Oct. 22
1932.
Average
4 Weeks
Ended
Oct. 29
1932.
Week
Ended
Oct. 31
1931.
395,400
95,900
44,100
47,350
24,850
148,900
49,350
341,800
52,900
29,300
34,000
126,300
34,750
98,900
22,700
34,000
6,400
2,700
31,900
475,100
399.550
99,150
49,450
47,480
24,650
162,350
51,900
362.650
53,750
30.000
33,850
122,600
34,950
100,250
23,150
33.200
7,300
2,700
32,150
488,100
387.150
99.100
45,950
48.050
24,600
161,700
51,950
366,650
54,400
29,900
33,950
127,550
34,200
99,900
23.100
33,250
7,050
2,750
31,900
476,900
519,050
102,950
64.700
57,450
2/.150
191,800
56,450
417,700
54,050
28,900
37,750
124,400
31,850
111,400
13,400
38,850
8,050
4.250
44,200
496,900
2006600 2 159 150 2 140 000 2431.250
CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS AND GAS AND FUEL
OIL STOCKS, WEEK ENDED OCT. 29 1932.
(Figures In Barrels of 42 Gallons Each.)
Daily Refining Capacity
of Plants.
District.
Reporting.
Potential
Rate.
644,700
144,700
434,900
459,300
315,300
555,000
146,000
89,300
152,000
915,100
Total.
%
99.1
95.0
97.5
88.4
72.1
98.2
97.3
94.6
91.4
94.6
akfotor
Gas and
Fuel
%
Fuel Oil
Daily Oyer- Stocks.
Stocks.
Average. ated.
64.7 12,990,000 8.735.000
729,000
62.5 1,514,000
69.1 6,006,000 4,093,000
49.8 4,624,000 2,996,000
36.5 1,301,000 2,102,000
68.8 5,270.000 9.868,000
47.2 1,448,000 3,814,000
194.000
49.7
530,000
457,000
22.3 1,166,000
51.7 14.964,000 100,580,000
CO
East coast
Appalachian_.._
Ind., Ill., Ky
Okla., Kan., Mo.
Inland Texas _ _ _
Texas Gulf
Louisiana Gulf.._
No. La.-Ark._ _ _
Rocky Mountain
California
Crude Runs
to Stills.
NM
Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
East Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texas
Coastal Louisiana
Eastern (not Including Michigan)
Michigan
Wyoming
Montana
Colorado
New Mexico
California
1Veek
Ended
Oct. 29
1932.
§§§§§§§§§§
Nov. 1.-All markets Increase third grade gasoline 234c. a gallon in
St. Paul and Minneapolis. Minn.
Nov. 2.-Standard Oil Co. of New York cuts tank wagon and service
e
l tation gasoline price He. a gallon in Utica.
DAILY AVERAGE PRODUCTION OF CRUDE OIL.
(Figures in Barrels of 42 Gallons.)
V
Although there is general expectation in the Eastern trade
of an advance in the gasoline price structure, the
situation
was complicated this week by the announcemen
t that
Atlantic Refining Co. had adopted the cash discount
system,
meaning a price cut of from one to three and a half
cents a
gallon, depending upon quantity.
The discounts, which have become applicable
throughout
the company's territory,. will probably be met
by cogpetiting organizations. This wilrinean that
competition
will again become keen in this territory, possibly
delayiii
the upward price revision.
The gasoline markets of the country were
generally
stronger this week, and this position will become more
stalire
when the Texas crude situation is settled and the
Railroad
Commission there empowered to enforce its proration
rulings.
A reduction in stocks of motor fuel has also
strengthened
the general undertone.
The weather changes have had their seasonable
effect on
the kerosene situation. As the weather turns colder,
sales
increase, and the market is firm on a basis of 53'c. for
41-43
water white, in tank cars at refineries. Sales are improving,
and forward business is being booked more freely.
Grade C bunker fuel oil showed improvement this week,
with the price of 75c. a barrel well sustained. Diesel is firm
and unchanged at $1.65 a barrel, at refinery.
The Atlantic Refining Co. announcement, which became
effective Nov. 1, permits a discount of 2c. per gallon in
Delaware and Pennsylvania, to be allowed retail accounts on
purchases of 2,000 gallons or over per month, and in the
remainder of the territory lc. per gallon on a similar minimum
quantity. Wholesale discounts will be 2Y2c. per gallon
on 20,000 to 100,000 gallons monthly, 3c. on 100,000 to
300,000 gallons, and 33'c. on 300,000 gallons and up per
month.
Other price changes follow:
Daily Average Production of Crude Oil DeclinesGasoline Stocks Off 288,000 Barrels.
According to the American Petroleum Institute, the
daily average gross crude oil production for the week ended
Oct.29 1932 was 2,096,600 barrels, compared with 2,159,150
barrels for the preceding week, an average of 2,140,000 barrels per day for the four weeks ended Oct. 29 1932 and
2,431,250 barrels daily for the week ended Oct. 31 1932.
Gasoline inventories declined from 49,765,1)00 barrels at
Oct. 22 1932 to 49,477,000 barrels at Oct. 29, a decline of
288,000 barrels.
Reports received during the week ended Oct. 29 1932
from refining companies controlling 93.6% of the 3,856,300
barrel estimated daily potential refining capacity of the
United States, indicate that 2,040,000 barrels of crude oil
daily were run to the stills operated by those companies and
that they had in storage at refineries at the end of the week
31,376,000 barrels of gasoline and 133,904,000 barrels of
gas and fuel oil. Gasoline at bulk terminals amounted to
11,856,000 barrels and 1,385,000 barrels were in waterborne transit in or between districts. Cracked gasoline
production by companies owning 95.4% of the potential
charging capacity of all cracking units averaged 438,000
barrels daily during the week.
The report for the week ended Oct. 29 1932 follows in
detail:
-T't'r,r,
average producer. Wholesale gasoline prices are unprofitable,
and have been for months to the refiner who buys his crude
at the posted price. A relatively small surplus or shortage in
volume determines the wholesale prices of products."
Continuing in this vein, the company declares that"Standard Oil Co. of N. J. is unable to find any equity in - situation
that would require it to pay as a large buyer, more for crude
than is paid by innumerable small buyers, who have secured,
and are still able to secure, their entire crude production requirements at less than the prices Jersey has currently
posted. On the same basis, this company can hardly be
expected to pay a price for crude higher than the equivalent
price which a number of producer-refiners make on their
crude that they sell in the form of gasoline.
"Of the approximately twenty companies which post
prices in the Mid-Continent and Texas, at least seven produce more crude than they require. They sell this surplus
crude in units having refinery requirements in excess of
their own production. Four companies of the other thirteen
are normally about in balance between their production and
refinery requirements. Of the nine units that actually purchase in substantial quantity, three buy more barrels of
crude than all others combined, and two of these three
account for nearly 50% of the total crude purchAses in
the Mid-Continent and Texas. All twenty are integrated
companies,aggressively competing for retail markets."
Despite the position of the powerful Standard units, the
higher prices recently posted by other companies still stand.
It is the hope of producers that the action of the Texas
Legislature will serve to bring production further down to a
point where prices can substantially be levelled off on a
basis which will allow profit to everyone concerned.
There were no crude price changes posted this week.
3063
Gasoline, Service Station, Tax Included.
New York
8 15 Cleveland
8.185 New Orleans_
8.128
Atlanta
19 Denver
.20 Philadelphia
.14
Baltimore
.194 Detroit
125 San Francisco:
.175 Houston
Boston
18
139
Third grade
175 Jacksonville
Buffalo
Above 65 octane_- .180
195
15 Kansas City
Chicago
Premium
155
.214
185 Minneapolis
Cincinnati
147 St. Louis
14
Kerosene, 41-43 Water White, Tank Car Lots, F.O.B. Refinery.
N.Y.(Bayonne)... 0514 Chicago
$.0234-.0334 New Orleans.ex_ _.80.03M
Los A ng..ex- .0434-.06
North Texas
03
Tulsa_
.0414-.0334
Fuel Oil. F.O.B. Refinery or Terminal.
N.Y.(Bayonne)California 27 plus D
Gulf Coast C
8.60
8.75
Bunker C
3.75-1.00 Chicago 18-22 D-4234.50
Diesel 28-30 D---- 1.65 New Orleans C
.60 Philadelphia C
.70
Gas Oil, F.O.B. Refinery or Terminal.
N. Y.(Bayonne)Chicagof Tulsa
8.0134
32-88 00
28 plus0 0-$.0334-.04
8.0134 i
Gasoline. U. S. Motor (Above 65 Octane). Tank Car Lots, F.O.B. Refinery
N. Y.(Bayonne)N.Y.(Bayonne)Chicago
8.0534-.05
Standard 011, N..1.Sinclair
8.0734 New Orleans,ex. .05-.05$
Motor, 60 ooPan-Am.Pet.Co.. .06
Arkansas
.04-.04
Lane
Shell Eastern Pet .0718 California
8.063-1
.05-.07
Motor, 65 00New YorkLoa Angeles. ex_ .0434-.07
07
Colonial-Beacon. .0638 Gulf ports
taste
05-.0534
Motor,standard .07
Crew Levick
Tulsa
06
.05-.05)(
Stand. Oil, N. Y.. .07
06
z Texas
Pennsylvania-.
.0534
Tide Water 011Co .0834
Gulf
0634
Richfield Oil(Cal.) .06
Continental
07
Warner Quin. Co. .07
Republic 011
o.06
*Below 65 octane. z"Fire Chief" .0634•
"Standard Oil of N. Y. now quoting on basis of delivered price not more than
Sc. per gal, under company's posted service station price at point and date of delivery but In no event less than 8340. a gal., f.o.b. New York Harbor. exclusive
of taxes.
N
155”=.7
Volume 135
Total weekOct. 29 1932_ _ 3,856,300 3,609,800 93.6 2,040,000 56.5 c49477000 133.904.000
Oct. 22 1932_ _ 3.856.300 3.609.800 93.6 2.145.000 59.4 49,765.000 134.755,000
a Below is set out an estimate of to al motor fuel stocks on U. S. Bureau of Mines
basis for week of Oct. 29 1932, compared with certain October 1931 Bureau figures:
3064
Financial Chronicle
A. P.!. estimate B.of M. basis week Oct. 29 1932-b
50,600,000 barrels
U. S. B.of M. motor fuel stocks Oct. 1 1931
50,122,000 barrels
U.S. B. of M.motor fuel stocks Oct. 31 1931
50,439,000 barrels
b Estimated to permit comparison with A. P. I. Economics report, which is of
Bureau of Mines basis.
c Includes 31,376,000 barrels at refineries, 11,856,000 at bulk terminals, 1,385,000
barrels in transit, and 4,860,000 barrels of other motor fuel stocks.
Special Session of Texas Legislature Called by Governor
Sterling-Will Enact Laws for Control of Oil.
Associated Press advices from Austin, Tex., Nov. 2
stated that Governor Sterling of Texas issued a proclamation late that day convening the Texas Legislature in extraordinary session at noon Nov. 3. The purpose, according
to the advices, is to enact laws to strengthen the oil and gas
conservation statutes and give the Texas Railroad Commission additional authority to regulate the production of oil.
Copper Sales Show Moderate Improvement at Lower
Prices-Call for Lead Better.
According to "Metal and Mineral Markets" for Nov. 3,
buying interest in major non-ferrous metals appears to be
slowly reviving, for the combined tonnage of copper, lead
and zinc sold during the last week was the largest since
early October. The recent recession in prices, together with
the feeling that finished products are moving into consumptive channels at a slightly higher rate than in the
summer period, are given as the reasons for the moderate
improvement in business booked during the period. Speculative operations in silver broadened and the price closed
with a small net gain. In minor metals, both quicksilver
and antimony advanced in price. The statement goes on
to say:
Copper Sales at 5.25 Cents.
Copper, at 5.25 cents for fourth quarter delivery, was generally offered
In the domestic market by custom smelters throughout the last week.
On business for the first quarter of next year. 5.375 cents was asked,
although one round lot sold on Friday at the lower figure, with the shipment period extending through the fourth quarter into 1933. The total
volume of sales during the seven-day period represented a moderate improvement over the totals of the last few weeks. Most of the business
was booked early in the week, inquiry diminishing toward the close of
the period-a development said to be attributable to the approach of the
forthcoming election. At yesterday's close, even though consumers
exhibited llttle interest in the metal, the tone of the market was noticeably
firm. Fabricators report a continuance of the improvement in the outlet
for their products which first made its appearance last August. Sales
volume in the last few weeks, however, has not been quite up to that
of a month or so ago. Lists of fabricators are being maintained on a 6.25
cent basis, to which level leading producers of copper also hold, indicating
that they are virtually out of the market.
Activity in the export market has been on a reduced scale, with prices
ranging from about 5.175 cents to 5.25 cents, c.i.f. Special sales by
copper exporters were reported on two days on the basis of 5.20 cents,
c.i.f. Final action on the proposed British tariff has not as yet been
taken, but is expected within the next few days. A meeting of representatives of the leading copper producers, to take place in New York
about the middle of this month, now seems assured.
The deliveries of copper for consumption In the several countries outside
of the United States and Canada, computed according to the conventional
formula of production, plus imports minus exports, plus or minus changes
In stocks so far as published, are summarized by the American Bureau of
Metal Statistics, In metric tons, as follows:
Number
Average
Average
of
per
Months.
Last 3
Months.
Month.
Reported.
Great Britain
12,310
10,014
9
France
7.094
7
7,224
Germany
11,164
8
10,190
Italy
2,725
4,145
7
Japan
7
6,273
5,799
Austria
394
457
8
Czechoslovakia
1,301
1,008
8
Hungary
341
6
389
Netherlands
218
226
9
Poland
349
419
8
Sweden
1,183
1,046
8
Switzerland
976
9
1,295
Other Europe
__
a9,000
a9,000
All other countries except United States
and Canada
al.200
a1,200
Local production omitted in above
al.000
a1,000
Total, metric tons
a Conjectural.
53,112
55.828
World Lead Output Declined in September.
World lead production averaged 3,303 short tons a day
in September,compared with 3,334 tons in Aug. 3,190 tons
in July, the lowest daily average for any month in many
years, and a daily average of 3,654 tons in September
1931, reports the "Wall Street Journal" of Nov. 2. The
daily average for the first nine months of 1932 was 3,558
tons, compared with 4,220 tons for the same period of 1931.
The following table, as published by the "Journal," gives,
in short tons, output of the various countries. Production
is accredited as much as possible to country of origin of
the ore.
Nov. 5 1932
June.
July.
August.
Sept.
Jan.Sept.
26,068
11,871
6,264
7,871
2,604
12,101
13,800
16,444
6.586
1,300
15,819
11,031
12,157
6,716
2,749
12.083
12,200
15,196
6,653
1,300
17,118
10,530
16.338
9,631
2,065
10,185
11,800
17,728
6.653
1,300
20,498
10,428
11,775
8,815
2,815
8,976
12,000
14,326
6,653
2,800
219,247
100,840
113,103
73,062
22,644
104,875
113,200
148,647
59,767
19,400
World's total
104,909
Elsewhere
78,841
Estimated or Partly estimated.
98,904
83,085
103,348
86,230
99,086
78,588
974,785
755,538
United States
Canada
Mexico
Germany
Italy
Spain & Tunis
x Europe, n. e s
Australia
Burma
x Elsewhere
Steel Output Up 1%, Increasing Operations to 20% of
Capacity-Production of Pig Iron Higher in October-Price of Steel Scrap Lower.
With many buyers awaiting the outcome of the election
before making further commitments, new steel business has
declined; yet steel ingot production has gained a point from
last week to 20% of the country's capacity, mainly because
of recent orders from the automobile industry, reports the
"Iron Age" of Nov. 3. Pig iron output in October, figured
on a daily basis, gained 5.3% over that of September and
last month's average was 21.5% above the low point of
August. The "Age" further goes on to say:
While steel and pig iron production is gathering momentum very slowly,
the broad outlook is fairly encouraging for further moderate gains, considering that railroad equipment programs are becoming more numerous.
that automobile production of new models is expanding and that some construction projects sponsored by the Reconstruction Finance Corporation
will be affording mill rollings of steel by the end of the year. The Reconstruction Finance Corporation has granted a loan of $3,957.000 for a New
York housing project and a loan of $3,400,000 for a toll bridge over the
Hudson River at Catskill, N.Y., which will require 12,000 tons ofsteel.
Although rail makers are disappointed by the indifferent response of
the railroads to the recent reduction in the rail price, a situation due in
part to stocks of rails that many of the carriers have not yet laid, there are
indications that moderate sized orders will be placed by the end of the
Year
for spring delivery, and several Western roads may come into the market
soon after the election. The Carnegie Steel Co.'s rail mill will be started
this week on a limited schedule.
The aid that the railroads may give to steel business appears more promising for the immediate future in equipment building and repair programs.
The Chicago Great Western has inquired for 200 freight cars and will
eventually buy 500: the New York Central, whose supply of light cars has
fallen short of increasing traffic requirements, will repair
13,000 box cars
if a Reconstruction Finance Corporation loan is granted: the Pennsylvania
has distributed orders for about 12,000 tons of plates, shapes and bars and
several thousand tons of other iron and steel materials for
1,285 all-steel
box cars it will build in its own shops; the Norfolk & Western has inquired
for steel for the repair of 500 coal cars, and the Reading will
place additional
steel orders soon in continuance of a repair program inaugurated several
weeks ago.
The automobile industry is slowly expanding production,
and November
probably will bring the first upturn since May. The Chevrolet company
is committed to an output of 110.000 cars within the next
90 days regardless of retail market conditions. Plymouth's unfilled orders for now cars
now total 19.214, and an output of 1,000 a day five days a week will be
attained soon. Recent steel releases by automobile companies have resuited in increased steel production at Cleveland and Detroit and in the
Youngstown area, the only districts that have gained except Wheeling,
where demand for tin plate bars has caused a stepping up of ingot output.
Pipe line laying, long quiescent, comes into the picture again through
a contemplated gasoline line from Toledo, Ohio, to Detroit for
the Hickok
Oil & Gas Co. If the project is carried out, 80 miles of 6-inch steel pipe,
4,000 to 5.000 tons, will be required.
Pig iron production has gained for the second consecutive month, which
has not happened since April 1931. The October total was
644,787 tons,
according to preliminary estimates gathered by telegraph on
Nov. 1,
against 592.589 tons in September, or a daily rate last month of
20,800 tons.
compared with 19,753 tons in September, a gain of 5.3%. There s as a
net gain of two furnaces during the month, 49 having been in blast on
Nov. 1. Official statistics on steel ingot output for last month probably
will show about a 10% gain over September.
Further claps in gold prices of Continental steel
products lend Interest
to the efforts that are being made at
Washington to check alleged dumping,
with the possibility that American valuation may be Used
as a basis for
assessing duties, a procedure that is permissible upon recommendation of
the Tariff Commission. Despite tho fact that the British
market is virtually closed to Continental steel because of increased gold prices
and depreciated sterling, European steel mills are booking an increasing amount
of business both at home and abroad.
There are mixed developments in prices. Heavy melting
steel
has declined at Pittsburgh, but is higher at Cleveland. The "Iron scrap
Age"
scrap composite has declined to 87.50, the lowest since August, but
$1.08
a ton above the minimum figure of this year. Following the recent reduction on heavy rails, tie plates have declined $2 a ton. Sheet
mill products
are still weak, automobile body stock having dropped $2 a ton to
2.65c.
a lb., while cold-rolled strip steel has been strengthened, now being
quoted
at 2c. a lb.. Pittsburgh or Cleveland. These products are not included in
the "Iron Age" composite of finished steel prices, which is unchanged at
1.948c. a lb., while pig iron remains at $13.59 a gross ton.
THE "IRON AGE" COMPOSITE PRICES.
Finished Steel.
0
1 1932. 1.948c. a Lb.
Based on steel bars, beams tank plates,
94.c. wire, ralls, black pipe and
One week ago
cne
One month
Novag.ago
977c. These products make 85% sheets.
of the
2.008c. TJnIted States output.
One year ago
Low.
1932
1 977cR
.ig0
h.ct. 4
1.926c. Feb. 2
1931
2 037o. Jan. 13
1.945c. Deo. 29
1930
2 273c. Jan. 7
2.018c. Dec. 9
1929
2 317e. Apr. 2
2.283c. Oct. 29
1928
2.286c. Dec.11
2.217c, July 17
1927
2.402c, Jan, 4
2.2120. Nov. 1
Pig Iron,
Nov. 1 1932, $13.59 a Orme Ton.
Based aocne average ofof
Basat
iro
atn s
o
%Valley
One week ago
furnace
irons at
One month ago
153:00
64 P
mhiladelph
ingham. la, Buffalo, Valley and MrOne year ago
Financial Chronicle
Volume 135
1932
1931
1930
1929
1928
1927
High.
$14.81 Jan. 5
15.90 Jan. 6
18.21 Jan. 7
18.71 May 14
18.59 Nov.27
19.71 Jan. 4
Low.
813.59 Oct. 25
15.79 Dec. 15
15.90 Dec. 16
'18.21 Dec. 17
17.04 July 24
17.54 Nov. 1
Steel Scrap.
Based on No. 1 heavy melting steel
Nov. 1 1932, 87.50 a Gross Ton.
87.581 quotations at Pittsburgh, Philadelphia
One week ago
One month ago
7.671 and Chicago.
8.71
One year ago
High.
Low.
88.50 Jan. 12
1932
$6.42 July 5
11.33 Jan. 8
1931
7.62 Dec. 29
15.00 Feb. 18
1930
11.25 Dec. 9
17.58 Jan. 29
1929
14.08 Dec. 3
16.50 Dec. 31
1928
13.08 July 2
15.25 Jan. 11
1927
13.08 Nov.22
Although the iron and steel markets are laboring increasingly under the uncertainty of the election and the exhaustion of the momentum generated by small buyers, the
steelmaking rate is holding at 19 to 20% and the levelling-off
process developed too late in October to prevent the month
bettering September in both bookings and production,
states "Steel" of Cleveland, Oct. 31, in reviewing current
iron and steel Conditions. "Steel" further reports as follows:
About Oct. 25, many producers equalled their September showing. The
past few days the market situation has become spotty, with some interests
still maintaining their mid-October activity, but in general the markets
have lost much of their spirit and there is a tendency to drift until after
election. Producers frequently are told of business held in abeyance.
A more unsettled price situation is evident. Concessions are believed
to have been made on the 12,000 tons of steel, chiefly plates, purchased
by the Pennsylvania for its equipment program. Tie plates and forging
billets have been reduced $2 per ton. Reinforcing concrete bars are under
pressure at Chicago. Manchurian and Dutch pig iron continue to vex
Eastern furnaces. Scrap prices are tending to drift downward. A strengthening factor is a more determined effort to hold the official market on
cold-rolled strip to 2c., Pittsburgh.
Following the $3 reduction in rails, first orders for 1933 are
appearing.
The Lackawanna has placed 4,000 tons for January delivery, and the
Southern several thousand tons. Illinois Central will make provision for
6,000 tons In Its budget. Chicago Great Western Is formally inquiring for
200 freight cars. Norfolk & Western will repair 600 hoppers in its shops,
and the New York Central has a program Involving repairs to 13,000
cars, which may be expanded, contingent upon a Reconstruction Finance
Corporation loan.
Structural steel awards, totaling 11,497 tons, dropped below the seasonal
average. The several hundred thousand tons of inquiry actively before
the industry is slow to reach the award stage, but the delay has the beneficial
aspect that considerable tonnage probably will mature in time to
supply
work when most needed during the winter months. Concrete
reinforcing
bar awards also were below the average, at 4,317 tons.
Automobile steel requirements continued disappointing, but are
Increasing slightly. In fact, a modest expansion at Cleveland,
principally to automotive releases, was all that prevented the steel ratedue
receding
below 19M % in the week ended Oct. 29. A further increase at Cleveland
this week promises to offset a softer operating condition in other districts.
The 19M % rate persists by a narrow margin, and October probably will
go down as a 19% steel montk, compared with 17 for September and 14
for August.
Alco Products has booked 3,500 tons of 42-Inch steel pipe for Ft. Wayne,
Ind. Hot strip steel bookings show an encouraging gain at Pittsburgh.
Bids close Dec. 14 on 7,200 tons of steel for a cruiser. Chicago is experiencing a seasonal slump in wire products. Farm implement manufacturers
there tend to become slightly better buyers.
Shipments of pig Iron in most districts In October developed gains of
45 to 100%. Many foundries in the Middle West are resuming on a slight
scale, automotive work being prominent. There has been a noticeable
disposition of founders to lay in a little stock.
"Steel's" composite of iron and steel prices is unchanged this week at
$29.32 and the finished steel composite at $47.70, but the steelworks scrap
index is off 13 cents to $6.83.
Slight Decline Recorded in Production of Bituminous
Coal-Anthracite Output Again Shows a Gain
Over Preceding Week.
According to the United States Bureau of Mines, Department of Commerce, estimates show that for the week ended
Oct. 22 1932 there were produced 7,800,000 net tons of
bituminous coal and 1,367,000 tons of Pennsylvania anthracite as compared with 7,888,000 tons of bituminous coal
and 1,256,000 tons of anthracite during the preceding week
and 8,144,000 tons of bituminous coal and 1,711,000 tons
of anthracite in the corresponding period last year.
During the calendar year to Oct. 22 1932 production of
bituminous coal amounted to 234,902,000 tons, as against
308,159,000 tons during the calendar year to Oct. 24 1931,
while anthracite output totaled 38,803,000 tons as compared
With 49,425,000 tons in the same period last year. The
Bureau's statement follows:
The total production of soft coal for the country as a whole during the
week ended Oct. 22 1932 is estimated at 7,800,000 net tons. This figure,
subject to slight revision, indicates a decrease of 88.000 tons. or 1.1%.
from the preceding week. Production in the week of 1931 corresponding
with that of Oct. 22 was 8,144,000 tons.
Production of Pennsylvania anthracite increased in the week ended
Oct. 22. Total output is estimated at 1,367,000 net tons, a gain of 111,000
tons, or 8.8% over the preceding week. Production during the corresponding week of 1931 amounted to 1,711,000 tons.
Beehive coke production during the week ended Oct. 22 is estimated at
16,300 net tons. This compares with 16,200 tons produced during the
preceding week, and 23,500 tons in the corresponding week of 1931.
3065
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Week Ended.
Oct. 22
1932.c
Oct. 15
1932.d
Calendar Year to Dale.
Oct. 24
1931.
1932.
1931.
1929.
Bitum. coal-a
Weekly total 7.800,000 7,888,000 8,144,000 234,902,000 308,159,000 427,456,000
Daily aver__ 1,300,000 1,315,000 1,357,000
938.000 1,229,000 1,705,000
Pa. anthra.-b
Weekly total 1,367,000 1,256,000 1,711,000 38,803,000 49,425,000 59,009.000
Daily aver-- 227,800 209,300 285,200
156,100
198,900
237,500
Beehive cokeWeekly total
16,300
23,500
16,200
572,800 1,062.000 5,530.800
Daily aver__
3,917
2,700
2,717
2,264
4,198
21,861
a Includes lignite, coal made into coke, local sales, and colliery fuel. b Includes
Sullivan county, washery and dredge coal, local sales, and colliery fuel. c Subject
to revision. d Revised.
ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS).
Week Ended.
State.
Oct. 15'32. Oct.8'32. Oct. 17'31. Oct.18'30.
Alabama
Arkansas & Oklahoma
Colorado
Illinois
Indiana_
Iowa
Kansas & Missouri
Kentucky: Eastern
Western
Maryland
Michigan
Montana
New Mexico
North Dakota
Ohio
Pa.(Bit.)
Tennessee
Texas
Utah
Virginia
Washington
West Virginia:Southern_a
Northern_ b
Wyoming
Other States
220,000
118,000
127,000
816.000
313,000
97,000
152,000
554,000
268.000
28.000
9,000
38,000
29,000
52,000
591.000
1,786.000
70,000
13.000
74,000
234.000
38,000
1,710,000
434,000
115,000
2,000
192,000
105,000
157,000
726,000
262,000
86,000
161,000
704.000
250,000
29,000
9,000
38,000
31,000
33,000
355,000
1,683,000
67,000
12,000
60,000
198,000
30,000
1,555,000
392,000
118,000
2,000
195,000
122,000
162,000
987,000
264.000
74,000
128,000
696,000
176,000
32.000
13,000
52,000
29,000
48.000
475,000
1,889,000
80,000
22,000
78,000
195.000
43.000
1,739,000
527.000
121,000
1,000
295,000
116.000
180,000
1,061,000
323,000
90,000
127,000
7.16,000
196,000
41,000
13,000
69,000
49,000
61,000
373,000
2,490,000
93,000
16,000
118,000
211.000
52,000
1,850,000
609,000
156,000
3,000
Total bituminous coal
Pennsylvania anthracite
7,888,000
1,256,000
7,255,000
1,188,000
8,148,000
1,587,000
9,348,000
1.296.000
Total coal
9.144.000 8.443.000 9.735.000 10.644.000
a Includes operations on the N & W.; C. & 0.; Virginian: K.& M.: B. C.& G.
b Rest of State, including Panhandle.
Report of Foundry Operations During September in
Philadelphia Federal Reserve District by University
of Pennsylvania.
_During September, the activity of foundries located in the
Philadelphia Federal Reserve District and reporting to the
Industrial Research Department of the University of Pennsylvania increased only in gray iron foundries operating outside
of the city of Philadelphia and in malleable iron plants.
Gray iron foundries, especially those located in Philadelphia,
and steel foundries had a smaller tonnage of output in September than in August. At least part of this decline was
caused by seasonal factors. In spite of these losses in production, the total output did not decline below that of July.
The University of Pennsylvania, in stating this, also reported
further as follows:
Shipments of both iron and steel castings in September were less than
in the previous month, but the average price per pound was higher. The
tonnage of orders for iron castings which were unfilled at the end of the
month was nearly the same as that reported a month ago. In contrast.
the unfilled orders for steel castings showed a decrease of 5% in volume.
IRON FOUNDRIES.
No. of
Firms
Reporting.
30
30
29
4
29
18
26
25
25
September 1932.
Capacity
Production
Gray iron
Jobbing
For further manufMalleable iron
Shipments
Value
Unfilled orders
Value
Raw StockPig iron
Scrap
Coke
11,063 short tons
1,402
1,200
996
00
90
202
1,550
$164,464
416
$59,935
1,617
1,138
384
Per Cent
Per Cent
Change
Change
from
from
Aug. 1932. Sept. 1931.
0.0
---8.3
---12.2
---2.3
---11.1
1-23.9
--8.1
---1.4
---0.4
--10.1
--4.4
--19.7
0.0
---38.9
---33.7
---53.0
---34.7
---39.7
---37.2
--39.1
--28.4
-27.8
Gray Iron Foundries.
The tonnage of gray iron castings produced in 29 foundries during September was 12% less than in the previous month and nearly 40% less than
In the same month of last year. The decrease in activity was at least partly
seasonal in character. Although production was maintained in the corresponding period of 1930, there were decreases in September of the other
Years since 1926 ranging from 1.3% to 7.3%. The larger percentage of
decrease this year may be partially explained by the fact that seasonal
forces tend to be accentuated during a period of depression as well as by
the fact that the comparatively small tonnage of output makes small changes
seem relatively large.
Foundries operating outside of Philadelphia had a slight increase in production for the second consecutive month. Six firms shared in the increased
output. In contrast with this, the foundries located in Philadelphia had a
decrease of 18% in their total production although four plants reported an
Increase over August. Despite this decline, the production during September was greater than in July.
Shipments of iron castings were 8% less in tonnage than in August but
their value showed a decrease of less than
of 1%. The average price per
pound of shipments was more than in August but less than that of a Year
ago.
Financial Chronicle
3066
The tonnage of orders unfilled at the end of September was practically
the same as at the beginning of the month,the decrease being less than ji of
1%. but their value showed a decrease of nearly 7%. All raw stocks on
hand were less than those of a month ago and a year ago.
Malleable Iron Foundries.
The output of malleable iron castings in four foundries during September
was nearly 24% more than in August. This increase brought the total
production above that of any month since last March, but activity in this
branch of the industry was still 53% below that of September 1931.
STEEL FOUNDRIES.
No. of
Firms
Report-
September 1932.
tag.
8
8
7
6
6
8,630 short tons
Capacity
Production
775
674
Jobbing
101 " "
For further manufacture
941
Shipments
$118,899
Value
1,267
Unfilled orders
$140,551
Value
SRaw
188
P* bon
3,445
Scrap
184
Coke
Per Cent Per Cent
Change
Change
from
from
Aug. 1932. Sept. 1931.
0.0
-5.8
-14.1
+165.8
-4.0
+1.8
-5.0
+0.8
0.0
-58.8
-55.0
-73.6
-45.4
-47.4
-51.3
-52.0
+32.0
+10.5
-15.6
-25.7
-29.0
-40.4
The production of steel castings n eight foundries during September was
nearly 6% less than in August and practically the same as in July. The
revised figures for August showed an output 7% larger than in July. During
September, however, nearly all of the foundries experienced a reduction in
activity especially in the production of castings for jobbing work which was
14% less than in the previous month. There was a large relative increase
in the output of castings used in further manufacture within foundries
operating a machine shop in conjunction with their other activities, but the
total tonnage of this class of work was less than the decrease in the production of jobbing work.
Activity among steel foundries thorughout the country increased slightly
during August according to data compiled by the Department of Commerce.
In spite of the decline among the local foundries during September. these
firms still appear to be operating at a slightly higher level of activity than
Is typical for similar plants in other sections of the country.
Shipments of steel castings in September decreased 4% in tonnage but
their total value was nearly 2% greater than in August. The average price
per pound was more than a month ago but less than in the same month of
last year. A similar price movement was noted in the unfilled orders on
hand at the end of September which were 5% less in volume and 1% more
In value than at the beginning of the month.
Stocks of pig iron and scrap on hand at the close of the month were larger
than at the end of the previous month but the tonnage of coke in stock was
less. Compared with the corresponding period of 1931, the volume of all
raw stocks On hand was less.
Nov. 5 1932
Representatives of Anthracite Operators and United
Mine Workers of America Again Meet-Board of
Two Persons Named to Make Further Attempt
at Conciliation.
After a recess since Oct. 4, representatives of the United
Mine Workers of America and the anthracite coal operators
met again on Nov. 2. The meeting, which was arranged by
Mrjor W. W. Ingalls, Chairman of the operators' group
and John L. Lewis, President of the United Mine Workers,
was called in order to name a board of two persons as provided for under an agreement between the operators and
miners. This board, when appointed, will be given 90 days
to make a further attempt at conciliation between the operators and miners regarding the wage reductions of from 20
to 30% for some 140,000 miners in the three hard coal
districts of northern Pennsylvania being sought by the
operators. As reported after the meeting of Oct. 4, as
referred to in our issue of Oct. 8, page 2412, this committee
may be enlarged to an odd number so that the dispute may
be arbitrated provided both members agree. At the meeting
on Nov. 2 the names of three persons were presented by each
group, one person to be selected by each party to make up
the board of two. The following brief statement was issued
after the meeting:
The conference of representatives of the Anthracite Coal Operators and
United Mine Workers of America resumed to-day (Nov. 2) at the Anthracite Institute in New York.
Each aide presented the names of three persons from whom will be selected
one person by the respective party to constitute the board of two persons.
After preliminary discussion the conference recessed until Thursday,
Nov. 3 1932, at 2.30 p.m. in order to permit both sides to check over the
list submitted.
The names will not be made public until the selections are made.
On Nov. 3 the representatives of the operators and miners
again met. From the list of the name§ submitted, as reported after the meeting, George Rublee of Washington,
D. C. was appointed to represent the operators and Frank
Morrison, Secretary of the American Federation of Lrbor,
was appointed to represent the miners. The conference
was adjourned subject to the call of the Chairman.
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ending Nov. 2, as reported
by the Federal Reserve banks, was $2,228,000,000, an increase of $9,000,000 compared with the preceding week and
of $54,000,000 compared with the corresponding week in
1931. After noting these facts the Federal Reserve Board
proceeds as follows:
On Nov. 2 total reserve bank credit amounted to $2,226,000,000. an
Increase of $5,000,000 for the week. This increase corresponds with increases of $32,000,000 in money in circulation and $10,000,000 in unexpended capital funds. non-memoer deposits. &c., offset in part by a decrease
of $28,000.000 in member bank reserve balances and increases of $9,000,000
In monetary gold stock and $2,000,000 in Treasury currency, adjusted.
Holdings of discounted bills increased $3,000,000 at the Federal Reserve
Bank of Cleveland and $4,000,000 at all Federal Reserve banks. The
System's holdings of bills bought in open market and of United States
securities were practically unchanged.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement, such as monetary gold stocks and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the
different items, was published in the May 31 1930 issue of
the "Chronicle" on page 3797.
.The statement in full for the week ended Nov. 2, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages, namely,
pages 3118 and 3119.
Changes in the amount of reserve bank credit outstanding
and in related items during the week and the year ended
Nov. 2 1932, were as follows:
Bills discounted
Bills bought
U. S. Government securities
Other Reserve bank credit
Nov. 2 1932.
$
326,000,000
34,000,000
1,851,000,000
15,000,000
Increase (+) or Decrease (-)
Since
Oct. 28 1932. Nov. 4 1931.
s
$
+4,000,000 -370,000,000
-608,000,000
+1,123,000,000
+1,000,000
-19,000,000
+5,000,000
TOTAL RES'VE BANK CREDIT2,226,000,000
4.266,000,000
+9,000,000
Monetary gold stock
1,907,000,000
+2,000,000
adjusted
currency
Treasury
5.616,000,000 +32,000.000
Money in circulation
2,384,000,000 -28,000,000
Member bank reserve balances
Unexpended capital funds, non-mem397,000,000 +10,000,000
ber deposits. dm
+117,000,000
-45,000,000
+140,000,000
+73,000,000
+262,000,000
-125,000,000
Returns of Member Banks in New York City and
Chicago-Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in New York City, as well as those in
Chicago, on Thursday, simultaneously with the figures for
the Reserve banks themselves and for the same week, instead
of waiting until the following Monday, before which time
the statistics covering the entire body of reporting member
banks in the different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks, for the
current week, as thus issued in advance of the full statement
of the member banks, which latter will not be available until
the coming Monday. The New York City statement, of
course, also includes the brokers' loan of reporting member
banks. The grand aggregate of brokers' loans the present
week shows an increase of $10,000,000, the total of these
loans on Nov. 2 1932 standing at $362,000,000, as compared
with $331,000,000 on July 27 1932, the low record for all
time since these loans have been first compiled in 1917.
Loans "for own account" increased from $332,000,000 to
$343,000,000, but loans "for account of out-of-town banks"
decreased from $15,000,000 to $12,000,000, while loans
"for account of others" increased from $5,000,000 to
$6,000,000.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York,
Nov. 2 1932. Oct. 26 1932. Nov. 4 1931.
Loans and investments-total
6 998,000,000 6,982,000,000 7,310,000,000
Loans-total
3,404,000,000 3,384,000,000 4,547,000,000
On securities
All other
Investments-total
U. S. Government securities
Other securities
1,576,000,000 1,569,000,000 2,287,000,000
1 828,000,000 1,815,000,000 2,260.000,000
3,594,000,000 3,598,000,000 2,763,000,000
2 534,000,000 2,548,000,000 1,724,000,000
1,060,000,000 1,050,000,000 1,039,000,000
Reserve with Federal Reserve Bank. .1,006,000,000 1,055,000,000
Cash In vault
34,000,000
37,000,000
Net demand deposits
Time deposits
Government deposits
724,000,000
61,000,000
5 466,000,000 5,476,000,000 5,413,000,000
901,000,000 913,000,000 905,000,000
40,000,000
236,000,000 247,000,000
Volume 135
Financial Chronicle
Nor. 2 1932.
Due from banks
Due to banks
Oct. 26 1932.
87,000,000
81,000,000
1,403,000,000 1,360,000,000
Borrowings from.Federal Reserve Bank_
Loans on sccur. to brokers & dealers
For own account
For account of out-of-town banks
For account of others
Total
Om demand
On time
Nov. 4 1931.
I
74,000,000
983,000,000
17,000,000
343,000.000
13,000,000
6,000,000
332,000,000
15,000,000
5,000,000
583,000,000
97,000,000
169,000,000
362,000,000
352,000,000
849,000,000
205,000,000 199,000,000 594,000,000
157,000,000 153,000,000 255,000,000
Chicago.
1,142,000,000 *1144,000,000 1,670,000,000
Loans and Investments—total
Loans—total
664,000,000 *667,000,000 1,157,000,000
On securities
All other
372,000,000 *375,000,000
292.000,000 *292,000,000
Investments—total
672,000,000
485,000,000
478,000,000 *477,000,000
513,000,000
288,000,000 289,000,000
190,000,000 *188,000,000
294,000,000
219,000,000
Reserve with Federal Reserve Bank
Cash in vault
263,000.000
16,000,000
270,000,000
16,000,000
162,000,000
15,000,000
Net demand deposits
Time deposits
Government deposits
878,000,000
324,000,000
30,000,000
886,000,000 1,110,000,000
317,000.000 455,000,000
32,000,000
4,000,000
Due from banks
Due to banks
222,000,000 *212,000,000
302,000,000 299,000,000
U. S. Government securities
Other securities
114,000,000
261,000,000
Borrowings from Federal Reserve Bank
3,000,000
• Revised to exclude figures for a bank which withdrew from membership
alter
close of business Oct. 26, the deposit liabilities of which had been assumed
by a new
reporting member bank on October G.
3067
that by an agreement he did not mean an alliance. He expressed the hope that American and Britain at the coming
World Economic Conference could determine upon a united
policy. He said:
The co-operation of the United States of America and the British
commonwealth of nations would be the greatest combined effort evert
brought to bear in the world, or that could be equalled in the world even
if all the other nations combined. For the recreation of world prosperity
It would be infinitely greater than any other human activity that
could
be produced.
James Brown, President of the Chamber, in introducing
Lord Reading, who returned home yesterday (Nov. 4),
referred to him as one of the outstanding statesmen of
England of all time. He recalled his visit to the Chamber
in 1915 as Preeident of the Anglo-French Mission to the
United States.
Albert Halstead, retiring American Consul General at
London,followed Lord Reading as speaker and paid a tribute
to the courage and unyielding determination of the English.
Lord Reading in his opening remarks recalled the war
days of 1915 and his gratitude to America for her financial
assistance to England at that time. Lord Reading said:
Looking back on all the events of the years since the war, studying the
situation as it is, trying to see conditions as they will be in the future, the
outstanding feature is that we are in the midst of a world depression such
as no individual ever anticipated as a result of a victorious war.
His hope was that the troubled times through which the
world was passing would bring nearer the day of universal
peace and prosperity. Lord Reading continued:
Complete Returns of the Member Banks of the
you here in the United States, with your immense influence throughout
Federal theIfworld—on
the industrial and financial world, on world civilization and
Reserve System for the Preceding Week.
efforts toward peace; you and we of the British commonwelath of nations
explained
above, the statements for the New York who speak the same language, have, to a large extent the same traditions—
As
and Chicago member banks are now given out on Thursday, if no can only agree, not by means of an alliance, but agree upon a directive
policy so that we may bring a combined and co-operating influence on the
simultaneously with the figures for the Reserve banks
them- rest of the world, I believe that we shall be nearer to finding the solution
selves and covering the same week, instead of being
held of the present troubles of the world than anything that will have been
until the following Monday, before which time the statistics achieved.
Lord Reading said he did not wish to suggest that political
covering the entire body of reporting member banks in
101
conditions are the main cause of the world depression, "but
cities cannot be got ready.
In the following will be found the comments of the Federal what I do say is that until you get throughout the world
Reserve Board respecting the returns of the entire
stable political conditions, whatever remedies you may have
body of
or had at hand for your world depression, they will be stayed
reporting member banks of the Federal Reserve System
for
so long as the world is unquiet politically."
the week ended with the close of business on Oct. 26:
The Federal Reserve Board's condition statement of weekly
Lord Reading appealed to his hearers to help effectuate,
reporting
member banks in leading cities on Oct. 26 shows an increase
for the week of
if they agreed with him, a combination of American and
$113,000,000 in investments, mostly United States
Government securities,
British influences in favor of some policy to cure world cona decrease of 8116,000,000 in loans, and increases of $88,000,000
in net
demand deposits, $33,000,000 in time deposits, $104,000,00
ditions. In conclusion he said:
0
in
reserve
balances with Federal Reserve banks, and $9,000,000
. . . if we together can bring the whole of this influence of ours
in borrowings from
Federal Reserve banks.
Loans on securities declined $83.000,000 at reporting
member banks in
the New York district, $6.000,000 in the Chicago district and
895,000,000
at all reporting member banks. "All other" loans declined $9,000,000 in
the
New York district and $21,000,000 at all reporting banks.
Holdings of United States Government securities
increased $80,000,000
In the Now York district, $13,000,000 in the Boston district, $6,000,000
each in the Cleveland and Chicago districts and $103.000,000 in all
districts.
Holdings of other securities increased $7,000,000 in the
New York district
and $10,000,000 at all reporting member banks.
Borrowings of weekly reporting member banks
from Federal Reserve
banks aggregated $103,000,000 on Oct. 26, the
principal change for the
week being an increase of $10,000,000 at the Federal Reserve Bank
of San
Francisco.
A sum mary of the principal axsets
and liabilities of weekly reporting
member banks, together with changes during the week and
the year ending
Oct. 26 1932, follows:
Increase (-I-) or Decrease (—)
Since
Oct. 26 1932, Oct. 29 1932,
Oa. 28 1931.
$
Loans and investments—total____19,118,000,000
—3,000.000 —2,103,000,000
Loans—total
10,516,000,000 —116,000,000 —3,005,000,0
00
4,352,000,000
On securities
—95,000,000 —1,545,000,000
6,164,000,000
All other
—21,000,000 —1,460.000.000
Investments—total
8,602,000,000 +113,000,000
+902,000.000
U. S. Government securities
Other securities
Reserve with F. R.banks
Cosh in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. banks
5,298,000.000
3,304,000,000
+103,000,000 +1,165,000,000
+10,000,000 —263,000,000
1,975,000,000
203,000,000
+104,000,000
+261,000.000
—61,000,000
11,470,000,000
5,725,000,000
560,000,000
+88.000.000
+33.000,000
—38,000,000
—979,000,000
—633,000,000
+399,000,000
1,655,000,000
3,164,000,000
—34,000,000
—48,000,000
+574,000.000
+630,000,000
103,000,000
+9,000,000
—350,000,000
Lord Reading Before New York Chamber of Commerce
Urges "Directive Policy" on Part of United States
and Great Britain to Effect Solution of World's
Troubles.
Lord Reading, British statesman, speaking before the
Chamber of Commerce of the State of New York on Nov. 3
pleaded for an agreement between the United States and
the British Empire upon a "directive policy to bring combined and co-operative influence upon the world" as a solution of the world's troubles. Lord Reading made it clear
on other nations, then there is some hope and a great one of other nations
being able to agree, if we can, to a policy on which we co-operate. And
my appeal to you is that we may be able in this, as in international affairs,
when we get to the World Economic Conference in which you are going to
take part, that we may be able to arrive at some policy in which we will
not be arguing against, but always together, in favor of some co-operative
policy that we then could carry.
I do not hesitate to say, speaking for myself . . . that the cooperation of the United States of America and of the British commonwealth
of nations, in other words of the English-speaking people of the world,
would be the greatest combined effort that has ever been brought to bear
In the world, or ever could be equalled in the world, even if all other nations
combined together against it. The influence for good, for the civilization
of the world, for the advance and progress of nations in the right avenues,
along proper paths for the recreation of a world prosperity would be infinitely greater than any other human activity that ever can be introduced.
Sweden Extends to March 1 1933 Period of Suspension
of Gold Standard.
United Press advices from Stockholm Nov. 2 were published as follows in the New York "Herald Tribune":
The Swedish Government to-day decided to prolong the suspension
of
the gold standard until March 1. The gold standard was
suspended in
September 1931.
David Friday Sees Billion More Money Gold by End
of 1933.
The following from Rochester, N. Y., is from the "Wall
Street Journal" of Nov. 1:
An oversupply of gold in the world within a few years was
pictured by
Dr. David Friday, Washington economist, before the Eastern
Purchasing
Agents Association here.
He said:
"I predict that by December 1933, provided no war or unforeseen
political
event occurs, that more than $1,000.000,000 of new monetary gold
will
be added to the gold stocks of the central banks of the world. We
are
going to wake up before many years with an oversupply of gold in the world."
Ile pictured a movement of population toward country districts andi
decentralization of business areas.
Leon Fraser of Bank for International Settlements
Urges Gold Exchange Idea—Best Means to Return
to Gold He says—Import Curbs Attacked at Geneva
Incident to World Economic Conference.
Restoration of the gold exchange standard as the best
way to get back to gold was urged at Geneva on Nov. 2
by Leon Fraser, the American who is Vice-President of the
3068
Financial Chronicle
Bank for International Settlements. We quote from Geneva
advices to the New York "Times," which also had the
following to say.
the
producers will also be tagged with the general 10% tariff, increasing
levy to 30%.]
preparing
Mr. Fraser made the recommendation before the committee
conferthe financial side of the coming world economic and monetary
playing
stop
should
ence, adding that central banks and governments
monetary situapolitics and show their realization of the seriousness of the
money.
tion by getting down to the practical questions of stabilizing
old-fashioned
He gave the pros and cons of most of the other methods—the
and silver—
bimetalism
gold standard, newfangled managed currency,
made on
revealing the thorough study that the world bank had recently
another system
this subject. He did not mention the gold claim standard,
dropped.
been
the bank has been examining, so it is supposed this idea has
Fraser "Woke Them Up."
where Central
The fact that Mr. Fraser has been at Basle, the center
past two years,
Bank co-operation for stabilizing currency has existed in the
words of one
added the weight of experience to his statement. 1 the
them up" with
of the experts who listened to Mr. Fraser to-day, he "woke
his insistence on united action.
even more strinThe pledge to secrecy in the committee had been made
part of Mr. Fraser's
gent to-day, but despite this, between the lines of the
that one of the
statement that was revealed, the impression was obtained
currencies had
greatest weaknesses in the world bank's efforts to stablize
allowed the Federal
resulted from the fact that the United States had not
deposit any money
Reserve Bank to be a member of the world bank or to
with it.
Williams Pictures Alternatives.
American memProfessor John H. Williams of Harvard. one of the
he gave the,impresbers of the committee, made a statement in which
and the gold
sion that the choice lay between return to the gold standard
so harsh on silver as
exchange system. It is understood that he was not
was Mr. Fraser.
America
Reports that he raised the question to-day of defaults in South
American delegation
proved to be incorrect, but it is understood that the
discussed at the
is willing to have governmental debts of Latin American
world conference.
of relief fund
sort
some
There is talk in European circles of forming
for Eastern Europe,
for Latin-American finances, similar to those proposed
the world conference
The committee preparing the economic side of
a tentative agreeended in a general discussion of import restrictions, with
possible speed in harmony
ment that these ought to be abolished with all
It was
conditions.
financial
with the improvement of monetary and
suppressing those quotas
IMBO agreed that a beginning might be made by
this was properly
for which there is no longer any pressing need. All
hedged with reservations.
on New
Silver Futures Prices Jump 60 to 76 Points
York National Metals Exchange—Later Recede.
Strong buying, originating (said the New York "Times"),
in the Far East and executed chiefly by one house, came into
the market for silver futures on the National Metals Exchange on Oct. 28 lifting prices 50 to 75 points in one of the
biggest days in the history of the market. December silver,
the most active contract, closed at 27.68 cents an ounce,
up 4
3 -cent. The "Times" further said:
The buyers concentrated on contracts calling for near-by deliveries,
that the
particularly December, from which it was deduced in the trade
interests really wanted silver and were not merely trying out a speculative
the silver trade
manoeuvre. Selling came chiefly from commission houses,
weeks.
itself having been Virtually cleaned of its holdings in recent
because of
The movement aroused keen interest in silver circles, not only
but also
buying,
the
of
the sudden and somewhat mysterious character
ago which led to
because it closely resembled a similar development a year
the case a year ago,
an excited public speculation in silver. Now, as was
silver is available for
the market for spot silver is virtually bare, while little
near-by delivery.
Kracht & Gilson,
The house which executed most of yesterday's orders,
of the toyal of
was reported to have purchased more than 5,000.000 ounces
it bought 42 lots, or
6,350,000 ounces traded in. Near the close of trading
which it was
lots
1,050,000 ounces, of December silver and bid for 40 more
unable to obtain.
bar silver in LonThe spurt in silver futures was the more unseal in that
of business here.
don had declined 3-16d. to yid. an ounce before the opening
gain of h-cent.
Bar silver in New York was quoted at 26% cents an ounce. a
silver experts
and
months
The silver market has been in the doldrums for
t in the posihave looked for little change, despite a statistical improvemen
tion of the metal due to an estimated decrease of more than 40,000,000
of silver is
ounces in production for the current year. World production
105,000.000
estimated at about 155.000,000 ounces, which is a drop of over
ounces from the record year of 1929.
had been little
Demand from the Far East has shrunk greatly and there
has been
expectation of a major improvement in that direction. Germany
thriftly
a steady buyer for coinage purposes, but her purchases have been
factor.
market
undertaken in small lots and have not been a
The same paper in its Oct. 30 issue stated:
on
Following the sudden and somewhat mysterious influx of buying
Friday, trading in silver futures on the National Metal Exchange became
were confined
calm yesterday and prices receded 33 to 39 points. Dealings
handled on
to 12 lots, 300.000 ounces, contrasted with 6,350.000 ounces
against 27.68
ounce.
Friday. December contracts closed at 27.35 cents an
cents the day before.
moved
In response to the previous advance in silver futures, spot silver
up 3-16d. to Hcl. in London and li-cent an ounce here.
Imports into England from Irish Free State to Be
Assessed Duties as Though from Foreign Country.
Associated Press cablegrams Oct.27from London stated:
Free State
After Nov. 16 imports into the United Kingdom from the Irish
country.
will be assessed as though they were shipped from a foreign
for
Secretary
Thomas,
J.
H.
of
This was the announcement yesterday
that on that date the
the Dominions. who informed the House of Commons
Tariff Act will expire.
preferences granted the Dominions under last year's
Dominions, did not conclude a new trade
The Free State, unlike the other
in
July.
agreement with Great Britain at Ottawa
20% duty imposed on Irish products
iThis means that in addition to the
to pay land annuities. Irish
failure
for
retaliation
in
under the tariff levied
Nov. 5 1932
New £300,000,000 3% Conversion Loan of Great Britain
Oversubscribed.
A new £300,000,000 3% Conversion Loan, announced by
the British Treasury on Nov. 1, was oversubscribed on Nov.
3 (said a wireless message on that date from London to the
New York "Times") thus, it was added, completing what is
believed to be the biggest series of conversion operations
ever attempted in any country. The message (Nov. 3)
further said:
clerks
Long before the Bank of England opened its doors to-day a line of
From
messengers and others formed outside anxious to file applications.
9 o'clock, when the doors opened, until the lists were closed at 12:15 o'clock,
there was a steady stream of applicants.
the
No official statement of the result was made, but it is understood
loan was considerably oversubscribed and that surprisingly large applications:came from the investing public.
As to the new Conversion Loan and the proposed repayment of £114,608,000 5% Treasury bonds on Feb. 1, a
London cablegram, Nov. 1, to the "Times" stated:
conversion
The Government announced to-night a new medium-term
obligaloan of £300,000.000($986,250,000 at the current rate) to meet heavy
tions falling due between now and Feb. 1.
The bonds will bear interest at 3%. Their price will be 97h and they
will be redeemable at par on March 1 1953.
March
The loan may be repaid on whole or part, however, on or after
1 1948 on three months' notice.
undertaken
This is the fifth conversion operation the Government has
(about
this year and brings the amount converted to £2,500,000,000
tax$8,218,750,000). What is more important to the harassed British
payers is that it makes possible a total saving of about £40,000,000 ($131.500,000) in interest charges in a year.
its
While the new loan will tide the Government comfortably over
the
Winter's repayments, it does not allow a sufficient margin for paying
next debt instalment to the United States if that becomes necessary •
Aside from the American payment,the Government must meet £447,000.
uncon000 in indebtedness before Feb. 1. This includes E165,000.000 of
verted war loan, £140,000.000 of 4h% Treasury bonds and £13,000,000
of 4h% war loan—all due on Dec. 1.
would
Furthermore, the Government announced only yesterday that it
repay £114.608,000 of 5% Treasury bonds on Feb. 1.
The Government has already provided Itself with £150,000,000 through
until
the issue last month of 2% 5h-year Treasury bonds at par. but
to-day's announcement there was a balance of £297,000,000 that needed
will
it
to be met. As the present loan will be issued at a slight discount,
not produce the nominal amount of £300,000,000, but only £292,500,000.
Financial circles are pleased with the new loan, which is regarded as
admirably devised to save interest and at the same time give the market
badly needed fixed-term stockL. a discount.
Great Britain Calls ,£114,600,000 5% Treasury Bonds
for Feb. 1.
London advices, Oct. 31, stated that it was announced
that night that the outstanding £114,600,000 of 5% Treasury
bonds of 1933-35 would be repaid at par on Feb. 1 with the
six months' interest due on that date. The cablegram also
said:
The bonds, to be repaid in February, were issued first in December.
1927, partly for cash and partly in exchange for National war bonds.
Later a further amount was issued for cash, bringing the total to £252,290:
905, but of this E133.867,120 was converted into the 4% consolidated loan.
British Court Nullifies Sterling Loan Gold Rider.
Under date of Oct. 31, a London cablegram to the New
York "Journal of Commerce" said:
There is considerable consternation among holders of so-called sterling
gold bonds following the decision of the Chancery Court allowing the
Societe Intercoomunale Beige Electricite of Brussels to pay off redeemed
bonds in depreciated paper sterling.
The decision was made despite the fact that, according to the terms of
the bond, the company undertook payment "in sterling in gold coin of the
United Kingdom of or equal to standard weight and fineness existing on
Sept. 1 1928."
The court held that the clause is inconsistent and that the companY's
liability is fully discharged through payment in depreciated sterling.
Gold bonds had largely been left unaffected by the removal of sterling
from the gold standard. The new decision makes the market value of such
issues difficult to determine.
Great Britain Denies Preferential Tariff Treatment to
Canadian Wheat Reconsigned Through united
States Ports.
Canadian Press advices from London Nov. 1 said:
Demands in the House of Commons for further elucidation of the position
the
of Canadian wheat in reference to preferential tariff treatment in
United Kingdom to-day brought a statement from Leslie limo-Belisha,
Financial Secretary of the Treasury, that "mere transit of Canadian goods
across the United States will not prevent them securing British preferences
provided the goods were definitely consigned from Canada to the United
Kingdom."
"preferences
He reiterated the stand of the Government when he added
and
will not be available to goods sent from Canada to the United States
reconsigned from there."
ConservaAn amendment to the bill moved by Sir J. Sandeman Allen,
Comtive and Vice-President of the Association of British Chambers of
the
merce, asked that grain assigned from an American port be granted
have
preference if it were certified by a Canadian government officer to
55.
been grown in Canada. The amendment was defeated 217 to
reasons for
Mr. Hore-Belisha explained that the government had two
make
refusing the amendment. First, he said, customs procedure would
Volume
135
Financial Chronicle
it extremely difficult to identify the wheat, and,second, it would be against
established policy.
The government, he continued, had always made it a matter of policy
to insist that goods that enjoyed preferential tariff treatment in the United
Kingdom be consigned from an empire country as well as have origin there.
II, Mr. Hore-Belisha quoted a statement by Prime Minister R. B. Bennett in the Canadian House of Commons on Oct. 26 that "preferences
would not be available to goods sent from Canada to the United States
and reconsigned there." This, he said, was "an exact statement of the
law."
The purposes of the decision against reconsignment of Canadian wheat
from the United States, he explained, was "to encourage the storage of
wheat either in Canada, which is to obtain the preference, or in the United
Kingdom, where we may obtain the advantage of storage and warehouse
dues. Is not Canada in a position to store wheat and is not the United
Kingdom in a position to store wheat?"
The House of Commons moved to-night without division to remove
the existing embargo against importation of Canadian cattle to the United
Kingdom. The House decided to lift the embargo after passing the meatquota clause of the Ottawa agreements bill, 302 to 65.
Further Canadian Press accounts from London Nov. 2
stated:
The Government to-night held to its stand that Canadian wheat consigned direct from Canada to the United Kingdom would enjoy a tariff
preference of six cents a bushel, but that wheat from the Dominion shipped
to the United States and reconsigned from there would get no preference.
The House of Commons rejected an amendment proposed by Graham
White, Liberal, to insert in the Ottawa agreements bill a clause providing
that no goods manufactured or produced in any part of the Empire shall
be excluded from preferential tariff treatment in the United Kingdom.
"notwithstanding that they may have passed through the territory of a
foreign country in transit."
The House of Commons moved swiftly toward ratification of the Ottawa
agreements with the dominions after lifting a long-standing embargo
against the importation of Canadian cattle into Great Britain.
Passage of the bill will not preclude any future British Parliament varying customs duties at any time it may see fit, the House was informed.
The Government upheld the Canadian Prime Minister's interpretation of the United Kingdom's tariff preference on Canadian goods. "that
preferences would not be available to goods sent from Canada to the United
States and reconsigned from there."
1111Tbe House voted down the amendment of J. Sandeman Allen, Conservative and Vice-President of the Association of British Chambers of Commerce, urging that wheat consigned from the United States to Great Britain
receive the regular Empire preference if certified by a Canadian officer
asICanadian grown.
Premier Bennett of Canada Says Great Britain Has
Sole Authority to Decide Question of Preferential
On Wheat Shipments.
On Nov. 3 Premier Bennett told the House of Commons
that British officials had sole authority to decide what Canadian wheat shipped to Great Britain through the United
States would come under the six-cent preference rote of
the new Canada-United Kingdom trade agreement. Associated Press advices from Ottawa Nov. 3 further said:
Replying to a question by a member of Parliament, he read a cable
received from the High Commissioner's office in London, which said:
"The mere transit of Canadian goods through the United States would
not be a barrier to grant of imperial preference provided that goods are
definitely consigned from Canada to this country and that satisfactory
evidence of through consignment is produced. Preference, however,
would not be granted to such goods in this country if such goods were sent
from Canada to the United States and then consigned from there."
British Seeking Foodstuffs Pool Within Empire—
Co-operative Farm Organization Formed for Production and Market Rule.
A plan for co-operative production and marketing of
primary produce has been launched by the establishment
of the "Empire Farmers' Co-op., Ltd.", said a Canadian
Press cablegram from London Nov. 3 to the New York
"Herald-Tribune," which further reported:
Many prominent agriculturists are to be members of the control board,
of which Lord Strathspey, member of the House of Lords, is chairman.
It Is understood the organization is starting with a large capital.
Operations already are beginning with the society, whose aims are
defined as, first, to control as far as possible the production of foodstuffs
throughout the Empire in order to stabilize prices to producer and consumer, and, second, to supply a sure market at from 20 to 25% above the
present price level. Third, the organization alms to sell to the consumer
at the cost of production plus only the working costs, and, fourth, to
replace foreign food products by Empire products.
Ratification of Ottawa Trade Agreements by British
House of Commons.
The Ottawa trade agreements passed their third and
final reading in the British House of Commons on Nov. 3
by the overwhelming majority of 416 to 68. A London
cablegram to the New York "Times" Nov.3 noting this said:
Britain has thus committed herself to a five-year tariff policy, including
an elaborate system of duties on foreign goods and preferences to the
dominions, except the Irish Free State. In the opinion of Neville Chamberlain, Chancellor of the Exchequer, who helped to initiate and negotiate
them, the Ottawa pacts have begun "a new conception of imperial unity
and opened a new chapter in imperial history."
The Labor Opposition had the assistance of the free trade Liberals,
led by Sir Herbert Samuel. but the combined attacks made no impression
on the Government's huge protectionist majority. The final debate
was colorless except for the personal triumph won by Malcolm MacDonald.
the Prime Minister's son and Under-Secretary of the Dominions. Finishing a fortnight's debate for the Government, young MacDonald handled
the case with a brilliance that brought loud cheers and led to remarks that
the son would be Prime Minister himself some day.
3069
From a London cablegram Nov. 3 to the New York
"Journal of Commerce" we quote:
This sensational vote on the Ottawa trade pact brought to a close debate
on the issue which lasted for weeks and brought resignations of the free
trade bloc from the present Government.
A lengthy list of tariffs is proposed with references to the dominions.
Meanwhile, the first serious rift between the dominions and Great
Britain as a result of the Ottawa agreement had been precipitated by
the restrictions placed upon the exportation of Canadian wheat to this
country via United States ports.
Apparently Canada has expected such wheat, which comprises about
60% of the total exported, to come within the preference duty, but spokesmen of the Treasury in Parliament have definitely rejected this interpretation, declaring that the entire system 'of imperial preference would
be nullified if an exception were to be made in the case of Canadian wheat
reconsigned from United States ports.
British Trade Upset.
Meanwhile the highly organized British grain import trade is unable
to determine its position and is considerably upset. This leaves a chaotic
condition so far as imports, partly Empire and partly foreign, are concerned.
Canadian House of Commons Ratifies Anglo-Canadian
Trade Treaty.
The Canadian House of Commons, by a vote of 128 to
80, ratified on Nov. 3 the Anglo-Canadian trade treaty
which was drawn up this summer at the Ottawa Imperial
Conference. Associated Press accounts from Ottawa,
Nov. 3 said:
The vote was taken after Prime Minister Richard B. Bennett, the
chief Canadian negotiator at the Conference, closed the debate on the
treaty by asking that it be approved.
The general effect of the accord is to give manufacturers from the United
Kingdom preferences in the Canadian markets in exchange for preferences
for Dominion goods in the markets of Britain.
According to Ottawa advices to the New York "Times"
the trade agreement was ratified by the Canadian House
by a vote of 128 to 80. It was added that the normal
government majority is 30, but one Liberal and several
Western farmer members voted with the Government.
Manitoba Farmers Protest Against Ratification of
Trade Agreements Beyond Life of Present Parliament.
Canadian Press advices from Dauphin, Man., Nov. 2 said:
An emphatic protest against the ratification of the Imperial Conference
agreements beyond the life of the present Parliament without a mandate
from the people was unanimously voted by the United Farmers of Manitoba this afternoon.
Bank of Montreal Reviews Imperial Conference Trade
Agreements.
"The important event of the month in Canada," according
to the Business Summary Oct. 22 of the Bank of Montreal,
"has been the coming into operation of the trade agreements
arrived at by the Imperial Economic Conference in August,
these having gone into effect on Oct. 13, in so far as they
relate to imports into Canada." The bank further says:
The changes in the Canadian tariff are numerous, upwards of 200, and
in the direction of increased preferences to British products in the
Canadian market, the additional preferences being given in the shape of
free entry, entry at lower rates of duty, or by increasing the duty on
articles imported from other than British countries. The commodities
principally affected are heavy chemicals, products of iron and steel, and
textiles, all of which, when of British origin, are placed in a more favourable
competitive position in the Canadian market against foreign products as
well as, to a lesser extent, against the products of Canadian industries.
In return, Great Britain extends advantages to Canadian products, more
Particularly those of the farm, field and forest, either by admitting these
Into Great Britain free of duty against a duty upon like foreign products, or,
by the establishment of quotas, as in the case of bacon. It will necessarily
require some time to determine the full effect of this new and important
departure in fiscal policy of Empire countries, but, upon the whole, the
scheme appears to be received favorably and with high hope of substantial
advantage accruing from it. Importations from Great Britain are likely to
Increase and one of the first consequences should appear in the placing of
orders by Canadian merchants, withheld for some time past in anticipation
of the lower rates of duty now in force.
all
Australian Minister Defends Ottawa Pact—AttorneyGeneral Latham Says Accord Gives His Nation
Advantage As Result of British Concessions—
Opposition by J. H. Scullin.
Under date of Oct. 10 Melbourne, Australia, &dykes to
the New York "Times" said:
Speaking at a luncheon for Harold S. Smith, re-elected Lord Mayor of
Melbourne, Attorney General John G. Latham to-day replied vigorously to
critics of the Ottawa trade agreement.
"The agreement offers a very fair advantage to Australia," he declared.
"It involves the imposition in Great Britain of taxes on foods and restrictions on the increase of food prices."
Mentioning various political defeats for Great Britain through.proposals
to tax food, Mr.Latham added that the present MacDonald government was
prepared to face the risk of imposing food taxes in order to bind the empire
together on a basis of mutual benefit.
"Political risks are being run elsewhere than in Australia with regard to
the Ottawa agreements," he said. "Those risks would not be run unless
those running them believed in their case and their cause. Give them
credit for Courage, sincerity and the desire to do their best for the wellbeing of the empire."
3070
Financial Chronicle
On Nov. 2 Canadian Press accounts from Melbourne
had the following to say:
An amendment asking for the withdrawal of the Government's bill to
ratify the agreements of the Imperial Conference was offered in the House
of Representatives to-day by James H. Scullin, leader of the Opposition.
The amendment was proposed as the House resumed debate on the
ratification bill. The Opposition leader was emphatic in his denunciation
of the pacts and declared they destroyed Australia's fiscal freedom and
her system of protective tariffs. He contended that greater preference
had been given in the past to the United Kingdom than Australia had
received from that quarter.
As.
Australian Tariff Changes Effective in Line with
Ottawa Agreements.
In line with the agreements concluded by Australia at
the recent Ottawa Conference, a considerable number of
tariff changes were reported as having become effective
on Oct. 14 1932, increasing the margin of preference accorded
to British products, it is learned from advices made available
through W. T. Turner, Australian Customs Representative
, in New York. We quote from an announcement Oct. 17
made by the Department of Commerce, which also said:
The modifications made affect over 400 classes of goods and are along the
following lines Increases in the general tariff only (including importations
from the United States) ranging from 2M % ad valorem to 10% ad valorem
and In a few cases from 1234% to 174% ad valorem; increases in specific
rates under the general tariff; decreases in the existing British preferential
tariff: a few decreases in the general rates, with no corresponding reductions
in the case of the British preferential tariff; as well as a few other changes
Intended to create a margin of preference for British goods or increase
prevailing margins of preference.
(Details are available and will be released as soon as possible.)
Yearly Payment to President of France 3,600,000 Francs
—Economy Move Leads Paris Midi to Conduct Investigation of Official Salaries.
Special correspondence as follows from Paris, Oct. 17 is
taken from the New.York "Times" of Oct. 30:
While the French Government is devising economies and studying the
possibilities of raising more revenue through new taxation in a desperate
effort to balance its budget, the Paris Midi has conducted a private investigation into the salaries paid to public officials.
It appears that while French Cabinet Ministers receive a salary of 180,000
francs ($7,200) yearly, they cease to have the benefit of any allowance to
which they may be entitled by membership in the Chamber of Deputies.
They continue to receive 2,750 francs ($110) a month from the Chamber,
but this amount is deducted from their salary as Ministers, so that they
are paid for their Cabinet labors only 12,250 francs ($490) at the end of each
month, plus 4,165 francs ($166) for motor car expenses.
Should a Cabinet remain in office only 48 hours—such cases have happened—its members are allowed two days' pay.
The President of the Republic receives an annual salary of 1,800,000
francs ($72,000), paid monthly in advance, plus 900,000 francs ($36.000)
for ihis household expenses and a like sum for traveling and other outlays
incidental to his office. Even 3,600,000 francs a year:is not:excessive when
the expenses are taken into account. Very few Presidents have left office
'richer than when they were inducted.
Reparations and War Debts Linked—Premier Herriot
ct of Lausanne
a France Tells Chamber That IVE-Ife—
Gentlemen's-'Agreement.
—
In a, wn•eless message from Paris to New York "Times"
ff is stated that-although discussion of the inter-allied debts
was definitely ruled out of the Chamber of Deputies debate
by Premier Herriot on Oct. 28, some mention of them was
inevitable, and they were spoken of by Henry FranklinBouillon and others in an effort to show that everything the
Herriot government has done, is doing and intends to do is
so much less well done than they would have done it themselves. The message continued:
Thus M. Franklin-Bouillon argued that the Lausanne conference was
premature and that as a result France had nothing but a hypothetical
3.000,000,000 marks to meet "the new demands of the United States and
the pressure of America, which is spending all its energy to make us pay
what we don't owe."
M.Herriot's reply to this allusion follows:
"M. Franklin-Bouillon reproaches me with having gone to the Lausanne
conference. Gentlemen, when, at the beginning of June, I was appointed
President of the Council I found on my table at the Qual d'Orsay an invitation to go to Lausanne as soon as possible. It was an invitation that did
not fill me with any joy.
"But if I had adopted the course that M.Franklin-Bouillon says I should,
what would have happened? First, I would have failed in the engagement
made by the preceding government, and every one knows that a change of
government does not mean the annulment of international engagements.
"Furthermore, what were the prospects of the Lausanne conference?
Germany said,'I will not pay.' Great Britain said,'I am for cancellation of
reparations.' Italy was of the same opinion.
"It is quite simple to conclude that if I had not gone to Lausanne the
French thesis would have had no defender and the German thesis would
have won without opposition. From Lausanne I brought back 3,000,000000 marts. Believe me, gentlemen, I don't wish to try to delude you any
more than I delude myself about the importance of this result, but the
Lausanne conference was not important only because of the fact of this
settlement, which some people contest was obtained. It was that it established relations—which are very dear to you, M. Franklin-Bouillon—
between German reparations and Allied debts to the United States."
M.Franklin-Bouillon made an objection to this statement and M.Harlot
continued:
"It cannot be disowned; it is a fact. There is a certain gentlemen's agreement about which there has been much talk, which in the fullest possible
measure establishes the relation between German debt payments and pay-
Nov. 5 1932
ments by the Allies of their debts. It cannot be denied. It is fully evident.
You can try if you wish to show me otherwise."
Evening Sessions for Paris Bourse—New Department
Will Enable Arbitrage Firms to Operate After
New York Opens—Supplementary Trading From
2.45 to 3.30 p. m. Limited to Selected Stocks.
A supplementary Bourse to function after the official stock
market has closed was inaugurated in Paris on Nov. 2. The
Associated Press advices from Paris on that day said:
The session was featured by the introduction of the new 4)4% rente which
replaces the higher interest paying Government issues recently converted.
A Paris cablegram Oct. 29 to the New York "Times"
announcing that commencing on Nov. 2 the Paris stock
market would have a new department called a "Bourse du
Soir," or Evening Stock Exchange, which would open at
2.45 p. m., when the regular trading ends, and close at 3.30
p. m., went on to say:
The late trading has been instituted to permit French arbitrage firms doing
business with Wall Street to operate after the opening of the New York
Stock Exchange.
There is a difference of five hours in time between New York and Paris.
which means that when Wall Street trading opens at 10 a. m. it is 3 P. inhere, and the regular Bourse has closed. Some unofficial trading has been
conducted here after the close of the Bourse, with generally unsatisfactory
results. Hence, the new "Bourse du Soir."
Agitation for later official trading hours has been going on for some time,
and M. Jacob, President of the brokers' syndicate, gave it his support and
the support of his organization. Last week the Prefecture of Police issued
the following communique:
"In accordance with the instructions of the Minister of Finance, an
order of the Prefect of Police, dated Oct. 14 1932, has instituted at the
Bourse, starting Nov. 2 1932, a supplementary session limited to a single
group exclusively trading in certain stocks previously designated by the
Syndical Chamber of the Stock Brokers of Paris."
Originally, trading at the late session will be limited to transactions in
such stocks as Canadian Pacific, Royal Dutch, Rio Tinto, Central Mining
and Metropolitan. The Syndicat de la Coultas°, which corresponds to the
New York Curb Exchange, also is making arrangements to quote the principal stocks in which arbitrage dealings are involved.
The financial newspaper, Agence Economlque et Financier°, discussing
the new development,says that for the orderly operation of an international
Stock Exchange worthy of the name,it is needful that international arbitrage
can be practiced with the maximum facility. It is not a question of quoting
or introducing new foreign stocks, the paper says, "French capitalists will
have every facility to reconstitute their portfolio of foreign stocks, while
International brokers established here can offer advantages to their customers, due to the fact that they are not subjected to the same fiscal obligations as French bankers."
Italian Treasury Viewed as Holding Strong Cash
Position—Budget Deficit for Quarter Put at
1,090,000,000 Lire.
Under date of Oct. 31 copyright advices from Rome,Italy,
to the New York "Herald Tribune" said:
The deficit in the State budget during the first three months of the current
financial year—July to Sept.—is 1,090,000,000 lire, against 911,000,000 in
the corresponding months of 1931 and against an estimated deficit of 1,412,&
000,000 for the whole fiscal year. On the other hand, the treasury is in.
very strong cash position, with 2,751,000,000 lire at the end of September,
of which 2,515,000,000 is held on deposit in the Bank of Italy. This, in
turn, is due to Italy's strong monetary policy.
The note issue is not being allowed to increase and for this purpose the
treasury is keeping a big deposit in the Central Bank. Only by means of
high taxation and the postponement of public expenditures not absolutely
urgent is the government able to keep such a Large amount of exchequer
funds deposited in the Bank of Italy. Nor is the budgetary position as bad
as it appears on paper, since the figures given do not represent actual payments nor receipts during the period.
If one examines cash movements during the first two months of the fiscal
year for which detailed figures are available results are much better, namely,
2,527,000,000 lire of revenues was cashed and 2,360,000,000 lire of expenditures paid. Thus, in spite of the deficit on paper the budget situation
actually is better than appears at first.
Kingdom of Rumania 4% Consolidation Loan of 1922—
Request for Suspension of Operation of Sinking
Fund.
Under date of Oct. 12 the fiscal agents for the Rumanian
Government—The British Overseas Bank Limited—through
Arthur C. D. Gairdner, Deputy-Chairman & Managing
Director, announced the receipt of a communication from
the Miristers of Finance of Rumania, of which the following
is the English translation:
Bucharest, Oct. 8 1932.
The financial crisis forces the Rumanian Treasury to:explore possibilities
of reducing its charges, without, of course, prejudicing the State's credit
or harming our creditors. It has been decided tolask creditors to grant
the Rumanian Treasury a measure of temporary relief by agreeing to
suspend the operation of the sinking fund of the above-mentioned loan
for a number of years. It goes without saying that the:coupon service
will continue as usual, so that the bondholders will suffer no:actual loss.
We have opened negotiations in this sense in connection:
4, with! all our
loans and hope that all our creditors, bearing in mind the:general economic
and financial position and appreciating the efforts which the: Rumanian
Treasury has hitherto made to fulfill its engagements punctually; will
agree to grant toe temporary relief.
In carrying out strictly the terms of the said loan and the conditions of
the general bond,the Rumanian State has up to date'withdrawn a quantity
of bonds representing anticipation of the prescribed redemption forLabout
eight years.
It is pointed out that the Anking fund has been in force
far five years and operates by purchase of the bonds.
Volume 135
Financial Chronicle
Moscow Shops Catering to Foreigners Reject Ruble as
Medium of Currency—To Accept Only Foreign
Currency.
Under date of Oct. 24, Associated Press advices from
Moscow said:
Extending the policy of making the ruble void as a medium of currency
in various shops and hotels catering to foreigners, the Moscow food store
in which diplomats and foreign correspondents buy their supplies announced
to-day that, beginning Wednesday,it would accept only foreign currency.
Hereafter the store, which previously sold goods exclusively for rubles,
will be under the management of the Torgsin, which dispenses all varieties
of merchandise, including food, for foreign currency only.
From the New York "Times" we take the following from
Moscow Oct. 25:
The two large food stores reserved, respectively, for fofeign diplomats
and correspondents and for specialists were crowded with would-be purchasers from early morning on to-day as a result of yesterday's announcement that beginning to-morrow trade with the Torgsin system, which now
operates the stores, would be in foreign currency instead of rubles.
The parallel stores for the sale of manufactured goods were similarly
crowded.
Apparently some of the foreign diplomatic missions failed to avail themselves of the facilities offered to them a year ago in a somewhat significant
notice from the State Bank for changing foreign money for rubles at a
slight reduction in the latter's par value, which is not surprising, as they
managed to obtain cheaper rubles in other channels.
Torgsin prices average twice the retail rates abroad, so the diplomats
will probably exercise their privilege of importing supplies duty free. They
have received no official notification of the change save the same polite
note that the Torgsin management addressed to the reporters.
South African £8,000,000 Loan Sold.
The following (Canadian Press) from London Oct. 27,
is from the New York "Times":
The £8,000,000 loan underwritten by the South African Government
was closed at noon to-day with the lists fully subscribed. The bonds,
placed on the market yesterday, were issued at 963 to be redeemable in
1953 and 1973, with a yield of 33,5%.
New Australian Loan of £8,000,000.
Regarding a new Australian loan Canadian Press advices
from Melbourne, Australia, Oct. 29 said:
It was officially announced to-day that the loan council, which has
supervision over all loans raised in Australia. has arranged with the Commonwealth Bank and other trading banks to underwrite a loan of E8,000,000. The raze is to be 3!)1%. The bonds will mature in 10 years and will
be issued at par. They will be subject to the same taxation as consolidated
stocks.
One-half the proceeds of the loan will be used for funding treasury bills
and the remainder for a States' loan program,
Soviet China Sells Bonds—$600,000 Issue to Finance
War Subscribed in Two Weeks.
From the New York "Times" of Oct. 23 we take the
following special correspondence from Shanghai Sept. 22:
A $600,000 bond issue, divided into units of 30 and 50 cents, $1 and $5,
has been floated in record time in Central China by "The Provisional
Central Government of Soviet China," and some of the bonds have found
their way into the hands of factory workers in Shanghai.
These bonds, which are issued to help finance the Communist resistance
to the assaults of General Chiang Kai-shek's armies, will mature in six
months, and bear interest at the rate of 10% a year.
The heads of the Central Soviet expected that It would require at least
a month to float the bonds, but the returns from every district where they
were offered far exceeded estimates, and the entire issue was sold in less
than a fortnight. In some cases, laborers went without food in order to
buy bonds, and in many farming areas members of the Peasant Union
diverted to bond purchases the yield from specified areas of rice lands.
The soldiers ot several of the Communist divisions not engaged at the front
obtained leave for two days, spent the time chopping fire wood, and invested the mo..,ey they received for the wood in the bonds.
Greece Unable to Pay Interest on Debts In Foreign
Currency.
—
r..
—
From Athens, Greece, Nov. 4, United Press advices
published in the New York "Sun" said:
Greece is unable to pay the interest of its debts in foreign currency,
Finance Minister Ageloponlos said to-day.
Greece can only pay In drachmas for the coming year, he said. suggesting
that the matter be submitted to arbitration.
Yugoslavia Deposits Bond Interest.
From Belgrade Nov. 1 the New York "Times" reported
the following:
To-day being the date for payment of coupons on American loans, the
Government of Yugoslavia paid 6,000.000 dinar- (about $100.000) into
the National bank. The money will be at the disposal of foreign bondholders in Yugoslavia but cannot be taken from the country.
Yugoslavia as Result of Inability to Acquire Necessary
Foreign Exchange Unable to Transfer Funds to
New York to Meet Nov. 1 Payments on Bonds.
The Government of the Kingdom of Yugoslavia, through
Dr. Milan Georgevitch, Minister of Finances, announced
on Oct. 31 that due to its inability to acquire the necessary
foreign exchange, it has been unable to transfer to New York
funds for the payment of interest and sinking fund due
Nov. 1 on its 8% secured external gold bonds and its 7%
3071
secured external gold bonds (Series B), both due 1962. These
bonds comprise the National External Gold Loan of 1922 of
the Kingdom of the Serbs, Croats and Slovenes.
The statement by Dr. Georgevitch, made public in New
York with his authorization by Bancamerica-Blair Corp. and
Chase Securities Corp., points out that the amounts in dinars
sufficient to meet the interest and sinking fund payments
have been and will continue to be regularly deposited in a
special blocked account in the National Bank of Yugoslavia.
The announcement says:
The Government wishes to assure holders of these bonds that its failure
to make the present payment arises from circumstances entirely beyond its
control. As a result of the world-wide economic and financial crisis, which
has been particularly acute in Central Europe,foreign trade, tourist traffic,
emigrant remittances and other activities from which means of effecting
international payments are normally derived, have suffered a substantial
reduction. The cessation of reparation payments and the lack of foreign
capital have further diminished the foreign balances usually available for
payments on external debt.
The Minister of Finances is desirous of arranging such temporary measures as can be taken during the present abnormal period in the best interests of bondholders. The Government does not deisre to impair its obligations, but rather to find some method of meeting the present crisis.
Bancamerica-Blair Corp. and Chase Securities Corp. state
that they have been advised by the fiscal agents that funds
are not available for payment of the Nov. 1 1932, coupons.
The suggestion is made that bondholders advise them of the
amount of their holdings and the address to which any further
announcement may be sent.
From the New York "Herald Tribune" of Nov. 1 we take
the following:
The issues have been in technical default for some time because funds
were not received by the City Bank Farmers Trust Co., fiscal agent, on
stipulated dates. The fiscal agent has only about $100,000 available
against the 8% bond issue. Both issues comprise the National External
Gold Loan of 1922 of the Kingdom of the Serbs, Croats and Slovenes.
The two issues are the largest publicly marketed by Yugoslavia, and default on them indicates defaults on numerous other Yugoslavian issues.
Two smaller French issues of Yugoslavian obligations were recently defaulted. . . .
The 8% bonds due 1962 were issued in the amount of $15.250,000 and
were sold by Blair & Co. at 95% and interest, to yield about 8.4%. The
bonds closed yesterday on the New York Stock Exchange at a new low of
16, off 11 points, compared with the high of 50 for this year. The 7%
bonds due 1962 were issued in the amount of $30,000.000 and were sold by
Blair & Co. in 1922 at 923.6 and interest, to yield about 7.6%. The bonds
closed yesterday on the New York Stock Exchange at a new low of 14, off
2% points, compared with the high of 45 for this year.
Both issues constitute, equally, a first lien on the new receipts of the
State monopolies, including tobacco, cigarette paper, kerosene, salt, stamp
and match monopolies, and the custom duties, as well as by a first lien on
the total gross receipts of all the State railroads of the Kingdom owned as
of May 1 1932 and the railroads from Belgrade to the Adriatic. The 8%
loan was issued to repair and construct railroads. Half of the 7% loan was
issued to build the Belgrade Adriatic Ry. and half for general governmental
purposes.
Efforts were recently made by Yugoslavia to obtain a new loan from
France, its political ally, in order to meet current external obligations, but
the efforts were unsuccassful,
Two Series of Secured External Gold Bonds of Kingdom
of The Serbs, Croats and Slovenes (Yugo-Slavia)
Being Dealt in "Flat" on New York Stock Exchange.
Ashbel Green, Secretary of the New York Stock Exchange,
issued the following notices on Nov. 1:
NEW YORK STOCK EXCHANGE
Committee on Securities.
Notice having been received that the interest due Nov.1 1932 on Kingdom
of the Serbs. Croats and Slovenes 40-year 8% secured external gold bonds,
due 1962. is not being paid:
The Committee on Securities rules that beginning Tuesday, Nov. 1 1932,
and until further notice the said bonds shall be dealt in "Flat" and to be
a delivery must carry the Nov. 1 1932 and subsequent coupons.
Notice having been received that the interest due Nov. 1 1932 on Kingdom
of the Serbs. Croats and Slovenes 7% Secured External gold bonds,series 13,
due 1962. Is not being paid.
The Committee on Securities rules that beginning Tuesday, Nov. 1 1932,
and until further notice the said bonds shall be dealt in "Hat" and to be a
delivery must carry the Nov. 11932 and subsequent coupons.
ASHBEL GREEN, Secretary.
Speyer & Co. Announce Receipt of Funds for Payment
of Nov.1 Coupons of City of Dresden, Germany.
Speyer & Co., as fiscal agents, announce that they have
received the regular remittance for payment of the Nov. 1
1932, coupons of the city of Dresden, 20-year 7% sinking
fund gold bonds of 1925.
J. Henry Schroder Banking Corporation Sole Payment
Agent in New York of Coupons of Potash Syndicate
of Germany.
With the resignation of Lee, Higginson & Co., J. Henry
Schroder Banking Corp. is now the sole paying agent in
New York for coupons and drawn bonds of the Potash
Syndicate of Germany 25-year sinking fund gold loan, 7%,
series A and B 1950, and 63/2% series C, 1953.
3072
Financial Chronicle
Bonds of Saxon State Mortgage Institution Drawn for
Redemption.
The National City Bank of New York, as trustee, is
notifying holders of Saxon State Mortgage Institution
mortgage collateral sinking fund 7% guaranteed gold bonds,
due Dec. 1 1945, and mortgage collateral sinking fund 634%
guaranteed gold bonds, due Dec. 1 1946, that $46,000 of the
former and $36,000 of the latter bonds have been designated
for redemption at par on Dec. 1. Payment will be made
upon surrender of the designated bonds at the head office
of the bank, 55 Wall Street, on and after Dec. 1, after which
date interest on the designated bonds will cease.
Interest Due on External Loan Sinking Fund 6% Gold
Bonds of City of Vienna (Austria) Unpaid—New
York Stock Exchange Rules Bonds be Dealt in
"Flat."
The New York Stock Exchange, through its Secretary,
Ashbel Green, issued the following announcement on Nov. 1
NEW YORK STOCK EXCHANGE.
Committee on Securities.
Notice having been received that the interest due Nov. 1 1932, on City of
Vienna, external loan sinking fund 6% gold bonds, due 1952, is not being
paid
The Committee on Securities rules that beginning Tuesday. Nov. 1 1932,
and until further notice the said bonds shall be dealt in "Flat" and to be a
delivery must carry the Nov. 1 1932, and subsequent coupons.
ASHBEL GREEN, Secretary.
Ruling of New York Stock Exchange That 8% Mortgage
Loan Gold Bonds of Municipality of Graz (Austria)
Be Dealt in "Flat."
On Nov.1 the New York Stock Exchange issued the following notice regarding 8% mortgage loan gold bonds of municipality of Graz (Austria):
NEW YORK STOOK EXCHANGE.
Committee on Securities.
W Notice having neen received that the interest due Nov. 1 1932, on Municiaplity of Graz 8% mortgage loan gold bonds, due 1954, is not being paid
The Committee on Securities rules that beginning Tuesday, Nov. 1 1932,
and until further notice the said bonds shall be dealt in "Flat" and to be a
delivery must carry the Nov. 1 1932, and subseucient coupons.
ASHBEL GREEN, Secretary.
Tenders Asked for Purchase of Argentine Bond
Through Sinking Fund.
J. P. Morgan & Co. and the National City Bank of New
York, as fiscal agents, are notifying holders of Government
of the Argentine Nation external sinking fund 6% gold bonds,
issue of May 1 1926, due May 1 1960, that $152,272 in cash
is available for the purchase for the sinking fund of so many
of these bonds as shall be tendered and accepted for purchase
at prices below par. Tenders of bonds, with coupons due on
and after May 1 1933, should be made at a flat price below
par before 3 p.m., Dec. 2 1932, either at the office of J. P.
Morgan & Co.,23 Wall St., or the head office of the National
City Bank of New York, 55 Wall St. If tenders so accepted
are not sufficient to exhaust the available moneys, additional
purchases upon tender, below par, may be made up to
Jan. 31 1933.
The same bankers are also notifying holders of Argentine
Government Loan 1927 external sinking fund 6% gold bonds,
public works issue of May 1 1927, due May 1 1961, that
$152,422 in cash is available for the purchase of so many of
these bonds as shall be tendered and accepted for purchase
at prices below par. Tenders of bonds, with coupons due
on and after May 1 1935, should be made at a flat price
below par before 3 p.m., Dec. 2 either at the office of J. P.
Morgan & Co., or at the head office of the National City
Bank. If tenders so accepted are not sufficient to exhaust
the moneys available additional purchases upon tender,
below par, may be made up to Jan. 31 1933.
Argentine Government to Examine Packers' Books—
Calls upon Armour, Swift, Wilson and Others for
Data.
Associated Press advices from Buenos Aires, Argentina,
Oct. 22, stated:
The Government to-day ordered seven meat-packing houses. including
Armour. Swift and Wilson, to submit their books for examination under
the law which obliges such companies to give information "in the public
interest."
The order followed upon refusal by the packers to reveal their domestic
and foreign sale prices, their stocks on hand and their industrialization costs
from cattle purchases to consumer sales. The packers held that if the law
may be construed so broadly It is unconstitutional.
In a cablegram from Buenos Aires Oct. 22 to the New York
"Times" it was stated:
Nov. 5 1932
The Minister of Agriculture recently instructed the companies to submit
certain information regarding their costs and financial operations and the
packers refused, on the ground that no law requires them to do so. They
notified the Minister that they would test the constitutionality of the meat
control law.
Bogota (Colombia) Congress Gives President
Emergency
Powers.
In a cablegram Oct. 27 from Bogota (Colombia) to the
New York "Times" it was stated:
Over-riding the persistent opposition of the Conservatives, the Government's majority in the Senate last night sanctioned a bill sponsored by
Finance Minist,er Esteban Jaramillo, which already had passed the House.
conferring temporary limited legislative powers on the President. Congress
made no material change in the original provisions, which authorize the
President to change personnel, duties and salaries of Government employees
to improve efficiency, to reduce certain taxes, and to modify the regulations
for the control of exchange and exports.
—4,—.
Gold Holdings of Central Bank of Colombia—LatinAmerican
Bondholders
Analyzes
Association
Figures Previously Published.
We give in full a letter received by us from the LatinAmerican Bondholders Association bearing on an item
published in our issue of a week ago:
LATIN-AMERICAN BONDHOLDERS ASSOCIATION.
New York, N. Y., Nov. 2 1932.
To the Editor:
Dear Sir:—On page 2908 of your valued periodical dated Oct. 29 1932—
last paragraph in the first column—appears a comparison of the gold
holdings of the central banks of Colombia and Peru.
The gold holdings of the Bank of the Republic are shown as 813,156,074.
News Bulletin of the Consulate General of Colombia, New York, dated
Oct. 17, gives the gold reserves of the Bank of the Republlc as follows on
the dates shown:
Sept. 30 1932
$16,584,262 I Oct. 8 1932
816,149,986
Since your item appears as quoted from the New York "Times" of Oct.
16, representing special correspondence from Panama Oct. 11, the dates
for the figures would be close enough for comparison.
The Colombian Consulate General figures are in Colombian pesos; as
the gold peso is worth $.9733, the United States dollar equivalents would be
Sept. 30 1932
$16,141,462 Oct. 8 1932
$15,718,781
In either case the figure seems to be $2,500,000 or $3,000,000, or say 20
or 25% above the figure which you publish.
It may be noted in passing that these figures compare with the figure of
$11.735,000 on March 12 1932, and indicate an increase of nearly 50%
in six or seven months.
Your figures are presumably accurate. Possibly the other figures quoted
herein include deposits abroad, i.e., foreign exchange holdings of the bank,
whereas your figures may be based on gold in vault only. But there are
over $150,000,000 in principal amount of various Colombian dollar bonds
outstanding in this market, 50% of them in default on account of transfer
moratorium, and the normal international trade between the two countries
exceeds $100,000.000 per annum. Colombia's exchange problem is, therefore, of widespread interest here and every published figure regarding her
gold reserves is eagerly analyzed. This will explain the liberty taken in
calling your attention to an apparent discrepancy.
Yours very truly,
DOUGLAS BRADFORD, Assistant
Secretor?".
Bond of Mortgage Bank of Colombia Dealt in "Flat"
on New York Stock Exchange—Interest Due
November 1 Partly Paid.
The followIng announcement was issued Nov. 1 by Ashbel
Green, Secretary of the New York Stock Exchange:
NEW YORK STOCK EXCHANGE.
Committee on Securities.
Notice having been received that payment of $10 per $1,000 bond is
being made on account of the interest due Nov. 1 1932 on Mortgage Bank
of Colombia 20-year 7% sinking fund gold builds
of 1928. due 1948:
The Committee on Securities rules that beginning Tuesday,
Nov. 1
and until further notice the said bonds shall be dealt in "flat" and 1932.
to be
a delivery must carry the Nov. 1 1932 coupon stamped as to payment of
$10 per $1,000 bond and subsequent coupons. Such coupons must be
securely attached and bear the same serialAnsu
il
mB
ber
EL
"
GtRrN
he
E nd
,'
Secretary.
An announcement issued by the Chemical Bank & Trust
Co. on the bonds was referred to in these columns of Oct. 29,
page 2908.
Peruvian Congress Recesses.
After a session that has lasted ten months, the Peruvian
Congress recessed on Nov. 1 until Dec. 3 according to a
Lima (Peru) cablegram on that date to the New York
"Times":
Two Committees Formed to Act for Holders of Peruvian
Bonds.
Announcement was made on Oct. 31 of the formation of
two committees to act for holders of about $87,000,000
aggregate par value of dollar bonds and £1,958,200 of Sterling bonds of the Republic of Peru outstanding at the present
time. William Phillips, formerly United States Ambassador
to Belgium,heads the committee which will represent holders
of Peruvian National Loan 6% external sinking fund gold
bonds, first and second series, due Dec. 1 1960, and Oct. 1
1961, respectively.
include:
3073
Financial Chronicle
Volume 135
Other members of this committee
Hugh B. Baker, President of the National City Co.
Clarence H. Haring, Professor of Latin-American history at Harvard
University.
Grayson M.-P. Murphy, of G. M.-P. Murphy & Co.
Robert V. White of J. & W. Seligman & Co.
Frederick G. Curry, 22 William St., is Secretary of the
committee for which Shearman & Sterling are counsel and
City Bank Farmers Trust Co., depositary.
The other committee, headed by James R. Sheffield,
formerly United States Ambassador to Mexico, will represent
holders of Republic of Peru secured 7% sinking fund gold
bonds, 1927. This committee comprises also:
John C. Jay of J. & W. Sedgman & Co.
Fred Lang, President of the Latin-American Bondholders Association.
George N. Lindsay, of New York City.
Sever° Mallet-Prevost, of Curtis, Mallet-Prevost, Colt & Mosle.
Victor Schoepperle, Vice-President of the National City Co.
Jesse Knight,63 Wall St., is Secretary of the committee for
which Curtis, Mallet-Prevost, Colt & Mosle are counsel and
City Bank Farmers Trust Co., depositary. The announcement also says:
Both Committees desire to be placed in a position to negotiate at the
proper time with the Peruvian Government for the resumption of the
service on the above bonds and request all holders of bonds to authorize
the Committees to represent them in the course of any negotiations which
may arise. Since the Committees believe that there is little prospect of a
permanent settlement at this time that would be acceptable to bondholders
they are not calling for deposits of bonds now. This procedure is particularly favorable to bondholders since the marketability of their present
holdings of bonds ill not be affected by signing letters of authorization as
requested by the committees.
United States Investments in Uruguay $27,173,789—
Although Less than Great Britain's, Our Capital
Pays $525,724 More in Taxes.
From the New York "Times" of Oct. 23 we take the following special correspondence from Montevideo, Oct. 10:
The United States is second only to Great Britain in the amount of capital
permanently invested in Uruguay, according to a report just prepared by
the Ministry of Finance, which places American investments at $27,173,789,
compared with $149,056,085 credited to Great Britain. Totalforeign investments are placed at $190,031,000.
American capital gives employment to 8,176 persons, with a total annual
Payroll of $5,550,747 and pays annual taxes totaling $6,993.360.
Foreign capital employs 29,143 persons, pays $20,217.421 a year in salaries and wages, and $15,132,492 in taxes. British capital pays annual
taxes of only $6.467,636, much of it being invested in public utilities under
concessions relieving it of taxation, while most of the American capital Is
invested in industrial enterprises.
Partial Payment to Be Made on Costa Rica 7% Bond
Coupons.
It was announced, Oct. 31, that holders of Republic of
Costa Rica 7% gold dollar bonds of 1926, who have not
accepted the Republic's offer for the funding of interest
coupons maturing during the next three years, would receive
a partial payment on the coupons due Nov. 1 at the rate of
$23 for each $35 coupon and $11.50 for each $17.50 coupon
upon presentation to the fiscal agents, J. & W. Seligman
& Co. The announcement likewise said:
Under the funding offer, holders of the bonds who surrender all of the
interest coupons maturing up to and including Nov. 1 1935 will be entitled
to the same cash payment and to interest bearing funding bonds for the
balance of the interest called for by the coupons. The New York Stock
Exchange has ruled that the 7% bonds of 1926 are a good delivery on that
exchange, either with or without the coupon due Nov. 1 1932 to Nov. 1
1935 inclusive. The funding bonds are not listed but are dealt in "over
theicounter."
An item relative to the plan for meeting interest payments
on the 7% bonds during the next three years was referred to
in our issue of Sept. 3, page 1581.
Notice Issued by New York Stock Exchange on Republic
of Costa Rica External Secured Sinking Fund 7%
Gold Bonds, 1926.
Under date of Nov. 1, the New York Stock Exchange
issued the following notice, released by Ashbel Green,
Secretary:
NEW YORK STOCK EXCHANGE.
Committee on Securities.
F Referring to the ruling of the Committee on Securities dated Sept.8 1932.
Sec. 566.
Notice having been received that payment of $23 per $1,000 bond is being
made on account of the interest due Nov. 1 1932 on Republic of Costa Rica
External Secured Sinking Fund 7% Gold Bonds. 1926. due 1951:
The Committee on Securities further rules that beginning Tuesday, Nov.
until further notice, the bonds now listed "Nov. 1 1932, coupon
1 1932;and
en" shall be dealt in "Flat" and to be a delivery must carry the Nov. 1 1932
coupon stamped as to payment of $23 per $1,000 bond and subsequent
couponB. Such coupons must be securely attached and bear the same serial
number as the bond.
Note.—Beginning Nov. 1 1932. the above issue will be listed as follows:
stamped $23 paid. May 1 1936 coupon on.
Nov. 11932. coupon on
ASHBEL GREEN. Secretary.
The ruling of the Committee on Securities of the Exchange
of Sept. 8 was referred to in our issue of Sept. 10, page 1746.
Decrease of $55,099,384 Reported in Outstanding
Brokers' Loans on New York Stock Exchange During October—Decline Follows Two Consecutive
Increases—Total Oct. 31, $324,702,199, as Against
$379,801,583. on Sept. 30.
During October outstanding brokers' loans on the New
York Stock Exchange decreased $55,099,384 from September, the total on Oct. 31 being $324,702,199 compared with
$379,801,583 on Sept. 30. The latter figure represented
an increase of $48,102,263 over the Aug. 31 total of $331,699,320, and was the highest reported by the Exchange since
March 31 this year, when the total was $533,103,059. In
the Oct. 31 statement demand loans are shown as $201,817,599, compared with $269,793,583 on Sept. 30, while time
loans on Oct. 31 are reported as $122,884,600 against $110,008,000 on Sept. 30. The Oct. 31 figures were made public
by the Exchange as follows on Nov.3:
Total net earnings by New York Stock Exchange members on collateral,
contracted for and carried in New York as of the close of business Oct. 31
1932, aggregated $324,702,199.
The detailed tabulation follows:
Demand Loans.
Time Loans,
(1) Net borrowings on collateral from New York
banks or trust companies
$143,913,100
$120,246,100
(2) Net borrowings on collateml from private bankers,
brokers, foreign bank agencies or others in the
City of New York
57,904,499
2,638,500
$201,817,599
Combined total of time and demand loans, $324,702,199.
$122,884,600
The scope of the above compilation is exactly the same as in the loan report issued by the Exchange a month ago.
The compilation of the Stock Exchange since the issuance
of the monthly figures by it, beginning January 1926,
follows:
1926—
Jan. 30
Feb. 27
Mar.31
Apr. 30
May 28
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov.SO
Dec. 31
1927—
Jan. 31
Feb. 28
Mar.31
Apr. 30
May 31
June 30
July •
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1928—
Jan. 31
Feb. 29
Mar.31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec 31
1929—
Jan. 31
Feb. 28
Mar.30
Apr. 30
May 31
June 29
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1930—
Jan. 31
Feb. 28
Mar.31
Apr. 30
May 29
June 30
July 31
Aug. 30
Sept.30
Oct. 31
Nov.30
Dec. 31
1931—
Jan. 31
Feb. 28
Mar.31
Apr. 30
May 29
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov.30
Dec. 31
1932—
Jan. 30
Feb. 29
Mar.31
Apr. 30
May 31
June 30
July 30
Aug. 31
Sept.30
Oct. 31
Demand Loans.
52,516.960,599
2,494,846,264
2,033,483,760
1,969,869,852
1.987.316.403
2.225.453.833
2,282.976.720
2,363.861.382
2,419,206.724
2,289,430,450
2,329,536,550
2,541,682,885
Time Loans.
3966.213,555
1,040,744,057
966.612.407
865,848,657
780.084.111
700,844,512
714,782.807
778.286,686
799.730.286
821.746375
799,625,125
751,178.370
Mal Loans.
53,513,174354
3.536.590.321
3,000,096.167
2,835.718,509
2.767,400.514
2,926.298,345
2.996,759.527
3,142.148,068
3,218.937.010
3,111,176.925
3329,161,675
3,292,860.253
2,328,340,338
2,475398.129
2.504.687,674
2,541,305.897
2,673,993,079
2.756.968,593
2,764.511,040
2,745.570.788
3.107.674.325
3,023,238,874
3.134,027.002
3,480,779.821
810,446.000
780.961,250
785.093.500
799.903.950
783.875,950
811,998.250
877.184,250
928,320,545
896.953.245
922.898,500
957,809,300
952,127,500
3,138,786.338
3.256.459,379
3.289.781.174
3,341.209.847
3.457,860.029
3.568.966.843
3.641,695.290
3,673.891.333
3,914,627.570
3,946,137,374
4.091,836.303
4.432.907,321
3,392,873,281
3,294,378,654
3.580,425.172
3.738.937.599
4,070.359,031
3,741.632,505
3.767.694.495
4,093,889.293
4.689.551.974
5,115,727,534
5.614.388.360
5322,258,724
1.027,479.260
1.028.200,260
1.059,749,000
1,168,845,000
1,203,687.250
1.156.718.982
1,069.653.084
957.548.112
824.047,711
763,993,528
777.255.904
717,481.787
4,420.352.514
4,322.578,914
4,640,174.172
4,907,782.599
5.274.046,281
4,898,351.487
4,837,347,579
5,051,437.405
5.513.639.685
5.879,721,062
6,391,644.264
6,439.740,511
5.982.672,411
5,948,149,410
6,209,998,520
6,203,712,115
6,099,920.475
6,444.459.079
6,870,142,664
7.161,977,972
7.831.991.369
5,238,028,979
3,297,293,032
3,376.420.785
752.491,831
730,396,507
594,458.888
571.218.280
565,217,450
626.762.195
603.651,630
719,641,454
717,392.710
870,795,889
719,305,737
613.089,488
6,735.164.241
6.678,545.917
6,804.457.108
6,774.930,395
6,665.137,925
7.071,221,275
7.173.794.294
7,881,619.426
8,549,383.979
6.108,824,838
4.016.598.769
3,989.510.273
3,528,246,115
3.710,563,352
4.052,161,339
4.362.919,341
3,966,873,034
2,980,284,038
3,021,363.910
2,912.612,666
2,830,259.339
1,980,639,692
1,691,494.226
1.519,400,054
456,521.950
457,025,000
604341.000
700,212,018
780.958,878
747,427.251
668,118,387
686,020,403
651.193.422
569,484,395
470,754,776
374,212,835
3.984.768,065
4,167,588,352
4;656.302,339
5,063.131,359
4.747,831,912
3,727,711,259
3,689.482.297
3,598,633,069
3,481,452.761
2.556,124,087
2,162.249,002
1.893,612,890
1.365.582,515
1,505,251,689
1,629,863.494
1.389,163,124
1,173.508,350
1,102,285,060
1,041.142.201
1.069.280.033
802.153.879
615,515,068
599,919,108
602.329,542
354.762,803
334.504.369
278.947.000
261.965,000
261.175,300
289,039.862
302.950.553
284.787,325
242,254.000
180.753.700
130.232,800
84.830.271
1,720,345,318
1.839.756.058
1,908.810,494
1,651,128.124
1,434,683,650
1,391.324.922
1,344.092.754
1.354,067,350
1.044.407.879
799.268.768
730,151,908
587,159.813
452,706,542
482,043.758
496.577.059
341.003.662
246,937.972
189.343,845
189,754.643
263,516.020
269.793,583
201,817,599
59.311.400
42.620.000
36.526,000
38.013.000
53.459.250
54,230,450
51.845.300
68.183.800
110.008.000
122.884,600
512,017,942
524.663.758
533.103.059
379.015.662
300.397.222
243.574.295
241.599.943
331.699.32e
379.801.583
324,702,199
3074
Financial Chronicle
Panama Ends Pay of Nine Envoys.
A cablegram as follows from Panama Oct. 31 said:
A Presidential decree to-day abolished the pay of Panama's Ministers
to Cuba, Mexico, Colombia, Venezuela, Costa Rica, Ecuador, Chile,
Argentina and Uruguay, effective Dec. 20, leaving the positions honorary,
but retaining a small allowance for expenses. Horacio F. Alfaro, new
Minister to the United States, sailed to-day on the Quirigua for New York.
President Hoover Names Julian L. Schley as Successor
to Brig. Gen. Burgess, Resigned as Governor of
Panama Canal.
President Hoover on Oct. 13 accepted the resignation of
Brig. Gen. Harry Burgess as Governor of the Panama Canal
and appointed Lieut. Col. Julian L. Schley to succeed him.
Associated Press advices from Washington Oct. 13 said:
It was said at the White House that the resignation of General Burgess
will become effective Oct. 20. No reason was given for the resignation,
although it was pointed out that his term would end ordinarily within
a month or two.
The appointment of Colonel Schley, it was said, follows a custom of
many years of advancing the engineering officer of the canal to the Governorship when a vacancy occurs. Colonel Schley now holds the engineering
post there.
At Balboa, C. Z., Lieut. Col. Schley took the oath of
office on Oct. 21 at the regular weekly meeting of heads
of departments. He becomes the sixth Governor of the
Canal Zone. His name goes to the Senate at the next
session for confirmation.
Filipinos Discard Governor's Budget-House Group
Drafts One That Balances at $24,000,000-Japanese
Plea Resented.
Manila advices Oct. 21, to the New York "Times" said:
A sub-committee of the House of Representatives discarded Governor
General Roosevelt's budget to-day and prepared one of its own, balancing
at 48,000,000 pesos [about $24,000,000], provided nothing is asked for
government pensions or public works.
Philippine legislators expressed resentment over a memorial of the Japanese Trading Association protesting against anti-foreign fishing measures.
The Japanese said the islands were entirely dependent for their fish supply
upon the Japanese and,therefore, that they should not hamper the industry.
House leaders retorted that the control of Philippine waters was distinctly
the Philippines' own business and that they would disregard the memorial.
Representative Butler B. Hare of South Carolina, Chairman of the
Insular Affairs Committee, is leaving for the United States to-morrow
aboard the steamship President Hoover. He made his final public appearance in the Philippines this afternoon while visiting Emilio Agulnaldo at
Cavite, where the Representative made an impassioned address to a large
crowd.
He said he had not changed his mind in any particular on the Philippine
situation and that he was ready to urge the terms of his bill. He said that
so far as he was concerned five years was a sufficient period for the Filipinos
to demonstrate their ability to govern themselves.
Banking Institutions in New York Clearing House
Association Adopt Resolution for Furtherance of
"Share the Work" Movement.
A resolution recommending some form of "share the
work," "so that more may be employed, or at least that the
continuance of the size of staff now employed be assured"
was adopted on Nov. 3 by the 21 member banks of the
New York Clearing House Association. The adoption of the
resolution followed an address at the meeting by Walter C.
Teagle, President of the Standard Oil Co. of New Jersey,
outlining the "share-the-work" committee of which Mr.
Teagle is Chairman. The resolution adopted by the Clearing
House Association follows:
NEW YORK CLEARING HOUSE,
77-83 Cedar St.
New York, Nov. 3 1932.
Sir: At a meeting of the Association, held this day at 12 o'clock noon,
the following resolution was unanimously adopted:
Whereas, many former bank employees are now without employment,
and continued unemployment Is a principal obstruction to business improvement.
Therefore. Be it resolved. That as an emergency measure we recommend
some form of "share the work" or other division of work so that more may
be employed or at least that the continuance of the size of staff now employed be assured.
That the particular form of carrying out this recommendation be left
to the individual action and judgment of each institution.
Very truly yours.
GEORGE W. DAVISON,
Chairman, Clearing House Committee.
CLARENCE E. BACON, Manager.
From the New York "Times" of Nov. 4 we quote:
Mortimer N. Buckner. Chairman of the New York Trust Co. and President of the Clearing House Association. in making public the resolution.
explained that there was no general formula that would apply alike to all
Institutions, but that the banks, having unanimously approved the principle involved, would each work out a plan to make effective the carrying
out of the pledge. . . .
The heads of several of the Clearing House banks pointed out that they
were not underwriting the job of any individual in their employ, but that
in effect they were saying to all their employees that they Intend to try
not only to retain all the men and women now working, but to find means
of putting others to work.
In some cases additional employment will necessarily mean reduced
working hours for all, which will in turn mean reduced pay for the in-
Nov. 5 1932
dividual. Other banks said that they were unwilling to make changes in
their pay schedules. Some hope to be able to take on additional employees,
passing the costs on to their stockholders in the form of reduced earnings.
This stand is justified, these bankers say, by the ultimate benefits which
may be expected by all lines of business, including the banking business,
if the "share the work" movement succeeds in materially building up
employment.
Payless Vacations One Means.
Still other banks will seek to find the means of hiring additional help
through the economy of payless vacations. These institutions will give
their employees two weeks or a month of vacation without pay in the
coming year and will use the funds thus saved to hire additional workers to
fill the positions of those on vacations.
Some divergence of opinion was disclosed as to whether the banks are
now over-staffed. One banker remarked that virtually all the banks
of the city were retaining employees for whom they had no need. Others
said that the staffs of the banks had been reduced to a minimum of highly
valuable trained workers.
In any case the bankers agreed that it was important to let the existing
employees know that every effort would be made to safeguard their jobs.
This assurance, it was remarked, should take a load off the minds of the
bank workers, encouraging them to spend more freely and thus add their
share to the rebuilding of confidence and trade.
The annual payroll of the 33,000 employees of the clearing house banks
Is estimated at about 890,000,000.
In meeting the situation created by reduced financial transactions and
diminishing earnings, the New York banks have followed no uniform
course. Some followed the rule of discharging no one, except for cause,
but of not refilling the places of any employees who resigned. Some have
reduced salaries, some have maintained salaries but drastically cut their
staffs, and still others have cut both salaries ands taffs. Cuts have been
greatest among the security affiliates of tho banks rather than in the banks
themselves.
John Blair MacAfee, Jr., Authorized to Transact
Business on Floor of New York Stock Exchange
for Tefft & Co.
Announcement was made on Oct. 27 by the New York
Stock Exchange that the Committee on Admissions has
authorized Mr. John Blair MacAfee, Jr., a member of the
firm of Tefft & Co. and a partner of the Chairman of the
Committee on Quotations and Commissions of the New
York Stock Exchange, to exercise the privilege of transacting business upon the floor of the Exchange for the account
of tho firm of Tefft & Co., under Section 7, Article XII
of the Constitution of the Exchange.
New York Stock Exchange Removes 23 Matured Bond
Issues from List-Other Issues to Remain on List
Pending Further Investigation.
The New York Stock Exchange, in accordance with its
decision of Aug. 31 that it would remove matured bonds
from its list commencing Nov. 1, issued the following
statement on Oct. 27 regarding the removal of 11 issues on
Nov. 1. (The circular, C-4989 of Aug. 31, mentioned
below, was referred to in our issue of Sept. 3, page 1585):
NEW YORK STOCK EXCHANGE.
Committee on Stock List.
IMPORTANT NOTICE.
Oct. 27 1032.
Reference is made to Circular 0-4989 of Aug. 31 1932 in which it
was
stated that commencing on Nov. 1 1932 the Committee on
Stock List will
remove from the list such bonds as, according to the information
in Pos
session of the Exchange, may then have matured, unless in
any particular
case said Committee shall determine that facts exist warranting
the retention of such matured securities on the list.
In accordance with the above ruling the Committee on Stock List intends
to remove from the list, as of the close of business Nov. 1
1932. certain
matured bonds as indicated under Schedule A below. The Committee
on Stock List intends to retain on the list, until further notice, certain
other matured bonds as indicated under Schedule B below, pending further
investigation.
SCHEDULE A.
(natured Bonds to Be Stricken Nov. 1 1932.
[List includes registered as well as bearer bonds, but not certificates of
deposit or stamped series unless specifically stated.]
1. National RR. of Mexico prior lien gold 43-is, duo Oct. 1 1926 (unstamped).
2. Seaboard & Roanoke RR. Co. 1st extended 5s, 1931.
3. Bolivia Ry. Co. 1st mtge. 5s, 1927.
4. Central Foundry Co., 1st mtge sinking fund gold 6s, 1931.
5. Columbus & Ninth Ave. RR. Co. 1st mtge. gold 5s, 1993.
6. Cuban Dominican Sugar Co. 1st lien sinking fund gold 73-ft, 1044.
7. Cuban Dominican Sugar Co. 1st lien sinking fund gold 73
-ft, 1944,
stamped, with stock purchase warrants attached.
8. Lexington Ave. & l'avonia Ferry lilt. Co. let guaranteed 5s, 1993.
9. Sugar Estates of Oriente, Inc., 1st sinking fund gold 7s, 1942.
10. International Match Corp. debenture sinking fund Ss, 1947.
11. International Match Corp. convertible debenture gold 5s, 1941.
SCHEDULE B.
[Matured Bonds to Remain on List Pending Further Investigation.]
1. Abitibi I'ower & Paper Co., Ltd., let mtge. gold bonds, series A,
58, 1953.
2. Ajax Rubber Co., Ise., 1st sinking fund gold 8s, 1936.
3. Camaguey Sugar Co. 1st sinking fund gold 7s, 1942.
4. Cespedes Sugar Co. 1st sinking fund gold 73
-is. 1939.
5. Chicago & Alton Ry. 1st lien gold 3Sig, 1950.
6. Chicago Cty & Connecting Rys, collateral gold 5s, due 1927.
7. Chicago Rye. Co. let mtge. 53, due 1927. stamped as to 20% partial
redemption and payment Aug. 1 1932 interest.
8. Cuban Cane Products Co., Inc.. 20-year 6% gold debentures, 1050.
9. Des Moines & Fort Dodge RR. Co. let guaranteed gold 4s,
10. Eastern Cuba Sugar Corp. 15-year 73.% mtge, sinking fund1935.
gold
bonds, due 1937
11. Fisk Rubber Co. 1st sinking fund gold 8s, 1941.
12. General Theatres Equipment, Inc., convertible gold debenture fis,
1940.
13. Indiana Limestone Co. let sinking fund gold 6s, 1041.
14. Interborough Rapid Transit Corp. secured convertible 7% gold
notes, due Sept. 1 1932.
15. Interborough Rapid Transit Co. 10-year 6% gold notes, due Oct.
1 1932.
Volume 135
Financial Chronicle
10. Iowa Central By. Co. 1st gold 5s, 1938.
17. Minneapolis & St. Louis RR. 0o. 1st consolidated gold 5s, 1934.
18. New York, Chicago & St. Louis RR. Co. 3-year 6% gold notes,
due Oct. 1 1932.
19. New York State Rys. 1st consolidated gold series A, 4s, 1962.
20. New York State Rys. 1st consolidated series B. 634s, 1962.
21. Pan-American Petroleum Co. (of California) 1st convertible sinking
fund gold 6s, 1940.
22. Park Lexington Corp. 18t leasehold sinking fund gold 6;is, 1953.
23. Richfield Oil Co. of California series A collateral trust convertible
gold 6s, 1944.
24. Seaboard Air Line By. Co. 1st gold 4s, 1950.
25. Seaboard Air Line Ry. Co. stamped 1st gold 4s, 1950.
26. Seaboarsj Air Line Ry. Co. refunding gold 4s, 1959.
27. Seaboard-All Florida Ry. 1st guaranteed gold series A 6s, 1935.
28. Seaboard-All Florida By. 1st gold series B 6s. 1935.
29. Warner Sugar Corp. 1st & refunding sinking fund gold series A 7s,
1939.
30. Warner Sugar Corp. 1st & refunding sinking fund gold series A 7s,
1939 (stamped).
31. Wickwire Spencer Steel Co. series A prior lien collateral & refunding
convertible sinking fund gold 7s, 1935.
32. Wickwire Spencer Steel Corp. 1st mtge. sinking fund gold
33. Vertientes Sugar Co. 1st mtge. sinking fund gold 7s, 1942.75, 1935.
ASHBEL GREEN, Secretary.
According to the New York "Times" of Oct. 28, newspapers have been requested by the Exchange to segregate
the 33 matured issues from unmatured bonds in tables of
transactions on the Exchange. The "Times" also said:
The aggregate par value of the matured bonds is several hundred million
dollars. Until recently, the number of matured bonds that remained
on the Exchange's list was negligible, it was said.
With reference to the circular issued Oct. 27, and mentioned above, the Committee on Stock List of the Stock
Exchange, announced on Oct. 28 that it has completed its
investigation of the following issue, appearing upon Schedule
"B" and directs that it be stricken from the list as of the
close of business Nov. 1 1932:
New York Chicago & St. Louis RR. Co.-3-year 6% gold notes, due
Oct. 1 1932.
The Committee on Stock List makes note that it is not
intended to strike from the list certificates of deposit of
this issue.
Additional issues were removed from list on Nov. 4 after
the Committee on Stock List had completed its investigation,
as was noted in the following announcement issued by the
Exchange on Nov. 2:
NEW YORK STOOK EXCHANGE.
Committee on Stock List.
IMPORTANT NOTICE.
Nov. 2 1932.
has come to the attention of the Committee on Stock List that
its
action in striking certain matured bonds from the list has been
used as an
argument to persuade certain holders to dispose of their holdings
for the
purpose of acquiring other securities of sometimes dountful
value. The
Committee therefore wishes to point out again that its policy of
striking
from the list, after full investigation, matured obligations is based
upon the
fact that these securities have lost certain legal attributes of
negotiability,
and not because of any determination as to their intrinsic
value.
k, Referring to Circular C-5025.of Oct.27(mentioned above)
the Committee
on Stock List has completed its investigation of the following
matured bond
issues, and directs that they be stricken from the list as
of the close of
business Nov. 4 1932
Ajax Rubber Co., Inc., 1st sinking fund gold Ss.
1936.
Camaguey Sugar Co.. first sinking fund gold 7s, 1942.
Des Moines & Fort Dodge RR.Co., 1st gtcl. gold 5s,
1935.
Indiana Limestone Co., 1st sinking fund gold 6s.
1941.
Minneapolis & St. Louis RR. Co., 1st cons.
gold 5s. 1934.
New York State Rys., 1st cons, gold series A 430,
1962.
New York State Rye. 1st cons. series B 6 Ms, 1962.
Park Lexington Corp., 1st leasehold sinking fund
gold 6Hs, 1953.
Seaboard-All Florida By., 1st gt. gold series A
6s, 1935.
Seaboard-All Florida By. 1st gold series B
6s. 1935.
Vertientes Sugar Co. 1st mtge. sinking fund
gold 7s, 1942.
(The foregoing list includes registered as well as
bearer bonds, but not,
certificates of deposit.)
II It
h.
ASHBEL GREEN. Secretary
Michigan
Securities Commission Reinstates
License of
Halsey, Stuart & Co.-South Dakota
Securities
Commission Also Lifts Suspension of
Firm's License
to Sell Securities in that State.
The Chicago office of Halsey, Stuart & Co. on Oct. 29
issued the following:
y Lansing, Mich., Oct. 29.-The Michigan Securities Commission
this
morning (Oct. 29) lifted the suspension of Halsey, Stuart & Co. and
removed the citation. This gives the investment house full right to again
sell securities in Michigan.
A press dispatch from Chicago to the New York "Times"
under date of Oct. 28 stated that Halsey, Stuart & Co. had
that day issued the following notice, dated at Pierre, S. D.:
The Securities Commission of South Dakota after a hearing to-day
(Oct. 28) reinstated Halsey, Stuart & Co.'s license to sell securities in the
State of South Dakota. The order became effective immediately. The
hearing was originally scheduled for Nov. 16, but at Halsey, Stuart & Co.'s
request was advanced to to-day.
Twelve-day Holiday Proclaimed for Nevada Banks by
Executive Order-$2,000,000 Loan Sought From
Reconstruction Finance Corporation-First National Bank of Reno Only Bank in That City to
Remain Open.
From Reno, Nev., advices on Nov. 1 by the Association
Press, it is learned that reorganization of the 121banking
3075
institutions in, Nevada controlled by the George Wingfield
interests was under way on that day as banks throughout
the State took advantage of a 12-day holiday proclaimed by
executive order. We quote further from the dispatch as
follows:
In Washington, after a flight there by airplane, Governor Fred
Balzer
sought a loan of $2,000,000 from the Reconstruction Finance
Corporation,
while officials here worked to protect the interests of depositors.
The legal
cessation of business was ordered last night. Oct. 31, by Acting
Governor
Morley Griswold after an extended conference with State and banking
executives.
The First National Bank of Reno was the only bank here not to
observe
the holiday. A "run" by depositors threatened for a time this morning,
but
withdrawals had subsided at noon and there were reports that
several deposits had been received. Strengthened by the arrival from San
Francisco
of a $1,500,000 money shipment, the First National, a non-Wingfield
institution, was "well prepared," its directors announced, to meet
any emergency.
.All of the 12 Wingfield banks, located in nine cities and carrying deposits
of approximately $15.000,000. were closed to-day, as were several
of the
14 other banks in the State. Among the banks that did not close were
two at Las Vegas, center of the Hoover Dam power and irrigation project
activities, and two at Ely,lathe heart of Nevada's copper mining industry.
Inability of livestock men, hard hit by the depression and drought during
the last three years, to meet their obligations was in large part responsible
for the decision to declare the holiday. Conditions in the livestock
industry
are such, Governor Balzer told President Hoover in Washington to-day,
that "It may be necessary to carry some of our citizens over until next
spring."
The Governor, who prepared to return to Nevada to-night, said he informed the President that the Reconstruction Finance Corp. had directed
an investigation of his request for a loan of $2,000,000.
Regarding the situation in Reno a dispatch Nov. 1 from
that city to the New York "Journal of Commerce" had the
following to say:
Twelve banks with deposits exceeding $17.000.000 were closed to-day
under a two weeks banking holiday proclaimed by Lieut.-Gov. Morley
Griswold. Altogether there were 25 functioning banks In the State;
13
of them remain open.
The necessity for a banking holiday, it is held, ultimately was caused by
price conditions rather than to any special banking condition. The drop
in prices for live stock over a long period leaving the banks with loans based
on a higher price level, created weakness. Some of the loans, for instance,
are based on as much as $8 a head on stock which to-day will bring no more
than 82.50.
In the meantime Gov. Fred. Balzer is in Washington seeking aid for the
banks here. It is said here that he will ask upward of $2,000.000. Gov.
13alzar left Nevada some time ago; it was reported that the bank holiday
was proclaimed on wired instructions from him.
The 13 banks which remain open simply decided not to take advantage
of the moratorium. It is possible that they hope thereby to gain business
now held by the closed banks.
The moratorium will create severe difficulties for business men. Much
business is already carried on with currency, but for larger concerns
the
need for available bank cash is obvious. It is probable that for
wellknown concerns whose funds are temporarily tied up. business will be carried
on through use of open book credits. There is some talk among merchants
of forming their own informal clearing organization with the
purpose of
clearing their own debts while the banks are closed. How far this will go
is not yet known. A sidewalk brokerage business in the notes of business
firms may result from the holiday.
The statement of the Lieut.-Governor explained the difficulties which
forced the closing of the banks. Pointing out the close relations of
banking
and agricultural conditions, he declared:
"Banks holding as security depredated farm lands and live stock have
been obliged to advance additional loans largely for labor, seed and taxes.
"Agriculture being our chief source of income, all other business in the
State is, of course, seriously affected by these same conditions.
"The situation has at last been reached where the conditions can no
longer be met by ordinary banking methods without reorganization. It
has become necessary to call upon the public to understand the problem and
to unite in an effort to solve it."
Mark C. Steinberg & Co., St. Louis, Failure-Receivership Terminated at Request of Company
in Order that Bankruptcy Court May Proceed
With Hearing on Firm's Composition Offer.
On Monday of this week, Oct. 31, the receivership of
Mar. C. Steinberg & Co., the St. Louis brokerage house
which was suspended for insolvency by the New York
Stock Exchange on April 29 of the present year, was terminated in the Circuit Court at St. Louis at the request of
the company in order that the bankruptcy court might
proceed with a hearing on the firm's offer to settle with
general creditors for 20% in cash and 80% in promissory
notes. The final report of the receivers, Thomas N. Dysart
and Mark C. Steinberg, listing assets of $1,340,300, was
approved by Judge Hall of the Circuit Court, and he ordered
them discharged. The St. Louis "Globe-Democrat" of
Nov. 1, from whose account of the matter the foregoing is
learned, went on to say:
The report lists among the assets Dalances due from customers April
28, the day of the receivership, the sum of $1.095,558. This indebtedness is only partly secured. Listed, but not included among assets, Is
a total of $1,135.959 due from customers and brokers. This is not included among the assets, the report states, because the indebtedness is
offset by securities long carried in the accounts of the customers and brokers
and not collectible unless delivered.
StockTmemberships are given a book value of $169,662 and
balances
due from New York correspondents total $19.928. The stock membership total is subject to a claim of Steinberg for the New York Stock Exchange
seat appraised at $125,000.
Is. The total value of assets taken over by the receivers was $1,476,969.97.
Of this amount, $130,639 was disbursed by the receivers. The sum of
3076
Financial Chronicle
Nov. 5 1932
310,000 was paid to Dysart as receiver, and $10,000 wont to Milton H.
Tucker and Seneca C. Taylor, attorneys for the receivers. Steinberg
did not request a fee.
The assets will be turned over to Dysart as custodian under appointbeen
ment of Federal Judge Davis. The firm's settlement offer has
accepted by a majority of creditors whose claims have been filed and
aggregating
claims
with
allowed. It is opposed as unfair by 27 creditors
total
339.000. It has been estimated claims of general creditors will
between $800,000 and 31,000.000.
seof
Judge Hall yesterday (Oct. 31) dismissed 46 claims for delivery
curities pending before him which can be filed in the bankruptcy court.
The report of the receivers stated that 52 customers, who had been adjudged
them.
owners of securities in the hands of the company, had failed to call for
dered profitable the expansion of operations in mines already producing
and also the reopening of some abandoned properties. Many of the improvements have increased the capacity of mines and, in South Africa especially,
the progressive abundance of cheap labor has made it possible to utilize
this capacity to a constantly increasing extent. The growth of production
in Canada, although stimulated greatly by lower costs, has been due largely
to the discovery of new deposits. Gold mining in Canada has also been
rendered more profitable since September 1931 by the increase in the
Canadian price of gold which has accompanied the decline of the Canadian
dollar in relation to gold currencies. During this period, furthermore, gold
mining in South Africa, on account of the close connection of the industry
with the British market, has been under a similar influence arising from
the depreciation of the English pound.
The failure of Mark C. Steinberg & Co. was noted in our
issue of April 30 1932, page 2910, and our last previous
reference to its affairs appeared in the "Chronicle" of
Oct. 29, page 2910.
Industrial Consumption of Gold.
The increased output of gold from the mines during recent years has
been accompanied by a decrease, especially in the last two or three years,
in the amount of new gold absorbed in industry and the arts and thus
rendered unavailable for monetary purposes. There have been times within
the last 20 years when the net industrial consumption of gold, according to
accepted estimates, has exceeded $100,000,000 per year, but it has remained
below that figure since 1921 and averaged about $70,000,000 to $80,000,000
during the period 1924-1929. In 1930 the net industrial consumption
decreased to about $50,000,000, and in 1931 it was certainly much leas
than this when allowance is made for the increased amount of old gold
that was sold to dealers in bullion in Great Britain, Australia, and elsewhere,
after the departure of a number of countries from the gold standard gave
rise to a premium on gold in their local currencies.
Federal Reserve Board on Gold Holdings of Central
Banks and Governments—Increase of $350,000,000
in Third Quarter of Year—World Gold Production
for 1932 Estimated at $460,000,000.
Figures of gold holdings of central banks and world gold
production are presented in the October "Bulletin" of the
Federal Reserve Board. It is stated therein that "figures
available for the first seven months of 1932 indicate for the
year as a whole a production of not less than $460,000,000."
The Board's discussion of the subject follows:
Gold Holdings of Central Banks and Governments, 1913-1932.
leading
Total gold holdings of the central banks and governments of
some
countries increased during the third quarter of the current year, after
at a
were
reduction in the second quarter, and at the end of September
preliminary
to
according
quarter,
new high level. The increase during the
new gold profigures, amounted to about $350,000,000, reflecting in part
in European
duction, in part the return of gold from private holdings
in India.
countries, and in part a continued flow from private holdings
quarter was $120,The estimated amount of new gold produced during the
end of
the
since
sources
000,000, indicating that gold coming from other
is accounted
June has been about $230,000,000, of which about $40,000,000
to the bullion
for by the movement of gold from private holdings in India
The other
market and thence into the holdings of the central institutions.
by these
$190,000,000 indicates the approximate amount of gold gained
elseholdings
undisclosed
or
institutions during the quarter from private
of gold
where, including the holdings of commercial banks. This release
with develin occidental countries during the third quarter is in contrast
at about
opments in the second quarter, when an amount of gold estimated
countries,
these
$300,000,000 went into private or undisclosed holdings in
half
other
the
and
hoards
Indian
about half of it from new production and
from central reserves. The growth of private holdings in the second quarter,
partly at the expense of central reserves, came at a time of renewed financial
disturbance, when gold was being withdrawn in large volume from the
United States by European holders of short-term funds in the American
market. In the third quarter, however, which was characterized by improvement in international financial conditions and a renewed movement Of gold
hands
to the United States, the holdings of gold recently built up in private
in Western countries have again begun to find their way into the reserves
of the central institutions.
Central Gold Holdings, 1913-1932.
has been
While the growth of central holdings during recent months
rapid rate for a
exceptionally large, these holdings have been growing at a
chart (this
considerable number of years. This fact is brought out by the
holdings of central
we omit.—Ed.1, which shows the course of total gold
the war,
of
outbreak
banks and governments from 1913, just before the
annual basis through
to the end of September 1932. The chart is on an
the compilation of
1927, and on a monthly basis since June 1928, when
current publication
satisfactory monthly figures was made possible by the
central gold holdings
of the total gold holdings of the Bank of France. The
throughout the period—
of all countries combined have been increasing
1932—and in almost
except in 1918-1919 and for a few months in 1931 and
substantial. For the whole
every year since 1919 the increase has been
increase has approxiperiod from December 1913 to September 1932 the
the end of 1919
mated $6,800,000,000, or 140%, and for the period since
it has approximated $4,880,000,000, or 72%.
to 1919,
An important factor of growth in central gold reserves prior
from time
and to a smaller extent since that time, has been the movement
before the
to time into central reserves of gold that was in circulation
factors,
war, including gold held by commercial banks. More persistent
have been
other,
the
operating with substantial continuity in one direction or
in
the course of gold production, changes in the amount of gold consumed
industry and the arts, and the movement of gold into and out of the private
holdings of the people of India.
Gold Production.
World production of gold, the principal factor of growth in central gold
1929 has
reserves, has been increasing since 1922, and the increase since
period
been at an accelerated rate. The accompanying chart shows for the
and
since 1910 the course of gold production in the world as a whole
1910separately in the three largest contributing countries. In the period
per
$450,000,000
1915 the amount of gold produced averaged more than
until 1922.
year, but substantial declines in output occurred thereafter
in the
when $320,000,000 of gold was mined, $150,000,000 less than
record year 1915. In 1923 and 1924, however, production increased rapidly,
of production
and further increases in 1925 and 1926 brought the volume
1927-1929. Since
to $400,000,000, where it remained during the period
about 3420.to
rapidly,
that time production has again been increasing
for the
000,000 in 1930 and $440,000,000 in 1931. Figures available
a production
first seven months of 1932 indicate for the year as a whole
of not less than $460,000,000.
production
The chart also brings out the fact that the growth in world
to increasing output in South
of gold since 1922 has been due in general
has shown little
Africa and Canada, while production in the United Statea
however, has reflected
change from year to year. The increase since 1929,
the United States as well as pronounced
a slight increase in production in
increases in Canada and South Africa.
especially since
Declining costs of gold production during recent years,
have been an important element in the growth
the onset of the depression,
operating costs have resulted from improvements
in output. Reductions in
and metallurgical technique, which have renfrom rear to year in mining
India.
which is usually an importer of gold on a considerable scale, has
been exporting gold since the middle of 1931, all of which has come from
the private holdings of the people of India. Comparison of the exports
with domestic gold production and changes in the amount of gold held in
government reserves in India indicates that the people of India have been
releasing gold from their private holdings since February 1931, and that
from that time to the end of August 1932 the total amount so released has
approximated $250,000,000. For several months before that time, private
holdings had been showing little increase. Addition to the world's stock
of monetary gold from the private hoards of the Indian people has been
contrary to previous experience and to the general view that when gold
goes to India it is permanently lost to the gold reserves of the commercial world.
Changes since 1914 in private gold holdings in India are shown on the
chart, which is based on annual figures through 1929 and on monthly figures
thereafter. It brings out the fact that the recent decline in these holdings
is in sharp contrast with developments in preceding years. Prior to 1931
gold was released from private holdings only in 1919 and 1921, and then
in much smaller volume than in 1931 and 1932.
The recent release of gold by the Indian people reflected at first the
use of their savings under the stress of severe depression, and for some
months the gold released from private holdings was taken into government
reserves in India. But in September 1931, when India followed England
in the suspension of the gold standard, it became profitable to dispose of
the gold on the London bullion market, where a premium could be obtained
equivalent to the discount of the rupee in relation to gold currencies. This
premium, amounting at times since then to as much as 80%, not only led
to exportation of the metal from India but greatly intensified the release
from private holdings.
This survey of the gold reserves of the world indicates that during the
period of depression economic forces have been at work to increase the supply
of monetary gold more rapidly than at many other times. Increased production, due in part to improved technique, but also to reduced costs of
materials and to the increase in the price of gold in terms of depreciated
currencies, has carried the annual output close to the highest figures on record
reached in the years immediately prior to the war. Releases of gold from
Indian hoards and recently also from private holdings in Western countries
have also increased the supply of gold available for reserves, while industrial
consumption has fallen to a low figure. As a consequence there has been
since 1929 a somewhat accelerated increase in central gold holdings.
retarded temporarily by withdrawals during the periods of financial die
turbance in 1931 and in 1932, but resumed at a more rapid rate since th,
restoration of confidence in the middle of last summer.
Offering of $75,000,000 or Thereabouts of 91-Day
Treasury Bills.
A new issue of 91-day Treasury bills to the amount of
$75,000,000 or thereabouts was announced on Nov. 1 by
Secretary of the Treasury Mills. The new bills will replaco
an issue of $75,200,000 which matures on Nov. 9. Tenders
for the new bills were received at the Federal Reserve banks
and their branches up to 2 p. m.(Eastern Standard Time)
yesterday (Friday), Nov. 4. The bills will be dated Nov.9
1932 and will mature on Feb. 8 1933, and on the maturity
date the face amount will be payable without interest.
They will be issued in bearer form only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000 and
$1,000,000 (maturity value). The bills are sold on a
discount basis to the highest bidders. Secretary Mills'
announcement of the offering also says in part:
No tender for an amount iORS than 31.000 will be considered.
Each
tender must be in multiples of 31.000. The price offered must be ex100,
of
with
not
basis
more
the
than three decimal place'', e.g..
pressed on
99.125. Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in Investment securities. Tenders from others must be accompanied by a
deposit of 10% of the face amount of Treasury bills applied for, unless
the tenders are accompanied by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on Nov. .1
1932 all tenders received at the Federal Reserve banks or branches thereof
up to the closing hour will be opened and public announcement of the
acceptable prices will follow as soon as possible thereafter, probably on
the following morning. The Secretary of the Treasury expressly reserves
the right to reject any or all tenders or parts of tenders, and to allot less
than the amount applied for, and his action in any such respect shall be
final. Those submitting tenders will be advised of the acceptance or
Volume 135
Financial Chronicle
rejection thereof. Payment at the price offered for Treasury bills
allotted
must be made at the Federal Reserve banks in cash or other
immediately
available funds on Nov. 9 1932.
The Treasury bills will be exempt, as to principal and interest
, and
any gain from the sale or other disposition thereof will also be
exempt,
from all taxation, except estate and inheritance taxes. No
loss from
the sale or other disposition of the Treasury bills shall be allowed
as a
deduction, or otherwise recognized, for the purposes of
any tax now or
hereafter imposed by the United States or any of its possess
ions.
On Nov. 4 it was announced that the tenders had aggregated $229,939,000. The highest bid made was 99.962, equivalent to an interest rate of about 0.15% on an annual basis.
The lowest bid accepted was 99.941, equivalent to an intere
st
rate of about 0.23% on an annual basis. Only part of the
amount bid for at the latter price was accepted. The
total
amount of bids accepted was $75,056,000, the average
price
of bills to be issued being 99.945, which represents a
rite
of about 0.22%.
Heavy Oversubscription of November
Financing for
Federal Intermediate Credit Banks
Consisting of
About $6,000,000 2 2% Debentures,
The November financing for the Federal
Credit banks consisting of a new issue of Intermediate
$5,000,000 of 23/% collateral trust debent approximately
ures to be dated
Nov. 15 1932 and maturing in one year, offere
d on Nov. 1,
has been more than five times oversubscribed,
it is announced
by Charles R. Dunn, fiscal agent. In Octob
er the banks
offered $9,100,000 of the 23/2% debentures.
During the
first 10 months of this year sales of these
debentures have
aggregated approximately $185,660,000
, with rates varying
from 5% in January and Febru
ary down to 23/%, the rate
which has prevailed during the past
four month
the lowest on the banks' debentures since their s and is
establishment in 1923. This rate, it is noted, has
been made possible
by the amendment in May of the Federa
l Reserve Act
which makes the debentures eligibl
e collateral for 15-day
loans by member banks of the
Federal Reserve System.
After the maturities of Nov. 15 there
$66,000,000 of debentures outsta will be approximately
nding, representing the
entire indebtedness of the banks
, compared with $86,965,000
on June 30.
The consolidated statement of the
12 Federal Intermediate
Credit banks as of June 30 shows total
assets of $153,686,055,
compared with $151,659,767
on
discounts on June 30 amounted March 31. Loans and
to $114,235,876 and cash
was $4,597,950. Capital
stock, surplus, reserves and
undivided profits were $63,96
2,712. The debentures are
exempt from all Federal, State,
munici
The entire capital of the 12 Credit pal and local taxes.
banks was subscribed
for by the United States
Treasury. The object of the
Intermediate Credit banks is
to aid the co-operative marketing organizations of farme
rs through secured loans.
The October offering was noted
in our issue of Oct. 8, page
2418.
Report on School Savings Syste
m Indic
First Time Since Its Developmen ates that for
t Withdrawals
Exceeded Deposits.
A nation-wide demonstration of
the power of school
savings to aid families of small means
in distress from the
depression is presented in the annual
report on school savings
systems issued in New York on
Oct. 18 by the Savings
Division of the American Bankers
Association, denoting that
during the year ended June 30 1932
almost $3,000,000 accumulated in previous years was withd
rawn from this type of
"rainy day" deposits to meet pressing
needs. The report
brings out the attitude of bankers towar
d school savings by
quoting the officer of a bank with $300,
000 in 31,000 chilren's accounts as saying:
-The vast good school savings
banking has done
children habits of thrift is too obvious
for comment.
to impress on our
School saving must
go on. During the last three years—certainly
the
most trying in our
history—school savings have met the
test and they will continue to
do so.
They have helped to pay rent, buy food, clothin
g
and
medicine; and I
learned of a case where savings of this kind
kept the schools open throug
purchas
h
of
e
tax anticipation warrants.
the
Our major business enterprises have learned that a financial reserve is
necessa
ry
for
uninterrupted
progress. When our average citizen does
the same, business in Americ
a
will be on a much sounder footing. Our only hope
for changing conditions
is through financial education and
this must be provided by the
public
school system. The 31.000 contacts our bank had
with juvenile depositors
cost about 91,500 per year beyond the amount earned on
these deposits—
yet this hank would not abandon school savings under any
circumstances to
save the relatively small loss in operating it."
Giving a detailed report of the school savings
movem
W. Espey Albig, in charge of the Savings Division ent,
of the
Association, says in the report that 19311932 is the first
3077
time since the development of school savings
on a nationwide scale the withdrawals exceeded deposits.
Mr. Albig
says:
Year after year since the inauguration of school
savings the balance of
deposits over withdrawals in banks increased
until June 30 1929, when the
net savings for that year reached a peak of more
than $10.500,000. Then
began the business and industrial depression which
covered the whole world.
In 1930 the net savings were about $3,000,
000 less than in the preceding
year, although the gross deposits were
greater than the previous year.
The spreading of unemployment had its influen
ce in school savings. As of
June 30 1931, net savings had declined to
$2,100,000. For the present
year, June 30 1932. the gross deposits were
917.680,000. a decrease from
the preceding year of $9,000.000, a sum colossal
in itself. The withdrawals
not only exceeded the deposits but took from the
banks almost $3,000,000
In school savings deposited in previous years.
The number of schools offering school savings
was 12.686, and the participants were 3,106.510. There were
1,942Si fewer schools than last
year and 1,376,124 fewer children participating.
The number of schools
offering school savings decreased 13%. the
number of children depositing
decreased 32%, and the amount of deposits decreas
ed 34%. The decrease
in the number of schools and the consequent lessene
d number of depositors
are in part at least due to the lack of depositary
banks.
From districts all over the country came statements
of the
usc of scho l savings for medicine,food, eyeglasses, clothi
ng,
surgical operations, rent, interest on loans and mortg
ages,
taxes, insurance, sustenance, the support of invalids,
and of
the aged, and "for that nerve wracking time when the famil
y
breadwinner is ill or, through no fault of his
own,
employment," Mr. Albig says: "The advocates out of
of thrift
reaching and money management in the public
schools never
visualized a condition which would so thoroughly
test their
theories as that existing at the present time," he contin
ues.
"In thousands of families school savings have provid
ed a
reserve fund which fends off the evil day when
public aid
would become imperative."
Since to most depositary banks school savings consti
tute a
loss there is danger in the present condition that "the oppor
tunity afforded children for school savings may be
curtailed,"
the report brings out. In normal times when banks are
able
to make adequate earnings the "relatively slight loss occasioned by school savings is easily absorbed by other activi
ties,"
Mr. Albig says, but now that earnings are off and budge
ts
are rigorously trimmed, school savings have been compe
lled
to meet the keenest scrutiny. He adds:
In view of the smaller number of banks and the gauntle
t school savings
run in the matter of depositary expenses it is
surprising the decrease in
schools having school savings has not been greater
. Some districts formerly
not affording opportunity for school savings introduce ischool
savings during
the year. School savings has reached its hardest test
during the year
ust past.
Armistice Day Proclamation of President Hoov
er—
Observance Asked on Nov. 11 in Schools, Churc
hes
and Other Suitable Places.
Observance of Armistice Day, Nov. 11, marking
the
cessation of the World War, is asked by President Hoove
r in
a proclamation issued Nov. 3. The President calls upon the
people of the nation "to observe the day in schools and
churches and other suitable places, with appropriate
ceremonies, giving expression to our gratitude for peace and
the
hope and desire that our friendly relations with other
peoples
may continue." The proclamation follows:
ARMISTICE DAY-1932
By the President of the United States of Americ
a.
A Preclamation
Whereas, the 11th of November, 1918, marked
the cessation of the most
destructive, sanguinary and far-reaching war in human
annals; and
Whereas, it is fitting that the recurring anniver
sary of this day should be
commemorated by exercises which shall recall
the high purposes for which
this nation entered the World War, the devotion
and sacrifice of those who
gave service to our country in its peril, and the
memory of those who died
to bring peace, and which likewise shall recall the
those dead that we shall apply ourselves to measur nation's noligation to
es which shall contribute
to prevent repetition of such devastations of
humanity; and
Whereas, by concurrent resolution of the Senate
and the House of Repre
sentativea. In 1926, the President was requested
to issue a proclamation for
the observance of Armistice Day:
Now, therefore, I Herbert Hoover. President
of the United States of
America, in pursuance of the said concurrent
that the flag of the United States be displayed resolution, do hereby order
on all government buildings
on November 11, 1932, and do invite the
people of the United States to
observe the day in schools and churches and
other suitable places, with
appropriate ceremonies, gibing expression
to our gratitude for peace and
the hope and desire that our friendly relatio
ns with other peoples may
continue.
In witness whereof, I have hereunto set my
hand and caused the seal of
the United States to be affixed.
Done at the thy of Washington this third day
of November. In the year
of Our Lord nineteen hundred and thirty-two,
and of the independence of
the United States of America the one hundred
and fifty-seventh.
HERBERT HOOVER
By the President:
HENRY L. STINISON.
Secretary of State.
3078
Financial Chronicle
President Hoover in Indianapolis Speech Disputes
Statements of Governor Roosevelt, Democratic
Candidate for President,—Says Governor Misrepresents Facts Regarding Move by President to
Combat Depression—Holds Governor "Shuffles"
on Tariff—Refutes Charge of Domination of
Supreme Court by Republicans—Assertions as to
Foreign Loans.
A speech in which he undertook to disprove various
statements of the Democratic nominee for President, Gov'
Franklin D. Roosevelt of New York, was delivered on
Oct. 28 at Indianapolis by President Hoover. In his speech
the President quoted Gov. Roosevelt on Oct. 25 as saying:
all
"The crash came in October 1929. The President had at his disposal
December 31
the instrumentalities of the Government. From that day to
he do
he did absolutely nothing to remedy the situation. Not only did
nothing, but he took the position that Congress could do nothing."
Answering this, the President said:
It
That period constitutes over the first two years of the depression.
seems almost incredible that a man, a candidate for the Presidency of the
front
The
truth.
the
of
violation
United States, would broadcast such a
of those two
pages of every newspaper in the United States for the whole
you of
years proclaimed the untruth of such statements. I need remind
what I say.
but a few of the acts of the Administration to demonstrate
The President in declaring that Governor Roosevelt has
shifted his position on the tariff stated in part:
The Democratic candidate from the day of his nomination iterates and
unreiterates that he proposes to reduce the tariff. He states it was an
warranted increase of the tariff.
Unquestionably my exposition has given their candidate great anxiety,
he
because on the 25th of this month, just 21 days after my statement,
announced another new deal. I call this a new shuffle. He now announces
tariffs
reduce
to
propose
not
does
he
within two weeks of the election that
on farm products.
As to foreign loans, President Hoover made the following
comment:
he now considers
It is obvious, from the Governor's many speeches, that
of foreign
the
selling
that all foreign loans are wrong. He seems to consider
One
bonds in our country to be wicked and the cause of our calamities.
been
engaged in the
never
have
I
that
is
interesting part of all this tirade
selling of foreign bonds or foreign loans. The Governor has the advantage
of me in experience in that particular.
As late as 1928 the Governor was engaged in that business for profit
Chairand actively occupied in promoting such loans. At that time he was
man of the organization committee of the Federal International Banking
Co., a corporation organized for the selling of foreign securities and bonds
to the American people.
I have no reason to believe that the Governor's enterprise on this occasion was not perfectly proper and soundly founded. I do not wish to convey
that impression. But the Governor, as a private promoter for profit,
during the boom of 1928, believed and practiced what the Governor, as
Presidential candidate, now denounces as immoral and a cause of our
calamities
A statement by Governor Roosevelt as to control of the
U. S. Supreme Court by the Republican party was also
taken up for answer by the President, as to which he said:
In Governor Roosevelt's address, delivered on Oct. 25. he stated:
in complete control of
"After March 4 1929 the Republican party was and
House and. I may
all branches of the Government—executive. Senate
add for good measure. the Supreme Court as well."
I invite your attention to that statement about the Supreme Court.
There are many things revealed by the campaign of our opponents which
should give American citizens concern about the future. One of the gravest
is the state of mind revealed by my opponent in that statement. He implies
that it is the function of the party in power to control the Supreme Court.
For generations Republican and Democratic Presidents, alike, have made
of
it their most sacred duty to respect and maintain the independence
America's greatest tribunal. President Taft appointed a Democrat as
Chief Justice; President Harding nominated a Democratic Justice; my last
appointment was a Democrat from New York State, whose appointment
was applauded by Republicans and Democrats, alike, the nation over.
All appointees to the Supreme Court have been chosen solely on the basis
of character and mental power. Not since the Civil War have the members
of the Court divided on political lines."
President Hoover's Indianapolis speech, as given in Associated Press accounts, follows in full:
My fellow-citizens, my friends in Indianapolis, and may I also include
Senator Watson, for I wish to add that he must be your next Senator and
we require his services in Washington.
My major purpose to-night is to discuss those long-view policies by which
we not only cement recovery but also by which we secure over the years
the enlarged comfort and the steady progress of the American people.
I propose to contrast them with the ideas which have been developed by
the Democratic House of Representatives, the Democratic platform and the
Democratic candidate in the course of this campaign.
When I refer to the views of these groups I say at once that I do not
refer to all members of the Democratic party. Many of them, as in 1896
and 1928, have signified their intention to support us against these notions.
I also Pay tribute to those Democratic members of Congress who have
supported the unprecedented measures for combatting the depression.
I again reiterate the statement made recently at Detroit, that the most
important issue before the American people right now is to overcome this
crisis; that we may secure restoration of the normal Jobs of our unemployed,
recovery to our agricultural prices and to business, that we may extend generous help in the meantime to tide our people over until the fundamental
restoration is accomplished.
I pointed out there that the battle has now changed from successful
defense of our country from disaster and chaos to forward-marching attack
a score of instrumentalities and weapons toward
on a hundred fronts through
recovery.
Since that time I have further positive evidence showing that the measures
are driving the forces of this depression into
and policies we have set up
rapidity.
further retreat with constantly increasing
change in the strategy of this battle, if there shall
If there shall be no
hesitation, we shall have the restoration of men and
be no delay and no
Nov. 5 1932
women to their normal jobs and to lift agriculture from its anxieties and
losses.
Before I begin the major discussion of the evening I shall take a moment
of your time to revert to these methods and policies for protection and
recovery from this depression in the light of certain recent misstatements
of the Democratic candidate in respect to them.
I presume the Governor of New York will announce that I am acting
upon the defensive if I shall expose the self-interested inexactitude which he
is broadcasting to the American people. I am equally prepared to defend,
attack or expound.
I shall not be deterred from my purpose to lay before the people the
truth as to the issues they confront; I shall do it in the sense of responsibility
of one who has carried and must continue to carry these issues into action.
The Governor of New York in a speech on Oct. 25 stated:
"The crash came in October. 1929. The President had at his disposal
all the instrumentalities of the government. From that day to.Dec.311931.
he did absolutely nothing to remedy the situation. Not only did he do
nothing, but he took the position that Congress could do nothing."
That period constitutes over the first two years of the depression. It
seems almost incredible that a man, a candidate for the Presidency of the
United States, would broadcast such a violation of the truth.
The front pages of every newspaper in the United States for the whole
of those two years proclaimed the untruth of such statements.
I need remind you of but a few of the acts of the administration to demonstrate what I say.
The Governor dismisses the agreements brought about between leaders
of industry and labor under my assistance leas than a month after the crash,
by which wages of literally millions of men and women were, for the first
time in 15 depressions of a century. held without reduction until after profits
had ceased and the cost of living had decreased.
Above all, he dismisses the healing effect of these agreements by which
the country has been kept from industrial strife and class conflicts.
He would suppress from the American people knowledge of the undertaking brought about within two months after the crash among the industries
to divide existing work in such fashion as to give to millions of families some
measure of income instead of discharging a large portion of them into
destitution as had always been the case in previous depressions and was the
case in other countries. He ignores the fact that they have held to these
practices to this day, for the staggering of employment.
Appealed to Gov. Roosevelt for Co-operation Within Month After Crash.
If the Governor will look tti) his own files of official correspondence he
will find that within a month after the crash I appealed to him for cooperation in creating employment and stabilizing wages, in which I sot out
to him the gravity of the situation and urged that he should present the
great need to all cities and counties.
atIfhetismys
a e. nothing was done, then he violates the promise he wrote me
the
Nevertheless the other States and municipalities entered into the general
definite organized campaign to increase construction work in relief to unemployment during the Winters of 1930 and 1931. Not only Federal but
State. municipal and private agencies were mobilized to this end. By this,
which the Governor seems to have forgotten, I succeeded in reversing the
the usual process of decreasing construction work in time of dep
wrhessionoleof.
This type of work was increased during the first year of the depression
by over $800,000,000 above normal, thus giving a living to thousands of
families who otherwise would have been destitute.
The Governor would suppress the fact of the mobilization of the American
people under my leadership for the Winters of 1930 and 1931 of private
charity and public support to relief of distress in every town, village and
hamlet of the United States through which we carried them over those
Winters without serious suffering or loss, as is proved by the public health
statistics of to-day.
The Governor cannot,be ignorant of the recommendations I made to the
Congress within a month after the crash, and again in the session a year
later, for the great increase of Federal public works in aid to employment.
and he cannot be ignorant of the appropriation made to care for the farmers
der my leadership for
stricken by drought, or the public funds raised under
those
most
a
patent
fact
in the history of this
ignores
The Governor entirely
depression—that under the wise policies pursued, recovery of the United
States from this first phase of the depression—that is, collapse from our
own speculation and boom—began about a year after the crash, and continued definitely and positively until April, 1931, when the general world
crash took place, which was not of our doing.
The Governor is probably entirely ignorant of the international measures
taken to limit extension of this prairie fire under my leadership.
He ignores the German moratorium and standstill agreements in June.
1931, which not only saved Germany from complete collapse but prevented
mum more extended distress in the United States.
He neglects the creation, after the collapse in England, of the National
Credit Corporation, with a capital of $500,000.000 in co-operation with
American banks, which saved over 700 institutions involving deposits of
Upward of ten millions of our people and that was doing something.
The Governor entirely misrepresents the fact that the plan to meet this
crisis which swept upon us from Europe was proposed by me to political
leaders of the United States at a White House conference on Dec. 61931.
further elaborated in a message to the Congress on Dec. 8, and was not the
creation of Democratic leaders at the end of December as he would imply.
Although the Democratic leaders produced no plan until they began their
destructive program a few months later, not one of which acts he has disavowed, he ignores the fact that the unprecedented measures proposed and
carried through by the Administration would have put us on the road to
recovery eight months ago instead of having to await the adjournment of
the Democratic House of Representatives.
And again the Governor, despite every proof, keeps reiterating the implication that measures taken by this administration have brought no fruitful
restult to the common man.
He has been told, at least by some of the men who advise him in his
campaign,that the gigantic crisis which the United States faced was escaped
by the narrowest margin, and that this was due to the unprecedented
measures adopted by this administration.
If some of these very men will tell him the whole truth they will tell him
that they personally sought to buy and withdraw large sums of gold because
of theirbelief that we could not maintain the gold reserves of the United
States.
Why can he not be frank enough to recognize the successful care of the
employment has been
distressed in the United States; that a vast amount of
the depositors in our banks
provided; that the savings of more than 95% of
would
have been held secure; that the 20,000,000 borrowers who otherwise
have been bankrupt by destructive pressures from forced selling of their
that
the
70,000.000
protected:
assets in order to pay their debts have been
life-insurance policies which represent the greatest act of self-denial of our
suspeople in provision for the future safety of their loved ones have been
1
Volume 135
Financial Chronicle
tallied in their validity; that foreclosure of hundreds of thousands of home
and farm mortgages has been prevented?
He knows that the integrity of our currency has been sustained, that the
credit of the Federal Government has been maintained, that credit and
employment are being expanded every day.
The living proof of these measures, which were conceived from the human
heart as well as the mind, can be found in the men and women in every city,
every town, every township, and every block in this broad land—for they
have been saved their jobs and secured from suffering, and that by the
action of the American people as a whole.
Tariff.
I have stated my major purpose this evening is to speak upon some of the
continuing policies of this administration in contrast with the policies of our
opponents.
Many of these continuing policies are dealt with in our platform. I dealt
with many of them in my acceptance speech. Some have developed in
the
course of this campaign. Having had the responsibility of this office for
three and one-half years, my views upon such public questions are already
set out in many matters in the public record and public action.
I do not have to engage in promises. I may point to performance.
The opposition has shown its true purposes by the legislation of the last
session of the Democratic House of Representatives, through their platform,
and through the statements or evasions of their candidate.
Of these subjects I may refer first to the tariff.
In a recent speech, in discussing the agricultural tariffs. I pointed
out
the specific disaster to our farms from the Democratic proposal to
reduce
these protective tariffs.
I pointed out that the Democratic party had, in 1913, not content
with
merely lowering the tariff, but a large part of farm products on the
free list.
I pointed out that the Republican party had passed an emergency
farm
tariff bill in 1921 as soon as they had a majority and a Democratic
President
had vetoed it.
I pointed out that the Democratic minority in Congress in
1921 had
voted against the revival of the emergency farm tariff and the
Republican
majority had passed it and a Republican President signed it. I
pointed out
that the Democratic minority had voted against an increase in
agricultural
tariffs in the Republican tariff act of 1922.
I pointed out that most of the Democratic members of
Congress voted
against the bill carrying those increases of tariffs on agricultural
products
In the special session of Congress which I called in 1929 for that
purpose,
but we passed the bill.
In the light of their historic attitude it is but natural that
our opponents
express their bitter opposition to the Republican tariff. They
have habitually
voted against these tariffs.
3079
left out? Has he considered the copper industry—in the States of
Arizona.
Montana, Michigan and Utah?
Has he considered the tariffs on metal and other products—which affect
the welfare of the whole of the New England States and New York, Pennsylvania, New Jersey, California, Ohio, Indiana, Illinois and West Virginia?
Has he considered the tariff on pottery and chemicals—and its effect
upon New Jersey, Ohio, Indiana, Illinois, New York, Pennsylvania, West
Virginia and California and a lot of other States? Has he considered
the
tariffs on lumber—in their effect on Oregon, Washington, California and
Wisconsin?
If we are going to retreat from the reduction of the tariff, he should give
these people comfort also.
Perhaps if he would give the same consideration to the effect of reducing
tariffs for these people, he will come to the same conclusion as that to which
he has been forced by this debate In respect to agriculture.
Now, if political exigencies have forced his temporary conversion
on
agricultural products, how far has he authority to change at will the traditional policies and the platform of the Democratic party? How far can
Governor Roosevelt guarantee to bring with him the Democratic members
of the House and Senate who voted against the bills carrying the increases
in agricultural tariffs, and how about the men who wrote the plank in the
Democratic platform?
Do you, as farmers, believe in this eleventh hour conversion? And,
finally, I ask you whether or not you, as business men, farmers and workmen, are prepared to intrust your future occupations and welfare to the
gentleman whose fixity of principle and whose knowledge of the subject
can be driven out of him in only three weeks?
Do you consider that your livelihood is safe in the hands of the traditional
and present enemy of the protective tariffs?
Perhaps the Governor and the whole Democratic party will now withdraw and apologize for the defamation to which I have been subjected for
the past two years because I called a special session of the Congress and
secured an increase in agricultural tariffs.
I, myself, am taking heart over this debate. If it could be continued
long enough, I can drive him from every solitary position he has taken in
this campaign. They are all equally untenable. But even on the tariff,
he, perhaps, remembers the dreadful position of the chameleon on the
Scotch plaid.
As to the balance of the protective tariffs, unless his late conversion
extends further than agriculture, he proposes to reduce them in the face
of the fact that, during the last 12 months, there has been a violent change
in the economy of the °nth% world through the depreciation of the currencies
in 30 European nations and thus lowering of their standards of living and
the creation of still greater differences between costs of production in the
United States and abroad.
Says Governor Roosevelt "Shuffles" on Tariff.
Republican Party Squarely for Protective Tariff.
And now they propose in their platform "competitive tariff
for revenue,'
.
and they denounce the whole Smoot-Hawley bill, which is
Now, the Republican party is squarely for the protective tariff. I refuse
mainly
to increase of the farm tariffs. The Democratic candidate, from devoted
to put the American workers and farmers into further unemployment and
the
day
of his nomination, iterates and reiterates that he
misery by any such action as the unrepented principles of their members
proposes to reduce the
tariff. He states it was an unwarranted increase of
of the Democratic Congress and their platform.
the tariff.
During the first seven weeks of this campaign
The Governor's new shuffle requires that he give some further assurances
he not only adopts their
historic position and constantly repeats their
to the farmers in order to make it consistent. The Democratic House of
platform, but reinforces it
by repeated statements that:
Representatives and their allies in the Senate passed a bill directing me to
"I support the competitive tariff
for revenue."
call an international conference for purpose of reducing tariffs.
"The tariff law of 1932 was a drastic
revision of the tariff upward in spite
The Governor has supported this in his campaign. That means that we
of the fact that the existing tariff levels were
already high enough to protect
should surrender to foreigners the determination of a policy which we have
American industries."
zealously held in American control for 150 years, ever since the first pro"We sit on the high wall of the HawleySmoot tariff."
tective tariffs was enacted under George Washington.
"I condemn the Hawley-Smoot tariff."
This would, in this manner, place the fate of American workers and
"A wicked and exorbitant tariff."
American farmers in the hands of foreign nations. I vetoed the bill.
"Sealed by the highest tariff in the history
of the world."
But the point I wish to make now is that the Governor should now explain
"Our policy declares for lowered tariffs."
to the farmers that if he were to call such a conference he would exempt
"A ghastly Jest of the tariff."
agricultural tariffs.
Mr. Roosevelt and his party knew that the
major increases in the SmootBeyond this, the Democratic party and their candidate propose to enter
Hawley Act were the farm tariffs when their
platform was drawn, and he
reciprocal tariffs. That idea is not entirely new in our history,
upon
knew of them when he made the
statements that I have quoted. The
although it is a violation of a now firmly established principle of uniform
evidence is complete that they and he intend to reduce
farm tariffs.
and equal treatment of all nations without preferences, concessions or disDuring the past three weeks I have reiterated
this plain and evident
criminations.
purpose of their party and their candidate. Unquestionably, my
exposition
It is just such concessions and discriminations that are producing to-day
has given their candidate great anxiety, because
on the 25th of this month,
a large part of the frictions of Europe. I suppose our Democratic friends
just 21 days after my statement, he announced another
new deal.
try to blame these European tariff wars on the Smoot-Hawley bill.
I call this a new shuffle. He now announces within
two weeks of the
Though reciprocal tariffs are a violation of American principles, this
election that he does not propose to reduce tariffs
on farm products.
nation has fallen from grace and at times attempted to do this very thing.
This is the most startling shift in position
by a Presidential candidate in
At one time 22 such treaties were negotiated for this purpose. Congress
the midst of a political campaign in all recent political history.
refused to confirm 16 of them, two of the remaining failed of confirmation
What would Grover Cleveland or Samuel
Tilden or Woodrow Wilson
by other governments and four others were so immaterial as to be forgotten.
say to such a shift? Does the candidate realize
that he has overnight
On another occasion Congress conferred on the Executive a limited
thrown overboard the great historical position of
his party? That he has
authority
to make such treaties, 22 of which were agreed upon, all of which
rewritten the Democratic platform? That he must
withdraw half of his
were repealed by tariff acts.
speeches in which he denounced the Hawley-Smoot
Act as the origin of this
This all demonstrated just one thing. In an intelligent democracy you
world calamity?
cannot surrender the welfare of one industry or locality to gain something
I have the privilege of informing him that 66% of all the
duties collected
another.
for
on all dutiable Imports are directly on imports of agricultural
origin and
There is, however, an overriding objection to reciprocal tariff upon which
the reduction of which would affect American farmers.
the Governor's new shuffle requires that he give further assurances to the
Are we to take it that all the diatribes we have heard from
the Democratic
farmers.
orators throughout this campaign are in respect to only
one-third of the
The vast majority of the wishes of foreign countries about our tariffs is
American tariffs?
to get us to reduce our agricultural tariffs, so that they can enter our agriJust seven days ago the Democratic candidate said:"The
Hawley-Smoot
cultural market.
tariff law carried the decline in world trade, and what amounted
to a minor
The only concessions that we could grant through reciprocal tariffs
calamity became a general international calamity." He must
now conclude
would be at the cost of our farmers.
that the farm tariffs have done the world no harm. You will further
rememSince
the Governor's assurance not to reduce farm tariffs, it is necessary
ber that under that act two-thirds of our imports are free of duty,
and now
for him to assure the farmers that he will abandon reciprocal tariffs in
he excludes two-thirds of the remaining one-third that are dutiable.
relation to agriculture. This, of course, takes away all of the trading value
Dots the Democratic party still pretend that this terrible calamity
to
in the reciprocal theory, and we may as well abandon the discussion of that
the world was caused by tariffs on one-ninth of our imports? And further,
In
the campaign.
does he know that of this one-ninth of imports of non-agricultural
comIn all this discussion about reducing tariffs it should be remembered
modities, less than one-half of them were increased by the Hawley
-Smoot
that if any one of the rates or schedules of our tariff is too high, it has
been
tariff? Does he now pretend that this calamity was caused by increase
of
open to our opponents during the whole of the last session of the House
of
tariffs on ono-eighteenth of our Imports?
Representatives to pass a simple resolution and thereby
secure its review
Does he continue to ignore that our whole imports are less than
12%
from
Tariff
the
Commission.
Did
they
do that? They did not.
of the world imports and that thus, in his revised view, increased duties on
The establishment of the Tariff Commission with this authority
destroyed
ono-eighteenth of one-twelfth or less than one-half of 1% brought the world
one of the campaign methods of the Democratic party, and
that was to
calamity by which 30 nations have failed or gone to revolution? He should
conduct campaigns by exhibiting kettles or pans to the housewives
of the
search
in
least
the
at
aftermath
now
of the World War for the origins of this
nation and explaining what unjust cost was imposed upon them by
the
calamity, and stop this nonsense.
tariff. That manoeuvre is not longer effective, with the bipartisan Tariff
1 wish to extend this discussion a little further, that the Governor may
Commission open to give remedy to the housewives of the United States.
explain himself on some more tariff questions. Does he include reduction
The Democrats propose, and in fact passed a bill in the last session,
to
of the tariff on cotton textiles, so largely manufactured in the South? I
destroy this authority of the bipartisan Tariff Commission by which it
may
part
but
a
of
included
these
in
have
agricultural tariffs, inasmuch as only
change the tariff so as to correct inequities or to alter the schedules to meet
apart of raw cotton is dutiable.
the changing tides of world economic life.
Does he propose to close up the Southern cotton mills? In view of this
Thus, they propose to return to the old log-rolling, the orgies of greed,
new light, has he considered the grevious position of the oil industry—in
viciousness and stagnation of business during general Congressional action
the States of California and Oklahoma, in Texas and in Kansas if they are
In review of the tariff.
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Financial Chronicle
The increased authority to the bi-partisan tariff commission to make
changes in tariff with the approval of the President, which was brought
about by my insistence two years ago, was the greatest reform in tariff
legislation in a half of a century. It was originated by Theodore Roosevelt.
No better example of the vital importance of the flexible tariff exists
than to-day, when we are in the crisis of men and women being thrown
out of employment due to depreciated currencies abroad and of low-priced
farm products moving in over our borders.
The commission is to-day re-examining the new differences in cost of
production at home and abroad that action may be taken to restore to men
and women their jobs.
Sound Republican policy maintains this commission and its authorities.
The Democratic policy is to destroy it, but perhaps the Governor will offer
us a new deal on this also.
Democratic Proposals as to War Debts.
The Democratic candidate proposes to place the payment of the war debts
owed to us by foreign countries squarely on the shoulders of the American
workman and the American farmer by lowering the tariffs for this special
purpose. He would let down the bars to the American market for foreign
commodities in order that foreign nations may collect from the profits of
their manufactures the money with which to pay these debts.
Will he now exclude 66% of our dutiable imports, being agricultural
products, from this proposal?
My view in opposition to cancellation of the war debts is a matter of public
record through many public statements and messages to Congress. I have
proposed that we should use the foreign debts, payment by payment, to
expand the foreign markets for our labor and for our farmers. This is not
cancellation. This is the reverse of the announced policy of the Democratic
candidate.
Immigration.
At no point in this campaign have our opponents stated clearly and
definitely their position on immigration. I have looked for it. I haven't
found it. If I have overlooked it, I apologize. I have stated that I favor
rigidly restricted Immigration.. I endeavored to secure from Congress the
return of quota bases from national origins to its former base.
I have recommended that a more humane provision should be made for
bringing in the near relatives of our citizens. I shall persist in these matters.
I have limited immigration by administrative order during the depression
In order to relieve us of unemployment, or, alternatively, to save the jobs
of our people who are now at work.
Two years prior to that order going into effect nearly half a million immigrants came to the United States. Since it went into effect more have
gone out than have come in. The distressed people with lowered standards
of living that would have come in would have been a far greater addition
to our unemployed than even that amount. The Democratic candidate
overlooked that little item in saying we have done nothing in this depression.
I have repeatedly recommended to the Congress a revision of our railway
transportation laws in order that we might create greater stability and
greater assurance of this vital service in our transportation. This regulation
should be extended to other forms of carriers, both to prevent the cut-throat
destruction of their own business now going on among them and to prevent
their destruction of the other major arm of our transportation.
I have set this matter out in numerous messages to Congress. I have
supported the recommendations of the Interstate Commerce Commission.
which are specific and not generalities. Our opponents have adopted my
program in this matter during this campaign except certain glittering generalizations. as to which they do not inform us how they are to be accomplished and upon which I enter a reservation.
Federal Regulation of Inter-State Power.
I have repeatedly recommended Federal regulation of inter-state power.
I stated as early as seven years ago that "glass pockets are the safety of the
Industry as well as the public." I secured the creation of the independent
power commission by the Congress two years ago.
I have opposed, and will continue to oppose, the Federal Government
going into the power business. The intention of many men campaigning
for the Democratic candidate, under the auspices of and with money provided by the Democratic National Committee, is to put the government
into the power business, and it would seem that they must have confidence
that their notions will be put over by the Democratic candidate.
The Democratic candidate says he will preserve the great water powers
for the people. That is already provided by the law since 1920 and it therefore presents no difficulty to vigorous campaign promises. In my acceptance
speech I stated that this depression has exposed many weaknesses in our
economic system. It has shown much wrong-doing.
There has been exploitation and abuse of financial power. These weaknesses must be corrected and that wrongdoing must be punished. Wo will
continue to reform such abuses and correct such wrongdoing as falls within
the powers of the Federal Government.
Protection From Insecure Banking Through Stronger System.
The American people must have protection from insecure banking through
a stronger system. They must be relieved from conditions which permit
the credit machinery of the country to be made available without adequate
check for wholesale speculation in securities, with its ruinous consequences
to millions of our citizens and to national economy.
This the Federal Reserve System has proven incapable of doing. I
recommended to the Congress the sane reform of our banking laws. The
Democratic House of Representatives did not see fit to pass that legislation
In the last session. I shall persist in securing its accomplishment.
I recommended to the Congress an emergency relief to our depositors in
closed banks that, through the temporary use of the credit of the Federal
Government. a substantial part of their assets should be forthwith distributed in order to relieve distress and enable depositors to re-establish
their business.
The Democratic Congress refused to pass such legislation in the last
session, except for a minor provision of authority to the Reconstruction
Finance Corporation, which does not reach to the heart of the question at all.
The Democratic candidate and his corps of orators have not yet disclosed
their position on this subject.
We have listened to much prattle from the opposition about reducing
government expenses. Having a record of earnest performance, I naturally
exposed their insincerities upon this question at Detroit.
If I receive a mandate from the American people in this election, I shall
be able not only to force upon this Democratic House real economies, but
also be able to stop further raids by the Democratic party on the Treasury
of the United States.
Now, through misinformation handed to him, the Democratic candidate
has annexed, as if it were a new discovery, the recommendations which I
made in 1922 and have continuously advocated ever since for the reorganization of the whole Federal administrative structure for the purpose of
economy by the consolidation of bureaus and the elimination of useless
hoards and commissions.
-.lie candidate, in a recent speech, was led to misrepresent the present
reform,
Sitivation, for the Congress, having been no longer able to oppose this
Nov. 5 1932
did pass a measure during the last session granting an authority to the
Executive to bring this about.
They, however, denied my request for Immediate action, except on minor
matters and made that authority dependent upon the approval of Congress,
which cannot be given before next March under the terms of the law. If
the Democratic candidate will read the law and inform himself fully upon
the subject. I have no doubt he will withdraw that statement.
I gave an address at Des Moines devoted largely to 12 specific measures
now in action and to be put into action for agriculture. At Cleveland I
likewise gave an extended exposition of the measures and policies which we
have in action and propose for labor and employment. I am in hopes these
statements will be carefully considered.
One of the most important issues of this campaign arises from the fact
that the Democratic candidate has not yet disavowed the bill passed by the
Democratic House of Representatives, under the leadership of the Democratic candidate for Vice-President, to issue 82.300.000,000 of greenback
currency—that is, unconvertible paper money. That is money purporting
to come from the horn of plenty, but with the death's-head engraved upon it.
Tampering with the currency has been a perennial policy of the Democratic party.
The Republican party has had to repel that before now.
In the absence of any declaration by the Democratic candidate on this
subject for seven weeks of this campaign, no delayed promise now can
effectually disavow that policy. The taint of it is firmly embedded in the
Democratic party. The dangers of it are embedded in this election.
If you want to know what this "new deal" and this sort of money does
to the people, ask any of your neighbors who have relatives in Europe.
especially as to German marks.
Bonus.
I have stated that I do not favor the prepayment of the soldiers' bonus of
$2,300,000.000. It was passed by the last Democratic House of Representatives. It will be attempted again. The Democratic candidate has
not yet stated to the American people fairly and squarely what his attitude
Is upon this subject.
The reasons why I object to it can be illustrated by the father who, in
a generous moment, promised his young son a bonus of $100 when he was
21 years old.
The boy asked his father for the $100 13 years in advance. His father
said:
"Times are bad. I am hard pressed. I have to bring up and educate
all of the children, and I haven't the money. I am placing $5 per annum
In the savings bank and, as it is compounded, it will amount to $100 when
you are 21 years old."
Some of his friends added that he might pay the boy in stage money.
The moral of that story is you cannot eat your loaf of compound interest
before the dough has had time to rise.
And the further political moral of this story is that it was said by the
father's political opponents that this son would never vote for his father for
public office.
There is no one high in public office who knows better than I do from
personal observation the service given by the youth of our country in the
great war. I have insisted upon their care when in distress. But with all
my regard and feeling I cannot endanger the whole stability of this country
In this special demand of a part of the veterans or any other special group.
Of one thing I will assure the veterans, and that is when they are paid
they will be paid in real money.
Gov. Roosevelt's Position on Foreign Bonds.
During the past few weeks the Democratic candidate has had a great
deal to say in endeavoring to establish the idea In the minds of the American
people that I am responsible for bad loans by American bankers and investors in foreign countries. He says:
"This is an unsavory chapter in American finance." (I agree with part
of that.) "These bonds in large part are the fruit of distressing policies
pursued by the present administration in Washington. None other, if you
Please, than the policy of lending to backward and crippled countries."
The Governor does not inform the American people that there is no
Federal law of regulation of the sale of securities and that there is doubtful
constitutional authority for such law; that most of these bonds are issued
from New York State, which has such authority, and that the Governor
has done nothing to reform that evil, if it be one.
I recollect a Republican Governor of New York who, believing wrong
was being done to citizens of his own and other States on their life insurance,
found a man named Charles Evans Hughes who cleaned it up once and
for all.
The Governor has not stated to the American people my oft-repeated
warnings that American loans made in foreign countries should be on sound
security and confined to reproductive purposes. I have defined these as
being loans for creative enterprises which, of their own earnings, would
repay interest and capital.
In one of his addresses the Governor pretends not to be able to understand
what a reproductive loan is, and yet, as I will show you in a moment, he
does know something about it. I will say at once that when we have surplus
capital, properly secured loans for reproductive purposes abroad are an
advantage to the American people. They furnish work to American labor
In the manufacture of plants and equipments: they furnish continuing demand for American labor in supplies and replacements.
The effect ofsuch creative enterprise is to increase the standards of living
among the people in those localities and enable them to buy more American
products and furnish additional work for American labor.
I have no apologies to make for that statement. It is sound; it makes
for the upbuilding of the world; it makes for employment of American workmen and profit to American investors. If it be followed, there will be no
losses.
In these statements made by the Governor he entirely omits the conditions
and warnings with which I have always pointedly surrounded the statements
of this subject. Although no Federal official has the authority to control
the security offered on these loans, none have defaulted where my proposed
safeguards have been followed.
It is obvious from the Governor's many speeches that he now considers
that all foreign loans are wrong. He seems to consider the selling of foreign
bonds in our country to be wicked and the cause of our calamities. One
Interesting part of all this tirade is that I have never been engaged in the
selling of foreign bonds and foreign loans.
The Governor has the advantage of me in experience in that particular.
As late as 1928 the Governor was engaged in that business for profit and
actively occupied in promoting such loans.
At that time he was Chairman of the organizition committee of the
Federal International Banking Co., a corporation organized for the selling
of foreign securities and bonds to the American people.
I have in my hand a prospectus of that corporation in which the foreword.
written by Mr. Roosevelt before he resigned this position to take the Governorship, reads as follows:
"The organizers of the Federal International Banking Co.feel that foreign
Investments are in the nature of alliances. The Federal International
immimmEmm•M=M.
Volume 135
Financial Chronicle
flanking Co. will provide a new source of supply from which American
demand for foreign investments may be satisfied. It is intended to promote
expansion of American foreign trade., Investments of the Federal International are intended to be self-liquidating. It will put to sound protective
uses a part of the surplus wealth of our Nation which might otherwise be
employed in the purchase of existing stocks and thereby increase present
tendencies toward inflation.'
The prospectus states that "Its operations will be widely distributed in
foreign countries and various industries."
It further states "that we must aid debtor nations to purchase our
products, rehabilitate themselves, expand and develop and earn money
with which to liquidate their debts, that foreign loans should be facilitated
to aid the export.sale of American products."
I ask you if more vivid statements have been propounded than that.
Throughout the prospectus constant reference is made to the fact that it is
organized under the law, and the impression is given that in consequence it
has some sort of' official blessing from the Federal Government, including
myself.
I have no reason to believe that the Governor's enterprise on this occasion
was not perfectly proper and soundly founded. I do not wish to convey
that impression.
But the Governor, as a private promoter for profit during the boom of
1928, believed and practiced what the Governor as Presidential condidate
now denounces as immoral and a cause of our calamities. Two weeks ago
at Cleveland I felt it necessary to denounce the calumnies being circulated
In this campaign by the Democratic National Committee in official instructions to their campaign speakers.
That committee privately acknowledges that these have not a shred of
foundation. They refuse to take the manly course and withdraw these
statements. They have sought to maintain their continuing poison by
silence.
I now have before me other calumnies of the Democratic National Committee, circulated in the same fashion by instructions to their campaign
speakers. These instructions bristle with such titles as these--and these
questions will interest American women:
"Ho,. President Hoover has failed the children."
"His real interest in the Nation's children may be gained by his recorded
effort to emasculate and disrupt the children's bureau."
"The bunk of the Home Loan Bank Act."
Governor Roosevelt implies his endorsement of these columnies by repeating their implications in his speeches when he speaks of what he calls
"attempts that have been made to cut appropriations for child welfare."
And again:
"The United States Public Health Service states that over 6,000,000 of
our public school children have not enough to eat; many are fainting at
their desks; they are the prey of disease and their future health is menaced."
In another speech he uttered a slur on the Home Bank Loan System
created by this Administration.
These things have importance only as indicating the desperate attempts
to mislead the American voter. No wom et in the United States believes I
am required to defend my interest in children over the past score of years.
But, more to the point, I have a letter from the chief of the United States
Public Health Service that no such statement as that quoted by Governor
Roosevelt has ever been put out by that service.
Further, I have here an address, only a week old, by the President of the
American Public Health Association, who is not a government officicial,
saying "By and large, the health of the people as measured in sickness and
death has never been better, despite this depression."
That shows the devoted work of thousands of American men and women
whom his statements in this campaign have sought to slur.
As to the Children's Bureau, I may demonstrate the untruth contained
In this statement by the fact that the first year of my administration,
despite the hard times, I increased appropriations for the children's bureau
from $320,000 to $368,000, which was every cent they asked for; in the
second year I recommended appropriations of $399,000. and in the third
year I recommended appropriations of $395.000, but the Democratic House
of Representatives reduced this by $20,000.
This scarecely looks like ruin of the Children's Bureau—on my part.
Home Loan Banks.
In the matter of the Home Loan Banks, the Governor states that this
idea was brought out in the middle of the campaign. And,like the instructions to speakers, he makes slurs upon it.
That statement falls to the ground in the same slough of untruth as the
others wohn it is recollected that I had founded the better homes movement
In the United States more than 10 years ago, whose activities in over 0,000
different communities, through the devoted service of thousands of American
women,finally blossomed into the White House Conference on Home Building and Home Ownership in December a year ago.
On that occasion I proposed the plan for the Home Loan Discount banks
which I had advanced two years before and secured the support of that conference for the creation of the Institution. The bill was drafted and presented to Congress on Dec.8 last. The refusal of the Democratic Muse of
Representatives to act prevented its passage until the last hour of the session,
eight months later, when the pressure from women and men devoted to the
upbuilding of the American home had become so great that they did not
dare defeat it in the face of this campaign.
Had that bill been passed when it was introduced, nearly a year ago, the
suffering and losses of thousands of small-home owners in the United States
would have been prevented. I consider that act was the greatest act yet
undertaken by any government, at any time, on behalf of the thousands of
owners of small homes.
It provides the machinery, through the mobilization of building and loan
associations and savings banks, by which we may assure to men and women
the opportunity to bring up their children in the surroundings which make
for true unity and trm purpose in American life.
Reply to Governor Roosevelt.
In Governor Roosevelt's address delivered on Oct. 25 he stated:
"After March 4 1929, the Republican party was In complete control of
all branches of the Government—Executive, Senate and House and, I may
add for good measure, the Supreme Court as well."
I invite your attention to that statement about the Supreme Court.
There are many things revealed by the campaign of our opponents which
should give American citizens concern about the future. One of the gravest
mind revealed by my opponent in that statement. He
is the state of
implies that it is the function of the party in power to control the Supreme
Court. For generations Republican and Democratic Presidents alike have
made it their most sacred duty to respect and maintain the independence of
America's greatest tribunal.
President Taft appointed a Democrat as Chief Justice; President Harding
nominated a Democratic justice: my last appointment was a Democrat
rrom New York State, whose appointment was applauded by Republicans
Democrats alike the nation over. All appointees to the Supreme Court
and
have been chosen solely on the basis of character and mental power. Not
since the Civil War have the members of the Court divided on political lines.
3081
Aside from the fact that the charge that the Supreme'Court has been
controlled by any political party is an atrocious one, there is a deeper
Implication in that statement.
Does it disclose the Democratic candidate's conception of the unctions
of the Supreme Court?
Does he expect the Supreme Court to be subservient to him and his
Party?
Does that statement express his intention, by his appointments or otherwise, to attempt to reduce that tribunal to an instrument of party
policy
and political action for sustaining such doctrines as he may bring with him?
My countrymen,I repeat to you, the fundamental issue in this campaign,
the decision that will fix the national direction for 100 years to come, Is
whether we shall go on in fidelity to the American traditions or whether
we shall turn to innovations, the spirit of which is disclosed to us by many
sinister revelations and veiled promises.
My friends, I wish to make my position clear. I propose to go on in
faith and loyalty to the traditions of our race. I propose to build upon
the foundations which our fathers have laid over 150 years.
Address of President Hoover in Madison Square Garden,
New York—Declares "New Deal" of Democratic
Party Would Destroy Foundations of Our American
System—Cites Eight Points in Governor Roosevelt's
Program Which President Contends Would Endanger System.
Declaring that the present Presidential campaign "is
more than a contest between two men," and "more than a
contest between two parties," President Hoover, in an
address in Madison Square Garden, New York;on Oct. 31,
described it as "a contest between two philosophies of
Government." "We are told by the opposition," said
President Hoover, "that we must have a new deal." "The
expression our opponents use," said the President, "must
refer to important changes in our economic and social system
and our system of Government, otherwise they are nothing
but vacuous words." "They" (the Democratic Party), the
President declared, "are proposing changes and so-called
new deals which would destroy the very foundations of our
American system of life." President Hoover told the
gathering that "the primary conception of this whole
American system is not the regimentation of men but the
co-operation of free men. It is founded upon the conception
of responsibility of the individual to the community, of the
responsibility of local government to the State, of the State
to the National Government." "It is founded," he added,
"on a peculiar conception of self-government designed to
maintain this equal opportunity to the individual, and
through decentralization it brings about and maintains
these responsibilities. The centralization of government
will undermine responsibilities and will destroy the system."
Referring to the crisis and what he termed the destructive
proposals of the Democratic nominee, President Hoover
said "in spite of these obstructions we did succeed. . . .
We saved the integrity of our Government and the honesty
of the American dollar. And we installed measures which
to-day are bringing back recovery. Employment, agriculture, business—all of these show the steady, if slow, healing of our enormous wound." President Hoover went
on to say:
I therefore contend that the problem of to-day Is to continue these
measures and policies to restore this American system to its normal functioning, to repair the wounds it has received, to correct the weaknesses
and evils which would defeat that system. To enter upon a series of
deep changes, to embark upon this inchoate new deal which has been
propounded in this campaign, would be to undermine and destroy our
American system.
The President listed eight proposals of the Democratic
Party, which he contended "will endanger or destroy our
system. These, as summarized in the New York "Times,"
were:
1. The expansion of Government expenditure by yielding to sectional
and group raids on the public Treasury.
2. Inflation of the currency through the issuance of fiat money.
3. Entrance of the Federal Government into the personal banking
business.
4. Reduction of the protective tariff to a competitive tariff for revenue.
5. Entrance of the National Government into the power business.
6. The promise of a program of self-liquidating public works to provide
employment for all surplus labor at all times, which, the President said,
was "frivolous" and "cruel."
7. The "slurring reflection" on the United States Supreme Court made
by Governor Roosevelt when he said that it was under the complete control
of the Republican Party.
8. The "philosophy of stagnation, of despair" by which, Mr. Hoover
said. Governor Roosevelt proposes to conduct the Presidency.
The address of President Hoover at Madison Square
Garden follows in full:
PART I.
Contest Between Two Philosophies of Government.
This campaign is more than a contest between two men. It is more
than contest between two parties. It is a contest between two philosophies
of government.
We are told by the opposition that we must have a change, that we
must have a new deal. It Is not the change that comes from normal
development of national life to which I object, or you object, but the proto alter the e hole foundations of our national life which have been
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Financial Chronicle
builded through generations of testing and struggle, and of the principles
upon which we have made this Nation. The expressions our opponents
use must refer to important changes in our economic and social system
and our system of government,otherwise they would be nothing but vacuous
words. And I realize that in this time of distress many of our people
are asking whether our social and economic system is incapable of that
great primary function of providing security and comfort of life to all of the
firesides of our 25,000,000 homes in America, whether our social system
provides for the fundamental development and progress of our people,
whether our form of government is capable of originating and sustaining
that security and progress.
This question is the basis upon which our opponents are appealing to
the people in their fear and distress. They are proposing changes and socalled new deals which would destroy the very foundations of the American
system.
Our people should consider the primary facts before they come to the
judgment—not merely through political agitation, the glitter of promise,
and the discouragement of temporary hardships—whether they will support changes which radically affect the whole system which has been builded
up by 150 years of the toil of our fathers. They should not approach the
question in the despair with which our opponents would clothe it.
Our economic system has received abnormal shocks during the last three
years, which have temporarily dislocated its normal functioning. These
shocks have in a large sense come from without our borders, and I say to
you that our system of government has enabled us to take such strong action
as to prevent the disaster which would otherwise have come to this Nation.
It has enabled us further to develop measures and programs which are now
demonstrating their ability to bring about restoration and progress.
We must go deeper than platitudes and emotional appeals of the public
platform in the campaign if we will penetrate to the full significance of
the changes which our opponents are attempting to float upon the wave
of distress and discontent from the difficulties we are passing through.
We can find what our opponents would do after searching the record of
their appeals to discontent, group and sectional interest. To find that,
we must search for them in the legislative acts which they sponsored and
passed in the Democratic-controlled House of Representatives in the last
session of Congress. We must look Into both the measures for which they
voted and which were defeated. We must inquire whether or not the
Presidential and Vice-Presidential candidates have disavowed these acts.
If they have not, we must conclude that they form a portion and are a
substantial indication of the profound changes and the new deal which is
proposed.
Sees Revolutionary Changes Proposed.
And we must look still further than this as to what revolutionary changes
have been proposed by the candidates themselves.
We must look into the type of leaders who are campaigning for the
Democratic ticket, whose philosophies have been well known all their lives
whose demand for a change in the American system is frank and forceful.
I can respect the sincerity of these men in their desire to change our form
of government and our social and economic system, though I shall do my
best to-night to prove they are wrong. I refer particularly to Senator
Norris, Senator La Follette, Senator Cutting, Senator Huey Long, Senator
Wheeler, William R. Hearst, and other exponents of a social philosophy
different from the traditional philosophies of the American people. Unless
these men feel assurance of support ot their ideas they certainly would
not be supporting these candidates for the Democratic Party.
The zeal of these men indicates that they have sure confidence that they
will have voice in the administration of this government.
I may say at once that the changes proposed from all these Democratic
principals and allies are of the most profound and penetrating character.
If they are brought about this will not be the America which we have known
In the past.
American System of Government.
Let us pause for a moment and examine the American system of government, of social and economic life, which it is now proposed that we should
alter. Our system is the product of our race and of our experience in building a Nation to heights unparalleled in the whole history of the world.
It is a system peculiar to the American people. It differs es3entially from
all others in the world. It is an American system.
It is founded on the conception that only through ordered liberty,
through freedom to the individual, and equal opportunity to the individual
will his initiative and enterprise be summoned to spur the march of National
progress.
It is by the maintenance of equality of opportunity and therefore of
a society absolutely fluid in the movement of its human particles that our
individualism departs from the individualism of Europe. We resent class
distinction because there can be no rise for the individual through the
frozen strata of classes, and no stratification of classes can take place in a
mass livened by the free rise of its particles. Thus in our ideals the able
and ambitious are able to rise constantly from the bottom to leadership in
the community. And we denounce any intent to stir class feeling and class
antagonisms in the United States.
This freedom of the individual creates of itself the necessity and the
cheerful willingness of men to act co-operatively in a thousand ways and
for every purpose as the occasion requires, and it permits such voluntary
co-ooperations to be dissolved as soon as they have served their purpose,
•and to be replaced by new voiunary associations for new purposes.
There has thus grown within us, to gigantic importance, a new conception.
And that Is, this voluntary co-operation within the community. Cooperation to perfect the social organization; co-operation for the care of those
In distress; co-operation for the advancement of knowledge, of scientific
research, of education; co-operative action in a thousand directions for the
advancement of economic life. This is self-government by the people
outside of government; it is the most powerful development of individual
freedom and equal opportunity that has taken place in the century nad a
half since our fundamental institutions were founded.
It is in the further development of this co-operation and a sense of its
responsibility that we should find solution for many of the complex problems and not by the extension of government into our economic and
social life. The greatest function the government can perform is to build
up that co-operation, and its most resolute action should be to deny the
extension of bureaucracy. We have developed great agencies of co-operation by the assistance of the government which promote and protect the
interests of the individual and the smaller units of business. The Federal
Reserve System, in its strengthening and support of the smaller banks;
the Farm Board in Its strengthening and support of the farm co-operatives;
the Home Loan banks, in mobilizing building and loan associations and
Baring banks; the Federal Land banks, in giving independence and strength
to land mortgage associations; the great mobilization of relief to distress,
the mobilization of business and industry in measures of recovery from
this depression and a score of other activities are not socialism—they are
the essence of protection to the development of free men. I wish to go
Into this point a little further.
Nov. 5 1932
Primary Conception of American System.
The primary conception of this whole American system is not the regimentation of men but the co-operation of free men. It is founded upon
the conception of responsibility of the individual to the community, of
the responsibility of local government to the State, of the State to the
National Government.
It is founded on a peculiar conception of self-government designed
to maintain this equal opportunity to the individual, and through decentralization it brings about and maintains these responsibilities. The
centralization of government will undermine these responsibilities and
will destroy the system.
Our government differs from all previous conceptions, not only in the
decentralization, but also of the judicial arm of government in the separation of functions between the legislative, executive and judicial arms of
government, in which the independence of the judicial arm is the keystone
of the whole structure.
It is founded on a conception that in times of emergency, when forces
are running beyond control of individuals or other co-operative action,
beyond the control of local communities and of States, then the great
reserve powers of the Federal Government shall be brought into action
to protect the community. But when these forces have ceased there must
be a return of State, local and individual responsibility.
Now, the implacable march of scientific discovery with its train of
new inventions presents every year new problems to government and
new problems to the social order. Questions often arise whether, in the
face of the growth of these new and gigantic tools, democracy can remain
master in its own house, and can preserve the fundamentals of our American
system. I contend that it can; and I contend that this American system
of ours has demonstrated its validity and its superiority over any system
yet invented by the human mind.
It has demonstrated it in the face of the greatest test of our history—
that is the emergency which we have faced in the past three years.
Crisis and Measures to Overcome It.
When the political and economic weaknesses of many nations of Europe,
the result of the World War and the aftermath, finally culminated in
the collapse of their institutions, the delicate adjustment of our economic
and social and governmental life received a shock unparalleled in our
history. No one knows that better than you of New York. No one
knows its causes better than you. That the crisis was so great that many
of the leading banks sought directly and indirectly to convert their assets
into gold or its equivalent, with the result that they practically ceased
to function as credit institutions, is known to you; that many of our citizens
sought flight for their capital to other countries; that many of them -attempted to hoard gold in large amounts, you know. These were but
indications of the flight of confidence and of the belief that our government
could not overcome these forces.
Yet these forces were overcome—perhaps by narrow margins—and
this action demonstrates what the courage of a nation can accomplish
under the resolute leadership of the Republican party. And I say that
Republican party, advisedly, because our opponents, before and during
the crisis, proposed no constructive program, though some of their members
patriotically supported ours, for which they deserve on every occasion
the applause of patriots. Later on the Democratic House of Representatives did develop the real thought and ideas of the Democratic party,
but it was so destructive that it had to be defeated; they did delay the healing
of our wounds for months.
In spite of all these obstructions we did succeed. Our form of government did prove itself equal to the task. We saved this nation from
a quarter of a century of chaos and degeneration, and we preserved the
savings, the insurance policies, gave a fighting chance to men to hold their
homes. We saved the integrity of our government and the honesty of
the American dollar. And we Installed measures which to-day are bringing
back recovery. Employment, agriculture and business—all of these
show the steady, if slow, healing of an enormous wound.
I therefore contend that the problem of to-day is to continue these
measures and policies to restore this A merican system to its normal functioning, to repair the wounds it has received, to correct the weaknesses
and evils which would defeat that system. To enter upon a series of deep
changes, to embark upon this inchoate new deal which has been propounded
In this campaign would be to undermine and destroy our American system.
Before we enter upon such courses I would like for you to consider what
the results of this American system have been during the last 30 yearn—
that is one single generation. For if it can be demonstrated that by means
of this, our unequaled political, social and economic system, we have secured
a lift in the standards of living and a diffusion of comfort and hope to
men and women, the growth of equality, opportunity or the widening
of all opportunity, such as had never been seen in the history of the world,
then we should not tamper with it and destroy it; but on the contrarY,
we should restore it, and, by its gradual improvement and perfection,
foster it into new performance for our country and for our children.
PART II,
Development Since Last Generation.
Now, if we look back over the last generation we find that the number
of our families, and therefore, our homes, have increased from 16 to 25
million, or 62%. In that time we have builded for them 15,000,000
new and better homes. We have equipped 20,000,000 out of these 25,000,000 homes with electricity; thereby we have lifted infinite drudgery
from women and men. The barriers of time and space have been swept
away in a single generation. Life has been made freer, the intellectual
vision of every individual has been expanded by the installation of 20,000.000 telephones, 12,000,000 radios and the service of 20,000,000 automobiles. Our cities have been made magnificent with beautiful buildings
and parks and playgrounds. Our countryside has been knit together
with splendid roads. We have increased by 12 times the use of electrical
power and thereby taken sweat from the backs of men. In this broad
sweep real wages and purchasing power of men and women have steadily
increased. New comforts have steadily come to them.
The hours of labor have decreased, the 12-hour day has disappeared.
even the 9-hour day has almost gone. We are now advocating the 5-day
week. During this generation the portals of opportunity to our children
have ever widened. While our population grew by but 62%, we have
increased the number of children in high schools by 700%, those in institutions of higher learning by 300%. With all our spending we have
multiplied by six times the savings in our banks and in our building and
loan associations. And we have multiplied by 1,200% the amount of
our life insurance. With the enlargement of our leisure we have come
to a fuller life; we have gained new visions of hope, we more nearly realize
our National aspirations and give increasing scope to the creative power
of every individual and expansion of every man's mind.
Our people in those 30 years have grown in the sense of social responsibility. There Is profound progress in the relation of the employer to
the employed. We have more nearly met with a full hand the most sacred
obligation of man, that is, the responsibility of a man to his neighbor
Financial Chronicle
Volume 135
Support to our schools, hospitals and institutions for the care of the afflicted surpassed in totals of billions the proportionate service in any
period of history in any nation in the world.
Break in Progress.
Three years ago there came a break in this progress. A break of the
same type we have met fifteen times in a century and yet we have overcome them. But eighteen months later came a further blow by shocks
transmitted to us by the earthquakes of the collapse of nations throughout
the world as the aftermath of the World War. The workings of our system
were disl9cated. Millions of men and women are out of jobs. Business
men and farmers suffer. Their distress is bitter. I do not seek to minimize
the depth of it. We may thank God that in view of the storm that we
have met 30,000,000 still have their jobs; yet this must not distract our
thoughts from the suffering of the other 10.000,000.
Would Restore Normal Working System.
But I ask you what has happened? This thirty years of incomparable
improvement in the scale of living, the advance of comfort and intellectual
life, of security, of inspiration and ideals did not arise without right principles animating the American system which produced them. Shad that
system be discarded bacause vote-seeking men appeal to distress and say
that the machinery is all wrong and that it must be abandoned or tampered
with? Is it not more sensible to realize the simple fact that some extraordinary force has been thrown into the mechanism, temporarily deranging
its operation? Is it not wiser to believe that the difficulty is not with the
principles upon which our American system is founded and designed through
all these generations of inheritance? Should not our purpose be to restore
the normal working of that system which has brought to us such immeasurable benefits, and not destroy it?
PART III.
Proposals of Democrats.
And in order to indicate to you that the proposals of our opponents will
endanger and destroy our system. I propose to analyze a few of the proposals
of our opponents in their relation to these fundamentals, which I have
stated.
First—A proposal of our opponents which would break down the
American
system is the expansion of Government expenditure by yielding to
sectional
and group raids on the public Treasury. The extension of Government
expenditures beyond the minimum limit necessary to conduct the
proper
functions of the Government enslaves men to work for the Government.
If we combine the whole governmental expenditure—national, State and
municipal—We will find that before the World War each citizen
theoretically 25 days out of each year for the Government. In worked.
1924 he
worked 46 days a year for the Government. To-day he works for the
support of all forms of government 61 days out of the year.
No nation can conscript its citizens for this proportion of men's time
without national impoverishment and destruction of their liberties.
Our
nation cannot do it without destruction to our whole conception of
the
American system. The Federal Government has been forced
in this
emergency to unusual expenditures, but in partial alleviation of
these
extraordinary and unusual expenditures the Republican
Administration
has made a successful effort to reduce the ordinary running expenses of
the Government. Our opponents have persistently interfered with
such
policies. I only need recall to you that the Democratic House of
Representatives passed bills in the last session that would have increased
our
expenditures by 83,500,000,000, or 87%. Expressed in day's labor,
this
would have meant the conscription of 16 days' additional work
from
every citizen for the Government. That was stopped. Furthermore,
they refused to accept recommendations from the Administration
in
respect to 8150,000,000 to 8200,000,000 of reductions in ordinary
expenditures, and finally they forced upon us increasing expenditure of
8322,000,000. In spite of this, the ordinary expenses of the Government
have
been reduced upward of $200.000,000 during this present
Administration.
They will be decidedly further reduced. But the major point I wish to
make—the disheartening part of these proposals of our opponents—is
that
they represent successful pressures of minorities. They would appeal
to
sectional and group political support, and thereby impose terrific
burdens
upon every home in the country. These things can and must be
resisted.
But they can only be resisted if there shall be live and virile public
support
to a Republican Administration, in opposition to political logrolling
and
the sectional and group raids on the Treasury for distribution of
public
money, which is cardinal in the congeries of elements which make
up the
Democratic Party.
These expenditures proposed by the Democratic House of
Representatives
for the benefit of special groups and special sections of our country
directly
undermine the American system. Those who pay are, in the last
analysis,
the man who works at the bench, the desk, and on the farm. They
take
away his comfort, stifle his leisure and destroy his equal opportunity.
Bill to Inflate Currency.
Second—Another proposal of our opponents which would
destroy the
American system is that of inflation of the currency. The bill
which
passed the last session of the Democratic House called upon the
Treasury
of the United States to issue $2,300,000,000 in paper currency that would
be unconvertible into solid values. Call it what you will, greenbacks or
fiat money. It was that nightmare which overhung our own country for
years after the Civil War.
In our special situation to-day the issuance of greenbacks means the
immediate departure of this country from the gold standard, as
there
could be no provision for the redemption of such currency in gold. The
new currency must obviously go to immediate and constantly fluctuating
discount when associated with currency convertible into gold.
The oldest law of currency is that bad money drives out the good, for
a population—every individual—will hoard good currency and endeavor
to get rid of the bad. The invariable,effect is the withdrawal of a vast
sum of good currency from circulation, and at once the Government is
forced to print more and more bad paper currency. No candidate and no
speaker in this campaign has disavowed this action of flee Democratic
House. In spite of this visible experience within recollection of this generation, with all its pitiable results, fiat money is proposed by the Democratic
Party as a potent measure for relief from this depression.
The use of this expedient by nations in difficulty since the war in Europe
has been one of the most tragic disasters to equality of opportunity, the
independence of men.
I quote from a revealing speech by Mr. Owen D. Young upon the return
of the Dawes Commission. He stated:
"The currency of Germany was depreciating so rapidly that the industries
and sometimes indeed twice a day. Standing with
n id their wages daily, was
another line of wives and mothers waiting for
o! employees
the unesks
The wife grabbed the paper from her husband's hand and
rtushehemduto the nearest provision store to spend it quickly before the rapid
depreciation had cut its purchasing power in two.
"When the chairman of the syndicate of the German Trade *Unions,
Herr Grasseman. appeared before the Dawes Committee, I put to him
this question: 'What can this Committee do for German labor?'
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"I expected the answer to be some one of the slogans of labor: An eighthour day, old age or disability pensions, insurance against unemployment—
something of that kind. Much to my surpeise the answer came promptly."
"'What your committee must do for German labor is to give us a stable
currency. Do you know, Herr Grasseman said, 'that for many months it
has been impossible for a wage-earner in Germany to perform any of his
moral obligations?
"'Knowing that a child was coming to the family at a certain time, there
was no way by which the husband through effort or sacrifice or savings,
could guarantee his wife a doctor and a nurse when that event arrived. One
knowing that his mother was stricken with a fatal disease could not by
any extra effort or sacrifice or saving be in a position to insure her a decent
burial on her death.
"'Your committee must,' Herr Grasseman added,'just as a basic human
thing, give us a stable currency and thereby insure to the worker that his
wages will have the same purchasing power when he wants to spend them
as they had when he earned them'."
And I ask is that the preservation of opportunity and the protection of
men by government?
Veto of Bill Which Would Have Extended Government Into Personal
Banking Business.
Third—In the last session of Congress, under the peronal leadership of
the Democratic Vice-Presidential candidate, and their allies in the Senate,
enacted a law to extend the Government into personal banking business.
This I was compelled to veto, out of fidelity to the whole American system
of life and government. I may repeat a part of that veto message—and it
remains unchallenged by any Democratic leader. I said:
"It would mean loans against security for any conceivable purpose on
any conceivable security to anybody who wants money. It would place
the Government in private business in such fashion as to violate the very
principle of public relations upon which we have builded our nation, and
renders insecure its very foundations. Such action would make the Reconstruction Corporation the greatest banking and money-lending institution
of all history. It would constitute a gigantic centralization of banking and
finance to which the American people have been properly opposed over a
hundred years. The purpose of the expansion is no longer in the spirit of
solving a great major emergency, but to establish a privilege whether it
serves a great national end or not."
I further stated:
"It would require the setting up of a huge bureaucracy, to establish
branches in every county and town in the United States. Every political
pressure would be assembled for particular persons. It would be within the
power of these agencies to dictate the welfare of millions of people, to discriminate between competitive business at will, and to deal favor and disaster among them. The organization would be constantly subjected to
conspiracies and raids of predatory interests, individuals and private corporations. Huge losses and great scandals must inevitably result. It would
mean the squandering of public credit to be ultimately borne by the taxPayer•I stated further that:
"This proposal violates every sound principle of public finance and of our
Government. Never before has so dangerous a suggestion been made to
our country. Never before has so much power for evil been placed at the
unlimited discretion of seven individuals."
They failed to pass this bill over my veto. But you must not be deceived
This is still in their purposes as a part of the new deal and no responsbils
candidate has as yet disavowed it.
Protective Tariff.
Fourth—Another proposal of our opponents which would wholly alter
our American system of life is to reduce the protective tariff to a competitive
tariff for revenue. The protective tariff and its results upon our economic
structure has become gradually embedded into our economic life since the
first protective tariff act passed by the American Congress under the
administration of George Washington. There have been gaps at times of
Democratic control when this protection was taken away or decreased.
But it has been so embedded that its removal has never failed and never
will fail to bring disaster.
I can conceive a nation builded without it, but we have been built with it.
Whole towns, communities, and forms of agriculture with their homes,
schools and churches have been built up under this system of protection.
The grass will grow in streets of a hundred cities, a thousand towns: the
weeds will overrun the fields of millions of farms if that protection be taken
away. Their churches, their hospitals and schoolhouses will decay.
Incidentally, another one of the proposals of our opponents which IS to
destroy equal opportunity both between individuals and communities is
their promise to repeal the independent authority of the bi-partisan Tariff
Commission and thereby return the determination of import duties to the
old logrolling greed of group or sectional interest of Congressional action
in review of the tariff.
Proposal to Put Government Into Power Business.
Fifth—Another proposal is that the Government go into the power
business. Three years ago, in view of the extension of the use of transmission of power over State borders and the difficulties of State regulatory
bodies in the face of this inter-State action, I recommended to the Congress
that such inter-State power should be placed under regulation by the
Federal Government in co-operation with the State authorities.
That recommendation was in accord with the principles of the Republican
party over the past 50 years, to provide regulation where public interest
had developed in tools of industry which was beyond control and regulation
of the States.
I succeeded in creating an independent power commission to handle
such matters, but the Democratic House declined to approve the further
powers to this commission necessary for such regulation, possibly in order
that they might use it as a matter of agitation in this campaign.
I have stated unceasingly that I am opposed to the Federal Government
going into the power business. I have insisted upon rigid regulation.
The Democratic candidate has declared that under the same conditions
which may make local action of this character desirable he is prepared to
put the Federal Government into the power business. He is being actively
supported by a score of Senators in this campaign, many of whose expenses
are being paid by the Democratic National Committee, who are pledged
to Federal Government development and operation of electrical power.
I find in the instructions to campaign speakers issued by the Democratic
National Committee that they are instructed to criticize my action in
the veto of the bill which would have put the Government permanently
into the operation of power at Muscle Shoals with a draft on capital from
the Federal Treasury of over $100,000,000. In fact,31 Democratic Senators,
being all except three, voted to override that veto. In that bill was the
flat issue of the Federal Government permanently in competitive business.
I vetoed it because of that principle and not because It especially applied
to electrical power. In that veto I stated that I was firmly opposed to the
Federal Government entering into any business the major purpose of which
is competition with our citizens. I said:
"There are national emergencies which require that the Government
should temporarily enter the field of business, but that they must be
emergency actions and in matters where the cost of the project is secondary
to much higher consideration. There are many localities where the Federal
Government is justified in the construction of great dams and reservoirs,
where navigation, flood control, reclamation or stream regulation are of
dominant importance, and where they are beyond the capacity or purpose
of private or local government capital to construct. In these cases, power
is often a by-product and should be disposed of by contract or lease. But
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Financial Chronicle
for the Federal Government to deliberately go Out to build up and expand
such an occasion to the major purpose of a power and manufacturing
business is to break down the initiative and enterprise of the American
neoule: it is destruction of equality of opportunity among our people: it
is the negation of the ideals upon which our civilization has been based.
"This bill raises one of the important issues confronting our people.
That Is squarely the issue of Federal Government ownership and operation
of power and manufacturing business not as a minor by-product but as a
major purpose. Involved in this question is the agitation against the
conduct of the power industry. The power problem is not to be solved by
the Federal Government going into the power business, nor is it to be solved
by the project in this bill. The remedy for abuses in the conduct of that
industry lies in regulation and not by the Federal Government entering
upon the business itself. I have recommended to the Congress on various
occasions that action should be taken to establish Federal regulation of
inter-State power in co-operation with State authorities. This bill would
launch the Federal Government upon a policy of ownership of power
utilities upon a basis of competition instead of by the proper Government
function of regulation for the protection of all the people. I hesitate to
contemplate the future of our institutions, of our Government and of our
country if the pre-occupation of its officials is to be no longer the promotion
of justice and equal opportunity, but is to be devoted to barter in the
markets. That is not liberalism: it is degeneration."
From their utterances in this campaign and elsewhere we are justified
in the conclusion that our opponents propose to put the Federal Government in the power business with all its additions to Federal bureaucracy,
its tyranny over State and local governments, its undermining of State and
local responsibilities and initiative.
Proposal for Inauguration of Self Liquidating Public Works.
Sixth—I may cite another instance of absolutely destructive proposals
to our American system by our opponents.
Recently there was circulated through the unemployed in this country
a letter from the Democratic candidate in which he stated that he "would
support measures for the inauguration of self-liquidating public works such
as the utilization of water resources, flood control, land reclamation, to
provide employment for all surplus labor at all times."
I especially emphasize that promise to promote "employment for all
surplus labor at all times," by the Governor. At first I could not believe
that any one would be so cruel as to hold out a hope so absolutely impossible
of realization to these 10,000,000 who are unemployed and suffering. But
the authenticity of this promise has been verified. And I protest against
such frivolous promises being held out to a suffering people. It is easily
demonstrable that no such employment can be found. But the point I
wish to make h're and now is the mental attitude and spirit of the Democratic Party that would lead them to make such a promise or to attempt it.
It is another mark of the character of the new deal and the destructive
changes which mean the total abandonment of every principle upon which
this Government and the American system is founded. If it were possible
to give this employment to 10,000,000 people by the Government, it would
cost upwards of $9,000,000,000 a year.
The stages of this destruction would be, first, the destruction of government credit, the value of government securities, the destruction of every
fiduciary trust in our country, insurance policies and all. It would pull down
the employment of those who are still at work by the high taxes and the
demoralization of credit upon which their employment is dependent. It
would mean the pulling and hauling of politics for projects and measures,
the favoring of localities, sections and groups. It would mean the growth
of a fearful bureaucracy which, once established, could never be dislodged.
If it were passible, it would mean one-third of the electorate with government jobs earnest to maintain this bureaucracy and to control the political
destinies of the country.
Incidentally, the Democratic candidate has said on several occasions
that we must reduce surplus production of agricultural products, and yet
he proposes to extend this production on a gigantic scale through expansion
of reclamation and new agricultural areas under this plan, to the obvious
ruin of the farmer.
I have said before, and I want to repeat on this occasion, that the only
method by which we can stop the suffering and unemployment is by returning our people to their normal jobs in their normal homes, carrying on
their normal functions of living. This can be done only by sound processes
of protecting and stimulating recovery of the existing economic system upon
which we have builded our progress thus far—preventing distress and
giving such sound employment as we can find in the meantime.
"Slurring Reflection" on Supreme Court.
Seventh—Recently, at Indianapolis. I called attention to the statement made by Governor Roosevelt in his address on Oct. 25 with respect
to the Supreme Court of the United States. He said:
"After March 4 1929, the Republican Party was in complete control of
all branches of the Government—executive, Senate and House. and, I
may add for good measure, in order to make it complete, the Supreme
Court as well.
I am not called upon to defend the Supreme Court of the United States
from this slurring reflection. Fortunately, that Court has jealously maintained over the years its high standard of integrity, impartiality and freedom
from influence of either the Executive or Congress, so that the confidence
of the people in the Court is sound and unshaken.
But is the Democratic candidate really proposing his conception of
the relation of the Executive and the Supreme Court. If that is his idea,
he is proposing the most revolutionary new deal, the most stupendous
breaking of precedent, the most destructive undermining of the very safeguard of our form ofgovernment yet proposed by any Presidential candidate.
Philosophy of Stagnation.
Eighth—In order that we may get at the philosophical background of
the mind which pronounces the necessity for profound change in our
American system and a new deal, I would call your attention to an address
delivered by the Democratic candidate in San Francisco early in October.
He said:
"Our industrial plant is built. The problem just now is whether, under
existing conditions, it is not overbuilt. Our last frontier has long since
been reached. There is practically no more free land. There is no safety
valve in the Western prairies where we can go for a new start. . . .
The mere building of more industrial plants, the organization of more
corporations is as likely to be as much a danger as a help. . . . Our
task now is not the discovery of natural resources or necessarily the production of more goods, it is the sober, less dramatic business of administering
the resources and plants already in hand . . . establishing markets
for surplus production, of meeting the problem of under-consumption,
distributing the wealth and products more equitably and adopting the
economic organization to the service of the people." . .
There are many of these expressions with which no one would quarrel.
But I do challenge the whole idea that we have ended the advance of
America, that this country has reached the zenith of its power, the height
of its development. That is the counsel of despair for the future of America.
That is not the spirit by which we shall emerge from this depression. That
is not the spirit that made this country. If it Is true, every American must
abandon the road of countless progress and unlimited opportunity. I
deny that the promise of American life has been fulfilled, for that means
we have begun the decline and fall. No nation can cease to move forward
without degeneration of spirit.
Nov. 5 1932
I could quote from gentlemen who have emitted this same note of pessimism in economic depressions going back for 100 years. What the Governor
has overlooked is the fact that we are yet but on the frontiers of development
of science and of invention. I have only to remind you that discoveries in
electricity, the internal-combustion engine, the radio—all of which have
sprung into being since our land was settled—have in themselves represented
the greatest advances in America. This philosophy upon which. I presume
the Governor of New York proposes to conduct the Presidency of the
United States is the philosophy of stagnation, of despair. It is the end
of hope. The destinies of this country cannot be dominated by that spirit
in action. I would be the end of the American system.
I have recited to you the progress of this last generation. Progress in
that generation was not due to the opening up of new agricultural land:
it was due to the scientific research, the opening of new invention, new
flashes of light from the intelligence of our people. These brought the
Improvements in agriculture and in industry. There are a thousand
inventions for comfort in the lockers of science and invention which have
not yet come to light; all are but on their frontiers. As for myself. I am
confident that if we do not destroy this American system, if we continue
to stimulate scientific research, if we continue to give it the impulse of initiative and enterprise, if we continue to build voluntary co-operative action
Instead of financial concentration, if we continue to build it into a system
of free men, my children will enjoy the same opportunities that have come
to me and to the whole 120,000,000 of my countrymen. I wish to see
American Government conducted in this faith and in this hope.
PART IV.
Sees Growth of Bureaucracy in Democratic Proposals.
If these measures, these promises, which I have discussed, or these failures
to disavow these projects, this atitude of mind, mean anything, they mean
the enormous expansion of the Federal Government; they mean the growth
of bureaucracy such as we have never seen in our history. No man who
has not occupied my position in Washington can fully realize the constant
battle which must be carried on against incompetence, corruption, tyranny
of government expanded into business activities. If we first examine the
effect on our form of government of such a program, we come at once to
the effect of the most gigantic increase in expenditure ever known in history.
That alone would break down the savings, the wages, the equality of opportunity among our people. These measures would transfer vast responsibilities to the Federal Government from the States, the local governments,
and the individuals. But that is not all; they would break down our form
of government. It would crack the timbers of our Constitution. Our
legislative bodies can not delegate their authority to any dictator, but
without such delegation every member of these bodies is impelled in representation of the interest of his constituents constantly to seek privilege and
demand service in the use ofsuch agencies. Every time the Federal Government extends its arm, 531 Senators and Congressmen become actual boards
of directors of that business.
Capable men cannot be chosen by politics for all the various talents
required. Even if they were supermen. if there were no politics in the
selection of the Congress, if there were no constant pressure for this and
for that, so large a number would be incapable as a board of directors of
any institution. At once when these extensions take place by the Federal
Government, the authority and responsibility of State Governments and
institutions are undermined. Every enterprise of private business is at once
halted to know what Federal action is going to be. It des'roys initiative
and courage. We can do no better than quote that great statesman of
labor, the late Samuel Gompers, in speaking of an exactly parallel situation:
"It is a question of whether it shall be government ownership or private
ownership under control. If I were a minority of one in this convention,
I would want to cast my vote so that the men of labor shall not willingly
enslave themselves to government in their industrial effort."
PART V.
Spirit of Liberalism.
We have heard a great deal in this campaign about reactionaries, conservatives, progressives, liberals and radicals. I think I belong to every
group. I have not yet heard an attempt by any one of the orators who
mouth these phrases to define the principles upon which they base these
classifications. There is one thing I can say without any question of doubt
—that is, that the spirit of liberalism Is to create free men; it is not the
regimentation of men under government. It is not the extension of bureaucracy. I have said in this city before now that you cannot extend the
mastery of government over the daily life of a people without somewhere
making it master of people's souls and thoughts. Expansion of government
in business means that the government in order to protect itself from the
political consequences of its errors or even its successes is driven irresistibly
without peace to greater and greater control of the nation's press and platform. Free speech does not live many hours after free industry and free
commerce die. It is a false liberalism that interprets itself into government
operation of business. Every step in that direction poisons the very roots of
liberalism. It poisons political equality, free speech, free press and equality
of opportunity. It is the road not to liberty, but to less liberty. True
liberalism is found not in striving to spread bureaucracy, but in striving to
set bounds to it. It is found in an endeavor to extend co-operation between
free men. True liberalism seeks all legitimate freedom first in the confident bel ef that without such freedom the pursuit of other blessings is in
vain. Liberalism is a force truly of the spirit proceeding from the deep
realization that economic freedom cannot be sacrificed if political freedom is
to be preserved.
Even if the government conduct of business could give us the maximum
of efficiency instead of least efficiency, it would be purchased at the cost
of freedom. It would increase rather than decrease abuse and corruption.
stifle initiative and invention, undermine development of leadership, cripple
mental and spiritual energies of our people, extinguish equality of opportunity, and dry up the spirit of liberty and progress. Men who are going
about this country announcing that they are liberals because of their promises to extend the government in business are not liberals; they are reactionaries of the United States.
PART VI.
American System Demands Economic Justice as 1Vell as Political
and Social Justice.
And I do not wish to be misquoted or misunderstood. I do not mean
that our government is to part with one iota of its national resources without
complete protection to the public interest. I have already stated that
democracy must remain master in its own house. I have stated that abuse
and wrongdoing must be punished and controlled. It is at times necessary
for the government to protect the people when forces are running against
their control. Nor do I wish to be misinterpreted as stating that the United
States is a free-for-all and devil-take-the-hindermost society.
The very essence of equality of opportunity of our American system
Is that there shall be no monopoly or domination by any group or section in
this country, whether it be business, sectional or a group interest. On the
Volume 135
Financial Chronicle
contrary, our American system demands economic justice as well as political
and social justice; it is not a system of laissez faire.
I am not setting up the contention that our American system is perfect.
No human ideal has ever been perfectly attained, since humanity itself is
not perfect. But the wisdom of our forefathers and the wisdom of the
30 men who have preceded me in this office hold to the conception that
progress can only be attained as the sum of accomplishments of free individuals, and they have held unalterably to these principles.
In the ebb and flow of economic life our people in times of prosperity
and ease naturally tend to neglect the vigilance over their economic rights.
Moreover, wrongdoing is obscured by apparent success in enterprise. Then
Insidious diseases and wrongdoings grow apace. But we have in the past
seen in times of distress and difficulty that wrongdoing and weakness come
to the surface and our people, in their endeavors to correct these wrongs,
are tempted to extremes which may destroy rather than b Id
It is men who do wrong, not our institutions. It Is men who violate the
laws and public rights. It is men, not institutions, which must be punished.
PART VII.
Near Goal to Abolish Poverty.
In my acceptance speech four years ago at Palo Alto I stated that:
"One of the oldest aspirations of the human race was the abolition of
poverty. By poverty I mean the grinding by undernourishment, cold,
ignorance, fear of old age to those who have the will to work."
I stated that:
"In America to-day we are nearer a final triumph over poverty than in
any land. The poorhouse has vanished from among us; we have not reached
that goal, but given a chance to go forward we shall, with the help of God,
be in sight of the day when poverty will be banished from this nation."
Our Democratic friends have quoted this passage many times in this
campaign. I do not withdraw a word of it. When I look about the world
even in these times of trouble and distress I find it more true in this land
than anywhere else under the traveling sun. I am not ashamed of it, because
I am not ashamed of holding ideals and purposes for the progress of the
American people. Are my Democratic opponents prepared to state that
they do not stand for this ideal or this hope? For my part, I propose to
continue to strive for it, and I hope to live to see it accomplished.
PART VIII.
Looks to Youth of America to Resist Any Destruction of Our Fundamental
System.
One of the most encouraging and inspiring phases of this whole campaign
has been the unprecedented interest of our younger men and women. It is
in this group that we find our new homes being founded, our new families
in which the children are being taught those basic principles of love and
faith and patriotism. It is in this group that we find the starting of business
and professional careers with courageous and hopeful faces turned to the
future and its promise. It is this group who must undertake the
guardianship of our American system and carry it forward to its greater achievements.
Inevitably in the progress of time our country and its institutions
will be
entirely in their hands. The burdens of the depression have fallen
on the
younger generation with equal and perhaps greater severity than
upon the
elders. It has affected not only their economic well-being, but has
tended
also to shatter many illusions. But their faith in our country and its
institutions has not been shaken. I am confident that they will
resist any
destruction to our fundamental American system of political, economic
and
social life.
It is a tribute to America and its past and present leaders, and even
more
a tribute to this younger generation, that, contrary to the experience
of
other countries, we can say to-night that the youth of America is
more
staunch than many of their elders. I can ask no higner tribute from my
party
for the maintenance of the American system and the program of
my administration than the support being given by the younger men
and women
of our country. It has just been communicated to me that to-night
at this
time, in every county and almost every precinct of our country,
3.000,000
members of the Young Republican League are meeting for the
support of a
Republican victory Nov. 8—a victory for the American
system.
PART IX.
Proposals of Democrats Represent Profound Change in American
Life.
My countrymen, the proposals of our opponents represent a
change in American life—leas in concrete proposal, bad as that profound
may be,
than by Implication and by evasion. Dominantly in their spirit
they repro'
sent a radical departure from the foundations
of 150 years which have made
this the greatest nation In the world.
This election is not a mere shift
from the ins to the outs. It means determining the course
our nation will
take over a century to come.
My conception of America is a land where men and women
may walk
in ordered liberty, where they may enjoy the advantages
of wealth not
concentrated in the hands of a few but diffused through opportunity
to all,
where they build and safeguard their homes, give to
their children full
opportunities of American life, where every man shall be
respected in the
faith that his conscience and his heart direct him to follow,
where people
secure is their liberty shall have leisure and
impulse to seek a fuller life.
That leads to the release of the energies of men and
women, to the wider
vision and higher hope; it leads to opportunity
for greater and greater service
not alone of man in our country but from our country
to the world. It leads
to health in body and a spirit unfettered, youthful,
eager with a vision
stretching beyond the furthest horizens
with an open mind, sympathetic
and generous. But that must be builded
upon our experience with the past.
upon the foundations which have made our
country great. It must be the
product of the development of our truly
American system and not innovations.
President Hoover in Message by Radio and Telephone
to Voters of California, Oregon and Washington
Asks Support for Republican Program—Will Return
to California to Vote.
An appeal made on Nov. 2 by President Hoover to the
voters of California, Washington and Oregon asking, as a
Californian, "for support in this contest, because in the outcome of this fight for the Republican Party, the people of
the State of California have a great stake." The President
said:
No more serious moment has over brought the people of California and
myself together in counsel as friends and neightors than that which challenges us now. California has been honored by the Nation with its leadership during a period even more dangerous than a great war. I
do not
take seriously the claims of our opponents however duly voiced. that
California will contribute to the responsibility of interrupting that leadership to the Nation which California has itself provided.
3085
In his appeal, broadcast from Washington by telephone
and radio, President Hoover also said:
Our opponents further claim that this great calamity also was due to
increases in the tariff. Pacific Coast States can scarcely agree with this
idea, because they themselves were among the largest beneficiaries from
these increases. . . .
It is not difficult to gauge the shallow hypocrisy of Democratic pretentions of tariff consideration in behalf of the Pacific Coast farmer. The
same story could be told of every farm product—nuts, scrapes, melons,
tomatoes. clery and a score of other commodities.
The intention of the President to return to his home in
Palo Alto, Calif., to cast his vote at the election Nov. 8
was indicated by him in his speech, which we give herewith:
I am speaking to-night to our California Association in this city and
to my gellow-Californians and my friends in Oregon and Washington
over the telephone and radio.
I am speaking to-night with no feeling of being removed or part from
the people at home in our own States. There is no separation of time
or distance which the longing of the heart and mind cannot span between
those whose common experience in daily living, fundamental aspirations
and ideals five common sympathy and common understanding.
The telephone and the radio, which convey my voice to you across the
Continent, are not quicker in their errand than is the spirit which prompts
the message they bring to you.
It is almost 48 years since I came, as a boy, to Oregon, where, under
the tender care of my uncle. I spent seven years amid the glories of the
Willamentte Valley, and it was there that I began to earn my own living.
Still a toy, I. 40 years ago, came to California in search of an engineering
education, with little means beyond the savings I had made. That opportunity was made possible for me by a citizen of California in the endowment
of Stanford University free of tuition.
After having worked in the mines of California with my own hands.
through the same gentle kindliness of another great citizen of California,
I was started on my professional career. A great chance came to me
through the world leadership California had attained in the mining industry
and I participated in responding to the demand of foreign countries for the
training and skill that California had developed in that profession.
I have never gone so far away, nor remained so long, except during the
great war and the Presidency, that the homing instinct has not carried
me back every year to sink more deeply and more firmly the roots of my
being in the fertile soil of California's spiritual and cultural life.
During the four years of the great war. I represented the 'United States
in great enterprises which brought credit and distinction to our country
and to my State. But I was deprived during those years of retu-n to my
home. Fearful that my sons should grow up without that imprint of
California: that they might fall in touch with their own people, they, with
their mother, spent a large part of that period in our California home,
to be educated there in the prime school of democracy—our public schools.
After the war we came home with the hope and long-treasured enterprise of every normal American family of building a new house. I am
not one of those Californians whose heart needs the awakening influence
of absence to quicken his appreciation of the State of his birth or adoption.
When, sooner or later, the time arrives which permits me to do so. I propose to return to my home in Palo Alto to live with my fellow-Californians.
Elevated to Presidency As Son of California.
Elevated to the Presidency of the United States as a son of California,
it has been my task to contend with the greatest peacetime disaster which
has ever come to the American people. That crisis has extended over
every hour and every day for the whole of the last two years. It has not,
so far. permitted me to be away from the nerve centre of the Nation, the
headquarters of a great battle, a distance of more than a night's journey.
Our family has each year made fond plans for return to spend a summer
at our own home for normal change and relief from work, but new crises
and new emergencies have compelled me to remain at the capital of the
nation. The improved situation in the country affords me the deep
satisfaction of coming home to vote, not for the purpose of carrying on
a political campaign amongst my neighbors, who are my friends, but to
satisfy that proper instinct inherent in every American to cast his vote
amongst his neighbors at his own home. • trust 1 may not be prevented
from exercising this privilege.
Support Asked in Present Contest.
My friends, in addressing you to-night, as a Californian, I am asking
you for support in this contect because, in the outcome of this fight for
the Republican party, the people of the State of California have a great
stake. I am addressing the people of Oregon and Washington because
they, too. might be faced with the sacrifices of their most vital interests.
No more serious moment has ever brought the people of California
and myself together in counsel as friends and neighbors than that which
challenges us now. California has been honored by the nation with its
leadership during a period even more dangerous than a great war.
I do not take seriously the claims of our opponents, however loudly
voiced, that California will contribute to the responsibility of interrupting
that leadership to the nation which California has itself provided.
I do not need to remind Californians of the stages by which this crisis
developed. While our opponents lay it largely to the mania of speculation, which, indeed, did contribute. all Californians know the ease with
which our own State has time and again recuperated from such reverses
by a short wait for the solid forces of growth to catch up with the overadvancement and overdevelopment of hope and enterprise.
Claims of Democrats that Calamity Was Due to Tariff.
Our opponents further claim that this great calamity was also due to
increase in the tariff. The Pacific Coast States can scarcely agree to
this idea, because they themselves were among the largest beneficiaries
from these increases.
The Democratic candidate stated at Seattle:
When this tariff was passed, with its outrageous rates, these laws started
us on the road where we now find ourselves, and that is the road of ruin.
He further states:
Here,on the Pacific Coast, it has been a destructive effect in our Orients
trade.
He repeated at Sacramento:
I have called immediate attention to the tariff that has done so much
to destroy foreign trade by making foreign trade virtually impossible.
I called for consideration of means by which trade with the Orient, which
has so largely been destroyed, may be restored.
In the face of the facts, no one has a right to broadcast such statements,
blaming the people of the Pacific Coast. I say after that tariff bill was
passed our exports to China increased from $80,000.000 in the fiscal year
1931 to $93.000,000 in the fiscal year 1932; exports to Japan increased
from $146,000,000 in the fiscal year 1931 to $240.000,000 in the fiscal
year 1932.
3086
Financial Chronicle
Nov. 5 1932
same story could be told of every farm product—nuts, grapes, melons.
And even this is not the whole story, for if we were to analyze the effect
tomatoes, celery, and a score of commodities.
of the decrease in world prices we would find, on a quantity basis, that
Turning to another of our great coast products, 60 cents out of each
our Oriental trade is even larger than is shown by dollar valuation. While
dollar produced in the Pacific Coast Northwest comes from the forest, where
our opponent is ignorant of the facts, he reveals his hostility to the tariffs
higher
wages are paid to lumber workers than in any other district in the
on Pacific Coast products.
world. Since the passage of the tariff act, British Columbian lumber exports
In fact, the true cause of the real calamity which interrupted our entry
Into the United States have almost disappeared, and those from Russia,
Into the road of recovery some 18 months ago Iles deep in the World War
which had rapidly developed into a large trade, have almost ceased.
and its aftermath, the inability of Europe to longer stand the strain without
I would like to repeat here a statement made on Friday, Oct. 28, by Mr.
enormous readjustments of debts, overexpansion of armaments, &c.,
W. D. Euler, former National Minister of Canada and now a member of
which finally brought about economic collapse of 30 nations. In every
the Canadian House of Commons. He said:
quarter of the globe confidence, which is the foundation of the faith on
"I have no particular love for our American friends, so far as business
which the economic structure is bullded, crumbled, business came to a
is concerned, but I would not cut off my nose to spite my face. It may be
standstill; European institutions with a hundred years of financial stability
that after the next election—and it looks that way—the United States Govcollapsed; European social order received such reverses that the whole
ernment may change its attitude and you may find President Roosevelt,
structure of civilization was at one time on the brink of chaos, collapse
if he is elected, making certain proposals, possibly, as to allowing our lumber
to come into that country, or our fish or something else."
and ruin, and we, alone, held the last fortress of stability in the world.
The invasion of this army of fear, destroying confidence, sapping the
And this protection afforded to Pacific Coast industries by the tariff of
defenses of our financial system and stifling our exports of goods to those
1930 and since has become doubly imperative within the last few months,
due to depreciation of currencies as a part of the world collapse.
nations, threatened to bring down our entire industrial and commercial
As many of you know, due to a more than 50% depreciation in Japanese
structure.
currency since last Spring, the competitors of our Pacific Coast fish inThis was the new world war, a war of fearful and invisible enemies.
dustries, which employ nearly 90,000 workers and have an invested capital
Its spectral hosts, recruited in Europe and gathering allies from every
of more than $103,000,000, have been confronted with the gravest peril. As
land, turned their final march of assault upon our shores and even upon
a result of this depreciation of currency, foreign salmon is now quoted at
our Pacific Coast States. As the responsible head of the nation, I. folabout half the price of our Pacific Coast product. Our imports of canned
lowing the historic policy of Our past, abjured partisanship. I called
sardines, which come largely from depreciated-currency countries, were
for National unity in the face of National danger; I set before the leaders
almost 90% larger in September of this year than in September, 1931.
of both parties a complete program of measures for National defense
And other branches of our important Pacific Coast industries, such as
and recovery. To the credit of my countrymen, they answered this call
canned vegetables, dried fruits, beans, pulp, iron and steel may also be
with almost complete unanimity. Many patriotic Democrats in the
threatened with a similar peril.
Congress aligned themselves with patriotic Republicans under the banner
In the light of this grave emergencY, I have asked the Tariff Commission
of a united nation.
to investigate the situation immediately and, if the findings warrant, I shall
I need not recite the long series of over 30 measures initiated by my
at once increase the protection to these industries. The fact is, we on the
Administration to sustain wages and employment; to prevent hunger and
Pacific Coast are faced with the necessity to consider increases in the tariff
cold among millions of men, women and children; to hold impregnable our
instead of the proposals of the Democratic party to reduce them.
Government credit as the basis of all stability to maintain the structure of
Our citizens should not be fooled by promises of local Democratic canprivate credit system through the Federal Reserve System, the Recondidates not to reduce these tariffs.
struction Finance Corporation, the Land banks, the Agricultural banks,
Every man who knows the Constitution, the character, platform and the
Home Loan banks, the Farm Board; the expansion in public works; the
traditional policy of the Democratic party knows perfectly well that these
mobilization of co-operation in all parts of our country, and a score of
products
will rot on the farms and in our forests of the Pacific Coast under
other activities.
such a regime. Furthermore, it must be obvious that the progress the
Their whole purpose was to hold the nation steady in this crisis and
Pacific Coast has made from the crisis in certain industries toward upward
to maintain the validity of the deposits of our people in the banks, the
movement of the last four months would wither under any such proposal.
savings, the insurance policies of our people, and to hold the jobs for those
We would go back to conditions of depression worse than that through
who had work, to care for the distressed, and keep the economic machine
which we have passed.
until
the
hurricane
was
passed.
functioning
These actions saved this
I would call your attention to another phase of the tariff question—
nation from a score of years of destructive degeneration.
that is the proposal of negotiated reciprocal tariff by the Democratic
Nor were these dangers just general to the nation. These invasions
party. I have just examined again the protests which were lodged with the
swept from State to State and from city to city throughout the country.
State Department at the time of the increases in our tariff two years ago.
It was a battle not alone against a nationwide startling growth of fear, but
I find that protests were made by 40 different countries. They are nothing
against local and separate dangers in which, at times, each one of our
new. They occur with every tariff bill, and the Democrats always ventilate
Pacific Coast States has been the object of acute anxiety and direct action
them as being threats to our national welfare just as the Democratic canon the part of the Federal Government in their defense.
didate did while in our State.
One great difficulty which arose to halt our progress was the development by the Democratic House of Representatives and the allies which
I find, however, that these protests in iarge part relate to items of interest
to the Pacific Coast States: Wool, hides, tomatoes, lettuce, celery, onions,
they had secured to themselves of a series of disastrous measures for vast
potatoes, carrots, cattle, hogs, butter, cheese, eggs, canned goods, canned
raids on the public treasury, the issuance of greenback money, and other
fish, sugar, preserved cherries, oranges, lemons, raisins and dried fruits,
interferences with the currency. The flank attacks had to be fought,
apples, olive oil, beans, peas, cement, pottery manufactures, iron and steel
coincident with fighting a hundred battles on the whole economic front
manufactures, lumber and oil.
and they delayed the effectiveness of our potent measures for recovery
No reciprocal agreement could be made with these countries at all except
until the Democratic House of Representatives and their allies adjourned.
at the expense of the Pacific Coast States. Because we have determined
Our opponents at no time have proposed a single constructive measure
to
protect the civilization upon which the Coast States rest, and their
emergency.
to meet this
distance from States of predominant interest to that party, the Democratic
Finally confidence beina restored we have been able to mobilize
candidate tells us that we have been unjust to foreign nations and that we
Since the adjournment of Congress, a million men have returned to work.
have brought calamities on an other States and the world by our insistence
new courage and enterprise have come into the lives and souls of men, and
upon your protection.
again America has begun the march forward which she has moved over these
To indicate the practical application of our measures to protect the
150 years. The poignant question which citizens are asking to-day is
Pacific Coast from destruction in this crisis and to advance that recovery.
whether we are going to check this progress and subject harried business,
I may cite a few of the direct applications to California, Oregon and
employment and agriculture to a new term of waiting and uncertainty by
Washington.
the threat of new policies which are destructive in character both in the
short and long view of our nation.
Advances By National Credit Corporation and Reconstruction Finance
I cannot better illustrate the measures of defense and attack than to
Corporation.
point to a few of their applications to our Pacific Coast States. Bear in
The National Credit Association and the Reconstruction Corporation
mind that the head of a nation has the obligation to exert equal concern
at one time advanced over $150.000,000 to some 409 banks, including
for the necessities of every State. I use this illustration merely to bring
branches. in the State of California; to 62 in Oregon, and to 99 in Washinghome to my neighbors and friends in the West the practical application to
ton. This sum has been largely repaid. Those banks have more than
them of the vast program we have put in motion.
3,000,000 depositors every one of whom was helped by these loans which
No man can say I was unmindful of the Pacific Coast States when, imwere made solely for the purpose of protecting their deposits and savings,
mediately upon taking office and in the face of every prophesy and every
and of preventing undue pressure on borrowers from these banks during
precedent of political disaster to Presidents who demand tariff revisions. I
the period of panic.
called Congress into special session for upward revision of all farm tariffs,
Had these advances not been made your entire banking system would
including the products of every farm, orchard, ranch and garden in Calhave collapsed beyond any doubt. But this action has tided over the panic,
ifornia and the other Pacific Coast States. And, further, that I secured
re-established the banking system of the Pacific Coast again on a
has
the support of Republican States not interested in the setting up of the oil
sound basis, and has kept practically every family from despair at loss
and lumber tariffs, so that we gained for these industries and their workers
of their deposits.
a much needed relief to their unemployment.
I may call attention to the fact that during this period loans were made
Protective Tariff Held Necessary for Pacific Coast Slates
to 24 different building and loan associations on the Pacific Coast and to
There are no States in the Union where prosperity is so dependent upon
five mortgage concerns, with a view to preventing foreclosure of mortgages
the maintenance of the protective tariff as in those of the Pacific Coast.
on the homes and farms of hundreds of thousands of people.
There is scarcely a commodity now produced within your borders that could
The Federal Farm Board, created by my activities, has advanced to
produced
on
a
be
commercial basis to-morrow if we were to take down
California farm co-operatives a total of $31,298,000 to prevent their collapse
the barriers which prevent a flood of goods outside our boundaries from
in this time of distress and thus aided hundreds of thousands of families.
the North, the South, across the Atlantic and the Pacific.
On top of this, in order to aid in employment, the Federal Government
You are familiar with the proofs. I need recite but a few.
has expended during my administration on and let contracts for public
For instance, Southern California should be interested to know lemons
works, buildings, roads and other items, $100,000,000 in California.
can be laid down in New York from Europe at $3.50 a box; while through
$45,000,000 in Oregon and $50.000,000 in Washington. This has provided
tariff protection California is able!to sell her product for $6.50. Petaluma
work for hundreds of thousands.
is interested that the import of over 3,000,000 dozens of eggs has dropped
Beyond this, again, the Reconstruction Corporation, under provisions
for advancing employment through reproductive works, has authorized
to 300,000 this year under Republican tariff, and through the recent order
connection
with
dried eggs upon the determination of facts by
I signed in
advances to great projects in the Pacific Coast States which were held in
the Tariff Commission we saved that industry.
abeyance because of the credit paralysis, such as the San Francisco-Oakland
New Zealand butter could be sold at this moment over the whole Pacific
Bridge, the bringing of Colorado River water into Southern California—
which enterprises will finally expend upward of 3400,000,000 for the invigoraCoast at less than 14 cents per pound; similar grades of butter bring 22 cents
tion of the industries of California and the whole of the nation.
per pound because of the tariff. Against Asiatic beans the tariff has afforded,
years,
a
nearly
100%
protection
two
for
the
Pacific
Coast
last
during the
Beyond this the Reconstruction Corporation has authorized loans to
States on the Pacific Coast for the care of distress among unemployed.
farmer. Raisins and figs of Fresno and prunes of the Willamette and Santa
Under these measures which I have inaugurated we have set up new
Clara Valleys would sell in the common markets of the East at rates that
agricultural credit banks on the Pacific Coast in order that there shall be
would, despite the low level of present prices, reduce returns to those prono question as to the ability of our farmers to borrow money for productive
ducers by nearly 50%•
purposes. We have set up new Home Loan Banks in these States In order
The price of California wool in the Boston market is 38 cents to-day,
that we may protect and expand the activities of the building and loan
whereas your Australian competitors could sell the same kind of wool there
associations and savings banks, not alone to protect home owners from
for less than 22 cents—and the difference is due solely to the tariff.
Democratic pretenforeclosures but to free capital with which new homes can be built and
It is not difficult to gauge the shallow hypocrisy of
The
Pacific
Coast
farmer.
new labor employed.
of
the
sions of tariff consideration in behalf
Volume 135
Financial Chronicle
These great actions by the use of Federal credit to tide Pacific Coast
States across the trough of this depression reflect directly and indirectly
into every home and fireside in those States.
These measures which I have cited are but a partial picture of the reasons
why I have not been able during the whole of these four years to renew
the friendships and those associations in my home State, or even to have
the pleasure of attending the Olympic Games.
In all the stress of these past years, especially in these past few weeks
when we have been battling that the rehabilitation of this nation may be
carried forward without interruption, nothing has been more heartening
than the messages of confidence and hope that I have received from the
mobilized women of California.
I realize that when difficulties come of the character we have been meeting
it is the women who first feel the effects of economic pressure on their
shoulders, the burden of thousands of small economies that must be made
for the preservation of the home and the safety of the children. They are
proving the great steadying influence in the nation, the great preservers.
They will refuse to risk the fate of their families through the abandonment of those safeguards which we have Minded during the past 150 years
or to risk the programs of reconstruction we have inaugurated, by the
adoption of the proposals of the Democratic party which will inherently
destroy it. I should like to pay a tribute to the organization of your young
voters who are fighting this battle with us to such telling effect.
Allegations By Democrats Regarding Investment in Oil Company and Refusal to
Employ White Workers at Ranch.
I have been requested by the Republican State Committee to comment
upon two calumnies being circulated by the Democratic agents in my home
State. I had not supposed it necessary, but I can do so categorically.
As to the first calumny, I have not, since I entered public service 15
years ago, owned any interest, directly or indirectly, in any kind of business
outside of the boundaries of the United States, including any concern
producing, transporting or distributing oil. Twenty years ago I invested
$5,000 in the California Oil Co. and I still have it.
The second defamation that I am asked to denounce which has been
industriously circulated is to the effect that the ranch at Wasco, my
interest
in which I disposed of two or three years ago, refused to employ white
workers. To support this cheap political trick, a notice was prepared and
hung on the gates and photographed for circulation despite repeated public
statements of its fraudulent character by various substantial men.
Terms Pacific Coast States an Empire to Itself.
I might add one further note of interest to the Pacific Coast States.
Repeatedly in these last four years in illustrating what may be accomplished
under the American system of government, and by a virile people, I have
pointed out publicly and privately, time and again, the great example of
the Pacific Coast States, an empire to itself—where 8,000,000 People have
settled in a period of less than 85 years, have builded a state of society in
which there has been a degree of comfort, an addition to the sum total
of human possessions, a diffusion of wealth, and a security that is not
exceeded by any similar area on the face of the globe, no matter how old.
And where, with it all, they have advanced in education and intellectual pursuits to the degree that tim total number of students in institutions of higher learning amongst only 8,000,000 people, is greater than
the attendance in similar institutions in the whole of Great Britain with
its population of 45,000.000.
I am asking you should vote to maintain our American institutions
which have given you this well-being, not halt them because of temporary
dissatisfactions with forces outside the control of our Government.
And
it is my purpose to-night to bring to your minds that this march and
progress should not be halted nor destroyed.
I do not hesitate to ask you to so express your citizenship next Tuesday
as to insure the continuance of this progress, which over the years has made
California what it is. It must not deter me from the solemn duty ofappealing
to you to vote on the basis of the constructive measures and policies of
the Republican party which have protected you from great disasters in
the past and have turned the country toward recovery, and not allow
your votes to be inspired by misrepresentations and general and special
appeals to discontent with temporary forces forced upon us from abroad
rather than your own well-being.
Gov. Roosevelt in Boston Declares Immediate Need of
Hour is Immediate Relief For Unemployed—ThreePoint Program—Reduction in Hours and Working
Days Per Week Advocated.
"Immediate relief of the unemployed is the immediate need
of the hour," said Gov. Franklin D. Roosevelt, Governor of
New York, in an address delivered in Boston on Oct. 31.
Gov. Roosevelt, the Democratic nominee for President went
on to say, "we must do all we can in the way of emergency
measures, but no mere emergency measures of relief
are
adequate." A 3-point program for immediate relief was
enunciated by Gov. Roosevelt, viz.
"The first principle is that this nation owes a positive duty
that no
one shall be permitted to starve.
"Second, in addition to providing emergency relief, the Federal
Government should provide temporary work wherever possible. In the national
forests, on flood prevention and on the development of waterway projects
already authorized and planned, thousands can be given at least temporary
employment.
"Third, the Federal Government should expedite the actual construction of public works already authorized. The country would be horrified
to know how little construction work authorized by the last Congress and
approved by the President has already been undertaken. Much of it will
not be under way until next summer."
Besides advocating a "co-ordinated system of employment
exchanges, the advance planning of public works, and unemployment reserves (the two first-named under the leadership of the Federal Government and the third primarily
the responsibility of the several States) Gov. Roosevelt declared that "in addition there has been long overdue a
reduction of the hours of work, a reduction of the number
of working days per week." "'The proposals," he added
"are specific and far-reaching. To advocate a less drastic
program would be to misread the lessons of the depression
3087
and be indifferent to the country's welfare." Gov. Roosevelt's address follows in large part
I hope I have learned the lesson that reason and tolerance have their
place in all things, and I want to say frankly that they are never so
appropriate as when they prevail in a political campaign.
I say this with some feeling because I express widespread opinion
when I note that the dignity of the office of President has suffered during
the past week. President Hoover began this campaign with the same
attitude with which he has approached so many of the serious problems
of the past three years. Ile sought to create the impression that there
was no campaign, just as he had sought to create the impression that all
was well with the United States.
But the people of the country spoiled these plans. They demanded that
the administration which they placed in power four years ago, and which
has cost them so much, give an accounting. They demanded this accounting in no uncertain terms.
This demand of the people has continued until it has become an overwhelming, irresistible drift of public opinion.
As this storm of approval for the Democratic policies has grown, several
moods have come over the utterances of the President and his supporters.
First, they were plaintively apologetic, then they were indignant at
Congress.
Finally, they have in desperation resorted to the breeding of fear.
At first the President refused to recognize that he was in a contest.
But as the people have responded to our program with enthusiasm, he
recognized that we were both candidates, and then his dignity died.
At Indianapolis he spoke of my arguments, misquoting them. But
at Indianapolis he went further. He abandoned argument for personalities. My friends, I shall not yield to the temptation to which the President of the United States has yielded. On the contrary, I reiterate my respect for his person and for his offices.
In the presence of a situation like this I am tempted to reply in kind.
I shall not yield to the temptation to which the President yielded. On
the contrary, I reiterate my respect for his person and his office. But
I shall not be deterred even by the President of the United States from
the discussion of grave national issues and submitting to them the truth
about their national affairs, however unpleasant that truth may be.
The ballot is the indispensable instrument of a free people. It should
be the true expression of their will. It is intolerable that the
ballot
should be coerced, whatever the form of coercion, political or economic.
The autocratic will of no man, be he President, or general, or captain
of industry, shall ever destroy the sacred right of the people themselves
to determine for themselves who shall govern them.
An hour ago, before I came to this arena, I listened in on the radio
to the President's speech. He warned the people against a change;
against a "new deal," saying that it would mean the total abandonment
of every principle upon which this Government and the American system
is founded. My friends, my "new deal" aims not to change these
principles, but to put those principles into effect.
Secure in their undying belief in this great tradition, the people of
this country, the employed, the partially employed and the unemployed,
those who are fortunate enough to retain some of the means of economic
well-being, and those from whom these cruel conditions have taken everything, have stood with patience and fortitude in the face of adversity.
I
take off my hat to them.
There they stand. And they stand peacefully, even when they stand
in the breadline. Their complaints are not mingled with threats.
They
are willing to listen to reason at all times.
Throughout this great crisis the stricken army of the unemployed
has
been patient, law-abiding, orderly. Why? Because they are hopeful.
But the party that claims as its guiding tradition the patient and
generous spirit of Abraham Lincoln, when confronted by an opposition
which
has given to the nation an orderly and constructive campaign for the
past
four months, has descended to an outpouring of misstatements, of
threats
and intimidation.
Charges Republicans Crack "Whip of Pear."
The administration attempts to undermine reason through fear—to tell
us that the world will come to an end on Nov. 8 if they are not returned
to power for four years more. It sadly misconceives the good sense and
the self-relianve of our people.
They tell us further that the present administration will be unable
to hold in check the econctnic forces that threaten us in the period between election and inauguration. They threaten American business and
American workers with dire destruction from November to March.
They crack the "whip of fear" over the backs of American voters not
only here, my friends, but across the seas as well.
Ambassador Mellon, the representative of the United States at the Court
of St. James, who should represent the whole American people there,
every State; the whole nation; Democrats, Republicans and Independents
also; he appeals to an English audience on English soil for the support
of a party candidate 3,000 miles away, and invokes the same sinister threat
and seeks to spread it to the rest of the civilized world. I read
somewhere in my history books of a Roman Senator who threw himself into
a chasm to save his country. These gentlemen are of a new breed.
They
are willing to throw their country into a chasm to save themselves.
Another means of spreading fear is to spread it through certain
Republican industrial leaders. I have said, and without being controverted,
that 5,000 men in effect control American industry. These men, possessed
of such great power, carry likewise a great responsibility. It
is their
duty to use every precaution to see that this power is never used to
destroy
or limit the sound public policy of the free and untramelled exercise
of
the power of the ballot.
And yet, in violation of this duty some of these 5,000 men
who control
Industry are invading the sacred political rights of those over
whom they
have economic power. They are joining in the chorus of
fear initiated
by the President, by the Secretary of the Treasury, by the
Ambassador
and the Republican National Committee.
They are telling their employes that if they fail to support
the administration of President Hoover, such jobs as these
employes have will
be in danger.
Such conduct is un-American and worthy of censure
at the ballot box.
I wonder how some of these industrial leaders would feel if
somebody
else's •baby had the measles; in other words, if some political
leader
were to seek reprisal against them for employing such coercive
means?
Let us fight our political battles with political arguments, and not prey
upon men's economic necessities.
But after all, their threats are empty gestures. You know and I know
that their industries have been sliding down hill. You know, and I know.
that the whole program of the present administration has been directed
only to prevent further slipping. You know, and I know that therein
lies the difference between the leaderships of the two parties.
You know, and I know that the Democratic party is not satisfied
merely with arresting the present decline. Of course we will do that
3088
Financial Chronicle
to the best of our means. But we seek also to build up and improve—
to put these industries into a position where their wheels will turn once
more and where opportunity will be given to them to re-employ the
millions of workers they have laid off under the administration of
President Hoover.
It is not enough merely to stabilize—to lend money. It is essential
to increase purchasing power in order that goods may be sold. There
must be people capable of buying goods in order that goods may be
manufactured and sold. When that time comes, under our rule gentlemen
who now protest will be there doing business at the old stand as usual.
The American voter, the American working man, the mill worker of
New England, the miner of the West, the railroad worker, the farmer,
and the white collar man will answer their silly, spiteful threat with
his ballot,on Nov. 8.
As I have pointed out before in a good many States and during many
weeks, the fruits of this depression, like the fruits of war, will be
gathered in future generations. It is not, my friends, the pinch of
suffering and the agony of uncertainty that the grown-up people are
now feeling that count the most; it is the heritage that our children
must anticipate that touches an even more vital spot. But it is not to-day
alone that counts. Under-nourishment and poor standards of living and inadequate medical care of to-day will make themselves felt for fifty
years to come.
I stood in Topeka, Kan., and said to the farmers that the tragic effects
of 40-cent wheat and 9-cent corn and 6-cent cotton is not so much what
the farmer himself must feel when he sees the labor of his hands wasted
on a product that does not yield him a living. The bitterness of it all
is what it means for his children.
It is the same for you—you workers in industry. There are none of
us who do not hope that our children get a better break than we have
had—that the chance for an education, for a reasonable start in life,
may be passed on to our children—an opportunity for them that is built
out of the hard work of our own hands. We want them to have opportunity for profitable character building—decent, wholesome living—
good work and good play. We want to know somehow that while perfection does not come in this world, we do try to make things better from
one generation to another.
This depression with its past unemployment has swept away much of
the material which we had hoped to use. Grim poverty stalks through
the land. It embitters the present and darkens the future.
Against this enemy every ounce of effort and every necessary penny
of wealth must be raised as a defense. And my friends, it is not that
we lack the knowledge of what to do. The tragedy of the past years has
been the failure of those who were responsible to translate high-sounding
plans into action. There's the rub.
Leadership in Washington Stands Convicted.
The present leadership in Washington stands convicted, not because
it did not have the means to plan, but fundamentally because it did not
have the will to do. That is the reason that the American people on
Nov. 8 will register their firm conviction that this administration has
utterly and entirely failed—failed to meet the great emergency of
modern times.
It has been well said that the American people are a heart-sick people—
"hope deferred maketh the heart sick."
Let me offer you an example—a very practical, a very definite, a
very unanswerable example. As Governor Smith would say: "Let's look
at the record." In 1921 and 1922 there was a depression; very mild,
compared with the present one—but nevertheless, a depression. There
developed a large President of the United States, President Harding, in
September 1921, called the "President's conference on unemployment," the
first of a long and disastrous series of Presidential conferences. This
conference employed a number of experts, who prepared a highly competent report. It happens that this report did not appear until after the
depression had ended. It was published in 1923—six years before the
present depression began.
It said many sound things. It proposed the control of credit expansion by the banks, the prevention of over-expansion of industry, the
control of public and private construction in boom periods, and security
against the suffering that might come from unemployment.
It was a good report, my friends. Sound and intelligent people worked
on it and contributed to it. The chairman of that unemployment conference in 1921 was the then Secretary of Commerce of the United States—
Secretary Herbert Hoover.
The President complains because I have charged that he did nothing
for a long time after the depression began. I reply that charge is
true. But I go further. I add to that charge, that from the time the
report of Secretary Hoover was published in 1923, for the six years that
preceded the crash in 1929, he did nothing, to put into effect the provisions advocated, in 1923 against the possibilities of future depression.
Instead of that, during those six years, he participated in encouraging
speculation, when not only the sound business brains of the country were
saying that it should be discouraged, but in spite of the fact that his own
report in 1923 said that depressions are certainly in part due to over
speculation. Ile failed to prepare by positive action against the recurrence of a depression. On the contrary—the exact contrary—he intensified the forces that made for depression by encouraging speculation.
Program of President's Commission.
He did not do what in his 1923 report he said ought to be done. And
on top of that he did what he said ought not to be done. Now, my
friends, we are considering unemployment to-night, and I am going to
start by setting forth the positive policy which the President's commission urged, under the leadership of the Secretary of Commerce, said should
be done.
It was a five-point program: And as a program it was good.
First, it urged that Government should reduce expenditures for public
works during periods of prosperity and that during those periods Governments should build up reserves with which to increase expenditures during periods of unemployment and industrial depression. This was not
done—not one penny's worth. No reserves were built up for the rainy
day.
Second, the report said, that the Federal Government should work
with the railroads in the preparation of a long-time constructive program.
The Republican administration did not give effect to this proposal.
Instead of working with the railroads, to consolidate their lines and put
them on a sound economical basis, the administration waited until the
depression had laid them low, and then had nothing for them, already
heavily in debt, but to lend them more money.
Third. the report propoaed the setting up of safeguards against too
rapid inflation. conseauently too rapid deflation of bank credit.
As I have afromn, the President and his Secretary of the Treasury went
to the other extreme and encouraged speculation.
Nov. 5 1932
Fourth, the report recommended an adequate system of unemployment
insurance. No one in the administration in Washington has assumed
leadership in order to bring about positive action by the States to make
this a reality. Some day, under our leadership, we are going to get it.
Fifth, it suggested an adequate system of public employment offices.
But when Senator Wagner introduced a bill to establish the employment
offices, President Hoover vetoed the measure which Chairman Hoover
sponsored.
Business men who believe in sound planning—these men of action—
must feel that there is danger to the country in the continuance of a
leadership that has shown such incapacity, such ineptitude and heedlessness to sound business principles.
We have heard much about fact-finding. With all its pretentious belief
in facts and figures, this administration has largely used the process of
fact-finding merely to gain time. Usually they get even the facts too
late, and when they get the facts they -misinterpret them. What we need
in Washington is less fact-finding and more thinking.
Immediate Relief Need of Hour.
Immediate relief of the unemployed is the immediate need of the
hour. We must do all we can in the way of emergency measures. But
no mere emergency measures of relief are adequate.
Our goal, our unremitting objective, must be to secure permanence of
employment to the workers of America. Without stability of employment
for our workers and without a balanced economy between agriculture
and industry there can be no healthy national condition.
We have two problems, first, to meet the immediate distress; and,
second, to build up on a basis of permanent employment.
As to "immediate relief": The first principle is that this nation owes a
positive duty that no one shall be permitted to starve.
This means that, while the immediate responsibility for relief rests
with local, public and private charity, in so far as these are inadequate,
the States must carry the burden, but whenever the States are unable
adequately to do so, the Federal Government owes the positive duty of
stepping into the breach.
The present Republican administration early took a position against
the frank recognition of this principle. It was only because of the insistence of Congress and the unmistakable voice of the people that the
President yielded and approved the relief bill this Summer.
Second, in addition to providing emergency relief, the Federal Government should provide temporary work wherever possible.
In the national forests, on flood prevention and on the development
of waterway projects already authorized and planned, thousands can be
given at least temporary employment.
Third, the Federal Government should expedite the actual construction
of public works already authorized. The country would be horrified to
know how little construction work authorized by the last Congress and
approved by the President has already been undertaken. Much of it will
not be under way until next Summer.
In the field that looks further ahead, we call for a co-ordinated system
of employment exchanges, the advance planning of public works, and
unemployment reserves. Who, then, is to carry these measures and see
them through?
The first is clearly and inescapably a task of the Federal Government,
although it will require the loyal and intelligent co-operation of State
and local agencies throughout the land. To thie Federal action, therefore, I pledge my administration.
The second, that of the advance planning of public works, again calls
for a strong lead from the Government at Washington. I pledge my
administration to the adoption of this principle both in the enterprises
of the Federal Government and for the construction within the several
States which is made possible by Federal aid, and I shall urge State and
local authorities throughout the nation to follow this example.
The third, that of unemployment reserve, must under our system of
Government be primarily the responsibility of the several States. This,
the Democratic platform, on which I stand, makes entirely clear.
Reduction in Irorking Hours.
In addition there has been long overdue a reduction of the hours of
work, a reduction of the number of working days per week. The great
justifications of modern industry are the cheapening of production and
the lessening of the toil of men.
These fruits will be dead fruits, unless men earn enough so that they
can buy the things that are produced and have the leisure for
the
cultivation of body, mind and spirit which the great inventions are supposed to make possible.
This means that Government must set an example in the case of
its
own employes. It means also that Government must exert its
persuasive leadership to induce industry to do likewise.
Here, then, is a program of long-range planning which requires
prompt
and definite action and the co-operation of Federal, State and
local Governments as well as of forward-looking citizens throughout the land.
The
proposals are specific and far-reaching. To advocate a less
drastic program would be to misread the lessons of the depression and
be indifferent
to the country's welfare.
Would Restore Purchasing Power of Nation.
But there is one final objective of my policy which is
more vital,
more basic than all else. I seek to restore the purchasing
power of the
nation. That and only that will put people back to work.
We need to restore our trade with the world. Under
Republican leadership we have lost it and the President of the United States
seems to be
indifferent about regaining it.
Moreover, we need to give to 50,000,000 people who live
directly or
indirectly upon agriculture a price for their products in moss of the
cost of production. That will give them the buying power to start
your
mills and mines to work, to supply their needs. They
cannot buy your
goods because they cannot get a fair price for their products. You
are
poor because they are poor.
I favor—and do not let the false statements of my opponents
deceive
you—continued protection for American agriculture. I favor more than
that. I advocate measures to give the farmer an added benefit, called
a tariff benefit, to make the tariff effective on his products.
The most enlightened of modern American business msn likewise favor
such a benefit. An excellent example is your own fellow-citizen, Mr.
Harriman, President of the Chamber of Commerce of the United States.
who has recently proclaimed a plan for the restoration of agriculture, not
unlike my own. President Hoover does not favor a program of that
kind. Ile has closed the door of hope to American agriculture, and when
he did that he closed the door of hope to you also.
He says proudly that he has effectively restricted Immigration in
order to protect American labor. I favor that, but I might add that in
the enforcement of the immigration laws serious abuses have been re.
Volume 135
Financial Chronicle
But he does not tell you that by permitting agriculture to fall into
ruin millions of workers from the farms have crowded into our cities.
These men have added to unemployment. They are here because agriculture is prostrated. A restored agriculture will check this migration.
It will keep these farmers happily at home. It will leave more jobs for
you. It will provide a market for your products. That is the key to
national economic restoration.
Accomplishments Through Joint Action of President and Congress.
One word more. I have spoken of getting things done. Now the way
we get things done under our form of Government is through joint action
by the President and the Congress. The two branches of Government must
co-operate. This is necessary under our Constitution, and I believe in
our Constitutional Government.
President Hoover cannot get action from the Congress. He seems unable to co-operate. He quarreled with a Republican Congress and he
quarreled with a half Republican Congress. He will quarrel with any
kind of a Congress. He cannot get things done. This is something
you must consider. The next Congress will certainly be Democratic. I
look forward to co operation with it. I am confident that I can get things
done through it because for four years I have had to work with a Republican Legislature.
I have been able to get things done in Albany by treating the Republican Legislature like human beings and as my associates in Govern.
ment. I have said that I look forward to the most pleasant relations with
the next Democratic Congress, but in addition to that let me make it
clear that on the great majority of national problems which ought not
to be handled in a partisan way, I expect to have pleasant relations with
Republicans in the Senate and the House of Representatives as well as
with Democrats.
We, meaning thereby the President and' the members of both parties
in the National Legislature, will, I am confident, work effectively for
the restoration of American economic life.
I decline to accept present conditions as inevitable or beyond control.
I decline to stop at saying "It might have been worse."
I shall do all I can to prevent it from being worse, but—and here
is the clear difference between the President and myself—I go on to
pledge action to make things better.
The nation has the capacity to make things better. The nation wants
to make things better. The nation prays for the leadership of action to
make things better. That will be shown in every State one week from
to-morrow. We are through with "delay," through with "despair," ready
and waiting for better things.
Senator Glass Criticizes Secretary Mills' Method
Replying to Former's Speech.
in
A criticism of the method undertaken by Secretary of
the Treasury Mills in replying to the speech of Senator
Glass was made by the latter incident to the delivery of his
speech. The Senator said:
"I am advised that President Hoover's Secretary of the Treasury to-day
obtained an advance copy of my speech by some means which it does not
concern me to explain, but which involves a breach of confidence disdained by every honorable newspaper man in the nation.
"I am also told Mr. Mills, having procured a copy of my speech in this
way, is to answer me on the radio to-night. If that is his conception of
courage and courtesy in debate, I am glad it is his and not mine.
"Had Secretary Mills desired a debate with me in the open, where each
could give and take blow for blow, he would have experienced no difficulty
In getting accomodated; but if he prefers the backstairs method of controversey he is at liberty to make that choice.
"I prefer to keep my rapier clean arid play the game as gentlemen in
their code of ethics require. I thank all who have been patient enough
to hear me to-night."
The speech of Senator Glass and the reply of Secretary
Mills is given elsewhere in this issue of our paper.
3089
Aside from the prodigious amount of there foreign securities crowded
in our bank portfolios and exhausting the investment capabilities of the
people, our Federal Reserve Banking System for five years or more gave
more attention to stabilizing the finances of Europe than it gave to the
requirements of American commerce and industry. . . .
The very spirit and text of the Federal Reserve Act indicate that the
System was set up solely for the purpose of rendering assistance to our own
commerce and industry. Its credits ard currency were intended to rest
upon business transactior.s in the United States; but under the Chairmanship and predominant influence of "the greatest Secretary of the Treasury
since Alexander Hamilton" the rediscount operations of the System were
submerged in the open-market traxsactiors in an unwise, if not actually
lawless, attempt to cure the financial maladies of European nations.
Woise than these things, in utter definace of the text and shameless
disregard of the spirit of the Federal Reserve Act, the facilities of the
Federal Reserve Banks were further misused. With Mr. Andrew W.
Mellon as Chairman of the board and the predominant figure, in a single
six-month period in 1929 10 of the largest banks in New York alone were
given access to $750,000,000 of Federal Reserve credits under the 15-day
provision of the Act. Plainly interpreted, this means that a large, if not
a greater, part of this sum was being loaned to brokers for stock-gambling
purposes.
With respect to the origin of the panic Senator Glass
commented in part as follows:
Mr. Mills says our "panic" originated in Europe with the failure of a
great bank in Austria 18 months after the "panic" started in New York.
Mr. Mills ascribes our financial troubles over here to England's abandonment of the gold standard, which took place exactly two years, lacking
one month, after the enveloping crash here described on the New York
Stock Exchange. Thus, according to the President and his chief Cabinet
minister, our depression and consequent consternation originated in Austria,
was communicated to Germany, and found its last expression in England's
temporary relinquishment of the gold standard. . . .
If we had no "panic" in this country that paralyzed banking and business
long before the events described by Mr. Mills, what did we have? We
had "panic" that had no relation to foreign financial transactions: panic
that produced cessation of business and frightful decrease in industry
of all kinds; panic that threatened starvation and created humiliation and
made unwilling beggars of people who were proud to work; and the only
thing that Europe had to do with the situation was to stand by in consternation while we erected a tariff wall which literally wrecked our trade
with that Continent and with the nations of every other continent, causing
these nations in a spirit of retaliation to place tariffs and embargoes against
the products of our fields and factories, so that our foreign trade In two
years dropped from $9,640,356,268 to $4,513,561,337.
The remarks of Senator Glass were also directed toward
the Glass-Steagall Bill, and adherence of this country to
the gold standard, and what he had to say thereon follows
in part:
The next legislative contrivance was the Glass-Steagall bill, made desirable by Presidential representations to the country that we needed to
"broaden the base" of Federal Reserve credit facilities. . ..
Even this Glass-Steagall bill, when brought to us by spokesmen for
the President, was saturated with hazardous provisions. It would have
permitted member banks to unload their frozen assets on the Federal
Reserve banks while retaining their liquid assets in their own possession.
It would have made eligible for rediscount at the Federal Reserve banks
as many billions of foreign securities as the banks might be willing to
receive. It would have permitted the big banks to absorb the credits
of the Reserve banks to the practical exclusion of the smaller banks. As
in the case of the Reconstruction Finance Corporation bill, every safeguard
In the Glass-Steagall bill was written after the measure had left the Treasury
building.
In Republican official quarters it has been proclaimed that this GlassSteagall bill kept the United States on the gold standard. I assert that
this is false in fact and implication. I assert that those of us responsible
for legislation never had the remotest intimation from the Administration
that the gold standard was in danger. I assert that the President and
accredited spokesmen bitterly denounced the mischievous talk. I repeat
the assertion that anybody who now says anything to the contrary of what
is alleged here is either ignorant of the facts or indifferent to the truth. . . .
If the President and the Secretary of the Treasury had knowledge of the
fact that this country was faced with imminent disaster by being "driven
off the gold standard in two weeks," and failed to so advise the banks
and private investors who purchased nearly $4,000,000,000 of these Federal
securities, they were guilty of amazing dishonesty. . . .
Senator Glass Declares Statements of President Hoover
Are "Flagrantly Contrary" to Facts—Holds President Has Converted Treasury Into "National
Pawnshop"—Asserts Misuse of Facilities of Federal
Reserve Banks—"Every Safeguard in Glass-Steagall
Bill Written After It Left Treasury—Those Responsible for Legislation Had No Intimation From
Senator Glass undertook a summary of some of the business
Administration Gold Standard Was in Danger."
losses, bank failures, &o., during the present Administration,
A speech in which he declared that President Hoover at as follows:
Listen to this recital in response to the amazing declaration of President
the expense of the taxpayers "has converted the Treasury at
and Mr. Mills that a Democratic Administration cannot be trusted
Washington into a National pawnshop and infected the Hoover
to conduct a government.
central Government with the fatal germ of financial social1. There have been more bank failures in the United States nearly every
ism," was delivered by Senator Carter Glass at Washington month under the Hoover Administration than there were in the entire
years of Woodrow Wilson's Administration, although four Years
on Nov. 1 over a nation-wide hookup of the National Broad- eight
of the Wilson regime had to contend with the convulsions of a World War.
casting System. Referring to the President's utterances
Years
2. There were almost as many business failures in the past 3
Senator Glass asserted that "the statements made as well under Hoover as there were in the entire eight-year period of the Wilson
Administration.
as the conclusions deduced, are flagrantly contrary to the
3. The amount of business losses in the past 3% years under Hoover
facts, thus presenting a picture to the American people was approximately $1,000,000.000 more than the business losses in the
entire eight years of the Wilson Administration—an excess greater than
which is far away from the truth and which, in a vital sense the
entire bonded indebtedness of the United States before the World War.
exaggerates conditions only that the President might magnify
4. There were 102,556 business failures under Hoover involving a loss
under
his own alleged achievements in correcting situations and of $2.645,476.000. The losses averaged $19,000,000 per month month
Wilson, including four years of World War, and $58,000,000 per
saving the country." Senator Glass asserted that "with under
Hoover in three years of profound peace.
insatiable avarice, great banking institutions in the United
5. But 69 National banks failed during the whole eight years under
Wilson,
whereas 800 National banks have failed in three years and two
States, through their lawless affiliates with their highmonths under Hoover.
pressure salesmanship, brought over and unloaded on the
6. The last three years of the Wilson Administration witnessed the
investing public of America billions of dollars of foreign failure of eight National banks, whereas the past month witnessed the
failure
of 12 National banks under Hoover.
securities, now practically worthless." Senator Glass added:
7. In the last three years of Wilson's Administration 201 State banks
The total amount has been computed as high as 516,000,000.000. equal
to the total national indebtedness of the United States up to IWO, and
twice as great as the credit facilities of our Federal Reserve Banking System.
The record warrants the assertion that the Republican administration at
Washington, through its Department of State, was consequentially responsible for the flotation of these worthless foreign securities. . .
failed, whereas in the last three years and two months under Hoover 4.061
State banks failed. Bank failures during three years under Hoover caused
the jeopardy or actual loss of $4,198,358,000 to depositors.
A reply by Secretary of the Treasury Mills to the speech
.of Senator Glass is referred to elsewhere in our issue to-day.
3090
Financial Chronicle
The speech of Senator Glass as published in the New York
"Times" follows .in full:
No person of sensiollity could welcome the task of directly assaulting
the record of persons in high places with whom he was associated in the
business of Government at Washington. Especially is it repugnant to an
accepted sense of propriety, except in imperative circumstances, to contravene statements made by the President of the United States or his more
responsible Cabinet Ministers. It is because these imperative circumstances have arisen that I am venturing now to examine certain assertions
made from public rostrums by President Hoover and disseminated throughout the country on the eve of a vitally important national election.
Amazing Ingratitude.
I do this with less hesitation because the action of the President in making
statements
these
involves an amazing degree of rank ingratitude toward
those in the legislative branch of the Government at Washington whose
non-partisan co operation he constantly implored during the entire last
session of Congress and even for weeks before the Congress convened.
Moreover, the statements made as well as the conclusions deduced, are
flagrantly contrary to the facts, thus presenting a picture to the American
people which is far away from the truth and which, in a vital sense, exaggerates conditions only that the President might magnify his own alleged
achievements in correcting situations and saving the country.
Presidential Fables.
To speak with suitable restraint, I may say that neither Hans Christian
Andersen nor Karl Grimm, in appealing to the fancies of children, ever
overtaxed his imagination as President Hoover repeatedly has done in his
endeavor to regain the lost favor of the American people. Contrasted with
his speech of acceptance and his addresses at Des Moines, Cleveland and
elsewhere, Aesop's Fables deserve to rank as an accurate history of things
that actually occurred
That I have delayed, to this late moment, drawing these fabulous statements into question, is due only to the fact that I have been precluded from
platform participation in the pending political campaign by reason of
illness,
Predominant Causes of Distress.
It is not too late to make a searching review of economic events with
a view of determining the predominant causes of the prevailing depression,
nor to examine the nature of the legislative and administrative expedients
which were devised for recovery. Bad as were the expedients adopted, they
are not as vicious as originally proposed by the administration. At the
expense of the taxpayers, President Hoover has converted the Treasury at
Washington into a national pawn-shop and infected the central Government
with the fatal germ of financial socialism. All semblance of State initiative
and community pride has been extinguished, and the minions of Federal
bureaucracy are given full sway to distribute huge sums of money picked
from the pockets of the American people. Instead of being the servant and
instrument of the people, with certain delegated powers, the Washington
Government has been made the creditor and overlord of the States, with
power to coerce and subjugate these subdivisions of the nation at the will
of the party in power whenever pay-day approaches or an election needs
to be won.
The President and his Cabinet Ministers insist that the collapse in
the United States "was superinduced by economic convulsions abroad,"
and that this country was the unavoidable victim of European disturbances.
I insist that the very reverse of the President'a contention is largely
true. I assert that the improvidence, if not the direct profligacy, of incompetent Republican administrations at Washington is predominantly
responsible for the deplorable situation in which we find ourselves to-day.
With the advent of the Harding administration in 1921 with its shameless
disorder and corruption, which every sensitive citizen would like to forget,
we were started forth on a prolonged era of cheap money and unrestrained
speculation in every conceivable pursuit of business. President Coolidge
actually boasted of the cheap credit policy of the Republican party at a
time when caution was essential. Those in authority manifested their
Impatience and discontent with existing institutions by setting up bureau
upon bureau to expand expensive Federal activities, and agency after
agency to enable groups of people readily to increase the measure of their
indebtedness; and, not satisfied with the almost domestic expansion, they
induced our people to engage in an orgy of foreign speculation.
Foreign Security Flotations.
I judge from one of President Hoover's speeches that he himself made
a considerable purchase of the utterly debased currency of Germany, and
exhibited at Cleveland his holding of depreciated German marks as a
warning against the monetary "printing press." Thousands of others were
induced to speculate in the depraved currencies of foreign nations. With
insatiable avarice, great banking institutions in the United States, through
their lawless affiliates with their high-pressure salesmanship, brought over
and unloaded on the investing public of America billions of dollars of foreign
securities, now practically worthless. The total amount has been computed as high as $16,000.000.000. equal to the total national indebtedness
of the United States up to 1929, and twice as great as the credit facilities
of our Federal Reserve Banking System. The record warrants the assertion that the Republican administration at Washington, through its
Department of State, was consequentially responsible for the flotation of
these worthless foreign securities.
The State Department, without sanction of law, constitutional or statutory, and in utter disregard of all precedent, assumed the function of passing on these loans. It required the great international bankers and their
affiliates to submit to the Government every one of these projected foreign
flotations for objection or approval. The State Department, when called
to task for this usurpation of authority, set up the childish, technical distinction between the term "approval" and the term "unobjected." The
administration's ablest spokesman on the floor of the United States Senate
frankly admitted that, in the circumstances, the State Department's
failure to object to these foreign loans was tantamount to approval. Individual investors and bankers imputed moral responsibility to the Government; and unscrupulous expert salesmen were enabled to sell these highinterest-bearing, but now worthless, foreign securities in competition with
our own State, municipal, industrial and commercial securities. Undeniably, they filled the portfolios of interior banks,sometimes by coercion,
with this immobile junk, so that when the crash came these banks were
in state of paralysis, utterly unable to respond to the legitimate requirements of their respective communities. There resulted an era of bank
failures unprecedented since the foundation of the Republic, unapproached
by financial collapse in any other nation on the globe. The State Department at Washinton was implicated in the disaster.
Warnings Disregarded.
The official explanation given to the Seante of the United States was so
manifestly puerile and untrue that, by unanimous vote, regardless of party
division, that body rejected it and warned the State Department to desist
from this dangerous and ruinous usurpation of authority. Secretary Sthn-
Nov. 5 1932
son treated the unanimously expressed sense of the United States Senate
with a contempt that entitled him to impeachment.
As I speak, I have before me a written communication from the late
J. P. Cotton, transmitting a list of foreign loans passed on by the State
Department within 14 months theretofore, aggregating 81,193,000,000.
Responsible persons warned the State Department that:
"The supply of American funds for investment purposes is not inexhaustible; and when the overload of those prodigious foreign flotations
begins to sour or default in the hands of those attracted by the will-of-thewisp of Government approval the authorities at Washington may then
relaize that my criticism is neither partisan or unfriendly, but is a reasonable
protest against transferring financial transactions from the reahn of sound
economy to the bogs and pitfalls of evil politics."
This and similar protests and warnings were contemptuously treated by
President Coolidge and the Secretary of State. They evidently expected
the Congress and the public to accept the silly and insufficient excuses
offered by them.
In the earliest centuries, when that Florentine spendthrift called Lorenzo
the Magnificent held sway over Continental Europe the average diplomat
thought there was nothing better in life than a successful lie. The State
Department at Washington had not yet learned that there are few things
worse in life than a stupid lie.
Dangerous Banking Activities—Misuse of Federal Reserve Facilities.
Aside from the prodigious amount of these foreign securities crowded
in our bank portfolios and exhausting the investment capabilities of the
people, our Federal Reserve Banking System for five years or more gave
more attentien to stabilizing the finances of Europe than it gave to the
requirements of American commerce and industry. Under the chairmanship and dominance of "the greatest Secretary of the Treasury since Alexander Hamilton" the system through member banks and the Reserve
Banks loaned hundreds of millions of dollars abroad. It is asseted upon a
reliable sfuthority that our Reserve Banks endorsed millions of dollars
of acceptances for foreign banks—a thing unprecedented, I am advised,
in the whole history of central banking.
The very spirit and text of the Federal Reserve Act indicate that the
system wls set up solely for the purpose of rendering assistance to our own
commerce and industry. Its credits tvid currency were intended to rest
upon business transactions in the United States; but under the chairmanship
and predominant influence of "the greatest Secretary of the Treasury since
Alexander Hamilton" the rediscount operations of the system were submerged in the open-market transactions in an unwise, if not actually
lawless, attempt to cure the financial maladies of European nations.
Worse than these things, in utter defiance of the text and shameless
disregard of the spirit of the Federal Reserve Act, the facilities of the
Federal Reserve Banks were further misused. With Mr. Andrew W.
Mellon as chairman of the board and the predominant figure, in a single
six-month period in 1929 10 of the largest banks in New York alone were
given access to 8750,000,000 of Federal Reserve credits under the 15-day
provision of the act. Plainly interpreted, this means that a large, if not
au
p gr
rp
tes
er: part of this sum was being loaned to brokers for stock-gambling
At the very peak of speculative orgies, when stocks were quoted at 75
times their earning capacity, incredible reserve sums were utilized for stockgambling purposes. The open-market provision of the act was put in for
emergency purposes, with no particle of expectation that it would ever be
Put to stock-gambling uses; but under the benign chairmanship and influential administration of Secretary Mellon the system was largely driven
away from its commercial and industrall purposes and made a medium for
speculative investment activities.
Protest after protest was uttered by those who had vital responsibility
in the enactment of Federal Reserve legislation. Warning after warning
was given that the foreign security loans floated with the assistance of the
State Department at Washington and the speculative use of the Federal
Reserve facilities and the riot of gambling in real estate mortgages and commodities of all kinds, especially in stocks and bonds on the exchanges,
were heading this country toward the brink of ruin. President Hoover in
his Cleveland address contemptuously asserted that he "did not notice any
Democratic Jeremiahs" during this period. It was not certain that he or
Coolidge wanted to be bothered with the warning of prophets.
We have seen that Mr. Coolidge approved the lawless foreign activities
of his State Department. The country was literally shocked when this
President of the United States figuratively jumped into the stockpit and
Cheered on the gamblers when brokers' loans had reached the stupendous
figure of $3,810,023.000l He said there was no cause for concern; and that
these loans were far from excessive. He said this when Paul M. Warburg,
among the foremost international bankers in the world, was earnestly
warning the country against the inevitable consequences of this insane riotof speculation. Said Mr. Warburg:
If a Stock Exchange debauch is quickly arrested by prompt and determined action, it is not too much to hope that a shrinkage of inflated stock
prices may be brought about without seriously affecting the wider circles
of general business. If orgies of unrestrained speculation are permitted
to spread too far, however, the ultimate collapse is certain not
only to
affect the speculators themselves but also to bring about a general depression involving the whole country.
There was a Jeremiah for Mr. Coolidge and Mr. Hoover to heed! But
they heeded not. Mr. Coolidge's response to the warning was to declare
that he could see nothing except "a natural expansion of business in the
securities market, and nothing unfavorable in it." And the wildest of the
gamblers agreed with him. One of them told Federal Reserve authorities
to go to hell, and another immediately sought to have me disciplined in .
Virginia for seeking to curb wicked speculation with the trust funds of the
Federal Reserve System.
Dr. Ralph W. Robey, lecturer in banking at Columbia University and a
financial writer of distiction, ascribed to President Coolidge tremendous
responsibility for the continued upswing of the market;and so the "debauch"
spoken of by Mr. Warburg continued at a rapid pace. A little later, President Hoover and Secretary Mellon followed Mr. Coolidge into the stockpit
as cheer leaders for the speculators, until these brokers' loans reached the
stupendous total of 85,000,000.000l Thus, credits and currency were
sucked into this financial maelstrom from every hamlet between the two.
oceans and drawn from foreign nations.
An English "Jeremiah."
Yet in the face of this Ineradicable record the President and his Secretary
of the Treasury now talk about our troubles having originated in Europe.
The fact is that our excesses contributed to European distress, Viscount
Phillip Snowden, Chancellor of the British Exchequer, as well as other
foreign Ministers of Finance, complained bitterly of the draughts on their
resources to feed the flames of stock gambling in this country. In a budgetry talk, exactly 20 days before the October break, Mr. Snowden warned
the Biritsh public against being drawn into these transactions to the serious.
embarrassment of their own country.
Volume 135
Financial Chronicle
Origin of Panic.
Long after his inauguration as President, Mr. Hoover, the superman,
could see nothing alarming in the situation. Ten days before the crash of
Oct. 24 1929, his Secretary of Commerce petulantly "denied rumors that
a severe depression in business and industrial activity was impending."
The day after the crash President Hoover was quoted as saying:
The
fundamental business of the country is on a sound and prosperous basis."
Six months after the crash President Hoover said: "I am confident we have
now passed the worst. We have succeeded in maintaining confidence and
courage. We have avoided monetary panic and credit stringency. These
dangers are behind us."
Secretary Mills insists that our troubles started in Europe. Here was a
financial crash right under his nose in New York City, involving a loss of
$82,423,000,000 in security values alone, to say nothing of its blighting
effects on general business. In its pitiful consequences the disaster reached
into the remotest recesses of our business and social fabric, ruining as well
the fortunes of thousands of adventurous people in foreign lands( Yet Mr.
Mills says our "panic" originated in Europe with the failure of a great
bank in Austria, 18 months after the "panic" started in New York. Mr.
Mills ascribes our financial troubles over here to England's abandonment
of the gold standard, which took place exactly two years, lacking one
month, after the enveloping crash here described on the New York Stock
Exchange. Thus,according to the President and his chief Cabinet minister,
our depression and consequent consternation orignated in Austria, was
communicated to Germany, and found its last expression in England's
temporary relinquishment of the gold standard.
Unemployment and Breadlines.
Ten million idle men were tramping the streets and countrysides of the
United States before the bank failure in Austria and before the abandonment
or the gold standard by England. Miles of breadlines ranged along the
streets of our towns and cities, and free-soup kitchens were as numerous
as the leaves in Vallombrosa before anybody could know of the financial
difficulties in Austria or of the temporary expedient at the Bank of England.
Panic and Tariff.
If we had no "panic" in this country that paralyzed banking and business
long before the events described by Mr. Mills, what did we have? We had
"panic" that had no relation to foreign financial transactions; panic that
produced cessation of business and frightful decrease in industry of all
kinds; panic that threatened starvation and created humilitation and made
unwilling beggars of people who were proud to work; and the only thing that
Europe had to do with the situation was to stand by in consternation while
we erected a tariff wall which literally wrecked our trade with that continent and with the nations of every other continent, causing these nations
in a spirit of retaliation to place tariffs and embargoes against the products
of our fields and factories,so that our foreign trade in two years dropped
from $9,640,356,268 to $4,513,561,337. So eager were Mr. Hoover and
his Republican legislatiors for this tariff wreckage that he called Congress
in extraordinary session for the avowed purpose of equalizing agricultural
priviliges with the benefits of protected industry, only to wind up
the
session by multiplying the inequalities and exacting further
enormous
tribute from agriculture.
The Smoot-Hawley-Grundy tariff act constitutes moral insensibility
as
well as economic insanity. It will take its place in history as a
legislative
and administrative enormity, purchased from the Government at
Washington by the contributors to Mr. Hoover's campaign fund. Equally
with
the frightful financial debacle, this measure is responsible for
ment. Along with that intolerable legislative atrocity known asunemploythe Farm
Board Act, these measures have reduced the American farmer to the
point
of penury.
Thus, I have traced, with unerring accuracy, I think, the causes of
the
panic and the inevitable consequences. These were not caused by the
World
War or by European disturbances, as alleged by Mr. Hoover. We
had in
1922 largely gone through the processes of liquidation and of
deflation in
financial, commercial and industrial enterprise. The country was
prepared to go forward in an orderly fashion, when the speculators
seized the
reins, and, under the stimulating influence and applause of
Republican
administration at Washington, embarked us on a career of adventure
and
Inordinate inflation that carried us over the precipice. The
World War
had no more to do with this, nor Europe either, than the wars of the
Phoenicians or the conquest of Gaul by Caesar. It was caused by
the combination of factors which I have recited in the course of this address.
The Remedies Attempted.
Now, what were the remedies proposed and applied; where
rests the
responsibility or credit for them, and in what degree have
they been or
are they likely to be effective?
The President of the United States was pathetic and
importunate in
his plea for "non-partisan co-operation" in the effort to
rescue business
after he could no longer escape the conclusion that something
needed to
be done. For months and months Mr. Hoover seemed utterly
ignorant
of the stupendous disaster which had overtaken the country. From
time
to time he persisted in telling us that "prosperity was just
around the
corner," and his Department of Commerce statistician figured
it out on
paper accordingly.
Psychological Poultices.
However, when the President was actually brought to his
senses and
made to see that men and women were shivering in the cold;
that unemployment and actual distress had reached alarming proportions,
he resorted
to the use of psychological poultices. He summoned railroad
executives
and captains of industry to a mass meeting at the White House and
seemed
to think he had exacted from these gentlemen an explicit agreement
not
ti curtail employment or to reduce wages. In the existing situation
the
very suggestion betokened an utter misunderstanding of
economics, if not
mental aberration. The simplest person on earth should have
known that
men would not be employed if their services were not needed,
and that
wages would not remain unmolested if there was no market for the
products
of fields and factories.
It was predicted at the time of the White House announcement that
if
these railroad executives and captains of industry made the promise imputed to them by the President they had exposed themselves to the
bitter
charge of bad faith whenever curtailment and reduction should
occur.
And so it happened. Responsible officials of the American Federation of
Labor made exactly this complaint because there occurred curtllment
of
employment of 6,230,000 laborers with an annual wage or cash
earning
power of $7,507,155,000, together with a loss of work for 2,670,000
trained
persons with a cash earning power of $5,564,280.000. This made a
total
of 8,900,000 persons out of employment, with a loss of $13,071,435,000
in earning power, since that famous White House conference. Thus this
psychological device proved futile; and only 10 days ago the country
witnessed the humiliating spectacle of the President of the United States
begging railroad executives not to reduce wages further until after
the
Presidential election.
Then we had the moratorium on foreign debts, which was supposed to
prove a psychological blessing. Thome having intimate knowledge of the
3091
situation knew perfectly well that a moratorium or repudiation was inevitable and that if this country should not grant it some of our foreign
debtors would be compelled to take it; and so the psychological effect of
that device soon faded away, and confidence was not yet restored.
Next we had the pitifully amusing expedient of organizing mass meetings
to persuade against runs on banks and hoarding. Since this silly movement
was more calculated to disturb confidence than to assuage fear, it was soon
laughed out of existence.
Taxpayer—National Credit Corporation—Reconstruction
Finance Corporation.
The next expedient in order was the White House announcement that
certain Eastern bankers in the money centres had been induced by the
President generously to promote a National Credit Corporation, making
itself responsible for the use of $500,000,000 to acquire the frozen assets
of threatened banks and prevent continued failures. It was suspected at
the time that this corporation would be permitted, as was subsequently
proposed, to dump its frozen assets in the lap of the Federal Reserve
Banking System. Those of us responsible for legislation in Congress set
our faces severely against anything of the kind: but it is now disclosed that
before taking a step in the premises these Eastern bankers, at a secret
meeting with the President of the United States and his Secretary of the
Treasury, at Mr. Mellon's apartment in Washington, were definitely promised that a government agency would take over the acquired assets of the
corporation. This meant, in plain terms, that this "burden" of these
generous Eastern bankers was to be unloaded on the shoulders of the taxpayers of the United States. And, in a round-about way, this has been
done; because the Reconstruction Finance Corporation, using exclusively
the public funds, has already taken over millions of dollars of these assets.
I assume that nobody will deny the accuracy of this statement; if any
one does, I refer him to the statement of Percy H. Johnston, President of
the Chemical Bank & Trust Co. of New York City, before the Senate
Banking and Currency Committee on March 25 1932, as recorded on page
147, Part 1, of the hearings. There Mr.Johnston definitely asserts that he
was present when the President of the United States and Secretary Mellon
made this agreement.
This National Credit Corporation did practically nothing for months
until prodded into action by a threatened Congressional inquiry. The
Senate Committee could not even persuade the Chairman of the Corporation to come to Washington and tell us what they were doing. Great
banks were failing at its very doorsteps in the East; 825 were tottering in
three months throughout the country. Hence the President was compelled
by this inaction to suggest a revival of the old War Finance Corporation,
organized under the Wilson Administration to assist industries that were
contributing to the conduct of the war. The Hoover idolaters acclaim his
great genius for devising this instrument of relief. He had not one thing
on earth to do with it. The act is almost a complete paraphrase of the act
drawn by the Treasury Department under Mr. Wilson. Coincidentally,
the very man appointed by me as director of the War Finance Corporation.
with the approval of Mr. Wilson, was picked to run this revised edition of
this resurrected corporation and was worked to the point of death. While
the legislation was pending it was a profusely and repeatedly avowed fact
that but for the unstinted co-operation of Democratic leaders in the House
and Senate, nothing whatsoever could have been done. Now all this is
forgotten in order to magnify the alleged achievements of the man who
besought this aid.
Even at that the bill as sent up from the Treasury was saturated with
unsound and dangerous provisions, amounting to an assault upon the
very integrity of our banking system. Under its terms $2,000,000,000 of
hazardous loans were made eligible for purchase and rediscount at the
Federal Reserve banks. Those of us who adhered to safe and sound banking
Principles were compelled, up to the last moment, to resist this and other
questionable suggestions.
I assert that there is not a safeguard in the Reconstruction Finance
Corporation Act, few as they are, that was not written into it by a Democrat or Progressive-Republican after the bill came from the Treasury
Department. I assert that but for the constant vigilance and active
co-operation of the Democratic leaders in House and Senate this revived
War Finance Corporation could not have got on the calendar of either
branch of Congress. This was repeatedly asserted by Administration
spokesmen in terms of grateful appreciation at the time; and we are now
justified in resenting the attempt of President Hoover, in sheer campaign
desperation, to appropriate to himself and his Party whatever credit may
attach to this irregular and unorthodox method of relief, the permanent
effectiveness of which is far away from being established. In my 30 years
of public life I have never witnessed such an exhibition of political ingratitude.
I shall not attempt here to discuss the seemingly profligate waste of
the taxpayers' money in fabulous schemes, few of which would be dreamed
of in the ordinary course of business. I will say, however, that the President will never be able to justify this waste of public funds by craftily
imputing responsibility to an alleged "Democratic majority" on the spending board. We are told that the astounding loans of this board, apparently
reeking with political significance, will not cost the American taxpayers
a dollar, but few people should be simple enough to credit this preposterous
assertion. The very fact that not one dollar of the corporation's debentures has been offered to private investors, but every dollar of them unloaded
on the Federal Treasury, is a clear portent of the burden which the taxpayers of the country will be compelled to endure. Some of its loans have
been so opportunely timed and so geographically distributed as to make
some people wonder why the Republican Party should trouble itself to
raise a campaign fund when the Reconstruction Finance Corporation,
as in the case of California and other debatable States, is acting with such
singular promptitude and precision. Only in the final reckoning may the
country know whether it has definitely helped or largely disorganized and
crippled legitimate business.
An Attempt to Debase the Currency—Glass-Steagall Bill.
The next legislative contrivance was the Glass-Steagall bill, made desirable by Presidential representations to the country that we needed to
"broaden the base" of Federal Reserve credit facilities. This executive
misrepresentation of the credit situation persisted in the face of the fact
that the Federal Reserve Board, justified by authentic reports from every
member bank of the System, officially declared that $3,000,000,000 of
commercial paper in excess of outstanding discount was available for loans,
together with $5,000,000,000 of Federal securities held by the member
banks. Back of this eligible paper was a supply of gold sufficient to expand
bank loans by $4,000,000,000! I stated the fact to the Congress and the
country. The ensuing results justify every prediction we made. Not a
dollar has been loaned to a single bank under the first provision of the act,
relating to associations of banks; and but 39 limping banks out of a membership of 7,600 were aided in a comparatively insignificant way. Thus the
utter vices of Mr. Hoover have created alarm over our credit structure is
mathematically demonstrated.
Even this Glass-Steagall bill, when brought to us by spokesmen for
the President, was saturated with hazardous provisions. It would have
Burdening
the
3092
Financial Chronicle
permitted member banks to unload their frozen assets on the Federal
Reserve banks while retaining their liquid assets in their own possession.
It would have made eligible for rediscount at the Federal Reserve banks as
many billions of foreign securities as the banks might be willing to receive.
It would have permitted the big banks to absorb the credits of the Reserve
banks to the practical exclusion of the smaller banks. As in the case of
the Reconstruction Finance Corporation bill, every safeguard in the GlassSteagall bill was written after the measure had left the Treasury Building.
Gold Standard.
In Republican official quarters it has been proclaimed that this GlassSteagall Bill kept the United States on the gold standard. I assert that
this is false in fact and implication. I assert that those of us responsible
for legislation never had the remotest intimation from the Administration
that the gold standard was in danger. I assert that the President and
accredited spokesmen bitterly denounced the mischievous talk. I repeat
the assertion that anybody who now says anything to the contrary of what
is alleged here is either ignorant of the facts or indifferent to the truth.
Anybody who says this country was within two weeks of being "driven
off the gold standard': actually impeaches the official integrity of the
President of the United States and of the Secretary of the Treasury. The
latter official, from Jan. 1 1932 to June 30 1932, with the approval of the
President, sold to the banks and private investors in the United States
$3,709.213,450 of Treasury notes and certificates of indebtedness, redeem
able in gold at the Treasury. Of this amount $2,014,224,050 represented
one-year certificates, and $1,034,152,000 were redeemable in 90 days from
issue. If the President and the Secretary of the Treasury had knowledge
of the fact that this country was faced with imminent disaster by being
"driven off the gold standard in two weeks," and failed to so advise the
banks and private investors who purchased nearly $4,000.000.000 of these
Federal securities, they were guilty of amazing dishonesty; they were
cheating the investing public; and could not even appropriate to themselves the solace of future oblivion, because their names would have been
remembered in terms of anathema for a century to come.
Despite this suggested infamy the authentic figures and facts show that
no such situation existed as that which politicians have conjured up for
discreditable campaign purposes in order to exaggerate the executive prowess
of a candidate for the Presidency. The figures are conclusive: and persons
who repeat this campaign hoax do not seem to realize that they are impeaching the common honesty of the President of the United States and
the Secretary of the Treasury.
Mr. Hoover insists that the very essence of prosperity for the nation is
public confidence; and, that being so, just behold the plight of this country
when the foremost publicist of Continental Europe felt justified in cabling
to the metropolitan press of America that Mr. Hoover's gold-standard
assertion at Des Moines, repeated at Indianapolis. was in such direct
conflict with assurances given last winter and spring that the banks and
responsible officials of France were finding it impossible to attach importance
to any statement from the President of the United States.
"A Strutting Trumpeter."
In this connection, the newspapers report that Secretary Hurley of the
War Department has openly proclaimed from the public rostrum that
should the Democratic Party succeed at the November election "the United
States will be driven off the gold standard." For the sake of decency, it
must be hoped that Mr. Hurley did not say that. If he did say it, he was
guilty of a dangerous calumny. If he said it, he is totally unfit for official
responsibility, and the President should have booted him out of office
before breakfast time of the following day. Indecency, even in a political
campaign, has its limitations. This alleged declaration, if made by this
strutting trumpeter of the President, was not far short of treason to the
country.
Unemployment Relief.
I come now to the last so-called relief measure. It bears the name of
Wagner. the Democratic Senator from New York, who spent days and
nights and weeks and months in reviewing the problems involved. Other
members of the Senate of both parties contributed thought and effort to
the measure. It was a composite bill, reflecting the varying judgment
of many minds.
No one man, be he the President of the United States or a legislative
leader, can truthfully appropriate all the credit attaching to this relief
Act. No group of men of either party can with good grace make any such
claim: and it is amazing to those who would prefer to respect the President
of the United States that he should parade over this country and pretend
that he and his Party only are entitled to praise for this yet undemonstrated
relief Act.
If I were asked to pick out the three men in Washington more responsible
for legislative relief to the unemployed and to the destitute of the country,
I should never name President Hoover. I'd name Robert Wagner, Democratic member of the Banking and Currency Committee of the Senate:
Bob La Follette, Republican Chairman of the Senate Committee on Manufactures. and Bob Bulkley. junior Senator from Ohio. This does not mean
that there were not many Senators and Representatives in Congress,
Republicans and Democrats, who devoted their very souls to the problem.
Mover Not In the Picture.
I have given you briefly a recital of the causes of panic and depression
In the United States, and have told you of the expedients employed in
Washington to arrest the ravages. Nowhere in this picture can you
discern the martial figure of Herbert Hoover in death-grapple with the
panoplied forces offinancial, commercial and industrial disaster! Naturally,
the President's eyes were too intently gazing on foreign convulsions to
permit him clearly to see the wreckage at his feet. With great agitation
he noted the failure of the Bank of Austria and ignored the 6.208 banks
which toppled in this country before the Austrian debacle. Ile saw a
temporary renunciation of the gold standard in England on Sept. 21 1931,
and imagined that it caused the failure of over 5,000 banks In the United
States before Sept. 21 1931.
Secretary Mills tells us that there was no "panic" in this country before
the bank failure in Austria and the momentary abandonment of the gold
standard in Great Britain. He thinks the greatest era of bank failures
and of losses to depositors since the foundation of the Government came
about in a quiet way without business agitation or loss of confidence until
a bank failed in Austria and until England went off the gold standard!
Reduction in Government Expenses.
But now let me turn to the flagrant charges made by the President and
Secretary Mills against the Democratic Party.
They say the Administration was obstructed in its efforts to reduce
Federal expenses by the resistance of Democratic leaders in Congress.
effort made by the two houses of
I assert that, on the contrary, every
Congress to reduce expenses of Government was resisted by the President's
direction until
own Cabinet Ministers. No attempt was made in this
nearly three years after Mr. Hoover was inaugurated. Meanwhile, rank
expendireflected
in
enormously
increased
was
extravagance
Government
Nov. 5 1932
tures. Mr. Hoover seemed to think the nation could squander itself into
prosperity. His slogan for the Government and the populace was "Spend!
Spend! Buy! Buy!" Budgetary disaster should have been foreseen in
swiftly mounting costs and frightfully declining revenues. Taxes had
been abolished which should have been retained. Four million taxpayers,
at one swipe, had been released from all obligation to their Government.
President Hoover, like Mr. Coolidge, permitted things to drift. The
great engineering instinct seemed to have dried up. Although terrifying
deficits threatened, Mr. Hoover played the part of a Presidential Micawher,
"waiting for something to turn up." Not until last December was there
one particle of interest manifested in these budgetary disarrangements.
Then the President frantically began to urge economy on Congress, and
the next day after Cabinet Ministers would troop to the Capitol, not only
to resist, but to denounce Congressional efforts at economy. Notwithstanding this, the official records show that Congress reduced appropriations $334,294,094.18 under the approved budget estimates of the President
himself!
I assert from actual knowledge of the facts that at the very moment
the President was lustily preaching economy his Cabinet ministers were
appearing before the Appropriations Committee, and offensively characterizing efforts at economy. His suave Postmaster-General was disseminating throughout postal officialdom, from one end of the country to
the other, a classified statement of 30,000 postal employees that he claimed
he would be compelled to discharge should he carry out a Senate order
to reduce expenses in his Department by 10%. This document was sent
out obviously to incite all these employees to deluge Congress with protests
against discharges that were never contemplated. We had hoped to make
the 10% reduction without discharging anybody, but by reducing salaries,
cutting expenses and revoking, if possible, improvident and shameless
subsidies for which the Post Office Department had contracted, paying
in a single instance $820,000 for carrying $1.700 worth of mail to South
America! Scores of such items appear in the list of expenditures. The
Secretary of the Treasury appeared before the Senate Approproations
Committee and was so denunciatory of the attempt of the Senate to bring
about economy as to create intense resentment among the Committee
members. He characterized the Senate resolution as "brutal" and "Inhuman."
These are but passing examples of the difficulties encountered by Congress
in getting co-operation from the Administration to effect economy.
The Budget Unbalanced.
The President and Mr. Mills charged Congress with obstructing the
efforts of the Administration to balance the budget. I shall not waste
your time and mine with a repetition here of the diverse views and contrasting figures submitted by each side of the controversy. Congressional
disputants allege with apparent reason that it was never possible to get
anything like an accurate estimate from the Administration of the amounts
required to balance the budget. This I do know and assert: The pretense on the eve of adjournment that the budget was balanced was pure
Political bunk and as far from the truth as any other pro
-election claim.
Members of the Appropriations Committee of both Houses openly charged
that the budget was not balanced and that the Administration, in a Presidential election year, had not courage enough to reduce expenses sufficiently
or to propose a tax levy high enough to effectively balance the budget.
It was charged upon the expert computations of competent actuaries
that the measure finally passed would not come within $1,000,000,000 of
balancing the budget. Treasury receipts and disbursements to date,
after all mitigating factors are considered, would seem to indicate that
we did not come within $1,500,000,000 of balancing the budget. Hence,
additional taxes must be levied unless extraordinary expenditures are
discontinued.
It Is an indisputable fact that beyond sending messages to Congress
In general terms the President gave no particle of help. At the very
last moment of the session, after Democratic leaders had agreed with
him at the White House on the final abortive attempt to balance the budget,
and when Senate action was imminent, the President breathlessly rushed
to the Capitol and publicly addressed the Senate in order to get publicity
for himself. In the newspapers he was figured as "forcing the Senate"
to do something that had been agreed on the night before, and the consummation of which by the Senate was delayed for the exact time required
for Mr. Hoover to thus uselessly pose in public on the stage. The camera
men were at hand to snap the superman and exhibit him on the screen.
The self-advertising machine was in full swing, but the President seemed
not to know that the budget was not balanced. It was $1,000,000,000
out of gear. The only thing he had done was to fool himself and get in
the pictures.
Bonus Hypocrisy,
The President and his Secretary of the Treasury put responsibility
on the Democratic party in general for the so-called Patman bonus bill,
merely because the Democrats have a slender margin of five votes In the
House of Representatives, where the bill was projected by intra-party
revolts. They make this charge in spite of the recorded fact that 60
Republicans In the House voted for this bill, which would have been defeated but for Republican support; and in spite of the much more pregnant
fact that an overwhelming majority of Democratic Senators defeated the
bill in the Senate. The only body authorized to speak for the Democratic
party of the country was its National convention. The platform committee of that convention had the courage to vote down every importunate
plea for immediate payment of bonus certificates. The Republican
convention was too cowardly to even intimate opposition to a legislative
measure which the Republican President had said would debase our currency and wreck the Federal Treasury!
In the last analysis this bonus problem is a legacy of sordid Republican
politics. This Government obligation was incurred by a Congress overwhelmingly Republican in both branches, with the almost fatal and predicted result of burdening the American taxpayers In behalf of more than
2.000,000 of able-bodied men who never got within 3,000 miles of tho
European battlefront, thus rendering impossible more generous treatment
of the men actually disabled in war and the widows and orphans of men
who were killed.
Mr. Hoover says that when the Government does pay this deferred
bonus it will be with a sound dollar. I say that given four years more of
Herbert Hoover and the public Treasury will not have a sound dollar with
which to pay anybody anything.
"Fiat" Money.
Moreover, in response to the President's charge that the legislation
proposed In the House and adopted with Republican aid involved "fiat
money." I assert that we had from the Administration at the last session
of Congress inflationary proposals that would have rocked the foundations
of our banking system. The adoption of them would not only have tempted
foreign raids on our gold reserves, but would have incited a dangerous
domestic demand for redemption. Had these proposals been adopted
they would have made millions of dollars of foreign securities with which
this country was deluged by Administration connivance a basis for tre-
Volume 135
Financial Chronicle
snendous credit expansion; and, while I voted against the bonus to ablebodied men and against the House bill for immediate payment. I assert
that the Government certificates of indebtedness to the World War veterans
are sounder security for credit or currency expansion than the securities
.of tottering South American republics and other foreign nations. Both
are dangerous and unorthodox.
Finally, under this head, I direct your attention to the fact that the
Democratic National platform declares for "a sound currency, to be maintained at all hazards." Buf, if the Republican party captures the next
Congress, the Chairman of the Banking and Currency Committee of the
Mouse of Representatives will be the Honorable Louis T. McFadden.
-until last December Chairman of that Committee. Mr. McFadden voted
for the Patman "fiat money" bill, which the President charges threatened
-to wreck the Treasury and "debase our currency." McFadden will be
the Republican pilot in banking and currency matters under a Republican
tmajority.
Mr. Hoover expatiates on certain dangerous provisions of a House
bill, involving individual loans; but he very carefully withholds the fact
that he and Secretary Mills urged a measure on the Banking and Currency
Committee of the Senate authorizing loans of public moneys to private
business concerns. He fails to disclose the fact that, when asked by a
foremost Republican Senator to give an example of the type of concerns
be had in mind, the President "happened" to designate an automobile
corporation, the head of which is asserted to have contributed $25.000
to Mr. Hoover's campaign fund. But for Democratic and ProgressiveRepublican vigilance, this sort of appalling abuse of public funds would
.1110W prevail.
President Hoover and Secretary Mills charge the Democratic Party with
responsibility for the proiosal to guarantee bank deposits; but they refrain
from zoning the country that such an overwhelming number of House
Republicans voted for this untried experiment that it was impossible to get
one-fifth of the membership to order a recorded vote. Mr. Hoover and
Mr. Mills fail to reveal that this proposition sought the approval of the
Democratic National Convention and was so overwhelmingly defeated that
It could not tet the one-fifth parliamentary requirement to call the roll of
States. Must the country infer that there is no longer any frankness left
In Republican campaign speakers, who seek thus to deceive the people?
"The primary catse for the revival of this deposit-guarantee question is the
14,000,000.000 potential loss of deposits under the incompetent administration of Mr. Hoover.
Have Frankness and Honesty Disappeared?
.
r Three timea President Hoover has denounced a Democratic House of
Representatives for passing the so-called Goldsborough stabilization bill,
tauntingly characterizing the measure as "the rubber dollar bill." He
'charges it w a a Democratic scheme,ignorant of the fact that it wps a mere
revival a a measure drafted by a New England Republican and urged for
adoption in the House for five years successively by Mr. Strong of Kansas,
ranking Republican member of the House Committee on Banking and
'Currency. Infinitely worse than this, the President studiously concealed
the fact that 117 Republican members of the House,constituting two-thirds
,of'he entire Republican force, voted for this eccentric bill! Will the President dare go into the States of these 117 Republican Congressmen and
advise their rejection at the polls because they voted for this "rubber dollar
bill"? The President also failed to state that the passage of this bill, so
oridiculous in its terms, was arrested by a Democratic Senator, on whose
anotion every word after the enacting clause was stricken out and a substitute
adopted over Presidential protest, under which $120,000,000 of sound
Natinal bank currency has been issued to 450 banks suffering from lack
of expansive resources. Havefranlmess and honesty ceased to be a desirable
clement in political campaigns?
3093
for many of them, made the astounding assertion in New York some nights
ago that our bank failures were consequent upon "the failure of banks in
countries all about us." Never was there a more shameless falsification of
fact indulged in by a responsible public official. England has not had a
bank failure in 10 years. Her Dominion of Canada, across the St. Lawrence River, has not had a bank failure since 1925. France during this
financial convulsion had not a single important bank failure, nor had Italy.
Even German and Austrian banks stood up until thousands in the United
States had failed. Where are the oank failures "in the countries all aoout
us," of which Mr. Stimson spoke? They were in his imagination and
brought out solely for political effect in the desperation and mendacity of a
losing campaign.
Conditions Bound to Improve.
Secretary Mills at Baltimore asserted that things were improving for
banks, attributing the improvement to the Reconstruction Finance Corporation; but Mr. Mills failed to tell his audience and the country that, with
all the desperate and doubtful expenditures of the taxpayers' money to help
decrepit banks, 1,096 banks have failed since the Reconstruction Finance
Corporation began its work of salvage last January. These failures involved the jeopardy or actual loss to depositors of $603,757,000. Mr. Mills
proudly tells us that stock prices and bond values have recently "moved
up." If they moved at all they had to move up because under the Republican administration they were, like McGinty, at the bottom of the well.
Mr. Mills failed to tell the country that while there was a slight increase
in the value of stock exchange securities there was a pitiful actual decrease
in all commodity prices and that the products of field and factories are at
the lowest ebb in the entire economic life of the Nation.
Democrats to Try.
After this history of fright and helplessness and humiliation, Mr. Hoover
and his Secretary of the Treasury have the assurance to warn the American
people that a return of Democratic administration would menace the business interests of the United States. The Democrats couldn't do worse
were they to try; and unless the signs of the times are completely out of
joint, after the 8th day of November the Democrats are going to be given
a chance to save the country.
Franklin D. Roosevelt as Governor of one of the largest States of the
Union, clean of body and clear of mind, dealing promptly with almost
Insuperable difficulties, is amply prepared for the tremendous task of reconstruction which will face the next Federal administration. He will not go
to sleep at his post. The Congressional contacts and understanding and
plain common sense of John Garner pre-eminently equip him for helpful
service in promoting the legislative program of a Democratic adminsitration.
We shall not make impossible promises and then proceed to break them.
We shall not employ Lydia Pinkham political pills nor psychological poultices as a cure for the maladies of the country. We shall not rely upon
transient devices and mere temporary remedies for serious situations; but
holding fast to sound Jeffersonian principles and applying tested orthodox
processes, we shall hope to rescue the Government and the country from
the unendurable confusion and distress into which Republican maladministration has thrust us. So serious is the situation that only by the help
of Almighty God can this be done.
Reply of Secretary of Treasury Mills to Senator Glass
—Disagrees With All the Senator's Conclusions.
A reply to the speech of Senator Glass in which he alleged
that statements by President Hoover are "flagrantly contrary" to the facts, was made by Secretary of the Treasury
Mills immediately following the Senator's speech on Nov. I.
The speech of Senator Glass appears elsewhere in our issue
to-day. Secretary Mills (whose address, like that of Senator
Glass, was delivered over the radio), stated at the outset in
his reply that "I have to disagree with nearly all of the
Senator's premises and all of his conclusions." Secretary
Mills further said:
Republican Effrontery Assailed.
In order to frighten business, Mr. Hoover makes political scarecrows of
alleged Democratic measures that were not enacted into law even with over-whelmtng Repubican support; he appropriates exclusive credit to himself
for Democratic measures that were enacted into law. This vice permeates
'every speech the President has delivered. The other day he avowed that
the United States had saved the r Broads from bankruptcy. The country
-wantsto know what is to save the United States from bankruptcy with four
years more of Hoover.
The President and his Secretary of the Treasury warn the country that
The Senator finds everything that the Administration has done is wrong,
the selection of a Democratic Congress and a Democratic administration
-would retard the business of recovery. And this coming from an adminisbecause he would apparently let the forces of deflation run their course
tration that has increased the debt liability of the United States $4,000,000,unhampered, no matter what the consequences. I find the acts of the Administration constructive, coherent, and well directed to cushion the effects
4000 in three Years. In face of the facts here cited, that warning amounts to
ipositive audacity; and in face of facts and figures that I shall now give it
of the devastating deflation we have suffered, and effective in protecting
amounts to amazing effrontery. Every effort of relief by this Republican
the savings of the people and in laying the foundation for recovery and
administration at Washington last winter and spring constituted a shuffling
employment and the expansion of credit and of prices.
appeal to measures devised by a Democratic administration. The ReThe reply of Secretary Mills follows:
construction Finance Corporation act is a resurrection in exaggerated form
Ladies and Gentlemen: I have listened with a great deal of interest to
of Wilson's War Finance Corporation act; and the chief reliance of this
Senator Glass, for whom I have the greatest respect, and, whether he
country, great as have been some of the mistakes made, was and Is the
knows it or not, have very real affection, which remains undisturbed in
Federal Reserve Banking System, devised and adopted under the administration of Woodrow Wilson. This act was voted against by an overspite of his rather violent closing remarks.
whelming majority of the Republicans in the House and voted for by only
The Senator seems disturbed at the thought that I should answer him
immediately, and that I have had the benefit of seeing his manuscript
three Republicans in the Senate, and denounced by Republican politicians
before he delivered his speech. There is no occasion for any ill feeling. I
throughout the Nation. This is the Democratic measure that has saved
was informed last night the Senator was about to make a speech on the
this country from the total wreck and that now, under wise administration,
will make recovery possible.
public finances. This morning we decided that I should answer him over
Listen to this recital in response to the amazing declaration of President
the radio as soon as he had completed his address. Radio facilities were
Hoover and Mr. Mills that a Democratic administration cannot be trusted
reserved. I was prepared to answer the main points of his speech exto conduct a governufent.
temporaneously.
During the course of the day an advance copy was given to me. There
1. There have been more bank failures in the United States nearly every
the
Hoover
administration
under
than
there
were
in
the
entire eight
tmonth
is nothing unusual about this, as the Senator knows with his long political
years of Woodrow Wilson's administration, although four years of the Wilson
experience. He knows perfectly well that every advance copy of a speech
bad to contend with the convulsions of a World War.
I distribute finds its way at once to the Democratic National Committee
There were almost as many business failures in the past three and a half
ne
and that practically every advance copy of Democratic speeches comes
. under P oover as there were in the entire eight-year period of the
years
administration.
Wilson
Into our hands. There was no breach of the release. No one has spoken a
3. The amount of business losses in the past three and a half years under
word until after the Senator delivered his speech.
Hoover was approximately $1,000,000,000 more than the business hisses
-night
What is the essential difference between my answering him to
In the entire eight years of the Wilson administration—an excess greater
when the speech is most fresh, or to-morrow afternoon?. The only importhan the entire bonded indebtedness of the United States before the World
War.
tant question is that the people should understand the issues and the
4. There were 102..556 business failures under Hoover involving a loss
different points of view, and I should think that the Senator would welcome
"of 12.645,476.000. The losses averaged $19,000,000 per month under
Wilson ,including four years of World War. and $58,000,000 per month .from me something more than an impromptu answer. The tone of some
under H oover in three years of profound peace.
of the Senator's remarks rather surprise me, but the fact that we are In
5. But 69 National banks failed during the whole eight years under
complete disagreement this evening has nothing of the personal about it.
Wilson, whereas 800 National banks have failed in three years and two
omontlso under Hoover.
Disagrees With Senator.
6. The last three years of the Wilson administration witnessed the failure
whereas the past month witnessed the failure of 12
Let me state at the outset that I have to disagree with nearly all of
of S National banks,
National banks under Hoover.
the Senator's premises and all of his conclusiors. This natural. The
7. In the last three years of Wilson's administration 201 State banks
Senator finds everything that the administration has done is wrong because
last
three
under
Hoover
the
years
months
whereas
in
and
two
4.061
tailed,
he would apparently let the forces of deflation run their course unhampered,
State banks failed. Bank failures during three years under Hoover caused
no matter what the consequences. I find the acts of the administration
the jeopardy or actual loss of $1,198,358,000 to depositors!
constructive, coherent and well directed to cushion the effects of the
7Judertaking to minimize the horrible consequences of the nearly 7,000
devastating deflation we have suffered, and effective in protecting the
bank failures in the United States, Secretary Stimson, lawlessly responsible
TeStr
3094
Financial Chronicle
savings of the people and in laying the foundation for recovery and employment, and the expansion of credit and of prices.
The Senator's speech seems to divide itself into three main parts. First,
the Senator endeavored to show that the World War and its aftermath
played no part in the depression which began in this country in 1929. And
that events in Europe were not remotely connected with a panic which
began last September, and which I deal with in a number of speeches, and
which the Senator completely ignors. Secondly, he seeks to minimize
the President's leadership in connection with the whole program of reconstruction, and, indeed, appears to be thoroughly out of sympathy himself with that program.
In the third place, he attempts to disown, on the part of the Democratic
Party, the actions taken by the House of Representatives, organized and
controlled by the Democrats. Of course, I never had any doubt as to where
Senator Glass stood with reference to the terrible financial program passed
by the Democratic House.
I knew he would disavow it. The trouble is that the Democratic Party
nominated the very man under whose leadership that program was put
through for the great office of Vice-President, and, more important still,
the Democratic candidate for the Presidency does not take his place alongside
of Senator Glass. He does not disavow it. Would he had the Senator's
courage.
Depression.
According to Senator Glass, the great depression is due entirely to
speculation in stocks and the sale of foreign securities in this country.
He believes the war which devastated a Continent, disrupted the world and
destroyed a closely knit economic machine a little over a decade ago had no
more to do with the depression which is world-wide than the wars of the
Phoenicians or the conquest of Gaul by Caesar. Such an assertion really
requires no comment.
If any one cares to ignore the World War destruction and the dislocations that it caused with all the social, political and economic developments
which followed, and is satisfied with the thought that the calamity that has
engulfed the entire world since 1929 is due solely to speculation in securities
in the United States, that man would be deaf to any argument I could
advance.
Certainly I am not going to review in a brief speech the events which
both the President and I have repeatedly covered. If the Senator will
take the trouble to read the speeches, he will at once see that I never said
that the depression which began in 1929 was caused by the collapse of the
European credit structure in the summer of 1931. How could I?
What I have said was that during the first four months of the year 1931
there was in this country a real beginning of recovery, and that that recovery
was completely smothered and the terrible panic which began in September
during the
1931, was caused by the events which took place in Europe
summer of 1931, culminating in the suspension of gold payments by Great
Britain.
hoarding
If the withdrawal of 1750,000,000 of gold in six weeks and the
of $500,000,000 of curency during the same period and the failure of 522
well, then,
banks in a single month last October doesn't constitute a panic,
the Senator and I are so far apart on the meaning of the word that there
is nothing to be done about it.
No Evidence President Hoover Encouraged Speculation.
Now, the Senator from Virginia would also have you believe that speculation in securities, and the sale of many foreign bonds of doubtful value in
the United States, are directly chargeable to the Republican Administration.
The Senator cites no evidence, and indeed there is no evidence, that President Hoover encouraged speculation, for such is not the fact.
Perhaps the Senator thinks he should have warned the people. But
whether it was considered the duty of the President of the United States to
advise indivival citizens when to buy or sell stocks, or to express an opinion
as to whether the prices of securities are too high or too low, it is so easy
to be wise after the event.
uttered a
Can the Senator name any prominent Democratic official who
warning, or indeed any prominent citizen save Paul Warburg, and even
Mr. Warburg did not warn until the spring of 1929?
The
The Senator seems to blame my former chief, Secretary Mellon.
fact is that the then Secretary of the Treasury, as Chairman of the Federal
Reserve Board, supported the policy of increasing the discount rate all
through the spring of 1929. Certain it is that in February 1929, the Federal
Reserve Board issued a warning against the accepted use of credit for
was not
speculative Purposes and cautioned the member banks that it
proper for them to make use of the rediscount facilities of the Federal
purReserve banks for the purpose of making speculative loans or for the
pose of maintaining speculative loans.
1928,
June
This followed a warning which had already been issued in
use of
and came on top of a consistent policy intended to discourage the
credit for speculative purposes. But the warning fell on deaf ears.
or inWhat is the use, for political purposes, of blaming a government
dividual for one of the vast speculative movements which seems to have their
fundamentals in human nature itself?
Here was an immense movement embracing a number of countries and
derived from a great avriety of causes having their origin in many quarters,
acting on and supplementing each other, and carried forward by the imponderable psychological factors which impelled millions of human beings,
suddenly free from the crashing and destructive influences of a great war,
urged to give full freedom to their constructive impulses and from that same
ground gradually to drift onto the area of speculation and unsound practices.
It is idle to asert that any such movement as that can be arrested by
warnings, whether they be official or unofficial.
Nov. 5 1932
This was fully understood not only by bankers but by investors generally;
the charge that bank failures were due to the purchase of foreign securities
will not stand examination. The total amount of foreign securities held
by the member banks at its maximum was less than 2% of their total loans
and investments.
Cheap Money Policy of Federal Reserve System.
Let me next deal with the Senator's complaint of the cheap money policy
of the Federal Reserve System, though I must interject at this point that
the directors of the 12 Federal Reserve banks are, of course, selected irrespective of their political affiliations, that the Federal Reserve Board is
non-partisan and that I know of no instance since the Republicans have
been in control of the Government where the Administration ever brought
pressure on the Federal Reserve System or indicated what policies it should
follow.
As far as the cheap money policy is concerned, the record will show that
the Federal Reserve banks began raising their discount rates as early as
January 1928, until the New York discount rate reached a maximum of
8% in August 1929.
And that, beginning with December 1927. they began selling Government securities which, for the benefit of those who do not understand the
process, is a means of tightening the money market. All told, during this
Period prior to the collapse, they sold $500,000,000 of Government securities. The Senator complains that in 1929 the banks borrowed from the
Federal Reserve banks, using their Government securities as collateral.
He said that this was in utter defiance of the text of the Federal Reserve Act.
I am a little at a loss to understand what the Senator means. Section 13
of the Federal Reserve Act, as amended by the Act of Sept. 7 1916, Passed
under the Wilson Administration, reads:
"Any Federal Reserve bank may make advances to.its member banks
on their promissory notes for a period not exceeding 15 days, provided such
promissory notes are secured by the deposit or pledge of bonds or notes of
the United States."
When the Senator states that during the period when these foreign loans
were being floated in this country, our 12 member Federal Reserve banks
loaned millions of dollars abroad, he has been misinformed.
Prior to May 1931 no funds were actually loaned abroad by the Federal
Reserve banks. It is true that Great Britain, Belgium, Italy, and some
Other countries to a minor extent, were granted credits at the time they
desired to return to the gold standard, but those credits were never availed
of, and I am confident that the Senator does not mean to criticize the
support which our Federal Reserve System lent to restoring monetary and
exchange stability throughout the world.
It is true that during the terrible period of panic -.- hich swept over Europe
during the sununer of 1931, in an endeavor to avert the collapse of the
credit and monetary systems of great European nations, our Federal Reserve banks did make loans to the central banks. The greater part of these
was represented by a loan of $125,000,000 to the Bank of England, which
has long since been repaid. I am sure that the Senator does not mean
to criticize these constructive efforts which were intended to avert collapse
In Europe, with the inevitable repercussions in the United States. The
fact that they did not avert these dangers should be no reason for criticizing
the effort.
In fact, the panic which followed in this country after the suspension
of the gold standard by Great Britain is a sufficient justification for a
very serious effort on our part to prevent that calamity in our own interests.
The Senator refers to the endorsement by our Federal Reserve Bank of
acceptances by foreign banks. What our Federal Reserve Bank did in
Purchasing American acceptances in the American market for the account
of foreign central banks of issue was to agree to take them over should the
foreign central banks so desire. But remember that these acceptances
are American paper originating in the American market and guaranteed
by American banks.
President's Efforts to Maintain Wage Scale.
I now come to the Senator's effort to minimize the leadership of the
President of the United States. He disparages the President's effort to
maintain the wage scale and ignores the fact that for the first time in the
history of depressions wages were not the first to come down, but were not
reduced until after the cost of living had come down and after dividends
had been passed.
He ignores the fact that under the President's leadership, with the
co-operation of leaders of industry, work has been spread so as to increase
employment and wages maintained; that as a result there have been fewer
labor disturbances than in any other previous depression.
Reconstruction Finance Corporation.
to discredit the splendid achievements of the Reconstruction
Finance Corporation, without whose assistance our banking system would
have collapsed, and intimates mismanagement and politics on the part of
a board a majority of which is composed of Democratic members.
The Senator knows better, just as he knows that whereas over 500 banks
failed in October a year ago, only 65 failed this last September, and this
was no accident.
He talks almost as if the President had not been in Washington during
the course of the last 12 months, instead of being on the job 24 hours a day.
Whatever partisan opinion may be, the fact is that the President secured
from a Congress which no one would attempt to describe as friendly more
important legislation in a single session than any other President of the
United States. The record will show that practically all of this legislation
was covered in his original message to the Congress, sent when they met
in December, and that some of the main points of the reconstruction
measures were submitted by him to a meeting of the leaders of both parties
Foreign Loans.
at the White House on the evening of Oct. 6.
floated
were
which
loans
foreign
of
the
to
now
Immense
volume
Turning
The record will also show that the Democrats of the House and of the
In this country, some of which have proved to be unsound. I wonder what
Senate had what they call a policy committee, which met before the ConSenator Glass would have had the Federal Government do. Where does
gressional session and during the session. That policy committee was
the Federal Government obtain its constitutional authority to forbid the
Intended to produce and to present a Democratic program of legislation.
laws?
sale of securities which are sold under State
The record will show that no such program ever emanated from that
Senator Glass is one of the few real survivors among Democrats who
conunIttee, and that the only strictly Democratic program of legislation is
believe in a true Federal form of government and in the responsible
to be found in the record of the Democratic House of Representatives,
sovereignty of States. Does he honestly think that the Federal Governwhich the Senator himself this evening has disowned.
without
not,
ment should have intervened? Certainly the President could
It is true that the President appealed for non-partisan support, as indeed
passed,
been
have
should
law
so,
a
do
such
to
if
him
and
he was entitled to do in a period of national emergency. It Is likewise true
the law authorizing
•
colleagues
Democratic
his
and
he
why
Senator
the
ask
to
question
fair
It Is a
that he received hearty co-operation from Democratic members of both
did not introduce one.
houses, among them Senator Glass; and It is also true that on every occasion
known
when he has made a speech in this campaign referring to the legislative
But the large volume of foreign bonds floated in the market was
on
pass
to
attempted
ever
Department
history of last winter he has publicly acknowledged his gratitude to those
to all. The charge that the State
Secrethe
completely
by
answered
been
has
loans
these
of
Democrats who put country above partisanship.
the soundness
advised
Of what importance is it that there was a War Finance Corporation
tary of State. All that the State Department ever did was to keep
this country, with a view
In
loans
foreign
of
flotations
contemplated
created
by a Democratic administration during the war period? How does
to
as
relations and policies of the country.
that detract in any way from the bringing into being of the Reconstruction
to its bearing upon foreign
statement,
public
a
in
clear
entirely
this
made
Secretary of State Hughes
Finance Corporation to meet the needs of a great peacetime emergency?
What is to be gained by attempting to depreciate the value of a one-year
when he said:
upon the merits of foreign loans as a
"The Department will not pass
suspension of foreign debt payments by calling them merely a psychological
whatever in connection
responsibility
any
assume
nor
proposition,
business
blessing?
with loan transactions."
lie seeks
Volume 135
Financial Chronicle
Senator Glass was one of the first to support this proposal. He recognixed its value in June 1931. He should be only too glad to-day to recognize the value of the breathing spell which it afforded to the stricken European nations.
National Credit Corporation.
Why minimize the work of the National Credit Corporation, which
represented a voluntary movement on the part of the banks of the country
to hold the line until the Congress met? What is the use of saying that
It accomplished nothing? As a matter of fact it made 1,217 loans to 958
banks, aggregating with credits 8189,000,000. It saved many banks from
failure. With its coming into existence the number of bank failures dropped
from 522 in October to 175 in November.
The Senator suggests that some secret undertaking was given to the
men who created the National Credit Corporation. I was present at that
meeting. I heard no undertaking given. What was said at that time
was that if the situation got worse and It should look as if further measures
were necessary, the President would recommend the creation of the Reconstruction Finance Corporation.
A few days later, meeting the leaders of both parties at the White House,
the President advised them of this meeting with the bankers, and of the
probable necessity of his recommending to the Congress the creation of
the Reconstruction Finance Corporation.
Glass-Steagall Bill.
We now come to the Glass-Steagall bill. The bill embodies measures
what
to
the
counter
Senator believes is wise practice on the part
which run
of the Federal Reserve Bank. In normal times he would never agree to
permit the Federal Reserve banks to buy Government securities in the
open market and have these Government securities serve as collateral for
Federal notes, together with the required 40% gold reserve. There is no
better proof of the great emergency which existed than the fact that, holding
the views which he does. Senator Glass was willing to lay them aside and
actually introduce a bill which would permit this procedure. Its effect
was at once to free a vast amount of gold reserves immobilized as security
for outstanding Federal Reserve notes.
The freeing of this reserve put our country Immediately in a strong
position to meet any demand for gold from abroad. The Senator does
not believe that we were ever in danger of going off the gold standard. I
cannot agree with him. As I said in Baltimore, it is unnecessary to enter
Into a technical discussion of the amount of excess reserve and free gold.
There can be no escape from the fact that a further drain on our currency
In gold as long and increasing as rapidly as the drain of the previous Autumn.
coming on top of a prolonged period of credit contraction and business
demoralization, would have set in motion forces of destruction so great
that they might overwhelm any country, no matter how strong its financial
position might be.
I stand by that statement. Under the leadership of the President we
overcame those forces of destruction. The Senator suggests that we
should have made these dangers public. He knows better. To have
done so would have frustrated the success of the measures which we took
and brought on the very disasters which we averted.
Reduction in Government Expenditures.
The Senator says that I and other Cabinet officers attempted to oppose reductions In expenditures. He refers to an instance that took place
before the Committee on Appropriations of the Senate where I said that the
elimination of pork-barrel post-offices should have preference over salary
reductions. The fact is that every reduction, with the exception of one
of $50,000, made by the Appropriations Committee of the Senate in the
Treasury appropriation bill was suggested by me personally, and the
record will support that statement.
There is no use going into a long story which has been repeatedly told
of how the House of Representatives blocked the economy program. There
is no use in relating in detail the story of how they passed bills appropriating
13.400.000,000. which is almost as much as the annual cost of the Federal
Government. There is no use repeating that the Democrats of both House
forced this unnecessary expenditure of $.322,000,000.
The record is too well known. My good friend, the Senator, is hard
put when it comes to defending the record of the Democratic House. But
there is no escaping the fact that with control comes responsibility.
The Democrats elected the Speaker of the House, they organized the
House. they controlled every committee. They, and they alone, were
responsible for the unsound measures that passed the House.
It is of no consequence that a few Republicans voted for some of those
unsound measures.
Bonus Bill.
The Patman Bonus Bill, which provided not only for the immediate
prepayment of the adjusted service certificates at a cost of over $2,000,000,000, but for the issuance of flat currency, or greenbacks, passed the House
with the Democrats voting 3 to 1 in its favor.
The Democratic platform is silent on this subject. The Democratic
candidate has dodged it.
The Senator referred to Mr. Louis McFadden's vote for this bill and
and said that if the Republicans were successful he would be Chairman
of the Banking and Currency Committee. He didn't tell you that the
Democrats were so impressed with the soundness of this gentleman's financial doctrines that though a Republican they actually nominated him for
Congress this year on the Democratic ticket.
The Senator is dead wrong when he says that the bonus problem is a
legacy of the sordid Republican politics. The bonus bills ware vetoed by
Republican Presidents and were passed over their vetoes with the help of
Democratic votes.
I recognize that the Senator is shocked to the core by the proposal that
the United States Government should start the printing presses going.
that he would and will resist any such proposal to the last ditch.
know
I
If the country will but support the President of the United States, if
It will but hold steadfastly to the course that we are now following, there
Is not any doubt in my mind that recovery may be soon within reach, and
that we may not have to wait much longer for the dawn of the day that
we have all been looking for.
Owen D. Young Urges Free Expression by Voters
in Presidential Election—Answers Republican
Party's Claim That It Is Dangerous to Make Change
—Urges That No One Be Afraid if Gov. Roosevelt
Is Elected—Trade Barriers Viewed More Destructive Than Armaments.
Answering the Republican party's claim that "it is dangerous for the United States to make a change in parties and
personnel," Owen D. Young, Chairman of the General Elec-
3095
tric Company, urged on Nov. 3 that "no one.be afraid."
"May I say, and say it with all seriousness," said Mr. Young,
"that markets as well as mobs respond to human emotions;
that markets as well as mobs can be inflamed to their own
destruction; that threats can destroy business just as they
can make barricades. Let no one be afraid. Let no one
be coerced directly by threats or indirectly by advice. We
have not reached the place in this great Democracy where
there is room for either. He who uses them will reap what
he sows.
"Let us rest assured," Mr. Young added, "that voting as
we feel will bring a result which we can look forward to
with confidence and optimism the morning following the
election. Mobs and market both will then know that there
has been a free expression by the voters of America, and
I know of no more steadying influence for both."
"We have learned in industry at least," said Mr. Young,
"to regard with reservation the people who no matter how
honestly think themselves indispensable." He went on to
say:
"I have no objection to a man saying that he would like to hold his
job. I would do so, too. I have no objection to his presenting the
reasons why he can do the job better than others. I would do so, too.
But I resent at any time or at any place the attitude that the safety of
this country depends on any man holding his job. No man has achieved
that strength and this country has not deteriorated to that weakness."
Pointing out that after the war "one of two courses were
open to this country," Mr. Young continued:
"One was to retire into self-satisfied isolation, demand our debts in full
and without compromise, raise prohibitive tariff walls, refuse to lend
our money in foreign markets and take the consequences of an overwhelming surplus of cotton, wheat and meat thrown back on our farmers,
and surplus labor and manufacturing facilities thrown back on our
workers. The other was to seek the maximum development of the world's
trade and commerce in order that we, as the great creditor nation of the
world having the largest stake in its prosperity, might share in its enlarged markets.
"We chose neither course," he said, `tut drifted aimlessly." Alluding to the fact that "we adopted a program of
unnecessary trade barriers in the great highway of trade,"
he said "we become peevish because retaliatory action is
taken by others." We wake up," he added, "to find the
whole world building competitive trade barriers, just as we
found it a few years ago building competitive armaments."
"As between the two," said Mr. Young, "trade barriers are
more destructive than armaments and more threatening to
the peace of the world. It is time for us to call a halt,
and only a liberal party can do it."
The speech of Mr. Young, author of the Young Reparations Plan, was delivered at a mass meeting at the Metropolitan Opera House, New York City, under the auspices
of the Republican-for-Roosevelt League. His address follows in full:
Because there has been some misinterpretation of my silence in this
campaign, I welcome the privilege of standing on this platform to-night
with Governor Roosevelt and saying what will not be news to him or
to the President of the United States, that I am supporting without
qualification Roosevelt and Garner for the two highest offices within the
gift of the American people. May I add that I am also supporting my
friend Senator Wagner and Mr. Lehman for Governor. Let that definite
statement from me end any speculation or inference as to where I stand.
The major issues of this campaign, both social and economic, particularly in the domestic field, have been amply debated. I shall not speak
of them. In any event, there is no time now. You want to hear Governor
Roosevelt. A word from me in most general terms on our international
situation may perhaps be not unwelcome.
In one respect this campaign has exhibited both modesty and generosity.
In one respect, I say—things said in 1928 go modestly unrepeated by
their authors now. Only their opponents are generous in quotation.
Phrases thrilling alike to him who spoke and to them who heard in 1928
would have joined the ranks of the famous "forgotten" in 1932 if their
resurrection depended on the pride of authorship.
Supports Gov. Roosevelt in Present Campaign Just as He Did Gov. Smith
Four Years Ago.
Claiming DO immunity for myself, I said one thing in 1928 whicti I
wish to repeat now. It was on the relationship of our political parties
to international affairs. I quote in part from a statement made by me
urging the election of Governor Smith:
"Our position in the world will be aided by the selection of a liberal party now.
Since the war International proems has been lamely made by liberal parties. There
is less suspicion and more sympathetic co-operation Inherently between the liberal
parties of the world than between the conservative ones. Confidence, not suspicion,
is the attitude of liberals. Courace of unselfish action rather than the fear of selfish
Interests Is natural to a liberal party. So in International relations, I am not concerned with what Mr. Hoover knows about them or what Governor Smith does not
know—I am only Interested in what one or the other can do. and I am confident
that he can do most who has the most generous and whole-hearted liberal support."
That expressed my opinion then. If you will substitute the name of
Governor Roosevelt for Governor Smith in that statement, it expresses my
opinion now.
•
Course Open to Country Following War.
That was prophecy in 1928. In 1932 it stands as prophecy fulfilled.
Following the war, one of two courses was open to this country. One
was to retire into self-satisfied isolation, demand our debts in full and
without compromise, raise prohibitive tariff walls, refuse to lend our
money in foreign markets and take the consequences of an overwhelming
surplus of cotton, wheat, and meat thrown back on our farmers, and
surplus labor and manufacturing facilities thrown back on our workers.
The other was to seek the maxfamm development of the world's trade
and commerce in order that we, as the great creditor nation of the
3096
Financial Chronicle
world having the largest stake in its prosperity, might share in its enlarged markets.
At this moment I need not speak on which course would have been
the wiser choice. That is not my point here. My complaint is that we
chose neither course, but drifted aimlessly, with the consequences which
always come to opportunist action unanchored to principle. We permitted our farmers to expand their production. We facilitated, yes, indeed, we encouraged by Government funds and otherwise their going into
debt, all on the theory that the world's markets would take their surplus
output. We carried on our factories and our business on the theory that
there would be a prosperous world to buy.
We permitted our people to lend money abroad in huge sums for
reconstruction and repair after the ravages of a great war on the assumption that the world would be enabled to pay. We led in the effort to
re-establish the world's currencies on a gold basis in order that that
necessary instrument of all commerce and finance—stable currencies and
stable exchanges--might exist.
Unnecessary Trade Barriers.
ThIs under any conditions we should have done, but having done all
of that we turned about and adopted a program of creating unnecessary
barriers in the great highways of trade. We become peevish because
retaliatory action was taken by others. We wake up to find the whole
world building competitive trade barriers, just as we found it a few
years ago building competitive armaments. We are :trying to reduce
armaments to preserve the world's solvency. And I venture the statement that we shall have to reduce competitive trade barriers to preserve
the world's sanity.
As between the two, trade barriers are more destructive than armaments and more threatening to the peace of the world. It is time for
us to call a halt, and only a liberal party, in my judgment, can do it.
This vacillation and indecision as to the policy of this country induced
a false prosperity in the twenties and a very real catastrophe in the
thirties which came near pulling down the whole economic structure of
the world. We firmly implanted ourselves on both horns of this dilemma,
and we have impaled the whole world on both horns too. And having
done so, we now accuse our lenders of stupidity and our bankers of cupidity in the effort to disguise the real responsibility.
With the currencies abroad broken, with our own economic machinery
threatened and endangered, with debts both domestic and foreign in
every land crushing their people, it is time that liberal parties came
into power to save conservatives from their own destruction, and to save
the rest of us who are victims too. Not until then will our surplus cotton
move from the plantations of the South—not until then will our surplus
grain move from the farms of the North—not until then will our surplus
manufacturers move from the factories of the country—and not until then will
our surplus of labor and of commodities which now economically crush
us disappear. It is the restoration of trade that holds not only the economic
but the social salvation of the world.
And so, Mr. Chairman, in this election I hope America, chastened by
disaster, suffering as she is. will rise to that liberal leadership which will
replace suspicion with confidence, and which never is afraid.
Criticism of Threats Used to Influence Votes.
And, speaking of being afraid, let me pay my respects to the threats,
expressed or implied, which are now being used to influence our votes.
There are more than 10,000,000 of people out of work in this country.
Some of them are in want, others are threatened with it; many have lost
their homes on mortgage foreclosures; others are threatened; many have
lost their farms, others are threatened, and so we have millions of
people sensitive not only to the conditions of to-day but apprehensive of
to-morrow. It is no time to make threats. I am happy to say that
Governor Roosevelt and the Democratic party have not held up the spectre
of what might happen by way of social disturbances if he, as the representative of the liberal party, were not elected.
Millions of people, too, have lost some or all of their accumulated
savings in the disturbed security markets, or fear they may. Many have
lost their businesses, or fear they may. Many have lost their money in
banks, or fear they may. It is no time for threats. But the President of
the United States and his supporters have not hesitated to predict what
would happen to securities and business if he were not elected.
•
Let No One Be 'Ureic.
May I say, and say it with all seriousness, that markets as well as
mobs respond to human emotions; that markets as well as mobs can be
inflamed to their own destruction; that threats can destroy business just
RS they can build barricades. Let no one be afraid—let no one be coerced
directly by threats or indirectly by advice in this campaign. We have
not reached the place in this great democracy where there is room for
either. He who uses them will reap what he sows.
Let me be clear about it. I am not afraid of mobs if Mr. Hoover is
elected, and I am not afraid of markets or business if Mr. Roosevelt is
elected. Even the President and his Secretary of the Treasury will, I
think, not deny me the right, even as a raw recruit, to testify on
inerkets and on business. So let us be done with fear. Let us rest
assured that voting as we feel will bring a result which we can look forward to with confidence and optimism the morning following the election.
Mobs and markets both will then know that there has been a free expression by the voters of America, and I know of no more steadying influence for both.
Answers Warning By Republican Party Against Change.
And now one word more. We are told by the Republican party that
It is dangerous for the United States to make a change in parties and
in personnel. Warnings have been given us against substituting raw
recruits for seasoned veterans.
Well. I can understand how one who has given of himself to the full
limit o his capacity may honestly feel that way. As to that, I need only
make this comment well known to all. That when managers of any
concern believe the concern will fail unless they be continued. it is time
to take a look. The plant manager who thinks he is indispensable to the
plant and that no change can be made without ruin is likely to think
that the old machine is better than the new, that the old method is better
than the new, that there should be no substitution, that obsolescence means
nothing but normal wear and tear, that scientific progress is a myth.
No One Indispensable.
We have learned in industry at least to regard with reservation, to
put it no stronger, people who, no matter how honestly, think themselves
Indispensable. In the language of the old French proverb, the indispensable man is yet to be. I have no objection to a man saying that he
would like to hold his job. I would do so too. I have no objection to
his saying that he believes he can do the job better than others. I would
do so too. But I resent at any time or at any place the attitude that the
safety of this country depends on any man holding his job. No man has
NOV. 5 1932
achieved that strength and this country has not deteriorated to that weakness.
What I hope for in this election is a true reflex by votes, uninfluenced by fear or favor, of the intelligence and intuitions of the great
masses of our people. Broadly, I trust the intuitions of many more than'
the assumed super-intelligence of the few. What we need is a full and
free and honest indication of how the millions of this country feel inside
themselves.
Mr. Chairman, what I am concerned about in this fast-moving world
in a time of great crises at home and abroad is not so much a program as
a spirit of approach—not so much a mind as a heart. A program lives
to-day and dies to-morrow. A mind, if it be open, may change with each
new day, but a spirit and a heart is as unchanging as the tides.
Senator Carey Answers Senator Glass on Gold—Says
President Hoover Told Senate Leaders of Danger
to Standard.
Associated Press advices from Cheyenne, Wyo.. on Oct.
27 are taken as follows from the New York "Times":
Senator Robert D. Carey, Republican of Wyoming,in a statement to-day
answered the assertion of Senator Carter Glass following President Hoover's
Des Moines speech, that if there was danger of the United States being forced
from the gold standard no one in Washington had been so informed.
Senator Class. Mr. Carey said, was not at a conference between various
Senate leaders with the President when Mr. Hoover told of the withdrawals
of gold from the United States.
"I have no doubt," Mr. Carey continued,"that Senator Glass. in making
the statement that no one was advised of the critical condition of the.
Treasury, was sincere, as he had no knowledge of the Information that was
conveyed to those of us who attended the conference.
"Statements ramie by the President at Des Moines with reference to the
danger of the country nettle forced from the geld standard through withdrawals were in line with facts. Gold was being n ithdrawn rapidly.
"Naturally neither the President nor the officials of the Treasury would
make this condition public at that time as it would have encouraged not
only further withdrawals but would have forced us to abandon the gold
standard."
Sees Adequate Gold in World for Credit—Brookings
Institute Expert Blames Pyramiding Largely for
Depression.
Charges that the Federal Reserve System has been controlled by the Treasury Department in the interest of Treasury financing was deemed unjustified in a statement on
Oct. 27 from the Brookings Institution, announcing completion of a banking study by Dr. Charles 0. Hardy of its
staff. We quote from Washington adviees Oct. 27 to the
New York "Journal of Commerce," which added:
Similarly, it was added, in spite of increasingly close contact. between the
Federal Reserve Bank of New York and leading central banks of Europe,
the study finds that "International co-operation has been a lees important
factor in Reserve system policy than is generally believed. and It is welt
that this is so."
Discussing "Reserve credit and the gold supply," Dr. Hardy dismisses
as "quite baseless" the "notion" that there is Insufficient gold to support
the world's credit structure.
Discusses Bank Failures.
Asserting that the recent flood of bank failures throuehout the United
States has been due "only in part" to depression causes, Dr. Hardy argues
that the danger of these insolvencies may be at least party eliminated by
requiring banks to maintain more ample capital and surplus in relation to
deposits.
Pointing out that in the decade 1922-1931 there were 8.784 bank insolvencies In this country, or 29% of the total number of banks in operation
at the beginning of this period, he concludes that while the United Stater;
"is not the only important country in which banks become insolvent, it is
the only one In which they are allowed to fail."
Dr. Hardy finds that inherent instability, evidenced by the unparalleled
record of bank insolvencies, is found in —
"The whole system of pyramiding a vast array of obligations which,
technically or practically are payable on demand, on a slender basis of cash
and an even slenderer base in the form of stockholders' equity, placing
dependence for solvency on assets which can onIy be liquidated by transfer
or by wholesale destruction of monetary values.'
Hits System's Policy.
Since the Federal Reserve system and Reserve banks have no authority to
require stockholders to provide greater equities, the policy of the system
"can be held responsible for the weakness of the banking structure only in
so far as we can fairly require Federal Reserve authorities to look ahead
and
recommend remedial legialatIon before the need of it become apparent to
all
President Hoover's "Bread and Butter" Table Indicates
Purchasing Power of Worker Here Greater Than
That of Those in Foreign Countries.
In a speech in Newark, N.J., on Oct. 31 President Hoover
alluded to a table which he presented four years ago, in an
address delivered in the same city, in which he used "as a
common denominator the amount of bread and butter which
could be purchased in each of the principal countries by
the wages of the different groups of workers." In his Newark speech this week the President went on to say:
I have had those countries resurveyed so that I might have this table
prepared to present to you. I will band these two tables to the press of your
city. and If you will study them you will find that the differences between
your standard of living to-day and those of foreign countries have even more
greatly widened than they were four years ago.
That additional widening has been largely due to the depreciation in the
currency of foreign countries by the collapse of first one nation after another
during the past 18 months. It raises an entirely new problem in the maintenance of the protection of this State
Pt- rYou will find, if you Inspect those tables, that whereas four years ago
the weekly wages of the workers of different groups were equal to the:pur-
Financial Chronicle
Volume 135
chase of an amount of bread and butter in the country which most nearly
approached us, they were able to purchase rather more than one-half of
that purchase by our own wages. You will find, if you resurvey that table
to-day, that that has diminished to less than one-third of the purchasing
power of American wages.
The table and comment by President Hoover is taken as
follows from the New York "Times" of Nov. 1:
WEEKLY WAGES IF APPLIED TO THE PURCHASE OF "COMPOSITE
POUNDS OF BREAD AND BUTTER."
(Eaeb pound 95% wheat flour and 5% butter.)
Railway
Engl.ne,ers.
United States
United Kingdom
Germany
France
Belgium
Italy
Sweden
717
367
217
269
150
166
261
164
Carpenlers.
731
262
173
94
96
151
256
125
ElectriCoal
clans. Miners.
778
267
158
123
76
152
224
OR
558
267
133
136
94
95
180
50
TVeavere.
Day
Labor.
323
136
106
73
94
75
155
RR
259
160
112
68
65
110
162
Ail
"Of course, the American employe does not use his higher income to buy
unnecessary pounds of bread and butter. He uses it to diversify and expand
his consumption of all things,"
F. A. Delano Replies to President Hoover on Governor
Roosevelt's Connection With the Federal International Banking Co.—Association With It Was
In Legal Capacity Before He Became Governor.
A reference by President Hoover in his Indianapolis
speech on Oct. 28 to the connection of Governor Franklin D.
Roosevelt (Democratic nominee for President) with the
Federal International Banking Co. has brought an explanation from the Governor's uncle, Frederic A. Delano—the
latter at one time a director of the company. Regarding
Mr. Delano's statement we quote the following from the
New York "Times" of Oct. 31:
Mr. Delano said that Governor Roosevelt's connection with the firm
had been in a purely legal capacity, and he denied that the corporation
was organized to buy or sell securities, but merely to "facilitate the import
and export business."
In his address President Hoover described Governor Roosevelt as engaged in 1928 before he became Governor in the selling of foreign bonds
and foreign loans.
"At that time he was chairman of the organization committee of the
Federal International Banking Co., a corporation organized for the selling
of foreign securities and bonds to the American people," the President said.
After reading a part of a prospectus issued by that company, the foreword of which he said was written by Governor Roosevelt and which
explained that "foreign investments are in the nature of alliances," the
President commented that "I have no reason to believe that the Governor's
enterprise on this occasion was not perfectly proper and soundly founded.
I do not wish to convey that impression.
"But the Governor, as a private promoter for profit during the boom
of 1928, believed and practiced what the Governor as Presidential candidate now denounces as immoral and a cause of our calamities," Mr. Hoover
declared.
In explaining that there was no inconsistency in the Governor's attitude,
Mr. Delano said yesterday that the corporation was formed "under the
Edge Act to facilitate import and export business, not to buy or sell
securities."
"So many difficulties were encountered in getting the business going
that the company did not even function," Mr. Delano declared. "I looked
into the prospects of the company and decided that it did not have any
merit unless the Edge Act, fathered by Senator (now Ambassador) Edge,
was very considerably altered. I was made one of the directors without
consent and got out after investigating.
"I think I can say with certainty that no one connected with it made a
cent out of it, and even big exporters who hoped to find this form of handling
commercial paper feasible gave it up as an impossible job.
"Governor Roosevelt's connection with it was as a lawyer giving his
professional services—and it Was before he was Governor."
The President's reference to the Federal International Banking Company, a concern which is not now listed in financial manuals, caused some
confusion, but backers of the original company explained yesterday that
although the company obtained a permit to organize it never actually
started functioning. The Federal International Corporation, of which
Robert Rowland Appleby, President of the British Empire Chamber of
Commerce in the United States, is listed as a director, was described
yesterday as a holding company for the banking concern and although
this corporation still has a permit to organize it too has never functioned,
it was said. Basil O'Connor, Mr. Roosevelt's law partner, was formerly
a director of this concern.
Accordng to accounts of the Federal International Corporation published in April 1931, it Was headed by George St. Jean, who was described
yesterday as a former member of the Consular Service, and the principal
sponsor of the project was then General James G. Harbord, Chairman of
the Board of the Radio Corporation of America and a prominent Republican.
The Federal International Corporation, described then as an organization
created for the purpose of assisting American manufacturing interests in
the exportation of their products and the financing thereof, was sponsoring
an acceptance bank to be known as the Federal International Banking
Corporation.
The published accounts stated that several important American corporations, including the General Electric Co. and the Radio Corporation were
understood to be interested in the bank. The Radio Corporation denied
any such interest, however, and General Harbord's resignation from the
chairmanship of the organizing committee and his severance of relationship with the proposed bank followed, it was said yesterday, because he
objected to the way publicity for the bank had been handled.
The proposed bank received a charter in the latter part of 1930 from the
Federal Reserve Board under the Edge Act after Representative Ruth
Pratt, Republican, and Senator Fletcher of Florida, had introduced into
the House and Senate legislation which, according to a statement then
made by General Harbord, was designed to aid in the early recovery of
the country's export trade and to help the newly organized Federal International Corporation. Despite this legislative aid, however, the project
came to naught and never actually did business, it was agreed yesterday.
3097
Governor Roosevelt, who had been associated with the concern only in
its embryonic stages, severed his connection with it before he took office
as Governor in 1929.
U. S. Treasury Issues Statement Regarding Position
on Budget Balancing in Reply to Governor Roosevelt—Says National Credit Has Been Unimpaired
Through Period of Financial Panic.
In a Washington account Oct.21 to the New York "Herald
Tribune" it was indicated that in a statement reassuring
as to the Treasury's position, and in part a reply to Governor
Franklin D. Roosevelt's recent criticism of Federal financing
and expenditures, James H. Douglas, Assistant Secretary
of the Treasury, asserted that the tax collections for the
first quarter of the current fiscal year did not constitute "a
fair indication of the revenues to be received under the
Revenue Act of 1932."
"Governor Roosevelt's statement that 'the budget is not balanced' and
that the whole job will have to be done over again by the next Congress,"
Mr. Douglas said in an address before a religious conference of bank auditors
and comptrollers,"warrants observations regarding the $400,000.000 deficit
for the first quarter of the fiscal year ending September 30."
Explaining that one item in this deficit was that of $100,000.000 for payment of adjusted service certificates, which will not recur during the rest
of the year, Mr. Douglas said:
"The receipts from the new excise and miscellaneous taxes, although
somewhat disappointing, are showing a steady increase. Total miscellaneous
internal revenue amounted to $42,000,000 in July, $54,000.000 in August,
and $73,000,000 in September. October so far shows an additional $5,000.000 over the same period of September. I can see no occasion for alarm
in this picture, if the reductions in expenditures that are reasonably possible
are carried out and the moderate upturn in business activity continues.
"As to Treasury financing, it is pertinent to observe that, from the peak
reached shortly after the war, the debt was reduced by nearly $10,000.000,000. Of this 53,500,000.000 represented an acceleration of debt
retirement from surplus receipts, beyond legal requirements.
"Regarding present financing, Governor Roosevelt states 'the truth is
that our banks are financing our stupendous deficits and that the burden is
absorbing their resources.' This statement is hard to understand, in view
of the decrease of member bank borrowing from a level of $850.000.000
during February to the present figure of close to $300,000,000, and in view
of the increase in excess reserve balances of member banks to the unusually
high figure of approximately $400,000,000. All Treasury bonds, notes
and certificates now outstanding are selling at a premium, with the exception
of Treasury 33,4% and Treasury 3% bonds.
"The national credit has been maintained unimpaired through a period of
financial panic, the severity of which could not be foreseen. The Treasury
Department stands by the record."
Federal Land Banks Aid Farmer to Cut Interest
Rates—Federal Farm Loan Board Says It Has
Helped Him Refinance at Saving of 23/i to 4%%-86% Of Advances Made for Refunding, It Declares.
A statement issued by the Federal Farm Loan Board
on Oct. 22 sought to show that the Farm Loan system has
benefited farmers and has enabled them in many instances
to cut down their interest obligations. The board said
that instead of encouraging the farmer to go into debt, the
main activity of the land banks has been to enable him to
amortize, on a reasonable basis, debts he already had.
A dispatch from Washington Oct. 22 from which the foregoing is taken, also said:
Much debt has been refunded at a rate of slightly less than 53i%,amortized over a long period, as compared with 8 to 10%. which the farmer
had previously paid.
The Board's statement was viewed as in the nature of a reply to some
of the criticisms aimed at it. In recent months, many complaints have
been made to members of House and Senate against the Federal Land
Banks, on the ground they were foreclosing ruthlessly and were exacting
harsh terms on loans.
Loans for Refinancing.
The statement follows:
"During the first nine months of this year a larger proportion than
ever before of farmers who obtained funds from the Federal Land Banks
borrowed for the purpose of refinancing their short-term indebtedness
to other lenders, most of which was costing the farmer a much higher
rate of interest.
"During this period 86%of the loans were used for refinancing whereas
77% of the loans made by the banks prior to 1932 were used for this purpose.
"Far from encouraging the farmer to get into debt, the facts show that
the main activity of the Federal Land Banks has been to enable the farmer
to amortize on a reasonable basis debts which he already had. Most of
the indebtedness refunded was on a short-term basis providing for frequent renewals with commissions and high interest rates, costing the
farmer in many instances from 8 to 10% per annum. In this way the
farmer has been enabled to replace such onerous loans with Federal Land
Bank loans bearing an average interest rate of slightly less than 53 %.
amortized over long period of years.
Purposes of Loans Slated.
"The Federal Land Banks are strictly limited by law as to the purposed
for which loans can be made and the borrowers state in their applications
the purposes for which the funds are to be used. 'To pay off existing
mortgages' and 'to pay other debts' have been the chief uses to which the
borrowed money has been applied. Other purposes for which loans have
been made include purchasing land, equipment and livestock and providing buildings and improvements.
"The Federal Land Banks do not maintain local representatives to
solicit new loans. Applications for loans are made first to national farm
loan associations composed entirely of farmer-borrowers of the Federal
Land Banks. Members designated by each association as a loan committee
review the applications received from their ne ghbors and, if approved.
the loans are recommended to the bank."
3098
Financial Chronicle
Subscriptions to Stock in Federal Home Loan Banks
Lag—Only 10% of Building Associations Have
Asked Stock in Federal System—Change in Law
Expected.
Only 10% of the building and loan associations in the
United States have subscribed to stock in the Federal Home
Loan Bank System and of these, only 75% are eligible to
membership, officials of the Home Loan Bank Board revealed on Nov. 1, said a dispatch from Washington to the
New York "Times" from which we also quote as follows:
Indications now point to recommendation for liberalizing legislation by
the next session of Congress to remedy a condition in which the minimum
legal subscription from private sources was not obtained by Oct. 14, when
the books were to have been closed.
Originally it was hoped, after opening the banks for business Oct. 15, to
relieve emergency cases in short order. Now it is feared that some time
may elapse before many loans can be made as a direct aid to home owners.
Some officials think that Congressional action may be necessary to
liberalize the law, so that it may carry out all of the original purposes, but
they are confident that the system even as constituted, will ease the home
mortgage situation and change this type of investment from a frozen to a
liquid assets.
Under the law, as long as the Government participates in the financing
ofthe bsnks, direct loans may be made to home owners on sound mortgages
where the prospective borrower is unable to obtain credit accommodations
elsewhere. This places a weapon in the hands of the banks that might
force the building and loan associations and others, dealing in home loan
mortgages, to liberalize their policy on loans to home owners. It is pointed
out that should these institutions fail to make loans on adequate security
the home loan banks could extend the credit directly at rates lower than
those normally charged by the usual lending agencies.
It is understood that no announcement will be made as to stock subscriptions until the necessary $9,000.000 has been ootained. This will
meet the minimum capitalization requirements, since the Treasury was
authorized by the law to subscribe $125,000,000.
R. Reyburn Burklin Named Comptroller of Federal
Home Loan Bank Board.
The appointment was announced Nov. 1 of R. Reyburn
Burklin of Washington as Comptroller of the Federal Home
Loan Bank Board. Mr. Burklin was formerly Treasurer
of the Federal Farm Board. At one time he was examiner
for the Federal Reserve Board and later he was Secretary
and Treasurer of the War Finance Corporation.
Limit Set in New Jersey on Securing Loans from
Reconstruction Finance Corporation.
The following from Trenton, Nov. 1, is from the "United
States Daily" of Nov. 2:
New Jersey is prohibited from borrowing in excess of $100,000 from
the Federal Reconstruction Finance Corporation, unless the voters by
referendum approve such a debt, according to an opinion by AttorneyGeneral William A. Stevens.
A ruling was asked on the question by Governor Moore when it was
suggmted lay Clinton A. Bard°, President of the State Taxpayers' Association, that a loan be sought to finance the emergency relief program
of the State. The idea was advanced as a substitute for the proposed
$20,000,000 bond issue for that purpose.
Monthly Report of Railroad Credit Corporation—Loans
Advanced or Authorized Up to Nov. 1, $35,500,719.
The Railroad Credit Corporation on Nov. 1 1932, had
either actually made or authorized loans to railroads to meet
their fixed interest obligations totaling $35,500,719, according to the monthly report of that Corporation filed with the
Inter-State Commerce Commission. Collection of rate increases under Ex Parte 103, according to the report, totaled
$40,847,002 in the first eight months this year, the increase
having become effective Jan. 4. The amount derived from
the increase during August amounted to $5,082,396.
In a letter addressed to chief executives of participating
carriers and accompanying the report, E. G. Buckland,
President of the Railroad Credit Corporation, said:
r Loans applied for aggregate $96,235,457, of which $55,055,213 has been
withdrawn from the docket, representing requests beyond the scope of the
plan, or funds which could be secured from other sources. The remaining
$41.180,244 is divided between approved loans of $36,565,969, and deferred
items of $4,614,275. The amount deferred does not indicate the limit of
demands to be made on the fund in the near future. Loans made total
$35,441,469, and repayments total $1,065,250, leaving the net outstanding
as per balance sheet of $34,376,219.
Full utilization is being made of funds available for loans to meet current
requirements. The cash balance of $2,251,910. being subject to demands
In the immediate future to take up loan commitments of-$1,124,500, the
actual working balance is $1,127,410. With the approaching interest
requirements for the end of the calendar and fiscal year, this balance is
not as large as desired. Nevertheless, the indications, at this time, are
that the fixed interest obligations of major class I carriers, for the remainder
of the year, will be duly met.
All commitments to the Reconstruction Finance Corporation to take
over advances made by it to participating carriers, during the period in
which your Corporation was without resources, have been fulfil'ed.
It is noted that:
By the terms of the plan under which the fund is administered, the
railroads have 40 days after the end of each month in which to report to
the Corporation the amounts received from rate increases during that
month and then are allowed 10 days in which to turn the funds so derived
over to the Corporation.
Nov. 5 1932
In its decision in Ex Parte 103, the Inter-State Commerce Commission
permitted certain increases in rates, the proceeds to be pooled and used
for loans to needy carriers. The method of pooling the revenues, known
as the Marshalling and Distributing Plan, was proposed by the carriers,
and is administered by the Railroad Credit Corporation. By the terms of
the plan under which the Railroad Credit Corporation operates, loans by
the Corporation are restricted to the prevention of defaults in fixed interest obligations.
The report follows:
THE RAILROAD CREDIT CORPORATION—REPORT TO INTERSTATE COMMERCE COMMISSION AND PARTICIPATING
CARRIERS AS OF OCT. 311932.
Net Change
Balance
Oct. 31
During
Assets—
October 1932.
1932.
Investment in MTh. co.—Loans made
$6,722,190.00 $34,376,219,00
Cash
2,251,910.92
x2,132,383.03
Petty cash fund
25.00
Special dep.—Reserved for taxes, &c
496,92-2763
4,050,841.29
Misc, accts. rec.—due from contrib. carriers
28,528.11
142,775.04
Interest receivable
200,105.40
28,451.56
Deferred assets—Loans authorized—contra _ x2,903,000.00
1,124,500.00
Expense of administration, Dec. 14 1931Oct. 31 1932 incl
112,781.21
11,552.83
Total
$2,252,262.10 $42,259,157.86
Liabilities—
Non-negotiable debt to affiliated companies—
Reported rate increases under Ex Parte 103 $5,082,396.69 $40,847,002.89
Def. liabilities—Loans authorized—contra
1,124.500.00
x2,903.000.00
Income from funded securities—Interest
accrued on loans to carriers
239,529.65
62,770.21
Income from unfunded securities and accounts—Interest on bank balances, &c
46,925.32
10,095.20
Capital stock
1,200.00
Total
$42,259,157.86
$2,252,262.10
x Denotes decrease.
Samuel Untermyer Alters Plan for Taking Over of
Assets of Bank of United States —Says "Change
for Worse" Blocks Raising of Funds Required by
Original Proposal—Awaits Action by Superintendent Broderick—Full Payments to Depositors
Now Doubted.
Samuel Untermyer, sponsor of the so-called Untermyer
plan for a liquidation corporation to take over the remaining
assets of the Bank of United States, issued a statement on
Nov. 2 admitting that the "decided change for the worse'
in business and financial conditions since the announcement
of the plan had made it virtually impossible to raise the full
amount required as a start. According to the New York
"Times" a modified form of the plan is now before the
State Banking Superintendent for approval, he announced.
From the "Times" we also quote:
This modification would call for submitting the plan to the courts for
approval on the basis of the $5,000,000 to $6,000,000 in subscriptions now
on hand, the approval to be conditioned on at least
$7,000,000 in cash
subscriptions being actually paid in within 60 days after the order of the
court.
The "responsibility of rejecting this modified plan." Mr. Untermyer
declared, is now up to the Banking Superintendent, and the Banking Board
which advises him.
Explains Status of Plan.
Mr. Untermyer's statement follows:
I agree that the unfortunate depositors of the Bank of United States
are entitled, without further delay, to know what has become of the plan
of liquidation that was formulated and announced more than a year ago.
At that time the approval of the plan was conditioned upon the payment
by the directors of $3,000,000 (afterward reduced to
$2,700,000) in settlement of the claims against them for negligence,
and of $5,000,000 to be
subscribed by the stockholders, at the rate of $13.50 per share of their
stockholdings at the time of the failure. for the release of their stock liability.
The task has proven increasingly difficult and fraught with all sorts of
disappointments. I have not yet, however, despaired of putting it through
In a modified form, but only if we can secure the co-operation
of the Superintendent of Banks, without whose sympathetic aid It will be impossible.
Due to a decided change for the worn in
general business and financial
conditions and to the increasing depression, ever since the plan was announced,a number of the subscribing directors and many of the stockholders
found themselves financially unable to meet their pledges. Some who
had deposited 25% in cash on account of their subscriptions now find
themselves unable to pay the balance. Many hundreds of
stockholders.
as I am informed by the subscription agents who have in charge
the collection of subscriptions, are entirely willing, and many are anxious to
subscribe to the plan, if and when approved by the court. but are
unwilling
to make the initial deposit of 25% of their subscriptions to
be held by
the Guaranty Trust Co. for an indefinite time subject to the contingency
of the approval or rejection of the plan by the court.
Asked Superintendent to Act.
I believe that to be a reasonable condition and accordingly
asked the
Superintendent some months ago, on the basis of the $5.000,000 or
$6.000.000 of subscriptions now in hand, to make the application approving the
plan conditioned on not less than $7,000,000 of cash subscriptions
being
actually paid within 60 days after the order of tho court.
My feeling has been and is, as frankly explained to the Superintendent,
that inasmuch as the ultimate duty and responsibility of acting upon the
plan rests with the court, the depositors are entitled to have the
Superintendent act, subject to the approval of the court. Whether he will now
do so, or will himself assume the heavy responsibility of rejecting the
plan, rests with him and with the Banking Board, to which he has submitted the problem for its advice and which, I am told, has acted favorably
upon it and directed counsel for the Superintendent to prepare the petition
for submission to the court.
I have been urging and awaiting definite action in answer to that appeal.
If the Superintendent should, contrary to my understanding, decide to
take upon himself the responsibility of rejecting the modified plan, it will
have to be abandoned. If, on the other hand, as I hope and expect, he
will approve the modifications and submit the plan, as modified, to the
court. I shall keep at the Job and continue to do everything in my power
to carry it through.
Owing to the disastrous shrinkage In the value of the assets, the surprisingly disappointing collections and settlements and the staggering cost
Volume
135
Financial Chronicle
ever known and due also
of administering the assets beyond anything
I fear that there is no logner
to the continuing and increasing depression,
nearly in full, as there
anywhere
paid
much chance of the depositors being
appeared to be when the plan was undertaken.
add many millions of
If this plan is approved we can, however, still
to be made
dollars to the distributable assets through the contributions
the suits against
pressing
by the directors and stockholders, through
of liquidathe
in
cost
reductions
by
plan,
those who do not come into the
tion, and in other ways.
There is nothing now to be done except to await the decision of the
Superintendent and his advisers. We have been awaiting that decision
it almost hourly. The moment
for days and are now impatiently expecting
it comes the depositors will be advised.
Loan by Reconstruction Finance Corporation Barred
in Case of Bank of United States—New York
State Bank Law Balks Plan for Early Dividend by
Aid of Federal Board—Loophole to Be Sought—
Ruling by Deputy Superintendent Ihlefeld.
Expectations that depositors of the defunct Bank of
United States in New York and other closed institutions
would be aided with earlier than usual dividends on their
funds through loans from the Reconstruction Finance
Corporation with the pledging of real estate and other
proper assets of these institutions were dissipated on Oct. 29
by an announcement that such loans could not legally be
arranged in New York State. The New York "Herald
Tribune" of Oct. 30, indicating this, further stated:
August Ihlefeld, Jr., Deputy Superintendent of Banks, in reply to a
committee of Bank of United States depositors who had called at the
State Banking Department in relation to the subject, declared that it
had been found by the legal advisers of the Department that it had no
authority to pledge the assets of a bankrupt institution for purposes of
obtaining such loans. In this respect Mr. Ihlefeld said that the State
of New York was almost alone in the possession of statutes placing restrictions on such loans.
"We shall have to wait and see," said Mr. Ihlefeld, "if we can possibly
get around the legal obstructions prohibiting the Banking Superintendent
from pledging bank assets for loans. If we cannot find a loophole, we
will have to wait until the Legislature removes the statutory restrictions.
You may rest assured that the subject will be thoroughly studied by the
Department."
Mr. Ihlefeld added that the Department has been in continuous touch
with the Reconstruction Finance Corporation on the question, but that
no formal requests for a loan had been made by the State Department of
Banks, because Joseph A. Broderick, Superintendent of the Department,
had been informed that the State laws would not permit such transactions.
Mr. Ihlefeld produced an excerpt from a letter written on the point to
Mr. Broderick by G. R. Cooksey. Secretary of the Reconstruction Finance
Corporation, which read as follows:
While it is the intention of the Act to authorize the Corporation to
make loans for this purpose, it is evident that ordinarily receivers have
no authority to incur indebtedness and to pledge assets of a recetvership
estate for the mero purpose of expediting the payment of dividends, such
authority being limited to emergencies where the loan is required to preserve assets from loss or depreciation. The same situation is believed
to exist with respect to the authority of receivers to borrow and pledge
assets for the purpose of assisting in the reorganization of closed banks.
When it was pointed out that only $39,000,000 of the 8200.000.000 of
the Reconstruction Finance Corporation funds allotted to aid banks had
been used so far, Mr. Ihlefeld said that none of this money had come into
Now York State but that it had been employed in other States where the
laws permitted the pledging of bankrupt bank assets for loans.
When A. Mitchell, leader of the depositors' committee, argued that
Mr. Broderick had not pressed the loan subject with sufficient vigor. Mr.
Ihlefeld declared that no formal application for a loan had been made
by Mr. Broderick because he know his powers were not oroad enough
for the consummation of such a deal.
One of the members of the committee pointed out that the Department
had $9,000.000 on hand realized from assets of the Bank of United States
and that some dividend should be declared. It was argued also that the
$7,000,000 pledged by stockholders to the reorganization plan proposed
by Samuel Untermyer for liquidating the bank's properties should be
attached and included in the bank's funds, but Mr. Ihlefeld declared
that these pledged funds were mere promises and that they did not under
any circumstances come under the Banking Department's jurisdiction.
Mr. Ihlefeld explained also that the dividend that the Department would
be able to declare from the funds now available for the purpose would
have to be small so that it would not warrant the expense necessary to
get it to the bank's 425,000 depositors. It was evident that there would
be no Bank of United States dividend before Christmas. Dividends
aggregating 45%, amounting to around $61,000,000 in funds, have been
distributed so far to depositors since the bank's closing on Dec. 11 1930.
Hillside Housing Corp. of New York City to Receive
Loan of $3,957,000 from Reconstruction Finance
Corporation—Proceeds to Be Used for Construction
of Low-Cost Model Apartments—Business and
Realty Groups Voice Opposition in Messages to
Washington.
The purchase of $3,957,000 bonds of the Hillside Housing
Corporation of New York City was approved Nov. 1 by the
Reconstruction Finance Corporation. The money will be
used to build a complete neighborhood unit of low-rental
apartments to house 1,581 families. The housing loan, the
first of this type to be made by the Corporation, is conditioned upon acceptance by the New York State Housing
Board of terms that differ in some respects from those upon
which application was made and which the Board had
approved.
Protests from several New York business organizations
and realty interests against the loan were received by the
Reconstruction Finance Corporation Nov. 2 according to
3099
Washington press dispatches. It was said that a majority
of the protests had been received from sources which opposed
the loan either from the standpoint of prospective competition or because, knowing only a limited number of the housing loans would be made, they sought funds for their own
localities.
The official statement given out by the Reconstruction
Finance Corporation Nov. 1 follows:
The purchase of $3,957,000 bonds of the Hillside Housing Corp.Of
New York City was approved to-day by the Reconstruction Finance
Corporation. The money will be used to build a complete neighborhood
unit of low-rental apartments to house 1.581 families. The loan is the first
to be made by the Corporation under Section 201 (a), Paragraph 2, which
reads as follows:
". . . to make loans to corporations formed wholly for the purpose of
providing housing for families of low income, or for reconstruction of slum
areas, which are regulated by State or municipal law as to rents, charges,
capital structure, rate of return, and areas and methods of operation, to aid
In financing projects undertaken by such corporations which are selfliquidating in character."
The Hillside Housing Corp. is a private dividend corporation subject to
the provisions of the New York State Housing Law. The development will
be in the Borough of the Bronx, New York City.
It is estimated that an average of 700 men will be employed on the project
throughout the construction period of 11 months. Approximately 1.400
men will receive indirect employment for a like period through the purchase
be
of materials and equptment to be used in building the units which will
chiefly of the 4-story walk-up type with a few 6-story elevator type buildfeet
ings. The buildings will haNe a total net volume of 12,450.000 cubic
being
and will contain 5,378 rooms. Maximum light and ventilation is
provided.
The project of the Hillside Housing Corp. has been approved by the New
York State Housing Board. That Board has stated that the site selected
Is adjacent to localities in which congested and unsanitary conditions exist.
Further, it is said,such conditions cannot be remedied through the ordinary
operations of private enterprises so as to insure the construction of housing
facilities in conformity with reasonable standards of health, sanitation and
safety within the maximum rental rates for Bronx County prescribed in the
New York State Housing Law.
The New York Housing Act provides that no stockholders or bond
debenture holders may receive more than the amount of his original investment plus 6% cumulative dividends and no mortgage-holder more than
State
6%. Any surplus earnings in excess of those charges will revert to the
of New York on dissolution of the corporation.
per
The law further provides a maximum rental rate of $11 per room
of the land
month. The law provides at least one-third of the actual cost
capital in
and improvements shall be supplied from investment of private
more than
the stock and income debentures of the corporation and that not
bonds.
two-thirds of the actual cost of the project shall be raised by mortgage
is to be
The loan requested of the Reconstruction Finance Corporation
amount Is
secured by the mortgage bonds of the Hillside Corp. and the
two-thirds of the total estimated cost of $5.936,217. The rate of interest
State Law
Housing
York
New
will be 5%. the maximum permitted by the
and the rate of amortization 3% per annum of the amount of the loan plus
In each year the saving in interest in that year resulting from the reduction
in the amount of the loan in all prior years.
Starrett Brothers & Ekon, building contractors, are parties to the equity
syndicate and the application to the Reconstruction Finance Corporation
It is
provides that they are to be the general contractors on the project.
understood that the contractors gave guaranteed that the whole cost of
construction including builders and architects fees shall not exceed $5.222,branches of
300. The contractors propose to take competitive bids on all
the
the work,such bids being subject to review by the Housing Board and by
Reconstrcution Finance Corporation.
Rick
The land involved, which is bounded by.the Boston Post Road.
square
Street, 213th Street and East Chester Road has an area of 697,313
feet; it is now owned by Senator Nathan Straus Jr., a member of the equity
syndicate. The plot is approximately 540 feet by 1.300 feet. A central
center of
feature of the development will be a 244-acre playground in the
the units and accessible to all buidlings.
operain
now
law
housing
regulatory
a
with
New York is the only State
to apply
tion and for this reason is the only State eligible ta the present
passed a law
for loans under the terms of the relief act. Ohio has recently
States, it is
which will take effect on Jan. 1 of next year. Several other
of
construction
toward
looking
understood, are planning legislative action
similar projects.
The terms on which the loan was approved by the Reconstruction Finance
Corporation are in some respects different from those set forth in the application of the Hillside Housing Corp. to the New York State Honing Board.
These changes must be approved by the New York Housing State Board
before any advance can be made by the Reconstruction Finance Corporation.
Work Loan of $2,500,000 from Reconstruction Finance
Corporation Approved by Inter-State Commerce
Commission—Loans Aggregating $562,485 to Four
Additional Roads Approved—Additional Applications by Four Roads Aggregating $4,350,000
Filed.
A loan of $2,500,000 to the New York Central RR.from
the Reconstruction Finance Corporation has been approved
by the Inter-State Commerce Commission. Loans aggregating $562,485 to four additional roads have also been
approved, bringing the total loans approved to date to
approximately $350,015,678 to 72 roads. The carriers
which are to receive the advances are: Gainsville Midland
Ry., $25,000; Puget Sound & Cascade Ry., $300,000
Sumpter Valley Ry., $68,500, and Pittsburgh & West
Virginia Ry., $169,985. On May 28 last the Commission
approved a loan of $3,805,222 to the latter road, making
the total advances $3,975,207. However, the company
borrowed only $3,771,788 of the first loan.
Applications have been filed by four additional roads to
borrow a total of $4,350,000 from the Reconstruction Finance
3100
Financial Chronicle
Corporation. This brings the total amount of loans applied
for to date to approximately $441,131,336.
The reports of the Commission approving the loans follow:
New York Central Railroad
The New York Central Railroad Co.,on Oct.27 1932,filed an application
to the Reconstruction Finance Corporation for a loan under the provisions
of Section 5 of the Reconstruction Finance Corporation Act, approved Jan.
22 1932 as amended.
Heretofore we have approved loans to this carrier as follows $4,399,000
on March 23 1932; $13,600,000 on June 25 1932. The collateral security
which we required to be pledged for these loans consisted in the aggregate
of $49.075,000 of New York Central refunding & improvement mortgage
5% bonds of 2013, series C, and $4,494,000 of 6% bonds, series B, issued
under the same mortgage.
The Application.
The applicant requests a loan of $2,500,000 for a term of three years,
to be advanced in monthly installments of approximately $350,000 each
for the purpose of repairing equipment, thus providing employment and
stimulating business. The work contemplated would consist of repairs
to 10,000 steel box cars at an average estimated cost of $150 per car, and
repairs to 3,000 automobile box cars at an average estimated cost exceeding
$300 per car. For the first-named group the repairs would include floors,
linings, running gear, and painting, and in the second group, draft gears
and application of new roofs. The work would be done in the applicant's
shops and would require about 1,500 men for a period of seven or eight
months, on the basis of 40 hours of labor per week. The applicant, requests
permission, if conditions should be found to require it, to modify the foregoing program, reducing the number of box cars to be repaired from 10,000
to 7,500, eliminating the automobile box cars, and substituting 4,000
hopper cars and 1,000 stock cars. Further, the applicant may desire to
substitute for the hopper cars certain passenger and freight locomotives,
the repairs to which are estimated at $9,000 per locomotive. This locomotive
work would furnish employment to about 1,200 men for four or five months,
in the company's shops.
The applicant nelieves that the necessary funds for these purposes could
not be obtained through banking channels or from the general puelic.
The applicant is a party to the "Marshalling and Distributing Plan 1931,"
of the Railroad Credit Corporation but has neither applied for nor received
any loan from that Corporation. For the first six months of 1932 the total
amount payable to that Corporation from the emergency increases in
freight rates was $3,074,164.70. The minimum amount for the remaining
four months of the year is estimated at $2,125,000.
The income statements of the applicant for recent months show deficits
In net income as follows May, $3,903,796.86; June. $3,068,024.80:
July. $3,550,519.04; August, $852,981.30. For September a net income
of $5,900 is estimated. The balance sheet of Aug. 31 1932 shows cash,
$22,821,302.88, and total current assets of $76,930.436.47. Total current
liabilities were $106,572.107.91, of which $65,900,000 was loans and bills
payable. The cash statement shows $24,616,331.40 on hand as of Sept. 30
1932 a diminishing amount estimated at the end of each succeeding month,
and $16.611,730 on hand at the close of the year 1932.
Security.
The applicant proposes that the bonds pledged as collateral security for
the reconstruction loans heretofore approved as aforesaid be accepted as
adequate security not only for said loans out also ratably for the loan now
applied for. Including the latter, the total loans amount to $20,499.000.
The total principal amount of refunding and improvement mortgage bonds
pledged is $53.569,000. The series B 6% bonds are not listed and have
no ascertainable market value. They may, however, be considered at
least of value equal to the series C bonds, which are listed. Since Jan. 1
1932 the market price of the latter ranged from 33% to 78M.and on Oct. 28
was 52. If the entire amount of pledged bonds be appraised at the latest
market price above stated, their aggregate value will exceed 125% of the
total amount of loans, including that now under consideration.
Conclusions.
We conclude:
1. That we should approve a loan of not exceeding $2,500,000 to the
applicant by the Finance Corporation, for a period of not exceeding three
Years from the dates of the advances thereon, to be used for the purpose
of repairing freight cars or locomotives as herein described, the loan to be
advanced in installments in reimbursement of cash expenditures hereafter
made by the applicant in the repair of such equipment;
2. That the applicant should agree with the Finance Corporation that
all of the collateral security now pledged with that Corporation shall apply
equally and ratably as collateral for this and all other loans to the applicant:
3. That prior to each advance upon the loan the applicant should deposit
with the Finance Corporation and with us a verified statement of cash
expenditures hereafter made by it in the repair of said equipment;
4. That no advances should be made upon the loan In excess of such total
expenditures previously reported by the applicant to the Finance Corporation and to us. in connection with the repair of said equipment;
5. That no advance should be made upon the loan in reimbursement
for expenditures for work performed upon said equipment or for materials
purchased prior to the date of the approval of this loan.
Gainesville Midland Ry.
Gordon C.Carson and W.B. Veazey, receivers of the Gainesville Midland
By., on Sept. 9 1932 made application to the Reconstruction Finance
Corporation for a loan under the provisions of the Reconstruction Finance Corporation Act, approved Jan. 22 1932, as amended.
The Application.
The applicants request a loan of $55,105.42 for a term of three years,
with privilege of repayment in full or in part before maturity, to be expended in meeting the following obligations: To reimburse the treasury
of the receivers for expenditures made to take up pressing obligations
and avoid forced sale of property, as follows: (1) Purchase of underlying
bonds in default, at par, $14,000; (2) purchase of $16,000 of general lien
bonds. at $11.60 per $100, $1,851; (3) purchase of $8,500, face amount.
of notes at $4,250;(4) settlement of claim of Cllnchfield Fuel Co.,$2,524.60;
(5) settlement of claim of City of Gainesville for paving assessment,
$565.82;(6) purchase of compensation allowance, payable out of proceeds
of sale of property, $19,275; all of which Reim; total $42,466.42; and the
remaining amount of the loan, $12.639, to be used (1) to pay a note of
$10,000 due Nov. 5 1932 to the Gainesville National Bank, Gainesville,
Ga.;(2) to pay a note of $1,139 due Dec. 1 1932 to C. G. Kershaw Contracting Co., Birmingham, Ala.; (3) to pay cost of constructing a water
tank and pump at Gainesville, Ga., $500, and (4) to purchase two rebuilt
combination passenger and express coaches, $1,000.
The apt:II:cants are not parties to the "Marshalling and Distributing
Plan, 1931" of the Railroad Credit Corporation
Nov. 5 1932
There are no debits or credits existing between the applicants and the
United States other than those arising from mall pay, transportation of
troops, or income tax matters. Settlement under Section 209 of the
Transportation Act, 1920, was made by the payment of $46,449.63 to
the receivers. Guaranty Settlement with G. M. By., 90 I.C.C. 764.
Transportation Properties and Operations.
The property operated by the applicants and owned by the Gainesville
Midland By. Is a standard-gauge steam railroad extending from Gainesville
to Fowler Junction, Belmont to Monroe, and Gainesville to New Holland,
all in the State of Georgia, comprising 72.184 miles of first-main track
and 11.243 miles of yard tracks and sidings. In addition to operation
over these owned tracks, trains are operated under a trackage right over
the tracks of the Seaboard Air Line By, from Fowler Junction to Athens,
Ga. The equipment owned consists of four steam locomotives, three
passenger-train cars, nine freight-tra,n cars and three motor buses. An
appl cation for a certificate of public conven'ence and necess ty to permit
the abandonment of the line of railroad extending from Belmont to Monroe,
32 redles, was denied in Gainesville Midland Reorganization, 138 I.C.C.
585. The principal commodities carried by the applicants' railroad are
cotton, cotton-factory products, coal, stone, lumber. fertiziller, grain
and petroleum products.
Necessities of the Applicant.
The applicants expended $42,466.42 in the acquisition of securities and
payment of debts which had been allowed the status of prior liens by the
court, and which would have otherwise necessitated a forced sale of the
property without the opportunity for making orderly reorganization plans.
These expenditures were made from current revenues and have now reduced the receivers' resources to a point where there is no cash working
capital, and the payments of payrolls and vouchers for supplies are several
weeks behind. As stated above, the applicants require $12,639 for payment
of notes, construction of water facilities and purchase of equipment. Supplemental itemized statements show that $11,903 additional is required
to meet payrolls, car mileage and per diem due carriers, interline freight
balances, and audited vouchers. If a loan can not be made for the purpose
of reimbursing the treasury in the amount of $42,466, expended for purposes
stated above, the applicants request $25,242 for the items enumerated
above totaling $12,639, the $11,903 referred to, and $750 for taxes duo
Sept. 1 1932,
Security.
As security for the loan the applicants offer receivers' certificates to
be isued under authorization of the court of jurisdiction, none having
heretofore been issued and there being no other obligation having a superior
lien. The receivership has no debts other than those to be liquidated
with the proceeds of the loan here applied for.
Pursuant to Section 10a of the Inter-State Commerce Act we found the
value for rate-making purposes as of June 30 1915 of the property then
owned and used by the Gainesville Midland By. to be $1,174,665, including $24,665 for working capital. If there be subtracted $24,125
representing net retirements to Dec. 311931, the total becomes $1,125,875,
exclusive of working capital.
The applicants have filed with us statements of income for the years
1921 to 1931 inclusive. The average annual net revenue from operation
for these 11 years was $35,245 and the operating ratio for the same period
85%. The average annual tax accruals for this period were $6,570.
During these years the annual average amount available for interest was
$4,913. For the period 1921 to February 1926 the annual interest on
funded debt was $51,187. During the years 1927 to 1931, inclusive, no
interest was accrued on funded debt. During the same period the interest
on unfunded debt averaged $3,803 per annum. The net income for the
period 1927 to 1931, inclusive, averaged $8,225 per annum, including
a deficit of $7,387 for the year 1931. For the first six months of 1932
there was a deficit of $6,432 in the net operating revenue, an operating
ratio of 110%, and a dercit of $16,020 in the net income. For the last
six months of 1932 the applicants estimate net revenue from operation
at $7,411, an operating ratio of 86.7%, and a deficit of $307 In net income.
The applicants represent that the physical condition of the property
has been maintained, and is adequate to handle an appreciably greater
tonnage economically and profitably upon the resumption of normal
business conditions. The additional industrial tracks constructed at
Gainesville. Ga., during the past year will produce gross business estimated,
at $8,000 to $10,000 per annum. There are also good prospects for receiving the haul on materials for the construction of about 60 miles of new
highways in the vicinity in the near future, and additional amounts of
similar traffic during the term of the loan.
Conclusions.
Upon consideration of the application and after investigation thereof,
we conclude:
1. That we should approve a loan of not exceeding $28,000 to the receivers of the Gainesville Midland By. by the Finance Corporation for
a term not to exceed three years from the date thereof, to be used for the
payment of principal and interest on notes, overdue vouchers and payrolls, as above set forth.
2. That the applicants should pledge with the Finance Corporation.
as collateral security for, or direct evidence of, the loan $25,000, principal
amount, of receivers' certificates of indebtedness, duly authorized by the
court of jurisdiction in the receivership proceeding, such certificates to
have a paramount first lien on the property of the Gainesville Midland By.
3. That the applicants should be required to report, in writing, to the
Finance Corporation and to us, within 30 days from the making of the loan,
the expenditures of the proceeds thereof for the purposes for which it
Is authorized.
Pittsburgh & West Virginia Ry.
The Pittsburgh & West Virginia By. on Feb. 20 1932. filed an application for a loan of $7,608,582 from the Reconstruction Finance Corporation, under the Reconstruction Finance Corporation Act., approved Jan.
22, 1932, as amended. The application was supplemented on April 4 1932.
We certified our approval, on May 28 1932, of a loan of
$3,805,222 for
specified purposes, without prejudices to consideration of additional loans
applied for. We required the pledge as collateral security for that loan.
of $1,787,500 of the applicationt's first mortgage series D 4j.% bonds of
1660, $7,446,000 or its general mortgage 6%
bonds of 1952. and 4,200
shares of the preferred stock and 28,400 shares of the common stock of the
Wheeling St Lake Erie By.
The applicant borrowed only $3,771,788 of the loan approved by us,
pledging as security therefor $1,788,000 of its first mortgage
% series D
bonds and all other securities required under the aforesaid certificate. The
remainder of $33,434 of the loan was approved for the purpose of paying
50% of certain bank loans, but through failure of the banks to fulfill the conditions imposed in our certificate, or by reason of payment of a portion of
the bank leans prior to our approval of the loan from the Finance Corporation, the applicant has been unable to draw down this amount.
Volume 135
Financial Chronicle
The Application.
The applicant filed on Sept. 27 1932, a supplemental application, which
It amended by letter on Oct. 20 1932. In the amended supplemental
application the applicant requests a further loan of $403,419.53, of which
$300,000 was embraced in the original application and consideration thereof
deferred in our original report. Advances are desired for the purpose of
Paying $20.250 of interest due Nov. 1 1932, on the applicant's equipment
trust certificates, series of 1924: $300,000 of principal of the same certificates, maturing Nov. 11932, and $83,169.53 of interest due Dec. 12 1932,
held by banks. The
on notes of the applicant aggregating $2,957,500,
applicant desires the loan for the full term of three years.
and
Distributing Plan,
"Marshalling
the
to
party
a
The applicant is
1931," of the Railroad Credit Corporation, and for the first six months of
from
1932 paid to that Corporation 853.706 representing revenues received
emergency increases in freight rates. It has borrowed from the Credit
inan
leaving
repaid,
been
has
$20.250
which
of
$549.635.
Corporation
debtedness of $529,385.
The loan previously approved included $575,000 for the payment of
capital stock taxes and condemnation awards. The applicant advises that
it has expended to date only $370,998 of the sums borrowed for these purposes, leaving an unexpended balance of $204,002. By reason of advantageous capital stock tax settlements, it asserts that no portion of the
balance of $107.857.71 remaining of the sum borrowed to meet these
obligations will be needed for that purpose. Requirements for condemnation awards in the immediate future will average approximately $10.000
per month. The applicant expects to be able to meet these payments out
if the security
of its current cash balance. The applicant suggests that
offered is considered inadequate for the additional loan requested persums previunexpended
of
the
of
diversion
for
$200,000
granted
mission be
ously borrowed, to the part payment of obligations for the payment of
which the loan is now sought.
Security.
As security for the additional loan applied for, the applicant offers
the collateral heretofore pledged for the original loan of $3.771.788, and in
addition offers to pledge $601,000 of its general mortgage 6% bonds of
1952, the issuance of which was approved in our order of Oct. 22 1932.
None of the general mortgage bonds are in the hands of the public and
there are no recorded sales indicating their value. The last reported sale
of applicant's first mortgage 44i% series B bonds of 1959 was on Oct. 13
1932, at 38,and of its 446% first mortgage series C bonds of 1960 on Oct. 26
at 374I• The lien of these two issues is superior to that of the general
mortgage bonds.
The applicant's operations during the firts eight months of 1932 resulted
in large deficits, but through loans from the Finance Corporation and the
Railroad Credit Corporation, it has been able to meet all maturities of principal and interest on its capital obligations to date. Currently it has on
hand unpaid operating vouchers in the amount of $50.796, of which $1,662
was vouchered in August 1932, and the remainder in September and October.
Improvement in traffic conditions in Septemter and October was such
that, taking into consideration credits of $56,000 due to settlement of
capital-stock taxes, the applicant expects to earn a net income during the
last quarter of 1932. If the improved traffic conditions continue throughout the remainder of the year, its gross income supplemented by the loan
herein under consideration and a prospective loan of $67,500 from the
Railroad Credit Corporation, will be sufficient to meet all of its maturities
of principal and interest in 1932.
During 1933 the applicant has equipment obligations maturing in the
amount of $434,000. but has no other principal payments to make on
long-term funded debt. Its interest requirements during the year will
amount to approximately $1,060,000. Operations on the basis of business
conditions existing throughout 1932 would fail by approximately $700,099
to yield funds sufficient to meet these obligations.
The applicant has short-term loans and bills payable outstanding in the
amount of $896,253. consisting of a secured note for $325,000 due Nov. 2
1932, held by the Pennroad Corp., an overdue unsecured note for $41,868
held by a bank, and $529,385 of secured demand notes held by the Railroad Credit Corporation.
Conclusions.
Upon consideration of the supplemental application and after investigation thereof, we conclude
1. That we should approve a further loan of not exceeding $169,985
to the applicant by the Finance Corporation, for a period not to exceed
three years from the date thereof, to be used for the purpose of paying in
part the principal and interest of equipment trust certificates series of 1924,
due on Nov. 1 1932. and interest due on bank loans on Dec. 12 1932.
2. That we should approve the diversion to the payment of principal
and interest of equipment trusts due Nov. 1 1932, and interest due on
bank loans on Dec. 12 1932, as hereinbefore set forth, of unexpended sums
aggregating 8200.000 heretofore borrowed by the applicant from the
Finance Corporation for the purpose of paying capital stock taxes and
condemnation awards, under the conditional approval set forth in our
certificate of May 28 1932, in this proceeding, and of the sum of $33,434,
the loan of which by the Finance Corporation was likewise conditionally
approved by us in said certificate for the purpose of paying 50% fo certain
bank loans, said sum not having been borrowed heretofore by the applicant.
3. That all other terms and conditions in respect of said loans aggregating $233,434 shall be and remain as set forth in said report and certificate of May 28 1932, in respect of loans therein conditionally approved for
purposes other than payment of bank loans.
4. That the applicant should pledge with the Finance Corporation, as
additional security for loans from the Finance Corporation, $601,000 of
Its general mortgage 6% bonds of 1952.
5, That the applicant should agree with the Finance Corporation that
all of the securities heretofore pledged as collateral for the loans covered
by our previous certificate in this proceeding shall apply equally and ratably
to all of said loans and to the loan herein conditionally approved.
6. That the applicant should agree to pledge, as further security for its
loans from the Finance Corporation, such other and additional securities
as may from time to time be required by that Corporation.
3101
on condition that it be guaranteed by the Pennroad. This additional loan
and diversion of part of the other I would approve only on that basis.
The chief beneficiary of this loan is the Pennroad Corp. I perceive no
reason why it should not be required to assume some responsibility for
the repayment of Government funds advanced for its benefit.
Puget Sound & Cascade Ry.
On Aug. 15 1932, the Puget Sound & Cascade Ry. filed an application
to the Reconstruction Finance Corporation for a loan under the provisions
of section 5 of the Reconstruction Finance Corporation Act, approved
Jan. 22 1932, as amended.
The Application.
The loan applied for is $300,000, to be repaid on or before three yearsfrom
date, and to bear interest at a rate to be fixed by the Finance Corporation.
The loan is desired, to liquidate indebtedness to the Puget Sound Pulp &
Timber Co. on open account, which, as of June 30 1932, amounted to
$298,61C.29.
The applicant states that, due to prevailing conditions in the finance
market, it has been unsuccessful in its efforts to secure the necessary funds
from private banks either in the State of Washington, the city of New York
and elsewhere.
The applicant is not a party to the "Marshalling and Distributing Plan,
1931," of the Railroad Credit Corporation and it has not applied to that
Corporation for a loan. To date the applicant has collected no revenuesfrom
emergency rate increases.
Transportation Properties and Operations.
The applicant was incorporated under the laws of the State of Washington
on July 1 1912, and began operations as a common carrier on Sept. 11916.
As of Aug. 10 1932, it owned and operated a line of railroad extending from
Mt. Vernon to Finney Creek Jct., a distance of approximately 27 miles,
and a branch line from Mt. Vernon to Burlington, a distance of approxmately 5 miles, all in the State of Washington. It also owned and operated approximately 4 miles of yard tracks and sidings. In 1924 the applicant acquired approximately 9 miles of line, from Potts to Finney Creek,
from the Clear Lake Lumber Co., and in July 1932, it acquired from the
North Coast Transportation Co. the 5-mile branch line to Burlington. The
Puget Sound Pulp & Timber Co. controls the applicant through direct
ownership of all of its capital stock.
The applicant owns one locomotive, one caboose and one gas passenger
car. It leases from the pulp company two locomotives, 132 log flats. 7 flat
cars, 14 fuel cars and 10 ballast cars. Equipment used for interline freight
is supplied by connecting carriers.
The main purpose of the construction of the applicant's road was the
removal of private, State and Federal timber located along the south side
of the Skagit River. Approximately 60% of the freight revenue is derived
from the hauling of lumber and finished lumber products, approximately
30% from the hauling of pulpwood timber, to the saw mills on the line and
Pulp logs to tidewater on the Skagit River, and the remaining 10% from
the hauling of oil, fuel and canned goods. During 1931 the products of
forests amounted to 367,434 tons, or 98% of the total tons of revenue freight
carried. Beside the State and Federal timber holdings there are in excess
of 20 private owners of timber along the line who depend solely upon the line
of the applicant for an outlet. At present there is a cessation of forest
products operations along the applicant's line due to adverse conditions in
markets for these products. The virgin timber in the applicant's territory
Is estimated to exceed two and one-half billion feet.
Necessities of the Applicant.
In August 1925, the Clear Lake Lumber Co., which then controlled the
applicant and conducted lumber operations in the territory, was placed in
receivership. Subsequent litigation prevented resumption of lumber
operations until 1929, when the properties of the Clear Lake Lumber Co.
were sold to the pulp company. Certain advances were made by the pulp
company to the applicant for rehabilitation of the railway property on the
resumption of operations. As of Dec. 31 1929. the balance sue on open
open account to the pulp company was $398,708.63, the oulk of which was
originally incurred in 1924 when the applicant extended its line to Finney
Creek. As of June 30 1932, tne deot of the applicant on open account to the
pulp company was as previously stated, $2 8,610.2e.
The applicant states that it has no cash at present all funds being collected by the pulp company and applied upon the applicant's indebtedness.
All its bills are paid by the pulp company and charged in the open account.
The loan requested is needed by the pulp company primarily to re-establish
its normal working-capital position. The pulp company proposes to apply
the proceeds of the loan to payment of three notes and interest thereon,
aggregating $158,356.40, the largest amount being due the National Bank
of Commerce of Seattle, Wash., county taxes amounting to $37,547.69;
and 37 miscellaneous accounts, aggreating $104,095.91. The pulp company in July 1932, discharged its outtstanding first mortgage of $4,500,009
by deeding certain of its properties to the bondholders thereby eliminating
interest accruals and fixed charges. In the final settlement with the bondholders the working capital of the pulp company has been severely taxed
and it has urgent need for the proceeds of the loan requested by the applicant.
Security.
As security for the loan applied for, the applicant offeres to pledge
8300,000 of new first-mortgage 6% bonds, to be dated Aug. 15 1932, and
to mature Aug. 15 1937. the bonds to be secured by a mortgage deed of trust
upon all the assets of the applicant, real, personal and mixed. The applicant, simultaneously with its loan application, has applied to us for authority under section 20a of the Inter-State Commerce Act to issue such securities, Finance Docket No. 9586. As additional security, the applicant
offers the guaranty of the pulp company, a corporation reported to have a
net worth in excess of $4.000.000.
As of June 30 1917, we found the value for rate-making purposes of the
applicant's property to be $429,513, including $2,902 on account of working
capital. Since that date and up to and including Dec. 311932, the applicant has reported to us net additions and oetterments costing $371,675.
If this sum be added to the single-sum value stated above,the total becomes
$801,188. This does not include the 5-mile extension from Mr. Vernon to
Commissioner Mahaffie, dissenting, states:
Burlington, acquired in July 1932, which the applicant states has a depreciated value of $178,989.
For the first eight months of 1932 the applicant had a deficit in net
As of June 30 1932, the comparative general balance sheet of the appliincome of $474,821. Its first mortgage bonds are selling at less than
The
secured
by
loan
dollar.
largely
is
present
shows investment in road and equipment of $844,502 and in miscant
the
second
40 cents on
cellaneous physical property $4.814. Its current assets amounted to
mortgage bonds. The additional security for the loan now approved by
of bonds to be issued under that mortgage.
$22.313 of which $19,513 represented materials and supplies. Its outthe majority consists entirely
standing capital stock amounted to $350,400 of which $175.400 is common
All junior bonds heretofore issued are pledged for the present loan. The
on
earning
interest
a
not
is
lien
property
that
on
its
and $175,000 preferred. The applicant has no long-term debt. As herevalue of a second
inbefore stated it had non-negotiable debt to the pulp company on open
obligations is difficult to appraise. Additional bonds issued under the ciraccount of $298.610. Its current liabilities amounted to 834.115. of which
'tances here add nothing to the value of the security.
the action of the majority approving the former loan
$30,807 represents a rail purchase contract to be assumed by the pulp
p In dissenting from the
security was inadequate, I pointed out that the
that
company as of July 31 1932.
on the ground
For the 11-year period 1921 to 1931 railway operating revenues averaged
pennroad Corp. controls this applicant oy the ownership of about threethat
would
make
I
loan
I
that
stock.
only
$100,001.
railway operating expenses $95,839, and deficit in net railway
stated
capital
its
fourths of
3102
Financial Chronicle
Nov. 5 1932
operating income $5,101. There were no deductions
from income other
253,
we
authorized the abandonment in inter-State commerce of approxithan interest, which averaged $5,246. The average
deficit in net income
mately 20 miles of railroad extending from
for the period was $10,347. For the first six months
Bates to Prairie City. In
of 1932 the applicant
these proceedings it also appeared that the
had a deficit in net income of $23,719 and
applicant's line of railroad was
estimates a further deficit in net
the only feasible outlet for more than
income of $20.015 for the last six months of
1,000.000,00
0 feet of timber and that
the year.
public convenience and necessity required
For 1932, the applicant estimates expenditures of
continued operation of the
$40,359 for mainremaining portion of the road as a common carrier.
tenance of way and structures and $1,313 for maintenance
The Oregon Lumber
of equipment.
Co.owns timber holdings in the territory served
These amounts include estimated charges
and is absolutely dependent
of $38.917 for depreciation of
Upon the applicant for transportation service
way and structures and $1,143 for depreciation
in connection with more
of equipment. For 1931
than 20 miles of connecting logging roads with
expenditures for maintenance of way and structure
railroad equipment representtotaled $57,069, ining an approximate investment of
eluding charges of $38,954 for depreciation, and
$325.000
and
the products of milling
for maintenance of equipplants located at Bates, Whitney. and Baker.
ment $14.836, including charges of $1,119 for
Ore., representing an aggredepreciation. Equipment
gate investment of more than $500,000. To
rentals paid in 1930 and 1931 amounted to
improve business the applicant
$9,600 and $41.912. respectively,
proposes to reduce rates on timber and forest
and for 1932 are estimated at $503.
products to such extent as
will allow lumber mills located on its line
The applicant states that its ability to repay
to
resume operations, provided
the loan from railway earnthe proposed loan is granted in an amount
ings is dependent on resumption of normal industrial
sufficient to free the applicant
activity. An operfrom pressing maturities and burdensome
ating study for the month of May 1931, the last month
fixed charges.
to reflect normal
The applicant has applied to the Railroad
operating results,indicates a net income of$7,237 before
Credit Corporation to become
payment of interest.
a party to the "Marshalling and Distributing
The estimated monthly net income anticipated from the
Plan. 1931," but has not
recently acquired
applied for a loan from that corporation nor
Burlington branch line is $1,200. With lumbering operations closed won
made any payment to its
funds
arising
from
emergency increases in freight rates.
the average monthly deficit in net income before the payment
of interest
is estimated to be $3,215.
Necessity of the Applicant.
It is represented that even if the present curtailed operations
of the
The applicant is indebted to the Oregon Lumber
applicant were to continue indefinitely, the pulp company would
Co. evidenced by an
be able to
unsecured
note
of
$100.000
which matures in 1942. No exigency has been
discharge the applicant's obligation under the proposed loan. The applicashown to warrant the approval of a loan to take
tion contains a monthly operating study of the pulp companys' operations
up that note at this time.
Due to the decline in the lumber market and
under market conditions as they exist at present, based upon the reduced
the general falling off in its
revenues the applicant is unable to meet interest
costs of production since June 1 1932. This study indicates a monthly net
and sinking fund requirements on its funded debt, maturing Jan. 11933,
income of $10,430 before any deductions are made for depreciation or
taxes accrued for the years
1931 and 1932, and the necessity of relief in respect
interest.
to a demand note held
by the First Securities Corp.
The consolidated balance sheet statement of the pulp company as of
Security.
July 11932.after giving effect to the division of properties as between bondThe capital stock of the applicant consists of $1,000,000
holders and stockholders, shows fixed assets of $4,858,112. exclusive of the
common capital
stock authorized, of which there is outstanding $775,000.
appliant's property and intangibles; current assets of $661.403; capital stock
The David
Eccles
Co.
owns
of
84%
the
outstanding stock and guarantees payment of
outstanding $4,201.015: contracts payable $798,779; notes payable and
principal and interest on the carrier's outstanding bonds.
Current liabilities $627,8.16 and reserves for depreciation, depletion, repairs
As security for
the loan the applicant offers its first mortgage
and taxes totaling $985.121.
serial 6% gold bonds, due
$15,000 annually from Jan. 1 1933 to Jan. 1 1940. inclusive,
The item of fixed assets of the pulp company $4.858,112, includes timber
$20,000 Jan. 1
1941. and $450.000 in 1942, in the proportion of $100. face
and timberlands $1,570,430; plant sites and other lands $336,721; plant
amount, of
bonds for each $70 ofloan. the loan to be further secured oy the
machinery and equipment $2,447,305; rolling stock leased to the applicant
unrestricted
endorsement and guaranty of the David Eccles Co. of Ogden Utah.
$206,198 and logging equipment $297.458. The figures stated are the pulp
and
the Oregon Lumber Co. These bonds are not quoted nor listed
company's book values. We will required the pledge of these assets as
upon any
exchange. In Sumpter Valley Ry. Co., 141 I.-S. 0. C. 466,
security in part for the loan.
we found
the rate-making value of the applicant's property as of June
Subsequent to July 11932, the applicant adjusted the item of $798.779,
30 1916,Including the 20-mile portion abandoned, to be $1.609,745,
contracts payable, by converting two of the major contracts aggregating
which included
$129,745 for working capital, since which time the applicant has reported
$456,148 into options to purchase the timber, thereby reducing the liability
to us net additions and betterments to the property costing
by that amount. This required a per contra adjustment in the item timber
$196,212.
The applicant's first mortgage is a first and prior lien on all of its property.
and timberlands which as adjusted embrace approximately one billion feet
During
the
period
1921
1931.
to
inclusive,
the
of contract and fee timber.
carrier's average annual
receipts from operation were $368,151, operating expenses
The items plant sites and other lands and plant machinery and equipment
$281,906,
interest on funded debt $46,544, net income $12.608. Maximum
cover among others the important operating units of the Puget Sound Pulp
receipts
from operation during the period occurred in the year 1924 in the
& Timber Co. at Anacortes, Wash. (pulp mill with 70-ton daily capacity);
amount
of
$491.056.
Operating
expenses
ranged
from a minimum of $118,863 in
Bellingham, Wash. (pulp mill with 90-ton daily capacity); and at Clear
1931 to a maximum of $398,125 in 1924.
Lake, Wash.(saw and shingle mill with 300,000 feet daily capacity). The
We do not find the security offered nor the applicant's need
pulp company in these and its other operations, including the applicant.
for funds
sufficient to support a loan of $226.000.
employs a maximum of from 3,000 to 3,500 men.
• The pulp company has had under contemplation a financing program
Conclusions.
which, it is claimed, would secure ample working capital. Owing to its
Upon consideration of the application and after investigation
inability to secure any public financing at this time the pulp company has
thereof,
we
conclude;
found it necessary to seek repayment of advances made to the applicant in
1.
That
approve
we
a
loan
should
of
not
exceeding
order to tide it over until public financing can again be undertaken. It is
$68,500 to the applicant
by the Finance Corporation, for a period not exceeding
stated that a recovery in the securities markets would provide another
three years from
the date of the several advances thereon, to be advanced
avenue to the pulp company for repayment of the loan.
as follows;
(a) $16,000 to meet the taxes accrued for the years
While in form a loan to a railroad, this is, in substance, a loan to the
1931 to 1932 to be
advanced upon the granting of the loan;
Puget Sound Pulp & Timber Co. It appears that the railroad is an eligible
(b) $37,500 to pay and discharge in part a demand note held by the First
applicant under the law, while the pulp company is not. Hence the form
Securities Corp. of Ogden. Utah, provided the First Securities
in which the application is presented. The railroad owes money to its
Corp. agree
to accept a three-year promissory note of the applicant
proprietor. With the security furnished by that concern, and with its
in the same face
amount; and
guaranty of the obligation, the loan seems to be adequately secured.
(c) $15.000 to meet sinking fund requirements as of Jan. 11933;
Whether it is proper to use an arrangement of this character to secure funds
2. That the loan should be secured by the deposit and
for a corporation which is not itself eligible to borrow, presents a question
pledge of not less
than $286,000 of applicant's first mortgage serial 6%
by no means free from doubt under the terms of the Reconstruction Act.
gold bonds due not
later than Jan. 1 1942 to be deposited pro rata as
But we take it that question must be determined by the Board of the Readvances on the loan
are made;
construction Finance Corporation rather than by us.
3. That the applicant furnish unrestricted endorsements
and guaranties
as to the payment of both principal and interest of the
Conclusions.
note or notes evidenoing
this loan by the David Eccles Co. and the Oregon Lumoer
Upon consideration of the application and after investigation thereof,
Co.
we conclude
Application for loans from the Reconstruction Finance
1. That we should approve a loan of not to exceed $300.000 to the
Corporation have been made by the following railroads:
applicant by the Finance Corporation, for a term of not exceeding three
Kansas City Terminal Ry
years from the making thereof,for the purpose hereinabove set forth;
$700,000
Morristown
& Erie RR
2. That the applicant should pledge with the Finance Corporation, as
150,000
Pere Marquette Ry
collateral security for the loan, an equal principal amount of bonds to be
1,000,000
Seaboard Air Line Ry
1,500,000
issued under a new closed first mortgage upon all of its property:
Morristown & Erie RR.
3. That as further security for the loan the pulp company should deposit
with the Finance Corporation a first mortgage lien upon all its physical
The company asks for $150,000 to pay off bank loans
and overdue State
assets, In form satisfactory to that Corporation;
taxes.
4. That the loan should be further secured by the unrestricted indorseKansas City Terminal Ry.
ment and guaranty of the pulp company;
The company asks for $700.000 to be used to
construct extensions of
5. That the applicant should be required to notify the Finance CorporaIts line in Kansas City, Mo., the loan to be secured
by the pledge of capital
tion and this Commission, within 30 days from the making of each advance
stock
of the Jasper Land & Improvement Co.
of the loan, the dispostiton of the proceeds thereof.
Pere Marquette Ry.
Sumpter Valley Railway.
The pm Marquette Ry. asks permission to borrow
The Sumpter Valley Ry. filed with us on Aug. 10 1932
an additional S1,an application to
000,000
to
interest
offers its first mortgage 454% bonds
pay
and
the Reconstruction Finance Corporation for a loan under the provisions
as collateral
security.
Section
5 of the Reconstruction Finance Corporation Act, approved
of
Seaboard Air Line Ry.
Jan. 22 1932 as amended.
The loan is intended to enable the receivers to discharge
The Application.
claims of creditors against the receivership estate for labor, materials
The applicant requests a loan of $226,000, for a term of not exceeding
and supplies rendered
or furnished to the railroad within the six months
three years from the date the several advances thereon are made, for the
prior to the receivership.
Security is to be in the form of registered receiver's
following purposes
certificates.
(a) $100,000 to pay indebtedness to the Oregon Lumber Co., maturing
1942, and $5,000 accrued interest thereon;
Charles R. Crisp Qualifies As U.S. Tariff Commissioner.
(b) $15,000 to meet sinking fund requirements as of Jan. 1 1933;
(c) $16,000 to discharge tax accruals for the years 1931 and 1932;
The Tariff Commission recently announced that the
(d) $15,000 for improvements of road and equipment; and
Honorable Charles R. Crisp of Americus, Ga., has taken
(e) $75,000 to pay and discharge a demand promissory note held by the
First Securities Corp. of Ogden, Utah.
the necessary oaths which qualify him as a member of the
Transportation Properties and Operations.
Tariff Commission.
The applicant, incorporated under the laws of Oregon, owns and operates
The President appointed Judge Crisp to fill the vacancy
79.43 miles of railroad consisting of a 3-foot narrow-gauge line extending
caused
by the death on Sept. 16 of Lincoln Dixon, Democrat,
connection
with
Oregon
the
from a
-Washington RR. & Navigation Co.'s
of Indiana. The appointment is for the term ending Juno
line at Baker, Baker County. to Prairie City, Grant County, Ore. In
Sumpter Valley Ry. Co. Abandonment, 175
C. C. 13, 184 I.-S. C.0.
16 1937.
Volume 135
Financial Chronicle
3103
This brings the Tariff Commission again to its full strength
of six Commissioners. These Commissioners are: Robert L.
O'Brien, Chairman, Republican; Thomas W. Page, ViceChairman, Democrat; Edgar B. Brossard, Republican; John
Lee Coulter, Republican; Ira M. Ornburn, Democrat, and
Charles R. Crisp, Democrat.
"I have long opposed cancellation of foreign debts," the Senator went on,
"but I would not hesitate to trade these debts for prosperity for the
American farmer."
As to cash payment of the bonus, he remarked:
The American Legion, like any other organization, even the Republican
and Democratic parties, is controlled by a few men. In my judgment, the
bonus resolution passed by the Legion in Portland does not reflect the
majority view of the overseas veteran."
Senator Borah Would Have Government Issue Five
Billion Additional Currency in Behalf of Farmer—
At "Potato Day" Celebration in Idaho Said
"Reflation" Would Put Wealth Back on Proper
Basis—Opposed to Bonus.
At a "potato day" celebration at Shelley, Idaho, on Oct. 19,
Senator Borah asserted that the Government would be
justified in issuing $5,000,000,000 additional currency. "I
don't care what they call it, I am for more money," he is
quoted as saying. "They can call it Inflation; I call it
common sense." From Associated Press accounts from
Shelley we also quote:
Senator Borah Says He Advocates What He Believes
'Republicanism."
Associated Press advices from Idaho Falls, Idaho, Oct. 19,
stated:
"That's something that neither one of the candidates for President in
the present campaign will dare mention. They will mention it before the
depression is over."
With money in hiding and credit withdrawn, Senator Borah said, the
farmer cannot market his crop. He declared the issuance of more money
was not inflation, but "reflation," which he described as putting the wealth
back on a proper basis.
Saying that the American farmer is under a load of $25,000,000,000 to
$30,000,000,000 debt, the Senator declared the "country never can come
back until the farmer is out of debt and he never can get out of debt
under present conditions."
He urged that finance companies, insurance companies and banks be
brought into agreement to refinance farm mortgages.
Admitting this is a "difficult problem," he said the "United States
Government has something to do with the Federal Land Bank System."
"Has there been any liberalization in the Federal Land Bank System?
I have not been able to notice it. Federal Land Banks are not only foreclosing but taking every form of security they can get. There ought not to
be a single foreclosure so long as the farmer is honest, until the Government
devises some method of raising the farmer out of his present difficulties."
Mr. Borah declared more than one-fourth of the public money is being
spent to pay for the World War.
"I have been and still am opposed to what they call the bonus," he went
on. "Speaking for myself, and with entire respect for the brave boys who
went to the front, I am opposed to payment of the $2,500,000,000 bonus
as long as the United States Treasury is anywhere in its present con.
dition."
He declared that if there is no reduction in taxes, "there will be no real
prosperity for decades to come."
He demanded the same decrease in the salaries of "public officials that
private individuals have had to take the last few years," and said if a
member of Congress does not accept a reduction in salary he will not be
very anxious to reduce public expenses.
Saying, "Since arriving in the city, some one handed me a newspaper
statement saying Senators received traveling expenses of 40c. a mile."
Senator Borah stated in the last session mileage was decreased from 20c.
to Sc. a mile, and Congress cut Senators' salaries 10%.
Senator Borah said his addresses "are not in accord with any political
platform, but they express my views and I suppose I'll continue to express
them."
With 75% of the gold held by the United States and Prance, Senator
Borah said other nations were powerless to buy American goods because of
this situation and because of demonetization of silver, which he termed
the "primary money of over half the world."
In an emphatic conclusion, he declared: "We are in too large a measure,
in my judgment, victims of the crime which began in 1914."
Senator Borah, who is Chairman of the Senate Committee on Foreign
Relations, made an impassioned plea for international reduction of armaments and ended with an appeal for a time when the "human race gets
back to a place where it can devote brain and brawn for the benefit of
mankind and not for the murder of fellow-men."
At Malad, Idaho, Oct. 12, Senator Borah had the following to say, according to Associated Press accounts:
Denouncing the gold standard dollar of the present as "not an honest
dollar," Senator Borah to-night appealed for an expansion of currency to
"give the American people a medium of circulation to replace that in
hoarding."
At the same time, he assailed demands of the American Legion for full
payment of the bonus, asserting the veterans had already received
$6,000,000,000 since the war.
He disclaimed being an authority on the money problem and had turned
to those supposedly informed on that subject for guidance.
"What I found was that they knew no more than I did," he commented.
they were authorities on the collection of interest."
Stating that the discovery of gold in Alaska had come at a time when the
lack of a circulating medium was becoming felt, he held that this had
given a great stimulus to American industry.
"If we had another such gold strike," he added, "it would revitalize
Industry.
The sante stimulus could be given by an expansion of currency "to replace
these hoarded billions," which he estimated at $3,500,000,000, leaving only
$1,500,000,000 in circulation.
Making a plea for the restoration of silver as a purchasing medium in the
Orient, he went on:
"In all calmness and deliberation I consider that the action of the
international bankers in demonetizing silver and virtually destroying the
purchasing power of over 800.000,000 people was one of the most brutal
acts ever committed in modern history."
Reviewing his efforts to expand currency through amendment to the
home loan bill, he stated that when the proposal for a billion doll''m expansion was published in New York, "you would have thought an earthquake
had hit the city."
The measure was defeated in the closing hours of the session, he maintained, by the concentrated vote of Eastern Senators.
"Those Eastern States have too many votes in Congress," he exclaimed,
affirming that the bill was finally passed in the closing tours "only because
they wanted to go home and we could have stopped them.*
Senator Borah said here to-night that he was advocating what he believed
to be Republicanism, whether President Hoover agreed with him or not.
"I am advocating what I believe is right," he said in reply to a question.
"If it fits Mr. Hoover, I'm glad of it. If it doesn't, I'm still for it. I may
be mistaken, but I think I'm advocating Republicanism.
"I don't think enough of my office to advocate anything I don't believe
in. I never advocate a proposition which does not carry any conviction."
Expenditures for World War Veterans in Fiscal Year
1932 Amounted to $596,946,189 According to National Industrial Conference Board—Would Reduce Cost of Veterans Relief by Changing System
of Compensation.
"It is possible to reduce materially the cost of veteran
relief," states the National Industrial Conference Board,
"without depriving those deserving veterans, who actually
acquired disabilities as a direct consequence of their military
service, of a single dollar of compensation and without curtailing in any way the payments made to the dependents
of those who lost their lives on the battlefield or as a result
of disabilities incurred in service. This can be accomplished
by removing from the law those provisions that have changed
a generous system of compensation and relief for war-time
losses and injuries into a form of public charity for the
benefit of a special class of citizens."
This is the conclusion of a study of the problem of veteran
relief recently made by the Conference Board, and announced on Oct. 24 in a statement covering some of the
high points of the study. The report which will soon be
published, includes a brief review of pension legislation and
a more detailed discussion of World War bonus and relief
measures, together with statistical analysis of the effects of
the various legislative enactments. The report will supplement the numerous studies of the cost of Government,
ecognized ,as authoritative, which have been made by the
r—
Conference Board in past years.
Special stress is laid in the report upon the effect of recent
legislation extending the scope of veteran relief and largely
increasing the burden on the taxpayers. The report says:
If the $5,000,000,000 already expended represented a major part of the
total expenditures that will ultimately be made for the relief of World War
veterans, there would be no cause for alarm. Unfortunately, however,
there is no immediate prospect that expenditures for that purpose will
diminish. Expenditures exclusively for World War veterans during the
fiscal year 1932 amounted to $595,946,189.57, or about $84,000,000 more
than in 1931. The total expenditures for veteran relief in 1932 exceeded
$1,000,000,000.
Calling attention to the fact that the War Risk Insurance
Act was in effect a compact under which the Government
assumed the obligation to compensate those who suffered
loss or injury as a consequence of the World War, the report
states that there is no necessity, even in the financial emergency now confronting the Federal Government, for any
reduction in legitimate expenditures for the benefit of the
dependents of service men who lost their lives in active
service during the World War or for the support of those who
acquired permanent disabilities as a direct result of such
service.
The increase in the annual cost of veteran relief in recent
years has been brought about by amendments of the War
Risk Insurance Act. In the report of the Veterans' Bureau
for the fiscal year 1923, when the annual expenditure was
nearly $471,000,000, estimates were given showing an expected drop in expenditures to $341,000,000 for the fiscal
year 1926 and to $285,000,000 for 1927. Those forecasts
were not fulfilled. The expenditures for 1926 and 1927 were
each well above 8400,000,000, and each succeeding year has
shown a heavy increase, until the present total of nearly
$596,000,000 was reached. A chapter is devoted to a careful
analysis of the legislative enactments that have resulted in
this increase,for the purpose of determining how far measures
of curtailment may be applied without lessening the relief
afforded to those how have suffered loss or injury as a direct
consequence of military service.
In summarizing the results of the survey, the report
states:
3104
Financial Chronicle
There is perhaps no greater opportunity for the elimination of wasteful
expenditure and the application of sound economy in the conduct of Government that is to be found in the case of veteran relief. If the fundamenta
l
principles upon which the War Risk Insurance Act was based had been
adhered to, the present need for a curtailment of relief expenditures would
never nave arisen. Unfortunately, by a series of amendments and legislative changes those principles were gradually undermined and ultimately
overthrown. Presumption that certain diseases had a service connection
were introduced in order to make it easier for ex-service men suffering from
such diseases to secure compensation. The periods during which these
presumptions might arise were extended, making it possiole for a veteran
who contracted any one of the specified diseases as late as five years after
the war to receive compensation, although the extent and the character
of his military service might not provide any reasonable ground for assuming that there was a connection between such service and the subsequent disability.
The veteran relief problem was brought into existence by
the destruction of the basic principles of the War Risk Insurance Act. "The solution of that problem," says the
Conference Board, "can be achieved only by the adoption
of an economy program along the lines indicated in this
survey. Unless such a program is put into effect, it is probable that a continued increase in veteran relief expenditure
will ultimately necessitate the application of more stringent
measures in order to sustain the credit of the Federal Government."
Dr. Irving Fisher Predicts Upturn After Nov. 8, No
Matter Who is Elected President.
Whether Governor Roosevelt is elected or President Hoover
is re-elected, America will continue the climb out of the abyss
of depression, according to Dr. Irving Fisher of Yale University, who spoke at Pittsburgh on Oct. 25 before the Pittsburgh area conference of the Methodist Episcopal Church.
A dispatch from Pittsburgh to the New York "Times" reports Dr.Fisher as saying:
Fear of a Roosevelt election—and I believe he will be elected—was responsible for the setback that followed the Maine election. I think that
set-back already is discounted and we still see an upturn after the present
pre-election period of uncertainty is over, no matter who is elected.
I believe the upturn will be much more rapid if Hoover is re-elected,
because he can continue his program without interruption. On the other
hand, if Roosevelt is elected five months must elapse before he takes office
and starts his program operating.
Three years ago, Dr. Fisher contended that prohibition justified itself
from an economic standpoint and asserted that a large part of the nation's
prosperity was due to prohibition. He still believes prohibition is succee.ding. he said to-day.
"The liquor trade can add nothing to the prosperity of the nation, though
IL can subtract much," he added.
"They tell us that repeal will create employment, but it can do so only
by diverting it from other industries—the soft drink industry, ice cream,
radio, automobile, etc.
"The idea that the liquor business creates something economically is on
a par with the idea of an undertaker who complained that the pure milk
committee in his town had ruined his trade in babies' funerals."
South Carolina County Takes First Step in Ten-Year
Plan to Stabilize Agriculture.
Special correspondence as follows from Sumter, S. C.,
Oct. 13, is taken from the New York "Times" of Oct. 16:
Co-operative marketing associations for single staple crops have been
doing a varying amount of business in South Carolina for some years, but
the State's first County Farmers' Exchange, acting as a clearing house and
sales agency for all farm products, has been organized hero as the initial
step in a ten-year plan to stabilize farming in Sumter County.
The experiment has attracted wide attention all over the State. The
exchange, owned and directed by a group of the county's most influential
farmers, will attempt to ascertain each year what products the marks.t requires, induce farmers to plant them and act as shipping and selling agent.
It will alsoftry to build up markets for certain products now grown in the
county.
Agriculture in this county as well as in the rest of the State has undergone a great change in recent years, due to the boll weevil and other factors.
The past decade saw a change from a purely one-crop system to diversified
farming. The exchange plans to establish regular outside markets for
these varied products, grading and packing them according to standard.
By paying or obtaining cash for farm products the exchange hopes to
enable the farmers to obtain credit on something other than cotton. It
is also intended to establish a trade or barter system by which the farmers
may exchange goods with one another. Pools for the purchase of large
quantities of fertilizer and other supplies will be formed.
The organization was the first step in the ten-year plan sponsored by
the Sumter County Interaervice Clubs. A complete agricultural economic
survey of the county by the South Carolina Agricultural Experiment
Station has also been ordered, and the development program will be based
largely on its results.
Survey by Merchants' Association of New York of
Buying Power in New York City Available to Distributors of Merchandise—More Than $14,000,000,000 in Deposits Within the Area.
An interesting demonstration of the vast buying power
that is available to distributors of merchandise in the New
York City district is furnished by an analysis of the bank
deposits in the New York retall trading area, made by the
Merchants' Association of New York through its Industrial
Bureau.
This area, which by joint action of the Merchants' Association and the Publishers' Association, was recently defined
Nov. 5 1932
to include the five boroughs of Greater New York and 23
suburban counties within a radius of approximately 60
miles, is found to have had in its banks in 1931 almost
$16,000,000,000, representing more than 28% of the total
bank deposits of the United States. More than $4,800,000,000 of this amount was in 5,795,000 separate accounts
in the savings banks within the area. A statement bearing
on the survey made available Oct. 24 goes on to say:
The gross figure of bank deposits, amounting to
$15,986,480,050, includes approximately $1,700,000,000 owing to banks by
other banks.
Deducting this figure, it leaves a balance of more than
$14,000,000,000.
This latter figure is at the rate of over $1,100 per
capita. Taking the
deposits of the United States as a whole, which at the
approximate time
included in the survey amounted to $36,000,000,000, the
per capita bank
deposits of the United States amounted to $464 per
capita, or less than
half the figure for the New York retail trading area.
Probably, however, the best demonstration of the
buying power that
exists in this area is furnished by the survey of
savings bank deposits,
which shows a figure of $4,869,695,225, which
amount is 43% of the
money on deposit in the mutual and stock savings
banks of the United
States.
This high percentage is in part due to the fact
that savings banks are
much more common in this area than they are in
other parts of the country
where the people are accustomed to deposit their
savings in other institutions. However, there are in the New York retail
area, in addition to the
accounts in savings banks, thousands of savings
accounts in State and
National banks and trust companies. Taking these
into consideration, it is
found on the basis of 1930 figures (the latest
compilation available) that
the New York retail trading area had
$7,015,429,000 in savings accounts,
or 24.93% of the savings deposits of the
whole United States.
According to the census figures of 1930
there were 2,974,576 families
in the New York retail trading area. On
this basis there was an average of
$1,637 on deposit in the savings banks for
each family. The average number
of savings bank accounts per family
for the area was 1.9, almost two
accounts per family, The average savings
bank deposit in the area amounted
to $840, as against an average of $811
for the mutual savings banks of the
United States.
The study makes some interesting
disclosures concerning the banking
habits of the people of the area. The
average of approximately 4.9 savings
bank accounts per family which is
shcnn for Ntw Yu Cruftv if 1.:lel: I
to indicate the extent to which
the people outside of New York County
make use of its savings banks as
well as of its other banking facilities.
More than $11,000,000,000 of the
district's total bank deposits was in the
New York County banks. Kings
County was second with $1,846,000,000
on deposit, and Essex
County, N. J., third, with $567,000,000. Hudson
County, N. J., was fourth, with
$426,000,000, and Westchester County,
N. Y., fifth, with $351,000,00
0.
In the period covered there were
in the area 869 banks, of which 883
were in New Jersey, 171 in New
York City, and 268 in New York counties
outside of the city, and 47 in Fairchild
County, Conn.
United Hospital Fund — Contribu
tions Received
Through "Bankers' and Brokers' Committee"
Thus Far Total $53,955.
James Speyer, Chairman, and Charles H. Sabin,
Associate Chairman of the "Bankers' and Brokers'
Committee"
of the United Hospital Fund of New York,
are much gratified by "Wall Street's" response to this year's
appeal, most
of the contributions already received being
equal to last
year's subscriptions. They report the following
subscriptions of $100 and over to date, a total of $53,955
from 181
subscribers:
$12,000
Willard V. King
J. P. Morgan & Co.
C. D. Smithers
$6,000
Kuhn, Loeb & Co.
HUM Blumenthalr
Speyer & Co.
Halle & Stieglitz
$2,500
"F. s.George Blumenthal
$1,000
s. Winston Chil$d1s2J5r.
Chase National Bank of the City
C.
New York
of EdRicwaharrdd (
f;h
hilid
:
d
Starling W. Childs
Miss Barbara R. Childs
Mrs. Starling W. Childs
Mr. & Mrs. Henry
Stephen Carlton Clark
Mr. & Mrs. George Herrman
B. l'ost
Haligarten & Co.
Hayden, Stone & Co.
JamesAG
gahema o&
wn
eo$.1°°
Lazard Freres
Adler, Coleman & Co.
"A Friend"
Mr. & Mrs. Paul Baerwald
Dunlovy Milbank
Brothers; & Co. Inc.
J. Henry Schroder Banking Corp.
William
$750
BM
Iag
.(Ira nard.
J. & W. Seligman 3:, Co.
Brown
$500
Thatcher M. Brown
Chase Harris Forbes Corp.
George F. Crane
Mr. & Mrs. Arthur 0. Choate
Charles M. Dutcher
Conunercial Investment Trust, Inc. He
D0.nr
sll.eak
yigGreohakiannzinoppin
Walter E. Frew
Heidelbach, Ickelheimer & Co.
Mrs. Sidney A. Kirkman
"A Friend"
Shearson, Hanunill & Co.
Joseph Koshiand
William Woodward
LaBranche & Co.
$300
William H. Lauer
William Fahnestock
Mime Jennie L. Mackay
$250
D. Irving Mead
Asiel & Co.
Mrs. Dunlevy Milbank
Mr. & Mrs. Stephen Baker
Carl H. Pforzhoimor & co.
Bank of Manhattan Trust Co.
Seward Prosser
Bank of Montreal Agency
Harold C. Richard
Dominick & Dominick
Oscar L. Richard
D. G. Geddes
J. K. Rice Jr. & Co.
Albert E. Goodhart
George Emlen Roosevelt
Philip J. Goodhart
Louis F. Rothschild
Mr. Mrs. Henry Ittleson
Henry Ruhiender
Logan & Bryan
Harry Sachs
Mrs. William H. Moore
Mr. & Mrs. Kenneth B.Schley
National City Bank
E. Vail Stebbins
Salomon Bros. & Hutzler
Arthur Turnbull
Edward W. Sheldon
Wertheim & Co.
Edward Townsend
Harold T. White
$1100
Clark Williams
Hamilton Fish Benjamin
Howard 0. Wood Jr.
Harry Bronner
Wood. Low & Co.
Edwin M. Bulkley
Arthur A. Zucker
George W. Davison
.
The membership of the Bankers'and Brokers' Committee"
was indicated in these columns, Oct. 22, page 2776.
Volume 135
Financial Chronicle
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
At a meeting of the board of directors of the National
City Company of New York, P. L. Smith, Milton C. Cross
and J. G. Scarff were appointed Assistant Vice-Presidents.
The Corn Exchange Bank Trust Co. on Oct. 31 opened
its 72nd branch. The new unit, located at Fifth Avenue
will
and 36th Street, and known as the 36th Street Branch,
Sayer.
Murray
by
managed
be
The New York State Banking Department on Oct. 19
gave its approval, according to the Oct. 21 "Weekly Bulletin" of the Department, to the "agreement for the merger
of Bank of Manhattan Trust Co. into President and Directors of the Manhattan Co., under the title 'President and
Directors of the Manhattan Co.,' and of sworn copies of the
proceedings of meetings of the respective Boards of Directors
submitted with the merger agreement, insofar as the same
are relevant to the merger."
A merger of three savings banks in New York City became
effective on Oct. 29, the institutions being the East River
Savings Bank, the Maiden Lane Savings Bank and the
Italian Savings Bank. The merger was effected under the
name of the East River Savings Bank,the oldest of the three,
and its President, Darwin R. James, continues as President
of the enlarged bank. A statement of condition of the latter
at the close of business Oct. 29 shows the amount due the
•
.
140,438 depositors, including accrued dividends on IM
deposits, $152,037,745. Surplus and undivided profits are
reported as $19,343,682, while total assets are shown as
$171,495,730. The main office of the East River Savings
Bank is located at 291 Broadway. From the New YO7x
"Times" we quote the following:
The East River Bank has a branch at 743 Amsterdam Avenue, the
Maiden Lane is at 4 Maiden Lane and the Italian has offices at 60 Spring
Street and 204 East 116th Street. These locations give the new bank
five offices, the largest number on record here for such an institution. it
was said. For a time depositors will continue to deposit and draw at the
offices in which their accounts were originally opened, but as soon as the
facilities can be provided, all may transact business at any of the five
locations.
The East River Savings Bank was organized in 1848. Mr. James has
been Its President since 1921, in which time deposits have quadrupled.
In commenting on the merger. Mr. James said
"That there aren't more mergers among savings banks is due largely
to the individual pride of each bank in its name and the prestige it has
built up over a period of many years. The Maiden Lane Savings Bank has
long been a landmark of lower Broadway and has always taken great pride
in its association with the street for which it was named.
"The Italian Savings Bank has also made an enviable place for itself
in the hearts of New York's great Italian-American population by its
sincere devotion to their interests. Yet both these banks were willing to
sacrifice their own idenity in order to serve further the best interests of
their depositors.
"With two offices serving the financial district, one each on the lower
of
east side, the upper east side and the upper west side and all them situated
along main arteries of transportation, the majority of our depositors will
live."
or
work
may
be within easy reach whereever they
Officers of the Bank are
Darwin It. James, President; Daniel W. Whitmore, Vice-President;
Frederick G. Fischer, Vice-President; Laster Van Brunt, Vice-President
and Secretary; Pasquale I. Simonelli, Vice-President; William G. Terlinde,
Vice-President; Nicholas J. Barrett, Vice-President; Henry J. Monsees,
Assistant Secretary; George 0. Nodyne, Assistant Secretary; Francis P.
Bosco. Assistant Secretary; Gaetano Zampariello, Assistant Secretary;
Humbert A. Vannozzi, Assistant Secretary; Julius Ileynen. Assistant
Secretary.
Payment of a 10% dividend to the 27,000 depositors of
the Federal National Bank of Boston, Mass., which closed
Its doors in December last, was begun on Tuesday of this
week, Nov. 1, by Herbert Pearson, receiver for the institution, according to the Boston "Transcript" of that date.
Owing to the large number of depositors, postcard notices
are being sent out daily to 1,500 telling them to call and
receive their checks the next day. We quote furthermore
from the "Transcript," as follows:
It Is hinted that a second dividend is not unlikely around Christmas,
although no positive statement comes from the receiver. The present
dividend payment will total about $2,000,000. What amount will finally
the future to decide
be realized and distributed among depositors is for
but it is known that the receiver has sold a considerable portion of the
bond holdings, as well as other securities, at depreciated prices due to
the stock market situation. Of course, the movement of the stock and
amount is eventually
real estate markets will have large influence on what
n•alized from liquidation of the bank's assets. Some men who have been
cloaely
closely connected with the bank expect up to 60% is a passibility.
Although one or two groups of depositors have been working on plans
seems likely to put an
to reorganize the bank, payment of the dividend
end to their efforts becoming effective.
•
More than $1,200,000 will be distributed to depositors in
the commercial department of the closed City Bank & Trust
Co., of Hartford, Conn., beginning Nov. 10 as a result of
of the Superior
an order signed by Judge John Rufus Booth
Court on Oct. 28. approving a 30% dividend to commercial
3105
depositors. At the same time Judge Booth sanctioned the
payment in full of all commercial accounts not exceeding
$25. There are 2023 of these accounts and the total payment will be a little less than $14,000. We quote further
in part from the Hartford "Courant" of Oct. 29, from which
the above information is obtained:
Attorney Lucius F. Robinson made the application for payment of the
dividend and told the Court that eventually the commercial depositors
full
would receive nearly all their money. He said there is hope for
payment. Reviewing the payment of the dividend of 16 2/3% to savings
depositors several weeks ago and the progress of the receivership since
then, he said there was no opposition to the 30% dividend for the commercial depositors and that it had the approval of Banking Commissioner
George S. Bassett and the depositors committee headed by Henry H. Conland and Attorney Benedict M. Holden.
Thomas Hewes, receiver of the bank, told the Court that he has $1,320,000 in various banks and an additional $250,000 in banks which have
claimed the right to set that amount off against obligations of the City
$1,Bank. After distribution of the dividend from the net amount of
320,000, Mr. Hewes said and the payment in full of the accounts of $25
and less he will have about $60,000 on hand.
Our last reference to the affairs of this bank, which
closed Jan. 2 of the present year, appeared in our issue of
Aug. 27 1932, page 1434.
Beginning Nov. 1, the Hoboken Trust Co. of Hoboken,
N. J., was operated as a branch of the Hudson Trust Co. of
Hoboken,following an announcement the previous day that
the latter company (the head office of which is Union City,
N. J.) had purchased the assets of the Hoboken Trust Co.
According to the "Jersey Observer" of Nov. 1, the Hudson
Trust Co. is one of the oldest and strongest institutions in
Hudson County. Its officers are as follows: J. H.P. Reilly,
President; John Stroh and Clarence C. Meeks, Vice-Presidents;James E.Tierney, Trust Officer; De Witt McCroskery,
Treasurer, and Edward F. Briggs, Secretary. The Hoboken
Trust Co., according to its statement of condition of Sept.
30 1932, had combined capital, surplus and undivided profits
of $488,118 and deposits of $2,524,936.
Concerning the affairs of the closed Asbury Park & Ocean
doors
Grove Bank of Asbury Park, N. J., which closed its
Oct
on Dec. 24 last, a dispatch to the Newark "News" on
following:
the
contained
Park,
Asbury
27 from
, is expected
Colonel William H. Kelly, State Banking Commissioner
depositors' comto announce soon his decision on a set up proposed by a
Bank would be
mittee whereby the closed Asbury Park & Ocean Grove
liquidated through a new institution.
drafted
The plan, details of which Kelly said lie had not received, was
the
by a group of bankers on request of Governor A. Harry Moore, after
executive had received many letters from depositors who said they were
in distress.
be firm
One part of the plan declared that the new institution should
order to
in its liquidation methods and use "the utmost discretion in
get the best results."
Kelly has been under criticism recently by members of the depositors'
group for allowing setoffs on notes.
Kelly
Lester Leonard, counsel for the depositors, sent the plan to
dividend when
yesterday (Oct. 26). It was understood it calls for a 5%
the new bank is organized.
Our last previous reference to the affairs of this bank
appeared in our Sept. 24 issue, page 2103.
S. Leslie Doremus, former President of the Edgewater
Trust Co. of Edgewater, N. J., was found dead in a tool room
adjoining the garage at the rear of his home in Hackensack,
N. J., on the afternoon of Oct. 25. The deceased banker, who
was 57 years of age, entered the employ of the old Hackensack Bank as a clerk 42 years ago and had been chosen
President of the Edgewater Trust Co. sixteen years ago, an
office he had held until last June. A dispatch to the New
York "Times" front Hackensack, reporting Mr. Doremus's
death, said in part:
Mr. Doremus had been arrested on Saturday (Oct. 22) on charges of
embezzlement and was to have a hearing before Judge Abram A. Lebson
to-morrow morning. Prosecutor George F. Loathe ordered an investigation and Dr. Ralph Gilady, County Physician, performed an autopsy, the
results of which have not been announced. Two empty bottles were found
near the body, but Dr. Giladay said he could not detect any odor of
poison.
Mr. Doremus resigned from the Edgewater bank last June at the request of the directors. Evidence was produced that the President had
made loans to development companies in which he had been interested,
which caused losses to the bank estimated at $50,000. On last Wednesday
(Oct. 19), Winnie & Banta, counsel for the bank, had asked the Chancery'
Court in Trenton for an order compelling Mr. Doremus to make an accounting of his loans and the matter was under advisement. After his
arrest the President had been released under $25,000 bail.
The first and partial account of the administration of
the affairs of the Central Trust & Savings Co. of Philadelphia, now in course of liquidation by the Pennsylvania State
Banking Department, was filed on Oct. 27 in the office of
the Prothonotary, according to the Philadelphia "Ledger"
of Oct. 29, which went on to say:
The account includes the period from Oct. 6 1931, when it was taken
over by the Department, until Sept. 3 1932. The banking officials in
charge claim credit for differences in conversion and disbursements totaling
$2,759,428.
3106
Financial Chronicle
There is still cash on hand or in bank amounting to $608,164 and other
unconverted assets of $4,376,624. The total deposit liability on Sept. 3
1932, amounted to $4,392,436.
The total liabilities as of the same date are given as $5,081,268. The
Banking Department made an advance payment of $385,820 to depositors
on Feb. 29.
The closing of the Central Trust & Savings Bank on Oct.
7 1931 was noted in the "Chronicle" of Oct. 10 1931, page
2379.
Dr. William D. Gordon, State Secretary of Banking for
Pennsylvania, on Oct. 25 announced that checks would be
mailed out the next day to the 55,000 depositors of the
Franklin Trust Co. of Philadelphia, aggregating $1,500.000
and representing a cash advance of 10% of the deposits.
Harrisburg, Pa., advices on Oct. 25 to the Philadelphia
"Ledger," reporting the foregoing, quoted Dr. Gordon as
saying:
"On Saturday (Oct. 22) I announced that the cash advance of 10%
to the 55,000 depositors of the Franklin Trust Co., totaling $1,500,000,
would not be made on Oct. 24, due to the fact that a stockholder in the
Federal District Court had enjoined the Secretary of Banking from making
any payments to the depositors until the claim of the Commonwealth had
been paid in full.
"I have contended that the Commonwealth should first collect the
amount due on the surety bonds from the surety companies and then the
surety companies would become subrogated to the claims of the Commonwealth, except as to priority and would then share in dividend distributions along with the other depositors.
"Governor Pinchot some months ago ordered the Commonwealth to proceed against the surety companies for the collection of such claims. The
Attorney General concurred in this action and immediately took steps
to collect these claims. However, a stockholder of the National Surety
Co. instituted suit to prevent me from making a second cash advance on
the ground that the Commonwealth should proceed first against the bank
for the $400,000 still due on the surety bonds.
"The Attorney General has been contesting this action, and to-day
(Oct. 25) counsel for the stockholder of the National Surety Co. agreed to
file no objection to this payment in view of certain representations made
by the Department of Banking and the Department of Justice.
"Upon the consummation of this agreement I have asked John J.
Sullivan, the Special Deputy as agent at the Franklin Trust Co., to place
In the mails the cash advance of 10%. It is gratifying to know that
Innocent depositors in dire need of these funds will not be kept any
longer from receiving them."
Two former officers of the closed Royersford Trust Co.
of Royersford, Pa.,—H. Fred Grander, Vice-President, Treasurer and Trust Officer, and Frank Cobb, Assistant Treasurer,
were remanded to Jail in default of $50,000 bail each on
Oct. 28, after having been given a further hearing on charges
preferred by the State Banking Department, according to
advices by the Associated Press from Royersford on Oct.
28. The defendants are accused of alleged responsibility
for shortages in the bank's funds, which Assistant District
Attorney A. Clarence Emery said may exceed $250,000. The
dispatch in conclusion said:
Their hearing before Justice of the Peace Otto H. Meyer to-day was
brief and ended with them being committed to the Montgomery County
Prison at Norristown to await trial.
Emery told the Court the audit being made of the bank's books has
not been completed and that "additional false entries are being found
daily." He said more than 3,000 accounts have been affected.
An item with reference to the closing of the Royersford
Trust Co. appeared in our issue of June 18 1932, page 4439.
Further referring to the affairs of the Lancaster Trust
Co. of Lancaster, Pa., which closed early this year, advices
from that city on Oct. 29 to the Philadelphia "Ledger" stated
that depositors of the institution on that day approved a
plan for turning over 42% of the closed bank's assets to
the Fulton National Bank of Lancaster as part of a reorganization plan. If the plan is placed in operation, the
dispatch said, depositors will receive 42% of the assets in
savings accounts, certificates of deposit and stock, while
the remaining 58% will be liquidated by a committee and
paid out to depositors as rapidly as possible. Continuing
the advices said in part:
More than 92% of the deposits are represented by the individuals and
firms who have approved the plan, which will make available approximately
$4,000,000 in accounts, officials said. Of the $9,524,937 deposits in the
trust company, the approval of depositors representing $8,781,734 has been
received, it was said by officials of the reorganization committee, in
charge of securing the approval of depositors representing 90% of the
deposits as required by the State Banking Department.
The reorganization committee announced it has completed the major
part of the work and that further action for completion of the plan rests
with the State Banking Department.
Officials of the Fulton National Bank indicated that all possible speed
will be used in taking the remaining steps necessary for final enactment
of the plan, which includes securing the formal approval of the Fulton
bank stockholders.
•
From the Philadelphia "Ledger" of Nov. 2, we take the
following concerning the affairs of the defunct Hamilton
Trust Co. of Philadelphia:
The Hamilton Trust Co., in possession of the Pennsylvania Banking
Department, had cash on hand and other unconverted assets of $1,178,711,
Nov. 5 1932
deposit liabilities of $1,376,218 and other liabilities of $12,401, according
to the first and partial accounting filed in the office of Prothonotary of
Courts of Common Pleas yesterday (Nov. 1) by Dr. William D. Gordon,
Secretary of Banking.
The inventory of assets at the time the bank closed, Aug. 7 1931, totaled
$1,987,467. Disbursements and losses in conversion amounted to $808,755.
The Hamilton Trust Co. was closed on Oct. 7 1931, as indicated in our issue of Oct. 10 of that year, page 2379.
In regard to the affairs of the Chesapeake Bank of Baltimore, Md., which failed on Dec. 9 1930, the Baltimore "Sun"
of Oct. 26 carried the following:
The second report of the receiver of the Chesapeake Bank, filed yesterday (Oct. 25) in Circuit Court No. 2, showed that as of last Sept. HO,
there was $274,804.53.available for distribution.
That amount is enough to make a payment of approximately 7% to
creditors of the closed bank, but because of the expense incident to the
payment of a dividend, no distribution is expected until funds sufficient
to make a 10% payment, or approximately $400,000, are available.
The report showed that $25,906.39 out of an aggregate statutory liability
of $50,000 had been collected from stockholders of the bank. In addl.
tion, it was pointed out that assessments totaling $22,475
on account of
899 shares of stock appear to be uncollectible.
Included in this amount is $19,425 due from J. Monroe Holland on
777 shares of stock and $1,700 due from Milton B.
Delcher on 68 shares.
Holland, former President of the bank, is serving a year in jail, and
Delcher, former Vice-President, is serving a five-year term.
In addition, the report showed that out of the
ninety stockholders of
the bank, 71, or 79%, have paid their assessments
in full. Ten are paying in installments or have made satisfactory
arrangements and their assessments ultimately will be liquidated in full. The
remaining assessments
are uncollectible.
The total amount accounted for by the receiver was $345,896.52,
of which
$278,545.80 has been collected from all sources during the ten months
and ten days covered by the report, while $67,350.72
represents the
balance remaining in the receiver's hands after
payment of the first
dividend of 22%% last December.
Disbursements during the same period totaled $71,091.99. The principal
outlay was the payment of $52,625.51 in principal,
interest and carrying
charges in connection with real estate owned by
the bank and its subsidiaries.
Costs of administration of the receivership during the period covered
by the report was placed at $5,156.56, while Court
costs and kindred expenses totaled $2,865.69. Initial payments made on
account of the purchase price of real estate bought at foreclosure
sales in order to protect
investments was placed at $2,977.93, while amounts paid
in settlement
of claims and costs of the first distribution, not
previously accounted for,
totaled $3,283.81.
The report was filed by George W. Page, Bank
Commissioner and receiver of the Chesapeake Bank, through his attorney,
Herbert Levy.
From the Washington "Post" of Nov. 1, it is learned that
the Bank of Brightwood of Washington, D. C. (an institution which was closed by the Comptroller of the Currency
on July 14 last upon the discovery of a shortage
in the accounts of its President, Raymond L. Schreiner) will suffer
no losses through the defalcations of its former
President.
This was disclosed in the District Supreme Court on Oct.
31 when Mr. Schreiner, accompanied by Harvey
Cobb, his
attorney, entered a plea of "guilty" to a charge of embezzling the funds of the institution. Mr. Cobb was
reported as declaring that property of Mr. Schreiner's, together with the bond that he posted as President will make
up the losses sustained through the former President's
activities, who plans to turn over his property to the bank.
The paper mentioned furthermore said:
At the request of the attorney, Justice Daniel %V.
O'Donoghue permitted
Schreiner to remain at liberty on a bond of $5,000 while
Amos A. Steele makes a report on the facts in the case. Probation Officer
Schreiner has never been in trouble before, the Court was told.
His shortage, as alleged in the indictment returned against
him two months ago,
was $15,000.
The closing of the Bank of Brightwood was reported in
our issue of July 16 last, page 415.
Lawrence S. Davis, -heretofore active Vice-President of
the State & City Bank of Roanoke, Roanoke, Va.,
was recently advanced to the Presidency of the institution
to
succeed J. C. Haley, who has transferred his home and
business operations to Orlando, Fla. The personnal of
the
Institution is now as follows: Lawrence S. Davis, President; Charles M. Broun, Vice-President; Frank J. Sherertz,
Cashier and Trust Officer; Edward L. Stevens, Assistant
Cashier and Wyatt A. LeGrand, Assistant Trust Officer.
The bank's statement of conditions as of Sept.30 last, showed
combined capital, surplus and reserves of $310,682; deposits
of $546,499, and total resources of $1,104,659.
A press dispatch from Warren, Ohio, under date of Oct.
24, printed in the Cleveland "Plain Dealer," indicated that
the Union Savings & Trust Co. of Warren would reopen for
business at the close of last week (Oct. 27 or Oct. 28). The
institution was closed in August 1931. The dispatch mentioned said in part:
Banks are only "common depositors" and have no right to be considered as preferred creditors when a closed bank is about to re-open,
Common Pleas Judge William B. Carter held here this afternoon (Oct.
•
Volume 135
Financial Chronicle
24) in approving plans for re-opening the Union Savings & Trust Co.
Thursday or Friday of this week. . .
The State Banking Department approved a plan for opening that
would give banks having deposits the right to withdraw their full deposits while others would receive only 10% now and other percentages
as authorized from time to time until 80% maximum is reached. The
Court held banks have no better rights than individuals. Likewise he
held that County funds are subject to the same liquidation arrangements
as private funds.
The Court held that no stock dividends may be paid until the 80%
is paid out to depositors. He approved an agreement by which surety
companies with bonded deposits take 65% in full settlement. A separate
agreement by which the Republic Steel Corp. will receive one-half of a
$100,000 deposit in cash and the balance on the 80-20 plan was approved.
The Republic bought a block of stock in the reorganized bank and the
agreement settles litigation in Federal Court at Cleveland.
Receivers of various industries, administrators and others who represent in a fiduciary capacity depositors who have not consented to the re.
organization plan are granted an alternative of taking 65% in cash as
full settlement or taking the 80-20 plan.
A more recent dispatch from Warren to the Cleveland
"Plain Dealer," Oct. 31, stated that the bank had reopened
to that date, when depositors placed with the institution
five times as much money as was withdrawn. This dispatch
also said:
There was no rush for funds when the bank opened with permission to
depositors to withdraw 8%.
A total of $450,000 was available, but aside from $124,000 in trust
funds, $55,000 to the Republic Steel Corp., and some insurance company
funds, less than half the amount expected to be demanded was asked.
A. F. Reed, formerly of the Cleveland Trust Co., is Executive Vice.
President. Edward Schuele of Cleveland is Treasurer.
Our last previous reference to the affairs of the Union
Savings & Trust Co. appeared in our issue of Oct. 15 last,
page 2607.
A charter was issued by the Comptroller of the Currency
on Oct. 26 to the National Bank of Martinsville, Martinsville, Ind. The new institution is capitalized at $50,000.
E. C. Shireman is President and M. R. Wilson, Cashier.
That the Gary Trust & Savings Bank, Gary, Ind., which
closed the latter part of June 1931, would be re-opened Nov.
14, was reported in Gary advices to the Indianapolis "News"
of Oct. 28, which continuing said:
Harry L. Arnold, President of the institution and the liquidating agent
under whose directions the bank has been revivified, has received an order
from the State Banking Department authorizing resumption of business.
The order is based on his showing that the institution has liquidated
"frozen" assets and recovered sufficient money to be able to take care of
all depositors and to resume business.
Reopening of the Gary Trust & Savings Bank is the first indication of
a "come-back" in the banking circles of Lake County which were hit so
hard by the depression. Along with a number of other institutions, the
Gary Trust was deeply interested in real estate development when Gary
was at the height of its building boom. Foreseeing trouble ahead, Arnold
and his associates started liquidation two years before the banking crash
and at the time the bank closed more than half its loans had been collected.
The financial situation of the bank at the time of its suspension was such
that only time was necessary for the protection of both stockholders and
depositors. The greater part of the depositors have been paid in full as
assets were realized. It is a significant fact that a large number of them
waived payment and united with the bank officers in the effort to resume
business.
The Gary Trust & Saving Bank has fine quarters in the heart of Gary
and its reopening has been earnestly sought by business interests of the
city, intent on recovery of normal financial conditions.
The bank closed June 29 1931, owing its depositors $674,628, but
.$200,000 has been cut from this total in liquidation. Of the remainder,
$298,669 is owing officers of the bank.
Reopening of the New Haven Savings Bank, New Haven,
Macomb County, Mich., was authorized by the Supreme
Court at Mt. Clemens, Mich., on Oct. 29 on petition of the
Michigan State Banking Commission, according to Mt.
Clemens advices, printed in the Detroit "Free Press," which
went on to say:
Judge James E. Spier set Nov. 7 as the date for submission to the
Court of the custodian's report on the bank's condition at present. When
it is accepted by the Court the bank will be able to open its doors for
business again.
The New Haven Savings Bank is one of several in the County which
set about to reorganize after its doors were closed. The others are in
various stages of progress towards reorganization.
The reorganization was made possible by more than the necessary
85% of the depositors signing depositors' agreements.
New officers and Board of Directors of the reorganized bank were named
at a meeting last week. Will Bates, New Haven merchant, will head
the bank when it reopens.
It is learned from the Milwaukee "Sentinel" of Oct. 27
that at a special meeting of the directors of the Southern
State Bank of Milwaukee, held the previous day, it was
decided to turn the institution over to the State Commissioner of Banking for voluntary liquidation, after first returning to depositors all deposits made since July 21 when
the institution went on the stabilization plan. G. E.
Vallier, State Banking Examiner, has been placed in charge
of the institution. Reorganization is being considered. The
paper mentioned continuing said
3107
The bank encountered difficulties when "runs" were made on several
banks here last summer. Capitalized at $200,000, it had deposits of
$353,000 when it closed. This is a substantial increase over the $241,000
reported Sept. 30, the date of the last bank call, but well below the
$521,000 three months previous and $650,000 of a year ago. The last
statement revealed loans of $320,000, compared with $326,000 in June
and $335,000 at the end of September 1931. Cash resources Sept. 30
stood at $34,000, against $116,000 in June and $80,000 a year ago.
Officers of the Southern State are: President, Louis A. Pons; VicePresident, P. V. Braman; Cashier, H. A. Maurer. . . . The bank was
organized in 1928.
A small Milwaukee, Wis., bank—the St. Francis State
Bank, capitalized at $50,000—was placed in the bands of
the Wisconsin State Banking Department on Oct. 24, following the decision of the directors to liquidate. Steady withdrawals and depreciation in the bond account were given
as reasons for the closing. The Milwaukee "Sentinel" of
Oct. 25, reporting the matter went on to say:
G. E. Vallier, State banking examiner, is in charge.
The bank closed with approximately $324,000 in deposits. Of this
amount, $150,000 was Town of Lake funds and $28,000 County deposits.
Deposits Sept. 30, date of the last bank call, totaled $356,000, against
$467,000 three months earlier and $521,000 a year ago.
Comparative figures on loans reveal withdrawals were made at a faster
pace than loans could be reduced. On Sept. 30, loans amounted to
$223,000, against $250,000 three months before and $266,000 a year ago.
Cash resources also dropped—from $43,000 in June and $63,000 a year
ago to $27,000 a month ago.
Officers are: President, F. N. Lochemes ; Vice-President, L. J. Stein;
Cashier, G. Lawler.
The Hartford Exchange Bank at Hartford, Wis., with a
capital of $50,000, was placed in the hands of the Wisconsin
State Banking Department on Oct. 24, according to a dispatch from that place on Oct. 24 to the Milwaukee "Sentinel,"
which added:
Organized in 1890, the bank had deposits of approximately $788,000 at
the close of 1931. Later figures were unavailable Monday.
Announcement was made on Oct. 25 of the advancement of
A. E. Francke from Vice-President of the Badger State
Bank of Milwaukee, Wis., to the Presidency of the institution. Mr. Francke succeeds the late J. J. O'Connell, whose
death occurred on Oct. 15. The Milwaukee "Sentinel" Oct.
26, from which the foregoing is learned, went on to say:
Mr. Francke started as a messenger in 1909 at the Badger State, and
rose to bookkeeper. He assumed the Vice-Presidency in 1928. The
Badger State was organized in 1907 by Gustav Reinke and Mr. O'Connell.
It is now affiliated with the First Wisconsin National as a unit of the
Wisconsin Bankshares group.
The Farmers' & Merchants' Bank of Eagle River, Wis.,
one of two banks in that place, failed to open on Oct. 31,
according to a dispatch from Eagle River by the Associated
Press, which went on to say:
The Board of Directors met Saturday night and voted to turn the
Institution over to the State Banking Department for liquidation.
That a dividend of 10% is now being distributed to the
depositors of the McCartney National Bank of Green Bay,
Wis., is indicated in the following dispatch (Associated
Press) from Green Bay, under date of Oct. 31:
With the aid of a loan from the Reconstruction Finance Corporation
together with cash on hand, payment of a 10% dividend to depositors of
the closed McCartney National Bank will be started Tuesday (Nov. 1).
L. J. Bosworth, receiver, announced 'Monday. The dividend has been
authorized by the Comptroller of the Currency and will amount to $194,780.49. In prior dividends $1,167,111.21 has been declared. The latest
dividend brings the total payments to 70% of the total deposits.
This bank closed its doors in June of last year, as noted
In the "Chronicle" of June 20 1931, page 4532.
It is learned from the "Commercial West" that Frank M.
Pexa has become President of the First National Bank of
Montgomery, Minn., succeeding John Sheehy who resigned.
Closing of the Security Bank of Pipestone, Minn., because
of "frozen" assets, was announced on Oct. 31 by J. N.
Peyton, State Banking Commissioner for Minnesota, according to advices by the Associated Press from St. Paul on
the date named.
The Stannard State Bank of Taylors Falls, Minn., recently took over the Shafer State Bank of Shafer, Minn,
it is learned from the "Commercial West" of Oct. 22,
Depositors of the defunct State Bank of Butler, Butler,
S. D., are receiving a second dividend of 5%, according to
the "Commercial West" of Oct. 22.
The Nebraska State Banking Department on Oct. 25 announced the closing of the State Bank of Winnebago, Winne-
3108
Financial Chronicle
Nov. 5 1932
bago, Neb., according to Lincoln adviees by the Associated
Press on that date. The failed bank was capitalized at
$50,000 and had deposits of approximately $90,000. Ray L.
Grosvenor was President and R. N. Linkswiler, Cashier.
Virgil S. Lee, a State bank examiner, had taken charge of
the institution, it was stated.
according to the San Francisco "Chronicle" of Oct. 20. Mr.
Troppmann was for many years in the employ of the former
Anglo & London Paris National Bank which with the former
Anglo-California Trust Co. now forms The Anglo California
National Bank. As Assistant Vice-President he is in charge
of the personnel of the consolidated institution, it was said.
Following his plea of guilty to making a false entry in
the bank's accounts, Edward L. Marhlewski, former Secretary of the closed Fidelity Bank & Trust Co. of St. Louis,
Mo., was sentenced on Oct. 27 by Federal Judge Faris to
two years in the United States Reformatory at Chillicothe,
Ohio. The St. Louis "Globe-Democrat," in reporting the
above, furthermore said in part:
Relative to the affairs of the defunct United States National Bank of Los Angeles, Calif. (the closing of which
on Aug. 18 1931 was noted in the "Chronicle" of Aug. 22
1931, page 1238), announcement was made on Oct. 24 by
H. F. Schilling, the receiver, that a dividend amounting to
10% of their proven claims would shortly be paid to the
depositors and other creditors of the Institution. A dividend
of 25% of proven claims was paid last February, it was
stated.• The Los Angeles "Times" of Oct. 25, from which
the above information is obtained, went on to say:
Before Marhlewski entered his plea, Bryan Purteet, Assistant United
States Attorney, dismissed nine other counts in an indictment which
charged the defendant with defalcations of $21,980 by embezzlement, false
entries, and false reports to the Comptroller of the Currency.
Purteet informed the Court the defendant's case was mysterious because the Government had not been able to ascertain the missing money
was spent in orgies or gambling.
William Baer, attorney for Marhlewski, admitted his client made false
entries, but said they were made at no profit to the Secretary.
"There is a peculiar situation existing in the bank with which I am
somewhat familiar through my connection with other cases growing out
of its failure," Baer said. . . .
By his plea, the defendant admitted recording a fictitious withdrawal
of $3,000 from the account of . . . one of the bank's clients.
The bank was closed about a year ago because of "frozen" assets. Hans
Wulff, Special Deputy Finance Commissioner, reported that claims filed
against it totaled $1,400,000, while assets were inventoried at $1,774,607
book value.
•
That a new bank has been organized at Goldsboro, N. C.,
under the title of the Bank of Wayne as a successor to the
closed Wayne National Bank of Goldsboro, is indicated in
the following Goldsboro dispatch under date of Oct. 24, appearing in the Raleigh "News & Observer":
The Bank of Wayne will be the name of the new bank to be opened
in Goldsboro, Dec. 1. Directors were elected at a meeting of the directors
of the Wayne Corp., the company formed to organize the new bank, in
the corporation room in the bank building Monday (Oct. 24). The
directors elected are Herman Weil, Frank B. Daniels, D. 0. Humphrey,
F. K. Borden and H. G. Maxwell. It was decided that a State bank would
be best for Goldsboro and the Goldsboro trade area.
The date for the opening was tentatively set for Dec. 1, in the belief
that this would give time enough for preparation for the opening. A
charter must be secured, and the details for the opening worked out. The
receiver of the closed Wayne National Bank is to complete all forms
for paying dividends in the closed Wayne National on the day that the
new bank opens.
The Comptroller of the Currency has approved the sale of the bank
building of the closed Wayne National to the Wayne Corp. for $100,000,
it was reported to the directors Monday (Oct. 24).
The failure of the Wayne National Bank was noted in
our issue of Jan. 2 1932, page 80, and a second reference to
its affairs was made in the "Chronicle" of Sept. 17, page
1942.
The First National Bank of Homestead at Homestead,
Fla., capitalized at $25,000, was granted a charter on Oct.
24 by the Comptroller of the Currency. Philip Liberman
Is President of the institution and H. E. Schaff, Cashier.
Andrew B. Learned of Natchez, Miss., was recently appointed President of the Britton and Koontz National Bank
of Natchez to succeed Melcoir R. Beltzhoover, who resigned
in order to devote his time to his personal business, according to a press dispatch from Ferriday, Miss., on Oct. 27,
printed in the New Orleans "Times-Picayune."
The Comptroller of the Currency on Oct. 24 issued a
charter to the First National Bank in Pleasanton, Pleasanton, Tex. The new bank succeeds the First National Bank
of Pleasanton. S. V. Houston is President and W. W. Harrington, Cashier.
Associated Press advices from American Fork, Utah, under
date of Oct. 29, stated that the People's State Bank of American Fork was to reopen on Oct. 31, after having been in the
hands of the State Banking Department since Jan. 16 last.
The dispatch furthermore said:
The capital has been restored through a loan of $53,000 from the Reconstruction Finance Corporation.
In addition $39,500 of deposits have been waived by depositors, who will
receive participation certificates with respect to the "slow assets" of the
• bank.
Depositors of the closed Farmers' & Miners' State Bank
of Belt, Mont., are receiving an initial dividend of 10%,
according to the "Commercial West" of Oct. 29.
Carl Troppmann, formerly chief clerk of The Anglo California National Bank of San Francisco, Calif., has been
advanced to an Assistant Vice-President of the institution,
The amount paid out to date on the first dividend is $1,446,034.72, and
the aggregate of the checks made out for the present 10% dividend is
almost $600,000, according to Mr. Schilling.
Payment of the second dividend has been authorized by the Comptroller of the Currency in Washington, D. C., and the checks are now
on their way to that official for his signature. The checks will, no doubt,
be returned to Los Angeles, so that they can be delivered within the
next three or four weeks, Receiver Schilling said yesterday, and at the
proper time, he added, he will forward notice of the dividend and form
of receipt to each of the 14,000 depositors and creditors with proven
claims.
With 35% of the depositors' claims thus definitely assured of payment, there is already a prospect of another dividend payment early next
year, it was pointed out yesterday by the receiver, but it is not yet
possible to forecast just what proportion of their claims will be finally
realized by the depositors when the liquidation of the bank's affairs is
completed, although, he added, the total of cash on hand and assets still
uncollected are somewhat more than the amount of claims proven to date.
Cash on hand at the close of business September 30, last, was $2,496,081.45, and the total of uncollected assets was $4,035,618.95. The
amount to be eventually realized by the depositors depends
on the amount
of these assets which can be collected and it was stated
there is every
reason to hope that a large proportion of the total will be collected.
In regard to the prospects of a third dividend early
next year, for which
the funds are even now available, the receiver
'explained the situation as
follows:
"In making payment of the first and second
dividends, funds have been
held in reserve, as required by law, to protect on a
pro-rata basis claims
for damages asserted against the bank and
aggregating approximately
$4,500,000. These claims in dispute include the so-called
Ferguson Corporation claims totaling around $4,200,000.
"A proceeding was brought on Aug. 15 1932, in the
Federal Court to
effect the compromise settlement of the Ferguson claims
in consideration
for an allowed general creditors' claim of $500,000.
This settlement, it
is believed, will be consummated during the latter
part of this year or
the first of next. If so, the funds which the receiver
is now required to
hold In reserve will be released for the payment of a third
dividend."
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
The downward swing of the stock market which, with a
few brief interruptions, has been under way for the past
month or more was again strongly in evidence during the
present week until Friday, when the trend was reversed
and a slight upward reaction occurred. Prices continued
day after day to drift lower and while there were occasional
rallies they served only as a brake to check a too rapid
decline. On Friday, however, prices showed substantial
improvement all along the line. During the fore part of
the week prices moved within a narrow range, trading was
dull and the daily turnover was down to the minimum.
Some liquidation cropped up from time to time, particularly
on Wednesday, when a wave of selling flowed into the market
that forced American Tel. & Tel. below par. Call money
renewed at 1% on Monday, remained unchanged at that
rate on each and every day of the week.
The late rally of the preceding day was still in evidence as
the market opened for the short session on Saturday, but
prices were not maintained and as trading sagged most of the
early gains were cancelled. The low prices of the session were
registered during the closing hour but net chnages for the
day were, as a rule, unimportant. Railroad shares were
moderately strong for a brief period, but sold off on small
volume as the day progressed. American Can, United States
Steel, Allied Chemical & Dye and Amer. Tel. & Tel. followed
much the same course. Industrial issues were fairly steady
during the first hour, but eased off as the session neared its
close. The principal changes for the day were on the side of
the decline and included among others, Western Union
Telegraph 2 points to 28, Union Pacific 2 points to 643/
s,
International Harvester pref. 2 points to 90, Electrical
Power & Light (6) pref. 234 points to 203
%,J. I. Case Com% points to 423.4, Interpany 134 points to 393, Atchison 13
national Business Machine 33i points to 87%, Ingersoll
Rand 134 points to 2934, Southern Pacific 13 points to 193
4,
Del. Lack. & West. 1% points to 30 8, National Biscuit 134
points to 3534 and Louisville & Nashville 11
4 points to 223i.
The market continued to move downward on Monday,
Volume 135
Financial Chronicle
but losses were comparatively light and were generally confined-to fractions. A few stocks closed with a slight gain
for the day, but these were largely among the preferred issues.
The turnover was light and the ticker agged most of thetime.
The losses included Air Reduction, 1 point to 5332; American Tobacco, 1 point to 64; Crucible Steel pref., 2 points
to 25; Federal Light & Traction pref., 5 points to 40%
Homestake Mining,2 points to 131; Morris & Essex,9 points
to 49; Norfolk & Western, 2% points to 98; Peoples Gas,
2 points to 98; Pittsburg Coal pref., 3 points to 33; International Silver pref., 2% points to 47%, and National Lead
pref. A, 1% points to 100%.
Stocks were decidedly reactionary on Tuesday and while
dealings were in somewhat larger volume, prices were again
down at the close. During one period of the trading many
prominent issues were off from fractions to 3 or more points,
but improved somewhat around noon time. Railroad shares
and specialties bore the brunt of the recessions and prominent
stocks like Amer. Tel. & Tel. and United States Steel lost
heavily. Conspicuous among the changes on the side of the
decline were such stocks as Air Reduction, 1% points to
51%; Allied Chemical & Dye, 2% points to 71%; American
Can, 2% points to 4932; Amer. Tel. & Tel., 2% points to
100%; American Water Works, 1st pref., 2% points to 50;
Atchison, 2 points to 40%; J. I. Case Co., 2% to 37%
Coca-Cola, 2 points to 92%; Corn Products, 2 points to
48%; Delaware Lackawanna & Western, 23
% points to
28%;Eastman Kodak,2% points to 49%;Industrial Rayon,
2% points to 23%; Louisville & Nashville,2% points to 19%;
Peoples Gas, 2 points to 67, and Union Pacific, 3% points
to 61%.
The wide selling movement that developed during the
closing hour on Wednesday forced prices downward from
1 to 3 or more points. American Tel. & Tel. suffered a
bad break and slipped below par, closing at 99% with a net
loss of 1% points. Other losses were Air Reduction, 13
4
points to 49%; Allied Chemical & Dye, 2% points to 69;
American Can pref., 1% points to 118; American Tobacco B,
2% points to 63%; Auburn Auto, 2% points to 38%; Bethlehem Steel pref., 2% points to 32%; J. I. Case Co., 2%
pointsi to 35; Columbian Carbon, 2 points to 23%; Crucible
Steel pref., 2 points to 23; Illinois Central pref., 2% points
to 21%; Ludlum Steel, 5 points to 20; New York Central,
2% points to 20%; National Biscuit pref., 3 points to 139;
Northwestern Telephone, 2% points to 30%; Reading
Co., 3% points to 33%; Southern Pacific, 23
4 points to
16; Union Pacific, 2% points to 59; United Air & Transport,
2 points to 20%; United States Leather pref., 5 points to
55; United States Steel, 1% points to 32%; Endicott Johnson, 2% points to 30; Drug, Inc., 1% points to 31; Delaware, Lackawanna & Western, 3% points to 24%; Dela,
ware & Hudson, 2% points to 59%, and Detroit Edison,
2 points to 77%.
Pressure on the railroad shares and industrial issues was
apparent during most of the trading on Thursday and while
the list was fairly strong during the opening hour, the buying
soon subsided and the list again turned downward and closed
with net losses ranging from 1 to 3or more points. Homestake
Mining, on the other hand, was a sensational performer
on the side of the advance and closed with a net gain of
16% points at 149. The losses among the popular trading
favorites were American Locomotive pref. 1% points to
25, J. I. Case Co. 2% points to 32%, Colorado & Southern
12% points to 17%, Delaware & Hudson 5% points to 54,
Corn Products pref. 3 points to 132, Eastman Kodak pref.
7% Points to 112%, Louisville & Nashville 2 points to 16,
Pacific Telephone 2 points to 75, Pittsburgh Steel pref.
5 points to 16, Reading 2% points to 31, Utah Copper 1%
points to 60 and Liggett & Myers 3 points to 51.
The brisk rally that developed in the market on Friday
carried numerous pivotal issues upward from 1 to 6 or more
points. J. I. Case was one of the features of the day and
showed a gain of 3% points at the close. Railroad shares
were strong and advanced up to 7 points on the day, and
numerous active speculative favorites closed at higher levels.
The advances included among others Air Reduction 3%
points to 53, Allied Chemical & Dye 4 points to 72%,
American Can 2% points to 21, American Tel. & Tel. 3%
points to 103%, Atchison 3% points to 62%, Worthington
Pump 2 points to 13%, Union Pacific 4% points to 63%,
Pacific Tel. & Tel. 2 points to 77, Atlantic Coast Line 3
3.
points to 21 and United States Steel 2% points to 34%
The market was steady at the close and slightly under the
best of the day.
3109
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY. WEEKLY AND YEARLY.
Week Ended
Nov. 4 1932.
Railroad
Stocks.
State,
Number of and Nista. Municipal &
Shares.
Bonds.
Fern Bonds.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
359,820
384,760
522,135
1,100,790
1,020,150
969,185
$2,592,000
3,267,000
3,737,000
4,525,000
4,331,000
4,310,000
$1,356,000
2,128,000
1,750,000
2,405,500
1,929,000
1,906,000
4.356.840 822.762.000 $11.473.500
Sales at
New York Stock
Exchange.
Total
Total
Bond
Saks.
$66,000
373,500
579,000
460,500
983,000
442,000
$4,014,000
5.768,100
6,066,000
7,390,000
7,243,000
6,658,000
82.904.000 837130 Ann
Week Ended Nov. 4.
Stocks-No. of shares_
Bonds.
Government bonds___
State & foreign bonds_
Railroad & misc. bonds
United
States
Bonds.
Jan. I to Nov. 4.
1932.
1931.
4,356,840
7,539,327
382,498,224
496,039,455
$2,904,000 $10,948,000
11,473,500 17,040,000
22,762,000 27,884,000
$519,055,350
649.161.600
1,417,212,000
$206,128,400
762,063,600
1,567.582,400
1932.
1931.
$37,139,500 855.872.000 82,585,428,950 $2,535,774,400
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Weak Ended
Nov. 41932.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Prev sok_ revisell_
Baltimore,
Philadelphia.
Shares. Bond Saks. Shares. Bond Sales. Shares. Bond Sales.
12,717
9,233
11,557
23,157
23,614
4,097
5,349
6,116
7,505
18,776
16,292
2,735
82,000
$1,100
4.000
1,000
12,000
3,000
200
1,000
197
345
979
1,011
354
900
$1,000
1,600
3,200
84,375
$21,100
56,768
$3,200
3,786
$7,800
01 ons
8110(10
R2104
8:10000
4 848
IRR 25n
2,000
Course of Bank Clearings.
Bank clearings this week will again show a decrease as
compared with a year ago. Preliminary figures compiled
by us, based upon telegraphic advices from the chief cities
of the country, indicate that for the week ended to-day
(Saturday Nov. 5), bank exchanges for all the cities of the
United States from which it is possible to obtain weekly
returns will be 21.2% below those for the corresponding
week last year. Our preliminary total stands at $4,759,860,977 against $6,044,047,817 for the same week in 1931.
At this center there is a loss for the five days ended Friday
of 22.0%. Our comparative summary for the week follows:
Clearings-Returns by Telegraph.
Week Ending Nov. 5.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
1932.
1931.
2,440,864,083
3,128,750.766
159,617,055
267,367,035
237,000,000
261,000,000
203.000,000
276,000,000
47,095,982
67,069,009
46,700,000
67,200,000
79,728,000
106,362,000
No longer will re port clearings.
68,787,387
80,758,090
42,678,657
79,010,850
49,968,822
68,857,262
48,045,573
57,693,345
24,229,671
33,300,318
Per
Cent.
-22.0
-40.3
-9.2
-26.4
-29.8
-30.5
-25.0
-14.8
-46.0
-27.4
-16.7
-27.2
Twelve cities, five days
Other cities, five days
3,447,715,230
518.835,584
4,493,368,675
601,907,165
-23.3
-13.8
Total all cities, five days
All cities, one day
3,966,550,814
793,310.163
5,095,275.840
948,771,977
-22.2
-16.3
Total all cities for week
4.759.860.977
6.044.047.817
-21.2
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day, inasmuch as the week ends to-day
(Saturday) and the Saturday figures will not be available
until noon to-day. Accordingly, in the above the last day
of the week has to be in all cases estimated.
In the elaborate ‘detailed statement, however, which we
present further below", we are able to give final and complete
results for the week previous, the week ended Oct. 29. For
that week there is a decrease of 32.9%, the aggregate of
clearings for the whole country being $3,936,394,868, against
$5,866,384,722 in the same week in 1931. Outside of this
city there is a decrease of 28.7%, the bank clearings at this
center recording a loss of 35.0%. We group the cities
according to the Federal Reserve districts in which they are
located, and from this it appears that in the New York
Reserve District, including this city, the totals show a
contraction of 35.0%, in the Boston Reserve District of
33.6% and in the Philadelphia Reserve District of 19.2%.
In the Cleveland Reserve District the totals are smaller by
31.9%, in the Richmond Reserve District by 18.7% and
in the Atlanta Reserve District by 20.9%. The Chicago
Reserve District has suffered a loss of 40.1%, the St. Louis
Reserve District of 23.5% and the Minneapolis Reserve
District, 23.9%. In the Kansas City Reserve District the
decrease is 29.4%,in the Dallas Reserve District, 13.2% and
in the San Francisco Reserve District, 28.7%.
The volume of transactions in share properties on the
New York Stock Exchange each month since Jan. 1 for the
years 1929 to 1932 is indicated in the following:
SUMMARY OF BANK CLEARINGS.
Week Ended Oct. 29 1932.
1932.
1931.
Inc.or
Dec.
1929.
1930.
Federal Reserve Dists.
1st Boston ____12 cities
2nd New York_ _12 "
3rd Philadelpla 10 4th Cleveland__ 6 "
5th Richmond _ 6 "
6th Atlanta _ _ _ _ 11 "
71h Chicago _ -_20 "
8th St. Louis_ __ 5 "
9th Minneapolis 7 "
10th KansasCity 10 "
11th Dallas
5 "
12th San Fran_ _14 "
$
210,849,694
2,477,876,341
252,847,450
165,849,670
94,981,057
79,000,978
246,104,031
82,275,187
62,323,499
80,602,544
38,384,899
145,299,518
$
317,418,047
3,813,376,670
313,001,490
243,477,819
116,798,135
99,896,254
410,826,071
107,545,865
81,918,397
114,225,333
44,233,749
203,666,892
%
-33.6
-35.0
-19.2
-31.9
-18.7
-20.9
-40.1
-23.5
-23.9
-29.4
-13.2
-28.7
S
$
881,248,563
475,717,773
5,720,636,901 17,143,925,443
791,032,521
463,882,584
529,123.575
357,114,567
225,612,758
160,772,414
204,539,800
131,814,702
702,419,259 1,303,866.874
236,272,095
162,566,222
145,595,079
102,389,680
227,233,067
171,419,646
96,174,562
55,546,593
476.375,468
286,490,203
118 cities
Total
Outside N. Y. City
3,936,394,868
1.536,738,522
5,866,334,722 -32.9
2,156,335,875 -28.7
8,790,770,544 22,260,999,805
3,233,807.912 5.387.549.884
32 cities
252486.857
Canada
Nov. 5 1932
Financial Chronicle
3110
525.101.307
400.220.088
-6.1
265.993.596
We also furnish to-day a summary of Federal Reserve
districts of the clearings for the month of October. For
that month there is a decrease for the entire body of clearing
houses of 38.7%, the 1932 aggregate of clearings being
820,022,433,089, and the 1931 aggregate $32,650,394,895.
In the New York Reserve District the totals show a loss of
40.6%, in the Boston Reserve District of 42.1% and in the
Philadelphia Reserve District of 29.9%. In the Cleveland
Reserve District the totals record a diminution of 35.3%,
in the Richmond Reserve District of 25.9% and in the Atlanta
Reserve District of 29.4%. The Chicago Reserve District
has suffered a decline of 44.5%, the St. Louis Reserve
District, 25.3%, the Minneapolis Reserve District, 23.3%.
In the Kansas City Reserve District the falling off is 31.5%,
in the Dallas Reserve District, 26.7% and in the San Francisco Reserve District, 34.5%.
1932.
No. Shares.
34,362,383
31,716,267
33,031,499
Month of January
February
March
First quarter._ _
99,110,149
31,470,916
23.136,913
23,000,594
Month of April
May
June
Second quarter_
1931.
No. Shares.
42,503,382
64,181,836
85,658,034
1930,
No. Shares.
1929.
No. Shares.
62,308.290 110,805,940
77,968,730
67,834.100
96,552,040 105,661,570
172,343,252 226,694,430 294,436,240
82.600,470
91,283,550
69,546,040
54,346,836 111.041,000
78.340.030
46,659,525
76,593.250
58,643,847
77,608,423 159,650,208
265,974,280 243,430,060
176,718.572 331,993,460 492,668,710 537,806.310
Six months
33,545,650
24,828,600
51,040,164
93,378,890
47,746,090
95,704,890
39,869,500
53,545,145 100,056.120
Third quarter
173,061,133 109.414,318
141,160,735 289,139,700
Nine months
349,782,705 441,407,800 633,829,445 827,006.010
Month of July
August
September
23,057,334
82,625,795
67,381,004
29.201.959
Month of October
47.896.533
65.497.479
141,668,410
The following compilation covers the clearings by months
since Jan. 1 1932 and 1931:
MONTHLY CLEARINGS.
Clearings Outside New York.
Clearings. Total AU.
Month.
1931.
1932.
%
%
1931.
1932.
3
$
S
$
Jan_ _ 26,483,613,804 39,678,379,908 -33.2 9,799,279,675 14,375,919,731 -31.8
Feb__ 21,364,746,405 32,942,435,566 -35.1 8,146,220,677 11.719,161,974 -30.5
March. 24,517,396,666 39,301,344,645 -37.6 8,907,952,306 13,132,959,663 -32.2
1st nu, 72,365,756,875 111920160,119 -35.3 26,853,452.65839,228.041,368 -31.5
October
1932.
October
1931.
October
1929.
October
1930.
Ine.or
Dec.
3
$
%
$
$
Federal Reserve Distil.
1st Boston ____14 cities 1,032,246,709 1,782,585,505 -42.1 2,393,966,600 3,371,434,275
12.649,783,243 21,306,865.762 -40.6 29,644,323,131 55,316,607,566
2nd New York _13 "
1,303,576,715 1,716,325,643 -29.9 2,382,609,039 3,018,110,238
3rd Philadelpla 14 "
843,349.500 1,303,307,404 -35.3 1,770,643,262 2,247,473,430
4th Cleveland_ _13 "
937,151,560
817,200,686
633,607,280 -25.9
469,656,679
iSth Richmond .._9 "
999,957,890
712,616,077
542,567,384 -29.4
383,213,721
6th Atlanta____ 16 '•
1,224,020,778 2,205,467,697 -44.5 3,488,648.820 5,105,665,943
7th Chicago ___27 "
806,890,966 1,043,199,568
534,072,142 -25.3
398,705,633
8111 St. Louls____7 "
730,483,439
654,306,308
417,190,674 -23.3
319,826,506
9th Nlinnea polls13 ••
720,473,053 -31.5 1,034,364,515 1,257,221,790
493,822,467
10th KansasCity 14 "
722,563,022
489,260,720
-26.7
384,235,314
281,647,378
"
10
11th Dallas
722,583,760 1,103,697,037 -34.5 1,473,266,653 3,004,504.586
12th San Fran 23 "
173 cities 20,022,433,089 32,650,394,895 -38.7 45,568,096,777 76,754,373,307
Total
7,762,420,395 11,437,295,985 -35.0 16,684,137,855 22,554,254,406
Outside N. Y. City
19 rifle.
nanortft
1 170 4141171
1 OrA 461 /AA
1 110251 744 -149
7051 AFA Ran
We append another table showing the clearings by Federal
Reserve districts for the ten months for each year back
to 1929:
10 3Io02hs
1932.
10 .1Ionths Inc.or
Dec.
1931.
$
$
Federal Reserve Dists.
1st Boston ____14 cities 10,336,059,751 17,910,422,329
540,241,001,997236,290,496,996
"
York__13
New
2nd
3rd PhIladelPla 14 " 12,395,745,439 18,424,067,093
8,683,775,284 13,647,375,087
4th Cleveland...13 4,631,905,624 0.238,151,801
5th Richmond __9 "
3.851,143,217 5,389,124,976
6th Atlanta....la "
14.918,326.777 26,565,136,849
7th Chicago _ - _27 "
3,898,798,287 5,530,391,221
8th St. Louls___7 "
3,098,069,585 4,147,256,420
9th MInneapolls13 "
5,261,480.059 7,461.158,321
10th KansasCity 14 2,610,611,170 3,643,763,540
10 "
11th Dallas
7,943,302,586 11,468,173,516
"
23
Fran
12th San
10 .1fonths
1930.
10 .1fonths
1929,
5
$
%
-42.3 22,108,576,399 25,384,652,017
-40.6 305,050,877,091 409,614,672,970
-32.7 24,056,819,330 26,479,894,212
-36.4 17,351,595.686 20.152,848,569
-25.7 7,575,529,774 8,101,657,971
-28.5 6,898,786,455 8,340,647,001
-43.8 37,554,837,466 46,130,102,189
-29.5 7,788,785,931 8,896,080,730
-25.3 5,144,901,448 5,348,162,124
-29.5 10,185.338,298 11,750,504,951
-28.4 4,500,916,055 5,711,281,434
-30.7 14,932,029,062 17,078,754,406
173 cities 217,871,019,976 356,715,518,149 -38.9 463,148,991,995 592,989,258,574
Total
81,867,638,737 126,294,952,386 -35.2 165,163,349,110 191,936,902,414
Outside N. Y. City
777 011 OFA 11 OSA 441 Ill _')1'2 1A 0.57 Ar-11 fir.11 /II 77A 4A1 761
,
.In
19 Mlle
Venorle
Our usual monthly detailed statement of transactions on
the New York Stock Exchange is appended. The results for
October and the ten months of 1932and 1931 are given below:
Ten Months.
Month of October.
1931.
1931.
1932.
489,304,333
378,984,664
Stock, number of shares.
47,896,533
29,201.959
Bonds.
Railroad and misc. bonds $108,007,000 $186,825,000 51,289,442,800 $1,542,729,400
746,853,600
562,257,100
State, foreign, kc., bonds
60,842,500 109,850,000
197,672,900
450,296,150
U.S. Government bonds_
55,422,950
20,404,600
Total bonds
2d qu_ 65,508,445,244 116983134,709 -44.0 24,898,487,471 39,598,500,540-37.1
6 Mos_ 137874202,119 228903294,828 -39.0 51.751,940,129 78,826,547,908 -34.3
July _ 19,318,502,525 34,771,090,251 -44.4 7,643,239,237 12,846,267,605 -40.5
Aug __ 20,030,407,920 29,273,223,102 -31.6 7,363,425,031 11,234.050,230 -34.6
Sept.._ 20,625,474,323 31,116,704,973 -33.7 7,346,613,945 11,450,700,558 -35.8
3d qu_ 59,974,384,768 95,161,828,326 -37.0 22,353,278,213 35,531,108,393 -37.1
1 10105. 197848586.887 324065123,154 -35.8 74,105,218,342 114357656,301 -35.2
Dot,_ 20,022,433,049 32,650,394,895 -38.7 7,762,420,395 11,937,295,985 -35.0
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:
BANK CLEARINGS AT LEADING CITIES.
October---- ---- Jan. Ito Oct. 31---1929.
1930.
1931.
1932. 1931. 1930. 1929. 1932.
(000,000s
$
$
$
3
$
$
$
omittect.)
New York
12,260 20,713 28,884 54,200 136,003 230,421 297,966 401,052
9,434 16,787 24.619 30,593
771 1.379 2,311 3,379
Chicago
8,915 15,933 19,710 22,399
897 1,569 2,130 3,019
Boston
1,135 1,593 2,213 2,826 11,566 17,132 22,525 25,670
Philadelphia
6,055
5,200
670
3,929
534
2,601
361
247
St. Louis
8,536
968
776
3,524
7,059
5,790
538
330
Pittsburgh
776 1,090
9,117
4,296
8.162
6,115
587
387
San Francisco
268
3,298
2,701
354
1,773
236
2,429
174
Cincinnati
424
4,414
4,031
491
2,459
327
3,307
243
Baltimore
6,254
544
2,713
5,348
708
3,746
361
252
Kansas City
591
8,690
756
2,840
441
5,659
4,427
286
Cleveland
206
2,265
1,940
289
1,152
177
1,711
115
New Orleans
3,915
359
493
2,049
275
3,377
2,681
215
Minneapolis
1,644
94
80
160
1,628
177
964
757
Louisville
821 1,088
9,840
2,794
442
7,269
5,386
230
Detroit
1,534
126
1,272
170
671
87
996
52
Milwaukee
720
91
65
361
56
577
40
484
Providence
2,019
230
192
143
1,850
944
88
1,486
Omaha
257
2,879
350
161
2,212
1,101
101
1,662
Buffalo
1,210
132
108
645
86
1,003
856
64
St. Paul
1.077
113
91
68
926
726
532
50
Indianapolis
1,578
125
150
115
1,396
806
83
1,086
Denver
1,893
214
158
245
1,899
126
1,122
1,469
Richmond
997
801
178
531
100
454
71
62
Memphis
2,267
173
128
1,696
259
1,343
973
89
Seattle
800
64
651
104
357
51
30
500
Hartford
838
81
58
101
754
41
394
596
Salt Lake City._
Total
Other cities
Description.
1932.
April__ 22,861,717,985 39,852,451,460 -42.6 8,892,895,892 13,471,643,206 -34.0
May__ 20,697,796,463 37,884,078,968 -45.4 7,958,527.684 12.940,470,095-38.5
June__ 21,948,930,796 39,246,604,281 -44.1 8,047,063,895 13,186,393,159 -39.0
5189,254,100 6352,097,950 $2,301,996,050 $2,487,255,900
18,448 30,275 41,669 72,526 201,236 332,493 432,826 559,650
1,574 2,375 3,879 4,228 16,635 24,223 30,323 33,339
20,022 32,650 45,568 76,754 217,871 356,716 463,149 592,989
Totaiall
Outside N. Y. City 7,762 11,937 18,684 22,554 81,868 126,295 165,183 191,937
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. 29 for four years:
CLEARINGS FOR OCTOBER, SINCE JANUARY 1, AND FOR WEEK ;ENDING OCT. 29.
Week Ended Oct. 29.
Ten Months.
Month of October.
Clearings at
1932.
1931.
S
8
First Federal Rese rye District- Boston1,774,107
3,292,331
Maine-Bangor
10.803.085
Portland
14,168,732
NfaSS.-Doston
897.072,432 1,568,783.486
2,969.867
4,454,199
Fall River
1.788,328
2,620.843
Holyoke
1,226,419
2,025.248
Lowell
2,830,535
4,531,639
New Bedford
20,420,888
12,480,242
Springfield
8,462,795
13.557,279
Worcester
30.084,563
51,386.090
Conn.-Hartford_ _ _ _
18,464.173
30,482.111
New Haven
8,033,600
4.548,000
Waterbury
56.406.400
39.916.700
H. L-ProvIdence
1,825,463
2,442,853
N. H.-Manche5ter
Total (14 citles)
1,032,246,709
Inc. or
Dec.
%
-4.6
-23.8
-42.8
-33.3
-31.8
-39.4
-37.5
-38.0
-37.6
-41.5
-46.0
-43.4
-29.2
-25.3
1,782,58,5,505 -42.1
1932.
1931.
$
$
Inc. or
Dec.
%
1932.
1931.
Inc. or
%
1930.
$
$
%
$
1929.
5
18,712,471
27,058,020 -30.8
96,170,817
133,340,590 -27.9
8,915,471,792 15,932,847,460 -44.0
29,771,314
41,513,689 -28.3
16.815,491
22,428,319
25.0
13,221,274
20,282,502 -34.8
25,918,213
38,344,528 -32.4
134.523,578
189,241,378 -28.9
88,175.375
124,175,950 -29.0
357,383.489
500.078,622 -28.5
212.392,458
294,653679 -27.9
47,107.600
39.5
77,875,800
484,127,800 -26.4
361,236.100
19,159,979
24,453.992 -21.6
305.243
1 630 070
0
:00
0
183:00
623.658
472,398
2,541,956
277,053,253
1,055.107
-35.4
-35.9
-33.9
-40.9
733,524
2,855,998
432,007,828
1,047,372
743,831
5,627,497
803,000,000
1,875,195
260,732
658,589
2,380,700
1,862.456
5.876,869
2,972,862
396,745
1,040,261
3,970,195
2,290,316
9,299,726
5,136,797
-34.3
-36.0
-40.0
-18.7
-36.8
-42.1
580,684
1.168,345
4,474,380
2,834,614
11,737,013
6,655,101
1,489,531
2,627,160
8,014,922
4,851.236
23,879,173
10,473,495
10.916,300
364,215
13,093,600 -20.3
467,693 -22.1
10,999.700
623,154
17,847,300
1,019,223
17,910,422,329 -42.3
210,840,694
317,418,047- 33.6
475,717,773
881,248,563
10,336,059,751
3111
Financial Chronicle
Volume 135
CLEARINGS-(Continued.)
1932.
1931.
Week Ended Oct. 29.
Ten Months.
Month of Oaober.
Clearings at-
Inc. or
Dec.
1932.
1931.
7777177-7"
ct".,-V1Rq.1.?Ro!co'w
$
$
$
$
%
Second Federal Re serve District -New York-278,181,758
228,455,799
30,991,720 -33.5
2,804,371
N. Y.-Albany
48,965,574
35,703,823
5,058,578 -28.7
3,618,444
Binghamton
160,999,101 -37.4 1,101,195,789 1,882,282,554
100,718,679
Buffalo
43,911,471
30,688,153
-41.7
4,002,834
2,331,874
Elmira
39,399,071
24,928,487
3,542,114 -35.8
2,273,629
Jamestown
12,260,012,694 20,713,098,910 -40.8 136,003,381,239 230,420,585,783
New York
420.589,983
307,052,060
-38.7
44,257,829
27,109,800
Rochestern
213,211,793
182,381,702
22,114,096 -28.9
15,732,892
Syracuse
112,208,482
142,855,995
14,791,943 -31.1
10,197,109
Conn.--Stamford
30,955,437
23,232,713
-31.9
3,535,918
2,408,567
N. J.-Montclatr
929,151,816 1,308,848,418
125,787,672 -37.5
78,614,758
Newark
1,615,248,300
1,231,568,219
-29.1
172,148,805
121,971,530
N.
J
Northern,
67,720,899
51,855,755
6,538,442 -35.9
4,189,096
Oranges
Inc. or
Dec.
1932.
1931.
Inc. or
Dec.
1930.
1929.
3
$
%
$
$
8,062,100
3,875,628
1,010,342
533,725
29,817,679
22,544,890
739,374
852,775
596,982
438,218
2,399,656,346 3,710,048,847
7,352,175
5,192,685
3,817,656
3,264,915
2,883,757
1,934,370
521,798
334,937
23,929,538
17,184,058
26,818,428
22,463,767
8,177,556
-39.4
7,575,167
1,846,423
-47.2
1,093,387
86,971,558
67,710,391
-23.9
1,032,061
-11.7
908,857
837,163
1,382,546
-26.6
-35.3 5,558,982,632 16873449,921
-29.4
9,680,639
20,601,635
-14.5
4,893,114
9,188,510
3,251,106
4,945,129
-32.5
880,307
900,000
-35.8
46,411,940
-28.2
30,343,420
89,238,164
-18.3
38,900,718
3,813,378,670 -35.0 5,720,636,901 17143925,443
Total (13 cities)._ 12,649,783,243 21,306,885,782 -40.6 140,241,801,997 236,290,496,998 -40.6 2,477,878,341
Third Federal Res erve District -Philadelphi a17,823,416
31,785,860 -43.9
2,502,840 -47.8
1,305,746
Pa.-Altoona
145,496,192 -31.2
100,078,929
4355,000,000
13,810,771 -63.8
Bethlehem
39,290,240 -55.6
17,460,901
4,640,693 -70.5
1,367,995
Chester
148,073,263 -31.0
102,115,088
13,795,374 -35.8
8,852,126
Harrisburg
-50.3
102,907,978
51,188,785
-57.8
13,229,930
5,583,151
Lancaster
24,140,232 -36.4
15,358,188
2,562,901 -40.8
1,516,235
Lebanon
28,351,121 -32.0
19,280,598
3,132,748 -38.2
1,936,957
Norristown
1,135,000,000 1,593,900,000 -28.8 11,566,000,000 17,134,100,000 -32.5
Philadelphia
94,805,283
127,717,305 -25.9
12,687,083 -35.4
8,194,321
Reading
183,118,730 -43.8
102,972,441
16,225,292 -37.9
10,068,104
Scranton
128,757,206 -41.4
75,509,242
9,812,588 -30.4
8,834,256
Wilkes-Barre
75,253,366 -33.3
50,184,868
7,383,425 -38.8
4,507,824
York
45,060,000
72,526,000 -37.9
6,385,000
-41.8
3,705,000
N.J.-Camden
182,549,600 -24.3
138,129,700
16,297,000 -40.4
9,705,000
Trenton
Total(13 cities)
-1.5
b
-28.4
-35.2
-24.9
-18.9
-59.8
-33.6
b
-39.6
38.3
-65.4
-38.7
-21.1
-33.8
843,349,500 1,303,307,404 -35.3
Fifth Federal Rese rye District- Richmond2,206,608
1,416,889
W. Va.-Huntington.
14,942,813
9,884,000
Va.-Norfolk
125,933,026
158,271,576
Richmond
7,764,340
3,262,316
N.C.-Raleigh
8,055,447
4,039,164
S. C,-Charleston
7,449,800
3,386,321
Columbia
328,880,059
243,324,363
Md.-Baltimore
1,444,725
Frederick
1,072,489
b
b
Hagerstown
106,592,112
77,358,331
D. C.-Washington
Total(9 cities)
469,656.879
449,245 -43.1
3,142,149 -90.9
548,824 -60.2
1,254,107
4,355,991
1,210,621
1,486.250
5,787,222
1,400,000
932,406
2.029,987 -54.1
1,640,803
2,203,575
-17.8
-34.1
-32.7
-21.3
-45.4
439,000,000
2,885,230
4,454,808
3,303,665
2,043,359
754,000,000
4,794,951
8,890.531
4,851,282
2,170,258
243,000,000
1,482,161
1,969,973
1,385,448
77,244
295,000,000
2,219,495
2,927,984
1,735,603
1,424,203
2,582,000
3,526,000 -26.8
3,754,000
5,443,454
252,847,450
313,001,490 -19.2
463,882,584
791,032,521
-87.5
b
-28.9
-35.8
-37.4
-40.1
58.8
-46.0
b
-40.2
-31.1
-88.3
-39.1
-13.6
-42.6
d242,000
b
35,380,749
57,398,133
7,031,700
2,985,000 -91.9
b
b
43,983,000 -19.6
81,808,351 -29.8
7,805,300 -9.9
3,923,000
b
54,047,797
113,308,064
13,852,900
5,079,000
b
85.039,859
170,834,771
19,978.800
c719,689
b
1,114,005 -35.4
b
b
1,482,184
b
2,349,287
b
65,077,399
105,782,163 -38.5
170,500,622
245,841,858
8,683,775,284 13,647,375,087 -36.4
165,849,670
243,477,819 -31.9
357,114,567
529,123,575
-37.5
-24.8
-23.8
59.8
-51.8
58.4
-25.6
38.4
b
-22.0
281,915
1.786,000
29,351,398
373,269 -29.8
3,139,899 -43.1
34,617,661 -15.2
858,738
3,860,370
48,131,000
1,328,846
5,789,068
59,812.000
Total(14 cities).- 1,203,578,715 1,716,325,843 -29.9 12,395,745,439 18,424,067,093 -32.7
Fourth Federal Re serve District -Cleveland-13,609,000
d 1,340,000
Ohio-Akron
b
b
Canton
236,098,298
173,670,068
Cincinnati
285,575,342
440,933,148
Cleveland
33,092,600
44,064,600
Columbus
2,595,416
2,105,156
Hamilton
1,013,004
407,537
Lorain
5,655,223
c3,756,478
Mansfield
b
b
Youngstown
1,359,195
821,067
Pa.-Beaver Co
588,257
349,303
Franklin
3,165,313
1,094,738
Greenburg
538,117,246
329,905,866
Pittsburgh
4,381,530
3,457,517
Ky.-Lexington
11,749,174
7,773,830
W. Va.-Wheeling_
255,493
e285,353
217,372
17,311,000
b
1,773,105,726
2,840,171,150
330,049,400
19,455,751
5,401.725
34,283,477
b
8,759,057
4,230,588
12,174,636
3,524,268,528
43,558,019
71,008,229
138,644,000
b
2,424,652,802
4,427,141,723
627,398,800
32,476,844
12,511,044
83,518,115
b
14,644,473
6,137,329
38,095,981
5,789,938,554
50,438,377
123,781,485
----
-35.8
-34.0
-20.4
58.0
-49.9
54.5
-25.6
25.8
b
-27.4
16,291,116
112,062,783
1,121,760,254
29,142,820
34,539,839
37.081,255
2,459,163,113
70,258,828
b
811,606,218
26,080,394
149,060,244
1,469,884,480
72,421,647
71,730,841
85,089,894
3,307,391,777
16,642,988
b
1,040,049,556
14,396,340
19,297,894 -,25.4
20,305,886
30,277,699
633,607,280 -25.9
4,631,905,824
6,238,151,801 -25.7
94,981,057
116,798,135 -18.7
160,772,414
225,612,758
-43.4
-15.3
-26.2
-32.2
-55.9
-32.2
-28.4
27.1
-27.9
-34.0
-43.3
-2.5
-2.9
20.5
-14.1
-35.3
108,843.454
385,237,819
1,192,375,000
36,776,305
19,059,907
21,284,243
361,339,494
45,573,727
383,617,947
37,097,393
20,753,188
30,286,000
40,312,907
12,134,879
4,930,329
1,151,520,825
114,915,032
537,929,041
1,548,889,466
57,537,425
30,889,753
33,082,918
502,066,457
62,503,171
571,539,999
57,598,038
30,585,086
47,888,000
80,220,158
15,819,287
5,989,836
1.711,893,511
-5.3
-28.4
-23.0
-38.1
-38.3
-35.7
-28.0
-27.1
-32,9
-35.6
32.1
-36.8
-33.1
-23.3
-17.4
-32,7
2,084,284
8,673,997
26,100,000
941,689
2,045,071 +1.9
9,509,153 -8.8
31.400,000 -16.9
1,248,271 -24.6
2,202,279
19,319,378
42,022,758
2,325,845
2,850,780
24.881.522
88,787,356
2,968,280
391,298
6,203,435
595,899 -34.3
8,415,382 -26.3
1,178,688
9,268,987
3,000,000
11,963,894
8,081,438
711,173
11.193,048 -27.8
1,108,719 -36.8
16,172,344
1,880,858
29,694.897
2,239.787
542,567,384 -29.4
3,851,143,217
Sixth Federal R eserve Distric t-Atlanta17,656,712
Tenn.-Knoxville*10,000,000
49.299,410
Nashville
41,760,785
182,840,137
120,100,000
Ga.-Atlanta
5,954,584
4,040,115
Augusta
3,924,835
1,729,883
Columbus
3,149,190
1,975,871
Macon
41,421,407
29,637,844
151a.--Jaeksonville
4,839,730
3,526,874
Tampa
54,846,266
39,533,062
Ala.-Birmingham_
5,473,488
3,612,004
Mobile
3,421,328
1,938,288
Montgomery
4,202,000
Miss.-Hattiesburg
3,135,000
5,628,839
Jackson
5,484,057
1.519,592
Meridian
1,207,523
598,994
512,735
Vicksburg
177,794,874
La.-New Orleans
115,039,682
716,821
1,600,000 -48.9
2.298,198
2,746,947
48,488,583
57,769,412 -16.1
87,320,222
125,878,398
-8.1
2,178,120
2,500,000
80,319
24,839,345
109,532 -26.7
33,080,643 -25.5
201,835
35,065,612
357,485
55,515,819
5,389,124,976 -28.5
79,000,978
99,896,254 -20.9
131,814,702
204.539,800
4,691,269
6.892,803 -32.9
25,591,349
35,088,582 -27.1
279,656,637 5,385,800,523 -48.1
52,851,638
92,745,348 -43.0
197,477,337 -38.0
122,511,782
34,308,024
21,850,848
36.3
58,240,782
127,494,246 -54.3
44,845,617
92,886,650 -51.7
64,675,102
149,906,011 -58.9
726,125,078 -28.8
531,804,151
50,111,708
74,818,230 -33.0
134,854,841
188,005,140 -27.8
44,324,463
101,118,349 -58.2
670,595,094
995,773,864 -32.7
17,731,179
27,191,446 -34.8
30,837,929
122,027,344 -74.7
207,073,572
484,160,419 -57.2
218,360,817
286,672,793 -23.8
b
b
b
102,740,706
183,927,499 -37.3
8,463,026
33,116,472 -74.4
14,434,297
36,020,973 -59.9
39,343,170
64,140,441 -38.8
9,434,100,738 16,787,320,725 -43.8
39,307,104 -40.0
23,584,589
100,140,928
135,259,686 -26.0
30,658,694
84,207,419 -83.6
95,546,473 -26.3
70,452,087
87,940
348,406
45,548,460
124,559 -45.5
834,981 -45.1
83,311,845 -45.3
168,942
239,242
123,840,576
239,903
1,204.904
234,442,140
2,074,175
3,451,994 -37.0
4,849,513
6,770.240
388,100
766,460
1,802,048 -78.6
1,420,360 -46.0
2,132,370
2,893,394
3,639,270
4.733,806
9,588,000
991,097
2,714,511
14,188,000 -32.4
1,252,498 -20.9
3,572,094 -24.0
20,879,000
2,495,025
4,315,504
24,940,000
3,381.517
6,296,464
10,421,382
16,503,396 -36.9
24,366,541
38,776.848
495.105
1,681,224 -70.8
2,625,863
3,124,558
4,180,783
4,576,615
-8.6
6,142,701
10,446,833
1,692,330
1
3,608,156 -53.1
446,337
__
5,187,843
1,311,075
6,649,409
1,469,918
855,734
162,362,445
384,444
1,729,922
379,460
1,117,277
1,091,771
287,163,983
833,896
2,541,290
1,086,775
1,534,249
-21.6
-39.2
-53.9
-31.9
--65A
-27.2
1,483,555
490,409,868
1,016,067
3,643,326
2,418,915
2,220,139
1,892,310
941,908,440
1,187,521
8,140,151
3,848,840
2,776,006
Tptai Wattles)._ 1,224,020.778 2,205,487.697 -44.5 14.918,328.777 26,566,136,849 -43.8
246,104,031
410,826,071 -40.1
Total(16 cities)_.
383,213,721
Seventh Federal R eserve Metric t-Chicatio802,393 -35.3
389,790
Mich.-Adrian
3,316,829 -28.8
2,368,680
Ann Arbor
442,182,037 -47.9
230,296,374
Detroit
8,206,635 -48.2
4,412,136
Flint
17.905,800 -43.9
10,040,790
Grand Rapids
3,008,563 -40.8
1,780,954
Jackson
11,656,553 -85.4
1,704,128
Lansing
7,018,437 -47.3
3,701,684
Ind.-Ft. Wayne.
12,518,543 -62.1
4,740,161
Gary
67,047,078 -25.0
50,160,000
Indianapolis
6,157,697 .-28.7
4,388,232
South Bend
15.681,382 -20.7
12,412,585
Terre Haute
10,240,384 -85.5
3,535,968
Wis.-Madison
87,340,040 -40.9
51,805,814
Milwaukee
2,625,543 -38.3
1,619,042
Oshkosh
10,683,175 -74.5
2,729,214
Rapids_
-Cedar
Iowa
30,752,918 -49.8
15,452,705
Davenport
29,422,337 -25,4
21,942,186
Des Moines
b
b
b
Iowa City
18,000,537 -45.9
9,732,079
Sioux City
____
3,033,931
f
Waterloo
3,118,358 -75.8
755,522
111.-Aurora
5,485.268 -82.3
973,057
Bloomington
770,954,254 1,378,737,061 -44.1
Chicago
3,383,157 -43.8
1,901,061
Decatur
12,443,488 -32.9
8,346,149
Peoria
5,818,418 -66.4
1,885,632
Rockford
8,701,339 -28.8
8,194,815
Springfield
Elohth Federal Re serve District -St. Louisb
b
Ind.-Evansville
736,584
299,147
New Albany
360,553,272
247,432,747
330.-St. Louis
94,213,014
79,848,928
Ky.-Louisville
b
b
Owensboro
4,000,000
8,181,887
Paducah
70,889,538
62,174,828
___
Tenn.-Memphis_
550,795
408,153
111.-Jacksonville____
3,328,939
2,381,985
Quincy
534,072,142
398,705,633
Total(7 cities)
b
-50.4
-31.4
-15.2
b
+54.0
-12.0
-25.9
-28.4
b
4,307,786
2,600,878,488
757,485,478
b
53,919,559
453.618,042
4,728,928
23,880,026
b
10,536,357
3,929,385,983
983,947,204
b
54,227,514
531,075,761
6,577,843
34,640,579
-25.3
3,898,798,287
6,530,391,221 -29.5
b
-59.1
-33.8
-21.4
b
-0.8
-14.6
-28.1
-31.1
1,094,000
b
1,190,736
b
b
702,419,259 1,303,866,874
b
b
51,100,000
16,004,786
b
71,700,000 -28.7
19,198,799 -16.8
b
b
107,600,000
32,549,483
b
158,000,000
38,651,728
b
14,727,175
71,097
372,129
15,994,872 -7.9
99,844 -28.6
552,550 -32.7
21,217,99
153,699
1,045,049
37,799,280
330,792
1,490,295
82,275,187
107,545,885 -23.5
162,566,222
238,272,091
3112
Financial Chronicle
Nov. 5 1932
CLEARINGS-(Conciuded.)
Month of Oaober.
?ear bus al1932.
Ten Months.
Inc. or
Dec.
1931.
Ninth Federal Res erve District -Minneapoli s-Minn.-Duluth..
10,578,243
14,949,385 -29.2
Minneapolis
274,574,226 -21.7
214,929,865
Rochester
883,623
982,862 -10.1
St. Paul
85,852,194 -25.1
64,324,804
N.Dak.-Fargo
7,186.469
7,777,972
Grand Forks
3,997,000
6,925,000 --42.3
Minot
679,000
1,108,000 --38.7
S. Dak.-Aberdeen_ _
3,177,959 --29.8
2,231,872
Sioux Falls
3,040,400
5,416,650 --43.9
Mont.-Billings
1,487,459
2,103,356 --29.3
Great Falls
3,500,195 --34.1
2,305,085
Helena
10,570,180 --24.2
8,009,806
Lewistown
172,880
252,695 --31.6
1932.
Week Ended 0 I. 29.
Inc. or
Dec.
1931.
1932.
Inc. or
Dec.
1931.
1930.
1929.
98,871,181
2,048,793,858
10,141,451
644,669,932
73,181,054
44,792,000
7,756,298
25,478,563
34,454,443
14,072,592
21,661,651
72,387,855
1,808,707
169,738,264
2,681,459,233
14,259,257
855,750.305
81,742,880
60,873,000
12,117,513
34,991,044
67,015,605
22,551,251
34,153,203
110,053,595
2,551,270
--41.8
--23.6
--28.9
--24.7
--10.5
--26.4
--36.0
--27.2
--48.6
--37.6
-36.8
--34.2
--29.1
1,952,718
43,725,628
3,368,346 -42.0
56,395,558 --22.5
4,673,502
70,147,623
7,075,509
103,863,114
12,763,350
1,511,516
17,462,555 --26.9
1,748,917 --13.6
21,073,919
1,938,363
26,326.959
2,227.994
462,366
666,135 --30.6
1,034,496
1,436,171
258,409
378,189 --31.7
627,777
823,812
1,649,512
1,898,697 --13.1
2.894,000
3,841,520
417,190,674 -23.3
3,098,069,585
4,147,256.420 -25.3
62,323,499
81,918,397 -23.9
102,389,680
145,595,079
Tenth Federal Res erve District -Kansas Cit yNeb.-Fremont
861,894 ---41.4
504,934
Hastings
817,517 --51.1
.400,000
Lincoln
12,925,598 --46.6
6,916,272
Omaha
142,758,513 ---38.7
87,536,623
Kan.-Kansas City....
10,007,192 --33.4
8,663,959
Topeka
9,842,459 -35.9
6,313,132
Wichita
20,313,437 ---23.0
15,632,834
MO.-Joplin
2,030.237 --40.2
1,215,074
Kansas City
360,853,760 ---30.5
251,652,631
St. Joseph
15,431,614 ---34.7
10,084,000
Okla. Tulsa
20,919,229 --9.0
19,035,014
Colo.-Colo. Springs.
3,936,434 --37.5
2,459,556
Denver
114,622,759 ---27.5
83,076,229
Pueblo
5,152,410 --54.7
2,332,209
7,119,896
6,210,632
81,125,244
944,189.136
74,750,329
75,049.420
172,408,165
13,726,206
2,713,017,155
113,986,756
192,858,259
29,793,018
805,838,909
31,406,934
11,266,138
14,816,180
126,179.507
1,485,531,697
100,706,081
114,885.542
222,373,713
21,201,014
3,746,378,290
175,796,397
259,233,073
43,276,001
1,086,027,429
53,487.259
72,602
84,367
1,260,925
16.909,727
147,817
134,209
2,268,977
28,332,371
--50.9
--37.1
-44.4
-40.3
228,643
305,010
2,846,504
39,997,754
373,996
513,893
3,561,742
47,254.827
1,409,581
3,119,607
1,690,079
4,020,378 --22.4
2,723,888
5,952,597
3,511,493
7,642.090
54,487,158
2,317,823
72,738,223 --25.1
3,194.912 --27.5
112,908,966
4,882,808
155,742,223
6,373,298
486,801
453,953
703,488 -30.8
a
994,879
178,119
a
1,397,357
1,;68,106
5,261,480,059
7,461.158,321 -29.5
80,602,544
114,225,333 -29.4
171,419,646
227,233,067
-58.5
-60.9
-23.8
-24.5
-25.6
-21.1
-27.1
-52.7
-36.2
-32.6
36,371,180
34,664,708
1,141,433.702
101,982,924
232,020,279
90,807,000
838,040,310
10,950.485
23,443,000
100,897,582
64,725,189
64,136,756
1,515.622,222
182,974,606
315,902,243
107,238,000
1,179,477,649
19,906,172
46,857,000
146,923,703
-31.3
1,733,188
2,391,860 -27.5
2,856,660
5,391,166
384,235,314 -26.7
2,610,611,170
3,643,763,540 -28.4
38,384,899
44,233,749 -13.2
55,546,593
96,174,562
19,015,492
4.659,000
513,828
24,650,895 --22.9
7,244,000 --35.7
788,256 --28.1
33,667,138
10,107,000
1,560,000
62,859,615
13,862,000
2,064,574
15,198,561
21,150,552 -28.1
32,022,978
43,549,921
8,488,796
11,240,558 -56.5
16,256,327
20,976,505
2,323,361
3,850,879 -39.7
No longer will report dearth gs.
5,614,734
8,355,283
Total(13 cities)._
Total(14 cities).
319,826,506
493,822,487
720,473.053 -31.5
Eleventh Federal Reserve Distr ict-DallasTexas-Austin
2,922,522
7,037,877
Beaumont
5,979,438
2,337,285
Dallas
170.699,694
130,140,364
El Paso
9,380,078
12,427.502
Fort Worth
32,469,191
24,153,883
Galveston
13,823,000
10,912,000
Houston
122,541,337
89,318,091
Port Arthur
881,169
1,864,397
Wichita Falls
2,200,000
3,449.000
La.-Shreveport
13,943.878
9,401,986
Total(10 cities) _ _
281,647,378
Twelfth Federal R eserve Distric t-San Franc isco-Wash.-Bellingham_ _
, ,
1,505,000
-41.9
Seattle
89,346,609
127,940,738 -21.6
Spokane
22,618,000
39,712,000 -42.8
Yakima
2,346.088
4,120,763 -43.1
Idaho-Boise
*3,000,000
5,800,161 -48.3
Ore.-Eugene
444.000
1,305.000 -66.0
Portland
72,918,335
116,256.547 -37.3
Utah-Ogden
2,226.751
2,830,665 -21.4
Salt Lake City
40,510,843
57,855,096 -28.2
Ariz.-Phoenlx
6,066,477
11,743,840 -48.2
Calif.-Bakersfield_
3,160,703
4,130,382 -36.6
Berkeley
11,769,204
18,239,946 -35.5
Long Beach
11,296,263
20,315,732 -44.5
Los Angeles
No longer will report clearin gs.
Modesto
1,824,790
2,902,791 -37.2
Pasadena
10,404,629
18,063,248 -42.4
Riverside
2,264,283
3,430,043
Sacramento
25,026,022
32,343,701 -22.6
San Diego
•10,000,000
15,599,887 -35.9
San Francisco
386,532,661
586,809,918 -34.1
San Jose
7,123,069
11,757.580 -39.4
Santa Barbara
4,057,646
6,425,575 -36.9
Santa Monica
3,238,127
6,433,824 -49.7
Stockton
4,904,260
7,080,060 -30.6
--38.8
--58.1
--35.7
-25.8
--22.5
--35.3
--27.6
--35.2
--25.6
--31.2
--25.8
--41.3
-43.8
-46.0
--24.7
--44.3
--26.8
--15.3
--28.9
--45.0
17,447,540
972,881,081
244,363,000
19,303,750
37,230,698
6,054,575
757,433,689
19,606,623
394,266,576
85,339,067
29,330,835
139,217,243
132,293,834
28,612,486
1,342,700,091
392,531,000
36,627,448
56,312,896
12,871,000
1,173,210,744
42,628,390
595,903,082
132,025.470
40,742,252
167,346,118
234,275,722
--39.0
-27.6
-37.7
-47.1
--33.9
-51.3
-35.4
-53.9
-33.8
-35.4
--25.6
--16.8
--43.6
17,625,925
137,701,680
32,616,441
271,500,408
125,105,077
4,295,592,572
70,042,583
47,948,965
39,616,552
50,783,872
25,920,073
204,162,891
35,006,506
323,864,821
183,934,757
6,114,761,181
111,586,652
73,644,544
70,591,692
68,913,700
-31.6
-32.1
-6.9
-16.2
-32.0
-29.8
-37.3
-43.7
-26.2
560,184
28,536,205
5,287,324
2,268,000
2,000,657
4,741,683
.1,500,000
82,821,415
1,349,599
790,438
737,388
1,162,320
1,126,192 -50.3
493,399
1,234,973
1,969,698
-9.6
39,514,643
65,960,948
6,339,318 --16.8
2,822,000 --19.8
8,761,317
3,179,000
15,697,750
7,155,000
31,554,379
3,262,664 -38.7
5,577,824
2,654,408
117,389,050
2,122,680
1,122,251
1,171,575
1,441,300
--15.0
--43.5
--29.4
--38.4
--29.6
--37.1
--19.4
4,521,724
7,109,730
5,460,455
4,101,921
165,484,413
2,649,605
1,650,065
1,796,043
1,657,800
6.557,970
6,637,391
288,767,601
8,337,258
2,305,210
1,995,810
2,986,600
Total(23 cities)- 722,583,760 1,103,697,037 -34.5 7,943,302,586 11,468,173,516 -30.7 145,299,518 203,666,892
--28.7 286,490,203 476.375,468
Grand total (173
cities)
20,022,433,089 32,650,394,895 -38.7 217,871,019,976 356,715,518,049 -38.9 3,396,394,868 5,866,384,722
--32.9 8,790,770,544 22260999,805
Outside New York__ _ 7,762,420,395 11,937,295,985 -35.0 81,867,638,737 126,294,952,286 -35.2 1,536,738,522
2,156,335,875 --28.7 3,233,807,912 5,387,549,8s
CANADIAN CLEARINGS FOR OCTOBER, SINCE JANUARY 1, AND FOR WEEK
ENDING OCT. 27.
,
Month of October.
Ten Months.
Clearings at1932.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
New Westminster..,.,
Medicine Hat
Peterborough
Sherbrooke
Kitchener
Windsor
Prince Albert
Moncton
Kingston
Chatham
Sarnia
Sudbury
$
350,168,963
349,130,648
220,522,190
53.953.621
17,350,551
17,428,026
10,291,510
15.440,933
28,355,453
6,915,278
5,760,430
10,865,509
17,460,146
21,475,734
1,637.829
1,574,941
7,554,860
2,842,787
3,315,987
2,357,362
1,927,498
1,062,294
2,582,991
2,405,337
3,887,670
8,205,076
1,228,306
2,793,408
2,128,314
1,705,813
1,537,908
1,970,648
1931.
Inc. or
Dec.
$
%
438,260,992 -13.3
406.641,790 -14.1
215,150,176 +2.5
64,379.318 -16.2
28,038,316 -38.2
23,476,879 -25.4
12,427,830 -17.2
21,248,889 -27.3
27,875,487 +1.7
9,618,474 -28.1
8,538,829 -31.4
12,278.252 -11.4
19,291,839 -9.4
19.423,522 +10.5
1,879,892 -7.5
1,837,558 -13.7
8,199,272 -5.5
3,111,788 -8.7
3,936,999 -15.8
2,837,274 -16.9
3,324,250 -42.2
1,280,233 -16.2
2,904.964 -11.2
3,203,675 -24.9
4,756,821 -18.1
11,481,213 -28.1
1,567,053 -20.9
3,244,760 -13.9
3,206,539 -33.6
2,030.217 -16.2
1,939,893 -20.8
2,668,770 -25.8
1932.
$
3,309,860,655
3,364,775,107
1,620.490.447
529,878,679
103,035,804
176,180,887
97,946,151
160,282,412
211,431,486
73,284,181
59,856,181
107,839,461
163,482,834
147,601,375
14,562.456
13,987,000
60,909,095
23,820,002
32,890,541
23,963,402
19,803,575
7,853,602
24,959.988
24,458,522
36,524,118
98,447,114
12,073,220
29,882,874
22,899,344
17,878,608
16,765,573
20,289.262
1931.
Week Ended Oct. 27.
Inc. or
Dec.
8
%
4,867,902,918 -32.0
4,368.071,165 -21.2
1,679,468.784 -2.3
668,805,384 -19,3
265,566,554 -26.9
238,986,332 -26.3
127,766.660 -22.5
208,333,699 -23.2
261,722,373 -19.2
97,217,463 -24.6
80,753,044 -25.8
121,194.090 -11.0
187.987.089 -13.0
150,298,866 -1.8
17,199,371 -15.3
17,132,519 -12.6
73,157.276 -16.8
31.858,303 -25.2
40,824.982 -19.4
28.587.881 -16.2
26,426,351 -25.0
10,103,232 -22.3
31,474,135 -20.7
31,311,692 -21.5
44,655.403 -18.2
128,079,758 -22.4
16,370,190 -26.2
32,159,622 -7.1
29,318,631 -21.9
21,897,477 -18.4
21,164,023 -20.8
30,797,967 -34.1
Total(32 cities).- 1,175,838,021 1,370,081,784 -14.2 10,717,933,956 13,056,593,234 -23.2
1931.
Inc. or
Dec.
1930.
$
$
%
$
68,974,092
77,325,884
51,846,497
12,154,184
3,727,612
3,363,231
1,759,201
3.017,792
6,702,637
1.665,561
1,146,672
2,358,739
3,297,972
4,437,741
308,712
372,192
1,595,542
638,678
647,277
435,346
413,748
227,432
494,212
498,878
720,062
1,776,432
258,882
712,355
468,841
368,122
354,148
418,183
252,486,857
76,369,292 -9.7
80,733,125 -4.2
50,255,622 +3.2
13,862,145 -12.3
4,776,064 -22.0
4,494,706 -25.2
2,251,047 -21.8
3,949,431 -23.6
6,039,335 +11.0
2,019,088 -17.5
1,397,212 -17.9
2,302,656 +2.4
3,874,762 -14.9
4,528.918 -20.0
341,639 -9.6
348,802 +6.7
1,741,206 -8.4
632,898 -1.0
746,511 -13.3
461,183 -5.6
498,039 -16.9
238,494 -4.6
532,722 -7.2
619,737 -19.5
818.155 -12.0
2,156,061 -17.6
367,770 -29.6
614,219 +15.6
661,909 -29.2
440,683 -16.5
349,116 +1.4
570,349 -26.9
268,993,896
a No longer reports weekly clearings. b Clearing house not functioning at present. c Claming
house re-opsned n February.
two largest banks. e Due to merger of two leading banks, this figure represents the exchange of checks between fewer institutions.
ings figures available. •Estimated. a Eilx =dohs'figures.
-- -
1932.
-6.1
150,723,995
103,327.084
54,613,372
17,404.810
5,763,656
6,344,848
3,130,621
5,311.628
0,599.382
2,432,250
1,905,222
2,088,081
4,866,661
5,106,505
482,605
547,215
2,071,321
1,210,819
979,890
741,121
748,934
338,275
695,278
745,587
1,206,372
2,891,612
407,322
994,912
736,928
465,799
447,189
900,814
400,220,088
1929.
3
166,037,957
141,517,918
97,311,457
25,877,905
8,450,134
7,901,355
3,466,559
6.489,940
15,378,171
2,765,257
3,232,425
3,517,844
8,205.034
9,521,517
886,882
937,665
4,189.385
1,821,466
1,580,584
1,061,611
931.256
689,716
1,155,413
1,100,713
1,372,924
5,391,247
608,120
1,167,381
927,597
873,678
729,536
525,101,307
d Figures smaller due to merger of
f Only one bank open. No clear-
Volume 135
THE CURB EXCHANGE.
Speculative activity on the curb market has been extremely
quiet this week and entirely devoid of noteworthy features
until Friday, when the trend turned upward. Price movements have generally been within a narrow range and while
there have been frequent periods of liquidation, these were
usually balanced by brief rallies. The trend, however, has
generally been toward lower levels. Public utilities have
been weak, industrials and specialties inclined to ease off,
and the movements in the oil group were, as a rule, toward
lower levels. On Saturday the curb market displayed a
fairly firm undertone and while there were some early advances, most of these were erased in the last hour. Electric
Bond & Share was fairly firm, but moved within a narrow
channel. American Gas and Commonwealth Edison made
some gains, but lost them in the late reaction. National
Dairy Products prof. lost about 3 points and Metropolitan
Edison pref. dropped about 5 points, while American Gas
fell off about a point. Prices were decidedly irregular as
the market resumed its sessions on Monday, and while
rallying tendencies were apparent in the afternoon, the final
quotations showed little change from the preceding close.
Some liquidation was apparent but this was quickly absorbed.
Electric Bond & Share was active but eased off below 23 and
%. Great Atlantic & Pacific
then made a slight gain to 233
Tea Co. fell off about 3 points and small declines were apparent in Deere, Fisk and Standard Screw. Industrial issues
were heavy and showed a loss of about a point at one time,
but closed without change. Oil shares were quiet and without noteworthy movement.
Public utilities were the weak spots on Tuesday, sharp
breaks due to selling occurring in many prominent issues in
the group and forced them fractionally downward to new
low levels. Electric Bond & Share, for instance, was off
over a point and a number of preferred issues of the power
stocks manifested great weakness. Alabama Power 6%
pref. fell off 5 points, Columbia Gas & Electric cony. prof.
dropped 3 points and Cities Service pref. declined about a
point. Losses in the regular list were more impressive.
American Beverage dipped 134 points and New York Steam
and Stutz were under pressure. Oil shares moved sharply
downward under the guidance of Gulf Oil of Pennsylvania.
Dealings were extremely quiet and featureless on Wednesday
and eased off as the session progressed. Losses in the pivotal
stocks were small, the weak features including issues like
Acme Steel which slipped back 53/ points, Cleveland Electric
Illuminating Co. and Crocker Wheeler Co. both of which
fell back about a point, also New England pref. which
dipped about 1% points. Hiram Walker attracted a lot of
attention and showed a fractional gain and Columbia Gas
prof. rose about 2 points at its top for the day, but lost most
of its gain before the session ended. The trend of the curb
market was somewhat mixed on Thursday and reacted to
some extent in harmony with the movements of the big board.
Industrials were under pressure, particularly Aluminum Co.
of America which declined about a point and Aluminum Co.
pref. was off nearly 5 points. Electric Bond & Share was
fairly firm for a while, but dipped in the afternoon s.nd closed
with a fractional loss. Oil shares continued to move within
a narrow channel and most of the power shares were off.
Curb securities rose from 1 to 6 points in the brisk advance
on Friday. The gains were broadly distributed throughout
the list which moved forward with Aluminum Co. of America
in the van. Public utilities were featured by Electric Bond
and Share which ran up about 3 points to 23. American Gas
was also strong and gained about 2 points. The changes for
the week were largely on the side of the decline, though the
gains on Friday cancelled a part of the week's losses. The
recessions for the week included among others, American
Beverage 4% to 3%, Aluminum Co. of America 533/i to 50,
American Gas & Electric 283A to 265/s, American Light &
Traction 1734 to 17, American Superpower 5 to 43', Atlas
Corporation 7 to 6%, Central States Electric 3 to 33%, Cities
Service 33' to 33., Commonwealth Edison 74 to 7134,
Consolidated Gas of Baltimore 63 to 62, Cord Corporation
43% to 4,Deere & Company 934 to 9, Ford of Canada A 7 to
63', International Petroleum 9% to 9%, New Jersey Zinc 32
% to 1434, Pennroad
to 3134, Niagara Hudson Power 143
Corporation 1% to 134, Singer Mfg. Company 9834 to 98,
4 to 343%
A. 0. Smith 20 to 19, Unitpd Shoe Machinery 343
and Utility Power 2 to 134.
3113
Financial Chronicle
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Week Ended
Nov.4 1932.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Sales at
New York Curb
Exchange.
Stouts
(Number
of
Shares).
Bonds (Par Value).
Foreign
Foreign
Domestic. government. Corporate.
45,045 $1,291,000
77,135 2,407,000
94,840 2,318,000
154,155 2,530,000
155,250 2,449,000
142,040 2,855.000
$78,000
77,000
212,000
46,000
88,000
60,000
669,365 813,850,000
8541.000
Week Ended Nov. 4.
Total.
890,000 $1,459,000
184,000 2,648,000
106,000 2,636,000
73,000 2.649,000
109,000 2,626,000
145,000 3,060,000
5687.000 815.078.000
Jan. 1 to Nov. 4.
1932.
1931.
1,283,926
889,365
Stocks-No,of shares_
Bonds.
513,850,000 814,204,000
Domestic
1,071,000
541,000
Foreign Government
740.000
687,000
Foreign Corporate
49,746,688
95,810,692
8736,385,100
27,327,000
52,427,000
8782.458,000
26,753,000
34,769,000
$15,078,000 $16.015,000
5816.119,100
8843,980,000
Total
1932.
1931.
ENGLISH FINANCIAL MARKET-PER CABLE.
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows the past week:
Wed.,
Tues.,
Aron.,
Nov. 2.
Nov. 1.
Oct. 31.
Oct. 29.
1-16d.
18
13-16d.
18
18hd.
Silver per oz__d 183441.
Gold, p.fine oz.1258. 2d. 125s. 5d. 125$. 5346.124s. 3d.
78h
Holiday
7734
Consols, 234°4_ ____
Holiday 1003i
99%
British 5%99%
Holiday
96%
British 4M%__
French Rentes
(in Paris)79.90
Holiday
Holiday
French War L'n
(in Paris)Holiday 118.80
Holiday
5% 1920 amort.____
Frt.,
Thurs.,
Nov. 4.
Nov. 3.
183-16d.
1834d.
125s. 4d. 125s. 634d.
76h
7734
99%
99%
99%
993i
80.60
80.20
119.30
119.18
The price of silver in New York on the same days has been:
Silver in N. Y..
per on. (c(s.) 27
26%
27
27%
27
27
THE BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
April 29 1932 after having been closed by Government decree
since Sept. 18 1931. Prices suffered heavy declines. Closing
prices of representative stocks as received by cable each day
of the past week have been as follows:
Oct.
29.
Oct.
31.
129
Relchsbank (12%)
90
Berliner Handels-Gesellschaft (4%)
53
Commerz-und Privat-Bank A. G
75
Deutsche Bank und Disconto-Geselischaft
62
Dresdner Bank
89
Deutsche Reichabahn (Ger. Rys.) pf. (7%)_
33
Aligemeine Elektriritaets-Ges. (A.E.G.)
115
Berliner Kraft U. Licht (10%)
Holl- 90
Deesauer Gas (7%)
71
day
Gesfuerel (4%)
98
Hamburg. Elektr.-Werke (834%)
118
Siemens & Haiske (9%)
97
I. G. Farbenindustrie (7%)
166
Salsdetfurth (9%)
166
Rbeinische Braunkohle (10%)
74
Deutsche Erdoel (4%)
52
Mannesmann Roehren
17
Hapag
18
Norddeutscher Lloyd
Nov. Nov. Nov.
3.
2.
1.
Per Cent of Par
125
126
128
89
90
90
53
53
53
75
75
75
62
62
62
88
88
89
32
33
33
112
113
114
88
88
91
68
66
69
96
97
97
114
115
116
94
95
95
160
163
165
159
____ 161
70
71
72
50
49
50
16
16
18
16
16
17
Nov.
4.
126
89
53
75
62
88
32
112
88
66
97
116
95
180
161
71
51
16
17
. In the following we also give New York quotations for
German and other foreign unlisted dollar bonds as of
November 4 1932.
BidAsk
44
41
Koholyt 634s. 1943
57
Land M Ilk, Warsaw 88,'41 53
Leipzig Oland P1 6348,'46 51 12 5412
Leipzig Trade Fair 75, 1953 3612 3712
Luneberg Power. Light &
44
41
Water 70)1, 1948
52
49
Mannheim & Palat 78. 1941
51
48
Munich 78 to 1945
39
M unit)Bk Hessen. 78 to'45 34
Municipal Gas & Elec Corp
45
Recklinghausen, 76. 1947 42
57
Nassau Landbank 634s.'38 55
Nat Central Savings Bk of
40
137
Hungary 732s. 1962_ _ _
National Hungarian & Ind.
2712
126
Mtge.7%,1948
25
15
Nicaragua, 5%, 1953
48
Oberpfalz Elee 7%, 1946.. 45
- - - - Oldenburg-Free State 7%
37
33
9
to 1945
4312
Pomerania Elect 6%, 1953. 42
9
Porto Alegre 7%. 198817
21 Protestant Church (Ger
40
87
35
many) is. 1946
59
38 Prov Bk Westphalia fts. '33 55
39 Rhine Westpb Elec 75. 1936 6512 5512
5912
4414 Horn Cath Church 6145.'46 58
41
R C Church Welfare 78.'48 38
3612
78
106 Baarbrueeken M Bk 6s,'47 64
16
106 Salvador
114
1957
31 Santa Catharina (Brazil)
57
16
8%. 1947
-11Santander(Colom) 78, 1948 111
10
4312 Sao Paulo (Brazil) 6s. 1947 18
69
72 Saxon Public W orks 5% '32 ,f135
56
1.512 Saxon State Mtge 13s. 1947. 52
320
Siem & Halske deb f3e. 2930 310
47
3812 South Amer Ryo 6%, 1033_
45
50
47
51 Stettin Pub Util 7e. 1946_
15
12
30 Tucuman City is, 1951-7212
Vamma Water 5Ms. 195785
22 Yesten Flee By 7s. 1947-- 32
45
7712 Wurtenbersr 78 to 1945_._. 41
Bid
Ask
41
37
Anhalt 7s to 1948
Argentine 5%, 1945, 810060
56
pieces
25
22
Antioquia 5%. 1946
25
Bank of Colombia, 7%,'47 22
25
Bank of Colombia. 7%.'48 22
46
48
Bavaria 6 Ms to 1945
Bavarian Palatinate Cons.
41
36
Cit. 7% to 1945
18
Bogota (Colombia)6h.'47 115
_
1412
Bolivia 6%. 1940
Brandenburg Eke.88. 1953 5254 1312
33
Brazil Funding 5%.'31-51 31
British Hungarian Bank
31
/28
7125. 1962
Brown Coal Ind. Corp.
56
54
6)4s, 1953
Cali (Colombia) 7%,1947_
Callao (Peru) 731%. 1944.
Ceara(Wuxi') 14%. 1947..
City Savings Bank. Budapest. 7g. 1953
Dortmund Mun. Utill3s,'48
Duisberg 7%to 1945
Dusseldorf 78 to 1945
East Prussian Pr. Cs, 1953.
European Mortgage & Investment 7 Ms. 1966....
French Govt. 51-45, 1937..
French Nat. Mail SR.6s.'52
Frankfurt 78 to 1945
German A U. Cable is, 1945
German Building & Land
bank 63411%. 1948
3 6346-ii;;40
1e
119n
tib-Am L1
Hara
Hanover Harz Water Wks.
16
.17
1212
125
32
33
35
4214
13512
104
105
34
54
4012
67
5212
8512
& Real Imp 78.'48 49
Hotng
6ulI 1957
Hungarian Cent Mut 78.'37 125
Hungarian Discount & Exf19
change Bank 724, 1963
Hungarian hal Bk 734s.'32 17312
fFLA Price.
3114
Financial Chronicle
PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
aeceived by cable each day of the past week have been
as follows:
Oct. 29 Oct.31 Nov. 1 Nov. 2
1932. 1932. 1932. 1932.
Francs. Francs. Francs. Francs.
Bank of F-ance
10,940
Banque de Paris et Pays Bas---1,351
Banque d'Union ParLsienne____
360
Canadian Pacific
Canal de Suez
15,120
Cle Distr d'Electricite
1,955
Cl,Generale d'Electricite
1,885
Cl, Generale Transatlantique_
(SO
Citroen 13
415
Comptolr Nationale d'Escompte
1,100
Coty Inc
194
Courrieres.
350
Credit Commercial de France
639
Credit Fonder de France
4,530
Credit Lyonnais
1,882
Distribution d'Electricite Is Pox
2,000
Eaux Lyonnais
2,150
Energie Electrique du Nord
616
Energie Electrique du Littoral 926
French Line
62
Galeries Lafayette
80
Gas Le Bon
720
Kuhlmann
HOLI- HOLI- HOLT445
L'Air Liquids
DAY
DAY
720
DAY
Mines de Courrieree
350
Mines des Lens
460
Nord Ry
1,420
Orleans Ry
965
Paris, France
1,080
Pathe Capital
99
1,016
Pechiney
Haute,3%
80.50
Rentes 5% 1920
119.90
Rentes 4% 1917
93.20
Rentes 5% 1915
98.50
Rentes 6% 1920
Royal Dutch
1,430
Saint Cobain 0.&0
1,415
Schneider dr Cle
1,099
Societe Andre Citroen
430
Societe Francalse Ford
100
Societe Generale Fondere
175
Societe LyonnaLse
2,055
Societe 11Iarseillaise
610
Suez
15,600
Tubize Artificial Silk, Egef
142
Union d'Electricite
757
Union des Mines
--__
Wagon-Lits
68
Nov. 3
1932.
Francs.
11,200
1,390
373
340
15,415
2,005
1,950
61
417
Nov. 4
1932.
Francs.
11,100
1,37
-566
1,910
--
1,110
1:590
180
190
359
649
4,540 :
4 520
1,910
1,920
1,980
2,010
2,100 2,090
625
945
___ _
60
60
88
89
720
703
460
460
730
720
350
360
460
450
1,430
1,420
965
1,080
1,070
100
1,060
1,020
80.60 80.20
119.30 119.80
93.10 93.10
97.00 97.10
1,420
1,410
1,462
1,115
430
420
101
99
178
178
2,120
607
15,400 15:555
141
760
780
200
200
72
Treasury Money Holdings.
following
The
compilation, made up from the daily Government statements, shows the money holdings of the Treasury at the beginning of business on the first of July, August,
September and October 1932:
Holdings tn U. S. Treasury July
1 1932. Aug. 1 1932. Sept. 1 1932. Oct. 1 1932.
Net gold coin and bullion
Net silver coin and hellion
Net United States notes__
Net National bank notes_
Net Federal Reserve notes
Net Fedi Res. bank notes
Net subsidiary sliver
Minor coin,&e
$
231.654.393
80,822,057
2,279.980
16,578,917
1,414.160
28,298
8,491.138
5,745,385
$
253.119.828
30,490.334
2.518.181
14,663,080
5,836,235
45,225
10,033,973
5,847,689
$
252,589,296
29.872,495
2,014,443
14,707,448
5.840,845
71,121
10,078.936
5.981,310
Total cash In Treasury_
Less gold reserve fund
297,012.308
156,039,088
322,553,245
156,039.088
321,155.894 *328,904,753
156.039,088 156,039,088
Cash balance in Treatey 140,973.220
Dep.in spec'l depositories,
aceount Treas'y bonds.
Treasury notes and eer
tlficates of Indebtedness 405,848,000
Dep. in Fed.]Res. bank
28.702,209
Dep. In National BanksTo credit Treas.. U. 9._
7,773,136
To credit dleb. °films.
18,324,625
Cash in Philippine Islands
820,276
Deposits In foreicm depth_
1,546,294
Dep.In Fedil Land banks_
166.514.157
165.116,808
172,865,665
44,792,000
80,054.703
242,794,000
63,408,982
7.469,823
17,458,216
926.853
762.981,000
55,512,223
7,636.478
17,920,794
880,372
1,449,164
1,588,368
$
257,122,351
28,930,939
2,726,989
17,193,335
5,802,600
3,455
10,091,763
6,133,321
7,529,709
18.886,978
1,217,099
1,294,049
Net cash In Treasury &
in banks
Deduct current liabilities-
604,087,780
188,890,582
319,247,688
174,295,805
498,763,048 1,020,286,723
160,031,798 158,167,500
Avail:alba cash hAlanna
417 107 171!
144_451_1!113
338.731.250
882.119.223
•Includes Oct. 1, 517,857,557 silver bullion and $5,032,209 minor, &c., coin
not included in statement "Stock of Money."
Olominercialand A',uscaiatteratssews
St. Louis Stock Exchange.-Record of transactions at
St. Louis Stock Exchange, Oct. 29 to Nov. 4, both inclusive, compiled from official sales lists:
Stocks-
Friday
Sales
Last Week's Range for
Sale
ofPrices.
Week.
Par. Price. Low, High. Shares.
Brown Shoe preferred_100
106 106
Common
•
31
31
Hydraulic Pressed BrickPreferred
100
5
5
International Shoe pref 100
102 102%
Common
2514 26
Johnson-S.-S. Shoe com_ *
1916 1916
65
Mayer Blanke pref.- _ _100 65
65
5
5
Mo Portland Cem com_25
6%
•
National Candy corn_
6%
6
75c.
1
Pickrel Walnut corn
Rice-Stlx Dry Goods75
100
75
lst Preferred
4
414
Common
•
So'western Bell Tel pref.' nag 11314 114
6%
614
corn.'
Fuller
Stix Baer &
5
6
Wagner Electric corn___15
•No par value.
Range Since Jan. 1.
Low.
5 102
20 24
High.
Jan
Aug 120
July 36% Mar
50
3%
10 9914
200 2014
5 12%
45 40
53
5
100
314
515 75c.
8
Apr
July 105
July 43%
July 20
June 65
Nov 15
May
9
1%
Nov
Jan
Mar
Jan
Oct
Nov
Feb
Mar
Sept
50 70
2
300
86 100
50
4%
130
4%
Mar 75
July
6
June 115
9%
July
9%
July
Mar
Sept
Mar
Jan
Feb
Nov. 5 1932
San Francisco Stock Exchange.-Record of transactions at San Francisco Stock Exchange, Oct. 29 to No. 4,
both inclusive, compiled from official sales lists:
Stocks-
Friday
Sales
Last Week's Range for
Week.
ofPrices.
Sale
Par, Price. Low. High. Shares.
Alaska Juneau
1134 1134
100
Associated Oil
134 134
200
134
Bank of California
150 150
150
10
Bond dr Share Ltd
114 134
100
Byron Jackson Co
117
234 234
Calamba Sugar
75
934 10
California Copper
164
14
16
Calif-Ore Pow 7% pref_------- 853S 8734
13
Calif Packing
914 934 1,5b0
954
Calif Water Serv prof
70
70
5
Calif West Ste Life Ins cap
38
3534 38
Caterpillar
8
2,232
734 8
Clorox Chemical
16
16
370
Coast Cos G dr E 6% Lst pf
8334 8334
10
Cons Chem Indus A
250
1434 1334 1414
Crown Zeller v t c
134
134 134 2,025
Preferred A
160
1034 1034
Preferred B
50
1034
1034 10
Eldorado Oil Works
1016 1034
105
Firemans Fund Insurance_ 41
39
260
41
First Nat Corp of Portland 1034 1034 1034
30
Golden State Ltd
414 434
255
Hawaiian C & S Ltd
30
30
30
24
Hawaiian Pineapple
334 334
470
Ilonolulu OH Ltd
914 10
435
Jantzen Knitting Mills_ __ _
2
2
2
200
Langendorf United Bak B
114 114
400
Leslie Calif Salt
974
934 934
230
LA Gas & Elea pref
92
9016 92
45
Magnavox
%
54 3,610
No Amer Oil Cons
414
434 1,120
4
Occidental Insurance
1034 1016
9
Pacific Gas
2714 2514 2714 4,418
6% 1st prof
2334 2334 2434 3,247
554% preferred
2034 2134 1.963
Pacific Lighting Corp
3734 3534 3834 2,155
6% preferred
90
90
9014
107
Pao Pub Serv non-vot corn
1
1
442
Non-voting prof
1,214
754 8
Pacific Tel
78
382
7734 74
6% preferred
280
10434 105
Paraffine Co
11
10
519
Pigin Whistle prof
500
34
34
Ry Equip dr Rlty 1st pref- ______
4% 434
15
Rainier Pulp & Paper
100
634 616
%
14
Richfield
14
966
7% preferred
250
%
44
FULA,Pow 7% pr pref.-. 9834 98
9816
59
Shell Union
614
534 634
903
Sherman Clay prior prof._ 68
88
68
91
Sierra Pan Elea 8% pref
67
67
67
5
Southern Pacific
1734 1516 2016 3,384
Stand Oil Calif
25
2334 25
3.897
Tide Water Assoc 0116% Pf
44
44
10
Transamerica
434 434 21,588
454
Union Oil Associates
Of
954 10
733
Union 011 Cool Calif
744
1034 1054 11
Union Sugar
114 134
200
Western Pipe Steel
914 934
230
934
Yellow Checker rah A ___ _ ______
2114 2 t6
337
Range Since Jan. 1.
Low.
High.
June
1634 Jan
99 May
1 June
14 June
6 June
14 Jan
65 June
434 June
55 June
30
July
416 May
1134 June
70 June
834 May
June
1
814 May
8 June
934 June
18 June
Mar
8
334 June
1814 June
334 Oct
434 May
Nov
2
May
1
634 Jan
65 May
14 Jan
216 June
514 May
1634 June
1934 June
1734 June
2134 May
6334 May
% May
5 June
5834 June
85 May
5 May
14 Sept
334 JULY
534 June
% May
pi Jan
83 June
214 Apr
Apr
40
July
54
834 June
1514 June
20
Feb
234 Jan
7
July
734 July
1
May
July
7
1 t6 Tune
Jan
162
4
Aug
334 Aug
Sept
15
% Sept
Jan
101
1834 Sept
73 Sept
3634 Oct
15
Jan
Aug
20
Jan
96
1734 Feb
234 Aug
19
Aug
Aug
19
1334 Aug
50 Sept
1534 Jan
834 Feb
Jan
36
934 Jan
Aug
14
5 Sept
Apr
2
1134 Sept
Jan
100
I% Feb
514 Aug
1314 Aug
3654 Feb
2634 Jan
2434 Jan
4634 Aug
Jan
95
334 Mar
1434 Mar
104
Mar
112
Jan
2634 Jan
134 Jan
1134 Jan
914 Jan
1
July
1
July
107
Jan
834 Sept
70
Oct
Feb
76
3734 Jan
3134 Sept
Sept
60
7 Sept
Sept
14
lag Sept
334 Sept
20
Feb
1314 Jan
8
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
CHARTERS ISSUED.
Capital.
Oct. 24-The First National Bank of Homestead,Homestead,Fla. $25,000
President, Philip Liberman; Cashier, H. E. Schaff.
Oct. 24-First National Bank in Pleasanton. Pleasanton, Tex__ 25,000
President, S. V. Houston; Cashier, W.W.Harrington,
Will Succeed The First National Bank of Pleasanton,
Pleasanton, Tex.
Oct. 26-The National Bank of Martinsville. Martinsville, Inc__
50,000
President, E. C. Shireman: Cashier, M. R. Wilson.
Oct. 28-The Union National Bank of Donors, Donora, Pa._.. 200,000
President, Ben G. Binns; Cashier, H.0. Colgan.
Will succeed the First National Bank of Donors and the
Union Trust Co. of Donors, Donora, Pa.
Auction Sales.-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
By R. L. Day & Co., Boston:
Shares. Stocks.
$ per Sh. Shares. Stocks.
$ per Mt.
20 Massachusetts Bonding & Insur10 Massachusetts Bonding & Insurance Co., par $25
1534 ance Co., par $25
17
20 Litchfield Linoplate Co., par
BondsPer Cent.
59 lot $2,000 Beacon Building Trust 5s,
$100
213 Western & Southern Associates,
Aug. 1933
$33 lot
Dar $100
$2101 $3,000 New York Life Ins. Co.
10 Salisbury Beach Pavilion Co.;
policy No. 8,791,732 (at present
200 Key Largo Associates, Inc.,
time has an approximate loan
par $10
82 lot value of $497)
$200 lot
By Barnes & Lofland, Philadelphia:
Shares.
$ per Rh Shares, Stocks.
$ per
21 Milford Trust Co., Milford, Del_270 50 Nat. City Dank, New York, par Sh
$5,000 bond dr 1st mtge. given and
$20
42
100 Irving Trust Co., New York,
executed by Samuel Kirpichnik
and Badana Kirpichnik, his wife,
par $10
2234
30 Chemical Bank & Trust Co.,
to Harry Goehns and Elizabeth
New York, par $10
Goehns, his wife, dated Aug. 23
3414
20 Manufacturers Trust CO..
1928 and recorded at Philadelphia,
New
In Mtge. BookJ. M.H.No.5,379,
York, par $20
2734
20 10-4011hs Huron Holding Corp
Page 284, &c., payable within 5
30 parts Chatham Phenix Corp. 650.
years with interest at 8% per an(ctf. of beneficial int.)
num, and secured upon all that
$7 lot
certain 3-story brick messuage or
BondsPer Cent.
1,000 U. S. Govt. 4th Liberty
tenement and lot or piece of
side
ground, situate on the east
Loan 434%, due 1933-38
10334
of 7th St., at the distance of 195
500 Bun Paper Mills, Inc.,6% 1st
ft. southward from the south side
sinking fund, due May 1 1945
of Fairmount Ave.. in the 13th
(May 1 1931 and subsequent
Ward of the City of Philadelphia,
coupons attached)
$1 lot
Riverside Trust Co., Riverside.
containing In front or breadth on
the said 7th St. 20 feet, and exN. J
11516
0 Keystone Telephone Co., $4 t.1
tending of that breadth in length
or depth eastward between
preference, no par
18
0 Arch Loan Association, pref. . .
parallel lines at right angles with
the said 7th St.96 feet 914 inches.
(with 30 shares corn, as bonus).- 35
$1,000 Delaware Valley Utilities
Being premises No. 635 N. 7th
52,800 lot Co.6% 1st lien dr Coll, tr. notes.
St., Philadelphia
June and Dec., due Dec. 11032.. 58
By A. J. Wright & Co., Buffalo:
Shale.,. Stocks,
$ Per ShiShares. Stocks.
10 International
Rustless Iron,
102enda Gold Mines, par $1
tern
par $1
250.
$ per A.
260.
Financial Chronicle
Volume 135
3115
By Adrian H. Muller & Son, New York:
Shares. Stocks.
$ Per Sh. Shares. Stocks.
$ per $h.
3,200 Stein Cosmetics Co., Inc.,
10 Citizens' Hotel Co. of Superior,
Superior, Wis., pref., par $100....$3 lot common, no Par
$900 lot
100 Federal Mining & Smelting Co.
200 Knudsen Motor Corp., pref.;
$7 lot common, par $100
20
and 200 common
500 Theodore M. Lay, Inc., pref.,
221 126-200 Corporation Securities
$10 lot par $100
$75101
of Chicago, no par
127 2-18 Middlesex Farms dr Dev.
100 Intercontinents Power Co. $7
$13 lot Co., Inc., par $100
$501ot
pref., with warrants, no par_
Interest of late James G. Oxnard
20 Ninety Grand Avenue Brooklyn
$5,000 lot Estate in $1,600 due by Adeline
Corp. common, no par
Factory Co., Ltd., with interest
100 Garsau Realty Corp. common,
$4,000 lot for money loaned
$15101
no par
BondsPer Cent.
20 Maviair Corp., common, no
$1,000 lot $247,000 1st mtge. 20-yr.534% gold
par
bonds of Public Utilities Consoli42 Whitehill Engineers Corp. com$7 lot dated Corp., series of 1948, with
mon, no par
47W.& A.Fletcher Co., par $100_$15 lot Mar. 1 1933 & sub, coupons
attached
$100,000 lot
100 Allied Tobacco Co., pref.
$500
' lot $150,000 10-yr. 6% sec. cony, gold
par $100
bonds of Public Utilities Consoli2,700 960 Fifth Avenue Corp., withdated Corp., series of 1938, with
out recourse and subject to longSept. I 1932 & sub, coupons atterm lease to be assumed by pur$200 lot tached
$15,000 lot
chaser
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Per
When
Cent. Payable.
Railroads (Steam).
Catawissa RR. Co., pref. (s-a)
Xt0 $1.13 Nov. 22
.(special gu. (qu.)__
Cleve. & Pittsb. Ry.
500. Dec. 1
Cuba RR., 6% pref. dlv. omitted.
Northern RR.of N.J.,4% guar.(au.)_
1
Dec. 1
Piedmont & Northern-Common divide nd omi tted.
Pitts. Bessemer & L. E., Prof. (s.-a.)--- $134 Dec. 1
Richmond Fredericksburg & Potomac7% guar. (s-a)
$334 Nov. 1
6% guar.
$3 Nov. 1
West Jersey & Seashore,6% spec gtd(s-a)
I% Dec. 1
Public Utilities.
American Water Works & Elec. Co.. Inc.
of Del., $6 let preferred (quar.)
$1% Jan. 2
Androscoggin Elec., pref. (quar.)
$134 Nov. 1
Associated Gas & Elec., $4 pref. dividend Passed
Baton Rouge Electric, $6 pref. (quar)
$1% Dec. 1
Cent. Ark.Pub. Serv. Corp., pref.(qu.)
134 Dec. 1
Central Mississippi Valley Electric Prop.,
6% preferred (quar.)
134 Dec. 1
Chester Water Service, $534 prof.(quar.) 111% Nov. 15
Dayton Pow. & Lt. 6% pref. (mthly)
50c. Dec. 1
Derby Gas dz Elec., 7% pref. (quar.)
134 Nov. 1
$634 preferred (guar.)
$1% Nov. 1
Eastern Shore Public Service Co., $634
preferred (guar.)
$1% Dee. 1
$6 preferred (quar.)
$1% Dec. 1
Eastern Uthities Associates, corn. (qu.)50c. Nov. 15
dEdison Elec. Ilium. Co., corn. (quar.).
750. Nov. 1
Extra
20e. Nov. 1
El Paso Elec. Co.,7% pref. A (quar.).._
134 Jan. 16
6% preferred (guar.)
1% Jan. 16
Empire & Bay State Telep.,4% aid (qu.)
1 Dec. 1
Empire Gas & Elec., 6% pref. A (guar.)
1% Dec. 1
7% preferred C (quar.)
134 Dec. 1
6% preferred D (guar.)
134 Dec. 1
Federal Light & Traction Co., pref.(qu.) $134 Dec. 1
Florida Power Corp., 7% pref. (quar.)_ _ 87340. Dec. 1
Preferred A (quar.)
$1% Dec. I
Georgia Pow. & Light Co., $6 pref.((BO $134 Nov. 15
Green Mountain Pow., $6 pref. (quer.). $1% Dec. 1
Gulf State Utilities Co.. $6 prof. (qu.)._ $1% Dec. 1
3534 preferred (quar.)
$1% Dec. 1
Ironwd & Bessemer R.& Lt. pref. (qu.) $134 Dec. 1
Keokuk Electric, 6% pref. (quar.)
134 Nov. 15
Lake Superior Dist. Pow.7% pref. (qu.)
134 Dec. 1
6% preferred (quar.)
134 Dec. 1
Lexington Water, 7% prof. (quar.)...._
134 Dec. 1
Nebraska Power Co., 7% pref. (quar.)._
134 Dec. 1
6% preferred (quar.)
1% Dec. 1
New Rochelle Water, 7% pref.(quar.)134 Dee, 1
Nova Scotia L.& P.Co., Ltd., pfd.(qu.)
134 Dec. 1
Ohio Public Service Co.,7% pt.(mthly.) 58 1-3c Dec. 1
6% preferrei (monthly)
50c. Dec. 1
5% preferred (monthly)
41 2-3e Dec. 1
Penn State Water Corp., $7 pref (quar.) $134 Dec. 1
Phila. Germantown .4 Norristown RR.
Co.(quar.)
$1% Dec. 5
Pittsburgh Suburban Water Service Co.,
$534 preferred (quar.)
Nov. 15
Pub. Serv. Co. of Colo., 7% pf. (mthly.)
Dec. 1
6% preferred (monthly)
Dec. 1
7% preferred
Dec. 1
Rochester Gas & Elec., 7% pref. Ii (qu.)_
Dee, 1
6% preferred C (quar.)
Dec. 1
6% preferred D (quar.)
Dec. 1
Savannah Elec. & Pow., class A (quar.)_
Jan. 2
Class B (quar.)
Jan, 2
Cum c (quay)
Jan. 2
Class D (quar.)
Jan. 2
Sioux City Gas & Elec. Co., pref.(qu.)
Nov. 10
Southern California Edison Co., Ltd.
7% preferred A (guar.)
134 Dee. 15
6% preferred B ((Plan)
134 Dec. 15
Nov. 15
Syracuse Lighting Co., Inc.,8% pf.(qu.) 2
1% Nov. 15
634% preferred (quar.)
134 Nov. 15
6% preferred (quar.)
Toledo Edison Co., 7% pref. (mthly.).5 8 1-30. Dec. 1
50c. Dec. 1
6% preferred (monthly)
4 1 2-30. Dec. 1
5% preferred (monthly)
Washington Ky.& El. Co. com.(qu.) _ $134 Dec. 1
3134 Dec. 1
Preferred (quar.)
Williamsport Water,$6 pref.(guar.)
- $134 Dec. 1
Winchedon Elect.& Pow. Co. (quar.)..- $2
Oct. 31
Miscellaneous.
Affiliated Products, Inc.. COM.(guar.)._ 13 1-3c Dec. 1
25e Dec. 1
American Arch Co. (guar.)
American Radiator & Standard Sanitary
$14 Dec. 1
Preferred (quar.)
10.83e Nov. 15
Associated National Shares, series A _
Austin Motors, Ltd.29.86c Nov. 7
Amer. dep, receipts for ord. reg
Sc. Nov. 20
Bandint Petroleum (mthly)
154 Dec. 15
Belding, CortIcelli, Ltd., pref.(quar.)- _ _
Birmingham mtge., 7% pref. (quar.)_ _ 8734c Oct. I
Blue Ribbon Corp., Ltd. 634% pf, (qr.) h50c. Nov. 1
Jan. 2
$I
Borg-Warner Corp., pref. (quar.)
10c. Dec. 1
Brach (C. J.) & Sons, corn.(quar.)
75c. Dec. 1
Brown Shoe Co., corn. (guar.)
10e. Dec. 5
Burroughs Adding Mach. Co.(guar.)_ _ _
$I
Nov. 15
Cabot Mfg.(guar.)
Books Closed
Days Inclusive.
Holders of me. Nov. 11
Holders of rec. Nov. 11
Holders of rec. Nov. 19
Holders of rec. Nov. 15
Holders of rec. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Nov. 15
Holders of rec. Dec. 9
Holders of rec. Oct. 28
Holders of rec. Nov. 15
Holders of rec. Nov. 15a
Holders of rec. Nov. 15
Holders of rec. Nov. 5
Holders of rec. Nov. 19
Hodiers of rec. Oct. 20
Holders of rec. Oct. 20
Holders of rec. Nov. 10
Holders of rec. Nov. 10
Holders of rm. Oct. 28
Holders of roe. Oct. 28
Holders of rec. Oct. 28
Holders of rec. Dec. 30
Holders of rec. Dec. 30
Holders of roe. Nov. 20
Holders of rec. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Oct. 31
Holders of roe. Nov. 15a
Holders of me. Nov. 10
Holders of rec. Nov. 10
Holders of rec. Nov. 2
Holders of rec. Nov. 15
Holders of rec. Dec. 15
Holders of me. Dec. 15
Holders of rec. Nov. 15
Holders of rec. Nov. 10
Holders of rec. Nov. 15
Holders of roe. Nov. 15
Holders of rec. Nov. 21
Holders of rec. Nov. 14
Holders of rec. Nov. 14
Holders of rec. Nov. 21
Holders of rec. Nov. 15
Holders of rec. Nov. 15
Holders of rec. Nov. 15
Holders of rec. Nov. 15
Holders of rec. Nov. 21
Holders of rec. Nov. 19
Holders of rm. Nov. 5
Holders ca rec. Nov. 15
Holders of rec. Nov. 15
Holders of rm. Nov. 15
Holders of rec. Oct. 28
Holders of rm. Oct. 28
Holders of rec. Oct. 28
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Concluded).
Canada Bread Co., Ltd.,7% pref. B-I)iv. act ion dote rred.
25e, Nov. 15 Holders of rec. Nov. 1
Canadian Oil Co., Ltd., corn.(quar.)_
$2 Jan. 2 Holders of rec. Dec. 20
Preferred (quar.)
Canadian Wineries, Ltd.-Com. div. p assed.
Nov. 10 Holders of rec. Oct. 31
Chase (A. W., Ltd.,6% pref. (quar.).. $1
25c. Dec. 31 Holders of rec. Dec. 1
Chrysler Corp., corn. (quar.)
City Ice & Fuel, corn. (quar.)
500. Nov. 30 Holders of rec. Nov. 15
$1% Dec. I Holders of rec. Nov. 15
Preferred (guar.)
10c. Dec. 1 Holders of rec. Nov. 15
Cleveland Quarries, corn.(quar.)
Consolidated Diversified Standard See.,
250. Dec. 1 Holders of rec. Nov. 1
1st pref. (initial)
CosmosImperial Millz, 7% pref.(quar.). 8734e. Nov. 15 Holders of rec. Oct. 3
68c. Dec. 15 Holders of rec. Nov.30
Crown Cork & Seal Co., Inc., pf.(qu.;..
10c. Nov. 30 Holders of rec. Nov. 19
Crum az Foster Ins., A & B (quar.)
134 Nov. 30 Holders of rec. Nov. 19
7% preferred (quar.)
Cumberl'd Pipe Line Co.,Inc.(liquidat'n) $234 Dec. 15 Nov. 30 to Dec. 20
50c. Dec. 1 Holders of roe. Nov. 15
Cushman's Sons, Inc., corn. (quar.)_ - _ _
$2 Dec. 1 Holders of rec. Nov. 15
$8 preferred (quar.)
7% preferred (guar.)
134 Dec. 1 Holders of rem Nov. 15
5134 Nov. 1 Holders of rec. Oct. 26
Diamond Ice & Coal(guar.)
Drug, Inc., corn.(guar.)
$1 Dec. 1 Holders of rec. Nov. 15a
40e. Nov. 15 Holders of rec. Oct. 31
Employers Reinsurance Corp. (quar.)
Financial Institution, $6 pref.(guar.) _ 5134 Nov. 1 Holders of rec. Oct. 20
Firestone Tire & Rubber, pref. (quar.)_ 5134 Dec. 1 Holders of rec. Nov. 15
$1.20 Nov. 18 Holders of rec. Nov. 11
First Chrold Corp
Fitz Simone & Connell Dredge & Dock
25e. Dec. 1 Holders of rec. Nov. 19
Co.(quar.)
Gardner Royalties Co., Ltd., class A.... 1234e. Nov. 1 Holders of roe. Oct. 20
25e. Dec. 12 Holders of rec. Nov. 11
General Motors Corp., corn.(guar.).
$134 Feb. 1 Holders of rec. Jan. 9
$5 preferred (quar.)
Grand Rapids Varnish Corp. (guar.)._ 734c. Dec. 31 Holders of rec. Dec. 20
Great Atlantic & Pacific Tea Co. of
America (Md.)
$1% Dec. 1 Holders of rec. Nov. 4
Common non-vt.
25e. Dec. 1 Holders of rec. Nov. 4
Extra
134 Dec. 1 Holders of rec. Nov. 11
7% preferred (guar.)
25e. Nov. 15 Holders of rec. Oct. 31
Hamilton Finance, Inc.(quar.)
200 Nov. 15 Holders of rec. Oct. 31
Hamilton Loan Soc., Inc.8% pf. (qr.)
7%c Nov. 15 Holders of rec. Oct. 31
Extra
10c Dec. 1 Holders of rec. Nov. 15
Hancock Oil of Cal.(Del.), cl. A & B (qr.)
75c Nov. 25 Holders of rec. Nov. 19
Homestake Mining Co.(monthly)
$134 Dec. 1 Holders of rec. Nov. 15
Hooven & Allison, pref. (quar.)
11234 Dec. 1 Holders of rec. Nov. 15
Imperial Oil Co., Ltd. Blum.,
134 Dec. 1 Holders of rec. Nov. 25
Jantzen Knitting Mills, 7% pref.(quar.)
134 Jan. 2 Holders of rec. Dm. 20
Kroger Grocery & Baking,6% Pref.(qr.)
134 Feb. 1 Holders of rec. Jan. 20
7% preferred (guar.)
Lindsay(C. W.)& Co., Ltd., pref.(qu.)_ Si;' Dec. 1 Holders of rm. Nov. 15
20c. Dec. 1 Holders of rec. Nov. 12
Loblaw Groceterlas class A & B (quar.)_
20e. Dee. 1 Holders of rec. Nov. 12
Class A & B (extra)
51% Dec. 1 Holders of rec. Nov. 5
Ludlow Mfg. Assoc. (quar.)
MacKinnon Steel Corp.7% 1st pf.(qu.) 134 Nov. 1 Holders of rec. Oct. 28
1M Nov. 1 Holders of rec. Oct. 25
Mallory Hat Co., pref. (quar.)
Nov. 7 Holders of rec. Nov. 5
1
Marlon Mfg. Co
25c. Dec. 1 Holders of rec. Nov. 15
May Dept. Stores, corn. (guar.)
150. Dec. 15 Holders of rec. Nov. 15
McColl Frontenac Oil (guar.)
134 Dec. 15 Holders of rec. Nov. 25
Metro Goldwyn Picts. Corp. pt.(qu.)_ _
750. Nov. 1 Holders of rec. Oct. 20
Metropolitan Storage Whse., corn. (qu.)
Jan. 1 Holders of rec. Jan. 1
$2
Moore(Wm.) Dry Goods Co.(quar.)_
Muirheads Cafeterias, Ltd., pref.-Div. passed
Nashua Gummed & Ctd.Paper Co.(qu.)
50c. Nov. 15 Holders of rec. Nov. 7
25e. Dec. 15 Holders of rec. Nov.30
Nat. Bond & Share Corp. cap.stk. (cita.)_
National Life & Accident Insurance
40e. Dec. 1 Holders of rec. Nov. 19
(Nashville, Tenn.) (quar.)
New England Grain Prod. Co
25c. Nov. 1 Holders of rec. Oct. 25
25c. Jan. 2 Holders of rec. Dec. 16
Northern Pipe Line Co., cap. stk. (qu.)
Oahu Sugar Co.. Ltd.(mthly)
5c. Nov. 15 Holders of me. Nov. 6
20c. Nov. 20 Holders of rec. Nov. 10
Onomea Sugar Co.(monthly)
le. Dec. 20 Holders of rec. Dec. 1
Petroleum Oil & Gas Co., Ltd
Pillsbury Flour Mills, Inc., corn. (guar.)
15c. Dec. 1 Holders of rec. Nov. 15
Purity Bakeries Corp. (quar.)
25c. Dec. 1 Holders of rec. Nov. 15
Rolland Paper Co., Ltd., cum. pf. (aU.) $134 Dec. 1 Holders of rec. Nov. 15
St. Louis Car Co. pref.(quar.)
$194
San Carlos Milling (mthly)
20c. Nov. 15 Holders of rec. Nov. 7
Second Investors Corp.(R. I.)75c. Dec. 1 Holders of rec. Nov. 11
6% pref. (quar.)
Siscoe Gold Mines. Ltd
3c Dec. 15 Holders of rec. Nov. 30
10c Dec. 15 Holders of rec. Nov. 180
Socony-Vacuum Corp., cap. stk.(qu.)-Stand. Coosa Thatcher Co.7% pt. (qu.)_
134 Jan. 15 Holders of rec. Jan. 15
Standard Oil Co. of Calif.(quar.)
50c Dec. 15 Holders of rec. Nov.15
Standard Oil of Ind.(guar.)
25c Dec. 15 Holders of rec. Nov. 15
Standard 011 Co. of Nebraska (quar.)_ _ _
25c Dm. 20 Holders of rec. Nov. 26
Standard Oil Co., Inc., N.J.Capital($25 par)(quar.)
25c Dec. 15 Holders of rec. Nov. 15
Capital stock ($25 Par)(extra)
25c Dec. 15 Holders of rec. Nov. 15
Dec. 15 Holders of rec. Nov. 15
Capital stock MOO Par)(Muir.)
$1
Dec. 15 Holders of rec. Nov. 15
Capital stock MOO par)(extra)
$1
Stromberg-Carlson Telep. Mfg., pf.(qu.) 1% Dec. 1 Holders of rec. Nov. 21
Superior Portl. Cem. Co. co. A(mthlY.)- 27)40. Dec. 1 Holders of rec. Nov.23
Timken Detroit Axle Co., pref.(quar.)_ _ $134 Dee. 1 Holders of rec. Nov. 19
Trunz Pork Stores, Inc., corn.(quar.)_ _ _
25e Nov. 10 Holders of rm. Nov. 3
Trustee Standard Utility Shares
.1380 Nov. 1
Underwriters Finance Co., Inc.-7% pr et. div . passed .
35c. Dee. 1 Holders of roe. Nov. 15
Union Tank Car Co., cap.stock (quar.)_
United Aircraft AZ Transport, (guar.).- 75e. Jan. 1 Holde s of ec. Dec. 10
United Milk Crate Corp., class A (guar.)
50e. Dec. 1 Holde s of ec. Nov. 11
Utica & Mohawk Cotton Mills, com.(qu) 50e. Nov. 15 Holders of rec. Nov. 7
Want & Bond. Inc. Cl. A (quar.)
50c. Dec. 1 Holders of rec. Nov. 15
Nov. 15 Holders of rec. Nov. 15
Watab Paper Co.. pref. (quar.)
$2
Whitman (Wm.) Co., Inc., pref. (qu.). h1M Dec. 15 Holders of rec. Dec. 1
WorcesterSalt Co., pref
$1% Nov. 15 Holders of me. Nov. 4
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
When
payabis.
Books Cloud,
Days inciatise.
Holders of rec. Oct. 31
Name of Company
Holders of rec. Nov.20
Holders of rec. Nov. 20
Holders of rec. Oct. 31
Holders of rm. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Nov. 15
Holders of rec. Nov. 15
Holders of rec. Nov. 15
Holders of rm. Nov. 18
Holders of rec. Nov. 18
Holders of rec. Nov.21
Holders of rec. Oct. 20
Railroads (Steens)
stanza& & Savannah RR Ws)
Extra
.
Chesapeake &
(Thin Hy
. Piet. 01.-a.
Delaware & Hudson Co.(quar:)
Hudson & Manhattan, corn., (s.-a.)__
Norfolk dz Western Ry.,corn.(quar.)_
Adj. preferred (guar.)
Ontario & Quebec (s.-a.)
Semi-annual
Pitts. Bess.& Lake Erie, pref. (s.-a.)
piusbg Ft. NV ayne & Chic.. corn.(qu.)
Preferred(guar.)
Reading Co.. common (quar.)
1st preferred (quar.)
United New Jersey RR.& Canal Co.(qu)
314 Jan 5
250 Jan. 5
334 Jan. 1
$1% Dec. 20
$134 Dec. 1
$2
Dec. 19
$I
Nov. 19
$S
Dec. 1
2% Dec. 1
$134 Dec. I
134 Jan. 2
134 Jan. 2
250. Nov. 10
50c. Dec. 8
$2% Jan. 10
Holders of ree. Dee. /I
Holders of rec. Nov. 26
Holders of rec. Nov. 15a
Holders of rec. Nov. 30
Holders of roe. Oct. 31
Holders of rec. Nov. 1
Holders of rec. Nov. 1
Holders of rm. Nov. 15
Holders of rec. Dec. 10
Holders of rec. Dec .10
Holders of rec. mt. 13
Holders of rec. Nov. 17
Holders of rec. Dee. 20
Public Utilities.
Allentown Bethlehem Gas,7% pf.(qu.).
Brooklyn Edison Co. (quar.)
Brooklyn Union Gas Co.(qWI%)
California Water Service 6% prof.
Hydro-Electric 8% 1st isf(clu.)Candi •(qu.)
Cedar Rapids Mtg. & Power (quar.).__
Central Vermont Pub. Serv., pref.(qu.)_
Cleveland Elec. Illum.Co. pref.(quar.)Columbia Gas & Elec.Corp.,corn.(qu.)6% series A preferred ((war.)
5% series No. 14 pref.(guar.)
5% cony. preferred (quar.)
8734c. Nov. 10
$2
Dec. 1
$1h Jan. 3
134 Nov. 15
1134 dDec. I
750. Nov. 15
$134 Nov. 15
$134 Dec. 1
J 25e. Nov. 15
134 Nov. 15
Nov. 15
Nov. 15
Holders of rec. Oct. 31
Holders of rec. Nov. 9
Holders of rec. Dec. 1
Holders of rec. Oct. 31
Holders of rec. Nov. 1
Holders of rec. Oct. 81
Holders of rec. Oct. 31
Holders of rec. Nov.15
Holders of roe. OR. 20
Holders of rec. Oct. 20
Holders of rec. Oct. Mt
Holders of rec. Oct. 20
Holders of rec. Nov. 18
Holders of rec. Nov. 18
Holders of rec. Nov. 15
Holders of rec. Sept. 30
Holders of rec. Oct. 31
Holders of rec. Nov. 30
Holders of rec. Sept. 25
Holders of rec. Oct. 28
Holders of rec. Dec. 15
Holders of rec. Nov. 10
Holders of me. Nov. 21
Holders of rec. Nov. 10
Holders of rec. Nov. 3
Cent
Financial Chronicle
3116
Name of Company.
When
Per
Cent. Payable.
*Books Closed.
Days Inclusive.
Public Utilities (Concluded).
Commonwealth Utilities. pref. C (Qua_ $154 Deo. 1
Concord Gas Co. pref. (guar.)
$1 Ol Nov. 15
Connecticut Lt.dr Pow.,5H% pf.(qu.)1H Dec. 1
83O% preferred (guar.)
1H Dec. 1
Connecticut By. & Lighting Co.
Common and preferred (guar.)
1.1214 Nov. 15
Dec. 15
Consolidated Gas of N. Y., corn. (guar.) $1
Consumers Power Co.$5 Pref.(guar.)
$13( Jan. 3
1% Jan. 3
6% preferred (guar.)
6.6% preferred (guar.)
1.85 Jan. 3
7% preferred (guar.)
1H Jan. 3
6% preferred (monthly)
50c. Dec. 1
6% preferred (monthly)
50c. Jan. 3
6.6% preferred (monthly)
55e. Dec. 1
55c. Jan. 3
6.8% preferred (monthly)
European Electric Corp., Ltd., of Can.
Common A & B (guar.)
u74c. Nov.15
The. Dec. 1
Hackensack Water Co., corn.(s.-a.)
Havana Elec. & Utilities Co.
8% cum. lot preferred (guar.)
75e. Nov. 15
Illuminating & Power Securities Cori).Common (guar.)
75c. Nov. 10
7% preferred (quar.)
114 Nov.15
Kansas City Power di Lt. Co.
$IM Jan. 1
First pref. class B (guar.)
Kansas Pow.& Lt.Co.7% pref.(guar.). 114 Jan. 2
1)4 Jan. 1
6% preferred (guar.)
Kentucky Utll. Co. prior $3H p1.(go.)._ 8714c Nov. 19
114 Nov. 10
Lincoln Tel. & Tel.6% pref. A (guar.)
25e. Nov.10
Extra
Los Angeles Gas & El.Corp.6% Of.(qu.) 134 Nov. 15
Louisville Gas & El.. com. A & B ((mar.) 43140. Dec. 24
Luzerne Co. Gas 6: El.$7 1st pf. (qu.)._ $11i, Nov. 15
31)4 Nov. 15
$6 lot pref. (guar.)
Meadville Telco. Co. common ((Mar.).- 37He Nov. 15
Milwaukee Elec. By.& Light Co.
6% preferred (guar.)
114 Dec. 1
1,4 Dec. 1
Milwaukee Gas Light Co.7% pf.(qu.)._
Monmouth Cons. Water Co.7% pf.(qu.) 11( Nov.15
Nov.15
Montreal Lt. Ht.& Pr. Co., pref. (qu.) $2
8e. Nov. 21
Mutual Toler... Hawaii (monthly)
25c. Dec. 1
National Pow.& Lt., corn.(guar.)
65c. Dec. 1
New York Steam Corp.com.(guar.)_ _
North American Edison Co. pref.(qu.)- $134 Dec. 1
Pacific Gas & El.,6% pref.(guar.)
37Ho. Nov. 15
5% preferred (guar.)
345•1 c. Nov. 15
75e. Nov. 15
Pacific Lighting Corp.. com.(guar.)...35e. Jan. 1
Peninsular Telephone corn. (guar.)
134 Nov. 15
7% preferred (guar.)
7% preferred (guar.)
14 Feb. 15
55e. Dec. 1
Pennsylvania Power Co.$8.60 pf.(mthly)
$1.4 Dec. 1
$6 preferred (guar.)
14 Dec. 1
Phila. Suburban Water Co. pref.(gu.)
Public Service Co. of Indiana $6 pf.(qu.) $134 Nov. 15
50c. Nov.30
Public Service of N.J., 6% pf.(mthly.)Public Utilities Corp.(guar.)
$11' Nov. 10
Quebec Power Co., com.(guar.)
1380. Nov. 15
12c. Nov. 15
Shawinigan Water & Power Co.corn.(qu)
I 13c. Feb. 15
Common (quar.)
2 Nov. 15
Southern California Edison, corn. (go.).
Southern Calif. Gas Corp.$6H Pf.(qu.).
H Nov.30
Southern Canada Power Co.. Ltd.
250. Nov. 15
Common (guar.)
Nov. 15
$2
Stamford Water Co.(guar.)
Standard Power & Lt. Corp. corn.(go.).
30c. Dec. 1
Tampa Electric Co. pref. A (quar.)
$14 Nov. 15
Common (guar.)
56c. Nov. 15
Tennessee Electric Power Co.
5% preferred (guar.)
114 Jan. 2
1)4 Jan. 2
6% Preferred (guar.)
Jan. 2
7% preferred (guar.)
7.2% preferred (guar.)
$1.80 Jan. 2
6% preferred (monthly)
Dec. 1
Jan. 2
6% preferred (monthly)
6oc. Dec. 1
7.2% preferred (monthly)
60c. Jan. 2
7.2% Preferred (monthly)
United Gas Improvement Co.,com.(qU.) 30c. Dec. 31
Preferred (guar.)
$114 Dec. 31
West Penn Electric Co.,7% pref.(guar.) 114 Nov. 15
1/4 Nov.15
6% preferred Boar./
Holders of rec. Dec. 15
Holders of rec. Dec. 15
Holders of roe. Dee. 15
Holders of rec. Dec. 15
Holders of rec. Nov. 15
Holders of rec. Dec. 15
Holders of rec. Nov. 15
Holders of rec. Dec. 15
Holders of rec. Nov.30
Holders of rec. Nov.30
Holders of rec. Oct. 20
Holders of rec. Oct. 20
Fire Insurance.
50o
Amer. Re-Insurance Co. cap. stk.(quiFire Association of Phila.(new stock)--- $1
50c
Pacific Fire Insurance Co.(guar.)
12Hc
Seaboard Insurance(guar.)
35c
Security Ins. Co.(New Haven) (qual.).
Holders of reo. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Nov. 4
Holders of rec. Nov. 5
Holders of rec. Oct. 21
Nov. 15
Nov. 21
Nov. 7
Nov. 15
Nov.21
Holders of rec. Nov. 15
Holders of roe. Oct. 31
Holders of roe. Nov. 15
Holders of rec. Nov. 15
Holders of rec. Oct. 31
Holders of rec. Nov. 9
Holders of roe. Dec. 15
Holders of reo. Dec. 15
Holders of reo. Dec. 15
Holders of roe. Dec. 15
Holders of rec. Nov. 15
Holders of rec. Dec. 15
Holders of rec. Nov. 15
Holders of reo. Dec. 15
Holders of rec. Nov. 4
Holders of rec. Nov. 16
Holders of rec. Oct. 22
Holders of rec. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Dec. 14
Holders of rec. Dec. 14
Holders of rec. Dec. 14
Holders of rec. Nov. 1
Holders of rec. Oct. 31
Holders of tee. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Noy.30
Holders of rev. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Oct. 31
Holders of roe. Nov. 15
Holders of reo. Nov.25
Holders of rec. Nov. 1
Holders of rec. Oct. 31
Holders of rec. Nov. 10
Holders of rec. Nov. 12
Holders of rec. Nov. 15
Holders of rec. Nov. 15
Holders of rec. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Oct. 20
Holders of reo. Dee. 15
Holders of rec. Nov. 5
Holders of roe. Feb. 5
Holders of rec. Nov. 19
Holders of rec. Nov. 19
Holders of rec. Nov. 12a
Holders of rec. Oct. 31
Holders of rec. Nov. 1
Holders of rec. Oct. 31
Holders of roe. Oct. 21
Holders of rec. Oct. 21
Holders of rec. Jan. 21
Holders of rec. Oct. 20
Holders of roe. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Nov. 5
Holders of rec. Nov. I2a
Holders of reo. Oct. 31
Holders of rec. Oct. 31
Miscellaneous.
Dec. 1 Holders of reo. Nov. 15
Abbotts Dairies, com.(guar.)
Dec. 1 Holders of reo. Nov. 15
7% 1st preferred (guar.)
Dee. 1 Holders of reo. Nov. 15
7% 2nd preferred (guar.)
Jan. 2 Holders of rec. Dec. 15
Agnew Surpass Shoe Stores, pref. (qu.).
Dec. 31 Holders of rec. Dec. 15
Aluminum Manufactures. corn. (gu.)Dec. 31 Holders of rec. Doe. 16
Preferred (guar.)
Nov. 15 Holders of rec. Oct. 31a
American Can Co., corn.(guar.)
Dec. 1 Holders of rec. Nov. 25
American Envelope 'Jo., 7% pref.(m )
American Factors, Ltd. (monthly)
Nov. 10 Holders of rec. Oct. 31
Holders of rec. Oct. 15
American Fidelity Co. (guar.)
American Hardware Co.,common (gu.).
Jan. 1 Holders of.rec. Dec. 18
American Home Products(monthly).
Dec. 1 Holders of rec. Nov. 14a
Jan. 3 Holders of rec. Dec. 14a
(Monthly)
American Invest.. $3 pref. (guar.)
Nov.15 Holders of reo. Oct. 31
American Laundry Machine,corn., (qu.)
Dec. 1 dHolders of rec. Nov. 19
Amer. Natl. Co.(Toledo), pref. A (go.).
Jan. I Holders of rec. Doe. 20
Preferred B (quarterly)
Jan. 1 Holders of rec. Doe. 20
American News Co. common (191-mthly.)
Nov. 15 Holders of rec. Nov. 5
American Stores Co.(guar.)
Jan. 2 Holders of rec. Dec. 13
Extra
Dec. 1 Holders of rec. Nov. 12
American Tobacco Co.
Common and common B (quar.)
$134 Dec. 1 Holders of rec. Nov. 10
Archer-Daniels-Midland, com.(guar.)._
25c. Dec. 1 Holders of rec. Nov. 19
A rtloom Corp..7% preferred_
Nov. 18 Holders of rec. Nov. 1
/41
Austin Motor Co.. Ltd.. common
zw25 Nov.• 7 Holders of rec. Sept.30
Bonus
zro25 Nov. 7 Holders of rec. Sept.30
Babcock & Wilcox. Ltd.Amer. dep. receipts ord. reg.
zw4H Nov. 7 Holders of rec. Oct. 17
Bomberger(L.)& 00.6)4% cum.Pt.(qu) 134 Dec. 1 Holders of rec. Nov. 14
Beach-Nut Packing Co., corn. (guar.)._
75c. Jan. 2 Holders of rec. Dec. 12
Beacon Mfg. Co.. pref. (guar.)
El H Nov. 15 Holders of rec. Oct. 31
123,0. Dec. 1 Holders of rec. Nov.30
Beaton & Cadwell Mfg.(monthly)
(Monthly)
12Hc. Dec. 31 Holders of rec. Dec. 30
25e. Nov. 15 Holders of rec. Nov. 2
Blau, Inc. (Philadelphia), corn. (guar.).
75c. Nov. 15 Holders of rec. Nov. 2
Preferred (quar.)
25c. Nov. 15 Holders of rec. Nov. 2
Blauner's, Inc., corn. (guar.)
The. Nov. 15 Holders of rec. Nov. 2
Preferred guar.
3710. Nov.16 Holders of reo. Nov. 10
Block Bros. Tobacco, corn.(guar-)
Dec. 31 Holders of roe. Doe. 24
Preferred (guar.)
Blue Ridge Corp.6% cony. pref.(gusg.). m75c. Dec. 1 Holders of rec. Nov. 5a
50c. Nov. 15 Holders of rec. Nov. 5
Bond & Mtge. Guarantee Co.(gust.)...
50o. Dec. 1 Holders of reo. Nov. 15
Borden Co.. common (guar.)
6834c. Nov. 15 Holders of reo. Nov. 1
Bourjois. Inc.. prof. (guar.)
zw2 Nov. 22 Holders of rec. Oct. 28
British Match (interim)
12Hc Nov. 15 Holders of rec. Oct. 31
Buck Hill Falls (guar.)
75c. Dec. 15 Holders of rec. Nov. 18
Buckeye Pipe Line (guon)
Nov. 15 Holders of rec. Oct. 17
zw5
Interim
corn.,
Co..
Burmah 011
40c. Jan. 2 Holders of rec. Dec. 15
Colombo Sugar Estates, Wm.(gust.)..
350. Jan. 2 Holders of rec. Dee. 15
Preferred (guar.)
350. Jan. 2 Holders of reo. Dec. 15
California Sugar Estate 7% prof.(go.)..
50c. Nov.15 Holders of rec. Oct. 31
Canadian ConvertersCo..Ltd.,corn.(qr.)
Name o/ Company.
Nov. 5 1932
Per
When
Cent. Payable.
Books Closes
Days Inclusive.
Miscellaneous (Continued).
Canfield Oil Co., 7% preferred (qual.)
15i Dec. 31 Holders of roe. Doe. 20
Caterpillar Tractor
1234c Nov.30 Holders of rec. Nov. 15
Centrifugal Pipe (guar.)
1114). Nov. 15 Holders of rec. Nov. 5
Century Ribbon Mills, pref. (quar.).... $1/4 Dec. 1 Holders of rec. Nov. 19
Chain Belt Co., corn.(quar.)
15o. Nov. IF Holders of rec. Nov. 1
Champion Hardware Co.(guar-)
The. Nov. lb Holders of rec. Nov. 5
Chartered Investors, $5 Pref. (gust.)... $151 Dec. 1 Holders of rec. Nov. 1
Chicago Transfer dr Clearing. Pf.(gu.)
1114 Jan. 2 Holders of roe. Dec. 15
Chicago Yellow Cab Co., Inc.,com.(qu.)
25e. Dec. 1 dHolders of rec. Nov. 15
Colgate-Palmolive-Peet Co.
6% preferred (guar.)
134 Jan. 1 Holders of roe. Dee. 10
Commercial Solvents Corp., COM. 03
30c. Dec. 31 Holders of rec. Nov.21
,
44
Community State Corp.. Cl. A (gust.).. 121no. Dec. 31 Holders of rec. Dec. 27
Consolidated Cigar Corp.. pref.(guar.)- $134 Dec. 1 Holders of rec. Nov. 15
Consolidated 011, 8% pref. (guar.)
2 Nov. 15 Holders of rec. Nov. 1
Consol. Sand & Gravel, pref. (guar.)... h50c. Nov. 15 Holders of rec. Oct. 31
Continental Can Co., Inc., corn.(quar.)50e. Nov. 15 Holders of rec. Nov. la
Cord Rubber, $8 part. prof
25e. Dec. 15 Holders of rec. Nov. 15
Corno Mills. Common (guar.)
25e. Dec. 1 Holders of roe. Nov. 19
Cresson Consolidated Gold Mining
lo. Nov. 15 Holders of reo. Oct. 31
Crum .fs Forster, 8% Pref. (guar.)
$2 Dec. 31 Holders of rec. Dec. 20
Cuneo Press, Inc., pref.(guar.)
$134 Dee, 15 Holders of rec. Dec. 1
Deere Sr Co., pref., new (guar.)
10c. Dec. 1 Holders of rec. Nov. 15
Preferred, old (guar.)
50c. Dec. 1 Holders of rec. Nov. 15
Diamond Match Co.(guar.)
25c. Dec. 1 Holders of rec. Nov.15
Dictaphone Corp.. pref.(guar.)
$2
Dec. 1 Holders of rec. Nov. 18
25e. Nov. 15 Holders of rec. Nov. 1
Distributors Group,Inc., corn.(gust.)..
Doctor Pepper Co.(guar.)
30c. Deo. 1 Holders of reo. Nov. 18
Dominion Bridge, Ltd.(guar.)
We. Nov. 15 Holders of rec. Oct. 31
Dow Chemical Co., no par stock (guar.)_
50c. Nov. 15 Holders of rec. Nov. 1
151 Nov. 15 Holders of rec. Nov. 1
Preferred (guar.)
Eastern Theatres. Ltd.. COM.(gust.)..
50c. Dec. I Holders of ITC. Oct. 31
$2
Electric Ferries, 8% Pref. (guar.)
Nov. 25 Holders of rec. Oct. 25
Ever Ready Co.(Great Britain), Ltd.zw10 Nov.30 Holders of rec. Nov. 19
Org. reg
Amer. dep, rec. ord. reg
zw10 Dec. 7 Holders of rec. Nov. 18
Ewa Plantation Co.(guar.)
60e. Nov.15 Holders of reo. Nov. 5
$134 Feb 1 Holders of reo. Jan. 20
Faber, Coe & Gregg. prof.(guar.)
50e. Jan. 1 Holders of reo. Doe. 15
Faultless Rubber Co.. com. (guar-)
Food Mach. Corp., NH pref.(monthly) 500. Nov. 15 Holders of rec. Nov. 10
$1134 preferred (monthly)
$1
Doe. 15 Holders of rec. Dec. 10
50c. Dec. 1 Holders of rec. Nov. 15
Freeport Texas (guar.)
Geist(C. H.) Co., Inc.,6% pref.(go.).. 114 Deo, 1 Holders of roe. Nov.12
134 Dec. I Holders of rec. Nov.23
General Cigar Co.. prof. (guar-)
General Outdoor Adver.. prof.(qual.).. $134 Nov. 15 Holders of rec. Nov. 5
Gorham Mfg. Co.,com.(guar.)
25c. Dec. 1 Holders of rec. Nov.15
75c. Jan t'33 Holders of rec. Dec. 20
Gottfried Baking Co., Inc.. el. A (guar.)
75c. Apr. 1 Holders of rec. Mar. 20
Class A (guar.)
Class A (guar.)
750. July 1 Holders of rec. June 20
75c. Oct. 1 Holders of rec. Sept. 20
Class A (guar.)
134 Jan. 2 Holders of rec. Doe. 20
Preferred (guar.)
Grace(W. R.)& Co..6% wet. Wm
8 Doe. 29 Holders of roe. Doe. 28
Doe. 29 Holders of reo. Dec. 28
Preferred A and 11 (guar.)
75e. Dec. 1 Holders of rec. NOV. 10
Grand Union Co.$3 pref.(guar.)
25e. Nov. 15 Holders of rec. Nov. 4
Great Lakes Dredge & Dock Co.(quar.).
Hale Bros. Stores, Inc.(quar.)
15e. Dec. 1 Holders of rec. Nov. 15
Halle Bros. Co.. pref.(guar.)
$134 Oct. 31 Holders of reo. Oct. 24
134 Dec.1 Holders of reo. Nov. 15
Hardeety (R.) Mfg.,7% pref.(guar.)...
75e. Nov. 15 Holders of rec. Nov. 1
Hartford Times, Inc., part. pref.(qu.)..
El% Nov. 15 Holders of rec. Nov. 4
Hercules Powder Co.. pref. (guar.)
Nov. 15 Holders of rec. Oct. 25
Hershey Chocolate Corp., corn. (guar.). $1
$1
Nov.15 Holders of rec. Oct. 25
Convertible preferred (guar.)
2 Jan. 1 Holders of rec. Dec. 20
Hewitt Bros. Soap. preferred (guar.).10e. Nov. 25 Holders of roe. Oct. 18
Hibbard. Spencer. Bartlett & Co.(mthly)
10e. Dec. 30 Holders of rec. Oct. 23
Monthly
50e. Dec. 1 Holders of roe. Nov.15
Hires(Chas. E.)& Co.. corn. el. A (gu.).
224e Dec. 1 Holders of rec. Nov. 10
Holt(H.)& Co., A (guar.)
25c. Nov. 10 Holders of rec. Oct. 31
Honolulu Plantation Co
25e. Nov. 15 Holders of rec. Oct. 29
Hormel (Geo. A.) & Co.. corn. (guar.)._
$14 Nov. 15 Holders of rec. Oct. 29
Class A, preferred (quar.)
37
Class B, preferred (annual)
Nov. 15 Holders of rec. Oct. 29
Horn & Hardart(N. Y.) Pref.(gust.)... $14 Dec. 1 Holders of rec. Nov:12
imperial Chemical Ord.
zw24 Dec. 1
Ordinary shares
American deposit receipts ord. shares_ sta4 Dee. 8 Holders of rec. Oct. 14
Ind. Cot. Mills, Inc.(S.C.)7% pf.(qui). 14 Feb, 1 Holders of reo. Jan. 20
10o. Nov.15 Holders of roe. Oct. 21
Indiana Pipe Line Co. capital stock__
ho. Nov.15 Holders of reo. Oct. 21
Extra
25o. Deo. 1 Holders of rec. Nov. 1
Industrial de Power Sees. Co.(gust.)....
Ingersoll-Rand Co. common (guar.).- 50c. Dec. 1 Holders of rec. Nov. 7
100. Nov. 30 Holders of rms. Nov. 24
Inter-Island Steam Navigation (mthly.).
100. Dee. 31 Holders of roe. Dec. 24
Monthly
Dec. 1 Holdes of roe. Nov. 5
International Harvester Co.. pf.(quar.)_ $1
International safety Razor Co. uLA(qu) 650. Dec. 1 Holders of rec. Nov. 16
50e Doe. 1 Holders of roe. Nov. 15
International Shoe Co. pref.(monthly).
75c Jan. 2 Holders of rec. Dec. 13
Jones & Laughlin Steel pref. (quar.)_..__
15o Dec. 81 Holders of rec. Doe. 21
Kalamazoo Vegetable Parchment(guar.)
1234e, Jan, 1 Holders of reo. Doe. 20
Kemper-11)0mm Co.. corn.(guar.)
1
Doe. 1 Holders of roe. Nov. 2
Preferred (guar.)
Kendall Co.,cum, part. pref. A (guar.)._ $134 Doe. 1 Holders of reo. Nov. 100
25c Jan. 2 Holders of rec. Dec. 21
Klein (Emil D.) Co. common (guar.)...
Knudsen Creamery. class A & B (gust.). 37Ho Nov.20 Holders of roe. Oct. 81
25c Dec. 1 Holders of rec. Nov. 10
Kroger Grocery & Baking (guar.)
Lake View&StarCo.(London),interim zw 12%
62550 Dee. 31 Holders of rce. Don. 21
Landers. Frail,& Clark ((luar.)
20c Nov. 30 Holders of rec. Oct. 31
Lehigh Coal & Nov.Co.(quar.)
50c Dec. 1 Holders of rec. Nov. 15
Lehn & Fink Products Co. corn.(guar.).
Dec. I Holders of rec. Nov. 15
Liggett & Myers Tobacco Co.com.(qu.) $1
20o Dee. 1 Holders of rec. Nov.15
Link Belt Co.. corn.(guar.)
134 Jan. 2 Holders of rec. Dec. 15
634% Preferred (guar.)
87e Nov.30 Holders of roe. Nov. 30
Lock Joint Pipe Co.. corn.(monthly)..
Silo. Doe. 31 Holders of reo. Dee. 81
Common (monthly)
$2
Jan. 1 Holders of tee. Jan. 1
Preferred (guar.)
$I% Nov. 15 Holders of rec. Oct. 31
Loew's, Inc., NH pref. (guar.)
$14 Dec. I Holders of rec. Nov. 17
Lord & Taylor lot prof. (gnar.)
14 Jan. 2 Holders of roe. Dec. 22
Lunkenheimer Co., pref. (guax.)
25e. Nov. 15 Holders of rec. Nov. 5
Lynch Corp. common (guar.)
50c Nov. IS Holders of rec. Oct. 210
Macy(R.H.)& Co.. corn.(guar.)
Magnin ((.) & Co..8% !wet (guar.).- 114 Nov. 15 Holders of rec. Nov. 5
u25c. Dec. 1 Holders of rec. Nov..1
McIntyre Porcupine Mines (guar.)
14124c Dec. 1 Holders of rec. Nov. 1
Extra
25e. Nov. 15 Holders of rec. Oct. 31
Mercantile Stores Co., Inc., corn. (qu.).
134 Nov. 15 Holders of rec. Oct. 31
7% preferred (guar.)
$2
Merck Corp. prof (guar.).
Jan. 2 Holders of reo. Doe. 17
Meriand 011 Co.of Canada. Ltd.
214c Nov. 15 Holders of rec. Oct. 31
Common (initial)
18e. Nov. 15 Holders fo reo. Nov. 1
MIckelberry Food Prod. Co.,corn.(qu.).
$3
Jan. 1 Holders of rec. Dec.'20
Midland Grocery Co.6% Pf.
25c. Nov. 15 Holders of rec. Nov. 4
Minneapolis Honeywell Regulator Co..
Mc. Nov. 29 Ilolders of rec. Oct. 31a
Mohawk Mining Co. cap. stock (guar.).
$2
Nov. 29 Holders of roe. Oct. 31a
Extra
Moody'e Investors Service. pf.(go.).... 75e. Nov. 15 Holders of reo. Nov. 1
Muskogee Co.8% cum. pref. (gust.)... 134 Dec. I Holders of rec. Nov.19
Mutual Chemical of Amer.. pref.(go.).. $114 Doe. 28 Holders of reo. Dec. 16
70e. Jan. 14 Holders of rec. Dee. 16
National Biscuit Co. common (qual.)...
$1/4 Nov. 30 Holders of rec. Nov. 15
Preferred guar.,
$134 Nov. 15 Holders of reo. Oct. 29
National Casket Co.. Inc. corn. (8.-a.)
National Industrial Loan Corp.(quar.). 18 Ho Nov. 15 Holders of reo. Oct. 31
$11( Dec. 15 Holders of rec. Dec. 2
National Lead Co. pref. A (guar.)
2
Nov. 15 Holders of rec. Nov. 1
Neptune Meter. pref (guar.)
New England Grain Prod., $7 pref.(go ) $11( Jan. 2 Holders of rec. Don. 20
$1
Jan. 15 Holders of reo. Jan V83
$8 preferred A (guar-)
50e, Nov.10 Holders of rec. Oct. 20
New Jersey Zinc Co (guar.)
114 Dec. 1 Holders of tee. Nov. 18
Newberry (J. J.), pref.(guar.)
Niagara Shares Corp.(Md.)$1
Class A preferred (guar.)
Jan. 3 Holders of reo. Dee. 18
50c. Nov. 15 Holders of rec. Nov. 1
Nineteen Hundred Corp. class A (gu.)._
Northam Warren Corp., cony. pf.(go.).
750. Doe. 1 Holders of rec. Nov. 15
87)4c Jan. 1 Holders of rec. Dee. 22
Norwalk Tire Jr Rubbe:,prof.(gust.)
50e. Nov. 15 Holders of tee. Oct. 29
OwensIllinois Glass Co.. con).(guar.)._
Preferred (gust.)
$114 Jan. 1 Holders of tee. Dec. la
3117
Financial Chronicle
Volume 135
Name of Company.
Per
When
Cent. Payable.
Boots Closed.
Days Inclusive.
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ending Oct. 28:
Miscellaneous (Concluded).
50c. Nov. 10 Holders of rec. Nov. 5
Peerless Motor Car Corp
F'ender (David) Grocery, cl. A (guar.)._ 8734c. Dec. 1 Holders of rec. Nov. 19
75c. Nov. 15 Holders of rec. Nov. 5
Penman's, Ltd., common (guar.)
81 M Dec. 15
Pollock Paper & Box. pref.(guar.)
500. Nov. 15 Holders of rec. Oct. 25a
Procter & Gamble corn (guar.)
75e. Nov.15 Holders of rec. Oct. 24
Pullman. Inc. (guar.)
Dee. 1 Holders of rec. June 80
$4
Puritan Ice Co.. pref.(semi-ann.)
1M Nov. 30 Holders of roe. Nov. I
quaker Oats. 8% Preferred (guar./
25c. Dec. 1 Holders of rec. Nov. 15a
Reynolds Metals Co. cap.stock (qu.)
300. Nov. 15 Holders of rec. Nov. 1
Rich's,Inc.corn.(guar.)
IM Dec. 31 Holders of rec. Dec. 15
634% preferred (guar.)
Rio Tinto Co.Ltd.,Am.dep.rec.for pf.bear 256d Nov.22 Holders of rec. Oct. 28
INSTITUTIONS NOT IN THE CLEARING HOUSE WITH THE CLOSING
30c. Nov. 15 Holders of rec. Nov. 7
Scotten Dillon Co. (Oiler.)..._.
OF BUSINESS FOR THE WEEK ENDED FRIDAY, OCT. 28 1932.
20c. Nov. 5 Holders of rec. Oct. 30a
Second Twin Bell Syndicate (mthly.)
2M Dec. I Holders of rec. Nov. 15
Selfridge Prov. Stores
NATIONAL BANKS-AVERAGE FIGURES.
=234 Dec. 8 Holders of rec. Nov. 15
Amer.dep.rec
3734e. Nov. 15 Holders of rec. Oct. 31
Sherwin-WIlllams Co., corn. (quar.)
1M Dec. 1 Holders of rec. Nov. 15
6% preferred (guar.)
Other Cash, Res. Dep., Dep. Other
Loans,
8134 Nov. 15 Holders of rec. Nov. 1
Smith (A.0.) Corp. pref.(guar.)
Disc. and Gold. Including N. Y. and Banks and
Gross
Solvay Amer. Invest. Corp.. pref.(qu.). $134 Nov.15 Holders of rec. Oct. 15
Bank Notes Elsewhere. Trust Cot. Deposits.
Investments.
Sou.Pac.Golden Gate Co.el. A & B (qu.) 3714c Nov. 15 Holders of rec. Oct. 31
Preferred (guar.)
EI3.5 Nov. 15 Holders of rec. Oct. 31
Manhattan8
3
$
3
$
$
15c Dec. 1 Holders of rec. Nov. 15
Southern Pipe Line Co., cap. stk. (col.).
86,200 1,405,700
Grace National_ 19,847,700 3,200
881,400 71,517,200
Sparks Withington Co.. pref. (guar.)... 81M Dec. 15 Holders of rec. Dec. 8
Standard Cap & Seal Corp. corn.(qu.)
600 Nov. 15 Holders of rec. Nov. 1
BrooklynStand.Pay.& Mat'ls, Ltd., pref. (gu.).... h50c Nov. 15 Holders of rec. Oct. 31
5,719,000 5,000
67,000
Peoples Nat'l__
387,000
37.000 5,340,000
Stanley Works preferred (quar.)
3734 Nov.15 Holders of rec. Nov. 5
OM Baer di Fuller. 7% prof (Oiler.) .. 4334o.Dee. 31 Holders of rect. Dee. 15
Strawbridge & Clothier 8%serA pf.(qu.) 134 Dec. 1 Holders of rec. Nov. 15
.(guar.)
3134 Dec. 1 Holders of rec. Nov.10
Studebaker Corp. pref.
TRUST COMPANIES-AVERAGE FIGURES.
Sun Oil Co., corn. (guar.)
25c Dec. 15 Holders of rec. Nov.25
Common, extra
Dec. 15 Holders of rec. Nov.25
13
Preferred (guar.)
S13.4 Dec. 1 Holders of rec. Nov.10
Loans,
Reserve Dep. Dep. Other
Taylor & Fenn Co.(guar.)
UM Nov. 10 Holders of rec. Nov. 1
N. Y. and Banks and
Cash.
Discount dt
Gross
Telephone Invest. Corp.(monthly)
20e Jan. 1 Holders of roe. Dec. 20
Investments.
Elsewhere. Trust Cos. Deposits.
Texas Gulf Producing
244 Nov. 19 Holders of rec. Nov. 3
Thatcher Mfg. Co.. pref.(guar.)
900 Nov. 15 Holders of rec. Oct. 31
s
$
ManhattanThird Twin Bell Systems (bI-monthly)._
$
$
$
10e Nov. 5
49,325,300 *2,212,700 14,221,600 2,215,900 56,911,400
Empire
Tide Water Oil Co.. preferred (guar.)._
SIM Nov. 15 Holders of roe. Oct. 15
93,961
5,518,997
475.591
Twin Bell 011 Syndicate (monthly)
Federation
1,814,189 6,372,056
Nov. 5 Holders of rec. Oct. 31
32
17,554,200 *2,213,700 1,030,400
Fulton
UFA Film Co., common (annual)
630,200 16.682.600
4
68,421,005 5,542,460 21,371,950
Union Oil Associates(guar.)
United States
67,715,826
250. Nov. 10 Holders of rec. Oct. 17
Union 011 of California (guar.)
250. Nov. 10 Holders of rec. Oct. 17
Brooklyn.Union Storage (guar.)
62)4e. Nov. 10 Holders of roe. Nov. I
Brooklyn
93,007,000 2,339,000 26,854,000
United Biscuit common (guar.)
310.000 105,390,000
50c. Dec. 1 Holders of rec. Nov.18
24,097.801 1,657,626 6,527,389
United Engineering & Fdy.Co.com.(qu)
Kings County
25,551,864
25c. Nov. 11 Holders of roe. Nov. I
Preferred (guar.)
$IM Nov. 11 Holders of rec. Nov. 1
United Piece Dye Works. wet tquar.)._
184 Jan. 2 Holders of rec. Deo. 22
Federal
Reserve
with
*
as
Includes
follows:
amount
Empire,
8903,200;
Fulton.
U. S. Pipe & Fdy., corn.(guar.
50c Jan. 20 Holders of roe. Dec. 310
First preferred (guar.).
30e. Jan. 20 Holders of rec. Dec. 310 $2,074,500.
United States Playing Card (guar.)
250. Jan. I Holders of rec. Dec. 21
United States Steel pref. (Oiler.)
SIX Nov.29 Holders of rec. Nov. la
United Stores Corp. pref.(guar.)
8134c Dec. 15 Holders of rec. Nov. 25
Venezuelan 011 Conces., Ltd., Interim do 5
Boston Clearing House Weekly Returns.-In the folVulcan Dettnning pref.(guar.)
134 Jan. 20 Holders of roe. Jan. 6a
Wesson Oil& Snowdrift, Inc., prf.(guar.) 31
lowing we furnish a summary of all the items in the Boston
Dec. 1 Holders of rec. Nov. 15
8134 Nov.15 Holders of rec. Nov. 1
Weel Virginia Pula g,Palau prof.((M.)
Clearing House weekly statement for a series of weeks:
Western Dairy Prod., Inc., 56 Pf. A (qu $135 Dec. 1 Holders of rec. Nov. 10
Woolworth (F. W.) Co., cap. stk.(quo_
80c. Dee. 1 Holders of roe. Nov. 10
Wrigley (Wm.) Jr. Co.(monthly)
25e. Dec. 1 dHolders of rec. Nov. 19
BOSTON CLEARING HOUSE MEMBERS.
Monthly
250. Jan. 2 Holders of reo. Dec. 20
Monthly
25e. Feb. 1 Holders of rec. Jan. 20
t The New York Stock Exchange has ruled that stock will not be quoted exWeek Ended Changesfrom Week Ended Week Ended
dividend on this date and not until further notice.
Precious
Nov. 2
Oct. 26
Oct. 19
The New York Curb Exchange Association has ruled that stock will not be
1932.
Week.
1932.
1932.
quoted ex-dividend on this date and not until further notice.
S
$
S
a Transfer books not closed for this dividend.
S
Capital
79,900.000 Unchanged
79,900,000
79,900,000
Correction. e Payable in stock.
Surplus and profits
67,518,000 Unchanged
67,518,000
67,518,000
fPayable In common stock.
Payable In scrip. h On account of accumulated Loans, disc'ts & Investls_ 870,341,000 -4,732,000 875,073,000 861,479,000
dividends. .1 Payable in preferred stock.
Individual deposits
.587,172,000
+3.941,000 583,231,000 574.235,000
m Blue Ridge Corp. pays 7.Se. at the option of the holder,
162,408,000 +4,318,000 158,090,000 164,522,000
providing written notice Due to banks
Is received by Nov. 15. or 1-32nd et a share of
205,674,000 -4,616.000 210,290,000 205,298,000
common stock for each share of such Time deposits
Preference stock.
United States depoelts_ _ _
19,659,000 -1,000,000
21,818,000
20,659,000
Exchanges for Clg. House
11,768,000
8,983,000
13,158,000 +4,175,000
I Payable in Canadian funds.
Due from other banks_ _ _ 150,049,000 +11,088.000 138,961,000 148,256,000
U Payable in United States funds.
81,439,000
Res've in legal depositles
78.730,000 -2,709,000
73,473,000
•American Cities P. & L. Corp. Pay 75c. in cash or 1-32 of a share of el
8,332,000
-404,000
7,928,000
8,363,000
B stock Cash in bank
on the cony. Cl A stock.
Res. In excess In F.R.Bk.
5,197.000 -3,259,000
4,207.000
8,456,000
as Less deduction for expenses of depositary.
x Less tax.
Weekly Return of New York City Clearing House.Beginning with March 311928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
statement below in full:
STATEMENT OF MEMBERS OF THE NEW' YORK CLEARING [MUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY. OCT. 29 1932.
Clearing liouse
Members.
Bank of N. Y.& Tr. Co.
Batik of NIanhat.Tr. Co.
National City Bank__
Bk.& Tr. Co__
..)hemicsi
..
Guaranty Trust Co
Manufacturers Tr. CoCentral Hanover B k&Tr.
Corn Exch. Ilk. Tr. Co__
First National Bank
Irving Trust Co
Continental Bk.& Tr.Co
c'hose National Batik_
Fifth Avenue Bank
Bankers Trust Co
Title Guar.& Trust Co
Marine Midland Tr. Co_
Lawyers Trust Co
New York Trust Co
Com'l Nat. Ilk. & Tr.Co
Hardman N.B.& Tr.Co
Public N. B. & Tr. Co__
* Capital.
*Surplus mut Net Demand
Undivided
Deposits,
Profits.
Average.
rime
Deposits,
.4verape.
-
s
A
6,000.000
22,250,000
124,000.000
21.000.000
90.000,000
32,935,000
21.000,000
15,000,000
10,000,000
50.000,000
4,000.000
148.000,000
500.000
25,000.000
10.000,000
10,000,000
3,000,000
12,500,000
7,000,000
2.000.000
8,250,000
$
$
9,134,200
79,304,000
34,566,500
219,355.000
82,028,100 a973,724,000
45,640.900
235.318.000
180,830,200 b855,553,000
22,125.700
239.616,000
70,119,500
459.761,000
22,740,800
174,266.000
85,527.300
322.418.000
301,894,000
75,148,000
6,754,900
18,234,000
118,336,500 c1,127,161.000
41,399,000
3,608,900
77,007,600 4495.651,000
21,218.400
24.575.000
40,812,000
7,075,800
2,597,700
9.945.000
22,093,500
200,553,000
8,583,900
42,103,000
848.400
24,051,000
33,836.000
4,385,300
11,971,000
43.877.000
185,299.000
30.974.000
75.939,000
92,218.000
62,350,000
22,719,000
26,658,000
43,246.000
2.876,000
169.888.000
3.453,000
48,363,000
1,216.000
5.612.000
1,073,000
26,858,000
2,832,000
5.732.000
28,451.000
009 rilk Ann
onn Q79 Inn
001 ttnK Ann
C Oln 290 Anti
• As per official reports: National, Sept. 30 1932; State, Sept. 30 1932; trust
companies, Sept. 30 1932.
Includes deposits in foreign branches: a $199,849,000; b $48,874.000; c S56,707,000; 4 $20,233,000.
Philadelphia Banks.-Beginning with the return for the
week ended Oct. 111930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reserve System are no longer shown separately,
but are included with the rest. In addition, the companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" and "Cash in Vaults."
Beginning with the return for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserve required and whether reserves held are above or
below requirements. This practice is continued.
Week Ended
Oct. 29
1932.
Changesfrom
Precious
IVeek.
Week Ended
Od. 22
1932.
Week Ended
Oct. 15
1932.
$
S
$
$
Capital
77,011,000 Unchanged
77 011,000
77,011,000
Surplus and Pronts
200,378,000 Unchanged
200.378,000 200,378,000
Loans, dints. and invest_ 1,154,489,000
+1.864,000 1,152,625,000 1,148,902,000
Exch.for Clearing House_
13,304,000
-259,000
13.563,000
15,432,000
Due from banks
148,944,000 -8,296,000 157,240,000 156.502.000
Bank deposits
191,751,000
+4,631,000 196,382,000 197.069.000
Individual deposits
626,238,000 --5,081,000 631,299,000 629,407,000
Time deposits
270,165,000 +1,684,000 268,484,000 267,408.000
Total deposits
1.088,157,000 -8,008,000 1,098.165.000 1,093,884,000
....*.,...
,
1•1. V is
Ae.n.
on ,nn nnn
I en, nnn
nn on., nnn
nt nen nnn
Financial Chronicle
3118
Nov. 5 1932
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon,Nov. 3,and showing the condition
of the twelve Reserve banks at the close of business en Wednesday. In the first table we present the results for the System
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week last year.
The second table shows the resources and liabilities,separately for each of the twelve banks. The Federal Reserve Agents
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the returns for the
latest week appears on page 3066 being the first item in our department of "Current Events and Discussions."
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOAL OF BUSINESS NOV. 2 1932.
Nov. 2 1932. Od. 26 1932. Oa. 19 1932. Oct. 12 1932. Od.51932. Sept. 28 1932. 8.'0.211932. Sept. 14 1932. Nov. 4 1931.
$
$
$
$
RESOURCES.
Gold with Federal Reserve agents
2,207,934,000 ,204,064,000 2,211,884,000 2,198.090,000 2.181,139,000 2,166,537,000 2,144.988,000 2,130,678,000 1,592,166,000
70,545,000
54.350.000
56.560,000
48,287,000
48,538,000
47,573,000
47.610,000
43,102,000
43,746,000
Gold redemption fund with U. S. Trees...
Gold held exclusively agst. F.It. notes.. 2,251,036,000 2,247,810,000 2,259,437.000 2,245,700,000 2,229.426,000 2.215.075,000 2,199,338,000 2,187,238,000 1,662,711,000
Gold settlement fund with F. R. Board.._ 335,268,000 315,031,000 304,922,000 299,056,000 300,570.000 264,484,000 288.058.000 297,635,000 359,379,000
Goldand gold certificates held by banks. 417,343,000 429,782,000 391,246,000 387.202.000 382.532,000 399.087.000 379,297,000 347.754,000 750,656,000
3,003,647,000 2,992.623,000 2,955,605,000 2.931.958.000 2,912,528,000 2,878.646,000 2,864,691,000 2,832,627,000 2,772,746,000
196,582,000 198,809,000 196,523,000 192,073.000 196,940,000 205,907,000 202,129,000 202,180,000 160,639,000
Totalgold reserves
Reserves other than gold
Total reserves
3,200,229,000 3,191,432,000 3,152,128,000 3,124,031.000 3,109,468.000 3,084,553,000 3,066,820,000 3.034,807,000 2,933,385,000
62,410,000
79,556,000
80,562,000
83,946.000
76,681.000
80.879,000
73.476,000
85,171,000
Non-reserve cash
74,459,000
Bills discounted:
343,692,000
118,309.000
144,302,000
106.948.000
107.059.000
98,127,000
103,286,000
111,544,000
Secured by U.S. Govt. oblIgatIons---- 107,622,000
218,422,000 210,778,000 215,412,000 224,381,000 228.481,000 232.588.000 240,714.000 257.831.000 361,532,000
Other bills discounted
Total bills discounted
Bills bought In open market
U. B. Government securities:
Bonds
Treasury notes
Special Treasury certificates
Certificates and bills
326,044,000
34,053,000
322,322,000
33,695,000
313,539,000
33,583,000
327,667,000
33,278.000
333,427,000
33,286.000
339,647.000
33,804,000
359.023.000
33,652,000
401,933,000 705,224,000
33,726,000 642.033,000
420,651,000
382,874,000
420,811,000
363,881,000
420,863,000
352,086,000
420,768,000
390,578,000
421,189,000
396,295,000
421,482,000
402,868,000
421,348,000
408,355,000
420,747,000
400.796,000
316,963,000
26,951,000
1,067,258,000 1,066,257,000 1,078.050,000 1.039,550,000 1,033.834.000 1,029.335,000 1,021,843,000 1.029.384,000
383,662,000
Total U. S. Government securities
Other securities
Foreign loans on gold
1,850,783,000 1,850,949,000 1,850,999,000 1,850,898,000 1,851.318,000 1,853,683.000 1,851,546,000 1,850,927,000
4,402.000
5,911.000
4.872.000
5,437.000
5,426,000
5,425,000
5,422.000
5,425,000
727,576,000
30,194,000
Total Ails and -pecuritles
Due from foreign hanks
Federal Reserve notes of other banksUncollected items
Bank promises
All other resources
2,216,305.000 2,212,391,000 2.203.558,000 2,217,263.000 2,223,922,000 2,231.806,000 2,248,623,000 2.292,012,000 2,105,027,000
2,663.000
9,297,000
2,686,000
2,653.000
2.698.000
2,873,000
2,868,000
2,698,000
2,660,000
15,848,000
16,842,000
13,507,000
17,871.000
13,140,000
18,321,000
15,900,000
15,358,000
18,065,000
361,411,000 332.923,000 404,398,000 378,192,000 374,122.000 341,295,000 381.983,000 411,019,000 433,774,000
58.126,000
58,126.000
58,135,000
59 389,000
58,127,000
58,137,000
58,137,000
58334,000
58,127,000
44.046,000
44.846,000
45,064,000
38,012,000
43,754,000
36,824,000
38.872.000
45,251,000
50,310,000
5,963,378,000 6,940,115,000 5,965.708.000 5.914,403.000 5.903.577.000 5.862.083.000 5.879,386,000 5,947.582,0005.664.970,000
Total resources
LIABILITIES.
F. R. notes In actual circulation
Deposits:
Member banks-reserve account
Government
Foreign banks
Other deposits
2,700,818,000 2,888,871,000 2,717,430,000 2,737,843,000 2.744,868,000 2,720,988,000 2.759,137,000 2,789,123,000 2,447,069,000
2,384,097,000 2,411,946.000 2.325,546,000 2.245.791,000 2.283.965.0002,268.521.000 2,210.587.000 2,243,816,000 2,122,145,000
27.164,000
30,481,000
31,305,000
28,078.000
23.877,000, 48,405,000
68,969.000
50,058,000
18,474,000
9,888,000
9,852,000
10.280,000
9.194,000;
9.864.000
10.702,000
10,556,000 131,431,000
8.177,000
28,389,000
20,117.000
28.820,000
35,214,000
27,953,000, 26,352,000
24.830,000
53.071.000
25.764,000
2,453,679.000 2.489,993,000 2.391,810,000 2.357,097.000 2,344,989,000 2,353,142,000 2,315,088,000 2,298,610,000 2,319,271,000
355,005,000 326.987,000 391,777,000 364.264,000 360.165.000 334.900,000 353,790,000 404,987,000 439,217,000
152,105,000 152,303,000 153,018,000, 153.040,000 152.966,000 152,996,000 152,988,000 153,066,000 164,507,000
259,421,000 259,421,000 259.421,000' 259,421,000 259,421,000 259.421.000 259,421.000 259,421.000 274,636,000
42,350.000
42,540,000
42,252.0001 42,738,000
40.636.000
41,168,000
20,270,000
38,962,000
.355,000
Total deposits
Deferred availability Items..
Capital paid In
Surplus
All other liabilities
5,963,378,000 5,940,115.000 5,955,708,0005.914.403,000 5,903.677,000 5,862.083,000 5.879,388.000 5.947.562,000 5,664,970,000
Total liabilities
Ratio of gold reserve to deposits and
58.2%
F. R. note liabilities combined
57.8%
68.0%
56.7%
58.4%
57.2%
57.5%1
58.1%
55.6%
Ratio of total reserves to deposits and
62.1%
F. R. note liabilities combined
61.9%
61.7%
61.1%
60.4%
61.3%
60.8%
61.5%
59.6%
Contingent liability on bills purchased
38,847,000
for foreign correspondents
37,993,0001 41,766.000
43.486.000
45,227,0001 44,236,000
41,978,000
42,437,000 105,470,000
Maturity Distrittution of Bills and
Shod -Term Securities1-15 days bills discounted
16-30 days bills discounted
31-60 days bills discounted
81-90 days bills discounted
Over 90 days bills discounted
I
$
237,414,000
25,973,000
33,709,000
19,704,000
9,244,000
232,592,000
24,777,000
35.984.000
20,717.000
8,252.000
223,281,000
25.165.000
36,222,000
21,253,000
7.618,000
230,672,0001 231.724.000
29.498.000
28,590,000
38,989,000
36.152.000
26,144,000
25,026,000
7,072.000
7.227,000
238,003,000 241.609,000
27.998.0001 28,258,000
41,266,0001 43.906.000
27.174,000
27.555,000
7,208,000, 17,695,000
1
1
283.154,000 503,065,000
33,991,0001 45,789,000
98,030,000
46.038,000
30,151,000' 42,670.000
8.599,0001 15,670,000
Total bills discounted
1-15 days bills bought in open market
16-30 days bills bought In open market._
31-60 days bills bought in open market._
61-90 days bills bought In open market..
Over 90 days bills bought in open market
326,044,000
5,142,000
5,516,000
11,893,000
11,502,000
322,322,000
5,857,000
5.689.01)0
11,575.000
10.574,000
313,539.000
8.105.000
4.118.000
7.405.000
15.955.000
327,687,000 333,427.000
3.800.000
5,142,000;
5.357.000
9.768,000i
8,085,000
5.962.000
10,285.0001 18,063,000
84.000
339.647.000 359,023,000
2.287,000
4,806,000
1,644.000
928,000
1,792.000
1,063.000
27,871,000
26,825,000
30,000
30.000,
401,933,0001
4,622,000
1,767,000,
904.000
28.413.0001
30.000;
Total bills bought in open market
1-15 days U.S. certificates and bills
16-30 days U.S. certificates and bills
81-60 days U. S. certificates and
61-90 days U.S. certificates and bills.....
Over90 days certificates and bills
34,053,000
109,100,000
120,250,000
68,600,000
126,064,000
643,244,000
33,695,000
39.500.000
120,850.000
69,000,000
167,863.000
669,244.000
33.583.000
55.000.000
109.100,000
120,249.000
125.456,000
668,245.000
33,278,000
89,456,000
36,600.600
189,749,000
61.600,000
662,145,000
Total U. B. certificates and bills..
1-15 days municipal warrants
16-30 days municipal warrants
11-60 days municipal warrants
c1-90 days municipal warrants
Over 90 days municipal warrants
Total municipal warrants
33,804,000, 33,652,000
33,266.000
19,822.000
51.550,000
100,240.000
55,000.000 150,417,000 136.290.000
171.350.000 156.349,000 122.100,000
76.600,000
25,000,060
93,750,000
630,644.000 677.747.000 A18.153,000
33,726,0001 642,033,000
28,836,000
171.428,000
48,868,000
80,822,000
219,588,0001 106,375,000
14,024,000
136,250,000
441,318,000 185,559,000
1,067,258,000 1,068.257,000 1,078,050,000 1,039,550.000 1,033,834,000 1,029,335,060 1,021,843.000 1,029.384,000
5,176,000
4,790.000
4,669,000
5,081.000
4,832,000
4,162,000
4.442,000
3,910,000
425.000
507,000
758,000
608.000
25,000
1.276.000
10,000
1
50,000
25.000
25,000
239.000
222.000
199.000
50.000
10.000
68,000
10.000
172.000
205.000
205.000
154.000
215,000
5,425,000
•
5,425,000
5,437,000
5,422,000
5,911.000
4.872,000
4,402.000
705,224,000
122,031,000
131,387,000
290,216,000
93,941,000
4,458,000
5,426,000
383,662,000
255,000
10,000
2,250,000
166,000
23,000
2,704,000
Federal Reserve Noteslamed to F. R. Bank by P. R. Agent.... 2918,711,000e 2,931,112,000 2.957.817,000 2,968.793,000 2,980,299.000 2.972.797,000 3.007.531.000 3 031,049.000 2.760,901,000
Held by Federal Reserve Bank
217,893,000 242,241,000 240.387.000 230,950,000 235,431.000 251.809,0001 248.394,000 241,926,000 313,832,000
In actual circulation
2,700,818,000 2,888.871,000 2,717.430.000 2.737.843.000 2.744.888.000 2,720,988,000 2.759.137.000 2.789.123,0002,447,069,000
Collateral Held by Agent as Security for
Notes Issued to Bank1
1
.
By gold and gold certificates
1,071,819,000 1,057.649.000 1,088.749.000 1.059.075.000 1.059,074,000 1.030,622,000 1,034,973,000 1,032.863,0001 639,936,000
Gold fund-Federal Reserve Board
1,136,115,000 1.146,415,000 1.143.115.000 1,139,015.000 1.122.065.000 1.135.915,000 1.110.015,000 1.097,815.000 952,230,000
By eligible paper
309,485,000 306,282.000 297.701.000 311,916,000 317,494,000 323,915,000 342.628.000 384,6719,000 1,274,543,000
U.8 Government securities
439,100,000 451.200.000 464.500.000 495,000,000 516,200.000 503.800,000 532.600.000 533.300.000
Total
2,956,519,000 2,981,546,000 2.974.155.000 3.005.006.000 3.014.833.000 2,994,252.000 3,020,214,000 3,048.656.000 2,866.709.000
• if.vi,ieri isores
WEEKLY STATEMENT OP RESOURCES AND LIABILITIES OF EACH OP THE 13 FEDERAL Rgsgiwg B‘N Cs tT CLOSE Off BuSiNIESS NOV. 2 1932
Two Ciphers (00) omittea.
Federal Reterge Sank ofTotal.
ICIereekmd. Richmond Aflame. Clitta#0. St. Louts.1.111nneap.kan.C10. Dallas.
llostOn. New York.
iBan Fran.
RESOURCES.
$
$
II
3
I
I
I
$
Gold with Federal Reserve Agents 2,207,934,0 195,827,0 603,724.0 151.670,0 174,470,0 70,000,0 56,500,0 638.970.0 64.660,0 36,935,0 56,480,0 22,435,0 136,763,0
43,102,0 3,081,0
5,017,0 5,299,0 5,705.0 2,130,0 3,519,0 4,457,0 1,735,01 2,320,0 2,385,0 1,213,0, 6,241,0
Gold retro fund with U.S.Treas.
I
Gold held excl. ant. F R.. notes 2,251,036,0 198,908,0
Gold settle't fund with P.R.Fioard 335,268,0 14,140,0
Gold and gold cifs. held by banks. 417,343,0 17,785,0
Total gold reserves
Reserves other than gold
608,741,0 156.969,0180,175,0 72,130,01 60,019.0 643,427,0166,395.01 38,755.0 58,865.0 23,648,01 143,004,0
107,584,0 11,695.0: 27,642.0 7,946,0 6,080.0 92,398,0 10,147,01 12,830,0 6,922,0 7,885.01 29,990.0
284,558,0 8,154,0, 19,623,0 8,435,0 9045,0 26,137.01 5,808,0 2,205,0 10.960,0 4,151,01 20.482,0
3,003.647.0230.833,0 1,000,883,0 176,818,0 227,440,0 88,511,0 75,153,0 761,962.01 82,350,01 53,790,0 76,747,0135,684,01193,476,0
57,000,0 27,836,0, 15,406,0 8,717,0 5.326,0 29,254,0; 8,151,0 4,195,0 5,910,0 7.343,01 9,806,0
196,582,0 17,629.0
3,200.229,0 248.462,0 1,057,802,0 204,654,01242,846,0 97,228,01 80,479.0 791.216.01
Total reserves.
74,459,0 5,504,0
17,612,0 4.286,01 4,091,0 3,284,01 5,432,0 14,698,0
Non-reserve cash
Bills discounted'
33.811.0 12089,0! 11,032,0 2,940.0/ 2,415,0 5,685,0!
Bee. by U S. Govt. obligations_ 107,622,0 4,125,0
218,422,0 8,244,0
30,703,0 35,786,0, 19,114,0 16,752,0 18,521,0 12,562,0,
Other bills discounted
Total bills discounted
Bills bougbt in open market
326,044,0 12,369,0
34,053.0 2.338.0
90,501.0 57,985,0 82.657,0 43,027.01203,282,0
3,310,0 2,236,0 3,155,0 2,809,0 8,042,0
731,0 1,159,0
4,318,0
4.834.0 11,238,0 15,134,0
668,0 28,640,0
7,916.01 37,618,0
64.514,0 47,875,0, 30,146,0 19,692,0 20,936,0 18.247,0' 9,152,0 11,969,0 16,293,0
889,0
634.0
10.2740 3,211.0 3,096.0 2.195.0 3.029.0 4.122.0 1.008,0
8,584,01, 86,267,0
858.01 2,399,0
Financial Chronicle
Volume 135
Two Ciphers (00) emitted.
Boston. New York.
Total.
RESOURCES (Concluded)—
.S. Government securities:
Bonds
Treasury notes
Certificates and bills
420,651,0 20,347,0
362,874,0 20.737,0
1,067,258,0 55,643,0
Total U. S. Govt. securities
(ther securitlee
1,850,783,0 96,727,0
5,425,0
Total bills and securitles
)ue from foreign banks
'. It, notes of other banks
Incollected Items
lank premises
ill other resources
0,216,305,0 111,434,0
2,873,0
229,0
13,140,0
342,0
361,411,0 47,760,0
58,137.0 3,336,0
36,824,0
1,317,0
$
$
$
Phila.
3119
Cleveland. Richmond Atlanta. Chicago. St. Louis. Elinneap. Kan.Citit. Dallas. San Fran.
$
a
$
S
3
$
$
3
$
$
188,228,0 31,173,0 36,492,0 0,650,0 9,551,0 40,776,0 13,941,0 17,163,0 11,775,0 16,287,0 25,268,0
137,486,0 29,302,0 38,435,0 10,161,0 10,038,0 46,843,0 14,154.0 10,155,0 12,327,0 6,623,0
26,613,0
412,578,0 78,794,0 103.355,0 27,322,0 26,992,0 174,691,0 38,061,0 27,298,0 33,150,0 17,811,0 71,563,0
738,292,0 139,269,0 178,282,0 47,133,0 46,581,0 262,310,0 66,156,0 54,616,0 57,252,0 40,721,0 123,444,0
3,919,0 1,297,0
209,0
816,999,0 191,652,0 211,524,0 69.020,0 70,546,0 284,679,0 76,316,0 67,428,0 74,434,0 50,163,0 192,110,0
1,028,0
310,0
290,0
115,0
106,0
403,0
19,0
12,0
83,0
80,0
198,0
4,568,0
412,0
718,0
989,0
885,0 1,469,0
739,0
274,0 1,381,0
194,0 1,169,0
98,482,0 28,914,0 32,457,0 30,829,0 8,599,0 39,853,0 14,293,0 8,162,0 20,856,0
13,365,0 17,841,0
14,817,0 2,915,0 7,968,0 3,619.0 2,489,0 7,828.0 3,461,0 1,835,0 3,649.0 1,787,0 4,433,0
19,001,0
720,0
1,201,0 3,069,0 3,714,0 1,716,0 1,045,0 1,774.0
874,0 1,270,0 1,123,0
_ 5,963,378,0 418,384,0 2,030,399,0 433,863,0 501,095,0 203,153,0 172,250,0 1141,862,0 189,684,0 139,706,0 187,089,0
Total resources
112,695,0 428,193,0
LIABILITIES,
F. It. notes In actual circulation._ 2,700,818,0 197,286,0
583,912,0 237,355,0 272,503,0 100,929,0 99,718,0 670,752,0 101,296,0 79,005,0 89,783,0 37,924,0
230,355,0
Xeposits:
Member bank reserve account-- 2,384,097,0 137,858,0 1,174,887,0 120,721,0 144,334,0 52,781,0 42,270,0 368,540,0 54,017,0 39,754,0
63,058,0
44,981,0
140,896,0
Government
31,305,0 2,638,0
8,656.0 1,779,0 3,764,0 3,965,0 1,507.0 11,898,0 1,452,0 1,637,0 1,202,0 1,171,0 1,636,0
Foreign bank
9,888,0
787,0
2,911,0
1,066,0 1,046,0
414,0
383,0 1,387,0
362,0
228,0
300,0
290,0
714,0
28,389,0
Other deposits
45,0
16,047,0
161,0 2,210,0 2,279,0 1,171,0
939,0
307,0
271,0
294,0
42,0 4,623,0
Total deposits
2,453,679,0 141,328,0 1,202,501,0 123,727,0 151,354,0 59,439,0 45,331,0 372,132,0 56,770,0 41,890,0 64,854,0
46,484,0 147,869,0
3eferred availability Items
355,005,0 47,737,0
94,410,0 27,423,0 31,841,0 29,669,0 9,150,0 39,325,0 15,850,0 7,742,0 19,437,0 13,923,0
18,498,0
152,105.0 10,870,0
;Ronal Paid lit
59,009,0 16,106,0 14,217,0 5,169,0 4,685,0 16,271,0 4,405,0 2,913,0 4,057,0 3,898.0 10,505,0
259,421,0
20,039,0
75,077,0 26.486,0 27,640,0 11,483,0 10,449.0 38,411,0 10,025,0 6,356,0 8,124,0 7,624.0 17,707,0
;mins
42,350,0 1,124,0
ill other liabilities
15,490,0 2,766,0 3,540,0 1,464,0 2,917,0 4,971,0 1,338,0 1,800,0
834,0 2,842,0 3,264,0
-Total liabilities
5,963,378,0 418,384,0 2,030,399,0 433,863,0 501,095,0 208,153,0 172,250,0 1,141,862 189,684,0
139,706,0 187,089,0 112,695.0428,198,0
Memoranda.
teserve ratio (per cent)
62.1
73.4
59.2
56.7
57.3
60.6
55.5
48.0
75.9
57.3
53.5
51.0
53.7
3ontiugent liability on bills purchased for foreign correspondls
38,347,0 2.937,0
12,797,0 3,981,0
3,904,0 1,546,0 1,430,0 5,179,0 1,353,0
850,0 1,121,0 1,082,0 2,6670
FEDERAL RESERVE NOTE STATEMENT.
Federal Reserve Agent at—
Total.
Boston. New York. Phila. Cleveland Richmond Atlanta, Chicago.
—
Two Ciphers (00) omitted,
5
$
$
I
$
3
$
$
Federal Reserve notes:
Issued to F.11.11k. by F.R.Agt_ 2,918,711,0 218,772,0 646,786,0 249,044,0 282,982,0 107,683,0 116,751,0
698,804,0
Held by Federal Reserve Bank_ 217,893,0 21,486,0
62,874,0 11,689,0 10,470,0 6,754,0 17,033,0 28,052,0
In actual circulation
2,700,318,0 197,286,0 583,912,0 237,355,0 272,503,0 100,929,0 99,718,0 670.752,0
Collateral mid ny Age, as security
for notes issued to bank:
Gold and gold certificates
1,071,819,0 47,010,0 439,724,0 78,490,0 71,470,0 12,920,0 13,500,0 261,970,0
Gold fund—F. It. Board
1,136,115,0 148,817.0 164,000,0 73,180,0 103,000,0 57,080,0 43,000,0 377,000,0
Eligible paper
309,485,0 12,285,0
62,191,0 47,900,0 30,110,0 20,613,0 20,791,0 18,054,0
U. 8. Government securities
439,100,0 10,900.0
50,000,0 85,000,0 18,000,0 42,000,0 47,000,0
Total collateral
0 956.519 0 219 012 0
Si. Louis. Mtnneap Kan.Cily
$
$
$
Dallas. San Fran.
$
$
108,520,0 81,674,0 100,907,0 43,487,0 263,301,0
7,224,0 2,669,0 11,124,0 5.563,0 32,946.0
101,296,0 79,005,0 89,783,0 37,924,0 230,355,0
21,360,0
43,300,0
8,926,0
35,000,0
13,935,0 9,680,0 12,260,0
22,500,0 46,800,0 10,175,0
10,097,0 15,773,0 8,302,0
35,400,0 30,000.0 12,800,0
89,500,0
47,263,0
54,443.0
73,000,0
660 010 0 249 070 0 9g9 Agn flint 41130 110 201 0 704 n24 0 108 5S6 0 81.932.0 102.253.0 43.537.0 264.206.0
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board, giving the principal
items of the resources
and liabilities of the reporting member banks from which weekly returns are obtained. These figures
are always a week
behind those for the Reserve banks themselves. Definitions of the different items in
statement were given in the statement of Dec. 14 1917, published in the "Chronicle" of Dec. 29 1917, page 2523. the comment
of
The
the figures for :he latest week appears in our department of "Current Events and Discussions 'on page the Reserve Board upon
3067 immediately pre3eding which we also give the figures of New York and Chicago reporting
member banks for a week later.
Beginning with the statement of Jan. 9 1929,
the loan figures exclude "Acoeptanoes of other banks and bills of exchange or drafts
sold with endorsement, and Include
all real estate mortgages and mortgage loans held by the bank.
Previously acceptances of other banks and bills sold with endorsement were Included with loans, and some
of the banks Included mortgages In Investments. Loans secured
by U. S. Government obligations are no longer shown separately, only the total
of loans on securities
being given. Furthermore, borrowing at the Federal Reserve is not
any more subdivided to show the amount secured by U. 13. obligations and those secured by commercial
paper, only a lump total being given. The number of reporting banks
inflow omitted: In Its place the number of cities included (then 101). was for a time given, but beginning Oct.9 1929 even this has been omitted. The figures
have also been revised to exclude a bank In the San Francisco district with loans and Investments of 3135,000.000
renJan.2 1929. which had then recently merged with a non-member
bank. The figures are now given In round millions Instead of In thousands.
PRINCIPAL RESOURCES AND LIABILITIES WEEKLY REPORTING
MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS OCT. 26 1932 (In millions oi dottere).
Federal Resets., District—
Total.
Boston. New York
Phila,
Cleveland, Richmond Atlanta, Chicago, St. Louis. AItnneap. Kan.City. Dallas. San Fran.
—
3
3
$
$
$
$
3
$
2
1,936
589
505
2,258
522
309
515
392
1,739
Loans and investments—total
$
19,118
Loans—total
10,516
752
3,988
608
1.110
314
325
1,468
294
184
253
242
978
4,352
6,164
282
470
1,824
2.164
300
308
503
607
118
196
107
218
659
809
111
183
. 53
131
78
175
72
170
245
733
8,602
501
515
826
275
180
790
228
125
262
150
761
5.298
3,304
313
188
3,989
—
2,703
1,286
237
278
494
332
157
118
96
84
461
329
114
114
63
62
143
119
92
58
425
336
1,975
203
11,470
5,725
560
1,555
3,164
93
16
765
422
24
160
166
1,102
48
5,900
1,341
267
127
1,418
71
11
633
273
47
133
205
109
25
846
813
41
98
230
34
13
285
232
21
91
96
29
326
37
1,270
898
45
305
389
35
6
279
203
9
101
104
19
5
154
143
3
54
51
43
13
337
182
8
153
159
26
7
221
127
24
92
87
88
14
565
897
41
166
180
On lecuritles
Ali other
Investments—total
U. B. Government securities
Other securities
Reserve with F. R. Bank
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Brirrnvintrm frnm V
it
nanIr
$
1,253
$
7,977
$
1,123
1iva1
_
11'
8
215
194
30
75
79
-
.,
n
Condition of the Federal Reserve
of New York.
The following shows the condition of the Fed( rql Reserve Bank ofBank
New York at the close of business Nov.2 1932,in
comparison with the previous week and the correspocding date
last year:
Resoucres—
Gold with Federal Reserve Agent
Gold redemp, fund with U. IS. Treasury_
Gold held exclusively asst. F. It. notes
Gold settlement fund with F. It. Board_
Gold and gold (Ate. held by bank
Total gold reserves
other than gold
Reserves
Nov. 2 1032. Oct. 26 1032. Nov. 4 1931.
603,724,000
5,017,000
603,724,000
5,208.000
327,336,000
17,134,000
608,741,000
107,584,000
284,558,000
608,932,000
117,292.000
282.483.000
344,470,000
93,163,000
530,047,000
1,000,883,000 1,008,707,000
57,009,000
57.802,000
967,680,000
34,902,000
Total reserves
1,057,892,000 1,066,509,000 1,002,582,000
Non-reserve cash
17,612,000
21,487.000
16,869,000
Bills discounted:
Secured by U. EL Govt. obligations_
33,811,000
32,641.000
71,250,000
Other bills discounted
30,703,000
20,992,000
52,821,000
Total bills discounted
62,633,000 124,071,000
64,514,000
Buis bought In open market
10,152,000 177,005,000
10,274,000
U. S. Government securities:
Bonds
188,229,000 188.229,000 108,101,000
Treasury notes
137,485,000 137,859,000
6,639,000
Special Treasury Certificates
Certificates and bills
412,578,000 412,204,000 127,249,000
Total U. S. Government securities-- 738,292,000 738,292,000 241,989,000
other securities (see sole)
3,919,000
3,919,000
14,840,000
Foreign loans on gold
Resources (Concluded)
from foreign banks (see note)
Federal Reserve notes of other banks_
Uncollected Items
Bank premises
All other resources
Dile
Total resources
Nov. 2 1032. Oct. 26 1932. Nov. 4 1931.
$
5
1.028,
3,753,000
1,156,000
4,568,000
6,368,000
6,785,000
98,482,000
88,360,000 120,735,000
14,817,000
15,240,000
14,817,000
15,586,000
20,706,000
19,001.000
2,030,399,000 2,034,816,000 1,739,038,000
Ltedlities—
Fed. Reserve notes In actual clroulation_ 583,912,000 570,719.000
Deposits—Member bank reserve fusel-- 1,174,887,000 1,214,190,000
Government
8,656,000
4,831,000
Foreign bank (see note)
2,911,000
4,287,000
Other deposits
16,047,000
6,686,000
497,570,000
910,541.000
4,964,000
30,855,000
16,485,000
Total deposits
Deferred availability Items
Capital paid In
Surplus
All other liabilities
962,845,000
127,189,000
64,201,000
80.575,000
6,658,000
Total liabilities
1,202,501,000 1,229,994,000
94,410,000
84,687.000
59,009,000
59,006,000
75,077,000
75,077.000
15.490,000
15,333.000
2,030.399,000 2,034.816,000 1,739,038,000
Ratio of total reserves to deposit and
Fed. Reserve note liabilities combine&
68.7%
59.2%
59.2%
Contingent
liability on bills purchased
securities
and
Mlle
(see
Total
note)___ 816,999,000 814,996.000 557.905.000
for foreign oorrespondents
38.818.000
12.553.000
12.797.00(1
NOTE.—Beginning with the statement of Oct. 17 1925. two new items were
added In order to show separately the amount or balances Oslo spread
foreign correspondents. In addition, the caption "All other earnings assets," Previously
arm amounts due to
made up of Federal Intermediate Credit Bank debentures, was changed to "Other
wourities." and the caption. "Total earnings assets" to "Total bills and
securities."
. pertness and securities acquired under the provismos of section 13 and 14 of the The latter term was adopted as a more accurate description of the total of the discount
Federal Reserve Act, wialeh it was stated are the only Items Included therein.
Nov. 5 1932
Financial Chronicle
3120
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Railroad and Miscellaneous Stocks.—The review of the
Stock Market is given this week on page 3108.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow:
Sales
for
Week.
STOCKS.
Week Ending Nov. 4.
Range Since Jan. 1.
Range for Week.
Lowest.
Highest.
Lowest.
Highest.
per share.8 per share.
per share.
Par. Shares. $ per share.
Railroads—
Nov
Nov 29
10 29 Nov 3 29 Nov 3 29
Beech Creek RR - -__50
Mar 18 Sept
4
Nov
5
10
4
Nov
9
400
Colo & Sou 2d pref-100
%
134
Apr
Aug
2
Nov
%
900
34 Nov 2
Duluth SB & A pref 100
100 21% Nov 2 21% Nov 2 934 July 38 Sept
100
Ill Cent pref
40
Sept
80
1
July
Nov
57
31
Oct
49
50
50
Morris & Essex
31 May 34 Sept
100
34 Oct 31
34 Oct 31
Nat Ry Mex 1st pt 100
Apr
July 125
10100 Nov 2 100 Nov 2 100
NY & Harlem pref 50
Jan
3
2
Jun
%
Nov
234
100 2% Nov 2
100
Wabash pref B
Indus. & Misc.—
Amer Home Prod Rta-Am Mach & Meta ens.*
Asso Dry Gds 1st P1100
Austin Nichols pr A..*
Barker Bros pref_ _.100
100
Brown Shoe pref
Burns Bros Cl A ctfs__*
7,600 1-128 Oct 29 1-128
100 1% Nov 4 1%
100 33 Nov 1 33
160 18% Oct 31 17
40 10 Nov 3 10%
120 103 Nov 3 105
31
%, Oct 29
100
Oct 29 1-128
Nov 4 1
Nov 1 20
Oct 31 1134
Nov 3 10
Oct 29 100
%
Oct 29
Oe
34
3
Ap
July 42
July 1835
AP 30
Au 1194
Oct 1%
Oct
Aug
Sept
Sept
Jan
Jan
Jan
25
Chile Copper
•
City Stores ens
Comm Cred pref (7)-25
Consol Cigar pref(7)100
•
Dresser Mfg cl A
Eng Pub Serv p1 (6) •
Each Park Assoc pfd100
10
100
10
100
100
100
100
8 Nov 3
% Nov 4
18% Nov 3
45 Oct 29
8% Nov 4
40% Oct 29
3 Nov 2
8 Nov 3 8 June 16
540
34
34 Nov 4
18% Nov 3 1134 June 2134
July 72
45 Oct 29 19
July 23
8% Nov 4 5
40% Oct 29 25 June 6134
314 Nov 2 134 JulY 7%
Sept
Oct
Mar
Feb
Feb
Mar
Jan
•
Hamilton Watch
Hat Corp pref Cl A...100
Keith-Alb-Orph pfd 100
Kresge Dept Stores •
Laclede Gas pref__ _100
Mengel Co pref... _100
Norwalk T & 11 pf__100
Newport Industries. .1
60
10
100
10
10
30
50
200
4 Nov 3
934 Oct 31
18 Nov 3
2 Oct 29
60% Oct 31
26 Nov 3
28% Oct 29
2% Nov 4
4% Nov 3 2
9% Oct 31 6
18 Nov 3 7
2 Oct 29 1
60% Oct 31 40
30 Oct 29 20
2654 Oct 29 15
234 Nov 2 114
June
Aug
May
Apr
July
May
Apr
June
12
20
30
5
65
38
28%
334
Feb
Sept
Sept
Mar
Sept
Jan
Oct
Aug
•
Outlet Co
Panhandle P & It p1100
Penn Coal & Coke_ __50
Phoenix Hosiery p1_100
Pierce-Arrow Co pf_100
Revere Cop & Br p1-100
10
20
200
40
100
20
35
5
1
35
17
18%
25
3%
1
25
14
10
Ap
Apr
July
May
May
July
46
10
2
41
41
25
Apr
July
Apr
Jan
Jan
Sept
Sloss-Sheff St et I p1100
Underwood-Elliott100
Fisher pref
United Amer Bosch...'
United Bus Publishers*
US Gypsum pret_ _ _1
Univ Leaf Tub pref_101
10
Utah Copper
10 13
10 88%
100 5%
100 234
130 101%
20 9614
20 60
Nov
Nov
Nov
Nov
Nov
Nov
1 35
4 5
4 1
2 35
17
1 18%
Nov 2 13
Nov
Nov
Nov
Nov
Nov
Nov
4 88%
3 5%
1 2%
2102
3 9634
361
Nov
Nov
Nov
Nov
Nov
Nov
1
4
4
2
1
1
Nov 2
Nov
Nov
Nov
Nov
Nov
Nov
July 2934 Sept
6
Aug 101
4 75
3 3% May 10
Aug 5
11 84% June 105
July 97
31 70
3' 35 June 71
Mar
Sept
Jan
Oct
Oct
Sept
Quotations for United States Treasury Certificates of
Indebtedness, &c.—Friday, Nov. 4.
Maturity.
Int.
Rate.
Bid.
Asked.
Maturity.
Sept. 15 1933.-June 151933...
Mar. 151933...
May 2 1933_
Aug. 1 1934.-May 2 1934.-,..... 151025
14%
I34%
2%
2%
234%
3%
7:.
2,
1002su
100I,u
10011,2
1002sts
10Issu
103
102nts
100ssw
100uu
____
100on
101ssu
1034,
1022sw
April 15 1937-Dec. 15 1932 —
Aug. 1 1936_
Sept. 15 1937_
Feb. 1 1933...
mar. 15 1933...
Jul.
Rate.
Asked.
Bid.
I00"n
1002233
102101,
10111,1
ag% 100604
334% 1011st,
3%
3%%
334%
334%
101
101s4„
102"n
10124n
101
101Isis
U. S. Treasury Bills.—Friday, Nov. 4.
Rates quoted are for discount at purchase.
Daily Record of U. S. Bond Prices. Oct. 29 Oct. 31.INov. 1.INov. 2. Nov. 3. Nov. 4.
-1—1011033-1---- - ----101"1, 101"si 101"ss
First Liberty LoanHigh 101"ss 101141
84% bonds of 1932-47.4Low. 101nst 10111 101"3/ 01111n 10114, 101"si
10119,2 101141 101111/
101993,
101nn
101141
Close
(First3%a)
7
26
24
7
51
1
Total sales in 81,000 Wilts...
Converted 4% bonds of(High
1932-47 (First 40
LowClose
Total sales in 81,000 units...
n 10-2-an 10.2-4,.
'
Converted434% bondsrigb 161i2-2 10-21i; 10-21i; 10r21O
n 1029,3
of 193247 (First 434,) Low.. 102nn 102sts 102on 10242 102,
1021932 102932 1020n 1029,, 102sts 102sst
15
16
6
33
6
35
Total sales in 81.000 units___
Second converted 434/High
---bonds 01 1932-47 (First( Low.
----Close
Second4110
Total sales in $1,000 units...
.43;
; 10-3-17s: 10-3
{High 10-311; 1011i; 10-3717; 16117
FourthLiberty Loan
431% bonds of 1933-38— Low_ 103% 103",, 103",, 103",, 1031,, 103nn
Close 10311n 103,sw 10315,, 103141 1031sti 103nn
(Fourth 434s)
121
127
74
121
6
140
Total sales in $1,000 units...
Treasury{High 107',, 107',, 1070n 10742 1044,1 107su
107
107sw 1079n 107
107
Low_ 107
434s, 1947-52
1079s, 1079ss 107"ss 1071st 107812
Close 107
57
2
231
44
3
11
Total sales in 81,000 units..
11ligh 1044n 10414, 10491, 104'n 1041ts 104
Low. 1049n 1041n 1041,1 104133 103son 10361n
45, 1944-1954
(Close 1049as 1041s, 1041,3 1043,, 103son 103nn
4
44
198
32
91
Total sales in 81.000 units_ __
(High 102,42 102nit 1021su 102isit 10214,, 10210:1
Low_ 102178, 10219,, 1021133 102"n 10242 1029,2
334s, 1946-1956
Close 102141 102,9” 10219,2 102"ss 102In 102",,
24
13
49
100
43
21
Total sales in 81.000 units...
(nigh 100ssn 100nn 100'93, 1002 2, 100un 19917,,
Low_ 1002sn 10091n 100993, 10020,1 10024n 199128,
334s, 1943-1947
Close 100ssit 100nn 10021,2 100993, 10024n 10097,1
24
3
23
89
193
Total sales in $1,000 units—
{High 91311,s 97nat 981,11 913",, Hun Winn
Low_ 9Øl, 961341 961sts 9611, 96sis
98"3,
38. 1951-1955
(Close 98"n 96sse 961811 961112 98nis
48
lb
52
59
44
30
Total sales in $1,000 units-101',, 1017,3 1019,1 1011is 101sas
lifigh
1011,1 1011n 1019n 1014is 101ssi
Low334,. 1940-1943
Close
10113, 1017n 10193s 101oss 1018
4
1
15
3
Total sales in $1,000 units...
80
(High 101-4; 1019s, 1019,, 10193, 101682 101%
Low- 10191, 1011s, 101131 101'n 101622 101sis
350, 1941-43
Close 101"ss 101'ss 1014s, 1019s, 101612 101112
1
1
1
4
13
Total sales in $1.000 units-29
(High 981n
97642 97sosi
981,1
98'ss
9842
Low_ 97313, 97ns, 97n, 9729n 97113s 9734si
3%s„ 1948-1949
9711” 97nn 97ssit
Close 981ss
97nn 97203
17
36
Total sales in 31.000 units...
132
15
209'
81
Note.—The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
6
14
I
1
1st 41‘s
4th 4%a
Tress 4
Treas 3s
102',, to 102',,
103682 to 103,811
10616,1 to 10666,2
96sti to 963
Foreign Exchange.—
To-day's (Friday's) actual rates for sterling exchange were 3.2963.29 9-16
for checks and 3.29 3-1603.2934 for cables. Commercial on banks, sight,
3.2834@3.29; sixty days, 3.28%(4)3.28%; ninety days, 3.27%63.283i:
and documents for payment, 60 days, 3.2834 63.29. Cotton for payment,
3.29 1-16.
To-day's (Friday's) actual rates for Paris bankers' franca were 3.92 15-16
(4)3.93 3-16 for short. Amsterdam bankers' guilders were 40,24(t540.25.
Exchange for Paris on London, 83.81; week's range, 84.10 francs high
and 83.59 francs low.
The week's range for exchange rtaes follows:
Sterling, Actual—
Cables.
Checks.
High for the week
3.3231
3.3234
Low for the week
3.28
3.2834
Paris Bankers' Francs—
High for the week
3.93 13-16
3.9334
Low for the week
3.92%
3.9234
Germany Bankers' Marks—
High for the week
23.76
23.77
Low for the week
23.7434
23.7234
Amsterdam Bankers' Guilders—
High for the week
40.2834
40.2534
Low for the week
40.17
40.1934
The Curb Exchange.—The review of the Curb Exchange is
given this week on page 3113.
A complete record of Curb Exchange transactions for the
week will be found on page 3137.
CURRENT NOTICES.
• No par value.
Nov. 9 1932
Nov.16 1932
Nov.23 1932
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.—
Below we furnish a daily record of the transactions in
Liberty Loan and Treasury certificates on the New York
Stock Exchange. The transactions in registered bonds are
given in a footnote at the end of the tabulation.
Bid.
Asked.
0.25%
0.25%
0.25%
n TAW.
0.10%
0.10%
0.10%
o.insz.
Dec. 28 1932
Jan. 11 1933
Jan. 18 1933
Jan. 25 1933
Bid.
Asked.
0.25%
0.25%
0.25%
0.25%
0.10%
0.10%
0.10%
0.10%
—The organization of the firm of H. P. Hayden & Co. to conduct a
securities business exclusively with dealers and financial institutions, with
offices at 120 S. La Salle Street, Chicago, has been announced. The new
firm will maintain a highly specialized trading department for the handling
of the shares of fixed investment trusts. Herbert P. Hayden, President
of the Company, has been connected with Smith, Burris & Co. for the past
two years and prior to that time was President of Hayden, van Atter
& Co., investment bankers of Detroit, Mich. C. E. Williamson, formerly
head of the trading department of Smith, Burris & Co., and P. Theo.
Jorgensen, formerly with Standard American Corp., are in charge of the
fixed trust shares trading department.
—Leach Bros., Inc., have prepared a special circular showing how the
status of tax-exempt municipal bonds has changed as compared with
taxable securities under the Revenue Act now in force.
—L. Harry Richards, Jr., of Richards & Co., Philadelphia, was elected
a member of the Philadelphia Stock Exchange by the Governing Committee.
—IIoit, Rose & Treater, 74 Trinity Pl., New York, have prepared a
special circular on the New York Title & Mortgage Co.
—Bristol & Willett. 115 Broadway, New York, are distributing the
November Issue of their "Over-the-Counter Review."
—Noke & Co. announce the removal of their offices to 99 Wall Street.
ames R. Dick is now associated with this firm.
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
lar FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE PAGE PRECEDING.
_
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Oct. 29.
Monday
Oct. 31.
Tuesday
Nov. 1.
g per share $ per share $ Per share
4434 4038 4214 3934 41
42
65
65
6434 6434 6434 65
2012 2012 20
20
21
21
121
/
4 1334 1214 1278 1178 1258
15
1614 15
1638 1612 '15
*2114 2212
2114 2114 *2114 24
81
375
81 '75
81
375
*812 10
*812 10
0834 10
34
6
6
*4
*4
6
45
4818 45
4818 345
*45
2114 21
2114
2118 2212 21
360
62
6134
60
62
*60
*34
1
34
34
72 1
1358 1414 1338 1358 1278 1314
52
5312 52
50
50
*52
2178 2212
2312 2412 2232 23
*112 272 '
112 272 *172 278
441
/
4 214 *112 218 *112 212
312 312 *3/
1
4 312 *314 312
758 7/
814
1
4
3734 814 •8
214 258 *2
212
212 212
3/
1
4 4
*3,
2 358
382 312
658 658
618 634
634 714
1112 1034 1034 1018 1014
*10
618 618
6
534 6
6
*858 11
858 858
10
10
'614 8
*613 812*614 8
41714 22
*6
22
*1714 22
414 •312 414
33
312 *3
*60
64
62
61
62'4 *60
3012 3332 2912 3112 28/
1
4 3014
734 *312 738
33/
1
4 734 *4
8
6
714 714 3612 7
37
9
*8
10
*8
9
*41
/
4 5
5
*3/
1
4 512 *4
1
4 1178 1118 1122
12
1314 11/
'314
712 *314 8
"314 8
4.6
714 *6
712 *5
7
1718 1738 1618 16/
*16
19
1
4
1518 1612 1412 1538 1418 1518
*71
/
4 10
*7
10
*7
912
4
414
414 414
334 414
712 712
812 812
712 712
*1412 19/
1
4 •16
1978 17
17
1434 15/
1
4 •14
15
13
14
22/
1
4 2312 *2034 2178 19
2012
31218 12/
1
4 1018 1214 *1018 1214
*434 534 *512 534
5/
1
4 5/
1
4
3212 5
•214 5
*212 5
*14
/
1
4
14
14 '
14
38
212 31
212 *1
*118
212
6/
1
4 734
812 7
612 678
1714 1714 *1612 17
15
1612
5
512 *5
5,4 535
514
858 8/
1
4
8/
1
4 8/
1
4
758 812
.18
14
*18
14
*18
14
1
4 23/
2334 2538 23/
1
4 2214 2314
*4
414
4
4
4
4
5
35
514
*4
5
5
*10614 114 *106 11314 *106 108
17
17
16
1614 1458 15/
1
4
*321
/
4 34
32
32
31
311
/
4
8/
1
4 9
8
8
734 8
•38
*38
54
*38
34
34
*1
128 *1
3
.72
pa
10012 10012 98 100
97
97
•79
80
*78
80
*7734 7934
171
/
4 1812 16/
1
4 1718 1534 1678
*1
272 •1
272 *1
278
15
1578 1412 14/
1
4 1312 1438
*138 5
*1/
1
4 5
•1/
1
4 5
8
*61
/
4 10
7
7
714
310
1112 *10
10/
1
4 1014
12
712 712 *834 9
*878 8
*8
16
*8
16
•8
16
*34
035
39
37
37
37
*213
321
/
4
3218
3218 *26
*26
*26
29
29
26
26
2
218 2/
1
4
218 "112 2
2/
1
4 238
21
/
4 21
/
4
218 214
'612 11
.714 11
"718 11
*1012 24
31012 24
•1012 24
32
'
38
12
32
38
88
*58
1
58
58
*58
72
/
4 1914 2014 1812 1912
1938 211
8
8
818 812
8
9
1
4 *858 1012 *858 934
1014 10/
"13
25
*13
25
25
25
*538 6
*512 6,2 *558 6
234
*178 234 *17a
•178 23
1
4 1354 '714 1334
*714 1312 *7/
6514 6114 6412
64/
1
4 .673* 63
361
62
64/
1
4
6234 62
*81
282 238 *24 214
212 212
*278 3121
*278 3
3
3
6
6
618 6/
1
4 "614 612
*5
9
9
'5
9
*6
'134 3
*21
/
4 3
*212 3
34
412
438 412 '412 5
*26
Wednesday
Nov. 2.
Thursday
Nov. 3.
Friday
Nov. 4.
$ per share
3514 4012
64
65
19
1934
1114 1218
1438 1438
2114 2114
'75
81
812 812
.4
6
4414 4414
1958 2114
5912 61
*12
78
1258 1338
*47
65
1934 2218
122
112
112 112
278 314
612 712
*2
214
2
,
4 338
512 882
9
10
534 534
8/
1
4 838
5/
1
4 6
*1714 22
312 312
5912 5912
2314 2912
*312 748
6
6/
1
4
714
714
*3/
1
4 5
978 1112
*314 734
*5
714
16
1614
1258 1458
*6
912
334 334
*652 814
15/
1
4 1514
12
13/
1
4
18
19
*1018 1214
514 514
*212 5
"14
/
1
4
212
*1
572 684
1414 16
5
5
8/
1
4 784
14
14
1934 22/
1
4
*334 4
*4
5
10612 10814
1234 1478
30
301
71a 832
*38
3
*72
112
96
971
7734 793
16
14
*1
27
1218 1338
*138 5
$ per share
3552 371
63
64
1812
18
1034 1112
*1312 1372
*1912 2212
75
75
8
8
•4
6
*42
4818
1912 2038
5912
59
*12
73
1234 1312
*47
65
1952 2034
.
12 112
*138 218
2/
1
4 27s
614 634
2
214
2/
1
4 3
5
514
9
9
434 .513
$ per share
37
4058
6234 63
19
21
1112 1258
1312 1438
*19/
1
4 20
'70
77
*8
10
*4
512
*42
4818
20
211
/
4
6014 61
*12
78
1312 1334
347
65
2034 2238
*12 112
•132 2
3
3
712
7
2
2
314 3/
1
4
514 614
9
9/
1
4
5
538
*558 10
10
10
634 64
*8
19
3312 341
25
25
26
26
34 11
134 2
'714 91
*9
24
32
/
1
4
.58
1
1534 19's
7 '8
1
4 8/
1
4
8/
"13
25
'5
6
2
2
*714 1334
5772 6234
61
62
2
218
2/
1
4
558
35
*218
*312
1
4
2/
8
9
3
4
Sales
for
the
Week.
Shares
61,000
1,300
1,400
20,200
1,400
200
10
200
300
7,800
1,700
1,000
42,400
20
46,200
200
100
1,300
2,500
1,500
5,100
12,100
1,400
1,700
7/
1
4 778
8
8
800
7
7
6
6
500
1714 1714 *14
22
100
*318 414 .
100
312 4/
1
4
5734 57/
54
57
1
4 1,100
24/
1
4 2718 113,600
22
25
*312 73* *312 758
558 618 1,900
5/
1
4 6
8
8
712 713
800
*312 412
*312 41
10
14,500
1012 1038 12
100
314 384
'314 8
718 71
*4
714
100
/
4
*1534 18 '1614 18
1,100
1258 1358 1312 1434 20,800
*6
10
*6
10
4,300
314 4
358 358
*7/
1
4 8
*618 8
300
*1434 20
15
15
300
1138 1214 1212 1338 4,900
16
1678 1812 1812 2.700
40
'1018 1214 *1018 1214
434 434 2,300
458 518
•212 5
*312 5
100
*14
/
1
4
•/
1
4 /
1
4
*1
212
*1
21
6
512 614
634 11,800
1414 1412 1534 2,100
14
412 472
5
5
1,400
714 784 5,800
684 722
*18
*18
14
14
100
2034 2234 89,200
19
201
*318 3/
1
4
3/
1
4 33
300
3/
1
4 312
4
5
600
106 106 '104 125
40
15
1314 14
13
8,800
30
2912 2958 30
1,500
7'i
712 812 4,400
714
*38
34
*38
3
*72
*78
11
118
397 101
*9512 101
900
7934
'7734 7
'771/4
60
1312 14g 1414 1612 21,500
*1
272
*1
27
13
1238 13
1438 28,800
*1/
1
4 5
*138 5
558 558 '512 7
400
10
10
10
10
600
"712 9
8
8
110
*8
19
19
*8
33
*3312 37
31
500
24/
1
4 2478 *2212 30
400
2412 2512 *2434 26
1,300
34
1
78
1
2,400
112 112 3,100
112
158
612 812
6
6
200
*9
24
*9
24
*1
/
4
12 1,000
38
/
1
4
*3*
•58 1
34
200
1434 1714 15/
1
4 18
82,000
71
7
714
/
4 8
6,900
834 10
*8
9
900
.13
25
"13
25
100
'5
6
514
514
100
*Pa 234 *175 234
300
'714 11
*7/
1
4 11
5712 5912 59
6478 63,100
61
61
*6112 641
/
4
900
2
2
*218 212
500
212 212 *212 3
400
538 588
514 618 2,900
35
712 *5
712
218 21s *112 3
100
3
312 *312 4
900
STOCKS
NEW YORK STOCK
EXCHANGE.
Lowest
*17
2178
*8518 10434
558
5
•56
641
*15
17
10
10
234 3
882 9
491it 525*
184
*112
1012 11'g
238 238
132
11
318 31
*234 4
3
3
1612 1812
*8512 10484
434
8
'56
6412
*1518 17
'10
1014
3234 3
852 9
485$ 5012
11
/
4 112
1034 1134
*238 212
114
138
3
3
3
3
1
4
'258 3/
Highest
PER SHARE
Range for Previous
Year 1931.
Lowest
Highest
Par 8 per share $ Per share $ Per share $ per share
Railroads
7914 Dec 20338 Feb
Atoll Topeka & Santa Fe_ _100 1778June 28 94 Jan 1
z75 Dec 10814 Apr
Preferred _
100 35 July 9 86 Jan 1
25 Dec 120 Jan
934May 26 44 Sept
Atlantic Coast Line RR--100
14 Dec 8772 Feb
334June 1 2138 Jan 2
Baltimore & Ohio
100
25 Dec 8012 Feb
8 June 3 41113 Jan 1
100
Preferred
18 Dec 6834 Feb
912JUne 2 3584 Aug 2
Bangor & Aroostook
50
80 Dec 11312 Mar
100 50 June 1 91 Sept!
Preferred
10 Dec 66 Feb
4 July 13 1934Sept
100
Beaton & Maine
1
4 mar
612 Oct 1332 June
278July 6 20/
Brooklyn & Queens Tr_No par
1
4 June
46 Dec 64/
Preferred._ ___ -__No par 2314June 28 58 Mar
1
4 Mar
3118 Oct 69/
Bklyn Manh Transit___No par 1118June 8 5014 Mar
63 Dec 9414 Feb
$6 preferred series A_No par 3112June 8 7838 Mar
12 Apr 13
912 Feb
138 Dec
Ds Aug 1
Brunswick Ter & Ry SeeNo par
1034 Dec 4532 Feb
714May 31 2058 Mar
25
Canadian Pacific
72 Dec 102 Apr
Caro Clinch & Ohio stpd 100 39 July 26 70 Feb
23/
1
4 Dec 4612 Feb
934July 6 3112 Jan 1
25
Chesapeake & Ohio
12 Dec
12 July 15
334 Aug 2
12 Dec
Chic & East III Ry Co -___100
5 Aug 2
12May 12
100
11
/
4 Dec
12 Dec
6% preferred
538 Aug 2
114June 2
100
778 Feb
212 Dec
Chicago Great Weetern
212May 25 1512 Jan 2
1
4 July
712 Dec 27/
100
Preferred
4/
1
4 Aug 2
%June 1
112 Dec
8/
1
4 Jan
Chic Milw St P & Pez-No par
118May 26
212 Dec 1538 Feb
8 Aug 2
100
Preferred
2 May 31 1412 Aug 2
5 Dec 4512 Feb
Chicago & North Western_100
5 June 29 31 Jan 2
100
1312 Dec 116 Mar
Preferred
112May 25 1638 Jan 2
778 Dec 6512 Jan
Chicago Rock Sal & Pacifio_100
2712 Jan 14
414May 2
100
14 Dec 101 Mar
7% preferred
2412 Jan 14
2 May 2
1018 Dec 90 Jan
100
6% preferred
7/
29125ept 23
412June 2
1
4 Dec 48 Jan
100
Colorado & Southern
10 Dec 4212 Feb
1112 Jan 2
2781uly 2
Consol RR of Cuba pref_100
92128ept 3
1
4 Feb
64 Dec 157/
100 32 July
Delaware & Hudson
Jan
1734 Dec 102
4578Sept 23
812June
Delaware Lack & Weetern_50
9 Jan 13
112May 2
1
4 Feb
3/
1
4 Dec 45/
Deny & Rio Or West pref._ 100
111
5 Dec 3934 Feb
/
4Sept 8
2 May 3
100
Ella
6/
1
4 Dec 4512 Feb
1578 Aug 20
258May 1
100
First preferred
5 Dec 4012 Jan
1012 Aug 26
2 May 2
100
Second preferred
1
4 Feb
25 Jan 14
1558 Dec 69/
512Ma7 2
100
Great Northern pref.10 Sept 8
312 Dec 2714 Feb
100
2 May
Gulf Mobile & Northern
13 Dec 75 Jan
1512Sept 8
3 June
100
Preferred
26/
1
4 Dec 4412 Feb
30/
1
4 Jan 18
8 May 3
100
Hudson & Manhattan
9/
1
4 Dec 89 Feb
24/
1
4Sept 6
434June
100
Illinois Central
Jan
7 Dec 61
1412 Jan 2g
4 May
RR Sec etfs series A-1000
412 Dec 34 Mar
1458 Mar 7
214June 1
Interboro Rapid Tran v t6.100
878 Dec 45 Feb
214June
1514Sept 8
100
Kansas City Southern
15 Dec 64 Feb
25145ep1 2
5 June
100
Preferred
2914Sept 8
5 June
Jan
8 Dec 81
Lehigh Valley
50
712May 2
100
2014 Dec 111 Feb
38148ept 2
Louisville & Nashville
25 Dec 61 Feb
48,
2 Mar 11
9 Sept 1
100
Manhattan Ry 7% guar
4 June
2034 Mar 8
672 Dec 39 Feb
Manh HY CO mod S% guar.100
278 Oct 26
9 Jan 26
5/
1
4 Dec 22 Feb
Market St Ry prior pref_100
18 Dec
/
1
4 Jan 12
112 Aug 11
/
1
4 Jan
Minneapolis & St Louis-100
7sMay 13
1 Dec 1112 Feb
438Sept 7
Minn St Paul & 58 Marle_100
114May 26 13 Sept 23
Mo-Kan-Texas RR---No par
1
4 Jan
378 Dec 28/
Vanua 1 24 Sept 23
100
1012 Dec 85 Jan
Preferred series A
112May 25 11 Jan 22
100
65a Dec 428* Feb
Missouri Pacific
212May 26 26 Jan 26
100
12 Dec 107 Feb
Cony preferred
18 Oct
18 Feb 9
12 Jan
78Sept 3
Nat Rye of Mexico 2d pref_100
2478 Dec 13214 Feb
834June 2 3658 Jan 15
100
New York Central
2/
1
4 Dec 88 Feb
112May 18
100
0348ept 8
N Y Chic,& St Louis Co
5 Dec 94 Mar
2 June 2 1558 Jan 22
100
Preferred series A
50 8214May 18 12713 Aug 18 z101 Dec 227 Feb
NY & Harlem
17 Dec 947a Feb
6 May 26 3158 Jan 21
100
N Y N IT & Hartford
52 Dec 11958 Feb
1
4July 6 7884 Jan 14
100 11/
Cony preferred
1
4 June
514 Oct 13/
33*July 12 15348ept 8
NY Ontario & Western-100
/
1
4 Dec
2 Feb
1 Feb 26
14 Apr 19
N Y Railways prat__ --No par
8/
1
4 Jan
/
1
4 Dec
12June 1
100
834Sept 6
Norfolk Southern
100 57 June 27 135 Feb 17 10558 Dec 217 Feb
Norfolk & Western
65/
1
4 Dec 93 Mar
100 65 July 5 7984Nov 2
Preferred
1412 Dec6012 Jan
512May 26 2538Sept 8
100
Northern Pacific
7 Mar
il4June
312Sept 9
1 Mar 17
100
Pacific Coast
1614 Dec 64 Feb
612June 1 2338 Jan 21
Pennsylvania
50
912 Jan
112 Dec
514Sept 8
72May 27
100
Peoria & Eastern
4 Dec 85 Feb
134June 30 18 Aug 25
100
Pere Marquette
812 Dec 9214 Feb
312June 2 26 Aug 25
Prior preferred
100
212June 1 24 Aug 25
51a Dec 80 Jan
100
Preferred
11 Dec 86 Jan
8 July 22 2112 Aug 25
Pittaburgh & West'Virginia 100
912June 10 5214Sept 2
30 Dec 15712 Feb
_50
Reading
28 Dec 46
50 15 July 11 33 Jan 29
tot preferred
Jan
27/
1
4 Dec 47
2d preferred
50 15 May 2 38 Sept 2
Jan
6/
1
4 Jan 14
58May 28
3 Dec 6234 Jan
St Louis-San Francine:2-.100
1 May 2
9/
1
4 Jan 22
100
414 Dec 78
let preferred
Jan
3 May 21 13728ept 8
414 Dec 3312 Jan
St Louis Southwestern
100
9 Apr 15 2012 Jan 26
100
814 Dec 60 Feb
Preferred
18 Jan 2
1 Sept 2
Seaboard Alr Line
No par
11
/
4 Jan
12 Dec
11
/
4Sept 2
14 Jan 4
Preferred
100
218 Jan
18 Dec
612June 1 3758 Jan 21
Southern Pacific Co
26/
1
4 Dec 109/
100
1
4 Feb
Southern Rallwa7
6/
1
4 Dec 6578 Feb
212May 16 1812Sep1 8
100
3 July 1 233413ept 8
Preferred
10 Dec 83 Feb
100
Texas & Pacific
100 15 May 12 35 Sept 7
22 Dec 100 Jan
Third Avenue
378May 28 14 Mar 8
100
5/
1
4 Apr 1514 July
Twlit City Rapid Transit 100
412June 10
132 Apr 20
2 Dec 1778 Feb
Preferred
7 June 16 24/
100
1112 Dec 62 Feb
1
4 Jan 26
Union Pacific
100 2758July 11 941
/
4 Feb 13
701$ Decl 20512 Feb
Preferred
100 40 May 31
51 Dec 87 May
711
/
4 Aug 25
Wabash
%June 2
100
414 Aug 29
/
1
4 Dec 26 Jan
Jan
Preferred A
1 June 1
100
11
/
4 Dec 51
6 Jan 28
Western Maryland
112May 28 1138Sept 2
100
5 Dec 1958 Feb
2d preferred
2 May 26 1114Sept 2
100
6 Dee 20 Feb
Western Pacific
100
lelune 9
1
4 Feb
las Dec 14/
434 A111425
Preferred
34May 31
100
878 Aug 25
3 Dec 3158 Feb
Industrial & Miscellaneous
'1612 2178
100 Abraham & Straus
No par
*8512 10434
Preferred
100
5
51
/
4 15,000 Adams Express
No par
356
6412
20
Preferred
100
"15
17
Adams Mills
No par
10
10
600 Address Multigr Corp-No par
"234 3
600 Advance RumelY
No par
214 914 1,600 Affiliated Products Inc_No par
5018 53
14,800 Air Reduction Inc
No par
*112 2
100 Air Way Elea Appliance No par
1112 1134 23,000 Alaska Juneau Gold Min__ _10
.238 213
300 A P W Paper Co
No par
182 112 8,700 Alleghany Corp
No par
3
3
Pref A with 830 warr--100
500
3
3
700
Pref A with 240 warr____100
3
3
Pref A without wart._ _100
300
•11121 at d asked prices: no sales on this day. s Es-dividend p Es-tight..
2178 31612 2178 *1618 2178
1
4 *8518 10434
10434 "8518 104/
514 512
534 534
6412 56
56
6412 *56
*56
17
1714 •15
1714 *15
•16
101s 1012 101s 1012 1012 1012
1
4 *234 312
234 2/
*234 314
812 812
914 914 *834 914
/
4 54'2
1
4 5312 5414 511
5412 55/
*112 2
*112 2
3112 2
1138 1158 1135 1134 1114 1122
238 238
238 238
*238 212
112
Ds
112 112
112 152
2,328
334 .318 334 *318 4
•234 4
3/
1
4 314 *234 4
1
4 *234 378
1
4 3/
1
4 •2/
*234 3/
*16
*85
PER SHARE
Range for Year 1932
on boot
,of 00-share tot,.
10 June 1
68 July 1
138May 31
22 June 24
12 June 1
912Juli 20
114June 8
414May 26
307s July I
12June 6
734June 9
1 July 27
38May 31
/
1
4May 31
'*June 3
34June 11
2438 Aug 29
98 Mar 1
9128ept 7
73 Sept 8
3038 Mar 8
14 Sept 8
478 Aux 11
1612 Mar 17
8312Sept it
312Sept 9
1652 Jan 21
4 mar 15
358Sept 8
81423ept 9
8 Sept 8
8 Sept 9
18 Dec 39 Aug
96 Dec 10612 Ms/
1
4 Feb
318 Dec 23/
5012 Dec 92 Apr
2212 Jan 3312 Aug
10 Oct 2312 Feb
2 Sept 1138 Mar
1218 Dec 20 Nov
4758 Dec 10932 Feb
11
/
4 Dec 1058 Feb
7 Jan 2018 June
9 Aug
2/
1
4 Dec
11
/
4 Dec 1234 Feb
2 Dec 5918 Feb
59
Feb
134 Dec
1$4 Dee 5512 Feb
New York Stock Record-Continued-Page 2
3122
tar FOR
SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE SECOND PAGE PRECEDING.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Oct. 29.
Monday
Oct. 31.
Tuesday
Nov. 1.
Wednesday
Nov. 2.
Thursday
Nov. 3.
Friday
Nov. 4.
*39
.138
78
*712
•178
*3
•134
614
*15
*512
.6
16
*10
69
*234
4138
*1
531
678
•1634
.72
"4
434
*4
•4I
*124
*6834
*40
54
*5814
1014
•12
171g
354
512
4178
*50
•1038
*4934
,
8
.14
2538
778
*38
434
39
41 .
112
11
78
7
9
*714
2
2
43
*3
*134
2
64 *6
•15
812 •S12
812 .6
1614 16
11
18
69,4 69
*234
3
4334 4014
1
1,8
6
534
67a
6,2
*1634
18
*75
77
2
*34
414
434
*4
11
*41
45
1238 1212
704 *6834
3914
45
538 *518
59111 .5712
10
11
*12
13
174 17
35'8 3434
*512
7
12,2 *778
*50
60
*1018
11
*50,4
51
*14
38
•13
78
2578 2518
818
818
.28
1
434
434
4012 *39
138
112
78
4
714
734
•178
2
44 *3
2
134
614
6
*15
9
*512
10
*6
16
1838
11
•10
69
*6712
3
*234
421.1 4012.
1
*1
51*
534
54
8,2
1778
18
77 .77
2
*34
418
438
•4
11
*41
45
1212 1134
704 69
*3914
40
528 •518
591s *5712
938
1038
*1112
13
1738 17
3514 .34
7
612
12,2 .8
*50
60
1112 10,4
504 *5014
*14
12
*38
1
254 2518
734
81s
•I4
1
412
434
4012
138
4
7,4
214
43.,
134
6
734
16
14
6912
3
4112
118
558
6
1778
80
2
412
II
45
1218
69
45
584
5918
1018
13
1712
37
612
1212
60
1014
54
12
1
2578
778
434
o Ex-rights.
• Bid and asked prices: no sales on this day. I Ex-dividend.
STOCKS
NEW YORK STOCK
EXCHANGE.
Shares Indus. & Stlscell. (Con.) Par
20 Allegheny Steel Co ___No par
50,500 Allied Chemical & Dye_No par
Preferred
100
2,400 Allis-Chalmers Mfg.. No par
200 Alpha Portland Cement No par
100 Amalgam Leather Co_.No par
7% preferred
100
3,400 Amerada Corp
par
70( Amer Agri() Chem (Del)N
No parr
2,400 American Bank Note
10
Preferred
50
American Beet Sugar_.No par
50
7% preferred
100
1,300 Am Brake Shoe & Fdy_No par
200
Preferred
100
65,900 American Can
25
200
Preferred
100
600 American Car & Fdy__ _No par
400
Preferred
100
300 American Chain
No par
100
7% preferred
100
1,800 American Chicle
No par
300 Amer Colortype Co...No par
5,700 Am Comm I Alcohol Corp_ _2
Amer Encaustic Tiling_No par
200 Amer European Sec's-No par
16,200 Amer & Forn Power
No par
600
Preferred
No par
1,200
2d preferred
No par
$6 preferred
200
Am Hawaiian S S Co
100 Amer Hide & Leather_.No
:
a0
N pla
100
Preferred
100
15,400 Amer Home Products-No Par
1,100 American Ice
p+
...No
No a
6% non-cum pref
9,400 Amer Internet Corp
100 Am L France & FoamiteNo pa
Preferred
100
2,300 American Locomotive_ -Yo Pa
300
100
Preferred
900 Amer Mach & Fdry Co..No Pa
27
278
*2
*2
Amer Mach & Metals..No pa
.2
27
1,200 Amer Metal Co Ltd.....No par
5
5
478 51
478 47
600
2014
2014 201 *15
6% cony preferred
2014 201
100
10 Amer News Co Inc_ _..No par
25
25 .24
*24
25
*24
878 11,500 Am
ppo
8
Pfoowrreerd& LIght-___No par
734 81
818 9
800
2934 314
2978 297
No par
30
30
1,600
24
24
24
23
241
24
$5 Preferred
No Par
612 712 24,300 Am Rad & Stand San'y_No Par
61.1 658
64 7
918 1014 10,200 American Rolling Mill
25
9
912
912 1(0
American Safety Razor_No par
2012
2012 *18
*1818 1978 *18
100 Amer Seating v Sc
No par
•112 212 *112 212 *112 212
5i4
12
100 Amer Ship & Comm_ _ _No par
14
,2
14 .
14
Amer Shipbuilding Co_No pa
*1318 1412 "1318 13,4 •1318 1314
10,400 Amer Smelting & Refg_No Par
1212 1312 1238 1338 1314 15
1,100
45
44
45
44
45
Preferred
45
100
35
400
35
40
35
2d preferred 6% cam...100
35 .34
700 American Snuff
3212
25
30
*30
30,4 30,4 30
20
10114 10114 101 101 *101 106
Preferred
100
3,700 Amer Steel Foundries_ _No par
512 614
612 7
64 673
Preferred
70
100
70
*67
70 •67
*67
800 American Stores
ptter
34
*33
No lo
34
32
3334 34
800 Amer Sugar Refining
*20
22
2018 2018 2034 2112
600
Preferred
100
8018
75
075
75
75
75
300 Am Sumatra Tobacco_.No pa
712
712 *6
*612 7,4 •6
100
10014 10414 125,200 Amer Telep dc Teleg
984 10218 9858 100
25
61
6212 6212 1,500 American Tobacco
60
6118 60
Common class B
25
6218 63,2 6358 6634 29,500
62
66
600
Preferred
100
109 109 *109 112 *111 116
American
anoType Founders_ _100
13
07
13
714 •7
*7
100
*1512 21
*1512 21
*1512 21
2018 1912 2034 3,900 Am Water Wks & Elee_No pa
2018 21
19
Cam vot tr ctfs
No pa
1714 17,4 1612 1638 1614 174 2,900
200
1st preferred
50
No pa
50
55
*50
*50
55
No pa
414 51 1 3,000 American Woolen
458
4
414 438
100
2,500
Preferred
2414 2512 2334 2414 2418 25
458 112
Am Writing Paper ctfs_No Pa
*58
112
1 12
*48
10
No pa
Preferred Cert1f9
3
3
*3
4
4
*3
1,600 Amer ZincZ
eineeLead & Smelt....
3
3
318 *212 3
3
2
100
*1834 2812
•1834 2812 •1834 22
30,800 Anaconda Copper Mining 5
814 9
8
812
814 878
No
pa
Cable
&
oh
p
Vire
12
*618
*618
12
*64 778
No pa
900 Anchor Cap
942
9
912 10
912 912
No pa
30
$6.50 cony prof
69
913
69
*63
*63
69
Andes Copper Mining-No Pa
*3
*312 7
7
*312 7
Archer Daniels MidI'd.No pa
12,2
*11
1212 •11
*11
12
10
50
7% preferred
•9514 99
•96 1004 *9514 99
400 Armour & Co (Del) pref. 100
42
*37
38
39
36
39
1,4 3.700 Armour of Illinois class A _25
114
1.14
114
1,
8
1,3
78 1,600
Class B
34
25
78
78
78
78
Preferred
100
1,000
*7,4
638 7
7
718
600 Arnold Constable Corp_No par
134 14 *134 2
178
178
70 Artloom Corp
434
•3
434 •3
3
3
Noo parr
134
134 1,200 Associated Apparel Ind_N
134
134
134
144
Assoc Dry Goods
500
No par
53
4
512
*53
4
*534 6,4
25
------ Associated 011
*15 -- -- *15
•15
Atl G & W I SS Lines_ _No par
*512
*512 9
•512
Preferred
100
7
,
2
*6
•6
712
8
*6
25
151 s 1534 1512 1618 12,400 Atlantic Refining
1558 16
00
No 1par
500 Atlas Powder
012 012
918 918
10
10
Preferred
80
66
6912 66
*64
6912 *66
200 Atlas Tack Corp
3
3
234 254 •234 3
3812 4134 29,200 Auburn Automobile__ _Noo parr
3814 4114 3712 39
No par
200 Austin Nichols
118
118 *1
*1
118 *I
5,4
558 22,500 Aviation Corp of Del (The)-5
514 54
518 512
534 54 1,800 Baldwin Loco Worka_ _ _No par
5,4 534
518 5,4
100
220
Preferred
1634 1712 1558 1658 1518 16
70 Bamberger (L)& Co prof_ _ 100
77
77 •75
*75
75
77
No par
Barker Brothers
2
*3.1 2
*34
"1 2
4
412 3,800 Barnsdal Corp class A
37g
414
378 41s
40 Bayuk Cigars Ins
No pa
*414 11
4
*412 11
4
100
1st preferred
45
•41
*41
*41
45
45
50
1058 1114 4,500 Beatrice Creamery
1138 1012 11
11
100
Preferred
200
7112
70,8
6834 6834
20
.400 Beech-Nut Packing Co
04018 45
39
3914 *3918 45
412 458 1,300 Belding Ileminway Co_No Par
434 518
514 5,4
Belgian Nat Rye part Pref---5918 *5734 5918 *5758 59,3
*57
No Pa
18,800 Bendix Aviation
914 10
838 978
812 9
ar
No po
1,000 Best & Co
11
1014 11
1112 1012 11
1734 13,100 Bethlehem Steel Corp
16
18
154 1658 16
100
2,100
7% preferred
3214 35,4 32
3238 3238 341
No Par
100 Blaw-Knox Co
*5,2 6,4 *512 6,4 •512 814
*8
------ Bloomdingale Brothers_No par
1212 *8
*8
100
Preferred
*50 66- *50 -6-6*50
60
101 1 10,4 1,500 Bohn Aluminum & Br- _No par
934 10
978 10
No par
300 Boo Ami class A
5014 5014 .5014 5138 5134 52
*14
12
•14
.1,
12
ao
r
12
No 1p0
100 Booth Fisheries
33
*12
34
100
"g 1
1st preferred
313
25
25,200 Borden Co (The)
2312 25,4 2312 2438 2418 25
10
7
712
713 778
7,4 7711 4,700 Borg Warner Corp
78
•18
78
4.18
*18
7g
Botany Cons Mills class A-50
412 412
412 438
412 43s 2,200 Briggs Manufacturing.NO Par
S per share $ per share $ per share $ per share $ per share $ per share
*912 1012 1.912 11
9,2 9,2 1012 1012
*912, 11
'912 11
6734 6934 694 7358
72
7038 7314 69
7312 7512 7214 74
*11578 11712 •116 11712 •11512 11712 *11512 11712 *11512 11738 *116 11714
718
712
712 734
754 8
8
7.8
812
7,4
'7,2 778
*718 8
*71, 8
4.714 10
714 7,4 •714 10
711
711
*48 112
112
*38
1
1
"g
112
"8 112
*38
112
*538 8,4 *538 814 *558 814 *54 84 *512 814 *512 8,4
1912 *1912 1978 1912 1934
*1912 20
*1912 20
1912 1912 19
912
734 734 *8
912 *734 914 *734
*8
*734 818
1112
1012 1012 *11
1218 1112 12
1218 1212 12
124 13
42
*40
42
*40
*40
45
4378 *40
*40
46
434 •40
2
*1
2
*1
*118 2
*1 18 2
*118 2
2
*1
*4
6
4
4
714
714 *4
714 *4
*4
714 *4
934 10
10
12
1104
*10
1178 1178 1114 1114 *1012 12
*7034 7434 *704 7434 7078 704 704 704
*7034 75
*7034 75
4918 4912 5218
4912 51,4 4818 5038 48
52
5234 534 x51
118 118 *117 125 *11978 128
11978 1194 *117 127
*117 127
818 814
712 734
*814 912 *734 84 *758 838 *738 838
*2014 2112 *2038 2112
2212 2038 21
*2112 2212 2114 2112 *21
3
3
*234
1
5
*23
4
5
312 3 2 *334 5
*3
5
9
9
1012 *74 9
*8
1012 .8
*758 12
*738 12
36
36
35
34
35
*34
35
*34
25
3434 35
35
5
5
5,2 512
6
*5
*512 6
6
6
*5,2 612
1912 2138
1934 21
1858 2014 1834 19
2114 2018 21
21
*112 2
*112 2
*112 2
*112 2
.112 2
*112 2
818 818 *818 934
.84 9's *734 812
.8
9
8
614 712
6
612
612 712
718 773
712 734
734 84
14
*13
12
13
127
8
121
8
14
1412 *1214
*12
14
14
812
8
8,4 834
834 914
10
912 9,2
10
934 94
1212
*1018 14
*934 1134 *10
1378 *1112 14
*1214 1434 .12
*414 5
*414 5
*414 5
*414 5
*44 5
5
*4
312 312 *318 418 "314 418
.338 418 *312 418 *312 418
13
1412 13
1512 *12
*12
16
*13
1512 *13
*1418 16
3734 3612 3778 354 374 3534 3612 3638 3758
3712 3773 37
*634 714
7
634 7
7
*7
738
7
7
712 712
41
41
*38
*38
41
41
*38
4212 .38
4212 •38
*38
638 7
64 612
618 638
653 634
7
7
7,4
7
12
514
12
*14
311
*14
3s
33
*14
*14
38
3
*2
3
*2
*2
3
3
*2
*2
3
3
*2
74 712
714
7
678 712
*712 734
8
8
77s 774,
2618 •25I8 26
2612 2612 25
*2612 28
29 '2612 29
*23
1214 1214
12
1218 1218 1114 1112 1112 111
1214 1214 12
278
2
24 *2
*2
214 .
514
478 478
514
478 478
2014 20,4 2018 203 *2014 21
24
24
25
*24
*24
25
838 9,2
94 953
934 10
3138 *30
30,2
31
*2938 30
2534 *2412 2514
25
25
25
678 7
718 738
7,4 71
1018
1114 11,4 1012 1038 10
*18
2I38
22
*18' 214 *18
158 158 *112 212 *112 212
1
.14
12
*14
12
*14
*1318 141 •1312 1412 .1338 1412
1312 14
1418 1538 1438 15
48
*45
*451, 50
46
46
35
35
40
036
36
36
3012 3034 297* 30
*3012 31
*101 105 *10134 105 *101 10378
658 714
738 738
73
*7
70
*64
70
*64
*51
70
32
3234 32
323 *32
*30
21
21
2018 2038
211
*21
7634 774 *7514 7912
*7612 763
718 718
714 714
7
7
10034 10314
10358 1053 10234 104
64
*62
641
6378 64
*64
663s 6853 6534 6712 6518 6614
10912
10914
•10914
10912
*10912 1111
14
*7
14
*7
*7
14
*1512 21
21
*18
25
*18
22
2012 2112
22
231
23
1812 1812
1914 20
*1914 197
50
50
55
*50
55
*52
412 438
478 54
54 51
*2518 26
*2518 28
26
26
*48
112
*38 113
*38
11
4
*3
*3
4
41
*4
.314
33
318 318
314 314
1912 1912 *1834 2812
•1912 21
838 878
858 878
9
91
728
4.818
*618 11
*618 12
912 104
.912 101
104 1014
67
633
8
69
*67
69
.67
7
*4
*4
7
7
*4
1112
•1034 111 *1034 1112 *11
96
*96 1001 *96 10014 96
Sales
for
the
Week.
PER SIIARE
Range for Year 1932
On basis of 100-share tots.
Lowest
Highest
PER SHARE
Range for Previous
Year 1931.
Highest
Lowest
$ Per share $ Per share $ per share $ per share
Del
461, Feb
III
May 27 15 Sept 8
42I21une 27 8814Sept 8
64 Dec 18234 Feb
9612 Apr 14 119 Slat 11 100 Dec 126 Apr
1538Sept 8
4 June 1
1012 Dec 4234 Feb
412July 7 10 Jan 11
758 Dec 1878 Feb
212 Mar
218Sept 8
12 Dec
14 April
10 Mar 4
5 Oct 21
Oct 20 Jan
6
12 Jan 25 22345ept 8
1114 Dec 23 Mar
3I2Ju0e 2 1512Sept 3
518 Oct 2934 Feb
5 May 31 22I2Sept 8
1214 Dec 6234 Feb
28 June 21 47 Feb 15
35 Dec 5614 Feb
434 Jan
14 Apr 29
278 Aug 21
4 Dec
934 Aug 21
1 Apr 29
112 Dec 1778 Jan
Feb
612June 2 1778Sept 8
1312 Dec
40 July 11 90 Feb 18
71 Dec 12438 Mar
2958June 27 7378 Mar 8
5818 Dec 12934 Mar
9312June 2 129 Mar 14 115 Dec 15212 Apr
34June 2 17 Sept 6
412 Dec 3834 Feb
16 June 30 50 Aug 29
2038 Dec 86 Mar
178 Apr 22
714Sept 6
5 Dec 434 Feb
Jan
7 June 22 26 Jan 28
28 Dec 88
18 June 1 3738 Mar 8
3014 Dec 4838 51nr
2 July 13
814Sept 24
5 Oct 2114 Feb
11 May 26 27 Sept 29
1 Slay 26
5 Jan 9
24 Dec 16 Mar
234 Apr 11
1534Sept 8
738 Dec 3318 Feb
2 Slay 31
15 Sept 6
6,8 Dec 5134 Feb
5 May 31 3812 Jan 21
20 Dec 100 Mar
234May 26 21 14 Aug 29
10 Dec 7012 Feb
3343u5e 1 33 Jan 18
18 Dec 90 Feb
3 May 27
612 Aug 30
4 Dec 1038 Jan
1 May 31
678 Sept 8
8 Mar
1 Sept
478May 3 27 Sept 7
712 Dec 30 Apr
25 June I 5138 Mar 9
37
Oct 64 Star
612 Oct 25 2153Mar 8
1012 Oct 3158 Feb
37 Oct 24 68 Mar 8
43 Dec 7731 Jan
212June 2 12 Sept 8
5 Dec 26 Feb
11/ Jan
34 Aug 30
14 Jan 6
14 Dec
1 July 20
414 Aug 30
1Ig Dec 15 July
34July 1
154 Aug 29
5 Dec 3034 Feb
19 July 5 49 Sept 6
2912 Dec 8434 Mar
712June 27 2214 Jan 14
Oct 4334 Mar
16
1 June ii
334 Mar 9
7 Mar
114 Oct
112June 1
94 Aug 30
478 Dec 2334 Feb
6I2June 2 33 Aug 30
14 Dec 891/ Feb
33 Jan 30
14 July 21
25 Dec 571 l Fell
3 June 2 171413ept 8
1158 Dec 6474 Feb
15l4June30 58 Jan 14
4412 Dec 102 Mar
10 July 6 419
23
,18o
Japnt 18
4
85
,5 Dec 2112 Mar
3°u
31 Sla
ny
e 25 1812Sept 6
74 1)ec 3734 Feb
13*June27 12914 Mar 7
1914 Dec 66 Feb
34June 20
3345ept 12
9 Fell
158 Dec
un
po
r2
1018jA
78 Sept 2
158 Feb
4 Dec
2518 Jan 14
Oct 42 Jan
20
54MaY 3
271 1Sept 8
171/ Dec 581/ Feb
22 J,ine2l 85 Jan 29
75 Dec 13812 Mar
15 July 5 55 Feb 19
45 Dec 10234 Star
2I34June 1 3612 Aug 29
28
Oct 4214 Mar
90 Jan11 106 Sept 13
97714 Dec 11078 JulY
3 May 31
15I85ept 6
5 I)ec 3114 Feb
34 July 6 80 Feb 18
68 Dec 113 Feb
20 May 31 3634 Mar 3
33 Dec 484 Mar
3914 Jan 13
3412 Oct 60 Star
415
3 June'
390 Aug 27
8412 Dec 10812 Mar
234 Apr 29 1014 Aug 25
31/ Dec 1114 Feb
6934July 11 13738 Feb 19 11218 Dec 20134 Feb
4012June 1 8634 Mar 9
6012 Dec 12834 Apr
44 June I 8934 Mar 8
64 Dec 13234 Apr
0514June 2 11812 Oct 14
96 Dec 132 May
4 June 3 25 Jan 25
Jan
19 Dec 105
1012July 6 70 Jan
72 Dec 11012 Feb
11 May 26 3412 Mar
2318 Dec 8034 Feb
11 May 27 31 Mar
2134 Dec 8034 Feb
26 June 2 75 Jan I
6412 Dec 107 Mar
158May 25 10 Sept
238 Dec 1178 Jan
1512 Jan 4 397813ept
1514 Dec 40 July
I4May 10
21 1 Aug 2
Jan
4
12 Dec
2 July 9
Aug 2
214 Dee 18 Feb
114May 25
678Sept
212 Dec
8'4 Feb
10 June 1 35 Aug 3
1912 Dec 4518 Aug
3 June 30 1938Sept
914 Dec 4314 Feb
3 Apr 11
15 Sept
6 Dec 2614 Star
5I4May 2 1712 Mar
13 Sept36 Feb
40 May 12 75 Sept
693i Dec 9978 Mar
14May 31
9 Sept
4 Dee 191/ Feb
7 Apr 18 1512Sept
8 May 18 Feb
85 Apr 19 1001 1 Oct 2
Jan
90 Dec 102
24 May 31 61 Aug 29
20
Oct72 Jan
138June 2
234Sept 9
34 Dec418 Jan
%June 7
2 Sept 12
1 Oct27s Jan
312May 31
1578 Aug 29
Jan
518 i)ec 47
May 3
158 Dec9 July
215812JMAo
:
5
3 483 8143
Aupg
gt 28
4
9
4 Oct104 Feb
114 Dee 284 Feb
6
312b
jloaly
y 18
8 11 Sept 8
534 Dec294 Mer
1612 Aug 11
Feb
83
4 Doe 31
6 June 8 124 Aug 16
10 Dec39 Jan
618July 25 1434 Jan 22
15 Dec5312 Jan
858 Feb 9
Be
ye
l)b
t 8
2
84 Dec234 Feb
712 July 8 25
17
1:
18 Dec54 Feb
4512June 29 794 Jan 13
7714 Dec994 Jan
I July 25
37a Aug 10
II/ Dec31/ Jan
2834May 16 15134 Jan 14
8412 Oct29512 Apr
12 Feb 19
17813ept 9
12 Sept214 Mar
112June 1
738 Oct 6
64 Mar
2 Deo
2 May 31
12 Aug 29
458 Dec 274 Mar
8 May 27 3718 Aug 29
15 Dec 10412 Mar
62 July 8 99 Feb 25
85 Dec 107 Feb
13
7 Sept3'l Aug8
24
134 Oct 10 Jan
3383JAunper
4 Dec 1412 Feb
4 June 2 13 Feb 1
14 Dec 33 Jan
35 July 29 59 Jan 7
60 Dec 00 Mar
1012 Nov 3 4312 Jan 14
37 Dec 81 Mar
6,431 Nov 2 95 Jan 18
90 Dec 111 Mar
2914May 31 45 Aug 27
3712 Oct 62 Apr
232 Jan 4
854 Sept 8
(08 Aug
1114 Juno
5738Jupe 1 6212July
5478 Dec 8034 Jan
412May 27 1834 Jan 14
1258 Oct 251/ Feb
534June 2 2478 Feb 19
1934 Dec 4614 Star
714June 28 29388e03 6
1714 Dec 7038 Feb
1614 July I 74 Jan 9
60 Dec 12378 Mar
10 Aug 11
6 Dec 29 Feb
6
3518
4;u
une 13
1
14 Feb 15
15
Oct 21 Nov
50 Apr 22 61 Jan 6
Jan
75 Dec 05
474June 2 2214 Jan 14 11151/ Doe 63 Aug
31 June 1 54 Sept 8
Oct Z86'4 Apr
49
18May 13
3 Feb
3
.
J.Aa
uo
g
r 295
14 Dec
2
1 4311,i84
14 Dec 1714 Feb
0%
33 July
ap
23
3518 Dec 7612 Mar
26 1414Sept 8
9 Dec 3034 Feb
Apr 25
334 July
1 148ept 7
18 Dec
274June 1
111413,1ar 5
712 Dec 2234 Mar
•
New York Stock Record-Continued-Page 3
3123
gar FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE THIRD PAGE PRECEDING.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Oct. 29.
Monday
Oct. 31.
Tuesday
Nov. 1.
Wednesday
Nov. 2.
Thursday
Nov. 3.
Friday
Nov. 4.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Year 1932
On basis of 100-share lots.
Lowest
Highest
PER SLTARE
Range for Preetota
Year 1931.
Highest
Lowest
8 per share 8 per share $ per share 5 per share $ per share $ per share Shares Indus. & allacell. (Con.) Par $ per share $ per share 5 per share $ per share
.8
4 May 28 1012 Jan 14
No par
8 Sept 2412 Mar
200 Briggs & Stratton
714 714 *714 9
8
8
9
*8
9
7238 Dec 12938 Mar
400 Brooklyn Una:at Gas-No par 48 June 2 8912 Mar 8
77
7612 7514 7514 *7412 7512 *76
70
80
78 *78
78
3234 Jan 4512 July
No par 23 July 9 36 Feb 15
31% 3118 304 3014 *3018 32
31
300 Brown Shoe Co
301s 3018 *30
31
*30
218 Dec 15 Feb
412Sept 8
llgJuly 8
2
2
*134 2541
400 Bruns-Balke-Conender-No par
218 218
*218 314 *218 234
*218 3
714Sept 8
314 Dec 20% Feb
llelune 2
10
400 Bucyrus-Erie Co
314 312 *318 414
35/4 358 *312 412 *312 412
*312 334
212May 31 1018Sept 9
438 Dec 3478 Feb
5
518 518 *413 512
•514 7
Preferred
*514 6
*518 812 *518 612
100
75 Dec 114 Apr
100 35 June 16 80 Sept 7
59
59 *43
*43
60 *43
59
65 *43
7% preferred
*43 60 *40
558 Feb
lly Dec
318Sept 22
18 Apr 9
No par
112 118 *114 1% *I12 I%
112 112 *112 178
500 Budd (E 0) Mfg
112 112
97
10 Dec 50 June
312July 27 14 Jan 28
100
*4
7% preferred
8
9% *4
9% *4
98 *4
9% *3
*3
258 Dec 13 Feb
412 Jan 14
38May 28
No par
Budd Wheel
212 *2
212 *2
212 *218 214 *2
212 *2
214
*2
118 Apr 11
3% Dec 1534 Jan
312 Jan 25
No par
*218 278
*218 3
*218 3
200 Bulova Watch
2% 214 *134 3
*214 3
31
8 Sept 7
218May 28
33* Dec 23 Feb
No par
312 *4
312 312
*3% 418
4
4
*4
458
700 Bullard Co
412
10 Oct 3214 Feb
814June 1 1314 Aug 20
8
8
818
8%
77o 8
814 814
818 814 2,000 Burroughs Add Mach-No par
812 812
1538 Dec 31 Feb
312June 23 2134 Mar 9
No par
*5
0
*4% 8
.5
.5
5
5
6
500 Bush Term
*5
8
*5
49 Dec 104 Jan
11
100
10
11
1114 11
11
714July 14 85 Mar 9
Debenture
1034
111* 1134 11
300
*1018 12
85 Dec 113 Mar
36
38
37
*2334 37 *2334 37 *25
36
38
30 Bush Term Bidga gu pref- _100 1214 July 12 85 Jan 7
37
*36
34 May
12july 5
17/4Sept 8
I% Feb
118 118
118 118 *11/3 114
400 Butte & Superior Mini/0, _10
11s 1% *118 14
*118 114
•72 1
*72 1
2/
%
1 Dec
2 Sept 1
234 July
12 Apr 5
_5
*78 1
*78 1
*1
I%
100 Butte Copper & Z1, _
3 Dec 2058 Feb
Pawn 10 • 578Sept 8
.
No nor
Butterick Co
*212 312 *212 312 *212 35* *212 35* *212 234 *212 3
1078 Dec 893* Feb
7 May 18 2458Sept
No par
1434 1312 1312 1234 13% 1214 123* 1314 14
*14
4,200 Byers Co(A Ml
141 15
68 Oct 10878 Feb
100 3514May 23 69 Sept
*4314 58 •45 80 *45
Preferred
60
80 *45
*1314 80 *4314 59
97
8 Dec 53 Feb
114June 1 19 Sept
*9
10
*912 9%
600 California Packing--No par
914 10
*812 9
98 *912 10
% Oct
.88
12
12
.38
.38
12
I% Mar
118Sept 1
12
12
58
*12
88
18June 17
.412
10
200 Callahan Zino-Lead
3 Dec 1118 Feb
778 Sept
112May 27
3% 33*
318 314 2,400 Calumet & Hecla Cons Cop_25
3% 318
3%
338 35*
3% 338
31
534 Dec 183* Mar
9% Aug 2
2121une 1
418 418 *3
512
512
200 Campbell W & C Fdy--No par
*3
512 *3
4
4
*3
512
103* Dec 45 June
6 June 2 15 Sept
8% 9
9
914
912 958
4.984 10
818 8%
8% 93* 2,800 Canada Dry Ginger Ale No par
17 Jan 25 Mar
No par 1018June 2 23348ept
1812 *1534 1812 1534 1534 1512 1512 *159* 19 *153* 19
400 Cannon Mills
*16
4% Dec 18 Feb
91/Sept
218 Apr 8
*5
8
6
8
8% *5
*8
7
*6
7
300 Capital Adminis Cl A__ _No par
58 *5
24 Dec 3838 Feb
*22
28
*22
26
50 19 June 16 32 Aug 25
26
*22
28 *22
*22
26
28
Preferred A
*22
100 1834June 9 6534Sept 3 3314 Oct 13118 Feb
3714 88,900 Case (1 It Co
341* 383* 3134 353* 34
413* 377g 39% 3718 39
39
53 Sept 110 Mar
52 *53
55
*50
55
55
55 55 *50
Preferred certificates--100 30 May 17 75 Jan 12
20
65 *51
*51
1014 Dec 52% Feb
8
4.712 7%
438June 2 15 Jal 18
8
*738 8
734 734 2.200 Caterpillar Tractor---No par
712 712
712 7%
23* 1)ec 18 Feb
114June 21 1238 Sept 8
73* 75*
834 7
7
7
8
734 7% *87/3 755
912 10,100 Celanese Corp of Am__No par
*113
218 Dec 14% Mar
18
Jan
7
2
Aug
10
*118
134
35*
No
par
2
*112
2
*112
2
*112 2
*112 2
Celotex Corp
.34 1
158 Dec 1334 Mar
34 Aug 11
214 Feb 29
*34 1
No par
Certificates
*34 114
100
*St 1
%
%
*14 1
23* 25-8
73* Dec 3734 Mar
712 Mar 15
134June 17
100
2,2 3
Preferred
*212 314 *212 314 *212 314
*212 314
130
11 Dec 25% July
738June 2 201/8ep1 8
*1458 15
*141 15
15
1434 1512 14% 1434 15
*1514 16
900 Central Aguirre Asso-No par
37
21 Jan
814 Sept
4:312 a% *312 378 *358 37
•314 37
238June 2
814 Jan 9
*314 37
3%
100 Century Ribbon Mills_No par
50 May 90 Sept
100 60 July 11 85 Jan 23
1333
75
84 84 *83
75
75 *63
Preferred
75
75 *83
*83
10
97 Sept 3018 Feb
73
312Juae 2 1512Sept 8
7
812 7
834 73*
8
8
8
8
8
814
4,400 Cerro de Pasco Copper.No par
7% Mar
214 Jan
I May 26
•112 214 *112 214 *112 214 *112 214 *112 214 *112 214
38 Feb 17
Certain-Teed Products_No par
11
Jan 35 Aug
7 Oct 28 1858 Aug 23
100
*7
9% *7
9
912
9% *7
912 *7
*7
912 *7
7% preferred
2518 Dec 373* Feb
1112 11
1112 1112
11
No par 11 Oct 13 2812 Feb 19
1118 11
*1114 117 *1114 1178 *11
400 CRY Ice & Fuel
8312 Dec 90 Apr
52 *48% 52
100 44% Nov 2 88 Jan 5
55
4418 4418 4912 4912 *48
Preferred
120
4934 4934 50
2838 27 *28
5 1812 Aug 19 3018 Sept 9
27
27
2512 25
26
28 *25
25
25
1,000 Checker Cab Mfg Corp
13% Dec 5418 Feb
478June 28 s2034Sep1 8
1334 14
1178 1334 1134 1212 11% 1312 5,400 Chesapeake Corp -__No par
1434 1518 1458 141
4% 4%
4
438
4
318 Oct 1518 Feb
.37
834 Jan 22
I May 25
*312 35*
33* 4
33* 4
1,000 Chicago Pneumat Tool_No par
838 Dec 35 Feb
212June 17 12'4Sept9
8743 8% *712 878 *8
No par
8
8
8
8
812
9
Cony preferred
*8
500
8 Sept 23 Jan
14 Mar 12
812July I
714 713
712 712
758 758
*738 9
8
8
*8
9
180 Chleago Yellow Cab_ _No par
8 Dec 12% Mar
5 June 10 1212Sept 7
10
Chickasha Cotton 011
*834 918 *834 918 *834 918 *834 918 *834 918 *834 91
5% Dec 338 Feb
8 Sept 10
412 412 1,000 Chulds Co
314 4
112June23
312 342 *312 412
*312 412 *312 4
No par
1134 Oct 2534 Mar
13% 1418 1318 1418 13
5 June 2 2134Sept 8
14
13% 145
No par
123* 1338 1318 141 63,800 Chrysler Corti
43 Feb
*94 1
*34 1
% Dec
218 Jan 14
14July 6
No par
% 1
1,100 City Stores
*34 1
*84 1
*34 I
67g
812 Dec 22% Mar
31* July 12
*8
7
*6
7
834 Jan 7
*8
7
*8
7
No par
*0
8% *6
Clark Equipment
34%
Feb
15
Dec
Mar
5
22
10
Apr
14
17 *12
par
17
*12
17 *12
No
15
*10
1314 *10
13
13
100 Cluett Peabody & Co
92 Dec 105 July
*90 100 *90 100 *90 100 *90 100 *90 100
100 90 June 1 98 Feb 15
90
90
Preferred
90
971 Oct 170 Feb
9112 9112 89
94
9214 93
9434 9434 *93
9012 8934 91
3.000 Coca-Cola Co (The)---No par 74111July 11 120 Mar 8
*4712 478 *4718 4778 471 4718 4712 4713 4712 471 *4712 477
No par 4158July 9 50 Mar 22 4538 Dec 531 June
Class A
500
24 Dec 5012 Mar
1314 1314 1,70(1 Colgate-Palmolive-Feet No par 11 June 30 3118Mar 9
1312 1334 13% 1312 13
*1312 14
1318 12% 13
79% Dec 10418 Sept
*8314 85
*8314 85 *8314 84
100 85 June 1 95 Mar 11
85
300 8% preferred
8314 8314 84
*8314 84
812 Dec 1718June
*434 514 *5
234May 31 107* Mar 7
*458 512 1,200 ColUns & Allman
412 41
43* 5
514
No par
5
5
68 Dec 95 Aug
*5214 7018 *5214 7018 *5214 70% *5214 7018 *5214 7018 *5214 701
Non-voting preferred .100 55 June 9 80 Mar 17
71:June 1012 Nov
12
*9
12
*10
12 *10
9 Jan 11 1212 Oct 14
*9
12
*9
12
*9
12
Colonial Beacon Oil Co_No par
7% 714
7
812 Dec 1912 June
7
7
273Ju1y 1 1478Sep1 3
6
8
8
6
812
7
6
1.000 Colorado Fuel & Iron No par
2712 28
32 Dec 1113* Feb
2434 2512 7,200 Columbian Carbon vie No par 1312MaY 31 41% Max 9
2818 2878 2514 2512 2318 25
23
24
4%May 9 147 Aug 27
400 Columb Pict Corp v t o_No par
*812 9
*812 9
9
9
932 95*
912 912
*93s 934
1218 13
1234 13
134 135
1112 1258 1034 1134 1114 1284 29,200 Columbia Gas & Elea-No par
113* Dec 453* Mar
414June 2 21 Sept 8
721g Dec 10912 Mar
*6812 70 *88% 70 *67% 895* 677 87,
*Ms 70
100 40 Apr 8 7978 Aug 30
Preferred series A
68
8 68
200
47
47
518 *434 512
*478 514 *47
8 Sept 2314 Feb
378June 2 11 Mar 5
4% 47
5
5
400 Commercial Credit.---No par
19% Dec 3578 Feb
*20
251 *21
2418 25
251
50 1114 July 19 23 Sept 2
251 2515 1,100
25
25
2412 25
Class A
•1812 19
15 Oct 24% July
*181 19
19
19
181 1812 1812 181 *1812 19
25 1012June 14 21 Sept 3
Preferred B
200
52 Dec 92 Sept
72
72
72
72
*72
85
75
75
85
72
72 *72
150 6% first preferred-100 40 June 7 75 Nov 4
1518 Sept 34 Mar
2212 221 *2112 2218 2114 2112 21
20% 21
20
21
21
2,300 Comm Invest Trust---No par 1078June 2 2718Mar 3
60 Dec 90 Jan
*7812 81
No par 551/June 2 81 Sept 8
7712 773* *77% 81
Cony preferred
200
*778 8112 *7758 8112 *7758 81
94 Dec 108 Aug
98% 9813
*100 102 *100 102 *100 102 *100 102 100 100
100 88 June 3 101 Oct 17
BM% 1st preferred
30
858 Dec 2112 Feb
9% 912
312May 28 13345ept 8
9
9%
812 91 13,600 Commercial Solvents-No par
838 84
878 9
812 9
3 Dec 12 Feb
5% Aug 29
3
3
278 3
234 27 27,500 CommonwIth & Sou__ _No par
234 27
278 3
2% 3
158June 2
48 Dec 10055 Mar
47
473 *47% 491
5018 5018 •4934 51
4912 50
1,400
$8 preferred series___No par 2738June 2 8812 Mar 11
498 497
10 Dec 3414 Feb
*818 1134 *818 114 *818 1114 *818 103
5 May 25 12 Sept 8
*818 101
*818 101
Conde Nast Publica'ns_No par
878 Jan 14% Aug
914
912 934
9
10
95* 938
812June 2 1214Sep8 7
3,200 Congoieum-Nalm Ine_No par
9
91
9
912 93
834 Dec 3034 Mar
11
Sept
8
4
May
28
No
par
*58
6
6
6
6
*512 788 *513 788 *618 738
7%
200 Congress agar
4.5
712 *5
7% 4:5
712•_71 • _ 712 • _ _ 712
20 Sept 3734 June
434 Aug 13 24% Jan 8
No pa
Consolidated Cigar
44
45 *43
45
*4312 45
4312 43% 40.18 42
*iiT2 44
100 17 June 2 80 Mar 7 42 Dec 73 Mar
150 Prior preferred
314
Panne 15 Feb
*3
312 *3
3
318
3
3
*3
538 Jan 11
1 June 1
1
*3
314
3
400 Congo'Film Indus
71g Oct 18% Feb
7
7
712 712
878 7
7% 71
234June 14 1134 Mar 7
No par
714 1,200
*7
712 *7
Preferred
581a 5713 5518 5788 53
5712 587
No par 8118June 2 8834 Mar 8 57% Dee 109% Mar
5714 49,800 Consolidated Gas Co
56'3 522 538 55
88 Dec s107 July
9434 9434 9434 9434 *9458 95
9518 95'2 95
No par 7212June 2 93% Sept 29
1,200
95
9514 95
Preferred
47
5
*47
5
5
5
812 Dec 15% Mar
434 43
412 Nov 3 1078 Jan 13
412 48
434 434 2,200 Consol Laundries Corp_No par
81
834 834
618 834
418 Dec 157 Feb
812
9 Aug 11
4 June I
818 838 28,300 Canso'011 Corp
6
818
64 614
No par
*94
100 *92 100 *92 100 *94 100 *94 100
*94 100
100 79 Feb 6 101 Sept 8 84 Dec 103 Mar
8% preferred
12
12
52
12
•12
58
12
1
134 Mar
13* Aug 30
4mar 22
14 Jan
12
12
58
12 1.400 Consolidated Textile _No par
1% 112 *1% 112 *I
112 *1
78 Dec
21j Feb 19
8% Jan
11
1
1
%June 18
*1
--20
112
200 Container Corp claesA
*12
12
34
3 Jan
12
% Dec
*12
34
118 Jan 18
%May 4
*12
3
par
*12
34
No
*12
3
4
Class
700
B
43
434 434 *418 43
*434 518
*4
418 Dec 30 Feb
4
4
8 Sept 7
418 418
275May 81
400 Continental Bak Maas A No par
12 Apr 7
*84
78
*58
78
*34
7/1
18 Dec
*34
388 Feb
128Sept 9
34
78
*55
34
Class B
No par
78
100
*3714 3912 *3712 3912 3712 37:2 3712 371 *3738 3818 *37% 3914
100 247sJune 2 4734 Mar 6 40 Sept 7712 Feb
500
Preferred
3284 3312 33
3314 33134 3214 3114 3255 3112 33
32
33 11,800 Continental Can Inc--_No par 175sJune 27 41 Mar 8 30% Dec 62$4 Mar
48
4
*458
.478 5
434 5
5
5
412 5
*412 5
312 Dec 1878 Feb
812Sep8 7
3 Apr 6
300 Cont'l Diamond Fibre_No pa
143 1453 1412 1413 137 14% 135 15
•1412 1512 *1413 15
1818 Dec 51% Feb
3.100 Continental Insuranoe--2.5
834May 25 251 Aug 23
218
2
2
2
2
2
2
2
2:8 218
17
2
418 Feb
I Dec
24
334
Sept
58May
27
Motors___No
pa
4,000
Continental
574 6
534 57
558 51j
5i2 55
512 534
552 572 8.200 Continental Oil of Del_No par
5 June 12 Feb
9385ept 8
33*June 2
4858 4812 4714 5012 13,800 Corn Products RetInlng_.__25 24341u1y 8 5538Sept 28
503* 518 5034 5112 485* 5012 4618 49
3814 Oct 8858 Feb
135 135 13112 132
130 13312
*130 140 •130 135 *130 135
550
100 9912June 2 140 Oct 25 118 Dec 15218 Apr
Preferred
37a 373 2,000
318 358
355 358
312 312
312 334
353 33
278 Dec 18 Feb
738Sept 9
112May 31
CotY Inc
No par
2218 23
23
24
227 24
23% 2434 8,200 Cream of Wheat etts--No par 131/June 27 2812 Oct 4
25
2558 2412 28
20 Sept 34% Mar
*33
*33, 418 33* 33*
418 *314 4% *314 38
*358 37
8% Feb
218 Dec
9
100 Crosley Radio Corp
7145e1st
214May
3
No
par
1513 1534 1518 1534 151 17
16
17
*1412 154 15
19% 8,700 Crown Cork & Seal_ _ No par z778May 31 1914 Nov 4
1334 Dec 38% Feb
25
25
25
26
255k 2534 25
257
2734 3,200
24
24
24
2218 Dec 3434 Feb
No par 1738June 2 2734 Nov 4
$2.70 preferred
*158 178
1% I% *118 I%
•152 175 *OS Pa *1% 17
878 Jan
118 Dec
3 Aug 29
12June 9
100 Crown Zellerbach v t o_No par
*1112 19 *1112 19 *1112 19 *12
*1112 19
4.1112 19
19
20 Dec 83 Feb
6 May 81 2314 Jan 14
Crucible Steel of Ametios__100
23
23
23
23
25
25
25
25
2312 2313
*23 27
Ws Dec 106 Jan
100 15 June 29 4978 Jan 14
Preferred
50
114 iii
78 115 *IA
*114 11
*114 11
4.114 11
57 Jan
%June 8
112 2,300 Cuba Co (The)
312Sept 8
78 Dee
No pa
*11
113 11
118 liz
*158 2
2
154 13
58 Mar
37 Aug 31
11
1 Dec
2
seMay 25
900 Cuban-American Sugar.-10
*1()
*10
12
12
12 *10
12 *10
*10
12
12
8 Dec 35 Jan
312May 28 28 Aug 31
100
*10
Preferred
*2714 29's 28 28 *27 29 *2712 28
*2714 30
29
50 20 May 26 3512 Mar 9 z29 Oct 487 Mar
200 Cudahy Packing
29
14
12
128 12
1212 13 *1212 131 *12
•18
14
20 Dec 100 Feb
12
7 June 29 31 Jan 15
1,000 Curtis Pub Co (The)--No par
*56
81
82
57
57 *.-- 61
*57
70 Dec 1185 Mar
*45
No par 47 June 1 88 Jan 14
100
130
Preferred
*57 81
218
57 Feb
2s
2
218
134
1 Dec
2
2
134 2 29,400 Curtiss-Wright
314Sept 22
%May 5
1
2
2
2'
314 at
318 3's
3
3
318
318 31
11
/
4 Dec
434Sept 8
3
8% Mar
118 Max 28
311; 311/ 3,300
1
Class A
57
*8
734 *8
7 Dec 41 Jan
6
6
7
*8
73
.46
73
318May 28 12 Sept 6
8
300 Cutler-Hammer Ino-No par
*238 3t2 *232 212 *232 312 *232 312
*23* 31
214 Oct 28
5
734Sept 9
Davega Stores Corp
.123* 31
35
38
353 334
314 Dec 23 Feb
9% Sept 8
312 35*
1 May 26
3,2 35*
4
No par
900 Davison Chemical
*334 4144
*112
3
*112
3
*118
3
3
158 Sept 1212 Jan
18*May 25
*118
3
*1%
1
June
30
Debenham
Securities
3
•112
1358 Dec 22 Jan
•9
8% 9
912
9
9
•9
912
8
9
9
014June 29 151 Jan 15
20
878 1.900 Deere & Co Prat
7713 7712 77
7942 7912 *77 82 *7712 78
78 *75
400 Detroit Edison
80
100 54 July 8 122 Jan 14 11014 Dec 195 Feb
818 Dec 191* Feb
11312 *12
1812 1214 1318 1212 12% *1212 15
7 May 28 1834 Oct 20
300 Devoe & Reynolds A-_No par
•10
1812 *10
177 1814 18
178 177
1888 178 1734 3.100 Diamond Match
105* Dec 23 Mar
No par 12 Apr 9 19/8Sept 8
*17% 18 *1758 18
•247
2
2512
2512
*25
*247
2512
2512
Dec 281s Aug
25%
253
Sept
23
8
•247
191±
28
2012May
13
300
preferred___25
8
participating
:
*2478 251
1118 1112 11
1113 1118 11% 1134 12
858 Oct z13% Mar
718 Jan 4 1214 Sept 18
7,500 Dome Mines Ltd
No par
114 II% 11% 113*
1534 157 *15
15
15
11 Oct 24 Apr
157
15 8 1538 *1514 18 *154 18
700 Dominion Stores Ltd No par 1114June 2 1812Sept 2
93 1012 103e 1178 8,500 Douglas Aircraft Co Inc No par
10% 1114
778 Dec 2114 June
5 June 2 185/Sept 21
*1178 1212 11% 1134 1118 1114 30
347 60,100 Drug Inc
34 33
3138 3212 33
4234 Oct 7834 Mar
2934 30% 291k 3012
No par 23 May 31 57 Feb 13
3012 32
814 Mar
112 Dec
312Sept 6
34July 25
Dunhill International .No par
4:114 2% *114 214 *114 24 *114 214 *114 214 *114 214
•Bid and asked prices. no sales on this day. z Ez-dIvIdend.
_to
3124
New York Stock Record-Continued-Page 4
1-or FOR S ,LES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE FOURTH PAGE PRECEDING.
PER SHARE
PER SHARE
Sales
STOCKS
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Range for Previous
Range for Year 1932
for
NEW YORK STOCK
Year 1931.
On basis of 100-share lois.
the
Thursday
EXCHANGE.
Friday
Wednesday
Tuesday
Monday
Saturday
Highest
Lowest
Week.
Highest
Lowest
Nov. 4.
Nov. 3.
Nov. 2.
Nov. 1.
Oct. 31.
Oct. 29.
$ Per share $ per share Shares Indus. & Mandl. (Con.) Par $ per share t per share S per share $ per share
Dupian SUk
512June 1 15 Be t 23
10 Sept 1454 Feb
*1212 15
No par
*1212 15
240 Duquesne Light 1st pref--.100 87 May 31 98188ept 23
92% Dec 10712 Aug
9614 9818
98
98
*312 4
200 Eastern Rolling Mills No par
1 June 1
212 Dec 1314 Mar
612Bept 9
4
*3
7,500 Eastman Kodak (N J).No par 3514 Jay 8 8734 Jan 14
77 Dec 18554 Feb
4714 4838 483 51
15
8% cum preferred
100 99 Jan 22 125 Oct 18 103 Dec 135 Sept
11234 114 *11212 120
538 Dec 21 Mar
978Sept 7
3 June 2)
No par
538 538 1,800 Eaton Mfg Co
518 518
65,400 El du Pont de Nemours--__20 22 July 19 5934 Feb 19
50 Dec 107 Mar
3118 3214 3178 34
4June
8
Dec 12434 Aug
9812
2
non-voting
94
983
deb
10512
1,200
Aug
21,
6%
80
3
100
983
8
98
200 Eitingon &Mild
218Sept 12
18June 17
% Dec II% Feb
No par
34
52
72
*34
*7
9
612% cony let pref
9
214May 9 1212 Jan 6
718 Dec 69 Feb
*7
100
1634 9,000 Eleo Auto-Llte (The)--No par
812June 1 3234Mar 7
20 Oct 7438 Mar
1512 1534 16
Preferred
94 Dec 110 Jan
100 61 June 1 10014 Feb 16
*8114 8734 *8114 874
412 July
34 Dec
400 Electrtc Boat
1
*1
118
212 Jan 6
1
%June 22
3
978 July
134 2,300 Eiec & Mus Ind Am shares _
134 "158
212 Sept
4 Jan 8
158
%June 30
734 17,600 Electrus Power dc Light No par
234July 1 16 Sept 8
9 Dee 6034 Feb
7
6% 7
Mar
600
Preferred
2212
9
10818
64
par
Li
10
41
3
2212
4July
Dec
22
No
Jan
2212
1912 1,300
36 preferred
878July 8 5512 Jan 14
No par
32 Dec 9814 Mar
1612 1612 18
*2212 237s 1,400 Elm Storage Battery _No par
24
1258June 2 3314 Mar 7
23 Dec 66 Mar
23
•18
28
.18
38
is Dec
Elk Horn Coal Corp _No par
ls Jan 13
114 Feb
34 Aug 31
31
500 Endicott-Johnson Corp----50 16 July 7 37148ep1 8
3178 31
2312 Dec 4588 Sept
32
*30
*29
*32
32
3434 *29
29
30
100
Preferred
100 98 May 31 10714 Mar 17 298% Dec 115 Aug
*10114 . __
*103 10518 103 10518 104 104 *10114 103 *10114
300 Engineers Public BeryNo par
4 June 2 25 Feb 16
*712 -9
_-8
15 Dec 49 Mar
8
8
*5
9
*8
9
912 "8
*8
200
$5 cony preferred--- _No par 16 July 6 51 Feb 23
3214 3214
40
533
42 Dec 87 Jan
35
*33
36
45
35
*33
40
*33
100
35)2 preferred ____No par
18 July 7 57 Mar 16
40
42 Dec 91 Mar
*3514 3818 3514 3514 *34
*3514 40
*354 4412 •3514 40
100 Equitable Office Bldg--No par 12 June 27 19 Jan 4
14
1312 *13
1818 Oct 3538 Jan
*1312 14
•1312 14
*13
14
1312 *13
14
2 June 9
714 Mar 29
*412 514 1,300 Eureka Vacuum Clean_No par
412 5
*412 5
314 Dec 1254 Mar
*412 5
*412 5
*412 5
Evans
Products
Co
200
26
*1
112
1
6
1
12May
852 Feb
21*Sept 8
138
1
1
138 •1
.1
138 *1
1 Dec
Jan
10 Exchange Buffet Corp_No par
934 Jan 30 1154 Jan 11
104
1034 *10
10 Dec 25
1034 *10
•10
10
*10
1034 *10
1034 10
Fairbanks
Sept
Co
9
25
1
3 Mar
15
Sept
13
8
4Sept
13
13,
*3
3
12
*3
8
13
4
.
3ii
*32 Ps
*32 112
*33 112
Preferred
100
1 June 30
*112 5
4 Aug 11
•112 5
2 Dec 13 June
*112 5
*112 5
*112 5
*112 5
400 Faribanks Morse & Co-No par
2114July 22
3
3
Ilis Aug 29
318
3
312 Dec 2938 Mar
3
3
*312 412 *312 4% *312 478
Preferred
100 15 July 26 4734Mar 8
*103, 14
*1058 14
*10% 14
40 Dec 1098 Feb
•10% 134 "10% 1334 *10% 1334
-No par
*28 114
%June 13
.28 114
200 Fashion Park Assoc_
.58
114
58
58
88
6% Feb
*12
82
*12
178Sept 10
1 Dec
15
91s Apr 20 22 Jan 25 21512 Dec 497 Feb
....100 Federal Light & Tree
912 912
*912 14
*9% 13
*912 11
*912 13
*912 13
10
Preferred
No par 30 June 16 64 Mar 11
*401a 52
*4018 50
*4018 52
48 Dec 92 Mar
*4018 50
4012 4012 .40,8 52
35 Feb 6
112May 26
100 Federal Motor Truck No par
112 112 *112 172
178
752 Feb
*112 238 *112 Ds *112 178 •112
21e Dec
200 Federal Screw Works No par
I2May 25
34
238 Aug 12
*12
34
lie Dec 15% Feb
34
34
*12
*%
72
*12
78
%
%
3 May 31 1038 Mar 16
37
37
37
334 334 1,300 Federal 55, ater Serv A _ _No par
334
32
•4
4
412
334 334
3 Dec 30 Jan
612June 17 1534Sept 3
200 Federated Dept Stores_No par
*10
12
*10
12
10% Dec 2718 Aug
1014 1014 "1018 1334
*10
12
MO
12
8 May 28 2734 Jan 15
3,300 Fldel Phen Fire Ins N Y_2.50
1312 14
1414 1414 14
1312 1312 1314 14
14
20 Dec 5614 Feb
14
14
Panne 2
Fifth Ave Bus Sec Corp.No par
812 Mar 8
"612 8
9 Feb
"612 8
.6% 8
5% Oct
"612 8
*62 8
*612 8
7 Mar 31 1612Sept 6
No par
Filene's Sons
1612 *9
1612
1612 *9
*9
161
1514 Oct 24 Aug
*912 1612 *9% 1612 *9
100
Preferred
75
June
24
100
94
Jan 18
*85 100 .85
*85 100
*85 100
8514 Feb 104 May
*85 100
*85 100
1,000 Firestone Tire & Rubber--_10 1012June 14 1878 Aug 30
12
12
12
1278 Dee 20 June
12
.1134 12
*12
1212 12
1134 1172 12
1,200
100 45 July 7 68 Aug 30
Preferred series A
57
4958 Dec 661s Juno
551 *5512 6012 5512 5512 5514 5512 56
*55% 6012 55
4812 2,900 First National Stores--No par 35 July 8 54148ept 3
48
48
47
Jan 63 Aug
41
49
4914 4914 4814 49
4914 4714 49
18 Feb 1
No par
% Aug 30
18 3,700 Fisk Rubber
78 Feb
15
14
*18
14 Sept
18
18
18
'8
14
14
15
14
100
14 Feb 2
21 Aug 30
let preferred
3,
12 1,500
3,
3 Feb
*38
12 Sept
38
is
*14
38
14
38
38
32
18 Oct 10
*14
12
300
100
12
*38
lgt pref convertible
*33
12
1
2 Aug 30
*28
Is
1
312 Mar
12 Sept
.7% '
9 .7 9 .7 9 .7 9
7 7 +.6
414 Apr 29 10 Feb 20
718
200 Florsheim Shoe class A_No par
77 Dec 3512 Jan
50
100 63 July 19 8212 Apr 14
6% preferred
70
70
*70
85
80
85
80 Dec 10212 Mar
*70
85
*70
*70
*70
85
2 June 2
434
300 Follansbee Bros__ . No par
*3
34 314
434 *3% 6
3
3
814SePt 6
*3
434 *3
4 Dec 194 Feb
3 May 25 1578Sept 8
No par
93, •9
1,000 Foster-Wheeler
7
7
712
7
8 Dec 6412 Feb
93, *712 9
9
9'2
*8
48
200 Foundation Co
714 Au
Mar
3
3
*3
312
314 31
*3
*314 4
*34 4
114J
ju
an
ly
e 1 223,8epg
18% 1,700 Fourth Nat Invest w w No pa1r 10
Sept
18
18
1714 18
t 26
7 215
1814 1814 18
1754 177a
•1812 181
252
11 DDDec316242
57 Aug 27
4,500 Fox Film class A
5
1 July 8
212 3
*212 234
2% 212
212 23
212 224
2% 23,
212 Dec 3832 Feb
No par 10 May 31 2678Bept 3
2112 244 17,600 Freeport Texas Co
2234 2034 2238 2034 21
2314 2358 2278 2318 22
1314 Oct 4314 Mar
218May 16 26 Oct 24
____
300 Fuller (G A) prior pref_No par
*2418 30
*21
__ *24
23
24
__
24
24
30 Dec 85 Apr
No par
3 June 7 32 Feb 9
10
36 2d pref
10
*7
•2412*712 14
*714 10
*712 -14
11
*712 14
11
20 Dec 65 Feb
14June 11
100 Gabriel Co (The) d A No par
68 Feb
214 214
3128ept 28
•134 214 *134 24 *134 214 *134 214 *14 2
I Dec
No par
534May 31 17 Jan 11
30 Gamewell Co(The)
9% 912 *81 1.01±
914 914 *914 1012 *912 1012
*94 1012
15 Dec 60 Feb
':June 9
51:Sept 9
312 312 3,100 Can Amer Investors-No par
318 318
314 312
778 Mar
312 312
2% Dec
34 314
312 3'x
No par 26 June 9 71 Sept 24
100
Preferred
57
"46
54
57
54
64
*46
•54
64
64
*54
*54
45 Dec 88 Mar
912June 27 3534 Mar 8
6,900 Gen Amer Tank Car
No par
16
15
18
161 *16
163, 1558 1534 1412 154 143$ 147
28 Dec 73% Feb
No par
73
434June 8 1512 Jan 15
7% 1,000 General Asphalt
7
*672 712
734 734 *6%
64 6% *612 634
952 Sept 47 mar
5 1012June 2 1958Mar 4
2,100 General Baking
13
1312 1332 1312 1312 1332 13
*131g 1332 13
1318 13
912 Dec 25% Apr
90
par
June
2
No
preferred
115
$8
106 Sept 15
*100 115 *100 115 *100 115 *100 115 *100 115 *100
95 Dec 114 Mar
5
%June 2
500 General Bronze
3
5 Aug 24
3
234 234
3
*212 3
3
.212 3% *234 314
184 Dec
912 Feb
14May 31
No par
300 General Cable
*2
3
212 2% *2
5 Sept 6
3
212 21
*212 3
*24 3
112 Dec 13 Feb
No par
112May 14 11 12Sept 8
*42
100
Class A
5
*458 614 *4% 5
614 *458 614 *45
5
614
23 Dec 2512 Feb
334June 1 2534Seps 2
80
100
11
10
7% aura preferred
.59
10
*11
15
*1012 15
15
1014 11
*11
II% Dec 65 Jan
3254
200 General Cigar Ins
No par 20 June 1 38% Mar 10
*29% 3278 *29% 327 •30
3112 30% 3112 *3118 3278 *31
25 Oct 4812 Feb
100 75 June 9 105 Oct 10
7% preferred
*10112 105 *10112 105 *10112 105 •101% 105 *100 105 *100 105
93 Dec 117 Sept
No par
812May 31 2618 Jan 14 22272 Dec 5434 Feb
57,100 Generai Electric
15% 1512 1518 1538 1414 1558 141 14% 147 16
1538 157
10 1032July 1
1178Sep1 8
Special
1112 11% 1112 1158 1112 1158 11% 11% 11'2 i188 1l'2 116, 5,900
1078 Dec 1218 Jan
1958May 31 4012 Mar 9
No par
2778 12,200 General Foods
2814 2638 273, 27
28
2858 27
2818 281
2814 Dec 56 Apr
287 29
38July 14
11
1
118
1
118 1,700 Oen'l Gas & Elea A.__ _No par
114
118
234 Feb 17
114
*118
•I%
114 A118
114 Dec
8% Feb
3 June 28 2484 Jan 14
No par
500
Cony pref series A
1312 1312 13% 1312 1252 1312 *1314 15
15
*12% 15
*13
1454 Dec 7654 Mar
No par • 514July 14 30 Aug 24
24
220
24
25
37 pref class A
2472 2478 24% 24% 24
25
2534 *24
*24
39% Dec 90 Feb
No par
514July 14 40 Feb 15
20
*33
34
33
$8 pref class A
33
*33
34
43
*33
33
33
34
*33
30 Oct 92 Mar
Gen Hal Ed son Elm)Corp_- 1818 Apr 29 25 Mar 11
_ *2234 _ - *2234 23 "2234 - - --'2234___ *2234 __ _ *2234
2038 Dec 3554 Mar
No par 28 May 28 441213ept 8
41
-4114
41
1,400 General Mills
-4112 41
2918 Des 50 Mar
41 -4-1-18 41
4118 -4118 •4118 -42
100 76 July 15 9518 Oct 19
500
95
9158 *90
Preferred
91
*91% 95
*9112 95
*9112 95
*9214 95
85 Dec 10014 Sept
10
758June 30 2458 Jan 14
1178 1238 1214 1314 115,500 General Motors Corp •
121
13
1334 12% 1278 1232 1234 12
2158 Dec 48 Mar
5614July
par
9 8714 Mar 12
500
No
35 preferred
7612 7612 7612 7512 7512
74
7412 7412 7414 7414 *75
74
7954 Dec 103% July
4 June 28
9 Feb 13
400 Gen Outdoor Ady A-. No par
534
*5
Jan
6
6% as
*61
6% 612 *5
63 *13% 612
54 Oct 28
_ -_ No par
2114July 15
300
Commot.
4 Jan 5
*258 3
.2513 3
*258 3
278 3
*278 3
•278 3
314 Oct 1014 Feb
53
8
212July 1 14 Jan 28
110 General Printing Ink -No par
51
4% 4% *4%
5% 512 *912 514
51g
*4% 5%
1014 Oct 31 Mar
No par 2712June 27 60 Feb 18
230
$6 preferred
*5512 59
5634 57
Jan
4312 Sept 70
*5512 5912 *5512 5912 5912 5912 5934 60
1 May 4
No par
718 Aug 29
•318 334 1,000 Gen Public, Serytee
318 31
258 Dec 23 Feb
318 3%
388 3%
314
314 Ps *314
No par
618July 11 2855 Jan 14
700 Gen Hallway Sutnal
1212 1212 1234 1234
1234 13
*1234 13
1312 137 *1234 13
21 Dec 8418 Mar
100 65 July 30 90 Jan 13
6% preferred
70
*60
*60
70
70
70
*60
*60
70 •60
70
*60
81 Dec 114 Mar
14May 19
84 Des
600 Gen Realty dr UtIlltles_No par
214 Sept 2
%
*38
1
912 Mar
*78
1
%
1
1
%
1
1
72
5 June 10 1634Sept 14
No par
14
$6 preferred
*10
15
•10
14
*11
1418 •10
1312 *10
1418 *10
1358 Dec 74% Mar
par
Refractories_
_
_No
Patine
300
29
6
7
2
General
*612
67
8
15
3
8
*552
558 618 *514 6s
6
Sept
4.6% 6%
6
7
12 Dec 5732 Feb
No
par
8 Mar 28 27 Aug 29
100 Can Steel Castings pref
20
•16
16
16
20
•I6
20
*16
20
*16
20
•16
14 Dee 65 Apr
1654 1612 1718 16,400 Gillette Safety Rasor No par 1038 Jan 5 2414 Mar 3
1718 18
17
1754 17
1754 1618 1714 16
914 Oct 3814 May
No par 45 June 28 7212 Aug 22
300
Cony preferred
6934
68
*66
69
69
*66
*65% 69
*6518 69
*6518 69
45 Dec 7678 May
38 Aug 29
%June 24
No par
100 Gimbel Brothers
*2
2% *2
*112 23$ •112 2
2
214 *2
24
2
154 Dec
778 Feb
100
8 May 31 31 Jan 13
Preferred
200
•878 914
•814 1478
.8
15
8
8
814 814 *812 14
2618 Dec 52 July
318June 3 1058Bept 7
No par
538 2,300 Glidden Co (The)
*512 5%
512
514
512 512
5%
5
5
5%
5
412 Oct164 Feb
100 35 Apr 28 76 Sept 14
90
Prior preferred
68
*66
67
69
69
*68
6818 67
69
*68
69
68
40 Dec 82 Aug
515 518
258May 14
No par
8 Aug 30
2,900 Cobol(Adolf)
434 5
434 5
5
5
5
5
5
512
358 Oct
978 Mar
814May 31 2058Sept 8
1534 8,100 Gold Dust Corp v t e--.No par
1612 1678 1618 1612 1558 16
1518 1578 1434 1532 15
1412 Dec 4218 Mar
No par 70 July 1 9812 Oct 21
preferred
tany
*9454 100
w
*95 100
*95 100
*9454 100
*90 100
*95 100
85 Dec 117'1 May
514
214May
28
par
s14
5,300 Goodrich Co (B F)
No
1238Sept 3
512 512
512 512
5%
514 512
3% Dec 2078 Feb
100
200
7 May 31 3314Sept 6
*1214 16
Preferred*1312 19
*1312 15
*13
19
1332 1312 *1212 16
10 Dec 68 Feb
512May 31 2934 AUK 30
1412 1418 1434 13% 1412 1358 1455 144 1614 10,900 Goodyear me 88 Rubb_No par
14
147 157
1334 Dec 5212 Feb
No par r1934.1une 1 694 Aug 30
4218
600
40
44
44
4218 4218 *39
44
40
let preferred_
44
40
42
Feb
35 Dec 91
714 Jan 5 8054Sept 2
No par
5,700 Gotham Silk Hose
2414 25
2212 24
24
243, 2212 227
204 2212 2012 22
354 Sept 1354 Apr
100 5014 Jan 11
70
g1
Preferred
75
70
*68
70
7012 •70
70
75
*68
75
*70
75
Oct 31
50 Jan 72 Apr
'± n
1 May 27
178 5,500 Orabam-Paige Motors_No par
458 Jan 12
15, 134
178
178
112
17s 17s
112 112
112 134
612 May
178 Sept
258June 14 11s8Seps 7
400 Granby Cons M Sm & Pr....100
514 Dec 2258 Feb
518 518
514 514
534
534 534 *518 6
518 512 *5
312June 1
700 Grand I/nlon Co tr ods_No par
954 Mar 4
438 452
*518 654 *94 612 *514 6
414 514
*514 534
7 Oct 1878 Mar
600
No par 22 June 1 3514 Mar 7
Cony pref series
3312
*3214 3312 *3214 3312 *3214 33
3214 3214 3118 3112 *31
21 Dec 46 May
No par
%June 1 17 Sept 8
Granite City Steel
*1134 15
*1134 15
*1134 1312 '1134 1318
•1154 1458 *1134 15
1154 Dec 29114 Feb
No par 1412May 28 8014 Mar 8
22
4,500 Grant (NV T)
20
2178 2178 2034 2114 1918 2012 20
2134 2154 •21
2412 Dec 42 Aug
5 June 23 1314 Jan 14
600 Ot Nor Iron Ore Prop--No Par
734 8
*734 8
752 734
734 734 *734 814 *734 8
10 Dec 2312 Apr
314
No
par
Apr
Sugar
5
*612
6% 612
12 Aug 27
638 638
65,
*612 634 *612 64
635 612 1,100 Great Western
554 Oct 1178 Jan
100 48 June 1 83 Aug 24
30
Preferred
79
79
74
74
*73
•74
*74
79
74
74
79
*74
73 Dec 9612 Jan
Is Apr 13
No par
1
118
1
1
118
118 2,800 Grigsby-GrunoW
1
1
1
118
1
2348ept 8
i's
1 Dec
654 Mar
*12
8
4
st2
52
•12
22
*12
82
*12 1
Is Mar 7
58
100 Guantanamo Sugar----No par
58
1 Sept 7
1 12 Jan
Is Dec
No par
212June 8 211813ept 22
131
*1318 14 .12
12
12
900 Gulf States Steel
10
1034 10
1012 1012 1112
4 Dec 3712 Feb
12
July
100
23
*20
3212
321
Preferred
3212 *20
•20
3212 *20
40 Oct 14
3212 *20
3212
*20
15 Dec 80 Star
25 15 May 27 23 Jan 12
Hackensack Water
*187s 2212
*1878 2212 *1878 2212 *1878 2212 *1872 2212 *1872 22
22 Dec 3012 Star
25 19 May 2T 28 Apr 28
40
2514 *25% 26
*254 26
25
.2514 26
*2514 26
7% preferred class A
*2514 26
2614 Sept 30 Apr
58July 11
2
2
No par
2
21s
414 Aug 30
178 178
134 134 3.300 Hahn Dept Stores
21s
218 218 •2
114 Dec
94 Mar
100
71s JulY 5 28 Aug 29
600
1512 1512 1512 1512 •1514 18
*1534 18
Preferred
1534 1534 *1534 18
14 Dec 6378 Mar
312Jtily 19 IN Jan 7
10
*414 5
Hall Printing
*412 3
11 Sept 1938 Mar
*414 512 *414 512 *414 5
*4% 5
100 20 Oct 27 30 Mar 7
10 Hamilton Watch pref
•20
40 •22
40
25
22
22
*20
40
40 •20
94 June 103 Jan
•20
*56
50 Hanna(M A) Co $7 pf_No par 83 May 28 70 Jan 14
60
56
*56
56
60
*56
60
56
56
67 Dec 94 Feb
60
*56
912 984 *9
924
912 10
7 May 26 18 Sept 7
912 912
900 Harbison-Walk Refrao_No par
*972 13
978 1014
1112 Dec 441, Feb
1
2
%June 22
12 "
118
•12 118
.12
12
118
*112
600 Hartman Corp class B..No par
12
758 Feb
2 Sept 6
12 Dec
11
No par
%June 27
Claes A
214 *1
214 *1
214 *1
4 Mar 8
214 *1
178 Dec 1051 Feb
214
214 *1
*1
$ per share 3 per share $ Per share $ Per share
.1212 1312 *1212 15 *1212 15 *1212 15
9518 98
97
97
97
9818 97
4
*3
*4
4
5
*3
4
378
48
504
51
5212 5112 5112 4914 50
*11312 120 •11312 120 *11312 120 *113 • 115
514
57
7
514
5
572
514 534
6
3354 3518 33
34
3214 3312 3114 3314
*9758 9934 *98
99
*9818 99
9834 9872
78
*34
78
*34
*34
78
*34
72
*7
9
9
*7
*7
9
9
*7
1738 1838 1718 1732 1632 1718 1518 1714
*8114 88
*8114 88
*8114 88 .8114 874
•1
118 *1
114
114
1
1
*1
158
158
158 158
158
158 158
158
658 712
778 8
714
818 834
778
253 25% *26
25
28
2514 2514 *22
2034 22
•2038 234 20
18
2012 18
*24
2478 24
2418 2418
2418 24
24
38
.12
*18
38
%
•12
*18
14
• Illd and asked prices: no sales on this day. s Ex-dIvidend
v Ex-rights.
New York Stock Record-Continued-Page 5
3125
rgIr FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST. SEE FIFTH PAGE PRECEDING.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Oct. 29.
Monday
Oct. 31.
Tuesday
Nov. 1.
Wednesday
Nov. 2.
Thursday
Nov. 3.
Friday
Nov. 4.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Year 1932
on buts of 100-share
Iota.
Lowest
Highest
PER SHARE
Range for Preriotu
Year 1931.
Lowest
Highest
$ per share $ per share Shares Indus. & Miscall. (Con.) Par $ per share $ per share i per share $ per share
*312 478 *312 478
Hawaiian Pineapple Co Ltd_20
312 Oct 21 10 Jan 12
814 Nov 4.24 Jan
118
114 114
4June 7
114
No par
500 Haye- Body Corp
1 Dec
3125e9t 2
8 Mar
65
65 *65
25 50 June 2 8158Sept 8
69
300 Ilelme (0 W)
60 Oct 100 Feb
*54 7
8% Jan 15
484June 8
Hercules Motors
No par
*54 7
6 Dec 18 Mar
*16
2318 *16
2318
Hercules Powder
No par 1378 Aug 4 2912Sept 9
26 Dec x58 Mar
*9012 10014*8884 10014
100 7012June 1 95 Jan 12
96 Dec 11912 Mar
87 cum preferred
5378 5378 55
55
1,100 Hershey Chocolate_ _ __No par 431z July 13 83 Mar 9
68 Dec 10384 Mar
*754 797 *78
7978
Cony preferred
No par 57 June 14 83 Mar 8
200
7012 Dec 104 Mar
*1
212 *1
184 Jan 12
14 Apr 1
Hoe (11.) 42 Co Class A_No par
212
81: Mar
13. Dec
7
7
7 Nov 3 1212 Aug ln
No par
712 784 1,500 Holland Furnace
1014 Dec 37 Feb
3 July 8 103* Mar 10
*358 512 *312 512
500 Hollander ez Sons (A) No par
514 Dec 1918 Apr
11314 152
147 152
190 110 Feb 15 152 Nov 3
81
9,800 Homestake Mining
Jan 138 Dec
2
2
1 May 25
412Sept ..
218 1,000 Houdaille-Hershey el B No par
21s
212 Dec
914 Mar
*5112 5214 52
5213 Sept 65 Mar
5214
400 Household Finance Part pf_50 4214June 3 6718 Jan 6
1318 1314 1358 1438 1,600 Houston Oil of Tex tern Mrs 100
83*May 31 28U4Sept 6
1514 Dec 6812 Feb
3
278 3
118May 4
3
538Sept 2
3 Dec 1418 Feb
Voting trust otfs new____25
2,700
5 June 2 1612 Jan 12
111/ Dec 2912 Feb
6% 6%
No par
712 712
600 Howe Sound v t o
4
418
278May 31 1158 Jan 8
414 412 5,300 Hudson Motor Car __No par
734 Oct 25 Jan
212 212
212 258 2,700 Hupp Motor Car Corp----10
538 Jan 11
112May 26
3% Oct 1318 Feb
-*73
118
*73
118
*75
118
*78
1
*73
1
%June
1
72 Dec
218Sept
6
Motocycle
--No
par
Indian
43. Feb
100
78
78
*178 2
2
2
2
2
*17
2188ep1 8
2
2
2
2
2
118 Dee
1 Apr 1
10
2,400 Indian Refining
458 Feb
2314 21
*2412 2534 23114 2314 22
2212 2212 2334 3,600 Industrial Rayon
26
718June 27 20 Sept 3 21
26
No par
Oct 86 Feb
23
2512 2338 2412 2412 27
4478Sept
il
Apr
29
294 2914 284 2918 2678 28
2584 Dec 182 Jan
No par 141
2,800 Ing•rsoll Rand-.
*1478 16
*14
14
16
*13
14
*1314 15
15
1978 Dec 71 Feb
---No par 10 June 25 2778Sept 2
*1478 16
200 Inland Steel
312 34
314 314
318 318
3
7345ept 8
*May 25
700 Inspiration Cons Copper-
@FedFRASER