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BUS. ADM.
library
°Cri 91345
Final Edition
a
.
Volume
162
v:
ESTABLISHED 0 VER TOO
Number 4430
New
M
>
v
* *
'W
Vi/
.
*'•
*•*"
-
'
'
In 2
'«
i."v.
Sections-Section 1
York, N. Y.y Thursday, October 18, 1945
Price 60 Cents
Copf
a
Control and Treasury's Borrowing
Policy
J.;;v-7^
-r
,.V'0S.
i*
By BENJAMIN M. ANDERSON, Ph.D.
Professor of Economics, University of California
''00t0
0
-</
'♦
By IVAN WRIGHT
T
:
.
X
,
Professor of Economics, Brooklyn College
Dr. Anderson Warns That the
Treasury's Low Interest Rate and Borrowing Policy Is Leading to Unavoid¬
able and Ruinous Inflation.
Likens the Present U. S.
Policy to That of France in First World War, Which
Led to Drastic Inflation and
Depreciation of Franc. ' Says That Because the National Debt Is
Largely Un¬
funded and Held Excessively by
Banks, and Because Interest Rates Are Artificially Kept Low, a
"Patholog¬
ical" Credit Condition Is Fostered.
Recommends That Government Bonds Be Refunded
k
I
f
Contending That the Sterling Area Has Acquired a Statutory Definition
and Now Is a Tradition in International
Trade, Dr. Wright Maintaius i
That It Has a Flexibility Which Gold Reserves Do Not
Have, and That j
It Provided the Mechanism for
Sterling Exchange Control. Says. That I
at Higher Interest
a War Between the Dollar
and the Sterling Area Would Lead to
Depres- i
Rates, That Drastic Federal Economies Be Adopted, That Price Controls Be
Removed, and That AH Infla¬ sion and Monetary Depreciation and' Holds Solution of the
Sterling
tionary Money and Credit Policies Cease.
.
00'-\
Problem Is
(The paper given below was prepared by Dr. B. M. Anderson as
of May 10, 1945, but he
thought it unwise to release, it to the; press before this.
Dr. Anderson believes the figures
<tt>today would be even more unfavorable than
&
those used
on
May TO.
He. also states that the
close of the warvwvalidates
ommendations.t
that with
■
Federal
the
the
drop in
chance
rec-
we
embark ]upon
may
brief, England
owes
the
rest
/
of
the
commercial
world
Tax Revision—
have
may, now
0
0:
"our.
last
-
By Dr. JOSEPH J. KLEIN*
-
chased
policy which the Treasury
Ling.
It is essential that there be the frankvilscussiori regarding the matter while there is
df the domes¬
tic
a
;,
Still
time
toy,reverse
and to avoid
? We
tion
can
if
a
avoid
infla¬
ruinous
a
act promptly, but
we
not,
Reserve
over.^;';!'-''!'.rV''^;;
with which the Treas¬
extravagances, both for gov¬
ernmental financing of exports to
foreign countries and for unbear¬
the
from
the .banks
the
and
Southwestern Bell.
governmental
France
has been- borrowing money
fantastically low rates of in¬
terest
of
sense
war
ury
at
and
•
World
War
I
dangerous
the
and
position is
may best be revealed by a com¬
parison of our war financing in
World War II with that of France
World
in
War
(Continued
Telephone Co.
our
I.-
It
will
on page
be
consider
i-
budgetary
re-
1837)
-
Klein,
ficed
;
th
measure
the
time
tax
e
we
shall
have
to
bear.
And
in
is
a
it
was
member of the
Bar; senior partner.
Hinds & Finke, Certified
Council, American In¬
;r||fr COMMON
.Information
STOCK :
on
result
'
Successors
.
,
IIIRSCIf.
LILIENTHAL
&
CO.
•
Members New York Stock Exchange
and other Exchanges
J
London
-
Geneva
Rep.
'' V. !
Chicago
■
.
"
f
Established
.
INVESTMENT
/
25 Broad St., New York 4, N. Y.
HAnover X'-OGOO
"
Teletype NT 1-210
64 Wall
"Federal
Joseph J. Klein
Income
on
lege.
author of
Taxation" and
accounting;
Professor
of
Troy
'
Albany
Pittsburgh;
Cleveland
Baltimore
(Continued
Woonsocket
CORPORATE
BOND
"
Prospectus
HUGH
W.
long
Wri«ht
;; time to regain
the prewar level of exports.
It is claimed in England that she;
Oi# Ivan
even
mtfst
gain
level
of
these
at
Aireon
power
BULL, HOLDEN & C9
Kobbe, Gearhart & Go.
MEMBERS NEW YORK STOCK EXCHANGE
INCORPORATED
Security Dealers Ass'n
45 Nassau Street
COMPANY
;'V
REctor
,
if
she
is
and the problem of
paying sterling debts already due.;
(Continued on page 1844)
;
,
^
Index
of
Regular
Features
on
page 1830)
Municipal
New York 5
30 Broad St.
LOS ANGELES (4
Tel. DIgby 4-7800
\
Bond Department
THE
Solar Aircraft
Prospectus
OF
THE.CITY OF
New England
Public Service Co.
PREFERREDS
•'
Company
on
request
I
f
HART SMITH & CO.
1
New
Exchange
52
New York 5, N. Y.
Telephone:
REctor
York
WILLIAM
Bell
2-8600
"
Bell
.jk{.
Preferred
Members New York Stock
T
BANK
NEW YORK
Tele. NY 1-733
Alloys, Inc.
Reynolds, & Co. !
120 Broadway,
CHASE
NATIONAL
New York 4
Preferred
2-3600 .'
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015
"
Teletype NY 1-635
;
Dealers
ST., N. Y. 5
ira haupt & co.
Members
Members
Security
>
Assn.
HAnover
Teletype NY
2-0980
1-395
111
of Principal
Broadway
New
REctor
2-3100
Exchanges
10 Post Office
York 6
Boston
'
Sq.
9
Hancock 37S0
Tele. NY 1-1920
New York
Montreal
on
1864.
*4
Manufacturing
Conv.
to
through the sacrifice of her |-
•
Members New York Stock
Exchange
Members New York Curb Exchange
•
Tel.
50%
investments
Corporation
90c
TELEPHONE-RECTOR 2-6300
least
The reason for the 'need
of increase in exports
is, of course,;
the loss
of her foreign buying
Common & Preferred
SECONDARY
MARKETS
5.n.y.
her preWar i
but increase
Brokerage
634 SO. SPRING ST.
Acme Aluminum
%
Y.
and
5
'
Members N.
only
survive.
Hardy & Co.
Requesr
on
LONG
WALL STREET
NEW YORK
FINANCE
BROKERS
not
exports,
for Banks, Brokers
INCORPORATED
48
at
a
Associated
and Dealers
' Syracuse
Wilkes Barre
x
14 wall st.. new york
Bond
Buffalo
Dallas
'Springfield
"
take
-
'
PHILADELPHIA
v
the
Taxation, City Col¬
vtK';;
RAILROAD SERIES
Street, New York 5
BOSTON
of
and
1927
SECURITIES
'f
war:
present, it will
;
R. H. Johnson & Co.
to
War,
:
page
Newspapers; Inc.;
books
Dr.
considering the budget, one of the
most significant items is the na-
Hirsch & Co.
of
:'have declined;
T sharply as
a|
ated
"
request.
of;
.".purchases.;:
y H e r
exports;
Accountants; former tax
editor, New York Globe & Associ¬
NEW YORK STOCKS, INC.
! Alaska Airlines
Prospectus on request, >
sHV'
result
v
2U% Debs., Oct. 1, 1985
0: Price 101.83 & accrued interest
most
her foreign jn-
stitute of
-
bur¬
den which
billion next
1946, - although
member of
of.
p e ac e
30,
(officially esti¬
$273
during
! vestments as a
interest
Accountants; past Presi¬
dent, New York State Society of
Certified
Public / Accountants;
u r e s
n e'
the
York
Public
e x
d i t
>e n
reach
to
*Dr. Klein
New
Federal
mi
United States in World War II
How
mated
ust.r deter-;
0*00'
of the debt
ment
June
phase because
expenditures
.'00.!
in
to
bpith
^or the current fiscal year) and
policy with respect to manage¬
fiscal
It is necessary
false
a
at home.
ease
has
omnipotence which, is encourag¬
ing the'demand for great post¬
erated
fore the
The
banks
debt;:
d
land has sacri- f
thereon (estimated at $4.5 billion
tax
aspects
of that legacy.
able
is
d
n
gen¬
financia
I
believe,! unless
we
do
act
promptly., !
V:v
t The ' public
debt ; has already
grown to
a
gigantic figure and
promises to be much bigger be¬
war
budgetary
economic
Federal
fional
phases of the
the ^policy^
ruinous inflation.
an
pur-1
Vdition;; E ri g-;
000
>
.
^
s
the war. In ad- !
~
;of the unsound
to
dol-r
lars'. worth of?
sterling for
{... Authority Analyzes Recent, Pending, and
Prospective Tax Law Changes.
rates of interest, and to get control
of the in-0.
Considers Them Mere "Bites" and
"Tinkering" With the Existing Statute
fldtionary flood, of money and currency with*
Which Is Termed Inadequate,
ont the use of pretty
Infinitely Complicated, Arbitrary, and In¬
violent measures.^ ^
consistent.
Advocates Expert Commission to Draft Overall
.Editor.)
V00000: 0^0.100000^
Long-Term
Reform/ Sound Budget andDebt
Management Regarded Indispensable.
: .v,The situation with
respect to; our public
> V Very naturally there is no end to
discussions of: World1 War ITs
debt, our banking system and our currency legacy to civilizationi 'This
brief - summary is
^estricjted to a discus¬
has grown extremely dangerous as a result sion of some
lvwyvl
billon
< go o d
Its; Scope and Pattern
i
f
In;
14
some
20
'-services
a
I
'
,
sterling problem in simple terms,
'
~ >
that,
fund the debt at reasonable
to
It is not easy to state the
;
to Britain.
as
expenditures the
of another variety and
spree
consequently,
of his
none
v
Serious to the U. S.
in¬
*
contrary/ he thinks 00
war
Government;
spending
rtal
On
:
as
Toronto
v
Direct
Private Wire to
Boston
*
THE
COMMERCIAL & FINANCIAL
Thursday, October 18, 1945
CHRONICLE
1818
Market. in:
TmJina
——
We Maintain Active
U.S. Sugar
\
Corp.
Lanova
American g
Markets in U. S. FUNDS for
Common & Preferred
BROWN COMPANY,
BULOLO GOLD
DREDGING
STEEP
Kaiser -Frazer Corp.
'
& CO., INC.
4'/j% Conv. Pfd.
KERR ADDISON MINES
Dunningcolor
P. R. MALLORY
Colortype ggg
ROCK IRON MINES
Bought—Sold—Quoted
NORANDA MINES,
Bought
Sold
—
—
Quoted
Canadian Secnrities Dep't.
fit. V'
KING & KING
:•
Nat'l
>
Steiner,Rouse&Co.
BROADWAY, NEW YORK
120
Tel.
REctor
Request
on
•
York Stock Exchange
New York Curb Exchange
Members New York Stock Exchange
2-7815
25 Broad
1-423
TELETYPE NY
BEX.X.
g>
Members
New
Exchange and Other Principal Exchanges
115 BROADWAY
NEW YORK 6, N. Y. 'i
Telephone BArclay 7-0100
Teletype NY 1-672
HA 2-2772
PI., N.Y. 5
Analysis
PONNELL & CO.
Members N. Y. Stock
York Security Dealers Ass n
Ass'n of Securities Dealers, Inc.
New
40 Exchange
■■g;p.
-
,
Goodbody & Co.
Established 1920
Members
-
St., New York 4, N. Y.
NY 1-1557
HAnover 2-0700
•,
New Orleans, La.-Birmingham, Ala
llllllllPhelThreat 1 of Inflation |i|"|||
Copeland Refrig.
Fort Dodge, Des Moines
& Southern
#
<
H
Common
Mr. Riddle Lists
Kendall Co.
Kingan & Co.
7-Up of Texas
Stock Exchange
Members Baltimore
120
Broadway, N. Y. 5
WOrth 2-4230
V*
1-1227
Teletype N. Y.
Bell
as
National G & E
the Potent Inflationary Forces (1) the Large
Billings & Spencer
Standard Forging
R: Hoe Common
Trailmobile
Increases and
This Discourages New Enterprise and Additional Production, While the Administra¬
tion's Spending Policy Is Similar to That in Europe After World War I, Which Led to
Drastic Inflation.
Concludes That Despite Restraining Influences of Price Controls
and Increased Production, There'll Be No Return to Prewar Prices.
and There'll Be
III)
Goods Shortage. Says Wages Have Run Ahead of Price
a
W/L.Maxson
'>4j:wv
Y
tiv.1-\dji-»''• ■ '-11. ' Vv•''>■ i
Edward A. Purcell & Co.
.
Members New York Stock
Commodity price changes may be Small and spotty during the next few months while
demobilization and reconversion are under way.It is generally assumed that the volume
of business.activity and the gross national product will continue to decline until toward
the end of this year, and that after leveling off for a month or so they will. turn upward
During
1 , ' •—-gg'. ——
7s,1952-1957
::
Savoy Plaza
WHitehall 4-8120
period of
rapid con¬
Exchange
N. Y. Curb
5s, 1997
Vanderhoef & Robinson
decline
gg
1-1548
Teletype NY
tle; other
Corporation'
Byrndun
rise, but
dun
continues
engaged
be
to
primarily g g
the manufacture
in
of hats and hat
:
New York 5
3-1223
Boston Terminal 3V2 s, '47
Natl. Bronze & Aluminum
&
Common
Works
Preferred
spite of the
what
production and
and
reconversion period in
big decline in war
Building materials and
goods will be in
strong demand, and there will be
no surpluses in clothing and tex¬
tiles, rubber goods, paper prod¬
ucts, and a host of other com¬
rolls.
pay
for
^TemeandCompanij
Members N.
Y. Security Dealers Assn.
Bell
St., N. Y. 5
Teletypes—NY
Foodstuffs may be more
many
Hanover 2-4850
1-1126 & 1127
two
agricultural
or
will
the
forces
be
general
some
of
level
and
'
in
commod¬
wheat, cotton, and wool, and per¬
•
■:
AH Issues
haps
Iowa Electric Lt. & Pwr.
a
few metals,
(Continued
on
may
page
be in
critical
that
are
to
continued advance.
article
sur-
1846)
a
to
market
♦
The fol¬
as
Inflationary factors, includ¬
ing the huge cash holdings of the
public.,
-
also
and
2.
values
curity
as
a
close observer
of
beha¬
the
v
This
long
lizes
into
phy
which
an
Graham
Benjamin
the
of
vior
experience
crystal¬
The prospective high level of
business activity associated with
attitude
philoso¬
the full-employment philosophy.
can
be
the
don't be too
or
6.
*'
subtle rules, viz:
market—but
this reasoning is
stock
sure
wrong.
of market
past is the best guide
2. The broad pattern
action in the
NY 1-1026
BArclay 7-0570
Kingan & Company;
Colonial Stores, Conn
Vulcan Iron Works
Macfadden
pf«r.
expressed in
skeptical of the popular
reasoning behind any spectacular
in
Ass'n
Y. Security Dealers
N.
Broadway, New York 6, N. Y.
Low interest rates,
v 3.
Improvement in corporate
working capital.
4. Certainty of lower tax rates
:
5. The prospective "restocking
.
1. The
Be
move
111
boom."
than 30 years,
two somewhat
1.
Members
X.
a
Analysis oA request
F. H. Roller & Co., inc.
Favorable
student of se¬
6s, '52
Milling Co.*
San Carlos
more
lowing suggest themselves:
we
ana¬
but
lyst,
*70
1-11+
Indiana Limestone,
com¬
important factors
favorable or unfavorable
technical
a
as
^
ST.
Cross Company*
Liquidometer Corp.*
Delaware Rayon "A"* '
New Bedford Rayon "A"*
Great American Industries
shall write not
mar¬
ity
prices.
Some
raw ;:v mate¬
rials and basic products such as
Illinois Power Co.
the
In this
eye.
and
would
pare
some¬
be
list
level
careful
more
that
rise^
behind
a
kets for
likely that for the next
three years the inflationary
will
be
stronger) than
deflationary
there
short distance farther it will
This apparently imminent event
the; future—but it is not an in¬
fallible guided
A useful way to reach a conclu¬
sion—or
an
impasse—as to the
soundness of the present market
market
with
at security
seems
forces
the
prices
of parity.
90%
,.g
It
37 Wall
durable
sumption high. Furthermore, Gov¬
ernment support will be available
England Co.
United Piece Dye
the
any
plentiful and some prices may sag
a little, but foreign demands will
continue heavy and domestic con¬
and Preferred
Northern Now
be
modities.
Botany Worsted Mills
Common
pects
WALL
Teletype NY
to
facts and pros^
there will
material decline in the
price index during this
most
Teletype NY 1-1843
Bell
J. H. Riddle
York Curb Exchange
Members New
64
market advances a
timely to ex¬
amine
the
ful, however, whether
general
Frank C.Masteison & Co.
it
makes
by
is doubt¬
It
H. G. BRUNS & CO.
Telephone: WHitehall
somewhat
stock
If the
,
reach the highest levels in 15 years.'
price controls.
machinery. •
20 Pine Street,
ten¬
dency may be
restrained
Corporation, Byrn¬
Hat Machinery
the
upward
America and U. S.
of
Corporation
few
a
months
in Hat
of stock
ownership
Through
for
Mayflower Hotel Common
>
,
proach, From the Appraisal Method, and From Prediction of Future
Developments. Concludes That the Speculator May Well See Higher
Prices, but the Long Term Investor Should Significantly Lighten ~His
Holdings,
products irf
short supply
may
Common
Authority Points Out Favorable and Unfavorable Factors Affecting the
Stock Market.
Analyzes Current Equity Prices From the Historical Ap¬
lit-
a
1
14
materials may
7-4070
Telephone COrtlandt
Bell System
Finance;
some
New York 5
31 Nassau Street,
Department of New York Institute Of
Co-author "Security Analysis," etc.
1,: ^
Chairman of Security Analysis
prices of
surplus
the
York Curb Exchange
Fred T. Ley
By BENJAMIN GRAIIAM
business
of
Members New
volume
total
NY 1-1919
United Traction of Pitts.
The Preseni Level of Stock Prices
traction in the
Traded on
System Teletype
this
3/6s, 1956
•
Bell
Exchange
York Curb Exchange
Members New
65 Broadway
international
Power Securities
branch offices
our
Vice-President, Bankers Trust Company, New, York
«
'
Money Supply ;
(2) Heavy Deferred and Potential Demands for Goods; (3) High Labor Costs; and
(4) Government Inflation. Holds That When the Accumulated Liquid Assets Are
Added to Expanded Money yplume, Expenditures Will Outrun the Current Production
Trecker
Kearney &
Direct wires to
i. H. RIDDLE
By
V,
:
2. The absence of a really sub¬
stantial
Inc.
Unfavorable
historically high marke
level.
;
Pub.
a Com.
recession
in
stock
prices
since April, 1942.
.
.
;
3. The Virtual disappearance of
(Continued
on page
C E de
wiilers& Co
Members New York Security Dealers Assn.
120 Broadway, N. Y. 5, N.
Y.
Teletype NY 1-2301
REctor 2-7634
1856)
6%—€yB% & 7% Pfds.
Nassau & Suffolk Lighting
Preferred
7%
New England Power
Segal Lock & Hardware
Assn.
'
Preferred
Remington
$2 & 6% Pfds.
New England
All
'|j
Pacific Power & Light
•
\
\
Queens Borough Gas & Electric
Engineering Co.*
T-v-; A;'
6%
Preferred
$6
&
Light
119 FINE ST., N. Y. 5 WHitehall 4-4970 I
Teletyne NY 1-600
•
Power Co.
Common
'
Common Stock
BOUGHT
—
*Circular
Upon
BOUGHT—SOLD—QUOTED
Simons, Linburn & Co.
Troster,Curries Summers
Members N.
74 Trinity
Members New York Stock Exchange
St., New York 4, N. Y.
HAnover 2-0600
BOUGHT
—
SOLD
—
QUOTED
Request
Bought—-Sold—Quoted
25 Broad
-.
SOLD
Kingan & Company, Com.
$7 Pfds.
C.A.Saxion&CovInc.
Arms
•
Common
$6 & 7% Pfd.
Utah Power &
& WELDER
Weilman
Public Service
Issues
Arkansas Missouri
FEDERAL MACHINE |
Tele. NY 1-210
Y. Security Dealers Ass'n
Place, N. Y. 6
HA 2-2400
J G White & Company
•
NEW YORK 5
Teletype NY 1-376-377
Private
Wires
Detroit
-
to
Buffalo
Pittsburgh
-
-
Cleveland
St. Louis
ESTABLISHED 1890
Tel. HAnover 2-9300
rt€€
-' <
INCORPORATED
37 WALL STREET
.
Tele. NY 1-1815
MEMBERS NEW
One
Wall
YORK STOCK EXCHANQS
Street,
New York
5,
N. Y.
Telephone BOwllng Green 9-4800
f
f
i
.Volume
162
Number 4430
THE
Argo Oil
COMMERCIAL
Reg.
D.
Patent
Publishers
REctor 2-9570
Broadway
DIgby 4-8640
>
Ass'n
twice
^/ive
Thursday
every
news and
Spencer Trask
?
Monday
Other
Kansas City—Los
Angeles
Offices:
Chicago
3,
111.
135
S.
La
(Telephone:
Salle
Copyright 1945 by WilUapi
,1
CERTIFICATES
Reentered
ruary
Lawyers Mortgage Co.
1
*
,
Y.,
the
Act
of
of
Canada,
Central
$27.50
per
America,
March
per
Danger of Inflation
and
year..
Newburger, Loeb & Co.
II Members New York Stock Exchange
;
of
to
yr.
of
II
foreign subscriptions and advertisements
/complete 1
In
made
New
York
funds.
,7
IllllllilOfDeconversion
V':V
ended.
Reconversion- Director Stresses the f. Peacetime Responsibility of Dis
tri^jUjjIj^Attainment of Full Production and Full Employment, and
t h
r o my;
nancial
y
I
tern.
The
e
sion and
war, none-
jthele^s,
that
the
.•
| conference
and
over
the
saw
your program for this seventeenth annual
and
retailers those controls
would not have succeeded/
complimented
at
t
t i
o n.-
the
The importance
invi-
your
a
when
I
But
has
saw
sized when
matters
you
were
"
P
r
Trends"
"
i
c
e
a n
d
—
here
listen to
be
John W.
or
Snyder
whether
you
wanted
*
I
understand "you
gentlemen
fiaye had a little difficultywjth
t prices and costs.
3
i
Before
proceeding to my sub¬
ject "The Expanding Market," I
like
tunity to
,
^
to
take
express
this
oppor¬
the appreciation
of your Government for the magnificent job you men and women
-engaged in the1 distributive trades
warks of
economic
the*
country
«
and
:
aches over the necessary wartime
controls than you have. In a large
inflation
the success of those con¬
holding the line against
can
be attributed to your
cooperation.
Without the support
of the vast majority of wholesal-
„
* An
address by Mr. Snyder before the Seventeenth Annual Con¬
.
ference
■
so
is
euphemistically
end
of
the
war"
American
invest¬
on
j
'■'
...'
■
A
adequate and efficient
Common
J!
i ■'./
New
40
Members
York
ourSystem
of
HAnover
Bel!
.
(Continued
on
TRADING MARKETS
1852)
page
Haloid Corp.
Bartgis Bros.
the
utor
equal
Too
miracle
often
the forgotten
was
sideline^ while the
for
the
raising of
factories
over
"E"
were
the
record
speaks for itself.
burdens
its
In
set
being handed
Herbert M. Bratter
increased
b,y 36%
and
retail
by 19% during the 1939-44
period.
r
on
Distribution,
AMass.,'Oct/16;
1945/
Boston,
e
t
Woods
Billings & Spencer
U. S. Sugar Com. & Pfd.
Shatterproof Glass Corp.
Est. 1926
H[RID D
In-|
as
t
q
the
o
n
Con-!
France
status
icy
of
and
of
the
and
socialization
Members
170
Bell
may
Lea Fabrics
disclosed, are roughly as fol¬
V y ?y:4yy;;;y:'4/yvy.. v i
•
,
Haytian Corp.
.
A readjustment of the external
value of the franc sooner or
later
is
inevitable.
The
question
is
from
DUNNE & CO.
political
also
the
the
proper
timing
economic
standpoint.
the
(The latter refers to the fact that
France
is
now
importing more
Members New York
Security Dealers Assn.
25
BrcaJ
WHitehali
r
-
'
the
(Continued
on
page
..
,:>/_■:/..
on
every
*
side
;lil American Bantam Car
Private
were
had
Public National Bank
y
years
the
best
fed,
and
the
best
page 1858)
I.
-^-yy/'TrS
*
National Radiator Co.
r' i
' •
;= 7" 7y
Circular on Request
y-'/•'.'/
Analyses available
to
HoixHqseSTrsster
y
ac¬
74
all
.
on
y:
dealers only
\
*
equipped in the world. Such
complishment in the face of
'4 (Continued
v
-
clothed
;
Bought—Sold—Quoted
-vSy/:-/-
buy more than they
bought before and our
population
and v Armed
remained
best
'•
& Trust Co.
Common and Preferred
SySYv/Z/oSyiVS:7.y.-vj
able to
ever
civilian
the
war
Wire to Boston
■
you
customers
your
throughout each of the
St., New York U, N. Y.
3-0272—Teletype NY 1-956
1859)
trade
Despite shortages that beset
1-84
National Gas & Electric
lows:
is
NY
Eastern Sugar Assoc.
general election. Briefly, the ideas
expressed by this French
official,
desires that his
identity not
There
Teletype
Puntq Alegre Sugar
reorganization of the
Government
after
the
it from the
System
Ass'n
2-0300
pol¬
which
standpoint.
question *of
Dealers
WOrth
private
the
the
how to time
[o.
&
York Security
the
who
be
New
Broadway
„
ference,
distribution
spite of war¬
shortages of
wholesale :tfade
up
result, of
B
volume
the
ternati onal
Bank
to * be
Pennants
of
and
coming
from
-4;:
But
future
relief
the
played
Efficient War Time Distribution
t
French
position of the
franc, the ex¬
pectation
of
and -while -certif-*
icates of merit
and
policies.
spoke of
future
of
follow
He
dis¬
man on
Sargent & Co.
/
and Financial Chronicle
banking institutions
whatare;
France's hopes
the present
distrib¬
bands
put.
v
the
of
Bank
n
him
and
performed by manufac¬
turers and farmers tended to ob¬
scure
Expert Speaks
probable
S
"
" Establistted 1914
C. E.
"
61
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400*
*
'
Teletype: "NY 1-375
Unterberg & Co.
Members N. Y. Security Dealers Ass'n
.
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
'
i
2-478$.
System Teletype, NY 1-2480
•
I learned from
independ¬
Security Pealers Assn.
/
Private Wires to Chicago & Los
Angeles
PARIS, FRANCE.—-Coming in contact with a French
financial
expert, who occupies an important position in
shaping French finan4:4/4.
//ySy/:cial
policies,
o
'■.
Exch. PL, New York 5, N.Y.
v
T;
conversati
Preferred
J.F.Reilly&Co.
dustry Still in Doubt.
with
<6
Bought—r-Sald-.—Quoted
v
Jhe Franc to Go Lower. Position of Gold as Currency
Changed. Inter¬
national Bank Expected to
Help French Industry. Not Necessary to
Nationalize Bank of France. Nationalization and
Socialization of In¬
The distribu¬
;
.Bantam
on
England
Bank
Management
Conference,
Boston, Oct. 11, 1945, y
•
Special Correspondent of the Commercial
miracles
Forces
t
■■
Teletype NY 1-1203
ter¬
effect
analyze first the move¬
deposits.
This
is most
"<
'
New York 6, N. Y.
•;''
By HERBERT M. BRATTER
■
measure,
the
the
loans, and
on
•
Broadway
HAnover 2-8970
*An address by Dr.
Rodgers be¬
fore the Fifteenth New
A French Financial
matic stories about the
produdtion
{have performed during the war
;■•&$'?*p''f
" 4";• labor,
trols in
;
39
*
investment policy should be based
on- the
anticipated movement | of
deposits. The^rmain thing to unt
will
and free enterprise. ?
During the war years the dra¬
r.l years.
No group on the home front has
suffered with more business head¬
peacetime
full: pro¬
employment.
ent
time
:
an
tribution.
to listen to you!
would
of
Members New York Security Dealers Assn.
important because both loan and
always been bul¬
to
me—-
a
upon
full
ultimate consumer.
tive trades have
you asked me
up
talk of
system of distribution to move the
products of factory and farm, and
place them in the hands of the
whether
sure
sufficiently empha¬
we
and
without
Will
1 d n't
of distribution
This objective cannot be attained
They Rise?" I
c o u
been
prosperity founded
D istributive
Costs
not
duction
go¬
ing to discuss
—
■:'j'
us
ment-
.
distinguished gentlemen who would
many
address you, 1^felt
greatly ers
me
K Let
mili¬
policy/ of
"the
of
hostilities,
on
Bank Deposits to Increase
„
means
LJ.G0LDWATER&C0.
Says Reconvert
Surplus Disposals Are Progressing Satisfactorily,
QUOTED
■
Complete Statistical Information
'
When I looked
SOLD
-
have tot
all of the fi¬
cover
actual
what
deposits,
ments.;
end
of
concentrate
termed
the I shoot¬
ing
shall
of"
.
"Moderate" Price Increases Granted Manufacturers.
4-6551
we
consequences
mination
sys-4
banking
of
In the limited time
day,.I. cannot
naturally
Problem Is to Curb Inflation by Preventing Runaway
have •; farRaymond Rodgers
£ Prices Arising From Heavy Backlog of Consumer Demands.
Points to reaching
inMistakes After Last War in
Permitting Price Rises and in Over-Accump* fluences on our financial instjtur
iation of Inventories and
■■
%
Approves the Absorption by Distributors of tions/
|
BOUGHT
But the economic side
this audience will live
in
man
y
disappear'
the
-A
Dept.
CERTIFICATES
.
ended.
No
tary will
no.
longer dictate
By JOIfN VV' SNYDER*
Director of War Mobilization and Reconversion
|
in¬
fluences
be
far from
is
war
ef-,.
and
World War
Distribution Problems |
:
is
war
the
see
fects
|f
J i"
the
shooting side of the
NOTE—On account of the fluctuations
in the rate of
exchange, remittances
must
Securities
STREET, NEW YORK
TITLE COMPANY
•
^
Deflation.
or
long enough
.
for
WHitehali 4-6330
The
...
:'i
•.
--XJtbeyl^biicAiioMv*'
Bank and Quotation
Record—Mth.$25 yr.
Monthly Earnings Record—Mth.. .$25
the
obsolete
your
.
and
*
Mexico,
buying
bonds.
ball
may
behind
v
New England.
Sees Increase in Bank Loans if
Banks Liberalize Loan
Policies and Enter the
Consumer Credit Field and
Says That Because
Interest Rates Will Remain
Low, There Will Be a Large Volume of
New Financing and Banks Will
Increase Their Bond Portfolios.
Sees
No Immediate
Cuba,
$29.50
per
year;
Great
Britain,
Continental Europe
(except SpainL Asia,
Australia and Africa, $31.00
Produce Co,
Bell Teletype NY 1-2033
-
South
year;
Spain,
from
you
by
WALL
Rodgers Predicts That There Will Be an
Increase in Bank
Deposits During the Next Year Both for the
Country as a Whole and for
second-class matter Feb¬
at the post office at New
under
'into a
crystal
future—but we
get
and
Professor
'
your
to
Obsolete
99
New York University1
School of
Commerce, Finance and Accounts
B.Dana
7
,
stocks
Professor of Banking,
Subscriptions In United States and
Possessions, $26.00 per year; in Dominion
>
N. Y. Title & Mtge. Co,
|
as
1942,
tell
able
eight-ball
Broad Street, New York
By RAYMOND RODGERS*
.
St.,
i
Lawyers - Title & Guar. Co.
*
25,
York, N.
3, 1879.
Bond & Mtge. Guar. Co.
140 Wall St., N.Y. 5
Company
v
be
Telephone WHitehali
Drapers' Gardens, London, E. C„ Eng¬
land, c/o Edwards & Smith.
TITLE COMPANY
and
look
The Financial Outlook
0613);
1
can't
;
-
State
& Co.
£
Teletype NY 1-5
Members New York Stock
Exchange
4
f
:
tation
York—Chicago—St. Louis
BALL
We
Telephone HAnover 2-4300
advertising issue)
and every
;
25
week
a
(complete statistical issue—market quo¬
records,
corporation,
banking,
clearings, state and city news, etc.)
Teletype CG 129
CRYSTAL
PREFERRED STOCKS
5
;
,
President
Published
(general
Direct Wire Service' r;
New
Seibert,
Thursday, October 18, 1945
Harrison 2075
834
Public Utility and Industrial
;
William D. Rlggs, Business
Manager
Board of Trade BIdg.
•:
; CHICAGO 4
NEW YORK 4
Teletype NY 1-832.
AND COMPANY
8
to 9576
William Dana Seibert,
STRAUSS BROS.
Dealers
D.
licmfnsifin
"
High Grade
.
Editor and Publisher
Cleveland Bldrs. Supply
Security
*
25 Park Place, New York
Herbert
York
interested in
offerings of
are
'
Welch Grape Juice
New
We
Office
William B'. Dana
Company
Whiting Corp.
32
and
FINANCIAL CHRONICLE
Moore-McCormack
Members
COMMERCIAL. & FINANCIAL
CHRONICLE
1819
)Lcvii
The
^
>
Teletype NY 1-1666
;;
w
THE COMMERCIAL & FINANCIAL CHRONICLE
1820
Thursday, October 18, 1945
BOSTON
Cleveland Cliffs Iron Pfd.
Art Metals Construction
'"'i"
Croweli-Collier Pub.
Bausch & Lomb
jt
•- «>;
Kingan & Company
f'..'1 A
...
'■'?
•
Bowser
Grinneli Corp. V
Carey (Philip) Mfg.
Winters & Crampton
Bought
-
CAPITAL STOCK
Title Guar. & Trust Co.
Moore Drop
Sold - Quoted ?
.An interesting
Adam Hatt
Telephone BArclay 7-0100
American Bantam Car
'
«
,,
financial underwriting
|l-672
on
t Winters &
tLe Roi Company
Ball
*
&
Letter
Appl.
du
Du Mont Lab.
Capitol 4330
TRADING MARKETS
.
New
Gt. Amer. Industries*
••
Hartford Empire
ARIZONA EDISON
Submarine Signal
Kaiser-FrazertC||
Lamson &
h:
t.
,-ft't-Vv*?
Descriptive Circulars
\ {'
r
5
'
Private New York Telephone
Sessions*!
Incorporated
MembersNew
Broad
41
Moxie Co. !
■
'•
'
"
!
Street, New York 4
"■
'
•
■■
•
BOENNING & CO.
York Security Dealers Association
I
1 "
1
I
&
II
New England
HAnover 2-2100
„
..I
■
'
n.lM
■
.' f.:
'
l.
Pfd.
'■
''
V
'*
i'.- •.
What About
±3^
Polaroid—New
v*
'V-
Markets
> '"'
~
:•
!
.
•
1606 Walnut St.,
a
,v
Private
»if ^
Foreign Loans?
i
-Bank and Insurance Stocks
>
Sylvania Industrial
|
Taca Airways*
Trenton Val. Distillers
Maintaining That the Disagreements Over Bretton Woods Proposals
Was Due Mainly to a Conflict Between the "Do Good'*1 Spirit and Sound
Banking Principles, Mr. Folger Points Out That as the Greatest Burden
in Supply Capital for the International Banks Falls on U.
S.,^"a World
Hungry for Dollar Credits Will Beat a Path to Our Door." Asserting
Warren Bros. "C"
TEXTILES
Aspinook Corp.
Textron Warrants
United Piece & Dye W'ks
o
&
in
i
Preferred
after
the
Conn. Lt. & Pr.
Iowa Southern Util.'
last
Mass. Pr. & Lt. $2 Pfd.
.
New Eng. Pub. Serv.
I
Common
•
lowed
was
I
^
j
Peoples Lt. & Pow. Pfd. |
tProspectus Upon Request
j
*Bulletin or Circular upon request j
wmmm
EST
H. M.
Giant Portland Cement
Common
Act
and
Uncle
Sam
one
which
issues
not
of
foreign
The
were
latter
;
part of
loans
10
POST
John
.'
to
C.
Folger
"
recall
floated
io
can
was
T-l.
HUB
the
may
one
try
f
-
,
NY
J:S
-
to
Chicago and Phila.
,
ENTEBBRISE 'PHONES v
Hartf'd 6111
Buff. 6024
Bofi. 2100
*An address by Mr. Folger be¬
fore the Mississippi Valley Grour
the
Investment
Bankers
Asso¬
St. Louis, Mo., Oct. 12
1945. Mr. Folger is a partner in
Folger, Nolan & Co., Washington
'
-
.?
'*
RiLz Carlton Hotel
"(Atlantic City)
International Resistance Com. & Pfd.
DES MOINES
F. I. MORRISSEY & CO.
gave
\
WHEELOCK & CUMMINS
1510 CHESTNUT ST., PHILADELPHIA
Phila. Phone
INCORPORATED
(
rule
.
Whitehall 4-1234
>
Boston Phone
*
Enterprise2050
Bell System Teletype PH 279; „•,)
•:
Light Co.
Preferreds
.
UTICA. N.Y.
United Light & Rys.
thing is deep-
N. Y. Phone
-
Rittenbouse 8500
Iowa Power &
•
'
Preferreds
Rath Packing
it is the desire to "do good." The
,
gooders" always get a hear¬
ing.
The vigorous debate over
Bretton ; Woods
was
largely
the
difference in point of
view.
Was it a banking problem
or an opportunity to do
good in the
result
of
Utica & Mohawk !<
Co.
Common
"do
''
'
'
Cotton Mills
i
.
EQUITABLE
DES
a
The answer is that the
"do good" spirit and sound bank¬
ing
are
both needed to get world
trade moving. '
-
MOLNES
Phone 4-7159
-
BUILDING
9,
IOWA C
"
Bell Tele. DM 184
Currencies,
particu¬
larly the automatic lending provi¬
As
a
result, many difficult
points were ironed out in the en¬
Bretton
There
was
Woods Bank
considerable
agreement J over
the
Fund
abling legislation.
dis¬
for
;
.
I "-
"Makers of Utica &
to the
When it came
Bank, however, most every-
(Continued
on page
1860)
j;
Mohawk Percale Sheets"
V; :INQUIRIES
Stabilizing
sions.
■
ciation,
D. C.
i
'
seated in the American breast and
.
the last
by: bankers
good, was better than
most people realize. On the $9 bil¬
lions of foreign bonds sold in .this
of
Lives, etc.
on
T. C. Com. & Pfd. 3s-6s
Teletype BS 69
factors
to
Company
Philadelphia National Bank
SQUARE
MASS.
Girard Triist
Penna. Co. for Ins.
of
make them different.'
lending. They
out liquor. But
9,
C
1990
in
cost
a
consider
OFFICE
BOSTON
loans,
the
"
*•
LERNER & CO.
Americans may rule out foreign
spree, but it is interesting to note
the eventual pay-off on. foreign
bond
2
Fidelity-Philadelphia Trust Co.
*Circular Available
.' Of
money.
1914-1920, less than 5%
portant
likes
while
our
black eye. Peo¬
ple now ask: "Are things going to
be different this time?"-It is im¬
said, "Never again."
No
Phiia.
Toll typo PH 73
Central-Penn Natl Bk.
Consolidated Cement "A"
we
Government made be¬
foreign credits
Bank¬
house
indicate
however,
t ernational
the
in
Phone Rtttenhonw 3717
.
^Riverside Cement
World War I, just as lend-lease is
part of the cost of World War II.
The poor pay-off,
little
from the
put
dog
OFFICE
Stock Exchange Bldg.
^Central Iron & Steel
principal but not
on
billions
collected.
even
were
$11
reality,
a
bottle.
"A"
Byllesby & Company
PHILADELPHIA
world?
BROADWAY, NEW YORK 5
REctor 2-8700
Direct Wires
n
return
tween
passed,
nip
back
get
which the
so
1926
Members N. Y. Security Dealers Asm
120
the
think' about
I
outstanding,
much
the
illegal to
common
common v.-l
TRADING MARKETS
^Oregon Portland Cement
shall
fol¬
which made it
ers
North West Util. Pfd.
All Issues
Irving Shoe
Warner Co.
Government, Bankers and Busi¬
bonds
The
war.
which
taking
|
Pittsburgh Railways Co.
Springfield
.
headache
was
|
Providence
vJohn
Except for brief and usually repented intervals, Uncle Sam has
a jaundiced eye
upon International Banking.
He went on quite
a
foreign
>;•
— \
lending spree
country in 1920-1935, the pay-off
to
during and
date, plus market value of
Johnson
UTILITIES
I
Portland
Floating Foreign Leans.
terrific
II
Empire Steel Corp. com.
Tel. LIBerty 2340
,
Selling Foreign
by Bank, They Should Have a Part in the Plans and
Councils of the Flotations.
Sees Need of Exemption From SEC Regu¬
,
Common
77 Franklin Street, Boston 10, Mass.
Bonds Guaranteed
ness
common
Botany Worsted Mills pfd. & A
cast
Alabama Mills*
I
Philadelphia Co.
F.L. PUTNAM & CO., INC.
That Since Investment Bankers Will Have the Job of
lations and Calls for Collaboration of
"
0%. Dealer Inquiries.Invited-^y.
Inactive Securities
-
H. H. Robertson
I
? H'l
C.
By JOHN CLIFFORD FOLGER*
Richardson Co.
I
Y.
N.
to
Secondary Distributions
President, Investment Bankers, Association of America
.
PH 30
Phone
-COrtlandt 7-1
Industrials—Utilities
Purolator*
Philadephia 3
Pennypacker 8200
Retail New EngUnd Coverafo
P. R. Mallory
&
Common Stock
Seligman, Lubetkin & Co.
Mo. State Life Ins.
Com.
Bag & Paper Co,
REctor 2-5035
Liberty Aircraft
i
Southern Advance
75 Federal Street/ Boston 10
/
'
Company
Common Stock.
Dayton Haigney & Company
request
on
between
Southern Colorado
.
■
WELLMAN ENGINEERING CO.
■-
Wire System
Power
THE FOUNDATION COMPANY
Hoover Co.
Private
England Lime Common
CO., Common
FASHION PARK, INC., Common
Co. ft
Los Angeles
Hagerstown, Md.
Telephone—WHitehall 3-7253
Philadelphia, New York and Los Angeles
Boston & Maine Prior Pfd.
Douglas Shoe**
I
N. Y.
Boston Edison
Exchanges
Street, Philadelphia 2
New York
Pittsburgh, Pa.
"A'||
i
-
York, Philadelphia and
Los Angeles Stock
1529 Walnut
Teletype NY 1-2425
/
:
1-714
BUCKLEY BROTHERS
Teletype BS 424
*
Members New
; New York 5
Hanover 2-7793
Broadway
Memos on request
Underwriters and Distributors of Investment Securities
S. F. Bowser
*
.
Standard Stoker
Pont, Homsey Co.
Shawmut Bank Building
FIRST COLONY CORPORATION
70 Pine Street
;>•
Gear Grinding Machine Co.
BOSTON 0, MASS.
Blair & Co.
.
United Printers & Publishers
-».
Request
on
1908
Security Dealers Assn.
PHILADELPHIA
Crampton
Prospectus and Special Letter Available
^Statistical Study or Special
Y.
2-4500—120
System Teletype N. Y.
request
t York Corrugating
■"Simplicity Pattern
Pfd.
Bendix Home
Established
,
,
REctor
Descriptive memorandum
Armstrong Rubbert
Com.
Teletype NY
'
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Amer. Window Glass*
&
.
105 West Adams St., Chicago
Pfd.
American Hardware*
Com.
J.K.Rice,Jr.&Co
priced speculation
Exchange and Other Principal Exchange*
Broadway, New York
Forging
-
Members N.
115
&
low
-
Corporation
Great American Industries
•
Com.
Loft Candy
BLAIR 6- CO.
Goodbody & Co.
Members N. Y. Stock
INDUSTRIALS
,V
Greater New York Industries
V:'
INVITED
'
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MOHAWK VALLEY
INVESTING COMPANY
■■■
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238 Genesee
Tel. 4-3195-6
INC.
St., Utica 2, N. Y.
Tele. UT 16
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Volume
J
1
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"Number 4430
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THE COMMERCIAL & FINANCIAL CHRONICLE
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RED ROCK BOTTLERS, INC.
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1821:
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Established
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George R. Cooley &. Co.
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are
now
actually in that post-war period for. which we
Our: plans have come home to
roost, and are ready for
-Y; '/
the test. But,
because of the
u n e x
and
p e
of
termination of
the
Japanese
war,
recall
find
we
midst
of
the most cha¬
otic
and
cial
was
problem
that
ever, con-
by
other
t empo rary,
J. J. Nance
except for
thing: What
we
to determine the
in
this
country
one
do today is going
course
and
v
\
throughout
American industry;. this strong,
Achilles
become
was
ingenuity
*
that
me
today
*An address by Mr. Nance be¬
the Sales Executives Club of
York, New York City,
2, 1945." v- Y
; Y
'
YY'
-■
manhood
to
arrow was
guided by Apollo to the
vulnerable heel.
;, ^
• 7Y; Y.
/Industry Has
Oct.
Achilles
an
Heel
Industry today is strong
'
as was
Achilles, and I believe that
the
problems
There is
are
S
after the
which
taken
worry
in
is
on
be
a
us
stride.
delightful.
with
on
My
what J happens
honeymoon is
(Continued
we
sales honey¬
over.
long range standpoint,
/ Y
most
question but what
It -will
concern
a
no
(Established
,
.
Great American
1892)
Industries
SPARTANBURG, S. C.
L. D. 51
Teletype NV 1-2419
Teletype SPBG 17
COMMON
*-•
page
From
Writer
we
can
By NATHANIEL
-
STONE
-■•7-
■[}
CHADWICK
Contends
Large Money Supply, and the Consequent Fear of
"Shrinkage in Purchasing Power of the Dollar," Together With ihe
Short Supply of Stocks Arising From Unwillingness of Holders to Sell
Because of the 25% Capital Gains Tax, Is Tending Toward
High Price
Level for Stocks.
qAllen & Company
Established.
BROAD
30
NEW
NY
Teletypes:
bull market, such
as
year
several
of
great
supply.
demand
limited
and
for
a
i;
bear
Source of Demand
/
the war, labor
Originally designed to prevent
financial panic and to help banks
by supplying them with a flexible
currency and credit, the Federal
clude the ter¬
o
f
difficulties,
Reserve banks have turned out to
reconversion
be
delays largely
resulting from
OPA
pricing
policies, and
and credit to the banks
the
a
threat
or
of
have
ing
funda-
stock
N.
"
Y
lesser
that
voir
"
far
the
above,
abstract,
without the
and
funds
credit
and
Deal
school, of
national
debt
re¬
hypothetical
1 Wall St., New York 5, N. Y.
tion
own
reser¬
Punta Alegre
the
of
expanded
occasioned such
the
in
national
Sugar Corp.
Haytian Corp.
and
tremen¬
Quotations Upon Request
an
FARR
accelera¬
debt
and
in
•
or
conjectural, but are real and are
active now, for they are the forces
of
expansion that at
1945
debt
it
will
or more
is
be
estimated
about
$275
the
end
that
the
billions,
than 15 times what it
(Continued
on
page
was
.
*
New
New
&
CO.
-
.
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credit
Teletype NY 1-95S
DIgby 4-7060
not
dously, with interest rates declin¬
ing steadily.
The advent of the
war
FUND
GUDE, WlNMILL & CO.
economics,
our
intermediate
WAR
Before World War II, under the
New
;YY
individual
their
credit likewise increased
to
actions may be expected to occur
from time to time.
These forces
not
the
factors
degree that they appear to
indicate
an
upward
trend
in
equity prices for several years to
although
of
could
on
>
Members New York Stock Exchange
and
a
come,
if
loaned
had
-.S.Y.
YORK
NATIONAL
Federal Reserve System.
outweigh
uncertainties
1928-1929
in
resources
Chadwick
supplemental
mentioned
are
S.
affecting
subordinate
and
as
good
are
NEW
cash
Y'vV
occurred
banks
forces
market
such
bad.-
tended
are
outstand¬
of
Experienced bankers know that
the
excessive
credits
they
ex¬
in
two
fountain
ing the entire
System, whether times
margins.
"There
veritable
a
represent¬
Federal Reserve
in-
further
crease
1-573
Angeles
GIVE
•
in¬
mination
Los
GENEROUSLY
Rea¬
market
to
4>~
rchasing
power of the
p u
sons
&
1-1017-18
inflation, huge savings in the hands of the public,
and the lower
dollar.
N. Y.
HAnover 2-2600
Wire
Direct
have been advanced for the
reasons
1922
STREET
YORK 4,
Telephone:
"
'
During the last
are
1842)
-
Vice-President, National Securities & Research Corporation
>
such
starting off
" '•
-■
Long Term Forces Affecting Stocks
Y-M-
mental
moon.
New
vul¬
ordinary
mighty warrior. But he
finally slain by Paris, whose
today •will ;be
fore
of
a
of
j
to
grew
lusty product of American deterand
skin
-/Y:Y i/ -I
,
mi nation
ity to produce, reminds
,
the
as
one
un-
of events
astounded the world with its abil¬
,
heel and dunked him like
one
mortals.
*
the world for
many years to come.
Y
rendered
nerable
nation.'% This
problem, how¬
ever,
isY only
Achilles
doughnut.
Consequently,
tiny area of heel was. left
bathed, and it remained as
people of this
any
infant,
a
fronted / the
or
an
immune to injury
by ; any
weapon.
However,- in
bathing him, his mother held him
cru¬
reconver¬
sion
as
was
bathed in the River
Styx to
make him invulnerable. Wherever
the waters touched his
skin, he
ourselves in
the
that
;
:V
St., New York 5, N. Y.
WHitehall 4-3990
the
legendary Greek warrior,
Achilles, who was the bravest,
handsomest, and swiftest of the
Army of Agamemnon. You will
cted
sudden
Established 1924
William
-' V.
A. M. LAW & COMPANY
i
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Claiming That the VulneraMe Spoti of Industry, Like Achilles'
Heel,
Will Be Inability" to
Keep Up Consumer Demand, Mr. Nance Calls Upon
Management to Become Sales Minded. Points Out That in
Post-War,
Unlike the Pre-War and War
Periods, There Is Not Likely to Be Heavy
Government Deficit Spending to Create Consumer
Demand, if Private
Industry Is to Continue, and Urges Strenuous Sales
Activity as Means
of Creating
Employment and Business Prosperity* Sees No
Danger
of Inflaton Because of
Large Producing Capacity.
-
|
Milling
V COMMON
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52
■
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All Issues
)
Vice-President of Zenith Radio
Corporation
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By JAMES J. NANCE*
planned.
New York.
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Tele. NY 1-2500
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Big Sales Job Ahead
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' 1 Bell Teletyjie NY'lw897^
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Fonda, Johnstown
Broadway, New York 4, N.Y.
Y
2-09W
HAnover
NY 1-395
Y' :
Montreal
' Toronto
San Carlos
Rhodes, Inc.
Tel. WHitehall 4-6430
ST.i N. V. 5
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Development ^
PETER BARKEN
1904
Broadway, N.Y* 4
"A
WILLIAM
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CO.
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Hiram: Walker
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HART SMITH & CO.
52
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Sua Life Assurance
L
BEQUEST
W. J. Banigan & Co.
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w.
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Members New York Security Dealers Ass'n(
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Members
Stock Exchange
Yotk
York Coffee
120 WALL
& Sugar Exchange
ST., NEW YORK
TEL. HANOVER 2-9612
1851)
'» t % -i :
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THE COMMERCIAL & FINANCIAL CHRONICLE
1822
Thursday, October 18, 1943
V—
We have
prepared
indicating
A
Comprehensive Report
possibilities of
a
1
Delaware Power & Light
interesting
the
V
',; X:i.
Common
fv;
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An
!■&&$$$$
Outstanding Record
Federal Water & Gas
LIBERTY AIRCRAFT PRODUCTS
t Common ; ;
CORPORATION
>
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$1.25 Cumulative Convertible Preferred Stock
/
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BOUGHT
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Public Service of Indiana
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SOLD
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Common Stock
affiliate
and its
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THE AUTOCAR COMPANY
Paiine, Webber, Jackson & Curtis
,
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$1.00 Cumulative Convertible Preferred Stock'
request
ott
Public Utility Securities
:'^V'
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Copies available
Investors
seeking
Utility Taxes and Earnings
•
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.
>
New
76 Beaver Street
New York
*
Security Dealers
KorJit Security Dealers Association
^
dividends
Bowling Green 94623
Teletype NY 1-2525
•••
5, N. Y.
utility companies have bdrne
to
to
common
$443,600,000
In
stockholders.
fully integrated
Funded Debt
S5 Cum, Pref.Stock (no par)
been
j
/
.
squeezed
in
380,735 shares
utilities
the
American
war
practically eliminated.
good financial condition
indicates
which
a
favorable
specializes
paper.
in
and
outlook
the
position in
for
Oxford
production
of
the
Paper
book
prewar
to
industry,
reduce
has
taxable
vvi 1-2173
■1288
11-3'
Telephone:
BROADWAY,
New York 5, N. Y.
|
RE 2-8700
and
conservative
have
tures
By FREDERICK S.
?
Selling lob
a
BLACKALL,
f
,
New England Industrial Leader
Urges Banks to Give More Publicity to
Their Methods and Services and
Engage in a
"Selling Campaign." Says
Highly Competitive World It Is Important to "Tune in With the
Public Pulse" and That Banks "Must Be Alive to What the
Public Wants
and Try to Provide It."
Says Banks Needs a Sales Department and
Advocates That They Serve Fully Their
Communities, Including Small
Business, if They Desire to Keep Government Out of the Banking Busi¬
Decries Banks Relying on Government
Participation in Making
ness.
Business Loans.
Town Meeting
principle
Management Conference is one of the
examples of focusing the New England
.
^
on
of
part
having
is
our
in
to
able
your
tine,
Augus¬
for
his
banking fraternity full of
the
ac¬
with
been
low'
'rates
capital 'struc¬
especially hard
some cases.
the
saving
in
excess
profits
of which, under the
•i
(30%)
would
amount
to
only about $63,000,000. It is dif¬
paying out $210,000,006
profits taxes last year,
receive
resulting from the
proposed cufcrih the surtax,* due
to the present exemption, of
pre¬
had
been
confidently
ex¬
Ways and Means Committee haS
proposed to reduce the EPT rate
from 95 (or 85¥2% net after det.
ducting the 10% post-war credit)
to. 60 %, while the regular tax rate
iwould be reduced from 40 to 36%
(by reduction in the surtax rate).
The
bill, the first tax-cut¬
in 16 years, Was
passed by the House Oct. 11th and
ting
new
measure
sent to the Senate.
However; Sen¬
ator
George, Chairman of the Sen¬
Finance
Committee,
favors
complete repeal of EPT, and since
prepared
opinion carries great weight
it is quite possible that the Senate
version
may
action by
a
of the two
win out in eventual
conference committee
Houses.,
;
V v
*«
cess
erous,
of the 40%
profits taxes, and application
come,
rate to all taxable in¬
utility taxes would be
re¬
interesting study
be had
out
around
$80,000,000,
or
upon
request for
Circular "CC."
some
$22,000,000 less than if EPT
were
scrapped and the income tax rate
left unchanged.
Thornton
Co.
&
60 Wol! St., New York 5
HAnover 2-9340
B electric utilities
was down 2.8%
from last year (for the 12 months
endled July 31 decline was
only
0.6%).
According to preliminary
estimates for Augustj net income
for that -month was down about
10%
from
THE FRESNIUO CO.
last year.
The Com¬
&
Southern
No par
system,
August but the
charges was down
about 2% as compared with a gain
of nearly 9% in the first eight
months. In additioii to a decrease
in earnings resulting, from indus¬
balance
trial
after
reconversion
and
labor
dis¬
turbances, State commissions
may
be
more
active
capital shares
Mexican
gross revenues for
Silver
originally
Mine
discovered
in 1550.
Descriptive circular
on
y' \K
tequtst.
yg-
,•
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X- *-'i'
in
ordering rate
cuts than they have been
during
the wartime, period.
The utilities
may be lucky, therefore, to sal¬
k
I
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Y
s
•
X
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1
v.*
.•
Markets maintained for
Banks, Brokers and Dealers
.
vage even half the anticipated tax
savings,
net, gain in the bal¬
stock dividends.
as a
ance for common
An increase of
$50,000,000
even
$40,000,000 to
in
dividends paid to
stockholders, or about
15-20%, would just about restore
payments to the 1939-40 level.
common
y
v''r
'
Shepard, Scott & Go.
44 Wall Street, New York 5
mithm
•
to
Manage
GorbreyOept. in L A.
LOS
ANGELES, CALIF.—Car¬
Co., 650 South
Spring
Street,
announces,
that
ter H. Corbrey &
With complete
exemption of ex¬
an
hew
have
We
thood of $15,000,000 to $20,000,000.
Thus the total saving might work
ate
his
shires of
Stock.
of this situation which may
probably affected as much as any
important system by military cut¬
backs, reported a slight gain in
It
21
Common
ferred dividends from the
surtax,
but this might be in the neighbor-
the utilities earned only as much
pected that Congress would do
away with excess profits taxes, in
the pending tax bill to become ef¬
fective Jan. 1. Instead, the House
present
recapitalization plan, is to
ficult to estimate the exact
saving
in income taxes
monwealth
With the latter year.
7%
Stock, each share
taxes
in^excess
the milk of human
kindness, gen¬
however,
the
F. S. Blackall, Jr.
primary factors in establishing the
high place which this conference
holds among the
business forums
of New England.
as
the
Preferred
ever, if the House bill should pre¬
vail
Central &
Paul II. Aschkar has become asso¬
ciated with them as
manager of
the trading department. Mr. Asch-
t"elephone: BOwling
-
Teletype:
kar in the
Wulff &
9-0040
Green
NY 1-1662
past was with Franklin ^
Co., Mason Brothers,
Schramm, Eddels & Co.
Norman
now
V.
connected
Grimsditch
with
the
and
v
is
also
firm.
help them to the limit of their
ability.
I think you will agree,
organizing
ability
and
unflagging
energy, which
have been
friendships here and to
sincerely concerned with
the problems of their fellow
men,
and characterized by a desire to
Chairman,
Bill
——
something
quite foreign to my -experience.
Serving, as I do, on the boards of
three of our
leading Rhode Island
banks, I have found my associates
in
We
gratitude
•
be identified because it
had a little more warmth in it
than his natural one, is
spon¬
express
:
eye could
sored the idea
initially.
: a '■ >
*
ones. The old chest¬
nut about the banker whose
glass
proud
its
old
'
establish'new
lems, and the
New England
justly
<§>————•
new
business prob¬
Council
1
/
The New England Bank
most conspicuously successful
in
ire. 1937, and only slightly more
than in the depression year 1932,
despite the fact that gross reve¬
nues had increased 74% compared
>
*
.
President, The Taft-Peirce Manufacturing Co.
in the
This
as
JR.*
President, New England Council
income.
than
Companies
\\fter
Banks Have
wrote
reported to stockhold¬
as
ers.
hit in
i
bilities offered by
Southwest Ijtilities Co.
resulted
counts
192G
Members N. Y. Security Dealers Ass'n
120
should investigate the possi¬
taxes
Treasury books
Est,
CAPITAL GAIN
amounted
in abnormally
highJHowever, it should not be asduring the war, since the sumed that utility earnings will
amount of earnings and capital increase
by the above estimated
exempt from excess orofits taxes amounts in 1946. In the month of
is now considerably lower on the
July net income of all Class A and
magazine
,
Teletype:
years
properties as fast as
the Treasury Department would
permit (in their tax returns) so as
Company,
and
in
their
down
,
its
the
1942-4 averaged well below those
of
1939-41.
But
unfortunately
Pulp and Paper Industry expects an excep¬
tionally heavy demand for Its products during the next'!
several years with European competition that existed before
A
the
Obviously
Common Stock (no par)
,
great deal of "water" had
count
(subsidiary) $1,890,000.
-
101,434 shares
The
aver¬
but of plant ac¬
preceding decade.
utility companies
have not been profiteering during
the
war—net
earnings i during
;
producing organization.
paper
taxes
nearly twice tho amount of state and local Imposts
or
aged only about 5 V2 % on net plant
investment plus working capital,
and k
A
Federal
prewar
period
Federal^
totaled ;only about $100-' duced by over 53%, or
$112,000,150 million.
000 based on 1944 figures.
How¬
A Study of:
Paper Company
Total
-
Utility earnings in 1943
Oxford
an
the
•taxes
Available:
LONG TERM
abnormally heavy share
of the. wartime tax burden.
Total taxes last year for Class A and B
electric utilities were
$678,818,000 as compared with $516,759,000 paid
to employees
(electric operations)
and $273,326,000 disbursed in
MODEL, ROLAND & STONE
■'
Th£
It is especially
pleasant for me,
a
banker by
avocation, to re-
icy
stone
part
that
stare
with
of
the
association
and
the
bankers
the
in
folklore
of
Since the picture is an
one, it is our problem
ers
to
do
banking, to
sion.
....
the
1
as
with
'
Fy profession I
.
am
agement
believe
ler, Boston, Oct. 11, 1945.
bank¬
businesses
(Continued
our
sound
engineer,
salesman, and in the long
that
Community Telepbone
I
Hallicrafters Company com.
Hydraulic Press Manufacturing
com.
5s, 1949
Telephone Bond & Sh.
7% Preferred
-
;
.
an
but I suspect that at heart I
Stat-
com-
Northern New England common
land.
erroneous
*An address by Mr.
Blackall be¬
fore the New England Bank
Man¬
Conference, Hotel
Chicago So. Shore &: So. Bend R.R.
of
the false impres¬
erase
.
of
general is
everything within
consistent
power,
heart
an
page
am
run
wax
1860)
Gilbert j. Postley
&
Co.
a
I
and
29
BROADWAY, NEW YORK 6, N. Y.
Direct
Wire
to
Chicago
\
:
JAMES M. T00LAN & CO.
./
67 Wall Street, New York
Telephone HAnover 2-9335
Teletype NY 1-2630
i
X
iVolume
162
Number 4430
.
Bowser, Inc.
COMMERCIAL & FINANCIAL CHRONICLE
*
1606 WALNUT STREET
ANNOUNCEMENT
PHILADELPHIA 3, PA.
Trenton Valley
*Great American
Industries %
y-v <£ •^ '
V
r.
,
THE UNDERSIGNED ANNOUNCE THE
DISSOLUTION
MR. PAUL H. ASCHKAR
Distillers
r i
|
•'(' ?•$
„
MANAGER TRADING
V
DEPARTMENT
OF THE
OF
OUR
BOENNING
CO
8c
TO TAKE EFFECT OCTOBER
'V, ;
KaiserrFr^zer Corp.
18. 1945
ALBERT J. WILLIAMS
Carter H. Corbrey
050 So.
•
Bought-*—Sold-—Quoted
:>*y
',,
&
tvi,
i
^r•»'-.v i
.
•
•
!■'
*
HENRY
Co.
Sprlng Street, fLos Angeles 14, Calif.
•'
£v >'•
'i^v
Teletype: LA-255
,r
C
"
JOHN
'-"J
D.
BOENNING. JR
PAUL A, HAFFNER
'■
R. O'CONNELL
•
iMichigan 4181
'
on
OF
LOS ANGELES OFFICE
*Du Mont Laboratories
^Circular
FIRM
Request
-
.
.
<
.
»
r;
HOME OFFICE
435*Sar La Salle street, Chicago 3, III.
J.E.Reilly&Co,
Members.
New
York
^$TATE:SS02;:'':
TELETYPE CG-99
c
boenning
,
Security Dealers Assn.
'
4Q Excb.
H,
iy
r,
.!
,
New York 5, N.Y.
members
members
philadelphia
new. york
curb
& co
stock
exchange
exchange
Bell
Private
System Teletype,
Wires
to
NX
1-2481
Chicago JhLoS
•
«■ -
Angeles
1606 walnut street. philadelphia 3. pa
we:are. pleased to announce that
Mr. Seymour M. Rosenberg
THE UNDERSIGNED ANNOUNCE THE
FORMATION
OF THE ABOVE
recently returned from the Armed Forces
TRANSACTION
ha$ become, associated with
Curb and Unlisted
-
our
trading
,■
(associate)
HAnover 9*4789
COMMISSION
FIRM
OF
A
OCTOBER
GENERAL
BUSINESS
IN
department
18.
1945 FOR THE
INVESTMENT AND
STOCKS AND BONDS.
Securities
HAROLD
S. Weinberg & Co
members
MICHAEL HEANEY, Mgr.
WALTER KANE,
SP WALL
Asst. Mgr.
new
york
STREET,
security
NEW
dealers
YORK
5,
HENRY
N; Y
H.
Curb
Exchange
Chicago Stock -Exchange
39
Broadway
Digby 4-3122
.'
New York 0
;
One Unused fTool of Management
NEW
WILLIAMS
i
R. O'CONNELL
PHILADELPHIA—PENnypacker
Teletype NY 1-1610
;
V
pOENNING. JR.
DICKSON S. BOENNING
JOHN
Joseph McManus & Co
York
D.
HAROLD J.
TELEPHONE WHITEHALL1 3-7830
Members New
F; SCATTERGOOD
PAUL A, HAFFNER
assn.
8200
YORK—COrtlandt 7-1206
!
/
v
We Suggest
We
Common Class^A"
•
Capacity—-900,000 barrels annually.
Book
•
value—around $18.
Good
•
earnings
all
through
/
from tax reduction.
Oregon's
\
.
huge: highway
ready to
MR. GARVIN K. SHIELDS
I
formerly with Goodbody & Co.
.
and Laird, Bissell & Meeds,
program
start.
Market ahout ! 1
;
that
announce
|
Company would benefit substantial¬
ly
•
to.
war
period.vV^/?^
•
pleased
are
is associated with
;!E
'
us
in
our
Circular available
Unlisted Securities Department
LERNER & CO.
POST
10
OFFICE
SQUARE
BOSTON 9, MASS.
Tel. HUB 1990
H t
CENTRAL NATIONAL CORPORATION
Teletype BS 69
•;4:22 East 40th Street, New York
LExington 2-7300
<
-
Teletype N.Y. 1-2948
v
.
Member
.
of
the
N.A.S.D.
:r.:
Kingan & Co., Inc
Common
Earned $1.6? in 1944.
Net quick
$7
'$>.sir
„
share.
*'r-;'/v**5
'
Selling under $6
THE
about
assets
per
per
ANNOUNCE THE
Newkirk &
'-'i'*.*'-}-
'■
UNDERSIGNED
FORMATION
OF
:
''
Company, inc. "
share.
60 WALL TOWER
NEW YORK
5, N. Y.
Telephone Whitehall 4-8144
AGENTS
Broadway, New York 4, N.Y.
Tel. WHitehall 4-6430
/
ACT AS
TO
PETER BARKEN
32
PRIMARY
OF
CLOSE
UNDERWRITERS
CORPORATIONS
AND
AND
TO
TRANSACT A GENERAL SECURITIES BUSINESS.
Tele. NY 1-2500
Louis
f
'
.
John
H. Newkirk, Jr.
F. Russell, Jr.
'
\
Offering of Federal
;
Public
Oct.
4
offering
through
was
made
Everett
october
eral Home Loan
dealer
scribed.
Oct.
15,
heavily oversub¬
The debentures
.
1945,
1946.
000,COO
Of
was
and
are
the
for
mature
dated
April
proceeds
$32,-
refunding
and
Sponsor
was
for
new
purposes.
.j.-
Hasbrouck
Newkirk
sentatives;
money
popular
funds
North-West.
2
repre¬
Metropolitan
for
and
mutual
desires
wholesale
1
York
WANTED
Representatives
of
hard-hitting
1
for
FULL
Pacific
please. Our organization knows
O.
N. Y.
Box
6.
26, Trinity
by active Over-the-Counter
house.
details
of these vacancies. Address 8RP.
$36,500,000
Wanted 2
investment
New
15,
L.
17, 1948
Wholesale
Banks to dealers
bapks. The issue, of¬
fered at par, was
Iaccaci
l. maas
on
Smith,
Fiscal Agent, of $68,500,000 0.90%
consolidated debentures of Fed¬
and
Paul T.
Max Nydeggar
Nome Loan Bk. Bonds
,
-
444(44b.
Favorable arrange¬
ment.
Address
R.
A.
K.
Box
26
Station,
Trinity
Station,
N.
Y.
C.
THE COMMERCIAL & FINANCIAL CHRONICLE
J824
Thursday, October 18, 1945
Savoy - Plaza, Inc.
SPECIALISTS
V
*
W.
.
-
'/■/• j,../■///,/
/V:
in
•
> "
Since
1929
•
V* /
Seligman, Lubetkin & Co.
V// '■•/'>::'■■
Members
Hotel St George, 4's
-
Broad
41
nothing
★
curities, there
is
no
Competition from
stock, the price should be in
carry
buildings
should be nil because of the in¬
SHASKAN & CO.
Member* New Yorb Stock Exchange
Dlgby 4-4950
;Boll Teletype NY 1-953
Ne buy and Sell:
Certlflraten
■'/'/
mid
construction will
*
price
;
:
Mort^agei
comparable
property should be helped mate¬
rially/ Unfortunately, they were
they occupy, difficulty
space
feels
writer
that
this
is
bonds,
count
operations
MARKETS:
v
Midtown
•
'
;..p
■
merce
V*.
s.i//Vy///::
w.
New York Majestic
/,/■'_
165
'
w.
'
=
s.
4 l/t /58
.
Teletype SF 61 & 62
The
4
/
•/:
Commerce
SPECIALISTS
IN
Bankers
'
,
'
Alms
La
/
-
/>/;»/
ws
Hotel
Salle
Co.
/
Building
3/60
"B"
Madison
/ V.; Chicago
4/47
Hotel
"// '
///
Transportation Bldg., Chgo.
(V. T. C. and
Land
Trust Units)
FIRST LA SALLE CO.
So.
La
Salle St.,
Chicago 3, III.
Tel. Central 4424
1.
Tele. CG 660
war
r o n
f
the task of
vi
sing
time
range
prime
importance in
1948.
that
peacetime
a-r
La"rence a. Tanzer
production
objective
in
we
the
tax
•
&
Co.,
—
Ames, Em¬
Inc.,
105 South La
Salle Street, members of the Chi¬
Stock Exchange, announce
that Walter J. Mala testa has be¬
cago
come associated with
them.
Mr.
Malatesta was formerly assistant
director of the Chicago Sub
Region
t of
the
War
Production
Board,
with which agency he served three
and
one
half years.
expedite the adop¬
income > tax rate
that
the
at
present;
tax
rate
It
schedule.
after computing the tax
program
The long-
should
provide
a
/%: /
employment
money in the peace
The
Committee
the
Association
opposition,
tax rates
to
recommends
continue
graduated
is
the
of men
and
years. //
v-;-/v
In November,. 1944, the recom¬
mendations of the Committee on
its
income
on
corporations, and that
corporations be subject only to
a
flat rate corporate income tax.
program
"recommend
greater
CHICAGO,- ILL.f,
pro¬
ceed without untoward delay.
which
Waller Malatesla Is //
With Ames, Emerich i
may
individual tax relief
as
aid
an
to
greater
employment
chasing
your
has
power,
reexamined
the, Association's
tax
policy and recommends
program
to take effect
1946,
well
as
as
a
and
pur¬
Committee
a
tax
Jan.
on
1;
longer-range
Federal tax
program.
/
*
-
'
/'
'
.
transactions
of
has
and
strong
HOUSE
'f,
'
-
with
'
*
record
successfully consummated
reorganization.
It
elsewhere.// He., is
Securities
has had
influential
business,
will
embrace
pre¬
his
long and success-^
a
connections
experienced
and
HERE
or
IS
AN
OUTSTANDING
contribute
can
in
throughout^ the
every
money-making
OFpORTliNlfV
upwards
inactively associated with
of
this
phase
.
of
ability
be experienced in the Securities Business.
be
based
THE
PROPOSED PLAN
the
upon
Securities
&
to
the
principles
rules,
and
Exchange Commission.
and
,/,
.
this
ethics
regulations
one
and
Such
OF«OPERATION of
highest
Business, conforming
to
$100,000,
firm.
not
the
be
can
become
need
organization will
of
the
Securities
requirements
/ ,/
,
wore
or
can
individuals
of
the
i
,
Bank and other highest references
given and required. /,
Address:
The
Commercisd
25 Park
Box SL'1018 '
and
,/
v
Financial. Chronicle
Place, New York 8, N. Y.
;
Netherlands-/
2.
Excess
The
was
Profits
excess
adopted
should
Tax
profits
as
a
;
/
tax,
wartime
nounced the signing of a loan
agreement with the Kingdom of the
Netherlands, providing for a line of credit of $50,000,000 "to finance
the acquisition in the United States of
specified United States agri¬
cultural and manufactured products for
/j
V
This
announcement
firmation
of
the
is
in
be
recalled
that
represen¬
the
ure,
an-*
nouncement adds:
"The
specified
products
meas-:
credit
is
to
be
available
until June 30,, 1946./ Advances
under the credit are repayable in
sixty approximately equal semi¬
annual installments, the first of
which
becomes due on July
1,
1946. The Kingdom of the Nether¬
lands will have the right to prepay/bn any interest date all or
any part of the principal of any
seek¬
ing a $10,000,000 credit.
The Export-Import Bank
there¬
•
"The
Finance Minister Lieftinck
and
services consist of those for which
requisitions had been filed and
approved before V-J Day by the
Kingdom of the Netherlands with
issued
note
to the loan
such prepayment
applied to the installments
pursuant
agreement, any
the
Government of the United
States under the provisions of the
to
be
of
principal in the inverse order
so-called 3 (C) Lend-Lease Agree¬
ment between the two countries,
of their maturity.
"Advances under the credit will
but which had not
been contracted
for prior to V-J Day.
Purchases
financed
under
credit
by
may
United
curement
riod
advances
of
Government
channels
60
days
during
from
pe¬
that such purchases
Dayi
of the
indU
will be
troactive
to
Jan.
1, 1945, so that
the smaller companies might avail
$10,000 to $25,000, effective the law to protect the taxpayer
beginning with the tax year 1946/ against great variations in year to
At the time the bill was being
year earnings.
In order to main¬
considered this Association urged
tain this protection it is recom¬
that the increased exemption be mended that the
provision permit¬
applicable for the year beginning! ting unused excess profits credits
Jan. 1, 1945.
Assuming that the to be carried back for two year3
excess profits tax will be
repealed be retained even after the repeal
as of Dec.
31, 1945, this increased of the excess profits, tax. and that
tax exemption should be made re(Continued on page 1861)
'
the rate of 2%%
the unpaid princi¬
Jan.
pro¬
a
interest at
annum on
pal balance outstanding from time
to
time, 'interest is payable on
1 and July 1 of each year. •
the
V-J
However, representatives
Netherlands
Government
cated
bear
per
be made through the
States
Dec.
from
through private channels
after/*-,
Dutch
were
■
partly - through American
private trade channels during this
period and, of course, entirely
the "Chronicle" at the time. It
will
..';
—
made
tative by the Netherlands Finance
Minister last month and published
in
in the metropolitan terri¬
*
*
1
cori->g>
information
given the "Chronicle's"
i
which
use
tory of the Kingdom of th& Netherlands."
be
repealedas of themselves of the advantage of
this
exemption which the
Tax
31, 1945. -//./,/./ /\
Taxation * and
PublicRevenue
;
The Tax Ad j ustment V Act. of Adjustment Act of 1945 originally
with regard to a
set out to grant/
Federal Post¬ 1945, adopted by Congress in
July]
war Tax Program were adopted
1945, authorized an increase in ■/ The unused excess profits tax
by your Board.
In the light of the excess
profits tax exemption credit provision was included in
the cessation of hostilities and the
need for immediate
corporate and
,
OVER-THE-COUNTER HOUSE,
financial
process
at the
time pointed out that the Nether¬
revisions be made in the
/Your
:
Z
»'
to do si wholesale and retail business.
lands East Indies also
maximum rate of 30% or less for
the year 1947 and 25% or less for
order that re¬
of
Taxation and
under the present law.
and
to
no
be made
becomes
conversion
Oct.
recommends, instead, that for the
year 1946, a flat reduction of 15%
re-
Indus try
to
lower
a
corporate
s
of
one
order
recommends
our
structure
on
corporations and have it apply
in the year 1946, your Committee
Federal tax
rates
on
"With¬
for
on
t
and
Exemptions
Corporate Income Tax Rates
tion of
ending
of the
both
the
Loan |to
A. Corporation Taxes
In
the
and
and
Broadway will/have
purpose and the
Committee
;
\
PARTNERSHIP
this
Industry Association of New York
Ar-
With
sudden
Hotel
Chicago
Individual
Mulla ney,
New York is
securities
:
and
in
Individuals .who
actively
issues
estate
Repeal of. the Capital Gains
(4)
Tanzer,
Chairman:
4.'
Tax;
of Tanzer and
—
real estate
Bismark
1-1440
Export-Import J?ank Announces $50 /Million; Credit for
of Taxation Committee, of. the Com¬
||/i|Purchases in U. S. ;It;;
New York, Recommends (1) a Flat
WASHINGTON,' OCT. 17.—^The Export-Import Bank "has jank
of which
Laurence
erich
-61
for
released the following report of its
P u bli c Rev¬
<$>-
nold
11
bonds.
$35,000
10
enue,
—
Income
50%.
Would Retain Present
holding" Collection Method.
Montgomery St., San Franci&co
Bell
.
Hotel St. George about $150,000.
for
and Industry Association of
Normal Individual
Broadway Building
/
■
4/56
-
positively and definitely established.
sinking fund
Tax and (5) Elimination of "Declared Value" and Capital Stock Taxes.
Favors a Flat Reduction of 20% on Individual Income Taxes, With
an Eventual Reduction to a Rate in the
Highest Bracket Not to Exceed
■
J. S. Strauss & Co.
155
dis¬
offered,
leverage
real
Reduction of 15% in the Corporation Income Tax Rate; (2) Repeal
of the Excess Profits Tax; (3) Exemption of Dividends From the
'
Enterprises
5/64
r ' '
.
'
5
Teletype NY
*
'
v
,
important
is
past,
career
advantage of special tax benefits
wh ich expire this year;
//
Regular sinking fund operations
will
take
place
shortly
in
61
Broadway and Hotel St. George
estate
large
are
the
Investment
before the end of the year to take
a
Laurence Arnold Tanzer, Chairman
>■
•
THE HEAD OF THIS ORGANIZATION
A Program of Tax Revision
Broadway Motors Building
■/■
they
more
large and
in
ful
/'■
4-6/48
■-
the
of
which
offer
special
of
'
'
.
ESTABLISHED
of
"Street"
Dlgby 4-2370
Teletype NY 1-1942
:
because
at
to
seem
several
see
in reletting the space.
ensue
I
*
vailing opportunities
frozen at very low rent levels.
We would not be surprised to
that when the Government vacates
attitude
and
that
such
space will quickly
be absorbed
at
much higher rents: than
the
SIEGEL & CO.
different
We do not agree at all with the
pessimists on downtown (financial
district) real estate.
They argue
Government is paying,
Financial
district
real
.
'
INVESTMENT BANKING
OLD
Speaking of leverage possibili¬
much
mean
wrong
REAL ESTATE BONDS
in
bonds
any relief from frozen rents, this
The
PRUDENCE AND
•
STREET, NEW YORK
"
■,
/*,,/,
sections of the city.
tures.
the
IN
other
than
appreciation
higher rents in the newer build¬
ings compared to existing struc¬
will
FIRM
V-v
•
OPPORTUNITY FOR
excess
ties, the New York Majestic bonds,
selling at about 26, may be worth
looking into.
If the OPA grants
new
f;
,
new
ability to finance new construc¬
tion, plus the fact that the cost of
Member* New Torlt Curb Exchange
in
is
Considering earnings and
the properties securing some real estate se¬
reason why the bonds should not sell at par
of par.
4
HA 2-6470
of
and where the bonds also
-
89 Broadway, N. Y. G
49 WALL
HAnover 2-2100
remarkable about this action.
so
intrinsic value
the
Hotel, 4's
TITLE CO.
Dealers Association//
lot of comment recently about the price rise
In the humble opinion of the writer, there
a
estate securities.
real
N.Y. Athletic Club2-5's
40 EXCHANGE PL., N.Y.
'
Walter Murphy, Jr.'& Co.
Incorporated
York Security
Street* New York 4
There has been
★
Mortgage
*V;-
'
Real Estate Securities
7th Ave. 4J^s
★
New
-
•
4H's
(Park Central Hotel)
Beacon
3rd
&
v'V ''. V *V"' i
\ Circulars on request for brokers and dealers' only.
Primary Markets
870
1st, 2nd,
'
y
SECURITIES
165 Broadway,
//-C.
I
Chanin Building Corp.
Real Estate Securities
REAL ESTATE
2nd Inc. 3-6s, 1956 W/S.
.
"The
provisions
of
the
loan
agreement relating to the rate of
interest and maturities are identi¬
cal
with those of the Lend-Lease
Agreement
between the United
States and the Netherlands which
became inoperative as of V-J Day.
is so, because the credit is
This
to be used
specifically for the
quisition of United
ucts
and
ready
the
services
been
States
which
had al¬
requisitioned
Lend-Lease
ac¬
prod¬
under
Agreement
approved prior to V-J Day.
and
.
y
■'"The Export-Import Bank
ready to sell to commer¬
„
stands
cial banks
ate
or
terms the
others
notes
on
appropri¬
which
it
will
receive from the Netherlands pur¬
suant to the agreement. To fur¬
ther this purpose, the* agreement
provides that such notes may be
divided
or
required."
consolidated
as
may be
Volume
162
.Number 4430
THE COMMERCIAL & FINANCIAL CHRONICLE
Babson Discusses More Industries
!
He Comments
BABSON
f
week:
_
;
awhile,
is. diffi-
cult enough to
;
comment
-
on
factories, raw
^ materials and
,
above
•
in
'
':
and
the
competition
I would rather in¬
something
else.
_
"'
'
Notwithstanding
'
of"
" ' ■'
^
•'
the
for
most
mining
products, , but
;(^Oils
^•
they are ex- ■"V I, am not worried - about,
.
v
\ cellent
■
Roger
W.
Babsoo
;
t i
infla-
-1
will
large
forecast
not
department
are
nailed
will
fare
to
down
how; the
which
stores,
one
corner,
years;
during coming post-war
but I am very bullish on the
chain
stores.;;; These
include
/
T
.
„
This
y
and
freedom
Motion Pictures
news"—will
out
has
prospered
the war. For
with
_
of the
latter
paper
a
future
again.
papers,
to
soon
print
"all
the
be able to
step
believe
I
that
de¬
energy
Y...
.
.YY
tobacco
I
as
in¬
friends, how¬
this industry.
bullish
am
the market
on
as a
whole.
Perhaps the safest method
would be to diversify
among all
1;hese leading industries—instead
of picking winners. By all means
do
not
it is
put
in
money
much
too
of
your
industry unless
any one
merchandising, which profits
from all industries and hence
of diversification
is
a
itself.
in
Textiles
-
The textile
the
on
the
my
atomic
Miscellaneous
I
form
/.'•/• / Y
bearish
of
Most of
-
myself,
forecast
to
watch
velopments. '..
com¬
portfolio.
smoker
a
ever, are bullish on
Y/'Y
been
the
his
in
position
no
dustry.
Railroads
have
,1
steel
Tobacco * /
"
being
in
am
to
stocks
~Y
Not
manu?
facturing group.
steel
V
products.
I
bullish
on
the
industry should have
railroad
industry since last June
at
good
SCHEN LEY DISTILLERS CORPORATION
knd
yet
postwar year, but after this both
(NOTE— From timetotime, in this space,
there will appear an advertisement which
as
changing
see
no
for
these
reason
position
my
transportation
hot bearish
,
on
companies.
on the
industry.
railroad
I
least
ten out.
:';;j
level
present
a
do
or
"feast
ting
will
during the postwar period/
Every
markets
hold
should expand and their
are
help
investor
•
again get¬
cut
continue
to
proportion
of
By MARK MERIT
This
o
recorder
fascinating
Charles E.
of
rector
BONDS YkY?
his
>.
(
5*'
5
'
f
'
*
}
/
'v
'
1
fi
r--'
a
Dr.
Dutchess, Medical Di¬
Schenley Laboratories,
\i:.
/.
was
really remarkable about the de¬
velopment of Penicillin"? Here is
ready
fact that
' v '
spent
our
We asked the doctor, "What
magazines and printing in
"
with,
Schenley.
LOCAL STOCKS
V
has just
hour
Inc., producers of Penicillin-
MUNICIPAL BONDS
news¬
The
Today.;.!
utilities.
most
may
Alive
in
operating costs should decrease,; v operating utility securities; but all
iBUf CORPORATE
CORP.
,
once
reasonable
a
SCHENLEY DISTILLERS
:
'■ '
■.
fair treatment. < Any
taxes
better
r'.'
we
hope will be of interest to our, fellow
Americans. This is number 104 of a series.
famine"
or
Utilities
The utilities
The rubber stocks should hold
their
It is
industry. Y Y Y-
"
Rubber
I
exceptionally
one
demands and profits should flat¬
am
equip¬
■
|STATE AND
'
industry which has been
so
handicapped during the warthrough lack of workers, paper
industry
tremendously
pulp
be
the
This
chains and variety chains,
—especially the so-called "fivestores.
few
paper
therefore,,
burden
developments^
energy*
Publishing
the
grocery
cent-to-a-dollar"
atomic
on
of
any
oil shortage or strikes.
industry has no reconversion
problems. It will profit by diver¬
sification through chemicals, plas¬
tics, synthetics, etc. Hence, I am
still
reasonably bullish on the
oil stocks for the present.
The
long-pull outlook depends partly
profit from atomic energy devel¬
opments.^
Merchandizing
Y' >
ani,
ment
The
Some also may
domestic
should
panies should show better profits.
Everyone is justified in having a
/.■; ■
.
post-war
hedges.
o n
for
tax
v
blessing to the manufacturers and
office
equipment which the government
may press for sale, I am optimistic
on
the industry and believe the
stocks are reasonably priced. This
comment also applies to the fur¬
niture industry.
vw
duced
Products^
manufacturers; but should
.large
secondhand
Steel
After the complete reconversion
of the nation's economy and a re¬
'
Large imports of pulp may be
expected from Norway, Finland,
and possibly Russia.; This is not a
stocks
,
■'.?
Office Equipment 1
')
amount
prices will
less
suits
Y
ground.,; Postbe
however,
exceptionally
They surely
; 5
convertors
not
war
last
Paper
ment
ground.
what is below
\
of
comments
some
ahead.
"break."
good "omen
vest
Hence,
I 1 do
attempt to
a
lower- earnings
must be expected. Furthermore,
the industry is faced with govern¬
'
make any predictions as to
-
v
of television.
V finished goods
;:
my
have
years
deserve
}
_
It
good
Atomic Energy \
on
PARK, "MASS.—Continuing ^
•
•»>'; Mining
•
general
ms
„i
•
"Not alone the
response:
an
alert scientist observed
something unusual
on a contami¬
plate and realized its signifU
cance; nor that he proceeded to
prove the significance and possi¬
nated
Robinson-Humphrey Company
,'.V-
RHODES-HAVERTY
Established
BLDG.
.
i
1894
'
' '•;
■
•.
ATLANTA
Teletype AT 288
I,
•
,
;
;
GEORGIA
Long Distance 108
bilities of his
discovery, for the
history of science is full of stories
just like that. In this
case
the dis¬
had neither the time
coverer
nor
the facilities to proceed with the
y
development of the seemingly won¬
derful n^w
M
r.trr}
•><Y
<5
took to
too
some
later when colleagues under¬
years
'
substance, whose exist¬
he had discovered. And
ence
\
develop this material, they
soon came
to the end of their
and had
to have help.
They sought it and obtained it
resources
from the Rockefeller Foundation.
Company, Inc.
BANKERS
INVESTMENT
Members New York Stock
Exchange and
Other Leading, Exchanges
"But
—the
single
even
$2 Gumulative Preferred Slock
INVESTMENT SECURITIES
•
Home Office Atlanta
•
—
Government
needed
many
more
of
a
indi¬
than
a
United
bureau, and
"Early
specimens
flown
of
Penicillin
the Atlantic in
across
bombers to expedite the develop¬
Without Par Value
ment. The world
alone
money
Phone ID-l 59
was
did
aflame and
not
A
count.
method for the quantity produc¬
ZS5SSZS5ZZSZSSSSSESZSSSZS2SZS2ZS2222Z - TZSZZai
-
more was
international cooperation.
were
BROKERS OF BONDS, STOCKS, COMMODITIES
Private Wires
institution
States
UNDERWRITERS AND DISTRIBUTORS OF
something
cooperation of
vidual scientists and
tion of this precious
product had to
be worked out. So behind this de¬
velopment went the
of
resources
the United States Government..
quickly followed by the
Commonwealth Life Insurance Co. Stock
Price $ 17.50 per
Bought—Sold—Quoted
Information
on
BANKERS
3
share
plus accrued dividends
I
.
.
.
saving of lives.
"The remarkable thing, then,
which
was
was
contributed when it
was
urgently required. It had to be
done, and everybody cooperated
LIFE BLDG.
LOUISVILLE 2, KENTUCKY
Distance 238-9
and thousands of hours
sums
the tremendous cooperative effort
INCORPORATED
Long
huge
the
BOND
1st FLOOR, KENTUCKY HOME
of enterprising American business
firms, who were willing to expend
of manpower towards one end
Request
.
resources
and got it done!"
*
Yes, Penicillin might have been
Bell Teletype LS 188
developed surely, but much more
slowly, under normal conditions.
Under
Prospectus
SPECIALIZING
BROKERS
IN
DEALERS
AND
on
the
stress of the existing
however, research and
development were accelerated and
Request
emergency,
SERVICE TD
ON
the
world
got Penicillin when it
needed it most. Men
PACIFIC
COAST SECURITIES
of
QUOTATIONS
'
1
HANDLED
EXECUTIONS
AND
OVER
OUR
DIRECT
WIRE
■
Paine,Webber, Jackson
ESTABLISHED
MEMBERS
NEW
20
PINE
NEW
STREET
YORK
5
YORK STOCK
&IRB
YORK
EXCHANGE
,
1879
&
Curtis
15DC RUS3
BAN
BUILDING
FRANCISCO
wonder
working agent—
Salute!
FREE —Send
MARK
4-
a
postcard
MERIT OF SCHENLEY
or
letter
to
DISTILLERS
350 Fifth Ave., N. Y. I, N. Y.,
and you will receive a booklet containing reprints of earlier articles on various
subjects in this series.
CORP.,
EXCHANGE
SAN FRANCISCO STOCK EXCHANGE
alive to¬
PENICILLIN.
Y
Kaiser &
NEW
this
PROMPTLY
PRIVATE
are
day, thousands of them, because
the commercial & financial chronicle
1826
Analysis Available:
Trading Markets in
Delta Electric
Fuller
Mfg.
We
j
:
Mellon Evans, wilh&ssure
United Stock Yards Pfd.
'
full participation in the favorable
INCORPORATED
1922
©
Salle Street
120 South La
\
CHICAGO
'
Telephone Dearborn 1421
831 South
1
f
•
■
,
CARTER H.C0RBREY& CO.
Association
Member, National
0/ Securities Dealers
-
Wholesale Distributors
Middle West
'
Pacific Coast v
—
/©©i©©
For
v;©.:
•
MARKET
SECONDARY
DISTRIBUTION
650 S. Spring St.
135 La Salle SL
CG 99
State 6502
Mich^ai^4181
IIIICt
Teletype CG 864
Members
Exchange'A,;
Chicago
Stoclc
Chicago
Board at Trade
.:
:
Utilities
Telephone
Direct Private
Bell
4, ILLINOIS;
Randolph 4069
Wire to New York
10
dividends from 1936—
published bi-monthly
Single copy (150 pages), $10;
annual
service
(six
revised
issues), $50—F. W. Stephens, 15
William Street, New York 5, New
Edited
More
Steel & Wire, Com. ;;
•Gibson Refrigerator
Co., Com*
Globe Steel Tubes Co.,
Com.
•Oak
Mfg. Co., Com. A A
•Wells-Gardner & Co., Com..
•Prospectus Available on Request.
Paul H.Davis & Co.
Established
1916 '■
x
Bissell
Bank
Stock
Extras
Broadway,
Meeds,-120
New York 5, N. Y.
Also
a
new
Seem
bulletin—Laird,
&
bulletin
York City Bank Stocks.©
19 New
©News & Views—current devel¬
opments
in
certain
insurance
stocks—Butler-Huff
&
Co.
Teletype CG 408
Tel. Franklin 8622
Indianapolis, Ind.
Rockford, III.
-
Paint
Bank
America
of
—
Also available is
a
analytical
memorandum
gomery
Calif.,''1
Also
Central Coal & Coke
of
&
the situation in New York City
on
265
Mont¬
Stireet. San ^Francisco 4,
f
"
" ;>
»
Bank
available
are
memoranda
Set Screw Com¬
Ferry Cap &
and Gleaner Harvester Cor¬
poration.
pany
Corporation
.
,
,
S. A.
&
of the bank
and' its predecessors—First Cali¬
fornia Company, Inc., 300 Mont¬
gomery Street, San Francisco 20,
.
on
Blair &
Co.—descriptive memo¬
interesting low-priced
Analysis—W. J. Banigan & Co., 50
Broadway, New York 4, N. Y.
j
Fresnillo
Company—descriptive
this/Mexican
on
Corp.—Circular
on
in¬
teresting possibilities—Hoit, Rose
74 Trinity Place, New
York 6, N Y.
Also available Is ri memorandum
on Thermatomic Carbon Co. and
a
new
Cola,
of
report
a
analysis of Panama Coca-
Chicago 3, 111.
Consolidated
Class
Cement
A—Bulletin
on
velopments—Lerner
Post
Office
&
Square,
Corp.
recent
Co.,
the
Co.—Detailed
company
which
study
Boston
Mass.
Also
available
are.
circulars on
Central Iron & Steel, Oregon Port¬
availablem are
Also
statistical
and
brochures©
-
information
Garrett
on
for
Corporation
/Mississippi
Co.
Glass
Recent
—
Co.,
&
;
National
Radiator
Co.—Anal¬
ysis, for dealers only—€. E. Unterberg & Co., 61 Broadway, New
York
COMSTOCK & CO.
CHICAGO
4
(
Dearborn 1501
231 So. La Salle St.
Consolidated
Gas
Circular—De
Tornga,
Bank Building,
Hicks & Price, 231 South La
Young, Larson &
Grand Rapids National
Grand
Rapids 2,
and
Utilities
Corp.—CircularsSalle
6, N. Y.
&
—circular—Adams
Co.,
231
South La Salle Street, Chicago 4,
111.
is
available
Howell
on
memoran--
a
Electric
Motors
and American Service Co»
/■': Pollak
Power'Co;'©
on
North West
:v/
Also
Lamson
bilities for appreciation for this
company—Ward & Co., 120 Broad¬
way, New York 5, N. Y.,
Also
available are late memoranda on:
Great
American
Alabama
Industries;
American
Mills, Inc.;
Hardware; Douglas Shoe; TACA
study
a
and
of
New-
a
company • established in
which has arrears of $67.50
.
the/5%
$100
preferred
par
Stock—ask for analysis M.C.P.
Michigan
Port.
'Cement;
Company© Study,
as
a
.
Also
statistical
available©are
memoranda
on
Liberty Loan Cor¬
Ox¬
ucts.
stock
Company—analy-^
Minton & Company*
South La Salle Street,
Chicago 4, 111.
I
Inc.,. 209
Chemical;
ford Paper; and Purolator Prod-.
Roi
TI, K. Porter
sis—Sills,
Window- poration; Maryland Casualty Co.,
and Serrick Corporation.
American
Airways;
Le
is
Ohio;
&
State
and speculative possi¬
of outlook
Glass;
available
England
1862
Sessions Co.—Study
&
Manufacturing—analysis^
Baltimore
on
of
sound specu¬
lative
purchase — First
Colony
Corporation, 70 Pine Street, New
York 5, N. Y.
Also • available are studies of
Pittsburgh
Railways,
Simplicity
Pattern Co., Inc., and Winters &
Cramp ton.
Public
National
Bank
Trust
&
Company—Analysis—for dealers
only—C. E. Unterberg & Co., 61
Broadway, New York 6, N. Y.
;
Also notes on the Sept. 30,1945,
statement.
i
,i;
'
Schenley Distillers Corporation
—Brochure
of
articles
they have
been
running in the Chronicleto Mark Merit, in care ofSchenley
Distillers
Corporation,
write
Fifth
350
Liberty Aircraft Products Cor¬
New
Avenue,
York
1,
n.;y
poration and Autocar Company—
descriptive
pamphlet
—
Model;
Roland & Stone, 76 Beaver Street,
New York
5, N. Y.
Shakespeare Company—detailed
•brochure—Lewisohn
&
Co.,
61:
Broadway, New York 6, N. Y.
cular—Herrick, Waddell & Co.,
Inc., 55 Liberty Street, New York
5, N. Y.
Street, Chicago 4. 111.
Mich.
Locomotive
Dunningcolor—Descriptive
Teletype CG 257
American
tion
—
Hardware
special
analysis
Corpora¬
—
Amott,
cular—J. F. Reilly &
cir¬
Co., 40 Ex¬
change Place, New York 5, N. Y.
Firebox
Co.—Cir¬
cular
discussing* attractive postwar possibilities—Amos Treat
&
Co., 40 Wall Street, New York 5,
N. Y.
Southern Pacific System—Orig¬
inal
W.
Benkert
8c
City.
United Printers & Publishers—
Memorandum—Buckley Brothers,.
1529
r
analysis—A.
Co., Inc., 70 Pine Street, New York:
Walnut
Street, Philadelphia
2, Pa.
Bell
Long
Consolidated Gas
—We Maintain Active Markets In—
CHICAGO SO. SHORE & SO. BEND RR. Com.
The Chicago Corp.
MOUNTAIN STATES POWER CO.,
&
Salle Street,
Com.
on
Request
DEEP ROCK OIL CORP. Com.
HICKS 6- PRICE
Members Principal Stock Exchanges
Chicago Board of Trade
H. M.
Incorporated
231 SO. LA SALLE ST„ CHICAGO 4
York
Office
-
1
Wall
So. La
Salle
Telephone State 8711
Randolph 5686—CG 972
New
Byllesby and Company
135
St.
New York
Philadelphia
Co., 231 South
Chicago 4, 111.
&
P.
R.
La
Analytical
Rouse
&
&
Co.,
discussion — Steiner.
Co., 25 Broad Street,
N. Y.
Pittsburgh
Minneapolis
Utilities
memoranda
Stoker.
Gear
on *
Stand¬
\
Harry Taylor With
Ranson-Davidson Go.
Inc.—
(Special
Chronicle)
to Thk Fintanci/u.
CHICAGO,
ILL.
—
Harry
A.
Taylor, formerly trading manager
of the local office of the Crummer
Teletype CG273
Midland
Also
Grinding Machine Co. and
ard
Co., 209 South La
Mallory
New York 4,
Street, Chicago 3
'
only—
Salle Street, Chicago 4, III.
v
,
Co.—de¬
Company—Report—
Magnavox
Cruttenden
Circular
Lumber
tailed brochure for dealers
Comstock
Utilities Corp.
,
National Terminals Corporation
—Raymond &
Co.,
148
Street, Boston 9, Mass.
land Cement.
The * Chicago
>
120
South La Salle Street, Chicago 3,
I1L
& •:"
analysis—Gaswell
Lipe-Rollway Corporation—cir¬
American Forging and Socket—
$
operates
de-.
10
9.
Fred W. Fairman & Co., 208 South
La Salle Streets Chicago 4,11$'
Also
v
common
Corporation — memoran¬
dum—Kitchen & Co., 135 South
utili-1
companies— /
key transportation centers—Kneeland & Co., Board of Trade Build¬
ing, Chicago 4, .I1L r"
on
Cliffs
'*
realization
and
restaurants, serving the public at
Co., 49
Wall Street, New York 5, N. Y.
'
is
ties
dum
lar—Walter Murphy, Jr. &
available
Distribution, prompted
of opinion pointing
consensus
near-term liquidation of
& Troster,
Lawrence
Also
«•A9V#
Silver
Mine—Shepard, Scott & Co., 44
Wall Street, New York 5, N. Y.
Corp.—Circu¬
Savoy Plaza, Inc.
TEL 2-3349
WIIT
and Magnavox Company.
on
Building
All*
"
Franklin Railway Supply Co.—
,
speculation in financial under¬
writing—Du Pont, Homsey Co.,
Shawmut Bank Building, Boston
9, Mass.
Chanin
LINCOLN t. MB.
dealers
,
history
Calif.
randum
Tint Nation at Bank Bid*.
Values and
by
l
_
a
Also memoranda
of America N. T.
—-dividend
"•
on
.
.
available
Utilities Co. and Portland Electric
outlook—Walston,
Goodwin,
Also
Bank Stocks.
—
several
discussion
Corporation
"
.
,
Amalgamated Sugar Company—
Hoffman
26, Mich.
of
comparative
companies of¬
fering
speculative
attraction —
Brand, Grumet & Ross, 120 Broad¬
way, New York 5, N. Y.
Industry
on
analyses of
are
summary—Huff, Geyer & Hecht,
67 Wall Street, New York 5, N Y.
La Salle Street,
Howard Aircraft
■
.
Interstate
California, • 210
West
Seventh
Street, Los Angeles 14, Calif.
figures
Parx;
Rayon and New Bedford Rayon.
Stock Exchanges
Chicago Board of Trade'-'
Chicago 3
available
Also
Third
on
Quarter Statistical Comparison of
Fashion
on
Liquidometer Corp., Delaware
Members Principal
10 So. La Salle St.,
v
-
BAST
to
Electromaster
Inc. — Recent
report — Mercier,
McDowell &
Polphyn, Buhl Building, Detroit
circular
circular
detailed
a
N. Y.
and
|§j I
t'
Baker-Raulong Company—^An¬
alysis of condition arid post-war
prospects—F. H. Roller & Co.?
Inc., Ill Broadway, New York 6,
and earn¬
years,
Imminent—New
Central
memoranInternational Detrola.
on
Hajoca
highs
with s monthly
_r
Corp., Com*
tO
fill}
and Wellman Engineering Co.
$1—Gaylord Wood,
Indianapolis Ind.
trial,
York-
System CG 537
•Burton-Dixie
A
—
and
ings
-
ST*
208 SOUTH LA SALLE
CHICAGO
Barometer
Theory
lows for
and
A study of Midland
»* ©
-V ■■
Arizona Edison
Also
Exchanges,
Write For M-3—
MltAtl
report
Shelter Manufacturing Corp.
<
NewYork.
up-to-date graphs covering vir¬
tually every active stock .listed on
the New York Stock and Curb
Midland Realization
to senv
Co*—Descriptive
Lubetkin &
Co., 41 Broad Street, New York 4,
».
book of stock charts
Midland Utilities
,£;tv
\'
Foundation ' Co.;
Dow
: :
-TEL DEARBORN 0500
.
Circular—Seligman,
Arbitrage.
Graphic Stocks—Comprehensive
showinsg 900
,
t:!*
<//'
Inland Building,
FredJ.FairmanCo
um
i
Co., Inc., 150 Broadway,
New York 7, N. Y.
memorandum
a
'
,
Chicago 4, Illinois
14. CAL.
Baker &
Chicago, Rock Island & Pacific
weeks'
'£
-
.
on
':
request
on
IJorL SloeI Siclaoft eutd Ctucafo Slocl Sijuutf
Also available Is a
d
ft is understood that the firms mentioned will he pleased
I'
interested parties the'iollowing literature:
weekly service predicting future
trends in the stock market—Four
SINCE 1908
available
i,
Also available is
LOS ANGELES 14
CHICAGO 3
*' •'
,
Dealer-Broker Investment
Desirability of Railroad Securi¬
ties
for Investment—reprint
of
article by Arthur C. Knies, part¬
ner in Vilas & Hickey, 49 Wall
Street, New York 5, N. Y.
UNDERWRITERS
;
-
Recommendations! and Literature
;j;>
report
Spring S«ra»4
LOS AMCEUS
j
I
Quoted
—
.
209 South La Salle Street
,'t
.
209 SO. LA SALLE ST., CHICAGO 4, ILL.
3
•
CRUTifnocn & Co.
W.mhr, Yl.m
TEL TH1NITY 6345
Tele. CG 271
Tel. Randolph 6960
'
Members Chicago Stock Exchange
r,
.
*•"
Common Stock
Annual
SILLS, MINTON & COMPANY
C. L. Schmidt & Co.
Sold
—
,•.■' •
•The Magnavox Company
<v
Established
"V
of
management
postwar market for railroad equipment.
broad
:
n.
Inc., under the direction of Thomas
H. K. Porter Company,
Globe Steel Tubes
aggressive
\
fj§
COMPANY, INC.
and
able
the
that
believe
Bought
/;©©©©«
i
H. K. PORTER
Thursday, October 18, 1945
and
Midland
Realization Company—A study
of
Co.,
has
become associated
the Ranson-Davidson
with
Co., Inc.
©%
I.
,Volume"<162
'Number 4430
-
i
■
/ /'•
V
■
THE COMMERCIAL & FINANCIAL
CHRONICLE
182
MIDLAND REALIZATION
v:•'"
"and/ •'■'[}-■
•
CLIFFS
MIDLAND UTILITIES COMMON
bond s
CORP.
Public
DOYLE, O'CONNOR & CO.
INCORPORATED
Memorandum
v
.
Utility
Request
on
"
Industrial
*
.
''
'
•
'
-
.
b 1
'
135 SOUTH LA SALLE STREET
CHICAGO 3, ILLINOIS
Telephone:
/
Dearborn 6161
Teletype:
Railroad
CG 1200
•W''\h *'t•*"
•;
:
KITCHEN & CO.
•''J-:3
135 South La Salle Street
Municipal
-
Canada Acting Against
Stock Selling Fiaud
dition.
■
Incorporated
*.i. v-
.i '.'i.,
'
■
NEW
YORK
''
>•'
•••/.
>
BOSTON
t
,
'
i
,
MILWAUKEE
1
.
MINNEAPOLIS
;
'•'*
*
industrial, financial and other
are
based be sent to him in order that
he
might judge whether those
bodies when the treaty itself was'
signed in April, 1942.
A special named are unfit people to be al¬
clause provides that it will not be lowed to sell securities.
He says
retroactive in effect for offenses
which are added to the causes
no
-
such
4
evidence has < yet been?
forthcoming of activities which
.hitherto existing for extradition.! would be considered illegal in On ¬
It also purports to protect unwit¬ tario.
ting violators. of the securities
The inclusion of offenses in the
laws and regulations of 48 states extradition treaty is
regarded by
and of the U. S. Securities and those
opposing it as another way
'Exchange Commission by provid¬ of accomplishing the same pur-,
ing that this course shall only ap¬ pose, that is', of taking Canadians]
ply to offenders who commit the to United States courts without
offenses "willfully, and knowing-! first
proving their guilt here. The
1
w
.!
However, much of the old
position
was
included
at
"offenses"
to
in
all
the
op¬
being
extradition
'treaty and that remains, strong.
With the expectation that the protoco} would make the modifica¬
tions which it actually has made,
representatives of the Canadian
•
Chamber
controversy has had the effect of
causing bond and stock issues ad¬
vertised
to
carry
the
inscription
Common
foot¬
Lt. Col. A. Roosevelt
ciations
would
met
ness
reduce
between
the
security busi¬
.Canada
and
the
United States to
a
trickle.
It has
pressed by lawyers called in to been over the decades a very
report as to the probable effect large business- but those selling
that to accept such a treaty would speculative issues of
mining stocks
'! be to accept a distinct loss of claim that the
expense of meeting
sovereignty for Canada and that registration, licensing and other
t
it
,
would
leave
the
way
open
to
infringement of fundamental libJ
crties.
When
asked
what
"wilful
and
knowing" violation of*a regulation
would be, lawyers said that the
mere issuing of "cease and desist"
orders
would
ficient
notice.
that
the
be
considered
Another
notice
would
suf¬
thought
consist
of
sending copies of regulations un¬
der registered mail to alleged of¬
fenders, whose acknowledgments
of receipt to the postal authorities
would
be
used
as
evidence
that
they knew the regulations even if
they never read them.
The pro¬
tocol provides that publishers of
requirements in Washington and
the States where it would be de¬
sirable
to
sell, are prohibitive.
They claim that those restrictions
advertisement would not be
sidered an "offense" because
copies crossed the border
circulation
was
in
considered
the
some
if
United
incidental.
con-
the
States
-
:
that selling
from Canada is
legal..
opposition to the
treaty makes it plain that they
fear most the question of
infringe¬
ment of sovereignty and the wide
The
business
applications that the treaty might
have if it embodied the right to
extradite for offenses against reg-.
ulations most of which; must be
unknown to
potential offenders
and
be
some
passed,
of which may not
yet
!;y/Ti/y/;■/
'
The Legislative Status
Canadian newspapers carrying advertisments of securities not reg¬
istered in the United States could
not be extradited and that such an
not desirable and
are
To "table"
or
of
a
report or document¬
protocol is to lay it on the table
the
then
House of Commons.
officially
a
part
case
Army
4th,
the
matter
and
late
of the
discharge
&
States
Bloomington Limestone
Units
..
from
the
~ J
j'
"J\.
HICKEY
Sept.
on
is
Field
now
Pine: Street,.
New
York
Ci'y"
C
ACTIVE
o
1
0
n
c
Roos|ve1t
served ~w ith
0
162nd
n,
.
to
took
of
clauses
Common
'
considered
here
He
Wounded
Interstate Aircraft <S»
Engineering Corp.
Lt. Col. A. Roosevelt
;■
Biack
on
in
v
new treaty.
The
will be debated in
Parliament when the bill
its
protocol
awarded
asking;
extradition
new
Mohawk Liqueur Corp.
■
■,
Roosevelt
the
Croix
*
has
'
Common
• Circular
;
1
request
on
ADAMS & CO.
been
-
?''t/23l South La Salle Street
Guerre
de
with
Silver
with
Oak Leaf Cluster, the Pur¬
comes
#
wounded in action.
was
Colonel
object to the
the
.
'P'y.f-
,
.
commissions of other Provinces do
approval to
treaty
and
Preferred, Class "A" & Common
;
where he trained troops at Camp
Gordon, Georgia.
In World War
force, asrtbe treaty-and as
I; he served as a Captain with the
being part of it.
]
] 1st
Division, 26th Infantryand
Ottawa reports that securities!
also
matter
Common '
^American Service Co.
July, 1944,t
same
,
''*■:'
was
and sent back to the United States,
having the
as
?
'
treaty and to the inclusion of of¬
fenses. In legal status the protocol
is
Corp.
Preferred
*Howell Efec. Motors
in
part
land.
&
•
Preferred
and
the campaigns
a t
Salamaua,
the
&
.Franklin County Coal
.
i
Infantry,
Common
..
the 41st Divis
TRADING MARKETS
\:
A,;
^National Terminals Corp.
1
of citizens. That would
Hollandia
ground that there;
and Black Is¬
has been much expressed objec-;
certain
J
Direct wire to New York
;
velt & Son, 30
and groups
to
^ CG 1234-5
"
Roose¬
be asked on the
tion
CO.
&
Bldg., Chicago 3
Randolph 8800
his
h/ea d quarters
Chicago 4, Illinois
Star, the Silver Star]
Teletype CG 361
"
•„
Phone State. 0101
ple Heart with Oak Leaf Cluster
!
The Ontario government's posi¬
tion is probably best described as
and the
Knights of Danelos (Mon¬
tenegro).
.
un
,
"on the fence." Ontario cannot be
said to be "officially" opposed to
the treaty.
Hon. Leslie E. Blackwell, Attorney-General of Ontario,
stated
day:
to
correspondent to¬
Ontario gov¬
your
"The
present
ernment has
been consulted
never
with regard to the negotiation of
the treaty or what its terms might
be and so far has no official notice
of its- terms.
government
expressing
con.
No
nublished
For that
has
any
matter
as
reason
the
refrained from,
opinion, pro or
what
been
has
to what it contains I
think I should not speak of it of¬
ficially except
result of ex¬
amination of the exact document."
as
a
FINANCIAL
Chicago Personnels
I
CHICAGO,
ILL. —William
L.
A.
Dawson, One
Mr.
Street.
been
Air
serving in
Corps.
with
Paine,
North
Folds
In
La
has
.
Le Roi Co.
,
'
Koehring Co.
the
past
Webber
&
he
was
Co.,
and
Haskell, Scott & Jennings, Inc.
CHICAGO, ILL.—Eustach Bregy
is with C. L. Schmidt & Co.,
Albert Frank
Boston
-
Tool
Chicago Philadelphia San Francisco
llllillllt
Macfadden Publications
Gisholt Machine
All Wisconsin Issues
Co.
National
Northern Paper Mills Co.
v.
Compo Shoe Machinery Corp.
Froedtert Grain & Malt. Co.
Wisconsin Electric Power Co.
Hamilton Mfg. Co.
HOLLEY, DAYTON & GERNON
Member—Chicago
105
PHONES—Daly 5392
re T- — m!
ST.
MILWAUKEE
Chicago: State 0933
(2), WIS.
Teletype
MI
488
Exchange
Stock
So. La Salle St.,
CG 262
MASON
Guenther Law
New York 6, N. Y.
Inc.,
Manufacturing Co.
Standard Silica Co.
Nekoosa-Edwards Paper Co.
EAST
...
Incorporated
131 Cedar Street
OF
Central Paper Co., Com.
225
Branches
120 South La Salle Street.
James
■
Its
Plans Prepared—Conference Invited
Telephone COrtlandt 7-5060
'
SECURITIES
;
!
^
/
the U. S. Army
CONTINUOUS INTEREST IN:
THE
In/All
Salle
recently
I
...
ADVERTISING
Folds has joined the staff of John
in¬
or ignored in, subsequent
pro¬
ceedings. Thb treaty and the prd-*-
/
President
making
hear!
to
.■*
with
spme;
Senate
or
medical
a
United
committee of the:
a
the
It is
formation available for the House
and can be either debated, acted
on
a
of
Theodore Roosevelt, who received
views:of various associations
be
,
the
consider
the
d6wn.
•
2
House, of Commons
Whole
the safe side.
such
be referred to
they are not to be considered
being offered fo residents of
the United States. ^Various, secuity houses report that they are re¬
turning checks from Americans to
on
In
velt,son
Des Moines Ry. Co. 5/55
:
Lieut. Colonel Archibald Roose¬
.
Michigan Chemical
..
At Roosevelt & Son
member could moV* that the reso-l
lutibn and the treaty and protocol!
as
Commerce, • various
Others are still continuing - to
trade, the Canadian! sell- stocks which are not "regis¬
Manufacturers
Association,
of tered,
declaring
that
extradi¬
Stock Exchanges, Securities Asso¬ tion
on
the grounds, asked for
and Mining Associations
recently in Toronto to discuss
matter.
The view was ex¬
involved.
not
of
IN
Long Bell Lumber Co.
that
•boards i of
ACTIVE
Galvin Mfg. Corp.
OMAHA
tabled in the House of Commons yesterday by
The protocol deals with three clauses of the
treaty of. 1942 prort table. Some authorities think the;
viding for extradition for the fraudulent use of the mails, the .viola¬
government can ratify the treaty
tion of laws for the prevention of ♦>
and protocol without Parliament
fraud in the sale of securities and
The main objection stated in tary sanction but as a matter of
dealing with laws regulating pub-t Toronto is that an extra-territorial custom
Parliamentary
approval
lie security markets, the
registrar body would have the means to will in all, probability be sought J
tion or licensing of securities and
extradite Canadian residents for It could be
sought by introducing
"investment or public utility com-! offenses and crimes which are not a
bill but that would be subject to*
panies. The occasion for extradi-J offenses and crimes' in Canada. debate clause
by clause.
■tion is defined as dealing with (a)
Extradition is regarded as bad in
.( Press correspondents at Ottawa;
fraud as defined by the laws of
principle when applied to any¬
suggest that the approval of Par-]
both countries; or
thing but crimes which are so liament
may be sought by intro-l
1
(b) Willing and knowing viola-1 recognized in both countries. The
ducing
,a
resolution. A reso¬
tion of the laws of the requesting Attorney-GCneral of
Ontario, Hon. lution
might
be
very
short,
country (the United States).
Leslie E. Blackwell, has evidence
simply
asking
that
Parlia¬
■\
In explanation of the protocol!
against Ontario residents who ap¬
ment approve the treaty and pro¬
Hon. Mr. St. Laurent said that it pear to be
observing all Provin¬ tocol.
Simple approval or rejec¬
was
designed to meet objections cial laws.
He has asked
tjjat the; tion of the whole treaty would be
voiced widely in Canada by busi-i evidence on
ness,
ARE
;.v-
'
'
Acting Secretary of State for Foreign Affairs,. Hon. Louis St.. tocol will stand on the same
^Laurent.
/
ing when both ore$ placed
which the orders
.
-
.
WE
"y
1
1
1
the
■
'
f>.
CHICAGO
Opposition by Ontario Business Interests," Who Are Continuing
Unregistered Securities.
tradition Treaty was
.7:'; V'"'
Tele. CG 573
ACAUXNasdCOMEANYK
TORONTO, Oct. 17.—-A protocol to the Canada-United States Ex¬
V
1
*
New Law for Extradition Before Parliament Will
Importantly Affect
Mining Stock Sales to U. S. Citizens. Defines Fraud Occasioning Extra¬
to Sell
Chicago 3, III.
Tel. STAte 4950
Chicago 3, I1L
Central
0780
Offices in Y/iscons;n
Eau Claire
-
Fond du Lac
Madison
-
La Crosse
Wau^au
'
1828
THE COMMERCIAL
Established 1919
1945
York
and
Boston Stock
Fifty-fifth
'
,
Year of Dealing in $
>
\
Exchanges
1
•
Members New
MICHIGAN
j
Member a Detroit Stock Exchange
Thursday, October 18,
Tifft Brothers
Call Us On Any
Charles A. Parceils & Co.
& FINANCIAL CHRONICLE
Associate Members New York
Exchange
Curb
CONNECTICUT SECURITIES
4-
•
I
UNLISTEDS
.■"
'V. :,>■
Primary Markets in
Primary
Markets—Statistical
Information
Hartford and
Michigan Markets
<rt
'
■
■
>
v:
,
639 Penobscot
-
DETROIT
Connecticut Securities
i
'
Wm.C.Roney&Co.
^:
(
Building
\
26, MICII.
i
t
Telephone
Teletype
Randolph 5625
DE 206
^4
BUILDING
BUHL
812
DE 167
Bell
Goldie, and Austin Lynch have been re-elected directors
Timken Detroit Axle Company for three-year terms.
jAt
J.
the
the annual meeting of directors, following the stockholders meeting.
Paul V. Osborn was elected Vice-President in charge of manufactur¬
ing,, and L. W. Fischer and N. R. Brownyer were also elected VicePresidents of the company.
.
-
Osborn
1941^
in
joined Timken
Assistant to the Vice-President.
as
Previously he
rier
with
has
his
In
in
continue
and
Brownyer
as
The
331/3%
stock
Oct.
to
in
engineer.
Truck
Pre¬
31
was
Personnel
.
;
a.m.
to 3 p.m.
i daily,£i Mondays through
Fridays,
12
noon
Satur¬
on
days, after Oct. 12, by the fol¬
lowing banks in the Greater De¬
troit
area.
\<
Notes
Edward
—
S.
his
father^
the. late
...
Controller
of
Edward S.
Ottmar A. Waldow,
of the National Bank
Detroit, has been elected to the
board
of
directors
of
the. Con¬
trollers Institute of America.
.
.
..
Frank Noble has been promoted to
the post
of sales promotion
Lynch
the
Company,.
1
*.
*4,
:
;
;
4.
-'V'
*
■
-'
#
Commonwealth Bank, The De¬
troit
Bank;
Bank, Industrial
Manufacturers
National
National
jBank of Detroit, National Bank of
Detroit
and
the
Wabeek
State
Bank.
*
The wartime emergency sched¬
ule of extended hours on Fri¬
days
discontinued,
was
stated,
because
Smith
of
analysis
an
business transacted during those
hours reveals that the need for
<
Harry Bennett, former VicePresident
pany,
of
Ford
Motor
tion of B. G. F. Company, man¬
ufacturers' representatives. With
him
iii
the organization, will be
Byron Geller, former Assistant
Attorney
and
General
Stanley
of
Fay,
has
re¬
;
Schenley Distillers to
Company.
DETROIT,
MICH. —The Bond
of Detroit opened the 1945season with a luncheon at the
Statler.
Gerald
L. A.
V
Darling
American Forging
& Socket Co.
Miller, of Miller, Ken-
and
Company,
GRAND RAPIDS, MICH.
>
84
.Phone 98261
Superior Tool
Amer.
r 4
|
Forge
Shatterproof
Palace Corp.
of
Services.
Michigan Securities
;
Underwriters & Distributors
.'it
Detroit
Stock
the
as exec¬
operations
Office of Strategic
In his talk he described
branch, his
4';v;:4::4-4:444: V
K
-
£
Brokers
ended
August
no
taxes have yet been
paid) would be disposed of by
paying 60 % to the licensees and
the
remainder
*■74.4
the
*
ended
Hartford-
g
;
ended
July 31
with $1,056,581
for the preceding fiscal year. On
a per share basis, earnings werri
$1,12 and 74c respectively.
4
*
fiscal
which
and $4,05 respectively.
weeks
the
.
Roy a 1 Typewriter Company
showed net profit of $1,467,962 for
share for these periods were $4.23
32
to
Empire Company.
31
year
compares
•
.
♦
Aug.
'4
~
•■/
12, 1945, Veedor-Root, Inc. showed
earnings of $1.73 a share/against facturing Company reported net
$2.19 for the corresponding period profit, after taxes, of $485,857 for
in 1944. This decline in earnings the 32-week period ended August
12
and
for the
was apparently due to cutbacks in
16-week
period
ended August 12, $186,067. While
war orders.
figures for corresponding periods
The
balance; sheet
in
Listed and Unlisted Securities
showed
current
as
of August
Ralph
Simonds,
who
in the Air
*ons
also
Corps,
has
was
Lakeland, Florida,
ment
of
and
the
as
at the
commanding
work.
given,
statement
the
showed
$3,661,691.
balance sheet; of
Aug. 12,
showed
1945
assets totalled
The
to
current
liabilities
6.8 to 1, which compares With
2.1 to 1 a year ago when current
$5,676,180 and cur¬
rent liabilities were $2,651,066.
$2,000,000 bank notes have been
paid off this year.
'XXX^X'X'XXX-I
377
the
at
beginning of the
V-loan
was
000,000
against
January 1. Cash
$4,269,342
*
132,470
to $5,$11,000,000
on
on hand totalled
$4,277,890
securities
against
an
was
year.
reduced
,
against
marketable
*
The Hartford-Connecticut Trust
Michigan Personnels;
two
depot detach¬
was
assigned to
contract "termination
The
not
were
and
were
$2,.-
$2,189,567>TKere
increase
in
surplus
of
$485,857 bringing the total to $4,-
093,122
;
August 12
on
;
-
Conn. Personnels I
HARTFORD, CONN.—Theodore
R.
of
Blessing has rejoined the staff
Coburn
&
Middlebrook,
49
:: • -xx'iX
:XXxxk.:"*
Pearl Street.
of
air
later
year
year-end
loss of
a
working capital of
$8,252,258 compared with $7,402,-
rent/assets
44'
Mr... Jones,
last
1944
was
announced
President
of
of $3,918,893 and current liabilities of
$582,563, leaving a working capi¬
tal of $3,336,330. The ratio of cur¬
assets
Company showed indicated earn¬
C. Lee Jones Rejoins Staff 4 ings of $1.76 a share for the third
quarter of 1945 which compares
Of Baker, Simonds & Co. j with
$1.61 for the corresponding
DETROIT, ; MICH. — C.
Lee period of 1944.
" ;t
Jones, former Captain in the U. S.
Phoenix State Bank & Trust
A. A. F., has rejoined the staff of
Company for the same quarters
Baker,. Simonds
&
Co.,
Buhl
showed $9.61 and $6.69 per share
Building, members of the Detroit
respectively.
Stock Exchange,
Lodwick School of Aeronautics in
:
Moreland & Co.
*
of
the
the firm.
u
speaker.
Govern¬
civilian for the
a
chief of the
as
officer
.
in
staff supplied and also controlled
the activities of the French un¬
by
Markets in
•
Dealers
Member
was
it is
Lansing Stamping
in any
$249,953 (Compared with
the
ap¬
Receiver
which
months
For
defendants,
would enter; in-
to
by licensees from
Sept. 1, 1942 to Oct. 31, 1945 (oil
the
was
$1,693,338
compared
with
$1,620,573 for the corresponding
period of last year. Earnings per
-
the
upon
new
The total of net income for the
eight
Toledo,
against litigation*;
Royalties, in the amount of
proximately $21,000,000 paid
month#
was
on
Court
:
$225,439 in August of 1944.
Request.
Natl Elec. Weld.
"■
as
official
branch
how,
7
DeYoung, Larson & Tornga
GR
revenue
in
nants
the largest volume of
telephone
held
be
District
States
licenses, at. reduced royal¬
ty rates and would execute cove¬
the month
Total telephone Revenue for the
month was $2,824,898, while net
12
Miller, has been
utive
on
in
to
long-distance
♦
Club
ower
>
4
Executive
Launches'45-6 Season
derground.
,
and
past SVi years in London
Circular
Industrial Brownhoist
formerly
England
established
Company
will
the
arid the licensees
New
records
new
in
:
Hotel
.
restraints
Southern
and
profit
22
United
The proposed decree would
pro¬
vide for the imposition of certain
%
of total
one
decree
the
the
Ohio.;
calls, the
greatest number of telephones in
service, and the highest amount
.
tracted with
Tele. DE 507
TRADING MARKETS
Lynch
owner
eral Bronze
Mr.
Vi
in
Vice-President of Munising Paper
Company, assistant publisher and
business, managerof
"Nation's
Business," and a director of Gen¬
take the entire output of alcohol
|
Bldg.* Detroit 26
a
was
France,
awarded the Navy Cross.
part
a
46
Members Detroit Stock Exchange
Buhl
Group
Commander
was
vealed that the company has con¬
Mercier, McDowell
Cadillac 5752
was
on anti-sub opera¬
member of the North¬
Bombing
was
-
August:
toll
he
fle\y overseas'
ment service
& Dolphyn
of
:
•
release
his
Lynch
member of the first Yale Unit. He
-
Valley Distiller
request
on
:
V.
During World War I he
and
<4
Telephone
R.
attached to the office of Secretary
of the Navy.
was a
7
three
Frank
in Seattle. 4At-
tions,
of
between
the
glass containerA hearing on this pro¬
October
pres¬
disputes
and
company
1974, $16,000,000 3%
an
agreement for
of completing a set¬
the "Glass" suit and
in
all
industry.
The
with
of
ending
refi¬
company
1978, the
:—
reached
purpose
posed
I'- •'
headquarters
time
the
$15,000,000 new issue, and
$134,000
Northern
Connecticut
Light & Power first mortgage 5s
due in 1946.
Sea Fron-
the
have
series
due
accrued
Hartford-Empire Company,
licensees, and the Government
will have
outstanding $10,000,000 3% bonds
I
and
——
The
its
ent
becom¬
e r,
the
106%
;
.
tlement
bonds series J due
Fleet,
A i ^Control¬
t i
priced at
were
1968.
nancing,
Senior
ern
;
Colt's: Patent Fire Arms Manu¬
through March 31, 1947.
Reports furnished
of
bonds
llpori completion; of this
former assistant at Ford.
Trenton
Manufacturing Corp.
Dec. 1,
Bennett's
President Glenn D. Curtis of the
Shelter
staff
The
Michigan
4(4444 4'444 -4;
Electromaster, Inc.
on
New Haven.
applied to the redemption on Dec.
1, 1945 at 107 and interest of $15,000,000 first and refunding mort¬
gage 3 V4 %
series H bonds due
Al-
was
of
interest to yield 2.70%.
.
.
Proceeds from this sale will be®-—;
firm
ler, Northwest
Sector, West¬
Com¬
has announced the forma¬
Co.
York
Force, At¬
ern
•
New
Commander
Air
man¬
of Eureka Vacuum Cleaner
ager
the
x-
Commander
later
.4'
dent of Evans Products to succeed
Evans.
to
♦
Evans, Jr. has been elected Presi¬
Smith, President of the
Detroit Clearing House Associa¬
tion, announced resumption of the
formery peacetime
schedule
of
a.m.
*
|
2, a new issue of $15,000,000 Connecticut Light & Power
Company, First and Refunding 3% Mortgage Bonds, Series K, due
Oct. 1, 1980 were offered to the public
by an investment banking
group headed by Putnam & Co. of Hartford-and Chas. W. Scranton &
styne, Noel &
Co.,. 52 Wall.
Street,
New
York City.
;.
lantic
H
joining
Van
of
ing
T. Allan
9
record
of
Oct. 10.
associ¬
"
Company.
iand
stockholders
Corpora¬
Paige Motor Car
;banking hours of 10
also declared a
dividend,
payable
company
Chief Engineer
was
the
masonite.
sales
tion and before that
with
purchase of Board Fabricators Inc.
Long Island, fabricators of
capacity.
Timken
is
Exchange
On Oct.
on terminal leave from the
United States Naval Aviation Re¬
Stock :"E
...
Danbury
Connecticut Brevities
;
Lieut. Commander Frank R. V.
serve,
Waterbury
Members N. Y. Stock
w.
Lynch,
of
post he will
joined
Gotfredson
ated
depart-j?
executive
sales
a
viously he
of
new
an
no
,
Woodall Industries revealed the
joined Timken in
engineering
1926
connected
engineering
the
hours
.
been
ment since he
1921.
with the Car¬
was
Corporation.
Fischer
banking
longer (exists.
Lynch Joins
Van Alsfyne, Noel Co.
change
additional
New London
System Teletype: HF 365
F. R. V.
Michigan Brevities
of
j
Co.
&
f | New Haven ||
*9-2211
BOwling Green
Phone
Cherry 6700
'
Nfw Yurie •
v*
DETROIT 26, MICH.
Teletype
4'Vj':
R.
CHAS. W. SCRANTON
Hartford 7-3191
;
Members New York Stock Exchange
1
:
,
;!
Exchange
.DETROIT, MICH.—E. Benjamin
is with Hulburd, Warren &
Chandler.
Mr. Foss has recently
.
HARTFORD, CONN.—Frank A.
Gates is with Denton & Co., Inc.,
805 Main Street.
Foss
;
HARTFORD,
Cotter
been with the State Tax Commis¬
C.
sion and
Steiner
Department of Revenue.
In "the past he was with Mason &
Faulkner, Inc.
has
&
CONN.—Edward
rejoined Jackson
Inc.,
19 Lewis
Street, after serving in the U. S.
Navy.
.
Co.,
"
**r
■
.
1051
Penobscot Building
DETROIT 26, MICH.
Teletype DE 75
Battle Cr«"*k
Bay Cfty
Lansing
Muskegon
white, noble & co.
Members Detroit Stock
Exchange
GRAND
MICH.
Phone 94336
RAPIDS
TRUST
2
Woods With D. F. Rice
CHICAGO, ILL.—Louis Woods,
Jr.
has
become
associated
with
BLDG.
Teletype GR 184
4
DETROIT,
McHugh
with
Rice and Co.,
Trade Building.
Board of
MICH.—Donald
T.
has : become associated
Merrill Lynch, Pierce,
Fen& Beane, Buhl Building.
Mr.
McHugh has been with the U. S.
Army for the past four years.
ner
Daniel F.
NEW
HAVEN,
■
CONN.
—
An¬
thony J. DeMayo has become asso¬
ciated with Eisele & King, Libaire,
Stout
In
the
&
Co.,
197
Church
Street.
past he was with Libaire,
Stout & Co., and Slepack & Co.
:
-i *..
Volume
162
Number 4430
THE COMMERCIAL & FINANCIAL CHRONICLE
1829
TRADING MARKETS:
*
;
,
.
.
>'
■
'
'•
'\
Commerce Trust Co.
f '•,
'■
*
■
1
■*
«.
"*.
..
•
-
OLD BEN COAL
;Pickering Lumber Corp.
4
Long-Bell Lumber Co.
Western Lt. & Tel. Co.
.Central Coal & Coke
*v.;"i *
1945
BJSlUIM
1016
—
vv?.
.
New
York
and
\
y
:
;
:
St. Louis
Angeles
Los
Prospects excellent.
world
ST. LOUIS
• ■ <
today.
♦
^
product in the
Peltason,TenenbaumCo.
Company has been ship¬
ping large quantities for export.
.
Chicago
■";
<
f
Coal is the most critical
;
•
Private Wire Connections To:
'
•
'
White & CompanyV i • Pledger & Company
■
Strauss Bros.
r
Kansas City 6, Mo.
*;'Y.VPhone—Harrison 6432
KC 472-3
_"'1
•
profit expected to equal that of
1944.
Baltimore Avenue,
Bell Teletype
;
i
Selling at 3 M> times 1944 earnings with
Corp.
803
LANDRETH
i:,
BUILDING
st. louis 2, mo.
Description
Central Hanover Names Blewer, Heilner &
Keller & Ingersoll
Glynn Is Formed
Keller, President of Chrys¬
Corporation, - and C<: Jared
Ingersoll; railroad executive, were
f ST. LOUIS, MO.—Blewer, Heit-
Elected
Street
Trustees
the
of
ner
•
&
Glynn
with offices
Central
Mercantile-Commerce
on
at
'
Trust
a
a
automo bi 1
the
M
,
t
o
e
in
Detroit
1910.-; He
!
a r
Company
becoming
Vice-President
a
Chevrolet.
In
1926
he
joined
Corporation as VicePresident in charge of manufac¬
turing and became President in
the Chrysler
Ingersoll has
railway"
executive
When
became
he
the Midland
and
the
director
a
1920,
with
Valley RR. Company,
has been its
a
been
since
associated
Chairman of the
board since 1932.
of
He is President
Muskogee Company and is
Railroad.
of
the
Pennsylvania
Girard
Trust Company,
Saving Fund So¬
During the war, Mr. Inger¬
and the Western
ciety.
soll served in the U. S. Army as
District; Chief of the Philadelphia
Ordnance District.
CITY, MO. —D.l F.
has joined the staff of
Herrick, ' Waddell
&
Co.,
Inc.,
Baltimore Avenue.
.LOUIS,
MO.
E.
Waggoner is with John R. KauffCo., 506 Olive Street.
mann
LOUIS, >MO. — Darryl W.
Goode has recently been serving
Gardner, 400 Locust Street.
Mr.
has
recently been
in the armed forces.
serving
ST.
LOUIS, MO. —Estelle B.
Leach and Jesse M. Myer are with
Siayton & Co.,
Street.
Ill North Fourth
Mr,
Myer has recently
been serving in the U. S. Navy.
Ballas-Ft. Worth Club
|
•
j
Higher Prices Seen
By Management Firm
fj Underneath
the
is that both (wages
prices) will advance only to a
ex¬
set forth in
investment
the directors
report to
of Group Securities,
The report continues:
"The
stocks
common
opinion
common
sounder
holdings
the
In our
during
period of price advance.
stocks
than cash,
are
and
investors sounder hold¬
than
preferred
bonds at this time."
ings
stocks
or
As
outstanding values for
preciation, and offering good
ap¬
cur¬
rent return, the report lists the
following
stock
groups:
Steel,
railroad, aviation
and
railroad
equipment shares. Merchandising
and
industrial
also
are
machinery
expected
to
do
shares
Country Club..
the
were
party
a
the main features of
for approximately
who attended. \
;
Charles
•'
.
-y •
l
1
"
•*
'
"•••>
J
•
•
■;
£
York
and
c f-
'
■
Direct Private
.
!*
■
•
Wire to
'■•■
;
>
Providence Offices
f
Members
New
York
Other
Stock
Principal
Exchange and
Exchanges
<
Broadway & Locust, St. Louis 1, Mo.
Teletype SL 84 y,
Tel. Central 0838
>-
the
Oct.
on
diately
the
to
company's
M"';
that
an
the
"Volume
ex¬
a
new
of
18%
ended
an
the nine months
31, 1944.
And the
ending Nov. 30,1945 should
produce the biggest volume in1
the company's history."
*
;> *
*
$75,000,000 South¬
western Bell Telephone Co.
40year 2%% debentures due Oct. 1,
1985, was offered on Oct. 9 by a
syndicate
headed
by
Halsey,
Stuart & Co., Inc. of Chicago, and
including Baum, Bernheimer Co.
.
funds,
are
$34,000,000
At
,
of
the
close
year—ended
V.
*
Statistical
with
At
v
•
•
t
Information
on
Request
WHITE & COMPANY
used
Members
of general
mortgage
St.
Stock
Louis
Exchange
Mississippi Valley Trust Bldg.
|
ST. LOUIS 1, MO.
'
Bell
3%%
of
last
the
April
System Teletype—SL 477
fiscal
1945—the
Mo.,
was $40,818,000, a net reduction of
$1,879,000 when compared with
the close of the previous fiscal
year,
ended April 30, 1944.
It
was
also $8,012,000 less than on
April 30, 1942, when the total
30,
We
y
debt of Kansas City,
bonded
interested in
are
ST. LOUIS
BANK STOCKS
.
debt I reached
bonded
record
a
City and Edward D. Jones &
>
(
peak
of
$48,830,000.
Interest
charges during the latest fiscal
year amounted to $1,315,165.
and Stern Brothers & Co. of Kan¬
sas
*
•
.record,
year
\v '
An issue
Corp.
; r-
Chicago Railway Equipment
V.-,
Corp.
\
■
bonds, series B, due July 1,1974.
increase
over
Aug.
together
to be
proceeds,
retire
provement
for the nine months ended Aug.
at
'^Pickering Lumber Corp., f
$6,375,000 of refunding and im-
in the previous year. Total sales
were
;
Majestic Radio & Television
fund bonds due Jan. 1, 1953, and
business which existed
reaching $13,023,485,
!
Valley Distillers
*Ampco Metals Inc.;
;
1
mortgage refunding 4% sinking
although
last month did not have any of
31i 1945
The
to
same as a year ago,
war
Co;^
•
treasury
practically
was
'
«
Stromberg-Carlson
scribed.
pansion is necessary," Mr. Cook
said.
' •
Stocks
'
v
clearly
.
D, due Oct. 1, 1985, were
offered' publicly by a
syndicate
headed by The First Boston Cor¬
poration of New York and Bos¬
ton, and including, among others,
Smith, Moore & Co., St, ,Louis.
The issue was quickly ; oversub¬
an
j "Sales during September dem¬
onstrated
;
series
North
mately $250,000.
*
Markets
Insurance
^Trenton
St. Louis refunding and im¬
provement mortgage 27/s% bonds,
Kansas City unit to cost approxi¬
•
r
&
!:Mid-Continent Airlines s
of
13.
the construction of
on
addition
*
*
r»
On Oct. 11, an issue of $40,312,000 Terminal Railroad Association
double .the
President, announced
Primary
Bank
i
r
14.
LJi-ii
3
•
•
COMPANY
718
Locust
Saint
by this municipality in the year
1945 was $189,-
•
Metropolitan St. Louis
The only funded debt created
ended April 30,
'
.
Louis
Central
L. D. 208
;
Street
1,
Mo.
8250
St. L. 499
'
better
recommended.'
000
-
:
,
Active Markets in
of
that period were
ST.
*
issues.
judgment
Total;
receipts from all sources during
■.
LOUIS
$15.549,977 and
disbursements amounted to $13,-
599,696.
MY
cash
The
balance
at
April 30, 1945 was $7,307,932.
MIDDLE WESTERN SECURITIES
,
Municipal Bonds
—
Corporate Securities — Bank StocksIssues
St. Louis Stock Exchange
Stix & Co
,inc.
ESTABLISHED
~
INVESTMENT
Ov'
309 OLIVE
Newhard, Cook
SECURITIES
5TRE E
.
. i
of
Work is expected to begin imme¬
guests
;Hahn,
Scherck,
Richter Co., St.
Louis; Emmett
Byrne, Dempsey-Tegeler & Co.,
St.. Louis;
Jack
Hecht, ButlerHuff & Co., Los Angeles; David
Sanders, Vance,, Sanders & Co.,
Chicago; Malcolm Brown, New
Orleans; Jack
Halstead, Wash¬
ington.-
-1
100
-
Among the out-of-town
will
well as conservative appreciation
possibilities, chemical and tobacco
,
'
were -
Oct,
•
program
J-
and
IV
in preceding
as
cveMMv'iV'M
post-war
;
Golf
•
present output of .paints, lacquers
and V enamels,
Charles R. Cook,
the Dallas-Fort Worth Bond Club
held their fall party at the Colo¬
nial
rate
same
than
>average, v
For
investors
chiefly
concerned / with
wellassured and generous income as
are
-'■!*
;v.\KV-
Cook Paint and Varnish Company
calls for an expansion of plant
the
current
Inc.
The
:
;
"The hope
•
stockholders of record
:v
but
are
♦
quarters.
ail current discus¬
relatively modest
V-4
facilities?, which
advancing wages and
prices," according to Distributors
Group, Inc., 63 Wall Street, New
York
City, investment manager
of Group Securities, Inc., a $75,000,009 investment company.
and
*
WORTH, TEX.—Members of
dinner
*
-•
Newhard, Cook & Co., I. M. Simon
& Co., Smith, Moore & Co., Stifel,
Nicolaus & Co., Inc. and Stix &
Co., all of St. Louis. The proceeds
are
to be applied toward the re¬
tirement of (a) $30,000,000 of first
and >; refunding
mortgage
3%
bonds, series CL\due July 1, 1968,
and
(b) $45^000,060 of first and
refunding mortgage 3%% bonds,
series B, due Dec. 1, 1964.
Bottling Co. oft St.
Louis, declared the usual dividend
of 25 cents per share, payable Oct.
20 to
sions "nobody really expects any¬
thing
that
as
Coco-Cola
,10, the
Wichita,
Co.,
-vl.-.-.v-
I -
Kans., Vice-Chairman, and James
M. McKim, A. H. Bennett & Co.,
Kansas City, Secretary-Treasurer.
shares
Holds Fall Party
FT.
of
Evans,
Herriclc, Lath-
rop-Hawk-Herrick
rate
same
paid on June 9, last, and brought
payments so f&r: this year to 50
cents.
Trust
Harlan
are:
cers
for many
ST.
ST. LOUIS
SECURITIES
-
Dec.
on
•
-
G. H. Walker & Co.
The board of directors of Stix/ Ba'er and "Fuller Company "on Oct.
iwhich is at the
chief risk to investors is to be out
Harold
—
-
|
'
of
Goode
r
8 resolved to meet
_
Association
Bankers
These forecasts
§ KANSAS
SIT.
&
tent."
Missouri Personnels
1012
-
4 CITY,
MO. — The
Southwestern Group of the In¬
limited and
Jackson
Bank
-
; America elected Harold C.
was
1916-1917,
L. d. 123
Missouri Brevities
Co., Chairman,
general mas¬
! to succeed. AY E. Weltrier of A. E.
ter
mechanic
Weltner & Co."
Other new offi^
with Buick in
f'40.
SL 456 MM
£
.
New
KANSAS
Commerce
K. T. Keller
^
,
.
Company, and Clarence F.
vestment
in
,
v
Garfield 0225 C
t1'.
Group Elects Evans
Metzger
C
:
SINCE 1900
Southwestern IBA jjj
with
o r
*
•'
Norman
are
•
industry since
started
Building
Louis 2,.Mo.
10, next, to consider the payment-of an
Blewer, previously: with Demp¬ additional year-end dividend on the common stock in
January, 1946,
sey-Tegeler &, Co> and the Mer¬ :
thej last month of the company's fiscal year...;~On..Jan-,..30f. 1945, a
cantile-Commerce Bank.
•
>' ,, i year-end distribution of 25 cents
per share was made, bringing the
total paid for the last fiscal year to 75 cents per share.
The board
declared a regular dividend of 25
cents per share; payable Dec. 1
Co;, McCourtney-Breckenridge &
| to holders of record Nov. 15, 1945, Co.,:-Metropolitan.-St. Louis Co.,
Mr.
1 1-e r,
e
Partners
I-MM
St.
■?•,;_
,
New York
its early days,
Mr.
Fourth
Landreth
"MM
Bell Teletype
!
":':■!
securities
a
Company v Of
K
1935.
North
business*
pioneer in the
of
320
engage1 in
to
Ernesl Heitner arid Joseph: ' A.
Glynn,* 'JrY,1 formerly with ;'the
board.-
later
formed
and'Trust
meeting of the
,
been
Hanover Bank
-Oct. '.16
MY
at
has
|..,y;.
Request
on
L D. 240
\/-
RICHTER COMPANY
,
'
K. T.
:
'
Teletype—SL 486
ler';
„■
Capital Slock
,
;:V
T.!.MM.*'
UNDERWRITERS
V
•
•
New
■
MM-; St. Louis lfMo.
York
St.
-
••
•
and
Co.
&
•
-
Member'■
St. Louis Stock Exchange
DISTRIBUTORS
Members
Stock
Exchange "
New York Curb Exchange (Associate) *
Louis Stock Exchange
Chicago Stock Exchange
4
506
Olive Street v "
ST. LOUIS
FOURTH & OLIVE STREETS
Members St.
Louis Stock
Exchange
Bell
Teletype—SL
New
York
152
1924
I
ST. LOUIS 2, MO.
L.
D.
St.
Louis
340,
341,
342
1, MISSOURI
Teletype
—
SL 62
Correspondent, Clark, Dodge & Co., 61 Wail Street
■. *.•
I
'*■ •
f
f,
> ,
»-■
•
'
;
THE COMMERCIAL &
New York Stock
is
announced
the
do business
weekly firm changes:
Transfer of the Exchange memjership of the late Russell S.
^ooney to Edward J. Shean will
)e
considered
iderstood
Oct.
on
that
18th.
Mr.
It
Shean
as
an
individual floor
broker.
following
V:.-V*
Privilege of Lawrence Craufurd
(
to
act
of
the
alternate
as
Exchange
the
on
for
Drysdale, Jr. of Drysdale
is
withdrawn
was
will
Edward E.
Oct.
on
floor
Robert
&
A.
came
Oct.
a
Federal Tax Revision-
1st.
Interest of the late Howard
Rand
Barry, general part¬
Co., be
limited partner effective
Joseph
Mindell
retired
from
partnership in Marcus & Co. on
Sept. 29th.
Co.
1st.
in
ceased
as
Proctor,
Cook
Sept. 30th.
of
&
Its
Co
or as
the debt peak
billion,
Oct.
on
8
cept during the three post-World
by
the
mistic)*
tion
Cumulative Preferred Stock, 4
.
,
•
Tax
v.-'■''">:•';v;>y■'■Syy."v:.
ff
BMf-, $100 Par Value
war-time
that
the
of
result
will
itional
series
a
amendatory
of
be¬
as
1945;- the second is being taken in
Copies of the Prospectus
bill
before
now
the
Senate.
Eventually there must be
tax reform, but before thx refor¬
mation is achieved we appear
destined to more mere tax re¬
vision,
be obtained from the undersigned only by
may
House
the
persons to whom the Undersigned may legally off er these
securities under applicable securities laws.
tinkering.
more
The highest peace-time national
income was $83.3 billions in 1929,
and reached $80 in only one other
(1928);
during the entire
1931-1939 period $70 billion was
attained only twice ($71.5 billion
in 1937, and $70.8 in 1939).
These
high 1937 and 1939 - levels are
equivalent to about $90 billion in
year
1945
"cost
power
the
on
1
1935-1939
income
;ional
1945
year
million
This is not
an
issue
Offering Circular. The Offer of these Bond? if made only by means of the
Offering
Circular, which should be read prior to any purchase of these Bonds.
in
of
i-.
; ,t
t
''
*.v..'.v
••
V;. :•?
--(■
-i '
r\-
+
$ *
"■
S
1
)
-V
•
•
„
estimated
at
$157
September,
1945,
the
"Survey of Current
Out of this estimated
- income,
Federal taxes
existing law will amount
to about $22 billion (Federal cor¬
,
national
avV"
vr"'/'"*'
-
,
.
{
,
,
-i
l, ?
fJ
(
$10
ft
,
City Southern
t
First Mortgage Thirty-Year
issue
sale
of
these
Bonds
are
subject
only such of the undersigned,
Ladenburg, Thalmann & Co.
Eastman, Dillon & Co.
Harriman Ripley & Co.
may
Incorporated
Stone & Webster and
Incorporated
Blodget
Hallgarten & Co.
y ^
Kidder, Peabody & Co.
j
Lazard Freres & Co.
Salomon Bros. & Hutzler
'
\
y
Incorporated
Hemphill, Noyes & Co.
Estabrook & Co.
1
t
R.W.Pressprich&Co.
October 18, 1945
F. S.
Moseley & Co.
y
Incorporated
incentive
to
White, Weld & Co.
burden.
it
And
was
not
1917 that the United States
collected in total receipts as much
one
billion
dollars!
After
World
War
I,
during
(1932 and 1933)
two
years
total Federal re¬
ceipts from all sources amounted!
$2 billion only;. In determining
national policy relative
to debt'
management, there may be many
who will urge that the debt be
consolidated,
without
provision
for amortization except in fortui¬
tous; windfall years, and these ad-»|
vocates will be able to point
to;
British fiscal history to support;
to
the
proposition
:
national-
that
growth and progress are possible
under
such
non-debt
reduction
Here We need not take;
thef argument, at least*
policy.
sides
in
not yet.
As
:
f
;
approached V-E Day it
we
total
national
are
income.
While
estimates
many
as
to
tax
laws simplified.
Long
then, in fact as early as
1918-1920,
students
of
taxation
tax
our
before
realized
that
structure
tax
our
becoming
a
nightmarish
crazyquilt,
unwarrantedly
bur*
densome to business, industry and
revenue
administration, and as
early as that the writer urged
Congress to appoint a Tax Com¬
mission of experts for the purpose
iof developing a revenue measure
which
would
serve,
changing
was
fiscal
by mere change in
England
had
demon¬
feasibility of such leg¬
islation.
Since that pioneer rec¬
ommendation,
the tax law has,
become
infinitely more compli¬
cated, arbitrary, inconsistent—in¬
excusably so, to the consternation
of
administrator
and
taxpayer
rates.
strated the
alike.
and
Annual,
the
more
even
business
others,
prove
to be wrong.
reform..
tax
Between Y-E and V-J Days, the
first
step was taken to convert
taxation to peace taxation,
itional
important of these esti¬
from $110 billion (at
now
commission of experts
draft fundamental
to
or,
may
a
labor;- and*
united in de¬
and
men
are
manding
Insti¬
American
The
cause.
guesses
vary
war
rather,
interim
to
change-is
Senate
the
in
trans¬
Or
A second trans¬
itional taxation.
before the
now
of
form
bill'
the
passed by the "House on Oct. 11..
There will ; he- at least one land
While we hope that such peace¬
time national
income
may
be
realized and retained for a long
probably more than one) trans^
itional
change before Congress*
will set itself to enactment of a
full
peace-time
measure.
We
period of time, the fact is that
continue to hope that before much
1932
as
longer Congress,
instead
come
dropped
to > $40
billion.
Manifestly, the $8 billion of Fed¬
for
26th
eral, State and local taxes in that
enue
period
as
the
national
in¬
greater burden than
combined tax of $30-$35 billion
out of a national income of $100was
a
j
■.
the
1916
Expenses
Peace-time
Must
taxation
Be
cannot
Cut
until
war
of
means
about
a
$20-$25
of
tribunal;
billion.
drop of $75-$80 bil¬
that
there
will
not
necessarily better)
Tax Revision
As
tax
to
the
current
revision,
The
this
"bite"
first
>
is
as
acted
July
a
"
.
pattern
may
be
found
great part
times
not
tinkering.
Pattern
of
three
there is
result
Tax Adjustment Act of
magnitude
/ -
experts,
reform but merely more (and.
lion from peak war-time expendi¬
tures.
It also means expenditures
a
rev¬
create the
be
duced- expenditures have reached
-level
since
altogether too much historic evi¬
war-in¬
and
time
amendment, will
impartial
•
achieved
or
without the aid of which
tax
Federal
25th
,
of itself
tackling the problem of
dence
•
,
needs
the prospective level of peace¬
time national income, it is quite
possible that, all of. the .statistical
more
_
generally recognized that our,
load must be lightened and
was
tute* of Accountants, other pro¬
fessional bodies, organizations of
Hornblower & Weeks
Paine, Webber, Jackson & Curtis
E. H. Rollins & Sons
be
eral tax
(goal in the post-war period must
be high production and high em¬
That
Higginson Corporation
so
can
true when patriotic
temporarily supplants
economic
$125 billion.'
A. G. Becker & Co.
that
agreed
burden of taxation
recently
The First Boston Corporation
Merrill Lynch, Pierce, Fenner & Beane
taxes,
the pre-war price level) to $140
billion at the. 1943 price level.
as
legally offer these Bonds in compliance with the
securities laws of the respective States.
Dick & Merle-Smith
$8-
estimated
local
advocate,
some
frequent, "tax tinkering" has been
mates
Kuhn, Loeb & Co.
of
ployment at relatively high com¬
pensation; compensation of em¬
ployees is most important because
it. represents approximately 70%
to
AND ACCRUED INTEREST
obtainable from
billion
Between
the
and
as
profit-making. There is unanim¬
ity of agreement that our national
The
are
$9
estimate
especially
there
Copies of the Offering Circular
is
State
generally
a
motivation
of
100%
income).
of
normal
authorization by -the Interstate Commerce Commission.
OFFERING PRICE
the
borne only in the presence of so
a national income, and this
Due October 1,1975
and
is
about
in
nigh
is
,sSeries
dnoB%4 A
Dated October 1, 1945
of
billion
great
Railway Company
The
taxes
deducted
are
amount
The Kansas
Lee
na-
calendar
under
porate
••
is
The
the
national
#40.0(10.000
...
level.
for
the
Business."
NEW ISSUE
K'
of
living" dollars, if
given to decreased pur¬
of the dollar based
effect is
chasing
presence
as
The
steps.
first of those steps was taken in
Plus accrued dividends
for amortiza¬
of recurring
provide
the
deficits,
playing at make-believe. Even
a 1%
amortization policy, requir¬
ing 100 years for extinguishment,
would add $3 billion; to the Fed-!
until
trans¬
the Tax Adjustment Act of 1945,
which was enacted on July 31,
Price I10J.50 per share
To
in
is
peace-time taxation only
come
'V-'
7^
taxation
policy
debt
annual
agreement—administrative, legis¬
lative, public.
It is recognized
Series
-greatly
believe it possible to prevent
from reaching $300 bil¬
the
lion?
>
revision is an immediate
On this there is universal
must.
the Federal budget
influenced
by?;
regarding man¬
agement of the debt.
Does any¬
one
,
Manufacturing (fompany
be
national
and the estimated figure of
billion manifestly is alto¬
gether
too
unrealistically opti¬
Tax Revision Essential
Rheem
will
$273
30,000 Shares
1919-1921!
The size of
the current fiscal
of
end
I years
War
will not be reached
year,
.
i
$272.2
already
1945, while the fiscai year 1946
deficit, before tax reduction, was
estimated at $30.4 billion; surely,
of record only and is under no circumstances to be construed as an offering
an offer to buy, or as a solicitation of an offer to buy, any of such Shares.
%*>.
The offering ts made only by the Prospectus.
'
New Issue
Scope and Pattern
(Continued from first page)
C
This advertisement appears as a matter
of these Shares for sale,
Thursday, October 18, 1945"
in Milton E. Reiner &
ner
Exchange Weekly Firm Changes
The New York Stock Exchange
FINANCIAL CHRONICLE
.fKx
of.;
said:
in
the
31, 1945).
It i^ in
partial reconversion
large as our highest peace-time
expenditures.
Annual
interest ing available to industry cash of
charges alone will exceed total. which otherwise it would be demeasure,
-:
1945 (en--
in that it expedites mak-
receipts of the national Govern- prived for one or more years.
In
V ment for'any year up to 1937; ex- addition;
there is j some / excess
-
iVolume* 162 > Number/4430
-
profits
1945.
decrease rafter
tax
THE COMMERCIAL & FINANCIAL CHRONICLE
sion
of
war
sought, divided not quite equally
between< corporate
.and " non¬
corporate
of
Something
pending
endar
bill
consideration;
this
•
seeks to en¬
activity
and
business
courage
increase
Senate
under
now
purchasing
consumer
taxes to peace taxes]
net yield, at the present 85.5%
rate,,
with
the
exemption
at
$25,000,
and
at
expected
1946
profit
levels, was estimated at
$2,555,000,000. It was this amount
The second "bite" is found in the
$5 billion of cal¬
over
1946
year
tax
id
reduction
taxpayers;
the'
corre¬
the purpose of the remedial legis¬
The House bill,
although it
ex¬
the excess profits tax to
1946, does not extend the carry¬
back
termination
date
carrybacks
power.
•
Here,
in
brief,
the
are
pro¬
visions of the Tax Adjustment Act
of 1945:
:
(1)
10%
The
post-war excess
profits tax refund is changed into
direct credit
a
i
reduction.
or
The
.
'
effect is
that
for
returns
on
tax¬
able years beginning after Dec.
'1943, the*excess profits tax is
duced
from 95%
to
31;
re¬
With
85.5%.'
sponding
1947
about
billion.
$7
reduction
This
will
be
proposed
reduction
averages about a 10%decrease from the war-time
14%
peak.
This
peak
load
let
must,
me
say
in passing, be at least
halved in order even to approach
a safe peace-time level.
And as 1
say
this I
am
much alive td
very
the fact, that the
first substantial
tax cut proposal
in
16 years is at
respect to returns for such, years
taken, the unpaid tax liability, is
te expense of national debt in4
reduced correspondingly and may
be deducted from instalments still
becomes about $35 billion;
"
filed
<
before
due.
'*■
the
credit
If the tax has
could
been
be
paid in
full, prompt refund is to be made.
(2) Post-war excess profits tax
v
refund
prior
bonds,
laws,
provided
matured
under
at ; various
dates
after peace, i- Now, bonds
already issued for years beginning
in
i*
•
•
1943
earlier
or
due, at the
Jan. 1,",1946; if
are
owner's option, on
•
the
tax(or; tax;: deficiency) ^fpif
»such years was % hot paid; before
July 1, 1945, cash refund\will b$
made.
<1
the right of setting up and taking
deductions
during the war
as
for inevitable post¬
years reserves
costs
war
of
out
and
•
tax
and
profits
credits,
of
unused
for
after Sept.
on or
available
to
before
appearance
his
one-
nation
1946
for'
Treasury'^
tax
reductiori
program. ' The. House • followed
him, by and large, in the.size of
the reduction,
but
*not\ iri: th$
The Senate will probably
means.
*
make
radical
r
.
Briefly]
.
brief comments:
Secretary
60%
Vinson.; recomi
mended that the excess profits tax
be repealed on Dec. 31, 1945. The
the
and
tax
1946
reduction
was
30,, 1945,
corporate and
is
This is under
an
i
r
for
end
two
of
full
the war,
of
for post-war expenses and
..The
the
1947).-j
Secretary's
profits tax
excess
time
castigation
as
should
measure
the
Senate
Whether this is
the
be
or
guess
short.
views,
but
not, the life
At
a
lean
profits tax is
excess
to
so
the
in
organized
profits
excess
measure.
i£<2) The
that
.
the
(available
of; the
■V
.
loss
carryover
or
carryforward
provision should be extended to a
minimum of four and
advocated
of
losses
taxpayers) and
all
corporate
.
unused
terminate
excess
of
seven
the
at
the start of
at
1946, because by that time
those
new
a
from
no
circumstances to be construed
offer to buy,
or as a
solicitation of
The offer is made only by
as
an
and
12,000,000
mated
taxpayers.
cost at
revenue
lions.;>
or
i
The House
depression
'
(Continued
on page
ah offering of these Securities for sale, or as
of the Prospectus,
K;f
t
*
Cincinnati Gas &-Electric{Company
$45,500,000
upon
Relief
First
of
available
to
Mortgage Bonds, 2%%
Series
Due 1975
non-corporate tax¬
Dated October 1,19£5
1,1975
Interest payable April 1 and October 1 in New York City•
J
in
Due October
"emergency facilities" necesfor the .prosecution of. the
war, prior law permitted amortf
sary
'
ization
deduction
(usually
during
facility
of
the
Price 101% and Accrued Interest
basi$
cost)
of such property
60-month period.
If the
a
certified
was
as
no
longer
necessary before the expiration of
the 60 months, prior taxes could
270,000 Shares
be recomputed based on amortiza¬
tion
>
the
shorter * period.
the
amortization
period was also provided through
presidential proclamation that the
over:
Shortening
of
Cumulative Preferred Stock, 4% Series
(Par Value $100 per Share)
(Such proc- \
on
Sept. 29,'
1945.)
Recomputation and refund
are
provided in the Tax Adjust¬
ment
Act within
90 days after
filing of application for tentative
adjustment.
emergency was past.
lamation was made
'
l,
The • four foregoing provisions
of
the
the
.
Tax .Adjustment
major
their
•
These shares are being offered by the Company to holders of its presently outstanding 400,000 shares of Cumulative 5% Preferred Stock, Series A, pursuant
to the Exchange Offer and to the provisions thereof as to allotment, all as set
forth in the Prospectus. Any shares not issued under such Exchange Offer,
which expires October 24,1945, will be purchased by the several Underwriters*
ones
express
Act
the
Copies of the Prospectus
Imr
■
during
the reconversion
following V-E Day.
The
period
advent of
*
are
provement of the taxpayer's cash
f status
i
have aS
which
purpose
\
as
may
may
be obtained from only such of the undersigned
legally offer these Securities in compliance with the
securities laws
-
.
of the respective States.
early V-J Day made
an
the provision even more necessary
and
helpful;^ ^
.
(d) Only
one
'
-r>{
change-in nmount
of tax—and that an" indirect one—r
was included in the Tax Adjust¬
Act.
ment
ginning
the
and after Jan. 1, 1946,
on
profits
excess
tax
This
emption is of
to
some
the
increased
help, of
smaller
UNION SECURITIES CORPORATION
Now
under
course,
and
amendatory
transitional
"bite", in the
-
•
;
■
WEBSTER AND BLODGET
Incorporated
r:'
HEMPHILL; NOYES & CO.
MERRILL LYNCH, PIERCE, FENNER & BEANE
PAINE, WEBBER, JACKSON & CURTIS
:
non-corporate taxpayers.
consideration—the
>
'&
SHIELDS & COMPANY
CLARK, DODGE & CO.
to
corporation.
another
STONE
ex¬
DOMINICK &DOMINICK
Act is
second
conver¬
DREXEL & CO.
HARRIS, HALL & COMPANY
(Incorporated)
Many a taxpayer was disap¬
pointed at the Tax Adjustment
Act, for it provided no tax relief
at all to
' SMITH, BARNEY & CO.
•••
from
proportional increase
a
provided.
new
HARRIMAN RIPLEY & CO.
GOLDMAN, SACHS & CO.
specific
increased
to $25,000, and for fiscal
beginning in 1945 and end-
ing in 1946
the
t
Incorporated
KIDDER, PEABODY & CO.
$10,000
especially
■
GLORE, FORGAN & CO.
'
is
& CO.
W.
MORGAN STANLEY & COi
!v
n*
For taxable years bei
exemotion ;:'v is
years
'{""■ *??>:.
THE
October
18,191;5,
WISCONSIN
COMPANY
He esti
$2,085 mil
•
rejected eliminatio
offer to buy, any of such Securities,
means
onl
would free from income tax abou
maximum
business
is
If this repeal actio
Code an undigni
disgraceful tax penalt:
imposed on the taxpayer for fail
ure to guess correctly the resul
of a future year's operations.
(4) The
Secretary
recom
mended for individuals repeal o
the present 3% normal tax, whicl
that such losses
years, so
resulting
a
profits tax
loss
nated from the
of future
business losses"
On the other hand,' the operating
Secretary
carrybacks
1946
sustained, there will be elimi
fied
cause
I
•
is
excess
estimated
$180,000,000.
not be subject to refundment be¬
to
profits .credits
end cf
;
The
fiscal
and
initiative, the Hous
declared-value
carrybacks
measure,
own
voting to repeal, as of next July 1
the capital stock and the relal
its rjght to retain most of its tax
collections; except under extraor¬
dinary war or other emergency
conditions, such collections should
1945
tax, >a * war
On its
approved its committee's action i
The Treasury should,
npt have to be apprehensive about
des-i
and later should not be subject to
still to meet them.
losses.
speedier than was
make the full two-
administrative
an
the
profits tax.
If these taxes^hav
any 'informed
defenders, I have
monstrosity.
Congress should provide that new
corporations
peace-time
are
rate)
any
may
of accounting reserves
>
years
year
period unnecessary except;
for relatively few taxpayers.
AS
great
My
will
Vinson's
Mr.
toward
expected,
determination of net income
The Secretary did not reft
capital stock tax and the
related
declared-value
excess
needed provision for reserves
Reconversion,
of
peace-,
carry
weight with the Senate.
isMlmt
a
a
use
the
to
in lieu
lion for
S*IS I
The
payers alike;.
!
1 I (4) To encourage corporate aricj
I. non-corporate taxpayers to invest
"
the
the
of carryovers.
unpaid
to" carrybacks
losses
available
after
$2.5 billion to $1.7
billion (and increased to $3.2 bil-f
because
(3)
implied commit-;
carrybacks would
an
the
so
was
are now
consequent
respect
operating
be
thereby
from
reduced
least
that
o
this
not
excess
such expected carrybacks.
With
at
was
estimated
but
war
ending
years
postpone the
reduction
from
combined
The
taxes of the immediately precedr
ing year by the entire amount of
tax
rate
the
merit
.
changes.
here are the Vinson recommen¬
dations, the House action, and my
(1)
reduced
to
31, 1946, and
from 40% to 36%.
tined
the
Dec.
as
maximum normal and surtax rates
of
presented
transitional
date
85:5%
mittee,
first
In equity, the present two-year
carryback provision should not be
shortened, but retained until its
mission has been fulfilled.
There
The House bill fixed the termi¬
tirile'Owritandi Means iCom4
operating losses and unused ex*
cess
profits credits
(and corresponding two-year
carryovers);
The Tax Adjustment Act precipi¬
tates
the
carryback provisions:
expected carrybacks of operating
losses
}
<
Secretary Vinson, in his initial
made to carry back, tbr two
years>
'
proposed
u
losses,
stemming
expenses
operations during the
Instead, ^provision
period.
the
ash, the -1946 deficit was esti¬
mated at about $30 billion; it now
own
(3) Congress refused! taxpayers
Without
ease.
that year.
willing to forego..
of
ii
I
would be infinitely better, how¬
ever,
both for the Governmen
and for the taxpayer, to
recogn!
beyond
■
:
offse
budg
eting is impossible in the face
tends
that the Secretary was
revenue
period
conditions should
future earnings.
Treasury
lation will have been fulfilled.
"
1832)
THE COMMERCIAL &
(3) Existing double taxation of
Revision—Its Scope and Pattern
Federal Tax
1831) > tary's recommendation, and pro-r
^vided refund of "floor taxes" on
substituted
distilled1 spirits/ wines> and fer¬
extension of the present $500 sur¬
mented malt liquors and on stocks
tax exemptions to the normal tax,
of electric light bulbs, at a 1946
thus freeing about the same num¬
estimated cost of $160 million.
ber of
taxpayers as
under - the
The excise tax savings to taxpay-i
Vinson recommendation, and, - iri
ers during the remainder of 1946
addition, benefiting ail"individual
is estimated at about $540 mil¬
| taxpayers. Further, the House re¬ lions; /It should be observed that
duced the surtax rates by from
the effect of the recommendation
4 to 9.5 percentage points in each
is merely to fix a date certain for
bracket, so as to provide an over¬
rate reduction already in the law.
all minimum income tax reduc¬
:
(Continued from page
for all individual
The present 90% limi¬
tation was reduced to 81% of the
taxpayer's net income.
The esti¬
mated reduction is $2,627 million,
about $540 million more than the
Secretary proposed. V
of
10%
taxpayers.
Pjay - as - you - go
withholding
will, of course, have to be modi¬
fied as of next Jan. 1.
(5) The
Secretary
mended fixing next July
date on
in
recom¬
1 as the
which war-time Increases
taxes terminate.
The
Concurred in the Secre¬
excise
House
of the present 1%
and employee
for old-age and survivorship con¬
tributions.
'
'
.
-' ;
freezing
on
employer
in the
concurred
House
The
and should be remedied in one
a
number of available ways.
of
operation is indicated, and
the sooner the better.
Tax reform
rather than tax revision can pro¬
duce the remedy.
r
TC'f \
gical
effect,
the
Secretary's recommendation.
'
(7) On
its
initiative, the
own
the $5 automobile
and boat use tax after next June
30. The 1946 loss is estimated at
House repealed
.
;77777/
$140 millions.
-
tax year;
This advertisement is
neither
an
The
offer to sell nor a solicitation of offers to
buy any of these securities.
frequent tax
offering is made only by the Prospectus.
worry about un¬
threatening retroac¬
tive tax changes.
The promise
held forth by tax reform is so
alluring that one wonders r how
soon the Tax Commission will' be
created and put to work.
Only
through the type of tax commis¬
sion such as I have described can
we
look forward to a sane and
civilized taxing statute. 11ts crea¬
tion is the final step in the pattern
be
$49,000,000
Pacific Gas and Electric Company
Refunding Mortgage Bonds
June 1, 1945
of
and
consummation
revision—a
tax
devoutly to be wished.
When it
comes
we
shall recognize it for
what it is: a measure which pro¬
vides needed revenue for essential
3%, due December 1, 1977
dis¬
and
of taxation
which
expenditures; ; one
tributes
the burden
Due* December 1,1977
-
from
freed
certain
Series N,
tinkering proposals,
and industry will
business
while
October 18, 1945
First and
Congress will be spared
for
protracted
annual or more
recurring
need
consideration of
NEW ISSUE
Dated
A major sur¬
illogical.
ratic and
.
recommended fur¬
Secretary
ther
indefensible
.
(6) Pending congressional de¬
on the whole question
of
social security and its financing,
rate
is
mendation that all tax
cision
the
In
proved
of the normal tax and
tion
profits
the House ap¬ •,:(4) The treatment of capital
Secretary's recom-f gains and losses, especially losses. ;; While .officials speak of -the
reductions
(5) Exemption of corporations need of "thoroughgoing" and "farbe prospective. >' He argued that
reaching" and "basic revision" of
which are really business enter¬
reductions for the future were of
our
revenue
laws, real"tax;"re¬
prises. 777777,.77,77;' 7'-"':' 7
' ■>maximum incentive value.
No¬
form, as I have already, said; js
7
(6)
Integration
of
the
gift
tax
body could disagree,
possible only through
and the estate text's® 7-77-'7",'7' probably
The next "bite" or "bites" will
the cooperative effort of a com¬
Probably
the
most
crying
need
probably seek to eliminate some
mission consisting of legislators,
of the many "rough spots"-in ex¬ is for radical revision of the con¬
administrators,
economists,
ac¬
"taxable net income." countants, - attorneys and others
isting law and undoubtedly fur¬ cept of
ther reduce corporate and non¬ Specific statutory provisions, ad¬
versed in the science and practice
corporate rates.
The Senate may ministrative interpretations and and administration of/ taxation.
vote some reductions at once.
judicial decisions have produced, The results of true tax reform
over the years, disconcerting and
will be a
balanced budget, be¬
Tax Reform
arbitrary
distinctions
between
cause of mandatory provision that
"net income" determined by the
Among the "rough spots" (other
the inescapable relationship be¬
than
ponderous < and
involved consistent application of accepted tween expenditures and revenue
accounting principles
and con¬
language and endless cross-refer¬
be respected; the burden will be
ences) which cry for eradication stantly changing "taxable net in¬ apportioned equitably among the
come."
In
the
long
run
the
or correction in the next "bite" or
several groups of taxpayers; fiscal
"bites" at current tax revision, Treasury has not benefited from
policy and revenue will be inte¬
these distinctions, many of them
pending real tax reform, are: '
grated;
the .relationship among
ill-advised and inexcusable. The
(1) Taxation of inter-company
tax-levying authorities will have
result is two types of bookkeep¬
dividends.
been explored and mutually de¬
(2) 2% penalty for the privi¬ ing: business and tax, with the termined ; the1 statute will be
need
of
annual
reconciliation.
lege of filing consolidated re¬
stable, land . changing
revenue
turns.
'
! The gap becomes ever more er- needs,will be met by changes in
rates fixed at the beginning rather
than near or after the close of the
(8)
'
,
corporate
1545
Thursday, October 18,
FINANCIAL CHRONICLE
fairly
equitably;-a system
which, while it does not attempt
task of acting as a
incentive—taxation's role
is not that—does not discourage
either by the severity of its bur¬
den or by discrimination, business
activity,
industrial
expansion,
risk-taking and private invest¬
the impossible
business
Price 105.30% and accrued interest
ment.
Copies of the Prospectus may be
obtainedfrom such of the several underwriters,
in securities in this State.
7 Business Man's®
including the undersigned, as are registered dealers
7
Bookshelf
Auto Plan; The
Bank and Agent
Operations for the
Agent—National Asso¬
ciation of
Insurance Agents, 80
Maiden Lane, New York 7, N. Y.
—paper—500.
—A Manual on
Insurance
.The First Boston Corporation
,
W. C.
*7
r
'
""".-77
*7;®' 7.7 7'*®. 7'
>
Estabrook & Co.
.
Alex. Brown & Sons
,
v"V '•
L
^
'* "7
Company
Incorporated
'
./.ft.
-
•
l
.77
Weeden & Co.
t Hayden, Stone & Co.
*
'
Auchincloss," Parker & Redpath 7 Baker, Weeks &
V,.:
Coffin
& Burr/
Incorporated
Putnam & Co.,
,•*..>
///'..
1 y ? 7 ' „ 1 ' v '7 " 7""' 77 <
' 7V
.
,
Graham, Parsons & Co.
Incorporated
/r-,'■[■■■■■.
e:"
, i %\
Clark, Dodge & Co.
R. S. Dickson & Company
"
l>,,/ 7 *
*• •
-
»
Laurence M. Marks & Go.
*
Stroud &
\
R. W. Pressprich & Co.
Drexel & Co.
Wertheim & Co.
Phelps, Fenn & Co.
Langley & Co.
•
v
Equitable Securities Corporation
Dick & Merle-Smith
Bear, Stearns & Co.
'/
<
v./';*;
„
Harden
i
■
Big Business Iii A DemocracyTruslow Adams—Charles
James
Scribner's Sons, 597 Fifth Avenus,
New
City—cloth $2.75;
York
Britain Faces Its
;
Housing Emer¬
gency—Preliminary Report of Na¬
tional
Committee; on
Housing
Mission
to
Great
Britain—Na¬
tional Committee on Housing, Inc.,
512 Fifth Avenue, New York'18,
N. Y.—paper—25C.
®
"
G. H. Walker & Co.
.
7
•
J:'.'..V
;v.; ■
/.
Barometer
Theory
Dow
v
—
A
service predicting future
stock market—Four
weekly
trends in the
First of
Michigan Corporation 7 7
Stein Bros. & Boyce
7777'i:
77
Hannahs, Ballin & Lee .7..,
New York Hanseatic Corporation
v
Francis I. duPont & CoV;® ;7- 7 777
-
Company'
Starkweather & Co.
Inland Building,
Stocks—Comprehensive
charts showing 900
up-to-date graphs covering vir¬
tually every active stock listed on
the New
York Stock and Curb
Graphic
book of stock
'
E. F. Hutton &
Heller, Bruce & Co., Inc.
Laird, Bissell & Meeds
Swiss American
Corporation
Moore, Leonard & Lynch
Amott, Baker & Co.
Incorporated
...
Exchanges,
~
and
Boettcher and Company
$1—Gaylord Wood,;
Indianapolis, Ind.
trial,
weeks'
R. H.
Johnson & Co.;
A. M. Kidder & Co.
dividends from
and
ings
and
Edited
—Single
'
~
'
(150
copy
:
1936—
published bi-monthly
annual service,
$50.
monthly "highs
with
for 10 years, and earn¬
lows
'• 7;
pages), $10;
six revised issues,
•
•
- ;
-
-
'77
Volume
162
Number 4430
THE COMMERCIAL & FINANCIAL CHRONICLE
the greatest possible international
trade these yea
Heads Memphis Branch of
^
rs4 have, therefore,
been
-
?
By RUDOLPH SCHMIDT
*
~
?
c
Prominent.'Danish Merchant Describes the Development, Functions and
Statutory
Powers of the Oldest Existing
Exchange, Which Counts More Than 7,000 Members.
Explains Guild's Activities, Particularly in Assisting the Danish Government in Nego¬
tiating Trade Agreements and Points Out Task in Reviving International Trade. Says
U. S. Can
Chants' Guild and its Committee—is not only one of the
fnost
Ides t
Danish commercial
of the
'in this
change build¬
use
is
is
more
of
ago.
The Mer¬
in
the
Committee
and
Chairman
In
1914
of
the
12
of
number
the
Committee
viz.
13,
members,
a
re¬
presidency.
previous
the
placed
the
believe
t.: -....
consultative
of
tasks
the
of
members
increased
was
to
17; these members are all elect¬
ed by a bare majority at the an¬
nual general meeting of the Mer¬
chants' Guild, which is held on
the last Thursday of March, and
every three years 3 members al¬
ternately go to the poll. On the
same
occasion the general meet¬
ing elects 11 members for the socalled Board, which consists
of
444
members of the Guild,
and
work
national
he
and
of.
for the
the
time—the
bilateral
United
To
of Trade and the Ministry
Foreign Affairs, and also with
public author¬
ities concerning all questions re¬
garding commerce, customs duties,
taxes, ports, mail, telegraph, and
transport, partly at the instance
of the authorities dealing with
these questions partly on its own
initiative or upon requests of the
various trades, which are on a
large scale organized in special
trade associations, or of the in?
a
number of other
dividual members of the Guild.
One
of
the
tasks
involving
a
other
the
tional
these
division
of*
the
best
tee and the numerous members
of
lumber manufacturing
in Pearl River County,
MisS"., and later engaged in the
drug business at Ackerman.
In
1927 he joined the State Bank¬
ing Department of Mississippi as
ager
a
labor.
principles belong first
exemption from cus¬
tributed highly to impede the na¬
tural
growth
of
international
and foremost
trade which
erate tariffs and the acknowledg¬
ment of the most-favored prin¬
New Albany.
In 1933 he be¬
came
an
Assistant Examiner for
the Board of Governors of the
ciple to the greatest possible ex¬
tent, so that in this way the in¬
moted
was
toms
experienced after
all
crises previously, and espeT
cially
as
regards the bilateral
clearing agreements it can be said
that
the
extent
of
trade
is
de-
duties
at
or
rate
any
be
guaranteed.
It is,
however,
this direction may be able to re¬
sult in the effects aimed at, that
trade—as
caused for
far
as
countries
ropean
nearly
are
minimum.
For
the
wholesale
trade
as
the
all .Eu¬
concerned—
gradually been reduced to
nas
condition
men;
of
financial
great
a
the
a
It
same
is
a
war
1942.
economic
come
,
solved
time.
in
the
at
my
ous
different nations.
X
$25,982,000\
The New York
of
'
established till 1931.
Today
the
Merchants'
Guild
counts more than 7,000 members,
and the executive power is vested
in
wholesalers
All
hagen
are
in
First Mortgage 2
.
compulsory members of
as laid down
the Trade
Even
its
Regulation
Act
the' Merchants'
if
Committee
are
'
of
Guild
very
are guaranteed
unconditionally as to principal, interest and sinking fund payments, by agreement and by
endorsement, jointly and severally by The Pennsylvania Railroad Company and by the Trustees of the
property of The New York, New Haven and Hartford Railroad Company.
The issue, guaranty
old
that it is not only statutory pow¬
which have given the
Commit¬
viability and influence,
According to Danish law it is, in¬
deed, vested with certain tasks
and rights, but the way in which
it has exercised these powers and
in other ways displayed initiative
and
activity for the benefit of
In the
its
tee
counted
Denmark
in
Commerce
for
not
by the
is
and sale of the Bonds are subject to authorization of the Interstate Commerce Commission, and the guaranty of
the Bonds by the New Haven Trustees is subject to authorization by the District Court of
'
the United States for the District of Connecticut.
»
institutions it must be maintained
ers
1975
The Series B Bonds
1931 now in force.
and
Due October 1,
Copen¬
the Merchants' Guild
by
%%Bonds, Series B
Dated October 1, 1945
Commit¬
abovementioned
the
tee.
Connecting Railroad Company
not
ever,
opinion of Counsel, the Series B Bonds will be legal investments for savings banks under the laws of the States of California,
/r '
Maine, New Hampshire, New Jersey, New York, Ohio and Rhode Island, and for savings banks
■
,
,
.
'
*
organized under the general laws of Pennsylvania.
•
<.
.
•
,
-
*
/
n
•Price 100% and accrued interest
ac¬
statutory
support, which it. has
enjoyed
throughout the years, but to a
fairly greater extent by the wide
scope of its work and the activity
it has ^displayed.
The Offering Circular may he obtained in any State in which this announcement is circulated from V
only such oj the undersigned and other dealers as may lawfully offer these securities in such State.
Statutory Powers
HALSEY, STUART &, CO. INC.
*
Among the most important sta¬
tutory powers of the Committee
is
the
obligation to pronounce
opinions, that is to give declara¬
what must
tions
as
to
upon
as
usages
be
of trade
BEAR, STEARNS A CO.
or
good
customs, when infor¬
mation to this effect is requested
1817
EQUITABLE SECURITIES CORPORATION
OTIS & CO.
(INCORPORATED)
(INCORPORATED)
y
*
SCHOELLKOPF, HUTTON & POMEROY, INC.
L.
;
'
F.
ROTHSCHILD &, CO.
'
WERTHEIM & CO.
BURR &,
COMPANY, INC.
or private
not until the
authorities
public
individuals.
formation
BLAIR & CO., INC.
HARRIS, HALL & COMPANY
commercial
by
:
looked
It
of
was
the
Committee
in
HALLGARTEN
&. CO.
GREGORY & SON
obligation was im¬
posed by statute, but without be¬
ing
based
upoh any statutory
power it dates back as far as the
middle of the 18th century, and
thus the organizations of the com¬
mercial class in Copenhagen have
given declarations regarding
usages of trade, which to a great
extent have formed the basis of
HAYDEN, STONE & CO.
INCORPORATED
that this
PAINE, WEBBER, JACKSON & CURTIS
AUCHINCLOSS, PARKER &. REDPATH
MULLANEY, ROSS &, COMPANY
E.
■
■
M. NEWTON
&, COMPANY
IRA HAUPT&CO.
F. S. YANTIS & CO.
■'
..
^
•
'\
INCORPORATED
offered, when as and if issued, subject to acceptance by the Underwriters, to approval of Counsel, to prior sale and to withdrawal, cancellation or
tice. It is expected that Bonds in temporary fcrm will be ready for delivery at the office of Halsey, Stuart & Co. Inc., 35 Wall Street,
modification of the offer without notice.
New York 5, N. Y. on or about October 30, 1^45.
These Bonds
October 16, 1945
are
time
to
that this realization will
so
the road for a fairly quick
development of world trade for an
improvement of the living stand¬
ard and a guarantee of the
feeling
of solidarity between the numer¬
1
;
mission
pave
hope that the Amer¬
ican people will realize its world-
of
•.
step in
problems
are
headquarters
Federal Reserve System, was pro¬
to Examiner in 1934, and
has been Assistant Director of its
Division
of
Examinations
since
number of countries
by the world
the
advocates
in order that
with
at
a
disposal. The years of the world
war
have, indeed, together with
the ^radical
political ,> encroach¬
ments proved how international
Examiner,
an
mod¬
ternational freedom of action for
both commerce and shipping can
termined by the party having the
smallest export possibilities at its
The Board was, how¬
Guild.
Na¬
company
which may be
the
First
Bank,
■
considered the con¬
necting link between the Commit¬
bank
Hattiesburg, Miss.;
subsequently was employed
by the Capital National Bank,
Jackson, Miss. Following his dis¬
charge from the Army in Decem¬
ber, 1918, he became office man¬
both extended and secured
times
with
ness I. career
resources
have
the
as
and
going in efficiently
principles which in former
international
con¬
financial
States
of
Managing Director of*the
Memphis Branch, effective Jan. l;
next.
Mr. Pollard began his busi¬
country
No
Directors
of
Oct. 11 elected William B. bol¬
lard
question
of
clearing agreements with
thoroughly specified items.
especially during the last
on
policy will be ad¬
States.
economic and
ciency and—at
tendencies have
Board
virtue of their enormous
possibil¬
ities of production and immense
en¬
these
be
may
vital
a
immense
an
their
it
and
pro¬
single country can master the task
of giving rise to a turn of the tide
in world trade politics because
by
prospects
later
is
it
by
suing rearmament in Germany had
enthroned the idea of. self-suffi¬
a
increased
an
individual citizen's
the'United
as
economic
•
to
measures
buy what and where
chooses
vocated
in
commerce
the
world crisis of 1929-30 and the
to
Both
others,
there¬
possible to. get
importance of in¬
which economic
has
trade
consequence
the
of the
freedom
grown to con¬
dimensions after, inter¬
siderable
as
arises after
living standard and for the
tection
curing information with a view to
negotiations regarding the various
This
in
numerous
for
presidency of a Chairman and two
Elders.
In 1817 the management
was
reconstructed to the effect
a
con¬
istry
Rudolph Schmidt
building,
that
of
treatment
years or so it has had a very
active intercourse with the Min¬
established in 1742 under the
was
the
30
of
owner
this
,
on Dec. 31, un¬
provisions of the Federal Re¬
serve
Retirement
System.
Mr,
Glasgow entered the employ of
the parent bank in St. Louis Ion
Dec.
14,
1914, shortly after it
opened.
He was elected an As¬
sistant Cashier in 1919, supervis¬
ing the Credit Department,
lie
has served as Managing Director
of the branch since March 1, 1926.
To
succeed
Mr.
Glasgow,, the
der
must,
coercive
Committee; the Committee holds
said that
Guild
Copenha¬
which is
gen,
body for the govdepartments in connec¬
with
questions, partly at the es¬
tablishment of new consular posts,
partly at the filling up of vacant
posts. This is, however, only one
was
chants'
time
sular
than 300 years
■'»
our
thus
consultative
a
tion
"same as at the
built
acts of
and
soon
the
now
war
Glasgow, Managing Di¬
Louis, will retire
international
trade
has
been subject during the last 10 to
15 years.
To those circles which
-field.'fi
ernment
practically the
it
numerous
law
as
the
ternational trade for
•
.
of
of
Wm. H.
-
rector of the Memphis Branch of
the Federal Reserve Bank of St.
which
particularly great amount of work
the Committee has been and still i
Europe, and
its exterior
time
fore be
trade
agreements .with'! foreign
During the same great span of j countries and 'the participation
in
these
negotiations.c :'.;i V - '
time the Presidency and later on
-
ex -.
ing still in
—-
end
rid
for the Committee is that of pro¬
buildings,
of
Copen¬
hagen, ?■ it
is,
moreover, the
of
oldest and
impres¬
sive
o
The task which
the
.
•
*:/The Exchange of Copenhagen—the meeting place of the Mer-$
*
St Louis-Reserve Bank
diffi¬
enormous
The Post-War Task
.
Play Leading Role'in Promoting Foreign Trade by Lowering Tariffs and by
:
Upholding the Most Favored Nation Principle in Treaties, r: V : ; V
K
:
by
culties, while at the same time
they
have ? caused
considerable
reductions of the., living standard
of the population at large.
Chairman, Merchants' Guild of Copenhagen
*• ;
President Danish j Committee of the International Chamber of Commerce
,
■i
marked
THE
1834
England Nationalization
Text of the Bank of
.
and
AND FINAN¬
MEMORANDUM
/
EXPLANATORY
CIAL
1. The main purpose
of this Bill
transfer of the exist¬
(1) for the
ing capital stock of the Bank of
England to a nominee of the
Treasury (clause 1 (1) (a));
:
appointment by His
(2) for the
Governor, Deputy
Majesty of the
Governor
and
directors
(called "the court
Bank
of the
of direc¬
tors") (clause 2);
for enabling the Treasury,
after consultation with the Gov¬
directors.
"'
*■
The enactments set out in
(4)
(b) the Treasury
t
,
-
.
request information
from and to make recommenda¬
tions to bankers and, if so author¬
ized by the Treasury, to issue diT
rections to any banker for the
purpose of giving effect to any
payable annually by way of
interest thereon is equal to the
average annual gross dividend de¬
clared during the period of twenty
sum
provisions for the alteration
of the constitution of the Bank,
and of its charters and the Acts
relating to it.
;
' '
"
tial
immediately preceding the
thirty-first day of March, nine¬
hundred and forty-five, upon
years
,
(b)
subsections* (1)
Under
3.
teen
Bank
which that person was
Government stock.
Government stock
holder will be
such that the annual interest is
equal to the average annual gross
dividend
declared
during
the
period of 20 years ending on 31st
March' 1945.
The amount of the
capital stock of the Bank now
outstanding is £ 14,553,000.
The
change
3%
a
The amount of
to be issued to any
annual gross dividend
on
Bank stock during
average
declared
stock of
the regis¬
tered holder immediately before
the appointed day.
(3) The Government stock may
be redeemed at par by the Treas¬
':•>
1966, hfter giv¬
ing not less than three months'
notice in the London Gazette of
(4) After the appointed day, no
on Bank stock shall be
basis
the
of Government
issued in exchange
stock will be
£58,-
amount
212,000.
.
v
the
may
at any
1966, but,
April
5th
after
time
subject to such
be
Treasury
redemption, will
[clause 1 (3)];
perpetual
for
borrow
may
have
the
Government
(Schedprincipal of
of the redemption
purpose
para.
12).
The
and interest on the
%
Government
stock and the expenses of its is¬
sue,
management 'and redemp¬
tion, will be charged on the Con¬
solidated
Fund
(Schedule
I,
1 and 2).
paras.
^
(4) the Bank
Under clause 1
5.
will
pay
to
the
'
Treasury
each
half year, in lieu of dividends on
Bank stock, the sum of £873,180
such
or
less
greater
or
sum
order
the
of
Treasury
the
for
to
be
to his
be agreed.
The sum named
represents a half year's interest
rate
of 3%
per
annum
the amount of Government
to be issued; it
the
on
subsection
of
any
interest
otherwise
have
fallen to be paid out of the per¬
manent
annual
charge for the
payment
would
Debt
(Schedule
I,
para.
13).
A
(2) The Governor, Deputy Gov¬
and ; other
members
of
the court of directors shall be ap¬
•
I
this paragraph
notwithstanding
I
may
case
of executors,
shall have
Act,
'
THIRD' SCHEDULE
shall
and
Chapter '
Short title
*
BILL
p
to
Bring the capital stock of the
Bank of England into public own¬
3—(1)
as
Bank
cease
«with
it
by the King's
Majesty, by and
enacted
Excellent
■IK
much of
a
body
have
*
c, 20.
/A.,,v
7 Ann.
~
stock.
1696.
c.
The Bank of
England
seventy
The Bank of - England -
1
1.
c.
The Bank of England
8
The Bank
of England
,
C.
28.-v;:-
,
of
member
the
of
corporate
said
The Bank of.
-
EhgiahdT
Bank
stock,
members- of
In section
■'In
98.
In section
of England
shall
body
be
a
from "for the
Act, 1833.
;
Bank
be".*
words
•.
c.
32.
Bank
Act,
Charter
the
behalf
money
der that
paid by the Bank
lieu of divi¬
dends on Bank stock shall be paid
into
the
Exchequer, and issued
out
tion
of
the
debt
sums
Treasury in
the
to
of the Consolidated Fund at
times as the Treasury may
such
section;
direct, and applied by the Treas¬
the
,
Act.
The
13.
tv
:
-■i?.v
under this paragraph shall
for all purposes to
created and issued un¬
deemed
be
have been
ury
"subject
from
the National
under
money
Act, 1939, and any secur¬
ities created and issued to raise
period" to
of the
stock in ac¬
with section one of this
Loans
est
to the payment
of any inter¬
apart from
which would
this
| paragraph have fallen to be paid
Section twenty-seven ex¬
i844.
of
out
the
permanent
^
annual
charge for the National Debt.
14.
due
from the public to the
VBank of England.
accordingly
the said
body
on
raise
-
cept in so far
as
it
authorises the redemp¬
and
stock
■
the
of providing any sums
required by them in order to re¬
Act, ra:se money in any manner
which they are authorized to
nevertheless"' to the end
The
far as
tenor of
in
the words
V in section fourteen
corpo¬
shall be the members for the time
the
or
thirteen
one
■
The Treasury may, for
.12.
cordance
"disabled"; to
section
the
with
deem the Government
f
eight, the words
the end
7 & 8 Vict,
in¬
purpose
section sixteen.
The Bank
shall
being of that court together with
the person who for the lime being
holds
-
*
;
secur¬
Act
this Act.
words from "and also
subject" to the end of
•the section; in section
fifteen, the words from
"subject to redemption"
;
; to "and not otherwise";
,
rate, notwithstanding that he holds
no
i
of the section.
Bank
the
■:
Section thirty-eight.-
from
g. Act, 1800.
to
that
to the provisions of the
consistent
is
The whole Act.
Act, 1741.
39 & 49 Geo. 3,"
Act), shall have
references
11.. The Government stock shall
1716.
Act,
15 Geo. 2. c. 13
securities
to
National Debt Act, 1870, so
1709.
Act,
3 Geo.
if
be subject
.
c.
enactments
as
applies
(which
ment stock...
sixty-ope,
and seventy-
jseyepi. i
8 Ann.
the National
to
1939
issued 'under
ities
Sections sixty,
1708,
Act,
enact¬
any
Schedule
Act,
effect
thirty,
thirtytwo, fo,r ty-f ive and
£orty~hine.
-
30
(
.
issued under that
*
Sections
1
-/v.
\
.
Paragraphs 3,4 and 5 of the
cluded references to the Govern^
The Bank of England
Act,
as
otherwise dealt with the? Bank
or
r-Sectiontwenty-five.. 1
effect;
the advice and consent of, of the Treasury.
,1-V
8 & 9 Will. 3.
c.
!/
.
member of the court of di¬
the
Be
20.
The Bank of England
Act, 1694. ' ;
:
(2) As from the appointed day
every
England and other banks and for
purposes connected with the mat¬
most
c.
meetings1 of the, 3 &* 4 Will, 4.
~
•
So
to
rectors
1
M.
respects
they might have held, disposed of
certain
repeal
with the Gov¬
all
in
therefor
tion
the
Second
Extent of
limits the duration of the
as
ership and bring the Bank under
public control, to make provision
with respect to the relations be¬
tween the Treasury, the Bank of
ters aforesaid.
:
.
rights
sub-
same
trusts and
same
otherwise deal
or
:
'
office, qualifications and em¬
ployment of members of the court
court.
the
the
in
held
be
on
ernment stock issued in substitur
and
Session
respects the tenure
and
The Government stock issued
in substitution for any Bank stock,
Loans
of
directors
VI:i*
pointed day.
may
(3) The provisions of the Sec¬
Schedule to this Act shall
of
grant of represen-
no
tation to them. until after the ap-
Finance
1942;-(which empowers
ond
as
effect
that there is
i
the
47-of
Section
6.
pointed by His Maiesty.
have effect
the
be; and, in the case of
administrators, as well as in the
case
,
"Parliament,,
ernor
ment
['
on
list surip
of the;
•
vivor of the joint holders, as
ENACTMENTS REPEALED
court of directors.
stock
will be applied to
which
Nation
and after that
day there shall be a Governor, a
Deputy Governor and 16 directors
of the Bank,-who
shall-be the
office, and
issued
personal representatives, or
survivors or the personal
representatives
'fheLTr&guijr.to* make-regulations
be! respects the transfer and registfa-
order madev Hinder
last foregoing
or
director of the Bank shall vacate
their
the
to
8.
Debt.
the National
a
/
'
Governor
Deputy
Governor,
Government stock pur¬
ment in any
of this
purposes
section.
payable to the Treasury un¬
subsection.
2—(1)
On the appointed day,
all persons who are, immediately
before that day, holding office as
?
Bank
-
stock
the last foregoing
der
as
may
at the
sums
of
one
or
any
•
•
respect to the
and
to; the
with
effect
of
shall be deemed to be duly
respect of
in
sums
such
with
accordance
April and of October, the sum
the
the holder
holders
any
18
(5) The incidental and supple¬
mental provisions set out in the
First Schedule to this Apt shall
'\
•
before
porting to be issued to him, or to
him and the other joint holders,
'
be redeemed at par on or
immediately
as
joint
stock,
of £873,180, or
<
Government stock
4. The
the Bank
shall be paid to the
Bank of Ireland out
Consolidated Fund such
the
the
■
day any dead per¬
registered in the books of
is
son
Bank and the
of
and *
the appointed
redemption
or
Where
7.
fifth day
Treasury, on every
such less or great¬
er sum as may from time to time
be
agreed
upon
between
the
Treasury and the Bank.
be
Bank
for
of
Bank shall pay to
d
I
.
in lieu of any such
but
declared
Part
the manage¬ j ect to the; same, powers, privi-,,
financial year of the leges,
provisions, charges, re¬
Government
stock as may
be straints and liabilities as those in; provisions (if any) in that behalf
agreed upon between the Treas¬ on or subject to which'the Bank
as may be contained in any char¬
ury and those Banks respectively.
stock*, was held immediately be¬
ter of the Bank for the time being
3. The interest on the Govern¬ fore Hhe appointed dayy^ and, so asi
in force and any byelaws made
ment-stock shall be payable on | to'give -effect^ to arid not 'revoke ;
thereunder.
the fifth day of April and the any deed, will, order, mandate,
(3) The Bank may, if they
notice of other instrument or tes-»
fifth day of October in each year.
think it necessary in the public
tamehtary
or : other disposition 1
4. A full half year's interest on
interest, request information from
disposing of or affecting the; Bank
and make recommendations ! to the Government. stock shall
be stock, and every such instrument
bankers, and may, if so authorized payable on whichever of the dates or
disposition shall take effect
mentioned in the last foregoing
by the Treasury, issue directions
With, reference to the whole or; a ;
to any banker for the purpose of paragraph; qcpurS'first after the
day;- and ; shall
be prop^ionatet partyv as; the ; case ^
securing that effect is given to appointed
ofwthe; substituted i Gov- Hi
deemed to have accrued from day fnay
any such request or recommenda¬
ernment stock.
' 4•
• - *
v
to day during the six months pre¬
tion.
.;■> .:,v
;
Trustees; ^ executors^a^^all
ceding thatdate."\'t "*■' 7",
(4) In this k^ion & ^*presV
other holders in any representaV
sion
"banker"
means
any;,; such ; V 5. The interest on the Govern¬
tive or fiduciary capacity of any
person carrying on a banking un¬ ment stock shall be paid out of Bank stock may hold, dispose of
dertaking as may be declared by the permanent annual charge for
in
rectors
banker
dividends the
to
to do soy
their intention
said
the stocks to which
said regulations apply.
2. ; There
\
<
.
dividends
12%. On the,
laid down in the Bill the
stock
time -after the
ury on or at any
fifth day of April,
those 20 years was
nominal
Bank
of
amount
the
of clause 1 the holders of
stock will receive in ex¬
and (2)
-
in
Fund'*
(2.) Subject to any; such direc¬
tions, the affairs of the Bank shall
be managed by the court of di¬
such that the
be taken to be
son,
,
tioned
men-"
among
thereof, shall be charged on and
issuedJ out of the Consolidated
Fund of the United [ Kingdom or
the i growing ; produce .* thereof
(hereafter in this Schedule re¬
ferred-; to i as "the Consolidated
v
cent, per annum; and the
equivalent amount of Government
stock shall, in relation to any per¬
contains consequen¬
2. Clause 3
stock").
per
(3)).
(clause 4
the "Government
(2.) The Government stock shall
bear interest at the rate of three
recommendation
request or
such
as
to
England
the : issue
with
shall issue, to
the person who immediately be¬ Schedule.
•
'
..;
ernor,
to give directions to the fore the appointed day is regis¬
/ 4—(1) The Treasury may from
Bank, but subject to such direc¬ tered in the books of the Bank as time to time give such directions
tions, for entrusting the manage¬ the holder of any Bank stock, the to the Bank as, after consultation
ment of the Bank to the court of equivalent
amount
of
stock with; the Governor of the Bank;
directors (clause 4 (1) and (2)); created by the Treasury for the
they think necessary in the public
'
(4) for enabling the Bank of purpose (hereinafter referred to interest.
(3)
stocks
the
in¬
were
the
connection
incurred in
expenses
hereby repealed as from the ap¬
pointed day to the extent speci¬
fied in the third column of that
in
are
immediately before the ap¬
among
principal of and interest
the Government stock, and any
on
the Third Schedule to this Act are
which
cluded
The
1.
regulations
any
if the Government stock
cited as the
of England Act, 1945.
,
in
Schedule
pointed day, shall have effect as
they incorporate the Bank, and Bank
thereafter, subject to the , pro vi¬
SCHEDULES
sions of this Act, the Bank shall
First Schedule
be constituted and regulated in
accordance with such charters as Incidental and Supplemental Pro¬
may from time to time be granted
visions as to the Government
by His Majesty and accepted on
Stocks and Sums Payable by
behalf of the Bank by the court of
the Bank of the Treasury
*
Treasury;
force
6—This Act may be
as
follows:
1_(1) On the appointed day—
(a) the whole of the existing
capital stock of the Bank (herein¬
after referred to as "Bank stock")
shall, by virtue of this section, be
transferred, free of all trusts, lia¬
bilities and incumbrances, to such
person as the Treasury may by
order nominate, to be held by
that
person
on
behalf of the
Act), and
thereunder
made
^
passing of this Act.
of the
Eleventh
the
of
to that
the expression "the Bank"
the Bank of England;
1
specified
descriptions
I
Part
shall come into
the appointed day shall be
such day as the Treasury may by
order
appoint,
not being later
than three months from the date
far
the Bank except in so
ters of
authority of the same, as
provide—
is to
His Majesty may
assembled, and by the
Parliament
day
revoke the char¬
(3) As from the appointed
Spiritual and Temporal,
Commons,
in this present
the
of
"-'/V •"v'* ", >/■■■.■
(b)
~
the Lords
tion of stock and registered bonds
revoked by a subsequent
(6) This section
means
,
ENGLAND BILL
'
(a)
andby
OF
or
order.
operation on the appointed day.
5—For the purposes of this Act—
special arra ngement the text of the measure introduced in the
British Parliament on Oct. 10 to nationalize the Bank of England
The bill was Presented by Hugh
Dalton, the Chancellor of the Exchequer, supported by the Prime Minister, Clement L. Attlee,
Herbert Morrison and Glenville Hall.
'
, . ;
. .
.
,,
The text of the Explanatory and Financial Memorandum which accompanied the Bill, together
with the Bill itself and the Schedules, follow:;
BANK
varied
*
has received by
The "Chronicle"
Thursday, October 18, 1945
CHRONICLE
COMMERCIAL & FINANCIAL
gains
In charging
of
the
V
the profits and
Bank for
the pur¬
,
33 & 34 Vict,
c.
'71.
55 & 56 Vict,
c.
The
National
Debt
Section seventy-two.
"
Bank
Act,
1892
Subsection
seven.
48
*
*
*
a
-
c
of
of income tax for any year
assessment,
j the Bank
Act, .1870.
The
poses
i
(1) of section
as
the
shall be allowed
V.
sums
paid by
aforesaid in that year
(Continued
as a
on
deduction.
page
1840)
,
*
"-1
*I
[Volume
162 * Number- 4430
THE COMMERCIAL & FINANCIAL
CHRONICLE
British-Finnish Debt
f
->
(b) the, equivalent ih sterling of
the Finmark sum
due, calculated
in accordance with the
provisions
of Article 8(2) of this memoran¬
dum, in the case of debts ex¬
Memorandum Provides for Liquidation of Indebtedness
Between United Kingdom and Finland. :
.On Aug. 2, an agreement was
Government and Finland designed
;
liquation of indebtedness between
the
two
countries.
change rate between the
payments
British
and
the
ment
Kingdom
Departments
in
Govern¬
of
respect
transactions
the
to
curren¬
carrying
resident or
business in Finland,
on
shall be credited to the B account.
from the
opened
application of the British laws re¬
garding enemy property and trad¬
ing with the enemy,
r
The text of the. Agreement fol¬
lows::
ignated
The United
ities
will
the
aS
of
-♦
;•
,r
Sums payable from
to
sterling
a
< hereinafter
referred'
to
resident in Finland with
a
in the United
of
the
United
dependencies, which would
have been eligible for transfer un¬
der the Finnish exchange control
regulations
of
1941.
in
The
the
in
force
sterling
B
on
sums
account
may
Dec.
6,
standing
also be
made available for the transfer of
such other classes of debts already
due to the "persons aforesaid as
under
Jhe ex-
control
force in the
- regulations
in
sterling area territory
concerned.1
7
Article 3
.
{
The
balances
counts will be
ments in the
,
agreed
between
the
United Kingdom and Finnish au¬
thorities.
" 4 ■- ♦
-
Finnish
on
(b)
acr
at
available for pay¬
sterling
area
be
may
all
the
due
of
the
date
force
and for
sums
of
this
payable
coming into
of
memorandum
of
and with the
agreement
regulations in force
crued and bonds due for redemp¬
tion of the following loans, viz.:
in the United
Kingdom frdni time
accordance
with
memorandum
to time.
the
terms
of
''
The Government of the Repub¬
lic of Finland 5% Loan, 1923; — The
Article 4
Finland's Bank
\
Finnish
authorities
will,
basis of the official rates
Finland
in
sale
of
for
the
Bonds, 1927;
the
on
The
published
of
purchase and
Industrial
Finland
Bonds
sterling against' Finnish
"
Municipal Mortgage Bank
Sterling Mortgage
of Finland 5%
agent of the
as
have
ities:: under
Finnish
debtor and
transfer
effected
todians to
account, fexcept in the
than
sterling
case
view
to
ment:
Finmarks.
or
and
through the 4B'
other
With
a
1
and
of
the
claims
against
the
will
consider
debtors,
action
for the
(b)
if creditors
identify
their
the Finnish authorities will assist
as far as
possible;
the> moneys
referred: to
in
this
Finmarks the sterling
ance
with
the
of
terms
7(d)
Finland's
the
Bank
Bank
of
with
a
7
advise
the
receipts
Treasury
to
In
remitting to
on
the B
f C(ii) sell such sterling at their
disposal as may be required of
them for all payments which resi¬
of Finland, under the ex¬
Loan
dents
account.
(2) The Finnish authorities will
in
the
United
Kingdom
and Finland/and subject to their
respective policies in respect of
7 the control of capital transactions,
td^void all delay and restriction
any Gov¬
colonial de¬
be
may
Article 16
or
Finland sums
each
country will
indicate,
from
on
the
as
to
information! received
other,
the
the ;> debtor
country has secured
charge therein. ..77
the other
legal dis¬
a
from
time
the
dom:
to
No
■
assigned'to i
regula¬
King¬
control
change
in
the
ling
shall
area
have
Finland's
Bank
England.
In the. event of
by
stantial -change
the
in
that
the
transfer
between
of
residents
Kingdom
and
current
of
the
residents
debts
United
of
Fin-
land.
7<
7
colonial
of
provisions
of
this
I
only as
be agreed with the Bank of
England, f ' ^
imay
'
■
7 (1)
The
present
memorandu
of agreement will come into fore
on
Aug,.17, 1945, and will remai
in force until June
30, 1947. L-
(2) Not later than Dec: 31, 1946
the United Kingdom and Finnis
authorities
will
review
visioqs of
the present
dum /with
a
and will keep thenradvised of any
subsequent changes.
This is under
I
as
view either to expe
diting the transfer of any of th
referred
sums
in
to
Article
to
the
final
no
7
*
7V.-77 r.'-r.-;.' Article 18
A
Finnish
text
of
.
this
a
Finnish
account
in
their
name with the Bank of
Eng¬
land, to be designated "Finland's
Bank
'B'
Account"
(hereinafter
Finnish authorities and the United
son
by whom payment
moneys
per¬
made
was
now/held
of
legislation
^
by
authorities.
be equally authentic.
should
referred
for
to
as
"the
B
account"),
the
purposes set out in
ticle 8 of this memorandum.
(2)
the
7
an
offer
such Stock..
to buy, any of
.
77:
r
: '
-:
•
.
!
-
.
'"
.
■'
Industries, Inc.
k',-
■
J
*
■,(
*
-
•
•
*
Preferred Stock
(Cumulative), 3%% Series
($100 Par Value—Convertible Prior to September 15, 1955)
be
7' 7)
I
.
:.
/
Price $ 103 Per Share
r
V
(plus accrued dividends from September 15, 1945)
date
'
121/£%
of
all
; -
moneys
Ar¬
will
England to
Board
account,
may
be obtained from only such of the -undersigned as may
legally offer this Stock in compliance with ihe securities laws of the respective States.
as
Harriman
transfer
of Trade out of
for
remittance
creditor entitled
Ripley & Co.
Incorporated
arrange
Glore, Forgan & Co.
for Finland's Bank to instruct the
to
7.
j
1
Reynolds & Co.
'
•
V
Lazard Freres & Co.
the
to payment,—
October
16,
1945.
'
.•
Kidder, Peabody & Co.
to
the B
(a) the sterling sum due, in the
of debts expressed in ster¬
ling, and i
\
'
case
due
Copies of the Prospectus
7
or
authorities
be
Thereafter
London, Aug. 2, 1945.
the
7.- 60,000 Shares
-
'yr--
payable to persons
carrying on business
Kingdom or in Brit¬
colonial
dependencies,
the
Bank- of
shall
agreement
offering of this Preferred Stock for sale, or
as an
solicitation of
Dresser
on
been paid to the Finnish 'author*
ities
under' Finnish
Custodian
the
7
memo¬
which in their
cases
The offer is made only by means of the Prospectus.
■
Kingdom and
Article 9
ish*
open
-
■
randum
circumstances to be construed
■
(1) In cases where' moneys have
\
will
6
liquidation of the
..
7:7
it % isr agreed
*
lished
in1;-Finland, on
when the debt fell due.
Finnish
8
this memorandum of agreement o
prepared and agreed between the
anoffer to buy, or as a
due shall be transferred into
in the United
Finland's Bank, acting as
agent of the Finnish authorities,
pro
United Kingdom and Finnish au¬
of
7
sterling at the official rate pub¬
IArticle 7
(1)
the
memoran
Kingdom
(2) In the case of debts ex¬
pressed in Finmarks, the Finmark
resident
memoran
dum.7
77 *'7/ Article 17
v
7 Bank shall be invested
an
the English and Finnish texts will
dependencies,
-
which
authorities
,
Article 67
Any sterling held by Finland's
th
list,
Which might have to be made I
the
'
-/
o
sub
Nothing in this memorandum of
agreement 7 shall
prevent
the
1
sum
a
thorities will examine the change
.
on
Bank
United Kingdom and Finnish
"
made through the B account. 77'
;
fp
effect,
until it has been communicated t
or of any of the
betweeh the United
Finnish
o
agreeing to the return to the
■
~
Kingdom
■
list
the purposes of this memorandum
account,.
Article 13
time
exchange
territories comprised in the ster
for
amount
in
ling area" shall have the meanin
the settlement of these obligations
-
payment
-
thorities, in
,
Loan, 1934.
,-.,7,
7(c) other claims made by or
British
^
For the purpose of this memo
randum the expression "the' Ster
:
Mortgage
:
1929'
United
concernec
make analogous arrangements
opinion justify/ this, action,- frpm
behalf of the Government of the
exchange control regulations
force
to
ask
Mortgage Bank
Sterling
6%, 1930;
f
in
77,
make payment in such terms
-
the
to
British
inform the Board of Trade of the
.
Article 5
framework of
of
■
author¬
arrangements made in Finland for
Osakeyhtio Waldhof Aktiebolag
5V2% Second Mortgage Debenture
change control regulations in force
in Finland, are permitted to make
to residents of the sterling area.
t endeavor within the
7
•
creditor in the
a
Unijted Kingdom
>•-
•••
transferred under Article 9 or Ar^
tide 11 of this memorandum, the
monthly of
and payments
undertake
ernments
pendencies who
.
from Finnish accounts;
The United Kingdom and Fin:'riish authorities will make every
;77 -:77v7 .!
Article 12
•!
—
which
au¬
other
; the
Finnish .' Custodian
statement in respect of
above.
Article
will
the
.
for
such moneys,
corresponding to the
statement described in Article 9(2)
accord¬
England
as
used
preceding sub-paragraph. 7-.r v
(4) The Board of Trade will
•
8(2) of this memorandum; 7:77
thorize
be
purpose
Article; in the jcase of debts ex¬
■authorities of
pressed in
suips will be calculated in
will
ceive
the
moneys
paid to the
United Kingdom Custodians which
have been transferred under the
7(c)
Finland's Bank, on behalf
of the debtor, will request the
Bank of England to transfer ster¬
ling to the creditor in respect of
the
transferred into the B
They
same
furnish
debtors
moneys
as
possible, to thC Finnish
creditors: who, but for the war,
.would have been entitled to re¬
unable to
are
and
than
as soon
outstanding indebtedness;
trace
(other
in the B account.
\ • . 7
<
(3) The Finnish Custodian shall
arrange for payment to be made,
pf. the
their
Kingdom
tions in force in the United
Finland
moneys
whatever
courts
ities
,!,-7
Article 15
United
in
account.
legal obstacles
may exist in the w^y of establish¬
ment and enforcement in the Fin¬
nish
v.77
The
by
moneys so
'
"(a) the" Finnish authorities will
creditors
transfer to the
or
pay
facilitating such settle¬
'
pay
o;
7
Finnish
Custodian moneys held
by them which would, but for the
war, have been payable to persons
payable to British subjects>. The
Finnish authorities will direct the
Finnish
Custodian
to
of pay¬
ments due in some
currency
City of Helsingfors 4% Sterling
Loan, 1909;
•
City of Tammerfors 4^% Ster¬
ling Loan, 1910;
r
7 Osakeyhtio Waldhof
Aktiebolag
7%
First
Mortgage
Debenture
tnarks,—
\ ' (1) buy sterling offered to them
direct
Custodian
creditor
about its
regulations-
'
in¬
(2) His Majesty's Treasury will
the United
Kingdom Cus¬
not
legislation will unless otherwise
agreed be settled, if possible, as
between
may express
control
law.
revenue
au¬
about
such 'property
give full consideration
view which the Finnish
o
.
agreement
transfers to other Finnish accounts
in
which
paid to the Finnish author¬
and
to persons wherever
resident in respect of interest ac¬
this
:
in Finland to the Gov¬
persons
onial
Kingdom, provided
required
8
exchange
Peace
a
administration.
-
that permission has been obtained
change
1
.
\;
where
.
Article
possible
as
of
will
any
authorities
.
Kingdom
or to
persons resident or carrying
on
business in the United King¬
dom or in any of the British Col¬
bank
a
-
and
v
in
soon
ities will provide the Finnish
thorities with all reasonable
'•7,'::
Article-10 ; /'"• /;/v 7, 71
(1) Sums of the kinds referred
to
as
conclusion
memorandum
agreement shall be deemed fcraf
feet the position of
money anc
property under United Kingdon
the per¬
formation
to
Government of Finland
ernment
a
as
name
Article, distinguishing
address of the debtor and creditor.
been
the
to
Treaty with Finland. In the mean¬
time, the United Kingdom author¬
sums
the
account
."Finnish account") in the
(a) all
or
after
paid
removal of legal
obstacles v (in¬
due and payable at,
cluding periods of limitation) aris¬
the date of the coming into force
ing from the war which may pre¬
of this memorandum of agreement
vent an
equitable settlement of
from
Ident in the sterling area:to per¬
sons resident in Finland may be
credited
account.
in respect of:—
-
fes-
persons
and to the B
(1) The use of the sterling sums
standing in the B account shall
Article 2
x
payment
ensure
be restricted to making payments
'Op/4
\A ;'-*•* ->^
-
f
Article 8v
to
be
case
remove
Kingdom
and
Finland.
Moneys becoming payable to Fin¬
land in respect of such transac¬
tions will not be payable to the
United Kingdom Custodian.
1
4A'
Bank
the
United
'if \-V
to
count
author¬
effect
7 financial transactions between the
'
"Finland's
to the
Finnish creditors in respect of all
sterling sums credited under this
permit.-of the re¬
sumption .of private trading and
so
with
(3) Finland's Bank will under¬
take
Trading with the Enemy legisla; fion in force in the United; King-;
dom.
Bank
Article to Finland's Bank-'A' Ac¬
Kingdom
relax
Finland's
as
Account."
Article 1
v
by
the Bank of England which is des¬
Memorandum of Agreement
to
the amount due, the
in which the obligation
expressed and the name and
was
or persons
The balance of such moneys shall
be credited to the Finnish account
has resulted
this
in each
Finnish Government, the Finnish
authorities,
It ap-
which
under
due
moneys
entitled
sons
currency
7 plies merely to the procedure to
be followed in settling indebted¬
ness
,
the
the
s
United
commercial
dinavian countries, this one does
not
provide for fixing the ex¬
cies of the two countries.
facilitate
from
similar
agreements
that
Great
Britain has drawn up with Scan;
to
between
«•
other
Unlike
concluded
furnish the Board of Trade as soon
possible with a statement show¬
returned
Nothing in this
-
regulations,
be
Article 14
•
possible under the Board of
Trade and Custodian
will
b;
or
the Finnish authorities.
tent
as
ing
United Kingdom Custodians
1
and
,i
m.
'
'
(1) Finnish property situated in
the United Kingdom will continue
to be preserved to the fullest
ex¬
(2) The Finnish authorities will
'
P&k
Article 11
pressed in Finmarks.
V.v
October 18, 1945
CHRONICLE
COMMERCIAL & FINANCIAL
THE
Stocks
Excess
Profits
Taxes
on 300
".y.#'7#'7'vy;'#
v#■■ v#;
A#
I yw;7..7#7:##;7####;#;#;;y;^
j
Name of Company—
Aircraft
1944 Excess
Earnings
Profits Tax
per
Share
Earnings
craft Corp..
24.76
4*86.
38.55
Martin (Glenn
Av., Inc.--
2.86
.
Heyden Chemical
41.03
Monsanto
9.99
42.44
-
Republic Aviation Corp.
Air, Transport—
11.74
Inc;
—
Borg-Warner Corp
—
Briggs Mfg. Co
Briggs & Stratton Corp.
Budd (Edw. G.) Mfg. Co.
Continental Motors Corp.
16.85
6.21
*
15.28
10.71
4i.87
1.28
■7
Cons.:
——-
Chrysler Corp
Diamond T Mot. Car Co.
4.71
11.63
Fed. Motor Truck Co.—
1.58
4.03
,4.29
"3.68
8.37
Fruehauf Trailer Co
General Motors Corp.—
Packard Motor Car Co..
Reo
Motors, Inc
& Co.—
Norwich Pharmacal Co.
0.89
Parke, Davis & Co
Sharp & Dohme, Inc.—
Sterling Drug. Inc
1.55
0.97
1.09
3.28
4.54
1.06
United
1.62
5J52
Drug, Ir^c,
Electrical Products—
0.27
? 1.20
10.31
0.74
0.26
1.74
5.39
White Motor Co
3.38
10.30
Corp
Corp
Johnson
Co.
Co.
Baking Co
General
—
1.46
Mills, Inc.-—
?8.07
8.68
##1.16
2.11
Purity Bakeries Corp..United
Biscuit
Co.
of
2.69
2.27
America
—
# 3.10
8.21
d2.31
2.44
Baking Co. "B"
Chicle
Co
Beech-Nut Packing
Canada Dry Ginger
t
Co.-#
Ale,,
6.50
4.76
5.59
V
10.90
2.34
Coca-Cola Co.
5.65
3.29
Hershey Chocolate Corp.
6.08
1.02
3.15
8.70
•
—
Pepsi-Cola Co.
Wrigley (Wm.) Jr. Co.-
\
4.36
9.29
Paramount Pictures,
Co., Inc. —
—
Westinghouse
Electric
2.04
—
Building—
1.13
5.60
—„
Crane Co.
-
2.58
6.39
4.94
31.69
# 3.15
v
Brown
7
Otis
#
4.66
Honeywell
Elevator
Co
0.91
3.50
3.62
2.59
"3.89
•
0.07
#
,
.
2.56
Plate
Co.—
Pratt
1.10
&
Lambert, Inc.Company
U. S. Gvns
.
P^'ted
Co
7-23.19
#
8.13
4.31
7
Harvester
&
Co.
Towne
facturing
,
:
2.78
0.95
60.41
0.52
1.18
3.20
Manu¬
Co
Air
Reduction
•
Cable
2.99
9.13
American Laundry
Co.. Inc.
2.15
2.75
2.93# 7
Foundry
Co
Bucyrus-Erie
Co
Co
6 53
2.00'
0.08
I
V'
Bag
Corp.
0.71
6.85
1.25
5.14
•'
ers,
1
8.90
63.86
7.08
2.75
7.62
„
37.67
:
0.62
0.76
3.36
1.41
5.69
1.79
12.83
0.90
&
82.04
:7 8.38
2.64
7 9.09
81.97
1.20
^
Corp..
——
0.39
1.47
2.09
10.26
3.09
?.67
0.99
1.87
0.32'
3.01
1.52 f
H2.95
0.06;
&
±2.06# # 4.90
Co.—
Steel
.
2.71
—
■
-
0.49
9.93
30.42
63.44
13.76
5.23
36.88
3.35
Walker-
Refractories Co.
Steel Co
x—r
& Laughlin
Steel
1:18
0.43 7
6.28
7.10
2.86
Corp.---71--——^ ■
Steel Corp._^_
1.48
7
487
4.66
1.44
4.40
•
4.72
•
1.88
## Coro.-;
3.85
4.51
Wheeling Steel Corn
Youngstown
Sheet > &
:
Tube Co. -7
Interchemical
Corp.
•
,
Sugar—"
•
.
Sugar
American Crystal
'•
:
Telephone &
•:
- •
Telegraph—
TAm ericari:; TeL 77 8c
Co.
New 7
7'
Tel.
1.59;
101.00
Co#J--.-—v-
TeL
—
-
Co.
2.41
6.30
2.11:
7.7 #
7Textile0—
A dams-MilJis
'
*
#
10.47
6.61
Pacific Tel. & Tel. Co.—
Bond
3.12
2.44
#
Com.
r,
:
Stores. Inc.—
America
Mills
Corp.
—
Cl"ett, Peabody
'
Inc.
%
8.42
England
Cei°nero
101.51
■#. v/.f «l>:
3.49
4.25
.
?#
'
B'""linetcn
Type Found¬
r
of
v
,3.69
2
5.88
•
287,7;
6.00
•
1.25
—
6.93
1
/
41.06
Corp,
Steel
Republic Steel Corp._._
Rustless, Iron & Steel
.
3.60
;
4.12 7
—
—
9.77
,
32.27
1—:
American Viscose Corp.
Paper
Inc.
*
22.02
22.02
7. America
of
Cuneo Press,! Tnc
/
5.86
■
Inc.
National
Printing & Publishing—
.
American
1.00
&
11.51
————-
Carpenter Steel Co
Crucible - Steel ;Co.
Jones
—
Corporation
6.01
6.25
"B"—w-
Co,
7;; Co.
4.29
'
L-
6.73
Allegheny - Ludlum
Steel Corp.^#-;—w---American Rolling Mill
3.07
Zelletrbach Corp.
Un;on
&
1.63
Acme
Inland
(Robt.) Co., Inc.—
Mead
'
Ma¬
Co.
Machinery
Blaw-Knox
(N. J.)—_
of Ohio—
Kimberiv-Clark
'1 '
&
Co.—_1
chinery
America
13.58
1.60
*2.26
Steel & Iron
5.91
1.35
Gair
-
•*;
Co.,
:
1.92
0.75
•
4.61
t*
7
•
2.03
1.16
-Corp.
11.81
3.07
Inc.-——---7-— # 43.54
Sons,
102.42
Standary Oil of Ky
International Paper Co.
Chain
4.40
0.23
Crown
-
American
Chemicals—
3.60
Industrial—
American
2,74
3.87
Container
Minneapol is-Moline
3.12
1.51
19.90
3.34
Champion
Paper
Fibre; Co.L:^j——
Agricultural—
-
8.90
Standard Oil of Indiana
!
3.24
.1010.78
1010.78
Corp
Kellogg
Harbison
J_—
Paper—»
Ami
Bethlehem
Standard Oil of Cal.-_L
2.76
24.61
2.98
Skelly Oil Co.i^—
0.74
Machinery—
10.97
1.05
Kinney (G. R.) Co., Inc.
7
Bon
;
4.08
Standard Oil
-
0.53
7.36
Standard Oil
Co.
1.22
0.95
3.13
7
7.36
Soap & Vegetable Oils-
Republics
Co.
1.31.7
"
-1.57
i——
Oil Co.-_L—w-
3.42
.
5.48
51.63
Oil
2.35
Build-
Co.—
Boat
3.93
Ma¬
Lion
4.84
building—
ing Co.
■■■
Spencer
5.93
Pure
9.19
>
7;
0.96
v--r—---~7
C
7*2.18
2.28
-
#.
;
20.967;
3.07
Walloaper, Inc.—
W-lwo-th
Yale
'm
1.82
Corp.'
13.34
6.63
6.08
Trare
2.46
•
7
Ship-
Shipping &
■;
1
11.79
Glass
Co.
v
:
7.
•
Pittsburgh
Oils
7
1.46*
(J. C.)
$32.90
;
A merle an
1.90
\
3.76
1.05 7
Co.
Sears, Roebuck & Co-
•
0.50
—
Procter7& Gamble Co.-*.
——
Underwood Corp.
#
Wesson Oil & Snowdrift
.Register
•Co..7w-^-L—t——
Remington Rand, Inc.—
2.83
;
2.80
Co.,
3.67
Cash
National
Ine>:.
;
1.94
——-
Mach. Co. 1
4.98
1.11
-——-
Stores
Glidden Co.
•
Shoe Co._
International
2.36
Regulator Corp.
Shoe
14.14
Inc.
Orpheum
Corp.,
Dept.
Electric
Marchant Calculating
Machinery—
1.13
-
100.87
122.87
_
Endicott, Johnson Corp.
International
Merritt-Chapman & Scott
Minneapolis
1.49
2.33
Co.-
-
-—_———
Penney
5.14
9.15
>
—
Keith
-
Corp.
3.50
Equip.
International. Bus.
Mills,
Leather & Shoes—.
0.17
6.81
:
1.38
Corp.__
0.13
-———
Simmons
2.49
~
Johns-Manville Corp
Masonite
Inc.,
0.01
0.38
Corp.
4.29
2.14
0.36
Carpet
Marshall Field & Co.
9.90
2.59 X
Goods
Dry
72.86
7 C4.89
6.36
■
2.25 :T
Corp
Stores
Associated
Gimbel Bros.
5.67
7.17.
& Mail Order-
0.24
4.25
2.29
J
Retail Trade—Dept.
758
.
•
•:
•
4.01
ing 'Co;^
McCrory Stores Corp.—
Shattuck (Frank G.) Co.
2.57
Office Equipment—
2.70
Corp
Mohawk
Inc.
chines
•V
1.64
Todd Shipyards
Corp.
Packing
—
(S. S.) Co
Kress
(S. H.) & Co.—
Kroger Grocery & Bak-
American; Ship
Technicolor, Inc.
Twentieth Century-Fox
Products Refining
Artloom
6.37
Products
Co.
10.22
5—
Household FurnishingsArmstrong Cork Co.-— '7# 2.84
0.94
—
Flintkote
3.18
•:
1.01
T.)
2.71
1.85
Addressograph-;Multigraph Corp.J—
Stokeley-Van Camp, Inc.
0.64
Certain-teed
5.28
93.10
Railway Co.—
2.49
1.63
#:
Film Corp.
Standard Brands, Inc.
Sanitary Corp.
X2.03
Corp.-——-
Libby, McNeil & Libby
Penick
&
Ford, i;Ltd.,
American Seating Co.-—
2.30
Bird & Son, Inc..
—V ' 1.20
Carrier Corp.
22,83
Celotex Corp.
20.54
7.19
In-
Co.7
# 4.31
0.81
0.62
&
Pictures
Square D Co.———.,
Sylvania Elec. Products
Radio
14.84
35.29
Bros.
Allied
*81.86
Loew's
I
7 14.99
Trade—Variety.
(W.
Green
1.73
3.59
4723
9.73
3.15
,
-
1.80
0.51
General Foods Corp
American Rad. & Stand.
—
Corp.
Inc.
0.09
1.72
6.60
i Corp.- #-####£###
56.12
0.04
Mengel Co. ^i /
Mullins Mfg. Corp, "B"
United States Plywood
2.87
7
1.64
0.04
City Ice & Fuel Co.—
Diamond Match Co.„_
Corp.
Radio Corp. of America
Corn
11.87
4.37
Eastman Kodak Co
Food Products—
0.92
2.00
15.67
General Precision
-
5.41
5.55 -
Railroad
Woolwortfy (F. W.) Co.
Inc.
Co.,
1.74
California
47.17
2.06
Motion
12.83
Co
(H. L.) Co., Inc.
May
0.16
strument
12.08
—_
—
1.88
.
#
of
Corp;
Watch
Corp.
3.06
3.68
Kresge
—————
0.27
ij
6.40
Manufacturing
Amusements---*
Co._—
Butler
Grant
—
—
Columbia Pictures Corp.
—
7:
Si 1 ver
2.98
Corp.
7.46
3.77
6.57
Electric
Southern
llurgical
107.54
10.08
4.98
-
Philco
0.66
—
48.18
#
3.57
4.92 -r
Retail
Miscellaneous—
2.05
7
Corp.
Co.
road
'
Maytag
National Distillers Prod-
Corp.
1.76
McGraw Electric Co.---
Brewing & Distilling—
Distillers Corp.-Seagrams,
Ltd
7.90
Co
Weston 7 Electrical y
2.80
Inc.
2.66
2.66
19.91
—
Pennsylvania
7.2577-:;
-
2.90
——
———
Bulova
0.57
&
Co.
1.74
Master
Beverages & Confectionery—
American
Corp.
Material
5.88
Dodge Corp
Reynolds Metals . Co.—
St, Joseph Lead Co.—
6.46
„
Southern Pacific Co
2.05
Line
1.15
22.64
Phelps
'--7
8.88"
.
—
"
$2.17
Electric Co.—-
Hazeltine
0.95
0.70
National Biscuit Co.l-—
Ward
'
42.23
Cutler-Hammer, Inc
Baking & Milling—
General
#■
..
2.18
Topeka
Greyhound
Manufacturing
America
0.94
'
General
Continental Baking Co.-
:.f
#
Shaft
Flexible
Chicago
•*";#. t '
1:Py-y
#
—
—
#
Molybdenum
Mfg.
Decker
&
Black
4.20
Kennecott Copper Corp.
0.45
13.80
1.03
Studebaker
Seagrave
Products
—
19.29;
4.16
0.83
7,
0.63
-
40.71
6.00
-
Nash Kelvinator Corp.—
9.48
7.23
#
8.55
Co.—
New York Central Rail¬
2.13
Metals^-Non-rFerrous
CopperRange Co
Granby Cons. Min. Sm.
& Power Co., Ltd.
10.26
Mead
#3.59
Co.
Car
—
Scovill
6176
Corp..
S 5.38
- - -
CO.
:
2.31
Co.,
-
Fink
&
Lehn
2.81
1.35
—
Coty, Inc.
:■
5.70
7
4.74
12.93
—
International
ucts Corp.
Chesebrough
0.62
*1.11
64.95
Timken Roller Bear. Co.
2.60
Co.
4.21
3.06
1.42
Mfg.
4.70
•
Laboratories, Inc.
American Home Prod¬
7.01
1.02
Co
Inc
5.33
Co.
15.937
2.22
Corp.
Gorham
17.197
Tank
Chesapeake & Ohio Ry.
4.73
&
Wire
Fansteel M e t a
4.40
3.74 (7
3.99
Santa Fe.Ry.Xo.—
25.59
Co.———
Cable Co.
1.72
2.12
7.52,
.'
Inc.
Atchison,
Metal Fabricating—r
6.06
2.23
-
Anaconda
Allied
■
28.65
36.55
Timken-Det. Axle Co.
Mack Trucks,
1.42
Drugs & Cosmetics-
56.16
512.85
.
——
Spring Co..
'•
4.30
Owens-Illinois Glass Co.
Parker Rust-Proof Co.—
Automobiles—
Cudahy Packing Co
National? Dairy
Prod¬
2.49
46.09
3.34
Carnation
1.53
&
Co.,,
!; a -'#-
92.96
Co.
0.98
6.71#
43.3^
Steel. Car
Inc.
Union
6.25
...
8.42
w—-
82.28
Swift
1
13.91
4.58
St eel
ea n
Pressed
•'
Products—
ucts Corp.
ri
—
Railroads— ftp
d0.28
—
11.11
1.82
e
Pullman,
-
Creamery Co-
Beatrice
Hazel-Atlas Glass Co.„
1.76
2.67
Am
i——
Foundries,
&
Pump
Meat & Dairy
Fuel
&
1.62
-
-—
Corp.
# Machy.
0.04
3.36
-Inc.'
Kelsey^Hayes Wheel Co.
————#33.14
Noblitt-Sparks Ind., Inc. ; 4.66
chinery Corp.
0.45
-
Worthington
;
4.67
Class B
U.
7
0.56
•
5.61
iInc.7— Crown Cork & Seal Co.,
V
16.45
Superheater Co.—--'S. ' Hoffman#:Ma-
6.69
'
Corp. -'.ii-i-— -i—
Continental
C a n Co.,
5.06
4.09
2.18
Electric Stor. Batt'y Co.
Thermoid
Inc.
0.84
American Can .Co.——
Anchor Hocking Glass
3.78
0.65
21.95
5.31
Mfg. Co
Stand: Steel
3.30
2.23
0.58
Locomotive
American
Co.
87.19
Co.
v;-7 Foundry
&
Bolt Corp. „i__——
Containers—
6.47
e5.78
7.23
2.77
and
Car
American
# 36.48
; 7.09
Share
per
Shoe
Brake
American
21.41
■
8.70
-
Proiits Tax
16.50
21.00 7.
Inc.
1944 Excess
Share
Equipment—
Railroad
6.38
1944
Earnings
per
ArT" Name of Company—
11.96
Industries;
Ingersoll-RandjCo.
Pittsburgh
Screw
.
*
11.57
3.42
2.72
3.23
,
Electric Auto-Lite Co.„
Smith;'(A. O.) Corp
Spiced *Mfg. Co
Chemical Co.
Gas
Wood
'
'
Truax-Traer Coal Co.—
;•;;
5.51
4.54
1.85
Associates
Bohn Aluminum & Brass
Eaton
1.99
9.58
.w———
Eastern
Auto Parts—
Corp.
0.96
Consolidation Goal Co.,
0.01
Bendix Aviation Corp.—
-
Wheeler Corp.—
Foster
Coal—
6.10
, 2.55
# 0.81
4.75
9.03
76.02
Share
per
7# Fairbanks, Morse & Co.
Gar
United Carbon Co.——
..
Eastern Air Lines, Inc.Pan-Am. Airways Corp.
3.28
3.26
Corp.
Newport Industries,
13.28
i
I#
5.29
'
112.81
#4.20
L.) Co.—
4.37
4^0
'
62.77
Commercial S o 1 y e n t s
Corp.;
:
Dow Chemical Co
Hercules Powder Co.—_
34.64
18.80
—
Douglas Aircraft Co., Inc.
Lockheed Aircraft Corp.;
North Amer.
Agricultural;
I Chemical Co. ■ i—
Atlas Powder Co.—— 1
24.74
#8.01
Boeing Airplane Co.—Consolidated Vultee Air¬
8.14
-
•#
Name of Company—
Cooper-Bessemer Corp.
2.46
Dresser Industries, Inc. % *22*44#
Ex-Cell-O Corp.——
15.83 $
Chemical & Dye
Corp,
American
17.04
46.76
Aircraft Corp
7
$0.86
-
7
Share
per
Profits Tax
per Share k
Earnings
Profits Tax
^ ;
1944 Excess
1944
1944 Excess
Share
per
Name of Company^—
Share
per
Allied
l$0.54
-----
Bell Aircraft Corp.-
*
#77 1944 ■*»:
•
Aviation Corp
Beech
figures in this table are
1944
City)
Securities & Research Corporation of New York
(less 10% postwar refund) prevailing in 1944.
Economics & Investment Department of the National
based on the 95% excess profits tax
(Compiled by the
The
'
•
•
;
Corp.
_
44.20
# 6.80
.
"
8.99
;
of
1——
2.87
'
4.96'
& Co.,
2.51
•
1.54
Volume
Number 4430
162
THE COMMERCIAL & FINANCIAL CHRONICLE
m
*
'1944 Excess
."1944 '
•*.,
*i .V'"'*?
Earnings .Profits Tax
Name of
per Snare
Rayon Corp. it-"'
Industrial
Kayser
!''-r
Company—
(Julius)
&
Co.
1.85
1.80
j
■
Name of Company—
e.
'1944V ' 1944 Excess
Earnings .Profits.Tax
pci bnare
per Share
;
.
""r
',;
*
Share
per
'.ft-
Seiberling Rubber Co.ft; t21.34 .ft
--
63.16
2.40
12.51. H i
2.72 V
American
3.78
Consolidated
v;
'".''.-'J ,V
rM
•'«»,.
Name of
3.63 ft;
American
1.83 ft
Arkansas
&
Tobacco—
.
"
-
El.
*
'
,•
t;
,j...
....
"* * 1944
Earnings
i
Company—
Water
Co.
1944 Excess
-
Tubize
-_61.22
Rayon Corp.-;---
United
<
Co.
Works
"
Merchants
Mlrs.,
&
; s'f
Inc:_
-
K
*3.72 ; V
Tires & Rubber—
Firestone
Tire
General
&
Rub-
.
Tire
&
-
ft: <13.41
—3.53
1 5.01
1
'
'
'
•
'
To-
-
■
■
W
—
.'
Co.
■>
Cities
8.83
;
-
j
Elec-
Natural
1.38
Gas
&
Southern Corp.
Detroit Edison Co._*-_»
l.lp'
Engineers Public Serv-
0.80
i
1.03 ..ft ;
-
ice Co.
•
0.41
ft tric Coft ft^ftjftftftft! 2.32
"
States
Co. "A"
2.73
Power
ftft
»
2.53
-
2.03
1.67
4.12
estimate;
for 2 for 1 split;'
Adjusted for 4 lor 1;
* Adjusted
for 3 for 1' split;
x -
endingl
3 Year
1944;-:
1944; '
ending May, 1945; 8 Year ending April, 1945;:]
ending February, 1945; 10 Year ending March,?!
ending June, 1945;
12 Year, ending1
May, 1944." - •
• j
7 Year
1945;;; 11 Year
-16.81 ft
dl.17
e
2.18
9 Year,
ft'r*
ft.'*ft_.ft;Vftft
deficit;'
Taxf]
Share
ending August, 1944; 4 Year ending September,
5 Year ending July, 1944; 6 Year ending June,
v-'"
.H3.16
_—_—r
Northern
...
.,
-
$ Adjusted
per
split; t Adjusted for 2'/2 for 1 split; 1 Year
November,: 1944; 2 Year ending October-, 1944;
•
vft
Ltd.
Co.,
d
ft ,.ft;-ft !
0.07
' '
0.46
,
2.47
0.11;
3.88
Share-
Edison
Calif.
Southern
.
0.29 ' :
per
Pacific Gas & Elec. Co.
;
;
._ft_
ft—ft.
Service Coi-ftftft-
Commonwealth
ftft-ft'ft.
•
i't'"." ""
r
?, Gas &
American
11.71
25.38
Myers
Co.!
-Utilities—
;
Lee Rubber & Tire Corp.
&
bacco
-
Rubber
•«V Co.;
V :' A ft..
"Bft^ftftft" 4.25
Philip ; Morris
&. Co., ; j •-1
Ltd., Inc." jft ft ftft ft
102.97
r
27.34
\
ftftlftj 4.04
Liggett
ft *
ft
ber Co.
v
; C i g a r
ft Corp
{ 6.63
•
;
Tobacco,' Co.3.73 -ft-
Name of Company—
:
0.69
Profits
Earnings
Profits Tax
*■.
ft
1944
1944
.
per Share
>vi u>uu<!
r
Manhattan Shirt
Excess!
*
>v,
.
J
■v
(Continued from first
;;
called that France
had
made
virtually no expansion
baianee sheetsTn some
extent; tlVey had :substituted gov¬
greatly weak¬
ened her position during
;
ernment
in her bank note issue. She faded : bills
■>
to* low \levfelg in the
a
■
Real estate is the
customers to
biggest factor in national wealth
v
| and, the French capitalized their
&
7
_
tVith respect to most points
we
grOat deal further along
are now a
the road" of inflation
rr-
J
-'h'tt.'r
'tr-XvA#;'
••
W.
•'
Wj-.S -V.,,.
•-
,
with
with
war
at
banks combined.
against
a
300,000,000,000 gold francs. The
debt at par was 49% of the national
By 1926, when France
pulled up, she had a public debt
of
287,000,000,000 paper francs
(internal), and 23,000,000,000 gold
francs
|
(external,- including debts
to United States and British Gov¬
ernments).
(See Chase Economic
Bulletin, February, 1927.) We had
at the end of 1944, long before the
war-'was over, a national debt of
$230,000,000,000,
against a pre¬
war national wealth not
exceeding
$387,000,000,0001.
Our
national
debt Dec. 31,
as
1944,
was
thus 59.5%
of the national wealth.
(2) The
Circulation
growth
in
of
the
>
money
in
States
United
since 1939 is greater in percentage
than the growth of
money in cir¬
culation in France between June
1, 1914, and Aug. 29, 1918. France
about 9,000,000,000 francs in
circulation, including about 3,000.000,000 francs of gold, on June
4, 1914.
2.000,000,000 francs of
had
this
gold
turned
was
into
that
and 1,000,000,000
gold disappeared from
circulation.
By Aug. 29,
1J18,
French circulation, chiefly Bank
of France notes, had risen roughly
to 30,000,000,000 francs, an in¬
In
the
United
circulation
stands
now
at
(3)
debt
greater with
public debt, and
omitting that part held by Gov¬
ernment agencies and trust funds,
58% was in the commercial banks
and the Federal
in
demand
Bank of France
itself, where there
out
short-term debt to the banks
instead of
was
•
The
curve
These bonds have been
time.
sold in
a
high percentage of cases
in buying
with the argument that
them
buying a
post-war automobile or a post¬
war home or a post-war washing
of about 2,712,000,000 francs between June 4, -held before the "war to secure na¬
i l914; and Aug. 29, 1918. Our com¬ tional bank notes and for' other
mercial
bank ; demand
deposits purposes. Of the war debt' they
("adjusted") plus United States
held little more than $3,000,000,Government
deposits stood
on
June 30, 1939, at $28,147,000,000. 000 at the: peak in direct owner¬
On Dec. 31, 1944, the figure stood
at $87,500,000,000, an increase of
210%. We have, therefore, enor¬
mously outdone France in the in¬
crease
of a circulating medium,
the
purchaser
is
machine.;:: The) behavior
of
the
redemptions: of these
bonds in the fiscal year 1945, as
compared: with the fiscal year.
1944, is disquieting.
The Treas¬
ury Daily Statement of April 20,
and
sales
Federal
own
seems to
f
*"
v
' '
»■
You
Reserve
have surrendered
must
we
notes
*
"
"
/
-
'
"l
{»?.*•"
i*'[
,
•
**'V
you
factors
in
(1)
We.
much
situa¬
our
are
better
your
doing
France
can
insurance
on
his life.
key
man;
should
'
^
did
in
WHAT IF HE DIED?
us,
and
net
debtor
pages
♦♦probable?
figure
"probable
lower
000,000.
sored
by
is
later.;than
;
suggested by
an
Department
1922.. when
than
to
cur¬
on
by
1945.)
national
income Vis
our
a
France.
in
good
deal
The
esti¬
was
30Q,000,000,000 francs,
that for national income
INSURANCE
2.
•
I
cannot, with
all
write,; give
the
classification
'
my
dates,
same
public
debt
round
in
and
at
the
- v
the data at hand
:!r
end
Federal
of
:;V:- 3
of
our
1^44'
Reserve
March^ 1945, pages 257-58.
"'I
as
I
>
French ' figures as of
showing • rthe
!
r
v
OF
AMERICA
HOME
A mutual life insurance company
OFFICE
; NEWARK, NEW JERSEY
Figures
distribution
th°
COMPANY
was
,
facts, and the estimates for France to 1913
of cource.-les* dependable than Amerestimates today- •
—' *. i
'•
the folder
mate for national wealth in France
figure -was
Estimates both
world
national
our
was
Ask for
(See National City
favorable
it
in 1913
and
estimat^
spon¬
of Commerce
the
:
apparently
now
the
to
figure is $350,000,
placed at $321,000,000,000.
are,
are
(3) The relation of
more
Tne
of national wealth and of national' income,
of course, involve assumntions, as well as
lean
we
Bank, letter of April.
Economy.
June,
374-376. ; Their top
saeo.OOOOOOOOO and
I cannot find
the
.
account.
rent
of, American
their
"•:
very
(2) Although France had a strong
com¬
in
war
be covered with
can
mercial banks in France took very
I
the
.■
own
be
Bulletin,
;
?
>)
-Ji i
i r
'Vr i c
c::
savings
the tax and ^savings
mentioned above, making
think of, a variety:
partner, or a
Such losses
war.
now
than
if
die.
compared with the French
as
probably
little of the
Part
add
and
V (Continued on page
YOUR BUSINESS PARTNER
figure
should
of business losses that might come to
take account
now
situation in the last
than with France.
top
To this we ought
bondS.maturing
within
five
years, • which1
stood at $7,824,000,000, making" a
grand total of short marketable
debt of $77,692,000,000.To this
$69,868,000.0001
HI| |lORTH TO YOU
v
$162,843;-
to add the Treasury
we
nating gold position.; But the out¬
side world is gaining gold from
This" Is the
was
.
of favorable
tion
National Resources Committee
form.
issues
000,000 as of the end of Decem¬
ber, 1944.
We may break this rip
as
follows: Treasury biljfe, cer¬
tificates and Treasury notes, total
bonds
the Bank of France.
1.
marketable
issues, a very
proportioh is in
The total of
demand deposits, dur¬
Our
But
$26,000,000,000,
But the
on
$7,400,000,000,... whereas, in
the
corresponding period of the pre¬
ceding fiscal year it was nearly
$11,000,000,000.
(Since March 1,
1945, these redemptions have in¬
cluded. redemptions; of matured
savings bonds, but the tendencies
indicated above were strongly in
evidence before March 1.)
The
Treasury may have a very grave
problem with these demand de¬
posits when the war is over.
It
is unfunded debt.,
The total of
these savings bonds was $40,361,000,000 at the end of December,
1944, and the total of the Treas¬
ury tax
and savings notes was
$9,843,000,000. >
: •
unfunded
bonds, gigantic in volume, are in
effect
demand
deposits.
The
holdersVcan get .their money at
any
The net intake, ol
these: bonds in
is. thus, only
Treasury
the fiscal, year ,1945
Of the marketable
savings
war
the
dangerously high
cash./
' so-called
The
for shortterm debt rose to peaks just be¬
fore each funding loan, and then
moved sharply down again. " The
banks always held some of the
Government debt.
At the peak
of the public debt they held about
$4,000,000,000, but this included
nearly $1,000,000,000 that they had
paid 'down.
great deal is in the form of
anticipation certificates which
come
back to the Treasury
gold position throughout, we have
what appears to be a world domi¬
iq-jq
.
the
tax
francs, of which 12,200,000,000, or
almost exactly 10%, was held by
:
-
the
in
will
taxation.;
the
r,
during
was
then
loans,
in
placed with the
of
which
this
is over.
war
On Dec. 31, 1917, the French pub¬
lic debt stood at 123,000,000,000
Structure
*
'
was'an increase
debt
?
deposits
all
almost
and
war
and
.
short-
funding
were
thC
public debt. The great
banks. The Credit Lyonnais,. the
Comptoir d'Escompte and the Societe Generale, were badly shaken
when the war broke out, and taken
"
banks.*;
Reserve
France had very little increase
,
great
money
market policy com¬
pletely to the borrowing policy of
Treasury.
in
of
of national
by the banks is far
us
at the marketable
people
on
A
its
The percentage
carried
and the. commer¬
Finally, looking only
we
people
the banks, and
Reserve banks
System
1926.
money
when the
issued
suits.
increase of 271%.
an
•:v
end
months funds borrowed
trust
interest bearing jterm from
which bonds
banks.
.
placed the
primarily
and in long-term form. The Gov¬
ernment
did
spend for a few
the
funds, 46% of our
public; debt was in; the Federal
cial
carrying depreciation
maintenance
reserves
and
^ •
_
.
liquid funds for reconversion
purposes, in
government securi¬
ties, but which must turn the
government securities; into cash
to
accomplish
their
purposes
constantly that it should borrow
much as possible from the peo¬
ple, and its resistance had real re-;
June,
at $7,000,000,000, and
1939, stood
it
States
the
at
and
are
year
as
This grew to 53,-
000,000,000 francs by June,
agencies
when
The debt, is very
distributed^ Of the part held
which
>.
$1,774,000,OOO.
there is. a great
part in the hands of corporations
be;
with
fiscal
cannot
stand
in the preceding
it, redeemed, only'
bonds, whereas
!
outside the banks,
hre UnCertairi
we
Our Debt* Largely Urifuhded
debt
Reserve
badly
ria-
will
it
is overy
war
reserves,
-
(4) The Bacnk of France stead-,
ily; resisted inflationary develop¬
ments, urging upon the Treasury
of
of 233%.
Government
ing the war.
followed,
crease
Federal
Leaving out that
of the public debt held by
money plus
the
Bank of France in the three
years
francs
i
the
and
period, and,
vIn)the"last;war
in the commercial
was
francs
national wealth estimated i part
wealth.
•
public debt
our
what
42% of the whole interest bearing
banks
as
•
We dd ?not know • what
tional incOme-will be in the post-
~ iwar
I in ?
on fhe
| other handi. at,;tne end of: 1944,
national debt of, 147,-
000.000.000
prewar
1
in French
| France arid -commercial banks.2
the
Treasury y today;
pe-1
1944v r It
current
has* had
=
where
the
of these
was
Our,
year
in
redeem $3,357,000,000
to
When
know
fiscal
that
also
fiscal-year the Treasury
being floated. f:; the; war was over;- the
debt
was
largely funded./ The
Treasury, knew, where, it stood.
r
I8oo,opo,oooi
includfrigt f both" Bank- uf
bankSj
France ended the
us.
a
than 12%
|
.
(1) The relation of Government
P debt td national wealth, is npw
-
worse
more
of-the public debt was
than France
was^at the* end of the fifst world
i*f-.
•estimate that not.
i
shows
;,;-v
tional wealth to national income curities during the last war, ex¬
really expanded i in the United States was only 5^ cept for a few days at- a time
I
greatly, in France during ?the last to 1 in 1912. It was again 5^;to 1 whenr: each of the great Liberty
Loans
of the
riod
small. The only com-!
was
fat ;the Government and to-business. ;metcer Estimate* for national inAt the beginning of 1918 I shoud I Coriie^
for"-1939/VWhiCh ^ whs $71,-
prices
r-V:
;
only $10,757,000,000 of
bonds, as against $12,612,-1
sold
000,000 in the corresponding
mercial bank that
foreigjf ox-?
JlriCfesi; "!
;.
-
these
pap^r7 fbr> CQmjnriercial. j rbal estate tm a v.ety ; low yield | • The F ed e r a 1 Reserve banks
portfolio^, but the; basis in 1913.; The ratio of na¬ owned almost no Government se¬
war
in 1939 if we take the figure of
was a bank of second; rank,
piade ^ rdc* foctO ■stabilisation Or (the Banque Nationale de Credit, $387,000,000;000 given' above- for
the franc with a gold eontent of : which expanded a few hundred i national Wealth and" corfipare it
approximately 20% of the old pa1- ;millions of'francs, lending both to ! With' • the ? Depaitment^? of ' Gom-
and
with
commodity
■0 641% <3^1913
has
help them buy Gov¬
ernment bonds.
.
"
year' 1945
-
ch^nge$:;At the^nclof mBFrapce
■
1945,
and
their
in
amount
to pull up at the end of the war;
|n;1919 arid 1920 the franc broke:
7' I
francs,; giving ;V
ratio fo 10 to 1.
i in their
the_war
by heavy reliance upon the Bank
of France and by a great increase
wv
30,000,000,000
page).,.^
shows that in the,.fiscal
to date the Treasury
ship, and much of this
was short,
they had also another $3,000,000,000 or $3,500,000,000 of loans
secured
by $ • Government
bonds
which
they had made' to their
Inflation Control [and Treasury's
M.
,
.f-.-l.
1838)
rf"
•••*•;
t
Am*
Our
^Continued from
the
1837) 1
$1^,906,000,000 of unfunded debt,
out%>f a total of $230,000,000,000
of ^interest bearing public debt,
colossal scale.
are,
both now on
;;
/
/
^
I, between April,
In World War
1918, we
by $5,800,000,000 and bank loans and
five years
after
maturing
We
dangerous.
$7,000,000,000. In
period from June of 1922 to
investment by
the
| total is $83,761,000,000, but
this^ funded debt of over five
the
expanded bank
years' maturity is very
badly
credit by $13,500,000,000 in de¬
held.
$31,672,000,000 of this is in
posits and by $14,500,000,000 in
the'^ommercial banks.
thatiis
well-placed
clearly
April 11, 1928, we
The part
This gen¬
erated our wild stock market and
stock market crash of 1929 and
the resulting troubles of 1930-33.
In the present war, as we have
seen
above, as a result of the
loans and investments.
con¬
sists! of $7,567,000,000 in the mu¬
tual) savings banks, and $17,303,in
000,000
the
coun¬
insurance
a total of $24,870,000,000 in
these two classes of institutions. >
tries,*
investors
rates
it
ought to be in funded long-term
form.
I cannot give the figure.
It is part of $21,321,000,000
under the category "other,"
and
states
tional
and
of . 2%
The rates
|
attract
investors.
knows
how
table
can
The
look
to
to
at
expansion, and government se¬
curity purchases by the banks,
between March of 1933 and June
on
25 years
5%.
Federal
The
1939.
of
Reserve
authorities had been greatly con¬
cerned and had raised the reserve
requirements
the
of
member
banks in late 1936 and early
double
to
go
bond yields for the past
and see yields exceeding
had
requirements.
concerned
zation"
minimum
the
and
1937
reserve
The Treasury was
created
But
fund,
-
a
"sterili¬
Presidential
both the Treas¬
action compelled
and the Federal Reserve au¬
thorities to retreat with respect to
ury
Diagnosis
>
|' The symptoms of pathology in
[ the handling of the public debt
"are
the
;•
in the figures
What is the ex¬ /
above.
planation, what is the
cause of
The explanation
pathology?
Treasury
Federal
Reserve
capital
on
a
colos¬
and when the Govern¬
ment of the United States is bor¬
scale,
rowing
many
dollars
a
are
Normal
anomaly.
billions of
obviously an
interest rates
tens of
year,
reflect supply and demand of cap¬
ital,
and
rise
supply dimin¬
demand/increases.
as
ishes
or
as
There
are
four normal
sources
of
capital: (1) consumer's thrift; (2)
business thrift, particularly
the
puilding
up
of corporate
sur¬
pluses out of profits; (3) direct
capitalization,
as
where
the
of
the
System,
the
Governors
the
his
uses
building
allows
fences
his
spare
time
and/ barns
flocks
and
herds
Where taxes exceed public ex¬
penditure and the government is
paying down public debt//
jj New bank
ffifth
,
source
credit constitutes, a
of ; capital, , safe
enough when cautiously used and
kept in reasonable relation to the
.
we saw
■
in the period
in
securities
government
bought
have
of
billions.
terms,
of
millions,/but
many
The figure stood at $2,-
on Dec. 31, 1940, and
$20,153,000,000 on April /18,
This is no new technique,
but the vast scale of its use makes
184,000,000
at
1945.
'
-
;
..
,•
.
'
\
v
•
the
last war, Federal Re¬
Bank rediscount rates were
Federal
Re¬
Presidents
of
12
the
of
members
Federal
of these
recommendations
looked
directly
toward
interest. '
The
; ////
first
firmer 'rates
■</./
•
-
/■ r/v'
=••
of
•
/•■
Belatedly, and by action orig¬
inating in Congress, recommenda¬
placed at 3% in 1917,
moved up to ?>Vz% at the end of
the year, and to 4% early in 1918,
ft
feeds
credit and
rency.
the
cur¬
.
matter
the
•■//
Alleged Safety. In New Techniques
and
wholesale
of
foods
scarce
building
It is
reduce
requirements of the
banks v and
they have
reserve
member
done this as far as New
York and Chicago banks are con¬
already
the
But in
cerned.
reduced
member
last
we
war
bank
reserve
requirements by Act of Congress
in
that
levels
1917—to
made
us
1920's.
Unlimited Access to Federal
/■,/
Reserve Banks at % %
to
are
them
make
feel
necessary *- to
serves.
we
have
It
:
<
carry
may
here
that
a
be
it
is
And
interested
in
new
bank
tell
dangerous'
highfr" inflation/
I 1
'
dispensing/
demand
on
situation and tend
reserve
interest.. rates
down.
Moreover, investors, attracted by
higher
yields
on
government
bonds, would make a market for
very many of the government se¬
curities now held by the banks/
As the banks sold these securities
hold
to
each case should be
carefully.
The gen¬
fixing should
continued after the war for
but
to- investors,
for them by
be
posit accounts, canceling a great
deal of the inflated deposits and'
once more easing the money mar¬
ket situation by reduceng the re¬
tion
purpose of preventing infla¬
must be absolutely vetoed.
if it
are
made
possible
only
investors'
savings//If
by
credit / for
other
the
on
hand, bank
rise.
requirements of the banks.3
serve
Gov*/
♦ j
r
// ernment Bond Yields Rise
There are two main'
objections
)
policy which I propose:
to the
/ (1) that it would involve dan-; Z
gersn to ? the - capital-, structures*' of.
those/ banks Z: now r too»- heavily, /
1
bank'ex¬
est rates would "forthwith
investors, would pay
checking against de/
Protecting the Banks When
the
technique.! pansion were to stop today, inter¬
ft is obviously a highly
charges
scrutinized
substitution / of ' bank
re¬
that!
or • even
deposits, which would pull in a
great deal of money from eircula/
tion.
But this money coming in
from circulation would ease the
/The existing,low Interest rates
/ excess
reducing
com¬
eral idea that price
to
granted
in actual
people, pulling
mercial banks would be
with service
is
not
savings accounts
on
cash from circulation.
«
ready cash and
the
to
offer at¬
it worth-whild to
find
controlled, by budget balancing
at a fixed rate, % of 1% discount/ and control of money and credit.
with
a
repurchase
agreement.
Eliminate Inflationary/ Money /
This is
designed to make : the
and Credit Policies Now,
member banks look upon govern¬
as
down.
rising interest rates, savings
banks
and
other
banks
would
Something may be said for .the
temporary continuation of price
fixing, with rationing, in the case
of very scarce essential commodi¬
Inflation must be controlled,
bills with¬
out limit from the member banks
rates
rates
interest
the
hold
to
interest
motion powerful
which would tend
With
truth.
the
in
set
counterforces
themwhat to
tell
Money and
Hold. Down
v
Re¬
of
to
in
rise
a
would
have
must be. free to
' *
,
If,
ment
expan-
,
long-term / govern- /
securities;. (2). that it would
with
loaded
'
the
increase
vmoney/required^
tax
/ s
:
sion is not stopped. we
shall have 'to;meet; the debt? sendee on- the. /J/Z/://
'And Gbverriment's 'already *• enormous^ •'
Then Zwe;- shall! see/an/ immense debt.
rise of? interest -rates, the «inevi¬ // Let' me say >wkh/resp^t/ta both / .
a 7
tremendous i "inflation/
table
/accompaniment of
a
great
these;; points/ that/ the/ problems
growZ progressively worse / the
inflation//The choice is not be¬
.
tween
/continuing ./low;/, interest ^ngSfe-v^/refrahi^f
ratesf and /not /continuing// The 'them.
- •
/ -Z> -•
"
/
combined stood, at 90% in April^
choice isr rather between; a mod- i/ ;To protect/the .banks, .in, this „/ - - 7 '
1942, and at/47% on April/18/ erate/and manageable reversal of change-of policy, I have proposed /• /
1945.
Excess: reserves,//which;
policy ;in the hear future and an that the banks /holding long-.
stood at nearly $7,000,000,000 in?
involuntary f submission / to very j term/ gbyernment, / bonds/ be% ,ql-;Z:. a :
early 1941, dropped below $1,000,- high interest rates at a later date. 'lowed to exchange them for new.. • .
•000,000 in 1941.
[ /
issues at the higher rates of in-;
' .
Prescription cFundthePublicDebt
Jterest, [at. a discount of, say, 2% as
..
.
.
*
-
..
-
.
•
-
,
—
.
We
are
told
that
new
tech¬
niques have arisen which make
Inflation Policy in LastVWar//
Now and Reduce Money and
the policy safe.
I see very Tittle
in the way of new techniques and '/ During our own
participation ////!>//Deposits Now-az////;
rather a very exaggerated use of in the last war, we held-down
I believe we should act promptly
r///
/ / inflation 7 admirably. ,/ The great while/the war , is still on, while
jtypical breeder of war and post¬ old techniques.
war- inflation.
The classical case
We have, first, the purchases rise in prices in the last war came we still have controlled commod¬
Is, of course, that where the gov¬ of government securities by the between December of. 1915" and ity markets,/ arid /while we still
ernment
leans
Federal
directly
Reserve banks, replen¬ July of 1917, before our govern¬ have / wartime motives Z to work
upon
credit from the State bank of is¬ ishing the'reserves of the mem¬ ment war
policy got into operation. with/ in funding- the. government
sues as Germany and France both ber banks.
In the first world Commodity prices at wholesale in debt into long-term bonds at rates
<Mdl7in World War I.
The great war, the Federal Reserve banks July of 1917 stood at 187% of of/interest which will attract in/
expansion of bank notes is ob¬ did this in connection with each 1913 prices.
Under our war pol¬ vestors'/money. / The vast scale
vious.
But an expansion of bank of the four
great Liberty Loans, icy these prices receded to ,182%; of / the
funding /operations
re¬
deposits is in economic essence reducing the strain in the money in October of 1917 and then rose quired means that we should have
a&nbst identical with an expan¬ market for a few
days, while the slowly, under the extreme pres¬ to /■: supplement : the
attractive
sion- of bank notes.
Notes and loans were being floated, and then sure of the war, to 207% in No¬ yield with" effective bond-selling,
3sits alike are demand liabili- promptly selling the government vember of 1918, after -which
</thev; including/neighborhood pressure.
are both media of exchange,
securities
again.
The
magni¬ receded again to 197% in March I believe that if we act promptly,
chologically, the note issue is tudes were small—for the first of 1919.
•
these rates can be intermediate
]\ Bank
credit as a substitute for
savings is particularly dangerous
[in-war time.
It has been the
Now
work to do.
to guide and direct the
Prices
the
Finally/ the, Federal /Reserve
banks buy government
Prices
do;
corre¬
,
funding Purposes
up
economic activities of the people.
ties,
.
are
'
Rates for
Interest
quite clear that these price
Prices
'
"Excess
Credit Tend
Fixing Must End with
Prices
market
the money
spondingly.
up
to have a free post-war econ¬
omy.
to
power
will be forthcoming. This
should be accompanied by a sale
of. government securities by the?
Federal Reserve banks to tighten
controls cannot be tolerated if we
are
investors*
which
at
levels
money
the War
authori¬
Reserve
have
;
//*/;
tractive rates
Price
tech¬
but. merely an extreme
application of an old one.
Federal
to
immense inflationary flood by
nique,
now
fields.
and
wages.
The
begin to work actively in other
not until after
price fixing had been
In the present war,
tions maturing in one year or
Here again there is no new
de¬
these
The thing to do; is to pull
in
government
bonds
before
they
here
secured
obliga¬
less.
idle
If
banks.
them in and get them invested
at
however, below mar¬
ket rates.
At the present time,
the Federal Reserve bank redis¬
count rate is Vz% for advances
remaining,
of
volume
in the
grew active, we should have an ;
inflation that would blow us sky-
the
r
*,
issued
expansion of bank credit and
money
in circulation, we have
used as our primary device for
controlling inflation, price fixing,
covering virtually, all wholesale
and retail prices and industrial
government
money
high.
could
look
long period of
Liberty Loan
a
First
previous abuse of
immense volume
in circulation and
an
immense
posits
In¬
*
'
have outstanding, as a
the
credit,
idle
of
an
the /
in
are " now
we
3%%, fully tax
I cannot, of course, set exact
free, the Second Liberty Loan at figures
at/ which investors will
4%, the Fourth Liberty Loan at take
long-term government bonds.
4%%,
the
last
three Liberty
Only the market can do that.
Loans being partially tax exempt.
But this idle cash is a market
(4) We had a limited amount of factor of first
importance, tend-;
price fixing, applying to scarce ing to hold interest rates dowii,
essentials, and accompanied al¬ I think the
thing to do is to in¬
ways by commodity control.
We crease the
interest rates on new
had retail price fixing only in
governriient securities forthwith
an
-
brakes.
over
The
attract
of
Existing
(2) and (3) of this report technique and a
- •
adopted or appear to ary onei
3
-./ '//; /..../ ii/
be in process'of adoption,
but
Using /Up '. Ammunition .Rapidly,
nothing
has
been
done " about
recommendations
(1) - and
(4). r * In the process of this: immense;
They seem to meet no favor in bank * expansion, we/ have/used
the Treasury/
The Federal Re¬ up ammunition very fast. / The
reserve ratio of the Federal Re-serve
System, having made its
serve banks to notes and [ deposits <
protest, today lies supine, j It im¬
poses i no
reasonable
•
been
inflation of bank
firm
a
paid
we
those
[//!;:////
now
bank
Primary Reliance on Price Fixing
in World War H
was
tions
have
ever,
which would
vestors
and 'which
Federal Reserve Bank rediscount
ment'bills
banks.
(3)
to banks;
prices were concerned.
placed below the market rates to
facilitate war financing. But they
followed the market up as the
war
went on.
The / New/ York
by
We
result
established.
We relied in
the/last war/primarily' on func¬
tional controls, rather than direct
controls, as far as commodity
the Market
rate
and
well
Rediscount Rates Below
In
those
war
paying.
money market to hold down bank
expansion/
Commercial r paper
rates in 1918 stood at 6%, though
the government borrowed more
cheaply./ Rates were made, how¬
fuels,
ponder.
one
than
rather
was
Fed¬
the
war,
banks
between
last
first
sudden, very heavy application of
taxation; (2) great concern
that bonds be sold to investors
time.
not of tens of millions or of hun¬
the
fourth
gerous in the extreme ^vhen used
1924-33.
present
Reserve
dreds
In
and
growth of the four normal sources
1>f capital and the growth of pro¬
duction in the country, but dan¬
to excess, as
the
In
eral
the
or
to
a
great trouble in the period of the
in
increase; (4) governmental thrift,
for
them
Advisory Council urging the Con¬
gress
to
forestall
inflationary
tendencies (1) by increasing the
power of the Board of Governors
to raise reserve requirements of
the member banks; (2) by end¬
ing the President's power to de¬
value the currency;
(3) by re¬
pealing > the power to issue $3
billion of greenbacks, and (4) by
selling government securities di¬
rectly to investors, rather than to
,
farmer
held
and
pansion of bank credit, and in the
second case precipitating almost
unmanageable difficulties.
ties
serve
destroying
securities
good many months, in each dase
generating a very dangerous ex¬
au¬
the 12 Federal Reserve banks and
sal
.
the
manipulation of interest rates by
is
hundred
/•/'•
Reserve Authorities
/
the Federal Reserve System.
The lowest interest rates in all
;history, at a time when the world
Reserve
Reducing Reserve Requirements
of the Federal
report to Congress on'Jan. 1,
1941, there was a unanimous rec¬
ommendation
by the Board of
by
(
1927, the Federal
banks
bought
several
millions of government
and
the
in
with respect to prices
four elements: (1) the
war
••
a
been
borrowing,
the artificial
has
possible
A.
-A
v
thorities remained concerned.
low rates of interest at which the
made
'/
The Warning
But
!
is to be found in the fantastically
it
'-/•
-
clear
very
given
these matters in early 1938.
•'./.!• /.///:•,,
.
1924
serve
if the rate, of interest
should rise, and he can look back
over
the history of government
would
days.
In
and
have increased our
in circulation from $7,000,-
already very greatly
overdone cheap money and bank
bond
a
generated an expansion
credit
in
the United
few
$26,000,000,000.
We
to what prices they
see
low
few tens of
millions, and in the Fourth Lib¬
erty Loan, something over two
hundred millions—but only for a
000,000 at the end of June, 1939,
who
man
have
bank
money
simnly too low to
year bonds are
we
of
20-
on
at
from the banks,
of interest
nitude
listed
which
tions,
trust
funds,
investment
banks, brokers, and investment
companies, as well as individual
/10-year bonds, and 2 %%
the
three Liberty Loans a
'
corporations,
municipalities, educa¬
charitable
organiza¬
(..investors.
of
States of incredibly greater mag¬
business
includes
money
and the policy
Treasury of
borrowing
policy
is
of the individual investors and
cheap
Reserve
Federal
by indi¬
pathetically
small. The great bulk of the pub¬
lic debt ought to be in the hands
part that is held
The
vidual
war
contained
1917, and December
expanded bank deposits
debt in the form of
Of funded
bonds
more
however; increasing
a
56%.
or
,,
page
policy
war
world
Treasury's
Inflation Control and
Thursday^ October 18/1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
j
.1 I
»
:
;
x•/
:
/ /-i
/
|
-i v i
..
compared ; with cash subscribers, [
leaving, them with some loss but ■
not with losses that , would ruin
:
,
thieirZ'.
whose
solvency and liquidity are,
;: should
highest [ importance,
of
have
the
banks./
r
same
protection
banks
Both
as
;
,
//
/
theZ : /.
and [/FDIC
/ /
should
be
expected /to
take
shorter;:/ maturities ; in
making •///;these exchanges.. I have seen no ;
other/
this
It
proposal
that
3.
For'
account
an
of
■
at., all
solved
by
allowing/;W
j'VV/J
•/!/; ->■
Credit,"
■i
•:
Oct.
see
my.
1928. in-
market in
Economic < Bulletin-,'
Bank
i
adequate.
analogous.'.situation,
the' money
The' Chase
Loans.and
be
j
?
\
for- dealing; with //•[/;:/•//'
looks
cannot
.
"Brokers*
31,
1928.
v
;.N
^/•'
1«' ?
*
fc
«
».
J
J
'Volume 162
)
Number 4416
THET COMMERCIAL &
the batiks to
carry these bonds at
par on their
books, regardless of
the market.
Informed depositors
would *
simply
withdraw
their
funds from banks
wnose
capital!
have
bond
the
had
free
a
and
I woul^l add that in any
[ case the most hopeless pessimist
government
" The
market.
banks,
'.
Alv/ays in the past. 1939.
ary reserves.;.
we
liquidity
their
of;would wish to have
ability
make adequate loans to
cial borrowers and their
control
some
them
were
impaired
into banks whose
and put
holdings,
The
to
Financial
.
_
"
~
.
Royce
a sure market
for their longbonds
in
the
term
has
&
Weeks,
government
Federal
Reserve
selves.
mate
of
reserves'
must
banks
them¬
This is an ominous de¬
The holders of the ulti¬
lusion.
not
be
the
country
investment
tions and must not be
institu¬
(8pecial
supply long-term capital or to
.manipulate
the
bond
market.
When
the
Federal
Reserve
au¬
thorities are finally driven
tighten the money market rn
sisting
a great
not be
able
protect the
prices
of long-term
government
without feeding the
/
re¬
inflation, they will
to
tion they are
to
bonds
very infla¬
to control.
trying
ELYRIA,
(Special
not rep¬
a
considerable
body of
inside thought.
He told me that
we
had
learned
many
things,
which economists had
previously
known, which made it safe to
proceed along lines that we had
the
possible
progressively worse if
'delay, it. We can now fund
government
rates
at
we
the
moderate
of
cated.
c
interest, as above indi¬
If, however, we wait for
Inflation
will
debt
to
come, .interest
rates
rise
rapidly and the Secre¬
tary of the Treasury will sweat
blood as Treasury bills and
cer¬
tificates fall due, as
people cash
in their war
savings bonds, aid
he has to borrow
money on the
as
that
which
borrowing
the
as
unfunded
today he had
It will
with
Committee
sire
at all
perfectly
techniques
members
we
can
per¬
control rthe interest rates arid
to control
inflationary tendencies.
the
methods,, he said that, the Nazi
had developed 1 some very
goodt
technical economic' ideas.
I said,
"Yes, if you have' enough regi¬
mentation, if you have control of
all commodities and all
prices, if
you have control of every, mail's
ooeketbook
and
every
man's
bank balance, if you have control
of the farmer's
consumption of
Roy L. Garis
V"
production,
own
control
all
if
you; can
that
now.
our, post-war
budget is going to be
diffi¬
very
cult to balance and that we face
the necessity for drastic- econo¬
mies in the post-war
period., The
facts are that
proposals for ex¬
panding
after
Federal
the
war
,
must
expenditures
be
fought all
along the line.
We do not create
Social security when we
endanger
the dollar in which social
security
payments
are
to be made.
Artificialities Built
_
\JT, 1
what
the minds of
ernment
is
men
going on in
inside the gov¬
who, seeing the dangers,
still afraid to face them.
are
X have heard
some
fantastic
gestions.
But
sug¬
'
\
One of them looks to a com¬
pulsory holding by>the member
.
banks
of
fixed
negotiable
as
a
inal
permanent
rates
ever,
quotas
government
of
non-
securities
matter, at
nom¬
of -interest with,
how¬
the
understanding that in
times of necessity they
may turn
these over to the Federal Reserve
banks for cash.; Now always in
the
past
our
ties
in
the
government
commercial
securi/
banks
have been looked upon as second¬
v
Russell
IND.
is
—
with
'
Financial
/
•
&
with
credit."
and
money
in
the
preceding para¬
graph, it is not, possible to con¬
tinue
our
present
course
and
avoid a ruinous inflation,
;
I know at least
one man
in the
Federal Reserve system who was
reconciled to inflation nearly two
years ago, who. held that infla¬
tion always follows a great war,
and that it is necessary ta cover
up the great war debt.
To this
I would
man
first, that I do
say.
We can, by sound
taken
promptly, pro¬
our
from
debasement, and protect
from
system
movements.
ruinous
further
Soder
G.
F.
to The
Ray¬
convulsive
Moreover,
complishment
of
the
the
ac¬
measures
which I propose would still leave
far
inflationary
more
lying around
For
felt the
cut
in
dollar
main
the
in
seen
the
world
I
like
have
of
gold
not
see.
has
have
consequences
the
rise
of
production
not
upon
,
from
$430,000,000 in old gold dollars in
1930
to
roughly three times that
figure' in
new-
gold
dollars
in
Financial
Chronicle)
&
Secord
(8pecial
associated
merly with First California Com¬
•-'.'V,'-.'
(Special
'LOS
to The
,
111
■
*.' \(
(^
"ii
Chronicle)
Financial
ANGELES,
:.,
is
CALIF.—Roy
Teshera has become
Kerr
&
Chronicle)
1
CALIF.—Dan
with
Lester
&
Co.,
to
The
Financial
Chronicle)
ANGELES, CALIF.—Mar-
&
and
Louis
associated
affiliated
H.
Romey are
Livingstone
with
Co., 639 South Spring Street. /.
■
;^
(Special to The. Financial Chronicle)
j
LOS
ANGELES,
CALIF. —
Bruce Card, formerly with Rus¬
sell M. Anderson, has been added
to the staff of
.
A.
with
jorie E. C. Hensel, John D. Mat¬
thews
v
is
Spring Street., He was
previously with Hill Richards &
now
t
Stabeck
.621 South
Brothers, 530 West
Mr. Brown was for¬
;
«
CALIF. —*
ANGELES, CALIF.—Max¬
N.
LOS* ANGELES,
Ss.
Chronicle);
now
.
.
"
South
Maloney & Co., 650
Spring Street.
Consolidated Edison Company
.
$15,000,000
First
Committee's
The New York Gas and Electric Light, Heat and Power
is not
4
was
in,New York
of
Chase
the
in
1917
"The
and
reissued
V
'
V.
Bank
Effects; of
published
the
and
Banking
the. United
by
the
in
Carnegie
En-
downment for International Peace,
1919; and the issues of the "Chase
Company, First Mortgage Five Per Cent. Gold Bonds,
due December 1, 1948. , .
.
..•
Economic
and
the
Bulletin"
.
.
"Economic
Bulletin"
the
Research
Company,
Los
since 1939.
Capital
Angeles,
Calif.,
.
111.27
•
cas*
Holders of said bonds accepting this offer should surrender them to City Bank
Farmers Trust
October 25,
made upon
1, 1945,
or
Company, 22 William Street, New York 5, New York,
on
oj
after
1945, and payment therefor with interest to November 1, 1945, will be
delivery. In the
case
of
coupon
bonds, all
coupons
payable
on
December
.
subsequently, should be attached. Registered bonds should be accompanied
by appropriate assignment
(1920-1937),
issued : by
113.75-
..
Company, Purchase Money Gold Four Per Cent Bonds,
due February 1, 1949 .....
,.
" ...
op
States,"
t
109.68
»..
plus accrued interest to November 1,1945, these prices being equivalent in each
to a yield basis of one-half of one per cent to maturity.
1936);
War
follows
as
The New York Gas and Electric Light Heat and Power
(published
in
for them
The New'York Gas and Electric Light Heat and Power
He is the author of
"The Value of Money"
pay
4^4 Five Per Cent Gold Bonds, due January 1,1948.
»
(1920-1939).
Company,'
bonds; is desirous of acquiring any and all erf said,
New Amsterdam Gas Company, First Consolidated Mortgage
(1918-1920)
National
aforesaid
bonds for surrender and cancellation and offers to
Com¬
of
of the
issuers
the
ynfversify(l913-lS18),_EconomiSt
Bank
>'
•
Company and The New York Gas and Electric Light, Heat and Power
<.
'Assistant
Professor of Economics at Harvard
National
d»a February 1, 1949
'H-' r'
■
Consolidated Edison Coin pany of New York, Inc^ successor to New Amsterdam Gai
Com¬
a
Company:
Purchase Money Gold Four Per Cent. Bonds
Dr.
{{{(J^4444^ j
Anderson
merce
v
$20,868,000
the
be assumed to
Secretary,
Spahr,
mittee document.
and
Mortgage Five Per Cent. Gold Bonds
daa December I, 1948
nor
memorandum, though released by
the
4,
The New York Gas and Electric Light, ]
are:
represent the views of other mem¬
bers of the Committee and the
I■ Dr.
,
r
noted, however, that
endorsements may
E.
Company
dne January I, 1948
;
„
neither the memorandum
Walter
i
.
Hastings
It is to be
the
?
59/756#000
New Amsteidom Gas
Frederick A. Bradford
Hudson B.
New Yohh, Inc.
,
with reservations
paper
of
PURCHASE OFFER TO THE HOLDERS OP
,
'
1
annual
The
^
Credit
we
1
become
4
The two members who endorse
and
and
Richards
Francis
.
France
our
Hill
First Consolidated Mortgage Five Per Cent. Gold Bond*
Money,
of
with
^Special to The Financial
;
with Buckley
Edward Wiest
yet
we
gold: content
the
to
{
CALIF.—
-
Brashears
Whitney
impact of the 40%
1934
yet
world
than
thing,
one
material
•
LOS
Brown
pany.
—
(Special to The Financial Chronicle)
:
ANGELES, CALIF.—Har¬
6th Street.
;
Ruth, formerly
with
Witherspoon & Company,
Inc., has joined the staff of Hope
& Co., San Diego Trust & Sav¬
ings Building, San Diego, Calif. >
joined
fJ-.*
Financial
is
1
,
CALIF.
ANGELES,
Reuben
Beano,
Russell Weisman
price | bf
our
'
Chronicle)
South
to
LOS
•
Mr.
previously with Boston
was
LOS
old
{
Financial
Philipp H. Lohman
Roy W. McDonald
James D. Magee
•
.currency
621
LOS
.
The
Spring Street.
Holley was previously with
Barbour, Smith & Co.; Mr. Mayer
was with District Bond
Company.
Merrill
has
ANGELES,
with
(Special
v, V'.;;
to
ANGELES,
Co.,
Commonwealth Corp. and Fewel,
Marache & Co. 41 -V-v:.■{;
'
Company,
Mr.
CALIF.—
Denison
C.
—
Chronicle)
ANGELES,
G.
California
connected
are
Building.
previously with
Neal
Frederick
; '
/
First
Montgomery Street.
LOS
B.
Chronicle)
CALIF.
Luther R. Holley and Peter Mayer
Bank
^
tect
cannot pretend to know with
confidence
and
Financial
connected
Soder
*
.
ANGELES,
?
Clar¬
—
'
erties
measures
.on
Chronicle)
IND.
Chronicle)
well
with
*
'
Financial
Bell, 629 South Spring Street.;
'
not believe it.
Artificialities
<
The
the staff of Barbour, Smith & Co.,
endorsing
,
,
Wjlliam FI Haufiarf
the
are
views
John Thorn Holds worth
described
facts
300
Co.; 510 South Spring Street.
with
J
,
Ivan Wright
We had best face the facts
with
E.
4\4
to
210 West 7th Street.
ErC.Harw6od
Max Winkler
The
LOS
Inc.,
(Special to The Financial Chronicle)
Charles C. Fichtner
I may add, however, that with¬
out techniques of the Nazi type
fantastic.
The
M.
LOS
D. Ennis., {
Fred R. Fairehild
consciences.
hun¬
Financial
was
to
Herschel
to
de¬
a
1
Chronicle)
Ansgar M. Christensen, Donald ML:
Kepler and Clarence Knudsen are
t
with Paul H. Davis &
CSpecial to The
analysis and
two other
his
Those
D. W.Ellsworth
William
permanently service
three
Co.,
';4\4
Auble
are
LOS
the
without qualification are:
Charles C. Afbuthftbr
Nathaniel R,
,
&
INDIANAPOLIS,
>
expressed
in his
reservations.
He said that the trouble with the
Nazi is that they do not have
dred billions of
public debt with
six billions of interest is
to The
Auble
mond
Committee
of
Financial
i
■'
Special
(Special
Reserve
themselves
endorse
manently hold the debt service on
public debt to a. 2% rate is
fantastic. The notion that we can
the
Building.
(Special
recommendations, and
to
When I pressed him regarding
have
associate
Dr. Anderson
be
modern
to
Drastic Federal Budget
Economies
Essential
that
Mr.
submitted
members
The
Co,
&
Fox, previously with Walston,
I
Thomson & McKinnon; Mr. Dick¬
son was with Otis & Co.
4:44/4
real
document
member.
a
Twenty-two
exports ; and' ; ini;- Clyde W; Phelps
ports and foreign exchange trans¬ Olin Glenn Saxon
actions, and if vou have a suffi¬ 'Carlton A. Shively
ciently
powerful
and
efficient Alvih- S. Tostlebe
Gestapo, you can take great lib¬ Rufus S.Tucker
notion
Blyth
Co., ^Merchants
Monetary Policy of which Dr.
his
The
with
A.
ence
above
Federal
and
rapidly rising money market—or
else print, which would
not help
the inflation.
is
Dickson
instructions
was
confidential
a
Anderson is
and
debt, but
fear
no
under
Anderson,
to
Street.
j
Chronicle)
Lynch, Pierce, Fenner &
The
—
Economists'': National
Treas¬
involved,
Note:
memorandum,
from Dr.
on
money
circulation
of-inflation.
debt,
The Financial
INDIANAPOLIS,
authorities and to other important
officials in. Washington by the
as unorthodox.
He said that two years ago he had
been afraid of the great
expan¬
sion of bank deposits and
afraid of
that this problem be¬
say
H.
Circle Tower.
Editor's
Treasury
formerly regarded
let
me
to
{/ (Special
viplently
4
Corbrey
ANGELES, CALIF.—John
(Special
inflation always creates.
not
With respect to the
interest
burden -oh the government
comes
'
which may or may
William
—
FRESNO,' CALIF.—Robert
Ross
Rowell
on moderate
terms,
than to wait to face the
a
O.
D.
H.
Spring Street.
Hoffman & Goodwin, is now with'
Fairman & Co., 650 South Spring
Chronicle)'
Savings Bank Building.
.
rising interest rates which
Financial
has been added to the
staff of P. R. Smith & Co., Elyria
fund the debt
to
The
to
LOS
resent
ury's
V
wish
not
identify as he was talking with
me privately, an
alarming sugges¬
in
The Interest Burden of the
Public Debt
in the government's financial
>
Thomas
from
system, whom I do
tion
looked to,
to
man
(Special
State
2
Carter
650 South
Street, after serving in the U. S.
Navy.
•. • \
government; And ^
far better for the Treashard-pressed banks.'
ury to
face the financial facts
No such artificiality will
help.
regarding the public debt serv¬
I
have last Autumn
from
a
ice now, while it is
possible to
bonds
with
ME. —Harvey
G.
rejoined the staff of
Hornblower
•
pect
Chronicle)
BANGOR,
.
■
C-
•
.
(Special
meet
'
'•»
If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
7
Inflation is not something that
ability to you can turn off and on like
depositors'
withdrawals,
have
water
at a faucet.
of
Inflation and
government
securities
were: always been greatly strengthened
deflation
4are
not
simple terms
predominantly short-term.
Nor by their holdings of. government:
and they
do you solve
are not
simple oppoany inflation prob¬
securities.
To freeze government sites. There is no financial WeStlem by
forcing the Federal Re-' securities in the banks" is to
inghouse
.air
brake
serve
by means of
banks
to
take
long-term' freeze the banks.
Moreover, the which an
bonds from the member
inflationary movement
banks at volume of bank deposits, which
can be smoothly
tapered off and
"par.'
4
»
ought to be related to the needs
brought gently to an end without
{\»The present artificiality in -the! of commerce, would then tend to a shock.
Rather,
inflationary
interest structure runs far
beyond' be frozen, governed not by the forces engendered in defiance of
the regulation of
member bank' needs of commerce, but by the'sound financial
policy may seem
TrQr.pl,*.r'r.
Jl.
I
'reserves and short-term
Money market harmless for a long timeand then
-money' Treasury's needs.
;rates.
The Federal Reserve
control with respect to the needs;
suddenly
break
forth into .great
auf-j of trade and with
thorities are also
respect to the Violence^ "'
undertaking to
'
<'
regulate the
of
long-term interest need
checking ' inflationary
It is far better for the Federal
tendencies would disappear
rates, "' by
buying' 4 and
selling1
un-; Reserve System to act now
when
government securities of
differ-' der a system like this.
Again the'
moderate restraining movements
ent maturities.
(For an exposi¬ Federal Reserve banks, trying to
will accomplish a great
tion of Federal
deal, than
Reserve policy' tighten up and prevent the in¬
to wait until the great inflation¬
with respect to this
matter, see; flation from becoming a ruinous
ary movement is under way and
the Federal Reserve
would
find
themselves
Bulletin of® thing,
when even violent methods of
July, 1943, pages 590-91.) A
re-,
to expand their- credit
good't compelled
straint may have limited
efficacy.
many bankers have come to ex-- as
they took over
structures
*i
Broker-Dealer Personnel Iiems)
of the situation,
to;
commer¬
M
FINANCIAL CHRONICLE
CONSOLIDATED EDISON COMPANY OP NEW
TOME, WC.
By William F. O'Brien
Dated: October 4, 1945
IspqcE I
'
Treasurer
.
f iT
THE COMMERCIAL & FINANCIAL CHRONICLE
18*0
The
Mutual Funds
profits
The
October report
of the George, Putnam
2^•,;.'•
.■
Fund
is
fine
a
This
ex¬
a
primary objective of the Fund is stressed
report.
It is recommended
"good investment" for "the
ful
investor
who
seeks
as
—
in effect last
sold
his farm at
good
a
:'/•
.iV
:
price and wants to put his money
to^ work
without fear of losing
it."
It
is
recommended
individual
who
is
up
recommended
"for
' .>?/'
u
V*
•:
.(•
••
A Class of
.
Prospectus
Request
on
banks
DISTRIBUTORS
are
the
of
end
"common
stock
the
the
September
portion" of
Fund accounted for 42%
of total
2VX: 2i
considered
feasible
during
the
war
With
of
un¬
is
years.
Selected
1
"the House Ways and Means Com¬
mittee
has recommended
broad
and 31% in the "investment back¬
tax reduction.;
log portion."
During the third
quarter, the policy in effect since
the first of the year of gradually
this development to investors can
hardly be oyer estimated.
Another memo from Selected
reducing the
Investments Co.
tion
stock
continued.
was
por¬
-
an
era
selected
stock
are
groups
cash
than
In
;
stitutions.
current
and
porated Investors during the three
question: "How are you investing
fully discretionary, sole trus¬
tee accounts of $200,000 or less,
without special consideration of
the beneficiary's other property or
income tax position?"
- X
; %
A fairly uniform pattern of di¬
months
tion
ended
to
Sept.
United
-
30.
States
In addi¬
Treasury
Bonds,t three securities—Mohawk
Carpet, Mills, Pan American Air¬
ways Warrants and Tubize Rayon
added.
—were
in
creased
stocks and
Holdings
creased
Holdings were in¬
issues, machinery
11
reorganized rail bonds.
of 15 issues were de¬
eliminated
or,
entirely
with the emphasis in this category
on'the petroleum stocks and
mining
shares.
report of State
Corp.
for
lent to
Street
the
In¬
nine
Sept. 30, 1945 shows
of: $66,017,850, equiva¬
net asset value of
a
share.
per
Cabot
President
advises
it is the
"make
capital
approximately
from
the
each
year.
is
$53.49
C.
Paul
stockholders
that
intention of the Fund to
a
made
distribution
all the
sale
of
estimate
of
gains
securities"
Although
.
to
net
in
attempt
no
net
capital
gains available for the full
year
1945, realized gains from the sale
of
securities
months
for
the
first
nine
of this year amounted to
approximately $3.00
per
the, following
takes
stock
common
15%
from
among
was
to
share.
funds to create demand for stocks
the
total
the nine leading trust in¬
covered by the survey.
stitutions
"A
the
f,:
•
devotes two
time
stock
cither
to
be
market
of these
changed
greatly reduced
to
stocks
pointing
benefits
out
which
the
„
substantial
will i
to
accrue
leading companies as a re¬
sult of recent and prospective tax
changes. One memo reports that
the steel and railroad companies
will get the biggest tax refunds
under the speeded-up amortiza¬
many
which became effective
tion
President
Truman's
with
proclamation
of
fearful
about *
will
when
be
fundamentals is
that
so
current issues of Investment News
or
is broadly
is
demand
the supply of
increased. No
More About Earnings and Taxes
Keystone Co.'s current Keynotes
shows the 1944 average per-share
earnings for the
"
production promises
much higher than in
take
two
examples,
Steel
it
may
collect something between $50 and
$60 million and Bethlehem Steel
$40 million.
Many of the
leading railroads are in
larly favorable position.
a
"Today's
Issues
simi¬
'XX
of
and
that
,
shares,"
Dollar
railroad
relation
industrial
by
to
produc-*
comparison
for
market
the
with
industrial
-
Averaging
With
■>:c£:fijFundif:i^
Affiliated
X TXXX/X
showing the
results
of
dollar
averaging with Affiliated Fund
over a period which now covers
51/2 years. Had an investor started
at the beginning of that period to
invest $100
in Affiliated Fund
each month, he would today have
with
investment
an
total
a
value
at
offering price of $15,715, com¬
pared with a total amount in¬
vested of only $6,600.
*
This
•
ment Bulletin
on
Union
of
ers
Fund.
At
Preferred
present
Stock
of
10
the
28
issues in this fund's portfolio, rep-;
resenting 40% of its: assets,
invested in utility funds.
are
with
have
tax
ment that MrvPaul Bartholet has
elected
been
Executive
Vice-
President of Hugh W. Long & Co.
Director of the
Executive
as
tional
Companies,
for
These 40 stocks earned
earned
they
share.
-
1
*
,
on
aver¬
have
would
estimated
an
$10.18
per
and
to
hold
several
at
years,
should
be
wartime
taxes.
our
high
many
able
levels
for
corpora¬
to
exceed
earnings
before
In instances where gross
Na¬
Investment
established
effective
record
a
constructive
Mutual
Fund
best
field
wishes
extended to him in his
are
posi-
new
tion.
2:2'•'•2':2. 2
Walter
Scott
of
Lord,
Abbett
that Lt. Col. Robert H.
announces
Noland, who has just finished a
three-year -stretch in the Army
Air Corp., is returning to Lord,
Abbett
Eastern States represen¬
the same time it was
as
tative.
-
"Since business activity prom¬
ises
of
Association
At
announced
that
John
L.
Schmitt
has been promoted to the office of
Eastern
Sales
Manager for Lord,
Abbett.
National
Securities & Research
Corp.—Revised portfolio folder
Mi
for the
NMM
National
Stock
Abbett
Investment
American
SEdMlTIESilllES
eystone
lan
PREFERRED
of Investments
000
Group
20
Exchange Place
New
York
STOCK Shares
Request
General Distributors
City 5
Teletype NY-1-2439
^
Priced at Market
Prospectus upon request from
your investment dealer or
RESEARCH CORPORATION
MANAGEMENT OF
120 BROADWAY
New York 5. N. Y.
issue
on
Lord.
.
on
show¬
on a
of •; Tomorrow
minded
Prospectus
from
your
-The
may
he obtained
local investment dealer
or
Keystone Company
of Boston
50
J
will
and
Congress 5treet, Boston 9, Mass.
folders
General
Priced
on
be
air-
an
memo
Bond
Shares.
I vestments
randum
lected
Sept. 30.
Railroad
on
Bond
Shares'
.
.
.
steel
Shares,
and
Low
Selected
Co.—Portfolio
showing holdings
American
of
the
The
2.
five
be
years.
of
term
of
office
the
directors shall be four years, and
four of them shall
retire each
year on
the anniversary of
appointed day: 2/
Provided
the
,
that, of the directors
appointed to take office on
appointed day, four shall be
pointed to hold office until
first anniversary of that day
shall then retire, four shall
the
ap¬
the
and
be
appointed to hold office until the
second
anniversary of that day
and
shall then retire,
and four
shall
appointed to hold office
third
anniversary * of
be
until
the
and shall then retire.
that day
3.
A
office
earnor
ble
be eligi¬
director shall
or
re-appointment to that
for appointment to any
for
office
*
who has held the
Governor, Deputy Gov-
person
of
or
other of those offices.
4.
A
shall be disquali¬
person
office of Gov¬
fied for holding the
Governor or direc-f
ernor, Deputy
tor if—
(a) he is a Member of the Com¬
Parliament
of
House
or
a
holding an office of profit
the, Crown; or
:
2 ^
(b) he is an alien within the
meaning of the British Nationality
and Status of Aliens Acts 1914 to
1943; or
0
,
(c) he; is ■ subject to any disfqualification which may be im¬
posed by the charter of the Bank;
and
a
person
shall vacate any
such office if he becomes subject
such disqualification.
direc¬
Where the office of a
the foregoing
tor is vacated under
paragraph, or by death or resig¬
nation, a person appointed to fill
the vacancy shall hold office until
the
time
when
the
person
in
whose
would
place he was appointed
regularly have retired, and
then retire.
shall
Not
6.
than
more
four of
the
employed to give
exclusive services, to the
directors may be
their
Bank.
following
provisions
as respects any
The
7.
shall
effect
have
meeting of the court of directors
held on
or
after the "appointed
making
day but before a charter
for the matters dealt
with by this paragraph has been
granted and accepted under this
provision
Act:—
(a)
-
,
_
-
the meeting may be called
by the Governor or Deputy Govr
earnor in such manner as he may
determine;
(b)
\
shall consist of
quorum
a
eight directors to¬
than
less
gether with the Governor or Dep¬
uty Governor;
■
(c)
the
when
court
quorum
a
is present
act notwithstand¬
may
vacancy exists among
the members of the court.
>
ing that a
$10,-
Aviation
world!"; current issue of
News
office
Distributors
of
backlogs; also revised memo with
charts
showing the position of
steel stocks in the current market;
current
Investment
Report
on
Group Securities, Inc. listing those
groups considered most attractive
for investment; revised portfolio
<
NATI0MAI SECURITIES I
KARL D. PETTIT & CO.
■<
An
—
.
Shares
investment. 2 2.
Steel
Knickerbocker Shares, Inc.
Business
.
Bulletin
News on department store sales of
airplanes and stressing "the World
Supervision and Safe-keeping
on
Series.
ing portfolio breakdown
Diversification,
Prospectus
—
shall
ernor
not
Mutual Fund Literature
Directors
of
term
Governor and of the Deputy Gov¬
5.
•'XXXX
eliminated.
The
to any
Personal Notes
.
The writer of this column was
happy to receive the announce¬
of
Court
1.
current Invest¬
Union Preferred, under
points to the speed-up
in utility reorganizations and the
likelihood that this development
will prove favorable to the hold¬
cordial
compared
what those earnings would
been with the excess profits
as
y
Supplemental Provisions as to
mons
9
Stock Fund
and
"S-3"
England 2;
SECOND SCHEDULE
person
sponsor's
Stock
tions
of the
from
for
in
low
are
forecasts
tion
prices
the
their
One
be
date.
work- in
eliminated
To
to
for the Dow-
Industrials
Jones
40 stocks cur¬
rently held in Keystone Common
Fund
2
(Continued from page 1834)
industrial
and of the funds and management
future."
fied.
indicated that U. S.
and
revenues
organization under the Long Com¬
pany sponsorship.
Mr. Bartholet,
foreseeable
Calling
Of Bank of
;2XxX::': X'/xXXX.'X
the
age $17.89 before taxes last year.
After EPT their average net per
share was $4.07.
With the EPT
is
W.
such conditions appear likely in
Sept. 29. 1
For companies which have paid
large excess profits taxes during
the war, the indicated advantages
of speeded-up amortization are so
great that no other course than to
accept the refunds can be justi¬
around
The
rail
V
two
and, second, the capital gains tax
which
restricts
the
supply
of
stocks. It is pointed out that these
two basic forces for higher secur¬
ity prices are -not only- present
today as they were in 1928-1929,
but; they are present with multi¬
plied force.
-portion "ranging
of
Gorp.'s
outstanding forces, it
is stated, are, first,- the Federal
Reserve
System
supplying
the
shown with the
40%
Research
&
the
X The
•
versification
National
of
interesting viewpoint
as inflation, huge
savings In the hands of the publid
and
lower purchasing power of
the dollar are not the real, funda¬
mental forces pushing prices up.
new
Distributors Group
months ended
assets
with
Tax Beneficiaries
;
vestment
net
institutions
issue
current
that such factors
such
of
Hugh
Railroad In¬
Lord, Abbett has brought up to
date
the
interesting
tabulation
weekly service, Investment Tim¬
ing, contains a discussion of the
"long term forces affecting the
stock
market."
This
discussion
gold
State Street Investment Corp.
The
officers
investment
the
.
Securities
leading New York City trust in¬
The magazine ""Trusts
Estates," recently approached
release, the Parker
Corporation reports the net
changes in the portfolio of Incor¬
a
The
discusses the in¬
vestment of new trust money by
•,
Text of Bill
For Nationalization
Industrial production creates
21.
fore¬
volume
Whither the Stock'Market
The importance of
\
/ncorporated Investors
the
on
that:
shows
was
industry, this
important
reason
another
today."
time in 16 years,"
Investments Co.,
"For the first
writes
Co.
&
from
memo
new
in¬
than
better' investments
Taxes
a
dustry Series of New York Stocks
fully in
earnings
why
assets, with 27% invested in the
"dependable fixed income portion"
common,
A
Long
excess
that
i
At
net
leave
Railroad Stocks
cast for American
NEW YORK 3, N. Y
•
the
mean
equalled business
GROUP, Incorporated
63 WALL ST.
of
will
corporate
which
larger return than the
paying. •
.'<• .;
a
tax
vestors will share more
foundations
but money from
.
.
needs
tax
larger
profit for shareholders."
still
advance of 8%
profits
a
It is
*
r
V, '
In summary, it is recommended
for
"important money"—money
that one doesn't want to speculate
with
profits
year.?;-;22XXxx2"
"Elimination
and institutions."
one
excess
year.
Croup Sscuritiss, Inc.
"the
for
setting
trust ftind for his children."
lower, the elimin¬
the
of
interesting angle is re¬
i4
prewai
vealed in that the earnings before
;X2: years. *
'
'
taxes for these companies could
2. Rail stocks lag behind
the
decline 50% and, with the excess
market, with the Dow-Jones
profits tax removed, they could
Rail Average down 6% from
still earn more than they did last
June 26, compared with an
Steel Shares
It is recommended for "the farmer
has
are
Another
living
protection against inflation."
who
excess
earnings
ation
could
share
per
prof¬
its tax eliminated. The figures are
$4.46 per share of actual earnings
as
against $10.55 per share had
there been no excess profits tax
return, reasonable capital security
and
average'earnings
care¬
a
excess
investors.
to
means
have earned with the
throughout the
a
of* the
of 55 leading common stocks are
shown for 1944 and compared with
what
these
same
stocks
would
good story to tell—and telling it well. < This fund
"is designed for your investment money, not for speculative money.
The primary objective is to provide individuals and institutions
with a good investment."
ample of having
tax
illustrates
memo
elimination
The
"Important Dollars";:
second
what
Thursday, August 30, 1945
Shares
In-
Boston Slock
Celebrates 111 Years ;
MASS.—The
BOSTON,
Stock Exchange
birthday
on
as
of
Boston
marked its 111th
October 13.
The Ex¬
change, which now has a member¬
122 brokers and occupies
ship of
offices
floors
on
founded
in
one-room
There
first
the
53
at
State
1834
office
are
by
62
many
of .which
of other
and
second
Street,
13
men
was
in
State Street.
on
member
memo¬
of Se¬
Exchange
are
a
..
firms,
also members
exchanges. Eight of these
member firms
are
incorporated.. X
1
^Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4416
•
1841
gardless of political swings to the
The J)ne
y
Unused Tool of
demands grew fast for the output
profits
of the harmonious company whose
They
harmony
itself
was
in its efficiency.
great factor
a
■:
could
all
in
isn't
this,
anything
it's
but
the
kind
of
easily
the
troublesome
last
decade.
During that decade the
thing
of
men
111
-
forgot in
years
of
the
we
prisoners of
i
of
in
it
in
war
that
occupied
an
in
but
way,
direct way you put it that
fl;
been
Maybe you didn't think
territop^
ill..
have
management
the
in
ness
was
choose the
your
"busi-
doghouse,
them at
going to
any details.
By the
most -democratic
process
in the
world—a secret ballot every day
was
territory,
been
the territory that had
since the War of In¬
•
yours
dependence and the founding of
Constitution^
the
territory
the
where you had done a better job
than had been done anywhere else
in the world,
.
Apparently the worst that
can
be truthfully said of you as a class
is that you didn't tell the world
what
i
doing and how
you were
the' nation's
served
you
interests,
the
Your very
efficiency,
meeting of the world's wants
good of all the people.
in
success
your
at
lower
made
profits
and
still
and
lower
prices,
you
prosperous
and
a
target for abuse.
The
natural
country doesn't know how little it
for good brains and execu¬
capacity.
It doesn't know
corporate profits and large
pays
tive
that
executive salaries
.
last
bit of
wee
come
from
efficiency in
the
man-
agement, after a company passes
the
profit deadline ? where • ex-
.
-
covered
penses. are
bit, of
wee
the
and
last
efficiency in
increasing volthe profit.
You
added
lowering costs
ume
produces
or
the scapegoat because busi¬
were
ness
wasn't
men
of
business.
were
understood
you
management personified
The world assumed you
[ getting
share
and
than
more
your
of what you
produced, and
you were accused as a hard, selfish bunch of exploiters.
You had
.
been
<:
so sure
that
of your own purposes
pride
your
hurt;
was
the
to fight if you felt you
were right.
Some few of you had
a right to think that you were not
being
accused
but
gradually
pected
nearly all of you began to wonder
whether
there
might
not
be
something wrong about a profit,
and
you
began to wonder why
you kept on. for you didn't want
to
to
seem
Down in
motives
would
fight
Government.
felt your
questioned and you
were
not
your
heart
your
be
you
believed
if you
re¬
plied.
In sullenness, you began
attacking the men who attacked
you, instead of attacking the ideas
those
of
gained you
it
didn't
;
the
giving
to
it
the
consumers
because
country
that
the
you
everyone
and
was
they
you
in
a
of
were
forgot
pressure
group which
thought of its mem> You saw
pressure group after another
gain
some
advantage for itself
.against all the consumers, and you
bers only as producers.
one
4
foresaw the situation where every
element of
our
be
to
'(■
forced
group in pure self de¬
You saw group conscious-
pressure
fense.
■
population.would
organize its own
developing and group hatreds
growing.
•„/
-V;/
yv '
nfss
;
You must have seen—when you
stopped to think about it—that
there
tion.
was
no
You
logic in such
had
learned
a
situa¬
that
the
well-being
of
your
employees,
stockholders and yourselves
depended
upon
the
consuming
public and their willingness to
buy your output.
These consum¬
your
ers
were
the bosses of all of you.
They didn't really care about the
trial by us, yet that is
was
giving
the
they
what the
price
consumers
the
at
wanted
consumers
willing to pay. These
are an impersonal lot.
They don't argue with you and
try to reform you.
They tell you
that they will not hire you with
any guarantee of price or volume,
that you set yourself up in busi¬
ness with the idea that you will
find out what they want, offer it
to them at a fair price, and at that
time they will exercise a > free
choice. They will buv what they
like, and no more.
They may be
induced to buy, but they cannot
were
consumers
purpose
be
forced
to
They see the
costs of
goods they need.
They will soon
see that if government starts pay¬
ing producers for not producing
buy.
increases piling up in the
goods, it does the consumers no
good to stop buying, if they are
to
called
be
to
taxes to
keep producers in idleness. If the
elements in producing goods are
going to insist upon pricing them¬
on
pay
selves out of the market, the con¬
he understands
sumer as; soon as
will not pay taxes to suooort these
producers in idleness. These con¬
sumers are the great unorganized
group; they have the
votes; they will -insist:the
pressure
most
,
State socialism and
eral
Government,
a strong Fed-?
something ab¬
America
since its
founded.
>;■
,
>
first
,.
•
I don't believe America will
go
:
knowingly to State socialism.
It
might conceivably slip into it un¬
wittingly, or go into it a step at a
time,, but the
will
generally
It will
on.
their
the
so
people
initiative.
own
from those who will
come
make promises
the sake of
from
do
to
pressure
arise
not
of its benefits for
winning votes.
unhappily, State socialism lends
itself
as
great political tool for
a
the demagogue who can gain votes
by promising the benefit of State
socialism
when
he
isn't
going to
be held to account for the longrange
effects of his promises.
Promises of immediate benefits
will
always
be more powerful
than distant dangers and far re¬
moved risks.
not
have
The
to
who does
man
the
count
of
costs
carrying out these promises can
marshal a
political force which
will always be very difficult to
overcome.
There isn't anything
glamorous about balanced budg¬
ets, sound J money policies, the
competitive system, a large vol¬
ume of production, hard work, or
selling one's services at the price
the buyer is willing to pay—cer¬
tainly nothing so glamorous as the
promise to provide jobs for all.
Could
it
be
that
this
idea—that
will
guarantee
the
and not any selfish
jobs for all who want them—came
directly from Nicolay Lenin, who
interests in a
Therein
the hope that Congress will
with
itself
cern
lies
group.
con¬
the, consumers,
taken in their longserves
the whole
nation and not merely a part of it.
for any action
range
interest
Dangers of Planned Economy
It is your responsibility if you
fail to offer these consumers what
they want at the price they are
willing
to
need, only
One
pay.
long list of business
failures among big and small con¬
cerns and the comparatively few
the
look at
business
successes
that last
impersonal
know how
eration to
the
consumers
one
objective
have
They
are.
and
a gen¬
they
carry
it
out—they demand what they v/ant
at
any
time at the price they are
If you can meet
should prosper,
but they are utterly indifferent if
you fail.
There isn't any virtue
willing to
this
in
business
you
in
preaching
consumer.-
to
do
live.
wishes to
just
It
that it
has
no
that ii it
There is
always
with either
someone
capability Or
who
the producer who
with enthusiasm plus money
will crowd
out
doesn't truly serve the consumer.
The
concern,
succeed
Government
oointed
the
out many
to
way
years
destroy
our
and
with
the
capability
may
one
with money
may
lose both its
ago
that
of
type
self-government would be to cre¬
ate a public belief that govern¬
could
ment
permanentlv supply
all
of
the
people
with
jobs?
Lenin's purpose wasn't my pur¬
pose, for he pointed out that the
certain
result
would
be
such
a
clamor for jobs that no free gov¬
ernment could withstand the de¬
and
mand
efsble.
remain
And
of course it does no good for the
State
to
guarantee
man
a
job
a
unless it sets rates of pay and the
kind of
as
a
job that will satisfy him
a
*
•
taken
in
the
direction
and
planned
economy
cialism.
The argument
on,
and
we
are
asked
of
a
State so¬
still goes
to
accept
for ourselves what has been tried
by many
countries in Europe to,
the
individual
unless
very
best job they know how, and
business
do
men
the
unless they convince America that
they
doing that quality of job,
are
have increasing difficul¬
will
we
ties in the days ahead.
With
that background I want
paint in what I think is the
responsibility of corporate man¬
agement.
There can be no for¬
mula for handling the problems
confronting you in these days.
The best that I can do is to place
to
now
channel markers and
some
.
first
successful
better
vides
because
goods
to
is
it
pro¬
all
the
in
man¬
agement and stockholders.-
Man¬
challenge ahefc
There cannot be
any
question about your selfinterest or your loyalty to your
country and your loyalty to your,'
own
conscience.
Every one ofv
and
share it, for
cannot
bility
is
know
that
what
is
We
made
Everyone of
us
is
to
proceed to get more
inducing them to
expand their activities, or to start
new businesses, either as self em¬
employers
ployers
by
or
as
the
employers
others. 11 believe this
can
of
be done
only by inducing men to do these
or
As long as America's attitude is
confused
as
ernment,
business
to
then
men
the scope
the
of gov¬
attitude
must be clear.
of
Re¬
gardless of what government has
or
for
common
a
weren't
may
do in the future,
cooperate
If
purpose.;
chosen
for
that
■
you
reason,
don't perform on that
somebody made a mistake
basis,
picking
for
you
job.
your
There may be bther abilities de¬
manded in one! who is competent
in
management,
to
influence people
but
the
"ability
to cooperate"
is the prime one, the sine qua non.
In the end that's the test you meet.
If
succeed in this, you, your
and ,? your
workers
you
stockholders
all succeed with you.
If
fail,
you
the best thing that can happen
you
to
is to recognize the failure and
resign in time before the failure
involves your workers and your
stockholders
as
well.
re¬
of
a
course
want
gov-t*
jobs
easy,
our
to
we
want
govern¬
out
get
I think you have
government.
but that you have been
from
doing what you
well, if you but try.
;
shrinking "
can
.
do
V
so
":?
Corporate Management and
.
...
Public Relations
t
,
;
people have a
greater" stake in this American
way
of life than they seem to
realize.
They could be convinced
■V.
The
American
VI have
personally present it courageously x
to their own people and then in
MIt isn't a job for
relations < or press rela¬
tions, though both could help.
It
must
not
be
delegated,
for it
should
be the
personal job of
each man-in management.
;
Now
there
isn't
a
law - that
larger groups.
public
places this responsibility on cor¬
management or that sets
penalty for its failure to
The rewards are so great for
porate
up
any
in Amer¬
corporate ; c management.
men
carrying management
ican
Most
responsibility have won their po¬
sitions through gaining the con¬
their
of
all
people
associates.
so
chosen
Al¬
have
otherwise
as
.
have
not
likely
That's the
would
chosen.
they
been
outstand¬
one
ing fact about the general charac¬
ter of American corporate man¬
agement.
Now
for
that
great
talent,
let
point out the greatest oppor¬
tunity and the greatest responsi¬
bility—the maintenance of our
faith in our form and kind of gov¬
ernment—the
keeping
of; the
bright
sword of free enterprise as
and untarnished
our
as
when it
That job is
time.
a
came
chal¬
lenge to every man who is willing
stand on his own feet, every
to
man
who
ward
knows
State
that
drift to¬
will be. a
a
socialism
and not a
that will
destroy both the freedom and the
enterprise of all the people. How
many top executives do you know |
who have tackled the job of un-1
derstanding the simple principle?
leveling down
leveling
up,
process
a
process
of economics that need such wide
explanation, and then tackled the
job of telling it all in simple terms
to the members of their own or¬
ganization?
everv
That's what I think
executive should do.
will
to
ib
do
happen
if
this job, and you don't
need any radar to warn you of
the approach of the enemies of
the American way of life.
on
great ability to influence
If this
people is used on this one prob¬
as- it
is used so well on so
lem
the
then
important
less
many
American
problems,
way
of
life
opportunity to
responsibility for
will survive—equal
all,
personal
one's well being, no leaning on a
beneficent or a bankrupt govern¬
(the only difference being
of time)—with no coercion by
ment
pcopie,
aiter
navmg
anyone
ment
If
can
con¬
and
to
men
see
favors by govern¬
individual or group.
no
any
a
can
be happy
when they
worthwhile project that
their best talents and
possible effort for a period
of years ahead, then the men in
American corporate management
can
occupy
every
should be happy, because
will
meet that
Here is
this job
specification.
chance for American
a
executives to rise above their own
personal interests on the job that
calls for the best of courage and
initiative, and will increase the
potential power of every
execu¬
tive who tackles it.
If
this
ment—its
great tool of manage¬
ability
to
influence
people—is to be used, apparently
courage alone is needed—coinage
is the thing, for all goes if courage
goes—courage described by Sam¬
uel Johnson in these words: "Un¬
less
I think he should go first to his
own"
what
know
fail
you
one
me
to
failure
for
penalty
You
great faith
a
v
management who understand the *
common sense of the situation and
no
People to Cooperate"
v
-
by the top men in every corporate
doing the job that there need be
Management: "To Influence
1
good case and that you know it,
act.
^
make
to
of this field of
controls
of
private
business;
When we ask government tn help
us in
these problems of the day,
we only give power-hungry men y,
in Washington full support for the
belief that business needs the help
all
if you
and
in
to
of
and
ment
stockholders made you their
trustees, and when you accepted
their delegation you accepted full
people
We
government.
on
ernment
The
influence
•
complains, and justly, when peo¬
ple lean on government, and yet
in this matter we, too, are leaning
body's business is nobody's busi¬
ness.
That's why a debating so¬
ciety is no good as a management
to
tackling this job.
us in management
to
every¬
responsibility.
Let there be no
uncertainty on that point.
You
were chosen for the responsibility
for
only
one treason—that
you
possess
the
greatest
power
of
management—simply the ability
this
these considerations will lead you
responsi¬
divisible.
not
recognize
to
has) this) responsibility
agement
-
this opportunity.
who share in
group
that he
story an*t
second-hand story in the sim¬
own
in life that doesn't call upon yc*t
consumers
production—workers,
pre¬
plest terms he can use, with hie
applied to the particular
business in which he is engaged;
I know no reason why you what
not get attention to your ideas*
and I a think the success you have
in the job will depend in large
measure upon how much of your
heart you throw into it.
I doubt
that any of you have any interest
progressively lower prices, and
second that it provides fair reward
the
can
after he has decided
going to tell his
no
at
to
he
facts
warn¬
ing beacons along the course of a
successful business,
one
that is
that
a
and
own
also convinced
am
that
cooperate"
look at this problem of
wide employment.
It is my belief
that the way to get more employ¬
done
his
knows
ernment, but I
the ability "to influence people to
Employment
yu
ment
find
we
affairs better than anyone in gov¬
most
More Employers Means More
fi Let
know, in the
them, to¬
we
as
himself
forthright and
earnest,
statement of; his beliefs, after he
has steeled
his
courage
to the
point that he is willing to answer
any question that can be askeds,
adding to employment and
increasing the volume of business.
I am one of those who think that
fidence
voter.
(
■-
best
very
sent
ward
Lenin
.
things and not by coercing them
by making it difficult for them
enthusiasm and its money and the
to become employers.
I do not
consumer will go on his way un¬
believe it can be done by any de¬
concerned.
He thinks the risks vice of
government planning, for
and the rewards are, fair.
That's the inevitable
tendency then is
the American way of life—equal toward
regimentation
or
State
opportunity for all, personal re¬ socialism. : I think the responsi¬
sponsibility, no coercion by any¬ bility of government is primarily
one, no favors by government. th£; to
clear the way for people to
free enterprise system as we have
provide jobs for themselves and
come
to refer to it, and it will
for employers to employ others
stand or our way of life will go
and, in general, to clear the way
under just as others have gone
for people to do their own plan¬
before.
We don't know any bet¬
ning with reasonable assurances
ter way of life, though in the last
as
to
important
government
decade we have seen many steps
policies.
and enthusiasm
the
vinced
the left, it Will still ,re¬
job for all of us to do
conditions
financially
probably
didn't see how soft a government
could -be regarding pay rates, for
.
pay.
demand
the
,
producers serve the whole people
production
or
main
,
,
but
of
roots
should say that idea
we
a
colony
choice
the
thing that
is worth
longer needed, as they weren't
public support, for
to
throughout
the
Doesn't it seem a strange
democratic process that they were
the
support of
this
;...
no
get
out
by this same
serves
You knew you deserved
trouble.
and
in
That ' platform
men.
rooted
world?
the
enemies,
insisting in our
that this same idea
horred
concerns
you
almost plead guilty to
charges, for you were ex¬
you
our
now
told many
didn't tell your side and, in your
silence,
of
we
being advocated in
much
of
the
legislation before
Congress.
Such ; legislation
is
frankly aimed at progress toward
an-
for',the; Federal Govern¬
really occupying your
ology
ment
minds
terms of peace
be
social
we
—they voted, by giving or with¬
holding their patronage, upon how
well the producers were going to
live and, in fact, upon whether
they were going to live at all as
producers.
These consumers had
no
"prisoner of war"
the
and
fight this latest
destroy this same idea in
aren't
not
were
Didn't
to
war
to work for
going
They
bother with
all,'
new
difficult
that
lay
day whether all of you
economic
own
injury.
producers.
problem aside, because they could
were
there
the
among
say every
"Business in the Doghouse'
Now
their
division of the salaries, wages and
(Continued from page 1831)
:
right
no
a
man
has that virtue he has
security
other."
for
preserving
any
t4r
1
I?T
THE COMMERCIAL* & FINANCIAL CHRONICLE
1842
able
A Big
(Continued from page 1821)
importance
such questions as the mechan¬
of changing from the manu¬
,
give only secondary
to
ics
facture
radar to FM radio re¬
of
ceivers for the home; disposing of
surplus war material and govern¬
ment-owned
plants;
setting
a
figure for unemployment
compensation;t; or deciding
whether Bulgaria has or has not
a
democratic government. ft Even
proper
Sales Job Ahead''
Has Ability
Industry
to Produce
Industry's
ability to produce
has
expanded
enormously,
al¬
though just how much is still any¬
body's guess. I can be more spe¬
cific in
talking about my own,
the radionics industry*
Our ca¬
pacity,
measured
in
terms
of
physical productive ability — not
in dollars—has been expanded at
In
least four times.
war
our
last pre-f
produced nearly 14
we
year,
de¬ ^million radio sets, of which abdut
veloping in all segments of indus¬ 11 million were sold, and the re¬
try are not the primary problem. mainder carried, over and doled
True enough, they must be solved. out during the first period of the
This was by a substantial
It is also true that if they drag war.
Mar¬
out too long, they mqy cause real margin our largest year.
the
hazards
Never¬
ket surveys and estimates of the
even
when they and the
pent-up demand for radios range
from an immediately pressing de¬
I
difficulties
other
are
reconversion.
to
theless*
that
troubles
labor
have
men¬
tioned above have been overcome,
industry
know it will still
we
as
be; highly vulnerable in years to
come.
It has an Achilles heel.
// ;
The real crux of our problem^
mal
replacement
nor¬
a
based
on
previous experience with ob¬
solescence, of from 25 to 40 mil¬
lion
If
sets.
demand,
radionics
the entire
ity
that
ects
appropriations that
ized our grandfathers.
scandal¬
It will
mean a perpetual tax burden of
unprecedented
severity, and
a
continual growth of Government
regulation and planning forced on
Call it what
will, the net result will be to
force upon us the very conditions
which we fought this war to pre¬
nearly all businesses.
you
vent.
We must not ignore the serious¬
of our problem, nor lull our¬
by
how
mand within
good a job will we do of
maintaining a high level of em¬
ployment
through
the
coming
years?
In my opinion, the manner in
de¬
a year.
Fortunately,
however, there are so many new
war-born uses for radionic equip¬
ment that even with
which American industry answers
enlarged
capacity, industry leaders believe
that
sales-minded
management
this
can
will determine the
way of life that we, and our chil¬
dren, will follow. If industry an¬
question
these questions as they can
swers
and should
ture
be answered,
fu¬
our
a
free democracy is as¬
If industry fails, it might
as
sured.
confronted us/ The problem
ever
is
tossed
squarely
into
lap.
our
Industry's success or failure in
solving this problem of reconver¬
sion
will
be
determined
largely
by how effectively the sales
ecutives
of
the
nation
ex¬
perform
their task in this post-war era into
which
|
we
now
are
entering.
The Achilles heel of industry is
our
ability to create
point
It
demand.
consumer
where
the
is
industry
vulnerable/ It is
sustained
a
is
:
one
highly
than sales¬
more
manship, if you think of salesman¬
ship merely as the task of getting
Madame Pasquali to trade- in her
old washing machine for a new
and shiny model. We must create
and sustain such
that
we
desire for goods
a
will steadily increase
sumption,
the
move
consumers
con¬
products
efficiently
and
at
to
the
least
possible cost, and thereby
raise the standard of
living that
will permit high
wages and large
production.
vV' This
that
means
must build
we
up the enormous post-war market
that has been so freely
predicted,
through the years
1929, with a national
and maintain it
to come. In
income
83
of
billion
dollars
and
consumer
lion
expenditures of 71 bil¬
dollars, we had reached a
level
that
not
was
equaled until
1941, the year we entered the war.
That year, with a national
income
of 97 billion
dollars, marked the
real
beginning of the sharp rise
Which
has
continued.
Last year^
according to the Department of
Commerce, our national income
Was 161 billion, with
consumer ex¬
penditures of *98 billion
dollars;
which compares with. 43 billion
pilars
Since the financial collapse of
1929, our political differences in
United
the
States
have
been
largely a struggle between two
diametrically oposed schools of
thought.
Prove Superiority of Private
One
believes
group
that
trolled, planned economy can as¬
sure equitable distribution of the
products our industrial plants are
able
to
turn
out
in
such
profUr
sion.
We who
-
are
hold
day
view.
assembled here to¬
entirely
an
different
We believe that the
com¬
petitive system of free enterprise
developed in the United States
did more to improve the common
lot of humanity than any political
economic system that has ever
been devised.
-
or
:
We recognize that serious mis¬
takes have
been made
under
our
capitalistic system in the past, and
that
will
more
future.
be
made
in
the
However, the record
of
human life in the United States—
Industry
and
employment,
sustain
American
provide
adequate
we must
hold up our
national income and consumer
penditures to levels that
ex¬
come
least close to those of these
at
war¬
time boom years.
gentlemen,
we
But this time,
must do it with¬
out the aid of the
ernment
deficits
the war;
we
enormous
which
must do
sale of goods to
Gov¬
financed
it from the
consumers.
six
or
gree of
prosperity and security for
the
entire
population
that has
never been approached elsewhere.
We believe that preservation and
orderly development of our~ free
enterprise system will insure, a
higher degree of prosperity and
happiness for Americans than will
any other system. But gentlemen,
it is up to us to prove it—up to
us to make this system work.
It
is fortunate indeed that we have
before
us
years
of
which
we
the prospect of several
good
can.
business
solve
our
Industry
but that
as
it has
no
of unemployment on a chart. The
mill/ions of boys coming home
from
are more than just a
returning vets hoping
to find jobs.
No, the millions of unemployed
war
bunch
of
t
workers
war
on
industry is
Each
has
never
subjected to
jobs
that
are
"forgotten
these
mind
trial today
Un¬
> we
may
'
The
did in 1932. You can't and
won't take up the slack.
Govern¬
as you
ment must come to the rescue."
In my
opinion, the time
not
to
prove
our
man."
For
who wants
each
of
job, in¬
dustry must provide;/otherwise
he will look to the Government
men
a
for it
or at least, the compensation
job would provide.
Another thing to remember is
that each discharged war worker
received a sharp lesson in thrift
by the
very
suddenness
with
a
which
his
atomized
well-paying job
out
of
was
Mil¬
existence.
lions of workers are, for the first
time in their adult lives, entirely
free from debt, with a little nest
egg of
bank.
bonds
money in the
savings represent
accumulated purchasing power, it
or
Their
is true, but most of them
are
go-,
ing to hold tight until they see
that opportunity for work is open¬
ing up.
So you can't count on
these
accumulated, billions
as
funds to come clamoring to your
door to be spent.
For that matter, it is not only
temporarily unemployed who
the
lesson in thrift/1 dare¬
a
that there is not
in
this
who
room
one
person
failed
has
to
note
the surprising durability of
automobiles, radios, washing
machines, typewriters, and other
our
when
devices
we
are
forced
to
keep them in service without re¬
placement. Until this war I had
never in my life owned the same
automobile
more
My pet
is
than two
years.
five years old.
In my opinion, these factors add
up to give a far different picture
than one of customers crowding
car
other
now
of
out
line
in
their
buy what each of
has to sell./Many an automo¬
has
we
over
given
a
to
But there
its
last
gasp,
that
pentup
demand,
deduced
millions upon mil¬
lions of theoretically obsolete ap¬
pliances, vehicles, arid other
chanical devices that
Harrises
second
are
time
before
with
makers
is
With
their lessons
unlimited.
Industry is being
given its chance right now to
keep
still go¬
going to think
committing
themselves to the heavy expendi¬
tures they so blithely discussed
a
will
case
are
me¬
ing strong.
Now that the madly
stimulating psychology of war has
run its course, the Joe Smiths and
Pete
in
mind,
of
they
this
to, produce are sold as
never been sold before.,
private
industry for Joe Smith and Pete
Harris. If Joe and Pete can't find
they have
there won't be any jobs in
distinguished
as
market
are
surveys.
crystal-gazing
There
to
look
will
they
industry,
Sam.
Uncle
.benevolent
our
That, in turn, will mean that in¬
dustry must purchase its customr
by assuming a tax burden that
•industry
cannot; bears
You all
mands for all of the things that,
have done without for so long.
But this urgent, pressing demand
know
are
we
is, in
opinion,
my
of what
the
fraction
a mere
theorists
dieted.
have
pre-:
The
real
market,
the
Joe
Smiths
who
waiting to
are
what happens.
But Pete and
are not standing in line to
see
buy
goods,
your
stand in line.
will
nor
they
Pete and Joe will
have to be sold, and that is
going
salesmanship.
While analyzing this phase of
our problem, let us consider for
to
require real
that
moment
a
much
bogey-boo, inflation.
world
buying
the
How in the
there be sustained in¬
can
flationary
with
advertised
in
country
a
tremendous
productive
capacity we have demonstrated?
Inflation happened in Germany
after
the
Germans
last
because
war
importing na¬
here to a
an
were
the
tion; and
it happened
certain extent because
our
indus¬
trial expansion had barely begun
when the Armistice was signed.
Demand for, gopds exceeded pro¬
ductive ^capacity.
How
different
conditions
are
here
today!
Our production ca¬
pacity is at an all-time high. Dur¬
ing the past five years, under the
impetus of war, we turned out a
Volume of heavy goods that sur¬
prised us all; In 1042, with mil¬
lions of men in the army, our out¬
put was 121 billion dollars, double
that of 1939; and by last year, it
had grownf to 156 billion dollars.
I
believe
that
ing/potential
increased far
manufactur¬
our
arid
ingenuity has
more
under the pres¬
than most people real¬
ize, that within a very few months
our factories will be pouring forth
such a flood of merchandise that
sure: of war
will disappear as rap¬
cigarettes came up from
shortages
idly
as
beneath
the
counter
month,
last
When that happens, there will be
heed to worry about inflation¬
no
prices.
ary
demand will go to work on manu¬
factured/goods
as
Here
food.
it already has
are
two
homely
examples of the latter given to me
by the boss of our household; In
August,
canning
peaches were
$4.50 per bushel in Chicago, as
compared to $3.50 a year earlier;
three
weeks
later they sold for
In August it was difficul*
$2.95.
to buy beef in Chicago at any
price;
last
month
porterhouse
retailed
steak
cents
for
less
40
than
while hamburger
had dropped to a pre-war quarter.
The same thing will be true in
industry; all that we at Zenith
need to. keep our prices in line is
the
a
hot
necks.
pound,
breath
of. Philco
I .daresay
on
that the
bur
did
that
to.
and
us,
people that Government
planning was meant to help, durr
mg tne oreaay '303. And you know
what
governmental
of
solution
unemployment did to Europe, and
therjee to the/whole world!
I repeat,
the Achilles heel of in¬
dustry today is our ability to cref
ate consumer demand, not today
but tomorrow,
next year and the
In all other: respects,
industry is good, or better than
good. Compared to even five years
years after.
our
technological skill is
phenomenal.
Our engineers can
ago,
magnificently;
our
fac¬
produce with incredible
efficiency.
Our mastery of the
physical problems of distribution
is superb.
Last year, when sell-r¬
ing was not a problem, we manu-Jfactored and shipped merchandise
to the value of 156 billion dollars^
design
tories
can
Next year, when everything
we
manufacture must be sold,
what will our volume be?
1939.
my opinion, salesmanship is
phase of business that has
been, most severely neglected, not /
only during the war years, just
In
.ending, but ever since our orgy
of
financial
insanity; brought
,
calamity in 1929*^Jtofact; I Jbelieve
jit is fair to say., that 'there' has'!
been little real building of< salesj*/
jmen in the- eountry since that'
tragic Black Friday.
During the*
we' did
'30s
develop
not
young
to keep
havie been in the
the young meiv
Armed
Forces.
how
Seriously,
have
been
trained during the past 15 years^
young
jnany
men
/ • It
is natural that during the/
the - emphasis pf industrial
management has been on produc¬
tion.
In war industries there was
but one customer; in others, that
•war
the civilian
problem was
the merchandise manu- ;
within the price limits
could still produce for
getting •
,
only
the
market,
One result is that
manufacturer, newly born ;
expanded by war, is",
innocently stepping into a com-y
petitive situation with no experi¬
ence in large-scale sales organiza¬
by OP A.
set
many .a
vastly
or
Another is that- even many
tion.
established prewar sales organiza-r
forgotten much of their
competitive experience. .
tions have
In
other
words, one
important^
job of recpnversioh yet to be done* y
must be between the ears.
Man^.,
become
sales-". r
minded, or be lost in the
shuffle.,}
must
agement
It is
if
and
will
die^
i
enough companies die, it,
*
case
a
mean
else;
our
On
of sell/goods 6t
death
free
national
a
to
something.^
enterprise system.
basis,
success
.
failure will be determined by re¬
sults inthe field of durable
sumer
'
Executives
It is
competitive
market.
why I say
of America's
future has landed squarely in your
laps as sales executives.
You are the vitalizing force, the
yeast in
the dough, the spark
plug in the engine, the detonator
a
fiercely
And that, gentlemen, is
that
the
problem
the
challenge
will
launch
a
If you meet
successfully,
golden
era
you
for all
and refrigerators, we
will
pace.,
the entire business activity of
nation to
new
highs.
the
t
Then it fol- i
lows, to paraphrasePolonius, as
the,'*
night the day: Machine tools, fac-r f
tory' buildings, ' homes*: sewers,, j
farm machinery, utility construe-.•
tion, and all of the con^plex oper-//
ations of an expanding economy -?
will be in heavy demand if the. j
output of heavy consumer specialties
"
of the atomic bomb.
con-V/*
If we sell enough %/
automobiles and radios and wash-! %
ers
considered opinion that
the period when people will buy
anything
is to
be
exceedingly
brief, and that within a relatively
short time we are going to be in
my
goods.
^
ot:^
manufacturers.
"
•
we were hard pressed
the older ones.
Duringf
the,'40s,: thus far* we have been •
in a sellers market «uid, pf course^
salesmen;
thing is true for Virtually all other
V:
•
the
same
Problem in Laps of Sales
•
in
nearly three times our output
factored
The so-called law of supply and
on
what
the
to
volume
market, is the one represented by
the millions of Pete Harrises and
Joe
ers
v
going to
another look at that still service¬
in
jobs
the¬
homes without
orists.
in thrift fresh
take
knows so
well how
way.
by
the
But, unless
products that industry
sound
may
held.
been
;
have
that
f conferences
radios, people in urgent need of
new automobiles, and pressing de¬
and
radio has been turned
Junior
for
demolition.
are
that
meant
•
have another chance.
allowed
ideas,
own
each has been
ganda campaign that promised the
world and all around it to the
many
my
Socialist-minded boys will say,
"See, you have failed again, just
be
are
most terrific propa¬
frantic rush to
been before.
needed,
a
each
less we get our wheels
rolling, and
provide the millions of permanent
never
veterans
his
has
vote,
a
during
Trial
on
and
millions of individual Joe Smiths,
Pete Harrises, and Tomaso Carr-
us
question in
than just a rising curve
are more
bile
There is
The five or
million people who
funda¬
mental problems.
accumulated
and
power.
seven
have had
de¬
bulging
of
have lost their jobs in war plants
say
,,
to
accounts
rights of the individual and
consumer expenditures in
order
bank
statistics
purchasing
and incidentally in the
colonies
administered by the United States
—shows a greater respect for the
a
state of false security
a
quoting
each
the
American system of private capi¬
talism is utterly inadequate to¬
day. 1 They say, some in all sin¬
cerity, that our economic pattern
is too complex to be Jiandled ex¬
cept by central authority.
They
say that only a Government-con¬
.
selves into
ideos.
Enterprise
1932, and 66 billion dollars in the
last prewar year, 1940.
;
In
factories humming.
our
:
well sound the death knell of cap¬
italism and free enterprise.
That, gentlemen, presents to us
the
greatest challenge and the
greatest responsibility that have
keep
our
will
rel
timistic estimates of
consumer
happen,
probably pale the
billions spent oil the New Dealmade work program to the ap¬
pearance of the petty pork bar¬
millions who are now out of work,
provided employment for the
realize
from the estimates that have been
that
healing the wounds of this
old world than all the inter¬
national
{.
,
but it is not
There is, of
course,
a
terrific market ahead
for each of us.
First, is the real
it will
Government spending proj¬
mean
labeled
unduly pessimistic,
picture.
Should
is
ever
if unemployment
falters,
that
A Terrific Market Ahead
shows signs of becoming chronic,
then the Government will step in¬
to the
poor
I
greater than this nation has
seeiv^well and good; if in-
ness
and
envelopes filled.
ever
dustry
ward
something
"post-war."
buy
standard of prosper¬
a
humanity that will go further to¬
washing machine be¬
car or
fore digging into their savings to
produces employment
builds
industry devoted all of its ener¬
gies to the production of new
sets, we could satisfy the most op¬
gentlemen, is;
After industry has reconverted
.
5 million sets to
mand for
the nation's pay
If industry
and
Thursday, October 18, 1945
'
is
^
heavy enough,
j :<;
a brief glance at what //
Let's take
happened
the last
in the years following
war.
It will illustrate my
point, for during that period ag¬
gressive selling paced
the entire
e
Volume
162
Number 4430
THE
industrial life of America to new
levels that have never since been
attained in peacetime.
.
In
1914,
the
last
sleepy, peaceful
the
value
tured
of
in
of
year
prewar
our
existence,
all
goods manufac¬
United States was
the
23
billion dollars.
My figures are
from
Department of Commerce
statistics.
In that year, manufac¬
turing
establishments
about
and
seven
maintained
one-half million
workers;
salaries
gregated
nearly five billion
lars. These
and
wages
ag¬
dol¬
the nation's basic
were
customers, not only for the goods
they produced, but for farm prod¬
ucts,
professional
services,
etc.,
etc.
,
.
Then
the
came
war.
By
1919,
the value of manufactured
goods
had more than
trebled, to reach a
total of nearly 60 billion dollars.
these
of
the horizon. Some
on
will collapse
competition like a snow¬
man on the first bright warm day
of spring.
Others will grow and
advance
needs,
fill
to
in
and
discussed
vision.
None
of
giant
will
that
stature
promised for it for
has
ap¬
and
drop
a
42
to
than
more
billion
12
in
billion
product
dollars.
ployment and wages fell off
been
-
.The
expansion in
pro¬
dustries.
a
followed by
was
brief, and
was
Is
nanza
dustry
was
turers of
greater
even
producing at
than the
rate
a
war
year of
output of 61 billion
dollars..5 By 1929, this had reached
68 billion, a
higher figure than
1919, with
an
the
deep
and
day
us
freeze
ducers
chest?
What
problem for the
a
canned
fruits,
mention several
entered
obsoleting existing products with
new ones will obviously continue
but more importantly we, as sales
executives, must create the maxi¬
mum demand for these new prod¬
.
war.
-
/Now, let
in
the
year
what happened
us see
field
specialties
we
-
of
heavy
consumer
during
those golden
the decade of the
!20s.;
This was
automobile, of expansion
industry, of specialty
selling that has not been equaled
in
history.
our
■
.
Automobile production increased
in
not
only
value from 500 million dollars
in .1914, to more than two billion
in 1919;
It dropped to a billion
and one-half in 192JL, bounced to
three billion in 1923, and with one
relapse while Ford retooled in
As
recogni¬
as
again
management
sales
minded,
we
change in advertising.
thing, much of the
.
.
When
comes
a
Semi-Annual
war
Valuation and
.
a
or Special
Appraisal
.
.
Our
"NORMAL ADJUSTMENTS"
Treasury has again requested that security changes made
before and during the Victory Loan be confined to "normal
portfolio
adjustments".
With the 2% taxable bonds at present levels the
question is raised whether institutional holders of these securities
.
justify the sales of these bonds, with the proceeds to be
used to purchase the new drive
issues, as a "normal portfolio adjust¬
ment".
It is believed in some quarters, that many valid reasons
can be put forth
by institutions owning the 2% taxable issues, why
these bonds should be sold, which
might be acceptable to the Federal
authorities.
It was pointed out that the market could use a some¬
...
see
For
one
disposal.
could not
be¬
will
experience and facil¬
ities at your
Tlie
.
and
30
Monthly
longest bank eligible bond now seems to be the
obligation for both income and price enhancement.
.
June
each
issued
December 31.
result the
.
Appraisal,
Complete dollar appraisal
.
While the 2% bonds will probably move
up from present
prices, it is indicated that these securities do not have the same
price appreciation possibilities as do the %y2s due 9-15-1967-72.
ucts;
the
in
electrical
.
1952-54, along with the 2y4s due 1952-55, and the 21/2s due 1956-58,
all went to new high levels. ..♦:
most favored
upon
request.
The bank eligible taxable securities were among the leaders in
the market, with the 2*4% due 9-15-1967-72
again in demand, and
showing the largest advance, although not yet going through to new
highs, as did some of the other issues in this group.
The iy2s due
1950, the 2% due 1951-53, 1951-55, the 2s due June and December
new
industries
the
.
furnished
Gladly
If surtaxes should
...
on
.
vege¬
of these
Weekly List
MARKET LEADERS
:
pro¬
tion that the American practice of
to
along with excess profits taxes.
lowered, it would have a favorable effect
.
refrigerating equipment,
of
attain
able
was
• !'v
^'V-
these bonds, which
are still being advised for
purchase by institutions that have need for
tax protection.
The most attractive issues are the
longest ma¬
turities in. this group,
bo¬
a
on
i,
circles that the recent change in surtaxes will
some
be eliminated
be
our
ministration
1941,.-the
,
bids
practically all issues.
buying of the outstanding obligations
.
firm
Immediate
.
approaching
will live from
Offerings Wanted
,
partially exempt obligations have been firm to better fol¬
lowing approval by the House of the new tax legislation.
It is
frozen
industry under the Roosevelt Ad¬
until
.
still believed in
tables, and meats.
I
.
The
that would be for manufac¬
what
.
a
PARTIAL EXEMPTS FIRM
goods in¬
are
coming drive, curtailed substantially.:
.
when all of
steady rise in
industrial activity.
In 1925, in¬
a
there
CERTIFICATES
.
has helped the market for the
restricted bonds.
enormous
consumer
Then
foods.
depression
.
we
the threshold of
TRUST
,
result selling: that would
ordinarily take place to make
room for the drive issues
has been eliminated by the new rules.
This along: with some
standpoint.
Its major
hurdle is economic, and that, gen¬
tlemen in the final analysis, is a
on
.
.
to be affected much
by these new regulations, some of
and smaller ones have had their
buying power, in
seem
As
technical
Em¬
portionately.
the
so many years.
Unquestionably, it is ready from
a
the intermediate
assume
are
were
value
industry
.
dc not
knows when
us
television
pricing,
wages
in
10 million; salaries and
.
engineering baby, tele¬
how
and
the
so
dollars.
Then came the "buyers'
strike" of 1921, brought on
by in¬
dustry's senseless policy "of over¬
proached
prefer¬
obligations, although an improved tone is
in evidence in the note and
certificate market.
The ineligible
bonds showed further
improvement, which is attributed to the re¬
strictions on purchases by insurance
companies and savings banks
in the coming Victory Loan.
While most of the large institutions
promising consumer prod¬
Among these is that much
ucts.
EQUIPMENT
Purchasers of Government Securities continued to show
for the longer term
ence
doing, will in¬
crease employment.
In my own
industry, we have a number of
very
Governments"
on
By JOHN T. CHIPPENDALE, JR.
consumer
new
& FINANCIAL CHRONICLE
"Onr Reporter
industries
under
problem that is up to us.
When
figure out an answer to the
economic problem television will
provide a great market for the
radionics industry.
In looking to other industries, I
am
of course impressed by the
tremendous
potentialities
that
chemistry has developed. Plastics
Employment
:
;
looming
are
COMMERCIAL
sponsored
STROUD &
COMPANY!
INCORPORATED
...
breast-pounding is going to van¬
ish, in favor of copy and illustra¬
tions that will sell merchandise.
what increased supply of these bonds without
effect on prevailing prices.
,,
' -
having
any
PHILADELPHIA
appreciable
Pennypacker 7330
•
...
•'
■a
You probably have seen ads about
the bolt that
it
made
won
used
was
on
the
a
gadget that tested
a
a
Also
,
fine
■
because
war
machine
its
'
■
it becomes
as
sale
more evident that the Treasury will conmarketable issues to the commercial banks, to
obligations, the demand for medium term
somewhat higher rate of return will be very great...
NEW YORK CITY
of
that
low coupon short-term
part
issues with
a
REctor 2-6528-29
1
Two
1927,, climbed
steadily to three that was used on a bomber. Most
In order to prevent the market
price for such obligations from
three-quarter billions in 1929. of us have been guilty of pointing
During that year the automobile with pride to our own achieve¬ going too high, an increase in the floating supply would be a good
industry accounted for half a mil¬ ments, instead of devoting hohest' thing for the market since it would tend to temper the price rise.
private wires—
New York
Philadelphia,
and
Teletype—PHLA 206 & 297
...
lion jobs with salaries
and
wages
Exceeding 800 million dollars.
Electrical
.
machinery
plies, which included
the
radios
and
and
sup¬
at that time
appliances
now
classified
'§ separately, " exceeded
industry in rate of
growth.-. Value- of product in¬
.•
the automobile
creased
to two
iion: in
from 330 million
in
1914
billion, three hundred mil1929, with a like growth
in workers and payrolls:
Washing
machine
production H grew from
million dollars in 1914, to
eight
82
-
million
in
1929;^phonographs
from 27 to 9T million. I * And"
so
it
.:fWent.,jX" V
>:
It
is
true
that many of these
financed-' * by <-paper
profits,that, we* over-extended
sales
*
-
were v
v
•v
cial
practices' which" later
tobk
-
ex-
tremely important;
these£ deadly
factors did not enter the picture
until; about 18 months before' the
crash, r and from:: 1923
through
1927, our factory • output* exceeded
every year in the following dec-
ade; but 1937, the
■
Collapsed
today,
except for our terrific debt, are
more favorable than they were in
could ^ have
,
jn_ better.shape, we
larger potential demand.
are
learned
-
our
much
;
to -over price in
to skim* off cream
,
skimming^ is good.
financiers
from, - what
be* able
the 21/£s.
.
•
bonds
and
the
more
to the
as
.
member of the
New York Stock Exchange, Ed¬
ward F. O'Neil, general partners,,
and Benjamin J. Friedman, lim¬
Robert
I,; personallyr have
..
bonds to the
drive in which the commercial
At.the time of the offering of these two restricted
deposit banks the 214% obligation had slightly more
partner. Mr. Spitzer has been
doing business as an individual
Mr. O'Neil was with
floor broker;
F. Rothschild
L.
mination and
so
.
to
will
be taken
on
.
In the coming drive the 214%
directly: by these institutions cannot be
market for
open
.
seven
years.
.
.
.
Undoubtedly the
before the 214% due 12-15-
meet
can
even
strong¬
i:
■\a\'
was
•v
i •;
i,
/
\
•.
.
.
.
y
.
With slightly less than
commercial
;
"
*
about
bank
due 3-15-1965-79.
-
to
go
*..
•
before it is eligible for
purchase and with possible appreciation from
.
.
the 214%
.
v.
The loss in income through the purchase of
bond instead of the 2Vz%
made up in price appreciation.
..
i
t
obligation has been more than
formed with offices at 115 Broad¬
as of No¬
Partners. will ■ y be
New York City,
way,
vember
1st. *
Alexander B. Gale, Allen
R. Bish-
Henry Goldman, Jr., all mem¬
bers of the New York Stock Ex¬
op,
change, ^general
White
Belle
Clara
partners,
and
Gale, limited
partner.
.
i
3
i
I
v
,
J. H. Brooks Dies
H.
Brooks,
founder and
senior
partner in the New York
Stock
Exchange
Brooks
&
Co.
firm
with
Broad Street, New
in
of
J.
H.
offices at 25
York City, and
Scranton, Pa., died after a long
illness.
His
home
was
in
Scran¬
ton, where he was borp 73 years
i
ago.
Mr. Brooks was graduated
a
young man
from
terested
As
and later he was in¬
in the coal
business and
in 1905 formed the brokerage
bearing his name.
,
J
Co. -will; be
&
Princeton University in 1895.
.
The latter bond has moved ahead from its offering price of 100
<by.about; 1% points.
*
year
a
present levels of a point, the 214 % due 1956-59 has been a much
better buy for the commercial banks than has been the 214%
y
Bishop
Gale,
John
The latter obligation has advanced
]
Formed—New NYSE Firm }
;
the 214% due 12-15-1959-62, approaches Dec. 15,
as
i314 points of this rise coming since the end of last year.
V'V
industry remains
than
'
v
4% points since it was offered in February of 1944, with more than
suc¬
With American industry's abil¬
er
Nevertheless,
;
in the 214s of 1956-59.
these
Achilles, by eliminat¬
ing the ? last point of vulnerabil¬
" •
• •
;
industries that ity. • -
Intelligent
and aggressive promotion must be
.
PERFOMANCE
of deter¬ .1952, and with money market conditions unchanged, the market action
of this obligation should not be dissimilar to what has taken place
cess. -■
...
'
industry
hap¬
cash
\ PAST
ingenuity that con¬
greatly to recently
victories
won
& Co.
-Gale, Bishop & Co. to Be
-
than two years and seven months to run before it would be available
confi¬ / '
every
that"; American
dence
us.
Spitzer,
.
few oftheprob- ! longer period of time that must elapse
indicating; the tosk- before
will be
Partners of the new firm
ited
.Tn the Fourth- War Loan, the last
ibought in the
a
Savings
.
.
even though ibond
that can
short-lived, and it must not be re-
a rea-
long range sales planning.
Management must quickly,be¬
new
21/4s
painful;
peated. 7;*
These are but
deposits will be allowed to
the
to whetherthese institutions will be attracted
buyers' strike.: The collapse^ that
;for purchase by these institutions.;
peacetime issues with equal
these favorable factors with
given to the
as
.or.
of
amounts
issues, during the Victory Loan, there is considerable dis-
cussion
,214%,issue;
a most dangerous
the fantastic price
structure1 of 1921 that led to the
have
sound
minded.
banks with savings
com
-
was
was
Spitzer, O'Neil & Co.
November 1
To Open
Spitzer, O'Neil & Co. will open
at
120
Broadway, New
City, as of November 1st.
/; The 2J4% due 12-15-1959-62 will be eligible for commercial
y bank purchases after the drive, on Dec. 15, 1952, whereas the
2*4% due 12-15-1967-72, cannot: be bought by these institutions
; again, until Dec.
15, 1962.
opinion,
policy.'; It
ing higher standard of living; it
is
ourresponsibility
as-' sales
executives to see to it that Ameri¬
* sales
substantial
2V2 % obliga¬
at¬ !banks were allowed to purchase both a 2Yi% and a 2Yz%- restricted
while
obligation the largest commitment by these institutions was in the
ity to produce, and the desire of
this country for an ever increas-r
come
a
.
This is,
;
or
an
sonable hope that we can avoid
the pitfalls that tripped us then.
on
at
2^4%
York
directlyr limited
marketable
op¬
Business .should
in
Since
.
purchase
\
tributed
a
bond
a
offices
top many
<-
tempted
followed
position to increase their
a
2%
a
tion at 100. V..
Another problem is pricing.
In
this
day
of overwhelming de¬
mand, some organizations may be ;'.
finances
pened in 1929; and there is
,
ning,
retail failures.
with the same, qualities
Moreover;
fair
a
1919. ^Industry has better physical
equipment, personal and corporate
have:
selling
have mentioned these few merely
quickly,
Gentlemen, ^conditions,
;
be
of the ,"we lems and -possibilities; facing us. •1959-62 can be bought by the commercial banks does not make this
boom that Time does not permit elaboration. ibond as attractive to
them, as was the 214% due 1956-59. .,.
I
year
it that way"
so
would
WHAT TO BUY?
portunity .for- success. : '-Without
market, analysis and sound plan¬
my
they
premiurrKwith the proceeds to be invested in
to limit its number of dealers suf¬
in
time institutions would be in
•
ficiently to insure each
the
unsound finan-
many
same
income, since
thing to consider is the
changing retail market situation.
There is, in my opinion, danger
of creating far too many retail
outlets. ' Without any thought of
restricting free enterprise, it cer¬
tainly is the duty of management
tempt
were
AtVthe
Another
there
planned
>
products.
ourselves/in time payments, that
Iheirftoll.v/vButti.and7. this is.
.;
thought to ways and means ojf in¬
creasing public demands for pur
;
firm
'^
7:
THE COMMERCIAL & FINANCIAL
1844
•
■
Thursday, October 18, 1945
CHRONICLE
rrr
Calharine Pres. of N.
Lipe - Rollway Corporation
Robert M.
of
Convertible $1 Preferred Stock
„
'<■'
t
:
:
t.■
V
,
>!<'V
'
_
.
^
i
;
Circular
,
on
Dollar
Banks
request
.
'
>
,
Bank, was
Savings
\
V; Asso-
ciation
'v» *•/''lly
•• V
''''
1,4
'
the
(Continued from first page)
The Sterling Area
Catharine, President
State
,
York
istence
,
New "
the
at
■.<
Association's
52nd
Herrick,Waddell & Co., Inc.
Meeting
He
ceeds
S.
The Securities Salesman's Coiner
100;,:;^)r^llfjggv
Looks Single To You May Not Be So
By JOHN DUTTON
Something That
'•] lit
y*
To Your Customer.
.
^Sometimes
we
are
customer's knowl¬
to over-estimate a
prone
at
suc¬
Myron
Short, Pres- f
ident
the <;
of
Buffalo" Sav¬
ings
w
Bank,
h
o
has
.
served in that,
capacity
for
the past three
-
Robt.
Catha¬
Mr.
investor to whom
a
we
v
have referred in the foregoing paragraph
had
cash in. The cus¬
Sjaid, "That's fine, I didn't think I had such a big profit in those
big one and his salesman thought'it was time to
tomer
made too much money
'
,
*
[ \
"But I don't want to take it, I've
bonds.**
already this year."
'
-
<
The salesman was ready for this sort of an objection. He pulled
card and noted the date that the customer had bought the
bonds and found that he had held them over six months thereby
!
out; his
putting him in a position to avail of the benefits of the capital gains
tax.
He thus showed the customer that he would only have to pay
about half as big a tax on his profits as he thought would be the case.
He then showed that the capital gains tax only amounted to about
41/2 points on the bonds that he was advising the client to sell.
He
pointed out that they were reaching a point where a reaction might
logically be expected and at the best, only a slight improvement in
market price could be achieved. I After this logical explanation the
customer was satisfied that it was good investment logic to take the
profit and pay the tax.
"
h
,•
.1 * - L
.
■
Simple as A.B.C. to us^—not so simple to a lot of people. The
thing holds true all the way down the line.
Imagine, if you
will, that the majority of people would all off a sudden find out,
same
KNOW AS MUCH ABOUT THE
AND
YOU DO.
What
fine
SECURITIES BUSINESS AS
that would be.
That's why it's important
securities, doctors to sell
medicine, lawyers to sell legal assistance, engineers to sell scientific
skills, and politicians to sell us government. : This is an age of
specialists—let's not forget it. Knowing our business is important—
that
we
a
mess
have securities
salesmen
sell
to
it's the only way we can best serve the public, the national interest
ourselves.
But let's not talk down to anybody—let's make it
op opinion which wishes
ser\re * the- sterling 4 area
years.'..
Catharine
M.
•
.
bers of "the. area. In the. Brettou
Woods debates, it was made clear
that there is a very strong body
;
investment procedure. This is usually
rine is a is qthings we are thinking and doing day
Chairman, of Group IV, Savings
after day (as professionals in the security business) become so natural
Banks Association, trustee of the
to us that often we forget that the rest of the world isn't interested
Savings J Bank
Life * Insurance
in the same things that attract our attention.
V .
t'iCtpFund, member of the Council of
} ; Take taxes fort instances;: "Who would think that a sudcessfht
Administration
and yf- Executive
business man, the head of a large corporation, and the owner of a
Committee-of the National Asso¬
substantial portfolio of securities, would not be up-to-the-minute on
ciationwb&MitfdaL
the simple matter of the capital gains tax and how it works.
There and a director of;- the •• Bank of
are1 many who are not familiar with the ins and outs of this tax.
Manhattan Company. He became
That's why its important to know these things—as fundamental and
Comptroller and a trustee of the
as
simple as they appear to you, the general public isn't so well
Dollar Savings Bank in 1936 and
informed.
•'
'
« •[ p
3 js' . - haa been President since 1941.
{: - Here's a case in point. A profit sometimes should be taken. The
He is an active participant in
edge of the finer points of.
caused by the fact that the
simple—plain, everyday, talk that anybody can understand.
And
forget that you know a lot more about the investment business
than the majority of people with whom you come in contact—that's
don't assume too much when
you are trying to make a point—remember the next fellow
may
is
be
a
good engineer, and that's his business.
yours.
present; fOrm and with its present
powers. There is an equally strong
jbodj' of opinion which feels that
the sterling area is a menace to
the trade of other countries and
;
j that the: Brettort Woods Stabiliza^
tion Fund, has/no chanee; of sue-
ceedirig in a world in competition
[with the present sterling control.
The present sterling area control
is an instrument of economic war-
dissolved the old firm of Newkirk
New York
&
Gily
The
•
Formation of Newkirk & Com¬
Inc., with offices at 60 Wall
Street, New York
City, is an¬
nounced by Louis H. Newkirk, Jr.,
President. Mr. Newkirk, recently
discharged from the Army, served
as Captain in the Engineers Am¬
the office of
later
and
Impasse Panel for
Renegotiation.^
Upon- his * entry
into military service, Mr. Newkirk
act
underwriters and
ac¬
"
As pointed out by the London Bankers," it opens the door
to
unwilling- markets,It has
fare;
;
Weekly Finn Changes
required reserves as backing for
their domestic
currency.
These
The New York Stock Exchange
has announced the following firm
are kept as sterling bal¬
usually invested in shortThis sterling
Charles M. Clark, Jr., member
of the Exchange, a limited partner arangement has a flexibility which
the
maintaining of actual gold
in Charles Clark &
changes:
"
*
reserves
-
Co., will be¬
come a
general partner effective
October
3,1st.
Clayton Snyder,
pri¬
agents of
eral p
1945.
artner, effective Nov. 1,
.rjOther
directors
are:
John
F.
Russell. Jr.. Paul T. Iaccaci, B. L.
Maas, Max Nydeggar, and L. Hasbrouck Newkirk.
-V ■
Formation of Newkirk & Com¬
pany
was
previously reported
in
the "Financial Chronicle" of Aug.
Henry A. Rudkin, general part¬
ner
in J. R. Williston & Co., New
York,
became
limited
a
effective October 1st,
partner
.
(
Privilege of C. Frank Fackrell
to act
the
as
alternate
the floor of
on
for1
Exchange
H.
Joseph
Brown, Reynolds & Co., was with¬
drawn October 9th (this was ap¬
proved but did not become effec¬
tive).
alternative for stability of the ex¬
dorf to act
sius
as
American dollar in 1933 had been
New
Jr.
William
ton
&
Vilas
to
act
alternate
as
of
E. Hutton
W. E.
Co., New York,
was
October
'
drawn
on
Privilege
of
&
This
13th.
for
Hut-
The
with¬
the
U
Fruit
Growers
Arden Farms Co.,
Fullerton
Oil
Pfd. & Com.
•*
Wagettseller 6 Durst, Inc. f
Memhers Los Angeles
626
SO. SPRING ST.
.
Stocls Exchange
14
Teletype: LA 68
••
■
.
/
v,
.rxi'i
i'lLv" -j
can
Stock
be
chase
Cox to
■
*|
-»v'
Walton W.
partnership in the firm
November 1st. /
•
control.
~
all California Securitiai
i.v
.
2
-
-
?:■ ;j
a
within
lifesaver
v
of the war
the necessary trade dur¬
Within this area funds
used freely for the pur¬
of
goods.
The
exchange
control was then developed around
the whole sterling area. The par¬
on
ticipants
-
^
outbreak
ing the war, a system of sterling
exchange control was necessary.
The sterling
area
provided the
nucleus and mechanism for this
Winthrop to Admit
Exchange will admit
on
carry on
October 5th.
members of the New York
.
sterling
was
1939, and the depreciation of
sterling,
many
countries
were
discouraged
with , the
sterling
area.
At this point, it seems that
in order to restore confidence and
Robert Winthrop & Co., 20 Ex¬
change. Place,- New York City,
J
l
.
Robert
r
.
TRINITY 3761
LOS ANGELES
Quotations and Information
'
on
the
After
Armstrong,, partner
in Davis & Davis, Providence, R.
I;, died
of
area
time.
in
B.
Ernest
Co., Com,
stability
entire
in¬
u
bership of Roy R. Coffin to Myron
Simons will be considered by the
Exchange on Oct. 25.V- ; ■
Inc., Com.
coun¬
stable
a
maintaining the stability of
the exchanges selling within the
area
and enabling countries that
owed sterling balances to settle
them in money at the same price
as
the debts were contracted.
Transfer of the Exchange mem¬
American
V/'
guaran-'
were
by the Pool auch hard cur¬
as
they required to pay
essential imports from other
rencies
for
countries;-
These
original
agree¬
ment? have been changed to
special conditions.
meet
example,
For
-
keep
S.
dollar
war,
how¬
part of her; U.
a
:
r
*
the; agreement: was
changed 'in;
1944 for India, allowing -India- to-
.:
i;
income,;.
In the
course
of the
the- growth of" the reserved
London
funds
held
by
the
ever,
of
decline
member countries and the
\i
*
>
of gold'
and hard currency assets
in: the United Kingdom have exceeded earlier expectations. These
r
developments: have'raade it Jieces- x
sarv^so it seems to London Bankers to continue the Sterling Ex-'--/;
change'Gontrol.c "?
rff*Just how long this control will
/ ;
need to be maintained depends on
'.
how long these
excessive sterling.
balances last;f No doubt, this condition
was
mind/of
the
in
Lord
-
Keynes ^and
in
the
Exchange Pool
sterling area be dissolved and the :
world embrace the exchange ar- V;
time,
HI*.-* *»■-.*
will
for in the
Or, by that
provided
the
sterling
ar¬
area
rangements have become so solid¬
ified that the monetary stability
provided for in the Bretton Woods J
Agreements will not be needed?
It is- true that sterling: exchanges,
for. sterling
area
much
within
sterling
the
exacting
more
than
provided for in the Bretton Woods
Agreements^ Within the ■; sterling
;j'.-
sterling exchanges for sterRng exchange.
In the Bretton
Woods Agreements, monies may
area;
devaluated
be
as
much
as
10%
as
V
the
Fund. Of course, any such wide
fluctuations
in exchange
would
j
without
20%
notice
with
trade
kill
ever
the
and
and
much
as
approval; of
certainly
no
one
expected this fund mechan¬
privileges to' come
and live. ' ;
ism with these
into existence
-
Bretton Woods theoretically is *
dedicated to a freely trading non¬
j
discriminatory world.
But unless f
England can solve her present
problem of excess sterling, debts,
the
Bretton
Woods
exchange
world is outside of the sterling
world and will have to compete
time,
being compelled to loan funds
freely to members of the sterling
with
it
while, at the same
'•f
:
area.
;
Whose Problem?
*;
What is the solution to the ster¬
ling
problem? - Is it England's
problem? Is it the problem of the
sterling area? Is it the problem
of
the
United
States
or
other
countries outside of the sterling
area or is it a world problem?
;
;
It is claimed by commercial in¬
in England that we need
terests
freer trade
with the sterling area
just as much as the sterling area:
needs freer trade with us.
It is
claimed
that
-
her
and
England
monetary management are as im-;
portant
to
us
as
ourraw
ma¬
England.
terials and trade are to
dollar
and
other free currencies on one
side
A
war
between
the
and the sterling area on
side
would
the other
undoubtedly
lead
to.
,\'-vffv-".;
v.'
t
the i
practices; can
discriminatory
for
'v
I.
those
ternational exchange at that
& Co. will be withdrawn October
;
promise of
of the
no
future
for
needed
which
tries
Jr. to act as alternate for Vincent
22nd.
dollar
American
Snedecor
George
held
the
step
in
stability
T;V Mad-
of William
countries holding their inter¬
national balances in New York.
with¬
4 ;
was
6th.
October
on
Privilege
dox,
York,
hard blow to the confidence cf
the
alternate for Aloy-
Thumser' of
R,
The devaluation of the
changes.
„
.
Imperial
of
system
preference was one strong factor
in binding the Empire countries
to the currency alliance. Another
strong factor was the two-way
financial relationship of most of
the
member
countries : to
the
United Kingdom. Another force¬
ful imperative was the uncertainty,
chaos, and undependability of any
H. La Frence of J. Robinson-Duff
16th.
does not have. The ster¬
Ottawa
The
;;
drawn
,
countries
teed
rangements
ling area and the sterling standard
acquired a sort of a formal basis
with the monetary resolution of
Pincus will retire from the firm
J the Ottawa Conference of 1932.
as of the same date;
This .resolution defines the gen¬
Dorsey A. 'Buckley,
limited eral aims of the monetary policy
partner
in
Buckley
Brothers, within the sterling area as~ being
Philadelphia, will become a gen¬ the stability of sterling prices.
Hickey,
general securities business.
member
exchange- reserves
Bretton Woods Fund?
Exchange member, and David A.
act
a
change
in the
sterling assets.» In exfor
these s obligations;
j
lorm- of
term London assets.
reserves
Privilege of H. Gerard Moers-
as
their
ances
a
-
foreign exchange income to Brit¬
ain
and .maintain
the whole of
.
close corporations and will trans¬
in
an
'•"
will
company
mary
pany,
Command,
Company which had been
tive for six years.
Agreement formally bound them¬
selves to. maintain the voluntary
practices jof the past, to sell their
others when it was
incorporated in the Bretton Woods >
Agreement that a period of some y ;
five years might necessarily have
3
spiked fences to keep unwanted to
elapse before the ban on "dis-i ;
many civic affairs, having served
goods from unwanted sellers out
criminatory c u r r e n c y; a^range^o;;?
as Chairman of Bronx County of
of the Empire market.
ments and multiple currency de¬
the Greater New York Fund this
The sterling area and sterling vices" becomes operative. In the :>
year and Treasurer for the countv
&re historical traditions in inter-; meantime, England has negotiated
for the American Red Cross.
He
national trade. Countries adhering
sterling agreements with ;t many,
is also a member of the Presby¬
to
the
Sterling standard have European and other countries, interian Hospital Association.
found
it desirable to keep the eluding Egypt, Belgium, Holland;
bulk of their exchange reserve France,
Sweden, Turkey : and
needs
for
current trade in London others.
*
New York Stock Exchange
iff
and also to keep in London the
After
several • years * of these
.
Newkirk & Co, Formed 1
phibian
Selling securities
to. preits
;
and
don t
against de¬
quired a statutory definition and
understanding. It has become one
of the essential means of defense
; for sterling.
It is used openly for
; canalizing
trade. It provides the
means of discrimination in trade
and in directing the flow of cap¬
ital to and from the various mem-
.
more.
defense
a
ling area and added greatly to its
adhcrance. The area has now ac¬
Annual
the Hotel Bilt-
YORK 5, N. Y.
LIBERTY STREET, NEW
55
as
preciated currencies and a dis¬
integration of the international
gold1! standard; before the •> war;
During the war, the sterling ex¬
change
control
has
developed
somewhat within the former ster¬
the
of
of
into ex¬
The sterling area came
;
•
unanimously elected President of
the
Savings
;'W v;;:^ Class "A" Stock
^
Y.j TRe Ster ling Problem
State Savs. Banks Ass'n
Tin
rr-jr... * r*
f
~
^
■
Voluihe
,
depression and depreciation of the
monies all over, the world.
'f
5
■.?
Some
,
•
'
>s
.Number 4430
162
The
the
on
world's -markets
f
'
been
have
made
in
-
sterling
so
4 long that the traditioh^in addition
to the control of the sterling area,
COMMERCIAL & FINANCIAL CHRONICLE
Examples Showing the Effect
prices of commodities
traded
*
TOg
IMS
ou Prices in the. United States of-
Variations in the Exchange
Rate of the Pound
•
will continue to live.
-
ling depreciates in terms of dol-
;
terms
markets also decline in
dollars.
The
terms
decline in
the
'-caused
-
-
-
•*
Shaded Areas Represent the Extent oft
'
•
VARIATION IN PRICES in per cent of
left the gold standard, September
goods bought and sold in
of sterling on the world's
lars,
.
VARIATION IN THE EXCHANGE VALUE OF THE POUND In terms of dollar, which
Whenster-
;
1.
the prices existing immediately .before England
21, 1931; for the years 1931 to 1934 inclusive.
:
4
of
the
price
-
4
4
r
j
4
4
4-4 Solving
;vA
•
Source of Schedules of
States.
Briti sh 4
r
loan
to
suggested 4 in
4 want
this
bold Standard,
4'
,
yi:
prices In the United States
The price trends of particular commodities shown by the charts are
as examples of what
happened generally in the United States during
period.
•
.
depreciated Sterling Bloc currencies
*
,
U. S. industries whoSe
on
products aire
on the free list is here shown in the case of a chemical
pulp.
<•' '
Vf
Production of chemical
pulp in the U. S. A. for 1938 was 4,650,000 tons;
imports were 1,552,000 tons. Most imports come fromi Norway, Sweden and
Finland whose currencies followed the pound. Since there is no
I
keen
with
to
import duty, >
competition exists with manufacturers in these countries, who operate',
cheap labor and also have the advantage of low ocean freight rates due
the low wages
paid on the foreign ships which carry their products to,.
American ports on the Atlantic and Great Lakes.
area
;
v(.
/
,
The chart of prices records sales of
foreign pulp in U.S.A. and
1932 the Scandinavian manufacturer was
receiving a higher
England. In price in his own<■
money when selling in New York at $40 per ton than when selling in 1931 at
$50 per ton. The price of domestic pulp followed the
price of imported pulp
until the latter was reduced to $35, which was not met
by United States pro¬
ducers. because they were already selling far below cost at a price of $40.
that of the sterling
as
England left the
the
CHEMICAL WOOD PULP
not
gift
•: If the United States made a
When
The effect of
44-441::;4.:,44;':44:44'--444V4;4;
area9.
between the fluctuations fas die
given
bring about a stabilization of
the exchanges of all countries with
a
smooth working exchange as
practical
computed for the charts:
U, S.
percentages were
,
<
and
4
Prices, from which,
declined along with the dollar; value of the. pound. When the United States
left the Gold Standard, and neutralized the devaluation of the
pound, priees
advanced along with the dollar value of the pound.
>
problem of ster4 ling debts which would free the
>:
■
4
What solution could
4 exchanges of - the sterling
STATES
PRICES IN ENGLAND.-----
These charts show the relationship
be to this
there
UNITED
.
dollar value of the pound and the dollar prices of commodities in
United States..
••'.-»
t-
the United
to4 the press,
According
representatives % do
loan.
a
THE
Pulp Producers Association.
has
England
IN
Standard Statistics; Board of Trade Journal, London; Federal Reserve System;
the- Sterling.. Problem
large
4 been
OF PRICES
priees prevailing in-the world market, resulting from
depreciation of the pound.
PRICES IN U.S. A.
rubber, lead, zinc, paper, and
many other products.^ In addition,
the decline in. these products soon
affects; all other products even
those that are not exportable. '4
:4 The solidity and stability of the
sterling exchange in the. sterling
area, and its control of a large
part of the commercial world is
England's ace in the hole in bargaining for American help to bail
her out of her present sterling
debts.":-
:
DEPRESSION
-below
4 price of wheat, cotton, wool, tin,
•
---v
Standard, September 21,1931.
2.
of sterling brings a decline in the
•
1
DEPRECIATION OF THE POUND, In terms of dollars,
below the par rate of $4.86, after England left the Gold
Prices in the United States recovered in 1933
'
of several billion dollars to. Eng-
as
the dollar value of the pound
recovered.
land, .would the other countries
holding large sterling balances be
willing to; cancel, a portion of
4 their claims? Suppose the United
States purchased from other coun-
r-.
•
PAPER
Paper manufacturers in the United States are protected by an import duty on
Nevertheless prices declined and recovered with pulp prices, imports
increased, arid profits in the operation of this important industry largely
disap¬
peared or became losses.
.!
4
paper.
4 tries several billion dollars' worth
,
of
4
sterling exchange, that would
Many industries having tariff protection were affected in a similar way by the
competition of foreign imports which were offered for sale in our markets at
lower and lower prices due to the depreciated
foreign currencies. Depreciating,
the dollar value of the
pound is the same as lowering our tariffs.
give these countries dollars which
they want, then they would buy
goods in the United States and
•
other
where dollar
countries
ex¬
change
is
preferable. * England
.would then lose a part of her
countries and
market to these
would
she
turn
the
owe
PRICE INDEX
far in
United
of the volume of her
excess
purchases from us.
Has England
..something else to sell us besides
f
ALL COMMODITIES
commodity prices in England during the period ofpound'
devaluation from 1931 to 1933 averaged several
points above the level pre¬
vailing at the time devaluation started in September 1931. But during the same
period, as a result of the depreciated pound, the price index level of all com¬
modities in the United States declined fifteen points below the level
prevailing in September 1931. Recovery of
prices in the United States started when we left
the Gold Standard in March 1933. Our prices advanced in
step with recovery in
the dollar value of the pound and returned to the level of
September 1931 in
November 1933 at the same time that the dollar value of the
pound returned to
par.
,4 -,4
4;
4
'
States large sterling balances. She
could only pay by selling us goods
.
-
The index level of all
in
goods in exchange for these ster-
-
ling- balances?
v
islands,
some
need?
.•we-,
-with
copper
of
these
of
raw
islands
.
materials
to
or
her
creditors, and thus
other sterling
reduce;-' if not erase, the present
1 sterling
balances.Could we buy
rights of way or ports and useful
that
services
>
trade?
we
in
tourists
-to.
need 4n
we
Could
ists
>
will spend
area
these sterling
;w
Crop of the United States picked in the autumn of 1931 wad very
large—over 17,000,00 bales. Prices declined from,around 10 cents per pound
early in the year to the very low price of 7 cents
by September 1st, largely due
to this over-production.
.-'4Vr4-':4'..'-.
;r-
year?
Could
and 1933 were much less—around 13,000,000 bales, and
in pounds advanced from the low price of 1931. But dollar
prices in the United States went to lower levels, reaching a low pf 5% cents per
pound in 1932. 44 4\-'
;-V".
;
\
'
•
'•
balances be invested
who..
the
of
sold to
sterling
-
area
and
r
Rapid price recovery came" in 1933 along with the recovery in the dollar value
of the pound44 4//' 4 4
; • 44.44-'
1
4
- - ^4
investors and speculators
always willing
are
to, ven¬
444444 4:4-';
ture?
Effect of Variation in the
54 A
solution* : to ' the ^ 'sterling
problem can be found. Unless a
time,: cur-
of the whole world
in stagnate markets,
prices during 1930 and 1931 had reduced the prices of
products to low levels when England left the Gold Standard in September,'
1931. Thereafter, prices in theworld market quoted in pounds remained quite
stable at these levels, while prices in the United States
quoted in dollars con¬
tinued to decline as the exchange value of the pound declined.
•
The deflation pf world
ciated currencies and loss pf trade.
4 There is no simple -solution to
.
(the sterling problem.
a
serious
Jit is also
world
4
y..
as
indicated,
by
Starr.
by
Walter
-4. >V'.V" 4::;
■■44 4;
'
,444::
4,.;£■■■
v '
of
A.
,4'"4
The loss of
r -'
■
.
:44
44 4 4,4
'
1
-
"4
'
u. S. a;
/
* '•'
,
110
,
PRICE INDEX
fe
■'*
'
'44"'
'
,
100
uA-
FARM PRODUCTS
Sept. 1931
y
4444' -4" \
,r
90
"
'
1
r'.4'
"vV V-
ao
-
'
4'
M
'f
't
*
-
-
1
•
:
70
4'.'■■■•.;T:-.
4:
1
=
100
agricultural buying power, due
to
the ruinously low prices prevail¬
ing, seriously added to the depression of industry.
*
Recovery in prices started when the United States left the Gold Standard iri
1933 and prices advanced along with the dollar value of the pound.
'
surplus production of agricultural products must be sold in the competi¬
market, and the prices received for the surplus largely determines
prices for the much larger amount sold in our domestic market, (unless protoc-'
tion is given by such means as "export subsidies" to artificially increase dom¬
estic prices.) Prices of our' farm products are therefore very sensitive to changes
in the exchange rates of foreign currencies as they translate into dollars the
prices received for our surplus, production, sold in terms of foreign currencies. *
The advance in agricultural prices during the second half of 1934 was due ,
to drought, resulting in very snort cropland higher world prices.
4
Our
tive world
'
ling declines, on the accompanying
compiled
>
the
prices of commodities when ster¬
charts,
V."
•
■
,
serious problem for
the United States and. the rest
*the
120
While it is
problem. for England,
a
1934
will
depre¬
on
farm
and- trade maladjustments
take their course and the
economy
vpay
Exchange Rate
Prices of Farm Products.
rency
'"will
.
found. in
is
-solution
-
.
The crops of 1932
world prices valued
the capital-plants, stocks and
bonds
r
a
_
The Cotton
perhaps a couple
billion dollars
of
4'-
4;44^r4■;4;4' J5^-
COTTON
-where Americans and other tour¬
•
■
,
world
sell the sterling
the^ sterling
.
Copper prices had declined from the highly inflated price "of 18 cents per pound,
New York, in 1929-30 to 7*4 cents per pound on September 1, 1931, which
was below the dost of
production for all American producers. But foreign com¬
petition under conditions created by a depreciated pound finally drove prices
down to the extremely low level of 4% cents
by the end of 1932. Prices recover-"
ed to 9 cents in 1933 when the
exchange rate of the pound returned to par.
At this time new low cost
production came into the world market from Africa,
and in 1934 Congress placed an import excise tax of 4 cents
per pound on cop¬
per to protect the American producer, which accounts for a part of the spread
between American and English prices at the close of 1934.
;
:
Maybe she could part
some
sources
other areas,
of raw materials which
or sources
;
Could she sell us
or some
J
Compiled by Walter A. Starr, San Francisco, Calif., May 9,1939.
.
>v.,'•••.y■;
Ti;
MONEY
The Threat of Inflation
-V-k'
"
.V
1919
1947
-
(Continued from page 1818)
plus supply and in some of these
cases there may be some tendency
for prices to decline.
However,
the broad inflationary forces that
affect
prices generally will be
5
more
j
special
powerful than the
factors affecting individual prod-
PERCENT
supply and the nationa
income, assumed that a major in¬
crease in the money supply, such
as we have witnessed for the past
money
few years,
MO
)
h
:!
•
v
*•"'
'
-
v!"iVvs
////•;£/>
7 :
,v.
,
-"■Z''
would of necessity be
looked upon
■
;■:.
f forgoods,
(3)
labor
costs, and (4) Government spending and monetary policies.
;
,
M
The Money
The first and
Situation
perhaps the major
Inflationary force is the tremenNdous accumulation of money and
liquid assets which can be
turned into money. The following
table shows that the liquid-asset
other
>
'/■*
i
holdings
indi-
and
business
of
in
1939 to about $210 billion in the
middle of 1945, an increase of $144
billion.
The liquid assets shown
viduals
v
♦/
$66 billion
from
rose
currency, demand
deposits, time deposits, and United
States
Government securities,
here, include
about one-half of which are now
,
'
•
\
Dec. 30 June 30 Increase
.
,
4 6
Currency
Demand deposits—
V.
/
•
Z /
C
"
19
36
17
26
Government
S.
12
securities
66
Total
^
25
57'
:
21
Time deposits
*1930
/
73
85
"210
144
June 1945 Federal
Keserve Bulletin, p. 533.
1945 figures are
estimates based, on end of 1944 figures in
same bulletin;
Due to rounding the figtires do not always add to totals shown,
i
.
figures
from
In addition to the above figures,
there
substantial
are
additional
holdings of liquid assets. On June
30, 1945, for example, the Federal
Government had demand deposits
of about $24 billion and a like
«
■
amount of Government securities
in. various
trust
and
accounts
agencies.; Furthermore, state and
local governments on the same
date held over $10 billion of cash
and Government
securities, a subwhich may. no
works,
improvements, and other outlays.
stantial
•
part
doubt be
/
If
we
of
used
should
.
would
for public
add
to
the
shown in the table above,
totals
the de¬
posits of the Federal Government,
which are being rapidly converted
into ordinary business and indi¬
vidual deposits, and the cash and
Government holdings of state and
local governments, it would bring
the total up to $244 billion at the
middle of 1945 as compared with
about $71 billion at the end of
1939, an increase of $173 billion.
The liquid assets of miscellaneous
holders would increase those fig¬
ures considerably more.
TIME
DE iposita
V iuetxI0INC
MONEY SUPPL\
was
90
:
are
If
held
Government
as
securities
investments
the commercial banks and
outside
are
turned into cash to be spent,
not
inflationary. Time
not
§
ill
declin¬
\ /
l*
posits
represent
they
de-
mostly savings
and are not spent so rapidly as
currency or demand deposits and,
therefore, do not have so much
influence on prices. No doubt de¬
posits will continue to grow dur¬
ing the next two years and in the
-
70
#
y
/ \
1
prices for. two
t,
Z.' Z/Z.A '
SO
/
fore, cannot be considered a se¬
potential. Both
|
I//1
i
-
.
>.
*"
Z;
*
'..■•■"/1Z '//
-V
/
./X,:-.
Ify
Z'
-
j
•
1"
<
:'•
..
%
'
?
SUPPLY
the'puhlic will
V
,
money
savings in addition to current in¬
come. Various polls and questipii-
.
'
•
4
■
•?
; •
14
' '■
1
i
'
nairies
20
-
}'
;lr>
</
"Z
i
v
.;
doubt that
'
XX'\
10
1
'/a
til,
-till
1920
1
M
1
l
1
1
1
1
>;
it
1
1
r
\
1
1945
1940
1935
1930
19 25
Some students take
Reserve
in the 1920's. Tf eral
System, probably
the mo¬ through open-market operations;
neyssupply/will
have
doubled
in
add time deposits,, or at least
Lower Rate of Turnover
make some adjustment in the fig¬ relationship to national income,
There is little doubt that the
that is, from around 65% in the
ures for the influence of time de¬
1920's to ■something over 130% in extraordinarily' large money sup¬
posits. In order that the readef
1946 and 1947, Perhaps a fairer ply which Has accumulated has a
may take his choice and make his
comparison would be to add only strong potential inflationary in¬
own comparisons,
we have sup¬
fluence.
At any time the turnover
a part of time deposits, say 50%,
plied two sets of figures for the
to the money supply. In that case, rate may rise; We need hob con¬
money supply, one including time
the postwar ratio to national in¬ clude, however; that runaway indeposits and the other excluding
flation is inevitable or thatalarge
time deposits. To demand deposits come will be about two and onehalf times that of the 1920's. Lit¬ price rise is unavoidable, provided
adjusted we have added U. S.
prompt and aggressive measures
Government deposits because they tle can be gained by attempting to
make elaborate statistical refine¬ are taken to prevent it. There are
are
as
liquid as other demand
doubtless a number of moderat¬
deposits and are being rapidly ments; it is sufficient to conclude
converted into ordinary business thai the amount of money in the ing circumstances or reasons why
the existing money supply need
and individual deposits. Because country in the next few years, in
not
produce
an
excessive
of the big shift from ordinary de¬ relation to the national income,
rise.
Much will depend
mand deposits to Government de¬ will be from two to three times price
what it was in the 1920's. This re- upon business and governmental
posits during .war loan drives and
as well as individual policies. Po¬
the reverse shift between drives, fleets a much lower turnover of
litical trends, public attitudes, and
the figures would show undue deposits and currency. If the turn¬
business confidence will continue
fluctuations
and
would
not
be over were the same as during the
to be important influences on in¬
truly representative of the money 1920's, the country's business could
be carried on with about one- vestments and the volume of busi¬
supply if Government deposits
third to one-half of the money ness and :hh the ^te of turnover
were
omitted.
The figures on
of bank deposits.
'
*
supply we will have in 1947.
1
which
the
chart
is
based
are
adj usted
banks.
great
plus currency
Others
we
would
as
it
was
include time deposits,
'
shown in the table at the end of
this memorandum.
The
With this expanded volume
of
tion
tially larger amounts Of savings
and liquid assets than /formerly,
quite probable that for a year/or
have
so,
that
the. money
above, offset by some fall in cur¬
rency holdings), and that the na¬
tional
income
will
fall
substan¬
another peo¬
one reason or
ple
comparison has been ex¬
tended to 1947 by estimating the
figures for the next two years. We
estimated
For
money,
plus the large accumula¬
of other liquid assets that
can
be turned
or
even
into
more,,
money,
it" is
expenditures
Investments will probably
current
desire to hold
may
which would
of /
mean
a
substan¬
continuance
and
businesses
has" become
exceed general. The rate of turnover may
depend on whether these balances
savings. In certain periods
of the past, excess of investments
over savings has arisen out of the
expansion of bank s credit. //This
There
which
still considered operating bal¬
ances or whether in part they are
are
considered cash accumulations to
be
spent
as
soon
as
goods
are
available; it will also depend in a
on how long price con¬
measure
trols
are
A
continued.
further- moderate
rise
in
further substantial
increase
in
the
production
of
goods might tend to dilute or
weaken the pressure of the exist¬
prices
and
a
ing money supply. It is probable
that in periods of very high busi¬
ness activity there may be a* sub¬
stantial
increase
turnover
r
in
the
rate
of
<
totals
are
several
other
factors
may
The liquidation of consumer debt
during the war paves the way f
a
substantial increase in consuhner
credit.
The
big
shift in popula¬
tion from farms to industrial
cen¬
ters where standards of
living are
higher has created an additional
potential demand for new homes
with all the furnishings and equip¬
ment that go
The big
with them.
increase in marriages will have'a
similar effect. Numerous hew arid
improved products in radio and'
television, plastics, textiles, house
furnishings, and a host of others
will
stimulate
doubtless
a
large
of
buying.
Ten million
discharged service men and wom¬
en
will be buying
new outfits,
amount
thousands
and
of
them
will
r
be
setting up how businesses, or buy¬
ing homes or farms.
t
}
/Building activity may. be re¬
tarded by high costs of materials
and labor and by shortages of cer¬
,
.
tain materials. There have already
been
where high costs have
cases
turned .y the
scales
against
mercial /; construction;
the
com¬
Construc¬
therefore, may/not; be so
of :a stimulating/ factor in
immediate
future
as
is com-
monly supposed. The demand for ,/
dwellings is pressing i inl'/ihany, ^
communities;; however, and many
people with accumulated savings/
may be willing to buy or build in /
spite of high prices. If the cost
problem can be solved, the vol¬
ume of construction will probably
rise
to
new
high levels and
.
/
re¬
U |
accumulations will
no doubt be large for a year or
two.
Many manufacturers-/will
have to build up new inventories /
for
civilian
production. - Dis¬
main there for several years,
\
Inventory
tributors'
inventories
durable
goods
existent
and
durables
are
are
low
of
almost
often
in
the
many
non¬
non-
supply
or
made up - of substitute materials
deposits and cur¬
which will be replaced;//. Thou¬
rency
without a major r rise in
sands of small stores which closed
prices.
Money itself might not
during the war may reopen and
necessarily be the activating force
buy new stocks. Inventories were
behind the higher volume of busi¬
built up with great rapidity in
ness; its role could be largely pas¬
1919 and 1920 and this was an
sive
while ; business
expansion
important factor in the post-war
creates a more normal relation¬
price rise.
■// '•
ship between the volume of busi¬
(Continued on page 1848)
• j
ness and the volume of money.
of
.
/ stimulate consumer
buying in the early postwar years.
tion,
The habit of carrying
larger balances by both individ¬
thatthe
large; -There /islittle
shortages in dwellings,
automobiles,
radios, ;/ household
appliances,
and
other
durable
consumer goods Will require tin|e
to be made up. There are, alio
substantial needs for capital goo^s
for reconversion and expansion
of plant and equipment./ /
t
It
the/ low • rate^of turnover of much
money.
uals
indicate
are_ very/
-'v
•
now want to satis¬
cause them to
spend some of their, accumulated;
poses
of
types - of
fy and which will
1
30
appraise the
possible influence of this enlarged
supply of money on prices, we
have prepared a chart, showing
the
relationship ■ between
the
country's money supply and the
outside
some
domestic deferred demands which
DEPOSITS
Tl ME
MONEY
FROM
v
In- order better to
deposits
and
.
40
^EXCLUOINC
>"
\/
:
1-/4
r; !!./•;
tion, of course, as to what com¬
the country's money supply.
only demand
kinds
all
or
more.
capital goods. " /
•
\
There is probably no way of
estimating, the magnitude' of tfy'e
/
'■/>: '/• i> v
u-\}r.. ,y
a ques¬
three, years;, 6r
This is especially
true of durable Tconsumer goods
possible
of
'
.
so
*
fairly constant relationship would
There is
>
1
viewpoints are extreme.
It is
probably fully as erroneous today
to assume that the money supply
has no influence on prices as it
was
formerly to assume that a
national income.
The huge pent-up demand f6r
goods, both in this country aild
abroad, will be a highly stimulat¬
ing factor on both production ar)d
*
t
X /
Potential Demands
Deferred and
so
j
/
V
make
-
1
A
jirrv.;'\,fT
sup¬
money
1
U; '■
...
tially from the high level reached
during the first half of this year,
as production declines. There has time
it will probably come not
been a very wide range of esti¬ only from the expansion of bank
mates of the post-war national credit4 arising out of deficit / fi¬
income, some high and some very nancing and business borrowing,
low.
In order to avoid the ex¬ but also from the spending of
tremes we have taken a middle- savings.
■ M
*
1
of-the-road estimate of $135 bil¬
The long-term inflationary po¬
meantime U. S. Government de¬
lion for 1947. This figure seems tential of this accumulated money
posits will be largely converted to be in or near the
range of the supply depends in large part upon
into ordinary business and indi¬
more responsible estimates.
the rate of turnover, i.e.,
how
vidual deposits. A part of the
The chart shows the changes in many times currency and deposits
growth in deposits will come from the
are
used
in
a
money supply as compared
year. No matter how
further deficit financing of the
with the national income in the rapidly deposits are spent," they
Government and a part from the
early 1930's and especially the are still deposits; there is no way
liquidation of Government secur¬
rapid growth since 1942. If we ex¬ for them to decline unless they
ity holdings by corporations and clude time
deposits, the money are used to pay off bank loans or
individuals.
To make these re¬
supply was about one-third the to purchase or retire securities
demptions the Treasury may have national income in the
1920's. If held by banks. Gold imports or
to borrow from the banks, there¬
our estimates are
correct, it will exports would, of course, increase
by increasing deposits.
equal national income in 1946 and or decrease deposits, but it is as¬
)* , Some years ago many monetary 1947. In other words, the money sumed that. if any major gold
{Students, noting that there was a supply in relation to national In-r
movement dcvvefop? its, influence
*
-close ^relationship' 'between
the eomev wUr be about three times as will be counteracted by the Fed¬
are
.
T—
Liquid assets, of course, are not supply will show a further sub¬ will outrun the country's current
inflationary per se; their influ¬ stantial increase
(consisting of a production. In other words; there
ence depends upon how they are
rise
in
deposits,
as
indicated will be more dollars than goods;
used.
1
■;
inflated
by
inflationary forces which
controls and precau¬
tions more difficult and less ef¬
fective../;
V ■?;
1
1
present
may
prices and, there¬
between
past experience and precau¬
A disturbing factor about
other
1
1
4
overpriced market.
an
ply is that it is accompanied
100
'
I
rious inflationary
maintained
of
■'
ing, have concluded that the vol¬
ume of money has
little, if any,
influence upon
N
1
'
This conclusion, how¬
of turnover
way
1
'
:/>
con¬
booms can get under
and gain momentum in spite
the
constant rate of
recently, other
economists, observing that the re¬
lationship
between
the
money
supply and the national income
was
rapidly changing, and that
rate
1
l
be
Government
tions.
/
ever, assumed a
turnover.
More
the
However,
110
and the national income.
•liquid-asset
holdings
of business and individuals z
/
(to billions of dollars!
1939 ":
1945
<
-
maintained.
be
savings bonds.
income
national
the
the threat
;
of the dangers inherent in
1
/
I-,*
Certain
buying in
1
■
demands
aware
120
•
!
hand,
or
1
:•/ //3 / /
other
trols have been set up to mitigate
curb excesses and people are
130
4
the increased money
j ucts.
I There are four rather potent in- supply as an activating force that
would, of itself, stimulate a higher
flationary forces which will be at
level of business activity, or high¬
work during this period.
They
er prices, or both, so that the re¬
Jire:::(l) The large money supply,
lationship between money anc
(2) heavy deferred and potential
.
the
1
followed by a corresponding rise
in
the
national income.
They
,
excessive price
flated.
1
1
•'/'•
rises in com¬
modities, securities, or real estate
—culminating
in
a
speculative
boom—is
always present when
the money supply is greatly in¬
mm//:
'
•
'
■■
Thursday, October 18, 194S
of
;/,■■ ■/ -,■/
v'Z.
estimates)
•
ape
ron <•1945-47
:/".r;
"■ ■■■
■
On
PERCENT OF NATIONAL INCOME
AS
SUPPLY
.Crieuftcs'
;/
I
:
THE COMMERCIAL & FINANCIAL CHRONICLE
m6
V
/■■•'/■'"Z•'■>/ /•■■/■
'■1
Volume
Number 4430
162
THE COMMERCIAL & FINANCIAL CHRONICLE
18471
Australia and New Zealand
baniTof
i NEW SOUTH WALES
(ESTABLISHED
;
Paid-Up Capital
Underwriters
Liability of Prop— 8,780,000
Vv
Aggregate
Assets
Sept., 1944
THOMAS
Trading daily 7
California Company
£23,710,000
v-',-."'-
30th
300
Montgomery Street
George Street, SYDNEY
.// //
/■ ^v'
vj: Teletype SE431-432
1
1
210
LOS ANGELES
Private Wire* between San Francisco, Lot
-
OFFICES
IN
PRINCIPAL
the
with
U.
8.
of EGYPT
"
•
Head
,
Offica
'
'
Calra
7
-
Just
now
the investment market
literally inundated by new bond
issues growing out of refinancing
operations by corporations seek¬
ing to get their securities to mar¬
ket in advance of the Treasury's
Victory /Loan Drive which gets
under way a week from Monday.
FULLY PAID CAPITAL 7, £3,000,«»
RESERVE
FUND
.
*
.
£3,000,000
LONDON. .AOENCr
*"
»
King William Street, E.C*
and 7
c
\
<
Branches■■■ tw alt the
.
principal
//EGYPT
%
yV But
Towns in
the
~Vv'
aiid the SUDAN
is
-/j'*
the Government
to-
7
..('.V.
Branches
,
Lond0n,^#C,i
.
*
''J'i'
^
In
Subscribed* Capital ;
_;£4,0OO,OOO
.
7'-■! Paid-Up Capitalx7»^^2^0,000t>
conducts' every
Bank
description
of
'banking-Andexchange business.
-
C Trusteeships and Executorships
Also jinderftaken,,, V
///?< /."..-'V
'i"*r
•
,
Shope Adv. Mgr. of
'Equitable Life Soc.. ■-/>
100.41991
for
investors'
the
i
f Society- of the United States, has
-announced
the
appointment of
Leslie R. Shope as Advertising
Colonel in the
/.United States Army Air Force,
!-recently returned from the South
Pacific
where
during
the past
.three
years
he
served as
the
a
of
obligation by
a
and
air
was
center
war
he
supervisor of
-was
jSales promotion for The Equit¬
able.
.
.
:;;ist.; Partners in
'which will hold
of November
as
*
York
vber of the Curb;
William P. S.
Jr., general partners; and
John
T.
deBlois fWack, limited
f partner.
Mr. Shean is a partner
Ifin E. J. Shean & Co. Mr. Jewett
an
floor
Curb
individual
.broker; in the past Mr. Earle was
with Winthrop,
.
Whitehouse & Co.
■■7-"$ r"*
Security Inv. Corp.
£
WASHINGTON, D. C.
—
Secur¬
ity Investors Corporation is being
formed with offices at 1367 Con¬
necticut Avenue, N.
in
a
are
W., to engage
business. .Officers
securities
Ralph Martin Newman, Presi¬
dent;
Walker
President;
.
with
Investors
bearing
Prout
and
Buel,
Dorothy
ViceMahon
Newman, Secretary-Treasurer.
f{ :rf
r -s
; :i
and
107
stock,
as
stances
under
Co.,
&
Inc.,
holders
out
a
longer
Pacific
Gas
a
Bank
appreciation
holdings
and perhaps by way of larger
dividends where earnings would
>
a
mere
stock
mention
Chase
&
com¬
second
and
the
the
$40,000,000
offering
bring in
a
tap
or even
rush of buying orders
is
C-fff
not
particularly
whether;
con¬
handles
he
bonds or equities since bis prime
interest is in the opportunity to
do business at a profit.
But
circumstances
of
Changes
SAN FRANCISCO, CALIF. —
George A. Koch will be admitted
to limited
partnership in Walston,
Goodwin, 265 Mont¬
(Street, members^ of the
gomery
&
New
York
Stock
Exchanges, effective Octo¬
Exchange
First
National'
Irving
f f-'f..^<.
Trust
*:
0.59
.
y
and
San
Francisco
-
•
New
York
♦♦Public
1.29
Trust———
1.93
/
S,
16.13
—,
>
♦Including City Bank Farmers Trust.
Some capital
changes have
curred since the
tain
which
third
instance,
adjust¬
figures in
Bankers Trust,
cases.
declared
dividend
oc¬
quarter of
necessitate
for
stock
20%
a
cer¬
10% stock dividend in January,
the $1.16 of 1944 therefore
a
1945;
is equivalent to
$1.05,
$50.49 book value $45.90.
of all
retirement
Manufacturers
by
:
♦♦See
and the
Another
increase
1,650,000
of
preferred stock
Trust and the
shares from
common
to
the
was
2,062,500.
Adjusted
for
this change,
ter
earnings and book value
1944 third
quar¬
are
other
proposed -capital
that
have
Chemical
increase
capital
limited
y
been
par)
by
a
25%
an¬
proposes
stock
stock
to
from
($10
dividend,
and to maintain the current $1.80
rate,
which
thus
equivalent to $2.25.
tinental also proposes a
42.80
50.49
87.95
91.68
49.00
1,530.33
■
adjustments below.
($100 par) from 400,000 to
500,000 shares, and to maintain
the present 80-cent dividend
rate,
which
becomes
the
J equivalent
Of $1.
/<.:■,
_
...
•
;
V,.
The market for bank stocks
has
livened up during the
past few
weeks, presumably in
response^to
rumored and reported stock divi¬
dends
as
well
favorable
as
in
third
anticipation of
quarter
figures.
The American Banker Index
45.7 in
was
mid-September and 51.3
on
Oct. 10; the appreciation is 12.2%.
Between
moved
these
from
preciation
of
dates
593/4
to
15.5%,
nental from 243/4
Chemical
69,
an
and
to 29, or
ap¬
Conti¬
172.%.
Correction—In the Oct. 4 issue
of
this
column
Guaranty Trust's
percentage of capital funds to risk
assets
should
have
been
25.6%
instead of 15.6%, and ratio of risk
assets to
capital funds, 3.9 instead
of 6.4.
be¬
Con¬
25% stock
Manufacturing
BANK STOCKS
22 13
54.06
40.47
1,522.11
Two New Bulletins
B ought—Sold—Quoted
Stock Extras
Seem Imminent"
Russell
NEW JERSEY
344.79
..
43.84
stock
changes
2,000,000 to 2,500,000 shares
comes
from
recently
nounced.
?
21.61
,
dividend, which will raise capital
last
Public National declared
331.59
,
2.03
1*25
1.16
y
Trust
2542
52.73
1,320.46
16.16
.
National
,•••
U.
40.69
-'"46.66
'J'" '••
•
50.45
1-28
_
0.59
'
1'27043
0-33
,L
dividend
retire
6J26
:
0.27
Trust
City
42.17
,
.
-
i
;
24.16
'
5.65
47.28
106.46
38.33
0.54 *
1-24
25.79
'
.
100.45
,
,0.93■'
0.99
"*
;
Trust
Lucas
will
■
,
431.69
52.07
•
^
C
29.85
.
369.70
AND
<
:
•
"3rd Quarter
Statistical Comparison of
19 N.Y.
i."
City Bank Stocks"
Invariably allotment is
to
necessary
available
possible.
trouble
many
&
r;
"Manufacturers
♦National
They find stock offerings dif¬
ficult to handle In many re¬
and
0.84
■
25.83
"More Bank
financing have proven such,
occasion, that
bankers
are
none-to6-keen about this type of
ments
'
•
;V
1.50
-
...
Sept. 30,'451
8
'
0.74
'
o.73
Trust
Sept. 30,'44
9-36
■
,
Bank
Corn
■
; 1.50
,—
&
'
1.05
_i_;
Bank
Book Value-—
Sept. 30, '45
surrounding
on
spects.
7.97
,
Hanover
National
ber 31st, as of which date John J.
partnership.
stock
business.
York
important capital change
Kansas
Hoffman
banks, for both quarters:
0.64
,
The investment banker, natur¬
ally,
,.'9.8
$
equivalent to $1.03 and $44.78.
■
It is also of interest to note
firm
a
from investors.
cerned
1.972
24.1
2;
that
on
1,087
5.8
0.55
Trust
Continental
headed
a
house
Walston Hoffman
in prospect is said to be sufficient
to
New
Chemical
close to record levels.:;':K
Mention Brings Bush
The
of
Central
justify such distributions.
has
Manhattanl_____
"Bankers
City Southern Rail¬
way first mortgage bonds was up
for bids promising to swell this
week's aggregate of new offerings
new
their
of
$43.40.
Chicago
896
4.8
■
thus become $0117 and book value
West Coast firm,
684
note that loans and discounts show a subdo Governments and other
securities
^
accompanying table gives a comparison of the
earnings and
ordered the bonds sold in
a
22;187,
gain than
California Railroad Commission
a
5,000
As interesting to
.
December; the ad¬
justed 1944 third quarter earnings
by
20,215
16,349
$
subsidiary of the
Co., but the
one
(Million Dollars)
15,453
4,513
Sept. 30, '44
American
Meanwhile
through
of
by
Assets
15,015
I
;
Stantially• greater
;•
.
Yarning
Discounts
14,331
I
(dollars)
(Percentage)
Guaranty Tru^t
w
distribute
r
the
supply as fairly as
But here, sometimes,
develops
be
may
individuals
proceed
to
since
so
lose
Established 1891
interest
market
MArket 3-3430
what
■
j.
s-
N. Y. Phone—REctor 2-4383
.
Available
on
Request
Laird, Bissell & Meeds
V"
Member* New York Slock Exchange
Members New York Stock Exchange
18 Clinton St., Newark 2, N. J.
that
they take down immediately..
a...
J. S. Rippel & Co.
allot¬
small
:
Loans Si
Securities
<
Increase
Bank
third by a New York group.
chance of work¬
•
I
ments to the above
by
be;W
equities
of
^
funding 3s due to mature in
1977. The SEC recently declared
no
BANKS
All
Third Quarter Indicated
Earns.
Three groups were in the run¬
whereas, it is reasoned
evidently,
1945
1944
North
SIXTEEN
book values per share of each
of the sixteen
Day
ning for the bonds,
circum¬
such
1944
30,
The
petition.
income
would
30,
Electric Co. of $49,000,000 of re¬
it
■
later
or
fixed
securities
in
locked
new firm,
memberships on
/'Earle,
is
sooner
prices must rise by way of com¬
pensation. This means that dollar
income will lose proportionately
in purchasing power.
membership of the late Russell S.
Cooney; Edward H. Jewett, mem-
*
that
and
creases
Sept.
Sept.
Most interest centered around
sorbing the cost of such wage in¬
the
Stock and Curb
Exchanges,..will. be Edward J.
Shean, member of the Curb, who
will acquire the Stock Exchange
New
bonds
competitive bidding.
,
marketwise
Jewett & Shean will be formed
City
the
Stuart
offering
VJ
Total
substantial-sized
the
OF
Securities
issues, one
a* public
utility and the other a
railroad undertaking being up for
It, is recognized that corpora¬
tions cannot go on indefinitely ab¬
ing
Formed in New York
S^h' the
•
ASSETS
106
was a bhsy day for
underwriting fraternity with
two
ing heed to the implications of
inflation, controlled though it
may he, in this trend.
would stand
Jewett & Shean to Be
y7
lower coupon is-J
But then investors, eyeing
-
in New York
and
Yesterday
outstanding/;;
an
EARNING
U. S. G.
;
the
widespread campaign for;
higher wages, are doubtless giv¬
com¬
mander for New Caledonia. Prior
Ito the
AGGREGATE
headed another group which bid
the
'^Army's director of public rela.tions
bonds
A Busy
replacement
sue.*
Thomas I. Parkinson, President
-
Halsey,
Bank Stocks
a group of sixteen
leading New
commercial banks reveal the fact that
their aggregate
for the third quarter of
1945, including security profits,
are 21.0%
higher than for the third quarter of 1944.
This is japt
surprising, for the trend of their earning assets
continues to be up¬
ward, as was pointed out in this column on
Sept. 20.
;
A comparison of
principal earning assets, as shown on third
quarter balance sheets of 1945 and
1944, is as follows:
4.10% dividend payer.
7?
evident
if- -/ By far the hulk of such jiew*
':;of The Equitable Life Assurance
Manager.
[
Mr. Shope,
the
for
—
City
.
issues.
'
'
for
less $1.72 a share for the
"r"°'"
securities represents merely the
j
Seattle
.
280
"basket bid" of
a
preference for stocks.
But that
100.5859 for the bonds, but this
was'scarcely necessary.
In the
bid was passed up by the comfirst place the yield on high-grade
pany which awarded the bonds
bonds is scant to say the least and,
and stock as a whole. The firm
on top of that,- the volume* of ac¬
; proceeded to inform members in
tual new financing reaching mar¬
ket is infinitesimal-when placed i its group that it planned to pro¬
test the award of the bonds.
;;
against the overall total of new
M
*
on
f
£:"< Reaenre- Fund^7^^7--£2^S00,000 '
The
a
•
reason
Bishopsgate,
26,
.><7
^,
A.
earnings
This group also bid separately
each
issue, offering to pay
He did not go on io offer any
:
India, Burma, Ceylon, Kenya
Qolony and- Aden and - Zanzibar >
.
L.
-
Statements for Sept. 30, 1945 of
York
for
a
in
pre-
awarded to
dend.
cumstances."
Kenya Colony and Uganda
:
the
of INDIA. LIMITEDHead- Offices,
.*
100.3391
"equity-minded."
As
such
commentator put it
v
company's
were
less $L72 a share compensation
for the stock with a 4% divi-
is
-
the
ton & Co.
fyou can sell any kind of al
stock deal under prevailing cir¬
ViJi':
279
By E. A. VAN DEUSEN
ley & Co., Inc., and W. E. Hut-
public
the
of
headed by Morgan Stan¬
group
NATIONAL BANE
Bankers
mi
that
The-bonds, along with 270,000
shares
ferred stock
-;wiio know
with it
direct contact
really
one
'
i-7,
,
temper of the market from
their
concensus
;
those
among
Tuesday.
.
jThfe Week
7
$45,000,000 of 22A%
bonds, expected on the market to¬
day, might be made under the
shadow of a protest by a second
banking group which sought the
issue in competitive bidding on
is
8
San Francisco
A.
Bank and InsuranceStocks
Cincinnati Gas & Electric
Electric Co.'s
REPORT
CommercialRegisterNo.
rX
L.
CITIES
It appeared probable that pub¬
lic offering of Cincinnati Gas &
'S
'
V
V
NATIONAL BANK
v-'
WIRES
-
Banks
A.
OUR m
■///
CALIFORNIA
St., Los Angeles
Chicago
-
CO.
CALIFORNIA
FKIVATE
New York
Angeles, Netc York and Chicago
TELETYPE
Street, E. C. 2
arrangements
throughout
.v.
(P. C. T.)
Orders solicited.
Berkeley Square, W. 1
Agency
y-fr
to 5 p. m.
m.
West 7th
Teletype LA533
.J.v
,
OF
650 South Spring Street
-
SAN FRANCISCO
LONDON OFFICES:
47
Quoted
—
BUTLER-HUFF
investment securities
Manager
29 Thrcadneedle
a.
Inquiries invited.
!
.
Sold
INCORPORATED
£208,627,093
BAKER. HEFFER,
General
—
REVIEWED
-
COMPARED
Special Bulletin and Booklet Service to Dealers &
Brokers
6,150,000
'
Head Office:
ANALYZED
Corporate Securities
—£8,780,000
Reserve
.:.:■
in
!
Fund
'•v'-'.'
Insurance & Bank Stocks
Dealers
-
Bought
1817)
Reserve
'
Distributors
•
and
1
other leading exchanges
WALL ST.
NEW YORK 5
Telephone DIgby 4-2S25
130 DROADWAY, NEW YORK 6. N. Y.
Telephone: BArclay 7-8506
BeU Teletype—NY 1-124S-49
(L. A. Gitobs, Manager Trading Dejartment)
COST
INDEXES
PRICE
AND
Thursday, October 18, 1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
4*1
(ANNUAL
erans.
MANUFACTURING
OF ALL
^
•-'/s ioo
y/ppyyyC';-/
fr/'\• ■/ y?'/ //
■■ ■
INDEX
INDEX
..
.
(Continued from page 1846)
f The expenditures for consumer given herein shows that labor
costs per unit of output in manu¬
goods,
residential * construction,
facturing;- industries, have
in¬
iplant and equipment, and inven¬
creased •: about
42%
since 1939.
tories, will be supplemented by
he a v y
governmental
outlays This, of course, is a very crude
figure-arrived at by dividing pay¬
(State and local as well as Fed¬
rolls by the FRB index of pro¬
eral) for road construction, pub¬
and
works
lic
improvements,
~
|
Further,
business
search,
that the change
from
1939
and
-Others, like the South American
; countries, which were unable to
yp; get the goods they. Vanted during
of
7%
to
an
in the ice cream
increase of
y
decline
industry
credits
ished
De¬
for Reconstruction and
"Bank
will
Bank
:
and
goods
index
$6 billion of credits or financial
aid of some kind.
Russia would
have
to
of
elimination
the
With
war
Great
and to
expectations are being
some quarters re¬
costs
garding the prospective rise of
our post-war exports.
Some esti¬
mates reach into the $10-$15 bil¬
lion
range.
These expectations
seem
high, but if we g^ant the
credits
they
may
be ■ v reached.
that much each
especially if we are gener¬
with
ous
After
the
First
World
War
in
but perhaps very
inflationary
influence,
rising labor costs.
In former
riods
of
expansion
and
po¬
is
the
trend
This
is
to
this
make
over
40%
of
labor
since 1939.t
has
they
the
Number
measure
■
The
Vol,
1945,
p.
changes
Bureau
of
XXIV,
57.
that
straight-time
labor
(excluding
time)
have
It
in
the
Labor
is
1,
hourly
Autumn
not ,easv
price
Statistics
of
to
labor.
estimates
earnings
premium pay for
increased
56%
since
of
over¬
1939.
This figure, however, needs to be corrected
for shifts from low-paying industries
to
high-paying
industries
and
p&ying plants to high-paying
from
<0 MOS.
AVC)
the
industry and wage
increases which might be grantee
by a
same
plant might drive
business, decrease
low-cost
others
of
out
and create the un¬
employment which we are trying
to avoid. .If,- on the oth^r hand,
(publicly sponsored increases are
granted in some plants and not in
others in the same industry, it
would lead to discontent, strikes,
and labor troubles generally.
It was common practice in in¬
production,
dustry in prewar years to grant
wage
increases without raising
hour has averaged around
2% per
year.
In some short periods of
rapid mechanization the increase
has been faster, but probably not
more
than
rate.
The
the
double
Davis
ever/would
mean
average
how¬
that output per
man-hour would have to increase
the
at
rate
8^%
of
per
year,
which seems quite
impossible without raising prices.
Furthermore, if the full increase
in production is paid to' labor,
nothing is left to pass on to con¬
sumers generally in the form of
lower prices.
Moreover, when
compounded,
all
increments
to
production
are
captured
quickly by
labor or
taxes, nothing is left to compen¬
sate
or
encourage the
spirit of
enterprise which is responsible
for
the
increments
new
lead to
a
lead to
an
will
no
doubt
for
and
industrial progress.
The quickest and soundest way
looks
feasible
a
months hence.
tit
i1#
~
It*
**
•
price
•
today might
increase six
Costs vary widely
•*'" *' *
**£!
^
in the
case
of
sev¬
Both the OPA
policy : and labor strikes,
however, are slowing up recon¬
version, retarding production, and
accentuating price difficulties. It
price
has
become
commodities
#
obvious
can
that
many
be produced at
OPA ceiling prices only at a loss,
and
therefore
production gener¬
impeded.
A little
is being
rigidity in price policy would
stimulate production.
- '/,' ;/
ally
less
If the Government attempts
hold
prices
costs
are
works and heavy expen¬
ditures, ' but these would be tem¬
porary emergency measures only
and would not solve the problem
of the cost-price relationships in
industry.
public
rigidly
while
rising, it will
to
labor
mean
a
alternative
Another
for
Government
the
would
be
to
permit
prices to rise, and ultimately this
is likely to be the course pursued.
In fact, the price control powers
last only until June 30, 1946, and
are not likely to be extended by
Congress, except in greatly modi¬
fied form.
The probabilities are,
therefore, that by inviting and
encouraging a rise in labor costs,
the Government will start a price
movement which; may be difficult
to control.
;
,
•.
Government Spending and
Monetary
Government
whole
to
be
by Government expendi¬
tures 4
The
for
purpose
this
very
They
unwilling to permit the fa¬
vorable economic atmosphere that
private enterprise
They would deprive
enable
would
to succeed.
of most of its honest
profits and then resort to Govern¬
ment spending to stimulate busi4
ness
and
provide employment^
Promises of security and general
welfare have been made in the
,
Policies
the labor and for¬
eign lending policies mentioned
above, the spending and monetary
policies
inflationary.
also
are
Certain of
the Government's ac¬
price controls,
may be considered anti-inflation¬
ary, but these are largely tem¬
porary and may become less and
tivities,
_
such
as
less effective.
In
his
gress,
message
to Con¬
the President outlined a
of projects for aiding or
number
subsidizing
various
nation's
mate
of
segments of
No esti¬
accompanies
economy.
their
cost
the message,
but if Congress fol¬
lows these recommendations, the
expenditures will certainly in¬
volve
many
billions of dollars
and will carry peacetime Federal
spending far above the already
high figures generally taken for
granted.
war
proposed
ing the period of reconversion
unemployment, that Federal em¬
granted substantial
pay rises, and that unemployment
insurance
be
broadened
in \ its
ployees
coverage
problems except, public;
spending. For a time this seems
like an easy solution, but sooner
or later it leads to financial and
nomic
be
and payments be raised.
He suggested
the liberalization of
veterans' benefits and higher un-;
epipjoymept, allowances
-
monetary difficulties.
.
;
The danger in the present situ¬
ation lies in the spending theories
which
are
imbedded
well
so
in
Large
thinking.
Government
public works and other Govern^;
taken
expenditures may be under- '
at a time when everything
is
so
favorable for the
of
private business that it may be
to prevent business ac¬
ment
expansion
tivity from reaching boom pro¬
portions.
If so, the Government
be feeding the fires of in-
will
fox ..Vet-.
There has never been a
flation.
time in the history
of this coun¬
:
try when there was less need for
and more danger in Government
,
expenditures
ness.
is
fer
T
that it will not suf-
f
crippling
f
much from the
too
retarding recon- y
now
are
labor policies
and
governmental
which
busi¬
stimulate
to
All that business needs now
assurance
version.
•
r
t.';yyv,.•••yv
•••
The
-'y»?-•;... ;p4•
spending
general
philoso-y
phy / which
has grown
up
in
Washington, and which the Pres¬
ident now seems to support, will
mean
a
continuation of deficit
if
financing
it
sional support.
receives congres¬
This would be a
threat.
The
realinflationary
the
of
worst
inflationary
devel¬
opments in Europe after the
World War
First
because the gov- y
came
ernments did not put their fiscal
affairs in order after the cessa-f
For
tion of hostilities.
one reason
another they continued
or
President
that
workers receive support dur¬
The
think
to
•••y.y•"
recent
governments seem to be able /
of no solution for eco¬
ern
difficult
policies
on
the
inflationary.
to
:
by other governments to
their
people,
but., these
have
nearly always led to wasteful
Government expenditures. - Mod¬
past
.
strongly
are
In addition
the
to relieve the
eral commodities.
profits, a damper on
investments, further curtailment
of production, and increased un¬
employment.
The
Government
might undertake to offset this by
on
squeeze
proposal,
demonstrated
wages
necessitate
1
the output per man-
increase in
for
higher
funds y
more
s
to
industry
in
in Washington.
The virtual invi¬
tation extended to labor to ask
that
low-
plants.
100
1945
1944
1943
1942
1941
1940
1939
price pressure is to
increase
the
supply
of scarce
goods.
This has already been
important rise in labor
costs. /
■'. /./''//
The theory is that wage in¬
creases
are
to. be granted only
when they do not result in price
increases, but this is an untenable
formula.
It is-very difficult to
tell, certainly at this time, what
wage increases might necessitate
price increases.
A wage increase
riser
The chart
No.
abandoned,
series of wage demands
which will gather momentum and
,
Review.
.
stimulate purchasing power seems
to have gained general acceptance
tSumner
H.
Slichter,
"Adjustment
of
Wages During Conversion," Harvard Busi¬
ness
has y been
wage rates
will prob¬
ably be raised, and the doctrine
of
raising wages " generally
to
major factors in the price situa¬
• y:' ::yv
yyy.-;//'.:/
price
ex¬
a
minimum
tion.
The
of
not speaking
formula
be
of
one
outbreak
an
demands and strikes
large body of Washing¬
opinion.
The "Little Steel"
ton
receive from the Federal Govern¬
will
After
wage
reflect
in the next few years.
unions and the support that
tion.
Stabiliza¬
for the Admin¬
istration.
However, there is little
doubt that the views expressed
rising
likely
Economic
of
treme
was
Instead
of
following 'the price
rise, labor costs are likely to pre¬
cede and accelerate the price rise;
The growing power of the labor
ment
wages
the President said that Mr. Davis
pe¬
prices it has been customary for
wages to lag behind prices.
Dur¬
ing •> the war period, however;
wages have run far ahead of price
/increases.
1942 level.
Apparently the economic plan¬
in
Washington
favor
in¬
Director
A newer,
or
40-50%
during
the next five years without in¬
creasing the prices of the prod¬
ucts.
/This idea was publicized
by Mr. William H. Davis when
ac¬
tent
OPA,
other hand,
the
creasing
Costs
Labor
•
.
our
heavy net exports helped to
celerate
the
post-war
rise
prices. • '
The
more.
ners
credits.
Government
and
at the 1941
aggregate
may
year,
reducing
through
expects new
output to be priced substantially
on
This time they
combined.
overhead
somewhat
costs
overtime
balance aggregated nearly $6 bil¬
lion for the first two post-war
years
other
while
unit,
•
seem
prices, but these increases were
elimination of overtime, provided possible because of increased pro¬
ductivity
of industry through im¬
wage
rates
remain
the
same.
However, labor unions already proved techniques, new machin¬
ery,
and
better
management.
are demanding higher basic wage
Over a long period of years the
rates to make up for disappearing
net export
our
raise
per
labor
■
war
level of output will
new
probably
entertained in
After the last
a
and
.
the|
field,
enterprise cannot provide a high
level of employment and, there-f
;
$6 billion.
own
•
-J
■
help ? :
public /
fore, the Government must.
only
France, production and the return to a
somewhat lower output generally,
China, and many smaller coun¬
it remains to be seen whether
tries are likewise seeking credits.
The
total
granted
may
reach industry can operate profitably
at
present prices with present
many billions.
These* credits, of
labor costs/ /..Wa^tinfe operation!
course, will be spent over a pe¬
give
little indication of the costriod of years, but a substantial
part may result in heavy demands pricerelations^
vail in civilian production.
Sales
for American goods during
the
next three years when our own costs will no doubt be higher.
Return to a normal work week
shortages are being made up.
like
to
accepted the doctrine .that private
been
spent in this country. England is
already negotiating for some $3-
State
to
fact that a bill
is being consid¬
ered in Congress means that its;
sponsors and those who endorsed
the bill in its original form have
Higher material
labor costs in wartime have
absorbed by overhead ecomies and the larger volume of
business which permitted lower
profit margins. -
probably grant many
billions of dollars of credits to be
.
and
mented
fin¬
for
increased
has
since 1939.
26%
velopment, and the Export-Import
price
;
He
when the Government
responsibility for pro-?
viding full employment, it means
that this policy will be imple-f
goods, however, has not kept pace
with
these
rising
costs;
the
wholesale
for
asked
loans
If
The price of manufactured
chart.
foreign
to
that they may buy
our
goods.
The
International
Monetary Fund, the International
so
-
.
/
assumes
.
loans- and
made
tegic materials continue
bought for stock-piling.
-
of
/
na-:
suggested fur-f y
foreign countries.!
He also recommended that stra¬
42%
and
the
pent-up demands. an increase of
arithmetic average showed an in¬
this huge potential
crease
of 40%.
These-were all
-foreign demand for goods exist,
rbut in a great many cases' the industries in which the commodi¬
produced during the war
countries have substantial funds ties
with which to buy our products. were about the same as before the
The gold holdings, and dollar bal¬ war.
Material and labor costs; to¬
ances
of foreign
countries are
gether have risen nearly 54% per
t well over $20 billion.
unit
of
output since
1939, as
Furthermore, this country conshown
in
the
accompanying
templates making large amounts
countries
% be
governments
UNRRA
ther
Not only does
;
/
slum'i;
a
insurance,-
international
President
of their
some
advocates
the cost of their
In the
for
and timber products. The median
until
meet change for the 23 industries was
'the war, are now waiting
•the goods - are available to
local,
cover
in lumber
70%
/ >
re-
additional
works, hospitals and health cen- :
ters.
; yyyyy y-;j
selected
ranged from a
scientific
health
contributions
in unit labor costs
1944 in 23
to
industries
.to
"making
airports and Federal buildings be
constructed,
and y that ; Federal /
1939-
Labor Statistics.
amounts of ma¬
terials for reconstruction and re¬
habilitation of their economies.
as enormous
favors
proposed that public power proj-^r/
ects be expanded, more highways, >
May, 1945, by the U. S. Bureau of
This study shows
need relief aa
war-torn countries
well
and
-
.and
and
care
be
I be large export balances for two
1944," prepared and published in
;or three years or more. -Many
:
President
tional health program for medical
Selected
Industries:
Manufacturing
the
clearance. "/ He-
study of "Productivity
cated by a
legis¬
contributtons to housing and
however, is indi¬
and Unit Labor Costs in
expenditures there will no doubt
not
may
for
asked
also
making the Government; /
responsible for the achievement
of full employment. * J
'
f
disbursing more subsidies to agri-y'y'
culture, giving assistance to small- y
fig¬
over-all
costs
far out of line,
large domestic
In addition to
labor
for
ure
public housing and health centers,
iand for the armed services. yyyy
<
this
.That
duction.
He
-
lation
AVERAGES)
to
run
deficits which resulted iiv
large
monetary chaos.
If
run
the
JThe
Treasury
substantial
a
of
top
on
Senate
the
continues
budget
huge
amended
the
to
deficit
credit
Murray
and
Pull
Employment Bill so as to remove the con~
cept of deficit spending as the means of
providing full employment, but
to
be
seen
«*
what
V,
kind of bill
k.
w.
...
it remains
is
ultimately
,L
'
■
*-
;
;
..Volume
162
Number 4430
THE COMMERCIAL & FINANCIAL CHRONICLE
184#
I
,
f
debt expansion .which has already
recession
occurred,
however.
will
be
substantial
a
inevitable.
price rise
Because
-{have been able to hold
down
during the
the money
flating
Government
of
the
into
public
false
a
garding
policies.
trine
supply,
has
grown
lulled
need
and
■,
to
that
would
balance
certain
to
budget,
to
do
deflation.
this
in
it the
seeds
Budget bal-^
;
avoid
inflation
and
preserve the purchasing power of
the dollar.
Deficit financing and
nearly
always
hand.
'
The
bias.
has
-
of
short-term
Government
b&nks
for
securities,
has
depended
of
more
its
war
financing than
necessary and
inflated
credit/more
has
bank
been
It
necessary.
tionable
whether
this
is
has
than
ques¬
policy
of
[excessively low short-term rates
Zand the huge floating debt can
/ be maintained without
continu-
a
*
expansion
ous
of
Government is
credit. "
very
<
Tb e
ih
generous
i its /
other; expenditures, /but/exceedingly,. economical
when' it
to
comes
paying interest on.Gov-
ernment
securities./ Both nolicies
inflationary.
If the Govern¬
are
^
ment were more economical in its
/> general expenditures and
little
a
/more generous in its interest pay¬
ments to savers, it would be much
% less dependent
/
upon
bank credit/
gains
There
two
important antiinflationary forces which restrain
are
moderate
price rises and les¬
materially the full effective¬
sen
of
ness
the
[^outlined
controls
/: vilian
plus
inflationary
above./ These
the
and
production.
price
Sales
in
of
cisur¬
products will influence
war
selected
forces
are
increase
types
probably
of
have
goods but will
little
bearing
on
the general price level.
Price v controls
help to restrain
will
,
probably
price increases
during the next few months when
demands
are
ties
scarce.
are
great and commodi¬
factor,
/This
is
tem¬
a
however,
and as
time goes on it will be harder and
porary
harder to impose rigid price con¬
trols
The
on
peacetime
a
life
economy.
of
OPA runs only
to
1946, unless further ex¬
June 30,
tended by Congress.
If price con¬
trol
is
extended
beyond ' that
-period, it will
much
Q very
By
the
doubt
modified
restricted to
:
no
a
be
on
scale
and
of
next
year,
however, reconversion will
been
p
few commodities.
middle
about; completed
%
have
the
and
production of civilian goods will
probably be rising rapidly. [This
country demonstrated a tremen¬
fi dous
the
a
-
productive
and
war
similar
peacetime
next
will
no
during
doubt give
of
its
capacity/ during /the
few
Unless, curbed
years.
by / political
labor
capacity
demonstration
-interference
and
difficulties, tbe rise in civil¬
ian
production will be a very
strong restraining/ influence on
price
increases.
In
1947
the
physical output of civilian goods
might
well
1935-1939
After
be
50%
above
average.
two
or
three
the
~~
-
years
big volume of production it
probable that the upward
of
~
a
seems
pres¬
prices may be relaxed
considerably.
No doubt the most
acute
shortages will have been
sure
filled
necks
on
and
the
cleared
necessarily
principal .bottle¬
up.
That does not
mean
an
important
labor
prod¬
new
There
,
be
1927,
may
tivity
be maintained for
can
the
are
ac¬
sev¬
prices will be.
monetary,
1926534
and
war
be
stabilized
without
wages.
period
of
reconversion
mobilization
in
the
and
de¬
few
After
few
a
and
is
40-50%
to be
differences of opinion
students of the sub-
of
diluted
by
prices and
in
the
to
or
re¬
and
little
have
may
then
record at the clcse of business October
.V; 5%
a
in
or
If,
during
Bank
indexes
level
may
off
paratively stable/
return
to [ the
in
the
foreseeable
the
it
level,
222
Deposits
22,182
35,605
33
39,859
35
;
/■
_
/
■■{ '
52,300
•
60,100
i
24,025
)
'
74,400
1926_„_
1927_^_^_:
;
Time
Time
Deposits
Deposits
72
36
:65
23,024
42,746
33
61
23.251
44,510.
33
64
:
48,323
34
65
25,829
i;.
50,570
34
66
25,764
52,229
34
69:
79,600
;•
26,152
54,678
33
69
;
26,560
55,171
32
[66
68,858
54,479
/
■.
...
W
1939llZI"CIIII"Z/I™I~"I
1940
i94i.»^.//^_i/.^_._._c_
'
25,397
54,389,
:
23,922
52,883 '
44
97
39,963 '■
20,659
45,415
52
114
42,322 }<■
20,024
47
■99
49,455
23,086
55,719
;
-
64,924
"Kuznets'
1941,
estimates
are
tDemand
banks.
figures for
p, 453,
those of
deposits
to
the
U.
S.
adjusted,
41,680
"
45,961
47
93
49,881
,47
*90
30,144
55,052
46
85
31,353
57,258
44
80
30,329
56,565
47
88
70,829
34,152
60,943
77,574
39,489
66,952
96,857
46,274
74,153
54,643
81,963
79,901
,110,161
'
160,700
100,452
§150,000
§125,000
§119,000
§129,000
§135,000
§134,000
1919-1928,
make
.!>;
as
them
adjusted
in
comparable
§183,000
later
86
51
,.■86
series.
[
S.
Government
deposits
the
dinner
men,
Mr.
and
traditions
He
announced
Al¬
available,
be
of
the
that
commemorative
presented
to
all
who
to express their
personal preferences for a gold
watch, a silver tea or coffee set,
a
gold pen and pencil set, or a
invited
tray.
.
■//.'
,
/"/// z./../
:/
Sixty members of the Chase or¬
ganization have served 40 years
or more, and nine have passed the
45-year mark. The longest service
record is held by August H. Tie-
85
109
103
141
17.
67
74
136
Federal
For
Reserve
1929-1944,
meyer,
Produce
currency
outside
.
{Includes deposits in
mutual savings banks and the Postal Savings System, as well
time and savings deposits lx commercial,
:
§Estimated,
/'-• ;* ,,
:V •
'>
Isabel
Miss
ager
McCosker,
Man¬
Chase Safe Deposit
branch at 115 Broad¬
is first in length of service
of
the
Company
way,
and
the
79
77
45
Department of Commerce.
U.
Of
men.
occasion.
silver
among
the women on the bank's
staff.
In the group at the dinner
were
hundreds who started their
,
,
"■:
'
'■
■ ;
with
careers
&
Metals
the
National
Me¬
Bank,
the National Park Bank, the Sea¬
board National Bank, the Equi¬
table Trust
Company and
one
or
decades.
sentiment
will
*,■ f11 /;/
banking
chanics
mergers
women
in an informal address
gave his impressions of his recent
trip to London, Holland, Belgium,
Paris, Berlin and Prague.
Mr.
Campbell spoke briefly on the
will/be
•
;
treasure*
several
in
persons
are
promoted from the ranks.
service rec¬
of ' the entire group exceeds
Following
THOS. A. CLARK
/
through
940
officers of the bank/most
are
*
'
the
63
48
99
Banking Studies,
with
48
54
§176,000
are
:
[
September 27, 1945
the staff of branches
Assistant Manager of the
Exchange
Branch,
25
Broadway, who reached the halfcentury anniversary date on Oct
»;
136,172 "
§163,000
are
members of the 25-year group,
79
71,513
149,400
1947:::::::::::::::::::::::/
'I-
26,027
37
64,200
122,200
System,
..
three
CORPORATION
of
another of the many banks which
have become part of the Chase
Of
797
gifts
25,129
76,500
83,326
_
are on
when
75,800
1928_
1930
.
58
41
1929—
1931_
illness,
military service leave,
drich,
53
37,791
/
•
%
as
38,998
' 21,561
•
69,700
69,600
Time
21,208
■
•
Excluding Including
Time
Deposits
69,300
;—ii
—
*
,
of National Income
tExcluding {Including
to
were
28,500 years.
.
Year)
A*.number
Board
1945. The transfer books will not close.
held
was
In the aggregate, the
future.
Money Supply
of June 30
the
served
of them
at
-
(Calendar
67,300 /
1921
.
(Amounts In millions of dollars) f;
Z/ZZ Money Supply
Income
f
Directors has declared a regular
quarterly dividend of 50tf per share on the out¬
standing Common Stock, payable on November
1, 1945, to stockholders of record on October 15,
National
more
25-year class, 143
and
i
%
as
//. F, Lohmeyer, Secretary
;
The
940
President, were hosts
of 871 men and women
due
on
overseas.
.
prewar
group
and 32
a
com¬
any case,
have
or
attendance.
absent
improbable that prices will
ex¬
least
In
a
in
fast, abroad,
on
who
years
Campbell,
to
the other hand, the
on
Chase
the
:
sub¬
a
the
of
Winthrop W. Aldrich, Chairman
of
the
board, ' and
H.
Donald
we
in, prices,
higher plateau and remain
seems
5,1945, in payment
said stock at the rate of
PRODUCTS
in the grand ballroom of the Wal¬
dorf-Astoria
Hotel
on
Oct.
10.
If the
likely to have
25
honor
in
of
staff
bank
the
hand and
run-up
dinner
members
for
how far and
move
rise is moderate and. hot too
^National
1922:
''
NATIONAL DISTILLERS
Staff of Chase Bank
the
outlook/
,
the
/'/[//['••/[' v/
Honors to Members of
ord
,
A
from May 1, 1938, to July 31, 1938, in-
per annum
///
A
three years.
rapid
we are
over.
on
nothing
learn
to
upon
they
1919-1947
,,
$.
'
/
elusive. Transfer books will not close.
pressure
or
money supply and the national income
/ /
,
$1.25 per share on PRIOR PREFERENCE
paid November 1, 1945, to stockholders of
0 of the accumulated dividend
stantial setback when the boom is
pansion of bank credit, and does
not attempt to push:
wages up
as
A dividend of
.//►-
.
fast
increase
excessive
tK
«
course seems
longer-run
have
changes in monetary
prevent
1 6,
t/.
J
Marquette Railway Company
STOCK will be
dollar
harder
the
situation gets out of
This
moderation,
however, • can
be
achieved only if the Government
puts its fiscal affairs in, order,
policy
1
and more Government
mean
next two
gradually
volume pf business.
makes some
disciplines
prices depends
and other
rise
Pere
the f monetary
our
managed
.
resist
more
we
how
[ The in¬
the accu¬
substantial
to
The
viewy but
moderate
a
a
the
becomes
hard way.
think we may have a moderate
rise of say 15-20% from the pres¬
ent level.
I am inclined to go
along with the latter;
with many misgivings.
flationary influence of
mulated money supply
liquid assets could be
It
history
and
Others
or even more.
[
''t *
I
.
spending;/^ppar6ntly'jthe lessons
j ect. Some think we may have a
big rise over a period of years,
say
down
Under
such
no
harder
general price level
upward. .How much it
impossible to say./ There are
the
break J
are
move
among
CHICAGO
CO.,
/.../
be
cannot
depreciate
prob- groups.. .The easiest
able/that the
will
to
straints.
recon¬
seems
C R A FT ER S
ttAlltI
tHt
such
currency/system, however, there
;
months; of
dic¬
control
under
Inflation
Standard.
be maintained in
order to prevent a general rise in
version, however, it
to
-
may
;f[
permanently
tended
terial decline in the general price
index.
On the contrary, price
prices.
able
tain disciplines on our fiscal and
monetary
policies.
We Z were
jealous of the value and integrity
of the dollar and, in peacetime at
least, we avoided policies that
months, but it does not seem
likely that there will be any ma¬
controls
of
powers
been
.
the
next
pos¬
prevented without remedying the
causes.
Attacking the symptoms
willonly postpone for a brief
period
the /inevitable / conse¬
quences of inflationary policies.
The gold standard imposed cer¬
three years.
or
be spotty during
may
the
nor
conditions.
deflationary forces, at least dur¬
ing the next two
[//■
Fur¬
been
never
Manufacturers of radio and electronic
equipment /■ /
that
stabilize
have
prices
it appears
forces pushing prices upward will
be substantially stronger than the
Prices
stabilizing
islation
policies.
that
the
However,
stockholders of record of November 1st,
to
discovered in
was
the
tators
course
spending,
labor
on
November 15lh
on
prices
while
continuing to follow a policy of
deficit
spending
and
monetary
expansion.
Neither drastic leg¬
Much depends
governmental
upon
stock
common
peace¬
early days of
prices
could
not
to
quarterly dividend of ten cents will be paid
Hallicrafters
important element
it
and
the
rately /the
various
influences
bearing' oh prices and to predict
the
A
a
most
of costs
It is impossible to weigh accu¬
of
controlling
policy can at best
only temporary suc¬
Such
thermore, it has
what
■
to
and
time
same
Controlling prices in
-
sible
assurance
'
supply
time will prove a far more diffi¬
cult task than in wartime.
Wages
eral years.
with
pro¬
continues
money
with
cess.
are
high level of business
a
the
in
-
Z/ //'//
costs, and at the
meet
unless the price
/ out / of / hand,
thereby producing a/ rapid but
temporary
boom
of 'unhealthy
prospects
increase
i'
Government
prices.
periods
but,
gets
situation
;•!.
tries to avoid the consequences of
these
measures /by
to extend the period of good busi-r
ness.
the
//
■ ;
inflate
demands which help
new
substantial
/ Restraining Influences
4
or
/
momentum and creates
The
pe¬
a
than
duction.
Summary of Conclusions
..
upon
,
Furthermore, such
expansion usually
of
ucts and
.
By maintaining artificial,
excessively low short-term
rates and
issuing a tremendous
the
,
riod
monetary
inflationary
an
faster
hand
go
1
'
Government's
also
volume
/
course.
that
to
and
;
with the demands for
expects
,
/
to catch up
DIVIDEND NOTICES
ing of the season October 16. [Ed¬
ward N. Hay of the Pennsylvania
Company was the guest speaker.
automobiles and much longer for
the construction boom to run its
proportions/" the
'.policy
v
4
may
ancing may be old-fashioned, but
if history has any meaning at
all,
it is imperative if this
country
j
;i
up with
Foreign
buying,
for
be very heavy for
three or four years,
or
longer)
It may take three or four years
demands.
Comptrollers Meet
.V-
The New York City Conference
of Bank Comptrollers and Audi¬
tors held their first regular meet¬
production fully to catch
example,
and
It has
NY Bank
several years of good business for
conceived.
in
•
activity^
It will probably take
stage of the economy a more dan¬
gerous doctrine could hardly be
inflation
-
so
At
business
of
hesitation and
some
slackening
in activity, such as those of 1924
of grave difficulties.
;
do
we
the
attempting
lead
thin
The doc¬
in
up
Washington quarters that
not
re¬
monetary
worn
disappeared.
has
part
security
and
Caution
a
been
of
in¬
many
and
have
sense
spending
almost
or
prices
while
war
officials
we
in
those
present
staff of three
during the past
A
had
or
number
been
on
of
the
four banks dur¬
ing the course of these mergers.
Altogether, the 940 veterans rep¬
resent approximately one-seventh
of the entire Chase organization
of
executive,
clerical, building
and service personnel. Frank M.
Totton, Second Vice-President q:C
the Bank, presided as master of
ceremonies
at
the
dinner.
Seymour Rosenberg in
S. Weinberg Dept.
S.
Weinberg & Co., 60/Wall
Street, New York City, announce
Seymour M, Rosenberg, re¬
cently returned from the armed
forces, has become associated with
them in their trading department;
In the past Mr.
Rosenberg was
that
with
Bendix, Luitweiler & Co.
Sarvin Shields With
Central Nat'l
j
i
Corp.
Central National Corp., 22 East
40th
Street, New York City, an¬
that Garvin K. Shields
nounces
has become associated with their
unlisted
Mr.
securities
Shields
was
department,
formerly with
Goodbody & Co., and Laird, Bis-
THE COMMERCIAL &
1850
Chicago, Milwaukee, St. Paul &
Railroad Securities in Peace Time
;•'
Republic Pictures
1965
; '!
<
'
-
,
.
(When
by Patrick B. McGinxtit
Address
X'XX-'^.X.!;
X'X;X
X;
We will discount
X:;;X.;;X,
:■
XX-XX/.';-
Copies on WRITTEN request
in
Broadway
Members New York Stock Exchange
Telephone REctor 2-7340
Bell Teletype-—NY 1-310
minority of railroad
and
Exchange
Stock
stocks, outside of the strictly investment category, which is not by
now selling for at least double the price it commanded at the be¬
ginning of 1944.
Throughout the war boom in speculative railroad
securities it has consistently been laggard in relation to other rail
equities of roughly similar caliber, and this relatively unfavorable
action has
MEMBERS
other
current year
still
is
120 Broadway, New York 5, N.Y,
third higher than
Coast Line is up
Chicago 4,11L
LaSalle St.,
common
less
Illinois Central 85%.
of
ers
than
a
the year's low,
45%, Southern
Pacific 66% and
Northern
55%,
While Cen¬
to date.
tral
While hold¬
stock
Central
have
seen
their stock advance their experi¬
ence
TRADING MARKETS—
•
-y
v,/
Berkshire Fine Spinning
:
Skilsaw
■
stocks
Co.
in
Tappan Stove Co.
Universal Match Corp.
the
extent
based
HA 2-6622
must
as
NY 1-1499
Specialists in
railroad!
-
of
SECURITIES
those
Situations
all
at
that
ized
demobil¬
are
Central
York
has
heavy
pretty
a
INCORPORATED
always
Last year passenger revenues ac¬
counted for about a quarter of
X
1
New York 4, N. Y.
Telephone BOwling Green 9-6400
,
Teletype NY 1-1063
^v
Passavant Joins Staff of
(Special
LOS
to
The
Financial
A N G E L E
associated
come
Jr.
has
—
be¬
with
Street, members of the Los An¬
formerly
was
america
Co.
and
with
up more
Bank-
Banks, Huntley
than 200%
more
as
train
ger
geles Stock Exchange. Mr. Passa¬
vant
passenger
than 200%
from 1940, the rise accounting for
some
35% of the gain in gross
revenues during the period. While
rendered,
Maxwell,
Co., 647 South Spring
Marshall &
Actual
gross.
revenues were
ing
Chronicle)
S,' CAL.
Raymond Passavant,
system
passenger revenues were
Maxwell, Marshall & Co.
an
even
the
expand¬
service
measured in passen-
miles,
than
12%.
gain
in
increased less
other words, the
In
revenues
was
accom¬
plished largely through getting a
heavier load on existing trains. X
Obviously, a heavier load on
existing trains does not involve a
corresponding increase in the cost
of operation.
A very substantial
tain
near
future.
At ,the
same
time it!
is
generally conceded that pas¬
senger service facilities will have
be
improved if the railroads
retain
to
are
even
reasonable
a
proportion of the available busi¬
This improvement will nat¬
ness.
urally
mean spending money. Re¬
gardless of what may be done in
the way of increasing freight rates
to
compensate for higher costs;
are few vrho would Serious¬
ly consider the possibility of in¬
creasing passenger fares; On the
contrary there is e large element
in
the
industry which believes
.
there
to attract business.
In the light of
Central's position with respect to
passenger
business
it is small
through to net before taxes," wonder that its
stock has consis¬
Indicative of how important this
tently fallen behind the proces¬
under such conditions can be car¬
be
York
Boston & Maine
Railroad |§|
X
•'
•..: ".
:
■
'.r
•
•
.'.X'
X'x.:
A. M.
to
individual
Central
in
New
roads
of
sion
in
1940
reported a
$4,500,000 in net
railway operating revenue assign¬
able to passenger business and in
1944 reported a profit of close to
deficit
recent
rail
many
over
There are
who believe
years.
analysts
that it will continue to turn in
poor
Farley Dies
Vice-Presi¬
Andrian M. Farley,
executive of Al¬
Frank-Guenther Law, Inc.,
bert
noon
131
Cedar"
Doctors' Hospital
being stricken Monday after¬
at his office. Mr. Farley, who
was
fifty-seven,
advertising ; agency,
Street, died at
after
Jonas C. Andersen
Corporation, 44 Wall Street, New
York City, at meetings of the
the
had been
Frank-Guenther
Albert
with
Law for
*
past twenty years.
vestment "banking
firms.
Streat and Albert J. Bright were
> ■■■■
meeting of the directors of
Blair Securities Corp., Hearn W.
At
a
elected directors of that corpora¬
tion.
NOTICE: OF REDEMPTION
To tha
HolcUrs ond Registered Owners
of
Southern Pacific Railroad Company
First
Refunding Mortgage Gold
Bonds, Due January 1# 1955..
GIVEN that, in accordance with the terms of the said
Bonds and of the First Refunding Mortgage dated January 3, 1905, executed by
Southern Pacific Railroad Company and Southern Pacific Company to The Equ»table Trust Company of New York, as Trustee (under which Mortgage The Chase
National Bank of the City of New York is now Successor Trustee), Southern
Pacific Railroad Company has elected to exercise its right to redeem, and will pay
and redeem on January 1, 1946, all of the Southern Pacific Railroad Company
First Refunding Mortgage Gold Bonds, due January 1, 1955, outstanding under
and secured by said First Refunding Mortgage at 105 per cent, of the face value
thereof, with accrued interest thereon to January 1, 1946. «
On January 1, 1946, there shall become and be due and payable upon all of
said Bonds, at the agency of the Railroad Company, namely, The Chase National
Bank of the City of New York, Successor Trustee under said Mortgage, 11 Broad
Street, New York 15, New York, the principal thereof, together with accrued
interest thereon to January 1, 1946, and a premium of five per cent. (o%) upon
the face value of said Bonds. From and after such redemption date of January 1,
1946, all interest on said Bonds shall cease to accrue, and the coupons for interest
•
maturing subsequent to
X'
Holders and
said date shall be and become
performance for
reason.
this
X
void.
.
registered owners of the above-described Bonds should
redemption and payment as aforesaid on or after
surrender them for
1946, at said agency of the
all
coupons
Railroad Company, with in the case
maturing subsequent to January
present and
January I,
of coupon Bonds
Coupons due
1, 1946, attached.
said Bonds when presented for payment or may
be presented for payment in the usual course.
In the case of registered Bonds,
where p'ayment to anyone other than the registered holder is desired, the Bonds
should be accompanied by proper instruments of assignment and transfer.
January 1. 1946, may accompany
SOUTHERN
PACIFIC RAILROAD
COMPANY,
By J. A. SIMPSON,
Dated:
Treasurer.
September 26, 1945.
PREPAYMENT PRIVILEGE.
Holders and registered owners of the
the redemption date payment
i receive prior to
above-described Bonds * desiring to
^
of the full redemption price (includ¬
accrued interest to January 1, 1946), may do so upon presenta¬
tion and surrender of said Bonds in Jhe manner prescribed in the foregoing aotice,
fju Chase National Bank of the City of New York, 11 Broad Street, New
ing premium and
York 15.
New York, the agency
SOUTHERN
a
XXX,;
of the undersigned.
PACIFIC RAILROAD COMPANY,
*
■
"■
-By
J. A. SIMPSON, Treasurer^
same
::
& if.
X:;.
Prior Preferred
KEYES FIBRE
Class
Mclaughlin, baird & reuss
A and Common
<
Members New York Stock Exchange
X
EXPRESO AEREO
CHICAGO RAILWAYS
5'»-27
BOND
BROKERAGE SERVICE
Specializing in Railroad Securities
(25% Pd.)
Adams & Peck
63 Wall
Street, New York 5
BOwling Green 9-8120
Boston
Tele. NY
Philadelphia
1-724
Hartford
X
boards of directors of the two in¬
that fares will have to be reduced
ried
can
department.
municipal trading
the
as
spiral.
to
Of
with which
associated in
NOTICE IS HEREBY
probable that costs have
yet completed their upward;
Wages appear, almost cer¬
to be boosted again in the:
not
David;
Snyder were formerly partners
Mr. Robner was also
is
It
November
of
Charles Clark & Co.,
1940.
proportion of the increased gross
& Co.
that
then,
expected,
and if, passenger business
does fall off there will be
passenger
as
A;v Pincus, i;Clayton Snyder, Xttoe;
Exchange ; member;- arid, Edward
A. Robner. Mr. Pincus and Mr.
.
.
business consistently shows losses.
25 Broad Street
be
may
when,
as
business and in normal times this
STOCKS-BOND^
It
competitive trans¬ more rapid melting away of the
portation agencies again get into profit margin in this service. As
full operation.
There appears to a matter of fact if passenger busi¬
be no question but that the air ness Were to- return to
pre-war,
lines
in
particular,
with
their levels it would be even a greater
lowered
rates" and
prospective drag on system earnings than it
even
faster schedules, will be a was in the past.
Inherently the
much
more
severe / competitive
labor cost in passenger business
threat after the war than they is
relatively high and wages have
were before.
<
been advanced materially since
New
Times
the
con¬
are
business
decline sharply
armed forces
and
opti¬
Exchange
York City. Partners will be
opportunity to curtail service as
ly be a reversal of the process of
the last few years, with deteriora¬
tion in the load factor the primary
result of less passenger business.
most
Co., New York
firm, will be
1, with
offices at 30 Broad Street, New
D. A. Pincus &
Stock
formed
dent and account
passenger
passenger
necessarily
our
done
CUARAWTEEP RAILROAD
Inc., and Blair Securities
& Co.,
serious.
the business falls off; It will mere¬
railroads
•
Selected
Blair
$67,000,000. There was a gain in
net
railway operating revenue
assignable to passenger business
of
more
than
$71,000,000. This
represented 78% of the aggregate
gain in net operating revenue dur¬
ing the period. If Central's pas¬
senger business should revert to
pre-war levels the effect on net
earnings would obviously be quite
been
towards
inclined
the
has
in
rise
Even
Central's
which
to
the
mistically
vinced
Teletype
,
President and a director of
as
prosperity
on
future
STREETX
NEW YORK 5
Telephone
To Be Formed in N. Y.
Jonas C. Andersen was elected
the
time
war
Van Tuyl & Abbe
strongly
so
to
business.
72 WALL
dis¬
been
of the major rea¬
one
Blair Organizations
The big trouble is: that just as
other rail there was no necessity for ex¬
improved status of panding service in line with the
the entire industry may be found increased gross there will be no
respond
Magazine Repeating Razor Co.
.
has
whole
D. A. Pincus & Go.
for the failure of Central tot
sons
Durez Plastics & Chemicals
X
the
on
appointing.
Probably
X::-h'—
Andersen Pres. of
the^
in
continued
been
leading Security and Commodity Exchs.
So.
contracts.
and If Issued)
at
Ernst&Co.
231
losses
assume
issued"
120 BROADWAY, NEW YORK 5, N. Y.
New York 6
-
Telephone—DIgby 4-4933
iV?X'Vr. v.y pfj-, : $/<
t.
New York Central common is one/of the
York
profits and
"when
above
SUTRO BROS. & CO.
Railroad Securities
New
the
New York Stock Exchange
.
Common
;
,
Pacific Railroad Co.
-'/;•/'\;x X- :X-';,'!v
;
Members
Preferred
•/'
'
'v
-
v
pflugfelder, bampton & rust
61
,
'•
Wiff
Debenture Income 4s,
,r
:
XX :'-XX' -:;
XKxX.X
new
X
■
An
Corporation
-
'
Thursday,"October 18, 1945
FINANCIAL CHRONICLE
>
1. h. rothchild &
co.
Member of National Association
of
Securities
Dealers,
Inc.
52
wall
street
HAnover 2-9072
n.
y. c. B
tele. NY 1-1293
ONE WALL STREET
TEL.
HANOVER 2-1355
X NEW
YORK 5
TELETYPE NY
1-2155
.Volume
162
THE COMMERCIAL
Number 4430
& FINANCIAL CHRONICLE
Stock
Hirsch & Go. Answer
)
:
SEC
(Continued from page 1821)
at
the
end
of
1929, when
$16,931,000,000.
it
was
Coincidental with
this expansion,
bank deposits in¬
creased greatly, an
important fac¬
tor
the
to
ture,
whole
economic
that there is
so
abundance
of
now
credit
a
credit has
lic
to
of
been used by the
pub¬
securities, first
discount bonds, then discount
pre¬
ferred stocks, and at the
present
the
of
vestors to
this
dollar,
seek
a
causing in¬
to
means
ties capable of price appreciation.
Therefore,
the
same 1 demand
'; In the culmination
stage of the
bull market of 1920-1929 the
the
at
was
although'
than
the
25%
of
maximum
rate
long-term gains, with
Shoft-tenri •"g0ihs> considered • as
current. income, loomed large to
investors
who
had
substantial
.
profits.
rjn fact, in 1929 the capital gains
tax was an important reason why
insiders
who
owned
large blocks of corporate securi¬
ties did not dispose of them.
This
reluctance to sell occurred in spite
of the fact that the insiders be¬
lieved that their shares were sell¬
to
;
the
market
of
in
view
of
and
money
will
modified,
since
there
not
and
be
to
seem
large amount of new equity
issues, the supply
stocks is likely to re¬
preferred
common
relatively* limited for some
come.
generally has
lim¬
a
knowledge of the economic
forces controlling supply and de¬
but
rather
influenced
is
and made uncertain by the news
events occurring from day to day.
These
minor
irregularity
factors
and
even
market reactions.
cause
may
substantial
OppdHunity to
purchase stocks is afforded by
re¬
actions in market prices when the
fundamental
forces, as they do
clearly
term uptrend.
now,
indicate
so
v
long
a
1
.
bullish
both
supply
and
certain
are
the
demand,
factors
nearby
major
v
there
which
make
development
of
a
unlikely;,
bear
movement
Savings by
precedented
2. The present
expectation
by the Federal Reserve
System, because they did not wish
to 4 risk
losing
practical
voting
un¬
the potential seller
tax cushion and
of
drastic
tax
requirements
of
Margin
Deferred
demand for good&
5. No wild price inflation.
6. No large private debt.
.
7; Strength
of financial insti¬
that
certain
made
,
by
cash
for
delivery
the
V 1'
1
The
real
1928-1929
the
basic
boom
of
causes
two
were
of
the Fed¬
eral Reserve System, the fountain
of credit, supplying the funds to
the
the
demand,
capital
stricted
gains
our
second,
which re¬
conditions
National
ment of the
Eco¬
the
by
pressly
to
specified a 7-day period,
would also be within
7-day rule.
Needless to say,
the 35-day rule is applicable,
that they
so
the
months
prior
-
the
to
if
none
of the transactions
even
a
The show
sued
to be
Cleveland
paid within
date
of
seven
the
purchase
of
cause
the
of
Depart¬
U.
S.
Exchange Act
Cleveland office if any
been
not
T
under
the
paid
defendants
the
on
mentwasmade
a
very
7-day
Mr.
town.
pay¬
Treasurer
few days
investment
pe¬
is
Brown
of
First
.
v
,
i
:
:■
*' "'T '
Vfc'o
i-u. •
*
•*'
'V
-v
•
•
..
■*
4
'•
v
-
General
rations.
concern.
t'
•
l. .•••■•
1
f
.
1
•
..
:
-v.-.'."*
" •!:.
9. No inventory accumulations;
taxes),
Mortgage Gold Bonds
10. Foreign trade low, but pros¬
pects
SERIES E,
4%%, DUE JULY 1, 1977
Great Northern
Railway Company has irrevocably directed The First National
City of New York to publish appropriate notices calling for redemp¬
on July 1,
1947 the entire issue of the above mentioned Series E Bonds
outstanding at 105% of principal amount plus accrued interest to said date.
Bank of the
IP
tion
NOTICE OF REDEMPTION
then
4444444:4:' 44 '■ 4 '4\4
Great Northern
to the holders of
from
IMPROVEMENT MORTGAGE
SERIES
6% BONDS,
NOTICE 13 HEREBY GIVEN that Northern Pacific Railway Company has elected
off on January 1, 1946, all of the above-mentioned Refunding and Improve¬
ment Mortgage
6% Bonds, Series B, at 110% of their principal amount, together with accrued
interest on such principal amount to said date, in accordance with the terms of said bonds and
the provisions of Article Ten of the Refunding and Improvement Mortgage, dated July 1,1914,
from Northern Pacific Railway Company to Guaranty Trust Company of New York and
William S. Tod, Trustees, and that on January 1, 1946, there will become and be due and
payable upon each of said bond*! at the office of J. P. Morgan & Co. Incorporated, in the
Borough of Manhattan in The City of New York, N. Y., the principal thereof, together with
a premium of 10% of such principal amount, and accrued interest on such principal amount
to said date. From and after January 1, 1946, interest on said bonds will cease to accrue and
any coupon for interest appertaining to any such bond and maturing after said date will
v
to redeem and pay
4
Railway Company hereby offers to purchase said Series E Bonds
1945, excluding
up to and including December 31,
thereof
ered
B, DUE JULY 1, 2047
of
become and be null and void.
holders
Saturdays, Sundays and holidays, at prices dependent on the date of delivery for
purchase, such prices decreasing from 111.99% of principal amount as to Bonds
delivered on September 24, 1945 to 110.93% of principal amount as to Bonds deliv¬
NORTHERN PACIFIC RAILWAY COMPANY
REFUNDING AND
the
'
_
date of purchase will be added in each case. The Company has prepared a table
showing the price so payable as to Bonds delivered on each day (other than
Saturdays, Sundays and holidays, which days are not delivery dates) from September
24, 1945 to and including December 31, 1945 and will be glad to advise bond¬
holders thereof upon request. Holders of said Series E Bonds desiring to accept this
should
deliver
their
Bonds
all
with
unmatured
appurtenant
coupons
to
The First National Bank of the
New York
as
Coupon bonds should be presented and surrendered for payment and redemption
on December
31, 1945, to yield in all cases }4% to July 1,. 1947, the date
redemption. Accrned interest at 4*4% per annum from July 1, 1945 to the
offer
City of New York, at its office, No. 2 Wall Street,
15, N. Y. against payment of the purchase price and accrued interest
'
aforesaid.
as
aforrsaid with all coupons payable July 1,1946, and thereafter attached. Coupons due January
1,1946, may be detached and presented for payment in the usual manner. Interest due January
1, 1946, on fully registered bonds will be payable only upon surrender of such bonds for re¬
demption. Registered bonds, in cases where payment to anyone other than the registered owner
is desired, rnuit Lj accompanied by proper instruments of assignment and transfer.
n
NORTHERN PACIFIC
RAILWAY COMPANY
SERIES I,
3)4%, DUE JANUARY 1, 1967
Great Northern
Railway Company has irrevocably directed The First National
City of New York to publish appropriate notices calling for redemp¬
January 1, 1946 the entire issue of the above mentioned Series I Bonds
Bank of the
By
New York,
A. M. Gottschald,
Secretary
Y., September 26, 1945
tion
then
on
outstanding at 104% of principal amount plus accrued interest to said date.
Holders of said Series I Bonds may
immediately obtain the full redemption
price thereof including accrued interest to January 1, 1946 by surrendering such
Bonds with all unmatured
appurtenant coupons to The First National Bank of the
City of New York, at its above mentioned office.
4?:
OFFER OF PREPAYMENT
Holders desiring to
receive immediate payment of the full redemption price including
1946, may do so upon presentation-and surrender of said bonds at the
& Co. Incorporated, in the Borough of Manhattan in The City of New
York, with the Januarv 1, 1946, and subsequent coupons attached.
interest to January 1,
office of J. P. Morgan
GREAT NORTHERN RAILWAY COMPANY
St. Paul, Minnesota,
September 24, 1945.
?."
'';
yv ';i: ? •'*
■:
: •-v—
•
in
Securities
f
By F. J. GAVIN, President
Secretary-
Mahoning,
Great Northern Railway Company
'...-s-A .j"*:
;
with
must show cause
^%y'
C.'jy.y.
.
alleged.
were
■M
:
Court
connection
in
lation
had
after expiration of the
>
4
is¬
companion cases instituted,
by the SEC.
Violations of Regu¬
notify
paid, that in most instances
Securities
Corporation, New
York, N. Y.
:yv
;
were
three
the
securities to which it related, and
the trust company was directed to
our
orders
Tuesday by Judge Robert N'.
Wilkin
days after
involved
technical violation."
The
why
preliminary injunctions should not
be entered against them at a hear¬
agreed to do. Through oversight, ing in Cleveland on October 31.
it did not perform ite agreement
In
addition to Hirsch and Co.,
in that regard, since at no time
they are: Butler, Wick and Co. and
did we receive notice of the non¬
S. T. Jackson and Co. of Youngs¬
payment of any of its drafts. This town; A. E. Masten and Co. of
oversight on the part of the trust Pittsburgh, and their customers,
company is doubtless explainable Richard C. Brown and the First
by the fact that all the drafts were Mahoning Company of Youngs¬
is changed
Investment
credited
tions to the trust company we ex¬
6th day after the date of the pur¬
chase.
This the trust
company
likely in the foreseeable
future.—Reprinted from the Oct.
11, 1 1945,
issue of
"Investment
•
from
account with it.
draft
appear
and
"Although it seemed likely that
35-day rule of the SEC ap¬
plied to purchases of the kind
above mentioned, in our instruc¬
had been advised by us in writing
that each of its drafts would have
the
that demand is greatly reduced
the supply of stocks is broadly
nomics
been
or
the
Mr. Brown, the trust company
or
stock market will be when either
Timing," published
had
be
the
were
that
paid and the
been
transactions with
no
for them of any kind.
showing
company
"Several
1928-1929, but they are present
with multiplied force.
4;> A time to be fearful about the
such
with
the entire period was
about $285,141, as distin¬
guished from the $1,250,000 men¬
since had
the
to
were
account
all their transactions
in
the
newspapers.
In
1945, we learned, for the
first time, that the drafts of the
trust company had not been paid
on time; whereupon we promptly*,
closed their accounts, and have
first purchases of securities
by us
for the First Mahoning Company
supply of stocks and
caused
the
people
who
knew
values to hold stocks even though
they were obviously over-priced.
Today these two basic factors
for higher security prices are not
only
present
as
they
were
in
No
trust
drafts had
payments
the
increased.
the
the
and,
tax,
our
company; and advices
received from time to time
Government; first,
create
payments
to
of
in
us over
tioned
payment' of
payment
trust
the
acts
On
the
credited
444
Conclusion
-
against
draft.
drafts
with
June,
instructions to ship the securities,
with
the
trust company's
draft
attached, to a Youngstown bank,
purchases were
the New York
on
us
involved
only
company in Cleveland, where our
firm has its Ohio
(account, with
Dow-
for
a
period of only 12
months, and the aggregate amount
8. Financial strength of corpo¬
11. Guarantee of bank deposits.
taken and
the
promptly paidi
First Mahoning Company^
were customers of
ours
our
York for customers located in the
Ohio area.
In each instance the
securities were shipped to a trust
It appears
newspapers.
.
k
12. Unemployment insurance.
are
a
followed
we
"The
75%.
4.
or supplier of
stocks, because he must pay 25%
of his profits to the Federal Gov¬
ernment (to say nothing of State
if profits
morning's
and" Research
tutions.
-
Today the capital gains tax is a
high hurdle? to be- overcome for
so
Cleveland is derived from
and Mr. Brown
cuts.
3.
the
afforded
individuals
in amount.
three
alleged
follows:
to
that had not been
Brown, an officer of the corpora¬
tion, both of Youngstown, Ohio.
In making
delivery of the pur¬
chased securities
S. District Court in
These are:
1.
and
riod, and that at no time was ln$
large amount involved in drafts;
concern, and by a Mr. Richard C.
customary procedure with respect
to cash purchases made in New
Jones Ticker Report and from this
or
the underlying
indications given above,
of
support
his
of these fundamentals
r
Other Bullish Factors
In
against
before the U.
so
credit
control of their corporations.
be
does
The public
ing at values far in excess of the
most
optimistic
price-earnings
ratio estimates.
Moreover, these
insiders, being, as a rule, large
holders, would not supply stock
abundance
tax
ited
lower
on
so-called
gains
time to
rate 'of
appreciably
present
time
main
capi¬
12V2%, after specified exemptions,
and,
present
mand,
Source of Supply
tax
proceedings instituted by the SEC
the
of
for securities, in a multi¬
plied form, exists today as existed
ill the bull hiarket of 1920-1929.
gains
the supply of stocks to the
and
factor
tal
margin rule violation, as
"Our only information as
1
•
yesterday
proceedings
the
on
capital gains tax is an effectively
restricting influence, withholding
.
that
companies and their ability to
finance
through low-rate bond
shrinkage by buying securi¬
interview
an
brought
'
evident
financing of an investment grade,
due to the large cash resources of
the
well-established
industrial
offset
in
commented
other firms by the SEC for
any
time common stock equities. This
demand for securities has resulted
power
<''
partner of Hirsch and Com¬
the
':;V.
is
market
there is
little to indicate that the capital
purchase
importantly from the continuous
shrinkage : • lri^^theK purchasing
V
A
pany
' '■
At
and
money
substantially
before
reenter it profit¬
it
Hence
to
market
the
thereon
can
ably. ' r
super¬
available
the
react
the investor
44'
portion
paid
must
pic¬
the public.
'£$ A
taxes
Charges
Exchange for the First Ma¬
honing Company, an investment
an
THE COMMERCIAL & FINANCIAL
*35 2
If
producer credit—and
are willing to resolutely enter the
field, they will uncover an almost
limitless
source
of demand for
£
^erstand clearly is that total de- portionately
received more war
posits will continue to increase' contracts and thus had a greater
increase in deposits. The natural
lor some time. There are several
Let us look at
iand
holds
companies,
insurance
•«
banks
other than
1. Business,
;*
*i.
$32 billion of government secur¬
$10 bil¬
lion of this consists of tax antici¬
ities.
though
Even
some
'
redistribution
'
;
credit.
And, I don't have to
that the rates in
field are much higher than in
other field—particularly if
mind
leveling out over
or
of
these
deposits
should be extremely favorable to
the
country
give
which
<to banks,
'deposits. '' •,'
sold
securities
more
means
increased
means
'
•
j- 3. Banks will continue to play
Jan important role in financing the
\ budget deficits, This will Increase
deposits.,
/<
The
4.
gold flow has been re-
•versed, and imports and releases
from earmarking are once more
exports and ear-1
marking. The other nations of
the world have more gold than is
generally realized. They need our]
goods desperately—so, unless another lend-lease system is devised,
than
greater
we
the
of
especially
be
investors.
1
-
/««
most
bankers
expect.
This
will increase deposits and reserve
balances.
6.
-
The
of
disappearance
the
black
market, increasing unem¬
ployment, and migration of work¬
ers
will cause pocket money in
large volume to return to the
banks.
After the Christmas shop¬
ping
season,
turn
flow
of
if not before, a re¬
currency from do¬
mestic
holders f should
start
in
volume.
This will increase de¬
posits and
balances. Par¬
reserve
enthetically,
I
that $4.7 billions of
remind
you.
currency
did
may
the job in
$28
1929 whereas we have
billions in circulation now.
Obviously,
could
be
such
the
increase
mous
in
While there
tors
which
deposits,
swollen
a
of
source
the
total
enor¬
deposits.
still other fac¬
are
will
an
tend
to
increase
foregoing
seven
amply
But
warrant * my
conclusion.
mark this: Opposed to these
six powerful forces increasing de¬
posits I do
economic
not
know of
factor
which
quence
of
will
a
any
single
reduce
de¬
;
Shifting of Deposits
While
posits
the
total
for
the
country
in
the
next
crease
of
de¬
will
in¬
12
months,
a great deal
of
shifting
deposits,
criss¬
crossing from bank to bank and
there is bound to be
of»
from
another
and
section of the country to
as
workers return home
one
industry shifts to secure
competitive
advantage.
Uneco¬
nomic plants and plant locations
as
will be abandoned.
While deposits will leave New
England for Detroit and Dayton
and South
Bend, on balance, New
England, in my opinion, will gain
more
deposits than she loses.
As
know, the volume of. deposits
in New England did not increase
during the war anything like as
you
much
as
in the rest of the country.
Other sections of the country
7-.7
It
pro-
whenx you
potentialities
of
As for loans
credit.
consumer
will
there
s
;
..
V
r"v?
■
'
-
to
to
fi¬
^
>'
Now, let
for
The
loans.
contract termina¬
and
home repair
ventures;
will
loans
demand —but
some
also
supply
be
probably
should increase but
no
Positive
to
necessary
loans
be
can
one
action
directly
est
will
imperative if bankers
are
develop the
loan
field
be
the
the
of
the retired judge who was elected
cashier of the local bank. A man
presented a check to be cashed.
"Don't know ' you," greeted the
sented
credit
a
card, and
to
The
a
customer
card,
"Not
Government
will
sufficient
to
hang
a
man
least,
Still
other
bankers
instead
look
the great business,
from
come
dealing with the
man
the street rather than the
man
on
the avenue!
mind
grants
got
the
who,
no
off
South
spied
Such bankers
of
me
the
Island
New
old and
boat
One
started
at
City,
but obvi¬
ously. wellfilled pocketbook
sidewalk.
they
York
worn
re¬
immi¬
than
more
Ellis
Ferry,
an
Irish
two
the
on
-
..
.
.
.
be
1.
impor¬
few
a
Both
wars
turn
even
demands
in.
the
does
not
.
necessarily follow '
*
that they will spend
-w..
ticularly true of the Japanese
which was expected by
attention
the
months.
Last
authorities to drag
at the very
,2. Conversion
r
is
at
much
dared
a
faster rate than anyone
picture
October
neither an automatic machine ?
;p
animal.!
nor- an
pP
■%
*.
*
s
t:
*
,
*
K
*
:
p'.. ■
to
I
f
Although
hope.
take
time
some
will
it
durable
for
goods to appear in
consumer
the market in quantity, con¬
riri. particular^ if labor- per--, v
.
sirt$ in'its policies
ing
>
output;
of restrict- P
featherbedding,
-
ppUvp ' 'V r L
;'et epppr.
3. Boompin^fhe
>
.the^psychologicaleffectof
whicb^is-greatp However,! I
believe that'the labor ,'diffi-P
?
culties "will; exercise, an ad-
.,.
effect
verse;
price of
the
on
equities. !.. p' \ pP , 77 p I
! Irt4 cbhclusipn,- I,. expect • somep
p
what
higher prices because of psy^
chology,- - supply rof ? monejr and
credit,'d taxesi - etc^buf'f 1 y cannot
conceive of run-away inflation or
sharp price, increases of- any
even
great consequence. To "stick my
out" I would-say that the
neck
of wholesale prices
index
which
will a year from to¬
day not be higher than 115 or
lower than 95. Hence, I personally
is today 105
inflation
neither
nor
defla¬
You can't be blamed
about 7 economics as
discouraged.
if you
feel
Mark Twain did about the
On
of German!
had
which
cises
study
of his exer¬
one
corrected
been
his teacher, Mark
wrote, "The grammar of this lan¬
guage consists wholly of excep¬
and returned by
exceptions constitute
economics
Really
But you must
bad.
is not that
guard against
ascribed
habits
mental
the
to the
the rules."
exceptions
and- the
tions
to
a
lady by Henry James when
he said, "She thought in italics
and felt in capitals."
young
Halsey, Stuart Group'p
Sells Terminal RR. Bds.
Halsey. Stuart & Co., Inc.,
associates, Oct. 15, won the award
comnetition
bidding
close
:n
New York
Connecting RR's
of
offer|
in
!>
quickly
cure
the
shortage
problem in most lines. (Housing is a notable exception.)
Co., Inc., and associates reoffered
the bonds to the public at 100 and
goods
Interstate Commerce Commission.
returning
keep interest rates
i
The movement of
market
during
rates
3.
the
out
year
changed
has
and
it
not
will
change
The
and
-
the
to
currency
of
inflow
tinued
at
detail
some
the
With
bond
bound
7
..^
respect
to
prices,
to
■
'.'7 T -
4.
Government
fluctuations
are
take
place.Deposit
Payrolls
the
for
years,
a
are
first
and,
declining
in
time
lot of
learning
war
about
many
workers
unem¬
ployment. These have both a
be¬
.7
rationing
all
controls either have been, or
will ; be,
quickly
removed.
Goods, of course, are the real
}'are
direct and indirect (psycho¬
logical) deflationary effect.
p
ginning of this talk will cause the
demand for prime investments to
continue strong. From all angles
the money market is in a favor¬
able position and the powers of
the monetary authorities over the
money market remain almost ab¬
solute!
even scarce
that
f.'
1 :
:
increase of deposits as set
in
such
are
I
I
the banks
gold
will
broaden the credit base. The con¬
forth
Supplies of
1
antidote to inflation pressure.
during the next 12 months.
of
a
5.
•
| ^:
;
:
.;
Pv.
'
r
The end
summary:
a.
t
P
war
finds us
in the best position of any
country in the world as indicated in the following brief
No
direct
■
war
at
b. Productive facilities far
be-
y yond
the
the
needs
of
*
*
ur
i,t ft**.',
itnti'
i
l
i
*
-
in new first
1975. Their
mortgage bonds, due
price of 99.2799 for
27/& % coupon. Halsey, Stuart &
named
bid
a
a
interest, subject to approval of
th£
The issue will be guaranteed as
|q
principal,
interest
and
sinking
fund payments by Pennsylvania
RR; and trustees of the New Yor}<,
New Haven & Hartford RR. Ne\y
Yorfc Connecting ; RRpwilt apply
the
to
proceeds
redemption 7'dfl
1945,,. of. its
Dec.
1,
first
mortgage
2Vz%
outstanding
bonds,
ries A.
R. H. Noland
Rejoins Staff
Of Lord, Abbett
IV
& Co.
Lord, Abbett & Co., Inc.; 63 Wall
Street. New York City, announce
that
Pv
damage
.home.
>.:",'.p:
J
of the
of 7 $25,982,000
ing
Robert
>
H.
Noland
has
re¬
joined their organization as New
England representative.
Mr. No-
land has been
a
serving
as
Lieut*
Colonel in the Army Air Corps.;
ft
'
■
-ft-ft.
' t
.
market,
stock
:
can
goods in general are
to retail Channels
rising tide which will
sumer
..
-
authorities
return
» •• t
•
2;, Labor difficulties; which are
P
now "had -and. ^promise to be >
5 p, even moreserious/, majr re-* v:
p.
strict the production of goods p
/
•'
*
• •
if. Such
conclusion-;, depends
too ^
much on, as the psychologistsP
put it,-, behaviorism.
Man is
a-
.
■*
United
States; furthermore, just be¬
cause people have money it
p
war
another year
minimum.
our
Here
ended earlier than
anticipated. This is par¬
was
amply borne
that prediction.
The easy money
policy of the Treasury has not
to
in the next block!".
meet
reassured this dis¬
tinguished audience in these exact
words: "There is no question in
my mind but that the monetary
past
pick it
up but the other said, "Don't take
that one, Pat.
We'll find a new
one
will
seems
military
them to do so."
have
on
appropriate here to
observations on the
reduction in the danger of infla¬
tion. Let me summarize, as our
time is getting short:
"reluctant
now
12
money
far
successes
It
down, or push them even lower,
if they feel it is advantageous, for
of
put
to
rates,
make
categorically
credit
own
us
next
developing the
potentialities in their
front yard. They forget that
vast
a
to» investments.
be careful."
have
should
moment
is encouraging. First, money rates
will not change materially in the
evi¬
well-
a
pattern of differenti¬
which I do not for a
anticipate, those put up
certainly will not be the rates on
up
Investments
"That may
have
now
we
Government
probably
dragon."
it has not been in the
be
not
Let
be,"
said the cashier, "but when you're
paying out money, you have to
afield
that
on
iden¬
less
on
can be pro¬
fantastic:
But, goods
duced to
fear
ated interest rates and that if the
last 12 years.
business
a
next year!
established
tuned to make them and
At
with
will be active
bank eligible securities;
the
pre¬
tification," said the cashier, push¬
ing the check back. "Why, Judge,"
protested the man, "I've known
dence than that."
out
ac¬
the next year, more than
before, loans will *e what
you make them. I urge you to be
aggressive in seeking loans espe¬
cially the smaller loans. Remem¬
ber, if you don't make the loans,
lot of letters addressed
himself.
volume of
ever
changed!
When it comes to
loans, too many bankers act like
cashier.
bank
receivable, particularly at
the manufacturing level. As credit
terms are lengthened and volume
rises, the demand for such finnancing should be- very, substan¬
has
new
commercial
for
normal
a
field
loan
credit.
brings up the well-used tion during the next-12 months;
When you have to study all of
ogre of inflation. There are some
who say that the Government will •these' new developments in 7 the
have to put up interest rates to
field of economics and finance, in:
prevent inflation. Let us dispose addition to doing your daily bank-of that, in short order by pointing
ing work, you have a right to feel
counts
to
are
potentialities
because
and
of
tion
attitudes
new
hand, we have
inflationary forces:
This
accumulating inven¬
financing the restora¬
of
purpose
tories
__
New. methods and
other
serious
p 1. Large volume of money and
bor-r
will increase
ebming^yeari ^The1 invest¬
market
crease
the
credit
The great¬
indirectly.
or
demand
or
the
carries
credit will undoubtedly be for the
loan volume.
secure
bankers refuse
Government
In
certain, as this will depend almost
entirely on the bankers them¬
selves.
outlet for bank credit,
an
unless the
individual
of: the
.
issues, refundings, secondary
distributions, and even a revival
of foreign securities.
But when
you consider
this demand, don't
jump to the conclusion that in¬
terest rates will go up. Don't ever
for one moment forget that the
adjusted bank deposits (eliminat¬
ing
Government and interbank
deposits)
and currency outside
banks are now nearly $ 140 billion
and that the total, will further in¬
tial.
of
On-the
three
in
place
new
.
Loans
volume
foregoing are definitely
anti-inflationary forces,
p ;
can,
Governments,
ment
nothing startling. The volume of
mortgages will increase but only
analyze the outlook
us
Ppv
The
•
in1 the
carry
are
rehabilitation
<v
•„
Outlook for Bank
both credit and capital.
The4 volume of financing; other
than
start various small busi¬
loans to
in
and
position
rowers.
received from
Veterans will seek
payments
the Treasury.
ness
loans
some
until
concerns
tion
be
reconversion
nance
indis¬
seems
next 12 months.
.
,
remember t that
along more conventional lines, I
am
not
optimistic.
Of course,
putable that total deposits of the
country will increase in the com¬
ing year. It seems even more in¬
disputable (if that is possible)
that deposits in New England will
increase, particularly during the
you
grand
principle of economics
start to estimate the
conse¬
posits.
'
summarize:
To
porations and individuals— p
''
•
the
prices and yields of the fully taxexempts; because of tax modifica¬
tions. and changes in the credit
is: "Human wants are insatiable."
Just
...
..
you
take
undoubtedly
The first
the
to
headlines,
the
:
'
expect
fluctuations in the partially taxinside track,> ; yet you- will com¬
exempt and also in the fully taxpete with them for automobile exempt securities^ On balance, I
and refrigerator paper: and neg¬ I do not nbw anticipate
any conse¬
lect the far more important, less
quential change in either yield or
competitive, and more profitable price during the next 12 months
field of personal loans.
When I ; on the partially tax-exempts. But,
say
more profitable, I mean, of
as you well realize, the fully taxcourse, if properly developed and
exempts are quite another mat¬
handled by men who know the ter.
Considerable
changes
will
<
Income
from
this
will continue to swell de¬
posits..
flow of currency
The return
from abroad will be much heavier
York
By far the strongest financial position of banks, cor-
c.
;
p
As tax reduction discussions hit
field.:
increase
favorable
pp' country (if such a»thing
can he possible!)., ■ ;
Vpp;
.
Trade with Europe promises to
source
balances.
other rates.
broke out in
which
war
be in large volume in the near at a slow rate. Transactions aris¬
future,
at least.
International ing out of foreign trade will in¬
trade and revival of shipping will crease and should to some extent
This will increase deposits and re¬
than
*
growth of New England deposits,
And last, and most important,
expect the inflow to the New England is a great center of
may
5.
certainly
and what a
going to be, as witness
City last month. The
sales-finance companies have the
of
England will
local deposits.
rate
New
sales-
dollar
billion
companies,
battle it is
the
gasoline rationing
and the gradual elimination of
railroad and plane accommoda?
tion restrictions will permit this
travel revival to get under way,
and the return of tourists to New
banks to become a golden torrent
serve
finance
backlogs.
goods
consumer
Abolition
the
battle
the peacetime prospects of the
notes, it seems clear that
Ultimately from $15 billion to $20 aeroplane manufacturing industry,
which are placed at 5 to 10% of
billon of these securities will be
shifted directly or indirectly to war volume, I do not see how
the banks as business needs funds New England can fail to; gain a
{for one purpose or another. This large volume of s deposits at. the
expense
of
such
"hothouse"
ivill increase deposits.
growths.
JL 2. Of the $46 billion of sayings
In J addition
to thi$ bver^al^
bonds now outstanding, $13 bil¬
countrywide,
leveling
process,
lion consists of F and G bonds in
New England deposit growth will
(which the rate of redemption will be favorably affected by certain
be slow; Of the $33 billion of E
special factors. Thus, New Eng¬
bonds sold, $11 billion is in de¬ land is the center of small manu¬
nominations of $500 to $1,000, and
facturing; in
steel,
iron, brass,
jhere, also, thex redemption rate
copper, and other
metals which
lis considerably less than in the
will profit handsomely from the
smaller bonds. But redemption of
building boom which promises to
'the balance of $22 billion of E
sweep the entire country5.
|bonds may be expected to con¬
I also look forward to a boom
tinue, in fact, may possibly accel¬
in travel in America.
I have a
erate. All in all, at least 25% of
curious
theory that the travel
the total of series E, Fand G
backlog is more real than some
bonds will probably be redeemed.
sibility that the bill rate may be
unpegged, in which event it may
rise to % pr % of 1 %, I do not
expect any material change in the
is
are
pation
This
companies. But
exactly what most of you
not doing!
You are going to
that
thought to
a
eligible issues, especially the me¬
dium-term
obligations, will re¬
main firm, .While there is a pos¬
the sales-finance
look at the enormous wartime in¬
crease
in deposits in, say, Cali¬
fornia and then
any
you
get out of the areas preempted by
Frankly, when I
England.
New
re¬
this
you
Thursday, October 18, 1945
shifts,
tax
debates, rumors
of
change in Treasury policy, and
plain old-fashioned scalping and
chiseling will cause{ changes in
the market.
(As you know, many
bankers still expect the yield on
Governments to go up!)
But, on
balance,
the
Government bond
market will hbld its bWm Bank
learn
to
moved from
(Continued from page 1819)
Reasons for this.
willing
are
credit—and it is far re¬
consumer
The Financial
the more important ones:
banks
CHRONICLE
■
7
*f ■!
'>■<1
;
•
.
•Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number.4430
Harvesting In Canada
Canadian Securities
Prairie Provinces
Snow and heavy rains have
P »/» 'p * +
Province - of
■
according
Oct.
the
to
It
further
was
the
4
quality of early returns
the
prolonged
Markets maintained on all
wet
un-
eshed grain.
lows:
•
issues* both internal
In its
as
-
ftft
.~
fi
t 1
i
\ ,£•
i
»
-w- '
'
''O.-.-j'i.
"V S -.J.
vanced
JDohimion Securities
40 Exchange Place,
'
3
"."i
l u- »
but
districts
returns
will
be
in
nearly
below
all
average.
completed under favorable condi¬
New York 5, N.Y.
v/' /.'ft'/ J ftft..V vftftftftft/ftftftft
tions."
:f • //;C4
■
/ft
>
1-702-3
System Teletype NY
'
•
£
ft
"•*••' '•
•'; ft' ft ft
.
i/-
Twombly Heads Kenny
'•
Foundation Drive Div.
Dresser Industries
H.
Pfd. Shares Offered
ft? Public offering
was
&
16 of ' 60,000 shares of Dresser In¬
dustries,
Inc.,
preferred
stock
-< cumulative) 3 % % Series ($100
par) convertible prior to Sept. 15,
into V common stock at the
.1955,
2%: shares of
rate of
common
■each share of preferred.
iering
was
for
The of-
made at $103 per share
-dnd accrued dividends by a group
of 27 underwriters headed by
riman
Har-
Ripley & Co., Inc., and in¬
cluding Reynolds &
Co.;
Glore,
Forgan & Co., Kidder, Peabody &
Co. and Lazard Freres & Co.
The
preferred stock is subject
to
redemption at $107.50
to
Sept.; 15, 1950, and $105 there¬
after to Sept. 15,
thereafter.
per
McKay
apopinted Chairman of the
Investment Division in the 1945
Sister Kenny Foundation drive to
fight infantile paralysis.
ft
Anouncement
ment
ation
fund
of
at
It is also redeemable
an
$103 <
annual
per
oper¬
retirement
the
by: Bing Crosby,
Chairman, along
drive
.
By BRUCE
.
long-standing blot
lines
of the annual
Red
Cross,
Community Fund and similar ap¬
peals.
on
U.
originally drafted, the new
treaty did not draw a line be¬
tween deliberate criminal acts and
exchange rate, with the premium
on American dollars closing from
10%-11 %•?; to ,10%-IOV2 %.
This
"technical" if offenses ft committed
change in the official rate had a
innocent
persons
because of different legal
methods
unwittingly
by
in the two countries.
Cana¬
The
City, will leave
on
October
visit to the Chicago fi¬
nancial district where he will re¬
21st for
a
for about
week.
a
Canada,
our
connected
with
ions
were)
no
lieve
section
rightly—objected to adop¬
tion of the treaty without incor¬
porating sufficient protection in it
for -legitimate - Canadian
invest¬
ment
firms
who
unknowingly
violate
technical U. Sft security
month.
ftftft
by
eteers Who
:
ing
willfully violat-
are
securities laws, the bet-
our
stock racketeers across the bor-
ftder
who
preying on Ameri¬
are
We
RECTOR 2-7231
read
have
/ft ''.ft; ft/ft//
a
lot
about the
were
.■
At present there is no
in
opment
-ft.
would appear
...
claim
and other
Canadians
that
on
in their
delivery, cutprices and lower long-term
being
unreasonable
credits/
,
ft,
,
.•
.; ;,
*,
;
-
-
; > ♦
ft
ft Turning to the market for the
oast week, there is little to reoort
beyond the firming of the official
/•-
STOCKS
devel¬
ft
1
.
outlook
.ft
CANADA
Head
is
for
continued
London,
Branch:
3
King
William
New
Street,
A, W. RICE, Agent
Members Toronto
ft
,.
Bell System
Teletype NY 1-1631
Stock
Exchange
*
I
WHitehall 4-8980
ft
Direct
■
wires to
private
and
.
Toronto
,
Montreal
The Canadian Foreign Exchange
Cbntrol Board announced
13
the
that
at which
rate
on
Oct
it
will
sell United States dollars has be'en
reduced
mium
from
while
11
the
101/2%
to
rate
for
pre¬
selling
has been reduced from
$4.47 to $4.45 per pound.
Oct. 15
Associated Press advices from Ot¬
Manning of Alberta
InN. Y.
sterling
Oct.
tawa
13, appearing in
"Times", added:
New York
i
"Effective
the
Buying/; Selling
10%
10%%
$4.45
Sterling •———$4.43
E.
New Issue
C.
Manning
are
scheduled to arrive in
New York today
for final negotia¬
connection with Alberta's
proposed issue of $26,093,000 de¬
bentures.
The Alberta executives
will
with
confer
the
sold to the
the
underwrite
will
issue
ince.
exchange
public without altering
price paid to the public aac
the spread between buy¬
of
group
American investment firms which
as
the
of the Prov¬
.ft' ft -ft
ft; 'ft
First
The
debenture
the final step in the debt
refunding program
.The Board said the change re¬
and
other officials of the Province of
Alberta
tions in
premiums
for purchases and
sales of excnange for spot delivery will be:
Monday,
on
Premier
Boston
will
Corp.
head the underwriting group and
a
public offering of the debentures
narrows
is expected to be made next
ing and selling rates by one-half
subject to clearance by the SEC. '
Financial
Simultaneously,
it
was
an¬
nounced, the Board has decided tc
States
"swap facilities" in United
dollars available to resi¬
dents
of
make
Canada for
the purpose
commercial opera¬
tions involving the production and
distribution of goods. Swap trans¬
of
financing
actions, which the board hitherto
has made available only to the
grain trade, involve the sale of
spot exchange simultaneously with
the fixing
rate
will
be
sultant to the Province of Alberta.
Byllesby & Co. Adds
&
"
swap
Company
YORK 5
New
Broadway,
nounces
64 WALL STREET, NEW
ar¬
luncheons
in
honor of Premier Manning and
his associates.
They will be given
by The First Boston Corp.; H.
Donald
Campbell, President of
the Chase National Bank; F. Ab¬
bot
Goodhue, President of the
Bank of the Manhattan Co., and
Norman S. Taber, municipal fi¬
nance specialist, who is acting as
special financial adviser and con¬
transactions Thorpe & McCulIough
H. M. Bylllesby & Co., Inc., Ill
three-sixteenths of 1%
for
for each 30 days.
Taylor, Deale
week,
have
of the rate for the re¬
purchase of a similar amount of
exchange for forward; delivery.
The
interests
several
ranged
York
City,
an¬
the association with them
Thorpe, Jr. in their
department, and Stan¬
Warren
ley McCulIough in their sales de¬
partment.
Mr. McCulIough has
been conducting his own invest¬
ment business in Bayonne.
Scott With Lester & Co.
E.
C.
4
(Special to
■■.ft/-;
"'ft,'
V
ft;-'"" ft- ft;'ft'
canadian securities
Government
•
Provincial
The Financial
Chronicle)
;
CAL. —
Charles C. Scott has become asso¬
ciated
with Lester
& Co., 621
LOS
South
was
.ft'ft
j
61 Broadway, New York 6, N. Y.
Exchange Rates
i';-
NEW YORK AGENCY—49 WALL STREET
'-"'.ft^vft -ft-'.
'
Bought-—Sold—Quoted
firm¬
Office—Toronto
Branches throughout Canada
England,
*
•.
CHARLES KING & CO. ft
WHitehall 3-1874 Y
.
.
and quiet trading.
statistical
1871
-t
,
Industrials—Banks—Mines ■'"*
/
of
The Dominion Bank
i
present tone of the market. The
ness
of
familiar
<hy
/.
offing
general impression.
At the mo¬
ment negotiations between the two
countries on a large volume of in¬
dustrial-/contracts
and
on
the
terms
and conditions of a new
costs
'
CANADIAN
which
likely to affect the
the
duces the cost of foreign
the
*
Domin¬
firm, and quiet
evident in any
list.
Corporate
generally firm and a
"toughness" of tho Russians in
both political and commercial ne¬
gotiations. It is interesting to note
that .Russian trade relations with
Canada are no exception to this
excessive.
N. Y.
NY-1-1045,
-/
\
■
the
bit stronger..
-
NEW YORK 5,
very
U.S. dollars
*
ft.
*
demand for quicker
i
L'l
,
pressure
of
investors will greatly facili¬
///ft////ft
;
private wire system.
<Y
TWO WALL STREET
sooner
terms
the
other hand feel that the Russians
a
•,i<
INCORPORATED
Canada Announces
,
this treaty be¬
comes effective, making it pos¬
sible for our authorities to ex¬
tradite from Canada stock rack¬
The
rate
offices
bonds
regulations./
The ft new amend¬
ments, designed to provide this
protection, are expected to be
ready for action by the Canadian
Parliament before the end of this
Canadian
our
A. E. AMES & CO.
strengthening effect on
the market in New York.
with
postwar
credit are
deadlocked.
Some contracts have already been
canceled
and
the
Russians are
New
somewhat
dian Government has—and we be¬
tate this development.
Murray L. Barvsh of Ernst flCompany,
120
Broadway, New
ap¬
.
As
are
Established
i
WILLIAMS
S.-Canadian financial relations
about to be erased.
The new extradition treaty between the
is making progress and, if finally agreed upon either
in its present form or with the proposed amendments now being
drafted in Ottawa, it will go a long way toward eliminating stock
racketeering in this country by persons who use Canadian residence
to avoid our laws. /ft-ft ft/ft ft/
<§>
can
Barysk on Business Trip
Montreal
CANADIAN STOCKS F~.
countries
making
and
■W;
pears
two
are
Toronto
'
.
A
•
expedite business between
is
/
CORPORATION
System Teletype NY 1-920
.
ft®?
Agency
:
Canadian Securities
appoint¬
Business with Canada
York
Bell
industrial, commer¬
| ter it will be for both countries.
cial, civic, professional, fraternal,
Recently
a
Canadian security
labor,
religious
and
veterans'
offering, Gaspe Oil Ventures,
leaders who
will, head
various
Ltd., was made here—the first
divisions in the campaign.
to be registered with the SEC.
The drive for $5,000,000 will get
There should be a great deal
under way Nov. 22 and continue
more
legitimate financing
of
through
mid-December,
Crosby
Canadian
enterprise
in
this
said. It will be patterned along
country and elimination of the
the United States and
MUNICIPAL
ft/ft-/;; ■14 Wall Street, New York 5
:
with 30 other
main
share.
In order to
ft
.
share
1955, and at $104
15, 1955, through
of
made
was
national
York
after Sept.
Twombly, Reynolds
Co., New York, New York, has
been
made Oct.
PROVINCIAL
Incorporated
com¬
In British Columbia harvesting of
late fruit and vegetables is being
Grporatiom
,
p
GOVERNMENT
"
and
harvesting of late crops and the
seeding of fall wheat. Early sown
grain is making good progress. ftft"In
the
Maritime
Provinces,
harvesting of grain crops is nearly
completed. Threshing is well ad¬
Toronto and Montreal
4
>
ft
threshing is well ad¬
vanced.
The potato crop is fair
to average and other roots indi¬
cate satisfactory yields.
Canning
crops on the whole are good.
"In Ontario, heavy rains during
pleted
;
Direct Private Wires to Buffalo,
.I-
York,
available.
are
Wood, Gundy & Co.
"Pastures generally are in good
Grain harvesting in the
the last two weeks have retarded
ftft-
CANADIAN BONDS
the
fol¬
•
..
New
in
England,
Bond offerings furnished upon request.
crop report
Province of Quebec is about
.
'/ft
;
condition.
•t&.S.
•
London,
Government,
investments,
organization
our
and
Canadian
Corporation
was
satisfactory,
spell will lower the grades of
tni
.ci%
relating to
and
of
Canada
while
that
stated
the bank also commented
and external
facilities
report by Bank of Montreal.
It was added that threshing would
not become general again for a
few days, even with good weather.
/ (Canada)
\.
matters
Municipal
crop
ALBERTA
f
In
seri¬
delayed harvesting opera¬
tions in the Prairie Provinces of
ously
Canada,
J-853
•
Municipal
*
Corporate
ANGELES,
Spring
formerly
Street.
Mr. Scott
with Bankamerica
-Company and Banks, Huntley &
Co., and in the past was an officer
of D. A. Hill & Co.
r«r»% <*■
*:■
*
1
,
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
STATE OF NEW JERSEY
TEACHERS' PENSION AND ANNUITY FUND,
TRENTON, NEW JERSEY
BOX 550,
Trenton Trust Building
Sealed bids will be
sealed bids for the purchase of $4,330,000 high grade registered
considered for all of the following fifty-six separate blocks.
New-Jersey county, municipal, and school bonds maturing from 1946
■
.
1930. maturing $10,000 on October
October 1, 1955.
Opinion of Reed,
,
i7
V/
t
Block
dated December 1,
1956. Opinion ot
County, Public Improvement 4 %'s,
810,000 on December 1, 1953 and
000 Bergen
'maturing
1930
.Reed',
Block
No.
Block
an$3<vooofCamden
4% s, dated April 1,
1948 and 1950.
$20,000
and
Opinion of Hawkins, Delafield
County, Building and Highway 4'/2's, dated
$5,000 on January 1, 1952 and 1953,
1955.
Opinion of Hawkins, Delafield
nary
Janand
and
Block No.
t^VlO,0^0 Cape May County,
3—$45,000
Bridge Refunding, Serial 5's, dated
May County,' General
1929,: maturing November
Cape
15,
And Raymond,
.
May 15,
Construction 5%'s, dated No¬
Opinion of Caldwell
,
Block No.
'
<
to
Block
Block No.
.
5—814,000
ft—$155,000
on
March 15,
1946 and 1947.
' '
Block No.
1951. '
7—$136,000
County, General Road 4%'s, dated November 1, 1931,
$13,000 on November 1,
1946 and
1947, and $14,000 on 1
maturing
November 1,
Opinion of Caldwell and Raymond.
$20,000 Ocean County, General Funding 4%'s, dated June 1, 1935,
maturing $10,000 on December 1,-1949 and 1950.
Opinion of Hawkins,
3948
and
and
1949.
t
Block No.
8—$11,000
,
Block
■
No.
.
$10,000 on May 15th each year 1951 to 1953, inclusive.
Opinion of
Reed, Dougherty and Hoyt.
; .
v
$2,000 Union County, Park 4%'s, dated June 15,
1925, maturing
June 15, 1952.
Opinion of Reed, Dougherty and Hoyt.
$5,000 Union County, Park 4%'3, dated December 1, 1924, maturing
December 1, 1951.
Opinion of Reed, Dougherty and Hoyt.
/
;
■
Washburn.
Block
No.
1
1929,
1955, inclusive.
Borough,. Camden County, Sewer 51/4,s, dated De¬
maturing $5,000 on December 1st each year 1946 to
Opinion of Hawkins, Delafield and Longfellow.
s
'
■
$28,000
Belleville
Block No. 11—$66,000
.
6's.
each
Town,
Essex
County,
Public
Improvement
dated
«
1940, maturing $1,000 on August 1st each year 1951, 1952 and 1954.
Opinion of Reed. Hoyt, Washburn and Clay.
<
$10,000 Belleville Town, Essex County, Street and Sewer 4 la's, dated
September 1. 1 92*
r^otm-ing a*, onn nr\ September 1, 1951 and 1952.
Opinion of Reed, Dougherty and Hoyt.
Union
County,
$6,000
on
Refunding
i,
December
4%'s. dated
and 1948;
1947
1, 1949 and 1952; $10,000 on December 1,, 1953;
December 1, 1954, and $26,000 on
December 1, 1955.
on
$15,000 Hillside Township,
Union County, Refunding 4Vz's,
dated
October 1, 1935, maturing $5,000 on October 1st each year
1948 to
1950, inclusive.
Opinion of; Hawkins, Delafield and Longfellow.
$30,000 Hillside Township, Union County, School 5's, dated January X,
1931, maturingr. $5,000 on January 1st each year 1950 to 1955, inclusive.
Opinion of Caldwell and Rayjmond. vi
•
•
•
.v-'.-.; A-v";:.,-v-:/;
""
!■/'■■
..'■.v?'.^'WP,A-. •.•'■'•V'•••••
C.v'
V
■
;r • ■■
•
Block No.
*
^'•<:':>4
:■
.
30—835,000
$5,000 Kearny Town, Hudson County, School 4%'s, dated June 1,
1922, maturing on June 1, 1951.
Opinion of Hawkins, Delafield and
Longfellow.
$5,000 Kearny Town, Hudson County, Strept and Sewer 4%'s; dated
'Njune l,
i927, maturing
^JunC'T, 1951.
on
0pinion bf Hawkins, Delafield
;:'andvLdhgfell6wi;r^?7^
$15,000' Kearny- Town, Hudson County, School 4%'s, dated Juiy,-T,
1931, maturing July 1,
1953.
Opinion of Hawkins, Delafield and
Longfellow.
•
$10,000 Kearny Town, Hudson County, Water Supply 6's,- dated
August 1, 1932, maturing August 1, 1953.
Opinion of Hawkins, Delav
field, and Longfellow;
<
,
.
$20,000
BIpck No. 81—825,000
.
Borough,
$5,000 Leonia Borough,
.
County, Improvement 6's, dat^d
1; 1954 and 1955. - Opinion; of
BCrgen
Longfellow.
.
and 1951.
1955;
July
1,
1932,
maturing July
*
1,
of Caldwell
Opinion
1946.
1
33—$32,000
$32,000 Little Ferry Borough, Bergen County, Refunding 3%'s, dated
1, 1940, maturing $17,000 on December 1, 1951; $10,000 on
/December 1,
1953, and $5,000 on December 1,
1954.
Opinion o|
Hawkins, Delafield and" Longfellow.
"
' "
December
1
County, Water 6's, dated
Opinion of Caldwell and
•
"
School, Series A, ;4%t's,
1946 to 1951, inclusive.
7,
1946 to
jto 1950, inclusive.
Block
No.
July
22—$24,000
Block No.
No.
dated
23—8209,000
and
Township; Mercer County, School Refunding 4's,
1935, maturing $20,000 on November 1st each year
1946 to
1948, inclusive; $22,000 on November 1st each year 1949 to
1953, inclusive; $20,000 on November 1, 1954, and $19,000 on Novem¬
$50,OCO
Opinion of Hawkins, Delafield. and Longfellow.
j
,
.Block No. 24—$104,000
Garwood
Borough,
Union
School,
County,
Series C,
to
January
$9,000
1946
:
Borough, Union County, Trunk Sewer 4's, dated
1, 1935, maturing $1,000 on August 1,
1946, and $2,000 on
1st each year 1947 to 1950, inclusive.
Opinion of Hawkins,
$45,000
December
on
1,
Garwood
and
Longfellow.
Garwood
1,
Hawkins,
on
and
September
Borough,
Union
and
Block
Longfellow.
Block
No.
:
i
,
4's, dated
and 810,000
Opinion of
'
Hackensack, City,
January
1,
„
County,
1923% maturing $11,000
cn
Sewer,
}
January
1,
2,
1952,
41/2's,
and
^Opinion of Hawkins,
j
.
,*
Block No.
$40,000
Millville City,
"
37—840,000
Cumberland
County,
Improvement,
...
1
Series
A,
5's, dated July 1, 1930, maturing $6,000 on July^/l, 1946 and 1947, and
$7,000 on July
1st- each year 1948 to 1951, inclusive.
Opinion of
Hawkins, Delafield and Longfellow.
38—8342,000
.7
t
$50,000 Newark City, Essex County, Port Newark Improvement 4%'s,
dated March 1, 1930, maturing $10,000 on March 1, 1947, and $40,000
on
March
1, 1952.
Newark
Opinion of Reed, Hoyt and Washburn. •
Essex County, School 4%'s, dated
>* ^
March 1,
Opinion of Reed,
v- : ; / : ''
$83,000 Newark City, Essex County, Port Ncwaik Improvement 4%'s,
dated December 15, 1927, maturing $38,000 on December 15, 1949, and
$10,000
Series
1951.
Maywood Borough, Bergen County, Local Improvement Re¬
funding 4%'s, dated June 3.5, 1925, maturing $6,000 on June 15th each
year 1951 to 1953, inclusive, and $3,000 on June I5i 1954,
Opinio^ of
Reed, HQyt and: Washburn.
"
.
1 »
,
'
■ ?
City,
1930, maturing $5,000 on March
Hoyt and Washburn.
25—872,000
Bergen
and
30—$21,000
$21,000
.
$37,000
dated
1950
No.
Block No.
Refunding
County,
maturing $15,000 on December 1, 1946,
1st
each
year
1947 to
1949,
inclusive.
Delafield
1,
Longfellow.
,
1935,
December
$10,000
4%'s,
1926, maturing $5,000 on January 1st each year
1955, inclusive.
Opinion of Hawkins, Delafield and I*ongfellow.
dated
on
1,
'
4t&'s,
1, 1941, maturing $12,000 on September
1,. 1046;
September 1, 1947 and 1948; $5,000 on September 1, 1949,
September
Delafield
Ewing
1955.
35—857,000
$57,000 Lyndhurst Township, Bergen County, School Refunding
$10,000
Block
V.
.
$24,000 Denville Township, Morris County, School 4%'s, dated July 1,
maturing $6,000 on July 1st each year 1946 to 1949, inclusive.
Opinion of Hawkins, Delafield and Longfellow.
November
r!
-
_
,
Livingston
$10,000
dated
1929,
$209,000
"
Opinion of Hawkins, Delafield and Longfellow.
-•
;
Township, Essex County, Serial Funding 4%'s,
1, 1935, maturing on March 1, 1249.
Interest payable
March and September 1st each year.
Opinion of Hawkins, Delafield
and Longfellow.
Z '
$15,000 Livingston Township, Essex County, General Funding 4y2'$,
dated July 1. 1935, maturing March 1,
1949.
Interest payable March
and September
1st each year.
Opinion of Hawkins, Delafield And
Series B, 4,/2's,
1951, inclusive.
Series 2,
each year
Opinion of Hawkins, Delafield and Longfellow.
dated
Block No/34—889,000
inclusive..
School,
of Hawkins, Delafield and Longfellow. "
Cranford Township, Union County, Improvement,
October 1, 1929, maturing $5,000 on October 1st
$15,000
'
$60,000 Livingston Township, Essex County, School 5's, dated Feb¬
ruary 14, 1930, maturing $6,000 cn February 14th each year
1946 to
1955, inclusive.
Opinion of Ha vkins, Delafield and Longfellow.
,.i .
$4,000 Livingston
Township, Essex County, Fireh'ouse 4y2's, dated
July 1, 1930, maturing $1,000 on July 1st each year 195u to lyaAF,
.
Block No, 21—$123,000
dated
1,
32—831,000
.
$48,000 Cranford Township, Union County,
maturing $8,000 on December 31st each year
Opinion of Hawkins, Delafield'and Longfellow.
$60,000 Cranford Township, Union County,
maturing $10,000 on December 31st each year
a
^
Opinion of Hawkins, Delafield
.
1948
-
.
$4,000 Linden Township, Union "County;' School 4%'s; dated October t,
1924, maturing October 1,; 1954.
Opinion of Hawkins, Delafield and
Longfellow.
;'
1
fr t
$5,000 Linden Township,' Union County, Park-4%*s, dated March L
1924, maturing $1,000 on March 1st each year 1S5.1 to 1955, inclusive.
Opinion of Reed, Dougherty/and Hoyt.
r '
A '
W '
;
; $17,000 Lindeh-Citjr,; Union /County,
School-4%'8;; dated/August; X/
1928, maturing $6,000 on August1 1, 1951 and 1952. and $5,000 oA
August 1, 1953.
Opinion of Reed, Hoyt, Washburn and Clay, t
•
'
$5,000 Linden Township, Union County, Public Improvement 4%'e,
dated August 1; 1923, maturing $1,000 on August'1st each year 3951 to
1955, inclusive. Opinion of Reed, Dougherty and Hoyt.
Block No.
1946
Borough, Camden
July
1,
1932,
maturing July
1, :1946.
Raymond;%:/;A::;;./.:'.^^
5's,
...
dated September 1,
$3,000 on September
.
Block No.
,
41/2,s, dated
- .
'
v*
*. •
Bergen County, Park 6's,
1921, maturing '$1,000 on September 1,
1956, and $1,000 on September 3, 3957.
and
1
•
Leonia
May; 1/ 1934, maturing SlOiOOO
Hawkins; Delafield and^ Longfellow.'
:
.
Collingswood
$3,000
2%'s,
1940, maturing $7,000 on August 1st each year 1951,
?,n
*955. Opinion of Reed, Hoyt, Washburn and Clay.
•fj?«'000 BeUeville Town, Essex County, Water 2%'s, dated August 1,
December
on
dated
year
and Raymond.
Delafield
Artist 1
$5,000
1938,
Opinion of'Hawkins, Delafield and Longfellow^
Borough,
Camden County,
School District,
September 1, 1922, maturing $1,500 on Septem¬
to 1949, inclusive, and $1,000 on September 1,
1950 and 1951.
Opinion of Hawkins, Delafield and Longfellow.
$4,000 Collingswood Borough, Camden County, General Improvement
4%'s,
A,
1st
August
7'
1,
Collingswood
$8,000
Series
August
■
Township,
maturing
December
$30,000
19—$90,000
10—$59,000
$50,000 Audubon
cember
No.
Block No; 20—$15,000
,
ber 1,
$9,000 Audubon Borough, Camden County, School 5's, dated July
1,
1924, maturing $1,000 on July 1st each year 1946 to 1954, inclusive.
Opinion of Hawkins, Delafield and Longfellow
Longfellow.
Hillside
$88,000
9—$17,000
County Road, Bridge and Hospital 4%'s, dated Octo¬
1928, maturing October 15, 1952.
Opinion of Reed, Hoyt and
Washburn.
/
/
<
>
$30,000 Union County, Park 4%'s, dated May 15, 1923, maturing
15,
r
dated
Water 5's,
Middlesex County,
1935, maturing $J 0,000 on October 1st each year -3948 to
inclusive, and $5,000 on October 1, 1952.
Opinion ol Hawkins;
1951,
.Opinion of Reed, Hoyt and Washburn. *
.
,
>
;
.
/
$15,000 Clifton City,
Passaic County, Serial Funding 4V2's, dated i
October 1, 1935, maturing October 1, 1951.
Opinion of Reed, Hoyt and
$10,000 Union
ber
4%'s,
to
1,
Delafield and
17—$20,000
$20,000 Clifton City, Passaic County, General Refunding
October 1,
1935, maturing $10,000; on October 1, 1950
Opinion
$11,000 Passaic County, Road, Bridge, and County Building 6's, dated
1, 1932, maturing June 1, 1952.
Opinion of Hawkins, Delafield
and Longfellow.
June
School
County,
$45,000 Hillside: Township, Union County, Serial;Funding 4%'s, dated
Park
Longfellow.
$62,000 Ocean County, Bridge 3 %'s, dated December 1, 1938, matur¬
on December 1, 1949 and 1950; $2,000 on December 1, 1953,
•and $15,000 on
December 1, 1954 and <1955.
Opinion of Hawkins,
Delafield and Longfellow.
'/
<f
ing $15,000
1954, Inclusive.
October
Washburn.
and
ber
$54,000 Ocean
Middlesex
Block No. 29—$178,000
Public Improvement 5's,
December 1, 1951 and
1953 to 1957, inclusive.
,
1931, maturing $5,000 on March 15. 1946; $11,000 on March 15, 1951 to
1953, inclusive, and $5,000 on March 15, 1954.
Opinion of Caldwell
and Raymond.
$6,000 Monmouth
County, Bridge 4,/2,s,
dated March 15, "1931,
15,
28—$25,000
Borough,
Park
,
,
7maturing $23,000 on March 15, 1946, and $7,000 on March
Opinion of Caldwell and Raymond.
,
to
No.
Borough,
maturing $5,000'on December 20th each year 1951
Opinion of Caldwell and Raymond.
1926,
1ft—$75,000
$10,000 Clifton City, Passaic ^County, . Improvements 5%'s,.. dated
July 1, 1929, maturing July 1, 1952.
Opinion- of Hawkins, - Delafield
and Longfellow;.
$15,000 Clifton City, Passaic County, School 4%'s, dated September 1,
1927, maturing. $5,000 on September 1, 1952, and $10,000 on Septem¬
ber 1, 1954.
Opinion of Hawkins, Delafield and Longfellow.
$10,000
Clifton City, Passaic County, Water Supply* 3V2's, dated
July 1, 1936, maturing $5,000 on July 1, 1954 and 1955.
Opinion of
Hawkins, Delafield and Longfellow,
•
J
$20,000 Clinton City, Passaic County, Water Refunding 4^'s, dated
October 1,
1935, maturing October 1, 1952.
Opinion of Reed, Hoyt
County, Bridge 4's, dated May 1, 1936, maturing
$7,000 on May 1, 1951 and 1952. and $2,000 on May 1, 1954. /Opinion
of Hawkins, Delafield and Longfellow.
/
$43,000 Monmouth County, Welfare Home 4%'s, dated March 15,
■
$20,000 Highland
December 20.
'
Opinion of Caldwell
maturing $4,000 on March 15, 1946, and $2,000 on March 15, 1951.
Opinion of Caldwell and Raymond.
$5,000 Monmouth County, Road 4%'s, dated March 15, 1931, matur¬
ing $2,000 on March 15, 1946, and $3,000 on March 15, 1951.
Opinion
of Caldwell and Raymond.
$30,000 Monmouth County, Court House 4%'s, dated March 15, 1931,
Park
'
$16,000 Monmouth
Delafield
dated Jan¬
1952 to 1955,
Borough, Bergen County, School Refunding
4%'s, dated (January 1, 1935, maturing $1,000 on January 1st each year
1946 to 1950, inclusive; $8,000 on January 1, 1951; $2,000 on January 1,
1952; $1,000 on January 1, 1953; $3,000 on January 1, 1954, and $1,000
on January 1,
1955.
Opinion of Hawkins, Delafield and Longfellow.
$18,000 Cliffside Park Borough, Bergen County, Improvement Re¬
funding 4%'s, dated June 1, 1935, maturing $9,000 on June 1, 1947;
$5,000 on June 1, 1948, and $4,000 on June 1, 1949.
Opinion of
Hawkins, Delafield and Longfellow,.
$20,000 *Cliffside
Block
*
r
No.
27—$23,000
1924, maturing $1 000 on August 1st each year 1951
Opinion of Hawkins, Delafield and Longfellow.
.
l,
inclusive.
1955,
Block No. 18—$38,000
-
.
.
maturing $2,000
and Raymond.
1,
Inclusive.
$10,000 Monmouth County, Road 4%'s, dated March 15, 1926, matur¬
Opinion of Caldwell and Raymond.
County, Road, 4'/Vs.
dated March 15, 1928,
maturing March 15, 1946.
Opinion of Caldwell and Raymond.
$6,000 Monmouth County, Jail 4%'s, dated March 15, 1928, maturing
$3,000 on March 15, 1946 and 1947.
Opinion of Caldwell and Raymond/
1
$4,000 Monmouth County, Bridge 4%'s,
dated March 15, 1928,
*
15—$32,000
Cedar Grove Township,' Essex County, Water 4%'s, dated
1927, maturing $5,000 on August 1st each year 1946 to 1949,
Opinion Thompson, Wood and Hoffman.
■' ■ -
$20,000
ing March 15, 1948.
$35,000
Monmouth
/,
dated August
Opinion of Caldwell and Raymond.
1955, inclusive.
August
Series 5, 4%'s, dated
Caldwell and Raymond, a
4y4's,' dated July 15,
Opinion of Caldwell and Raymond.
•
t
Block
Highland
$5,000
,
2, 1922, maturing $10,000 on January 2, 1951, and $1,000 .on
January 2. 1952. ; Opinion of Caldwell and Raymond.
»
$21,000 Carteret Borough,
Middlesex County, School 2%'s, dated
November 1, 1938, maturing $7,000 on November 1st each year 1953
Longfellow.^
3926, maturing July 15, 1955.
„
,
Block No.
$23,000 Hamilton Township, Mercer County, General Refundin g 4 V2'5,
dated
December
1, 1934, maturing December 1, 1954.
Opinion of
Hawkins, Delafield and Longfellow.
Bergen County, Sewer 3 %'s,
No.
dated April 1, 1935, maturing $18,000 on April 1st each
1948, inclusive, and $13,000 on April I, 1949.
Opinion ol
$25,000 Haledon Borough, Passaic County, Refunding 4!/2's,
dated
September 15, 1934, maturing $5,000 on September 15, 1951; $15,000 on
September 15, 1952, and $5,000 on September 15, 1953.
Opinion of
Caldwell and Raymond.
.
,
uary
$5,000 Middlesex County, Vocational School,
July 1, 1929, maturing July 1, 1955.
Opinion of
$9,000 Middlesex County, Bridge, Series 17,
V
funding 4%'s,
each 1946 to
1952, and $6,000 on December 1st each year
Opinion of Caldwell and Raymond.
<
$3,000 Carteret Borough, Middlesex County, School 5's, dated July 1,
.1924, maturing July 1, 3.952.
Interest payable April and October 1st
each year.
Opinion of Caldwell and Raymond. '
$11,000 Carteret Borough, Middlesex County, School 5's, dated Jan¬
Block No. 4—$168,000
,
7
No.
^
dated
4%'s,
Schocl
County,
/
1939, maturing $8,000 on January 1st each year
Opinion of Reed, Hoyt, Washburn and Clay.
1,
"
•
,
Passaic
Caldwell and Raymond.
14—$255,000
$40,000 Carteret Borough, Middlesex County,
December 1,
1930, maturing $5,000 on
Hudson: County, County Jail 4%'s, dated July 1,
1926,
maturing $ip,000 on July 1, 1949, and $8,000 cn July 1, 1950.
Opinion
cf Hawkins, Delafield and Longfellow.
$27,000 Hudson County, Hospital for Insane 4J/2's, dated July 1, 1926,
maturing $7,COO on July 1, 1949; $17,000 on July 3, 1950, and $3,000 on
July 1, 1951.
Opinion of Hawkins, Delafield and Longfellow.
;
$115,000 Hudson County, Hospital 4's, dated March 1, 1934, maturing
$5,000 on March 1, 1949; .$60,000 on March 1, 1951, and $50,000 on
March 1, 1952.
Opinion oj[ Hawkins, Delafield and
V
1,
$40,000
Block
$26,000
:
District 3%'t, dated
l, 1954 and 1955.
B, 2.60 s,
1, 1950;
1951 and 1952; $30,000 on November 1, 1953
on November 1, 1955.
Opinion of Hawkins;;
Carlstadt Borough,
$32,000
uary
15, 1947.
."
..
,r
'
and
Borough,
-
August 1, 1931, maturing $8,000 on August 1st each year 1946 to 1951,
inclusive.
Opinion of Hawkins, Delafield and Longfellow.
•
$67,000 Haledon Borough, Passaic County, Capital Improvement Re¬
13—$10,000
dated
„
;
November
on
1954,
"
3924, maturing $2,000 on May 15th each year 1949 to 1953, inclusive.
Opinion of Caldwell and Raymond.
/;
■
,
$12,000 Cape May County, General Construction, Series 2, 5 s, dated
March 1, 1931, maturing March 1, 1948.
Opinion of Caldwell and
vember
Block No. 26—$140,000
Haledon
$48,000
Opinion of
"
$20,000 Cape May County,
SffiA
.J.
City,
Block
General Finance 4%'s, dated February 1,
3927, maturing $20,000 on February 1, 1947.
Opinion of Caldwell and
.
/• 'V.V
inclusive.
.
t
Camden
Delafield-and Longfellow.
k /Longfellow.
:
y ,>7
$150,000 Camden City, Camden County, Refunding, Series
dated
November
1,
1940,
maturing $10,000 on November
dated January 1, 1929, maturing
1, 1929, maturing
£20,000 on January 1,
•.
'&'•*
August 1, 1952.
Longfellow.
April 1, 1946; $50,000 on April 1, 1951, and
Opinion of Hawkins, Delafield and Long-
County, Park 4%'s,
$20,000 Camden
«-
Camden County, Refunding, Series A, 2%'s,
dated November 1,
1940, maturing $15,000 on
November 1, 1952;
$20,000
on
November
1,
1953; $30,000 on November 1,
1954, and
$40,000 on November
1,
1955.
Opinion ol Hawkins, Delafield and
Hawkins,'Delafield and Longfellow.
County, General Improvement
No.
Block No.
maturing
£10,000 on January-1,
j
12—$19,000
No,
$10,000 Butler Borough, Morris County, School
1,
1937,
maturing $5,000 on January
Opinion of Hawkins, Delafield and Longfellow.
$105,000
3926, maturing $5,000 on
£10,000 on April 1, 1954.
)L *
,
January
*
of
*
'
Caldwell and Raymond.
2—$300,000
$20,000 Camden County, Improvement 2%'s, dated November 1, 1940,
tnaturing $5,000 November 1st each year, from 1952 to 1955, inclusive.
Opinion of Hawkins, Delafield and Longfellow.
$5 000 Camden County, Park 3 %'s, dated June 1,
1939, maturing
%June* 1, 1952. Opinion Hawkins, Delafield and Longfellow.
$65,000 Camden
'
■
$10,000 on August 1, 1951, and $4,000 on
i
3957.*'Opinion
-
1953
1,
$19,000 Bound Brook Borough, Somerset County, General Improve¬
ment 2%'s, dated August 1, 1937, maturing $5,000 on August 1, 1950;
Hoyt and Washburn.
*
$13,000 on January-1, 1953 and 1954.
Opinion of Reed, Dougherty
And::Hoyt/:
/
$35,060 Hackensack City, Bergen County, Sewer 3*8, dated Septem^ ;/
ber 1.
1936, maturing $5,000 on September 1, 1950, and $15,000 on
September l; 1951 and 1952.7v:PPMl*on^oL.Reed,-Hoyt-and Washburn.-
Water 4%'$, dated; October 1,
and 1954, and $5,000 on
Hoyt and Washburn.
$25,000 Belleville Town, Essex County,
Block No, 1—834,000
i
$14,000 Bergen County/ Public Improvement 5%'Sj/dated -December7I,
71932, maturing December l, 1952.
Opinion of Reed, Hoyt and WashJ
:•
7
,
Annuity Fund will receive and open in their office, Room 1307,
Board of Trustees of the Teachers' Pension and
Trenton Trust Building, Trenton,
to 1957.
Phone 2-2131—Extension 530
SCHOOL BONDS TO BE SOLD TUESDAY, OCTOBER 23, 1945
REGISTERED NEW JERSEY COUNTY, MUNICIPAL, AND
October 23, 1945, the
Tuesday
M
P
f
.
(
$4,330,000 FULLY
At 2 00
Thursday, October'18, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
J 854
1, 1946 and 1952.
• ■
■
•
THE COMMERCIAL
-Number:4430
Volume-162
ADVERTISEMENT
'
.
ADVERTISEMENT
..
,,
185*
& FINANCIAL CHRONICLE
•
ADVERTISEMENT
,
,
1950.
December 15,
on
dated
December
Passaic
City,
Passaic
$50,000
Opinion of Reed, Dougherty, Hoyt and
v
--.J.' /$100,000 Newark City, Essex County, Street Opening, Series A, 5WS,
dated August 1, 1934, maturing $40*000 on August 1, 1950, and $60,000
oh August l, 1953.
Opinion of Reed, Hoyt and Washburn; >
$24,000 Newark City, Essex County, Passaic. Vslllsy Sewer 41/2,s, dated
October 1, 1923, maturing $20,000 on October 1, 1950, and $4,000 on
October 1, 1951.
Opinion of Reed, Dougherty and Hoyt. .
$50,000
Newark City, Essex • County, Serial Funding 3%'s,
dated
February 1, 1935, maturing $20,000 on February 1, 1947; $10,000 on
February 1, 1949rand $20,000 on February 1, 1950.
Opinion of Reed,
Hoyt and Washburn.
.
* vV
•
$25,000 Newark City, Essex County, Port Newark Improvement 4Va's,
dated
April 15,
1922, maturing April 15,
1948.
Opinion of Reed,
Dougherty and Hoyt.
:r>-' Y
$45,000
Washburn.
County,
Block No.
Improvement
General
1921, maturing $5,000 on December 1st each year
1946 to 1955, inclusive.
Opinion of Hawkins, Delafield and Longfellow,
;
1,
'
*
No.
44—$48,000
Delafield
1932,
on
May
1,
1952 and 1954.
Opinion of Hawkins,
Longfellow.
Paterson City, Passaic County, General Improvement 4%'s,
$5,000
and
$38,000
field
1, 1929, maturing $25,000 on June 1, 1949, and $13,000 on
1952.
Opinion of Hawkins, Delafield and Longfellow.
l,
B,ock
.
No-
39—850,000
VrtS
•
Block No. 45—$105,000
-V',,;.
Borough, Camden County, School Refunding 2*/2's,
dated August 1, 1940, maturing $1,000 on August 1, 1947; $3,000 on
August 1, 1948; $8,000 on August 1, 1949; $4,000 on August 1, 1950;
$8,000 on August 1, 1951. and 1952, and $9,000 on August 1, 1953 and
1954. ; Opinion of Caldwell and Raymond." ,r ,'y
• ' 'v
Orange
$120,000
City,
Essex
County,
Refunding
No-
41—878,000
7
June
County,' Water,
•
Roselle
March
field
and
$2,000
August
County,
Orange, Essex
Longfellow,
West
field and
:-V-V
A
MMSMSM * vT SSMy Ms'-"1: SS
Block No. 49—$30,000
:S':
'
v
^
'
Passaic
1934,
l,
Longfellow.
;
t
Block No. 55—$330,000
'
1,
1935,
October
1,
1950.
43—377,000
Reed, Hoyt and Washburn.
1"
.
'
,
-rS'M:.' ^:
•
Funding 4V4's, dated
Opinion of Hawkins,
City, Passaic County, Serial
maturing December 1, 1951.
-
»
'
- .•
r
v
$27,000
,
Block No, 50—$27,000
%
;S> $2,000
Westfield
Somerville
Borough,
Somerset
School
County,
January 1, 1923, maturing $9,000 on January l,
Opinion of Hawkins, Delafield and Longfellow.
payment will be required with the bid.
4r/a's,
dated
■y
v
.
>
.
»
:•
School 4%'s, dated Decem¬
1, 1951 and 1952.
Opinion
$18,000 Westfield Town, Union County,
1, 1931, maturing $9,000 on December
ber
1951 to 1953, inclusive.
of Reed,
.
Hoyt, Washburn and day.
of purchase to be added.
;
,
Each, block of bonds will be awarded on the day* the
bids
are
received to the bidder offering the largest price and accrued interest to the date of payment,
*'j;. the Board of Trustees
reserves the right to reject any or all bids.
(
»
Each purchaser will be-askedvto take.delivery of the bonds awarded to him and to make payment for them at a
the buyer and the seller within a week from the date of the award.
/
,
,
'
' '
date to be mutually agreed upon between
*
By Order of the
Board of Trustees,
October 4, 1945.
JOHN A. WOOD,
SS-'
Loan
Victory
of previous
case
The
importance of the popula¬
tion factor in the study of munic¬
various blocks of its hold¬
inY the
investment
banking, field generally for the
duration of the drive, a number
Of -substantial operations in the
municipal field are scheduled to
develop in advance of the Treas¬
ury financing.
ings of high grade registered New
Jersey
county,
municipal > and
school bonds. The maturity range
ipal finance data necessarily takes
on
added significance in light of
the extensive migration prompted
,
Starting on Monday, Oct. 22,
for example,
three rather large
items are scheduled to material¬
»
ize, the largest being the Brook"lyn,-Ohio, offering of $1,110,000
refundings.
This consists of two
series, $600,000 series A . bonds,
due semi-annually from 1946 to
1966, incl., and optional in 1956,
and $510,000 series B, having a
^maturity date of 1966, although
On the
1, 1948.
starting Jan.
redeemable
date bids will be
same
.opened by officials of Bonneville
County Independent School Dis¬
trict, Class A No. 1, Idaho, on an
issue of $510,000
bonds, with a
jl946-1965 maturity range. Tend¬
considered for
will likewise be
Rapids
Independent
District, Iowa,
item of
Cedar;
School
obligations, to
1946 to 1960, incl.
building
$750,000
mature from
[$J:
Tuesday, Oct. 23, should prove
/ prove one: of the most active
days in the tax-exempt mart in
/ quite a while, with the Chicago
iJPark
111.,
District,
will
bonds
$28,475,000.
to
amounting
deal ; alone
mature
on
subject
to
ad-'
redemption in stipulated
amounts
1948.
starting
annually
to
1957,
incl.,
and
in
Proceeds of the financing,
f along with cash on hand, will
be employed by the district in
the
in
offering
blocks
included
add
to an aggregate principal
up
amount of
constitute
Next Tuesday also is the day on
$37,250,000 of
j outstanding bonds which are
optional in, 1946.
Aside
from
the
munities whose economic status
In the week
beginning Monday,
Oct. 29, offerings now in prospect
Life
the
Co.,
offering f of
Nebraska,
sold
on
been
no
received
In
any event, it would appear
population trends, actual and
prospective, should command
greater emphasis in the calcula¬
this
writing,
in
or
the
with
an
District
Park
undertaking, there is the equally
substantial transaction to be con¬
cluded
by
Teachers'
the New Jersey State
Pension
and
Annuity
State
municipal
and
true in the past.
was
number of reasons
able
cited
in
sion.
On
support
the
one
ibility of local government bonds,
$2,750,000
assuming other qualifications are
of
present,
as
the issue, along with funds pres¬
for
savings
banks,
ently available, will be used to
various
redeem $5,500,000
Proceeds
of
December of
aid bonds,
of
California
in
$15,000,000 veterans'
representing half of
issue authorized by
that
antic¬
sometime
offering
purposd, r -
an
the voters for
/
Thompson Co.
,
,
legal investments
etc.,
}r'S
States.
in
the
population in
1940-1943, and
civilian
of
years
war
| significance of such migration
as
regards the likelihood of spe¬
areas to hold and extend
cific
retain their
previous status. On this subject,
we quote from Dr. Reed's paper
their
as
gains,
or
#'/V;:/
follows:
significance of all this is:
1. The West and Southeast will
expense
gain,
to
largely
the
at
of the North and North¬
east.
ing
of
trend
revenue
which
the
bonds,
collected
particular
which the debt
In
the
issuance
payment
of
is entirely dependent on
revenues
of
toward
was
from
users
facility
for
created.
light of these considerations,
4.
The
other
ties
(roughly cities of 50,000 or
over
and the county in
which lo¬
cated) appear outstanding:
Corpus Christi, Tex.
/
Dallas, Tex.
Jackson, Miss.
♦
:
as
York
-
Northeastern
New
has lost population
(about 820,000) during the war,
with
fair
prospects of "coming
Jersey
area
..
Baltimore grew
age
at above aver¬
rates during the war and has
chance
a
good
growth.
of
-
Cleveland
grew
its
retaining
•
:
at above aver¬
between 1920 and 1930,
not fare so well during
age rates
but
did
the
'30's,
and
the
war.
Its
grew little during
future is hard to
grew
at
above
during the depres¬
sion years, as well as during the
war.
It has good prospects of re¬
taining its growth.
,
/
'
Charleston, S. C.
■
of
Columbia, S. C.
Columbus, Ga.
rate
Chicago has only fair prospects
retaining
even
its wartime
population. Its metropolitan coun¬
DuPage, Lake County,
ties (Cook,
Mobile, Ala.
Galveston, Tex.
,
/
the
war
having little prospects of
and
regain¬
ing their losses, include the
Lake
and
Illinois,
County,
In¬
diana) showed a decrease of 1.4%
between 1940 and 1943.
Metropolitan counties losing
during
have
may
follows:
New
average
Calif.
Detroit, Mich.
Los Angeles, Calif.
San Diego,
population
certain
for
which
Indianapolis
San Antonio, Tex.
La.
best
•predict.
Jacksonville, Fla.
New Orleans,
the
^
prospects
areas
back."
regions most
apt
to
retain
their war-time
growth and to continue to grow,
the following metropolitan coun¬
with
those
special interest to you, appear to
2. As examples of
3.
that
the North.
in
be
The
continue
Note
prospects are, with the exception
of Detroit, in the West and South;
those with the poorest prospects,
to
Atlanta, Ga.
San Francisco, Calif.
•
the
the
Then, too, there is the grow¬
3*4% refund¬
ing bonds optional Jan. 1, 1946.
the
could be
this month
late
bonds.
State
than
of this conclu¬
hand, for ex¬
also
ipates
bonds
A consider¬
part of November
offering
refunding
investors in
ample, mention may be made of
its influence as regards the elig¬
market
in the first
and
of dealers
tions
official word had
at
propor-
that
'
the 30th.
Although
direct
in
deteriorated
tion to declining populations.
Mutual
Guarantee
$1,995,000 various Florida munic¬
ipals; $500,000 by Gibson County,
Tenn., and $3,000,000 by Cincin¬
nati, Ohio, this latter issue to be
The
•
financial hazard, par¬
a
ticularly in times of general eco¬
nomic upheaval, with the accom¬
Ashe
County, :N. C., on $1,094,000 re¬
fundings; which aire to mature panying heavy demands on local
serially from 1947 to 1977, incl. budgets for welfare and relief
In
addition, there is the Thief expenditures.,
River Falls,
Admitting its imperfections,
Minn., offering of
however, it is nevertheless true
$250,000 water works, bonds, to
mature fromV 1948 to 1957, incl.
that the population factor can,
On
and does, enjoy
an
important
Thursday, Oct. 25, Frank¬
fort, Ind., will act On bids sub¬ f position
among
the
various
mitted on an issue of $400,000
guides employed in ascertaining
electric utility revenue bonds, due
the investment qualities of local
semi-annually from 1947 to 1966,
public bonds. Recent history, it
may
be here pointed out, ^ is;
incl., although subject to earlier
studded with examples of com¬
redemption at the city's option.
include
Walter
.
$4,330,000.
which bids will be taken by
Director of Research of J.
-
"
the redemption of
•
Lincoln, Neb.
;
r
f j
Manchester, N. H.
;
Writing under the
Pittsburgh, Pa.
title ("Population and Purchasing
Reading, Pa.
by wartime conditions. It is true, Power Trends," (see "Chronicle"
of course,
that numerical size of Oct. 11, page 1702), presented p: Rochester, N. Y.
/
a
,
alone is far from being indicative
Springfield, 111.
:
v
J
some
views which, we believe,
of -tho /debt-paying /capacity//of merit repeating in this column.
Toledo, Ohio
v,/ J./».;■■ /
'
Wheeling, W. Va.
<
'
any community. Actually; density
Specifically, we refer to Dr.
of population can in some cases
'. Worcester, Mass.
-<>y) Reed's analysis of the vast shifts
is from
the 56
Board of Education will appear
although
.
the various obligations
1946
it is expected that the Chicago
1
vance
on
on
1,
/ 1965,
should
*
bids
The
Dec,
3d,
Secretary.
and
offerings, the Fund is asking for
Operations
i-
As in the
Fund.
.
-
be of more than academic interest
Population Trends
Oct. 29 will probably
an
enforced quietus of
on
-
Boston, Mass.
/
Duluth-Superior, Minn.
;.V
Fall
River-New
Bedford,
Mass.
particularly so in light of the
Scranton-Wilkes-Barre, Pa.
'
conclusions contained in a study
Lancaster, Pa.
<
by Dr. Vergel J. Reed, Associate
it is clear that the subject
Past and Probable
Mnnieipal News & Notes
in
but
^
,
Starting
<
envelope marked on the outside
State of New Jersey, and enclosed in a sealed
Proposals should be addressed to the Teachers' Pension and Annuity Fund,
j J Although, the
,
.
/
t,
,
"PROPOSAL FOR BONDS.'''
the
"
.
Union County, School 4,/a's, dated Decem¬
December 1, 1951 and 1952.
Opinion of
Town,
1, 1924, maturing $1,000
Reed, Dougherty and Hoyt, *
V
56—$20,000
Block No.
V
ber
v;
\
City, Passaic County,- Serial Funding 4's,
dated
maturing $13,000 on October 1, 1949. and $5,000 on
Opinion of Hawkins, Delafield and Longfellow.
No down
ers
</■
-
*'
p:M Each proposal should state the amount in dollars and" cents bid for each block of bonds—accrued interest to the date
J
"
dated
Dela¬
Weehawken Township, Hudson County, General Refunding
4's, dated October 1, 1935, maturing $50,000 on October 1st each year
1949 to
1952, inclusive, and $30,000 on October 1, 1953.
Opinion of
Scotch Plains Township, Union County, School 4%'s, dated
March 1, 1926, maturing $6,000 on March 1st each year 1946 to 1951,
inclusive.
Opinion of Hawkins, Delafield and Longfellow.
Passaic
$20,000
October
result
.
,
County, School, Series B, 4V2's,
1951.
Opinion of Hawkins,
$230,000
M-:-
",**
'
v.
...
Essex
Orange,
1922, maturing August 1,
1,
Borough,
1,
;■
.
,
School 4V2's, dated October Z»
to 1955, inclusive.
Opinion of Hawkins, Delafield and Longfellow.
$12,000 West Orange, Essex County, School, Series A, 4V2's, dated
August 1, 1922, maturing August 1, 1951.
Opinion of Hawkins, Dela¬
$36,000
December
J
v
.
54—$24,000
"
Delafield and Longfellow.,
/
No.
Block
West
$10,000
Union County, General Refunding 4%'s,
1935, maturing December 1, 1950.
Interest payable
and December 1st each year.
Opinion of Reed, Hoyt and Wash¬
burn.
1953.
1930, maturing $2,000 on October 1st each year 1951
;
.
Block No,
:
•
No. 47—$15,000
:.^ry S&MMS"ftp- Block No. 48—$30,000
,
$20,000 oa
Opinion of
1950;
1,
<
and Longfellow.
$30,000
dated
General Funding 4%'s,
Hudson County,
City,
1,
March
Improvement
,
53—$127,000
1935,
maturing $17,000 on March
1,
1951, and $45,000 on March 1, 1952 and
Hawkins, Delafield and Longfellow.
March
Local
County,
1931,
Washburn.
$7,000
$127,000 Union
4G—$116,000
Bergen
March 1, 1936, maturing $4,000 on March 1,
on
March 1st each year 1949 to 1952, inclusive.
Hoyt and Washburn,
■>..
4VS»te, dated November 15. 1937, maturing $4,000 on Novem¬
year 1946 to 1952, inclusive.
Opinion of Reed, Hoyt and
B,
ber 15th each
Block No.
Longfellow.
V
••
$10,000 Ridgewood Village, Bergen County, Improvement 41/4,s, dated
May 1, 1931, maturing May 1, 1951.
Opinion of Hawkins, Delafield
dated
Township,1 Morris
Paislppatty-Troy. Hills
$28i000
Series
1946
year
$5,000 Ridgewood Village, Bergen County, Water 4V2's, dated May 1,
maturing May 1,
1951.
Opinion of Hawkins, Delafield and
■'
Block No. 42—$28,009
,
Borough,
Block
County, Refunding 3's, dated
maturing $11,000 on December 1, 1948; $10,000 on
December
1, 1949:
$20,000 on December 1,
1950, and $18,000 on
December 1, 1951.
Opinion of Hawkins, Delafield and Longfellow.
$19,000 Palisades Park Borough, Bergen County, Refunding 4's, dated
May 1. 1937, maturing $12,000 on May 1, 1946, and $7,000 on May 1,
1947.
Opinion of Hawkins, Delafield and. Longfellow. -*
each
'
1940,
1,
15th
4%'s,
Cald¬
$10,000 Tenafly Borough, Bergen County, Public Improvement
February 1, 1930, maturing February 1, 1947.
Opinion of
well and Raymond.
- .
dated
$28,000
Opinion of Reed,
$59,000 Palisades Park Borough, Bergen
December
December
on
No. 52—$10,000
Block
dated
4Va's,
dated
4's,
and
1948,
B,
$7,000
Block No.
-
2%'s, dated February i, 1939, maturing $20,000 on February 1st each
yfear 1950 to 1955, inclusive.
Opinion of Reed, Hoyt and Washburn.;;^-.
B,ock
School
Opinion of Hawkins, Delafield and Longfellow.
Ridgefield
$116,000
Series
Funding,
General
maturing
1922,
15,
1952, inclusive.
Longfellow.
Summit City, Union. County, School 4V2's, dated February 1,
maturing February 1, 1953.
Opinion of Reed, Dougherty and
Hoyt.
County,
30,
cember
to
:P:^s4MSS[
No.' 40—8120,000
Block
Gloucester
1925, maturing $8,000 on July 1st each year 1946 to 1952,
inclusive.
Opinion of Hawkins, Delafield and Longfellow.
•„
$49,000 Pitman Borough, Gloucester County, School 4I/a's, dated De¬
Oaklyn
$50,000
Borough,
Pitman
$56,000
and
$5,000
1922,
,
June
dated December t,
Opinion of Hawkins, Delafield and
1930, maturing December 1, 1950.
Longfellow.
v
$12,000 Summit City, Union County, Improvement 4'A'8, dated De«
cember 1,
1930, maturing December 1,
1950.
Opinion of Hawkins,
Delafield and Longfellow.
$5,000
Summit City, Union County, General Improvement SVi'*,
dated July 1, 1933, maturing July 1, 1954.
Opinion of Hawkins, Dela¬
dated June
June
*■ '
51—$30,000
Union County, School 4%'s,
$8,000 Summit City,
.
$10,000 Paterson City, Passaic County, School 6's, dated May 1,
maturing
,
Block
-
-A
:
(
fol¬
lowing:
Louis
St.
crease
only
showed
a
slight in¬
the war, but has
prospects of retaining
during
fair
the increase.
Minneapolis-St. Paul area has
lost
slightly during the war, but
fair
Albany-Schenectady-Troy, N. Y.
has
Altoona, Pa.
back."
prospects
of
"coming
.
£56
Level ol Stock Prices
The Present
des¬
(Continued from page 1818>
tined to regret their policy. For
bargain opportunities from the
although they could have doubled
market,
and the disproportion¬
their capital and then gotten out
ately great advance in stocks of
at the peak, the very psychology
poorer grade since 1941.
.
,
that kept them in the market at
4. The prospect of a consider¬
185 was almost certain to prevent
ably higher tax burden than prethem from escaping in time.
it
6.
,
troubles.
Political
uncertainties—both
and international.
;y,; ,
domestic
f
la¬
and prospective
Current
5.
bor
It
that the
with the
termination of war
strange
of the war,
seem
may
sudden end
precipitate
resultant Prob¬
lems of reconversion, are not list¬
ed among the unfavorable factors.
But it is reasonably clear that the
physical tasks of reconversion are
proving much less protracted than
was
feared, that financial losses
due to contract cancellations will
business
and that peace is
real threat to corpo¬
be serious,
not
itself
in
and the
no
earning
rate
market
feared
appear
which
little
the
reconversion
concentrated in the
policy—an aspect
until recently had received
anticipatory notice.
This
to be
of
area
In present
once-
power.
discussions
problems of
labor
aptly our general
point illustrates
economic events rare¬
thesis that
ly unfold in the way stock-mar¬
ket people forecast them.
listing of argu¬
By the simple
and con, given above,
we achieve no more than the ob¬
vious demonstration that there is
much to be said on both sides of
the market. However, these fac¬
ments
tors
pro
by
are
of equal
means
r no
differ¬
weight, and they apply to
stock-market evalua¬
Some of them relate to (a)
ent areas of
tion.
general pattern of market be¬
havior, others to (b) the funda¬
mental
method or formula for
the
appraising
and
stocks,
common
(c)
the field of future
expectations.
We shall group the
others
to
they belong un¬
each of these successive head¬
ments
der
unfavorable argu¬
and
favorable
together
as
ings. ; As will be
clusions will vary
from
pass
seen,
con¬
our
somewhat as we
the
approach to
one
'.Y-
next.
identifying the past and
present levels of stock prices we
In
,
shall
the
Dow-
Average.
While
in¬
concentrate
Industrial
Jones
on
this is not necessarily the best
dex of the movement of the stock
market,
it
sufficiently
is
repre¬
sentative for the purposes
of this
study. In addition, it has the im¬
portant advantage of permitting
us to relate directly the earnings
and
dividends
unit
over
of
the
Dow-Jones
period of years to its
price fluctuations. The record for
a
the 30 years 1915-1944 is set forth
in the attached table, along with
certain
economic
data
of
major
consequence. (The Dow-Jones Av¬
erage now represents substantial¬
ly the sum of 1/15 of a share of
each
of
30
leading companies.
equivalent to about
Hence, it is
two
shares
of
the
average
issue
included.)
A.
The Stock Market Pattern
A
simple and powerful argu¬
against the present level of
stock prices is presented by the
ment
stock market's
history.
Average
has
Dow-Jones
above
own
The
sold
185 at only two periods in
its
50-year record—the first in
1927-1931 and the second in 1937.
the latter case the 185 level
In
proved close to the top (194), fol¬
lowing which the average de¬
clined about 50% in 12 months.
In
the great bull market of the
1920s the present level
proved to
be at the
half-way mark; the av¬
erage advanced to 381 in 1929, and
then tumbled to the abysmal
fig¬
of 41 in the next three
years.
If the market's
present
ure
position
resembles
that
of
either
1927
or
1936-
it should
clearly be avoided
by both investors and speculators.
The significance of the 1937 anal¬
ogy is obvious, but it should be
realized
also
that
most
of those
who remained in the market ai
reached
185 in 1927 were
subsidiary argument of con¬
A
siderable weight
ent
(say,
reaction
corrective
wide
than 15%) since the turn
more
the
against the pres¬
market is the absence of any
tide
in April,
of
1942; This, we
believe, is without precedent in
the history of stocks—except that
after
early
in
set-back
20%
a
1926, the market then advanced
fairly steadily for ZV2 years until
it met its doom. In one sense this
two-edged 'argument,
since technicians may claim that
the bull market should have at
least
one
respectable recession,
with a subsequent advance to a
still higher level, before its major
trend is reversed, Whether or not
this reasoning is persuasive, there
would seem to be real danger of
at least a good-sized technical set¬
back in the market at some time
in the next few months.
It* is natural to refer to the mar¬
ket's action after World War I,
but this may not be particularly
relevant or useful.
After moving
carries
a
logical or
link between past and
inflation will break the
historical
levels.
future market
-
fact to
of the 40% advance in
Inflation may be
the extent
called
the index of wholesale
a
guide to the future. This permits
application of a definite formula.
If we studied the record of the
Dow-Jones Average since 1915, we
would be somewhat surprised to
note that the .earnings have an
obstinate
tendency
to fluctuate
around
$10
per, unit.
This is
brought out . clearly when we se¬
prices be¬
general
in which
years
conditions were about
"normal"
as
measured
by
the
business
prices from now;on is, of
course, a matter of opinion.
The
writer would reiterate the view,
sale
Co.
Trust
Cleveland
—
Index.(These
Ayres
Leonard
are
1915,
.
table.)
changed definitely over
and
1924
expressed in these columns in De¬
cember, 1943 [Dec. 2, 1943, p. 1]
that the odds are against largescale- inflation
growing out ; of
lack of faith in the dollar. At that
time it was our view that, even
though inflation was not probable,
the prudent investor should guard
against it in part by owning com¬
mon stocks
in addition to Gov¬
ernment bonds.'. This advice was
the
lect
August, 1939, and the pres¬
What will happen to whole¬
tween
ent.
Thursday, October 18, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1940.
.
What has
See
our
is not the earning power
but rather
rate at whiqh this earning
the years
of the industrial group,
the
power
f
has been capitalized,
This brings us to the most im¬
,
portant.
,
long-term in¬
the reduction in the
grounded on /the conviction I that
stock prices (the Dow-Jones Av¬
erage
being at 129)
were not
intrinsically too high without re¬
gard to inflation; hence the in¬
vestor
would
not
be
paying
1943, this has fallen from about
to 2 Vz% on first-grade in¬
dustrial bonds.
It .may be argued
that if earnings of $10 on high*
anything
except through some
wear-and-tear, for
the
recommended insurance. Now that
the market is about 50% higher
now
mental
giving formal justification to the
this argument of "cost-free insur¬
ance against inflation" can hardly
vances,
apply.
5%
grade
about
industrials were worth
$100 in 1924, they should
be worth about $200—-thus
present market levels.
However, as the multiplier ad¬
would be inclined to
fair amount of attention to
we
pay a
asset values,
especially since low
raise
we
'
the
question
whether the market may not take
cautious
as
a
view of the restock- /
boom as it did of
ing
war earn-/
Both are essentially tempo- \
rary in their nature, and the mar¬
ket might surprise us by looking, *
say, two years ahead, to the end t
of the restocking boom, just as it;
persisted in looking ahead to the *]
ings.
end of the
If
r
war.
could
we
;
.
; fc
, .
.
that
assume
we are V
entering a permanent full-employment economy,- we could •
now
also that we shall have a;
assume
permanently high level of busi¬
ness
and presumably-a perma-}
nently higher level of stock prices."
To us, this appears to be a dan-'
gerous
assumption on which to.
base
market
policy.
Upon an->
alysis, we find only two substan-'
tial facts which support the hope
,
of
boom."
"permanent
a
These r
are, first, the, huge increase; in:
the public's holdings of cash as¬
and
1924
Between
rate.
terest
which
element
bullish
established fact—namely,
rests on
clusion,
sets/and, second, the great psy->
chological emphasis now placed £
on the necessity for sustained full
We may hope that
employment.
this
new
faith will move away the!
peaks and valleys of the business
cycle, but we cannot avoid some
unwilling skepticism on this point.
"
'
would be
It
of the many
one
of modern economics
experience a perma¬
nently higher level of business ae-1
tivity stemming primarily from
the public's increased cash assets.
For this cash is only monetized
paradoxes
if
did
we
of interest rates tend ultimately to
irregularly in the last year of the market movements is the general depress the percentage earned on
invested capital.
Our own for¬
conflict, and hesitating after the pattern of speculative thinking.
mula would give 25% weight to government debt, and it repre¬
Armistice,
the market
entered We are impressed by the fact that
asset value.
On this basis, the sents at bottom an enforced re¬
the speculative attitude appears
upon a one-year advance which
carried the average from 80 in to have changed greatly in the "average earning power" 'of $10, sort to traditional but unsound
the multiplier of 20, and the asset methods of financing the war.*
November, 1918, to 120 in Novem¬ past three years, while the under¬
value of about $110 per unit, com¬
According to the copy-book max¬
ber, 1919. This rise accompanied lying facts and expectations are
bine to yield an appraisal value of
ims, this enormous debt should
a speculative boom in commodi¬
not much different than could
ties and inventories, which culmi¬ have been forecast at the end of $178 for the Dow-Jones Indus¬ bring us grief and not prosperity.'
Allied to the general pattern
,
trials.
and a 1942.
In its broad outlines, the
Needless to say, these appraisal
depression.
The level of war went about as anticipated; its
stock
effects
On
the position of corpora¬ methods are not as precise in their
prices was much lower
throughout those, years .than at tions and on the public's holdings dependability as they are in their
We would consider
present, although the actual earn¬ of cash have also proved in line mechanics.
ings on the Dow-Jones unit were with projections. Experience in-r that the net import of our apprais¬
considerably
higher
in< World dicates that when the market al is rather neutral. It suggests that
Dow-Jones Average is
not
War I than in tlje last war.
< < j t
shows belated and rather spec¬ the
Of somewhat different import tacular recognition of conditions necessarily high, in terms of in¬
thdn the preceding argument is that have been in the wood for a trinsic value factors, but also that
the fact that bargain issues have long time, there is added reason it is obviously not on the low side;
We. should not ignore the fact,
practically disappeared from the for caution.
stock market. If we define "bar¬
however, that in bull markets
Consequently, taking all the
stocks tend to sell considerably
gain issues" for our purpose as market
pattern
arguments to¬
above their normal or appraisal
those selling for substantially less
gether we should conclude that
value.
For this reason a neutral
than their net working capital,
their net weight is unfavorable to
verdict on present prices/from the
we find that present situations of
the stock market, and would jus¬
this type are substantially limited
appraiser's standpoint, might log¬
tify a selling policy. But this is
to a few aircraft manufacturing
ically/be construed as rather en¬
only one facet of the question.
and machine tool companies—in
couraging
to
the
speculator,
addition to the investment trust B.
The Valuation of the Indus¬
though not truly so to the in¬
vestor.
•
trial Average by Formula
and
insurance
company
shares
which
have
regularly
sold
at
It is by no means customary for
C.
Prospective
Developments
substantial discounts. Experience investors to decide whether stocks
Affecting Stock Values
shows that when really cheap is¬ are
high or low by first making
In
sues are scarce the general mar¬
giving this: section about
an independent
nated in a market collapse
deep
-
appraisal of the
ket is high; but,
not
present
principle.
of course, we do
this
as
infallible
an
" *
-
market
price in recent years a
good deal, more than have the
leading issues comprised in the
Dow-Jones Average.
These ad¬
vantages are related to the ab¬
sence
of competition under war
conditions, and they -may well
temporary.
/
^
'
,
his trade—and he finds*
support for this practice in
extent to which such
appraisals are being relied upon,
in estate and gift tax cases, in
the widening
ing
of
prospects
stock
market
history.
If
the
good part of its
buying power, then it may prop¬
erly be claimed that future stock
nrices
need
a
not
be
governed
by
their historical upper limits which
expressed in better dollars.
capitalizing this at an
which
in
is
The fact
ground
that
so
are
stock
we
are
in forecasting
4£ franc in
under
Even
vance
though stocks
as
much
as
may
not ad¬
the dollar value
falls,, it would still be true that
income
levels
It
of
far
seems
that
above
practically
we
very
pre¬
good
have
a
business
into
Peering
-
as
: the
-
best
crystal ball,,
the
should be inclined to forecast
we
averageI national income and cor*
porate profits well above the pre¬
war
figure.' This may well be
found to justify an average price
of stocks even
higher than the
present apparently dangerous lev¬
and
implication
But this is only a guess,
els.
it does not carry any
that
shall
we
able
be
and sharp declines in the
tivity
stock market.
-
The three factors listed
meet
as
war;
tax
large as it was during the
but with substantially lower
the earnings on the
Average might easily
rates,
Dow-Jones
this
If
may
of
a
than
prospect materializes, it
seem
to afford justification
higher price
for the average.
As
considerably
185
against this
rather, obvious con¬
•
-
and not
upon—relating
touched
yet
to
work¬
ing capital—are subsidiary to the
general viewpoint just expressed.
taxes, labor problems, and
higher
justify
before
than
the
would
prices
stock
for
war,
a
40%
corporate tax is more than twice
heavy as the burden of 1939.
as
There is much talk about cutting
corporate taxes to zero or a mi¬
nor figure, but this appears to us
to
be neither
a
political nor a
fiscal
possibility.
In
thorough-going analysis,
corporate working
a
factors of
the
capital and corporate tax burdens
would prove to be rather unex¬
pectedly joined. The working cap¬
non-financial
of
ital
about
has
doubled
in
increasing from $25
Nearly all
billions.
companies
six years-
to, say, $48
of this ex¬
pansion is found in the holdings
of
Government
S.
U.
On the
securities.
surface, this appears very
to :i corporations.
But
favorable
there
another
is
side
billions in government
can
avoid
to
sharp fluctuations of business ac¬
of
a
debt, noncorporations have been
financial
able
to
add
their assets.
only
some
sented by their
liability,
at
and
high
to
repre¬
effective share of
of the debt burden?
taxes
10%
What is the amount
of their offsetting
Both at low
points, corporation
income taxes
and personal
have been about
current
has
which
to
given. Out
total increase of nearly $250
,
earnings
significantly,
higher levels, of /business ac¬
tivity.
the enormous
be
J
of the country may
contribute
actually
to
little attention has been
reach $16 or more.
„
to
after reconversion is
fairly well completed and manu¬
facturers
broad de¬
strong tendency to accept past
*
or
ahead of us,
in theory, it is only
exoected future earnings that are
to be capitalized, in practice there
average
restocking,
figures.
period
Although,
a
to
certain
in
is
Optimum as to future .earnings
on the expectation both of a
war
velopments, and allowing individ¬
ual variations to cancel out, than
uated issues.
a
much higher than it was
the
19tf franc in 1914.)
\"
up,"
boom
and
a
longer-term expansion in national
much
(Obviously, for example, the level
was
people can
policy.
pent-up demand for durable goods.
on safer
It is doubtful if total volume will
of French stocks at
1926
know;
"catching
market
how
"fiat wealth"
guess
shorter-term
r issues,
even
unable to make' the
selective distinctions as to future
attempting to differentiate be¬
tween more or less favorably sit¬
were
...
we are
stressed
to
have
rests
individual
to
though
would
we
forecasts.
appropriate rate, and making gen¬
erally minor adjustments for asset
values or special conditions. Con¬
trary
to
first
impression,; this
method is perhaps better appli¬
cable to a group of stocks—such a5?
the Dow-Jones Average—than it
is
all
the future and since
they have the embarrassing habit
of guessing wrongly, it seems best
hot to lay too much stress upon
estimating future earn¬
problem appears to
rather than
produce them, this new.
how to sell goods
be
not
only
general theory of appraisal
be quickly
summarized.
It
power,
atten¬
our
Lower taxes in themselves
but since stock market
The
can
over-all
primary
against the common practice
of attaching decisive importance
to future expectations, as regards
4—The present level of stock —
both the general market and individual stocks. If we really knew
what the future will bring that
is
corporate reorganization and re¬
capitalization proceedings, in mer¬
ger negotiations, etc.
The inflation argument really
belongs as the direct counter¬
poise to the bearish implications
dollar is to lose
consider¬
able
consists of
our
in
the
tion, we are probably showing a
bias
The
writer, however, uses
this method as one of the tools of
Drice.
(•. A similarly unfavorable indica¬
tion is provided by the Very great
percentage advance in low-priced
stocks, since. 1941;, also
by. the
large number of new stock offer¬
ings at nominally low but in¬
trinsically unattractive prices.
(This might -be referred to fa¬
cetiously as "the
current high
price of low-priced stocks.") Sec¬
ondary stocks in general have in¬
creased both their earnings and
prove
uations
of
one-third
comparing the val¬
found with
the market
issues and then
strange world, where
Yet
tax-bill
been
a
equal; and in the
discussions
definitely
there
expressed
intention to grant equal relief in
...
;
Volume
;;
lower taxes to both classes of tax-
^
payer.
.
Number 4430
162
r:
[THE COMMERCIAL* & FINANCIAL CHRONICLE
John 0. Wheeler With
X-
s
This suggests the
H. 0. Peel & Go.
,
-
share
3
•
of
the
If this is
increase
of
rate
submerged
;
by
of
crease
is
assets
the
$125
in
invisible
in
*
In
terms
of
balance
this concept
ures
tic, but it is not
?
to
that
assume
With
their
Wheeler
fig¬
fantas-
extraordinary
will
corporations
>
has
a corresponding tripl¬
ing in corporate profits before
taxes, this added tax burden can
assumption
by
fluctuation
however, by
of
than
erted
pronounced
a
ued effect
and
and
1940—
higher
or
prices; since 1929, there
>;
to have been
and
tax
a
costs
combined
to
rising ratio .of
a
it is doubtful if earnings
will increase
much
as
stocks
on
the level
as
corpo-
Vrate income taxes should be virour
tables that the Dow-
■
.Jones earnings were only a shade
yy larger on a $78 billion national
a
income in 1940 than they
*1915,
•
U lower
domestic
and
vestor will
ture
to
will
stock
be, when they will affect
prices, or 'C to what extent;
The
market
ods.
say
little that is helpful.
think he has
ing
on
likely to
are
be
the
little better^-of
a
market
see¬
substan¬
attain
subject to the probability of iri->
;
more
Interesting, than tranquil.
This discussion of factors bearmg on future earnings and values
leads to very mixed
conclusions,
*
with .the
holding
to
on
the
profits he makes beyond the
cur¬
rent
bet¬
18.62
1917^4
13.77
6.74
•
_
1921_i.
;-1929____
:
V
>'
'
\
'
*
•
'
Earns.
Income
Price
Industrial
Ratio
(billions)
Index
Product'n
7.0
$38
70;
45
yvsey
5.1
4.0
53
118
58.
131
66
139
2.57
-
•,;31935w-
V
„
-
_____
1936—
—11
1937—1—
11
1
:
135
139
V
84
•
y' y —.w
9.98
7.07
162
8.15
166
14.5
4.84
132
21.8
?"
;
6.30
y
10.88
v
7.05
•
y
65
98
•
'■■■*:
97
71
.
■
5
>
-
^
^
1942—:
7.50
9.22"
;t1944——r—
Source!
;
9.74
,
'•
,
t
10.07,
i
1915-1928
:>■
73
-
i
99
95
"69
f
suddenly hit with 1,800 shares
of buy orders Monday morn¬
ing and couldn't open the
book
because
of
insufficient
S.
12.4
..
;
New York Stock
New
rowed
Curb
1
Exchange
Exchange (Associate)
Chicago Board of Trade
bor¬
on
York
New York 5, N. Y.
14 Wall Street
money.
—
how
matter
no
credit
sound
the
The
structure.
will do the
same.
man
who is reluctant to sell today
bases his reluctance on the
So in
I
belief that present prices
be improved.
He faces
spite of the fact that
to be in the
will
the
I
seem
advise
no
more
1
'
.
.
.
73
75
40
65
42
y
y65
.
66
Winners af
y
.
72
81
; y
':'y 71
.y-y 78
v
;
89
10.6
97
87
to the Bond Clubs of
;
107
11.6
13.9
349
103
239
6.40
/
143
14.2
161
104
235
-
-
99
Toledo, Cin¬
Country Club.
inter-city golf competition
party, held at the
Cleveland
Club
indi¬
.won
vidual trophies donated by
Hosford,
.
.
-
House
&
Co.,
and
John
and
George
Phillips
Hay of
Joe Fogg
of
low gross
W.
honors, both scoring
Pittsburgh
money
the
won
D.
130
About
presided
of
Hornblower
President of the
by
Bond
&
the
Paul
Weeks,
199 ; :
Financial
'
-
Freeman
with
Harris,
become
Upham
South La Salle Street.
P.
associated
&
man
Dept. of Agriculture.
in
the
past
Bros. & Co. for
a
was
expressed
in
this
necessarily at any
time coincide with those of the
Chronicle.
They are presented as
those of the author only.]
not
indicative
Inci¬
you can expect an
increase of this stock-splitting
gimmick which comes up
every time the public has the
LAMBORN & CO.
99
:
WALL
STREET
NEW YORK 5, N. Y.
Co.,
But the
same scarcity of stock
brings about sharp ad¬
vances
brings about equally
sharp declines. A stock which
goes up a few points between
sales can drop the same few
points on selling.
In fact,
process is usually faster on
which
declines..
,' -r"
<
;
' /•
<3 * .-3 *
the
,
American
3
selling> at
62;
Established
135
Mr. Free¬
with Sutro
number of years.
middle
the
:
of
its
&
and 46;
barriers,
Motors has
difficulty with the 75 price
and U. S. Steel at 80 is right
90-93; .General
at
its
1939
level.
These
1859
H. Hentz & Co.
meets
Delaware
between 44
\".q
DIgby 4-2727
*are
now,
Smelters
)
.
despite
general market strength.
right
M't SUGAR--.;
Exports—Imports—F utures
:
stocks
of
number
A
in trouble
\
Chrysler "is in trouble from
126 to 130; Bethlehem looks
like it has a few more points
left in it; Dupont is right in
Chronicle)
ILL—Clarence
has
views
do
Members
York
New
York
New
York
New
Harris, Upham & Co.
The
[The
article
dentally^
Hudson
Club.
Freeman Joins Staff of
to
are
markets.
the? thin
of
top
attended
over
Air Lines
ern
77s.]
prize in the $1,000 Victory bond
raffle.
daily be¬
Harry rubber band off its bankroll.
with
(Special
162J-
335
122
The
host
cinnati and Pittsburgh, at its fall
CHICAGO,
125
'
;.|
>
—
was
OHIO
Club of Cleveland
Bond
yi
109
771
79
.
'. " •
v.*'"-'
113
'f
79
J
:v'
74
87
103
86
64
Outing
CLEVELAND,
are
coming hard to buy is also
quite obvious.
Stocks like
Distillers Seagrams and East¬
58
69
y--".
'
stocks
That
Cleveland Bond Club
Eakin
86
6.50
1929-1944 U. S. Dept. of Commerce.
ex¬
might be said that the
advance is not based
*
\,4
U.
tent it
risen, and to that
minority,
buying at
these prices.
Instead I sug¬
future with calmness firm in
gest raising stops in the four
the belief that nothing can
stocks you are still long of.
hurt him because he owns his
Here they are; •,
V.
;
stocks outright or close to
.A. M. Byers, raise from 19
This kind of buying is typi¬
outright.
to 20^. Originally bought at
cal of public entrance with a
*
*
*"
19 and half sold at 21.
vengeance. It sets stocks off
You can be certain, how¬ Jones &
Laughlin, raise stop
on mad races nobody knows
This one was bought
ever, that thi$ same mari^will to 39.
the end of. It is also the kind
fall all over himself to get rid at 35 and half was sold at 41.
of a market that makes for
of his stocks, outright or not, Incidentally
stock
shows
sudden and sharp advances
if a decline sets in. Such sell¬ some evidence of
being able
which in turn bring out all
ing wouldn't be bad if it was to go to 45.; But if it breaks
kinds of fantastic forecasts.;
limited ]tq the so-called bad the 39 level it is doubtful if
The dangerous part is that
stocks, viz., stocks which are it can see the higher price
people actually believe all the in the red. But when it comes
without going through a long
wonderfuithingstthey;hear, to
selling,* few people get rid resting period. > y
^
Paraadd to them, and pass them
of their dogs. They hold on mount's
stop is now raised to
on as
something that is "sure to them and sell'their
good 37, Bought originally at 30 M?,
to happen."
• -; '
stocks (those with profits) on half was sold at 35.
White
the theory that in that way Motors, raise stop to 33. This
Brokers' offices arebusy
they avoid taking losses. The one came in at 29V2 and half
places these days. The aver¬ truth is that the man who can
was sold .across 35.
age customer's man doesn't
take a lqss—rapidly — will
V";'" ?
# V'?' ♦
; •'
4.;.
have to worry about getting
make more in the long run.
More next Thursday.
his accounts to trade. They
♦
■: *
*
—Walter Whyte
are all too anxious to trade.
selling orders. There was a
meeting with the Governors,
and
when stock ; finally
opened it was up a couple of
points.
-v;' ■
party,
55
75
135
122
6.50
'
Schwabacher & Co.
Members
haven't
.
]
•yyTioyy-y
91; :
-
86
15.3
;
,
95
97
56
?■
*
•
?
50
*
90
r
rlf- 96 ;':■;
y
17.7
16.2
-
-j1
02 •
;
J
88:'
1
11.46
T
\
58
83
'
1943-1——^
ns
81
20.9
143
.'S
;:t
98
95
■
120
,
101
".' •79
23.4
-
98
100
16.1 P y•
;
4.12
?•
Exchanges
;
Gradison & Co., Cincinnati, shared
,..104
14.7
:
>,
"80
-
13.3
3.28
9.33
——
236
■-■'■
10.6
.
6.78
6.07
1941———_—_
r?
-
•
9.9
;
-
? :
^ '
on
—
Merrill, Turben & Co.
:'^ .V
154
yy-i 58 yv;
i SW 61 :?>';•
;V " TI
9.5
4.68
11.41
—
:.'v1938-ii-^.-:-.-—'
?\'i 1939—_„
3.03
11.2
311
4.09
73 "y--
y;
y 8.3
?
153
226
6.73
13.4
y-V
95
ioo
y
2.68 ^,
7.2
93
•y
5.92
10.06 V;
5.0
■
73
176
■S.
■>/:;
90
.
^
ardor
Ripley & Co.; Mel Cox of Curtiss,
:
-
5.54 V
; 7.06
J .7.44
the
F. R. B,
markets—\
too good.
none
-"•■
100
«-4.i7:.y:,
■v';.. .31
.,;-1934>——
,
si
•:4.27'"
?
19.31
•
O 1932i
-
88
3.94
•'
113.18 v".
:. 15.36;
;
1931--„„
.
95
•:
2.96
-.
10.52
13^4 ?
1'1928____:
...
1
.5.63
14.44
.vi927ii„.i_i^;_^_-_
:■!.
-4.27
3.38
11.38
•
A
V-1925-1
,
74
:. '.-3.44
;;
o.oo
;■?
*1923—
*
;
•
y. 5.64
; 4.07
cool
to
Cincinnati nosing
out
Toledo
and
Pittsburgh for
second place honors.
Represent¬
ing the Cleveland team were Joe
Fogg Jr. of McDonald & Co.;
Herb
Covington
of -Harriman
no
'
<1924ll____.
■
-
16.18
'1919__
S.-U 1933If
'
Price
$2.20
a 21.90 y
■v
'"19201*
'
level, we should term
y Mkt.
C1916J_
>
-
Divs..
,
"«
Coast
—
the
eventualy
and that is
^
$10.59
Executed
COrtlandt 7-4150
But it is
Teletype NY 1-928
buyers rushing in to par¬
Private Wires to Principal Offices >
equally true that the lack of
ticipate in what is now begin¬ debits is
San Francisco
Santa Barbara * \
mainly due to the
Monterey
Oakland
Sacrament*
ning to be called the inflation¬ new m a r
Fresno
g i n
rules.
But
ary
advance.
Some stocks whether the market was fi¬
even opened higher than their
nanced by borrowed money reaction
signs.
Yet if these
previous close. The specialist or
not, it cannot stand up un¬ go down it is almost a cer¬
in one stock, for example, was
der liquidation once it starts,
tainty that the rest of the list
of
DOW-JONES INDUSTRIAL AVERAGE"
Earns.
declines.
on
3'It is true that during most
of the current advance debits
can
of
In the
ter than in former bull
weight of the argument
i9i5
little
tervening reactions. But his chance
^
•
.
new
We
f ifty-fifty chance—
a
tially higher than present heights,
Anyone with a
for history could hardly
years
perhaps
or
com-
: feeling
avoid the conviction that the next
:
course,
For the; stock speculator we
can
indefinitely.
i ten
of
,
present
equally thin
did
Pacific
tage of any possible break.
his individual position and meth¬
predict what these forces
at
attract
But stocks
A two-day market holiday
;;
Orders
to take advan¬
Sharp advances
stocks
thin
•'
■
placent on these questions, but we
greatly doubt that it will remain
so
com¬
selling
precise
to depend,
policy
itself in
is
traders.
power
k
■
■
,
■
stocks—the
mon
more likely to
Wall Street psychology than in financial or busi¬
ness statistics.
We shall not ven¬
■
in¬
require him to lighten
significantly his holdings of
inter¬
national—which is
3 show
are
the principles of the prudent
the political el-
remains,
1
"
.
we
convinced, is now at hand. Hence,
'
ement—both
sustained advance.'
a
This speculative ,«■ stage,
the $161 billion income
on
There
>
phase of
were on
of .1944.)
.
the, market enters the speculative
billion national income in
and
they were
slightly
a
>v
define
value, and (b) who determinedly
reduces his stock .holdings when
y.tually abolished. <The reader will
unote in
the
us
one
wages
>* of business activity, unless
and
Let
prudent stock investor?
the speculator as
who seeks
to
profit from
market movements, without pri¬
mary regard to intrinsic values;
the "prudent stock-investor" as
one
who (a) buys only at prices
amply supported by underlying
cut
seem
to national income. Consequently
jI
c
of
in
chasing
4
Securities
stocks
.
What is the net significance of
this analysis for the speculator
appears
The chances
developments, sup¬
of material but no
plenty
definite verdict.
tendency for wage
V profit margins.
:to favor
plies
selling
,
enthusiasm
future
to
as
generally able to pay in3 creased wagesout ■ of increased
was
the
that
suggests
bull-market
prospect of wage encroachmust, however^ be taken
/:■;« Into account. Up to 1929, business
^productivity.
our
familiar
might
well
carry
prices
considerably
higher.
Our
third
approach,
through guesses and projections
contin-
The
*
substan¬
a
Contrariwise,
category—that of apprais¬
al based on figures and formula—
about supports the present level,
merits
;
setback.
second
the market level.
upon
judging the present level
prices have yielded di¬
indications.
From the first,
tial
affecting stock val¬
ues.
On this point past history is
reassuring.
We
know
of
no
period in which strikes have ex¬
,
approaches
in
side and vulnerable to
any
other matter
.
.
historical, approach the mar¬
ket appears distinctly on the high
are now re-
attention
more
,i.
„
stock
verse
ac¬
vanished.
means
or
Labor disturbances
ceiving
no
The three different
used
clivity and profits.
>:
business
in
.Summary
,
corporations
to the future level of business
The danger of con¬
period.
conditions and market levels has,
$100 billion of hidden liabilities because we are optimistic as
general market
buyers daily.
siderable
of
;
Continued
W. C. Pitfield & Co.
'
the
of; their
some
should be sold to create pur¬
By WALTER WHYTE
■
strength hides negative action
war
:%ip>e met with a smile. It still re3 mains a paradox, however, that
we can virtually close our
eyes to»
,
that
recently. been serv¬
ing in the U * S. Army.
Prior
thereto he was a partner in Kulleck, Wheeler & Co., and was with
perhaps; iri; iavOr of appreciably
higher average earnings and divi-r
dends for stocks than in the pre¬
income, and
,;
Says
&
be
doubled national
a
associated
become
Peet
Co., 23 West
10th
Street,
members
of
the
New York Stock Exchange.
Mr.
an extra $2 billion per year
,3in income taxes to represent their
v share
of the government's interest
^ charges.
Whyte
'»• i
Pacific Coast
(
g-pay
■
CITY, MO.—John O.
has
V'V
>
in¬
sheet
appears
so
Walter
Chronicle)
The Financial
to
O.
H.
with
£3 share of the nation's liabilities.
■"■■t
(Special
Wheeler
corpo-
completely
billion
'*
KANSAS
the visible
so,
$25 billion
current
"
debt
government
burden.
they want is to be told
buy and how much
they can take on. Credit bal:
ances are a thing of the
past;
Customers resent being told
what to
disconcerting
thought
tnat
corporations
may
really have to bear about a 50%
;
All
Tomorrow's Markets
are
Commodity
Chicago
New
Orleans
Stock
Exchange
Curb
Exchange
Cotton
Exchange
Exchange,
Board
Cotton
of
Trade
Exchange
-
And other Exchanges
N. Y.
Cotton Exchange
NEW
CHICAGO
YORK
DETROIT
GENEVA.
4,
Bldg.
NLY.
a
few stocks which show
^
PITTSBURGH
SWITZERLAND
'
.....
just
4
Inc.
fi
maintaining inventory, sorb higher costs as a result of ft
increases
granted to\
during ■*.this emergency necessary
period. They are another of the manufacturers. Increased produc¬
guarantees against I a recurrence tion which is our goal is the one
of the business tragedies after the thing which ultimately will pre- gft
In that increased
last war, and I'm sure you appre¬ vent inflation.
ment
Distribution Problemsof Reconversion
(Continued from page 1819)
the
ctixjiacuities
real organizing
01
v
required
war
and business abil¬
its
marriage
married couples in
need
We
that
ability now to
achieve our peacetime goal of full
employment and full production.
To reach that goal we have to be
guided by the same fundamental
than
had
been
there
not
war
our pop¬
would have
occurred.
A
high proportion of the seven mil¬
lion couples who have married
during the last four years have
not
housekeeping. They
principles. Whether it is in the have not had an opportunity to
establishment of broad policies for purchase the furniture, the rugs,
the common welfare, or in meet¬ the pots and pans, refrigerators,
machines,
stoyes and
ing our day by day operating washing
other household equipment they
problems, we must ' keep these
must have to establish their own
prime fundamentals in mind:
First: — That
low
production
high unemployment in the
long run—and in the immediate
future it means inflation.
Second:—That mass production
and full employment provide the
only possible key to the bountiful
hope to create.
;
"
Our
productive
resources
and
skill have made us the most pow¬
erful country on earth and have
given our people the greatest op¬
portunities and freedom.
>
Through the fullest utilization
of these skills and resources, un¬
der our democratic system of free
men
:
>
Within
r
after the service¬
demobilized we can ex¬
a
are
year
pect marriages in this country to
an all-time peak.
reach
There will be
continuous up¬
a
swing in demand for the furnish¬
ings and all manner of household
appliances
which
newly weds
heed,
«,
These
new;
*
•
families' needs will
be reflected also by increased de¬
for
mand
housing. During
have not been able
to keep pace with even normal
demand—and now the demand is
far above normal. Many millions
the
war,
new
we
enterprise, we intend to become
of homes must be built in the
even, greater, and to add to our
political > freedoms, the economic immediate years ahead to catch
up with the market.
assurances of security*
These needs very often will be
?
I'm sure you agree with that
^objective.;;There
may
be differ¬
of opinion as to "how" we
/should reach that goal, but there
are
no
real differences as to
"where" we want to go.
It would be pleasant to be able
to tell you that what lies ahead is
the businessman's utopia where
the
markets
are
booming and
taxes are falling, where jobs are
plentiful and profits abundant. I
wish I could tell you that you
have finished your job, and that
now it is someone else's responsi¬
bility to keep
things running
smoothly.
i,
I sincerely believe that, we have
it within our power, as a people
and as a nation, to build such a
coupled with the financial ability
tq;buy;l§^^
Gash, bank deposits and Gov¬
the
,
future.
But
have
we
to
the
do
construction job.
It won't just
happen. Between us and the at¬
tainment' of that goal are some
difficult roadls—and ■ some hard
jobs.
Peace Problems of Distribution
:
During the transition period—
the changeover from war to a
freely operating peacetime econ¬
omy—you distributors are facing
problems as great and important
as any you had
during the war.
For six years our national income
►—the money people have with
which
,
to
buy your goods and
services—has climbed, year after
year. Now it is declining,
i
is
This is because the Government
stopping
war.
its
Before
ernment's
expenditures for
Day the Gov¬
V-J
expenditures
■
for
war
amounted to 42 cents out of every
dollar spent for goods and serv¬
ices in the United States. But
by
the end of this year war expend¬
itures will be down to 20 cents out
of every dollar spent and by the
end of 1946
they will be down to
10 cents.
Increased Demand Forecast
As
a
result
contracts
the
and
of
cancelled
war
demobilization
of
armed
services, unemploy¬
ment is increasing and the
weekly
pay envelopes of men and women
remaining on jobs have been
growing slimmer, through loss of
overtime pay, reduction in aver¬
hourly earnings and through
transfer from war jobs to
peace¬
time jobs that pay less because
they require less exacting skills.
age
That's only one side of the pic¬
ture, however. In spite of these
cuts in income, the
backlog of
consumers'
needs
for
durable
goods is tremendous. For
instance,
the accumulated demand for dur¬
able household goods is estimated
to equal about two
years' sales at
the 1940 rate.
The annual increase in the num¬
of families
in. the United
ber
States averages about 550,000.
variably, when
a
In¬
nation is at war,
bonds
ernment
1940.
in
hands
the
of
people have trebled since
Liquid assets in the hands of
hundrpd and twenty-six bil¬
dollars.
lions
of
half
years
saved
saved
rate.
ings
of
war
and
a
people
our
than they would have
more
10
in
three
In
at the 1940
They accumulated these sav¬
because
the
Government
asked
them
years
to
as
deterrent
a
to
inflation and because many of the
goods they wanted
buy were
to
not on the market.
,
Inflation Threat
5
Now
that
these
goods are be¬
coming available again, the de¬
mand for them will surpass sup¬
ply until our manufacturers can
expand production. Here is where
the
dangers of inflation are great*
est.
We must
flation
fight this threat of in¬
would
the
plague.
The first and best way to fight it
is to produce more goods.
There is reason for optimism on
as
we
this score.
Despite, the inevitable interrup¬
and bottlenecks, reconver¬
sion is going ahead.
We know
tions
that.
manufacturers
our
are
dis¬
playing courage and imagination
in planning their future output.
As reconversion is completed and
expansion of production gets un¬
der way, thousands of new prod¬
ucts—as well as a record-breaking
boost
our
production
expand our distribution of
peacetime goods as rapidly as pos¬
sible.
'
They will be
supply begins
ciate them as such.
.
We
must, until such time as
supply begins to catch up with
demand, hold the line against run¬
away inflation. :• *:V-.
ftft:'ft
We must maintain the income—
the buying power—of our
people
at high levels.
We must, within
that frame¬
work, plan' for a steadily rising
standard pf living for all our peo-s
pie,
and increased
opportunity
and markets for. business and for
the farmers.
'
„
.
.
Upon the broad outline of this
program—which is really the Na¬
tional policy for full employment
and
full
production — there
is
unanimous agreement throughout
;
the
country.
The increase of production ul¬
timately will eliminate the threat
of
inflation, since it is essentially
the shortage of many goods that
creates
the danger.
Production
also is the key to your own prob¬
lem i oF meeting: the expanding
needs of your customers,i But in¬
creasing
production will take
time. And in the meanwhile, we
must all hold the line against in¬
flation.
As consumers we don't want to
see prices skyrocket.
As business¬
men we want it even less.
A big
rise in prices would kill off our
ultimate
market
and
ruin
our
chance for stable prosperity.
Mistakes After Last War
individuals now total more than
one
must
is
controls
and
up
homes,
means
future we all
set
We
At
increases.
rate
present there are about 1,200,000
more
ulation
ity.
ences
Thursday;' October 18, 1945
THE COMMERCIAL & FINANCIAL CHRONICLE
J 858
Most of you here can remember
the tragic errors we* made after
the last World War when all
trols
con¬
dropped almost imme¬
were
diately after the Armistice cele¬
bration.
Then, 'as now, there was a
tempting
accumulation
of
de¬
ferred demand and high purchas¬
ing power. The few wartime con¬
trols were quickly lifted, f Prices
went up and up. A race to ex¬
ploit the lucrative market got
underway with little thought of
the future.
Orderly methods of
business were put aside as un¬
healthy competition for scarce
items developed. In an effort to
protect, themselves against swift¬
ly rising prices, wholesalers and
retailers sought to build up ab¬
normal inventories. Duplicate and
triplicate orders were filed: < with
many different manufacturers. In
the
factories, these orders built
up a false backlog of demand, and
prices soared.
High prices had their inevitable
result.
sumer
Sales
fell
demand
cellations
of
off
and
con¬
Can¬
duplicate or¬
dwindled.;;
those
ders began to flood into the fac¬
tories. Prices began to tumble. A
began to get rid of surplus
at almost any price,
hedge
losses.
volume of new models of prewar
At the factories, there were lay¬
products—will begin to flow from,
offs and purchasing power faded.
our factories.
;The. postwar plans of your own The accumulation of deferred, de-t
'
• ft'
1
New England manufacturers are mand was gone.
In May, 1920 the collapse came.
an example of what is
happening
The
loss
on inventories alone in a
all over the country.
The New
England Council conducted a sur¬ single year amounted to 11 billion
dollars. This was enough to wipe
vey which indicated that about
75% of the manufacturers in this out completely the business re¬
serves ft accumulated
during the
area are
planning to utilize war
developed facilities and skill to war period. As a result more than
produce new products,, many of 106,000 businesses went into bank¬
which have never before appear¬ ruptcy; 450,000 farmers lost their
farms
through foreclosure, and
ed on the peacetime market,
one-sixth pf the nation's working
race
inventories
to
removed
soon as
as
approach demand. During the war, you distribu¬
tors learned how to operate with
minimum inventories. You learned
that, in many instances, this ac¬
tually decreased your operating
costs by reducing waste and break¬
age in storage. It is essential that
you continue operating with mini¬
to
ftNational
have ^in¬
surveys
that production of alu¬
minum products in the next
year
will increase 200% above the 1939
level;
production of plastic ma¬
terials will go up 161% and there
will be an increase of 132% in thq
output
of
rayon
and
allied
products.
We have resumed
production of
more than six hundred articles of
iron and steel that have not been
made for civilian
in 1942.
use
since early
V->..
The Task Ahead
The task ahead is clear:
We must achieve an
swift
orderly,
and
of wartime
efficient
business.
reconversion
.
force
was
idlq.
have learned
unhappy ex¬
perience. We know now that only
disaster could result from abrupt
removal of price controls from
scarce goods.
We owe it to our¬
selves to prevent the start of the
destructive cycle of boom and col¬
lapse that comes with runaway
prices.
:
a
Certainly all of
lesson
from
us
that
Danger in Large Inventories,
Certainly,, we can appreciate
also the danger in unnecessarily
large inventories, To assure that
none
will suffer from hoarding,
or
pre-emptive buying, at the
hands of
competitors, the Govern¬
No
one
own
keeping
help
ket.
the
knows
distributors
total
profits
than
better
America
of
mount when
be developed
how,,
mass
with,
and in-;
Orcascd,:volume.rsft;ftftft$;-ft;0ftft^
During the war/ as the; volume*
mum
inventories until manufac¬ of sales increased,ftfheEunit costsftft ft
jot
doing business dropped. On the
turers have had an opportunity to
complete the reconversion job. and whole the dollar earnings of re-ft.
tailers have shown substantial in¬
to expand peacetime production.
In this immediate period of conX creases. In department stores, for"
sumer
goods scarcities the Gov¬ example, the ratio of net profits.,
ernment will need the help of all before taxes on sales increased;
in moving its accu¬
mulation of surplus war goods.
distributors
We
do
intend to flood the
not
markets
low
can
unit
from
1 Vz
profit
items,
%ft;in the 193fc3& period X
. Sales-this
year
12% in > 1944.
to
have been running ahead of lastv
with gopds which >vwill
compete-with the products of in¬
dustry, ,
*
.
year's volume and show- every in¬
dication of continuing to do so.
And last year was the best on
trationis encouraging the devel¬
record
; ft After careful
study*
market
opment of new markets for sur¬
pluses. Through this encourage¬
ment new and probably perman¬
ent markets will be developed for
the producers and distributors.
The Surplus Property Adminis¬
trator, as you know, is an experi¬
enced
businessman, and he is
seeking the advice of business¬
men.
Already the assistance of
some twenty-six hundred experts
from industry and the distributive
trades have been, enlisted as con¬
sultants on these important ques¬
tions:
*.
*
Will the item
mercial
form?
sell Vin the
what
For
its
in
market
com*
present
For
use?
what
possible alternate use?
At what level or levels of trade
it has been;
concluded that distributors shouldbe able to
hardship,
absorb, without undue!
many
of the moderate ft
price; increases i'v^chr.'inust^^tie^,-granted to manufacturers, *
* :ft
Keeping inflation in check can¬
not be entirely
painless. There
are bound to be many irritations:;
and individual hardships. But we
promise you ft that we will do all
in our power to eliminate inequi-ft
ties and maladjustments which
are bound to crop up, and to take
care
of all appeals on hardship
cases promptly.
- >
,
•
•
.
i
Your
Government asks you to
special effort to work un->
der the policy which has been laid
down in the public interests ftAcj-^ft
make
a
the consumers?
In what size lots should goods
mittedly, it will not be easy. But;
these are not easy times. We are
striking out for: a /greater future^
of full employment and full prd-'
be packaged?
duction
will they sell?
At what price to
,
,
.
What are the cus¬
tomary trade discounts?.
Taxes
Another
essential
part
the
of
Government's program for recon¬
version is the reduction of taxes.
that
betters
mean
can
All our ef-M
forts to stimulate production soft
that you .will have a greater voi->
times
ume
for
everyone^
to distribute will shorten the
time: during I which/ft theft ftcpntrplSi
must be kept in force,
**,
v*
.
The Congress is now at work on
a transition tax plan.
/ Our Federal tax structure must
,.,
undergo a thorough over¬
hauling, but pending the accom¬
plishment of that time-consuming
job, immediate relief is being
soon
planned.
.
''
.
,
>
,
Reduced taxes, however, are riot
the only factor which will help
strengthen the profit position
All along the line—
factory down through the
to
The problems we are facing are
big—but they; are not too big to
be solved ftquicklyi and fairly if;we i
get
iogether-ftrbusiriess, "labor and
Government—around
table
the
and, in the American spirit of
give; and
take,
find common
grounds f of understanding; ; We
have a common purpose and there
should be no ft essential disagree¬
ment on how we will attain it.
of business.
,
'
———«r——1
n
■
* i"
"
'i
*-I
from
various
of. distribution—
levels
savings in unit costs will be, posr:
sible through curtailment of over¬
time pay, through increased pro¬
ductivity of workers and the more
efficient
techniques
developed
Smaller
unit
during
the
war.
profits
profits
can
bring greater total
stimulating ; arift,:inr
creased
by
volume
of
sales.
»
dicated
you
also lies the key to
future profits.
And
prices down now will
to maintain your mar¬
production
your
Importance of Good Wages
Wherever
possible
a
share
in
these savings should be passed on
to the workers to
keep their earn¬
ings and their purchasing power
in balance with the cost of living.
I am sure that employers, gen¬
erally, acknowledge the impor¬
tance of good wages in maintain¬
ing the American market. :
ft Labor, on its part, must realize
that workers must not press for
wage increases beyond what may
reasonably be granted, otherwise
serve to bring on the very
thing that would make labor')?
gains meaningless—runaway in¬
flation. And again let me say we
it will
must at all costs avoid that.
I
know
all weary of
busi¬
ness.
You would
like, without
doubt, to return to normal trade
practices. We in Government, too,
you
are
wartime restrictions
would
like to
be
on your
rid of the
con¬
trols. We have removed many and
the rest will
as
be
removed
as
fast
it is prudent to do so.
ft
In maintaining the line against
inflation,
we have had to ask dis¬
tributors wherever possible to ab¬
Cincinnati Gas & Elec.
Issues Marketed by
Banking Group
Morgan Stanley & Co. and W. E.
& Co., managers of the;
group
which was awarded on
Tuesday $45,500,000 the Cincin-ft
nati
Gas
&
Electric Co. first
Hutton
mortgage bonds 2%% series due
1975 and the underwriting of an
exchange offer
of 270,000 shares
of cumulative preferred stock 4%
series, are making a public offer¬
ing of the bonds today at 101 and
interest
to
yield approximately
2.70%.
The Securities and Ex¬
change Commission declared ef¬
fective the post-effective amend¬
ments
after * a .hearing
as
to:'
whether or ft not
the; company^!?
award
to
the
Morgan Stanley- ft
W. E. Hutton group on the basis
of
a
combination bid should be set ft
At the SEC hearing in re- ft
aside.
gaird
to the post-effective amend- ft
a protest was made by an
unsuccessful group which did not
submit a bid for the underwriting t
ments
of
the
offer.
preferred
stock exchange
.
The
:
270,000 shares of cumula-
-
tive preferred stock 4% series are
being offered at 106 to holders ofthe company's presently outstand- ».
ing 400,000 shares cumulative 5%
preferred stock series A and the
exchange
offer
will • continue >'
through Oct. 24, 1945.
x; ft ; >
Volume
Number 4430
162
THE COMMERCIAL & FINANCIAL CHRONICLE
ism for borrowing—but
A French Financial
Expert Speaks
c
than it is exporting
and, in tnat
position, finds it advantageous to
have
r-
the
is
franc
is
GIs
exact- ratio.
;
There is today no
supple¬
recognition
the- present
of
the
official
-
to
fact
rate
exporters.
sidies
Nationalization
changed
being ; publicly
pro¬
day we simply did
publish the ratio.
This Was
after liberation;
•
One
'
If
be-
"
is,
should
.
our
gold, that would
element
an
that
The sub¬
used
we
if
one
of
instability—
the : French
people
day be told that there
|>is
not'
'
art ounce of gold left. in
Actually,. we have used,
considerable amount of gold,
.
France.
a
very good system,, even
though the subsidies themselves perhaps aS much as one-fourth, of
might be justified, for the reason II our gpld - stock, to buy in the
that it looks like discrimination. United
States, although I am no);
As to Why. tfre two-cent rate for sure of these
figures.
the franc was selected, when that
As to what would be the
proper
a
.
Concerning
the
Bank
alized,
of Banks
i
is
not
The
the
of
this
demands
France
talk
died down.
not
given to exporters vary
according to product and circum¬
stances., X This subsidy system is
hot
^
fixed
buti:the;' policy
claimed.
fact, at least by implication, is the
policy, now several months bid,
f of taxing importers so as to sub¬
some
be;
without
of
exchange of the franc is not realistic. Another recognition of this
sidize
an
ratio
between the gold reserves and the
note issue in France.
There used
payment of American
located in France" was in¬
a
that
ing
the
deed
V
borrowing is necessary
the economy.
for improving
a
although Without necessarily fix¬
,
to
borrow,
.
up to the Min¬
ister of Finance to aecide.5r
,,f
*
The
recent
decision-• by
the
Government
spe¬
There
profound feeling in France
that!; it is good internally [for a
currency to have a gold backing,
devalued will be
French
still will want to
whenever
of settling
good means
cial international balances.
overvalued.)
H When and how much the franc is
ment
a
change the basic policy of
France.
;
Without
the
Bank,
France
(Continued from page 1819)
that will
be
controlled by
Governor,
nation¬
to
seems
The Bank
of
that
have
of France
200 families.
the".Bank
France
is appointed by the Min¬
istry of Finance with the ap¬
proval of the Prime Minister.
It
should.
.;also
Conseil
be
noted
r
General
of
that
the
-
the
Bank
France is made up
chiefly of
officials, / while
ernment
shareholders
almost
of
the
nothing to
conduct'
of
its
of
gov¬
the
Bank
have
about
say
operation.
fixed, consideration was
given to the price level through¬
out the French Empire and not
Simply in metropolitan France.
The two-cent rate might have
been a good rate had France not
experienced a price rise after
was
liberation.
In
rate
of
exchange for
after the
is not
the
franc
coming devaluation, this
something
which
on
offi¬
an
cial of the Bank of France should
comment
it may
great many people in France who
have studied this subject
closely
are thinking and
talking in terms
of a one-cent franc.
fact, we had an in¬
crease
in
priced fundamentally
caused by the demands by work¬
ers for wage increases, also there
Exchange control will be with
was
a
heavy budget requiring us for a long. time. It will take
a^
deficit financing.
There might long time to get rid of any other
also have been a prestige factor controls.
Getting rid of it de¬
in the selection
of the
two-cent
pends
entirely on the foreignexchange possibilities. If the then
rate.
As to why the rate was
changed from 75 francs per dollar
to 50 francs per dollar, some
wanted the prewar rate of ap¬
proximately 48 francs per dollar.
France has something less than
$2 i billion dollars in gold. There
is not much dollar exchange it¬
self in the French Treasury and
that held by the Bank of France
is negligible.
But there are large
private holdings of dollar assets.
As
to
whether
France
clined to
use
overseas'
requirements,
is
of
France
found
it
possible to dispense with its ex¬
change control without endanger¬
ing the economy or inducing a
flight of capital, it would do so.
Certainly, many people would be
willing to do it.
But some poli¬
ticians of the
need
as
in¬
in
as
capital,
many
that
we
controls
The main considera¬
removing
trol will be
first
Left think
retain
to
possible.
tion
its gold to meet its
the
.
Government
exchange con¬
flight of
at the present
that of the
although
purchases France has made in the
moment the main consideration is
to
economize
the
foreign ex¬
United States have been paid for
change
with gold.
need
He added:
Naturally, it is a good policy
to use up all of our assets.
is
France
to
If it were just a
not
It
There
resources.
for
be
to have the wheels
of credit turning again.
It is ah
ducement to
the
X; Of
a
banks
better to obtain credit.
The
has been
talked of
in
is
In bank
credit, generally/ liquid assets
are
important. France must increase
its
imports
for
re-equipment.
From
the United
view
it
is
much afraid for themselves.
They would agree to greater dis¬
cipline in
the
distribution
of
who
Woods
is
States' point of
that gold be
the world.
If
but everyone in
knows what Bretton
favors
that
reservations
program.
which .France
wanted to make at Bretton Woods
are
over
relatively minor.
no one can
Of
course
speak for the next Na¬
insist on getting gold for tional Assembly.
It seems clear
everything you sell, you will have that Bretton Woods is a very im¬
all the gold in the world.
At portant mechanism to get rid of
you
least
far
so
as
Europe
is
cerned.
I feel that public
is
much
very
attached
responsible
opinion
to
Bretton Woods, its approval will
be up to the new Assembly, which
gold.
The best proof of that is the black
market price of gold, which must
be five or six times the official
convenes
As
will have to take
for
silver,
monetary
French
there
is
no
sentiment
for
Certain
of
French Position
The Bank of France sells
gold
only if necessary, as for the ex¬
"of
jewelry.
deGaulle
a
gold
man,
gold
-
were
article
to
to
If
make
a
the
jeweler
for
that
could
purpose
times
gift of
Tru¬
obtain
are
as
There is
does
a
the
United
French
see
gold
exchange situation in
temporary stress. * We
vested
with
borrowing
•
modernize and increase
•
our
is
public interest.
making bank¬
government
functionmean
One
of
".:'r,:v
future
coal
concern,
Re¬
Of N. Y.
John
C.
Anthony
Group of DM
Maxwell, of
Co.,
was
Tucker,
&
elected
Chairman of the Executive Com-'
mittee of the New York group of
the
Investment Bankers Associa-
tion of America at the group's an¬
nual meeting.
Other new officers
X
automobile
nault, has been nationalized be¬
of
cause
the
attitude
of
the
owner, who-collaborated with the
Nazis.; In this case, collaboration
the pretext for the
company's
nationalization.1 Xr;
X;
• '
.' There has been agitation for the
was
nationalization
electric
of
insurance
companies,
but
specific has been done
and
nothing
as
yet and
the DeGaulle Government is
really
a resistance
government and not a
of
government
view.
any
political
one
However, the majority of
its members
left.
to
seem
A
lean toward
re-election'will
be
:
five
or
principally
threat
of
large
This will put be¬
fore the people first, the
question
of whether they want the elected
Assembly
Treasurer.
make
a
to
new
If
the
be empowered to
Constitution or not.
to
answer
the
this
coming
election
what
the government will have
thereunder. A part of the refer¬
powers
banks
are
eration
with
the
decrease
concerned
nationalization, includ¬
ing:
General
Industriel
bers of the New York group,
in
France the
are
that a commercial bank
would like to get rid of Treasury
suppose
to
they would do it
without fear of objections of the
can
please."
moral
said "I do
like
a
as
black
But
banks
you
did
bank
may;■
%
;
ask,
same
if
they not get away with it?
answer
is
chosen
a
that
I please" would look
the
that
very
they
sometimes those rules are not well
devised, which makes the people
feel abused. A case that comes to
mind is where,a farmer is/asked
to sell at less than the cost of the
product.
consumer
treated.
is
Another
does
In
where
a
feel fair y
circumstances
not
such
people resort to the black mar¬
ket.
Co.;/;x^
Elected to
members
mittee
three years as,
serve
the
of
Executive Com¬
Wickliffe Shreve, of
were
Brothers, and Reginald
W. Pressprich Jr., of R. W. PressLehman
prich & Co.
.
':X
•
'•
.X
■
XX '
.
retiring Chairman Frank A.
As
Willard, of5Reynolds & Co., will
automatically serve one year as
member of the Executive Com¬
mittee. '
:
■
with a Presi¬
of the end¬
longer necessary or
dential proclamation
ing of the emergency.
,
X In either of these events
the <
whether
corporation,
pr
partnership, may
speed up his amortization to cover
the period of necessity. He may*
electXto amortize; the plant, or
other facility for the period it,
taxpayer,
individual
would
The
have
bad moment, stim¬
ulating the Left to activity.
was
the basis of the thus in¬
and get a
creased
amortization
refund.'
Or
unamortized balance
X /
the ordinary way.
in
X
elect to de¬
he may
preciate the
President's" proclamation
The ;
that
stated
utilization of a sub¬
emergency
stantial portion of the
facilities), with
which
to
respect
certification has been made
in
required
under
is no longer
the code as amended
the interest of na-1
that the emer¬
tional defense and
gency
period defined in the code
ended
as
of Sept. 29.
plants and facilities
Emergency
running into ;
Emergency Ended In
billions
Amortizations Under
certificates of
necessity. The great majority are
Revenue Code
Proclamation
J
made
by
Sept. 29 of
was
President Truman
on
be amortized over a five-year pe¬
A
sheep.
have
prodigiously.
Concerning the spirit of the
people, while it is immoral not to
obey
government
regulations,
several
There is an undefined
authority.
&
Hemphill, of Hemphill, Noyes &
worked
thing, could
not imagine a
commercial bank saying: "I do as
I
def¬
period
defined in Section 124 of the In¬
ternal Revenue Code, which pro¬
vides for special amortization of
plants
or
other facilities con¬
structed
or
otherwise
acquired
for
war
purposes,
the
"Wall
-Street
Journal"
reported
from
Washington, Oct. 1, and continued:
Such facilities, if certified as
necessary to the war effort, could
Bank of France and the Ministry
I
initely working better.
The
railway
workers
customers.
not think
of Finance.
after the
Macdonald,, of DomiDominick, and Clifford
years on
working in cooperation
among themselves, and with the
Bank of France.
As an example,
do
dead tired
of
are
H.
Ranald
been increased and they are
le
big banks are not defi¬
nitely or immediately threatened
with
nationalization,
but some
parties of the Left have hinted at
it.
On the other hand, at the
Right there is general agreement
on the possibility of greater dis¬
cipline among the banks.
The
Bank
of
France
might
have
greater authority than it now has
over the commercial banks; some¬
thing like the practical working
of the Bank of England. Where¬
as in England this is done with¬
out formal statute,;in France it
might have to be made de jure.
more
thus,
elected to
ex-officio mem¬
Association,
serve one year as
nick
..
required for war production,
recompute his taxes for previous
These
and
were
The de¬
causes,
;
their rations and their wages have
Nationale
pour
Commerce et lTndustrie
More
several
.
Investment
the
proved, although they were still
underfed for a long time.
Now
Banque
banks
in coal output.
marked
of
France
de
et
a
:,v.r XX;; :/:/;vXX. ^ :
Governors
Bankers
Commer¬
Lyonnais
Commerciale
occurred
Nazi enslavement and
they were underfed and discour¬
aged.
Slowly
their
spirit im¬
period
Banque Societe General
Banque Comptoir du Centre
Credit
ciale
there
had
crease
miners
Associatee
W.
are
v
Four
Heam W. Street
John C. Maxwell
Manning Barr, of Barr
Brothers & Co., Inc., Vice Chair¬
man,
and Hearn W. Streat, of
Blair
&
Co.,
Inc.,
Secretary--
into
endum of next month is a specific
aires, with all the red tape that bill on this subject. It is a ques¬
goes with being
a
government tion of a balance of power be¬
official,
Many people think that tween the Assembly and the Gov*
:
banking is a separate profession, ernment.
'%'x
a profession of taking
risks,. and %: During the last three months
that this is definitely not the there has been a definite im¬
function of the State.
This recogt provement in the economic situa¬
nition
is evident,
for example, tion in France. This is noticeable
where a government agency has particularly in the railways, where
financial dealings with an indi¬ bridges and other facilities have
vidual, but asks a1 private bank' to been repaired." Port facilities also
take
the
responsibility for the have been' improved, while coal
financial obligation.
The admin¬ output has increased and imports
istration .(civil servants) recog¬ have been coming in,
; /
nize
the "need for
a
privately
Prior to the nationalization of
operated banking system.
the coal mines and just after Lib¬
ers
pro-
ductive capacity, Bretton Woods
Will create beforehand a mechan¬
credit
a
This does hot
I
from the
Bretton Woods Bank will depend
on France's general policy.
If we
{
that
bills to make loans
France's
out
.'
in
recognized
really a way of oiling the
change mechanism..
/
ex¬
indemnified
output.
being
consider the Bretton Woods Fund
of the country, and
so
enabling the > borrower ulti¬
mately to increase its exports or
diminish its imports, W;-;;
/J<- ; X
States.
that
of
tive capacity
difference between the
leaders
the
ised that the stockholders will be
question is
yes, the people must also decide
institutions.
.
the
feeling of the people and of the
leaders as to gold.
The majority
of
use
Export-Import
Bank now acts, lending for spe¬
cific purposes, probably for reequipment, increasing the produc¬
use
of gold coin in' circulation
does not appear likelv in the vis¬
ible future.
France does have its
advocates of the old gold stand¬
ard,
Woods
make
it will act like the
asking
to
will
As for the Bretton Woods Bank,
[White
their customers for old gold.
That France will return
Assembly
action be¬
.
plea<=e note!]
Now even
dentists in France have difficulty
obtaining gold and
some
French
Bretton
ease
House
in
The
first
meaning of Bretton Woods is to
General
President
the
Bretton Woods is not for big loans
but a minor mechanism.
The real
Gold
oh
in
fore December 31.
that metal.
port
sometime
half of November.
parity.
.
While all of the
French people favor
currency wars..
con¬
yet been completely
determined, but it has been prom¬
credit in such way as to help the
economic revival of France.
It is
Credit
program
are
very
great in¬
complicated,
France
The
better
distributed all
Woods
ment has not
;held in October.
Assembly.
The big commercial banks
,
Bretton
on that for the
present.
A
good part of the coal mining in¬
dustry has been nationalized in
Northern France, and reimburse¬
the feeling of the
Credit
assets.
nationalization
enterprises, in
is being
more
done
the
fcretton Woods Program
borrow while you still
In that way it is
to
nance
the
private
nothing
nationalization is possible, Whether
it is brought about depends on
elementary principle of sound fi¬
have
other
general
,
cial
France; but as for the Bank of
France itself,
it is already de
facto nationalized. While de jure
get rid of exchange
If
control.
a
of France
case
alone, there would be
better
is
cautious.
of
codrse, we do have a general the
question is now at rest.
assembly
of
shareholders/ but | As to the viewpoint of the Depractically they are powerless.
Gaulle Government on socializa¬
Nationalization of big commer¬
tion, it should be observed that
even
off-the-record, but
be stated accurately that a
Concerning
of
*
rate
Socialization of Industries
not
the
end of the emergency
of dollars
not
were
built or
under
acquired
yet fully amortized under
mation
President's
The
section.
now
the,
procla¬
industrial
confronts
companies, utilities and others,7 as
well as individual taxpayers,
with
they
will
the
question
of
treat unamortized
In
vast
the
how
balances.
majority of
especially in respect to
that
tions
cess
cases,
corpora¬
have been paying ex¬
profits taxes and whose tax'
rates may
lower
in
be thus expected
the future, it
to be
is likely
riod, starting with the first month that advantage will be taken of
completion of construction,
the privilege to speed up amorti¬
of acquisition and ending, if
zation. Estimated total of refunds
not
required for the full five
after
or
years,
with certification it was no
■
/
%
has been
placed at $1.7 billion.
Banks Have
:.V*V
,
-1
'£
|
(Continued from page 1820) '
one, including oanKcie, were for
it.
Our Congress approved the
Other countries are likely
The talking stage will
soon be over. Our country is embarking upon one of the most sig¬
plan.
follow.
to
There
are
the following prospec¬
There are 85
million bond buyers in this coun¬
Individuals.
1.
They have a lot of money
try.
tucked away.
-
t
X
ernment loans
largely to the extent that
they succeed or fail in presenting
their wares effectively.
This in
reservoir of liquid capital
judgment is rid; less; true of
banking than it is of selling peat
riuts or steam boilers!
,"
some
of
.
is
nificant: steps in its banking liis«
2.;: Banks. The Treasury went
all out for Bretton Woods; itprob-
tory.
Since the United States puts up
ably
;
being called upon to do a
now
world-sized job.
'
;
•A few months ago, as
President
United
these
hailed
./
past
decade in
;
States, we are now
the last
as
enterprise.,
my
:;
:
the
characterized
wane
our
in our
country traditionally used at home
'
t
(Continued from page 1822)
In addi¬
grants.
or
1945
Selling Job
a
largest commer¬
cial banks are eyeing the foreign
field; Make no- mistake, the great
tion,
Vj•..
tive',buyers:
Thursday, October 18,
CHRONICLE
THE COMMERCIAL & FINANCIAL
I860
bastion of free
.
?
Banks- Have
a
.
,
:
,
/
,
.
,
Selling Job
-
gentlemenV 'Americana *
have been on the spot before and
;
I have-preserved/ their way of life; ;
when a lesser / people: would have
'■ given up the ghost. They can do
| it/again.;;: But if: freedomof .en- y *
terprise is to prevail, if we.are - goki^ to. get the /government out*
*
of the banking business and put /
Well,
Now we come to the point: Do of the New England Council, I
will give deposit bankers we have the know-how in the in¬ sat With % the. Council's / Bankers
permission to buy * these 'foreign ternational field? Will things be Committee in a. discussion of Mr, ;
< | the lion's share of the money, it is
credits.;: Our banks have about
different, from the past or -will Edward. E.'Chase's first report on
S assumed the Bank will be located $30 billions in uninvested funds.
Uncle Sam; start out as Uncle tlte Financing. and Pwnership of
somewhere in this country. Most
They ; may send some " of / them Bountiful and wind
New I England
Business * Enter-/
up becoming
of the present taiK centers arouna abroad.
' '
' '
Naturally; the Council
just plain Uncle Sap? The answer prises.
.-...'•/New- York or Washington. « ;f
•
3.
Insurance
Companies
and is that while our experience has wanted the criticisms of its bank¬
i For our stake: in tne venture,
Trust Funds.; The former invest /been
limited, we can dig in and ing constituency on the content ourselves yback^iri/ it; ;M. bfit /g'/;
v v
we
must look
beyond the first
over $2 billions "per .year, - Will do the
job provided we use the of the report before publishing it banking is to/ remairilin private
step. Is is in Step No. 2, we really
/
they put- the widows' mite-. and available v talent. The; financial and I may say that you gentlemen i hands; then' you and ! have a sell-/
-:
put up the big stakes, and this is
problems we are to face and the Were//most 'helpful/rind articulate ing job to do./, We must be alive
not
widely
understood
in : the the*J^faans^ft^
to
what
the
public wants and try ;V
foreign. securities? Here we are avalanche- of; American capital in clarifying certain aspects of it.
United States. The total author*
1
:
likely to run-into an issue- which which/ wilt shortly flow - abroad I hM ri/teeUhg^/ri<we\terj/that the to provide it. We should give the/
K ized capital of the Bank for all;
most
;
thoughtful
and constructive; /
may
be debated in every- state require the closest collaboration report' was * ^almost resented ? in
* countries is $19 billions, to which!
;
consideration.
to
such/
public;
ex-rsr/
some
^quarters; primafrilY on -two
legislature in the; country.. Many with business; men and bankers.
the United States subscribes about;
states; such as New York, Mass* If we don't get this, our foreign countst. First, because it wasn?t pressions/ as /th0 / reports of the:
$3 billions. However, only 20% is
achusetts, and Connecticut, have : lending; wilt be^ j tisf anotherhead- couched at all; points in j/dur ladr aiase Committee^ahd/attune ourpa id down.
The balance is rep-:
selves to the needs of our pros- >
more/ or less rigid/-requirements'
•ache;-/; - * ''* r' -t: >
': -7
; guage; and Second; because it was
tesented? by pledges to be called
;
about; investing
money 4 of / this
One/of the great secrets of Engr- critical of certain existing banking pective:- customers, .v How does a ^
later in case some of the borrow*
manufacturer / sell; 5 / ,
.kind At presenter foreign ^credits; lish success in international bank¬ procedures,;; The fear was even cosmetics
4
1
<
,.
.
-
-
*
,
-
:
'
•
the Bank has to
default and
ers
v.
It- is at, this point the
liank'andfiieofAmerican • invesmake. good.
become concerned, for
probability they will own
tors may
.
in
all
most of the bonds which; the
Bank,
guarantees. Our Government will
put up" only about $600 tnilliohs
\ to get the Bank going, but private
investors in
this country could
conceivably put up as much as $9
billions to buy the guaranteed
bonds.
Certainly at present our
country is the most likely place
,
to sell such securities,
the; pattern
Once
r
for
floating
these loans is established, we may
be assured a world hungry for
*
and
importance
imminence
or
of
this development, ^which is Just
around the
"
corner.
r We are so
blinded to financial
speed and large figures that we
lose our sense of proportion. The
first" railroad bond issue was sold
in
1831.
In
century, the rail
debt in private hands has reached
$9.8 billions. In half a century
a
,,
course
into
he does in the case of Federal
as
No one knows
exactly what farm secures what
ipay
see
ped
by
v
.
our
and
The Council consists of the heads
decade, however,
we
all of these figures top¬
jfame we are starting.
*
Who
will
sell
these
bonds
the American investors?
swer
to
seems
bankers
will
be
be
The
to
an-
investment
expected
to
do
the job.
That being the case, they
a
real part in
the
plans and councils which have to
should
have
do with these flotations.
If the
bonds go bad, investors will blame
the bankers who sold them.
;
,.
-
The
with
investors
good will these
bonds be?" The
will
ask
"How
Bretton
Woods
Securities
the
At pres¬
they would have to clear that
the Congress may well
inspection which a
staff of
trained
a
International
the
each loan would
and that, as with
Federal Land Bank bonds, the
Bretton bonds need not be regis¬
Bank could give
be
adequate
Similar
tered.
exemption
might
given to public offerings
originally made by the
Export-Import Bank.
Later on
this Bank may sell some of its
loans to private syndicates for
general distribution to the public.
The
agencies which deal with
foreign securities should
cover
the foreign field. Division of au¬
thority with the SEC would be
confusing.
of
the Treasury,
Reserve,
Bank.
holders.
/
'T
/
"
"'t
?i V
>»
f"
'V*
"V
*
"w'
Some Countries May Borrow
Direct-
If
not be alone in the foreign
;• r
big
-/;
important
better
in
par¬
into
a
tremendously
a
pool
should
getting
are
way—almost
had
or
bankers
We
business
overnight.
We
information
our
the big'bad wolf will get us in
,
the
international
field.
banking is not just
nicians.
a
Foreign
job for tech¬
/
/ B. Sizable amounts of the bonds
;
guaranteed by the
should
than
unwise
It
own.
for
are
43
our
would
investors
ments
would
much
more
be
most
to
take
Some loans
bound to go sour.
countries
Bank
Bretton
in other countries
be sold
our
100% of these issues.
The International Bank will, of
course,
credit field.
most
a
Commercial bankers and
investment
new
J.-*
is
There
should be added representatives
of the insurance companies, sav¬
ings
banks
and
foreign
bond
ticipate.
*
the
but it is not enough.
step
loans
»«''•
Federal
Export-Import
the
and
This
of
'
State, and Com¬
Departments,
merce
also be
■«.
wisely
Must the Bretton bonds be reg¬
>
,
Important Points
set up a Foreign Finance Council
to
co-ordinate
foreign lending.
agency, but
decide the
-
points should be
A. Our Government has
SEC
lions
capital funds of
time but certain
borne in mind:
land bank bond.
ent
the
$1? billions
in gold and dollar reserves of for¬
eign countries. In 1928 the figure
was
$7 billions.
Our place in
world finance is rapidly gaining
a
Land Bank bonds.
The other
pay
assess¬
cheerfully
if
paid into the Bank for, re¬
serves
against losses. All in all,
it is expected the credit may be
everything goes the money was partly going to
smoothly with the Bretton Bank their- own nationals.
;
and its guaranteed bonds 'sell to
C. The main thing is manage¬
yield 3 to 3 J/2 %, we must not for¬ ment. What will the borrower do
get the Bank itself will ask 1 to with the
money he gets? Bankers
iy2% annually of the borrowers
very much like the idea that the
so the cost of money to the latter
International Bank' will make only
will be 4 to 5%. Countries with constructive loans.
Money loaned
credit sufficiently good to attract
so the borrower can get new tools
lower rates may well by-pass the
or get old tools out of hock en¬
International Bank and go direct¬ ables him
to
go to
work./ The
ly to investors, as they did in days banker with the glass eye who
gone by.
•/••/// loans us money at home invari¬
4/.//-: y
There are many other avenues ably finds out what we were going
for the American dollar to trip to do with the cash. It is a wise
good enough to sell at
abroad.
should be sound."
they
will
be
Bank of 44
is "They
answer
To begin
guaranteed
with,
by
the
nations, in which the
United States is
a 30% stockhold¬
The loans made by the Bank
er,
to be guaranteed by the gov¬
of
the country where
are
ernment
the borrower is located,
or
by its
Central Bank.
In addition to
rate
paid
1%%
an
of
interest
extra
1
to
the
the lender,
per
year
is
to be
rate.
Things
will
be
a
3 to 3V2%
a
.
bit
dif-
ferent from the 7 and 8% foreign
loans floated in the 'twenties.
Who
will
buy
these
loans?
we
business and'
The
resources
of
our
Ex¬
to $3^ billions.
certain
negotiating
At this very mo¬
countries
for
very
are
large
now
Gov-
precaution. It may take the "do
gooders" to get things started. It
will .take the far-sighted credit
men to keep them going. •
j
-
D. The
and
our
Bretton
Woods
Export-Import;
Bank>
New
the
While
region.
England
New
the
the interests of
advance
to
order
feels
England; banker
justice,, perhaps, that
his policies have stood the test
of time and that he can stand on
an excellent record; nevertheless
we are entering a new and highly
competitive period, and it is im¬
portant that we be in tune with
the public pulse.
with
some
During the past 15 years; you
and I have had to start doing a
things which we haven't
particularly, enjoyed doing, submitting to controls and regulations
which we once thought were un¬
holy invasions of our sovereign
rights, but. which we have had
of
lot
profit and loss state¬
and/balance sheet
I don't
expect bankers to bedeck theircounters with pink ribbons and
forget-me-nots, .but there is a
sound; lesson to be derived, by
bankers
from
a
study of the
ment
merchandisers
-/'/"//'
J
learn
take
to
in
stride
our
as
Government loans frequently give
to expediency.
way
E. We must
and,
/■/'
to
putting up their product in a
package which possesses sales ap¬
peal.
Keep in Touch With
Communities
Your
to study the needs
New England community
end that your attitudes and
1 urge you
of your
to the
policies; and the services which:
you offer, shall be tailored to fit
those needs.
New England banking; is one of the,
great resources
of our
think, it is a fair statement that I
called upon by field repre¬
am
help make the In¬
sentatives of three times as many..
ternational Bank work. There was
New
dissenting voice on this
part of the Bretton Woods plan;
Some 44 nations are going to try
to. get together and do business
the
scarcely
on
a
multilateral
bilized
lines
currencies.
with
sta.-
The
ultimatq
rewards can be truly great.
F. On the hopeful side, interest
will
rates
be
lower
and
not
the
back-breaking rates of the 'twen¬
Rules provide for construc¬
tive loans. More careful scrutiny
ties.
will be given than
bond
We
issues
are
of
embarking
decades
on
seas/ but the peace and
Bank; ferent this. time.-
and
;>-/-
banks
I am by all
banks put to¬
as
England
both are large institutions in/
Maybe my good friends!
granted, but.
Boston.
at home take me for
when
a
as
I
ago.
a
business takes a customer /;
granted, it is treading on thin;
for
iCe.
banking -needs*
as truly
business needs one, and if
I think/that
sales
my
department just
the
were
sales
of
manager
a
title, I should; i
see to it that my men called regu- ;
larly on the businessmen of my;T
community, whether I knew them / :
troubled
bank, whatever
prosperity
of the- world are at stake.
York
New
gether. Indeed, with rare excep¬
tions, there are only two banks in ;;
New
England which ever send
their field men around to see me,1
for the ill-fated
two
national banking can
r.;. Tl i ■]
;
to; the public's wants—
indulge in a metaphor/
services
Inter¬
my
really be dif¬
i
; /// .? well/or but casually,
■
f
the more successful
in adapting their-
of
methods
region/but the Converse is
true that New England industry
concomitants of a new era. These
arid
commerce
are
the things
trends are not confined to our
which have made New England
shores? they are world-wide. In¬
banking great. If you would keep
deed the New Deal was old in
it great, look to your commerce;
many countries before we
even
and industry and be sure that you
heard of ~ it.
Even England has
haye missed no chance to serve
gone Socialist, and the Old Lady
them well and to keep them here.
of Threadneedle Street will soon
To this end, I think it is trebecome a department of govern¬
mendously important that New
ment.
And so ironically, despite
England bankers should keep in
the social legislation which has
active touch with the manufac¬
turers and merchants within their
should not do all the foreign lend¬
own communities.
Through some
ing. Wherever possible we should curious
quirk in human nature,
strive for privately-placed credits.
we tend to
look for customers at
History shows
the pay-off on distant points while forgetting.,
privately-placed
loans
is
best/ those who are near at hand. ' I
to
assume
port-Import Bank available for
foreign loans have been increased
ment
representative
professional men of
New England think about bank
methods and policies and what
they feel bankers need to do in
tion view of what
a memory.
There are now over
Czech loan
general cred¬ in importance.
it. The investor will then simply / Things can really be different
this
look to the guarantee—the same with International Banking
the Albanian loan, the
and the others
Exchange Commission?
the amount of private
money which goes into foreign
bonds. Indeed, the Bretton Bank
alone may become the second
largest borrower in this country,
being exceeded only by our own
Government.
It
is
no
piker's
,
The
more
likely
is that the Bank will put
Kalamazoo.
about ; $10
billions.
They now
have invested a total of $9.6 bil¬
in
become
Oskosh and
commonplace as
as
istered
Within
-
Czechoslovakia will
American investors hdve built up
their holdings in utility bonds to
15,000 banks.
,
pronounced the names.; Albania be just
to
our
the
-
.
dollar credit will beat
a path to
door.; The line forms on the
iright ;We shall be asked to spread
our low-cost credit ever the face
of the >. globe. Few people realize
,
.
Hew* ing; :> has:: been?;/trie - united /front expressed/?thai -the/ Ccmhcitini^t cerit&vWOtthvOf ;;slighUy scented* ^
lanolimfor two dollars and. a half? /.
ever, it now appears our State which
that
government,
their risk loss of support in? sometquar*
;j
and, Federal
Governments
will bankers > and; • dieir: business/ men ters if the report were published; Primarily a by putting it up in a
pretty -package/i/and^/caUing; t.it^
soon be asked- to give- their legal
displayed throughout/the years.
The Value of Publicity
"Passion's Allure," or something
blessing; to the/new kind/ of for^ ; There are ail- kinds of dollars
of •the', sort.; All of the Consumer/ g
eign loans. It seems probable they within our own borders:; the Gov* '//Nevertheless; • your roriimittee'
Research
Institutes. in the;world
submitted; its/ com¬
may do so.
ernment dollar, the labor dollar, generously
ments to Mr^Uhase arid ; his com-- cap tell the ladies; that /they cart /
One of the very first, things the the, business dollar/- and/ quite a
mittee with unquestioned benefit get" the same thing across' the drug
new Bank will have tov decide is
hi^h^^kih^ihglgoes/oA- to see
counter and mix. it up in theii?
whether to float large general who gets what. But in any event, to all concefried. I tbihk the Chase
own kitchens-for a dollar a; galr /.
loans in the form of guaranteed these dollars Wind up in some report was, measurably improved
as
a
result, but I want to stress Ion, and they'll still flock to the /
debentures with unspecified pur¬ American 'pocket. When the fa¬
a point in this connection. = We of
perfume counter and buy the
cartwheel
goes
abroad,
poses, or whether each individ¬ miliar
the New England Council felt arid product with the fancy label. That,
ually guaranteed loan will be sold however, it may be quite another
briefly; is what the public wants,
separately. If the latter proves the story>. If this dollar gets lost in still^feei that we were doing a and the smart irierchandiser bows
signal
service to
the banking
case, then people will have to get the scramble, it may/help world
business in giving it a cross-see-- to the inevitable with salutary ef¬
out theif; geographies, and learn trade, but for the investor it will
fects on his
not generally eligible;
are
'
J.a':.i
on a
) S
regular"
5-
'
Volume
r
and
f
THE COMMERCIAL &
we
we
with their needs,
that
;
suggestions
concerned
were
we
we were
in existence
primarily for the purpose of serv¬
ing our community, of which they
Were an important part.
Small Business
so-called <' small
3 • The
has received
man
'ft.
business!
lot of public
a
notice.of late, and though I don't
know Just what a small
•
business*
is, I know that there
man
are a
of ,them in New England.the banks oh whose boards I
-
lot
Now
serve
do in fact transact a lot of busi¬
with the small businessmen,
ness
// and
;
-
(Continued from
permitted to use
their unused excess profits credits
just as though the excess profits
Your
back
that
the
of losses be
termination
the
of
rec¬
continued for
of/two/years
period
/■"/
further
present carry¬
a
the
profits
after
excess
tax, and the period for carrying
forward
one
year's v losses/be
lengthened so as to apply against
subsequent earnings for a period
of six years. Amendments should
be
immediately ; adopted / which
will
the
remove
difficult
interest, depletion, dividends, etc.
it is
3. Elimination of Double Taxation
there
On
other
the
hand,
associations and from
ties
Smaller
the
of
the,activi¬
War
Plants
Corporation and some other Gov¬
ernment agencies, that the small
businessman, himself feels that
3: bankers
are
either
unable
to
of Corporate Dividends
him
adequately or are in¬
different to his needs. Here again
the important thing to recognize
is not what you and I believe to
be the situation,' but what our
potential customer thinks is the
serve
I contend that the need
intelligent sales ac¬
the part of the banks
situation.
is
for
more
tivity
on
England
Vice-President in
themselves.
New
The
the corporation pays a tax on
and
are
its
the
again when
distributed among
the stockholders
dividends. In
as
little fellow's
man who talks the
call
humble
is
enough
to
him at his place of busi¬
on
find out
wl?at he wants,
and is sympathetic to his needs
and ready with counsel and ad¬
vice; will have gone a long way
towards keeping' banking in pri¬
vate hands;: preserving free en?terprise, and furthering the re¬
to
ness
growth of industry
within New England.
I don't see
tention
and
how you can fail to
-
recognize the
need.
If "you don't; the Govern¬
ment
mended that the
normal tax rate
corporate income
the rate of basic
individual incomes, say
20%, and that dividends be free
of normal tax to the individuals
tax
upon
receiving them.
would,
.Thus, the stock¬
in
effect,
be
the corporate tax
holder
credited
with
will, for small business has
paid out in dividends to the
tax, leaving
surtax to be ..paid Z by the
come
extent of the normal
Only
stockholder.
4. Capital
The
and
Gains and Losses
capital gains tax is
a
something
political hot potato and
is going to be done
enterprise
to
a
It
system.
incentive
and
prevent freedom of transfers
nec¬
serves
is
destroy
of the most vicious fruits
one
of
the war
in
banking circles.
"Government Participation" is an
enervating thing. ; Like the road
the
to
about it.
Fascist
/ Don't Encourage Government
•'
',
Participation
a
corporate^ State and the
Socialist
or
economy,
or
whatever you want to call it, it is
•
appalled during re¬
cent years at the readiness with
which some bankers have wel¬
comed, and indeed encouraged
Government participation in loans.
I have been
If this had
happened only in in¬
where
the s prospective
stances
borrower
was
obviously
poor
credit, I could understand it; but
often, alas, the attitude has
been the result of mere lassitude
too
and indifference#
Do
you
want a
example?
I'll give you
one, if you will forgive my talking
about myself.
I walked into a
large bank a few months ago and
concrete
^
stated that I was a bit concerned
,
about the possibility: of a cash
stringency in our business in the
event of a sudden termination of
hostilities resulting in a temporary
unreasonable delay
I told the banker
that while our financial position,
which I will modestly admit is a
moratorium
or
collections.
r
sound one, made it seem un¬
likely to me that we might en7 counter any such difficulty, never¬
theless I wanted to be sure that
our
credit line was intact and
very
-
■
that
get help if and
heeded it. Without even
could
we
When
asking
at
our
of
me
a
question, or looking
balance sheet, and in spite
the fact that
known,
over
a
this banker had
period of many
the fiscal condition of our
his reply was,'"I sug¬
gest that you aply for a V-T loan,"
Well, I thanked him and left be¬
cause, if that was the limit of his
advice and assistance in facing
years,
company,
my
business
God help me
myself, in
a
problems with me
if I ever really found
pinch with him.
This
-is the sort of thing that I believe
ing its repeal, favors
ate
reduction
primrose path;! but there is a
of poison
ivy beneath the
lovely blossoms. It is so easy to
bed
lean
so
on
Uncle Sam's shoulders and
difficult to get out of his em¬
in freedom
of enter¬
prise, arid that the best govern¬
ment is the least government, con¬
with
sistent
for law and
order; but it takes effort to pre¬
serve it.
In the last analysis, the
people will get what they want.
respect
When Wendell Willkie
to
flat
a
Excess-Profits
and Capital-Stock Taxes
This Association has repeatedly
declared
itself
as
in favor
repeal of these taxes.
basis
real
in
was
They have
for their
reason
existence;
they are a
annoyance to business;
derived
revenue
the
of
and -the
is
them
apparently insignificant.
Your
Committee
that the
recommends
Association
for
,
reassert
repeal of these
applicable to the year be¬
ginning Jam 1, 1946.
With
whether
in
question
of these
to
the
there
taxes
;
the
place
respect
should
be
tax
a
to
apply to corporations that do not
make profits as well as to corpo¬
rations that make profits, your
Committee
believes that
such
no
tax should be
imposed.. So far as
Federal taxation is concerned, the
corporation income tax should be
the only tax imposed directly on
corporations.
Any taxes in the
of franchise
nature
left to
be
the
should
taxes
states1 under
the
cam¬
paigning for the nomination last
year, he said to a group of Rhode
Island
Republican
bluebloods:
"Don't waste your breath con¬
demning Mr. Roosevelt for the
New Deal.
If he had not been
no
better alternative."
And so, in
conclusion, I
.
say
and
not taken
were
labor
were
7. Tax
needs of their close
friends
and
who
to
the
neighbors and
made
the warp
woof of their business com¬
up
munity, and who became great be¬
the
cause
they
little
businesses
which
nurtured
through
adoles¬
in due course became flour¬
cence
ishing
Intercorporate
on
/
Divi¬
Committee
Your
the
that
favor
recommends
Association
continue
a
served
insure
little
brethren
a
England#
bigger
--
more
like
to
our
the
2.
The
surtax
be
working
less
west,
re¬
to
and better New
v'-"//,v ./
under
■
,
the
limited
in
a
50%
the
rates
tax
4. There be
present
estate and gift
.
normal
to
an
so
to
Under
the
provisions
Security Act the
Social
tax will bs increased
pro¬
rate not
exceeding
bracket.
If
highest
1947.
year
were
a
, normal
tax rate
ranging from 15 to 20%, the grad¬
mittee of
uated
its
surtax
3;
The
would
rates
35%.
or
presently
creased
':
G.
4. The present combined tax of
for the lowest bracket
of
requirements.
enue
upon
rev¬
This
rate
against
double
taxation
of
5.
Withholding
be continued.
/
■
C. Excise
;>
Over
two
collected
in
the
the
given
source
that
Your Com¬
that
a
Committee
the
rec¬
principle, Of
freed
of
the
arbi¬
there
tion
excise
be
vested
of
power
in
the. Tax
final
deter¬
of relief
measure
107
of
the
Internal
Revenue
Code be amended in two respects:
point which will not
reduction
the
in reviewing
the action of the
Commissioner of Internal Revenue.
2. It is recommended that Sec¬
in the post-war
the
relief
constructive normal
a
mination of the
dollars/were
recommends
Your
that
effect,
Court
mittee
be reduced
providing
ther, the Committee recommends
'
sundry excise taxes.
taxes
/
trary and technical rules now bat
the statute and regulations. Fur¬
past fiscal year
Government in
Federal
/
»
Internal
base period net income should be
Taxes
billion
/
the
of
Code,
arriving at
corporate
Federal income tax at the
722
J
Administrative
cases
ommends
individual
of
in¬
'
of hardship, has be¬
enmeshed in a mass of tech¬
come
dividends.
•
be
not
Amendments
nicalities.:.
in, as sug¬
gested above, with the normal tax
for corporations in order to avoid
cent rate
per
present time.
and
Section
Revenue
would then be geared
the
at the
/
1.
taxable income should eventually
be replaced by a single tax of
one
in/ effect
Technical
23%
20%, depending
a
coverage and financing—it is
the recommendation of youh Com¬
exemption for
regular income tax of $500 for
each taxpayer and for each de¬
to
Since
for the
special com¬
Congress is studying the
mittee that the
present
the
16
to
one
entire subject of social security-
run
1
pendent be retained.
the
of
payroll
from
two and one-half per cent
there /
from 1 to 30
taxes.
F. Social Security Payroll Tax
and
eventual
as
integration of the
no
//'
ceiling of
a
avoiding inheritance taxes.
compu¬
'" /"
;
of
*
after
combined
vide for
in
of death should be so freed unless
the government can pi;ove
that
they were made for the purpose
,
beginning Jan.
There should be
reduction
(1)
'
.
Where subsection
(a)
uses
the term
'^personal services" such
changed to "work
done"; and
/
;
/ /;■
rec¬
repeal of the tax on
intercorporate dividends effective
the
for
1946.
beginning
year
It
would
serve
Jan,
as
1,
en¬
an
couragement to business as well as
to restore a fair practice common
to earlier tax laws if the plan
Consolidated
distributed
It
is
Returns
Profits
further
the
of your
Un¬
/'
of
paid
a
for
'(
distributors " of
goods.
-
/
-
Committee that the
its
position
repeal of the pen¬
taxpayers similarly situated
during the period since the orig¬
inal enactment of
discrimination,
,:;/
calendar
Economy in government ex¬
penditures is a vital part of sound
government policy, In view of the
large expenditures made for the
prosecution of the war and the
genuine need to end the Federal
practice of deficit financing, gov¬
ernmental expenditures should be
restricted
to
conduct
the
of
over
years
more
ment is
that the services be per¬
formed
over
period
a
es¬
Your
one
taxable
dar months and that at least 80%
that there be
of
or
the
compensation be received
accrued
in
one
law
Section
cable to individual A who received
and
supervision andicontrol over
government corporations and
their scope of operations.
his compensation in the year 1944
but not be applicable under en¬
ernment, the Federal budget can
be balanced in the fiscal year 1948,
the deduction of
i
;/
:
'/
i
,
B. Individual Income Tax
The Association
advocated
dividual
the
has, in the past,
lowering of in¬
tax exemptions,
in effect, in order
income
which has been
large number
of persons not previously taxed
for the support of the government.
In your Committee's judgment a
tax
on
a
individual
deterrent
in
its
income
effect
is
upon
less
pro¬
Your
which
Committee
believes
year.
under the existing
107 might be appli¬
pensation in 1941.;
/
taxable
In other words,
through the curtailing -of all but
ihe essential expenditures of gov¬
/
sixty
year;
profits..
-v >. ;
of
or accrued
and begin¬
ning with 1942 to date the require¬
ment is that services be performed
over a period of thirty-six calen¬
in
all
tax
years
a
or
of 2% on the filing of
consolidated returns, and oppose
any r taxation
of
undistributed
alty
the
pensation be received
Committee
recommends
improvements in the
appropri¬
ations and controlling
expendi¬
tures.
Furthermore, Congress
should have information regarding
;
For
months and that 75% of the com¬
/
.
v
period of five
and that
95% of the compensation be paid
upon completion of such services;
as
to the year 1941 the require¬
performed
sential activities.
on
1939 and 1940 Section 107 (a) re¬
quired the services to have been
and Debt
D. Expenditures
Section 107
equal footing and prevent any
an
consumer
r.
to the effective date would - put
all
1
property
methods of determining
recommenda¬
reiterate
Association
and
imposing
3% tax on the
the transporta¬
by rail, motor
vehicle, water or air.
The ob¬
jection to this tax is that it is a
heavy burden on manufacturers
tion
the
through taxation
boosting
law.
to
that the government might reach
with worldwide interests.
•.
such
flat reduction of 20%
in the Federal income
the tax
//. / ....
and
tities
and
ting
amount
materials and
enterprises, and in many
instances far-flung corporate en¬
Let's do
a
made
of 1942,
dends
8.
integral parts
located—alive
be
/•/' ,/
.
the year
question of having been made in
anticipation of death, and, further,
gifts made within two yearp
recommends
tax, on individuals
which
during the war period./
in favor of the
they
;
For
of due to the
repairs
care
to obtain
inability
when
were
1.
tWo
than
more
years before death be freed of any
.
bankers,
banks
V
1, 1946,
en¬
giving.
Corporate
and
non-corporate ommended in the income tax rate.
enterprises
should
be
allowed The question of retention, aboli¬
(2) That the amendment pro¬
greater latitude in making annual tion or reduction of excise taxes
posed in (1) above together with
allowances for depreciation.
So or their rates /should take into
the amendments made by Section
long as the depreciation charges consideration: /// ' / -, / /
139 (a) of the 1942 Act be made
Z/1/The deflationary tendency of
are limited in the aggregate to the
retroactive to all
taxable years
••
original cost of business assets the tax..; v<- ,1
beginning
after
December
31,
2. The optimum point of pro¬
there can be little difference to
1938.
;■■ ■;. //
./'
the government in the long run,
ductivity of revenue derived from
/
The
first
amendment
suggested
whether such assets are written the tax.
Z!
;
above would make it clear that
3. The nuisance effect.
1
off slowly or rapidly. The ability
the income could be spread over
4.
The
adverse
effect
on
indus¬
to
amortize
assets' rapidly
pro¬
the entire period of the work done
vides; an important stimulus for try and employment.
and not necessai'ily limited to 'a
Your
Committee
recommends
the purchase
of new and more
period under which a contract of
efficient
equipment.
Also, ade¬ that the Association reiterate its
employment may have existed.
quate tax deductions should be position in favor of the repeal of
Section 620 of the Revenue Act / The second amendment relating
allowed for accumulated deferred
that
of the small communities in which
courage lifetime
3. Gifts made
term should be
tion
as
that:
interfere witn
must rededicate
ourselves to the kind of banking
which made New England great
we,
Committee
.
6. Depreciation
President* somebody else would
have given the country the same originally adopted in 1918 were
restored under which corporate
thing he did, because that is what
dividends were exempted
from
the poeple were asking for—ask¬
taxation.
/;
'
ing for it because men like you
offered
Your
by
which
by taxing gifts at rates sufficiently
lower than estate tax rates to
uper
corporations are
licensed, and any approach toward
a
Federal
licensing system for
corporations should be avoided.
of
laws
2. The gift tax be more
clearly
differentiated from the estate tax
income groups are not so high as
to limit consumer markets unduly.
its
the
venture
corporate
that
the
tax
encouragement to risktaking, and
that the tax rates in the lower
constant
from
the
on
of
upon
income groups
sufficiently lightened to give
are
50%.
5. Declared-Value
.
I believe
immedi¬
an
of the tax
12y2%, similar to the tax
in force on 1921, accompanied
by
a
12 y2% /allowance
of
capital
losses as an offset against ordi-»
nary income,
maintenance
brace.
.
of
rate
flow
provided
period to
direct
upon the
restriction
unwise
private
,
the abolition of the tax and, pend¬
be fixed at
rate equal to
a
in
,
taxes
on
Furthermore,
the
long run the receipts from this
tax are not an important item of
government revenue.
;/./
j
Your
Committee
recommends
demand
duplication, so
practicable, it is recom¬
'
become
condition.
far
which will be treated as having
bank with a
Charge of Smaller Business Loans been paid in his behalf. This
would
be equivalent to a with¬
may not alter its policies or serv¬
behalf of the
ices by one whit, but the mere holding ta3f on
presence among its officers of a stockholder on corporate net in¬
^language,
keep the investment
portfolios of the nation in a sound
order to avoid this
as
rates
to
essary
no
Income derived by stockholders
is now taxed twice—once when
earnings,
earnings
profits,
1824)
page
the
capital than taxes
adjust¬
their part to be either distant or
uncooperative / in
dealing
with
my
nouncements of the small business
;
Committee
ommends
abundantly evident from the pro¬
:
continued in effect. Y
tax
ments in computations relating to
such items as government bond
them.
'
be
taxpayers
distinct impression
is no
disposition on
it is
that
i
Program of Tax Revision
wanted
criticisms,
and
1861
duction and
A
looking for
were
their
•/// in brief, that
:
FINANCIAL CHRONICLE
systematic schedule, making
it clear that
business, that
V
-Number 4430
162
tirely similar circumstances to in¬
that
dividual B who received his
com¬
/
3. Provision should be made for
search
budget should include pror
and
experimental
developmental
penses.
vision for debt retirement.
>
re¬
ex¬
•'■/
*
4. The foreign war loss and re¬
E.
Your
Estate and
Gift Taxes
Committee
reiterates
covery
its
recommendation that
;
5. The
base, which is now sur¬
for computing the
eighty per cent ceiling should be
changed in order to avoid the
tax net income,
The
present exemption of
$60,000 for estate taxes should be
increased to
$100,000, and that
tne rates be materially reduced.
1.
provisions should be mod¬
ified.
I
,
(Continued
on page
1863)
>
'.iv'-'i-;!,
THE COMMERCIAL & FINANCIAL CHRONICLE
2862
poration
Tint
of
filed less than twenty
ago.
sec.
exercise their
shares
.
grouped according to dates
on
which
registration statements will
in normal course become effective, un¬
less accelerated at the discretion of the
days
not to
34,061
which
filed
4
POWER
filed
1
Oct.
CO. on
statement for
registration
a
120,000 shares of 4 ft ft
preferred stock,
cumulative, pir $100, to be offered in ex-
/
f
cash adjustments,
Details—See issue
Underwriters—The
Dillon
...
Co.
fie
PROVINCE
•' Oct.
.
1
"
v'
INC.,
filed
of Oct.
Brothers,
Lehman
<
filed a registra¬
50,000 shares of com-
for
tion
statement
tnon
stock,
and
outstanding
i
bet.
Blair fie Co.,
public
We
Details—See issue of Oct. 4.
Offering—The offering price to the pub¬
4
lic will be filed by amendment. The shares
being sold by certain stockholders in¬
cluded among whom are Lee Higginson
Corp. and Chas. W. Scranton & Co., who
are
also included
are
y:
the underwriters.
among
Underwriters—The group is headed by
Ijte Higginson Corp. and Chas. W. Scran>> ton fie Co.
;
below
present
twenty
days
dates
offering
mined
or
or
issues
but
whose
been
deter¬
ago,
more
have
not
unknown to
are
of
list
a
statements were filed
whose registration
group
CORP.
Oct. 5 filed
on
registration state¬
a
convertible pre¬
ment for 300,000 shares of
$5 par,
Details—See issue of Oct.
.
11.
Offering^-^he price to the public is $5
share.
.
Underwriters—The group Is headed by
Kobbe, Gearharfc fie Co, Inc., and Newburger fie Hano.
y
per
AEROVOX
CORP.
GAS
Oct.
filed
8
ELECTRIC
&
registration
a
on
statement
for
$49,000,000 first and refunding
bonds, series N, 3%, due Dec. 1,
Details—See issue of Oct. 11.
Price—The
filed by
price
to
the
mortgage
1977.
17
public
will
First
to
Aug. 24 filed a registration
be
Boston
/
•
,
Details—See issue of Aug. 24.
Offering—The company is offering the
new
stock for subscription to its common
of
16
the basis
on
additional share for each 2ft shares
one
$14.50
at
Corp. and associates on bid of 104.7999 for
offered
and
Aviation
to
Corp.,
DEVOE
SUNDAY, OCT. 21
Oct.
Shares
Oct. 2
registration statement for 35,000
of cumulative preferred stock (no
par),
Tbe dividend rate will be filed by
filed
a
amendment.
issue
of
Oct.
Offering—Stockholders
be
asked
on
to
approve
4.
issue
$hares of new cumulative preferred stock
.
and
to
mon
shares.
authorize
in
13,950
outstanding
Shares
additional
com¬
Of the initial series of 35,000
13,950 new preferred will be of¬
exchange share for share for the
Shares*
fered
160,000
and
19,689
$5
prior • preferred
will be offered
shares
; jn exchange on the basis of 0.51 of a share
for one, for 38,606 of the 58,606 outstand¬
ing
6 ft
preferred
writers
and
will
1,361
shares.
purchase
shares.
Becker
&
Co.,
Inc.,
MONDAY,
DRAVO
tration
CORP.
stock.
common
stockholders.
issue
Offering—Price
filed
by
-''
y
filed
3
regis¬
a
issued
are
of
.
and
the
to
Jon
public
Corp.
Co.; Graham, Parsons & Co.; Paine, Web¬
ber, Jackson & Curtis; Singer, Deane &
Scribner; Auchincloss, Parker & Redpath;
Otis & Co.; Baker, Watts & Co.; Moore,
Leonard & Lynch; Stein
Bros. & Boyce;
Farwell, Chapman & Co.; Kalman & Co.,
Inc.; R. S. Hudson & Co., Inc. and Hill
&
will
be
v
COLUMBUS
TRIC
CO.
Oct.
filed
3
registration
shares
of
4ft ft
133,745
a
NOMA ELECTRIC CORP.
convertible
of
common
conversion
163,120
reservedi
are
issue of Oct.
11.
offering price of the de¬
by amendment.
Underwriters—Reynolds & Co. heads the
underwriting group:
y <
bentures
will
filed
be
has
&
filed
HOWARD BALANCED
registration
a
500,000 $1
statement
trust shares.
Address—Boston, Mass.
par
Underwriters-—Eaton
FUND
-
■
,
.•
Details—See
issue
of
Oct.
price
Underwriters—The
11.
to
1
•
the
shares
-
'
sold
and
registration
of
cludes
F.
on Oct. 3
filed
for 90,000 shares
$1.
The total in¬
stock, par
40,000 shares being
Engel,
President,
125,000 Shares of
Details—See
«
who
common
issue
Offering—The
of
price
per share.
Underwriters—Van
sold
David
the
&
Howard
is
Oct. 3
$8
Cm
filed
a
due
1, 1965.
Of the total $4,000,000
being sold by present holders,
are
Details—See issue of Oct. 11.
,
POLAROID CORP.
istration
statement
on
for
headed
Oct. 3 filed
80,875
a
by
reg¬
sharps
of
stock, par $1.
Details—See
issue
of
Offering—Company
is
AVIATION
of
Oct.
11.
offering the
new
(Stock to its stockholders at the rate of one
share for each four shares held of record
Oct. 11.
Certain of Ube< company's stock¬
each
2 ft
shares
Unsubscribed
price
held
at
shall
shares
9
warrants
attached.
issue
of
• no
CORP.
amend¬
by
Sept.
on
for
a
shares
preferred stock
The dividend rate will be filed
par;.
'
is
*
issues Oct.
the
offering
basis
be
filed
shares
289,675
by
at
price
a
the
shares
300,000
stockholders
its
to
and
on
a
amendment.
Any un¬
10,325 additional
subscribed shares and the
will
be
and
Lehman
purchased
offered
the
by
the
to
Brothers
public
under¬
at a
headed
is
group
Emanuel
and
the
shares
at
company
of
$10
to
proposes
common
sflare
per
without
or
a
sell
under¬
total
of
&
heads the underwriting group.
common
by
filed
subscribe
sale
and
120,000
exercise of
the
N.
Y,
shares
.y
Business—Company
March
12,
are
Avenue,
was
1945,
to
engage
an
fly regular or scheduled
present it operates one cargo
plane,
a
Lockheed Lodestar
(cargo ver¬
sion) having a capacity of 3,500
pounds
payload.
Corporation has contracted to
purchase from the Reconstruction Finance
nor
Corporation six Douglas C-47 planes at a
price of $20,000 per plane for five
planes
and $25,000 for one
plane.
Each of these
planes has a cargo capacity of
approxi¬
mately 6,000 pounds
payload.
DeH^ery 'of
the planes* is
expected Shortly.* The cor¬
price
the
to
(par $10).
capital stock, par $5.
of
Oct.
Sept.
on
5ftft
ferred
24
-
registered 12,500 shares
($100 par) preferred
stock
the
for
1 l-10th
right
stock
new
shares
of
adjustment
each
four
to
at
Son,
shares
Dallas
exchange
the
on
5ftft
for
of
old
for
preferred.
Rupe
&
Co.,' Rauscher
•
Pierce & Co., Inc. and Pitman & Co.,
Ullrich,
of
with.a
shares
Dallas
Trust
Union
;
their
basis
preferred
fractional
Underwriters—Include
y
•
Inc.
St
LEHIGH. COAL & NAVIGATION CO;
Issue.
Sept.
filed
28
$13,000,000
COVENTRY GOLD MINES, LTD. on Aprl
21 filed a registration statement for 333,33?
thares of common stock.
series
A,
be
fund
Oct.
filed
.Details—See
Ott
registration statement for
a
sinking
due
will
rate
Details—See issue of April 26.
1,
by
mortgage
1975.
The
interest
amendment.
of Oct. 4.'
issue
bonds,
,'r
'
.
'
•
,
■
Offering—The price to the public will be
filed by amendment. ;
i.
Offering—Price to the public is 30 cent*
per share.
/. .■
The
^
cumulative
cash
\
named.
.
4.
named.
,
Louis, will manage the; $ale of the entire
Underwriters—None
issue
• Details—See
issue of Sept. 27.
Offering—Company will offer holders of
outstanding $1.50 dividend cumulative pre¬
a
135
L.
'
stock.
Details—See issue of June 21.
per share.
Underwriters—William
-
At¬
HOUSTON OIL FIELD MATERIAL CO„
of
106
Offering—Price to the public is given
la
public
/
Underwriters—None
shares
(hares common stock
I
CO. on Sept.
registration statement for 95,544
a
of
Details—See
•»
.
;
com¬
.
Underwriters—Drexel .&
underwriting group.
~
,
heads
Co.
the
: v
; ;
pany proposes to market its own securities
LIBERTY
CROSS
tion
CO.
5ft ft
Sept. 28 filed a registra¬
on
statement
covering
convertible
cumulative
stock,
par
chase
common
$10;
shares
60,000
60,000
of
to
pur¬
of
shares
100,000
issuable
exercise
upon
purchase
Underwriters — R.
METALS
Oct.
of
public
4.
at
$10
entitle
which
to be
share.
is
per
the
holder
for
period
three years
of
for
underwriters
5
Underwriters—F., H.
be
to
are
cents
Cp.
I
sold
Koller fie Co.,
filed
registration
a
shares
of
INC.t
statement
stock
common
(par
Of
sold
the total, 30,000 shares are being
the company and 70,000 shares by
stockholders.
f
by
certain
-
'"
to
warrant.
per
fie
DISINTEGRATING-CO.,
28
100,000
$1).
to
purchase common stock at $5 per share for
a
the
Sept.
on
stock
preferred
the
to
warrants
H. Johnson
principal underwriter. -
named,
stock,
common
warrants.
Details—-See-issue
The
of.
common-
by amendment.'
issuable upon conversion
of preferred and 60,000 shares of common
$1,
par
FABRICS
OF
NEW
YORK,
Sept. 20 registered 100,407 shares
stqck, par $1.
i
Details—See issue of Sept. 27.
:
Offering—The offering price will be filed
INC. on
of
preferred
warrants
stock;
is
named underwriter.,
.,
Inc.,
—,,,
registered
first
$28,850,000
bonds series due 1975.
Details—See issue of
Details—See issue of Oct. 4. ■
^
.fOffering—The price- to the public will
be filed by .amendment.
Underwriters—Crutteriden fie- Co.,
Chi¬
to
the
at
a
to
the
the
new
common
at
the
rate
but
the
right
shares
at
of one new
held.
There
shares
five
corporation
the
right to sell any unsubscribed
price which will net the corpo¬
least
$3
per
share.
*
'
-
underwritten.
CORP.
Offering—Price
competitive
Invited—Bids
bonds
11
will
for
the
received
be
Oct.
(EST)
a.m.
purchase
of
by company
up
bidder
to
24,
on
Aug. 22 filed
$75,000 of 3t
at 100.75 and
v
Ziegler & Co., West
; "
the
Aug.
28
filed
•
v
RACING ASSOCIATION
a
registration
statement
for
$1,000,000 6% 20-year debentures due
SepT;. 1, 1965, and 10,000 shares class A
Stock (no par).
;
'
.•/'• /
,
Details—See
a
issue
of
Sept. 6.
Offering—The public offering price foi
unit consisting of $500 of debentures and
five
shares
of
stock
is
$500
with
the
derwriter
un¬
receiving a commission of $25
TVidprir-i+Arc—Barrett & Co„ Providence,
R. I.,
underwriters.
1
1
*
;
f
\
'
1
40,000
f
.
shares
5ft
and
issue
of - Oct. 4,
1
public to .be supplied
of
one
share of
to
amendment.
Unit
and one warrant
Underwriters
principal
-
dtt
of
preferred
—
be offered.
to
Hayden,
Stone
fie
Co.
underwriter.
,;;
MONTANA-DAKOTA UTILITIES CO.
RAYNOLDS
&
INC.,
CO.,
on
14
stock is
of
B
offered
Details—See
subscription to holders
presently outstanding class A and class
stock, at $60 per share, on the basis of
by amendment.
each
share of
one
shares
20
of
new
class
Aug.
filed
24
value
Shields
fie
.
-
named
Co,
Details—See
in
statement
for
stock,, par
common
,
,
issue of Aug.
Offering—Common
Morris
30.
-
stockholders
of
the
Plan
Corp. of America are being
rights to purchase additional com¬
stock
mon
principal underwriter.
of
cents.
10
offered
—
2.
OF AMERICA On
registration
a
shares
937,500
Rights accrue to holders of record Oct. 4
and expire Oct. 20.
Shares not taken by
present
shareholders
and the remaindernot
offered present
shareholders will be
sold to public.
". Underwriters
Aug.
MORRIS PLAN CORP.
class
held.
B
of
>
Underwriters—Blyth fie Co., Inc.
share of new class A for each 4 shares
for
A
issue
Offering—Price to the public will be filed
for
of class A held and
on
July 25 filed a registration statement for
223,351 4-6 shares of commqn stock (par
$5). /,
■
registered 40,437 shares of Class
A stock (no par).
Details—See issue of Sept. 20.
Offering—35,827 shares of new class A
Sept.
registration
a
shares
has
entered
purchase
the
filed
of
the company at $8
ratio of
Corp.
13-5
shares
for
per
share
each
share
share,
and
at
has
the
firm
for each
Ltd.,
$1.23
at
option
price.
an
same
to-be .made
Finance,
commitment
shares
1,920,000
on
can
of
be
Should
offered
the
(Canadian
generally
option
Mines Finance,
to
be
not
the public.
exercised
by
make the
Itself will
remaining
FLORIDA
POWER
($7.50
shares
539,240.8
registered
A .*
Sept.
CORP., on
of
issue
Oct.
price
par)
4.
to
be
by
sold at
competitive
on
for
Oct. 22 at Room 2401, 61 Broad¬
New York, by General Gas &
Corp. and Florida Power Corp,
FRONTIER
filed
registered
3j.085
common
;
issue
.
CO.
value.
par
,
„
MANUFACTURING
;
on
shares
^
,
of Sept. 20.
common
holders
common
on
for
each
share
unsubscribed
at
have
common
will offer' present
right to subscribe to new
basis
of
held
Will
$58.30
to
ft
share
of
common
at $60 per share,
shares
sold
to
share.
per
utilize
be
31,001ft
to make this offer.
the
under¬
Company
Underwriters—J.
REFINING
principal
Arthur
shares
of
V-
-
Warner
underwriter.,
•.
&
Co.
.....
.
the
way,
s"?
17
named
purchase of
will be received up to 12 noon
Invited—Bids
shares
:
Underwriters—American General Corp, is
- * /
"
^
T
named underwriter;
.
Underwriters—To
(EST)
Oct. 30.
would
filed
be
at $8 per share last August.
holders of record Oct. 10, 1945,
expire with the close of business
Offering—Company
s
27
bidding.
the
to
the rights
writers
Offering—Offering
Bids
Offered
Details—See
stock.
Details—See
The
General Corp. purchased 937,500 shares
stock of The Morris Plan Corp.
without
offi¬
stock held.
common
made in accordance with the
agreement under which Ameri¬
America
Sept.
Ltd., the company
offering, as aforesaid.
shares are to be
buy
shares for each
preferred stock and 4-10 share
NASHUA
195,000
18 ft
common
of
Ltd.. and La
companies) at
$1.25
per • share,
and
to Eureka stock¬
holders.
Price is expressed in terms of
Canadian money.
Shares not so acquired,
Mines, Ltd.
an
to
stock at $8 per
common
basis of
share of
terms of
per
Frobisher,
Ltd.,
Ventures,,Luz
Corp.
the
offer is being
to
The offering
the shareholders of
among
Plan
on
share of 7ft
4.
Mines
a
being offered, the right
are
Morris
2,595,000
share
Oct.
of
issue
into
480,000
shares
is
for
statement
par $1.
of common,
amendment.
BURRILLVILLE
registered
^
CO.
specify the interest rate.
common
'
is named underwriter.
EQUIPMENT
preferred stock (par $50;,
purchase warrants.
Offering—Price
by
Bids
to
AUTO
DetailsT-See
Underwriters—To be sold by
purchased by the company geologist,
cials and employees.
„■
3 ;
on
100,000
bidding.
the
27
underwriting grpup,
cumulative
amend¬
by
due
:
MONROE
4.
filed
The
Bend, Wis,,
cago, heads th<»
Sept.
Oct.
be
to
Toronto
C.
+
ment.
registration statement for $440,000 first
refunding
mortgage
serial
and
sinking
bonds series A dated July 2, 1945,
Underwriters—B.
v
mortgage
fund
■*
offering an all-cargo charter
exclusively.
It does not carry mail
passengers
routes.
At
Sej5t.
on
MANUFACTURING
filed
shares
registration statement for 25,00(
a
Offering—Toronto
stock
public will be as follows:
at 100.50, $84,000
of 3fts
$281,000 of S fts at 101.
carrier
service
GRAY
28
100.3391
,
Details—See
serially Jan. 1, 1946 to July 1, 1957.
Details—See issue of Aug. 30.
Offering —• The
offering
price
to
thi
New
as
Offering—The
$7.50 per- share.
share with
a
a
reserved
in
bonds at
dividend.
■
offering
common
BENSON HOTEL
New York,
y'-y.Vvy-'
formed
were
and the stock at
4ft
will
has
warrants.
Fifth
its
Underwriters—Not
CORP.
the
16,
coupon
compensation of $1.72
4.
Oct.
is
underwriters,
no
reserves
a
Address—350
of
$3
per
share,
share
for each
registration statement for 420,000
of
common
stock
($1
par)
and
120,000 stock purchase warrants, of which
300,000 shares are being presently offered
for
of
issue
Offering—Company
shares at
TRANSPORT
CORP.
held and stockholders of Industrial Finance
Sept. 28 filed
on
stock, par $1.
Details—See
ration
CARGO
prin¬
registration statement for .200,*,
common stock; pat $5.
Dftaiis-^See issue of Oct. 4.
-
on
Co.
registration statement for 166,063 shares
are
Underwriters—Singer, Deane & Scribner
named
are
a
_/ •/■
& Co.
awarded
EUREKA CORP., LTD., on Sept. 28
BARIUM STEEL CORP.
Of
11.
2%ft
a
Co.
&
less
one
4.
issue of Oct.
Offering—Of
to
filed
28
300,000
convertible
common
a
Oct.
Hutton
E.
DEVOE
filed
be
Underwriters—The
Oct.
filed
fixed by the board
as
price to be filed by amendment.
on
/•.
>
W.
-•
000 shares of
Co.,
DAYTON POWER & LIGRT CO/on Sept.
Aug.
on
statement
cumulative
writers
$231,100.
air
Offering—The price to the public will be
by amendment.
common
Form
&
&
ment./.
registration
to
Jersey
filed
Underwriters—The group is
Harriman Ripley & Co., Inc.
share.
per
addition,
writers
con¬
Aug.
Saint-Phalle
de
CO.
of directors.
Underwriters—To
shares
on
for
be sold at such
SATURDAY, NOV. 3
registration statement for $10,000,000
vertible 4%
sinking fund debentures
.•
$52
holders
AIR
public
share
one
company
Inc.
'
INC.
price of $60.20 pel
a
v
Offering—Of the total registered 135,000
will be offered by the underwriters
at a price to be filed by amendment.
In
for
UNITED TRANSIT CO.
of
a
registration statement for 158,110
shares of common stock, par $1, with sub¬
11.
Alstyne, Noel &
heads the underwriting group.
2
Co.
GENERAL SECURITIES
public
to
Waddell
Awarded—Morgan Stanley
offered
31 filed a
registration statement for 50,000 shares of
$3 cumulative and participating preferred
stock, without par value.
Details—See issue of Sept. 6.
Offering—The
company
has
granted
holders
of
its
preferred stock rights to
subscribe to the new preferred at the rate
owns
y y-
,
and
A
com¬
4.
writers.
filed
stock.
Oct.
to
by
presently
at
Class
Sept. 27
par)
;
Oct.
.
\
WASHINGTON STEEL CORP.
23,110
statement
common
' v>
?
of
-
Underwriters—General Finance Co.,
lanta, Ga., is fiscal agent.
Co., heads the underwriting group..
shares
be
Class B
of
of
shares
10
Underwriters—Andre
shares
Details—See
Is
ANGERMAN CO., INC.,
a
shares
of
<
public
will
26.
unit.
*:
trust.
(10-8-45).
scription
through the efforts of the directors
employees of the corporation.
,
S-5.
on
Offering—The
$5.50 per share.
units
in
Details-r-See
Proceeds—For investment,
TRAD¬
Oct. 3 filed a registration
statement for 400,000 shares of 4 ft cumul¬
v
July
by amendment.
SUNDAY, OCT, 28
PALESTINE
of
issue
on
t$l
-
L. Lyons &
underwriters.
cipal
8
Offering—The
Offering—There is to be presently of¬
fered to the public 250,000 shares of Class
A and 50,000 shares Class B to be offered
for
>
-
Registration Statement No. 2-5976.
CORP.
for
of
the
debentures, notes and
purchase warrants entitling
the holders to purchase an
aggregate of
20,000 shares.
11.
ative preferred non-voting shares.
;
which
and
Offering—At market.
AMPAL-AMERICAN
■
notes
to
organize
a
group
of
securities
dealers to solicit deposits under the ex¬
ING
*
Oct. 8 filed
stock
common
ager
-
on
registration statement for $2,000,000 154%%
sinking fund convertible de¬
bentures,
$1,200,000 three-year 2%
sub¬
year
y, Underwriters — Merrill
Lynch,
Pierce,
Fenner & Beane are named dealer man¬
change plan.
on
shares
registered $45,500,000 first mort¬
gage bonds due
1975 and 270,000 shares
of cumulative, $100
par,
preferred stock.
Details—See issue of Sept. 13.
Offering—Company will offer the 270,000
shares of new preferred stock in exchange
to
holders
of
the
presently outstanding
400,000
shares of preferred stock on
a
share for share basis.
New preferred not
taken in exchange will be sold tp under¬
10 cents.
issue
offered
ELECTRIC CO.
&
135,591
W.
and
regis¬
28
GAS
CINCINNATI
26
Business—Investment
cumulative preferred stock,
y
Details—See issue of Oct.
July 17
filed a registration statement for 505,000
shares of Class A capital stock,
par $1,
and 250,000 shares of Class B stools, pa?
Details—See
17
/.///.; v.-,,.. :;..y
Sept.
•
INC.
be
to
Sidio,
and
20.
Inc. named principal underwriter.
common,
ARDEN FARMS
,
SOUTHERN OHIO ELEC¬
&
on
for
purchased
be
named.
Co.
EATON
statement
will
stockholders
other
Underwriters—None
,
Details—See
amendment.
Securities
will
Shields
are
Offering—The
11.
Underwriters—Group is headed by Mel-
■i
public
the
Co.,
Lee
Higginson
Corp.;
Eastman,
Dillon
&
Co.;
Ladenburg,
Thalmann
&
>
.
Oct.
to
&
shares
shares
•
,
of
price
amendment.
by
filed
11.
Underwriters—Underwriters
ordinated
f
22
being sold by certain
are
.
by
Chicago,
98,232-
Shares
outstanding and
Details—See
for
be
of Oct.
issue
Details—See
by
by Aviation Corp.
ANCHORAGE HOMES,
a
headed
OCT.
Oct.
on
statement
on
for
be filed by amendment.
stock
.
is
group
INC.,
statement
under¬
unexchanged
additional
Underwriters—The
A. G.
The
CO.,
registration
a
Offering—The
y V
Oct. 19 will
of 50.000
on
an
RAYNOLDS
&
filed
8
$3,500,000
20-year
sinking
debentures,
due Oct, 1, 1965/
The Interest rate will
'
Details—See
*
INC.,
STORES,
Sept.
Underwriters—Herrick,
stockholder,
as
59,784 shares will be offered to other
Any shares not subscribed
stockholders.
%
Offering—Stock
share.
expire
Rights
share.
per
Of the total, 85,304 shares will be
Oct. 30.
3%
bonds.
of common
shares
145,088
Sept.
on
Peters,
Offering—Offering price, to public .$5 a
share.
;■£
A-:
Underwriters—F. S. Yantis & Co., Inc.,
($1 par; common stock.
of
£•
be
.-/• / .;■
Inc..
stock,
Details—See
exi
not
are
will
Co.,
GENERAL PLYWOOD CORP.
registered
mon
CONTAINER ENGINEERING CO. on Jun<
MANUFACTURE
CENTRAL
on
for
stock, par $1.
held
Oct.
as
Christensen,
&
Simons, Roberts fie Co.-.--
it $8 per
cipal underwriters.
CORP.
CO.
issue
Details—See
15 filed
Offering—Offering price to public $9.25
share^'Kr^v;-;^ ^
Underwriters — Ames,
Emerich & Co.,
Inc. and Dempsey Sc Co. are named prin¬
stockholders of record Oct.
amendment.
Awarded
Issue
27 registered
Sept.
on
CANDY
CHASE
a
statement
CO.
shares
11,972
tered 50,000 shares
and
us.
($1 par) common shares. \
Details—Seeissue ofAOct.;:4/S
AMERICAN
PACIFIC
the
Si
,
changed pursuant to the exebange offer.
176,025
ING
SATURDAY, OCT. 27
*
WIEBOLDT
of
Issues
TELEVISION
Si
ferred stock,
?
v
such
public
Underwriters—Boettcher
1945.
4,
20/'
Aug.
the
,'/■■.
Writer
i
issue of Jan.
of
to
100.50.
Offering—Company
proposes
to
invito
proposals for services to be rendered U
it In obtaining acceptances of the exchangoffer of new preferred Stock for old pre
ferred and for
the purchase from
it o
both
RADIO
by amendment.
Details—See
or
UNDETERMINED
•
•
plane,
DATES OF OFFERING.
will
be filed
issue
Offering—Price
Btatemen-
11,972 shares of preferred stock, cumu
Uitlve ($100 par)/
The dividend rate wl)
with
$10.
The shares are issued
and are being sold by
par
the
is
Inc.
MAJESTIC
stockholders;
certain
similar,
11.
the
y
KERITE CO. on
when
Packets
on
is headed by
Emanuel & Co., and
Underwriters—The
$26,093,000
:'
Fairchild
a
price to
amendment.
by
registration
a
Details—See
CO
(or
purchase
two
shares
Details—See issue
serial debentures due annually
on June 1 in
1951 through 1960.
The de¬
bentures carry interest rates of 2%ft
to
3ft ft, according to maturity.
V
Details—See issue of Oct. 4.
■■■v.V7-' Underwriting—First Boston Corp.; Harriman Ripley & Co., Inc.; Smith, Barney
fit Co.; Halsey, Stuart & Co., Inc.; Wood,
Gundy & Co., Inc.; Dominion Securities
Corp.; A- E. Ames & Co., Inc.; McLeod,
.Young, Weir, Inc., and Otis & Co., Inc.
•
24
OCT.
Offering—The
be
*
'
filed
5
70,000
exj
ALBERTA, CANADA, on
registration statement for
a
the
for
equipment, spare engines
repayment of a $50,000 loan,
registration statement for
of cumulative
convertible
preferred stock, $50 par.
The dividend
rate will be filed by amendment.
Oct.
ac¬
OF
filed
'f<
INDUSTRIES,
WOOD
GAR
'°l
-r
WEDNESDAY,
company
security dealers to obtain
ceptances to the company's proposed
change offer. >
<•
of
used
may
one
s',7 v
'
,■
i
4.
will form a
of Oct.
.
group
be
and
and
working capital.
Part of the latter
be used to purchase one or possibly
for
filed
28
POWER
&
thereafter,
years
flying
available.
The Fairchild
Packet has a cargo load of 17,500 pounds
and may cost as much as $200,000.
Registration Statement No. 2-5978. Form
S-2.
(10-15-45).
.
■
entitling
by amendment.
Underwriters—Eastman,
heads the group,
filed
'
»
of
.
change to holders of 6% and 7ft preferred
stocks on a share for share., basis plu*
*
a
parts,
LIGHT
&
or
20-year 3 ft ft
debentures due
Oct. 1, 1965.
Details—See issue of Oct. 11.
Offering—The price to the public will be
20|§|§g
SATURDAY, OCT.
r
WISCONSIN
share,
per
Proceeds—Will
00
for
$4,000,000
V,■
Inc.,
the holders to purchase
120,000 shares at $3 per share for a period
beginning 180 days after the effective date
of the registration statement and ending
five
CIGAR
CORP.
registration statement
a
cents
Dec.
on
'
the
share
.
CONSOLIDATED
y
Goodwin,
Si
total of $750,000
to the company.
Company is also selling
120,000 warrants at one cent per warrant
50
TUESDAY, OCT. 23
-v,
flight
commercial
first
underwriting group.
Price—The price to the public is $3 per
share, with an underwriting commission of
Loeb & Co.,
Oct.
V
heads
being purchased
are
its
part of last July,
Underwriters—Bond
by the under¬
writers as well as any other unsubscribed
shares.
The
subscription
price will be
filed by amendment.
^
Underwriters—Group is headed by Kuhn,
shares
•
registration
whose
issues
were
purchase
to
rights
statements
agreed
have
holders
FILINGS
NEW
made
the latter
Flotations
Calendar of New Security
Thursday, October 18, 1945
LIGHT
CENTRAL OHIO
CO.
Electric
>,-*
Aug.
on
25
registration statement for $400,000
sinking fund debentures, due Sept. 1,
a
1950.
/■
-
vr:
NATIONAL
BATTERY
CO.
registered 60,000 shares of
Details—See
issue
of
Offering—Offering price
by amendment.,
A /
Underwriters—Goldman,
on
Sept.
common
Oct.
to
27
stock-
4.
:
be
A
supplied
'
Sachs
and Piper, Jaffray & Hop-wood,
principal underwriters.;'
are
&
Co
named
■: :*
Volume
BELLAS
NATIONAL
liam
M.
Number 4430
162
Becker,
Marks,
voting
HESS,
Samuel
Dickson; * Arthur
E.
trustees
Ira
voting
certificates
trust
of
for
Hess,
-
trust
$1
number
of
par,
Stop
Order
4.
registration statement should be
pended now pending before the SEC.
of
Na¬
i
V:
filed
26
shares
a
Manufacture
national
stores
&
!
CORP. on Sept. '20 registered 40,756 shares
of $2 cumulative preferred stock (no par),
j
Details—See
issue
of
Sept.
registration statement for 30,000
preferred stock, par $100.
a
of
4,/2%
Offering—Price to the public will be filed
by
amendment.
Underwriters—Blyth
head
27.
taxing
ol^Sept.
MANUFACTURING CO.
the • g roup.
'
&
*
•
Co.,
1_
Inc.,
will
public
offering
at
remainder of stock
of
ers
$5.50
the
price
of
$41.25
will be offered
to hold¬
company's
presently
outstanding
convertible preferred stock on
prior
of
basis
shares
two
of
$2
cumulative
preferred for each share of $5.50 preferred.
^Underwriters—Norris & Hirshberg, Inc.,
A.
Evans
Co.,
Inc.,
Clement
&
inan
Roberts towing
and
'< ■'
& Co., Inc., J. H. HilsThe Robinson-Humphrey
11 filed
000
4%%
cates.
The
170,000
shares
stock, par $100.
registered
preferred
*
shares
will
of 291,091 shares of
series and 6%
given the opportunity to
shares for the new pre¬
be
such
exchange
Underwriters
ferred.
in
taken
take
will
shares
not
Lehman
—
Brothers
and
Inc.,
St.
Co.,
Inc.;
Oct.
27
22,000
stock,
$30.50
is
Reinholdt
&
&
Co.; A.
Pierce &
Snider Co.; Ditcman
F, Dowdall & Co.
&
fibre
co.
Sept. .26 registered $3,500,000 15-year
sinking fund debentures due Oct. 1,
on
4'/*%
I960 and 400,220 shares
($1 par)
common
Of Oct.
i6sue
4.
stock
Corp.
And E. H. Rollins & Sons named principal
underwriters.
NORTHERN
STATES
200,000
for
POWER
CO.
on
Sept. 21 filed a registration statement for
$75,000,000 first mortgage bonds, due Oct.
1, 1975.
shares
of
Details—See issue of
per share.
which
filed
8
price
of
preferred
common
the
re¬
preferred.
Aug 16.
to the public
is $5
In addition to the 90,000 shares
to
be
offered
the
to
public,
10,000 shares of the preferred are to be
issued by
the company to the estate of
Eben D.
Norton in exchange for 100,000
shares
of
common
stock
owned
by the
are
estate.
These
100,000
shares
of
common
for
of
purchase
ICST)
at
issue up to 11 a".m.
1100,
231 S.
La Salle
the
Room
Chicago, the successful
specify the interest rate.
bidder
Underwriters—Floyd
D. > Cerf
named principal underwriter.
TEXTRON, INC.
is
Co.
Details—See
stock,
common
no
<*£
Underwriters
Maxwell,
of
subscribe
%
■
of
tional
Power
on
the
&
take
&
the number of shares proportionate
holdings
in
National
(46.56%) and National has agreed to take
the
shares
not
taken by its remaining
Stockholders.
its
to
amendment.
THE
registration statement for 63,784 sharei
at 4%% preferred stock (par $100).
company
is
offering
the
shares of preferred stock in ex¬
change for the 29,182 shares of 7% and
$4,602 shares of 6% preferred stock now
outstanding on
a
share for share basis
With a dividend adjustment in each case
ftnd $5 in cash for each sharfe of 7% pie*,
exchanged,
— The
company
has
re¬
tained Alex. Brown & Sons as dealer-manUnderwriters
to aid it in obtaining
«ger
the exchange
acceptances of
Bids
for
ing preferred.
compensation of $1.55- a
outstand¬
*
filed
a
statement for 990,793 shares
stock
(par $1).
Details—See
issue
Offering—Of
the
of June 7.
shares registered Ben¬
Bank, will
receive 209,970 shares in return for a like
number of shares loaned to the registrant
In connection with the acquisition of 54%
of the outstanding stock of Seatex Oil Co.,
Inc.
In addition,
150,000 of the shares
registered will be issued to stockholders of
Federal Steef Products Corp. in exchange
for all of Federal's stock.
Bennett & Co.,
Inc., is the sole underwriter as to an ad¬
ditional 100,000 shares of common regis¬
tered.
The balance of 530,823 shares of
«tock being registered have heretofore been
Issued to Bennett & Co., Inc., in exchange
&
Co.,
filed
amend¬
by
competitive
Room
at
York,
the
"
11:30
bidder
CO.
serial
27.
and
Offering
price
*
1
•,
Inc., parent of Red
ducted.
Underwriters—To be sold at
competitive
PENNSYLVANIA
Details—See
issue
CO.
POWER
share
dend
for
on
stock.
stock
to holders
shares of
Underwriters—W.
acceptances
Newbold's
H.
of
exchange
offer.
!
UNION
on
due
ELECTRIC
CO.
and
-
40,000
•
purchase
12
noon
60
Broadway,
a
shares
(ESTi
rate
of
on
OSAGE
class
will
and
of
at
the
CO.
for
stock.
Of
being
are
or
clarifying
a
be
applied to the
or¬
profits taxes and the set¬
tlement of both these taxes.
tion
as
Details—See
and
the
are
being
are
Thomas
shares
sold
on
Foun¬
price
Underwriters—The
of
York, N.-Y.*-
to
tax benefit ruling on
limit
the
property taxes so
tax
such
on
re¬
the
On
previous deduction as in
the case of the recovery of uncon¬
stitutional taxes.
insurance
to
life
regarding
make
that
certain
un¬
at
ownership exists
reversionary
interest
death;
should not be treated
ownership;
incidence
as
the basis
of prop¬
erty^ acquired by gift but subject
to estate tax, should be made the
same
as
in the case of property
passing by death and not pre¬
viously made the subject of a gift;
the credit for gift taxes previously
paid on property transferred inter vivos should be determined by ap¬
plying to the gift property the
highest gift tax brackets of the
decedent rather than the average
prevailing in the
year or years of the gift; estate
tax "On. remainders to charity sub¬
ject to power of invasion of prin¬
cipal, etc., should be determined
by the ultimate event; other asgift
tax
rate
16.
the
...
165
June
24
220,000
RED
filed
shares
<1
(Canadian).
1
public is
-'■•'•••Q;,
is
Gil-
Broadway,
v.//:-.U-
LAKE
MINES, LTD.
on
registration statement for
of capital stock, par $J
a
'
-
,
,
Issue
of
Aug.
2.
Offering—The offering price to the pub¬
lic is 60% cents Canadian or 55 cents
Details—See
United States
funds.
Underwriters—Willis
E.
Burnside
& Co.;
New York.
; WILSON & CO., INC.,
Sept. 10 filed
on
registration statement for 250,000 shares
a
of
cumulative
preferred
number
of
issue
stock
and
on
common
shares.
of
13.
Sept.
un¬
:
Underwriters—Smith, Barney & Co. and
Glore, Forgan & Co. named principal un¬
derwriters.
»
Financing Temporarily Postponed—It
announced
Sept.
financing was
28
that
temporarily
the
was
proposed
postponed.
Directj
to
Financing Help of Federal Government.
?
'
the
In
September issue of the Monthly Review on Credit and
Business Conditions, issued by the Federal Reserve Bank of New
York, there is an analysis of corporate financing during the war and
a comparison with the period during World War I.
"During the war," states the Review, "the volume of corporate
financing in the capital market was subject to wide fluctuations.f The
outbreak
of
followed
by
in
war
1939
not3>
was
sharp expansion
in the volume of new corporate
issues;
of
only
1940
to
preparations,
capital financing
about 25% from
defense
by
volume
increased
1939
rertiained
and
the
United
was
followed by a
into
States
issues in 1942 to
that
of
tin-
The entrance of
changed in 1941.
low
in¬
substantial
a
industrial activity stim¬
in
ulated
the
any
despite
crease
the
war
decline in
a
new
level 60%
be¬
the
preceding two
years, as Government financing
.expanded and the sale of corpo¬
rate issues for expansion of peace¬
time activities and refunding pur¬
contracted.; A gradual rise
poses
in
corporate security offerings en¬
sued in 1943 and gathered mo¬
mentum in 1944 and 1945.
;
.
.
"In
the
the
three
years, 1942-44,
railroad and pub¬
volume of
lic utility financing
for improve¬
ments and expansion declined by
about 65% from the volume of the
three
preceding
creased
more
years,
while
Wartime
than 50%.
availability of
materials and labor reduced the
expenditures of railroad and util¬
restrictions
on
the
companies for such purposes
point where they could be
ity
to
a
met in large
rent
on
be clarification
19. There should
of the 'provisions
Details—See
underwriter
Texas,
'
to
specified
'
$12.50 per share.
Co.
13
by the
issued
Gilcrease
issue of Aug.
Offering—The
as
Corporate Financing Lower Than in Last War i
Federal Reserve Bank of N. Y. Ascribes Decline
that of industrial corporations in¬
modifica¬
the need for
to
recovery of real
143,659
sold
shares
♦»
Oil
to
1905,
Aug.
on
,
crease
bids
up
Room
statement
30,191
outstanding
dation.
New
129
not
VIRGINIA
27.
receive
securities
22
OIL
A
113,468
registrant
behalf
will
the
Oct.
registration
of
MIS¬
New York, the interest and
to be specified in the bids.
registered
and
Section
statement by a congressional com¬
mittee to establish certainty that
-*■
,
Invited—Company
VALLEY
OF
to
shares of pre¬
Details—See issue of Sept.
dividend
Ss
21 registered $13,000,000
and collateral trust bonds
1975
ferred stock.
the
Son
Sept.
mortgage
series
be
Bonds
by competitive bidding.
THE
will
principal underwriter to obtain
be sold
SOURI
presently
preferred
$5
bonds
of
price
amendment.
by
offered
be
of
42,000
Offering
named
4.
to
sjiare basis plus cash divi¬
adjustment
outstanding
Oct.
of
Offering—Preferred
filed
>
16. There should be modification
of
>,
28 registered $9,793,000 first mort¬
bonds, series due 1975, and 42,000
4.25%
cumulative preferred stock
(par $100;.
Interest rate on bonds will
be filed by amendment.
first
de¬
less incidence of
-
interest
shares
Co.
benefically
not
Expenses incurred in anti¬
trust, O. P. A. and other like suits
should be permissible deductions.
-
bidding.
filed
be
Virginian
life insurance is not includible
l,
-
Offering
a
should
the
to
GAS
$25,000,000
Detaihn—See issue of "Sept*
—
2033,
to
up
NATURAL
registered
24
receive bids
will
bonds
rate to be "filed.
on
there
of
coveries to the tax actually saved
Sept. 27.
New
debentures.
^
on May 31
depreciation
excess
27.
sold by
of
NORTHERN
Bids
RED BANK OIL CO.
nett
of
Street,
Sept.
for
f
be
be
issue
purchase
THE
effecting exchange for
registration
to
a.m.
(EST) on Oct. 22,
specify the Interest rate.
-
of common
of Sept.
Invited—Company
Rector
on
depreciation
Hotels Cases, i. e>, prevention of
basis adjustments on account of
tion of the
Details—See
gage
4
par.
no
1975.
Sept.
for
of
study
fected in the audit of income dnd
LIGHT
ARIZONA
THE MONTANA TOWER CO. on Sept. 21
j
dividend rate less
14. In connection with the
&
Corp.
bidding.
On
*
ments are included.
registered 840,000
Securities
offetf.
public service co. of oklahoma
Sept.
20 registered
$22,500,000 first
mortgage bonds series A, due July 1, 1975
end 98,500 shares of cumulative preferred
stock, par $10tf
Interest rates to be filed
by amendment.
Details—See issue :of Sept. 27.
Offering—Company proposes to offer to
holders of its 5% preferred stock privilege
of exchanging holdings for new preferred
stock on the share for share basis plus a
cash payment representing the difference
between
the initial offering price of the
new preferred and the redemption price of
the old preferred.
Offering price of bonds
and stock will be filed by amendment.
Issues
Awarded—Award of
bonds was
made Oct. 15 to Halsey Stuart & Co. Inc.
on
bid of 98.7799 for a 2%% coupon.
W, Preferred stock awarded to Glore, For6»:- bid of
102% for a 4%
(f) relating to In¬
conversions to make
certain that anticipatory replace¬
voluntary
ganization of western hemisphere
trade
corporations
and
similar
corporations exempt from excess
profits tax under Section 727 (g).
17.
Integration should be ef¬
stock,
issue
provis¬
18. There should be determina¬
THE
share
4.
to be filed by
price
Sept. 21
on
common
Underwriters—To
2
63,784
stock
Oct,
Union-
Offering—Price
B
Details—See issue of April 26.
on
of Section 112
ment.
POTOMAC EDISON CO/on April 19 filed
i
($1 par)
registered $40,000,000 first mortgage bonds
Underwriters-—None.'
ferred
CO.
of
Details—See
■
common
Offering—The
of
CENTRAL
POWER
shares
due
i
on
,
t ,Underwriters
.
>
of
based
ions relating to the tax effects of
stock options should be made.
13. There should be clarification
of
CO.
named principal underwriter.
basis of
Power
each one share of Na
Light Co. common stock
for
statute
refunds
12. Clarification of the
it
issue
Offering—Offering
Electric Bond & Share Co. has agreed
held.
to
stock
Pennsylvania
new
common
the
provision
subject is not presently
clearly covered in the Tax Adr
justment Act of 1945.
and
stock.
Details-—See
the
the new
to
share
Light
public,
Inc.
Co.,
Sept. 27 registered 400,000 shares
outstanding common
stock of Pennsylvania Power & Light Co.
will
be
entitled to subscribe to
1,818,700
shares of the new common.
National will
in turn offer Its stockholders the right to
all
of
the
to
&
Marshall & Co,
common
Offering—National Power & Light Co. as
holder
price
Blair
—
27.
THE .AMERICAN LOCOMOTIVE
to
of Sept.. 27.
Details—See Issue
be
15.
Sept.
1,818,700 sub¬
entitling
holders
at $10 a share.
purchase such stock
,\s: v*
and
par
warrants
convertible preferred
of
Offering—Offering
$25.
i
scription
issue
24 registered
Sept.
on
200,000 shares of 5%
stock, par $25.
to
pennsylvania power & LIGHT co.
on Sept.
24 registered 1,818,719 shares of
of
for
consideration
to be retired and cancelled.
are
issue of Sept. 27.v
Invited—Company will receive bids
Street,
extension
limitations
condemnation
on
.
should
that this
and
Details—See
Bids
losses
There
certainty
Prescott,
August
on
conversion
Offering—The
Securities
Unien
—
and
served
-
Offering—Offering price to the public to
be supplied hjr amendment.
Underwriters
INC.
of 30-cent cumulative convertible
:
Details—See
for
registration statement for 100,000 shares
a
stock.
*
all
allowable.
11.
be
,
SUN-KRAFT,
vulcanized
that
should
Co.,
underwriters.'
national
defined.
There
10.
the carry-backs in the event that
there
is
official
determination
Gardner;
Wright,
Wm<
Nicolaus
Stifel,
Rauscher,
Sons;
of
~
4.
price
offering
&
W.
Charles
u-.
Dempsey-Tegeler
Edwards
Fernald;
,
are
of
&
capital
gains, inter-, pects
interests
of
reversionary
Graves; George Lange, Assistant
dividends, tax-free in¬ need attention.
1
^
: '■'
Secretary,
Consolidated
Edisoa
terest, etc. at rates greater than
20.
Allow
as
deductions
ex¬
Co. of New York, Inc.; Godfrey N.
otherwise provided.
Nelson; J. W. Oliver, Comptroller6. Amendments should be mad6 penses of preparing individual in¬
come tax returns and prosecuting
Secretary, The Linen Thread Com-in the reorganization provisions.
or
defending tax cases and ob¬ pany, Inc.; Paul L. Peyton, Bteed,
7. The foreign tax credit pro¬
Abbott & Morgan; C. W. Rivoire,
taining advice in tax matters. ; ' ;,
visions should be improved, *
W.
T.
Grant Company;
Martin
8. Congress should adopt legis¬
Members of the Committee on
Saxe, Saxe, Cole and Anderson;
lation
which
would
invalidate Taxation and Public Revenue of
Treasury Decisions 5340 and 5341, the Commerce and Industry As¬ Walter A. Staub, Lybrand, Rosa
Bros. & Montgomery; Thomas N.
which, in effect, prohibit a cor¬ sociation are:'
\ ■
Tarleau, Willkie Owen Otis Farr
poration allocating any if its ex¬
Laurence
Arnold Tanzer, Chair¬
& Gallagher; O. A. Taylor, Vicecess
profits credit to a company
acquired subsequent to March 14, man, Tanzer & Mullaney; George President, S. H. Kress & Com-5
E. Cleary, Root, Clark, Buckner &
pany; Wilmef D. Zirkle, Zirkle,
1041.
9. The terrri "mineral properties" Ballantine; Edwards L. Cleave- Breden.& Company.
Sept.
on
registration statement for
5%%
cumulative
preferred
issue
Suffern
Gerstenberg, Chhifmafi of Board,
Prentice-Hall, Inc.; Laurence
company
should be
BROTHERS, .INC.'
Underwriters—Includes
G.
Co.,
Nordman
shareill^
per
&
given
$30.
Co.;
exchange.
Underwriters
Goldman* Sachs & Co. are named principal
John
Offering—The
J Offering—Holders
Is
public
,"
Cunningham,
-
K.
t
Details—See
4.
prior preferred stock, 5Va%
series
a
par
filed
and
SANGER
filed
the
to
Underwriters—S.
27
of
cumulative
Dividend rate
by amendment.
Details—See issue of Oct,
to be
Sept.
price
average
100.47.
as
Pittsburgh,
on
f
•
19.
Offering—The price to the public of the
different
series
ranges
from 99 to 102.
Louis, Mo.
CO.
certifi¬
equipment trust
Details—See issue of July
writers.
SUPPLY
July
on
registration statement for $500,-
a
serial
Cd.,' Wyatt,
Neal
&
Waggoner,
and
Brooke, Tindall & Cq. are named under¬
NATIONAL
company
Socony-Vactium Oil Com*
Inc.; H. B. I^ermrTct^Loomis,
pany,
(Continued from page 1861)
sus¬
1 Offering—Company will sell 12,000 shares
to
Program ol Tax Revision
ings to determine whether the effectiveness
RHEEM
of Oct.
land,
A
»
...
hear¬
ordfer
Hearings—Stop
of
Inc.
issue
Details—See
equal
an
stock,
common
Bellas
tional
—
Bennett & Co., Inc., Dallas, Texas.
agreement dated Aug. S3,
1945,
filed a
registration statement for 1,988,448 voting
shares
obligations of the registrant.
•
Principal underwriter
Underwriters
R.
George
and
under
for various
INC.—Wil¬
Cutler,
Dawson
THE COMMERCIAL & FINANCIAL CHRONICLE
part from high cur¬
earnings, whereas restrictions
construction
and
equipment
fell
less
heavily
which
concerns
industrial
directly en¬
upon
were
gaged in the war effort. Neverthe¬
the; maj or ipart of the in¬
less,
in
crease
new
capital
raised
by
industrial companies went to meet
working
capital
needs
rather than new plant and equip¬
added
ment.
"In spite of the unprecedented
expansion in industrial capacity
and business activity during the
war,
the
sues
to
and
to
showed
volume of security is¬
expansion
supply working capital
.
finance plant
no
such increase as
curred during the
and
in
no
year
oc¬
first World War,
equaled the last
peacetime peak of about one bil¬
lion dollars reached in 1937.
"The
for
this
seeming
*
contracts, and the temporary
war
of funds accumulated for tax
use
payments*
"An
■
.
of
lars
from
ing
new
securities
to
New
York
merce"),
of
average
about
war-supporting)
facilities.
Offerings of new corporate securi¬
ties for the purpose of adding to
plant and equipment^ however,
amounted to only 2 billion dollars.
The major part of the expansion,
together with enlarged working
capital needs, was evidently fi¬
nanced from other sources, in¬
cluding depreciation allowances.
(and
Government-guaranteed War ptoduction loans, Government prog¬
ress
payments
and
advances
on
1.5
an
billion
a
from 1939 through 1944, and
the proportion for new capital in¬
year
vestment
was
probably
much
greater in the earlier period.. Al¬
though information concerning the
distribution of the
tween
is
issues be¬
new
capital and refunding
tot the World
new
not
available
War I period, in view of the ris¬
ing trend of interest rates during
those years it is probable that a
major part of the new issues rep¬
resented new capital in the strict
sense.
On the other hand,* about
three quarters of the value of new
corporate securities issued from
1939
through 1944 were refunding
issues.
"The
predominance of refund¬
ing issues during the
to
war points
striking anomaly,
interest rates in war¬
an even more
declining
time.
Unprecedentedly
Government
demands
capital market
record
yields
low
on
heavy
the
upon
financed
were
interest
rates
at
and
corporate obligations de¬
clined further.
porate issues
As
were
result
a
cor¬
able to achieve
substantial
savings
in
fixed
Charges by refunding outstanding
new issues bearing
lower coupons, a tendency which
spread into preferred stocks on a
growing scale in recent years. In
many instances, corporations sup¬
plemented the proceeds of the
securities with
sales of
new
securities with their
conservative
nevertheless, invested substantial
amounts of its own funds in war
Com¬
with
compared
and
July 1, 1940, and the end
war.
Private enterprise,
of
"Journal
as
ments)
the
year
through 1918 (accord¬
figures compiled by the
large part of the war industrial
facilities built (or building) be¬
of
each
1914
the
tween
,
different policy
pursued in financing indus¬
trial
expansion
during
World
War I when the bulk of the capi¬
tal expenditures were made with
private funds obtained in large
part from the capital market.
Thus, in order to satisfy the re¬
quirements of a far smaller pro¬
gram, domestic corporations float¬
ed an average of 1.6 billion dol¬
cash
anomaly is the direct financing by
Federal
Government of a
,
entirely
was
own
reason
\
(which were
augmented by increased earnings
dividend
pay¬
to pay off outstanding is¬
Redemptions of security is¬
sues.
sues
resources
in
chases of
resulted
about
of
excess
together with
new
open
offerings,
market
pur¬
outstanding obligations,
in
a
2 billion
corporate
net
reduction
dollars,
long
term
or
of
5%, in
debt
be¬
tween the end of 1939 and 1944."
With
ST.
kenny
Slayton and Company
LOUIS, MO.
and
Jesse
With Slayton and
—
M.
F.
KU-
H.
Myer
are
Company, Inc.,
Ill North Fourth Street.
>
THE COMMERCIAL &
Thursday, October 18, 1945
FINANCIAL CHRONICLE
New England Public Service
-
II
Trading Markets in
Foreign Securities
1-971
NY
Amalgamated Sugar V
&r.0- me., i
fjuil marks
;
'
V
*
FOREIGN SECURITIES
^
Ironrite Ironer
Lear Inc.
Bendix Home
Majestic Radio & Television
j".,
.
-;.
Industria Elechrca
U.S. Finishing
Bendix Helicopter
Appliances
Vf-;::
Clyde Porcelain Steel
Tfelecoin Corporation
Du Mont Laboratories
Utah Idaho Sugar
Globe Aircraft
Wilcox &
/ ■;;
; "
;
;
Kaiser-rrazer
ESTABLISHED
Members N.
Telephone
50 Broad Street
New York 4. N.Y.
'
• •
40
AFFILIATE: CARL MARKS
TelelTB#
& CO. Inc. CHICAGO
r
v
,
i
t•
1919
Security Dealers Ass'n
Exchange PL, N. Y. 5
HAnover
2-OOSO
Y.
»
.
_
Majestic Radio
v-(
Gay
SPECIALISTS
Appliances *
Da Mont Laboratories
;'
Baltimore Porcelain Steel
markets
.1
Bendiz Home
Int'I Resist. 6% Pfd. & Com,
N.
T.
HA. 2-87S0
1-1J97
-
-
Kobbe, Gearhart & Company
INCORPORATCO
Members
Low Priced Unlisted
REctoe
2-3600
& Co.J
Luscombe Airplane
*
telephone
•
5
?Haile Mines
bell teletype
X-576
new yobk
-
Oklahoma
Fred L Ley
Commonwealth Gas
Cuba Co.
A
Remington Arms
Happiness Candy
for
Shawnee Pottery
1
U. S. Air Conditioning
that
and
distributorsv—
companies*
his
dealers
about
are
to
invest
—..
B
hanover 2-4341
the " ground
BS 328
We
and would
be redesigned copies of 1942
not
specialize in all-
Insurance and Bank Stocks
up
"
Industrial
T
V
teletype-1-n. y. 1-2866
Teletype
;
biles would be completely new
from
n. y. 4
New York
Hanorer 2-7913
Frazer, and Kaiser automo-
new
-
A
9, MASS.
Boston
Hubbard 6442
'
,M
Mr. Frazer emphasized that the
approximately, $100,000,000 in es-
Morris Stein & Co.
50 broad st.,
BOSTON
Joseph W. Frazer, automotive manufacturer, speaking before the
Tuesday night, disclosed
Financial Writers Association of New York
Vacuum Concrete
'
RALPH F. CARR & CO.
Cars to Come Off Willow Run Before Year End.
South Shore Oil
'A*
Harrington & Richardson
Jardine Mining
Kellett Aircraft
$100,000,000
Merchandising Frazer and Kaiser Automobiles* First
Vast Dealer Organization Ready to Invest
Select Theatres
Globe Oil & Gas
Interstate Mining
Frazer Discloses Latest Plans
Pressurelube
Differential Wheel;
Evans Wallower Zinc
:
YORK
NEW
Enterprise 6015
'
Association
Dealers
Security
STREET,
philadelphia
telephone
Securities
York
NASSAU
AS
Market: Place for
New
v
.
Issues;
y'r
/
Investment Trust. Issues
:*
>
Public Utility Stocks and Bonds
Kansas
new england
'
,
*
•
sale of these
INCORPORATED 1923
■
-
1 24 FEDERAL STREET, BOSTON 10, MASS.
Henry J, Kaiser
Joseph W., Frazer
equipment
and
tablishments
Bell System Teletype BS-123
Telephone Hubbard 3790
to
to
index
Pase
•::•": :>,• ";r.f,
Bank
Insurance
and
Broker-Dealer
Peisonnel
1839
Items.
Bookshelf........ .1832
Man's
Business
1847
Stocks
Calendar of New Security
Flotations-.1862
1853
Canadian Securities.
Dealer-Broker
mendations
and
Notes..
,
.
.1855
Mutual Funds,.,................... .1840
Our
beP°rter
on Government®;
]
Railroad Securities
Real;Estate -Securities.........
Securities Salesman's Corner
Tomonow's
Says
.:
Markets—Walter
Whyte
..,.:
....1847
Reporter's Report
^ Michigan and Connecticut
curities
Sections
Missouri
on
on
Se<
1828
page
1829.
Quarterly dividend paid October 15,1945
V
DIVIDENDS:
,
—
$.50
\
(to date)
$2.25
—
1944 $2.75
—
-
24 FEDERAL STREET, BOSTON
:
8715
1
'
1922U,f:"V* 2!?;4.
Established In
v:
Tel. HANcock
10
.Tele. BOston 23
securities is subject
from
Proceeds
the
sale
of the
of
3,000
dealers. Mr. Frazer explained that
promissory notes will be used to
reimburse the company, in part,
for
expenditures in connection
with the redemption on July 1,
every
dealer has
sizable amount
a
for the improve¬
ment? of his showroom and serv¬
ARREARS
par
production of
a new tractor,
Rotoller
the 5% $109
established in 1862i V*^
of
..
^64.43
1944 Earn. After Taxes:..
21.88
1944 Earn. Bef. Taxes
..
Earnings since 1939 range from
£12.82 to £57.33 a share after
taxes.
'
1
s
*
*
-
t
Write
-\V
,
,
V
»
V
50
Recent Price:
new
the
on
preferred- hock of i
New England Company
$13,878,000 'principal
amount of refunding and improve¬
ice facilities. ; ^
ment mortgage 5% bonds; to re¬
Frazer cars will begin to come
off. .the; Willow Run production tire $26,472,000 principal amount
lines
late
this winter,
and the of first mortgage 3% bonds due
Kaiser* automobile
will
follow April 1, 1950; to redeem $6,983,000
several weeks later, Mr. Frazer principal amount of first mort¬
predicted. Full production on both gage 5Vz % bonds, series A, of
cars will be attained in mid-sum¬
Texarkana and Fort Smith Rail"
mer,
The
entire
Willow Run
way Co. due Aug, 1, 1950; to re¬
plant, he said, will be utilized for
deem $1,114,000 principal amount
the
the
Frazer
1945,
or
of secured serial 3% notes; and to
redeem
by Graham-Paige, and the Kaiser
to
by Kaiser-Frazer.
amount of
principal
$7,700,000
2Vz% promissory notes.
t
1943 $4.50
;
New Analysis on request
St.* Boston ^9, ;Ma*s.
Tel. CAP; 0425
iLN.
Approximate selling price—30^^
♦
•'*
Specialists in
New England Unlisted Securities .U .V
"
148 State
1945
Go.t
Frederick C. Adams &
.
approval of the Interstate
series A bonds and $6,000,000
car,
PANAMA COCA-COLA
the
automobiles. The organization will
of money ready
Public Utility Securities
Investment
and
News
Municipal
Recom¬
Literature.......1828
Our
Market
Commerce Commission.
merchandise the Kaiser and Frazer
embrace 200 distributors and
:;■ •
banking group headed jointly
New Eng.
a
being reoffered publicly at 100%
and accrued interest* Issuance and
WALTER J. CONNOLLY & CO.
:
Securities with
Inc., were awarded, a new,: .issue
of $40,000,000 first mortgage 30year 4% bonds, series A,, of the
Kansas City Southern Railway Co.
on a bid of 98% %. The bonds are
England Local Securities
,1
TEXTILE SECURITIES
by Kuhn, Loeb & Co., Ladenburg,
Thalmann 8c Co.r and Blyth & Co.,
?TiEfMT|;iyE|Sl
New
A
City Southern
:
:
Telephcne
Teletype BS 259
HAnover
2-7914
a
Specializing in Unlisted Securities
•'
v
Y.
With Stewart, Scanlon Co.
HoixRsseSTrsster
Established 1914
,
/
BANK
,
'. :C
;
SAN
INSURANCE
•.
74 Trinity Place, New York 6, N. Y.
Telephone! BOwIing Green 9-7400
—
PUBLIC UTILITY
—
INDUSTRIAL
—
REAL ESTATE
FRANCISCO,
Ardie
Robert
come
connected
Scanlon
&
CALIF.-—
Wolters
Co.,
with
220
has
be¬
Stewart,
Montgomery
Teletype: NT 1-375
LUMBER & TIMBER
BONDS, PREFERRED AND COMMON STOCKS
Columbus Auto
Eastern
Parts
States, Pfd.
Pressurelube, Inc.
U. S.
An Attractive Postwar
BOUGHT
Radiator, Pfd.
H. C. Godman Convt. Pfds
ft
DIVIDEND RECORD
1937-
1936-
.50 Per Share
1.50
M
1.00
"
*
;
v
.
—
QUOTED
208 So. La Salle St., Chicago 4
-
Amos Treat
New York 5
Telephone COrtlandt 7-0744
Bell Teletype NY 1-886
&
Co.
TELEPRINTER
"
.
40 Wall
St., New York 5, N. Y
BO
9-4613
."wux"
•
of Securities
:
RANdolph 3736 '
Upon Request
WESTERN UNION
SOLD
REMER, MITCHELL & REITZEL, INC.
"
;
Circular
Broadway
—
Common Stock
-
1938-1944—$
120
wanted
Locomotive Firebox Co.
:
BELL SYSTEM TELETTPE
;
\
:'v
'
CG-989
'■
V
Hill, Thompson & Co., inc.
Markets and
Situations
;
120 Broadway, New York 5
Tel. REctor 2-2020
,
for Dealers
...
Tele. NY 1-2680
,
@FedFRASER