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Volume 160
New
Number 4332
Copy
60 Cents a
Price
York, N. Y., Thursday, November 9, 1944
The Financial Situation
Now that the election
By A. M. SAKOLSKI
campaign is over and out of the
•
be possible for the rank and file of the people
of vital ques¬ Financial Writer Maintains That Because The Bretton Woods Agreements
tions^ the truth about which lias been beclouded by rather A Groundwork for the Link of National Currencies to Gold, the Success of
more than the usual ordinary political buncombe.
it
way,
to do
,
City College, New York
v
may
some
Have Set
fruitful thinking about a number
the Plans
Redistribution of the World's Gold Reserves—Sees Necessity of Distrib¬
Supply to other Nations, and After Analyzing the Various
worked for, years past has recently come encouragingly close Proposals for Accomplishing This, He Concludes That the Easiest and Most Effective
to exposure—the situation in China and the status of the Method Is Through American Private Equity Investments Abroad.
Requires
•
a
They might well begin in the field of international rela¬
One of the myths which has been greatly over¬ uting Part of United States
tions,'
The truth of this matter is that there is no
Chinese nation.
been
Chinese nation, and there has
for
none
a
<$>-
long while
past—rthat is, in the ordinary sense. The Chinese are dis¬
united, lacking in patriotism; as we in the western world
understand: patriotism, without very much ambition to
"modernize" their country, and in their public relations
often corrupt.
Now, that the Bretton Woods agreements, (if ratified), have set
groundwork for a universal link of national currencies to the
the
standard.
(as
indicated
in my article
gold
China and the Chinese
of
of
Aug.
17, page 684),
question
recent
years
or
dong to China.
in substantial
the western powers in earlier times have
Yet, in perfect candor, it must be said that
measure
the trouble with China is and always
It is folly to pretend that
China is,
or is on the way to becoming, a "great power."
Nor is China,
whatever her moral or abstract rights, and whatever the
outcome of the present war, likely to become and remain for
any great length of time free of exploitation from without
unless the. Chinese people themselves do something more
than they have as yet done to assure themselves of such
has been the Chinese.
freedom.
arises
while China
and India, if they play their as¬
signed roles in future world trade
and economic development, will
the
means
which
2052)
on page
obtain
metal.
situation
"
m
distinct lack
in
deliberately ignored and conveni¬
A.
distri¬
the
ently passed over at the Bretton
Sakolski
M.
agreements are
likely to have sufficient gold
equivalent to ful¬
its exchange
their
fill
required
Fund
International
quotas to the
and
to the
By EMIL SCHRAM*
Expresses Belief that Congress in
Head of New York Stock Exchange
Mind (1) the Preservation of
the System of Private Capital, (2) Danger of Subsidies Leading to Fed¬
eral Control and the Extension of Biireacracy, and (3) Balancing of the
Federal Budget as Essential to Ready Availability of Credit and An
Abundance of Venture Capital.
Points Out as Objects of Tax Reform,
the Preservation of the National Credit, the Stimulation of Taxable
Income and the Encouragement of Risk Capital.
Taxation, particularly post-war taxation, is an absorbing subject
with me.
I have spent a great deal of time in Washington in the last
two
not believe that ever
discussg
various
aspects of the
tax
question
years
There is
tax matters.
iest
we
by
think I have a.
a
have
greater
idea
to the
desirable development.
We
encour¬
before
Emil Schram
a
-
benefit
of
a
out
by
problems.
estly, in our tax
Moreover,
ple.
gratifying, indeed, to see
I do
in that
-
made
by
Mr.
the New York In¬
stitute of Finance, Oct. 2, 1944.
Schram before
we
that not
we are
fortunate
have today a Congress
only is alert to the
neces¬
sity of tax readjustment to meet
conditions, but is also
well' informed indeed as to
it should go about finding a
post-war
very
address
the
had
how
solution
to
this
(Continued
highly
on page
compli-
2058)
The confer¬
right¬
insufficient
returns, and
likely to be the condition,
even a greater degree, in most
Financial
peace
unit.
All this is clearly
..
stated in the
August 29th issue of "The Guar¬
published by the
Survey,"
anty
Guaranty Trust Company of New
York.. "Most of the. criticism that
been
brought
against
the
agreement,"- comments the Sur¬
vey, "is based on the view that it
represents an attempt to enforce
exchange stability without strik¬
ing at the causes of instability.
More
specifically, the manage¬
has
,
ment
the
of
would
Fund
be
ex-
pected to hold the exchange val¬
of members'
ues
currencies at or
but would have no
the internal policies
close to parity
control
over
their
balance
budgets, hold their
levels, follow
(Continued
on page
2056)
BABSON, PARK, MASS.—Inflation is the result of increasing
the currency or the debt of the country more rapidly than the assets
of the country.
Inflation is a form of disease which has started
from many different sources.
Note these five:
This
•
-
(1) The crudest form of inflation came from "'clipping coins."
means making them smaller or thinner.
It is the form that
,
-
.
-
*
is
still used ii.<S>————
certain
coun-
In the
(2)
of
case
Situation
Ahead
out
the
the
t
English Gold and Silver Markets.. .2055
Finished Steel Shipments by U. S.
Steel Subsidiaries in September. *2009
September War Costs
*2009
Federal Reserve September Business
Indexes
Civil
Engineering
September
Construction
...*2010
in
*2010
*2010
Ginned Prior to Oct. 1
appeared in
6, on. n««?es indicated:
available this
week.
birr issue of
'
^
.
?
is
now
being used in
the
United
W.
Roger
Babson
(3) A simi-i
be
to
week, it has the same effect
increasing the amount of cur¬
outstanding by threefold.
<
refer again to my defi¬
So long as there is an
increase
in the ' country's
food,
Let
me
nition.
clothing and shelter equal to the
increase
in
the
circulating
money,
there is nothing to fear;
but otherwise beware.
of
Today
our
is increasing
rapidly than is our supply
outstanding;
currency
food, trlothing ahd shelter.
Now Is the Time
obtained
currency and which tend
the currency already
debase
Inflation has the
(4) Inflation comes through the
use of checks, notes and
increased
form^; of municipal,
corpo¬
to Buy
same
effect
on
living costs as changing" the size
of a bushel, or changing the length
of
a
lon
issued.
other
money
lar result can
by issuing an excess of Govern¬
ment bonds, which are really a
form of
When
every
more
States.
yardstick,
measure
or
changing a gal¬
have if the
would
price per bushel, per yard or per
gallon
a
very
remains constant. This is
important factor for all
personal indebtedness. municipal official s—especially
Chiefs—to
keep
in
mind
man
atcepts your Fire
check for'1 $10,. this
(Continued on page 2060)
ration
*These items
gold re¬
This is
method
which
Weekly Carloadings,
.2063
Weekly Engineering Construction. .2061
Paperboard Industry Statistics...... 2063
Weekly Lumber Movement.
20S3
Fertilizer Association Price Index.. .2030
Weekly Electric Output.
with¬
increasing
serve,
2050
Weekly Coal and Coke Output
2061
Weekly Steel Review.,..2060
Moody's Daily Commodity Index.. .2030
Weekly Crude Oil Production
.2062
Non-Ferrous Metals Market......J... 2059
inflation.
changes hands three times as fast
rency
Trade
—
about
as
money
Trading on New York Exchanges.. .2062
NYSE Odd-Lot Trading...
.'..2062
Review.,.......v....
on
tional paper
Moody's Bond Prices and Yields.. . ,2060
Items About Banks and Trust Cos..2064
of
by
—r;———
—
inflation the same as
printing more $10 bills.
(5) Finally, a great increase in
the circulation of money brings
brings
printing addi¬
t
State
the
result if
obtained
the
of
papei
money,
Regular Featurea
Washington
Officials
Roger W. Babson Talks to Our Municipal
Page
2049
News
tNot
international
the
What Is Inflation?
same
Nov.
relationship,
without
applying
adequate measures or means for
linking internal money values to
tariffs at moderate
for
Editorial
Cotton
tions
establish permanent rem¬
the evils they seek to
eliminate.
It ostensibly provides
ing to
tries.
General
value, to which the cur¬
of all participating na¬
must have a fixed ratio of
change
rencies
affecting the true values of those
currencies.
Only when nations
GENERAL CONTENTS
Prom
exchange stabilization. It aims to
fix
a
unit of international ex¬
ly criticized as proposing merely
measures of relief, without seek¬
Commodity Prices, Domestic Index.2061
tax consciousness among our peo¬
people everywhere interesting
themselves, intelligently and earn¬
*An
talk¬
painstakingly and
various organiza¬
tions.
All of this planning, not to
mention tax paying, has had the
effect of stimulating an intelligent
worked
sound tax program.
is
am
;
have
skillfully,
going to pro¬
It
most
number of excellent tax programs,
aged. I believe
Congress
is
long,
I
sirable.
add
am very
very
a
ing, of course, about the distribu¬
tion of the burden when I say de¬
present -day
thinking
in
Washington. I
duce,
ever
of people
This is
than
much
obvious
an
number
before.
good
that I
to
were
measures
remedy it.
agreements have been
ence
this is
upon
known, is borne
ever
fairly
might
Britain and France
preat
will undoubtedly have
amounts when
much
burden, the heav¬
is that the tax
Congress
I
others.
as
supply, now possesses more than
60%.'' Russia
is
also reported
to be in a position of having an
ample- hoard, though, in view of
this country's heavy import re¬
quirements after the war, the
situation may be only temporary.
Both
positive
no
taken to
lack of
roots of the causes of the
quarter of the total gold
a
for. this, of course, and this
reason
with members
f
before in the
of this country so
attention has been focused
history
n
and
which under
should
hold
provided
which should have been
for,
many
contingencies
unpleasant
<$-
three
or
conditions
normal
Considering Post-War Taxes Will Keep in
other
edies
The United States,
Like
Conference.
Woods
the vY'rV:;'V/
monetairy- gold reserve.
of
bution
world's
about
■
now
rof~e"quilibrium
or
'
President, New York Stock Exchange
:
the war.
This situation was one of the
unsolved difficulties, which was
stabilized following
Bank.
i
■
if their currencies are to be
.
stands, there is
a
to build up larger reserves,
kept
sary
the
As the
the Bretton Woods
Post-War Taxes
H
sup¬
of
plies
The Latin-Amer¬
countries, particularly Mex¬
ico and Brazil, will find it neces¬
ican
their
needed
not
!
mm*
m
o
monetary gold.
enabled to
be
require additional supplies of
also
will
Some of the signatory nations to
(Continued
i
by
many
countries
backing,
currency
to
as
by the Nazi hordes.
Moreover, Germany and Italy, to¬
gether with their satellites, will
be almost devoid of gold for a
the
They have had a hard row to hoe for many, many
decades, and, measured by any "enlightened" standards,
there is little or no excuse for what either Japan in more
have
that
nations
smaller
the
been overrun
in the ''Chron¬
icle"
!
-
exchange up the
stabilpulling
? machinery for
uation
without
and
When
another
handwritten
..
-jt
,
THE COMMERCIAL & FINANCIAL CHRONICLE
2050
Thursday, November 9, 1944
foreign powers in the name, of tthe
An American
The Stafe
American people waS judged sole-'
Speaks
by the Administration.
The
optimism of. President,-Roosevelt
over
the program, devised by a
small group of
internationalists
and accepted at a secret conven¬
ly
"The
inspiration to work hard, to compete
strdngly with the other fellow in the same business,
has almost been destroyed.
War¬
time controls that tie up raw mate¬
rials, restrict production and limit
the distribution of goods have got
to be discontinued as rapidly as
.
.
? The)general' outlook for post-war ia adeVbetween Latin:America
and the United States is "decidedly favorable," the Guaranty Trust
•>'.
'.Coi/of-'New:y6rki revealed in
a recent survey made by the company,
which covered a number of specific poirits,; among them; branches of
production; and types of products /likely to contribute ,most to. the*
strictly excluded, is hard to • un'-<
derstand in the light of' his state¬ development of' trade between' these two»countries after the war.
The survey,/-however,
disclosed^-——.
7■ 7 -v.'. •
,
.j y> •
ment on Saturday night that "No
that' representative Latin Amer¬ customs oftheir Latin,; American
President
of the
United " States,
ican - bankers " arid: business, men markets and sources of "supply.
can make
the American contri-r
"Views concerning the need or.
bution to preserve the pdace with¬ recognized The "extreme uricertainties" with respect to interna¬ opportunity for capital investment
out the- constant, ^lert -aridl cop/
tional
relations, trade barriers, by the- United States in Latin
scions collaboration of the Amer-,
.free, enterprise, currency stabili¬ America vary considerably, but
ican people."
,■ >, 7-,
V
zation and the prospect of lasting the general opinion seems to be,
.Granting whatever good points
peace. / 7'V<''7
7:?;.
T that large opportunities -exist for
the
Dumbarton
Oaks
proposals
j(n establishing a basis for its such investment under the right
may be credited with, it must' be
Particular
stress
is
the
survey
states: conditions.
conceded that even as .".machin¬ •conclusions,
;"The. countries of Latin America laid on the desirability of local
ery" the entire program; as it
have* supplied large quantities of participation to the greatest pos¬
stands here and now, is useless;
.their/ products
With
to
the
United sible extent."
respect to
Certain elements must .be.: pres¬
States
and; other nations allied local participation, the - survey
ent to assure even the possibility
of peace. These elements are/not rigainst the Axis,, while their op¬ poiiitea out tnat ah evident pref-r,
erenee
exists
for the
"partner¬
in the plan which, the1 President portunities for purchasing foreign
goods have been limited by neces¬ ship" method whereby ownership
calls upon us to approve.
-The
wartime trade restrictions and management are more read¬
American people are not accus¬ sary
and transportation difficulties. As ily shared with local interests; :;
tomed to pay the full price;of a
It was one correspondent's belief
car
for a steering wheel and, a a, result, they have built up very
that, "the first condition to any
set of hub caps on the, promise substantial, holdings of gold and
real increase in economic activity
that the wheels, chassis and motor foreign exchange; and at the same
time have presumably accumu¬ is evidently that peace be assured
will be delivered later as adver¬
lated a large volume of deferred for a long period of time."
Shy¬
tised.
■'
demand
for : goods
from
other ing away from purely political
Pope Pius -XII has laid-down
countries, including the United issues, he expressed the hope that
several
essentials to any peace
tion from which
the people .were
.
1
,
„
possible after .the war if our Amer¬
ican system of living and doing
■
business is to be resumed.
of
,
.
find some disciples
Government preaching a doc¬
"Today
trine
we
continued
of
control
■
over
private enterprise, and that means
control over individual initiative.
We had more than 150 years of the
American
of life before we
way
must be
stopped
now.
"Idlesness is the reason for many
of
.
our
.
,
It
began to hear this kind of talk.
Henry Ford
.
.
troubles.
My thoughts today are with the young men who
coming home from war with a blank wall of in-
are
We owe these men, the
opportunity facing them.
who have been sent abroad,
ones
think of in the way
can
everything we
of help and encouragement.
■
They will want this help in the form of a chance
to show what they can do—-not in the form of a
•
worthy of the name and they have
universally., accepted :: by
patronizing gift obtained by heavy taxes on their
own
been
families.
Catholics and non-Catholics .alike.
present system, have
"What chance, under our
President
at
these young men, should they
individual ambition and spirit
want to express their
of invention, or their
mere willingness to work hard at a good job?
They
must, according to the current rules, get in line and
hinted
that
Official estimates indicate
the
difficulties
that. have
arisen
the
relation's
the
between
holdings of in
gold
and exchange
here
and United States arid the Argentine
abroad have reached the equiva¬ will be settled in a spirit of mu¬
lent cf more than $3,000,000,000. tual understanding and that the
of
Latin
which
American
about
sists of gold
two-thirds
con¬
(mostly in the United
statesmen
of
this
continent
Will
succeed in
sparing, us national an¬
the recent conferences in which States) and $500,000,000 is in the tagonisms such as have.been a
form of United States dollars."
plague to Europe and to the world
the
President's
delegates *, pre¬
New industrial development in for centuries."
\ :"' 1 ■.
:
sumably had an influential voice.
In making a second point on the
Latin America stimulated by war
One of these essentials is the right
conditions may affect future trade restoration of free enterprise, he
of ALL nations to life and inde¬
relations for a whole, the survey recognized
the evil - of govern¬
pendence; another is the adoption
of a body of international Taw indicated, but it expressed con¬ mental interference, unavoidable
siderable doubt that these coun¬ as it may be under present
^con¬
applicable to and recognized by
tries to the South of us can sur¬ ditions, observing that it was still
all nations; a third is the recog¬
an- evil and that "he
vive; In
world
hoped that
competition
a;
nition of the dignity of the indi¬
levels sufficiently high to make all countries .will realize the need
vidual and of his rights, including
them a factor to be reckoned with for a gradual return to other forms
his light to live in conformity
in the trade situation.
The gen¬ ot organization, where more lib/
with God's law; finally, and most
eral opinion of the bank's South erty will be given to the indi¬
essential of all, is the acceptance
American correspondents was that vidual and less power to the state,
by alienations arid all peoples. of
the "greatest opportunities for ex¬ which is the. essence of democ¬
God's" law' and God's authority;
racy."
7
•
■'
These, it must be emphasized, are pansion of* their export trade lie
in those- products, mainly agri-.
Steel Industry—"The steel mar¬
essential, and not merely orna¬
cultural commodities, that have ket in the
past few weeks has re¬
ments, for the maintenance of
formed the rnainstay of such trade
gained some of its wartime tempo
peace. Yet they were ignored by
in the past.
'•
reminiscent of a few months ago
the
Dumbarton
Oaks
conferees
.
•
,
land which is
distinguished for freedom of
speech, freedom of religion, freedom from want and
freedom from fear, any lack of a freedom of job
opportunity isn't going to set well with the men
who have fought to save us on the battlefields of the
a
even/
his
have been conspicuously absent in
wait their turn.
"In
Roosevelt
knowledge of some of them
recent address.
But they
a
in
States.
world.
"I hope, and I'm sure, that these men and their
brothers and sisters at home are going to ask a lot
of questions.
They are going to want to know the
.
why of everything that has been going on here.
And they will get the answers, too.
-No one else
can
do it.
They alone can put an end to topheavy governing systems, to restrictive laws which
serve no
purpose in a nation built upon freedom."—
Henry Ford.
We can add nothing and we would subtract
nothing from this timely warning.
Dumbarton Oaks Peace
,
(
"Among desirable - plans and before cancellations increased in
preparations for expanding trade number. This change, which re¬
and promoting economic coopera¬ flects the ease with which steel
the program in the first place.
/
The principles laid down -by the tion, by far the greatest emphasis companies were able to plug up
with
additional
business
Holy Father are not, in spiteof is placed on two requirements: holes
their importance, widely * known better transportation facilities and subsequent to cancellations, is just
another
signpost exhibiting the
among millions of voters • in ,the sounder-commercial methods. The
United States who know ; only need for improved transportation mixed trends which have been
what they see in the secular press is. felt chiefly in ocean shipping, existent in the past month," states
or
hear on. the radio. - The- two although -in- some cases the pri¬ "The Iron Age" in its summary
just
as,
they
were
minimized by
■
the internationalists whoJ drew up
Proposals
latter
sources
of
public Informa¬
tion can completely disregard any¬
Editorial in "The Tablet" Warns Against Belief that It Will End All
thing from the Vatican as "re¬
Wars and Asserts That Even as "Machinery" Its Entire Program Is
ligious" and therefore unconnected
Useless, Particularly as It Does not Guarantee the Right of All Nations with problems of national and in¬
mary stress is on internal trans¬
port .'as a prerequisite to the .gen¬
of the steel market the past week.
Steel ordering, although heavy,
development of the represented a slightly lower level
country.: The possible helpful ef¬ than was the case in August and
fects of lower. freight and tariff September.
The steel ingot rate
ternational interest. Such a dis¬ rates arid more liberal trade reg¬ also dipped the past week, the
To Life and Independence.
regard has left a large body of ulations receive frequent mention. orderly decline probably repre¬
Under the caption ''Unseen Plans,"'an editorial article in the the American people unable to Almost as important, in the Latin
senting the attuning of current
Catholic weekly publication, "The Tablet,"
published in Brooklyn, judge the proposed peace organi¬ American view, is the require¬ order volume and backlog to ac¬
N. Y., Oct. 28, takes to task the *—
ment that traders in the United tual production schedules.
zation
4——
intelligently and conse¬
Evi¬
statement of President Roosevelt for an international
States give more attention to the
peace which quently susceptible to biased and
dence, however, indicated that part
that the Dumbarton Oaks Plan the
American
adaptation of their products and of the decline in ingot rate was
people were so misleading propaganda.
will be "the keystone of the arch"
vheir trading: practices, including due to the unusual time
strongly urged to accept by Presi¬
TWo other aspects
necessary
(and these
of security and peace. The edito¬ dent Roosevelt in his address be¬
terms of credit, to the needs and to make repairs and to the ac¬
are
not "religious") of the pro¬
eral economic ■
,
rial follows in full:
fore
the
tion were
Unseen
Plans
President Roosevelt's rosy pic¬
ture of peace and harmony in the
at
the
Foreign Policy Associa¬ posals and conferences for; post¬
by no means discovered war security must also be recog¬
Dumbarton
ences of the
only
modified
a
Oaks
Confer-?
nized by
the citizens of the: United
making any. com¬
mitments
with
foreign powers.
"Big Four.", They are States
version
of
a
before
cumulative
Russia,, which seems on the way,
with our help and the help of
international Communism, to be¬
coming the most powerful influ¬
effects
of
outlaw
strikes,
were
which in the past week
cutting into steel output at
Birmingham and Buffalo.
Extra stimulus
scheme
is
.
expected to be
prepared months ago by These are, first, the fact that Jhe ence in the post-war^ world, can given the steel shell program in
highly subsidized organization element of mutual- trust at any be. trusted • to
carry
out
her December and in the first quarter
of 1945.
October shell require¬
urday night, may have caused of internationalists. The conferees conference of delegates of the promises.
at Washington did not even
some Americans to be deluded and
take "Big Four" will be difficult to
The disagreement on fundamen¬ ments were about 213,000 net tons
the trouble to
to conclude thht their Government
change the titles.
obtain; secondly, agreement.; on tals- between the United States, with November and December (
had found a way to end all wars.
The President's concern about fundamentals does not at present Britain and Russia—China's
policy needs at present about 302,000 net
The President' spoke of .the "se¬ the Interest of the
December
shell steel:
American peo¬ exist among the nations which are ban- be disregarded—is too evident tons. By
needs, might expand to as much •
curity plan" which was announced ple in the planning of the post¬ dominant in the world.
to require discussion. Americans
after the Dumbarton Oaks Con¬ war
organization, however was
In the third report of the Com¬ need only ask themselves if Brit¬ as 325.000 tons or possibly 350,000
ferences
as
the
"very practical new. Hitherto the citizens of the mission to
Study the Organization ain will yield-on the issue of her tons, the magazine states. Original
estimates on requirements
expression of a common purpose United States were understood to of
mpde
Peace, published in April, 1943, colonial possessions and if Russia
on the part of four great nations."
have only the privilege of con¬
the following invaluable warning will adopt the Four Freedoms for some time ago had set a figure of
In a statement 12 days before he senting to what .the Government
is found in a passage discussing her own subjects.
These cannot about 450,000 tons a month by
had called it "the keystone of the told them had been decided
upon Russia as a charter member of the be dismissed with the admonition January, 1945.
arch" of security and peace.
A at conferences held in the deepest world
A labor shortage continued, to
peace
organization: "The that the people of the United
study
of the Dumbarton Oaks secrecy. The so-called represen¬ test to be.
applied is not whether States put their trust blindly in place Chicago district mills at an
plan reveals no basis for such tatives of the United States at we like or dislike the internal the hands of the Administration, acute disadvantage in
producing
praise. On the contrary, such a these conferences
Were
chosen system of any
State, but rather It is the duty of the Administra¬ the more highly finished steel
study will more likely lead to the neither by the people or by the whether a State can be trusted
Contributing
to
this
tion, as the servant of the people, products.
discouragement of hopes for peace Congress; they were selected by as a member of the
community, to preserve the nation from a, false situation was the, smoke of labor
world, as described in
his nationwide broadcast last Sat¬
post-war
a
.
.
.
.
•
,
,
,
,
In the future.
The
widely heralded proposals
the Administration and their abil¬
of nations." This nation has the peace which
bears promise of
ity to deal1 with the delegates of obligation of determining whether
nothing but more and worse wars.
unrest which threatened .to
-
(Continued
on page
spring
2053)
:
and
Sec Issues Results Gf
Flotations
Study On Costs Of Capital
Bear
Averages From
^
Highest Ratio Of Costs.
October ;22 released
of ^ equity' securities
(preferr.ed ..and,'common stock) ..based upon data., taken €mm. stated
ments liled with the Commission during.: the period from• Januaryv-1 v;
1,938, to June 30,1944, by companies .reporting, less fha.n^ five'minion
The Securities and .Exchange Commission en
its study Of the, cost of flotation
\
the results of
'
tries.
-
bankers'
volved
bankers', .^compensation
between
the; purchase -and selling groups.
Such 'compensation on the average
was rtound
to be-'divided "almost
equally between the two groups
and this pattern held in spite-of
differences in the', level of'bank-
,.
...
Securities and
study
of the receipt
of
a
number of in¬
quiries, was limited to issues of
preferred
and
common
stock,
bonds haying
been only infre¬
quently, issued
nies. :;'V:
i
The
-
study
by small compa¬
y.; ".
''
Breakdown of Expenses
was
only?; a
cost 'of"
.flotation.
However,
an
analysis bas .been made of the
•amount paid for each of the typi¬
of
cal litems
by
curities
expense
issuance
with' the
connected
equity se¬
of
companies
reporting
less; than five million dollars of
assets.
In addition to the issues
so'klto the
investment
general public through
bankers, used in the
preceding analysis of compensa¬
cost was ac¬
tion, there were admitted to the
difference in
analysis of the expense component
the rate of bankers' compensation;
the; equity securities registered
which- amounted to 12.7%' of "gross
for sale directly to investors by
proceeds on the issues of preferred the issuing companies and those
stock compared with 17.5% on the
planned for sale through invest¬
common stock.:: Expenses changed
ment -bankers to restricted groups
only from 1:6% on the preferred such as stockholders.
based upon data
to
1.9%
on
the common.
T/.-'f.
Half of the issues to be sold to
statements filed with
the
public through • investment
the Commissioner under the Se¬
bankers involved a commitment;
curities Act from Jan. 1, 1938 to
June 30, 1944, by companies re¬ by the bankers to purchase: the.
securities from the issuers, .and
porting less than five million dol¬
the other half involved no com¬
lars of ^assets, exclusive of invest¬
mitment by the bankers to pur-,
ment companies and companies
:
y->
component was
small fraction of the total
,,A r The ; expense
change in the total
counted for by the
taken from
,
the Edgewater Beach.
Byron V. Kanaley,
Chicago, was elected Vice-President for the 1944-45 term. Others
elected on the slate proposed by the nominating committee headed
the organization's annual meeting at
succeeds H. G. Woodruff, Detroit.
Oct. 20, at
He
Hotel.
by Charles A,
Mull on i x
r e
Vice
this .country
sions.taken in
and insular posses¬
connection with the
He
Trading with the Enemy Act.
organized his present firm, L. E.
Mahan & Company, in 1931.
He
was
one
of the founders ^ of the;
Mortgage Bankers Association of
Mortgage Bank¬
St.
Giraldin,.
Louis; -Harry
A. Fischer,
St. Louis and the
Chicago;
Er¬
nest H. Hack-
tional
.
m a n
J
c
k
s0 n
Fire
Paramount
the
of
New York, and the
St. Louis Fire and Marine Insur¬
Insurance Co.,
ance
McGee,
C.
a
Legion, an affiliate of the na¬
association.
He is a di¬
rector
Ft.
Ind.;
,
Wayne,
J.
ers
Co.
Kanaley
Mr.
,
E.
Lawrence
and
G u y
T.
O. v
Hollyday, Baltimore.
Miss, ;
Mahan
'
.
of the or¬
was one
ganizers and first President of*
the
Chicago Mortgage Bankers
Association and served for three
Board of Gov¬ terms.
He is a graduate of the
expiring in 1948 University of Notre Dame and
Were
M. T.
MacDonald, Jersey Harvard Law
School.
He is
City; Harold D. Rutan, New York; Chairman of the Board of Lay
R. C. Houser, Miami; C. P..Ken¬ Trustees of Notre Dame.
He is a
nedy, Cincinnati; Edward F. Lam- member of the executive commit¬
brecht, Detroit; H. G. McCall, St. tees of several charities, includ¬
Paul; and R. O. Deming, Jr., Os¬ ing the Catholic Charities of the
Archdiocese of Chicago.
He is
wego, Kan.
1
Mr.
Mahan's association with President of Winnetka Commun¬
Elected
~
ernors
to
the
for terms
Chest, director of Chicago
the organization covers more than ity
two-thirds of its. history. He has Community Chest, former Treas¬
in registra-; been in mortgage banking since urer of Chicago Real Estate Board
lion statements are not at all af¬
1915 when he became associated and former President of Chicago
fected by the registration require¬
with the Mississippi Valley Trust
Realty Club.
He is President of
ments
of
the
Securities Act,
Company, St. Louis, in the farm
namely, payments for listing on a
Cooper,, Kanaley & Co., Chicago.
loan department.
Since 1919 he
of the types of expenses
./Some
frequently
reported
•
securities
.
exchange,
tax
revenue
for Federal
for State
stamps,
chase, merely, that they would
centrated in the single item of
•-qualification,' .an-d-for the services
use their best efforts to effect dis-:
of
transfer
.agents.
There are legal fees. Accountants' fees and
tribution.*
Bankers received a
some
other
types <of
expenses cost of printing and engraving
higher rate of compensation on which also existed before, as well were next in aggregate import¬
engaged in the extractive indus¬
tries.
Omitted from the .'study
were statements involving-two or
more
types of security, because
the average for the issues : sold
ance, each amounting to a little
of the unavailability in such cases
as after, passage of the Securities
under the latter type of contract
less than % of 1% of the gross
of' completely separa te cost data
Act/; but > which may be. larger
for
each type.
Statistics were, despite the ladk of inventory Tisk. than otherwise by reason of the proceeds. Engineering fees in the
This may be explainable by a ten^
requirements of the Act; namely,; aggregate .amounted to only a few
given separately for both types
dency of the bankers to -confine:
cost1 of printing - and engraving, hundredths of 1% of *gross -pro¬
of equity securities,-common stock
their - purchase *' commitments ' to
The only type of expendi¬
and fees for legal, accounting and ceeds.
and preferred stock; and for two
the issues which appeared -more.sizes of company
(not sizes of
engineering' services.
There is ture for Which the amount paid
certain to sell.
-.^vf
could be regarded., as entirely at¬
only one type of expense forissue), those reporting assets of
The total cost of the issues inJ which the .entire amount paid is tributable To the Securities Act,
less than one million dollars and
those reporting total
assets be¬ volving bankers1 commitment? to entirely attributable to the Act, the .fee • for registration with the
amounted to T5.9% " of the,fee: for registration with the Commission, amounted to one
tween one and five million dol¬ purchase
the expected gross proceeds com-; Securities and Exchange Commis¬
lars, y"
'
one-hundredth of .1% of the ex¬
pared -with 19.9% for those on sion.
•y The basic data represent esti¬ which the arrangement tv.as -for
pected gross proceeds.
\ !
,
;
mates by the issuers at the time
> "To obtain a picture of the dis¬
>.
The proportion of gross; pro¬
the bankers to use Their best ef¬
tribution1 over these items of the
the registrations became effective
forts.
The increase in - the total
ceeds paid in the aggregate for
.of the costs involved in completely
aggregate amount paid for ex¬
co'st was completely accounted'for
penses,":: it was necessary to use each type of expense was found to
selling
the
securities " and are
summarized in the form of aver¬ by higher compensation: for.bank- those statements Which furnished change only slightly with change
ers' compensation increased from
adequate, details.
A -statement
age ratios of the costs to expected
;in either the type of security or in
13.9% of gross proceeds on the was
considered adequate for this
gross proceeds. The statistics pre¬
purchase commitment issues to purpose if at least three-fourths the size of company within the
sented in the study therefore re¬
.18.4% for the best efforts issues:; of the
expense total could be al¬ population studied.
flect the .cost rates anticipated,
The greatest
whereas
the
other
component; located separately to any, but not
father than experienced, by the
.variation appears to have been in
expenses, actually decreased from necessarily to all, of the above
issuers; for other studies by the
2.1% for the former category;;,to items.' In other words, statements the item of legal fees.
•Commission have shown that ac¬
1.5%
for the latter. ' This ten¬ were excluded for which more
tual sales, and therefore the real¬
Size of Each Type of Expense
dency ' for' compensation' to
be than one-fourth of the total ex¬
ized proceeds and presumably the
While the above analysis is ac¬
actual cost rates, of many small higher on the issues not' involv¬ pense was characterized as "mis¬
statements but on the
restricted number of
statements in which each type oc¬
of all of the
basis of the
curred.
.
supplementary analysis
and brings out some
interesting contrasts with the pre¬
ceding one. For example, the for¬
mer analysis
showed that engi¬
neering fees had amounted in the
aggregate to only about one-tenth
of the accounting fees.
But the
latter analysis demonstrates that
the lower average for the engi¬
neering fees was due to the fact,
that they occurred in only about
>
'Such
.
*
,
,
a
made
was
.
-
in charge 01
mortgages in
was
estate and
real
all
he
War
World
Presi¬
-
During the first
-city loan field.
-seven
i o n a 1
g
his
devoted
has
Cle veland,
were
—
—
attention to the
v——:
,
.
.
Exchange Commission. The study,
which was released as the result
Mahan, St. Louis mortgage banker, was elected President
Bankers Association of America, at Chicago, on
Mortgage
v
k,( v
1
*
to a
L. E.
the
of
brs'r'ccrmpensafi on for : preferred dents:
Roy F.
and (common stocks, and forussues
Taylor, 'Seat¬
pf fCOTnpanies over and under one tle.; C. W.
million /fdollars in amount of reMead,
Oma¬
'y- •v •; "•T
also i porfed assets. ha;;
C. : Ear)
/ :,..,n
{ /The results
I h 3 icatei X he smaller the., size, of
the^company, the larger amount • groups 'mentioned -above', and
of issuesnot preferred ^andycbmi^
uef the proceeds -of an issue .is r-e-quired to coverthereosts ofiflota-;
lion.
This is borne;; out in the by • investment^bankers ]wTith land
without commitments topurchase.^
following. ..statement issued . by
The aggregate cost of'flotation
Commission:
'
•
v
of the .issues of preferred ystt)ck,i
'-J 'Small- companies-attempting to
intended for sale' to the ;gene¥aT
: - raise capital through the sale of
-equity securities have/been faced public' through investment - bankwith
paying out ' a substantial ersyby all Tegirtrarits 'with''less'
than five million dollars, of-assets
proportion of the proceeds in cost
amounted to 142% of: gross pro¬
of flotation, consisting principally
of compensation for the services ceeds, compared with 19.4% "Tor
issues
of common stock, imitheof investment bankers, according
same category.. Again, most of the
by the
.
commitments to
purchase before resale also gave
information on the
division of
companies)-and joom|)anies
- -• u--".--, •
sation ;'aDDOuntedy£dm(^tehti^|^
for
the^ differences ; .in
of The .study. .would flotation of issues tn'The '/cpstVof
two size
dollars of assets, exclusive of,,investment
cmgaged in the extractive-iudua-f* '"''"u
■i
flss'n—Byron ¥. Kanaley Elected Vice-Pres.
of Compensation j
Many of the statements for the
above-mentioned issues which in¬
Mtg. Bankers
L. E. Mahan Elected President Of
;
Issues Under $1,000,000,
14% to 19.7% Of Proceeds.:
the
purchase.
1 Breakdown
By Small Concerns
Compensation To Investment Bankers
without commitments by
bankers "to
2051
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4332'
Volume 160
and that
one-tenth as many cases;
statements in which
for the
slightly
averaged
actually
fees
each
engineering1
the
occurred,
type
accounting fees.
Other types of expense which
occurred relatively infrequently
higher than the
and which
therefore were typical¬
substantially larger than indi¬
cated by the distribution of the
aggregate amount paid for ex¬
ly
Exchange listing
agents' fees, and
were:
penses
transfer
fees;
were
state qualification, which
reported respectively for
about
one-tenth,
fees for
one-third, and
ing a purchase commitment than cellaneous" and/or reported only curate for showing the distribu¬ two-fifths, of the number of is¬
registered issues depart substan¬
on those
involving such a com¬ forcombinations of the other
sues.
Types of expense most fre¬
tially from those anticipated at
tion of the aggregate amount paid
mitment sufficiently To offset a
items.'
■
' '
-/■ : ■
'
the time of effective registration.
for
expense
over the
different quently reported and which there¬
drop in the other costs existed
Out of 250 equity issues regis¬
fore give more nearly the same
for common as well as preferred
Principal Components of Cost
types of expense, it is not ade¬
tered,; .separately
by companies
statistics under either type of an¬
stocks and for issues of companies
Cost of flotation averaged 21.6%
with less than five million dollars quate for picturing the typical size
under as well as over one million
of expected gross proceeds for the
of each type of expense.
For the alysis were: SEC fees, Federal
dollars in asset size.
• ;
I of assets, there were found to be
revenue stamp tax, accounting and
equity issues in the study which
201 / for which their registration, latter
purpose it is necessary to
The table, attached, summarizes
were registered for sale through
statements gave sufficient detail
use
average rates for each type legal fees., and cost of printing and
investment bankers to the general the statistics on the comparison of of expenses for the purpose of
engraving.
/■-,
]
public by companies with less the two components of'' cost of showing distribution by items. The that are computed not on the basis
compensation' aggregate expenses of these 201r
than one million dollars of assets. flotation, bankers'
COST OP. FLOTATION
OP EQUITY ISSUES BT , SMALL. COMPANIES
Commissions to the b a n k e r s and expenses, for those issues in issues amounted to about 1-% %
Registered Under the Securities Act from Jan. 1, l$j38 to J^np, 30, 1941
amounted to 19.7% of the ex¬
All Equity Securities'
V.
the study which were intended, of the expected gross proceeds.
'Asset Size of Coihpany
pected gross proceeds, - the re¬
The types of expense not at all
Under
$1,000,000 to
Under i
for
sale to
the general :.public,
maining part of the cost of flota¬
Ui
affected by registration accounted
$1,000,000
.$5,000,000
$5,000,POO
Issues Offered'Through Investment Bankers
tion - referred to throughout the through investment bankers."The for about !4% of gross proceeds
unci
With, .and Without Purchase Commit men fig;
103 ' '
81
study as ''expenses" or the "ex¬ table provides statistics separately , and for these there was practical¬
.
,
.
•
"•
'
- !
,
'
pense component," amounted to
only 1.9 %vof-expected gross pro¬
ceeds.
for issues of
below
one
stocks,)
companies above and
and preferred
million dollars of
ly no variation between issues of.
companies having more and those
having'less than one
re-,
lars of assets.
The cost of
breaking
bankers'-compensation
of 14.0% and expenses of 1.7% of
expected gross proceeds. Changes
in the rate of bankers' compen¬
cost
amounted to 15.8%,
down
into
contracts
contain
to
purchase
generally
of the gross
"out" clauses which sub¬
stantially limit the
the commitments.
"firmness." of
half of the
'
these types
•
million dol¬
flotation was some¬
:
what lower on the average for ported assets, and for issues with
The aggregate amount paid lor
similarly marketed issues of com¬
The two types of contractual the types of expenses (including:
panies reporting total assets be¬
"miscellaneous") partly affected
arrangement represent essentially
tween one million and five mil¬
differences in degree, rather than by the requirements 1 of the Se-;
lion dollars.
For these, the total
kind, of commitment; for the curities Act amount to about 1V2 %
1
dumber .of issues_____,
tiuoss .proceeds
Cost, of flotation (% of gross proceeds) J-Investment Bankers' compensation
.
for common
proceeds. About oneamount disbursed for
of expenses was coil-
-Expenses
1
_1_
;
With Purchase Commitment:
1
of
Number
proceeds
-Cost of flotation .('/a
Expenses
Without Purchase
Number
Gross
of
Cost of
flotation
jv.i'0"tment
Expenses
Commitment:
-issues
proceeds
(%
of gross-
Bankers'
—-
proceeds)
compensation
37,147
64,420
21.6
15.8
19.7
14.0
16.1
1.9
"
1.8
1-7
.
;
35
57
7,280
44,764
52,044
52,044
15.9
.
.
15.3
,
.
-
20.01.
13.9
13.4
17.0
2.1
1-9
3.1
92
i
I
($000)___f_rJi
,
1-7.9
92
issues__
($000)
of gross proceeds)—
Investment Bankers' compensation
Gross
J34
101;S68 .'
49,523
:
'
24
19,656
68
,
29.867
19.9
16.8
21.9
18.4
15.6
20.3
1.5
1.3
1.6
THE COMMERCIAL &
2052
(Continued from first page)
ish
A
To
•
-
ward Iran audits
oil, and its
than half
Washington that
connection
States in
United
more
return of Mr. Nelson had been
Great Britain
therewith—and for that mat¬
we owe
in
States
that
area—hardly
that
bespeak lack of imperialistic
"At
ald
tb
1
deviled
areas.
It
•
after,
the
the
Noth¬
Atlantic Charter.
On
situation.
the
admissions
recent'
Churchill
make
so
Mr.
by
to
enough that no basic change
has occurred—and it may be
Mr. Churchill and Mr. Stalin
of
appearance
every
being essentially of the sort
that
dents of international
long before the Atlantic Char¬
was ever
thought of. Im¬
perialism and its accompani¬
.
form a
good deal in the next few
years, but it would be folly
to suppose that a new heaven
or
new
a
change
may
earth
is
about
to
appear.
Change Inevitable
Again, this
war, as major
in the past, will
have
wars
effect definite
changes in the
positions or the na¬
relative
tions of the world.
We of the
United States could not pre¬
vent such a change if we were
to
to
Ployed
that
we
sions and recent events, how; ever,
,
.
ln
of
the
public to this rather
We
are a
ment
much
the
as
people they rule)
guarantee loans
Of course, loans which
rest upon a sound eco¬
undertake to
made.
do not
nomic basis
without gen¬
no mat¬
are
eral economic benefit
ter
who
'
•
with
a
,-
'
•;
}
.
natural
Many of
us
appear
to be
too
i
desire
and
British interests.
At times he
have his full share
seems
to
of that
characteristically Brit¬
is
apparently leading us to
dangerous lines of pol¬
icy.
We might return to
some
China
cite
-n
ish notion that 'the world in
War
Pro¬
Executive
and
the
Walworth
manufacturers.
He
also
mission
of
headed
by
Graham,
Associated
from
steel
experts
Herbert
W.
Mr.
chief
metallurgist
of
Laughlin Steel Corp."
'
Jones &
In
five
Press
Washington
stated:;
1934
it
2
was
to
head, and his knowl¬
was ;gainedr he
said,
from the highest Chinese sources
in Chungking.
edge
"
a
of
it
"Today's White House visit
was
rr
for
an
India
i"
'
j!t
as
•
•
illustration,
an
J
commander
in
Far. East
be¬
or
example.
,
j Many in this country
■
seem
t
to
about
when it
lature
to
proclaim Nov, 23
discovered the Legis¬
was
had
ordered
observe the
'The stories of returned corre¬
month.
last
The
and
other
ready
they go,"'
as
things
that precipitated the ac¬
They tell of Chiang's "ulti¬
tion.
matum"
demand
Gen.
Georgia
record
that
result of
by .Gen.
on
be
the
Chiang's act
was the
ultimatum presented
Stilwell as the agent of
an
the White House.'
"Dr.
Judd
issued
was
the
the
ultimatum
head
of
the
military
authority
Chiang himself, and
over
even
threatened
the withdrawal of American mili¬
tary support unless this
"President
in
put
Roosevelt
position
a
against
war
withdraw
thus
was
of
Japan
Gen.
done.
was
having
from
China
on
to
the
An
of
item
Mr.
1513,
our
the return
on
from
China
Board
from
War
Production
made in the
was
page
the
1507.
'
'
Announcement
,
that
accounts
press
was
has
liberation, which
millions Reed
tyrannical rule, it is fitting
that we give thanks with special
fervor
to
our
Heavenly: Father
seen
from
so
many
■
for the mercies
from
Washington
President Proclaims
Thanksgiving:
have received
we
a nation and
blessings He has restored,
through the victories of our arms
as
for the
and
those
children
For
of
allies,
our
to
his
in other lands.
the
of
preservation
our
of life from the threat of de¬
way
for the unity of spirit
kept our nation strong;
abiding faith in freedom;
and for the promise of an endur¬
struction;
which has
for
our
ing
peace,
hearts
in
For
we should lift
thanksgiving.
harvest
the
tained
us
up
has
that
our
sus¬
in its fullness
brought succor to other peoples;
for the bounty of our soil, which
has produced the sinews of war
for the
and,
liberties;
private
blessings,
known
only
in
our
hearts, we should give united
and
To
more
in
Oct. 28.
Nov, 23
.
A Proclamation
Stil¬
recalled
al¬
the
;'
*,,,
,
■).
President's
proclamation
In this year of
of his du¬
indicated
for
difficulties.
has
protection of
for
a
tude
the
our
multitude
thanks to.God.
*
Gen.
ties in' the Far East and
Washington
issue
same
"j,
well had been relieved
to
ap¬
issue of Oct. 5, page
and/ reference to his resig¬
nation
on
bearing
Nelson
peared in
events
set
follows:
or
Stilwell, said Dr.
JUCld."'
to
Attorney General has
statute setting the last
individually and
said
over
been
also
State
The
Stillwell's
withdrawal, but if there is to
State
earlier date.
upheld a
Thursday..
far
as
:
traditional
have
story, are true
Dr, Judd, said, " 'but their sources
of information skillfully omit the
the
Thursday in the
may be two
because
sporting
result
Thanksgivings
The
..
the
.
spondents from Washington, pur¬
porting to tell the "inside" Still well
withdraw United States
Mr. Nelson's first since Mr. Roose¬
^
.
came
ap¬
Thursday, On top of this,
States passed laws regard¬
ing the holiday.
;
Governor Adkins of Arkansas
from
1938, was in Chungking last
September
when
the
situation
advices
Nov.
'
end
;
that
of
•/
-
we
earnest witnessdo
may
our
U •
bear
grati¬
to
Almighty God, I suggest
a nation-wide reading of the Holy
Scriptures during the period irom
Thanksgiving Day to Christmas.
Let every man of every creed go
to his own version of,the Scrip¬
tures for a renewed and strength¬
ening contact with those eternal
truths
and
majestic principles
designated as Na¬ which have inspired such meas¬
tional
Thanksgiving Day in a ure of true greatness as this na¬
proclamation issued on Nov. 2 by tion has achieved.
Nov, 23
was
President Roosevelt.
In thus
by Gen. Stillwell, demanding that
set¬
Now, therefore, I, Franklin D.
ting aside the fourth Thursday of Roosevelt, President of the Unit¬
the month as a day of Thanks¬ ed States of
America, in conso¬
giving the President followed the nance with the joint resolution
Gen. Stilwell be made commander
law
enacted
of all of China's armies.
26,
1941.
cause
Generalissimo
shek
had
refused
White House
Chiang Kai?
to
accept
a
ultimatum, delivered
"The Congressman—a physician
and surgeon—said the ultimatum
threatened
withdrawal
of
Amer¬
military support from China.
"Dr. Judd, who had been a med-
could
doubtless,,. proceed—
whether the natives
not —to
or
liked
it
"industrialize"
these countries and, possibly,
by recruiting a number of na¬
tives,
manage
to , produce
there substantial amounts of
goods
prize
we
whether
the
highly, but
popula¬
native
tion would be the better off
for
it
all,
and
whether
we
by Congress on Dec.
Five states, says the
Associated Press, plan to observe
Nov.
30, the last T h u rsday,
through local choice,
We should give thanks to God,
expressing "our grati¬ Oct. 27 the appointment of A. C.
Almighty God,"
Wienert as Assistant Cashier of
Pointing out that the complica¬ the Baltimore branch of the Re¬
tude
to
tion of two
Thanksgiving days is serve bank. The board of direc¬
year, despite Con¬ tors in ■ making known the ap1gressional action to end the Roose¬ pointment stated that it would igo
continuing this
which
Nov. 2 added:
to this time have
certainly
not
shown
much
interest in
being "industrial¬
ized."
us
tism
Let
of
avoid the ego¬
supposing
that
have been called from
to
save
Pap
on
we
high
the world from itself.
we
approved Dec. 26,
of
means
days,
up
of the Congress
1941, do hereby proclaim Thurs¬
day,
the
twenty-third
day
of
November, 1944, a day of national
thanksgiving; and I call upon the
people of the United States to ob¬
says the President inhis Procla¬ serve it by bending every effort
mation. "for the preservation, of to hasten the
"day of final victory
pur way of life from the threat and by offering to God our de¬
of destruction, for the, unity of
vout gratitude for. his goodness
spirit which has kept our Nation to us and to our fellow-men.
strong, for our abiding faith in
freedom and for the promise of
Wienert Appointed
enduring peace." The reading of
the Holy Scriptures from Thanks¬
Robert
Lassiter, chairman of
giving Day to Christmas is sug¬ the Boar of the Federal Reserve
gested
by the President as a Bank of Richmond announced on
should grow rich or
com¬
pletely bankrupt with the en¬
deavor, would depend upon
the
native populations—
not now inject a
general,
an d
the
UnitedI dream"bf bringing the blesslitilgf' sound common sense
States in particular, nwes a
ings of our western civiliza- into our thinking about for¬
debt of gratitude to the Brit- tion to these peoples.
We eign relations? -
China
to
Co.,
is
;
Each Tub On Its Own Bottom
senti¬
ability to look after
in
and again from
bringing with him Mr. Eugene M. War Department and demanded
Stallings, American technical"ex- rthat Gen. Stilwell be appointed
pert in alcohol production, and a over-all commander in China with
guarantees
t
marked
of
ican
what
or
It
strange ideas, to say the itself by its own efforts.
least, about our obligations, is more than doubtful if any
moral or otherwise, to some people will ever or can ever
of our allies.;
,"
long enjoy any economic
i-:f
ui
blessing that it did not di¬
Our Friends
rectly or indirectly earn by its
Mr; • Churchill,jbahle
and own endeavors. * This again
admirable war leader: that he
appears almost too trite for
is, is still a British subject repetition.
Yet neglect of it
■
1931
■
some
•
Coonley,
Board
.
people and at the
are
war
to
,
mo¬ determined to ignore another
greatly simple and inexorable fact.
influenced by sentimentalists No people has any right to
in
our
midst.
We
have expect anything in this world
friends, moreover, who have to which it has not entitled
mental
in¬
to
during the 'Twenties. velt announced the recall from
We were supposed to have China of Gen. Joseph W. Stilwell
learned during the 'Thirties because of what the President
later described as a clash of per¬
that we had given most of our
sonality with Chiang, and the res¬
goods away—and, in addition, ignation of Ambassador Clarence
that the process had
horribly E. Gauss. Gen. Stilwell was chief
of the Burma-China-India Com¬
disarranged o u r
domestic mand. : .y
y
v
economy.
Yet somehow, it
"Mr. Nelson, former Chairman
of the WLB, was accompanied on
appears to be supposed that
the technique can be robbed his first trip by Major-General
of its power to do harm and Patrick J. Hurley, who has since
remained in China."
impregnated
with
magic
From Minneapolis the Associ¬
power for good if only some¬ ated Press had the following to
how "government" activates,1 say anent the recall of Gen. Stil¬
well'*
•*..
...;.
controls and guarantees the
"Representative Walter H, Judd
processes.
In the view of (Rep., Minn.), declared in a state¬
many, the procedure is per¬ ment today that Gen. Joseph W.
fected when not one, but sev¬ Stilwell was relieved as American
make it clear that it is them.
obvious fact.
at
trade
essential to call the attention
•
Board
output of China's
Howard
valve
cam
try, and effort on our part eral governments (even if
prevent it could very eas¬ most of them are as insolvent
ily cost us much of our stand¬
ing and position — to say
nothing of our wealth.
One
would suppose that warnings
of this sort would be quite
unnecessary.
Recent discus¬
aimed
missionary
1925
resolution
fourth
was
ical
joint
many
———
talk of ultimatums let it be
Chairman
experiences
our
effect
the
the
duction
'Thirties. This notion is
,
stu-
ter
ments
Mr.
developing and
affairs maintaining our large export
familiar to
so
was
after
measure's
on
"Mr. Nelson is taking with him
his deputy for this undertaking
as
profit by sending large quan¬
tities ot our goods abroad to
be paid for with funds which
we ourselves
provide. This is
precisely the procedure em-
added that the conferences of
have
soon
of the
clear
it
work with the Gen¬
industries.
popular fallacy ap¬
strangely out of plate
pears
contrary,
President
to set the earl¬
Production
crease
Another
.
War
a
Paying Ourselves
ing that has occurred of late
suggests any change in this
the
strengthening the
Chinese
war
effort, and notably in organizing
their friends.
could not be reconciled with
!
;
today,
his
eralissimo
war,
Russia intended to do
deal in
York
conference with Mr. Don¬
a
Nelson
continue
the
long been evident that strongly suggest that
American people would do
a good
eastern Europe,which well to be on guard against
course,
New
China, which has been urged by
Generalissimo Chiang Kai-shek.
"As
the
President's
personal
representative, Mr, Nelson will
goods to be used by
have
the
iest possible date for his return to
country in securing mar¬
we
might other¬
wise
of
has,
to
asked Mr, Nelson
much-be- kets which
these
in
interest
2
"Herald Tribune" by Raymond J.
dollars
billion
several
with
worth of
Nov.
Blair, follows:
ourselves) to supply England
ter, the apparent activities of
Great Britain and the United
as
vices
it to
(or perhaps
given in Washington ad¬
ment,
con¬
—
1941
proved by Congress and the Pres¬
ident fixed the future date as the
urged by Generalissimo Chiang Kai-
shek. The White House announce-'^
vinced the Administration at
the
of
rebuke
semi-official
has
The
Nelson, former chairman of the War Production Board,
September returned from a special mission to China, under¬
taken at the request of President
Roosevelt, was on Nov. 2 directed
by the President to return to China to organize a Chinese War Pro¬
duction Board.
According to the White House announcement the
myth—that the
"imperialism" and of
politics" in the ordi¬
nary sense is dead and gone—
has not fared very well of late, ports, quite reliable we are
either.
Russia's attitude to¬ told, that the wily English¬
man
Organize War Production Board There
who in
repaid but which should
in
part be recognized by
large gifts of money or other
things of value. - Recent re¬
age of
"world
change and fixed the traditional
date, the fourth or last Thursday
in November, set first by Presi¬
dent'■ Lincoln-in'-1864.
Donald M'.
Empire which can never
be
second
Thursday, November 9, 1944
President DirectsNelson to Reinrn to China
The Financial Situation
Imperialism in New Dress
FINANCIAL CHRONICLE
velt
experiment
of
an
earlier
Thanksgiving started in 1939, be¬
cause
this month has five Thurs¬
the
Associated
Press
on
into effect Nov. 1.
The Baltimore "Sun" in report¬
ing this said that Mr. Wienert has
been
more
with
connected
branch
the
Balti¬
since
September,
1919 and that during his period of
of Columbia have fixed Novem¬
employment he has served invariber 23 for the holiday in line with
ous departments of the bank and
the Federal statute, but Florida,
in the last few years has been
Idaho, Nebraska, Tennessee, Texas
and Virginia plan to observe No¬ manager of its accounting depart¬
Forty
States
and-the
District
ment.
vember 30.
In
The
two
States, Arkansas and
Georgia, there is a possibility that
both dates will be,recognized.
other
are
Baltimore
Assistant
branch has
Cashiers,
•
two
These
John A. Johnson and Donald
first
tried
F.
out the w^ek earlier date in
1939,
aging Director of the local branch
When
many
the
President
Governors
ignored
the
Hagner.
W. R. Milford is Man¬
and John R. Cupit Cashier.
■
2053
THE
Number 4332
Volume 160
COMMERCIAL & FINANCIAL
CHRONICLE
reporting identical mills, exceecled
Of Tirade
The State
(
-
2050).
....
4.10%, compared with a rate o
moment. Much
tin plate tonnage for export was
transferred from Chicago to other
districts, because of inability to
secure
sufficient labor there for
steel
major
is making
orders
refrigerators, 30,000
45,000
for
washing" ma¬
chines, while a Chicago firm is
planning to enter the low tem¬
perature field with an initial pro¬
duction of 25,000 cabinets and re¬
frigerator units.:, On the heels of
30,000
and
Septem¬
$799,228,980, compared
with $776,487,330 in September,
1943, while operating expenses to¬
taled $521,264,147, compared with
$477,986,227 in tne same month
_
totaled
of 1.943.
first
Pe¬
4,740,900
barrels.
This represented a de¬
crease
of 4,000 barrels per day
from the preceding week, but was,
however, 32,400 barrels in excess
of the daily average figure recom¬
mended by the Petroleum Admin¬
istration for War for the month
estimated
;
$7,080,522,174, compared with $6,714,139,539 in the same period of
1943, or an increase of 5.5%.
the
by
American
Institute,
troleum
operating revenues in the
nine months of 1944 totaled
discloses,
journal
contacting
are,
was
000,000 of
have
the
"This
:
The
of the year.
first
Institute states:
evidently
their
books in the period of initial civil¬
ian goods output in order to estab¬
with
to getting on
eye
an
themselves
lish
trends
regular
as
scrap '
the
In
tomers.
;■
1943.:
failed
to earn interest and rentals in the
first nine months of 1944, of which
Fourteen Class I railroads
cus¬
market,
substantially
were
eight were in the Eastern District,
one in the Southern Region,
and
un¬
past week.
changed the
railroads amounted
$1-39,620,826, a decrease of $3,263,718 or 1.9%0 under September,
to
business,
shared in their
in
five in the Western
.
and
Iron
American
pared with
and castings, com¬
week and
Oct.
the
District.
1,711,600 tons one year
)f
Production—The
Electric Institute reports
Edi¬
that
of electricity increased
to
approximately
4,358.293,000
kwh. in the ( week ended Oct. 28
from
4,345,352,000 . kwh. in the
preceding week.- The latest fig¬
approximate a decline of
2.1% from the level of one year
ures
holdings have actually
when output
reached 4,452,-
United
592.000 kwh.
above the corresponding
1943.. The 1944 calendar
week of
date, however, shows an
when compared
with corresponding period of 1943.
of 5:5%
$69,977,815
September
in
in total
period. State,
county,
municipal and foreign
bonds accounted for $160,000,000
increase of $2,770,000,000
holdings in the same
period's new investments,
issues
actually decreased $105,000,000 in
the eight months.
dex of mill activity
disclosed. The
ended Oct.
30 last year was 88.5% of capacity.
As for paperboard, production for
the same period was reported at
95% of capacity, against 94%'On
the preceding week.
'(
Retail Hardware Sales —Inde¬
rate
during the week
.
pendent
retail hardware dealers'
14% more in dol¬
September of this
sales averaged
lar
There
47,600
volume in
;fV
public
first
his
In
since his stormy
and millions"
order to get
in
self
defending it¬
reasonable
a
interpretation of many
"This is
no
anti-trust
Supreme Court.
laws from the
attack
on
•
the Sher¬
provided the supplies
and
rental?, was $89,126,460 and com¬
pared with a.net railway operat¬
ing income of $110,258,969 in Sep-;
tjgipberr 1943. It should be noted York' Official for foreign silver
that September is the 1,6th conse¬ continued at 44% cents, with do¬
cutive month in which .net earnr mestic silver at 70% cents.
jngp of. the carriers has shown a
Lumber
Shipments — The Na¬
decline.:
%
tional Lumber Manufacturers As¬
For the f'rst nine months of sociation reports that lumber ship¬
1944
net. • raihvay operating in¬ ments of 504 reporting mills were
7.1%
below production for the
come, before interest and rentals,
;
are
just as
unhealthy,
it
in industry an equiva¬
lent amount of scar tissue.
"And this doctrine of reason¬
up
unfortunately does not
Department of Jus¬
ableness
extend to the
tice, which has
American
introduced to the
scene
a
new
technique
Act, to the spirit of
28
nounced <m Oct.
South, .7 to
to 7%, and
Northwest, 7 to 10%;
Southwest, 4
Pacific Coast, 8 to 12%.
9%.;
\
Department store sales on a
country-wide basis, as taken from
Federal
the
Reserve
Board's in¬
ahead of a year ago
week ended Oct, 28. This
dex, were 11%
for the
the preced¬
ing week."/ For the four weeks
ended Oct, 28, 1944 sales increased
by 13%.
A 9% increase in de¬
compared with 8%? in
1944, over
the year
1943, was
Mild weather here in
New York
partment store sales for
to
Oct.
28,
It
was
of many
markets
noted
that the presence
buyers in the wholesale
was for the
puroose o1'
completing the purchase, of
Office
spring
thllc
Department
the Post
that
advises
Department has an¬
communications
of
a
the Treasury
nounced
are
commercial
not
actual
business or financial
transactions,
business, financial or
which
nature,
transmitted to liberated
without Treasury license.
be
may
Italy
The notice also says:
"For example, banks and other
;
financial institutions may reply to
requests
for
information from
their depositors in liberated Italy;
documents such as birth, death,
marriage
and
/
also noted.
•
Volume for retail food sales was
about 5% over that of a year aeo,
buying was again restricted to re¬
with shortages of butter and other
quirements for war industries.
The London market for silver was 'dairy products affecting the totals.
unchanged at 23%d.
The New Aside from this,\ supplies were
sources,
which
raises
of persecution.
Roughly 10% of
which I
its energies seem to be exercised
subscribe,"-1 .Mr. Wilson empha¬
in the courts, while the other 90%)
sized, "but the language of the
are
devoted to making speeches
law is value.' Business men have 1
and
writing articles
impugning
to rely heavily
on legal advice
the
motives of American busi¬
and
even
then they operate at
ness."
their peril, because what was con¬
sidered and declared to be legal
20 years ago, or 10 years, today
Business or Financial
may 'be the basis for prosecution,
Communications to Italy
all; think the administration of
Postmaster Albert G®man an¬
the anti-trust laws is one -of. the
man
cially true in
.
September,ret railway oper¬
ating income, hefore interest and
.In
post-war re¬
because it breeds attitudes
other Government operations
in
resignation from
Mr. Wilson said that
due to "vague" language of anti¬
trust laws, business must "spend
years
reporting this on Oct. 27,
covery,
appearance
WPB,
the
it breeds unhealthy
biggest obstacles to
expanded.! This
sales
by 6. Wilson
as
^Market by Sarnu
of London,
...
total holdings of these
but
me cpnesponcung weeK
■
the
of
was espe¬ worked
against'
expansion
of
handbags, costume heavier apparel sales, but hotthe carriers with the Bureau of
>.
the Corfesbondine Week
jewelry, drugs and cosmetics. The withstanding this, retail trade was
Raihvay Economics 'of the Assosame held true for durable goods,:
active the past week. Much inter¬
ciation of American Railroads.
with food, drink, apparel and gen¬
est was evinced in main floor, ac¬
In:the first nine months of 1944
•
.
,
r
0
eral merchandise sales topping the
cessory and gift departments with
estimated net income, after inter- the London
record set during the same period
department store volume, accord¬
e*t and rentals* totaled $502,000.-, Montagu & Co.
conrA
T
'
.... nn,i
ditions
rlifirinc'
m
in
tho
the
silver
eihipp
marlfP
lharket in 1943. Due to a rising demand ing to the. New York "Times,"
000, compared with $697,444,084 showed no change.Silver from among durable goods, a scarcity of
about 15% above the similar week
in
the corresponding period of official
stocks
with' occasional table and floor lamps was the re¬ of last "year.
/■'/
% ' •.>*
'•'•'■/
;1943..
•
: •
small offerings from production sult.
a^Si'hTfo reoo^mdW week howeverOct. deciine of(
ended a 21,"last,
tiled d>
and
vestments
from Atlanta, Ga.,
further remarks
his
follows:
system
1943 accoiding to leports
1943.
eight month new in¬
accounted for an
the
of
000
Wilson,
E.
United Press advices
indicated
year than for the same month one
The .report ofr the Solid, Fuels year ago, the "Hardware Age"
of New
output of Administration placed bituminous reported in its every-other-week
172,000,000 kilowatt-hours in the production for the week ended .market summary * appearing on
week ended
Oct. 29. 1944, and Oct. 28 at 12,150,000'net tons* rep¬ Tuesday last. This average is based
on reports from 1,194 independent
compares with 222,500,000 kilo¬ resenting an increase of 350(000
watt-hours for the corresponding tons, or 3%, compared with 11,- retail hardware stores in all parts
of the country.
1 ;■/',/
week of 1943, or a decrease of 300,000 tons in the preceding week.
For the first nine months
of
Production in the corresponding
22.7%. ' '
'
week of last year amounted to 1944 sales averaged 9%> more, in
Local distribution of electricity
dollar volume, than those enjoyed
amounted to 169,700,000 kilowatt- 10,026,000 net tons, while output
por Jan. 1 to Oct. 28, 1944, totaled in the first three quarters of 1943.
hours, compared with 213,200,000
Retail and Wholesale Trade —
kilowatt-hours
for
the
corre¬ 518,555,000 net tons, as against
490,227,000 tons in the same 1943 Activity marked retail and whole¬
sponding week of last year, a de¬
period, or a gain of 5.8%.
sale trade the past week for the
crease of 20.4%.
;
,
Estimated production of beehive country in general with moderate
Railroad Operating Revenues —
coke in the United States for the increases shown over a year ago.
Class I railroads of the U. S. in
week ended Oct. 28, 1944, as re¬ Dun & Bradstreet reported a rise
September, 1944, had an estimated
ported by the same source showed in retail .volume with all lines
net
income,
after interest andan increase of 300 tons when com¬
sharing
as
Christmas
shopping
rentals, of $55,400,000, compared
pared with the output for the gained momentum and seasonal
with
curities accounted for $4,835,000,-
biggest obstacles to post-war recovery" because
attitudes in other Government operations."
Consolidated Edison Co.
York, reports
Government se¬
States
President of the General Electric Co., ad¬
dressed a conference of utility executives in Atlanta, Ga., on Oct. 27
and criticized the administration of anti-trust laws as "one of the
against 91.6%) of capacity in the
preceding week, the American
Paper and Pulp Association's in¬
Production—The U. S. Bu¬
year to
"ncrease
decreased
$59,000,000." '
by
Obstacle fo Post-War Recovery
Charles
Production—Paper pro¬
duction for the week ended Oct.
28 was at 92.7%: of capacity, as
of Mines reports
26.7%
total mortgage
year,
Administration of Anti-Treist Laws Seen as
Paper
of
the output
ago,
Compared with a
apply to the coun¬
try as a whole, and do not reflect
conditions on the East Coast.
above figures
production
Pennsylvania
anthracite for
week
ended
Oct.
28, ./1944, at
1,319,000
tons,
an
increase of
14,000 tons (2.6%) from the pre¬
ceding week, and 278,000 tons, or
reau
14,323,000 bar¬
48,863,000 barrels
of distillate fuel,
and 64,224,000
barrels of residual fuel oil.
The
rels of kerosene;
period in 1942, an increase
25,886 cars, or 2.9%, is shown.
Coal
Electric
1943.
28, 1944. Storage supplies at
week-end totaled 79,058,000
barrels of gasoline;
similar
ago.
son
of
veek
1,707.200 net tons last
the
of
first
000,000.
gasoline. Kerosene output totaled
1,486,000 barrels, with distillate
fuel oil placed at 4,722,000 barrels
and residual fuel oil at 8,985,000
barrels during the week
ended
announced last
of steel ingots
approximately
since the
purchases of $631,000,000
between
margin
large
purchases and increases in net
holdings reflects the large proporiton of maturities, refinancing and
4,658,000 barrels of crude oil daily
and produced 14,117,000 barrels of
Steel
Railroad Freight Loadings—CarMonday
loadings of revenue freight for
that the operating rate of steel
the week ended Oct. 28 totaled
companies (including 94% of die
116,446 cars, the Association oi
industry) will be 96.3% of capa¬
American
Railroads
announced.
city for the week beginning Nov.
This was
an
increase of 10,505
6, compared with 94.4% one week
cars, or 1.2% above the preceding
ago., This week's operating rate week this year and 32,719 cars,
is equivalent to 1,732,400 net tons
or
3.7% above the corresponding
The
Institute
basis)
Mines
of
mortgages, the
of
case
experience has been even more
extreme,
due to large prepay¬
ments.
With total new mortgage
increased
since
the
"In
holdings of this nature
only $89,000,000
total
but
amounted to
of the Class I
previously not
have
which
mills
expenses
nine months
invested $858,-
companies of the country have
The life insurance
replacement necessary today to
the first
of October, 1944. When compared1 maintain
investments.
Over-all
$4,662,with the corresponding week last the life insurance companies made
587,502, compared with $4,042,year,
crude oil production was investment purchases of $6,484,reports
covering potential flat 251,523 in the corresponding pe¬
rolled steel demand for post-war riod of 1943, or an increase of 437,950 barrels per day higher. 000,000 in the first eight months
For the four weeks ended Oct. 28,
of the year, more than any pre¬
uses, some concern is developing
15.3%.
'
;
1944, daily output averaged 4,725,- war full' year's total of new ihover the availability of flat rolled
In the first nine months of 1944
950 barrels.
vestments and $1,829,000,000 more
steel in the period of unrestrained
the carriers paid. $1,419,213,781 in
Reports from refining compa¬ than in the same period of last
production after the war.
New- t.axes, compared with $1,445,072,nies indicate that the industry as year,
customers using sheet steel in ci¬
and yet total investment
858 in the same period of 1943.
a whole ran to stills, (on a Bureau
vilian goods production, the trade
holdings increased only .$2,554,For September alone, the tax bill
Operating
$858,030,030
Reserve Funds in Securities
policyholders' reserve funds in the securities of business
24.6%?
greater, shipments 18.3%
and industry in the first eight months of this year, to maintain their
greater, and orders 11.0% greater. investment in this portion of the American economy, according to
Crude
Oil Production — Daily an announcement by the Institute of Life Insurance on Oct. 27.
This
average gross crude oil production
is an increase of $348,000,000 over the purchases of this type of secur¬
for the week ended Oct. 28, as ity in the same period of last yearji>-
Total
preparations to place sheet
stoves
•
.
Operating revenues for
ber
"The Iron
appliance manufacturer
months-ended
Sept. 30, 1943.
reports
operations,
Age."
Prospects
for post-wat
business are growing.
A
12
the
for
5.89%
-
! Compared to the average cor¬
responding week of 1935-39, pro¬
duction
of reporting
mills was
of Policyholders'
Life Insurance loveslmenis
andv orders
2.6%
by
above-output. V
4.6%
ran
(Continued from page
■
into flame at any
packaging
production
certificates,, wills
legal notices m»v be ,trans¬
and
Italian and United States
mitted.
concerns
may
exchange business
correspond with
information and
respect to resumption of business
relationships without obtaining a
specific Treasury license.,:
.;♦'/•
"Persons desiring to send pow¬
ers of attorney, proxies, payment
orders, and similar documents fo
Italy, should apply to their; Fed¬
eral Reserve Bank for an appro-
private license.
)
■
1
■
:
ulb.-
.
"
;
maik,service now
certain provinces o*
•'The limited
in
effect
to
the Italy,
ihcMlihg 'SaiRinia
and
rule with /signs pointing to fur¬
sufficient and sales reflected a
Sicily,-Fikfexte^cled to include comther tightening of merchandise in
routine demand.
mumcattipascpf a commercial, fi' •
•
«'[t..
Retail activity
stimulated the many lines. ) '
According to 'the Federal Re¬ xianciak dr. T business -: character,
lines.
Allotments continued
Which were
serve
Bank's index, department which'are not actual business or
week by fill-instore sales in New York Citv for
financial
transactions,
although
orders and spring apparel buying,
the weekly period to Oct. 28 in¬
with most wholesalers rationing
enclosures of checks, drafts, se¬
creased by 19%
over the same
allotments sent to retailers.
period of last year.
This com- curities or currency continue to
Retail volume for the countrv
totaled
$847,884,524,
compared week ended Oct. 28, while new was'estimated- to be <6% to -9%: pare^; w'th 6% in th^pppcedipg be prohibited, m a
.
.
V
with $1082 556,139 in the same orders of these mills were 20%
For the four weeks ended
."Facilities Tor the transmission
over,the;same period of.19.433Svith week.
less than production for the same
Oct/28 sales fose' by 12%/' and for
period of 1943.:
period./' U n f 11 l'e d order files regional nerqentage increases as the vear to Get. 28 they.-jrpprovgd of .personal ; support remittances
o.In-the 1.2 months;ended Sept.
follows: Now England, 8 t6J>10%;
amounted to 9 l%k of stocks.
remain available."
30a 1944, the rote of return on
For, 1944 to date, shipments of East'and Middle West, 6 t8^%;' by. 9%.
;•: iu
{.\ro ' or. ■. •
property .. investment
averaged
j (:
f.i.
! - '.i
ndt ('I .
■v. v.
>i} :n
-T1
•*
j •.
.) i • J ■ >\'^ ■
rI* '*
r
.
.
wholesale
markets
featured the past
..
■
*
i
,
n:
a
•
n
'
'•
P
u!
■
.v
.i" r
■-
r
THE COMMERCIAL & FINANCIALLCHRONICLE
2054
Thursday, .November 9,: 1944
.
Treasury Issues Circulars Giving Details Of Lend-lease Foodie p Benes; Felicitated ByRoosevelt; Stetimius on
Allies for First Mine/i i Anniversary of Czechoslovakia Independence
The
containing the detailed terms and condi¬
official circulars
■!%% Treasury notes
and the 7/a% Treasury certificates, of indebtedness, which will be. sold,
together with Series E, F, and G Savings. Bonds, and Treasury savings
notes, during the Sixth War Loan Drive beginning. November 20, were
tions of the 2 V2-%
and, 2,% Treasury bonds, the
made available by
Morgenthau on Oct. 23.
Secretary of the Treasury
Details of the terms of the secur- ■&
in
which
have
Oct. 12 issue, page 1613.
date of Oct. 21
Allan
our
amount of bond stock
agent is authorized to.
any
on
hand is considered insuf¬
demands
meet the
to
ficient
Under
an¬
Sprout,, President, of the Federal ticipated during the drive, we will
Reserve Bank of New York, in a consider a temporary increase in
circular, set out instructions to such maximum upon receipt of a
request, therefor
issuing
written
District
statement of the facts
the necessity for the
increase;,
•. /"
3. During the months of Novem¬
ber
and
December,
all issuing
agents in the New York
qualified
for
sale
of panied by
United States War Savings Bonds, indicating
Series
E,. relative to their opera¬
tions incident to- the drive which
Will run from Nov. 20 to- Dec; 16.
These instructions follow:
accom¬
Although the formal period
the drive runs-from Nov. 20
1.
payroll allotment plans, are re¬
through Dec. 16, all sales of Sav¬ quested to report and remit for
sales not less frequently than twice
ings Bonds
made
during the
months of November and Decem¬ each week. Agents issuing bonds
ber will be included in the totals exclusively to persons under pay¬
for the drive, provided the stubs roll allotment plans should report
as
of such bonds are received by us sales
frequently as/possible.
in sufficient time to be processed More frequent reporting by all
not later than Dec. 30, 1944.
agents will facilitate our work and
of
of the large
r2. In anticipation
of Series
number
E
bonds to
be
Shipments
■
■'
■
lend-lease/ food?
of
from;
the United. States, to ; our.
allies in the first nine months, of
bii:pcL27vto the New;York /Times'' reporting this, further indicated.'
the
President Roosevelt,
current
represented a
proportion:. of
year
smaller
.
f /The
lend-lease
verse
by
as- re¬
;armecf countrymen abroad
our
forces-,; notably in the/ United?
Kingdom;,.- -Australia
and /New.
Zealand, continued heavy,; accord¬
ing; to the quarterly report issued
on
Oct 29 by Leo T. « Crowley„
Foreign? Economic Adipinistrator?.
which also said:;
"Figures now
available
that
indicate
received 149,000 long; tons
from
-
nations united, against ty¬
and can look forward con¬
fidently / to<. the
celebration/, of
return
both
future
/ anniversaries in the full
enjoyment/ of.unsuppressed free¬
in
sec¬
cumulative
by
United
and
supplied by
lend-lease.
•'
classifications,
the proportions of our lend-lease:
national
supply ..in
shipments
and
the first nine months of the year
to
wish
/..
.
//'I, look /forward
to
victorious / after
when,
great
war;,
the
day
for freedom, they
Veteran
least
Hugh E. Paine, Chairman of the Wall Street Blood Donor Cam¬
paign, announced on Nov. 3 the appointment of. 12. representatives
of member firms as- a New York Stock Exchange Committee to
direct the coordination of blood gifts from its community.. This
foods
shipped., from "the; United
States.
/,
■
'."./' //
■
group organized on Nov. 2 and pledged 250
pints of blood from their
personnel, to be given to the Red Cross commencing at 11 o'clock
on
Monday, Nov. 6, which hour*"
was
A. Rollka, New York Stock
reserved indefinitely for E.
members of the Stock Exchange Exchange.
On Tuesday, Oct. 24, a: donation
community, who will be can¬
vassed by their firm Chairman, of a pint of blood was undertaken
The goal is 6,000; pints, which is on the steps- of the Sub-Treasury
the
number
the
from
with, the
of
and
men
Building, in New York incident to
the launching of a new and co¬
women
who
fighting forces.
community
are
ordinated Wall Street Blood Donor
Members of the New York Stock
Campaign.
The American Red
Exchange Committee are: Walter Cross, the Wall Street Blood Do¬
A. Bone, Abbott,. Proctor & Paine; nor
Committee
and
the Army,
Herman Mars,. Adler, Coleman & Navy and Marine Corps partici¬
Co.; H. C. Hempstead, Carlisle &
Jacqueline Mary Ellen McGowan,
Eastman, Dillon & Co.; A. P. Mor¬
ris, Estabroek & Co.; Louis Delmonico,
Fahnestock
&
Co-.;
F.
Kenneth
Stephenson,
&
Sachs
Harris,
Lewis
Co.;
Upham
&
With
tion.
demonstra¬
beginning of the
from the financial
eran
district,
of the first world'
12th
Goldman,
Lundequist blood/,
Margaret
the
intensified drive for blood donors
his
Co.;
public
this
in
pated
it
in
Oct.
of
gave
pint of
the New
of
Emit
25.
New
d
everyone to donate blood to the
F; S. Moseley & Co.; Max SilberRed Cross, which has a goal of
inann, Newburger
& Hano, and 5,009,0001 pints for this year.
H.
Blodgett, Merrill Lynch,,Pierce,
Fenner &
President
vet¬
a
war
one
noted
was
"Times"
York
of
donation
Schram,
Stock
York
Exchange,
Beane;. Lillian Stolberg,
the
u r g. e
"Reductions
The Bank of Montreal in its Business Summary on Oct.. 24 stated
that "while the stubborn resistance which the German army has been
to
organize on the western borders of its home territory has
emphasized the severity of the fighting yet to be done before victory
is achieved, the British Government has so far adhered to its decision
to make a drastic curtailment by the close of the year of probably
50%
placed
in
of
its
war
Canada."
The
bank
The
that
reason
supplies
for
the
decision
is
pf certain types of
materials '
war
,
considered
are
amply sufficient to finish the war
In Europe, even if it is prolonged
do the spring/'The reduction will
chiefly affect -guns, rifles, shells
and some special types tdf weapons
and
instruments
which 1 -ate
no
needed.
There will4 still
be required by Britain; however,
considerable quantities of trans¬
longer
port and armoured
and
vehicles, radio
communications
other types of war
Since
British
of
numerous
ployment of
devices
and
equipment.
orders have
been
responsible for between 60% and
70% of Canada's total production
of war materials, their sharp cur¬
tailment will affect the operations
plants and the em¬
estimated number
an
of 150,000 workers.
cellations will give
But the can¬
further im¬
petus to the transfer of industrial
and
manpower
a
resources
the
to
production
which
of
civilian
goods,
of late has been in steady
progress, it being estimated that
already the percentage of the out¬
put
of
materials
war
manufacturing
been
50%.
kinds
reduced
As
of
the
to
total
production
has
to
unlimited
at
slightly
demand
civilian
for
over
many
reduction
major
14.6%
from
In poundage,
meat
last year.
pork constitutes the
movement in lend-
lease. "
r
"A
slight gain was noted'in the
movement of milk products, due
to increases in the proportion, of
whole
dry
condensed
of
orated
milk
and
skim milk., all
and
evap¬
29.4%Tof.?. dry-
of these being re¬
from
ductions.
the
1943•; totalsof
Lend-lease took 4.1%
nounced
tion
last
our
but¬
"We.
have
and 6.9%
of
was
high
scale:
as
was
the
same
recorded
for
the first eight months of 1944.
It is added
that "with the
year
our-
.
of
our
canned fruit and
lower than last
"Increased
noted
in
has
been
ington
that
has
six
of
of
Italy
to
an¬
received
from
international
been
mail
with
resumed
additional provinces
the
Wash¬
in Italy.
The provinces are: Ascoli Piceno,
Grosseto,
own
and
are
Macerata,
Viterbo.
vices. state:
Mr.
Rieti,
ad¬
■■VC'-.'/"
/////'/■
.
Terni
Goldman's
"The service is confined to per¬
sonal
cial,
correspondence.
Commer¬
financial or business com¬
munications
the
time
securities
cluded.
not be sent for
may
being.
Checks,
drafts,,
and
currencyy are ex¬
Facilities
are
not
yet
available
Survey Shows Veterans
Avellino, Bari, Benevento, Brindizi, Campobasso. Catanzaro, Chi¬
ef/ Cosenza, Foggia, Frosinone,
Lecce,, Littoria, Matera, Napl.es>
Pescara, Potenza, Reggio Calab¬
ria, Rome/ Salerno,. Taranto, Te-
Expecfte Return
To Pre-War Jobs
•
The
great, majority
surance
in the
to
return
when
to
of life in¬
women
their
are
who
to; the
Insurance;
jobs
pre-war
stated:
on
Oct.
The
25
just made
by
Instituteshows that most
the
percentages
and
corn
were
dried
ucts."
well
there
are
vigorously
problems
n
sion.
wheat
and
their
or
same
;
company.
matters,
close
prod¬
being
offices today.
The companies are
definite plans to make
certain' that those whq left to join
the armed forces are quickly re¬
up
established
in
satisfactory
to
the
post-war
ployment when they return.
In
some
cases
they are not only
formidable j
studies
reconver¬
in
an
endeavor
the returning veterans
tively.
to
findings,
place
most effec¬
ap¬
stated:
'
'
:•
Dealers, Inc.: In
the-
./
Commission
v1/
"We think the record of Sisto's,
relationships with Sisto Financial'
Corp. and with Barium Stainless
Steel Corp. has
vance
a
particular rele¬
to the issue whether
Sistovs
underwriting activities should be
facilitated
become
a
by
permitting him to
member
of the
em¬
planning to reinstate them in their
old jobs, if they want them, but
who
into
its
last
auarter., are planning to help any
convincing evidences may not want to return to the
old job to find other employment.
government and busi- |
Some of the companies are mak¬
addressing themselves
ing
detailed
individual
case
of
the
plication of J/A. Sisto & Co.,. New
York City, for admission to mem¬
its.
.
given
especially
by life insurance
Exchange
denied
tion of Securities
equivalent jobs with the
attention
and
has
bership in the National Associa-
of the
"Adequate provision for thereturning service men- is one of the
Securities
Commission
/;/■'/" '•//,
survey
City State.
Sisto Plea Denied
ac¬
of Life
Institute
which V
ramo, and with Vatican
are
expected
they leave the service,
cording.
"A
and
men
armed forces
setting
year's.
fruits,
canned
vegetables and dried peas. There
was no
change in percentages of
are
On
12.1%
juices.
The percentage of total
supply in each of these categories
goods is almost
year
sent
(all In the form of dried
eggs), 15.9% of our edible' fats
and oils./10.3% of our canned fish
eggs
ness
the
plans
Oct. 30 that informa¬
on
service
7
year.
both
of
at
and
its
Post Office Department at
Butter under the life insurance
companies expect
Lend-lease
program is shipped
70% to' 100% of their former em¬
only to the Russian Army, pri¬
ployees to return to their pre-war
marily for use in hospitals,
ter
that
balance
has
for registration, insur¬
the average United /: "This occasion makes it appro¬ ance, air mail, parcel post; and'
States civilian gave up two-tenths
When conditions;
priate to recall the great contribu¬ money orders.
of an ounce of beef and veal per tions which the
people of Czecho¬ warrant, personal support remit¬
tances will be authorized by the
week in the first nine months of slovakia/have
always made in
the year, a 50% reduction from
maintaining freedom, in advancing Treasury and War Departments.
the weekly average last year.
civilization and culture, and in The weight limit on letters from,
the United States is two ounces
"A striking reduction was noted forwarding
international
coop¬
also in lamb and mutton ship¬ eration.. .May they long continue and on those from Italy 40 grams..
The mail is subject to censorship.
ments, which this year have taken in that role."
7.5%
of
our
total
suonly ■' as
/ "Previously
service
was
re¬
sumed with Sicily, Sardinia, and
against 11.2% last year.
We have
sent 13.8% of our pork supply, a
the mainland provinces of
Aquila,
general level of activity for the
the
Rehabilitation,,
this program,
now
to
//■/:•'*
Additional Mail
have- boldly facing the despoilers of
shipped under lend-lease 8.1% of Europe, and wisely planning with
the other free-spirited nations for
our supply of all meats - (dressed
weight basis) as compared: with a sound; and just peace when that
9.3% last year.
The most strik¬ struggle shall have been won.
ing change was in beef and veal, They are winning their fight for
where .the proportion this year is freedom/they, with all the United
0.8% of national supply as against Nations, propose to win the fight
1.7% last year.
In maintaining for lasting peace.
;
present, conditions
maintenance of the
point
\
one' already
we
year
posts
orders ^
goes on to say:
This
meats.
12.2'%
likely To Cut Canadian War Orders By 50%
about
the
milk and cheese
shipments.
However, we have
sent
only 3.6%
of our butter,
Proposed Curtailment 1st British War Supplies
'•/'
'
percentage of total national- sup-: Czechoslovakia, within. their
ply were shown in all classes of country as well as abroad,
our
able
in
//'
■
other / returning,
Postmaster Albert Goldman
///Today is the/anniversary of the
founding,/ of the
Republic
lend-lease: Czechoslovakia.
The
people
•
'
/
-
.,///
successfully in operation.
Exchange Committee Named te Dires!
Coordination af BSood Gifts Front Wall Street
from.
men.
a
ex¬
total
cooperating with local offices of
continue, to work, in harmony for
their mutual; security and welfare
during
Sleek
addition,
companies
materially - to
working out special plans for the
employment of disabled veterans,,
can
were
lower
in
12: ' instances',
in. a peaceful world."
the drive, issuing State War Finance Committees:
Ini the same advices it was noted
agents are urged to requisition in which will disseminate sucb in¬ higher in- six and unchanged in
two.
In terms of/ volume, how¬
advance an
that Edward R. Stettinius Jr., Act¬
adequate supply of
formation
among
the
county ever, lend-lease continued to sup¬
bond stock so that they will be
ing Secretary of State,, in a state¬
chairmen throughout the Second
ply about 10%
of the British ment said the
prepared to make prompt delivery
people of Czecho¬
requirements and to play an Im¬ slovakia were
of bonds during the drive. If the Federal Reserve District.
winning their fight
portant, part in sustaining the ra¬ for freedom
and, with all the
tions of the Soviet Army/ The
United, Nationsv - would win the
United Kingdom, and the U.S.RJFL
fight for. lasting peace. Mr., Stetreceive virtually all lend-lease tinius said:
issued
these
add
.
/ Several ; life ; insurance, com¬
panies, it is announcecd, are now
second
a
to
service
/
•
v*
-:
few instances, the
a
remain. V In
of
personnel
ceased
never
to
pect
expression since
President Wilson.
■;//'/// -;'';///%; -■
"Of 20 basic food
have
concrete
employees and
also shows; the companies
number
the days of President Masaryk and
Australia and New Zealand as re¬
verse
States
-
to .find
office
that,;, in addition to ab¬
sorbing, all/ employees returning
from service, they; can also keep
those added during the war who
are
homeland and the rest of
in the- South
troops
our
Southwest Pacific is
Refresher
believe
received" from
total
home
survey
our
today so bravely contrib¬
uting,. to. the/liberation of their
quarter of 1944,. bringing, the
jobs.
being established for
are
In all hut
arras
-
their
to
agents' in the field."
domi-A: Vv /
-
.
.
up
courses
...
Europe.
i/."Thc close ties and deep sym¬
democratic
that country to 594,3-7.0 tons;. More- pathy / between ; the
than 90% of the food'consumed peoples; of. Czechoslovakia and the
ond
will enable us to furnish accurate
up-to-date sales reports to the
of the
■;// ;-x %;//
/ "We /. Americans
salute
.
.
companies are now set¬
special programs for re¬
training these employees as they
ranks
ranny,
who
of food
the
Australia alone in
the
in
Czechoslovak comrades
re-
;we
,v:;
—
insideipzechoslovakiadiave joined.
Ipiyely and gloriously with their ting
national supply than in 1943,
our*
while the volume received
as saying: /,
and. .armed, forces^
people
.
.
a
agents, except those issuing bonds
exclusively to persons enrolled in
•
..j-
generally
maximum
previously made, available
Mi-... Morgenthau, were given
itries,
by
In congratulating President Eduard Benes
(in London) on the
occasion., of /the anniversary of the independence of Czechoslovakia,
Months Decreases
.
"Sisto's past
of
record
is
NASD.,
not
one
sporadic defections but rather
one
of
a
repeated pattern of action
in which the
use
of
affiliations for
personal benefit at the
others
factor.
seems
to
be
Under- the
we
cannot
the
public
find
it
dominant
circumstances,
appropriate in
interest
application."
expense of
the
to
grant,
the
2055
•Volume 160\ Number
; Favorable
THE
4332
COMMERCIAL & FINANCIAL
Outlook for Post-War Trade Between English Gold
Latin America and U. S., Guaranty
CHRONICLE
Announced By
Treasury's Office of Surplus Properly
National Selling Program
and
Silver Markets
Trust Finds
indicating the views of
,
however,"
the trust company,
anty
refrigerators,, etc.!
textile prod-'
ucts also are prominently listed.,!
"Among
desirable n plans and
preparations for expanding trade
and promoting economic/cooper a/!
tion, by far the greatest emphasis
says equipment,
Chemicals
in its "Guar¬
Survey" of Oct. 31, "the ex¬
treme
uncertainties that still sur¬
round such
fundamental questions
relations, trade
international
'as
enterprise, currency
•stabilization and tne prospect of
lasting peace."
"Our correspon¬
dents believe," continues the "Sur¬
barriers, free
placed on two requirements:
better transportation facilities and
sounder commercial methods. The
need for improved transportation
is felt chiefly in ocean shipping,
is
vey," "that rare opportunities for
trade expansion exist but that the
•extent to which these opportun¬
.
.
and fine
England
•
during
.
July, August and
was/unaltered at
of
what he
announces as
the months of
September 1944
£241,718... :
buying
%The Bank of England's
Russell
will
goods
right
each regional
of¬
"Surplus Reporter" says
Mr.
fice".
A
available
be
door'-to
'next
-
Duncan, "is to
be issued from
price for gold remained unchanged
each regional office at regular in¬
at 168/-'. per fine ounce, at Which
tervals. This will advise firms on
figure the above amount was cal¬
Treasury's mailing list what the
culated.'
■ '• ■ •; -V",
The Transvaal gold output for Treasury has to sell, the area in
of
June,
July
and
which material is
method
_____
important, in the Latinview, is the require¬
that traders in the United
June
ment
;exch&nge in the United States and
abroad have reached the equiv¬
says:
——
July
States give more attention to the
$3,000,000,000,
adaptation of their products and
of which about two-thirds consists
their trading practices, including
of gold, mostly in this country,
terms of credit, to the needs and
and half a billion of United States
customs of their Latin-American
dollars," the trust company in its markets and sources of supply". - f.!
monthly "Survey"
reviewing
"A second need is believed to
business and financial conditions,
be the quickest possible restora¬
alent of more
1943
as
American
.
August
___
./.,.V;"/-.-/:;
jgotiation or otherwise, the pros¬
1,064,572 fine ounces pective purchaser will be so ad1,089,708 fine ounces vised. !
// :1,059,932 fine ounces
"The new system will discon¬
.
than
:•/,;
■
Silver
//://
ket-showed
no
change
.
of automatically
to bid. In the
future, those interested will re¬
and
quest invitations on specific items
■•/••
Mar¬
tinue the practice
sending invitations
throughout the three months un¬ after they have received notice of
der
review the price remained what is available.
unaltered
at
23!— per ounce
"The new plan will cut down
standard for both cash and two
To a cer¬
enormously the amount of paper
j.
.
.;/. /
Conditions in the London
:
.
,
"The
new
machinery for
using'
working
be
—
Almost
Through Banks
Working Satisfactorily
located and the
used to sell it."
gether with figures for the cor¬
Mr. Duncan ' s announcement
although in some cases the pri¬ responding months of 1943 for the
continued:
purpose of comparison:
/ •:
mary stress is on internal trans¬
ities can be realized will depend
"Interested purchasers will then
port as a prerequisite to the gen¬
1944
in large measure on the success
'.'''/'.A contact the regional office and
eral economic development of the
with which the world meets the
1,038,331 fine ounces indicate their interest. If dispo¬
country.
The
possible
helpful June
difficult task of reorganizing it¬
1,039,851 fine ounces sition is to be made by invitation
effects of lower freight and tariff July
self for a peaceful and prosper¬
1,053,954 fine ounces to bid, forms will be sent. If sale
rates and more liberal trade regu¬ August—ous existence."
will be made by fixed price, ne~
lations receive frequent mention-
'■-% Pointing out that "Latin-Amer¬
ican holdings of gold and foreign
Redemption
which will
.
August/1944 is shown below, to¬ general
War Bond
qualified commercial banks and
trust companies
to pay eligible
United States Savings Bonds is
..
the'months
"a National selling'
of interest to all purchasers olf surplus property,"
C. Duncan in Charge of Sales and Merchandising of Treasury's Of¬
fice of Surplus Property stated on Oct 28, that "no longer will it
be necessary for persons to contact each of tJbe 'eleven regions of the
country to determine what surpluses are available because informa¬
tion
on
all large quantities ot
—
——
•program
v
favorable."
They recognize,
furtherance
In
We-reprint below the quarterly
Latin-American bankers and business bullion letter of Samuel Montagu
men as to the possibility and need for a large post-war trade with
& Co.,-London, written under date
Latin America, the Guaranty Trust Company of New York states that of Oct. 2:
the replies to its request for expressions of opinion, tend, for the
,Y///
Gold
most part to "support the view, that the general outlook for post-war
The amount of gold held in the
trade between Latin America and the United States is decidedly
Issue Department of the Bank of
In
satisfactorily,
demptions now seem to
and re¬
be taper¬
Secretary Morgenthau
2,
"I believe this
indicates," he continued, "that the
great majority of investors are
patriotically determined to keep
their money in the fight for free¬
dom, victory and peace.
.•
'
"While redemptions in October
ing
said
off,"
on
Nov.
amounted
to
$400,000,000,"
said
Morgenthau, "some of the in¬
crease
may be explained by (1)
the delayed cashing-in of bonds
to
take
advantage of the new
Mr.
simpler and faster
procedure in¬
augurated last Oct. 2, and (2) mis¬
understanding iri some quarters as
to the reasons for the new re¬
demption machinery, some people
interpreting the Treasury's an¬
nouncement of Aug. 29, [which
tion of free enterprise.
substantial hold-! tain extent, the evil of govern¬ months' delivery. Silver from and manpower consumed in the appeared in our issue Sept. 7, page
1961 J, as a request by the Govern¬
official, stocks,
with occasional
ings of gold and foreign exchange mental interference under present
process
of disposing of surplus ment to exchange their bonds for
small offerings from production
have been built up through Latinconditions is recognized as un¬
and at the same time furnish more1 cash.
This, of course, was not the
sources, provided the supplies and
American countries supplying
avoidable; but, in the words of
complete information of things to case."
' 1 / ■
large quantities of their products one correspondent, 'it is an evil buying was again restricted to re¬ sell.
Mr. Morgenthau added:
quirements for war industries.
to the United
States and other
still, and I hope that all countries
"The new plan will eventually
"While there are over 50,000
There. were, however, interest-1
nations allied against the Axis, will realize the need for a grad¬
cover all eight divisions of Treas¬
issuing agents in the country,
.while their opportunities for pur¬ ual return to other forms of or¬ ing developments in the Bombay
ury's Office of Surplus Property there were only 37 paying agents
Market.
The Government's inten¬
chasing foreign goods have been
ganization, where more liberty
consisting of the following: Fur¬
(the 12 Federal Reserve Banks
.limited
by
necessary
wartime will be given to the individual tions regarding the sale of Amer-1
niture, Hardware, Machinery, Au¬ with their 24 branches and the
-trade restrictions and transporta- and less power to the state, which icaq lend-lease silver were not
tomotive, Textiles and Wearing Treasurer of the United States)
-tion difficulties. As a consequence*, is the essence of democracy/ V
V1 made known as early as antici¬ Apparel, Medical and Surgical, before Oct. 2, compared to some
there has accumulated presumably
"A third requirement is .the es¬ pated,, and this led to a demand Paper and Office Supplies/ and
Jt3,000 paying agents under the
to cover short, sales; as a result
^ large volume of deferred de-General Products."
"
tablishment of currencies on >. a
system now in effect.
/ /
the -price was forced up to Rs.
mand for goods from other coun¬
sound basis. 'Currency manipula¬
Mr. Duncan further stated that !
"Redemptions for the month of
139-8-0 per 100 tolas (equal to!
tries, including the United States.
October amounted to 1.06% of the
tions/ according to one corres-.
the Washington Office of Surplus,
I "Many industries in this coun-i pondent, /besides being economi¬ 61 15/16d. per ounce standard)!
amount of all U. S. Savings Bonds
In the meantime, Property will act as a policy,
'try, with their productive capacn cally harmful, are also politically by. July 31st.
pricing and directorial staff, aud outstanding. This compares with
a deadlock had arisen in the Mar¬
ties greatly expanded during the dangerous, as theycontribute to
a redemption rate of 76/10Qtbs of
as it is organized on a commodity
ket owing to the refusal of Bulls
•war, will be in an excellent posin
destroy the middle classes and
division basis, each of the 11 re¬ 1% of the amount outstanding in
to comply with the resolution of
tion to meet an augmented Latin/
September and 85/100ths of 1%
place power in the hands of ex¬
the
Bombay Bullion
Exchange gional offices are being set up
American demand for their prod-i tremist
parties, who have,
or
•with;- eight
commodity depart¬ of the amount outstanding in May,
which permitted the renewal of
ucts—will, in fact, probably be think they have, all to win. and
ments to confirm with Washing¬ the highest previous percentage of
ready: delivery contracts under a
in urgent need of such a demand;
nothing to lose through political
ton.
In charge of each of these redemptions in a single month.
penalty of one rupee to the buyers,!
The same will be true of our mer¬ or military adventures.'
The suc¬
"With / $42,700,000,000
Regional Departments will be a
of
all
Bulls claimed that the resolution
chant fleet, which has grown to cess of plans for currency stabili¬
marketing specialist, who
is a U. S. Savings Bonds issued from
was
contrary to the Defense of
enormous proportions as a result zation 'will largely depend on the
seasoned business man, familiar the beginning of the program in
of
emergency
requirements for ability of all governments to re¬ India Rule prohibiting forward with trade practices in his par¬ March
1, 1935, redemptions for the
dealings in silver and insisted on
shipping facilities and can be duce their expenditure.' "
ticular field. It is added:
same
period aggregated $5,100,fulfilment
of contracts; on the
kept adequately employed only if
"Present mailing lists are being 000,000, thus leaving 88.1% still
other hand Bears claimed pro¬
overseas trade is maintained at a
invested in these securities."
tection from the Bullion Exchange, completely revised and those on
high level."
It was in view of
Board, maintaining that the posi¬ the regional mailing list are be¬
these conditions, all of which, says
tion
had
been created by
the ing sent a form to check and re¬
the "Survey" point to the possL
To
Board's rules on the understands turn for the information they de¬ Amend
bility and the need for a large
ing that physical delivery would sire..::'
post-war trade with Latin-Amer¬
President Roosevelt in sending
"Treasury's 11 Regional Offices Loans to
not be called for.
The matter was
ica, the trust company recently anniversary greetings to President
referred to the High Court and of Surplus Property and the States
asked for expressions of opinion Ismet Inonu of Turkey, on Oct;
The Board of Governors of the
on August
4th it was announced they comprise are as follows:
concerning the outlook from those 30 had the following to say ac¬
Federal
Reserve System an¬
that trading in silver would be
"Region I—Connecticut, Maine,
regarded as "well qualified to cording to Associated Press ac¬
nounced on Nov. 4 that it has
suspended until further notice as Massachusetts, New Hampshire,
speak on the subject." In further counts from Washington Oct. 30;
a
result of an interim injunction Rhode Island, Vermont. Region II adopted Amendment No. 14. to its
making known their view, the
"Upon this national anniversary restraining the Bullion Exchange —Pennsylvania, New Jersey, New Regulation W, relating to con¬
"Survey" says:
sumer credit, the amendment be¬
of
Turkey
the people of the from enforcing their resolution.
York.
Region III—Washington;
"In most cases, our correspon¬
coming effective Nov. 6.
The
United States join me in sending
A On ; August
7th the Reserve D, C.,. Delaware, Maryland, North board
dents believe that the greatest op¬ to
says:
you and to the people of Tur¬
Bank asked for tenders for 200 Carolina, Virginia.
Region IV—
portunities for expansion of their key
"The
congratulations
and best bars of silver and some 150 bars Indiana, Kentucky, Ohio, West
purpose
of Amendment
export trade lie in those prod¬ wishes."
// ./- -J. r
,/ .were tendered for and .accepted Virginia. Region V—Illinois, Mich¬ No. 14 is to exempt from the pro¬
ucts, mainly agricultural commod-i
visions of the regulation any loan
In the New York "Times", of
at Rs. 131 and over; on the fol¬ igan,
Minnesota, North Dakota,
ities, that have formed the maOct. 31 it was stated:
/■//,/;; lowing; day it was reported that South Dakota, Wisconsin. Region guaranteed by the Administrator
stay of such trade in the past. It
Alabama, Florida, Georgia, of Veterans' Affairs pursuant to
Turkey celebrated the 21st an-- the/ Reserve Bank would offer VI
is recognized, of course/ that new
200 bars of silver daily and these Mississippi, South Carolina, Ten¬ Title III of the Servicemen's Re¬
industries have developed in Latin niversary of the declaration of the
1944.
The
Region VII — Arkansas, adjustment Act of
sales eased the situation in the nessee.
.'America as a result of wartime republic "with unparalleled shows
Market. Dealers were reported to Louisiana, Oklahoma, Texas. Re¬ amendment is as follows:
"conditions and that their existence and parades," the Ankara radio
"Amendment No. .14 to Regula¬
Ambasador Joseph C. be settling dilierences direct with gion VIII—Iowa, Kansas, Missouri,
'may affect future trade relations/ reported.
Region IX—Colorado. tion
issued by the Board of
each other on a basis of Rs.134 to Nebraska.
'for a time at least. There is con¬ Grew congratulated the Turks in
Mexico,
Utah,
Wyoming. Governors of the Federal Reserve
Rs.135 and it was estimated that New
.
•/
siderable doubt, however, that the a special broadcast.
The
Columbia
Broadcasting the Targe majority of the trans¬ Region X — Arizona, California, System/.j j,,'
-majority of these new industries
Region XI—Idaho, Ore¬
actions outstanding were adjusted, Nevada.
"Regulation; W
is hereby
can permanently operate in inter¬
System recorded the broadcast,
amended, effective Nov, 6, 1944,
national
competition at levels which quoted Mr. Grew, who had leaving only a few to be settled gon, Montana, Washington.
by the Court should the parties
by adding to section 8 entitled
high enough to .make them major served as the first United States
concerned so decide.
s
at lower rates^ and arrivals of sil¬ 'Exceptions'
factors
in the aggregate trade Ambassador to the Turkish Re¬
the following new
ver from up-country hastened the
subsection:
The Market re-opened on Aug.
situation.
public, as saying that the achieve¬
decline in price and Rs.119-6-0
prices showing an
"(q) Servicemen's
Guaranteed
"Opinion is almost unanimous ment of Mustafa KemaLAtaturk 24th,-; with
easier tendency on favorable war was touched on Sept. 21st (this
Loans—Any extension of credit
that the greatest possibilities for and Ismet Inonu 21 years ago
post-war
expansion of United "could be compared to that real¬ news, and sales by the Reserve price equals about 53d. per ounce guaranteed ,in whole or in part by
Bank proceeded until, owing to standard).Subsequently, bear cov¬
the
Administrator of Veterans'
States exports lie in industrial and ized by the United States. In both
the steady fall in prices, tenders
ering caused a slight rally and the Affairs pursuant to the provisions
agricultural machinery, transporcases,
strong foundations were were at prices too lowAo- be ac¬
tation equipment.. building maquotation on Sept. .^9th was Rs, of Title III of the Servicemen's
laid down and both nations .went ceptable.
Peace rumors, reports
Readjustment Act of 1944."
terials
and
durable consumer
that the Reserve Bank would sell'121-12-0.
forward in strength."
goods such as electrical and radio
"These
c
very
■
,
*
•
1
Anniversary Greeting
Rule W On
Turkey By FDR
.
Servicemen
,
•
—
^
*
'
.
•
THE COMMERCIAL & FINANCIAL CHRONICLE
loans
Of
Problem
(Continued fr
sound
monetary and credit prac¬
tices at
home, and otherwise keep
their financial houses in order
can
the exchange values of
their cur¬
permanently
main¬
When such policies are
be
rencies
tained.
followed, no international fund is
required to keep exchange rates
at parity. When they are not fol¬
lowed, any attempt to enforce an
arbitrary and unreal stability is
not only futile but dangerous."
Perhaps, and wisely so, it was
•
deemed
matters
these
that
best
should be left for automatic solu¬
tion
be
to
or
indepen¬
adjusted
dently by each nation in a man¬
ner
that
All
evils
its
suits
cured
are
interests.
own
by time, but
before the slow evolutionary pro¬
cesses
involved
tation
are
in
adap¬
natural
worked
out, the whole
handsome structure,
so
ostenta¬
tiously set up amid the rugged
beauties of the White Mountains,
collapse or become obsolete.
Certainly,
if
the
International
Monetary Fund and the Interna¬
tional Bank for Reconstruction and
may
fulfill the
expected of them, they
Development
purposes
transition period from a
to a peacetime economy.
This would imply that all prob¬
lems relating
both directly and
indirectly
to
international
ex¬
change stabilization and monetary
harmony should be worked out
simultaneously and should not be
ing the
.wartime51
exigencies of haphazard
and independent adjustments.
As
stated
in the well-known
Macmillan
in
Kansas
Report
Parliament
to
1931, "it is highly desirable
throughout the world the dis¬
that
City, in his monograph on
Post-War Role of Gold,"
"The
r-
"The situation in which important
hold
countries
rise
which
effect
without
any
markets and
the money
on
reserves
excess
fall
and
the
purchasing of the commun¬
ities, is incompatible with the ef¬
fective
operation
of
the
gold
standard. The various money mar¬
kets
not
must
of
effects
the
insulated" from
be
gold
not merely
means
;i:ii
;> "a
1
It may be
of interest in connec¬
tion with the solution of the prob¬
lem
review
to
briefly the redis¬
tribution of
gold reserves' follow¬
ing the First World War.
When
hostilities ended late in 1918, the
central banking reserves of ■ the
leading countries were slightly
under $8 billions (old value), esti¬
mating Russia's supply at about
$666 million.
Of this total, the
United States held approximately
$3 billion.
The remainder was
largely comprised in the reserves
of
Great
Britain,
France
and
Switzerland.
The Central Powers
Notwithstanding
and
abroad
efforts
the
to
the
belittle
importance of gold reserves in fu¬
ture monetary adjustments and in
effecting the settlement of inter¬
national balances, it appears quite
that the
clear
basis of the whole
structure of both the International
Monetary Fund and the Interna¬
.
the
nations experiencing an in¬
adequate amount of gold for for¬
eign exchange purposes, struggled
to obtain the necessary supplies
in order to return to a gold basis,
and,
result,
as a
distribution
of re¬
a measure
finally
was
accom¬
plished. All belligerents, with the
exception of Great Britain and
tional Bank is the recognition that
gold (or its equivalent in United
States dollars) is to continue to be
the United
the
and
international
dium.
The quotas
both
to
the
Fund
exchange
me¬
of their
and
the
Bank
Bank's
contributions
to
the
capital are specifically set
being payable in gold or
as
up
present weight and fine¬
The
ness.
tion in
Germany, Austria, Russia,
Poland
resulted
4pf contribution tinguishment of
stated in United States dollars
are
States, resorted to cur¬
devaluation.
Hyper-infla¬
rency
dollars—and it is
specifically pro¬
vided that any
loans made or
guaranteed by the Bank, regard¬
less of the currency in which it is
made, must be repaid in its gold
equivalent at the time the loan is
medium
and
the
for
the
ex¬
the old exchange
left
creation
France
in
the
of
devalued
way
new
at
open
money.
about
one-
fourth of its previous gold parity
and
Italy adopted a similar policy,
but
England gradually restored
the old unit of value and in
resumed
1925
the
redemption of Bank
England notes. Several South
of
American
with
made efforts,
temporary success, to¬
some
ward
gold,
countries
linking their currencies to
that within
decade after
made, thus assuring the Bank
against losses due to currency de¬
preciation in terms of gold.
Assuming the retention of these
provisions, should the actual func¬
tioning of the Fund and the Bank
despite
take
time
Great
gold
standard, the United States
so
the world
oeace
international
All
a
was
again
meant a process of a
redistribution
of
gold,
the
fact
that
to
the
restored
the
up
continued
nations be
supplied with the gold
they should normally re¬
quire. But nothing along this line
has
as
yet been done or even
metal.
reserves
historical
widely and openly discussed. Yet,
factors may be said to have
denied
cannot
be
a
serious
lack
the
there
is
equilibrium in
distribution' < of the
present
world's
that
of
monetary gold.-." '
The
more
end
disequilibrium.! isufteven
pronounced than'after the
of the last war. I The ( mal¬
adjustments
in
the
trade
and
which
were
likely to
again, and the ul¬
through" may fol¬
the same unpleasant
occur
along
lines,
chaos
experienced then are
"come
timate
low
international
monetary
unless
means
are
action,,)?
taken
discovered in
to avoid the mistakes and
of
the
Charles
of
the
past.
As. stated
or
advance
mishaps
by
Dr.
an
this
gradual
place, it will be extremely
important to the success of its
operations that the participating
it
on
gold standard basis.
Britain
to
accumulate
the
going into the
regarding the
methods i by which this
change
was accomplished, three
principal
a
played
part in the restoration of par¬
tial equilibrium.
the so-called
First, there Were
stabilization, recon¬
struction, apct-other loans which
were
ma^e by the United States
Government and private investors
to foreign countries.; These, com¬
bined, are roughly estimated to
have been as much as $25 billions.
A large part, of these loans, how¬
played little naft in restor¬
ing monetary stability, since the
proceeds were used to purchase
goods in th.e United ^States and
ever,
elsewhere. j{.ill
Another
the
method
.
employed
■
was
creatiqmof foreign balances in
standard countries through
Federal Reserve Bank of J exports
or.-through, short term
O.'Hardy) Vice-President
gold
from
$711 million to $3,257 mil¬
lion.1
Some of
account.
semblance
a
exchange standard.
was
officially
the
Genoa
gold stand¬
of
the
gold
This standard
recommended
by
which
spring of 1922, to con¬
sider the problems of financial re¬
construction, and was adopted by
several of the newly established
Conference,
met in the
nations
such
Poland, Czecho¬
Hungary. Argentina
as
slovakia and
and Mexico also restored the sys¬
tem. It did not, as a whole, work
its
successfully.
The
for
reasons
failure, particularly after 1929,
will
be
discussed
later.
But
it
this
increase
may
be ascribed to the
repatriation of
capital following the re¬
valuation of the franc, but the
bulk of it arose from the policy
of
creating a favorable balance
of payments, and the making of
France
the leader of the "gold
bloc" nations, in opposition to the
"sterling area."
French
The
payments of the borrowing coun¬
try. Otherwise, the gold proceeds
are
likely to revert to the very
nations from which they were de¬
rived.
A monetary
stabilization
loan, if it is to accomplish its
purpose, should be granted only
to
a
country that has, or will
have, under normal conditions, a
favorable
Such
struggle that France main¬
tained against the incursions of
for
the
a
and
British
American
policy
of competitive exchange deprecia¬
tion, ' after Great Britain aban¬
doned the gold standard in 1931,
was
not in vain, since the Tri¬
did, for a time, assist in correct¬
ing a bad foreign exchange situa¬
partite
Agreement
for
further
of the countries that
some
to
it, though it even¬
proved to be somewhat
tually
its
to
the
creditor
nations,
Great
and
Britain
States.
It
because
was
withdrawal
as
United
the
of
the
of
foreign balances
created
by the gold
exchange
countries in 1931 that led directly
to
the
suspension of the gold
standard by Great Britain.
metallic
of
of establishing
dispensing with a
means-
rather,
or,
of
reserve
international
was
tile creation
monetary
,
or
ex¬
change "areas," or "blocs."
The
in reality, a phase of
gold exchange standard, ex¬
cept that an "area" may not con¬
system is,
the
stitute
which definitely
links its currencies to gold. The socalled "sterling area" is the out¬
standing example of the system.
a
group
This consisted of
group of coun¬
a
had
the cessation of
exchange depreciation of
HI
'
and
such
1936
the three nations involved.
'
disastrous
gold... standard
of
.
We
tion
the
of
a
considera¬
monetary
The scheme naturally
dispenses
with the necessity of maintaining
a
domestic gold reserve to settle
from
those
prevailing immedi¬
ately following the last war.
It
is quite possible
also that gold
will
not
occupy
in
position
currencies, and, to them, stabil¬
ization loans, unless continuous,
will
(States
and
several
And
as
Bernstein,' Assistant Direc¬
tor of
Monetary Research) United
Treasury,
recently
an¬
nounced (See "Chronicle" of Sept.
7th, page 1046) "the fact that in
States
the
latter
part of the 1930's the
exchanges of the American repub¬
lics is in part
ments
we
due to the arrange¬
had made with some of
these countries.for stabilization of
the
exchanges
tion
and for consulta¬
exchange
policy.
Al¬
on
these agreements
provide dollar
exchange when needed for stabil¬
izing the currencies of cooperat¬
ing countries, we have never lost
a cent under any of our stabiliza¬
tion arrangements."
And consid¬
ering Great Britain's experience
in 1931,1 might add, "we can only
hope but not absolutely expect
though
we
under
undertake
that
never
we
to
will."
should
it
that the
another arid, undoubtedly,
more
effective method of build¬
ing
a
up
gold
reserve or
stabiliz¬
ing the exchange value of a do¬
mestic currency is that employed
by France for more, than a decade
nreceding
the
present
war
in
desirous
of
of deprecia¬
Strongly
Europe.
avoiding
a
renewal
tion and devaluation of the franc,
after
basis,
ures
its
restoration
to
a
gold
France took drastic meas¬
to fortify its monetary me¬
tallic 1
be
reserve.
means
measures
seem
accom-
plishednthe purpose. During the
period 4>om 1926 *6 1933. the goM
of the "Bank
oD France
increased
acceptance
This, the natural temedy under
v
present
the
A
The
princi¬
be
Bretton
which have
proposed to
to combat it.
When hostilities end in the dev¬
suggested move is
States price of
should be drastically
lowered.
By this lowering the
purchasing power. of our money,
other nations, in competition with
our
home producers, could more
readily export goods and services
this way
Here,
are brought face to face
nomic
and
political
and in
us,
our
excess
blocks.
gold.
have
had
enough
"tinkering with the
currency," and it is not likely
that the people of the nation will
readily consent to a renewal of it.
Moreover; it should be remem¬
from
enter
tion of
immediately
a
activities.
All
will
this
expenditures under
of
condition
resources.
recon¬
upon
reduced
This is
a
taxable
situation
in¬
viting a resort to post-war mone¬
tary inflation.
It behooves the
nations, to prevent such a calam¬
ity. As we now hold the bulk of
the world's supply of monetary
and can very well get
along with a considerably reduced
amount, one or several methods
metal,
or
contrivances should be devised
effect
to
equitable
an
redistribution
and
sane
the trading
among
nations.
As
pointed out above, the Bretprovide no
ton Woods agreements
effective
measures
fom
accom¬
plishing this, and seem to neglect
problem. The difficulty must
be faced, however, and some solu¬
the
tion
attempted, since, if neglected
lead to the collapse of the
it may
whole scheme of multilateral eco¬
nomic
about
political
ances
and
bring
disruptions and
cooperation,
the
trade
economic
and
disturb¬
that followed the last
are
the
measures
war.
to
be
drain off
again, we
with eco¬
stumbling
We
trouble
bered that the
involve heavy
econ¬
United
astated areas, the governments of
the nations involved will seek to
struction
disruption or
domestic
here
measures
or
a
our
of
further
the
powers.
should
or
of
It
change
omy.
to
many
been
drastic
a
policy and
distortion
gold
economists of the
prevent
mean
tariff
difficulties
involve
insurmountable.
seem
more
This condition undoubtedly has
been recognized by the statesmen
allied
would
that
conflict is
nounced.
and the
laws,
that
widespread and more devastating
struggle of a quarter of
a century ago, so that the dangers
of post-war inflation and mone¬
tary chaos are even more pro¬
a
restricted
lation
prohibiting, within
limit, of the
altera¬
domestic currency in ref¬
to its gold parity is prob¬
a
ably the most important provision
to be found in the aet-up of the
International
Monetary Fund. It
certainly be paradoxical
prime supporter of mone¬
tary stabilization to resort to this
would
for the
procedure.
•
Another proposal along
lines is
that the' United
similar
States
Treasury should discontinue its
gold buying policy, and, in this
way check a further influx of gold
here.
This would enable
plies
to
to
go
which have
a
Embargoes
other
new
sup¬
countries
on
gold imports are
examples in recent
without
not
history.
greater need for it.
Sweden, during the last
resorted
to it, and Switzer¬
has, from time to" time, dis¬
couraged , gold
deposits
from
abroad. Moreover, there is likely
to be a new flight of free gold
war
land
from
the
devastated
following the
countries
particularly if
there is threat or danger of in¬
flation, or, if laws are proposed
or enacted
prohibiting the hoard¬
ing of gold. This may not be seri¬
ous,
because
of
the
general
scarcity of free gold in the devas¬
tated countries, but it will be a
factor in aiding further accumu¬
lation and retention. of gold in
the
United
last
war,
States,
as
the
after
war.
There are, indeed) some strong
objections to the restriction of
Setting aside the likelihood or
advisability of "free gifts" of gold- gold movements. To resort to such
to those nations requiring it, the measures, would, in fact, nullify
the prime purpose of the Bretton'
first measure of relief that might
Woods agreements. It will be re¬
be proposed would be long-term
that Great
Britain
was,
loans by the United States Treas¬ called
averse to, the provision in the InA
ury or by private
investors for
ternafional Monetary Fund which >
currency stabilization.
The Bank
requires a participating country
for Reconstruction and Develop¬
taken?
,
ment, if it comes into existence
in time, could foster such loans,
not only by direct grants from its
own
have
of a
large volume of merchandise im¬
ports from the gold impoverished
mind
gold capital but through its
of
to
remedy
suggested
the
be
in
borne
effecting this guarantees. International guaran¬
were, (1) discouraging French in¬ teed loans for such purposes are
vestments abroad through heavy not new. The League of Nations
taxation, and (2) bv severely lim¬ Loan to Austria after the last war,
iting the importation of foreign which guaranteed in severalty by
goods and services.
Both these a group of nations; ;is an example.
The
Another
would
will not be further discussed here.
formerly.
as
that the
What
Still
a
merely temporary re¬
mean
lief.
a
United States Government, in it?
the participants in
own
economic and political in¬
"area," and thus economizes
the use of gold both at home and terests, as the government of the
richest and best equipped nation,
in foreign exchange transactions.
to take every measure possible,
An arrangement of this sort is
consistent with the recognition of
now practically in effect between
the domestic sovereignty of other
the
United
M.
metallic
to stabilize their
of
important
restoration
stability
monetary
But
as
the
balances among
Latin American countries.
reserve
requiring
its
Politically it appears im¬
possible of accomplishment; so it
the
E.
of
would
extent
some
Canada),
the Scandi¬
navian and Baltic States, together
with Portugal. These nations kept
their exchanges stabilized in terms
of the pound sterling rather than
by adhering to a fixed quantity
of gold in the monetary unit, and.
as
in the case of the gold ex¬
change standard, each participat¬
ing country sought to maintain a
credit balance in Great Ilritain.;
nations
ditions will differ to
Woods agreements are but one of
as
of the
restoration
the perfect operation of economic
pal
well
exist
not
considerable period of time
a
of gold re¬
distribution after the present war.
It is quite evident that the con¬
problem
tries, comprising the British Com¬
monwealth of Nations (excluding
as
payments.
will
countries.
,,
to
come
now
of
balance
situation
a
in most
purpose
tion in
resorted
Without'
details
This
switch in the basis
a
"out-and-out"
an
to
Another
.,'y
advantages of the. immobilization and the newly created States were
almost
of gold, and the laws whereby a left
entirely without a
high proportion of the world's monetary gold supply, and the
countries
had
gold is rendered sterile, should South American
be modified, and we should not practically little in the way of
metallic monetary reserves.
maintain
any
legislation which
conflicts with this aim."
During most of the next decade,
here
from
out
movements.
that mar¬
kets must be tightened when the
balance of payments leads to a
loss of gold, but also that they
must be eased by an inflow of
gold."
Of course, it might be said that
conditions are different now, that
"managed currencies" have been
substituted for the gold standard
in most countries, and that the
currency inflation and monetary
chaos following World War I will
be studiously avoided
after the
present conflict. But can we count
on this wishful thinking?
This
current
on
represented
ard
first page)
>m
to
are
should function immediately dur¬
left to the
Redistribution
d
Thursday, November 9, 1944
ineffective as
a remedy for permanent currency
stabilization, unless theyi restore
an equilibrium-in the-balance
of
But such, loans
are
to
gold from, the fund in
accept
settlement of credit balances, but
such a provision was finally in¬
serted,
that the institution of
so
gold import embargo would
a
violation
of
the
a
mean
constitution
of
the Fund.
The last and probably the most
practical and effective proposal is
one
or
that requires np governmental
fiscal
action
at
all.
This ;
amounts
to
nothing
building
up
economic
ical
more
and
than
polit¬
stability abroad through cap-
Volume 160
ital
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4332
investment.
capi¬
American
-
ABA I 4lh Mid-Gonlinenf Trust Conference
of Nations
To Be Held in Chicago Nov. 9 and I©
United Nations Organizat'n Dumbarton Flan
talists,
Differences Between Old League
tation
And
as their ; English eousins
did in the past, will have no hesi¬
/ in
placing
investments
abroad, if they" see opportunities
for profit.
The flow of capital,
"other things being equal, is gen¬
erally toward fields which fur¬
nish the highest rate of return.
This
is
law.
economic
established
an
it
But
operate
can
only
.
when
and
where
nomic
is
and
political stability and
there
eco¬
of; property.
The re¬
of Europe and the re¬
distribution of the gold supplies
ean
be accomplished much more
security
building
with the assistance
of
capital and the applica¬
'rapidly
American
tion
of
and
financial
there
sound
business
American
Certainly,
acumen.
should
be no
political or
objections to "normal¬
izing" of our gold hoard by proper
and judicious investments abroad.
There will arise, of course, the
argument that we have tried all
economic
this
the
after
favorable
last
and
with
war
un¬
unpleasant results
ourselves.
■to
side
dark
the
But
of the picture of our experiences
with investments abroad tend to
be
whereas
exaggerated,
grossly
the
beneficial
and
favorable
Nor
were
these loans, in the main,
negotiated
and
distributed,
as
stated recently by Mr. Bernstein
aspects have been belittled.
•
the
of
fraud
due
in
The
were
large part to the reckless
rivalry, and greed, as well as to
the
inexperience
of
American
bankers with foreign financing.
Many of the foreign loans which
issued
jwere
should
the United States
in
have
not
distributed
been
the
to
.
deceit.
and
mis judgments
and
errors
Department,
Treasury
through
•
205?
public as investments, but,
instead, should have been carried
directly by capitalists, who were
capable of bearing the risks involved. They were not meant for
widows and orphans.
As stated
by Dr. Amos E. Taylor, the Direc¬
the
of
tor
United
Bureau
States
of
Foreign and Domestic Cornin a pamphlet issued by
the Monetary Standards Inquiry
amerce,
a
time
short
ago:
"It should not
assumed that
be
after the war, the experiences in
the American foreign investment
of the Twenties will be
Under
repeated.
conditions, short of
world
■ prosperity
tained
order
world
and
sus¬
and
political
established
strongly
wide
monetary
stability it is possibly safe to ex¬
pect that equity investments will
provide the primary medium for
international
'direct'
called
the
investment.
investments
risks
usual
So-
and
do
imply
not
exert
the
pressure
on
the exchanges
under the unfavorable conditions
do obligations calling
question as to what is to become of the old League of Nations
creation of the proposed United Nations Organization—
the
including
partments,
national
to meet financial obliga¬
and, despite its apparent
eclipse, remains legally and other¬
wise a going concern.
In answer to the question as to
how the new proposed world or¬
ganization differs from the old
League of Nations, United Press
advices from Washington, as given
manages
Inter¬
the
tions
the
and
Office
Labor
Justice, in which
the United States is represented,
Court of
World
actually functioning either at
are
regular headquarters or in tempo¬
rary offices established
in other
parts of the world.
'
The destiny of the old League is
Oct.
proposed new organization, but
be maintained and
proper use made of all the League
of Nations services, the mere fact
of the League's existence offers
many problems for the nations to
1.
'
of
Justice
The
treaties
of
of
of Nations
and its activities is
V
as
:
world
has
known
two centuries. It
that
last
largely by this
great country
aided in the rapid develop¬
means
was
of
ment
cial
by
was
in the
our
the
has
Nations
kept open, under the direc¬
League has been the Health
Section, which has obtained much
information on conditions prevail¬
the
economic
its
And it
of
export
capital
and finan¬
mainly
was
that
Great
in
nation,
and
that,
by
the
is
preparing
Office
Labor
from
more
Geneva
than
were
to
the
In
generation.
evolutionary
is
whereby the United States in the
persons
it cannot be ex¬
can
be
abruptly set aside,
and
auspices of Mc^
Conferences of
University.
body, the only League organ¬
of financial
a'
full
participating
member;
to hold
tional
action
immediately available
air
force
combined
be
could
na¬
for
contingents
international
enforce¬
F.
Fleming,
Ellis,
the Service of the Na¬
in
R. I. Bankers Plan to
Albert W. ' Whittlesey,
Officer, The Pennsylvania
Trust
Co.
Insurances
for
Lives
on
Help Small Business
and
At
special meeting
a
Oct. 25
on
Taxes," G. Sidney
of the Rhode Island Bankers As¬
Houston, Manager, Investment Re¬
search
Department,
First Bank
sociation/a plan recommended by
the Association's Small Business
"Post-War
fcorp., St. Paul and Minne¬
Stock
apolis, Minn.
Thursday
afternoon,
Committee
busi¬
small
insure
to
that all requests
of the area
ness
V; '
financial
left
section
Geneva
temnorarv
in
of
1940
the
and
.
league
ud
headquarters for their
work at Princeton
terests
should
sideration.
be
prime
referred
tion, Chicago, 111.
Friday morning, Nov, 10: Pre¬
siding, James W. Allison, VicePresident,
Trust
Division,
and
the
to
Assembly
a spe¬
re¬
impor¬
on
were
Assembly,
The
plied in the new organization, ex¬
cept in restricted categories
of
cases, yet to
be completely de¬
fined, where unanimity of the
(five) of the
Security Council would be
sary."
•.
'
neces¬
'
..
The
•
cial
Council,
ternational
con¬
;
Economic and
\ •
'
Justice
only
was
re¬
lated to the League; the new court
would be one of the organization's
V
organs.
new organization would
military staff committee,
comprised of the chiefs of staff of
the
a
Permanent
members.
The
Security Council
League had noth¬
ing of this sort.
■
10.
T
there
on
State
f, v
f
7V
v
f
the plan is headed by Rupert C.
Thompson, Jr., President of the
Providence
National Bank, said
the
semi-permanent
developed
since
seats
once
the Council
nation
a
there
no
was
got
from which
paper
we
quote,
"By thus making available for
on
way
of
,
' The."
six, non-permanent
of
the;/.new,odopne.il
business
small
of
sources
getting her off,
.
; ,
1.
The League admitted new
members by action of the Assem¬
bly only; the new organization
would also require recommenda¬
tion of the Security Council.
12.
The
League said nothing
about
behavior
of
nonmember
.
take
banks, for
be
far
13. The
the
provision not included in
new
or¬
indepen¬
the
Bank.
W.
of
Company*
Trust
Thompson,
Aquidneck Na¬
Newport;
Ralph
S
Vice-President of the
Hospital Nat'onal
Bank; Walter F. Farrell, President
Richards,
Rhode
an
plan,
Perry; President
Westerlyi;T James
the League covenant.
The charter of the
?
Washington
tional
Com¬
.following bankers:
President of
is
or
14.
so requests."
toi tMr. .Thompson,
SmallBusiness,Credit
Arthur! L.
the
ventive
ganization would be
another*
applicant
includes the;
organization would
suspend the rights and privileges
of a member against which pre¬
a
or
mittee which submitted the
new
action
one reason
addition
In
as
enforcement
said
feel they cannot handle, will
considered on a cooperative
basis if the
organization could
steps,to ensure that nonmem"so
re¬
banks
may
new
charter
the
Dawson, Brown.
T.
State,
all
yesterday, the banks^ will insure
that all
loans, which individual
bers acted in accordance with the
new
the
of
needs
commercial
the
President of the Association,
taken,
.
The
9.
have
,
might be
So¬ necessary for the maintenance of
' international peace and security"
The Permanent Court of In¬
8.
committee
a
commercial bank o£;
will have representa¬
The committee which submitted
Vice-President,
Equitable Trust
Co., Wilmington, Del.
"The Life
Insurance-Trust Team," N. Baxter
States; the
League
an
to
in which it was also stated:
Covenant
League
does
every
tion.".
V
-
The
made
is
grant the loan itself,
to
will, with the applicant's approval*
Post-War
on
application
not wish
of
which
principal
University.
a
War and Their Effect
where
"Tech¬
the
Co., St. Louis, Mo.
nological Developments
be
and
set
Trust
rector, Armour Research Founda¬
Assembly
League
Council and
.
Nov.
Osgood,
and
The
DrUg Commission, which is estab¬
Another of the League sections
has
migrated is the Anti-
■
Presiding, Roy C.
Industries," Harold Vagtborg, Di¬
that
isolation and
enforcement
had only one
Council to handle all matters; the
new
one
would have a Security
a
gether altruistic policy of unadul¬
charity or we must help
fore
7.
•
insulation
terated
regional arrangements were con¬
sistent with it and would require
Security Council authorization be¬
permanent members
The magnificent World Court of
readily sub¬ Justice Building in The Hague
stituted for it.
If this nation is
to maintain the leadership in in¬ our neighbors bv seeking at the
ternational political and financial same time to help ourselves. Our
affairs whicli the Bretton Woods future foreign investments, there¬
agreements have thrust upon it, fore, should be made strictly on a
we
must either follow an alto¬ business, basis, and our own in-v
policy
economic
of peace; the new oi'ganizacould decide whether such
tion
unanimity rule "would not be ap¬
where
in¬
were
.
pected that the duties and respon¬
sibilities involved in this change
mainte¬
nance
60 members of the
transferred
brief period of a quarter of
a lished in
Washington.
century
has
changed
from
a
Members of the economic
debtor
nation
to
the
leading
creditor, nation,
the
securing
quired unanimous vote
recently in Philadelphia.
'
process
for
tant issues and at times there
within
a
Jessopp,
Green*
Chicago,
111.
Dudley
&
"Banks
Pa.
6.
wars
to
Trusts,"
Kirkland.
Martin
Illi¬
trine,
council.
two
enabled
ing
of
standings," like the Monroe Doc¬
cial 18-nation economic and social
have been called in New York and
was
Prob¬
"Tax
lems of Pension and Profit-Shar¬
Funds,"
The League covenant said it
not
affect "regional under¬
create under the
remote resources to carry on
destructive
and
expensive
she
Director,
Powers,
Relations.
Personnel
Thursday morning, Nov. 9: Re¬
welcome, Mark W. Low¬
ell, President, Corporate Fiducia¬
ries Association of Chicago and
Continental
William
tion,"
Institu¬
Your
in
ABA, in charge of Customer and
marks of
Vice-President,
Place
the
fields to the Assembly and would
ization in which the United States
means
in¬
are
economic and social
questions; the new organization
assigns responsibility • for those
same
draw
upon
peace
"The
Co., Indianapolis, Ind.
Veterans'
has
Mass.,
Boston,
Trust
Shaw-
Granting Annuities, Philadelphia,
open "a
to Montreal,
100
stalled under the
Gill
a
3.
did
respect'
Employees of the International
this
and
National
nois National Bank and Trust Co.
Both
5.
bureau in the Far East-
leading trading
center
Friday afternoon, Nov. 10: Pre¬
siding, Evans Woollen, Jr., Chair¬
man, Executive Committee, Trust
Division, and President,- Fletcher
Council had similar functions with
the
Section
Britain became the world's finan¬
cial
of
ment action."
European
countries
This has been put at the disposal
af the United Nations Relief and
ing
own
resources.
of
Bank
mut
the
America
Asso¬
of
Bank
ciation, Los Angeles, Calif,
Texas, and Wisconsin.
Frederick A Carroll, President
of the Trust Division, and Viceof
Vice-President and
Bardt,
Officer,
National Trust and Savings
Iowa, Kansas, Kentucky, Mich¬
igan,
Minnesota,
Missouri,
Ne¬
braska, North Dakota, Ohio/Okla¬
homa, South Dakota, Tennessee,
President
ML
9: for; post-war reconversion or ex¬
Vice- pansion loans will be given con¬
tion of Sean Lester of the Irish taken under such arrangements.
President, The First National Bank sideration, was unanimously ac¬
4.. The new organization would of
Fi-ee State, the secretary-general.
Chicago,
Chicago.. "Interest cepted.
'Rates
and
Government Bonds,"
The
marvelously decorated, 'as¬ place two obligations with re¬
The
Providence "Journal"
o:t
Dr. James Dolley, Director of Re¬
sembly rooms and other parts of spect to armed forces "not explic¬
Oct. 26 in reporting this said:
search and Statistics, Federal Re¬
the
buildings were closed and itly recognized under the League."
"Under the plan, every loan ap¬
obligations
are ■ "to
make serve Bank, Dallas, Texas. "Out¬
many of the personnel released. The
plication made by small business
A force of about 80 persons was available forces, facilities and as¬ look for Common Stocks as. Trust
to any commercial bank in Rhode
kept on duty.
;
1
•
y sistance necessary to the Security Investments," Roland C. 'Behrens,
in the event the
bank
One of the wartime efforts of Council in maintaining peace and Vice-President, St. Louis Union Island,
of
Palace
The
been
tract for
the
H.
Trust
—
bodies, if only to liquidate the or¬
ganization and transfer its powers.
According to a recent survey,
the situation of the Geneva League
.
or
to discuss such issues.
jurists, will require a meeting
the
old
League
governing
follows:
Horizons for the Trust Business,"'
the
.
experienced workers and admin¬
istrators which the League assem¬
bled? And what of their pensions?
Such questions, in the opinion
of
host.
territory
in¬
following States: Ar¬
kansas, Colorado, Illinois, Indiana,
as
conference
The
cludes
tion," W. Randolph Burgess, Pres¬
Assembly and the of Chicago. Address1 of the Presi¬
ident, ABA and Vice-Chairman ox
similar dent, Frederick A. Carroll, Presi¬
Board, National City Bank oi
Trust Division, and Vice- New York. '
powers for dealing with matters dent,
affecting world peace; the new or¬ President and Trust Officer, The
ganization places that responsibil¬ National Shawmut Bank of Bos¬
ity
with
the
Security
Council ton, Mass. "The Post-War Trust
and Common Trust
alone, allowing the Assembly only Dollar
2.
of
corps
a
Chicago will act
Council of the League had
transmitted?
be
become
the
to
volved."
How can the powers con¬
the League By several
is to
What
threats
"where
act
breaches
on
hundred
League was empowered
to deal only with acts of aggression or war; the new organization
and
in
will
veterans
announced the following program:
The
could
What is to become of the League
of Nations building in Geneva
Court
of
izations:
solve.
ferred
15
outline
if legality is to
the
of
presented the following
major differences as
cited by a student of both organ¬
the
Hague?
"Journal"
Milwaukee
the
in
probably to become merged with
by con¬
Rehabilitation Administration, and
specific annual payments
in general League services have
in currency to the creditor."
been cooperating with the various
The export of capital has been,
Allied agencies. In return. League
perhaps, the greatest factor in the officials have been invited as ob¬
expansion of international trade servers to the different UNRRA
and economic development that
conferences.
The League Health
as
Post-war
taxes, trust investments, pension trusts, and returning
feature the program announced on Oct. 24 for the
14th Mid-Continent Trust Conference to be held
in Chicago at
one of the objectives of the Dumbarton Oaks Conference—is cited
The Drake Hotel, Thursday and Friday, Nov. 9 and 10, W. Randolph
in recent press accounts from Washington as one of the problems
Burgess, President of the American Bankers Association and Viceraised by the proposal of that Conference.
Chairman of the Board of The National City Bank of New York,
In dealing with the subject, special advices from Washington,
will be the featured speaker om*>
Oct. 9, to the New York "Times"
stands vacant except for repre¬ the second
day's program.
On Maddox, Vice-President and Trust
had the following to say:
evening
the
guest Officer, The First National Bank*
During the war years the insti¬ sentatives to preserve the title and Thursday
But the speaker for the annual dinner will Atlanta, Ga.
"Thirty Years Backtution which failed to keep that existence of the court.
court is legally still in being and be Dr. Walter H. Judd, Congress¬
arid a Look Ahead in Trust Ad¬
peace has dropped from sight and
man of the Fifth District, Minne¬
its justices are subject to call. ;
ministration," Clarence E. Drake,,
small account has been given to
Most of the League's 40 mem¬ apolis,
Minn., who spent many Vice-President and Trust Officer,
the fact that it subsists juridically
bers are continuing to pay their years in China as a medical mis¬ Northwestern
National
Bank of
and actively with a membership of
dues. Most of the occupied coun¬ sionary,. The conference will be Minneapolis. "Post-War Problem's
more than forty nations.
The
political
bodies
of the tries have made token payments. held under the auspices of the and Opportunities for Smaller
With
a
budget reduced from Trust Division of the American Trust Departments," Earl H. Cress*
League, the Council and the As¬
sembly have not met since the some 32,000,000 francs to less than Bankers Association, and the Cor¬ President, Ann Arbor Trust Co.,
14,000,000, the League of Nations porate Fiduciaries Association of Ann
Arbor,
Mich.
"Expanding
war, but all the other League de¬
The
with
of
Island
the
Union
Trust
Company;
unlike
the
League covenant, which \vas part
George W. Holt, Jr., Treasurer ©f
the Lincoln Trust Company; Wil¬
of the
liam
dent
-
The
instrument,
Treaty of Versailles..
text1
of
the
•
i
Dumbarton
E. LaFond, President of the
Woon socket "Trust
Company, and
Executive
'Gladding,
Oaks tentative
Howard
would not he eligible
tain
Vice-President of the Morris Plan
for
12
members
f
immediately
reelection; under the League,
peace
proposals'1 to* main¬
was given inf our Oct.
issue, page 1611.
E.
Bank of Rhode Island.
'
•
-
'
•
Post-War Taxes
'
•
■
•
.•
serving in a tech¬
;
1 r ':: '
I
eleven experts,
nical
capacity.
I do not hesitate to say that
those
the level of statesmanship in
been in
Sound
:
is,
Essential
I
say,,
realities that
as
fully
con¬
to shift
war-time to a peace-time
Members of both of our
a
basis.
we
as
us
•from
the
of
front
Program
Tax
Congress
aware
than it has
great many years.
a
prepare
major political parties
provide
that functions in
writing of our tax laws. How¬
the
degree of national prosperity after
war has been won, which will
But
the
Decree
should like to
I
the fact that the Treasury,
stress
important.
As I
: ':
•
has
that
been
done,
ponents of labor-—may I say the
extreme left wing of labor—in
tion
minority.
Also the Commit¬
tee
membership
has
changed
somewhat from time to time.
I
"The
tensive.
the
;
makeup largely
this
believe
ex¬
As I view the several
-
there
of repre¬
with the au¬
House
Committee of the
The Finance
of orig¬
This im¬
interesting from
the point of view of its makeup.
Here again the membership seems
portant committee is composed
of twenty-fiye members, fifteen
Congress will keep uppermost in
mind in working out constructive
legislation.
Congress realizes, first, that
of Ithe
mittee
sentatives is vested
confident the
heavily weighted with represen¬
tation from agriculture, industry,
thority and responsibility
the
laws.
tax
inating our
tax
perpetuation of our democratic representing the majority party
form of government requires the' and ten the minority. At present,
|
Senate is equally
and
mining: nine in agriculture,
in
mining for a total of seventeen
out of twenty-one.
Labor is com¬
pletely in the minority.
five
in
*
three
and
industry,
bursement
rather
I believe the
to deposit
held
is
period of 2 months
the Bank of France or at estab¬
within
same
at
a
their account.
with or
lishments acting for
transfers
All
gold,
of
payment thereof, all gold
movements are forbidden except
without
with
special
Bank
the
■■■'
Encourage Itisk
ex¬
and
holder of gold coin or
bullion
gold
heavily
taxed?
regulations
foreign
gold,
to
2
publishes
9
Oct.
of
"Every
that
of
of earnings, and leave
individual
the
(Official
Journal Officiel
applying
points
major
two
are
of the
agency
an
change,
foreign
securities
other assimilated holdings.
Congress, ; in the
certain basic consid¬
are
de¬
a
decrees relative to the
plans sub¬
mitted to date, it seems to me
Service,
Journal)
final analysis, plains why the Ways and Means view: (1) Should we tax the cor¬
Many able men in Congress are is charged with enactment of all Committee acted conservatively poration heavily and relieve the
addressing
themselves,
intelli¬ revenue legislation; the President and constructively in writing our individual, or (2) should we tax
gently and conscientiously, in that •has the power of approval or wartime tax bills of 1942 and the corporation lightly, encour¬
veto.
The Ways and Means Com¬ 1943.
direction.
aging approximately a 7(>% dis¬
There
v
French
of
provisional
government of the
French Republic follows: , ,
, *
"Paris, Oct. 11, 1944. Received
in New York Oct. 12, 1944.
pendent of the Congress, I assume
the hearings will be rather ex¬
Procedure Outlined
development of such a program.
erations which I am
Gold, Etc.
on
translation
A
inde¬
work
am
process
to be quite opti¬
the prospect for the
over
field.
tak
banking interests has left the ex¬
going to describe this
briefly, as I think it is
I
ever,
happen
mistic
familiar with
are
you
machinery
the
the
employment for all.
know
I
They appreciate that the de¬
velopment of a sound tax program
is essential if we are to have that
I
economic and
an
middle of November to receive
a farmer myself, I keenly
appreciate the conservative back¬ the report of the Technical Staff,
ground of the twelve men who as I said before, and I believe that
seem to hold agriculture as their/ public
hearings will be opened
foremost interest.
A combination shortly thereafter.
At these pub¬
of
agricultural
interests
with lic hearings testimony will be
mining, commerce, shipping and taken. From the great amount of
1942 legislation.
lation of the
encouraged to expand and to pros¬
per.
say,
-
Being,
quirements—dominated the tax
employment for our people after
hearings that preceded the formu¬
the war is over, business must be
assure
of
statistical 'character which makes
of the member¬
The background
grants; and a recognition of our
credit and
venture capital re¬
appreciate
the fact that if we are to
*
.
market for
ship of the two tax committees fortunately, is no longer influen¬ cree which,appeared in the "Jour¬
his commodities.
I emphasize the
nal Officiel", as of Oct. 9, "rela¬
is interesting.
It has been my tial" with Congress.
significance of the fact that the
The Treasury
should be pri¬ tive to the regulations applying
privilege to know many of the
great balance of power between
members rather intimately.
I will marily interested, of course, in to gold, foreign exchange, foreign
farmer and labor, which makes
refrain
from
indulging : in per¬ revenue, for in the development securities and other assimilated
this country the greatest democ¬
sonalities except to say that of of a well-rounded Federal fiscal holdings," was made available on
racy in the world, has reasserted
the membership of the Ways and policy, in protecting the credit of Oct. 27 by the Foreign Exchange
itself.
Those
cardinal
points:
our
Means Committee I regard twelve
; Government,; the
Treasury Committee which, however, points
which must and, I believe, will
members as primarily interested plays an important part in project¬ out that neither the Committee
serve as the basis for constructive
nor any individual member there¬
in agriculture, four in industry ing our, budgetary requirements.
tax
legislation—the fostering of
I understand that Mr. Dough¬ of assumes any responsibility as tp
and
commerce,
two
in mining,
private enterprise; the stamping
ton proposes to call the Ways and the accuracy of the translation.
while three represent congression¬
out, within reason, of government
The translation, emanating from
Means Committee into session the
al districts that are strongly labor.
subsidies and government capital
the French Press
and Informa!-
On the basis of an
bodies is higher today
•
this Department important in
satisfactory seller's
a
accquaintance with a great many
members of both Houses of Con¬
gress,
.
information
Divergent Interests
(Continued from first page)
cated problem.
Thursday/ November 9, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
of
from
authorization
Jewels in
France.
good condition, objects of art or
collections are exempt from this
measure.
Likewise, all holders
Capital
emphasis revolves
capital in
foreign personal properties or
assimilated
holdings,
i.
e.,
securities
made out in foreign
around risk, or venture
of
making this decision. The evolu-^
tion of modern industry, in large
of
with the Democratic Party in conpart, is the story of risk or ven¬ currency or belonging to French
j trol,
Congressman
Robert L.
ture capital. It seems strange that companies whose principal exploi¬
Congress also realizes that sub- 1 Doughton, of North Carolina, is
in the vast field of economic and tation is abroad, are held to de¬
sidies and all forms of capital chairman; Mr. Harold Knutson,
The
incoming
Congress may
financial literature no one has de-^ posit same in the authorized bank
grant by the Government lead in- Republican,. 0f Minnestoa, is the change, to some extent, the com¬
fined these terms precisely.
One or with a member of the stock
evitably to Federal control and to acting Republican leader, due to plexion of these two Committees.
may suggest what is meant by exchange or an official registered
the extension of bureaucracy.
.1 the illness and retirement of Con- However, the political trend in
risk or venture capital, by indi¬ broker of his own choice within
Congress is aware of the fact gressman Treadway of Massachu- this country is such that we may
rection, by piecing together frag-? a period of 2 months. These* secur¬
that a virile, and healthy capital- setts.
This committee is also the be sure of a continuation of the
ments of discussions under such ities can be negotiated under the
istic system in the post-war pe- Committee of Committees of the policies followed in the last two
conditions governing the decree of
topics as "profits," "entreprene-i
riod must rest upon a reasonable House and, as such, is vested with or three years.
Finally, hold¬
urs," and "investments." It is even- foreign exchange.
balance of the; Federal budget as authority to appoint members to
ers
of
foreign
currencies; and
Tax Revision Studied
stranger that today, when both of
soon as possible, upon the ready
the standing committees of that
drafts issued in. foreign exchange
our major political parties, as well
That the present Congress rec¬
availability of credit and upon an branch of Congress.- It is well to
are
obliged to deposit same im¬
as
representatives of labor and
abundance
of
venture
capital, bear this point in mind, for, ob- ognizes the need for a broad re¬
mediately with an intermediary
vision of our tax structure in the industry, are agreed on the need
This, briefly, is the tax philosophy viously, appointments are made
of encouraging the flow of risk approved by the Minister of Fi¬
which we may expect Congress to to the Ways and Means Commit- coming months is evidenced by
nance. V; For
violations
hereof,
the fact that, as early as May of capital in the post-war period, the
apply in the enactment of the tee by the leadership in the Hou^e
term has not been defined.
If these orders provide in/addition
this year, Mr. Doughton and Sen¬
post-war tax legislation.
:
1
| through a caucus of the "two
to penal sanctions, obligatory con¬
such a definition had only an aca¬
There have been periods, and parties, with some thought giveh ator George directed their techni¬
fiscation of the properties seized/'
demic interest, we could dispense
in the recent past, when a tax (to controlling appointments to the cal staff to undertake studies to
"(Minister of Information, Paris,
this end.
Mr. Stam. head of this with the need of explanation; but
philosophy was applied that was ' various committees of the ConCable No. 2281.)"
I - ',
v *
I have found that precise termin¬
not
conducive
to
our
national gress. The most important func- staff, has been working on these
well-being.
tion of this majority committee studies since May and has in¬ ology is a real aid to clear think-?
H. P. Fulmer Dead
;
Not only that, but Congress
You may ask: "What tax phil¬ is to originate our federal rev¬ vited the cooperation of interested ing.
will
need
to
distinguish very
Representative Hampton Pitts
persons and groups.
osophy dictated, in the main, the enue legislation.
preservation of the system of private
capital.
.
,
writing of the Revenue Acts from
1934 to 1940?"
"What tax phil¬
exercises
osophy prevailed as in the case
of the Revenue Acts of 1942 and
rogative
1943?"
it
I
will
dispense
question
reform was the pre¬
obviously,
most
the
in
dition
This con¬
be understood in our
our
can
democracy
if
history.
we
recognize
the
consin
but
1942,
created.
as
slightly modified by the Rev¬
Act of: 1943, I regard as one
the
ever
soundest
enacted
by
cooperation of
Senator George is chair¬
Mr.
chairman.
Doughton
To
this
is vice-
committee
there
are
appointed by the re¬
spective committees of each House
five
philosophy which governed
the writing of this legislation was
the result of two developments—
a
movement to the right politi¬
tax
members, three from the ma4
jority party and
minority
party.
members
two
The
from the
ranking
usually designated.
are
This
group
merely
functions
mechanically in the setting up of
global
Congress became increasingly
aware of the burning out of the
war.
machinery to facilitate the efforts
of the two committees of the Con¬
philosophy in Government
as early as
1940 when that great
balance of power between farmer
an^ labor began to reassert itself.
The farmer, who loves his informer
gress.
For
Committee
example,
the
Joint
is
provided with a
technical staff which serves both
the Ways and Means and the Fi-
dependence, felt the pinch
of nance Committees. Mr. Colin F.
regimentation and control at a Stam is now Chief of that staff
time when he began to experience and he has associated with him
.
Stam
Mr.
staff, in ad¬
his
and
dition to their own research, have
conducting
been
lem
hearings
and
seeking
conferences,
special
a
tax prob¬
the knotty
solution to
for. the present, in
I understand their re¬
that
is,
their lap.
port will be ready for. presenta¬
tion to the two committees of the
by mid-November, and
doubtless the report will be ac¬
Congress
companied by appropriate recom¬
mendations.
I would like to add
that
of
those
who have been
us
always
Staff most
interested in taxation have
Technical
the
found
willing to listen. They have given
in
honest
an
distribute
the
tax
when it frames the new
legislation.
capital receives
clearly
Fulmer of South
tax
crat, and chairman
burden equit¬
honest
cause,
impact
lor the
It is the function of the
Treas¬
Department to advise with
and make suggestions to the Ways
and
Means
Committee and the
Finance Committee.
It is not the
of
the
Treasury
to
Congress. This
was
violated in
recommend to the
fine
distinction
'30s.
Since
however,
the
responsibility vested in it by the
the
Congress has
Constitution
and
to
reason
1940,
again assumed
have
that
be
responsibility
also
management and direction
enterprise and is entitled,
theoretically at least, to unlimited
But, directly and
profits.
rectly, whether the
_
indi¬
enterprise be
corporation or any other form
of business organization,
society
a
has, in the form
and
may
is why we
hopeful.
The
on
in
its
so.
ing."
The Treasury
possession
invaluable
' ;'
V;
:
.
.
that
1.
The
for this important
preservation of the na¬
tion's credit;
-
,
Risk
Considerations
'
capital, as we know, is in¬
with the employment
terlocked
As we emerge from the
in Europe and set our sights
problem.
war
beyond the defeat of the Japanese
at the earliest possible date, we
must again
think in terms of em¬
ployment for our people.
Those
willing to work are entitled to
jobs and no single factor can play
as important a rule in the making
of
jobs as sound post-war
tion.
I do not exaggerate
taxa¬
when I
flow of risk capital.
\
modifications
certain
in the
ex¬
"logical,
practical and, may I add, politi¬
cally feasible.
Revisions should
be thought of in two phases: First,
isting
structure
appear
those measures necessary to
meet
requirements of the transition
period and, second-, the develop¬
the
ment
of
a
post-war tax structure
consistent with, the broad
backbone
of this nation.
I would like to
state
the
basic
considerations
try can anticipate sound
judgment, form
the
Approaching the question of tax
revision from this starting point,
tives stated.
which will, in my
of
'
of
encouragement
3. The
that the Revenue Acts of 1945
and 1946 can make or break the
and financial
:
.
2. The stimulation of sources
taxable income;
economic
often has done
Capitol Build¬
V V.
»"■
apartment near the
the risk-as-
stifles initiative
rightfully complain.
Basic
action, cause confusion to exist,
even 4n the minds of well-think¬
I might add that it
Adjustment
Act, which was subsequently out¬
lawed by the Supreme Court, was
stricken in the corridor of his
"
one
author of the con¬
troversial Agriculture
of taxes, placed
inequitably
bear
stimer
Treasury can, through ill-advised
has
! v
;
the rights to
say
ing people.
said:
"Mr. Fulmer,
the
of
unfortunately, there is no
prerogative
of mistakes and
risk capital assumes
scientific solution of this problemi
ury
of the House
Agricultural Committee,, died on
Oct. 19 at the age of 69 years.
losses, whatever the reasons may Mr. Fulmer's death ended a Con¬
be; risk capital is on the front line gressional career of more than 23
oil the business world.
And the years. United Press Washington
casualties are too high. In return,
a'd vices in reporting his death
full
the
unlimited the foundation
seeking the
endeavor to profits. It is only when such taxes legislation:
Naturally, there must arise
differences of opinion, be¬
ably.
Carolina, Demo¬
What I call risk
limits upon
of
evidence
every
truth
and
man
tax ' documents
Congreks.
The
cally. and the impact of a
chairman,
gress, a Joint Committee on In.ernal Revenue Taxation has been
enue
of
is
senior ranking Re¬
is the
To facilitate the
colossal bureaucracy.
of
Georgia
of
hese two committees of the Con¬
of this resulting in a
Revenue Act
Ways and Means
of the
publican.
the depression, perpetu¬
through subsidy and capital
The
As in
party.
the minority
case
while Senator LaFollette of Wis¬
lowing
grants, all
twenty-one
of
composed
George
coalition of farmer and labor fol¬
ated
Ways
Committee,
the Democrats are
presently in control of the Finance
Committee.
Senator
Walter F.
pro¬
nounced reform measures in tax¬
ation
is
seven
the Treasury Department in
the role of dictating the
previously stated,
as
the
to
members, fourteen of whom rep¬
resent
the majority
party and
1940 is full of
inconsistencies.
The influence of
the Administration with Congress
cast
falls
tee
The rec¬
1934 to
from
ord
pre¬
and Means
Committee to originate all rev¬
enue acts.
The Finance Commit¬
with the first
dominant consideration.
similar
a
in that branch of Con¬
but,
gress;
stating merely that,
by
Committee of the
Finance
The
Senate
I firmly
•
objec¬
;
believe that the coun¬
and in¬
action on the part of
Congress in the writing of post¬
war tax legislation.
telligent
<
2059
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume 160 4 Number 4332
Rnlherfortf Aide lo
Non-Ferrous Petals—November LeadSalesfo Roosevelt WarnsAgainst Creating
Exceed 70,0611 Tons
"Blocks
Of - Closed Air" Leading to Future Wars
Quicksilver Price Rises
That "the
"E. &. M. J. Metal and Mineral Markets," in, its issue of Nov. 2,.
stated: "Lead sales were substantial during the last week. Producers
if
consumption of the metal will continue at a high rate for
time to come. /Estimates on November lead requirements.- have
believe that
some
been revised upward/ Lead consumers have been disposed to increase
their inventory position, whereas the reverse applied to copper and.
Demand for cadmium eon- ^
zinc/
tinues
•
-
active.
Quicksilver0 again
on
■provided a, price change, the mar¬
ket advancing on evidence that
consumption, remains well in ex¬
cess of current production., The
price might have advanced sharps
ly if sellers had.-not discouraged
speculatively, inclined customers.'-'
The
publication further went on
say', in part:
•
;
to
.
>■*v■'■■■
[■ Copper
Restrictions
■
'
;
use
of cop¬
as
a
shortages,
manpower
result of
'
'•*•'.';
-
Easing of conservation measures'
by WPB has not, yet brought out
important tonnage;' business' from
producers - serving/' the l' clvilian
market for zine products.;
The:
tight situation in steel- continues
to retard galvanizing.
;
:
Iv.-v/-'•r-*'.'
;/•' J
the
on
.
reduced scale
a
'
V
I
Combined government and'pri¬
Secretary of AIB1
Appointment of Robert C. Ruth¬
re-opening the lines of
•communication and peaceful, relationship" was the assertion made
;,by President Roosevelt in a message welcoming the delegates of the
51 Nations represented at the International Civil Aviation Confer¬
ence,/which. opened at Chicago on Nov. 1.
"Air Transport," the
President went on to say,, "will be the first available means by
which we can start to heal the^
wounds of war, and put the world of the highest importance.
I am
once
more
on. a peaceful basis."
sure that you will succeed.
The- President's message was read ;
The progress
of the armies,
by Adolf A. Berl'e, Jr.,, Chairman navies,
and air
forces
of the
of'the United States delegation, and' United Nations has already opened
rebuilding
of
means
peace
erford
the
to
Secre¬
Banking was announced on Oct.
30 by Dr. Harold Stonier, Execu¬
tive
Manager of the American
Bankers Association.
Mr. Ruther¬
ford. has beea Executive Secretary
of the
of
Minneapolis, Minn., chapter
the
AIB
will
and
fill
the
(
temporary President of the- con¬
great
ference,, the largest and,, in suhject
post at national headquarters left
vacant by the resignation: of Rob¬
ert Hammer. who has accepted a
position with the Indiana State
which had been closed for more
to peaceful intercourse
areas
Chamber of Commerce.
matter,, it was noted by the Asso¬
than,
ciated Press, the broadest in avi¬
soberly hope that all Europe will
he reclaimed for civilization be¬
ation history.
The
v
.
;
-
■
■
expressed the
message, that "you
President
his
hope, in
black
four
We
years.
can
jor portion of his activities to
j
7
pro¬
participation in
Training pro¬
gram which will be soon inaugu¬
rated
by
the
AIB
under
the
chapter
moting
fore many months have passed,
the
Steadily the great areas of the
stocks of tin are expected
will not dally with the thought Pacific are likewise- being freed
by WPB on a to decrease to about113,00(1 tonsof creating' great blocks: of closed from. Japanese occupation.
In due
number of items during the last before- the end of the year, accord¬
air,, thereby tracing, in the sky the time,, the Continent of Asia will be
.week. So-far, no important tonnage ing to WPB officials. Postwar de¬
conditions
of
possible
future opened again ,to the friendly in¬
business has been involved in re¬ mands for tin will impose a severe
wars-"
"I know,," he added, "you tercourse of the world.
visions made in the conservation, strain i upon v available
supplies, will see to it that the air which
The rebuilding of peace means
measures.
The industry, estimates Erwin Vogelsang,, head of tin op¬
God gave to everyone shall not .reopening the lines of communi¬
that, fully 85% of current con¬ erations for WPB, contends,: be¬
become the means of domination cation and peaceful relationship.
sumption of copper is moving cause production from { Malaya,
over anyone."'
Air transport will be' the first
irito war and essential civilian the Netherlands East Indies, and
Pointing out that "increasingly available means, by which we can
products Consumption of copper Siam will not become a factor
the airplanes will be in existence," start to heal the wounds of war
for October and November is ex¬ until
plants and other facilities
the President stated that "when and put the world once more on
pected to average around 125,000 in those areas have been rebuilt.
either the German or the Japanese a
peaceful basis.
tons a month.
The stockpile has Control- of tin supplies iwill be
You will recall that after the
is
defeated,
transport
increased to approximately. 323,- necessary for a period to avoid enemy
planes should be available for re¬ first World War a conference was
0QQ tons,
-to V chaotic conditions, v ;
lease from military work in num¬ held and a
convention adopted,
Production of selenium in Can¬
1 The
present
capacity of the bers sufficient to make a
begin¬ designed to open Europe to air
ada from copper-nickel ores, ac¬ Texas tin smelter is between 70,ning,
When both enemies have traffic; but under the arrange¬
cording. to the Dominion Bureau 000 and 90,000 tons per year- de¬
been
defeated
they
should * be ments then made, years of dis¬
of Statistics:
pending on the grade of ore avail¬
Value
available
in
quantity.
Every cussion were needed before air
!..
/.Pounds
able.
From present indications,
$224,539
1939__.
126,930
.country has. airports and trained routes could actually ;be flown.
260,429
136,350
19'40
production at, the smelter; is not
pilots; and practically every coun¬ At that time, however, air com¬
272,171
142,498
1941.
expected to- ever attain a rate of
76.000
145,920try knows how to organize air¬ merce was in its infancy. Now it
1942...
100%.
vate
Mr. Ruth¬
erford initially will devote a ma¬
eased
were
per
assistant
as
tary of the American Institute of
Relations
Job
leadership
of William
Powersv
Deputy Manager of the Associa¬
.
:
tion
director of
and its
customer
and
personnel
relations.
This
training course has been adapted
needs of members of
to meet the
bank
staffs, from the industrial
job relations training used suc¬
cessfully in war expanded fac¬
tories.
1923 Mr. Ruther¬
From 1919 to
ford
employed; in Manitoba
was
branches
of
the
Union
Canada. In April,
Bank
of
1923, he became'*
associated with the First National'
•,
,
1943.
it
ended
October
As
became
clear t6 producers that the total
^volume-of business in lead booked
for
November was
larger than
first estimated. The industry now
bchves that consumers purchased
between
70,000 and 80,000 tons
for
delivery in' the current
this
of
Part
large
month.
tonnage
may
inventories,
apparently antic¬
be used in building up.
for
consumers
j
143,500
82,000
.Lead.
•
ployed there in various capacities
for
14 years, until 1937, when he
resigned
to
become
Executive
Secretary
for
the
Minneapolis
Chapter.
He was awarded the
Standard Certificate of the AIB in
.
>
:.
Bank of Minneapolis, and was em¬
lines."'
•.
,
pound,,
per
was
follows:
as
observed by the
Nov.
Chinese,,
52.000
52.000
52.000
52.000
52.000
52.000
backed his plea
with
a
strong im¬
that the United States
would supply aircraft for all when
planes
are
is
and
1928
a
cial
I do not be¬
wait
to
man
for its air communications. There
is
no
existence. When either
be in
the
test for the A. P. Giannini Educa¬
„
quote: /
■ ..Vv
"The significance of the Presi¬
dent's
aircraft
about
statement
said to be in the fact that to¬
was
827
130,617 tons
the Amer¬
a year ago,
air
business,,
serviceable
Demand for mercurials; thereby' to
is'
expected
Day.;
:
drop
to
V-E
after
and
the highways of
open
friendship, of
thought." He
mankind
to
and of
that the
commerce
'/ -:
recalled
of Metal Statistics
Versailles Peace Conference had
/rVvv;'-.-;,- Silver
The total is made up of
The London silver market was not regarded aerial navigation as
82,287 tons in ore and in process
quiet and unchanged at 231/2d. a subject for consideration and,
at-smelters; 23,299 tons in base
The New York Official for foreign according to the Associated Press,
bullion at smelters and refineries,
silver continued at 44%c., with he said the United States intended
in transit, and in process at re¬
Bureau
ican
be available tor release from mil¬
.
.
refined
lead;, and 5,240 tons of antimonial
18:671
lead.
;
'v'V1
'
•-••/•
of
tons
-•
Receipts Of Lead In Ore
Receipts of lead: in ore and scrap
by primary smelters and refiners,
according to the American Bureau:
of Metal
Statistics, in tons:
Sept.
—_
Aug.
34,873
8,7,17
10.674
■
43,590
41,940
In ore:
Domestic
Foreign-
*,
•In
n
4,854
46,794
some,
smelted in connection with
received by primary
scrap
refiners.
Zinc
of zinc has increased
Use
since
July, and the current rate of con¬
sumption
probably amounts to
slightly
month.
at
than 70,000 tons a
Sales have been holding
more
around
65,000
tons
a
month,
indicating that consumers have
been reducing their inventories.
domestic silver at 70% c.
r
to
;
Production of silver in Canada-
during August, amounted to 830,189 oz., against 1,071,550' oz, in
July this year and 1,298,765 oz,
tor
in
August
last
year.
Production
249,794
in the Jan.-Aug. per¬
iod of 1943,. the Dominion Bureau
oz.
a
world air plan: today.
Xmas Club
Savings
Going Info War Bonds
Commenting
be to start
message
On
I
to- the conference:
Association
Banks
offer
producers believe that the
Government's stockpile of zinc in¬
even
as a
great
tle
fore
of
are
you
fortunate in
history.
Some; centuries
attempt
an
made
was
great empires based
to
seas
areas
and
thereby
themselves
This
access
to
led
their
directly
to
number of wars, both in the east¬
resented at this international
ern-
ference
were
on
called
civil
to
and
western
a
a
something
instinct
thrift.
for
course,
largely were intended for gifts to
others, but it is a special token to
the nation
!: of this
that considerable part
money
will be invested, in
welfare—War
national"
Savings
Bonds."
'
The
announcement
from
the
in
mu¬
Association says:
"Christmas Club
hemispheres.
tual
You
aviation.
undertake
power.
accumulate
been
all of us know these
funds, acquired during the year,
enrich
to
extend
and
Of
domina¬
The lords
offer
to
sav-,x,
have
depositors
national
our
ago
tried to close these
and
some
The
$86,000,000 of Christ¬
mas Club deposits in the year now
drawing to a close demonstrates
on
tion of great sea areas.,
Savings
of
than
more
build
to
bank
able
,
having be¬
hearty welcome to the
delegations of the 51 nations rep¬
a
ings
of the great lessons
one
Mutual
President
that, "The fact that mutual
area.
You
of
and
Philadelphia
Saving
Fund
So¬
ciety, made the remark on Nov. 4
peaceful medium instead of a bat¬
others
United States
behalf of the
using the air
record
upon
Christmas Club deposits President
W. Roberts of the National
Isaac
Then all that will be needed will
of these
The following is the President's
,
for the first eight months of 1944
totaled 9,167,065 oz.; against 12,-
state the-substance of. its thesis-
We do not need to make that mis¬
will
task
owners
take again.
con¬
savings banks of 17 States
have
$4.66 more
at
their
command this year than in 1943,
the average being-$63.72 per ac¬
of creating great count. Total number of such ac¬
Production of unrefined lead (mine output) and refined lead in toloeks of closed air, thereby trac¬ counts,
in.• the coqnhy increased
Canada during 1-9413; and the first eight months of 1944, in
pounds, ing in the sky the conditions of about: 150,OQO, from 11943, to a total
possible future wars. I know you of l,36:L272rr All mutual Christ¬
according to the Dominion Bureau of Statistics, follows:
will see to it that the air which
mas
-Unrefined-RefinedClubs .in 1944 will be $86,*1944
1943
*1944
1943
God gave to everyone shall not
of
Statistics
reports.
<$>-
I
Production; of. Lead in
Canada
'
January
February
32,710.839
April
38,604,106
27,336,000
29,753,989
38,807,636
26,306,000
hope
the
you
will not dally with
thought
40;195,154
24,264,103
46.936,027
29,276,000
44.270,768
25,270,297
r___.
March
42,781,098
August
September
1
42,247,932
18,870,000
35,756,084
36,100,126
20,836,000
35,344427
32,113,307
23,160,000
18,319,445
32,884,233
__
33,082,265
28,908,791
October
35,272,574,
30,564,202
November
$.4,635,657
34,751,654
December
month,
though production has been
during
the
Totals,
31,752,789
calendar
444,060,769
year____
As
38,935,112
.
,
448,985,863
we
chapter
of
the
that
the
means
of domination
we
begin
in
air
to
write
195,077,319
"Subject to revision.
309,515,516
194,004,000
315:826,104
a
the fundamental
let
are
735.8%; r / V
"New
mutual
anyone.
us
all
engaged
new
law
remember
in
a
great
..
.
York ranked
savings
first
bank
in
its
Christmas
Clubs, having deposits of $32,416,606: and
496,217 depositors,
sachusetts
994,555
was
second
deposits
Mas¬
with
and
$21.-
380,598
Connecticut followed
attempt to build enduring institu¬
tions of peace. These peace set¬
deoositors.
tlements cannot be endangered by
petty considerations or weakened
177,393 depositors."
by groundless fears.
last
become
over
42,148,088
25,354,000
39,579,471
24,523,164
—___„
22,866,000
40,601,268
19,744,120
July
36,773,575
20.491,362
___.i
Mav
Most
creased
the
of
,
scrap
plus
.
47,589
-
♦Only
ore,
3,999
scrap
Totals
31,266
Committee
Educational
itary work in numbers sufficient Minnesota Bankers Association for
to- make a. beginning.. When both seven
years and was Chairman of
enemies have been defeated they the committee three times.
reports.
fineries;
con¬
freed from war traffic. .German or the Japanese enemy is
tional
Endowment
prizes.
In
we- also
defeated, transport planes should
^Minneapolis, he served on the AIB
•
129,497 tons, against 129,tons, a
month previous and
of the Committee in 1931. In
won fourth place in
the National Public Speaking Con¬
for the fact that some day no other country except the should be available in quantity.
sellers
released
quicksilver
to United States is building airplanes Every country has airports and
their -customers at only a slight capable of carrying world com¬ trained
pilots;
and
practically
tl>e country in bond, is expected
advance
in
prices, the market mercial traffic.. The United States every country knows how to or¬
to figure' in export transactions
during the last week would have has been supplying transports for ganize airlines.
involving manufactures of lead
moved sharply higher, according: military routes for all the United
It would be a reflection on the
after V-E,Day.
%•■ /'"/"/
■ •; - /
to trade opinion.
Buyers were Nations, and it would be difficult common sense of nations if they
.December
business
came
interested in obtaining metal for for other countries to fly interna¬
were not able to make arrange¬
through in good volume last week,
delivery over the next month and tional routes for some time with¬ ments, at least on a provisional
which was reflected in sales for
paid from $113 to $115 per flask. out the use of'American planes."
basis, making possible the open¬
the seven-day period of 7,732 tons.
In some directions as high as $117,
In
opening the
meeting, Mr. ing ; of the much - needed air
This compares with 2,618 tons in
was asked; on small lots. :i On for¬ Berle
told the hundreds of dele¬
routes.
I hope, when your con¬
the preceding week.
ward metal prices
were
largely gates that their: task was to find ference
adjourns, that these ar¬
Lead stocks at United States
nominal, as buyers showed little a working: basis for "making the
rangements will have been made.
smelters- and refineries on Oct. 1
interest
in
December
forward
totaled
chair¬
was
Except
the postwar period.
Foreign origin metal, brought into
in
products
He
Debate
vention, he
the airplanes will
Increasingly
National
1937, at the Institute's annual
why it should.
reason
spe¬
certificates.
the
on
Committee in 193Q and
several years
for
later received two
graduate
served
lieve that the world of today can
afford
and
From the Associated Press
99% tin, continued
per pound.
Quicksilver
Associated Press,
maturity
pressing necessity.
plication
52.000
or
51.125c.
at
52.000
52.000
Nov. 1
:
52.000
52.000
30__
Oct. 31
52.000
52.000
:
28_r...
Oct.
52.000
52.000
Oct:
52.000
52.000
4
Oct. 27__
Jan.
52.000
;
Oct.
Dec.
reached
has
.
Quotations in the domestic mar¬
In calling for action to make
ket remained unchanged.. Straits the air a world ocean of
peaceful
quality tin for shipment, in cents 'commerce the President, it was
lead
ipate, a healthy demand for
-
Rather, with
with
tions,
$11,909,659 deposits and
let
us
work
together
fuh recognition of. the
that the air may
and
manity to service humanity.
sovereignty
juridical equality of all na-
so
be used by hu¬
National Fertilizer Association
Hoiiy's Bond Prices And Bond Yield Averages
given in the following
table/
MOODY'S BOND
U. S.
Daily
Govt.'
Avge.
Corpo-
Averages
'
Bonds
rate"
Nov.
Slock
1944—
7
Corporate by Ratings'
Baa
Aa
118.40
116.80
112.93
103.30
107.62
117.20
112.56
113.31
119.67
118.40
116.80
112.93
103.47
117.20
112.75
113.31
119.55
107.62
4—
112.75
118.40
112.93
103.47
107.62
113.31
119.55
116.80
—
118.40
116.80
112.93
107.44
117.20
112.56
113.31
119.55
103.30
2-__
116.80
112.93
103.30
107.62
113.31
117.20
117.20
3
■
119.33
112.56
112.93
103.47
107.62
27_„-
116.61
113.50
118.60
116.80
112.93
107.44
117.40
112.75
113.50
119.55
103.64
20—
117.00
112.93
103.47
117.20
112.75
117.00
,112.75
114.08
117.20
112.75
106.92
119.52
103:30
6
113.60
118.60
114.08
119,61
107.27
13—
112.56
.116.80
112.56
103.13
117.20
112.37
106.74
117.20
112.56
114.08
119.22
103.13
22_—
118.60
118.60
118.80
114.08
117.00
119,50
106.74
29
Oct.
Sep.
114.27
117.20
a
o—
1
112.19
103.13
118.80
117.20
112,00
103.13
106.74
117.00
112.56
114.27
119.48
112.56
118.80
117.20
112.00
103.13
106.74
114.27
113.80
112.19
103.30
106.74
114.27
117.20
103.30
106.92
114.08
117.20
112.75
119.89
119.84
112.56
118.60
117.20
112.37
112.56
118.60
117.00
112.37
106.92
114.08
117.20
119.84
103.30
11—
112.56
118.80
117.00
112.19
106.74
114.08
117.23
120.08
103.30
4—
;.
18
a
135.4, based
ago
year
prices
products such as road
machinery,
crushed
rock,
fire
trucks, and especially fire-alarm
Furthermore,
these
equipment.
increases—caused
of
will be
higher prices were quoted on only one grade of wheat, while
lower prices were given on oats, rye, and some grades of wheat,
causing this group to continue a downward trend.
The livestock
group marked a definite decline.
Hogs, which have been selling at
ceiling prices for more than three months, declined in value due
to an increased movement on Western markets.
Also cattle, calves
group
and
price increases due to greater de¬
price.
Live fowls was the only item to
The foods group continued to trend upward,
120.21
111.25
118.20
116.41
111.07
100.32
104.31
113.50
116.22
25—._
119.47
111.07
118.20
116.22
111.07
100.16
104.14
113.31
116.41
118.80
117.40
112.93
103.64
107.62
114.27
117.60
mained
110.80
112.19
106.56
114.27
117.00
112.37
116.80
112.00
102.80
106.04
113.89
117.40
102.30
105.86
113.89
117.00
112.19
116.80
111.81
118.40
116.61
111.62
105.34
113.70'
116.41
119.35
101.47
28——
Apr,
119.66
111.81
26
May
118.60
118.40
111.44
118.20
116.41
111.25
100.81
104.66
113.70
116.22
119.68
Mar. 31
112.75
120.44
1.9 44_—
High
119.20
110.70
118.20
116.22
110.88
99.04
103.30
113.12
116.02
120.87
111.44
119.41
117.00
111.81
99.36
103.47
114.27
117.40
1943-—
107.44
116.80
113.89
111.81
1943—:—
116.85
114.46
1944
Low
High
Low
——
92.35
108.88
97.16
Nov.
120.02
111,07
119.00
116.61
111.25
98.73
103.30
113.70
declined; in the preceding week 8 series advanced and 9 declined;
week 8 advanced and 7 declined.
116.61
117,36
1943-:.
6,
107.62
117.00
114.27
10870
92,64
97.31
112.00
114.27
MOODY'S BOND YIELD
Govt.
Daily
Nov.
Stock
7_
Corporate by Groups'
Corporate by Ratings*
Aa
Aaa
rate1
Baa
2.73
2.81
3.01
1.87
3.02
2.73
2.81
3.01
3.02
2.73
2.81
3.01
2.73
3.01
3.30
3.55
1.87
3.03
1.87
3.03
2.99
2.99
143.5
142.5
145.1
145.1
163.1
2.79
t166.1
2.81
3.01
3.30
2.99
3.03
2.73
2.82
3.01
3.54
3.30
2.98
3.02
272
2.81
3.01
3.53
3.31
2.98
2.78
13—
1.85
3.02
2,72
2.80
3.01
3.54
3.32
—.
3.55
Metals—
3.02
3.55
3.34
2.95
3.03
2.81
3.03
3.56
3.35
2.95
188.9
162.1
155.8
160.5
148.4
devaluate, countries which do not
lose trade.
130.4
130.1
122.8
132.2
131.4
155.5
150.2
2.80
:
104.0
104.0
104.1
104.4
154.1
154.0
154.0
152.5
its
a
29——,
1.84
126.1
3.56
118.3
117.7
3.05
3.56
2.94
118.3
2.79
3.35
118.3
2,71
Fertilizer materials———
3.03
2.79
1.83
Fertilizers———;
119.9
119.9
119.9
119.8
Farm
104.7
104.7
104.7
104.2
139.3
1139.8
139.5
135.4
1.84
3.03
2.71
2.79
3.06
3.56
3.35
2.94
3.03
2.71
279
3.06
3.56
3.35
2.94
279
1.81
1.81
3.02
2.71
2.73
3,05
3.55
3.35
2.94
2.79
1.81
2.72
2.79
3.04
3.55
3.34
2.95
3.03
272
2.80
3.04
3.55
3.34
2.95
2.79
1.79
3.03
271
2.80
3.05
3.55
3.35
2.95
279
1.79
3.04
2.72
•2.81
3.05
3.56
3.36
2.94
>79
13.04
2.72
2.81
3.06
3.58
3.39
2.96
3.05
2.73
2.81
,3.07
3.61
2.96
2.80
3,43
2.97
2.83
combined
,
2.78
1.84
3.40
26—__L
—
—
11
4—.
July
28
May
.
Apr. 28——.
25—
l.fi3,
l.hi<
28——.
1.87
Jan.
3.66
3.08
2.82
273
3.07
1:86
Mar. 31--=—/.
Feb.
2.84
2.97
3.47
3,09
2.74
2.83
3.10
370
3.10
2.74
2.83
3.11
3.73
3.49
2.98
2.84
3.11
.
2.74
,2.84
3.11
3.74
3.50
2.99
2.83
3.81.
3.55
2.85
3.00
2.84
3.12
1,77
3.02
2.71
2.73
>3,01
3.53
3.30
2.94
2.77
1944-—-,
3.31
2.81
2.96
3.23
4.25
3.93
3.07
2.93
1943—
2.08
3.09
2.68
2.80
3.07
379
3.54
2.78
1.79
2.94
1943—,
3.10
3.83
3.55
2.97
2.82
3,24
4.23
3.92
3.06
High
High
Low
2.74
3.13
1.87
1944—.
Low
1.84
3.11
2,.70
2.05
1943.
6,
2.82
3.30
2.80
2.94
'
.2 Years Ago
Nov;
1942.
7,
'
.
2.94
yields on the basis of one "typical" bond
73%71 coupon, maturing in 25 years) and'do not purport to show either the average
level or the average movement
of actual price quotations.
They merely serve to
iillustrate in a more comprehensive way the relative levels and the relative movement
of yield averages, the latter being the true picture of the bond market.
tThfc latest complete list of bonds used in computing these indexes was published
prices are computed from average
"These
1926-1928
on
base
were;
Nov,
WPB makes this
possible. Some orders do not show
exact specifications for any deliv¬
ery schedules.
Some are for total
soon
as
restrictions
as
off, while others are for an in¬
period. Because
of this situation, steel companies
are in no position to make definite
production plans.
factor
"Another
lower
lends
which
of a
operating rate is the report
the
to
possibility
the
issue of Jan.
1943, page 202.
14,
Sleel Production Rises
tonnage
bar and
for
the
United Kingdom will be
in
cancelled,
that December lend-lease
semi-finished
—
thus
Post-War Orders
Increase—Demand for War Needs Sligltly Up
easing the situation
further
Total lendfor the first quarter
categories.
these
in
lease tonnages
1945, because of the almost dis¬
appearing
demand from Great
week and the output
Britain, will probably not be an
of steel ingots continued at a relatively high level, but all was not
important factor in regular steel
tranquil in the minds of those who make and those who buy steel," shipments."
"The Iron Age" states in its issue: of today (Nov. 9), further adding
The American Iron and Steel
in part as follows:
"Confusion was mounting this week as to the Institute on Nov. 6 announced that
trouble trend of post-war steel ^der volume, while at the same time
telegraphic reports which it had
"Steel order volume
popular ban on post-war talk^
made many with definite plans re¬ everything, else. The product mix,
however, which keeps steel mills
luctant to disclose them.
"In
recent
weeks
war
needs operating so that the best distribu¬
have shown a slight increase in tion pattern is obtained, is rear¬
the
demand, but at the same time steel
in their
mills have had to fill gaps
of
heavy this past
was
ing its head higher than for some
time.
110B.9;
28,
and
received indicated that
the operat¬
ing rate of steel companies having
94% of the steel capacity of the
industry will be 96.3% of
the week beginning
for
capacity
Nov.
6,
compared with 94.9% one week
ago,
96.9% one month ago and
probability
the end .of first quarter
that by
be
will
it
negligible.
relatively
requirements, white likely
to be better sustained than the
merchant program, also have been
easing as a result of cut-backs
Navy
during recent weeks.
Decline
bringing
ship
in
relief
to
steel
for
other
and
sheet
rolled
the
products.
Effect
light flat-
products is expected to be
greatest as it also releases more
finishing capacity of that product.
The transformation is being sub¬
(
.
r
"4
,
turn
j(i!
248.6
Nov.
246.6
246.7
ago,
1943
-
247.6
*
248.5
-250.4
———-
7-
Two weeks ago,
Oct. 24...
—„
Oct.■ 7—
6, 1943j.—
2447
Nov.
Year
High,
April
Jan
1944 HMh,
Oct.
Nov.
24T«
1_„
2'-.a*.
—
1-——
1—I-,-
^Holiday.
'
2«*o;2
2577
3-^--,—,—,
""
Low,
year.
growing
more
that
The feeling is
with
the
lack
of
definite reconversion plans,
247.2
2
Fatip'day, Nov,. 4
Monday, Noy. 6
Month
245.7
Nov, 3
Tuesday.
of the
i
'(Tuesday, Oct. 31, 1944..
Wednesday, Nov. I—
Friday,
245.7
.
only
thermore,
As the effects of inflation
(B)
recognized there will be
by real estate owners,
become
demand
a
requirements
still
are
spite of smaller needs
spine"/ directives have been
issued
recently, for nearby de¬
liveries and also for January roll¬
large,
owners
fearful of fires
dise will
be
and
anxious for greater pro¬
more
all
inflation
talk
with
the
property
officials
city
Therefore
now
can
more
full
their
to
of
support
owners.
Cfirislntas
Greeting
Cards for Overseas
in
and.
It is believed that bv the
end of the year strip plate rolling
will be'limited severely.
ings;
Because
1
costs
replace property,
the
of buildings and merchan¬
to
more
plates.
Plate
it
When
protection.
citizens
in
processing
compared with
others,for greater
merchants and
fire
booked and also
necessity'for developing sufficient
trained manpower for the extra
contracts already
required
Fur¬
justice-
common
demands an increase in firemen's
tection.
heavy
of
an
melting
advance
steel
in
No:,
at
;*■
Postmaster. Albert Goldman an¬
nounced
tion
Nov.
on
has
been
1
that informa¬
received
the
from
Post Office Department at Wash¬
ington,
advises
that ,the War Department
Christmas greeting cards
for soldiers overseas must be sent
in
sealed
at
the
envelopes
first-class
further
Department
such
and
that
urges
be.t mailed
cards
prepaid
The War
rate.
at
once
stating that cards mailed now will,
to the Army Postal
according
Service, reach even the most
by Dec. 25.
"
mote A.P.O.'s
re^
5
,
,
.
m
Nov.
better off the cities will be.
■
Moody's Daily
Thursday.
purchase new equipment and ex¬
tend their fire-alarm systems the
jected to some deterrents, such as
need for rolling the remainder of
work
a
wages.
is
general
other
sheets and strip, as
post-war
period
general rise in the
the
In
prices of all materials which mu¬
nicipalities purchase. This means
that the sooner fire departments
tonnage
market because it frees more raw
on
later in¬
or
prices offset all advan¬
tages temporarily secured by a
"cheap dollar."
Hence, to refer
again to fire departments:
(A)
Pitts¬
schedules as a result of partial
98.2% one year ago. The operate, burgh the average composite of
or, complete cancellations on some
ing rate for the week beginning steelmaking scrap has advanced
items. This situation has made all items have increased, plate direc¬ Nov. 6 is
equivalent to 1,732,400 16 cents to $16.16 per ton.
This
steel
sales
offices
competitive tives are on the. down-grade and
tons of Steel ingots; and castings,
is the first upward movement of
large
manufacturers
are
minded even as .{hey know they some
compared to *1,707.200 tons one this composite since the break of
nearing the end of some of' their
must and will, give war require¬
week; ago,
1,743.200
tons one several weeks ago. Finished steel
ments
absolute,-vprecedepce over biggegt war contracts. Thus white month
ago, and 1,711,600 tons one
eUirent order volume looks go6d
composite is unchanged at $5(?-73,
semi-finished
steel at $36 and
from a statistical standpoint, steel year ago.
.1
"Steel"
of
Cleveland,
in its
steelmaking pig iron at $23.05
operators are beginning to worry
.mnvl'/an;
summary
of the iron and steel
about
enough business to ade¬
markets, on Nov. 6, stated in part
quately operate facilities, after.the
Quonset huts,
ammunition and other needed war
"While orders for
Sooner
time.
short
Nov.
accelerated pace, with
definite delivery
credence
Oct.
like whiskey,
stimulating effects last for only
there will be
approval from
deliveries
108.5;
1944,
4,
(Revised.
105.5.
type of bookings can be accepted
but cannot be rolled until proper
are
1 Year Ago
Nov.
"Indexes
6. '1943,
temporary stimu¬
a
creased
2.80
June 30—L-.
—
machinery:
All groups
100,0
2.79
3.03
1.81
13
J
drugs———
and
is
Inflation
127.7
3.04
2.95
162.1
2.79
3.35
126.1
2.72
Chemicals
3.03
2.79
1.86
2.80
countries
lant to business; but,
—.
15
Aug. 25
other
When
dollar.
its
155.0
22
Sep.
the United States further devalue
206.6
133.4
Building materials—.
2.80
2.72
Those engaged in foreign
usually anxious to have
trade are
133.4
commodities--——--.
2.79
2.72
get out of debt.
130.4
2.79
'
for them to sell
be easier
will
it
154.9
Miscellaneous
as
162.7
.
159.0
2.95
3.02
1.85
y t>
2.73
They know that
money.
203.4
158.8
2.79
1.89
1.86
1—
27.
ap¬
1159.8
202.3
Livestock-
This
inflation.
more
plies to farmers, real estate pro¬
moters and some merchants who
(3)
154.5
1-63.4
bonds or currency.
will continue to
Debtors
(2)
howl for
and
161.3
165.5
Farm Products.—-.————-
In order for the Govern¬
pay
its bills, it must
to
ment
146.1
163.1
2.79
23.0
6,
1943
163.1
—
expenses
are
of Government re¬
excess
ceipts.
140.0
,
145.1
Cottonseed Oil—
2.79
2.99
20——.
Oct.
25.3
2.79
3.30
3.54
2.81
2.99
3.31
3.54
1.87
2——.
143.9
2.79
3.30
3.55
4,
'
3.03
Nov.
1.944
Fats and Oils-——
1.86
3—--
'
1944
Government
(1)
still in
of the land, houses and
goods.which they now own go up,
Ago
Ago
Oct. 7,
Oct. 28,
4,
1944
Total Index
Indus.
P.U.
Exchange Closed
6-
•
R. R.
Week
Week
Nov.
Group
3ears to the
Corpo-
Bonds
Averages
%
I'ach Group
Prices)
Avge.
three reasons:
prices
Year
Month
Latest Preceding
argues
with
inflation is not
give them the following
someone
case
owe
Fertilizer Association '
The National
by
1935-1939=100'
AVERAGES
(Based on Individual Closing
U. S.
1944—
Compiled
PRICE INDEX
COMMODITY
WHOLESALE
WEEKLY
1942-
7,
More
that further
coming,.
in the index advanced and 10
During the week .7 price series
2 Years Ago
In
you
either print
.
and in the second preceding
1 Year Ago
NOV,
week, causing a fractional decline
unchanged from the previous week.
be
can
war
Inflation
28———
118.60
120.15
the
Expecting
for
Reasons
Jan.
112.37
30^—---
In
things which cities
after
bought for less now.
?eb.
120.10
103.13
28-—-
June
general prosperity.
the
need
will
in the textiles
group.
After having declined for some weeks, scrap steel prices
increased slightly, but not sufficiently to change the metals group
index number.
Advancing prices for linseed oil caused a fractional
increase in the building materials group, marking the first change
in this group since July of this year.
All other group indexes re¬
July
all
fact,
reflecting higher quotations on oranges and potatoes.
Cotton prices
fluctuated within a narrow range with closing quotations slightly
under the previous
inflation—
by
addition to the natural
m
mand and
in
lower
were
ewes
increase in this group.
inflation
II
of finished
sharp decline in the prices of farm products was the primary
the decline in the all-commodity index,.
In the. grains
A
cause
War
will show itself in increased
the 1935-1939 average as
on
\
..
.
.
World
After
report added:
117.23
117.40
112.56
119.42
--
—
25
Aug.
117.20
106.74
119.81
15—
■
112.56
119.55
—
and
Association's
The
boom.
war
compiled by The
Nov. 6, declined
A month' ago this index regis¬
139.81 in the preceding week.
100.
117.20
118.40
118,40
1
from
on
139.3 in the week ending Nov. 4
for the second consecutive week to
tered 139.5
Closed
Exchange
Corporate by Groups*
R. R.
P. U.
Indus.
6—
-
public
National Fertilizer Association and made
Yields)
►
Aaa
(Continued from first page) ■•<'.
when the nation is facing a post-
The weekly wholesale commodity price index,
PRICES!
(Based on Average
What Is i Inflation?
Commodity
Price Index Declines
Moody's computed bond prices and bond yield averages are
t
Thursday, November 9, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
2060
the first quarter of 1945 may see
in .steel output because
there is not sufficient volume of
a
drop
various
insure
types
of
steel
orders
to
abnormal and; economic
operating] pattern. ,
.
"Post-war p^der^s jvere, still pqllr
ing into flqej mills this/week and
the total., volume of such business
was
defjnjjtqly increasing. This
as
follows:
'/
-
•
Shipbuilding requirements
con¬
factor in war
requirements • shrinkage,
with
other needs holding close to peak,
stitute,
main
the
including heavy projectiles,-land
transport
Smaller
follows
and aircraft.
need
the
for
.
steel
decline, in
plates
sbipwark,
which until recently was the
prin¬
,
,-ffqipr ; in \ record-breaking
plate py^ut.
The merchant sfiip
program; Jas been tapering at an
cipal
Hitchings Pres. of Essex
County Bankers
At the fall meeting
"Evening News" of Oct. XI
quote:
'
Bankers Association on
Oct. 28, Roy- A. Hitchings, Presi¬
dent
of the Irvington National
County
Bank, Irvington,.N. J.,,was elected
President
of
the,
Association!
'
"Frederick J.
;v,;
*'
the
E.
National
Banking
also
;
the'retiring
"
Wiedenmayer
Newark
Co.
;
toastmaster.
was
"Gustave
we
I^ugtemarrof the
National State Bank,
President,
of the Bsseif
'
/
was
&
elected
of
Essex
First'
Vice-President of the Association
and
Thomas
A.
Stales Savings
President.
Loup him, United
Bank/Second Vice-
Herbert
M. Appleton
Ampog the guests at the meeting,
Frank D. Abelf. President 'of of the Verona Trust/Co. was made
Treasurer and Frank F. Fay Jr.
the- -New Jersey
State Bankers
of Federal Trust to. Secretary.
Association.
From; the Newarfc
was
in
Wholesale Prices
Up Slightly for Week Ended
October 28, Labor UeparkeBit Reports
2061
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4332
Volume 160
Gains over the 1943 week are
in waterworks, sewerage, industrial and public buildings, earthwork
and drainage, and streets and roads;
Subtotals for the week in each
class of construction are; waterworks, $485,000; sewerage, $398,000;
Led by higher prices for oats and rye, and seasonal advances for
bridges, $495,000; industrial buildings, $3,689,000; commercial build¬
live poultry and eggs, the Bureau of Labor Statistics' index of com¬
ing and large-scale private housing, $1,400,000; public buildings, $15modity prices in primary markets rose slightly* by 0.1% during the 569,000; earthwork and drainage, $2,153,000; streets and roads, $3,last week of October, it was announced by the U. S. Department of
030,000; and unclassified construction, $5,174,000.
Labor on Nov. 2, which further said;
The increase brought the allNew capital for construction purposes for the week totals $16,commodity index to the level which prevailed at the beginning of
308,000, and is made up entirely of state and municipal bond sales.
the month, 103.9% of the 1926 average.
The index is 0.1% higher The week's new financing brings 1944 volume to $1,661,796,000, a
than at this time last month and 1.1% over the corresponding week
figure 45% below the $3,043,627,000 reported for the 44-week 1944
of 1943, according to the report which continued:
total, f
":
■
-..
1
v'
1.•
Farm Products and Foods—Average prices of farm products in
■
.
primary markets rose 0.4% during the week with oats up
rye
and
"This
drainage, streets and
sewerage,"public buildings, earthwork and
roads, anq unclassified construction.
the,
upon
at
now
war
winning of the war in the
shortest possible time is our pres¬
ent greatest objective," Dr. Witte's
opinion, written for the WLB,
stated.
much
is
"There
including
support,
Court
Supreme
many
decisions, for the view that where
State laws conflict with authority
exercised
fully
the
under
war
time of war
which the
in
powers
Constitution confers upon the na¬
tional government,
cannot be applied
.
5% and
the State laws
to impede the
effort."
The
Weekly Goal and Soke Production SSatlslics
rests
and the
war
nearly 4%. Live poultry prices were higher in both the Chicago
New York markets.
A seasonal advance of nearly 4% was re¬
position
fact that the nation is
opinion stated that the
com¬
pany's refusal to adopt a check-off
The Solid Fuels Administration for War, U. S. Department of the' provision was based on the belief
it was "integrally connected with
Interior, in its latest report, states that the total production of soft j
maintenance
of member¬
coal in the week ended Oct. 28, 1944 is estimated at 12,150,000 net union
The rise in prices for eggs largely accounted for an increase of
tons, an increase of 350,000 tons, or 3%, over the preceding week.
In ship."
The check-off provision, affect¬
0.2% in average prices for foods during the week. Fruits and vege¬ the corresponding week of 1943, output amounted to 10,026,000 tons.
tables, rose 0.1% because of higher prices for apples in the New York 'Cumulative production of soft coal from Jan. 1 to Oct. 28, 1944 totaled ing
only • those union members
market and for potatoes at Boston,
Oatmeal and rye flour prices 518,555,000 tons, an increase of 5.8% over the 490,227,000 tons pro¬ who notify the company in writing;
of their desire to have their dues
increased about 3%.
Quotations declined for wheat, for white pota¬ duced in the same period last year.
'
>
deducted from their pay, "clearly
toes at New York and Chicago, and for sweet potatoes and onions.
According to the U, S. Bureau of Mines, output of Pennsylvania
is independent" of the union main¬
Industrial
Commodities—Industrial
commodity markets con¬ anthracite for the week ended Oct.
28, 1944 was estimated at 1,319,000
tenance provision, said Dr. Witte.
tinued relatively steady. A correction in prices for coal reported as
tons, an increase of 34,000 tons (2.6%) over the preceding week.
The Board
said this was the
being effective in June and lower realizations for electricity brought When compared with the production in the corresponding week of
the Judex for fuel and lighting materials down to 0.1%. There was an 1943, there was an increase of 278,000 tons, or 26.7%.
The calendar final action on the issue and gave
increase of nearly 1% for quicksilver, as a result of lower production
both the union and the company
year to date, shows an increase of 5.5% when compared with the
and increased demand, but the index for the metals and metal prod¬
until Saturday
to
say
whether
same period in 1943.
ucts group remained unchanged.
An increase of 0.1% in average
they intern# to comply.
The Bureau of Mines also reported that the estimated produc¬
prices for building materials resulted from increased ceiling prices
The maintenance - of - member¬
tion of beehive coke in the United States for the week ended Oct. 28,
for cement in the Southwestern states earlier in the month. >
1944 showed an increase of 300 tons when compared with the output ship issue was not involved in the
The following notation was included1 in the Labor Department's
case recently decided by the Wis¬
for the week ended Oct. 21, 1944; but was 47,600 tons less than for the
report:
■ d •
•
>>'>''
■ •>;
consin Supreme Court, the opin¬
corresponding week of 1943.
Note—During the period of rapid changes caused by price con¬
ion said.
Instead, it pertained toESTIMATED UNITED STATES PRODUCTION OP COAL, IN NET TONS
two
trols, materials allocation, and rationing, the Bureau of Labor Sta¬
employees who were
dis¬
tistics will attempt promptly to report changing prices.
Indexes
-——7——Week Ended————
—:
January 1 to Datecharged because they had not
marked (*}, however, must be considered as preliminary and subject
Bituminous coal
"Oct. 28,
Oct. 21,
Oct. 30,
*Oct, 28,
Oct. 30,
Oct. 30,
taken out work permits under a
and lignite—
1944
1944
1943
1944
1943
1937
to such adjustment and revision as required by later and more com¬
contract provision. The court held
Total incl. mine fuel 12,150,000 11,800,000 10,026,000 518,555,000 490,227,000 371,415,000
the discharges violated the Wis¬
plete reports.
Daily average
2,025,000
1,967,000
1,671,000
2,022,000
1,902,000
1,454,000
The following tables show (1) index numbers for the principal
consin
Employment
Peace
Act
•Subject to current adjustment.
groups of commodities for the past three weeks, for September 30,
"making it an unfair labor prac¬
ESTIMATED PRODUCTION OF PENNSYLVANIA ANTHRACITE AND COKE
3944 and October 30, 1943,, and the percentage changes from a week
tice for an employer to interfere
(In Net Tons)
with the free choice of employees
ago, a month ago, and a year ago and (2) percentage changes in sub¬
-Calendar Year to Date
ported for eggs, Hay and wool also advanced. A few important
farm products, particularly wheat, cotton, and certain fresh vege¬
tables declined slightly.
■
,
.
Week Ended
indexes from October 21 to 28, 1944.
group
WHOLESALE
PRICES
FOR
WEEK ENDED
OCT.
1944
28,
•Totalincl.-coll.
(1926—100)
.
Percentage change to
Oct. 28,
Oct. 30,
Oct; 30,
1944
1943
1944
1943
1937
1,319,000
1944
*103.8
102.8
+0.1
+0.1
122.8
122.2
+
0.4
+ 0.4
103.9
105.0
+
0.2
+ 0.2
0
+ 0.2
1944
>103.8
*103.8
123.3
122.8
122.7
104.1
103.9
103.8
—
10-30
1944
1944
->103.9
products—
1,285,000
54,351,000
51,508,000
42,658,000
1,266,000
1,234,000
1,041,000
999,000
9-30
52,178,000
49,448,000
123,500
171,400
6,092,200
6,594,400
+
1.1
116.7
116.7
116.7
116.5
.98.9
products—.
118.4
98.9
98.8
98.5
97.2
Textile products—;
—
—
total
States
•Includes
washery
and
dredge
+
1.7
—0.2
+
2.3
83.5
83.6
83.8
83.7
*103.8
*103.9
*103.8
103.8
0
0
116.4
116.3
116.1
+ 0.4
4.5
0
112.8
+ 0.1
104.9
100.4
0
106.1
106.1
106.1
104.2
0
93.4
•93.4
93.4
93.4
92.9
0
0
0.5
113.5
113.2
113J2
113.2
111.8
+ 0.3
+ 0.3
4.5
94.3
94.7
94.7
94.6
Semimanufactured articles——.
Manufactured products—+L—+. *101.1 *101.2 *101.2 *101.1
I
All
commodities
other'than
0
+ 0.4
2.0
100.3
0
0.8
104.9
Housefurnishing goodsMiscellaneous commodities—
.
Raw materials—
'farm
—,,
farm products
.
92.8
—0.1
ind
*99.7
*39.7
*99.6
98.6
—0.1
0
+
1.0
1.
other
*99.6
>98.8
*98.9
*98.9
*98.8
97.5
—0.1
0
+
1.3
and foods
PERCENTAGE CHANGES IN SUBGROUP INDEXES
OCT.
Increases '
'
Cement
1
—
Other farm
Fruits
-.... ™._.
.
0.5
products—'--——
0.3
0.1
•—u__...1
Anthracite
Cereal
0.2
Alaska
™-_:
:.
...
0.1
Bituminous coal
.—
Colorado—..
0.1
engineering construction volume for the week totals $32,393,000.
This continental United States volume, not including the
construction by military engineers abroad, American contracts out¬
is 46% above the total for the
preceding week, but is'8% lower than in the corresponding 1943
week, and 3% under the previous four-week moving average as re¬
ported to "Engineering News-Record."
The report made public on
Nov. 2, went on to say:'
'
'
,
■>.*.'•
—;—
Iowa..
'
1944 volume to $1,539,-
$2,716,958,000
reported for the corresponding 1943 period.
Private construction,
$319,463,000, is 19% lower than last year, and public work, $1,219,686,000, is down 48% as a result of the 53% decline in federal volume.
and municipal
construction is 22%
higher than in the 1943
period.
engineering construction volumes for the 1943 week, last
Civil
week and the current week are:
Nov.
Total U.
Private
Public
S. Construction.
Construction.
Construction.—
State and
Mumcipal.....
Federal
In
$35,206,000
15,388,000
19,818,000
1,226,000
18,592,000
the classified construction
4,1943
groups,
Oct. 26,1944
$22,174,000
9,442,000
12,732,000
4,350,000
8,382,000
gains
over
V1'
178,000
1,417,000"
1,178,000
351,000
346,000
..
47,000
48,000
93,000
163,000
52,000
184,000
172,000
970,000
962,000
360,000
380,000
31,000
35,000
3,000
3,000
„
(bitum. & lignite).rL-'
33,000
69,000
.
.
■•
Nov. 2,1944
$32,393,000
5,614,000
26,779,000
3,873,000
22,906,000
last week
are
;
.
32,0,00
••'■?,
872,000
857,000
203,000
308,000
35,000
--
34,000
.
4,000
■,
10,000
101,000
•
80,000
36,000
...
.
:
37,000
173,000
58,000-
85,000
667,000
662,000
542,000
2,965,000
3,006,000
2,235,000
128,000
133,000
109.000
4,000
6,000
20,000
142,000
92,000
90,000
382,000
371,000
32,000
31,000
26,000
2,004,000
2,012,000
1,045,000
190,000
2,222,000
696,000
2,850,000
137,000
(bituminous & lignite)
.Utah
105,000
116,000
New Mexico—.
North & South Dakota (lignite).
Ohio.
r
.
3,000
v..
121,000
—
360,000
..
1,019,000
•"■"••186,000 rl.
Wyoming™—
'
'334,000
•>-.
46,000
1,931,000
:
958,000
187,000
560,000
156,000
'
§Other Western States.™......
meeting of the Board of
a
the
of
National
Retail
Goods Association, held in
organization's
New
York
offices, last month, a number of
current
at
problems
discussed
were
length.
Considerable attention
given to the question as to
was
whether
nual
should
be
the
not
or
meeting
regular
of the
held
usual
as
an¬
Association
in
New
York next
January, the Board be¬
ing desirous of conforming to the
effort
of
the
Office
of
Defense
:
•'
1 *
1,000
:>
■
Transportation to conserve the use
of transportation during the war.
The postponement of several im¬
portant divisional meetings which
had
been
last
lieved
Total bituminous & lignite-
11,800,000
Pennsylvania anthracite™™™.
1,285,000'
Total, all coal.——...J—
11,875,000
'13,085,000
1,318,000
11,467,000
1,297,000
the B.
10,864.000
K. & M.; B. C, & G.; and
& ,0.
in .Kanawha, Mason and Clay counties.
(Rest of State, including the
District and Grant, Mineral and Tucker counties.
§Includes Arizona and
Panhandle
Oregon.
1,184,000
12,764,000
'
13,193,000.,
(Includes operations on the N. & W.; C. & O.; Virginian;
m
9,680,000
*Less than 1,000 tons.
'
•
•
-f
an
be¬
to
earnest of the desire
cooperate
in
effort.
this
On
it
the
men
in busi¬
was
of
fraught with
are
problems for
and
thought that a
meeting of the Association in Jan¬
uary
would serve not only the.
interests
trade
but
the
larger interests of the nation-.
The matter
finally
decision to
President
ie
was
about
was
of
was
Messrs.
referred
Edward N. Allen,
Association and
the
the General Manager.
WLB Oontends Stale Laws
it
the other hand, it was recognized
for
.'•
invasion
held
be
to
because
that these times
great
1,000
the
begin is
to
scheduled
summer
ness
Allen "and
As
a
Hahn
result,
decided
to
Applied to Impede War Effort
The
a
149,000 for the 44 weeks, a decrease of 43% from the
State
112,000
1,000
-••.
552,000
551,000
.
increase of 110%, is responsible for
current week's construction brings
3,000
183,000
l.ooo
170,000
'
The
;
1,345,000
Kansas and Missouri__™.™™..
last week, as private work is 40% lower than a week
Public work is 35% over the 1943 week's total, but private
construction is down 63%.
1937
264,000
92,000
150,000
,
1,403,000
the gain over
ago.
Oct. 23,
6,000 ^
98,000
1,000
;
.Indiana—™.
Civil
an
97,000
160,000
——.
Virginia
Engineering Construction $32,393,000 for
Week—Gains M% Over Preceding Week
with
1943
7,000
1
Civil
Public construction,
At
Directors
Dry
Oct. 23,
101,ooO
(West Virginia—-Southern—..
(West -Virginia—Northern.....
country, and shipbuilding,
1
"
Illinois
Washington.
side, the
Regular
January Conference
the
1944
>''■'■■
7,000
.i™...
Arkansas and Oklahoma——.
Texas
products--——
;
'
Pennsylvania (bituminous)
Decreases
.
-
Oct. 14,
,
365,000
-1 .'■
Tennessee.....—
.
.
:
370.000
.
1944)
A1 a ba ma..,
Montana
;
vegetables..™....
and
mmk to Hold
*
Livestock and poultry
0.5
——
——_
Grains
0.9
0.5
—
Oct. 21,
'•';■
.'■•State—
Maryland
Michigan
21, 1944 TO OCT. 28, 1944
—————_I_.™>
foods
Other
FROM
BY STATES
—WeekEnded
Kentucky~-Eastern—_
Kentucky—Western
•Preliminary.
authorized
receipt of monthly tonnage reports from district and
revision on
subject to
are
Georgia and North Carolina—.'
:
than
products.
commodities
All
—.
.
2,857,900
from
§Revised.
Stale sources or of final annual returns from the operators.)
1.8
115.9
104.9
106.1
_
truck
by
(In Net Tons)
0
104.9
Building materials
Chemicals and allied products
shipped
ESTIMATED WEEKLY PRODUCTION OF COAL.
3.2
0
•;
coal
(The current weekly estimates are based on railroad carloadings and river shipments
1.4
+ 0.4
0
—0.1
and
(Subject to revision.
(Excludes colliery fuel;
operations.
0.9
Metals and metal products——— "103.3
Fuel and lighting materials..—)
coal
0.9
81.6
membership in a labor organiza¬
tion," said Dr. Witte.
Beehive coke—-
United
1943
+
in relation to membership or non-
40,525,000
123,800
§Oct. 21,
.
———
Hides and leather
1943
y .1944
All commodities..——.
Foods
1944
9-30
Commodity Groups-
Flirm
10-21
10-14.
fuel
tCommercial produc.
Oct. 28, 1944 from
10-30
10-21
10-28
———«
Oct. 30,
1944
tOct. 28,
Penn. anthracite—
a
of
National
War Labor
Board
held
on
Oct.
26
that to
settle
labor
dispute affecting the war effort it could order inclusion of
maintenance-of-union membership clause in a contract regardless
State
an#-
Washington
went
on
to
law
to the
Oct. 26,
on
as
contrary.' Associated
Press
advices
clause, directed at the packers'
plant, violated the Wisconsin Em¬
ployment Peace Act.
ordered
by both the regional an# National
between the
the Packinghouse
Workers
Organizing Committee,
Congress of Industrial Organiza¬
boards
in
company
a
dispute
and
8tJv at 'the Hotel
New York. ! The
Board
^
received
reports
on
the
with the'disposal of Government
rejected the conten-^Com¬ tions affiliate, representing 1,400
pany,
Cudahy,
Wis.,
that
the employees.
Even if the Wisconsin act pro¬
Board's
standard
membership
been
Jan.
given in the New York "Herald Tribune,"
The board
had
of
sith||||ni; existing: ip connection
say:
clause
week
Pennsylvania,
from
tion of the Cudahy Brothers
This
proceed with1-preparations for
a stream-lined' conference, which
is
scheduled to take place the
hibited such
win
a
provision, Dr. Ed¬
"Witte, public member of
Board, asserted, "this Board
would still have authority to di¬
rect such a provision hi'settlement
a
labor dispute
ment
fort
surplus goods, the regulations of
the WLB as they may concern the
effort to recruit sufficient people
to carry on the Christmas trade in
the
in
E.
the
of
.
as
as
pany."
iii1
an
establish¬
important to'the
is
the
war
plant of this
in
stores, the successful opening
Washington, D. C. of the
retail
sored
the
by
Prpmotion
Absecon
ef¬
com¬
sales
promotion
Association's
Division,
Conference,
Control situation and
kindred
the
matters.
the
a
course
spon¬
Sales
recent
Price
number of
THE COMMERCIAL & FINANCIAL CHRONICLE
2062
Thursday, November 9, 1944
n
Daily Average Crude Oil Production for Week
Barrels
Ended Oct. 28, 1944 Decreased
the daily aver¬
The American Petroleum Institute estimates that
Oct. 28, 1944 was
crude oil production for the week ended
age gross
from the pre¬
4,740,900 barrels, a decline of 4,000 barrels per day
the
than
higher
figure recommended by the petroleum Ad¬
The current figure, however, is 32,400 barrels
ceding week.
daily average
of October, 1944 and exceeds the
ministration for War for the month
Oct. 28, 1944 averaged 4,725,950 bar¬
tion for the four weeks ended
reported' by the Institute follow:
Further details as
rels.
Daily produc¬
1943 by 437,950 barrels per day.
week ended Oct. 30,
'
,
,
-
The
Exchange
public
on
New York Stock Exchange and the New York Curb Exchange and, Nov. 1 a summary for the week
the volume of round-lot stock transactions for the account of all ended Oct. 21 of complete figures
The Securitiies and Exchange Commission .made public on Nov. 1
v
•
Securities, and
•
the
Commission
members of these exchanges .in the week ended rOct. l4, continuing
a series of current figures
being published weekly by the Commission.
transactions
-Short sales
of all odd-lot dealers and
figures showing the volume
are
of
found-lot stock sales
total
shown separately
on
from other sales in these figures.
made
showing the daily volume of stock
account
odd-lot
for
special- '
Trading on the Btock: Exchange r for .fheyaccount of members ists who handled odd lots on the
(except odd-lot dealers) durjfeg the week ended Oct. 14 (in Tound- New York Stock Exchange, con¬
lot transactions) totaled ly01l9.1.24 shares, which amount was 16.10%' tinuing a series of current -figures
This being published by thd Commis¬
sion. The figures are based upbn
reports filed with the Commis¬
1,892,322 shares, or 1818%
On the New York Curb Exchange, member iracting during ."the week, sion by the odd-lot dealers and
ended Oct. 14 amounted to "332.135
sharesj or 16.10% of the total vol¬ 'Bpecialistst.' yy'7'y:'';'
ume flan, fhat ex'dhange
? STOCK TRANSACTIONS ' FOR THE ODDLOT ACCOUNT" OF ODDlLOT- DEALERS'
trading forfhe accoiiuatibf
of the total transactions
with
compares
the Excange of "3,164,1150 shares..
on
member trading
during- the week ended 'Oct;: 7 of
of the* total "trading of 4,927;950 shares.
.
indicate that the in¬
Reports received, from refining companies
dustry as
approxi¬
whole ran to stills on a Bureau of Mines basis
a
crude oil: daily and produced 14,117,000
barrels of gasoline; 1,486,000 barrels of kerosine,; 4,722,000 barrels of
distillate fuel, and 8,985,000 barrels of residual-fuel oil during the,
mately 4,658,000 barrels of
of total
■:AND .SPECIALISTS
trading of 1
;
'Total Round-Lot Stock Sales-on
■
48,-\
863,000 barrels of distillate fuel,-and £4,224,000 barrels of residual,
'
•,
*'
'•;
■
■■
•
Oklahoma
Nebraska
Ended
Oct. 30,
1944
1943
269,400
4,000
345,000
275,450
274,650
1,000
—
+
—
950
'■
Nortel 'Texas
148,800
148,800
West
492,800
Texas—
371,350
Southwest
371,350
288,150
537,700
519,350
2,133.350
2,133,000 12,134,113
y y •"
434,883
total
438,243
sales.
value
Dollar
'7,960
Short
sales
tOther
141,820
.—
$16209,361
.
140
sales
—
Total
purchases—J.
Total
—„
88,425
.
15,300
tOther sales-
112,900
-
r
"short
marked
•Sales
exempt"
ported with "other sales."
104,659
——
sales—--
Round-Lot Purchases by Dealers:
Number of shares—u—
off the floor-
——
112,760
4.38
149,780
—.
Other transactions initiated
3.
1,891,900
2,133,350
.
other sales—
Round-Lot Sales by DealersNumber of Shares:
127,110
Short sales-—
Total Texas-^
"
•
Customers'
8;43
268,410
—_.t——i.
—
Total sales—.—
368,700
334,400
537,700
Texas
Coastal Texas——
V
3,360
the floor-
on
Short sales
•'
■,
.
Customers' short sales—
Customers'
238,890
—.
..
—_2—.
fOther sales
^
135250
A,
334,400
East Texas
17,491
•
,
.
29,520
:
Total purchases
354,050
149,500
17,386
-
sales—
.Number of Shares:
265,440
__
—
Other transactions Initiated
138,300
492,800
.
149,500
East Central Texas—
Customers'"total
' \
.Total sales—.
88,100
/
•
105
A
.
1,700
98,800
98,800
t
v-v
■
tOther sales—:■ ■::
"2.
Panhandle Texas—
477,484
•
—1—''.$20,719,694
yt" •Customer^ ofhef sales—
^
Short sales—.
■
1950
■
r
y> <?■:!
329,400
8.700
>
in "which
Totalpurctoases——____.2.:.——_
"
t347,350
1286,950
343,000
274,000
Dollar * value "
..••;.vi (Customers' sales)r
■' ■;
Number of Orders:
•
Customers' short saleS-1—
-7,
•
..:
Transactions nf specialists -in stocks
Ended
Oct. 28,
Week
1944
340,000
—w-w
Members,
Accounts ;of Odd-Lot
tlvey-are registered—
from
Oct. 28,
Oct. 1
October
7
;
——•
Kansas
1.
Previous
Ended
begin.
dations
'•
•
3,085,610 :'! '
of
Account
Odd-Lot
Dealers -and .Specialists: :
Week
4 Weeks
Change
ables
Recommen¬
Except Lor the
(FIGURES IN BARRELS)
Week
.Allow¬
—-—l-:.—
___
Transactions lor
-
■
.
of '• shareslll—-t'-"
Number
-
Odd-LotPurchases by Dealers—
Actual Production
'•State
•P. A. W.
7
t*'
Total sales
CRUDE OIL PRODUCTION
AVERAGE
A.-.- y
-
■; f
f
_
.TotaLJor week
i
——79,340
tOther sales
B. Round-Lot
DAILY
:
■
y Short sales—'
Coast.
not reflect conditions on the East
■
whole, and do
The above figures apply to the country as a
fuel oil.
Total Round-Lot'Sales:
,
;•:
Y.
Stock Exchange and Round-Lot Stock i*.«''£•: w«k Ended:Oct;' 21/-1944:'
Tdtkl
ijMendtoi**iVY'v* ' ;Odd-LattSgles toy Dealei*sv "Y (Customers' purchases)
..tfor W?^
OCT. T4,'- 1944 /" *■'; '
•*.
Niifttber of orderslii.
: ■■■
17,091''
WEEK '.ENDED
of gasoline; 14,123,000 barrels of kerosine;
79,058,000 barrels
THE>'N.
ON
STOCK EXCHANGE
.
New Vork
the
Transactions -for
28,1944; and "had in .storage at the end of that -week
week ended Oct:
•
158,250
re¬
are
tSales to offset customers1 odd-lot orders,
Total sales—
'
North Louisiana-
Coastal
Total
450
73,400
289,750
279,00D
+
450
363,150
358,600
+
200
80,750
78,950
+
289,750
Louisiana-—
350,000
396,000
363,050
78,000
80,295
80,850
—
—
46,000
49,050
205,000
200,250
13,500
13,100
72,500
Short sales—•
Alabama
Illinois
200
9,550
197,450
——
+
-550
12,850
13,300
350
67,400
76,900
25,500
Total Round-Lot
Montana
Colorado
25,000
28,950
300
26,750
50,000
48,200
3,900
49,150
95,000
100,850
1,450
99,000
21,350
1,100
22,100
21,350
8,500
9,300
300
9,300
'7,100
110,000
104,900
3,823,500
3,856,700
885,000
884,200
4,708,500
4,740,900
•
•
—
New Mexico
•
—
—:
104,450
3,836,550
889,400
*P.A.W.
recommendations
slate
and
production of crude oil only, and do
•gas derivatives to be produced.
4,000
4,725,950
Transactions
'4,382,950
allowables,
allowable
as
'
'
as
*
■
I
,
Oct.
calculated
1
on
a
33,175
TO
STILLS;
UNFINISHED
'
.
PRODUCTION
GASOLINE,
;.,,
•
/;;'. ;
Total
■
GAS
OF
GASOLINE;
OIL
STOCKS
DISTILLATE
AND
-
,
OIL, WEEK ENDED OCT.
-—therefore
'■
..
.
'
.
■
,,
•
■'
on
Bureau
a
*
Customers' short sales
of
§Customers' other sales-
basis
Mines
tial
Total sales
tStocks tStocks
at Re-
Runs to Stills
tStocks
fineries
Crude
Finished
of Gas
of Re-
Includ.
andUn-
Oil and
sidual
Xo Re-
Daily ( % Op- Natural finished Distillate
Rate porting Average erated Blended Gasoline Fuel Oil
District—
Fuel
Oil
♦Corabin'd: East Coast,
Louis¬
North
Gulf,
inland
•The term
firms
"
4'5,100
and
their partners,
90.3
2,447
97.2
7,065
36,524
26,811
included
are
83.9
107
82.3
279
2,330
511
JSales marked
21,816
130
members, their
including special partners.
calculating these percentages - the total of members' purchases and sales is
compared with twice the total round-lot Volume on the Exchange for the reason that
the Exchange volume includes only sales.
tRound-lot short
2,518
34,491
includes all regular and associate Exchange
"members"
tin
rules
Texas-
—
—
—
sales
with
which
.are
"other sales."
Louisiana-Arkansas,
and
45,100
' 5 Gasoline
Daily Refining
Poten¬
:
—
Total purchases——
—
added.
The
of
in
broadcast
a
was
statement
Moscow
form
by the
324
47
A
Moa_L
Rocky Mountain—
59
125.5
154
1,321
191
Tass
official
137
85.2
754
91.5
2,761
16,503
7,023
3,991
418
/—
87.2
•824
80.2
375
89.7
1,353
6,896
2,334
1,650
.17.0;
11
84.6
35
61
14
29
141... 5ft.*3,
District No. 2
Ind., HI.,- Ky
103
73,0
377
1,444
387
590
802
98.2
2,093
13,979
11,592
35,687
817
California
.
y 89.9.
basis Oct. 28, 1944_
Total U.S.B. of M.
4,908
87.2
4,658
4,908
87.2
4,662
94.9
14.117
179,058
48,863
64,224
95.0
14,559
78,366
48,360
63,944
'
1944,
.
U.S. Bur. of Mines
4,184
1943-
12,756
69,092
of the .Petroleum Administration for War.
44,713
tFinished,
63,785
65 513 000
barrels; Tinfinished, 13,545,000 barrels.
tStocks at. refineries, at bulk terminals' in
transit tmd in pipe lines.
§Not including 1,486,000 barrels of kerosine, 4,722,000
barrels of gas oil and distillate fuel oil and 8,985,000 barrels of residual fuel' oil
produced during the week ended Oct. 28, 1944, which compares with 1,344,000 barrels,
5,030,000 barrels and 8,889,000 barrels, respectively, in the preceding week and 1,409,000
barrels, 4,726,000 barrels and 7,987,000 barrels, respectively, tin the week ended Oct. 30
1943.
of
kerosine
at
Oct.
28,
1944
amounted
to
against 14,455,000 barrels a week earlier and 11,229,000 barrels
14,323,000
a
year
barrels,
before.
as
United
ference which
news
agency
which
"The
-
Participant in International
States invitation
to the International Aviation
opened in Chicago
on
assertion
that
the
Soviet
Government is taking part in the
Civil Aviation discussions Is not
Con¬
It has been revealed during
Nov. 1 was Tejected by Russia,
the last two days that such coun¬
tries
as
Switzerland, Portugal and
Portugal and Spain have been invited to take
part in the discussions—countries
Spain, described by the Moscow announcement as' countries which
which have maintained u hostile
for years have "maintained an inimical pro-Fascist policy toward
the
Oct.
29, because of the presence of Switzerland^,
Soviet Union."
from
AAt- the request
Note—Stocks
A
on
Total U.5.B. of M.
basis Oct. 30,
a
true.
13.
District No. 4
basis Oct. 21,
Russiai Kof
1
District No. 3——
,
to feel that Russia will
follows;
District No. 1
Kans.,
reason
the
Appalachian-—
Okla.,
States is
unwilling to enter bilateral air
transport arrangements with this
country at some later date.
The
United States has expressed little
desire to fly through Soviet air
space,
but would like landing
rights in Moscow, Russia has in¬
dicated little if. any desire to fly
into the
United
States, it was
exempted from restriction by the Commission's
;
..
: -
exempt" are included with "other sales."
"short
the. United
y.
as
be
;
—*
delibera¬
concerned, officials said, there is
14.14
176,685
—
no
;
ap¬
of the
outcome
:
As far
Odd-Lot Transactions for Account of Specialists-
Production
Capacity
167,075
——
the
tions.
9,610
:
AND
C.
although
discount the effect of the decision
on
155,450
1944
28,
\y,■ ,y.yV;,y,
parently discouraged that Russia
will not be represented, tended to
9.08
40,650
purchases—
Short sales—:
-
might have "something
American sources,
:
.'.'.V.
tOther sa'les_i—
FINISHED
OF
FUEL
Figures in this section include reported totals
plus an estimate of unreported amounts and are
iana
ing." y
2,000
j_.
accepted.
for correspondents Monday morn¬
38,650
_■
Total sales——.
Total sales.
RESIDUAL FUEL
Gulf,
but said it
3.28
31,625
wo.——■—
Short sales-—.—
tOfher sales——.:
comment on
no
The Russian Embassy declined
to comment on the Moscow report,
Other transactionslnitiated off thefloor—
Total'purchases—^
Charles Brugg-
was
and Spain have both,
31,775
4. Total—
;.... •
There
£
1,400
Total sales.
3.
-
Moscow's announcement. Portugal
43,800
lOther sales-
(Figures in Thousands of barrels of 42 Gallons Each)
Texas
7.78
102,860
—
Minister
Include
_
■
RUNS
6,210
1944.
31-day
i-'
AND
80,025
96,650
^—
Short.:
fNot yet available.
CRUDE
—
—.
Other transactionsinitiatedtm thBfloors
Total purchases
-
1
.
the list."
on
Legation said it had
accepted the United States invita¬
tion and the Swiss delegation will
mann.
,2.
Russia's
that
said
regarding
Spain
was
somewhat
understandable,
but
they were "jarred to find Portugal
position
The Swiss
—
fOther sales
-shown above, represent the
of condensate and natural
for week ended 7:00 a.m. Get. .26,
are
of
^
•
Total purchases..
basis and
includes shutdowns and exemptions .'for the entire month.
With the exception of
several fields which were -exempted
entirely and of certain other fields for which
shutdowns were ordered for from 1 to 15 days, the entire state was .ordered shut
down Lor 7 days, no definite dates during the month being -specified; operators only
toeing '"equired to .shut down as best suits their operating* schedules or labor needed
.to -operate leases,
a total equivalent to
7 days shutdown time during the calendar
month..",
•
'
■ ■
.-V.
•
Authorities
t%
*■>>■■■<■>.■
-
of specialists in stocks In which
they are registered—
not include amounts
tOklatooma, Kansas, "Nebraska figures
t'This is fhe met basic
.
•
780,500
—
Portugal
capitals, the Middle and Far
and Switzerland
1.
3,602,450
—11,200
Azores,
Account -of Members:
.8. Round-Lot Transactions for
112,550
7,200
+
The
East.
1,174,730
51,800
Total sales.
Total United States
1,164,220
pean
y
y\V'
/
Total for week
10,510
^
-
Short sales—
Total East of Calif.
California
'
'" t.
fOtlrer sales
7
97,750
22,000
——
—
14, 1944
-Short sales—
/—
■
OCT.
and Stock
(Shares)
Members*
of
Account
Total Round-Lot Sales:
A.
Curb Exchange
the New Tork
on
tor
WEEK ENDED
(Not incl. 111., Ind.,
Kentucky
Michigan.
Wyoming
Stock Sales
Transactions
Eastern—
Ky.)
aviation.
and Spain lie athwart several pro¬
16.10
538,149
-
214,550
50
■'
'
..
jected American routes to Euro¬
200
+
50
—
—
Indiana
+
200
"
—
Florida 1
46,450
49,200
485,369
—
Total sales———
liquidate a long position which
a round lot are reported with
52,780
—_—
tOther sales
less than
"other sales."
480,975
Total purchases
3,650
68,000
Mississippi
—
and sales to
Is
Total-
4.
.
Arkansas
3.29
119,959
79,600
•.y—-
73,300
Louisiana—..
Washington
This
on
on
was
Oct.
disclosed
in
a
United Press dispatch
—-r—-—-——r-®
29,f
~"
sia knew the three European neu¬
which added:
policy toward
the
for many years.
Soviet' Union
Representatives
of tthe Soviet Union will not take
rejection, broadcast
by the Moscow radio and recorded
in
London, came after
Russia
trals, were invited at the time it
part in the conference."
delivered its own acceptance, and
Fifty-iive nations had been in¬
that the shift indicated a "change
originally had designated its
in
The
Soviet
am-
bassadptv in, Washington, Andrei
A.
Gromyko, to head its delega¬
tion.
.
Authorities here said that Rus-
1
policy" which was not yet clear
here.
It
'
was
vited
the
out
pointed
countries named by
that
the
Russia are im¬
portant to American
international
send
to
conference,
world
air
Hotel'in
representatives
to
called to discuss
routes, in the Stevens
Chicago.
Volume 160
2063,.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4332
Total Loads
Revenue
Freight Car Loadings During Week
Ended Osh 28,1944 Increased f 0,195 Oars
!
Loading, of ;
,
of 25.886
cars
2.9%.
or
'
.
*
-
<
383
724
756
2,646
3,333
908
722
750
1,329
1,305
10,720
12,203
11,851
10,524
10,712
3,715
3,943
4,190
4,505
4,003
Atlantic Coast Line
Central of Georgia.—
526
105
140
1,745'
Durham A Southern-
—
-
Florida East Coast
Georgia-——
the
4,010
4,479
4,417
4,059
30,633
18,126
18,867
26,169
11,428
12,474
210
171
203
606
775
184
537
494
341
3,389
3.782
4,677
4,554
1,059
960
1,315
1,913
2,063
groups
week
355
1,451
1,130
371
357
409
9,428
10,420
9,444
11,048
10,515
8,599
8,550
22,297
24,185
25,042
24,439
725
624
574
959
830
138
131
148
1,130
962
126,228
Southern
System-
116,810
126,544
■117,791
119,077
——
Tennessee Central-,-———
Winston-Salem Southbound—.—
Total—
the
above
21,029
16,002
3,217
21,546
22,175
10,941
4,319
4,345
In the Western Districts alone loading
totaled 21,854 cars an in¬
3,707
25,655
28,501
21,448
264
281
Duluth, South Shore & Atlantic-
690
1,108
1,013
'649
Elgin, Joliet & EasternDodge, Des Moines & South-
9,332
8,815
9,867
10,23.9
11,190
356
500
58.9
102
81
22,659
24,134
5,412
but a decrease of 21
:
; L
;
1943.
Ft.
Great Northern—.
loading totaled 45,107 cars an increase of 2,537
Green Bay &
a
"The
21,477
6,935
539
962
2,757
77
53
2,233
2,330
2,941
2,800
July.
35.000
in
offset
the
869
7,273
3,373
3,143
14,129
6,716
5,966
201
Spokane International—;
—
Spokane, Portland & Seattle———
8,013
14,270
114
203
505
517
2,768
2,393
2,7^7
3,366
143,681
133,775
.70,983
!w»eek
2,977
138,902
67,526
Central Western District—
January-—,
of
24,192
25,605
16,140
13,631
3,591
3.280
4,708
5,475
404
501
408
53
80
23,981
21,311
22,669
16,249
3,070
1,493
2,438
869
Chicago, Rock Island & Pacific—^—
13,545
13,654
12,953
14,172
13,261
2,998
2,450
2,682
5,170
5,67C
_w_
3,858,479
Chicago & Eastern Illinois
February,
3,159,492
3,055,725
3,122,942
Colorado & Southern———.
1,485
1,384
1,540
3,481
2,354
March—-
3,135,155
3.073,445
3,174,781
Denver & Rio Grande Western——
5,210
5,210
5,697
7,347
6,529
4,068,625
.3,924,981
4,209,907
Denver & Salt Lake
746
669
882
22
19
'5 weeks of April———
4
weeks
4
weeks
of
of
991
May-:-—
3,446,252
3,363,195
3,311,637
Fort Worth & Denver City—
of
June—
4,343,193
4,003,393
4.139,395
Illinois Terminal—.
3,463.512
3,455,328
3,431,395
Missouri-Illinois-
3,579,800
■3,554,694
3,487,905
Nevada Northern——
4,428.427
4,456,466
4,410,669
North Western Pacific--,—
877,942
906,357
909.250
912,348
901.251
Southern Pacific (Pacific)—
905.419
903,262
890,560
Union Pacific
1,685
2,271
708
'4
weeks
*4
weeks of
.5
weeks of September...
July—
of
August.—.
2,150
105
112
Week of October
i
•
7—„v.
Week
14—
of
October
Vt>ek of October 21——
905.941
Week of October 28
916,446
.
,
36,751,433
36,026,889
table is a summary of the freight carloadings for
the separate railroads and systems for the week ended Oct. 28, 1944.
During, the period 78 roads showed increases when compared with
the corresponding week a year ago.
.
: (NUMBER OF CARS) WEEK
r.';
1
..
Railroads
1
•-'•
'
/.'
District—
Eastern
V
'
1
Total
Connections
1944
"
1.943
1943
1,558
1,412
595
199
6,649
15,035
15,814
1,541
2,133
364
413
Bangor & Aroostook—.,—,—
3,104
1,867
Boston & Maine—
6.819
7,079
1,248
——
Chicago. Indianapolis & Louisville..
Central Vennont;—,
1,294
.
Central Indiana—————_
1,055
1,038-
■
5,160
7,811
385
299
Detroit. Toledo <fo Iron ton———
Detroit & Toledo Shore Line——_
1,909
2,216
11,187
'
'
109
1,354
1,251
.-
344
12,093
17,833
4,276
.»
4,069
210
243
2,043
1.588
9,057
8,023
8,522
12,514
2,466
4,083
5,900
305
2,316
24
55,396
19,204
2,376
15,946
9,686
1,449
960
St. Louis—
7,029
7,450
7,894
2,946
15,388
625
376
2,163
2,037
8,135
8,294
7,450
7,658
5,843
6,292
7,693
7,805
813
935
736
21
29
306
351
464
227
283
'
497
Susquehanna & Western—u.
Pittsburgh & Lake Erie————2—.»
N. Y.,
8,214
5,972
.'.
.
Pittsburg & Shawmut—
.
.
——-
North——
Pittsburgh & West Virginia-—-—Pittsburg, Shawmut &
1,196
,
1,064
1,051
2,994
3,018
402
377
345
; 1,290
1,347
6,397
6,178
12,994
13,646
5,946
5,877
5,379
4,424
4,411
166,561
163,673
226,370
—,
247
298
645
172
5,192
2,212
204
277
2,288
-■—
Wheeling & Lake Erie——.
3,874
1,044
1,272
777
Buffalo Creek & Gauley—
—
808
1,320
44,694
40,782
29,239
5,662
6,127
."5,759
1,864
327
■
733
47,681
—
348
.
307
;
1,428
;
31,373
1,965
6
,
>-•
Missouri Pacific——2——,——
2,725
-8
1,386
695
727
602
333
able-goods group averaged $51.79
190
185
473
411
while
6.730
5,917
7,197
5,356
5,082
18,652
18,678
20,896
19,605
3,867
3,338
—.—
12,159
St. Louis Southwestern————
66
133
116
,
10,669
14,934
14,058
5,639
5,239
6,213
7,098
5,767
7,802
7,218
Wichita Falls & Southern—
84
93
144.
50
70
Weatherford M. W. & N. W.—_
39
19
25
33
42
79,346
77,856
78,274
72,036
70,100
Note—Previous
each
indi¬
cates the activity of the mill based on the time operated.
These
figures are advanced to equal 100%, so that they represent the total
industry.
Orders
67
July
12
August
(Pittsburgh)
Maryland—
__
Total
-
-
232
10
134
51
43
1,289
1,300
1,333
4,196
3,245
2,573
2,945
67,922
66,547
14,726
29,203
27,209
19,595
——
:
1,986
85,097
13,937
21,154
22,132
5,772
8,000
3,939
4,017
3,896
13,056
11,403
194,450
-
187,958
187,452
174,255
173,956
Pocahontas District-
Virginian—
—
30,628
21,789
—*
4,658
—-———
—
——
27,151
28,545
13,542
20,419
22,458
7,968
4,359
4,891
51,929
55,894
•
14,509
.
6,876
2,311
24,032
be¬
Tons
Current Cumulative
544,454
155,170
95
95
94
98,235
586,379
60
147,478
586,103
91
94
September
ing
mills
stocks.
amounted to 91% of
reporting softwood
For
94
94
mills, unfilled orders are equiva¬
94
lent to 36
195,161
160,568
604,299
96
94
current rate, and gross
94
140,338
158.849
585,316
96
155,516
562,744
95
94
128,596
534,174
96
549,114
97
94
123,758
554,352
80
94
97
94
16.
129,481
158,178
525,730
September
23—
30
125,258
161,114
486,818
96
94
482,896
95
94
541,424
96
523,875
96
21__
28
_
_
_
158,946
139,347
•
159,114
154,719
133,028
156,269
499,929
94
146,003
14
_
160,952
.217,096
—
V
157,806
486,882
95
Notes—'Unfilled orders of the
necessarily
equal
the unfilled
(
/94
'94
94
,
stocks are
For the
year-to-date, shipments
of
reporting identical mills ex¬
production by 2.6% ; orders
by 4.6%.
ceeded
Compared to
the average cor¬
responding week of 1935-39, pro¬
duction
of
reporting
mills
was
94
prior week, plus orders received, less production, do
orders at the close.
Compensation for delinquent
reports, ordeis made for or filled from stock, and other Items made necessary adjust¬
ments of unfilled orders.
days' production at the
equivalent to 37 days' production.
94
155,820
131,988
—
156,921
173,065
September
October
Unfilled order files of the report¬
96
9
October
these mills
production.
590,263
:
October
of
orders
less
570,626
2__
not
7.1%
than
new
20%
were
136,936
September
2,647.
23,821
were
157,720
12__i_
October
Chesapeake & Ohio
Norfolk & Western.
National Lumber
Barometer
i—.■—
5..j.
September
the
porting to
Trade
Association,
of 504 mills re¬
152,402
August 26
2,002
84,941
August
.
Manufacturers
lumber shipments
139,743
August 19
1,802
———
Western
166
144
15,623
—
—
182
According to the National Lum¬
ber
157,041
—.
126
Ended October 28, 1944
L—;
___
29_
earnings were 6%
Lumber Movement—Week
week
145,775
July' 22.-
weekly
Percent of Activity
Remaining
Tons
145,317
8-—w-;
19,710
88,453
In
production for
the
week
ended Oct. 28, 1944.
In the same
PRODUCTION, MILL ACTIVITY
Production
Tons
f52,954
15
47'
Reading Co-
'
1
18,988
Union'
Received
1944—Week Ended
706
Pennsylvania System-.—-——
August 1943 and weekly earn¬
ings are 13% higher than last
low
STATISTICAL REPORTS—ORDERS,
7,699
coal
longer than
greater."
industry, and its program includes a statement each week from
member of the orders and production, and also a figure which
'.1,855
bituminous
in
mining is about 9%
average
give herewith latest figures received by us from the National
Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry.
The members of this Association represent 83% of the total
627
—
work-week
anthracite mining, the
hours per week were
3V2%. shorter than in August 1943,
year's figures revised.,
Weekly Statistics of Paperboard Industry
.
hours per week
mining were
£0.8. The
.coal
in anthracite,
and
in
We
1,494
Ligonier Valley—
—
Long Island———
Penn-Reading Seashore Lines—
44.1
while
July
average
bituminous
in
year.
6,274
,
"The
7,029
Texas & Pacific————,———.
earnings in the nondurable-
goods group amounted to $37.16.
255
9.493
574
Cumberland '& Pennsylvania——
85, an increase of 40 cents over
July.
The earnings in the dur¬
2,809
.
326
1,634
:
"'Average weekly earnings in
manufacturing averaged $45.-
all
1,332
—
Texas & New Orleans—:
highest rates reported
in employment.
the
<,
expansions
3,190
6,4'88
6,786
.
2.8%, from 78.5 cents to 80.7
is because New York and
California apparel firms, which
cents,
2,541
9,457
Central R. R. of New Jersey———
CornwaUw——— l.——;
reported a considerable increase
in hourly earnings.
The increase
343
3,266
July
over
3,5.90
10,117
4
cents
August 1943.
The apparel group
was the only major group
which
4,632
8,529
Quanah Acme & Pacific——;
St. Louis-San Francisco—2———
Cambria &. Indiana—
,;
40
of
increase
an
for
$45.85,
363
19,176
Missouri-Kansas-Texas Lines———_
July
earnings
hourly
"Average
3,259
'
5
:
Total
5,240
159
Period
Canton & Youngstown—
July,
332
868
"
Baltimore ■& Ohio
whole aver¬
3.729
i
Unfilled
Akron,
a
as
all manufacturing averaged
4,045
385
,
"
Bessemer & Lake Erie————_—
group
non¬
5,637
———^
Orders
Allegheny District—
r
the
in
hours were 2*4
however, reflect¬
ing expanding employment.
in
2,914
3,537
7,277
2,675'
.*—
City Southern——.—
231,958
——
———
Wabash—u———
7,141
.168,531
Rutland—
753
Missouri & Arkansas———,
53,177
17,616
50,244
9,940
.
107,591
Midland Valley————
36
54,033
———~—
116,758
442
1.931
1,040
Pere Marquette
144,948
4,647
3,472
Hartford-
New York, Chicago
138,932
14,719
2,438
53,414
.
4,215
hours
million greater,
pay
Litchfield & Madison
1,415
1,670
—
5,541
5,986
f
9,857
Central Lines-.
,13
2,284
2,429
2,428
1,461
.
2,341
,
———,
————,
—•
N. Y., N. H. &
19,261
...
7,948
2,703
162
.
1
2,049
—
19,682
6,233
•
6,126
..
-
612
2,857
394
York, Ontario <fc Western——.
New York
New
1,779
2,291
.
.
Lehigh Valley—-—
Montour--
113
14,002
3,960
.
Lehiglftfe Hudson River———
Lehigh & New England
———i
.
10,296
403
Grand Trunk:Western„—.
Monongahela--—
12,279
.12,450
454-
V,'
13,785
„
Maine Centtalr—
55
2,526
6,369
7.025
y.
Detroit & Mackinac———...
67
2,535
7,416
5.689
Delaware, Lackawanna & Western-
Delaware & Hudson,^—
1,935
26
1,044
36
46
-
_
—
iw
1,929
1,978
18,682
'
Southwestern District-
Louisiana & Arkansas
1944
1942
;
444
1,986
Ann Arbor———.—-——
-
599'
total
of
Burlington-Rock Island
Kansas
Received from
430
22,461
458
21,383
—.
151,914
-
-
—
Kansas, Oklahoma & Gulf-.
Total Loads
'■/
280-
0
,
15,379
2,443
International-Great Northern.:
-
Total Revenue
;
.
ENDED OCT. 28
- ' •
■'
Freight Loaded
'
-
,
0
15,981
288
Gulf Coast Lines
AND RECEIVED FROM CONNECTIONS
REVENUE FREIGHT LOADED
..
•
29
32,787
24,098
System—
Western Pacific—
The following
■; .
'
7
32,243
air¬
than
aged 43.0 in August, the same as
690
798
27
33,586
-
37,019,912
Total
-
i
1,222
886
932
——
and
more
the
work-week
durable
518
2,095
;
———
which
by all the durable-goods
"The
2,2ir,
1.281
Toledo, Peoria & Western———
883,727
2,484
1,925
Peoria & Pekin Union———.
898.650
1,553
1,330
1,488
of
weeks
2,026
1,277
weeks
5
1,401
2,742
.4
group
represent
of
hours.
47.4
to
this
industries.
846
Bingham & Garfield
3,531,811-
3,796,477
in
shipbuilding
still
worked
13,705
Chicago & Illinois Midland———
1942
1943
1944
Weeks
8
System—
Chicago, Burlington & Quincy
compared with 1942 except the Southern.
46.8
from
one-quarter
28,244
4,079
&'Santa;°Fe
Atch., Top.
All districts reported increases compared with the corresponding
week in 1943, except the Northwestern and all districts reported in¬
equipment
group more than
increase in the work-
hours
craft
corresponding week in 1943.
46.6.
45,7 to
this
includes
loading amounted to 14,150, cars, a decrease of 430 cars
preceding week, and a decrease of 1,225 cars below the
the
creases
—
—
employ¬
The drop in employment of
Total
Total
occurred
group was the only one of the
major durable-goods groups which
reported
fewer
manufacturing
hours worked per week than in
624
7,401
of
transportation
1,283
13,576
Northern Pacific
an
cars,
and
2,509
Minn., St.'Paul & S. S. M._.
,
This
declines
totaling 38,000 wage earners
reflects the lengthening of
592
—-
Ishpeming——
Minneapolis & St. Louis
—
increase of 444 cars
decrease of 9,821 cars below the
67,490
to
;
•
of
1,500
———
Western—
Lake Superior &
and an increase of 1.196 cars above
preceding week but
Coke
million.
5
spite
the work-week from
corresponding week in 1943.
below
manufacturing
for the durable-
587
Duluth, Missabe & Iron Range—.
when the In¬
Total
ment
10,706
4,318
work¬
goods group as a whole amounted
to
358 million;
an
increase of
3,379
3,637
in July
served.
15,220
3,592
3,083
Chicago Great Western——
of October 28
amounted
22,612
20,641
24,252
the corresponding .week in 1943.
loading
than
goods
-
longer
a
hours per week
in
Chicago, St. Paul, Minn. & Omaha—
above the preceding week
Ore
reported
about
Chicago & North Western
durable
the
of
dependence Day holiday was ob¬
Northwestern District—
■
Chicago, Milw., St. P. & Pac._——
above the preceding week,
Forest products
1
404
444
—
_____
increase of 501 cars above the
below the corresponding week in
.
"Each
25,174
Piedmont Northern——
Richmond, Fred. & Potomac——
Seaboard Air Line..
added:
Perkins
Miss
3,511
2,502
above the preceding week and an
corresponding week in 1943.
S'z hour longer," she said.
about
267
—,u~
Oct.
able-goods group was only slightly
below that in Aug.
1943 while
that in the non-durable group was
Norfolk Southern—
,
cars
703
Savannah——.
Mississippi Central-,
— ———
Nashville, Chattanooga & St. L—
corresponding week in 1943.
In the Western Districts
alone, grain and grain products loading for the week of October 28,
totaled 34,873 cars, an increase of 339 cars above the preceding week
but a decrease of 4,248 cars below the corresponding week in 1943.
Livestock loading amounted to 27,479 cars, an increase of 918
cars
3,382
649
20,255
the
of 397
2,469
367
'29,516
Macon, Dublin &
.
cars
1,352
Labor
on
"The work-week in the dur¬
26.
103
506
of
Secretary
year,
Frances Perkins reported
1,564
86
5,010
,
crease
1,236
■
31,683
—.
Louisville & Nashville
corresponding week in 1943.
■
■
i
Grain and grain products loading totaled 55,721 cars, a decrease
of 997 cars below the preceding week and a decrease of 2,460 cars
of live stock for the week
390
26,184
Illinois Central System-,
Coal loading amounted to 177,146 cars, an increase of 5,325 cars
and an increase of 30,954 cars above the
cars
636
43
522
Gulf, Mobile & Ohio
above the preceding week,
below
slightly longer than in August of
last
230
1,130
1,164.
—
Florida—L
Georgia &
1,305
2,085
284
966
1,248
.
58
work-week in all
average
1,753
.
42
979
.
Gainesville Midland
The
manufacturing in August was 45.1,
3,021
413
1,880
348
159
Clinchfield—
^
393
1,693
368
407
Charleston & Western Carolinai-
Columbus & Greenville_—
above the corresponding week
/
And Earnings In Aug.
: 344
806
preceding week, and an increase of 10,115 cars
in 1943.
;
v. •
Loading of merchandise less than carload lot freight totaled 110,003 cars, an increase of 1.971 cars above the preceding week, and an
increase of 3,459 cars above the corresponding-week in 1943.
above
cars
j
339
Atlanta, Birmingham & Coast-
,
726
350
Alabama, .Tennessee & Northern-
loading totaled 419,350 cars, an increase of
Miscellaneous freight
1943
3944
3942
1943
Atl. & W. P.—W. R. R. of Ala-
Loading of revenue freight for the week of October 28, increased
10,505 cars, or 1.2% above the preceding week.
'•
Connections
Freight Loaded
1944
Factory Workers lours
Received from
Total Revenue,
.
,
;-i
•
324
3.7%, and an increase above the same week in 1942
cars, or
-H.-
'-7t
Southern District-
totaled 916,446 cars, the Association of American Railroadsannounced
Nov 2.
This was an increase above the corresponding week of 1943
qf 32,719
Railroads
.
.
r
freight'for the week ended Oct. 28,, 1944
revenue
"
.
24.6%
greater;
18.3%
greater;
11.0%
preater.
shipments
and
orders
were
were
Percy H: Johnston, Chairman of
Chemical Bank & Trust Co.
the
of New York,
Nov.
on
value of $50 each, to $500,000,
consisting of 10,000 shares of the
par
value of $50 each.
par
Board
Advisory
the
the
of
Broadway office of the bank.
JVIr. Dribben is President and di320
& Com¬
rector of the Cone Export
mission
and
Vice-President
Co.,
George t. Lehmann,
Vice-President
of
the
Liberty
of Buffalo, N. Y., died on
2; he was 71 years of age.
Bank
Nov.
Lehmann,
Mr.
former newspa¬
a
of Proximity Manufac¬ per man was an executive of the
Buffalo Chamber of Commerce.
Co., Inc., and Revolution
In 1927 Mr. Lehmann joined the
Cotton Mills, Inc., and a director
of Appleton Co., Ashville Cotton Liberty Bank as head of its busi¬
ness
service
and extension de¬
Mills, Inc., Cliffside Mills, Eno
and in 1932 he was
Cotton Mills, Florence Mills, Min- partment,
elected. Assistant Vice-President.
neola
Manufacturing
Co.
and
Chamber
the
with
While
of
of
Board
the
New
of
Co.
Stevens
trust
Guaranty Trust
of
York, announced on
as
the
of
director
a
Mr. Stevens was
company.
As
Association
ago
organized
and
of
member
American
an
Post-War
a
Credit
time<$—
Business ville
some
Small
Commission,
these
and'
througnout
the
meet
of
the
credit
post-war
ber
Business
demands
Mr. Muir,
era.
the
giving
organized
United States to
Credit
freely
a mem¬
Post-War
ABA
the
of
Small
is
Commission,
his time and
furthering this or¬
of
efforts toward
banks will be in
and
the
best
Secretary of the
ant
Assist¬
Brown,
Barton
Connecticut
Savings' Bank
position to render
possible
post-war
Charles
A
in
service
the
era.
"The
of
tor
Courier-Journal/'
Louisville,
Sept.
reporting
the action taken in that city,
of
23
Oct.
on
said:
"All members of ...the
Louisville
Clearing House are participating
in the pool, which will be known
Credit
Group for the
credit "
25,
in
1380;
page
matter
thereto
reference
Sept. 28 issue,
further item in the
given in our Oct. 19
our
a
was
issue, page 1700.
That
may
thq banks «of
associated with the textile
founded by
which had been
firm
elected to its
Presidency in November, 1929. In
June, 1940, he was appointed by
E. R. Stettinius, Jr., as head of the
his father, and
was
Section
Textile
of
National
the
Commission. At
Defense Advisory
the time that he entered the Army
he
was
Insurance Co.,
Life
Mutual
The
of
trustee
a
director of
a
the Federal Reserve Bank of New
Telephone
Co., General Foods Corp., and a
the
York,
companies.
in
career
•/<
1874 with the
which
Banking
Co.
When the latter merged with
the Union National Bank of New¬
State Trust Co. of Newark,
State
the
became
later:
ark, Mr. Scheerer was Vice-Presi¬
dent, and in 1902 became its Pres¬
ident.
in
1921, the Fidelity
merged with the Union
When,
Trust Co.
Mr. Scheerer declined
Presidency of the combined
National,
the
arid
institution
of
Chairman
held
of
Board
.Trust
Union
Co.,
the
Mr.
until
position
that
.
he retired in 1932.
of New
2, the ap¬
The
First
National
Bank of
pointment of the following ofPhiladelphia, Pa,,
.Steers: Stanley H. Brown, Assist¬ Philadelphia,
announced on Oct. 31 that Stephen
ant Treasurer; James R. King, Jr.,
E. Sayer has been appointed an
Assistant Secretary, and Frank L.
Assistant Cashier,
Mr. Sayer had
Jones, Assistant Credit Manager.
been an executive of the House¬
Mr. Brown was formerly Assist¬
hold Finance Corp.
ant Credit Manager at the Fifth
Trust
Guaranty
Co.
York announced, Nov.
..
Avenue
Wheeling Dollar Savings
& Trust Co. of Wheeling, W. Va.,
George Tompkins Connett, ior-r
and trustee of the
President
North River
of
George E. Carenbauer, Vice-Pres¬
the death on Oct. 20
announces
Savings Bank of New
ident and Cashier of the institu¬
City, died on Oct. 27 at the
tion.
1.
\
I ..
age
of 66 years.
Mr. Connett
/started his banking career with
The Cleveland "Plain Dealer"
the Greenwich Savings Bank of
on Oct. 31 reports the appointment
3NTew York in 1895, and 12 years
■of William H. Waggoner as Presi¬
later joined the North River Sav¬
York
Secretary.
In
Secretary and
Treasurer of that bank, later being
made a trustee; he was elected
ings
as
Assistant
he
became
in
President
and
1933
continued
in that position until he retired in
1940.
,
'
'
Andrew S. Roscoe, President of
South Brooklyn Savings and
the
Association, Brooklyn, N. Y.,
Loan
•announced
of
directors
Oct.
on
the
25
the
that
institution
have
dent of the Second
of Ravenna,
succeeds
to
National Bank
Ohio. Mr. Waggoner
the position vacated
by Albert D. Reese, who
had been
President for seven years
and who
to accept a post
resigned
as
re-:
can
appoint¬
Waggoner was Cashier
of the bank, a position which has
been delegated to Paul E: Sander.
Mr.
ment
having been
W. Gordon Dunsmore as Assistant
Secretary and Assistant Treasurer,
respectively;;
S. J.
Jarvis
Richard
tional
died
the
Helms,
of
Oct. 22.
in
Orleans
Na¬
honored
1939,
Mr.
Assistant Secretary of
Manufacturers
Trust
in
Co.
Manhattan for 13 years, according
to advices from Rockville Center
to the
Brooklyn "Daily Eagle."
New
Department
on
Nov.
3
York
State
announced
of
an
Banking
approval
increase
in
the
capital of the Union Trust Co. of
Jamestown, N. Y., from $400,000,
consisting of 8,000 • shares of. the
Stock
on
entation of
York
com¬
each
member from
one
of these
credit
the
On
City.
mittee is
Citizens Fidelity
banks:
First National
Bank & Trust Co.,
Liberty National Bank &
Trust Co., Louisville Trust Co.,
and Lincoln Bank & Trust Co.
Bank,
"The limit line of credit will be
The proportion of the
total that can be assumed by each
$2,190,000.
the
under
bank
agreement is
of
the
Exchange,
<•
New
was
Oct. 18 with the pres¬
a
scroll by the mem¬
member in the Exchange's 69
year history.
The New Orleans
"Times
Picayune" in' reporting
ary
The presentation was made by
N.
on
at
Ogden, * exchange Presi¬
a
membership
meeting
Fidelity,
25/2l9ths;
Louisville
Trust, 25/219ths; Kentucky Trust,
20/219ths;
Lincoln,
Bank,
15/219ths;
S e c u r i t y
Bank,
National,
4/219ths;
3/219ths,
Bank,
Trust,
Yards
Stock
and
U.
S.
,
"Any bank located in the Louis¬
area
may become an
associate member of the Group,
but
such
associate
membership
ville. trade
such
applicable only to such
originated by any
bank and shall not entitle
any
such
shall
be
loan
loans
or
member to
generally
in
the
by the Group, the
associate
participation
made
loans
constitution says."
The Clearing
House Association
statement said:
joined the ex¬
change in 1883, eight years after
its
had
Poupart
establishment.
been
an
Before
that he
employee of an ex¬
change member since 1876.
A.
manual,
Chairman of
McDonnell,
the; Commission,
Vice-
is
who
President of the Mercantile-Com¬
&
Bank
Trust
St.
Co.,
"This
special
of
with
the
checking
ac¬
which
we
deals
booklet
subject
counts
be of service to those
institutions contemplating the in¬
help returning war veterans to
their places satisfactorily
in the life of their communities,
the
American Bankers Asso¬
new
ciation Committee
Service for
on
in
manner
a
hope v/iil
stallation
such
of
-
banking
a
service."
of
operating pro¬
entirely to a
the "sell a check¬
book plan" of
special checking ac¬
'/
manual of
The
devoted
is
cedure
discussion
the bank sells
in which
counts
10, 15
checkbook containing
checks
the
to
*
It
customer.
a
20
or
dis¬
rules, regulations and re¬
should govern
strictions which
cusses
such accounts and differences be¬
tween
special
regular
and
ac¬
counts, as well as methods for de¬
termining
fees
that
charges
and
should be made for the checks by
.
its
tended
undertook
an
the
outlined
sessions,
problems of discharged veterans,
and the plans being made to meet
The
them.
ABA
.
.
of
program
part of the
Small
Postwar
the
the
ABA to
announcement
the
of
consensus
GI
the
of Rights
Bill
law
repre¬
the service
perform for
veterans.
It was the opinion of
the committee that the responsi¬
ing department instructions.
Copies of the manual, "Special
Checking
Accounts — Operating
Procedure," may be obtained from
which
banks
bilities
may
the
of
fall
banks
into
categories* one having to do
with the reemployment by banks
of
their own
people returning
from the war and employment
other
another
phase
the services
veterans,,
to
having
banks
with
do
all veterans,
render to
can
of
including loans, business counsel,
guardianship
and
trust
service,
etc., and a third, the approach to
general community veteran serv¬
ice
through
cooperation
with
agencies and organizations set up
for that purpose.
"The committee recognized
that
the service which banks can ren¬
veterans
to
beyond
goes
Association
another
offers
and
law
oppor¬
tunity to banks to render a war
which would redound to
their credit.
It felt that bankers
service
that these credit groups make bad
guidance.
loans
of
are
rower,
the
benefit to the bor¬
no
bank
the
or
com¬
is proposed that
every competent man,
firm ana
corporation needing bank credit
for a
constructive purpose will
munity,
but
it
get it.
"Bankers
the credit
are
sufficient
of
needs
.
.
believe that
.
of the banks
resources
to
the
meet
business,
credit
that
and
as
the
Group,
credit..
Louisville
the
extension
when
Credit
Bank
needed,
of
will
be
ville
trade
sitionc to
area
are
not
the
full
in
po¬
credit
requirements
of their
ties, they
apply to the Louis¬
may
communi¬
to veterans,
of assistance
counsel
and
The committee recom¬
mended that bankers' committees
for
to
service
in
organized
war
veterans
the various
be
States
and also where deemed necessary
in
local
the
communities.
Its
envisions . bankers' co¬
operation with government agen¬
cies and veterans'
organizations
program
veteran'',
community
of
needs
the
serving
both at the State and
levels, and that where local grouos
for the aid of veterans are lack¬
ing, the bankers ' organize necessarv committees.
"The program
as
it is
form
of the committee
worked out will be com¬
to
municated
.
meet
be
can
such
"If the banks within the Louis¬
at
40th
East
22
FOB in Armistice
St.,
of
the
bulletins
banks in the
and 1 manuals
regulations,
the laws and
acauaint banks with
procedures
being
In his
proclamation issued Oct.
various
sections
of
the
in
called
Roosevelt
President
27
the people of the nation toobserve Armistice Day, Nov. llr
upon
rededicating. themselves to
of waging this second
World War to a victorious conclu¬
"by
the
tasks
enduring
proclamation, the
sion and establishing an
peace."
his
President said:
In
the
Whereas
been broken,
has agair#
and our Al¬
peace
and
we
lies, uniting to reestablish peace
under liberty, have deployed our
forces
by land,
and air, and
sea
confident of victory; and
are
under God we are re¬
Whereas
the
victories
solved
that
second
World War shall
of this
produce
merely an armistice but also
not
capable of establish¬
institutions
ing
a
peace
which shall endure;
and
•
Concurrent,
Senate
Whereas
Resolution 18 of the 69th Congress,
passed June 4, 1926
(44 Stat.,
1932), requests the President of,
the United States to issue a proc¬
lamation
calling for the
observe
Day;
of Nov. 11 as Armistice
ance
Now, therefore, I, Franklin ?TX
Roosevelt, President of the United
hereby call
States of America, do
the United
11, 1944,
rededicating
themselves to the tasks of waging
the
upon
people
to
observe
States
as
of
Nov.
Armistice Day by
this
second
torious
a vic¬
establish¬
World War to
conclusion
and
ing an enduring peace; and J di¬
rect that the flag of the United
States
be
displayed
ernment buildings on
which will interpret
emoloyed
Bay
Proclamation
the
provisions of the GI Bill of Rights
hess" and v financial
.such
the
of
New York, N. Y.
three
legitimate use. I It is not proposed
because
Management Commis¬
American
Bankers
Bank
sion
particularly in .the realm of busi-
loans,
man¬
complete
sent only one phase of
develop facilities for sup¬
plying .adequate credit for every
reckless
includes
ual
the
further says:
"It was the
The
each individual bank.
committee
The
exploration of veteran problems,
der
of
these
Groups are
formation throughout
"Many
in
facilitated.
Oct. 18.
Mr.
procedure for han¬
operating
dling such accounts.
In
introducing
the
resume
committee that loan provisions of
80/219ths;
First National, 45/219ths; Liberty
"Citizens
through bank credit groups, such
this continued:
Fred
as
follows:
bership naming him first honor¬
dent,
The
member
active
Vice-
Oceanside,' L. I.,
Prior" fo, joining
Oceanside Bank
was
,
Oceanside
the
Bank
on
Helms
the
of
Foupart H»red
Sidney J. Poupart, for 61 years
an
President
$100,000,000 credit
a
pool formed by the banks of New
or
appointed Charles 3. Francois and
of
directions
for the setting up of the special
and in this it had the assistance
checking
account plan
in the
of
representatives, of
veterans'
bank, including reproduction of
organizations, representatives of
the forms to be used, as well as
the
U.
S.
Army, the Selective
bookkeeping and bank procedure
Service,
the
U.
S.
Manpower
Commission and the U. S. Vet¬ necessary to its successful opera¬
tion, including paying and receiv¬
erans
Administration
who
at¬
operative, the first
Business Credit Commission of
new
prepared and is making available
to Association members a manual
ganization the second Group of its
Ordnance District.
his
thei
has"
kind to become
the country, and are a
to
of
to
or¬
negotiator of war contracts for the
War Department in the Cleveland
Previous
Commission
American Bankers Association
tions."
,
1910
Louisville
the
makes
2/219ths.
Office.
The
mer
action
became
instead
the
Fidelity
Scheerer
manufacturing
textile
of
number
York
New
banking
re¬
the Bank
Louis, Mo., said:
War Veterans,/ at its first meet¬
Quartermaster General at Wash¬ joining the. Connecticut Savings,
he was associated with the firm as
the
Louisville Bank Credit ing which closed at Chicago on
ington.
Mr. Stevens resigned as
of Frederick M. Ward Co., real¬ Group.
The Group is set up for a Oct. 28, discussed plans to aid
President of J. P. Stevens Co.,
tors.
Mr. Brown graduated from five-year period, but it can be banks in performing this latest
inc., and all other business con¬
Yale with a civil engineer's de¬
The meeting was
ended any time by a vote of six of war service.
nections, when he entered mili-,
members.
Any
premature keynoted by W. Randolph Bur¬
tary service in January, 1942, fol¬ gree, and was a member of the its
American Society of Civil Engi¬ "termination of the
Group 'shall gess, President of the Association,
lowing completion on the day beneers,
who
said:
"These
not affect any loans or commit¬
boys coming
vfore Pearl Harbor of a special
back will come to our communi¬
ments theretofore made,' the con¬
course at the Command and Gen¬
William Scheerer, former Chair¬
ties and to our banks.
The job
stitution says.
eral Staff School in Fort Leaven¬
man of the Board
of the Fidelity
worth. After serving in the Army
"The first meeting of the credit we are facing is how to assimilate
Union Trust Co. of Newark, N. J.,
as
a
Second Lieutenant of Field
committee of the Group is set for them into our civilian life with
died on Oct. £7; he was 89 years
Artillery in 1918, he was gradu¬
Wednesday, Nov. 1.
This early the greatest happiness to them
old.
Mr.
Scheerer
began
his
and success to our social institu¬
ated from Yale in 1921.
He then
became
that subject,
on
Management
the nation
be enabled to do all they
being
inquiries
of
number
increasing
the
answer
merce
War Veteran Service
"no mini¬
balance" checking accounts,
to
W.
ABA Committee to Plan
of
need
the
to
eration of "special" or
mum
ceived
and
appeared
•
Donald McWain. Financial Edi¬
Bank
$100,000,600 bank credit group
organized in New York on
was
Responding
banks for information on the op¬
and
needed
credit groups are being
falo
of New Haven,
Conn;, died on Nov. 2. Mr. Brown
sence by the company to continue
was connected with the real estgte
tils duties as Deputy Director for
Before
Purchases in the Office of the department of the bank.
immediately granted leave of ab¬
Co.
promoting the movement.
has been made known in these columns, the American Bankers
ganization, not only in Louisville,
but elsewhere, in order that the
Lehmann was in¬
Buf¬
Business Federation in 1926,
served as its first Secretary,
the election of Col. Robert
Nov. 1
T.
Chairman
Stetson,
Louisville Trust
of the
strumental in organizing the
Commerce, Mr.
W.
ianual for Banks
ing the post-war period was announced on Oct. 25 by Earl R. Muir,
Assistant
turing
Eugene
finance small and medium-sized business in the Louisville area dur¬
Bankers Association commission
director
Salisbury Cotton Mills, Inc.
Checking Accounts;
Group
Organization of g $21,900,000 credit pool in Louisville, Ky.t to
President
election of Saul F. Dribben
2 the
to
announced
Louisville Banks Form Credit
Companies
Items About Banks, Trust
Thursday, November 9, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
2064
and
keep
all Gov¬
that day.
on
them generally up to
this sub¬
date with information on
country ject."
@FedFRASER