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The.
tilluntrciat
Volume 135

1/

financial

lirtitude

New York, Saturday, October 22 1932.

Number 3513

The Financial Situation

ME has been another sale of Treasury bills 110,000. The average price in this instance was
\
by the United States Government the present 99.965, making the rate on a bank discount basis no
week, and the experience of all recent previous more than 0.14% per annum. Thus we have three
periods has been repeated in that the bills have been successive bill issues, each establishing a new low
disposed of at a merely nominal cost, the bids ruling record, and all of them at rates so diminutive that
so high that the income return to the purchasers of the proceeding becomes absolutely farcical. On
the bills is close to nothing. It had been supposed Monday next, according to announcement made on
that a minimum figure had been reached in the cost Wednesday, tenders are to be received for another
of this class of borrowing to the Government in the $80,000,000 of these Treasury bills. These will also
abnormally low rates previously reached, but with be 91-day bills, and the proceeds are meant to retire
each succeeding offering of these bills the prices $83,317,000 of maturing bills, no portion of the issue,
realized by the United States has kept rising still therefore, representing an addition to the public
higher, thereby making the rate of return to the debt.
purchasers of the bills and the cost to the GovernAs things are now going, the United States should
ment correspondingly smaller. We made reference soon be able to borrow at no cost whatever. In fact,
to the anomalous state of the financial markets at the prices now 'being realized for Treasury bills
which permits, and, in fact,
the Government may be
forces a situation of that
said to be doing virtually
Our A. B. A. Number.
kind in our remarks in this
this, at the present time,
We send to our subscribers to-day along
article two weeks ago, and
the cost having dropped to
with the "Chronicle" itself our "American
the further sales of bills
such trifling figures that,
Bankers' Convention" Section.
which have occurred since
as already stated, it is
This is an exceedingly valuable publicathen give additional emphareally inconsequential.
tion, inasmuch as it gives the papers and
sis to this feature and the
Let the reader well unaddresses read before the Annual Convencomments made thereon.
derstand what a rate of distion at Los Angeles, Calif., October 3 to 6,
In our remarks two weeks
inclusive, of the American Bankers' Assocount of 0.14% per alinum
ago we pointed out that on
ciation and its Divisions and Sections, at
actually means. The 0.14%,
which were discussed banking, financial,
Sept. 26 the Treasury had
it will be observed, is less
industrial and economic questions touchsold $100,665,000 of bills at
. than one-seventh of 1% per
ing intimately the interests and the welan average price of 99.941
year. Now translate this
fare of the entire community.
(the bills are sold on a dis0.14% in its application to
count basis and hence rethe amount of bills sold—
ceive no interest at maturity), being an average rate that is, convert the whole operation into
actual dolon a bank discount basis of only about 0.23% per lars and cents. The tenders accepted aggregated
annum. This was the lowest rate of interest ever en- $75,110,000, and that is the amount
that will have
joyed by the Government up to that time. We also to be repaid by the Government
to the purchasers
noted that on Oct. 7 the Treasury disposed of $75,- of the bills at maturity on
Jan. 18 next, the total
954,000 more of these bills, these running for 92days, given being the face amount
of the bills, no interest
and realized a price of 99.951, making the average accruing thereon. The price realized
was, as stated,
rate on a discount basis only about0.19% per annum. 99.965. Applying this to the
$75,110,000 of bills
This established a still lower record, and made a cor- issued the proceeds of the sale are
found to have been
respondingly closer approach to absolute nil. The $75,083,711.50. The
difference between this figure
proceeds of the Sept. 26 issue at 0.23% went to retire and the face amount of
the bills is only $26,289, and
substantially the same amount of maturing bills, but accordingly, the
Treasury gets a loan of $75,110,000
of the proceeds of the $75,954,000 sale of bills on for three months at the trivial cost of $26,289.
Oct. 7 at 0.19% per annum only $50,278,000 went to
We need hardly say that such a state of things is
take up maturing bills, the remainder representing full of menace. It not only puts a premium upon
an addition to the public debt in that amount.
Government borrowing, since it can be done with
Now comes this week's sale, establishing a still such facility and at such insignificant cost, thereby
lower record. This occurred on Monday and con- encouraging debt-incurring and reckless expendisisted of $75,000,000 of 91-day bills, issued to meet ture, but reflects a state of the money market which
maturing bills of substantially the same amount, and carries serious independent menace in a number of
the Treasury accepted tenders aggregating $75,- different ways. Let no one suppose that the price




2696

Financial Chronicle

paid for these Treasury bills, representing short-term
bori;qwing, is indicative of the high state of credit
of the United States. It is nothing of the kind. It
reflects a wholly abnormal condition of the money
market, artificially created, one manifestation of
which is that there is a vast accumulation of idle
funds at the financial centers for which no employment can be found. Accordingly,they find their way
into _Government obligations as the readiest means
at hand. It is common to hear it said that the flow
of funds into short-term Government obligations
grows out of a desire on the part of banks and financial institutions to keep themselves in a liquid condition, and there has hitherto been a basis of truth
that when
in the statement, and yet it would seem
or next to nothing,
the rate gets down to nothing,
over
the banks and financial institutions who take
retain the funds in
these bills might just as well
their own vaults. Obviously there is no sense or
reason in going through the process of making investments that are barren of any income return.
The truth is, the artificial state of the money market is due to artificial causes, and the remedy must
be found (and certainly a remedy is called for when
a point is reached where Government borrowing can
be conducted free of cost) in the removal of these
in two
causes,, These causes are found,in the main,
the large-scale holdings of
circumstances, namely
United States Government obligations by the Fedthe
eral Reserve banks and the easy money policy of
System, to which the Reserve auFederal Reserve
thorities have so persistently adhered through all the
years of the depression, on the theory that it would
lead to a revival of trade and business, whereas the
precise opposite has been the result, and business
depression has widened and grown in intensity.
There would be no such congestion of funds if the
Federal Reserve, by its fatuous course, had not cooperated to bring it about. The Federal Reserve
banks have recently discontinued adding to their
acquisitions of United States Government securities,
which acquisitions at one time ran at the rate of
about $100,000,000 a week, but their holdings of such
Government securities stand at the huge figure (according to this week's return) of $1,850,999,000. At
the same time the volume of Reserve credit outstanding, as measured by the total of the bill and security
holdings, stands at $2,203,558,000, while there are
likewise $2,717,430,000 of Federal Reserve notes in
actual circulation. All these things betoken a high
state of inflation.
In the last analysis, therefore,it is Federal Reserve
inflation that is responsible for the artificial and
abnormal state of the money market. Is this a
healthy or a sound state? What has it led to? We
have already seen that in the case of Treasury bills
a point has been reached where Government borrowing costs practically nothing. And in the case of
other forms of borrowing, what do we find? The
call loan rate on the Stock Exchange, after having
remained pegged at 2% per annum for months, was
last week dropped to 1% per annum, and outside the
Stock Exchange money is obtainable on call at only
34 qf 1% per annum. Time loans on security col4
lateral are quoted at 3 of 1% for all dates from 30
days to four months. The rate for prime commercial
4%.
paper running from three to four months is 13
for acceptances of the Federal ReThe buying rate
serve Bank of New York on maturities up to 90 days
is f%, and the open market rate for acceptances




Oct. 22

1932

eligible for purchase or rediscount by Federal Reserve banks is only % of 1% per annum bid and Y2 of
1% asked.
The banking business cannot be successfully carried on at such abnormally low rates of return; in
fact, it will mean starvation if long continued. The
Government is now engaged in active efforts through
the Reconstruction Finance Corporation to prevent
further bank failures, but here is a state of things
which,if continued, must eventuate in the extinction
of many banking institutions, if not in their insolvency. Why should it any longer be tolerated when
the cause is artificial and easy of removal. In its
present inflationary course, the Federal Reserve
System is being perverted from its right use. It
must never be forgotten that Reserve credit is super.
credit imposed on the credit of the ordinary banks,
and hence is to be sparingly used and only for seasonal purposes and in the case of emergency. During recent years the country has passed through a
number of crises or emergencies where the liberal
use of super-credit was warranted and even demanded. There was more or less hoarding at times,
and there were large withdrawals of gold for export.
But the situation is now changed. Hoarding is no
longer being practiced to any great extent, and gold
is now flowing towards this country in large volume.
At the same time, business is now so depressed that
it has little need of banking credit or banking accommodation while speculation is absolutely dormant,
both in the security market and in the commercial
market. We do not hesitate to say that at such a
time the proper functioning of the Federal Reserve
System would require that there should not be a
single dollar of Reserve credit outstanding, nor a
single Reserve note, and all efforts ought to be
directed towards that end in correction of a monetary
/
situation which is full of peril unless a remedy is
applied.
Yet the country seems still to be wedded to the
notion that what is needed to promote or bring about
business revival is unlimited banking credit, and
that there can never be too much of it, whereas the
exact opposite is the case. In this frame of mind,
whenever a further plunge downward in money rates
to the zero point occurs, instead of there being a
demand in current comment for the removal or reduction of excess banking credit, about all that one
hears is the question how soon the Federal Reserve
banks may be expected to make a further cut in
their rates in order to be in line with money conditions—which is tantamount to suggesting that
there shall be further inflation when there is already
too much inflation. The Financial Editor of the
New York "Evening Post," Ralph West Robey,in his
article on Wednesday gave expression to a thought
which might well find wider application. He expressed himself to the following effect:
"It is regrettable that we do not have a group of
bankers who will talk to our Federal Treasury in as
frank terms as the New York bankers talked to New
York City a few days ago. Superficially, of course,
it appears that there is little occasion for such an
outspoken admonition to the United States Government, but any one who will take the trouble to look
under the surface cannot help but be convinced that
economies in our Federal Treasury are about as
necessary as in the case of New York City.
"We have gone about as long as possible under
the guidance of politicians who maintain that Government expenditures cannot be reduced. Of course,

Volume 135

Financial Chronicle

they can be reduced. All we need is a real will to put
through economies.
"New York City politicians maintained that there
could be no substantial economies just the same as
other city, State and Federal officials have refused
to admit that there could be any real reduction in
expenses. New York City changed its mind when
it ran up against a stone wall and no longer was able
to get hinds. Unless some real public pressure is
brought at other places the same situation will develop and ultimately other public bororwers will find
that they are against the same kind of a stone wall.
"In the case of the Federal Government the Treasury has just borrowed at the astounding rate of 0.14
of 1%. As mentioned above this indicates super'
ficially that never in the history of the world has
there been a central government with a better credit
standing. It should be remembered, however, that
never in, the history of the world has there been a
central government that had a Federal Reserve System willing to go to the eztent that ours has in making a market for its securities."
There is a world of truth in what is said in the
afbove excerpt, only we would go a step further and
say that in order to lay the foundation for a lasting
period of business revival it is necessary that our
money market shall be restored to a normal condition where excess credit will no longer be the
menace which it surely is now, where inflationary
tendencies will be held in check; where the banks
will be permitted to earn a living return which they
cannot do now, and where Government borrowing
will be held in rigid restraint because of increasing
cost instead of being invited and encouraged by rendering the process easy and virtually free of cost.

2697

The trade advantages are mainly in trade with
the silver-using countries of the Far East. These
advantages were pointed out by us in our annual
"Cotton Crop Report," published in our issue of
Sept. 24. The review of the cotton trade in Europe
contained in that annual report was written by a
well-informed British specialist, and he pointed
out that while spinners and manufacturers in the
English cotton industry during the first nine months
of 1931 suffered a very depressing period, a dramatic
change took place in September when the British
Government surprised the world by suspending the
gold standard. As a result, it is pointed out,
Lancashire's yarn and cloth, owing to the fall in the
value of the pound, declined in price from 15 to 20%
as compared with yarn and cloth produced in co`untries which remained on the gold standard, and these
countries included, of course, Japan, Lancashire's
biggest competitor in the Far East and Eastern markets. Prior to the suspension of the gold standard,
production in Lancashire was about 50% of capacity,
but by the middle of October it had advanced to 80%.
There was a much bigger demand for cloth,and prices
became more remunerative.
For the first time in a number of years individual
spinners and manufacturers were able to employ all
their machinery. In some sections, particularly in
the Yorkshire doubling industry, it was found impossible to complete the orders on hand, with the
suit that the mills began working in excess of the
48 hours per week. Later, however, Lancashire's advantage in the export market was impaired to some
extent by other governments following Great Britain's example and abandoning the gold standard.. In the middle of December 1931 the Japanese
Government followed in the footsteps of Great
Britain, and within a very short time, our chrrespondent says, nearly two-thirds of the world's export trade in cotton piece goods was being done by
countries which had abandoned the gold standard.
The value of the yen depreciated, and this enabled
Japanese manufacturers to produce cloth and ship
it to India and other markets at a lower price 'than
Lancashire. Great Britain, therefore, lost some of
the advantage which she had gained in India and
China, where Japan is her chief competitor. The
effect was less severe on the Continent, in West
Africa and in South America, though in the Middle
and Near East Lancashire also lost some ground to
Japan.
Speaking generally, however, the depreciation in
the pound sterling which followed the suspension of
gold payments in September of last year has been
a distinct advantage to Great Britain, and continues
to be an advantage with Far Eastern countries, with
which countries so much trade is done by Great
Britain. It was explained by Neville Chamberlain
after the recent British World Conference at Ottawa
that Great Britain had no intention of an early
return to the gold standard, and world conditions
were given as the reason for the reluctance, but trade
conditions with the Far East furnish still another
consideration, and it may be that this has been an
influence in letting the level of support for the pound
sterling drop to a lower basis this week than before.

NE of the events of this week has been another
bad break in the rate for sterling exchange.
Tuesday the rate dropped over 4c. to the pound
On
sterling, and Wednesday there was a further downward dip of nearly 3c., though followed by a rally in
which part of the loss on that day was recovered.
In other words, taking cable transfers as a basis, the
rate dropped from a high of $3.44 11/16 on Monday
/
to $3-3734 on Wednesday, with a recovery to $3.39%
before the close of that day, since then the rate has
remained comparatively stable, with the range on
Thursday $3.391 8@$3.40, and on Friday $3.39 11/16
/
15/16. A variety of explanations has been
offered for this further depreciation in the pound
sterling. It was hinted that Great Britain had definitely decided to make the December payment on its
indebtedness to the United States and was making
preliminary preparations to that end by accumulating the necessary exchange or gold for the purpose,
but both statements met with official denial. On
the other hand,it was perfectly plain that the British
authorities had for the time being withdrawn support, though the reason for such withdrawal, after
it had been continued so long, was not forthcoming.
There have also been intimations that the L150,000,000 Exchange Equalization Fund,especially created for the purpose, had been exhausted, but this
found little credence, and the fact that support again
came at the lower levels to which the rate had been
allowed to fall showed that there was no basis for
the rumor.
A fact which is quite generally overlooked is that
there are certain trade advantages to Great Britain
EW YORK CITY finances still remain in a Very
in the low rate of exchange, and that, accordingly,
.
tangled state. The Tammany bloc in the
a low rate is not viewed altogether with disfavor,
though obviously there would be a desire not to let Board of Estimate has this week yielded very gri?dgingly to the requirement that the city budget must
any decline in the rate proceed too far.

O




N

2698

Financial Chronicle

be very substantially reduced in order to restore the
credit of the city to the point where a market can
be found for the obligations the city will be obliged
to float in order to take care of current maturities
and to provide for current needs in the shape of payrolls, interest charges, and the like. Charles E.
Mitchell, Chairman of the National City Bank,speaking for himself and his institution, and also on behalf
of Winthrop W. Aldrich, Vice-Chairman of the Governing Board and President of the Chase National
Bank, which is acting in conjunction with the National City Bank, presented the situation with great
force and clearness when he pointed out that in
insisting on a drastic cut in the budget the banks
were simply acting out of the dictates of necessity
and were far from being governed •by a desire to
impose any particular policy upon the city administration. Before the banks could undertake to purchase any considerable amount of the city's new
obligations they must be certain that they can dispose of these obligations to the investing public, and
the credit of the city has been so seriously undermined by reason of the growth in the size of the
budget, and the absence of any positive indications
that the appropriations are to be materially reduced,
notwithstanding the promise made by the Walker
Administration at the beginning of 1932, as a result
of which promise the bankers marketed a $100,000,000 issue of three to five-year notes of the city
(which, by the way, were floated by the banks and
banking institutions without a dollar of profit to
themselves, though Mr. Mitchell in his address before the Board of Estimate did not make any mention of this fact) that without positive assurance
that a drastic cut in the appropriations is really to be
made it would be absolutely impossible for the
bankers to sell even a moderate amount of any
new obligations. The expression he used was that
the credit of the City was actually "crumbling".
This is a strong word and Mr. Mitchell used it
simply because no other word could so aptly describe
the disturbing situation existing.
In response the Board of Estimate evolved a
budget which is nominally $72,959,696 less than
that of the present year, having been reduced from
the record figure of $631,366,297 to $558,406,601,
but it is only necessary to observe that $49,750,000
of this represents merely a change in the program
of financing the subways, from the present fouryear bond plan to the 50-year bond method, to make
it plain that the greater part of the cut consists
merely of a bookkeeping readjustment and that there
is no genuine saving or actual reduction in odtlay.
In these circumstances it becomes a positive duty
on the part of the citizens to see to it that the
Tammany candidate for Mayor in the person of
John P. O'Brien be defeated, notwithstanding his
high character, and be replaced by the opposition
candidate, Lewis H. Pounds, who can be depended
upon to see to it that real economy is practiced in
the administration of city affairs. ConsicreTing
the huge majority rolled up by Mayor Walker three
years ago and considering also that there are 140,000 office holders, who, along with their relatives
and friends are certain to rally to the support of
Tammany, the task seems almost impossible of
accomplishment and certainly it is an herculean
undertaking but in view of the Seabury revelations
it cannot be deemed hopeless if pains are taken to




Oct. 22 1932

arouse public sentiment to do its duty in the
premises.
As it happens, too, the huge registration of voters
which has just taken place would seem to indicate
that public sentiment has really become aroused,and
very intensly aroused. This years registration is
almost 50% larger than that of last year, which was
an off year. No less than 2,334,131 persons qualified
to vote on last week's registration days as against
only 1,542,996 in 1931 giving an increase of almost
800,000. Of course registration is always largest
in Presidential years, but even as compared with
1928, the previous Presidential election, there is an
increase of over 300,000, the number this year at
2,334,131 comparing with 2,029,618 in 1928. Accordingly there ought to be at least a fair chance of
beating the Tammany contingent two weeks hence.
Certainly no effort to that end ought to be relaxed
since it will mean so much for the city, and at the
same time benefit will accrue to the entire nation
through the knowledge that the finances of the
metropolis of the Western Continent are once more
to be placed on a sound and efficient basis.
NE source of anxiety has been removed the
present week by the announcement of Governor Roosevelt relative to his attitude concerning
the soldier bonus proposal. Mr. Roosevelt made
his attitude known in the address which he delivered
at Pittsburgh on Wednesday of the present week
and did this by simply recalling a statement made
by him last April, when he said: "I do not see how,
as a matter of practical sense, a government running
behind $2,000,000,000 annually can consider the anticipation of bonus payment until it has a balanced
budget, not only on paper, but with a surplus of cash
in the Treasury." This is plain and unmistakable,
and Mr. Roosevelt takes pains to say that his views
have not changed since then. We say this removes
a source of anxiety, since in the public mind greater
concern has been felt with reference to this soldier
bonus demand than with reference to any other
single thing, and Mr. Roosevelt's statement puts him
in opposition to the payment the same as President
Hoover, removing all ground for anxiety on that
point, no matter which candidate may be elected, and
affording assurance that the public mind may rest
in peace in that respect.

O

MONG the changes in corporate dividend declarations the present week may be mentioned
action of the Atlantic Coast Line RR.in announcthe
ing that no interest can be paid Nov. 1 1932 on the
$135,100 4% certificates of indebtedness outstanding, as "no income, after payment of mortgage
bond interest and expenses, has been earned this
year." Inasmuch as this interest takes precedence
over any dividend on stock, no dividend is to be paid
Nov. 10 on the outstanding 1,967 shares of 5% noncumul. pref. stock, par $100. Last May the regular
/
semi-annual payment of 21 2% was made on these
shares. The Shawinigan Water & Power Co. declared a dividend of only 12c. a share on the common
stock for the quarter ended Sept. 30, payable Nov.15,
and a dividend of 13c. a share for the quarter ended
Dec. 31, payable Feb. 15 next. The distribution
was 25c. a share on Aug. 15 and on May 16 last, and
this compares with still larger payments at previous
quarterly dates, namely, 50c. a share on .Tan. 11 1932
and Oct. 10 1931, and 62%c. a share each quarter

A

Volume 135

Financial Chronicle

from January 1930 to and including July 1931. The
Minneapolis-Honeywell Regulator Co. made the
quarterly dividend on common stock only 25c. a share
payable Nov. 15 as against 50c. a share on Aug. 15,
and 75c. a share at previous quarterly dates. The
Keystone Telephone Co. of Philadelphia on Oct. 21
voted to defer the quarterly dividend of 75c. a share
on the $3 cumul. preference stock and the quarterly
dividend of $1 a share on the $4 cumul. preference
stock.
HE changes in the Federal Reserve statements
this week are along previous lines and call for
no extensive comment. The amount of Federal Reserve notes in circulation has been further reduced
from $2,737,843,000 Oct. 12 to $2,717,430,000 Oct. 19,
a contraction which is to be hailed with satisfaction,
seeing that National bank circulation continues to
increase under the recent change in the law. The
volume of Reserve credit outstanding, as measured
by the bill and security holdings, has also been further reduced,this time from $2,217,263,000 to $2,203,558,000. In the different items going to make up
this total the only change is a further decrease in
the discount holdings of the 12 Reserve institutions
from $327,667,000 to $313,539,000, reflecting diminished borrowing on the part of the member banks.
The acceptance holdings remained virtually unchanged, standing at $33,583,000 the present week
and $33,278,000 last week, and the total of United
States Government securities held also remains virtually unchanged, with the amount the present week
$1,850,999,000 as against $1,850,896,000 last week,
though some important changes have occurred in the
component parts of these holdings of Government
securities, the amount of Treasury notes held having
been reduced during the week from $390,578,000 to
$352,086,000, while the amount of certificates and
bills held has been increased from $1,039,550,000 to
$1,078,050,000. Gold holdings have further risen
from $2,931,958,000 to $2,955,605,000. In the ratio,
however, of total reserves to deposit and Federal Reserve note liabilities combined there has been an
increase only from 61.3% to 61.7%, notwithstanding
the increase in the gold holdings and the concurrent
econtraction in the volume of Reserve notes outstanding. The explanation is found in the fact that there
has been a big increase in the deposit liabilities,
mainly by reason of the fact the Reserve deposits of
the member banks increased during the week from
$2,245,791,000 to $2,325,546,000.
The amount of United States securities held as
-part collateral for Reserve notes has further diminished during the week from $495,000,000 to $464,-500,000. The amount of acceptances held by the
Reserve institutions for account of foreign central
banks has fallen during the week from $45,227,000
-to $41,766,000. On the other hand, foreign bank
deposits are slightly larger, having risen from
$8,177,000 to $10,280,000; a year ago, on Oct.21 1931,
these foreign bank deposits aggregated $160,910,000.

T

OME recovery appears in the figures of the foreign
trade of the United States for the month of
September. Merchandise exports for that month
were valued at $132,000,000 and imports at $98,000,000. As to exports, the above figures were the
largest since May, and imports the largest since
June. The greater part of the increase in the value
of exports was in the case of raw cotton, shipments

S




2699

abroad of that important product exceeding each
month since March. The foreign trade, however,
continues very greatly reduced as compared with
last year—in fact, both exports and imports are
very much lower in amount than for many years
back, excepting for the preceding two or three
months. In September 1931 merchandise exports
were valued at $180,228,000 and imports at $170,384,000. The decline in September exports compared
with a year ago is $48,228,000, or 26.8%, and in imports $72,384,000, or 42.5%. For the nine months
of the current year, exports have amounted to
$1,188,894,00 against $1,841,775,000 last year, a
reduction of $652,881,000, or 36.0%, and imports
$1,015,301,000 compared with $1,618,674,000 for the
nine months of 1931, this year's figures showing a
loss of $603,373,000, or 37.3%.
On the percentage basis, exports for September
have improved somewhat over a year ago compared
with the report for nine months, although the decline for September continued quite heavy. The
reduction as to imports for the past month, however,
was relatively very much greater than for the nine
months, and is even more unsatisfactory than for
exports. The balance of trade for September continues largely on the export side, shipments from
this country exceeding imports by $34,000,000, the
ratio of the latter amount to imports being 34.7%;
for the nine months of 1932 the excess of exports was
$173,593,000, or only 17.1% of imports.
The export trade balance for September was relatively much higher than that for the year to date.
For September 1931 exports exceeded imports by
$9,844,000, the latter being only 5.8% of imports.
For the nine months of 1931, January to September,
inclusive, the excess of merchandise exports over
imports is $223,101,000, the ratio in the latter case
being 13.8%.
Cotton exports this year have been very much
better than last year, and for most of the months
in excess of those of 1929 and 1930. Shipments of
cotton to foreign countries last month totaled 749,461
bales compared with 462,760 bales in August and
562,523 bales in September 1931. Prices, too, for
September this year were higher, the value of cotton
exports in that month being $32,127,200 against $18,125,100 in August and $23,457,000 in September of
last year. Cotton exports last month increased in
value over August $14,000,000, and exports other
than cotton were also higher than in the preceding
month, the increase being nearly $8,800,000. September was the first month showing an increase in
the value of merchandise exports of any amount in
nearly a year.
It is necessary to go back to August 1931 for any
month with a smaller amount of gold exports than
appeared for September, while gold imports for the
month just closed were again slightly higher, and
were in excess of any month back to February last.
Gold exports in September were only $60,000, and
imports $27,957,000. For the nine months of 1932
gold exports have amounted to $809,438,000 and imports to $217,013,000, the excess of gold exports for
the year to date being $589,425,000. For the same
period in 1931 gold exports were $30,545,000 and
imports $367,261,000, the latter being higher by
$336,716,000. It was in October of last year that
the enormous movement in export shipments of gold
from this country began, which continued with little
interruption until last June. Silver exports last

2700

Financial Chronicle

month were again considerably reduced, amounting
to only $869,000, while silver imports were larger,
the total for September being $2,352,000.
HE New York stock market this week has again
been more or less depressed, though with no
pronounced weakness until Friday. Trading has
been of small volume, and the fluctuations generally
within narrow limits until the break on Friday.
Prices the rest of the week drifted more or less from
day to day. Developments have not been very important except that there has been continued weakness in the commodity markets, or more particularly
in wheat and cotton. The December options for
4c. on Thursday
wheat in Chicago got down to 473
/
and closed yesterday at 4834c. as against 4818c. on
/
Friday of last week. Spot cotton in New York was
down to 6.35c. on several days during the week, and
yesterday was quoted at 6.30c. against 6.55c. on
Friday of last week; on the other hand,the steel trade
appears to be developing slightly rising activity from
week to week, the "Iron Age" reporting the mills of
/
the country as now operating to 191 2% of capacity
as against 19% last week, 18% the previous week,
and 17 % the week before, though, as the "Age"
/
1
2
puts it, "still lacking conspicuous support from such
important consumers as the railroads, the automobile manufacturers and the construction enterprises."
The big drop in sterling exchange on Tuesday and
Wednesday attracted some attention, though it cannot be said to have been a market influence of any
great consequence, while yet being an unfavorable
factor. The Presidential campaign speeches continue to exercise a deadening effect upon trading,
the disposition being to await the outcome and watch
the effects before entering upon definite commitments on one side or the other of the market. Late
on Wednesday rumors gained currency that Governor Roosevelt would announce his stand in opposition to the soldier bonus, and this induced a rally
in the market which was carried a little further
on Thursday, but did not reach any greatproportions,
and was followed by a slight reaction at the close of
the day. The tobacco stocks have been under pre&
sure most of the week on account of increased competition from 10c. cigarettes, and the tObacco group
may be said to have been the one group with a distinct trend downward nearly the whole week. The
railroad list has perhaps displayed greater firmness
than the average, but the only explanation vouchsafed for this has been that carloadings were now
increasing from week to week, and this necessarily
meant a larger volume of traffic and better earnings.
Bond prices have been well maintained, and this has
been an encouraging feature, though some bonds
showed a sagging tendency on Friday. Not a great
many new records of prices for the year were established during the week, only six stocks touching new
low levels for the period since the first of the year,
while 14 stocks recorded new highs for 1932. The
call loan rate on the Stock Exchange has continued
to rule at the 1% figure adopted last week.
Trading continued very light. At the half-day
session on Saturday last the sales on the New York
Stock Exchange were 593,510 shares; on Monday
they were 770,310 shares; on Tuesday, 1,020,900
shares; on Wednesday, 1,303,330 shares; on Thursday, 1,055,950 shares, and on Friday, 1,241,695
shares. On the New York Curb Exchange the sales

T




Oct. 22

1932

last Saturday were 75,325 shares; on Monday,97,160
shares; on Tuesday, 111,500 shares; on Wednesday,
145,105 shares; on Thursday, 111,040 shares, and on
Friday, 150,020 shares.
As compared with Friday of last week, prices are
irregularly changed, but mostly lower. General
Electric closed yesterday at 151 8 against 1578 on
/
/
Friday of last week; Brooklyn Union Gas at 78
against 74 .bid; North American at 28 against 294;
1
Standard Gas & Elec. at 16% against 1814; Con/
solidated Gas of N. Y. at 5478 against 55%; Pacific
/
Gas & Elec. at 27% against 28; Columbia Gas & Elec.
at 12% against 14; Electric Power & Light at 7%
against 87 Public Service of N. J. at 46 against
8;
461 2; International Harvester at 21 against 22%;
/
J. I. Case Threshing Machine at 401/s against 42;
Sears, Roebuck & Co. at 183 against 193 Mont4
4;
gomery Ward & Co.at 11% against 1234; Woolworth
/
at 361 4 against 3634; Safeway Stores at 49 against
/
/
/
1
4
50; Western Union Telegraph at 26% against 28%;
American Tel. & Tel. at 10118 against 106; Int. Tel.&
/
Tel. at 918 against 10; American Can at 491 2 against
/
/
5112; United States Industrial Alcohol at 2418
/
/
against 25 ; Commercial Solvents at 83 against
/
1
4
4
9%; Shattuck & Co. at 8 against 814, and Corn
/
Products at 4918 against 5018
/
/
.
Allied Chemical & Dye closed yesterday at 70%
against 72% on Friday of last week; Associated Dry
Goods at 6 against 612; E. I. du Pont de Nemours
/
1
4
/
at 321 against 363 ; National Cash Register "A"
4
4
at 103s against 1178; International Nickel at 8
/
/
against 8%; Timken Roller Bearing at 1414 against
/
1512; Johns-Manville at 2034 against 22%; Gillette
/
/
Safety Razor at 15% against 1612; National Dairy
/
Products at 17% against 18; Texas Gulf Sulphur at
20% against 2014; Freeport-Texas at 20 against
/
214; American & Foreign Power at 7% against 818;
/
1
/
United Gas Improvement at 181 against 18; Na4
tional Biscuit at 38 against 39%;Coca-Cola at 94 bid
against 94%; Continental Can at 313 against 31;
4
Eastman Kodak at 50 against 52; Gold Dust Corp. at
16 against 16%; Standard Brands at 1518 against
/
1478; Paramount Publix Corp. at 3 against 3/
/
/
1
2
8;
Kreuger & Toll at 1 against 14; Westinghouse Elec.
4
/
/
& Mfg.at 2538 against 28; Drug,Inc., at 3218 against
/
35; Columbian Carbon at 253 against 28; Reynolds
4
Tobacco class B at 29 against 31; Liggett & Myers
/
1
4
class B at 54 against 63%; Lorillard at 1234 against
/
13%; American Tobacco at 602 against 69, and
/
1
Yellow Truck & Coach at 4 against 4 .
/
1
4
The keel shares are mostly lower. United States
Steel closed yesterday at 35 against 38 on Friday of
last week; Bethlehem Steel at 17 against 18%, and
Vanadium at 13 against 14. In the auto group Auburn Auto closed yesterday at 40 against 4414 on
/
1
4
Friday of last week; General Motors at 12% against
14; Chrysler at 13% against 1418; Nash Motors at
/
1234 ex-div. against 1414; Packard Motors at 3
/
/
against 3; Hudson Motor Car at 51/4 against 5%,
and Hupp Motors at 2 8 against 234 In the rubber
7
/
/.
group Goodyear Tire & Rubber closed at 141 2 against
/
15 on Friday of last week; B. F. Goodrich at 5
/
1
2
against 6; United States Rubber at 518 against 5%,
/
and the preferred at 10 bid against 112
/
1
.
The railroad shares show moderate losses. Pennsylvania RR. closed yesterday at 14 against 15 on
/
1
4
Friday of last week; Atchison Topeka & Santa Fe
at 40% against 42; Atlantic Coast Line at 20%
against 21; Chicago Rock Island & Pacific at 618
7
against 714; New York Central at 22 against 22%;
/

Volume 135

Financial Chronicle

/
Baltimore & Ohio at 117 8 against 13%; New Haven
4;
at 14% against 143 Union Pacific at 63 against 65;
Missouri Pacific at 5 bid against 5%; Southern Pa/
/
cific at 1878 against 1978; Missouri-Kansas-Texas at
/
1
2
7 4 against 7 ; Southern Railway at 8% against
1
/
4;
/
918; Chesapeake & Ohio at 2178 against 211 North/
/,
8 against 1838 and Great Northern
/
ern Pacific at 167
/
at 111 2 against 12%.
The oil shares show only slight changes. Standard
Oil of N. J. closed yesterday at 29 against 30 on
/
Friday of last week; Standard Oil of Calif. at 2414
/
/,
against 25; Atlantic Refining at 1578 against 161 2
4. The copper
4
and Texas Corp. at 123 against 131
group has also moved within narrow limits. Ana4
/
conda Copper closed yesterday at 83 against 1012
/
1
on Friday of last week; Kennecott Copper at 102
/
1;
against112 American Smelting & Refining at 15%
against 15½; Phelps Dodge at 6 against 6½; Cerro
/
1
2
/
1
2
de Pasco Copper at 7 against 7 , and Calumet &
/
1
2
4
at 33 against 3 .
Hecla
UIET dealings and uncertain price trends were
reported on all the stock exchanges in the
important European financial centers this week.
The London Stock Exchange was fairly steady
throughout, while the Paris Bourse wavered downward and upward in a narrow range of quotations.
The Berlin Boerse was easy in almost all sessions,
as there is little investment interest in advance of
the Parliamentary election of Nov.6. The approaching election in the United States and the lack of a
definite trend on the New York Stock Exchange
also contributed to the unsettlement on the European
markets. European trade and industrial reports
continue to reflect very modest improvement, and
it is perhaps noteworthy that the heavy industries
are partaking in the upswing to a somewhat greater
extent than formerly. The gains are accompanied
by a slight upward tendency in wholesale price levels,
and by downward revision of the unemployment
totals. The improvement is purely internal in every
case, however, as foreign trade statistics of the
British and German Governments for September
'show further declines. The monetary aspect remains
exceptionally favorable in all industrial countries,
as rates are phenomenally low.
Great interest attaches, in the present circumstances, to analyses of the world's economic disorder made this week in well informed European
quarters. Montagu Norman, Governor of the Bank
of England, confessed his bewilderment with refreshing frankness in a speech at a dinner given by the
Lord Mayor of London, Thursday. "The difficulties
are so vast and unlimited that I approach the subject not only in ignorance but in humility," he said.
The only conclusion he would venture was that "we
must take for the moment a short view, but we must
plan a long one." Mr. Norman urged that British
industry be placed in a robust and rationalized condition in preparation for the end of the depression.
Overseas bankers, he suggested, should co-operate in
granting short-term foreign credits so as to avoid
in future the disastrous loans of recent years. Dr.
Hans Luther, President of the Reichsbank, appealed
for a freer international exchange of goods in an address made before the Overseas Club in Hamburg,
Thursday. He warned Germany that import quotas
and embargoes would lead to reprisals by other
countries and a further catastrophic reduction in
trade.

Q




2701

The London Stock Exchange was steady at the
opening, Monday, but business dwindled in subsequent dealings of the day and the tone became uncertain. British funds lost all their initial gains
and closed with small losses. There were a few consistently strong features among the industrial stocks,
but most issues sagged. International stocks were
dull and lower. The tendency was firm, Tuesday,
in all sections of the market with the exception of
British funds. An adverse movement of sterling
exchange affected British Government securities
similarly. Gold mining stocks were favored for the
same reason, while most industrial securities were
cheerful. The Anglo-American group of stocks also
advanced. Dealings, Wednesday, were again affected by the unusually wide movements in sterling
exchange. British funds lost ground at first, but
recovered almost all the losses in the later dealings.
Industrial issues were firm, and transatlantic stocks
also maintained their favorable trend. Business
was quieter, Thursday, but the price tendency was
fairly good in all departments of the market. British
funds were in demand much of the day, and profittaking toward the close reduced the gains only a
little. Industrial securities resumed their upswing,
and sharp gains were recorded in some instances.
A degree of uncertainty was apparent in yesterday's
session. Gilt-edged issues lost a little ground, but
industrial stocks were steady.
The Paris Bourse was unsettled, Monday, owing
to substantial mid-month liquidation. The selling
was increased by the unsatisfactory political outlook which followed the German refusal to attend
a four-Power conference on disarmament at Geneva.
A soft tone prevailed among both French and international stocks, notwithstanding extreme ease in
money, which was only 18 of 1% for the fortnightly
/
settlement. The trend was reversed after a further
uncertain opening Tuesday, and prices moved upward. Owing to the early weakness, gains were not
large for the session. Suez Canal and the gold mining shares attracted the most attention. The opening was firm Wednesday, but on this occasion prices
turned downward in the latter part of the session.
Gold mining issues alone remained firm. The Bourse
was steady, Thursday, until the last hour, when a
further burst of selling occasioned some modification of early gains. Net changes were in most
instances slightly upward. A slight downward
trend prevailed in the dealing on the Bourse
yesterday.
The Berlin Boerse was dull, Monday, as the political campaign diminished investment interest almost
to the vanishing point. Small buying or selling
orders sufficed to effect large changes, in this situation. The tone was soft in all sections of the list,
but only a few issues showed sizable net losses. Further moderate recessions were recorded, Tuesday, on
the Boerse. The weakness was ascribed not only to
the local political uncertainty, but also to the unsettlement on other stock exchanges. Net declines exceeded a point in only a few stocks. The general
trend was unchanged, Wednesday, prices resuming
their slow decline in a stagnant market. Fixedincome securities held a fairly firm tone, but stocks
showed small losses. There was no increase in public
interest Thursday, despite some favorable reports
of industrial trends, and the Boerse continued its
quiet tendency. There was a better tone in some of
the mining and steel shares, but most issues again

2702

Financial Chronicle

showed small declines for the session. After a firm
opening, yesterday, prices again declined.
HE question of the large payments due the United
States Government from Great Britain and
France on Dec. 15 next was widely discussed in the
press this week, but no more conclusively than in
the past. It is obvious enough that both the EurOpean governments mentioned, as well as all others
that owe sizable sums, are hoping for some action
by the United States which will lead to postponement or cancellation of the payments. Neither
Great Britain nor France has made any provision
for such payments in their budgets. Despite this circumstance, it was reported from Paris, Wednesday,
that both Britain and France are preparing to pay
11w installments due Dec. 15. The British authorities, a dispatch to the New York "Times" said, have
been building up dollar balances in order to meet
the payment. If Great Britain is going to pay, the
French do not see what excuse they could offer for
not meeting their payment, particularly in view
of their enormous holdings of gold, the report
added.
Against such rumors must be placed a reference
to the debts by the British Foreign Secretary, Sir
John Simon, Thursday. Speaking in the House of
Commons, Sir John rebuked the Liberal Ministers
who resigned recently from the National Cabinet at
a period when many grave questions still are unsolved. Among the questions he mentioned "the
whole problem of the American debt." The French
Cabinet discussed financial measures, Thursday, but
took no step toward including the scheduled debt
payment in the tentative budget under consideration. In a discussion before the Foreign Affairs
Commission of the French Chamber of Deputies, the
same day, Premier Herriot was reported in the
French press to have distinguished between the war
debts and the commercial debt of $407,000,000 owed
for American war stocks bought by France after
the end of the conflict. M. Herriot proclaimed that
the commercial debt must be paid, the accounts said.
A semi-official note was issued yesterday stating that
Premier Herriot is not responsible for the published
accounts of his statements before the Foreign Affairs
Commission. "The debt question remains in its
entirety," the note added. Reports were current in
Paris that French officials had gone to London to
discuss the debt problem with British officials, but
these were denied by the Quai d'Orsay.

T

EGOTIATIONS on disarmament among the
leading world Powers remain inconclusive,
and there is ever less indication as time goes by of
any notable achievement at the General Disarmament Conference in Geneva. The German Government declined this week to discuss disarmament in
Geneva,notwithstanding the efforts by Great Britain
and France to have the Reich return to the League
city. At the close of the London conversations between Prime Minister MacDonald and Premier Herriot, Oct. 14, these officials definitely abandoned the
British idea of holding a meeting in London of
British, French, German and Italian representatives to consider the German demand for equality in
armaments. In compliance with a French request,
it was intimated, the British agreed to use their good
offices in the endeavor to hold the four-Power meeting in Geneva, within the framework of the League.

N




Oct. 22

1932

But German diplomats in London promptly explained, a dispatch to the New York "Times" said,
that their Government has no intention of being
dragged back to the main disarmament conference
at Geneva through "the side-show tent of a fourPower meeting." Disregarding these indications,
the London Government made a further attempt
through diplomatic channels, Monday,to induce Germany to attend the Geneva gathering. Foreign Minister Bonstantin von Neurath made it clear, in reply,
that under no conditions would Germany accept
Geneva as the seat of such a conference. The Hague,
or even Lausanne, might be acceptable, it was stated,
but not the League city. In a speech at London,
Monday, Prime Minister MacDonald expressed profound regret that Germany, while declaring her
readiness to attend such a conference, "refuses to
go to Geneva for reasons the substance of which
it is difficult for me to detect."
Ordinary activities of the League of Nations have
been almost completely discontinued while the
nations debated the German demand for equality
of armaments and the subsequent withdrawal of
Berlin from the General Disarmament Conference.
It has long been recognized that the prestige of the
League depends in large part on the progress made
toward disarmament in the general conference,
which began early last February. Prospects are
gloomy, however, and it is now generally believed
that full sessions of the General Disarmament Conference will not be resumed until after the world economic conference. Several subcommittees of the Disarmament Conference, which had been sitting in
Geneva, adjourned Wednesday, on the plea that they
required more information. The thirteenth Assembly of the League adjourned, Monday, after a month
devoted largely to discussions of such questions as
the equality of the sexes in The Hague nationality
treaty. The Assembly attempted also to reduce the
budget of the League from its figure of $6,500,000,
but finally adopted a budget $20,000 higher than last
year's. The League Council voted in a secret session,
last Saturday, to nominate Joseph A. Avenol of
France to succeed Sir Eric Drummond as SecretaryGeneral of the League. The Council adjourned Monday, after making the nomination formally in open
meeting. League activities will be resumed in November, when a special session of the Assembly will
consider the Lytton report on Manchuria, the nomination of M. Avenol and other questions.
HE British House of Commons reassembled in
London, Tuesday, after a three months' recess
and promptly started consideration of bills which
will implement the Empire trade agreements reached
in Ottawa. In connection with the presentation of
these measures, it was disclosed by J. H. Thomas,
Secretary for the Dominions, that the British Government had renounced,as of Oct.13, the trade agreement made with the Soviet Government of Russia
in 1930. New tariff arrangements already are under
discussion with Argentina, Mr. Thomas indicated,
while Denmark, Norway and Sweden have been invited to send representatives to London for a discussion of tariffs. These steps aroused keen interest
in the House, and some protest from leaders of the
small minority groups. Passage of the legislation
is assured, however, as the National Government is
able to count on the support of 517 member', whereas
the Opposition can muster only 95. In a division

T

Volume 135

Financial Chronicle

on a minor point of procedure, Wednesday, the vote
was 291 with the Government and 69 against.
In announcing the first practical steps by the
British Government toward fulfillment of the Ottawa
agreements, Mr.Thomas remarked on the importance
of maintaining the Empire preferences against State
action by any foreign country which might stultify
the intentions of the preferences. Denunciation of
the commercial treaty of 1930 with the U. S. S. R.
was necessary, he said, as it assured the Soviet of
most-favored-nation treatment and therefore might
stand in the way of import prohibitions conceivable
under the Ottawa obligations. Six months' notification of the termination of the Soviet trade treaty
was therefore given, in accordance with the requirements of the 1930 agreement. The Soviet Government was informed at the same time, Mr. Thomas
said, that Britain remained anxious for the furtherance of trade and was prepared to enter into a
discussion for the promotion of this end at the earliest moment. Announcements regarding the negotiations with Argentina and the Scandinavian countries
were also made by the Foreign Office in London the
same day.
Debate was brief on the Ottawa agreements and
the termination of the treaty with the Russian Soviet
Government. George Lansbury, leader of the Opposition group of Laborites, asked why such drastic
action was taken without any investigation to determine whether Soviet trade conflicted with Dominions trade. Mr. Thomas replied that no investigation was needed to convince the Government that
"sweated" Soviet goods were being dumped in England. Mr. Lansbury maintained, however, that the
Dominions had driven a bargain by which they were
getting great Immediate advantages, while the people of Great Britain were getting nothing that would
decrease the cost of living or the number of unemployed. Sir Herbert Samuel, who resigned recently
from the National Cabinet and resumed his leadership of one of the minority groups of Liberals, declared that the arrangements with the Dominions are
going to make trade questions a matter of vehement
controversy throughout the Empire. "Worst of all,"
he added,"they will bring the daily urgent needs of
the poor people of this country into direct conflict
with claims made for imperial patriotism." Prime
Minister Ramsay MacDonald closed the day's debate, a dispatch to the New York "Times" said, by
pointing out that neither protection nor free trade
could be held responsible for unemployment, because
it existed in countries regardless of their tariff
systems.
While this official debate was in progress, protests
'against the new British trade policy were being
drawn up by some powerful British trade groups. It
was noted in a London report of Tuesday to the New
York "Herald Tribune," that representations were
being made to the Government by the fruit trades
against the tariffs, on the score thFt the increased
prices will reduce consumption materially. Platforms of the Labor and Liberal groups have been
revised at party conventions held in recent weeks,
and it is'evident that a protracted political fight
will be waged in the future around the Ottawa agreements. An incident of some importance was the
resignation, Tuesday, of Arthur Henderson as leader
of the official Labor party, his place being taken by
George Lansbury. The general unrest prevalent in
England, as in all other countries, was reflected the




2703

same day in a riotous idemonstration of approximately 4,000 unemployed in London. Processions
of unemployed converged on the London County
Council Hall, where a debate on direct aid was in
progress. The demonstrators found a number of
policemen guarding the building and missiles soon
began to fly. In the struggle that followed, three
policemen and a score of civilians were hurt, while
many of the demonstrators were arrested.
OPES for an early settlement of the land annuities dispute between the British and Irish Free
State Governments were again disappointed, last
Saturday, when a two-day conference in London
came to a fruitless end. This controversy is viewed
with a good deal of anxiety in both countries, as it
is the direct cause of retaliatory duties imposed by
each side on the products of the other. Several
attempts to reach a settlement already had failed
when the further conference was started in London
by President Eamon de Valera of the Irish Free
State, and J. H. Thomas, Secretary of State for the
Dominions in the National Cabinet. The end of the
conference last week was signalized by an official
communication, in which the Dominions Office in
London announced simply that it had, unfortunately,
been found impossible to reach an agreement. The
Free State Government carried the dispute one step
further, Wednesday, when it was announced in Dublin that heavy increases would be made the following
day in the import duties on a long list of manufactured articles and semi-finished goods which are
purchased in large part in England.
Official versions of the negotiations on the
£3,000,000 land annuities were presented by Mr.
Thomas before the House of Commons, Tuesday, and
by Mr. de Valera before the Dail on the following
day. Mr.Thomas indicated that the Irish Free State
Executive had countered the British request for payment of the sums due under the financial agreements of 1923 and 1926 with a demand for the repayment of £400,000,600 which he claimed was due Ireland as reparations for British financial "injustices"
since the days of Queen Elizabeth. "There was a
frank, free exchange of views," Mr. Thomas continued. "His Majesty's Government not only did not
accept the figure of £400,000,000, but if it was to
continue the discussion on that basis there would
be a lot to say on the other side. We expressed the
view that there was neither a moral nor a legal
.
basis for the Free State's claim with respect to overtaxation in the past and we supported our view by
illustration and argument." The willingness of the
London Government to have the land annuities question arbitrated by an Empire tribunal was reiterated
by the Dominions Secretary.
President de Valera stated before the Dail Eireann,Wednesday,that the London discussions showed
the British were not ready to admit a "matter of
simple justice." The London Government declined
to examine the situation on what he called its merits,
but relied on the inviolability of the financial agreements. The demand for repayment of £400,000,000
was made seriously, Mr. de Valera said, as a final
financial settlement between the two countries
should include every claim. "While playing the part
of Shylock as regards this country, the British are
going as petitioners to the United States, and playing the role of Lady Bountiful on the Continent," he
continued. "They themselves are petitioning in

H

2704

Financial Chronicle

America for relief from debts which are morally and
legally due. Everybody realizes that if there is to
be restoration of economic life on the Continent of
Europe the huge intergovernmental payments must
cease. We are not prepared to pledge our people to
continued payment of these sums. We are not prepared to put our country's future in pawn. The payments in dispute are neither morally nor legally due
to Great Britain, and we propose to stand up for
our rights." The tariff increases which were announced the same day were defended by Mr. de
Valera on the ground that they will help to free the
Free State of its "dangerous" economic dependence
on Great Britain. "The position now is that Great
Britain can use the Free State's dependence on the
British market to try to compel us to bow to her
will," he said. "This Government will not bow. It
will defend the people's rights and make whatever
economic adjustments that may be necessary."
INANCIAL difficulties are multiplying for the
French Government, which is faced with a
budgetary deficit of approximately $140,000,000 in
the current fiscal year, while the indicated deficit
for the following year is $340,000,000. The Cabinet
is anxiously discussing the problem of raising money,
reports from Paris indicate, as it is believed that the
limit of taxation has nearly been reached. Among
the measures contemplated for balancing the budget
is a heavy reduction in the salaries of officials,
whereby $52,000,000 might be saved annually. Other
economy measures, such as the suppression of pensions to remarried war widows, also are contemplated. Public works expenditures are likely to be
met in greater part by bond issues, rather than out
of the budget. Sales tax exemptions probably will
be decreased, while increases in the coffee and housing taxes are under debate. Despite such measures,
the Government will have to do further borrowing,
a Paris dispatch to the New York "Herald Tribune"
remarks. Political sentiment in France, as reflected
in the elections for 111 Senate seats last Sunday,
shows no important change in the period since the
general election of last May. The swing to the
moderate Left groups that occurred last May was
repeated in the Senate elections and a small gain
was made by the factions supporting Premier
Edouard Herriot and his Cabinet. The Senate previously was oriented predominantly to the Left, and
the gains will merely strengthen these groups.

F

LTIMATE consolidation of the German long
and short-term private indebtedness to foreigners was forecast by Chancellor Franz von Papen,
in a speech delivered last Sunday before a group of
Westphalian industrialists. This pronouncement by
the Chancellor, like most others currently made in
the Reich, was doubtless designed largely for domestic political effect, as the campaign for the Parliamentary elections of Nov. 6 is in full swing. It
was indicated Monday, in dispatches from Berlin,
that the German Government is not expected to take
any early action in regard to foreign private indebtedness. The surplus of exports over imports, if continued at the present rate, is believed sufficient to
meet debt service charges at least until expiration
of the stand-still agreement on short-term credits
next March, a dispatch to the New York "Times"
states. Decisive action by the German Government
with regard to debts is most unlikely, the report

U




oct. 22

1932

added, in advance of the world economic conference,
which probably will begin in January.
German debts to other countries can only be paid
by the sale of goods, the Chancellor asserted in his
address, and he maintained that trade barriers
should be lifted to make this possible. The German
Government will seek to impress this point on creditor nations of the Reich at the world economic conference, he declared. Impressive evidence of German economic strength has been afforded by the
repayment of approximately $1,000,000,000 in private debts to foreigners, but further withdrawals of
credits could not now be countenanced as they would
entail serious consequences on German economy, the
Chancellor said. If trade barriers are reduced and
German export prospects brightened, the burden of
20,000,000,000 marks of private debts owed abroad
will be made tolerable and will no longer constitute
a paralyzing factor in German economy, Colonel
von Papen pointed out. The import quota policy
of his own Government was defended by the Chancellor on the familiar score of urgent necessity.
ANGUINARY battles are being waged in the
informal war between Paraguay and Bolivia
over the boundary lines of the disputed Gran Chaco
territory. Efforts made by the League of Nations
Assembly to secure a peaceful adjustment of this
dispute have come to naught,and the more persistent
endeavors of the Commission of American Neutrals
in Washington also have been without effect. In
reply to the protestations of these official agencies
for peace, the two Latin American countries continue to affirm their peaceful intentions. Paraguayan troops, estimated to number 14,000, are
slowly advancing toward the Bolivian stronghold
of Fort Arce, deep within the Chaco. The capture
of Rift Boqueron, two weeks ago, cleared the way
for this advance. The Paraguayans hope to take
the larger fort as well, it is said, in the expectation
that Bolivian military activities would be ended
thereby until the end of the rainy season, five or six
months hence. It was announced at Asunsion, Tuesday, that Paraguayan forces have captured 10 forts
within one month in the undeclared war with Bolivia. Four of these forts were manned by Paraguayans before the military activities were started
by the Bolivians last June, while six were accredited
to Bolivia. Fort Arce; which is now under attack,
is the strongest Bolivian fort in the entire Chaco
area.
Diplomatic endeavors to adjust the dispute between Colombia and Peru over the seizure by Peruvian citizens of the tiny Amazon River port of
Leticia also are proving unsuccessful. The Colombian Government is understood to have refused an
offer of arbitration made by the Conciliation Commission in Washington. The Peruvian Government
has disclaimed responsibility for the developments
at Leticia, but Bogota newspapers insist that Lima
is supplying the Leticia insurrectionists with arms,
ships and airplanes. Rumblings of further revolutionary movements are heard, meanwhile, in Chile,
where the Government of Provisional President
Oyanedel only recently was installed. It was admitted in official circles late last week that another
revolt had started, apparently under the leadership
of adherents of former President Ibanez. The Brazilion Government, on the other hand, is speedily
settling the problems occasioned by the defeat of

S

Volume 135

Financial Chronicle

2705

the Sao Paulo insurrectionists. Only the instigators
of the revolt are to be punished, it was announced
late last week, and preparations were started for the
release of 6,000 prisoners of war. President Vargas
issued a decree, last Saturday, extending for 60 days
the moratorium on domestic debts throughout
Brazil.

937,178,765 francs and the previous year at 73,301,796,235 francs. A decrease appears in advances
against securities of 26,000,000 francs, while bills
bought abroad remains unchanged. The proportion
of gold on hand to sight liabilities stands at 77.45%
in comparison with 55.07% a year ago. Below we
furnish a comparison of the various items for three
years:

HE Bank of Poland reduced its discount rate on
Thursday (Oct. 20) from 73/2% to 6%. Rates
are 10% in Greece; 83/2% in Bulgaria; 7% in Rumania, Portugal and Lithuania; 63/2% in Spain and
in Finland; 6% in Austria and Poland; 532% in
Estonia; 5% in Italy, Hungary and Colombia; 432%
in Chile and in Czechoslovakia; 4.38% in Japan; 4%
in
in Germany, Norway, Danzig and India; 3
Sweden, Denmark, Belgium and in Ireland; 23/2% in
France and in Holland, and 2% in England and in
Switzerland. In the London open market discounts
for short bills on Friday were 11-16% as against
5/@11-16% on Friday of last week, and 9®13-16%
for three months' bills as against 13-16@/% on
Friday of last week. Money on call in London on
Friday was %. At Paris the open market rate
continues at 1%%, and in Switzerland at 13/2%.

BANK OF FRANCE'S COMPARATIVE STATEMENT.
Status as of
Changes
Oct. 14 1932. Oct. 16 1931. Oct. 17 1930.
for Week.
Francs.
Francs.
Francs.
Francs.
Gold holdings_ __ -Inc. 6,910,069 82,651,268,261 62.154,598,359 50,567,354,167
Credit bids. abr'd_Inc. 9,000,000 2.909.293,447 17,078,596,619 6,474,757,095
&French commerc'l
bills discounted_Inc. 126,000,000 2,934.200,069 7,391,845,885 4,925,050,697
2,082,017,792 12,433.769,462 19,119,507,093
bBills bought abr'd Unchanged.
Adv. agt. secur__Dec. 26,000,000 2,754,322,811 2,811,753,295 2,883,796,330
Note circulation_ _Dec.678,000,000 81,100,143,520 81.937,178,765 73,301,798,235
Cred. curr. accts__Ine. 726,000,000 25,620,533,905 30,917,664,410 20.092,629,652
Proportion of gold
on band to sight
54.14%
55.07%
77.45%
0.02%
Dec.
liabilities

T

HE Bank of England statement for the week
ended Oct. 19 shows a gain of £19,974 in gold
and as this was attended by a loss of 0,197,000 in
circulation, reserves rose £2,217,000. The Bank's
bullion holdings amount to £140,416,047 in comparison with £137,035,232 a year ago. Public deposits increased £15,719,000, while other deposits fell
off £13,095,552. Of the latter amount £11,600,421
was from bankers' accounts and £1,495,131 from other
accounts. The reserve ratio is now at 41.19%, as
compared with 40.34% last week and 42.90% a year
ago. Loans on Government securities decreased
£1,870,000 and those on other securities rose 0,286,253. The latter consists of discounts and advances
which decreased 07,258 and securities which increased 0,323,511. The 2% discount rate is unchanged. Below we show comparisons of the
different items for five years:

T

BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1928.
1929.
1930.
1931.
1932.
Oct. 24.
Oct. 23.
Oct. 22.
Oct. 21.
Oct. 19.
L
Circulation.s
359.217.000 355,230,909 354,527,879 357,386,753 133,178,785
30.750,000 10,093,860 27,932,990 15,788,487 10.123.407
Public deposits
105,674,988 113,292,220 89,604,033 96,247,990 102.170,074
Other deposits
Bankers accounts 71,933,830 60.515.285 55,504,890 59,111,334
33,741.158 52.776,935 34,099,143 37,136,658
accounts
Other
.
Governm't securities 66,238,094 53,800,908 41,836,247 69,461,855 37.300.308
31,654,679 39,469,086 27,947.706 24,640,597 39,396,388
Other securities
Disct. dt advances 11,606.495 10.421,878 4,978.750 4,199.821
20,048,184 29,047,208 22,968,958 20,440,776
Securities
Reserve notes ,t coin 56,198,000 56.804,323 65,597,781 35,634,291 53,308,010
Coin and bullion_ _140,416,047 137,035,232 160,125,680 133,021,044 166,738,795
Proportion of reserve
31.80%
55.80%
42.90%
41.19%
475%
to liabilities
6%%
3%
4%%
6%
2%
Bank rate
On Nov. 29 1928 the fiduciary currency was amalgamated with Bank of England
note issues adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.

HE Bank of France statement for the week
ended Oct. 14 shows an increase in gold holdings
6,910,069 francs. Total gold holdings are now
of
82,651,268,261 francs, in comparison with 62,154,598,359 francs last year and 50,567,354,167 francs
the previous year. French commercial bills discounted, credit balances abroad and creditor current
accounts record increases of 126,000,000 francs,
9,000,000 francs and 726,000,000 francs respectively.
Notes in circulation contracted 678,000,000 francs,
reducing the total of notes outstanding to 81,100,143,520 francs. Last year circulation stood at 81,-

T




a Includes bills purchased in France. b Includes bills discounted abroad.

HE Bank of Germany in its statement for the
second quarter of October shows an increase
in gold and bullion of 436,000 marks. The Bank's
gold now stands at 796,804,000 marks, as compared
with 1,155,963,000 marks a year ago and 2,180,463,000 marks two years ago. Increases are recorded in reserve in foreign currency of 310,000
marks, in silver and other coin of 41,723,000 marks,
in notes on other German banks of 2,191,000 marks,
in investments of 19,000 marks and in other liabilities
of 2,285,000 marks. Notes in circulation show a
decline of 99,320,000 marks, bringing the total of
the item down to 3,518,998,000 marks. Circulation
last year was 4,526,676,000 marks and the previous
year 4,674,978,000 marks. Bills of exchange and
checks, advances, other assets and other daily maturing obligations register decreases of 170,266,000
marks, 9,395,000 marks, 7,413,000 marks and 45,310,000 marks respectively. The proportion of gold
and foreign currency to note circulation is up to
26.5% from 25.7% the previous quarter. A comparison of the various items for three years is shown
below:

T

REICIISBANK'S COMPARATIVE STATEMENT.
Changes
Oct. 15 1932. Oct. 15 1931. Oct. 15 1930.
for Week.
Reichemarks. Reichsmarks. Rekhsmarks.
Reichsmarks.
Assets—
436,000 796,804,000 1,155,963,000 2,180,463,000
Inc.
Gold and bullion
90.025.000 149,788,000
63,351,000
Of which depos.abr'd_ Unchanged.
173,882,000
310,000 135,113,000 138,136,000
Res've in for'n curr_ _ _Inc.
Bills of each. & checksDec. 170,268,000 2,777,774,000 3,829,651.000 2,084,823,000
95,481,000 167,925,000
Silver and other coin_ _Inc. 41,723,000 211.454,000
18.014,000
8,808,000
9,235.000
Notes on 0th. Ger. bksInc. 2,191,000
66.412,000
92,109.000 202,900.000
Dec. 9,395,000
Advances
19,000 362,227.000 102,884,000 102,493,000
Inc.
Investments
Dec. 7,413.000 812,687,000 841,752,000 766,906,000
Other assets
Liabilities—
Notes in circulation Dec. 99,320,000 3,518,998,000 4,526,676,000 4,674,978,000
0th. daily mat. oblig_Dec. 45,310.000 366,929,000 551,443,000 355,445.000
Inc. 2,285,000 744,100,000 810,125,000 249,877,000
Other liabilities
Propor.of gold dc for'n
50.4%
28.6%
26.5%
0.8%
curr. to note circul_Inc.

ONEY rates have been stable in the New York
market this week, at the extremely low figures
reached in the downward adjustments of last week.
The only noteworthy change has been in the rate at
which the Treasury borrowed on discount bills. An
issue of $75,110,000 in 91-day bills was awarded
Monday, at an average discount of only 0.14%. A
week earlier the Treasury sold a similar issue at an
average discount of 0.19%, which was the low record
to that time. Call loans on the New York Stock
Exchange have been 1% for all transactions, whether
renewals or new loans, but in the unofficial "street"
market funds have been available every day at Yi%.
Time loans have held to earlier levels. The total
of brokers' loans against stock and bond collateral

M

2706

Financial Chronicle

was unchanged in the report of the Federal Reserve
Bank of New York, covering the.week to Wednesday
night. Gold movements at New York for the same
period consisted of exports of $35,000, imports of
$3,454,000 and a net decrease of $10,170,000 in the
stock of the metal held earmarked for foreign account.
in detail with call
on the
DEALINGExchange from day toloan rates was the
Stock
day, 1%
rulingtquotation all through the week both for new
loans and renewals. The time money market has
been practically without movement this week.
Rates are quoted nominally at %@13.% for all
dates. The demand for prime commercial paper
has been fairly active this week. A little more
paper is available and transactions have correspondingly increased. Quotations for choice names of
four to six months' maturity are 1%@2%. Names
less well known are 23'%. On some very high class
paper occasional transactions at 13/2% are noted.
prime bankers' acceptances
week, but sales
THE market for on accountthis the shortagehas
been moderately strong
of
of
have been limited
paper. Rates are unchanged. The quotations of
the American Acceptance Council for bills up to and
2% asked;
including three months are %% bid, Y
4% bid, and 58% asked; for five
/
for four months, 3
/
and six months, 1% bid and 78% asked. The bill
buying rate of the New York Reserve Bank is 1% for
/
1-90 days; 11 8% for 91-120 days, and 1 % for ma/
1
2
turities from 121-180 days. The Federal Reserve
banks show a trifling increase in their holdings of
acceptances, the total having risen from $33,278,000
last week to $33,583,000 this week. Their holdings
of acceptances for foreign correspondents decreased
from $45,227,000 to $41,766,000. Open market rates
for acceptances are as follows:

Prime eligible bills

SPOT DELIVERY.
—180 Days— —150 Days—
Bid. Asked.
Md. Asked.
1
1
X
j4

—120 Days—
Bid. Asked
X
X

—90 Days— —60Days— —30 Days—
Bid. Asked.
Bid. Asked.
Bid. Asked.
Yi
Prime eligible bills
H
H
H
H
H
FOR DELIVERY WITHIN THIRTY DAYS.
Eligible member banks
1% bid
1% bid
Eligible non-member banks

been no changes this week in the
THERE have ratesscheduleFederal Reserveinbanks.
rediscount
of the
The following is the
of rates now
effect
for the various classes of paper at the different
Reserve banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Rate in
Effect on
Oct. 21.

Date
Established.

Previous
Rate.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Bt. Louis
Minneapolis
Kansas City
Dallas

3X
234
334
314
334
334
234
334
334
334
314

Oct. 17 1931
June 24 1932
Oct. 22 1931
Oct. 24 1931
Jan. 25 1932
Nov. 14 1931
June 25 1932
Oct. 22 1931
Sept. 12 1930
Oct. 23 1931
Jan. 28 1932

2X
3
3

Ran Frmultnn

2L

Clot

Federal Reserve Bank.

21 1011

3

4
3
334
234
4
3
4
2H

exchange broke
its moorings
STERLINGof whenweek and fromoff sold down on
Tuesday this
again sharply
was
cable transfers
to
on Wednesday,
3
3.37%, the lowest level since Jan. 11 and within
2% cents of the low for the year. The range this
week has been between 3.44 11-16 down to 3.37 11-16
for bankers' sight bills, compared with a range of
4
between 3.437 and 3.46 last week. The range for



Oct. 22 1932

3
cable transfers has been from 3.443 down to 3.37%,
4
compared with a range of between 3.43 15-16 and
3.46 1-16 a week ago. The sharp drop in sterling
took markets everywhere by surprise and had a
marked effect on quotations for all other currencies
both in this and in foreign markets. As already
noted, many reasons have been offered in explanation
of the sudden turn in exchange. For many months
foreign exchange traders have been of the opinion
that the London authorities would hold sterling at
between 3.45 and 3.50. Last week, when the rate
for cable transfers dropped to 3.43 15-16, bankers
were inclined to believe that nothing more important
was happening than the ordinary seasonal pressure,
and it was believed that official support would restore
the rate to a higher level as it has been frequently
declared in London the authorities regarded with
disfavor extremely wide fluctuations in the rate.
Bankers say that since the establishment, in April,
of the Exchange Stabilization fund of £150,000,000
the London authorities have not operated through
its agency except when the swings in exchange
threatened to become too wide. The present weakness is attributed partly to the fact that for a week
or more official support has not been apparent.
Support appeared in the New York market on
Wednesday when the rate dropped to 3.37%. This
rate compares with a low for 1932 of 3.35 and a high
of 3.83%.
According to some bankers the British Government withdrew its support in New York, London,
and Paris apparently because the 3.45 level was
proving too expensive to maintain. In quarters
where this opinion is held it is believed that sterling
may go even lower, but hardly below 3.25. However, conservative opinion does not look for such
low rates. This is normally the season for weakness
in sterling because of the preponderance of imports
during the wheat and cotton seasons. This factor,
combined with recent purchases of securities here,
is thought sufficient to explain the sharp drop.
After the decline in the rate in Tuesday's trading
there was considerable selling of sterling on the
Continent, which aggravated the situation and precipitated the extreme lows recorded on Wednesday.
According to London dispatches no alarm is felt in
Lombard Street, and it is pointed out there that the
decline corresponds to the movement last December,
when the low of 3.24 was touched. Reports that the
Exchange Equalization Fund is exhausted are
emphatically denied in London where bankers state
that sterling has received no considerable support
recently and point out that the function of the fund
is only to arrest abnormal movements and not to
interfere with the natural course of exchange. A
special dispatch to the "Wall Street Journal" from
London stated in reference to the drop in the pound:
"Although Britain's financial position has improved
materially since a year ago there are still several
factors militating against the recovery of sterling
exchange. In the first place, while the visible import
surplus has been reduced, invisible items, such as
interest on foreign investments, receipts from shipping and freights and commissions of all kinds
including those on insurance and acceptance financing, must have declind since last year. The cheapness of financing of cotton and wheat imports through
London, instead of through New York, also probably
has had the effect of concentrating the normal
seasonal strain on sterling at this time. Furthermore,

Volume 135

Financial Chronicle

very considerable sums must have been transferred
to New York recently for stock market operations,
particularly for the purchase of Australian external
bonds which offer higher yields in New York than
in London. Although some operators may have
taken their profits, most of these are believed to
have been left in New York rather than brought
home. An additional factor has been the recent
renewal of withdrawal of sterling balances by Continental central banks in the form of gold. The
metal has been paid for out of their sterling deposits,
thus depriving the arbitrage market of the usual
supplies of foreign gold currencies eventuating from
these operations."
From the action of sterling exchange during the
past two weeks bankers are inclined to believe that
the restoration of the gold standard is more remote
than was hoped by the optimistic. It is understood
that proposals will soon be submitted by the Bank
for International Settlements for the restoration of
the gold standard in England and elsewhere, but it is
hardly probable that these recommendations will
carry any weight with the British Government.
It would seem certain in view of past experience
that the Treasury will move very slowly in the
matter, and will not take formal action until such
time as the London authorities are fully convinced
that sterling can be permanently anchored to gold
when stabilized. The foreign trade statements show
disappointing results with respect to the influence
of lower sterling on British exports. The London
money market continues extremely easy and the vast
amount of short term funds on balance in London is
almost unemployable. There is some compensation,
however, in the fact that the Treasury has partly
lifted the embargo on new capital issues. For the
present offerings of new securities are much below
the visible demand and quasi-famine is developing
in high grade stocks. It will be noted that the
Federal Reserve Bank of New York reports the
arrival this week of another small shipment of gold
from England totaling $284,000. More than £5,250,000 in gold has been sent from London to New York
since the beginning of the year. The influx started
in volume in July and at first represented gold returning to the United States from London after the raid
on the dollar during May and June. Since then the
movement has continued because of the decline in
sterling and because of the opportunities for arbitraging which arise from time to time out of the
remunerative positions of francs, dollars and sterling.
At present the movement has virtually ceased, but
shipments of gold from India to the United States
are increasing.
Most of the open market gold reaching London
continues to be taken for Continental account.
Despite the low rates in the open market, bankers
are inclined to believe that there will be no further
reduction in the Bank of England's rate of rediscount, which continues at 2%. Call money against
bills in London was plentiful this week at M% to
34%. Two-months' bills are 11-16%, three-months'
7
bills %% to 13-16%, four-months' bills 4% to
0
and six-months' bills 1 1-16% to 137.
15-16%,
week gold seems to have sold in the London
This
open market from 119s 10d to 121s 10d. The Bank
of England statement for the week ended Oct. 19
shows an increase in gold holdings of £19,974, the
total standing at £140,416,047, which compares
with £137,035,232 a year ago.



2707

At the Port of New York the gold movement for
the week ended Oct. 19, as reported by the Federal
Reserve Bank of New York, consisted of imports of
$3,454,000, of which $2,360,000 came from India,
8411,000 from Holland, $301,000 from Mexico,
$284,000 from England, and $98,000 chiefly from
Latin-American countries. Exports were $35,000
to Switzerland. The Reserve Bank reported a
decrease of $10,170,000 in gold earmarked for foreign
account. In tabular form the gold movement at
the Port of New York for the week ended Oct. 19,
as reported by the Federal Reserve Bank of New
York, was as follows:
GOLD MOVEMENT AT NEW YORK,OCT. 13—OCT. 19,INCLUSIVE.
Exports.
Imports.
$35,000 to Switzerland
$2,380,000 from India
411,000 from Holland
301,000 from Mexico
284,000 from England
98,000 chiefly from Latin
American countries
$35,000 total
$3,454,000 total
Net Change in Gold Earmarked for Foreign Account:
Decrease: $10,170,000.

The above figures are for the week ended Wednesday evening. On Thursday there were no imports
or exports of the metal. Gold earmarked for foreign
account on that day decreased $7,459,300. Yesterday
$34,300 of gold was received from Mexico. There
were no exports or change in gold held earmarked
for foreign account. During the week approximately
$6,076,000 of gold was received at San Francisco,
of which $3,352,000 came from Japan $856,000,
came from China, and $559,000 came from Australia.
Canadian exchange, while still at a severe discount,
is more in favor of Montreal than at any time since
September 1931. On Saturday last Montreal funds
4
were at a discount of 77 %. On Monday the discount rose to 8%. On Tuesday the discount was
again 8%, on Wednesday 83'%, on Thursday 81
4%,
4
but on Friday 73 %. The appreciation in the Canadian dollar has been due in part to accumulation of
funds in Canada for grain account.
Referring to day-to-day rates, sterling exchange
on Saturday last was steady in limited trading.
Bankers' sight was 3.44/@3.44 11-16 cable transfers
3.44M@3.4434. On Monday sterling continued
dull and steady. The range was 3.44/@3.44% for
bankers' sight and 3.44 7-16@3.44 11-16 for cable
transfers. On Tuesday the pound went off sharply.
2
g
Bankers' sight was 3.403/@3.433/; cable transfers
. On Wednesday sterling was under
2
3.403@3.433/
severe pressure. The range was 3.37 11-16@3.39 5-16
4
4
for bankers' sight and 3.373 @3.393 for cable transfers. On Thursday exchange found official support.
/
%
Bankers' sight was 3.387 @3.397 3; cable transfers
(P.40. On Friday sterling continued steady,
8
3.393/
on official support. The range was 3.39 9-16@
3.39 13-16 for bankers' sight and 3.39 11-16@
3.39 15-16 for cable transfers. Closing quotations
on Friday were 3.39 11-16 for demand and 3.3934
for cable transfers. Commercial sight bills finished
at 3.393'; 60-day bills at 3 383/2; 90-day bills, at
.
3.383j; documents for payment (60 days) at 3.38%,
and seven-day grain bills at 3.393.. Cotton and
grain for payment closed at 3.393•
XCHANGE on the Continental countries and
all the gold units was noticeably affected by
the unexpected drop in sterling exchange. French
francs were especially firm though seasonal factors
are against francs and European currencies as compared with the dollar. The heavy selling of sterling

E

2708

Financial Chronicle

in Paris, together with the purchase of francs and
the shipment of gold from London to the Continent,
sufficed to account for the higher franc rate, though
on commercial account the franc should be ruling
lower. Present movements in Continental rates are
not indicative of the real course of exchange. If
sterling can be held steady even at present levels,
the market believes that francs should recede from
the current high quotations. The trade balance
is unfavorable to France. The unit has had very
little support from tourist traffic this year and it is
believed that the next tourist season will show little
improvement. Paris financiers assert that the Bank
of France gold holdings will be diminished before
long and are inclined to believe that the major
portion of this gold will come here because practically no other country shows a trade balance favorable to the home market or on its general foreign
account is more largely creditor than debtor in its
relation to foreign countries. The Bank of France
statement for the week ended Oct. 14, shows an
increase in gold holdings of 6,910,069 francs, the
total standing at 82,651,268,261 francs, which compares with 62,154,598,359 francs on Oct. 16 1931,
and with 28,935,000,000 francs when the unit was
stabilized in June 1928.
German marks have not been affected by the
swing in sterling, as the mark is under the strict
control of the Reichsbank. The unit is virtually
anchored to the dollar and the Reichsbank pays
little or no heed to the movements of either sterling
or the Continental exchanges. Despite the fluctuations in other exchanges for many weeks, the Reichsbank has maintained its dollar quotation unchanged.
It advances or lowers its rates on Paris, Amsterdam,
or Zurich as occasion demands. The practical effect
of this polciy is to tie the mark to the dollar. President Luther of the Reichsbank has protested to the
Government against the imposition of quotas, especially on agricultural imports. Dr. Luther's view
seems to be that Germany's saving of foreign exchange through reduction in agricultural imports will
be more than offset by loss of exchange by reason
of diminished exports,• if, as is expected, foreign
countries, should retaliate. It is reasoned that
retaliatory measures would threaten Germany's export surplus, thereby affecting the Reichsbank's
reserves and compelling the Reichsbank to impose
still more stringent restrictions on foreign remittances, from which foreign holders of German bonds
and short-term credits might suffer. The quotas
threaten to bring Germany into serious tariff conflicts with Italy, Holland, Denmark, and other
countries. The quotas have encountered stiff resistance in Italy, which has already been expressed
in a decree forbidding the Bank of Italy to furnish
foreign exchange to importers of German goods.
German industrial leaders and bankers are urging
upon Chancellor von Papen the necessity of changing
his ideas in this respect.
The London check rate on Paris closed at 86.30
on Friday of this week, against 87.78 on Friday of
last week. In New York sight bills on the French
center finished on Friday at 3.93% against 3.9231
on Friday of last week; cable transfers at 3.93%
against 3.929/8, and commercial sight bills at
3.933/ against 3.92. Antwerp belgas finished at
13.913' for bankers' sight bills, and at 13.92 for cable
transfers, against 13.88 and 13.883/2. Final quotations for Berlin marks were 23.79 for bankers' sight



Oct. 22

1932

bills and 23.793/2 for cable transfers, in comparison
with 23.773/ and 23.78. Italian lire closed at 5.113 t
,
for bankers' sight bills and at 5.119 for cable
%
transfers, against 5.113 and 5.1178. Austrian
2
2
schillings closed at 14.103/, against 14.103/;exchange
A
on Czechoslovakia at 2.961 , against 2.963/8; on
Bucharest at 0.601 , against 0.603; on Poland at
4
11.243/, against 11.243/, and on Finland at 1.50,
2
2
against 1.503/2. Greek exchange closed at 0.60 for
bankers' sight bills and at 0.603/ for cable transfers,
2
against 0.60 and 0.603/.

EXCHANGE on the countriesofneutral during the
war, with the exception
Spanish pesetas,
have been subject to wide fluctuations this week as
a result of the drop in sterling exchange. The
Scandinavian currencies, which are practically anchored to sterling exchange, all went off sharply on
Tuesday and Wednesday, and of course made a
correspondingly slight recovery when the pound
moved up fractionally on Thursday. The Swiss
and Dutch rates are firmer, as the markets in these
two countries are closely identified with financial
movements affecting the London market. The
present fluctuations in the neutral exchanges are of
temporary significance and as the market readjusts
itself the main factors affecting these currencies will
assert themselves. For the time being and until
after the middle of January, exchange is normally
against the neutral countries and in favor of New
York. If sterling should remain steady for a period
and the London investment market should show
improvement, a flow of funds from Switzerland and
Holland to London may be expected. Swiss and
Dutch funds are now coming to the New York
market, but not in such volume as in July and
August. Spanish pesetas are steady and seem not
to have been affected by the course of sterling or the
other European exchanges.
Bankers' sight on Amsterdam finished on Friday
at 40.29 against 40.183' on Friday of last week;
cable transfers at 40.30 against 40.19, and commercial sight bills at 40.25 against 40.12. Swiss
francs closed at 19.333 for checks and at 19.34 for
4
cable transfers, against 19.31 and 19.3131. Copenhagen checks finished at 17.68 and cable transfers
at 17.683/ against 17.863/b and 17.87. Checks on
Sweden closed at 17.583 and cable transfers at
17.59 against 17.683/ and 17.69; while checks on
Norway finished at 17.183' and cable transfers at
17.19 against 17.32 and 17.323. Spanish pesetas
closed at 8.203 for bankers' sight bills and at 8.21
for cable transfers, against 8.18 and 8.183.
XCHANGE on the South American countries
presents no new features of importance. For
the past few weeks exchange on both Buenos Aires
and Rio de Janeiro has been displaying a better tone.
All the South American units are hampered by
exchange restrictions and most of them are further
impaired by moratoria. The improvement in Brazilian exchange is a result of the cessation of the
embroglio between the State of Sao Paulo and the
Federal Government, which threatened civil war.
Recent dispatches from Rio state that the Banco do
Brazil has remitted approximately $1,075,305 to
London and New York under the foreign debt
funding plan and approximately $461,332 to Rothschild of London for liquidation of a credit granted
to the Government of former President Washington

E

Volume 135

Financial Chronicle

2709

UR,SUANT to the requirements of Section 522
Luis, which was overthrown in 1930. A totaliof
of the Tariff Act of 1922, the Federal Reserve
approximately $11,651,000 of the Brazilian foreign
Bank is now certifying daily to the Secretary of the
debt has been amortized thus far this year. ConTreasury the buying rate for cable transfers in the
fidence in the business situation in Argentina is
countries of the world. We give below a
greatly improved. According to Buenos Aires dis- different
for the week just passed:
patches, important business interests there are record
RESERVE
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL
endeavoring to arrange a revolving credit of $200,BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
OCT. 21 1932. INCLUSIVE.
OCT. 15 1932 TO
000,000 with American bankers to be used exclusively
the payment of interest and sinking fund obligafor
Noon Busing Rate for Cable Transfers tn New York.
Value In United States Money.
tions on Argentine loans in the United States. New Country and Monetars
Oct. 15. Oct. 17. Oct. 18. Oct. 19. Oct. 20. Oct. 21.
about
York bankers declare that they know nothing
$
$
$
$
$
$
EUROPE139437 .139437 .139562 .139437 .139437 .139437
such a project. Agitation continues both in the Austria,schilling
.138869 .138942 .138811 .138896 .139088 .139092
Belgium, belga
007200
Argentine Congress and in business and industrial Bulgaria. lev ia, krone .029602 .007200 .007200 .007200 .007200 .007200
.029605 .029604 .029609 .029604 .029606
on of payments on the Czechoslovak
178523 .178446 .178008 .175830 .176038 .176192
Denmark, krone
organizations for a suspensi
England, pound
3.444250 3.445375 3.410458 3.390416 3.394250 3.396833
sterling
foreign debt. American business interests in Argen- Finland. markka
014860 .014850 .014850 .014866 .014816 .014833
.039260 .039276 .039233 .039281 .039313 .039340
handicapped by the restrictions France.franc
tina are severely
.237650 .237721 .237785
.237639 .237667 .23756
Germany. reichsmark
.006008 .006010 .006014 .006016 .006001 .006001
which the Government has placed on exchange Greece, drachma
.402053 .402321 .401785 .402285 .402514 .402632
Holland, guilder
.174500 .174500 .174500 .174500 .174500 .174500
operations so that it can buy up dollar drafts and Hungary, pengo
.051173 .051168 .051143 .051127 .051133 .051125
Italy, lira
.173130 .173130 .172483 .171230 .171346 .171461
Norway, krone
meet payments on the American loans without ship- Poland. zloty
.111710 .111810 .111710 .111810 .111710 .111710
.031200 .031266 .031066 .030800 .030733 .030800
more gold from the gold conversion office. Portugal, escudo
ping
.005985 .005985 .005983 .005966 .005968 .005966
Rumania. leu
.081825 .081835 .081776 .081814 .081921 .082010
peseta
Alberto Hueyo, Minister of Finance, is opposed Spain. krona
.176938 .176907 .176046 .174561 .174730 .175208
Sr.
Sweden.
.193089 .193210 .192888 .193139 .193216 .193301
Switzerland, franc
g of any kind at this time. He argues Yugoslavia. dinar-- .013475 .013675 .013250 .013425 .013250 .013350
to borrowin
ASIAthat the country must solve its present financial China315208 .315625 .313541 .313333 .315000 .311458
Chefoo tad
310208 .310208 .307291 .307916 .309583 .306041
Hankow tael
problems by its own resources and believes that the
.302656 .302968 .301093 .300937 .302187 .298906
tael
Shan:hal
.321458 .321458 .318541 .319583 .321250 .317708
Tien••in tael
Government can take care of all its obligations
.228750
.230468 .229843
Hong Kong dollar- .231093 .230937 .212187 .211562 .230000 .210000
.211875
is
Mexican dollar.- .213437 .214375
until the end of the year and that if the harvest
Tientsin or Peiy
.213750 .215416 .212500 .211666 .212500 .209583
dollar
good and the country can dispose of its grain, the
.210416 .216250 .209166 .208333 .209166 .205833
Yuan dollar
.260235 .260735 .258850 .255450 .256050 .256375
India, rupee
general situation will improve.
234750 .235125 .234875 .234250 .232250 .231250
Japan. yen
.398125 .393125 .393750 .394375
Argentine paper pesos closed on Friday nominally Singapore(8.8.) dol .399375 .400300
NORTH AMER..920520 .932187 .917656 .918020 .917395 .919270
at 25% for bankers' sight bills, against 25% on Canada, dollar
999046 .999112 .999112 .999112 .999112 .999112
Cuba, peso
.313500 .312666 .312166 .311833
transfers at 25.80, against Mexico, peso (silver) .313666 .313833 .915625 .915124 .915000 .916625
Friday of last week; cable
.918375 .930760
Newfoundland. dol
SOUTH AMER..585835
25.80. Brazilian milreis are nominally quoted at 7.45 Argentina. peso (gold) .585835 .076175 .585833 .585835 .585835 .585835
.076175 .076175 .076175 .076175
076175
milrels
060250 .060250 .060250 .060250 .060250 .060250
bankers' sight bills and 7.50 for cable transfers, Brazil,peso
for
Chile.
473333 .473333 .473333 .473333 .473333 .473333
Uruguay. peso
.952400 .952400 .952400 .952400 .952400 .952400
against 7.45 and 7.50. Chilean exchange is nominally nninrnhta nn
.
quoted 63/g, against 6 8 Peru is nominal at 18.00,
HE following table indicates the amount of gold
against 18.00.
bullion in the principal European banks as of
countries shows Oct. 20 1932, together with comparisons as of the
XCHANGE on the Far Eastern
no new developments from recent weeks. corresponding dates in the four previous years:
Chinese units are steady, as silver has been quoted
1928.
1929.
1930.
1931.
1932.
Banks of%
£
steady during the week in New York at 273 cents.
£
£
£
£
166,736,795
140,416,047 137.035,232 160.125,660 133.021,044
England_
Japanese yen have fluctuated within narrow limits. France a _ ___ 661,210,146 497,236,786 404,538,833 318,168,636 246,010,811
_
52.773.850 101,533,750 103.458,250 119.754.200
36,672,650
Germany!).
Seasonal factors are now favoring yen exchange. Spain
99,029.000 120.599.000 104.358,000
91,071.000
90,289,000
54,221.000
55.932.000
57.221.000
58,486,000
62,393.000
36,249.000
36,911.000
Japanese exports to Manchuria and Mongolia during Italy
32.962 000
66.521,000
86,226.000
Netherlands
23.082.000
29,312.000
36,922.000
72.431.000
74,157,000
Nat. Belg'm
18,510.000
August amounted to yen 12,000,000 and imports Switzerland 89,164,000 42,684.000 25,588 000 21.306.000 13,209.000
13.431.000
13,449.000
11,032,000
11,442,000
9,605.000
9.584 000
9.565.000
9,118,000
from these regions to yen 4,000,000. This represents Sweden_ _
7,400,000
Denmark
8,163,000
8,153.000
8,140.000
6.558.000
7.911.000
Norway
an increase of 95% in exports and a decline of 35%
3 1,044,946,868 949.074.243 831,875,930 799,898.806
Tot. week 1,267,280,84
799.833.901
in imports, as compared with the previous year. Pr., work 1 2511 ant 7551.032 983 IRI 937 681.267 831.284.373 the new form
France as reported in
a These are the gold holdings of the Bank of Germany are exclusive of gold held •
d to yen
Exports to China during August amounte
of statement. b Gold holdings of the Bank ofis £3,167,650.
year
17,000,000, yielding an export surplus of yen 12,- abroad, the amount of which the present
months of the year the
000,000. For the first eight
New International Groupings in Trade and
export surplus has amounted to yen 54,000,000, a
Politics.
decrease of yen 14,000,000 from the 1931 period.
ement on Tuesday, at the reopening
The announc
During September Japanese exports to Central
required six months' notice
were 3% above the 1931 month. Those to of Parliament, that the
China
been given for terminating the commercial
Northern China increased by 1.3%, and exports to had
1930, with Soviet Russia, folSouthern China declined by 73%. Imports from agreement of April 16
lowed on Wednesday by the approval by the House
Northern China increased by 8%, from Southern
291 to 69, of a motion auChina they declined by 47% and from Central China of Commons, by a vote of
of India thorizing consideration of some twenty-two tariff
by 39%. Now that the Nationalist party
made necessary by the imperial trade agreehas lifted the embargo on British goods, it is believed changes
must of necessity ments concluded at Ottawa, marks the first steps
that the Japanese exports to India
taken by the British Government to give effect to
show a decline.
preference and imClosing quotations for yen checks yesterday were the new imperial tariff policy of
port restriction adopted by the Ottawa Conference.
A
23 3-16, against 231 on Friday of last week. Hong The
denunciation of the Russian treaty, it was exKong closed at 23@23 5-16, against 23%@23 7-16;
plained by J. H. Thomas, Secretary for the Domin/
Shanghai at 30@30 5-16, against 30%@3058; Manila
5
5 against 49%; Singapore at 39%, against ions, was made necessary by the fact that the treaty
at 49%,
contained a most-favored-nation provision which
8
40%; Bombay at 25%,against 26 1-16, and Calcutta
"would stand in the way of a prohibition which might
at 25%, against 26 1-16.

P

T

E




2710

Financial Chronicle

Oct. 22 1932

in conceivable circumstances be necessitated by the that the agreements would deprive
Great Britain of
Ottawa obligation." The prohibition referred to is freedom of action in case the
Economic Conference
the one which provides that if either party to the were to call for a general remova
l of tariff impediagreement between the United Kingdom and the ments to trade. Prime Ministe
r MacDonald, in reDominions "is satisfied that any preferences granted ply, insisted that
"neither protection nor free trade
on any particular class of commodities are likely to can cure unemployment
," since unemployment is due
be frustrated by reason of maintenance of prices for to "the breakdown
of the present social system" and
such commodities through State action on the part is found in every
country regardless of the tariff arof a foreign country," the Government so satisfied rangements. "I
am not afraid," he declared, "to
will undertake to "prohibit the entry from such face the World
Economic Conference with these
foreign country of such commodities for such time Ottawa Confere
nce agreements, but the failure of
as may be necessary to maintain the preferences" to Ottawa would have
made a world conference imwhich the Ottawa Conference agreed. It was in this possible." Mr. MacDon
ald was doubtless correct in
form that Premier Bennett of Canada secured ap- holding that tariffs
alone are not responsible for
proval of his strong opposition to dumping.
unemployment, but his remarks threw no light upon
Mr. Thomas made it clear that the British Govern- the question of how
Great Britain, with a new imment, in denouncing the treaty, had no intention of perial tariff system more
highly and deliberately
ending British trade with Russia, and announced protective than the Empire
has ever known, proposed
that the Russian Government had been informed of to co-operate in a general
lowering of world tariff
Great Britain's readiness to negotiate a new agree- barriers if the Economic
Conference should declare
ment "at the earliest moment." Obviously, how- for such a policy.
ever, if a most-favored-nation privilege stands in
The opposition of Laborites and free trade Liberals
the way of continuing the present trade agreement is quite insufficient to
prevent the completion of the
with Russia, other commercial treaties containing Government progra
m, as the vote in the Commons
the same privilege may have to be changed if Great on Wednesday, and a
similar but much larger vote of
Britain's tariff policy is to be adapted to the Ottawa 452 to 85 on Thursday,showed
. The Labor party, inrequirements. A policy involving new imperial deed,seems destined to move
still farther to the Left.
preferences and new limitations upon imports from It has not only notified Mr.
MacDonald, Mr. Snowforeign countries can not, of course, be carried on den and Mr. Thomas that
they need not expect to be
under existing commercial treaties if its applica- received back into party
fellowship after their
tion is found to work discrimination. That such apostasy in serving in
the National Government, but
changes, possibly on a considerable scale, are con- at its recent party
conference declared outspokenly
templated is evidenced by the announcement from for a Socialist
Britain. The resignation of Arthur
the Foreign Office, coincidently with Mr. Thomas's Henderson on Tuesda
y as party leader, and the constatement in the House of Commons,that the Danish, sequent elevati
on of George Lansbury to the leaderSwedish and Norwegian Governments had been in- ship, does little
more than give official form to what
vited to send delegates to London to negotiate new for some time has
been a fact. Mr. Henderson was
tariff agreements, and that the invitations had been defeated in the general
election last October, but was
accepted and negotiations would begin early in No- continued
as party leader in the expectation that a
vember.
by-election would offer him an opportunity to
reWhether, in view of the Ottawa agreements, it will turn to the House
of Commons, but no such opporbe possible for either the United Kingdom or the tunity has present
ed itself, and in his prolonged
Dominions to adhere any longer to the most-favored- absence at Geneva
as President of the Disarmament
nation principle is not quite clear. It may still be Conference
the duties of party leadership have defound practicable so to adjust imperial tariffs and volved upon Mr.
Lansbury. The new leader, howthe trade agreements based upon them as to preserve ever, is
by no means to be counted on to go the
a general tariff structure in which the most-favored- Sociali
st lengths that the party now demands, and
nation principle will be recognized, but the practical a further
change may be looked for. In any case,
.effect of the Ottawa policy, it would seem, will be to
national Socialism, as distinguished from the Socialencourage, if not actually require, special agree- ism
that is or hopes to be international, is not comments with foreign countries in which the principle, mitted
to free trade, so that the free trade banner
in the comprehensive form in which it now applies, is
now left to be carried by the handful of free trade
will virtually disappear. If that course is followed,
Liberals.
we shall have, as far as the British Empire is conIt was evident, before Parliament met, that
the
cerned, a group of tariffs based in each case upon tariff
issue would be made prominent in the Ecospecial bargaining, each party obtaining or concednomic Conference. In a speech before a
body of
ing something of special advantage to itself, someWestphalian industrialists at Paderborn on Sunday
,
what in the manner, perhaps, of the reciprocity
Chancellor von Papen declared that "our
creditors
treaties in which the United States was at one time abroad
can reckon on repayment of Germany's
interested.
foreign indebtedness only if they are prepare
d to take
Whatever course imperial tariff-making may take, German
commodities in payment, and this
prehowever, it is difficult to see how it can fail to em- supposes
they are willing to open their trade
frontiers
barrass the general reduction of tariffs which the to our goods.
To expect repayment of debts while
world so greatly needs for its economic recovery, confronting us
with trade barriers suggests both
and which the Economic Conference, whose meeting crass and indefen
sible violation of all economic
is planned for November, is expected to consider. logic." The German
contention, he said, would be
The point was stressed in the debate in the Commons pressed upon the Econom
ic Conference at London.
on Tuesday. Sir Herbert Samuel, who recently reImportance attaches to this latter stateme
nt besigned as Home Secretary because of his opposition cause the agenda of the
Conference is to be drawn
to the Ottawa agreements, reiterated his contention up at a preliminary conference
at Geneva—a meet-




Volume 135

Financial Chronicle

2711

and four upon what he believes to be Germany's rights may
ing for which two American delegates
It serve to cut a knot which the diplomacy of the former
State Department advisers have already set out.
the Allies has proved helpless to untie.
reject
is difficult to see how the conferees can
demand, nor how they can act upon it withGerman
The Measure of a "Span of Life."
in which
out paying attention to some other matters
An Italian physician has, after twenty years of
Germany has come to be an important if not a deconcocted an elixir which is said to lengthen
termining factor. The German Government has re- study,
the span of life ten years, and his patrons number
fused to discuss, at either London or Geneva, its
of the wealthiest persons in the world. The
claim to arms equality, and M. Herriot's attempt to some
wealthiest, many of whom struggled long
dispose of the question by working it into an elabor- world's
and labored hard to accumulate vast fortunes and
ate solution of disarmament and French security has
them, no doubt desire a new lease of life
obviously failed. Unless the demand for arms equal- to preserve
to enjoy the fruit of their toil as long as
in order
ity is granted, there is still the danger that Germany
human nature.
withdraw formally from the Disarmament Con- possible. That is
may
But the man who does not enjoy his work whether
ference as it has already virtually withdrawn in
a prospective magnate engaged in amassing a
fact, while if something practical is not done about he be
is grave large fortune, or the humble toiler who is dependent
tariffs and other trade restrictions there
day's labor, is missing the best part of
doubt about Germany's ability or willingness to pay upon his
The exhileration of success in any worthy enits foreign debts. Politics and economics, in other life.
joy difficult to surpass except by deeds
words, are here inextricably bound together. It was deavor is a
deserving beneficiaries.
reported on Wednesday that M. Herriot was ready of kindness to
The days of all men are numbered,and many of the
to accept a substantial reduction in armaments if
brilliant die young. It is given to a coma way could be found to prevent the grant of Ger- most
to live, as did Edison, to witness the
many's demand for equality from opening the way paratively few
benefits to mankind which have grown out
to an armament increase, but although there is a great
considerable body of opinion in France that agrees of their life's work.
Altogether apart from the magic influence of any
that the German demand must in some way be con, the span of life has really been
ceded, no practical method of achieving that result elixir, however
ned in other ways, if length of living may be
which would leave Germany's armaments where lengthe
measured by accomplishment. Each age has brought
they now are has as yet been brought forward.
its practical magicians and the Twentieth Century
The situation is further complicated by the report,
of sages who have existed
which persists in spite of semi-official denial, that is endowed with the work
time ever since there was "Light."
the visit which M. Herriot is expected to pay to from time to
to look back a few
Madrid on Oct. 31 is connected with plans for a Americans of to-day have only
this continent was inFranco-Spanish alliance. The suggestion that Spain centuries to the time when
mode of living was
might agree to let France use the Balearic Islands, habited by savages whose crude
level of wild beasts
little above the
in the Mediterranean, as a naval base in the event advanced but
perhaps, only a political trial balloon, but which shared with them the primeval forests.
of war is,
Then came the white man to blaze the way for
in the present tangled state of European politics
which was to discover and deit is hardly possible for the European mind to dis- modern civilization
the vast and rich resources which
sociate a French approach to any country from the velop and utilize
y now known
persistent effort of France to secure some kind of a Nature had bestowed upon the territor
States of America.
security compact. Security, of course, envisages as the United
The arduous tasks of the early settlers, so well
war, and the impotence of the disarmament negotiahardships, were necessary
tors is due primarily to the obvious fact that no one performed amid great
preparation for what may well be termed the
of the principal Governments represented in the Dised by the candle, the
armament Conference is taking peace for granted, mechanical age, first evidenc
bumpy corduroy road, the canal
or actually expecting the Kellogg-Briand anti-war domestic loom, the
rt freight and packets for paspact to be of any real avail if war is threatened. With boats to transpo
a horse or a mule
"When talking of disarmament prepare for war" sengers, moving no faster than
habitations, the scythe
might \ell be written above the door of the assembly could walk, the log houses for
and cradle for the reapers and crude flint-lock firehall at Geneva.
arrow of the Indian.
We must repeat, what has been said many times arms to displace the poisonous
brought the oil lamp,which
Discovery of petroleum
before, that world tariffs, the American tariff ingenerated from
ought to be drastically lowered, and that served a good purpose until gas was
cluded,
by pipes for illumination of
until they are lowered there can be no general busi- coal and distributed
The mechanical age
ness recovery. Tariffs alone are not responsible for homes, stores and streets.
ity than which no better means of
the world depression, but more than any other single brought electric
It brought also a
factor they have tended to aggravate and prolong it, illumination has been found.
on in machinery which is still being developed
and until international trade is allowed to move with revoluti
s and to make them
rational freedom the depression will go on. It is to make better and new product
bound up at present quickly. It brought the steam engine for navigating
unfortunate that the question is
and seas and for pushing the steam horse
with that of disarmament and the determination of the rivers
to the Pacific, aided later by the
Germany to get rid of treaty restrictions, but if from the Atlantic
not only for the railroads but
Chancellor von Papen, by keeping Germany's situa- use of electric current
supplying new power generated by water and
tion to the front, can achieve both arms reduction for
distributed wherever needed by wires. No bird can
and tariff reduction, the accomplishment will be a
or so fast as an aviator. Huge and swift
universal gain. German diplomatic methods have fly so far
steamships navigate the seven seas, while suboften been "full-fisted" and sometimes bungling, but
sturdy insistence marines share the ocean depths with whales.
it is possible that the Chancellor's




2712

Financial Chronicle

Oct. 22 1932

To the mechanical age we owe the development in affairs. To his surpri
se, they were not only willing
communications which gave us first the telegraph to talk, but
seemed really proud of what they were
and cable, then the telephone and now the wireless, doing. They even appea
red anxious to prove their
which amplified by the radio, serves as a means for figures of costs
from their book records.
disseminating knowledge and entertainment to milThe facts which were disclosed are of great interest
lions of homes and by broadcasting puts this country for the light they
throw upon trucking methods and
in almost instantaneous communication with people upon the stand
ard of employment which may be
across the seas. It has given us the automobile for uncovered in that
industry, in its present unreguprivate transportation over supurb highways and lated condition.
the tractor which aids the farmer, whose arduous
It seems that the brothers were elderly men, and
labor had already been modified by the mower and physically incapable,
themselves, of driving trucks
reaper, the thresher and other agricultural imple- for long distances and
long hours. They operate a
ments. Hand plows, drawn slowly first by oxen and small gasoline station
which enables them to purthen by horses, have almost disappeared.
chase fuel at wholesale. Earlier in life they had
In the mechanical line there has been perhaps no had some experience in
the retail fruit business.
more marvelous advancement than that of the print- They were well aware, also,
of the cheapness of used
ing press. The old Franklin and Washington hand trucks and the existence
of the great army of the
presses printed only one side of a sheet of paper unemployed. In these factor
s they believed they
which had to be placed upon the type by hand and sensed an opportunity.
then removed for drying before a second impression
Accordingly the brothers purchased,for very little
might be made upon the reverse side of the paper. It money, two second-hand trucks
, one of 2 and the
/
1
2
would be impossible to publish the editions of the other of 31 2 tons capacity.
/
To strengthen these
daily newspapers and those of the magazines to-day vehicles for the extremely
heavy overloads they exwithout a modern press.
pected to haul, they fitted each with an extra pair
Inventive genius alone is not sufficient to benefit of wheels.
the world as it is organized to-day. Valuable disTheir town is located in a farming section.
In
coveries would lie dormant without capital to de- the neighborhood are many young
farm hands out
velop them and make them available for human of work and with no prospect
of any. Numbers of
needs. Money has been spoken of as the sinews of them, however, can drive cars
and hold drivers'
war. Capital is just as essential for the promotion licenses. The distress of
agricultural prostration
of material welfare in times of peace. The aid of has supplied the brothers with
their most important
bankers and private investors is required in all ma- resource, the ability to utilize
destitute labor.
terial steps of progress. The United States has been
It is their practice to engage, as driver
s of their
blessed with financiers who knew how and with trucks, young farm boys who are
willing to make the
investors who possess the pluck to risk a part of their journey for no money wages at
all, merely meals and
fortunes in putting into practical use the discoveries lodging on the way and the
supposed opportunity
of inventors. The triple combination has worked to see something of Florida and
the South. One of
wonders.
the brothers accompanies each truck,
but does little
Men are still studying, still experimenting in every or no driving. The round-trip
journey is 2,400 miles.
line of endeavor to bring greater perfection.
It is made in five days, or an average
of 480 miles
With all the marvelous advantages of the Twen- per day. This is accomplished
by continuous drivtieth Century it is up to each individual not only to ing from three o'clock in the
morning to nine o'clock
get the full measure of enjoyment out of life each at night, with the boy at the
wheel practically all of
day but to help to build a still greater and better the time.
world for future generations and if he works inIn order to avoid the payment of
gasoline taxes
dustriously and honestly on these lines his energy in the Southern States, the brothe
rs carry sufficient
will bring contentment and happiness during the gasoline with them for the round
trip. To make this
years allotted to him and he will enjoy a well rounded-. possible, they attach drums
permanently to the
out life without any artificial elixir.
truck bodies so as to form large suppl
ementary fuel
tanks and thus provide a sufficient
supply for the
Trucking Methods—Board and Lodging Wages. entire journey going and coming.
The 21 2-ton truck is loaded with six
/
tons of oranges
The Railway Employees' and Taxpayers' Associa- and grapefruit.
The 31 2-ton truck carried eight
/
tons.
tion of Virginia recently issued a statement disclos- The
trucks are operated through eight
States, but
ing some very interesting facts concerning "boarding hear
the license plates of only one.
and lodging" wages paid to destitute labor in unreguThe motor expert checked all the
items of cost in
lated motor trucking.
this extraordinary business. He found
the estimate
As the story goes, two brothers were discovered of
not over eight cents per mile was
correct, includin one of the Northern States who were regularly ing
depreciation and an allowance which
the brothers
supplying small merchants and fruit stands with made
of $20 each per week for their own
wages. No
Florida oranges and grapefruit at prices which
doubt this is cheap transportation, but
is it the sort
allowed their customers to undersell even the chain
of business the American public
would like to see
stores, despite the latters' immense advantages
in encouraged?
large-scale purchasing. It was reported that the
What can be said of the supposed
American standbrothers had devised an unusual scheme of motor
ards of living, and of the dignity of
American labor,
truck operation which enabled them to cut their
when a business depends for its
profit upon the
costs to a phenomenally low figure, said to be not abilit
y to hire young men for board
and lodging
over eight cents a mile.
wages and then work them 18 hours
a day at the
A motor expert investigating the situation ex- trying
, nerve-racking and dangerous trade
of driving
pected to find the brothers reluctant to discuss their a greatl
y overloaded truck at high speed
s?




Volume 135

Financial Chronicle

The lodging averages less than $1 a night, and the
meals less than 40c. each. No claim is made that
the hiring of truck drivers for board and lodging
wages is a general or even a frequent practice. The
fact that it is done at all merits widespread attention. It is well known that there are no recognized
standards either of pay or working conditions in
the trucking business, and that both are, for the
most part, on far lower levels than the wage scales
and the conditions of employment of railroad
workers.
The boys who drive the trucks have considerably
less than six hours' sleep per night during the five
days they are on the road. Can it be supposed that
is sufficient rest for safe driving?
Is it just, or in the public interest, that established
merchants, selling fruit carried to market by agencies of transportation which pay fair wages and
work their employees only reasonable hours, should
be subject to competition based on the employment
of destitute labor in transportation service?
Is it just, or in the public interest, that railroad
employees, or the railroads themselves, should be
exposed to such competition?
The owners of these two trucks use the highways
of seven States (one a border commonwealth and
six in the South) without paying a single cent for
that privilege, as they pay license fees in only one
State, and buy their gasoline in the market of that
State, where gasoline taxes are low.
Are Railway Valuations of Any Use?
A great deal of doubt has been expressed concerning the wisdom of continuing the valuation of railway properties, the duration and cost of which has
so far exceeded all expectations both to the railways
and to the Government. Those who are fully conversant with the work maintain that this colossal
task which was imposed upon the Inter-State Commence Commission is not so important now as it was
thought to have been when the work was started.
They maintain that the railways have but one real
question: Are they able to pay to the investors in
their properties a reasonable interest upon the money
they have invested to serve the public; are they able
to earn a surplus over that fair return; and can they
expect to continue to earn such a surplus as will
justify prospective investors in putting their money
into new and improved facilities in preference to
investing it in other domestic enterprises or in foreign securities?
Whether the valuation is determined at one figure
and the rate of return earned upon that valuation
is low, or whether the valuation is placed at a lower
figure and the return earned is high is, after all,
but a mathematical equation; the practical question
is: What are the railways actually able to pay by way
of return upon their existing securities, and is their
margin over that payment sufficiently attractive
each year to draw to them the new capital from investors, by whose voluntary acts alone can be secured
the capital the railways require?
When legislators and railway executives can confront each other and actually realize that their fundamental purpose in this situation is identical, the
carriers will be able to brush aside much of the theory
and many of the disagreements which still confront
them. It is quite apparent that such fair returns




2713

cannot be realized or maintained without protecting
railway rates from unwise adjustments or from becoming the football of unsound economic theories.
The facts are that no possible rate reductions can
be made in one direction without making increases
on other traffic so as to preserve fair returns. No
reductions can be made that will bring relief sufficient to offset the results of world-wide laws of
supply and demand on commodities; nor make possible the maintenance of wages or profits which are
out of line with the total costs and prices for which
similar commodities can be produced and sold from
other communities.
It is unsound economically to expect the regulation of railway rates to act as a leaven of prosperity
between different industries and as between different
elements in the same industry. Yet that is essentially the principal that has been advocated in the
past with respect to pleas for special treatment of
industries suffering from depression brought on,
not by rates, but by causes far removed from transportation charges and largely inherent in the industries themselves. A sound theory is that railway
rates should at all times be based upon a consideration of the cost to the railways of services performed
and upon the value to the industries of such services
rendered.
Who Should Pay for the Highways?
In an address made last Wednesday before the
annual convention of the Associated Traffic Clubs
of America, M.J. Gormley, Executive Vice-President
of the American Railway Association, presented a
summary and criticism of the various programs of
public policy relative to highway transportation.
After a very comprehensive review of some of the
more important arguments in support of each of
the general policies—to regulate and not to regulate
highway transportation—Mr. Gormley referred to
the question as to who pays for the highways. That
is, who is paying and who should pay for the splendid
highways which have been built.
In a brief discussion of the situation he stated that
our highway system divides iself into three parts
on the basis of political jurisdiction. They are:
1. State highways, so-called, totaling about 324,000 miles.
2. Other highways, sometimes called "local" highways,
totaling approximately 2,700,000 miles.
3. City streets, totaling about 260,000 miles.

• All are used by'motor vehicles to a greater or less
extent. In total they constitute the roadway for
highway transportation.
The policy advocated by the automobile manufacturers, and endorsed and supported by the United
States Bureau of Public Roads, is that the cost of
the State highways, about 10% of the total mileage,
should be borne by motor vehicles through license
fees and gasoline tax receipts and that the costs of
other roads and city streets should be paid out of
funds raised by general taxation, and as to other
rural highways, particularly, out of taxes on land.
Mr. Gormley asserts that this can only mean that
the motor vehicles which may never travel on the
so-called State highway must contribute to its construction and maintenance, and, further, that those
owning such motor vehicles must pay, in addition,
for the city streets and local roads on which they
do not operate. For instance, taxicabs and local delivery trucks in cities contribute to the construction

Financial Chronicle

Oct. 22 1932

Economic Sanity Again in the Picture.
and maintenance of the State highway,although they
(WALTER PARKER in "The Cotton and Cotton Oil Nevis," Oct. 8 1932.1
section cars of the
never use it. Even the gasoline
railroads which have flanged wheels and run nowhere
Public hostility to government meddling with economic
except on railroad tracks, contribute through gaso- processes, to tax-supported and tax-free government compeline taxes to the State highway.
tition with business, to waste and extravagant spending by
In addition, he stated that the tax which the government, and to costly nostrums is increasing rapidly,
farmer actually pays on gasoline used in his tractor and shows every indication of soon becoming just as direct
or in his gasoline engine, which operates his power and just as acute a force for change as has developed in
plant, goes largely to the State highway. His flivver, the matter of prohibition.
Obviously, a new character of militant leadership is develwhich may seldom feel the smooth surface of the
oping, and after nearly three years of truth evasion, the
highway, is a daily contributor thereto. Not only
should there be in justice a reapportionment of public is now beginning to get the facts underlying the ecospecial motor vehicle taxes, so that there may be nomic problems confronting the country.
Nightly, powerful radio broadcasting stations carry direct
payment in accordance with use, but in any form of
and fearless statements from responsible men; daily the
regulation and taxation a clear distinction should
newspapers carry eye and mind-opening editorials. Pambe made between those who use the highway in perphlets, and even books, are beginning to direct public attensonal travel and the farmer or other producer who
tion to the evils of waste and extravagant spending by
uses the highway as an incident merely to his busi- government, and to the most vicious of all bureaucratic
ness, and those who have engaged in the business of activities, the devastating competition with wholesome busitransportation on the highway. The farmer may use ness which certain governmental bureaus are carrying on.
the highway but occasionally. The man who uses
All of which is a most encouraging sign, and an indication
the highway in the transportation business uses it of a return to public reliance on economic sanity.
daily to the utmost extent possible. A license duty
Recently, Colonel Robert R. McCormick, publisher of the
as applied to one should not be the same as the Chicago "Tribune," by pamphlet and by radio broadcast,
license duty applied to the other. One who uses the has been telling the public that the high cost of government,
road only as a way to business and incidental to his and the enterprise-blighting effect of huge taxation are at
real business should be taxed much lighter for the the root of the economic distress of the country.
In June 1932 Honorable James M. Beck, former Solicitorprivilege of that use than the one who uses the highGeneral of the United States, first published his book, "Our
way as a business for profit.
Wonderland of Bureaucracy." A second and third edition
By way of determining the source of revenue for were printed in July, and a fourth edition in August. The
these great highways, Mr. Gormley calls attention Increasing popularity of this striking book is one of the
to the fact that in the eight-year period 1923 to 1930, most hopeful signs of the times. The publishers are Macapproximately four billion dollars was raised by Millan & Co. of New York.
Re the Farm Board, here are some excerpts from Mr.
motor vehicle fees and gasoline taxes. This, he
Beck's book:
states, was the total contribution of the motor
". . . The Seventy-first Congress created the Federal
vehicle for use of the roads and streets of the coun- Farm Board, with a very vague statement of its powers
try. Of this amount $3,200,000,000 was spent on and objectives, except that it was to do something to relieve
the so-called State highways, which constitute only the undoubted distress of agriculture. It then provided that
could be made upon the sole
10% of our total highway mileage, not including that disbursements Board. It appropriated to authority of the
Chairman of the
the Farm Board,
in incorporated cities and in densely populated sec- for certain undefined purposes, the sum of $500,000,000.
tions in New England. This, however, was by no Thus, the Congress gave to the Chairman of the Farm Board
means all the funds which were made available for a blank check upon the Treasury of the United States for
the State highways. Almost three billion dollars, $500,000,000, to be spent in the discretion of the Board; and
the folly of this liberal and unprecedented grant of power is
raised from other sources, were appropriated for shown by the fact that the Farm Board,
after creating
them. In the same eight-year period it was pointed subsidiary corporations, then loaned them over $300,000,000
out that local roads had over $5,200,000,000 made to stabilize wheat and cotton by purchases and sales in
available for them, which came from sources other the market.
"Thus Uncle Sam became the greatest gambler in history.
than the motor vehicle.
"The Farm Board is clearly the most
inexMr. Gormley states that this picture is entirely cusable legislative folly in our history. costly and
It was imposed
out of focus. He says, it should be possible, with upon the American people by the farm lobby, and some of
over 25,000,000 automotive vehicles of all kinds using its shady promoters enriched themselves with salaries, comthe highways, to make such vehicles pay for their missions and perquisite as officials of these subsidiary cooperative associations, which may
cost. If such cost has been increased in order to great scandals of this generation. prove to be one of the
accommodate heavy busses and trucks over and
"Tried by the arduous test of experience, this essay in
above what would have been necessary if the roads socialism has failed. The Farm Board sought to minimize
were only for passenger automobiles then he claims speculation, but through its subsidiaries has become the
such heavy vehicles should pay all of the added cost greatest speculator in grain and cotton; it sought to stabilize
them downward until they fell below the
prices
which they have made necessary, in addition to their cost and drove
of production; it sought to prevent a surplus and only
proportionate contribution to the total cost,
increased the surplus; it sought to decrease the planting
In the maze of so-called "new” problems arising r acreage and increased It; it sought to secure orderly marketfrom motor-vehicle transportation, the road question tug, and with the Government as the biggest speculator in
one which can really be called a new wheat and cotton with unlimited means, the orderly
is the onl ymarketling became disorderly past precedent. It sought to prevent
problem. There has never been anything like it in will be pretty sure to
ascribe the Farm Board's existence to
the past and a proper solution of this problem is depression in agriculture and it has contributed to the
badly needed to-day. That solution must be de• greatest depression in our history; it sought to prevent
termined by the public to be served and the solution wasteful methods of distribution and only succeeded in
must be sound and equitable and must be made in imposing upon the people of the United States nearly onefourth of the present governmental deficit. . . .
the light of permanent, public interest and not with
,,Undoubtedly. the culminating folly of this ever-growing
a view to expediency or temporary advantage.
system of bureaucracy is the Farm Board. with its almost




Financial Chronicle

Volume 135

unlimited power to spend $500,000,000 in aid of the American
farmer. It represents bureaucracy in its most indefensible
form.
Where the Farm Board's Money Goes.
the chief complaints made before the Shannon
One of
Investigating Committee by the cotton trade, against Government and Farm Board subsidized merchandising operations, was directed at the character of classification resorted
to, which the cotton trade asserted was often faulty, entailing severe losses to the taxpayer and resulting in unfair
competition.
Joseph A. Airey, cotton merchant of New Orleans, testified that the subsidized cotton co-operative bought a lot
of 58 bales at Lake Providence, La., which was paid for by
the co-operative on its own classification, but which was
later classified by the Board of Cotton Examiners in New
Orleans, which is a part of the United States Department
of Agriculture. The two classifications were:
Bales
Staple—
15-32

114

13-32
11-16
11-32
1 inch
31-32
15-16
29-32
Total
Grade—
Strict middling
Middling
Strict low middling
Low middling
Total

Co-op.
21
27
5
4
1

Gov't
14
6
27
3
2
1
3

1

58

58

11
31
13
3

18
24
12
4

58

58

In purchasing this lot of cotton, the co-operative paid for
21 bales of 1 5/32-inch staple, which the Government classers
said was not to be found in the lot at all.
Mr. Alrey and other merchants, who testified before the
Shannon Committee, asserted that since tax-paying merchants must pay all losses occasioned by errors in classification, they cannot hope to compete where the losses resulting
from such errors in classification as reflected in the above
tables are paid by the taxpayers.
Merchandising by Co-operatives.
Contrary to the intent of Congress, when it gave away half
a billion dollars of the taxpayers' money to the Farm Board,
the Farm Board has been supplying money to the co-operatives to enable them to finance outright purchases of cotton
from farmers or others, thus setting up tax-exempt and
tax-free Government competition with tax-paying business
on a major scale.
No matter how efficient and how economically operated
tax-paying business may be, it cannot sustain unimpaired,
the valuable service to the trade it was designed to render,
when harassed and handicapped by tax-exempt and taxsupported Government competition.
Were it not for the tragic results of the Farm Board's
policies, its experiments in commercial economy would class
with the exploits of Don Quixote.
The mad Spaniard fought windmills,and the deluded Farm
Board fought and attempted to defeat the most nearly
immutable economic law we know—the law of supply and
demand.
Just as the windmills won the battle, so has the law of
supply and demand won, but with this difference: The
aggressive, but misguided Spaniard, carried away the scars,
while the taxpayer, the farmer and the business machinery
of the country carry away the scars of the Farm Board's
attack.
The men of the Farm Board who dictate its policies collect
their salaries and go scot free.
There has never been, in the history of the world, a parallel
to the Farm Board, or to its extravagant and futile waste
of money in a foolish, ill-starred and, from the start, hopeless attempt to reverse the economic wheels of the world.
When the historian writes the story of these times, he
some kind of insanity suddenly developing among the people,
which somehow was associated with the period of extravagant prosperity when every citizen of the United States
either became or thought he was about to become the owner
of a yacht, a country estate and a villa in Southern Europe.
The essential error made by the Farm Board was its
assumption that the farmers' ills grew out of the marketing
system, when, as a fact, they developed from causes not
attributable to that system at all. These causes the Farm
Board has never attempted to treat.




2715

The Farm Board experience will go down in history as
the greatest piece of costly stupidity ever deliberately
brought upon themselves by any people since the world began.
When such Government competition takes the form of an
amateurish experimentation in the field of finely balanced
trade economics, the results are sure to be disastrous.
It is about on a par with the act of a comedian attempting
a role of tragedy by drawing a bolt of lightning on his
own head.

How the Crop Reporting Board of the Department of Agriculture Prepares Its Cotton
Estimates from Month to Month.
The Oct.8 issue of the weekly circular of Munds, Winslow
& Potter contained the following interesting account of how
the Crop Reporting Board proceeds in making its forecasts
of the size of the growing cotton crop from month to month:
"It is our privilege, and, we add, our pleasure, to give to
the cotton trade a clarifying analysis of the activities of the
Crop Reporting Board this season. Owing to the fact that
August weather was decidedly unfavorable, the majority of
the cotton trade expected a reduction in the September
forecast. We might as well confess that as for ourselves we
were somewhat puzzled over the failure of the September
figures to reflect the bad August weather and the evidence
of unusual weevil activity.
"In all justice to the Crop Reporting Board, which we
consider probably the most efficient of all the Government
agencies, we reproduce herewith a letter written by Mr.
Joseph A. Becker, Acting Chairman of the Crop Reporting
Board, to a county agent in Tennessee who evidently had
not been able to understand why the September forecast
failed to show a substantial decline from the August figures.
"In preparing the forecast of yield per acre of cotton, the Crop Reporting
Board considers the August condition as reported in relation to past reported
condition on that date and the final yield per acre, together with some
supplementary information with respect to probable weevil damage available
at the time the report was prepared. In September the Board considers the
September 1 condition in relation to past reported condition on September 1.
In relation to the final yield, again supplemented by such further information of probable weevil damage as is available, but without reference to
the change in condition from August to September. In other words, each
forecast stands on its own merits.
"In making these separate analyses, however, it must be borne in mind
that the September 1 measuring stick of past relationship is an entirely
different measuring stick than the August 1 relationship. For example.
-year average August 1 condition
for the United States as a whole, the 10
-year average September 1 condition is 55.1%.
is 66.4%, while the 10
If one used simple mathematics and divided the Aug. 1 1932 figure by the
-year average—in other words, divided 65.6 by 66.4—the answer would
10
be .988.
"Making a similar computation from September data, in other words.
dividing 56.6 by 55.1, the answer would be 1.027. Therefore, the straight
mathematical relationship of the figures would indicate a yield in 1932
based on the Augustfigures ofslightly less than average; based on September
figures slightly above average. However, in preparing its forecasts on a
State basis and making allowances for probable weevil damage and differences in abandonment, the August and September Board figures for
the United States were practically identicel. although there were important
differences by States.
"Considering the condition figures on the basis of change from August 1
to September 1, which, as previously stated, the Board does not do, it will
be noted that the 1932 condition dropped from 65.6 on August 1 to 56.6
on September 1. The average of past years illustrated by the 10
-year
average condition figures dropped from 65.4 on August 1 to 56.1 on September 1. In other words, during the month of August 1932 the reported
-year average condition
condition declined 9.0 points, whereas the 10
declined 11.3 Points.
"Inasmuch as the decline in 1932 was less than the average decline, if
everything else were held equal, the September 1 forecast should have been
higher than the August 1 forecast.
"As previously stated, however, independent treatment of the data by
States, with allowance for prospective weevil damage and relative abandonment of acreage resulted in bale forecasts by States which, when added.
were practically identical for the United States.
"In August in calculating the probable production in bales, the Board
used the July acreage less the 10
-year average abandonment of 3.0%.
leaving an acreage for harvest of 36,161.000. In the September report
the Board estimated the abandonment on the basis of reports from crop
correspondents at 1.8%, leaving 36.611,000 acres for harvest. This somewhat greater acreage for harvest practically offset the slight reduction
in yield per acre, resulting in a bale forecast about the same on September 1
as on August 1."

We consider this statement a most valuable contribution
to crop reporting literature, says C. T. Revere of Munds,
Winslow & Potter, who writes the weekly letter of the firm.

Railroads Earn at the Annual Rate of Only
0.93 Per Cent on Their Investment During
First Eight Months of 1932.
Class I railroads of the United States for the first eight
months of 1932 had a net railway operating income of
$152,294,615 which was at the annual rate of return of 0.93%
on their property investment, according to reports filed by
the carriers with the Bureau of Railway Economies. In the
first eight months of 1931, their net railway operating income
was $353,908,889 or 2.15% on their property investment.

2716

Financial Chronicle

Property investment is the value of road and equipment
as shown by the books of the railways, including materials,
supplies and cash. The net railway operating income is
what is left after the payment of operating expenses, taxes,
and equipment rentals, but before interest and other fixed
charges are paid.
This compilation as to earnings for the first eight months
of 1932 is based on reports from 167 Class I railroads representing a total of 242,163 miles. Gross operating revenues
for the first eight months of 1932 totaled $2,091,356,725,
compared with $2,928,960,214 for the same period in 1931,
or a decrease of 28.6%. Operating expenses for the first
eight months of 1932 amounted to $1,661,990,574 compared
with $2,266,164,675 for the same period one year ago or a
decrease of 26.7%. Class I railroads in the first eight months
of 1932 paid $197,967,471 in taxes compared with $219,327,549 for the same period in 1931, or a decrease of 9.7%.
For the month of August alone, the tax bill of the Class I
railroads amounted to $24,340,751, a decrease of $3,219,882
under August the previous year.
Seventy Class I railroads operated at a loss in the first
eight months of 1932, of which 21 were in the Eastern,16
in the Southern and 33 in the Western District. The follow
ing further particulars are also furnished:
Class I railroads for the month of August alone had a net railway operating income of $28,368,388. which, for that month, was at the annual rate
of return of 0.97% on their property investment. In August 1931, their net
railway operating income was $56.444,155 or 1.92%.
Gross operating revenues for the month of August amounted to $252.102,172. compared with $364.392.527 in August 1931. a decrease of 30.8%•
Operating expenses in August totaled $189,630.874 compared with $269,362,030 in the same month in 1931. a decrease of 29.6%•
Eastern District.
Class I railroads in the Eastern District for the first eight months In
1932 had a net railway operating income of $120.028.294 which was at the
annual rate of return of 1.50% on their property investment. For the
same period in 1931. their net railway operating Income was $189,204.434.
or 2.37% on their property investment. Gross operating revenues of the
Class I railroads in the Eastern District for the firtt eight months in 1932
totaled $1.078.130.035. a decrease of 26.5% below the corresponding period
the year before, while operating expenses totaled 5822,151.454. a decrease
of 27.3% under the same period in 1931.
Class I railroads in the Eastern District for the month of August had a
net railway operating income of $16,704,438. compared w'th 526,241.377 in
August 1931.
Southern District.
Class 1 railroads in the Southern District for the first eight months of
1932 had a net railway operating income of 57.330.592. which was at the
annual rate of return of 0.34% on their property Investment. For the
same pe.lod in 1931. their net railway operating income amounted to
531.760.676 which was at the annual rate of return of 1.49%. Gross operating revenues of the Class I railroads in the Southern District for the first
eight menthe in 1932 amounted to S252.833.437. a decrease of 30.7% under
the same period in 1931, white operating expenses totaled $215.821,030, a
decrease of 27.4% •
Class I rail oads in the Southern District for the month of August had a
net railway operating income of $843,821, compared with $3,431,432 in
August last year.
Western District.
Class I railroads In the Western District for the first eight months In
1932 had a net railway operating income of 524.935.729 which was at the
annual rate of return of 0.40% on their property investment. For the
same eight months in 1931, the railroads In chat district had a net railway
operating income of 5132.943,779. which was at the annual rate of return
of 2.11% on their property investment. Gross operating revenues of the
Class I railroads in the Western District for the first eight months period
this year amounted to 5160.393.253. a decrease of 30.7% under the same
Period in 1931, while operating expenses totaled *624,018,090, a decrease
of 25.5% compared with the same period in 1931.
For the month oi August alone, the net railway operating income of he
Class I railroad:, in the Western District amounted to $10,820.129. The
net railway operating income of the same roads in August 1931 totaled
$26,771,346.
CLASS I RAILROADS—UNITED STATES.
Month of August.
Decline.
1931.
1932.
8252,102,172 5364.392,527 30.8
269,362.030 29.6
189.630,874
27.560,633 11.7
24,340.751
58,444,155 49.7
28,368.388
73.92 _
75.22
1.92% --0.97%
Eight Months Ended August 31.
Total operating revenues
52.091.356,725 52,928,960,214 28.6
Total operating expenses
1.661.990.574 2.266,164,675 26.7
197,967,471
Taxes
219,327,549 9.7
Net railway operating income
353,908.889 57.0
152,294,615
Operating ratio—%
7917
77.37
0.93%
2.15%
Rate of return on property Investment— -.
Total operating revenues
Total operating expenses
Taxes
Net railway operating income
Operating ratio—%
Rate of return on property investment

Railroad Investment Exceeds Net Capitalization
by Seven Billion Dollars.
The most recent statistical information furnished
by the Inter-State Commerce Commission shows that
the investment of the railroads exceeds their net
capitalization outstanding in the hands of the public at the present time by more than $7,000,000,060.




Oct. 22

1932

The Commission's figures show that the net capitalization of all the railroads, with the exception
of switching and terminal companies, was in round
numbers $18,941,000,000 in the year 1931. By "net
capitalization" is meant the total amount of railway
securities,stocks and bonds outstanding in the hands
of the public. The railway securities held by the
railways are not included.
The following figures review the net capitalization of the American steam railways since 1911:
Year—
1911
1916
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931

Capital Stock.

Funded Debt.

Total Capitol.

$5.874.783.419
6,415,963,044
6706,530,562
6,673,423.777
6.751,349.854
6,847,048.512
6,805,830,355
6.885,437.186
6.830.464,432
6.756,046.601
7.084,045.045
7,212,586.295
7.185.499,007
7.111.028.874

*9.169,699,475
9,916,615.284
10.287.399.701
10.409,452.216
10,528.376,315
10.963.213.750
11.396,067.357
11,305,076,143
11,403,847.205
11.380.644.844
11.426.537,564
11.467.120,633
11.880,127.078
11.830.431.260

*15.044,482,894
16,332,578,328
16,993,930,263
17,082.875,993
17,279.726,169
17,810,262,262
18,201.897.712
18,190,513,329
18,234,311.637
18.136,691.445
18,510,582,609
18.679.706.928
19,065,626,085
18.941.460.134

In the language of the Inter-State Commerce Commission, 118,941,460,134,or $76,822 per mile of road,
is the net sum which would be necessary to purchase
the railways, considered as one system, on the basis
of the par value of their stocks and bonds not held
under railway ownership."
The investment in road and equipment on Dec. 31
1911 of the roads covered in the foregoing table
amounted to $26,097,403,697, a total more than
$7,000,000,000 greater than their net capitalization.
In the days gone by the cry of "watered stock" used
to be raised against the railroads, the claim being
made that railway capitalization was in excess of
railway investment. This may have been true at
one time,although the figures of the Inter-State Commerce Commission, which extend as far back as 1890,
do not support such a claim, but now, when investment exceeds net capitalization by over $7,000,000,000, there is no longer any basis for this charge.
The Course of the Bond Market.
The chief characteristic of the bond market during the
current week has been its stability. Prices improved slightly
up to Friday, and on that day quotations were down fractionally in sympathy with the sharp decline in the stock
market on that day. However, at no time during the week
have prices been much changed from those prevailing at
the close of last week. The price index of 120 domestic
bonds computed by Moody's was 81.18 on Friday, as
compared with 80.84 a week ago, and 81.42 two weeks ago.
United States Government obligations with tin exception
of a slight decline on Friday, showed a consistent rising
tendency throughout the week with many issues going into
new high ground. Capital continues timid, with its main
source of employment being the Government issues. This
,
is exemplified by the recent Trrasury financing, through 91day bills, which was done or a 0.14% basis. The index of
eight long-term Treasury issues was 101.50 on Friday, as
compared with 101.31 week ago and 101.56 two weeks ago.
The railroad bond market has been more stable this week
than in a considerable period of time. Price movements in
the speculative bonds have been, for the most part, limited
to one or two points, with the fluctuations in high-grade
issues in many cases limited to fractions. Union Pacific
1st mtge. 4s, 1947, and Atchison gen. mtge. 48, 1995, remain practically unchanged at 96 and 923 , respectively,
%
Great Northern ref. mtge. 43/is, 1961, declined about %%
of a point to 80, Baltimore & Ohio let mtge. 4s, 1948,
2
practically unchanged at 82%. Low-priced speculative rail
bonds did not decline as much as did railroad stocks, with
Illinois Central deb. 4303, 1966, declining 23 points to
/
4
36%, Chicago, Milwaukee, St. Paul & Pacific 50-year mtge.
5s, 1975, down 2% points to 24, and Baltimore & Ohio cony.
to 57M. The Missouri Pacific 1st & ref.
43's, 1933, down
mtge. 5s. of various maturities, strengthened a point or two.
Among the larger gains was a 4 point advance for the New
York, Chicago & St. Louis deb. 6s, 1932, which defaulted

Financial Chronicle

in the payment of interest and principal on Oct. 1, presumably a reflection of the thought that the plan to pay off 25%
of tho issue in cash with the remaining 75% exte nded for
3 years might still be put into effect, despite the low increase
in deposits of the notes. The price index for 40 railroad
bonds on Friday was 74.25, as compared with 73.95 the week
previous and 74.67 two weeks ago.
Public utility bonds have been in demand during the week,
improvement in prices taking place generally throughout
the entire list. High grades have been consistently strong,
although day-to-day gains were marked by fractional movements. Second grade and speculative issues have been slow
in starting, but gained strength as the week grew older,
however, at no time were upward spurts particularly noticeable. Among the more prominent of the advancing issues
have been Lone Star Gas 5s, 1942, New England Gas &
Electric 5s, 1947, Standard Gas & Electric 6s, 1966, and
Western Union Telegraph 43'2s, 1950. New York tractions
came in for a good deal of interest this week as a result of
the abandonment of the Delaney plan for subway financing.
However, improvement in prices developed only upon the
initial announcement and no spectacular movements followed,
owing to the fact that solution of the transit problem and
higher fares are still a matter of the rather distant future.
New offerings, so prominent in past weeks, dwindled still
further and $6,900,000 Eastern Utilities Associates 5s, 1935,
has been the only issue to appear. Plans are under way
for additional issues, however,and continued market strength
should hasten these operations. The price index for this
group was 86.12 on Friday, as compared with 85.61 a week
ago and S6.64 two weeks ago.
As a group, industrial issues advanced fractionally up to
Friday, on which day they eased slightly. Bonds in Aaa
and An classifications were firm with continued low money
rates reflected in 3-months' Government financing at 0.14%.
Speculative obligations were inclined toward irregular
MOODY'S BOND PRICES.*
(Based on Average Yields.)
1932
Daffy
A00 044
,1 ,
Oct. 21
20
19
18
17
15
14
13
12
11
10
8
7

a

B
4
3
1
WavySept.30
23
16
9
2
Aug. 26
19
12
a
July 29
22
15
8
1
June 24
17
10
a
May 98
21
14
7
Apr. 29
22
15

a

Ali
120
Domes
tic.

Aaa.

81.18
81.30
81.07
80.95
81.07
80.95
80.84
80.37

10!.81
101.97
101.81
101.81
101.81
101.64
101.84
101.47

88.90
88.77
88.63
88.50
88.90
89.04
88.63
88.10.

80.49
80.37
81.18
81.42
81.78
81.90
82.50
82.50
82:62

101.31
101.47
101.81
101.81
101.81
101.64
102.14
102.14
102.30

88.23
87.96
88.36
88.63
89.04
89.31
89.72
89.79
89.59

82.50
82.14
80.84
81.78
81.18
80.95
80.14
76.67
72.26
70 43
66 98
64 71
62.87
62 48
63 27
63 90
63.11
60117
59 01
6202
6898
66.56
68 40
60 86
68.49
67 07
71 67
74.88
75 61
77 65
7582
74 67
74 46
72 III
72 65
7296
74311
74 77
82.62
6767
9365
62.56

102.30 89.45
101.47 88.90
100.49 87.83
100.33 88.10
99.68 87.43
99.36 87.96
98.73 88.38
96.70 83.85
95.18 80.72
94.29 79.48
9396 77.88
91 81 76.48
9083 7461
90.13 74.77
90 27 75.82
90 65 76.78
90.13 76.35
89.04 73.45
86.64 73.55
80 45 77.00
92 10 78.88
9324' 80 96
03.85 81.90
94 58 82.62
92 82 80 95
9288 79 68
94.68 8260
96 70 84 35
96 70 84 72
11762 85.74
95 63 83 48
9421) 82.02
1)370 81.54
91 67 79.80
91 81 80.49
92 '15 81 07
93 40 8399
93 71) 82 87
102.30 89.72
$661 71.98
10698 101 64
87.96 76.03

120 Domestic, by Ratings.
An.

Baa.

MOODY'S BOND YIELD AVERACIES.7
on Individ
120 Domestic*
by Groups.
RR.

P. U. Indus.

77.55 63.98 74.25 86.12
77.66 64.15 74.36 86.25
77.33 63.98 73.85 86.25
77.22 63.90 73.75 85.99
77.33 63.74 74.05 85.99
77.22 63.66 74.15 85.74
77.22 63.66 73.95 85.61
76.78 62.95 72.95 85.61
Stock Exchan go Clos ed
76.78 63.19 73.25 85.48
76.78 63.03 73.25 85.23
77.33 64.55 74.25 86.25
77.33 64.96 74.67 86.64
77.77 65.29 75.09 86.77
77.88 65.62 75.50 87.04
78.32 66.38 76.57 87.30
78.55 66.30 76.57 87.43
78.44 66.55 76.89 87.56

83.97
84.10
84.10
83.97
83.85
83.72
83.72
83.48

78.44
77.66
76.78
77.22
76.89
76.67
75.61
72.26
68.67
67.42
63.27
60.16
58.73
58.52
59.36
59.94
59.80
58.04
56.12
58.62
60.31
63.19
65.62
67.07
68.64
67.07
71.29
73 45
73 85
75 29
73 35
72.26
71.77
69.77
70.62
70.52
72.06
73.15
78.55
54.43
92.97
69.87

83.85
83.72
82.74
83.23
82.14
81.18
79.45
77.66
74.77
72.26
69.81
67.25
6696
65.12
66.04
662)
8582
63 90
8335
65.20
11664
79 40
70 90
71 48
71 00
71 38
7365
7467
74118
76.14
73.55
72.75
72.45
70 62
70.71
70.81
71.48
71 19
84.22
62(19
90.65
63.74

66.30
66.81
64.88
67.16
66 47
65.79
65.54
61.11
54.61
51.85
47.68
45.50
43.58
43.02
43.82
44.25
43.02
41 03
38.88
41.44
42.90
45.46
47.44
49.22
47.73
45 15
60.80
55 42
56.58
59 80
68.66
6757
68.32
55.65
55.73
55.99
57.17
57.30
67.86
37 94
78.55
42.58

76.67
76.46
74.88
76.25
76.14
76.25
76.35
71.38
65.45
84.16
59.87
56.82
54.86
54.73
65.61
58.32
55 61
52.47
49.53
52 24
54.55
57.64
59 94
62 56
60 82
59 29
6480
70 15
71 19
7385
72 95
71 67
71 77
69.31
70.15
70 71
7206
72 In
78.99
4768
95.18
53.22

87.43
86.77
85.61
86.51
85.74
85.87
84.85
81.66
77.55
75.82
73.05
72 16
69.40
69.13
69.59
7053
69.68
6858
66.73
71 09
72 95
74 46
75 92
76 68
74 98
71.87
77 55
8072
81 07
8335
RI 42
79 68
7960
77 li
77.44
77.68
80.14
81 54
87.69
65.71
11086
73.55

83.48
83.35
83.85
83.72
83.97
83.97
84.22
84.10
83.97

73.25

57.04

71.29

84.60

73.25

94.73

82.50

97.00

97.00

92.10

AU
120
1932
Domes
Daily
Averages. tic.
Oct. 21__
20-1918._
17-_
1514....
13__
12._
11._
10__
8._
7-6__
5__
4__
3...
I__
Weekly
Eept.30_
23...
16__
9__
2__
Aug.26_
.
19__
12_.
5July 29__
22._
15-8_
1..
June 24..
17_
10-IL_
May 28__
21._
14_
7-Apr. 29__
22__
15_
8_
1_
Mar.24..
18.II__
4_..
Feb. 26_
19._
11-5._
Jan. 29_
22.15Low 1932
High 1932
Low 1931
titim 1931
Yr. Ago.
Oct .21'31
2 Yrs.Aga
Oct.18'30

6.11
6.10
6.12
6.13
6.12
6.13
6.14
6.18
6.17
6.18
6.11
6.09
6.06
6.05
6.00
6.00
5.99
6.00
6.03
6.14
6.06
6.11
6.13
6.20
6.51
6.94
7.13
7.51
7.78
8.01
8.06
7.96
7.88
7.98
8.28
8.53
8.12
7.87
7.56
7.35
7.19
7.34
7.50
7.00
6.68
6.61
6.49
6.59
6.71
6.72
6.95
6.90
6 27
8.73
6.69
5.99
8.74
5.17
8.05
6.57
5.05

120 Domestics by Ratings.
Am:.

An.
5.50
5.51
5.52
5.53
5.50
5.49
5.52
5.56
5.55
5.57
5.54
5.52
5.49
5.47
5.44
5.44
5.45

A.

Baa.

120 Domestics
by Groups.
RR.

40
ForP. U. 1801)s. dons.

6.43
7.87
6.74
5.71
6.42
7.85
6.73
5.70
6.45
7.87
6.78
5.70
6.46
7.88
6.79
5.72
6.45
7.90
6.76
5.72
6.46
7.91
6.75
5.74
6.46
7.91
6.77
5.75
6.50
8.00
6.87
5.75
Stock Excban go Clog ed
6.50
7.97
6.84
5.76
6.50
7.90
6.84
5.78
6.45
7.80
6.74
5.70
6.45
7.75
6.70
5.67
6,41
7.71
6.66
5.66
6.40
7.67
6.62
5.64
6.36
7.58
6.52
5.62
6.34
7.59
6.52
5.61
6.35
7.56
6.49
5.60

5.46
5.50
5.58
5.56
5.61
5.57
5.69
5.89
6.15
6.26
6.40
6.53
6.70
6.69
6.59
6.50
6.54
6.82
6.81
6.48
6.31
6.13
6.05
5.99
6 13
6.24
6.00
5.85
582
5.74
5.02
604
6.08
6.23
6 17
6 12
594'
597
5.44
7.03
4.65
6.57

6.35
6.42
6.50
6.46
6.49
6.51
6.61
8.94
7.32
7.48
7.96
8.37
8.57
8.60
848
8.40
8.42
8.67
8.96
860
8.35
7.07
7.67
7.50
7.55
7.50
7.04
682
6.78
864
6.83
6.94
6 99
7.20
7.11
7.12
6.96
6.85
6.34
9.23
5.21
8.41

5.58

6.84

4.68

5.09

7.59
7.53
7.76
7.49
7.57
7.65
7.68
8.24
9.20
9.67
10.48
10.94
11.39
11 53
11 38
11.23
11.53
12 05
12.67
11 94
11.56
10 95
10.52
10.16
10 46
11.02
9.86
9.07
889
849
8.68
8.74
8.63
9.05
902
8.98
8.80
8 78
7.41
12 96
6.34
11.64

5.88
5.87
5.87
5.88
5./19
5.90
5.90
5.92

10.52
10.46
10.43
10.29
10.22
10.22
10.26
10.17

5.92
5.93
5.89
5.90
5.88
5.88
5.86
5.87
5.88

10.10
10.18
10.10
10.13
10.10
10.09
10.05
10.13
10.17

6.51
6.53
6.68
6.55
6.56
8.55
6.54
7.03
7.69
7.85
8.41
8.93
9.16
9.18
9.04
8.93
9.04
9.56
10 10
9.60
9.21
8.73
8.40
8.05
8.28
8.49
7.77
7.16
705
6.78
6.87
7.00
6.99
7.25
7 16
7.10
81)6
61)5
6.30
10.49
5.06
9.43

5.61
5.66
5.75
5.68
5.74
5.73
5.81
6.07
8.43
6.59
6.86
6.95
7.24
7.27
7.22
7.12
7.21
7.33
7.54
7.06
6.87
6.72
8.58
6.50
6.67
6.98
6.43
6.15
6.12
5.93
6.09
6.24
6.25
6.47
6.44
6.42
640
6.08
5.59
7.66
4.95
6.81

5.89
5.90
5.98
5.94
6.03
6.11
6.26
6.42
6.69
6.94
7.25
7.48
7.26
7.73
7.62
7.60
7.67
788
7.95
7.71
7.65
7.24
7.08
7.02
7.07
7.03
8.80
6.71
6.67
6.56
681
6.89
692
7.11
7.10
7.09
7.02
7.05
5.88
8.11
5.38
7.90

10.13
10.13
10.48
10.33
10.92
10.99
11.19
11.30
11.53
11.73
12.02
12 16
1313
13.75
13.92
14.30
14.75
15.29
15.28
14.82
14.03
14 10
13 70
1381
13.39
13.23
12.77
12.66
12.62
12.31
1265
12.82
12.86
1328
13.00
13.23
13.12
13.30
10.04
15.83
8.57
16.58

8.82

7.04

5.83

6.84

12.24

6.00

4.94

4.94

5.27

6.94

1

1
Mar. 24
18
11
4
Feb. 26
19
11
6
Jan. 29
22
15
High 1932
Low 1932
High 1931
Low 1931
year Ago76.03 95.63 87.83
Oct. 21 1931
Two Years Ago
95.33 105.54 101.14
Oct. 18 1930

A.

2717

movements. Steel issites underwent little change, with news
in that industry continuing slightly better. The failure of
two important Standard Oil companies to follow a crude oil
price advance by independents checked the strength in oil
bonds. Declarations that the Fisk Rubber reorganization
plan was operating stimulated that company's bonds, other
rubber issues faring less satisfactorily on weaker tendencies
in rubber and cotton prices. Mining issues were irregular
to weak. Stories on the rapid spread of 10-cent cigarettes
failed to affect senior issues of tobacco companies, but
Tobacco Products 634, 2022, were soft. Losing more than
their recent rally, United Drug 5s, 1953, made a new low
at 58. The industrial price index was 83.97 on Friday,
83.72 on last Friday ad 83.72 Friday two weeks ago.
The trend in the foreign bond market during the week
was irregularly lower. Among the issues which were slightly
off were Scandinavian, Eastern European and Japanese
bonds. South American issues remained largely unchanged,
although Argentine bonds declined and Brazilian governmental obligations appreciated slightly. Among the few
issues showing some strength were Haiti and Dutch East
Indies bonds. While Austrian issues were mostly steady,
the Upper Austria 634s, 1957, rose some 5 points on small
trading. The direct obligations of the German Government
remained at practically unchanged levels, but German corporate, municipal and State bonds, with but few exceptions,
showed fractional declines. On Friday Moody's bond
yield average of 40 foreign bonds stood at 10.5', %, as compared with 10.26% a week ago and 10.13% two weeks ago.
Municipal bonds showed some irregularity, with new
offerings well taken by dealers. Obligations of New York
City reflected the uneasiness of investors as a result of the
refusal of banks to extend further credit until a retrenchment program had been adopted.
Moody's computed bond prices and bond yield averages
are shown in the tables below:

4.0.4.1i.*.wit.0.4. 4.0.4.4.*,;.&A.
4. ca a.l.alt.waviaap.ocaaaaaF4amaaawatatmaaveola
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w w .,..0..amaccan
aowwoac.4a.40...mo...mopmwolocowc-4w.c1,-, o.wwcno.co-4 ceolcis.ww.

Volume 135

•Nom-These prices are computed from average yields on the basis of one "Ideal" bond (43(% coupon. ma tiring 10 31 years) and do not purport to show el her the
average level or the average movement of actual price quotations. They merely serve to Illustrate in a more comprehensive way the relative levels and the relative move.
mans of yield &venom) the latter being the truer picture of the bond market
The last complete Ust of bonds used in computing these Indexes was published In the "Chronicle" on Oct. 1 1932. page 2228. For Moody's index of bond
prices by months back to 1928, refer to the "Chronicle" of Feb. 6 1932. page 907.




2718

Financial Chronicle

Oct. 22 1932

Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Oct. 21 1932.
In general the stock and commodity markets have latterly
declined with small trading. Speculative spirit is lacking at
the moment in this country. Feeling is conservatively
cheerful, but naturally on the approach of a nf tional election
trading is on a more or less cautious scale and is largely what
is termed professional. The general public is not taking part
in it. The grain markets have been quiet and latterly more
or lees depressed, although there has been some export business in wheat. A rumor that Mr. Ford would buy 75,000,000
bushels of wheat at 60c. and resell it to China on long credit
was denied. Corn has latterly sold down to new low levels
for the season, but oats and rye have been unexpectedly
steady. Cotton has of late declined under the pressure of
hedge selling and general liquidation as well as an absence of
speculative support. Worth Street has been quiet, though
Manchester, England has sent favorable reports. It seems
that both India and China are buying British cotton goods
more freely than for some time past. Coffee was 3 points
lower to 11 points higher for the week. Sugar was off 1 to
3 points. Rubber was 3 points lower to 1 point higher.
Hides dec'ined 25 to 35 points. Cocoa fell 10 to 11 points,
silk 1 point and silver 57 to 62 points.
Seasonal trade has continued at about the recent level
though at times the weather has been unfavorable for business. At the South the rains and warm weather have
interfered with the sale of heavy clothing. Buying in general
at the Northeast has been delayed more or less by rains.
At the same time "special sales" continue to be a feature
of the country's business. Such sales are beginning to appear
in a great many cities as part of the dealer's program to keep
up business and clear his shelves of goods which have been
slow of sale. One of the favorable features is the activity
in textile manufacturing lines. In New England and at
the South mills have been busy. In many cases they have
even worked night shifts to fill an accumulation of orders.
Not a few dry goods wholesalers have been kept busy with
fill-in orders. Boston reports shoe orders to manufacturers
falling off but the production is still large in filling past
orders. The wool market has been quiet and prices have
been somewhat easier. The reports show that retailers
have been making the best sales of men's and women's
clothing. Millinery and shoes have also figured quite
prominently in the demand. A fair busim ss is being done
in furniture as well as household and electrical supplies.
At the same time the public in buying is increasingly insistent
upon moderate prices and excellent quality.
The automobile industry is apparently proceeding very
slowly with the general demand for new cars still poor.
The lowered purchasing power of the general public will
naturally react on the automobile trade as one of the lines
sure to be affected. The most that can he said for the
industry now is that some companies are going ahead slowly
in the preparation of new models. The building trade has
improved slightly, but only very slightly. September
building permits make an encouraging showing at least at
some advance, but the trouble is that values seem to be far
below those of a year ago. Scattered rains have fallen in
the Southwest, northern Texas and southern Oklahoma,
with showers over most of Kansas and a little rain in Nebraska, but the Middle West remains dry and needs rain for
seeding.
As regards the stock market, it closed on the 15th a shade
higher. The volume of trading was only 593.510 shares in
contrast to 1,533,030 on the previous Saturday. Railroad
stocks were at one time 1 to 3 points higher, but the weekly
statement of carloadings was something of a damper and
caused a la ter reaction though it was not really discouraging
in itself. The action of the market, however, was not
especially significant. Bonds advanced though irregularly
with total business of only $4,917,00J. Grain and cotton
declined. On the 17th stocks were dull and irregularly
lower, the market really lacking suggestiveness. An early
decline of h to 23 points occurred, most of which was later




regained. The total trading of only 770,310 shares sufficiently reflected the doubts and hesitation in the minds
of traders. In sluggish trading on the 18th, stocks were at
one time 1 to 3 points higher but later much of this was lost
in an indecisive market. The sales were only 1,020,900
shares. Domestic corporation bonds were lower, U. S.
Government bonds firmer and foreign issues steady.
Stocks on the 19th advanced an average of about 2 pts.
for a list of 50 representative stocks. Car loadings on
individial railroads were better. The improvement began
here and there in August. Reports on the consumption
of electricity have also recently been more encouraging.
Grain, cotton and other commodities were higher. Trading
was dull amounting to only 1,303,000 shares. In bonds,
domestic corporations advanced while U. S. Government
and foreign obligations declined. The bond trading was
the smallest in over a year. On the 20th stooks declined
some 1 to 2 points in a small, irresolute market. Transactions were 1,055,950 shares. Bonds in general closed
steady with sales of only $7,191,000. Grain, cotton, silk,
rubber and some other commodities were lower. Steel
rails were cut $3 to $40 per ton, the first slash in 10 years.
In that time rails have been cut 7% and the average price
of steel some 20%. Meanwhile in the stock market most
people are simply looking on. Today stocks declined with
leading issues down 1 to 4 points. The market yielded
rather easily to moderate selling pressure. Trading was
small, i. e., 1,200,000 shares. Bonds were lower with sales
$7,724,000. As usual, high grade issues acted the best.
At Gastonia, N. C., the Armstrong and Dunn plants of
the American Combed Yarn Corp. are operating on a fulltime schedule, day and night. Manufactured at these plants
is 8s to 80s yarn. At New London the Armstrong Silk
Corp., manufacturers of Celanese linings and silk fabrics
for women's and men's wear trade, is operating at capacity,
employing 300 hands. At Lawrence, Mass., after operating
at capacity since Labor Day, the Wood Worsted mill has
begun to slacken operations in the manufacturing end. This
is particularly true in the French system where a recession
was first noted last week. Additional machinery in the
department was shut down this week.
Greeneville, S. C., wired that the Tenth Southern Textile
Exposition was visited by hundreds of textile officials and
employees from Southern States and the attendance is expected to grow larger daily. Great interest is being manifested in many new economical improvements and new
inventions in textile machinery and in rayon exhibits. A
number of textile machinery manufacturers have reported
sales. Some of the South's prominent textile officials have
been present and immensely interested in the many exhibits.
Charlotte, N. C., wired on Oct. 18 that operations are
expected to be resumed at the Rockinham Mills to-morrow
as a result of the culmination of a strike which has kept the
three large cotton mills idle for the past eight weeks. The
strike, which involved 1,200 workers, was settled Saturday
night on the same wage basis which existed prior to Aug. 22,
when the stoppage went into effect. The workers have
returned with the understanding that they will disband their
present organization and not become affiliated with any union
so long as they are employed in the Rockingham Mills. At
Piedmont, Ala., the Piedmont plant of the Standard CoosaThatcher Co., manufacturers of fine combed yarns, has
adopted a full-time schedule of operations, with both day
and night shifts. Seven hundred and fifty operatives are
now on the payroll. Orders are coming in rapidly enough
to justify full-time. This plant has been on a curtailed
schedule for some months. Providence wired that Rhode
Island industries added more than 6,000 persons to their
payrolls in September. In 219 plants 53,803 workers were
employed last month, this representing a 13% gain from
August and a 31% increase from July. September gains
were most pronounced in the cotton,jewelry, metal trade and
rubber manufacturing groups. More persona are now
employed by Rhode Island industry than at any time since
November, 1931.
In the matter of the weather, New York has had a good
deal of rain. On the 18th it was not far from 3 inches. The
temperatures here on that day were 59 to 67; Boston had
58 to 60; Chicago, 56 to 58; Cincinnati, 58 to 68; Cleveland,

58 to 62; Denver, 32; Detroit, 54 to 64; Kansas City, 54
to 82; Los Angeles, 62 to 76; Milwaukee, 52 to 54; St. Paul,
48 to 56; Montreal, 44 to 52; Norfolk, 66 to 76; Oklahoma
City, 62 to 90; Omaha, 54 to 74; Philadelphia, 62 to 68;
Phoenix, 54 to 74; Pittsburgh, 60 to 66; Portland, Me., 54
to 56; Portland, Ore., 48 to 60; Raleigh, 66 to 74; Salt Lake
City, 34 to 40; San Antonio, 64 to 88; San Diego, 56 to 68;
San Francisco, 58 to 70; Savannah, 66 to 72; Seattle, 42 to
56; Spokane, 36 to 52; St. Louis, 60 to 68; Winnipeg, 28
to 32.
To-day the temperatures here were 49 to 57 and the forecast
was for fair and colder weather. Overnight Boston had 52
to 56; Philadelphia, 54 to 68; Pittsburgh, 44 to 70; Portland,
Me., 50 to 56; Chicago, 38 to 50; Cincinnati, 38 to 68;
Cleveland, 44 to 70; Detroit, 44 to 62; Milwaukee, 38 to 54;
Kansas City,46 to 58; Portland, Ore.,52 to 68; San Francisco, 56 to 74; Seattle, 50 to 64; Montreal, 42 to 56, and
Winnipeg, 34 to 40.
Wholesale Prices During Week Ended Oct. 15 Decreased
Slightly According to United States Department
of Labor.

The Bureau of Labor Statistics of the U. S. Department of
Labor announces that its index number of wholesale prices
for the week ended Oct. 15 stands at 64.4, as compared with
64.9 for the week ended Oct. 8, showing a decrease of .8 of
1%. The Bureau also said under date of Oct. 20:
These index numbers are derived from price quotations of 784 commodities, weighted according to the importance of each commodity and
based on average prices for the year 1926 as 100.0.
The accompanying statement shows the index numbers of groups of
commodities for the weeks ended Sept. 17 and 24, and Oct. 1, 8. and 15:
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF SEPT. 17,24
AND OCT. 1,8. AND 15. (1926=100.0).
Week Ending.
Sept. 17 Sept. 24
All commodities
Farm products
Foods
Hides and leather products
Textile products
Fuel and lighting
Metals and metal products
Building materials
Chemicals and drugs
Houseturnishing goods
Miscellaneous

2719

Financial Chronicle

Volume 135

65.4
49.2
62.1
72.4
56.2
71.8
79.6
70.4
73.0
74.6
65.1

65.4
49.3
62.1
73.2
56.4
71.7
80.1
70.7
72.9
74.6
64.9

Oct. 1

oa.8

Oct. is

65.4
49.5
62.0
73.3
56.4
71.7
80.0
70.6
73.0
74.6
64.5

64.9
48.8
61.5
73.0
56.3
71.3
80.1
70.5
72.9
74.1
64.1

84.4
47.4
60.7
72.5
54.9
71.3
80.1
70.5
72.7
72.4
63.9

Retail Food Prices Decreased M of 1% During Period
from Aug. 15 to Sept. 15, According to United
States Department of Labor-Average Decrease of
About 16% Since Sept. 15 1931.
Retail food prices in 51 cities of the United States, as
reported to the Bureau of Labor Statistics of the United States
of
Department of Labor, showed an average decrease of
1% on Sept. 15 1932, when compared with Aug. 15 1932,
and an average decrease of about 16% since Sept. 15 1931.
The Bureau's weighted index numbers, with average prices
in 1913 as 100.0, were 119.4 for Sept. 15 1931; 100.8 for
Aug. 15 1932, and 100.3 for Sept. 15 1932. Under date of
Oct. 19 the Bureau further reported as follows regarding
retail food prices:
During the month from Aug. 15 1932 to Sept. 15 1932 24 articles on
which monthly prices were secured decreased as follows: Onions, 17%;
cabbage, 13%; potatoes, 12%; canned red salmon and bananas. 6%;
leg of lamb, evaporated milk, and canned tomatoes, 3%; round steak,
sliced bacon, prunes, and raisins, 2%; sirloin steak, rib roast, chuck roast.
sliced ham, oleomargarine, vegetable lard substitute, bread, rolled oats,
macaroni, canned corn, and oranges, 1%;and tea less than .5 of 1%. Nine
articles increased: Strictly fresh eggs, 10%; pork chops, hens, lard,
havy beans, and coffee, 2%; fresh milk, 1%; and butter and cheese, less
than .5 of 1%. The following nine articles showed no change in the
month: Plate beef, flour, cornmeal. corn flakes, wheat cereal, rice, pork
and beans, canned peas, and sugar.

(Ill), 16%; Baltimore, Birmingham, Bridgeport, Buffalo, Dallas, Memphis,
New Haven, Peoria, and Richmond, 15%; Fall River, Newark, New York,
Rochester, Savannah, and Seattle, 14%; Denver and New Orleans, 13%;
and Norfolk. Portland (Ore.), and San Francisco, 12%.

States Department of Labor's Survey of
Operations in the United States
Decrease in Estimated Cost of All Building Operations Reported from August to September.
There was an increase of 6.3% in the number and an
increase of 9.9% in the estimated cost of new residential
buildings, according to reports of building permits received
by the Bureau of Labor Statistics of the United States
Department of Labor from 353 identical cities of the United
States having a population of 25,000 or over for the months
of August 1932 and September 1932. The estimated cost
of all building operations for which permits were issued in
these cities during September was $31,768,068. This was
a decrease of 15.2% as compared with August. There was,
however, an increase in the number of building operations
comparing these two periods. Comparing September with
August, there was an increase of 6.5% in the number and a
decrease of 27.3% in the estimated cost of new non-residential
buildings; additions, alterations and repairs increased 1.9%
in number, but decreased 12.7% in estimated cost. During
September 1932 2,579 family dwelling units were provided
in new buildings. This is an increase of 11.7% as compared
with August. The Bureau's survey issued Oct. 20 also said:
United

Building

Various agencies of the United States Government awarded contracts
during September for buildings to cost $5,497.122. This is less than
one-half of the value of such contracts awarded in either August 1932 or
September 1931.
Comparing permits issued in 343 identical cities during September 1932
and September 1931. there was a decrease of 56.9% in the number and a
decrease of 71.2% in the estimated cost of new residential buildings. New
non-residential buildings decreased 37.8% in number and 70.9% in estimated cast. Additions, alterations and repairs decreased 15.1% in number
and 39.6% in cost. Total tuilding operations decreased 27.1% in number
and 66.2% in estimated cost. The number offamily dwelling units provided
decreased 64.7%. comparing September 1932 with September 1931.
Permits were issued during Septemoer 1932 for the following important
building projects: In Boston, Mass., for a school building to cost $865,000;
in Ottumwa, Ia., for a filtering Plant at the municipal water works to cost
$200,000. in Duluth for an office building to cost $574.000; in Minneapolis
for a school building to cost over $300 000; in Baltimore for two school buildings to cost $630.000; in Vallejo. Calif., fcr a school building to cost over
$200,000, and in Washington for a community house to cost $250.000.
Contracts were awarded by the Supervising Architect, Treasury Department,for a post office in Manchester. N. H.. to cost over $200,000, and for
a post ofice in Cincinnati to cost nearly $2,000,000.
ESTIMATED COST OF NEW BUILDINGS IN 851 IDENTICAL CITIES
AS SHOWN BY PERMITS ISSUED IN AUGUST AND SEPTEMBER
1932, BY GEOGRAPHIC DIVISIONS.
New Residential Buildings.
Geographic

Cities

Estimated
Cost.
Aug. 1932.

Sept. 1932.

Families Provided for Os
New Dwellings.
Aug. 1932.

54
72
93
25
39
33
37

$920.103
2,395,558
1,187.026
872,064
1,035,010
444,957
1,445,945

$922,800
2,622,960
1,202.758
782,971
845,750
627,379
2,120.433

212
509
291
255
280
244
517

353
Total
Per sent of change_ -

$8,300,673

$9,125,051
+9 9

2,308

New England
Middle Atlantic
East North Central
West North Central_
South Atlantic
South Central
Mountain and Pacific

New Non-Residential
Buildings,
Estimated
Cost.

Geographic Division.

Aug. 1932.
New England
Middle Atlantic
East North Central
West North Central_
South Atlantic
South Central
Mountain and Pacific

54
72
93
25
39
33
37

Total
Per cent of change_ -

353

3860,328
9.443,312
2,183.286
802,398
2,908,057
1,734,213
1,301,745

Sept. 1932.
52,299.464
2,807,674
3,641,279
1,752,532
1,502,381
914,330
1,059,565

Sept. 1932.
203
634
295
237
238
288
684
2.579
+11.7

Total Construction
(Including Alterations
and Repairs).
Estimated Cost.
Aug. 1932.
82,887,158
15.466,020
4.799,747
2,125.760
5.228,442
3,031,185
3.920,924

Sept. 1932.
54,046,144
8,340,878
6,393.106
3,094,042
3,429,847
2,075,520
4,388,531

819,233,339 813,977,225 $37,459,236 331,768.068
-15.2
--27.3

Changes in Retail Prices of Food by Cities.
During the month from Aug. 15 1932 to Sept. 15 1932 32 of the 51
the average
cities from which prices were received showed decreases inBirmingh
Rochester, 3%;
am,
cost of food as follows: Indianapolis and
Cleveland, and Detroit, 2%; Atlanta, Boston, Cincinnati, Fall
Buffalo,
Louisville. Manchester, Milwaukee, Peoria, Portland (Me.),
River,
Providence, Richmond, St. Paul, Seattle, and Springfield (III.), 1%;
Columbus, Denver, Jacksonville, Minneand Bridgeport, Butte, Chicago.
and Washington, less
apolis, Mobile, New Haven. Savannah, Scranton
cities showed increases: Los Angeles, 8%; Omaha
than .5 of 1%. Fifteen
Kansas City, Newark, New Orleans. Norfolk,
2%; Baltimore, Houston,
sbucgh, Salt Lake City, and San Francisco. 1%; and Dallas, Little
pitt
less than .5 of 1%. The following
Rock, Philadelphia, and Portland (Ore.),
change in the month: Charleston (S. C.), Memphis,
four cities showed no
New York, and St. Louis.
15 1931 to Sept. 15 1932 all of the 51 cities
For the Year period Sept.
Cincinnati, 22%; Butte, Mobile. and
showed decreases: Detroit. 23%;
Chicago, Columbus. Minneapolis, Philadelphia,
Salt Lake City, 19%;
Indianapolis, Little
Pittsburgh. Providence. and St. Paul, 18%; Boston,
Omaha,St. Louis, Scranton, and Washington,
Rock, Louisville, Milwaukee,
Houston, Jacksonville.
Cleveland,
17%; Atlanta, Charleston (S. C.),
Manchester, Portland (Me.), and Springfield
kansas City Los Angeles,




Sales of Department Stores in Metropolitan Area of
New York Decreased 13.9% from Oct. 1 to Oct. 14.
A decrease of 13.9% was reported by the New York Federal
Reserve Bank on Oct. 21 in the sales of department stores in
the metropolitan area of New York, in comparison with the
same period last year. New York and Brooklyn department
stores reported a drop of 13.0% and department stores in
Newark a drop of 18.5%.
Loading of Railroad Revenue Freight Slowly Increasing.
Loading of revenue freight for the week ended on Oct. 8
totaled 625,636 ears, the highest for any week so far this
year, according to reports filed by the railroads with the car
service division of the American Railway Association. This
was an increase of 3,561 cars above the preceding week, but

Financial Chronicle

2720

138,182 cars under the same week in 1931 and 329,146 cars
under the same week two years ago. Details follow:
Miscellaneous freight loading for the week of Oct. 8 totaled 224.427 cars,
an increase of 3,053 cars above the preceding week but 64.222 cars under
the corresponding week in 1931 and 153,929 cars below the same week in
1930.
Loading of merchandise less than carload lot freight totaled 179.641 cars,
a decrease of 158 cars below the preceding week, 37.910 cars below the
corresponding week last year and 62,993 cars under the same week two years
ago.
Coal loading totaled 132,947 cars, an increase of 3,509 cars above the
preceding week, but 6,808 cars below the corresponding week last year
and 43,662 cars below the same week in 1930.
Live stock loading amounted to 22.554 cars, an increase of 409 cars above
the preceding week, but 5.562 cars below the same week last year and 8.765
cars below the same week two years ago. In the Western districts alone,
loading of live stock for the week ended on Oct. 8 totaled 18,228 cars, a
decrease of 4,226 cars compared with the same week last year.
Grain and grain products loading totaled 36,013 cars,3.504 cars below the
preceding week,677 cars below the corresponding week last year and 4,558
cars under the same week in 1930. In the Western districts alone, grain
and grain products loading for the week ended on Oct. 8 totaled 23,904
cars, a decrease of 1.103 cars below the same week in 1931.
Forest products loading totaled 18,425 cars, a decrease of 704 cars below
the preceding week, 6.208 cars under the same week in 1931 and 20,803
cars below the corresponding week two years ago.
Ore loading amounted to 6,645 cars, an increase of 597 cars above the week
before, but 16,632 cars under the corresponding week last year and 30,372
cars under the same week in 1930.
Coke loading amounted to 4,984 cars, an increase of 359 cars above the
preceding week, but 163 cars below the same week last year and 4,064 cars
below the same week two years ago.

Oct. 22 1932

All districts reported reductions in the total loading of all commodities
compared with the same week in 1931 and 1930.
Loading of revenue freight in 1932 compared with the two previous
years follows:
1931.

1932.
Four weeks In January
Four weeks in February
Four weeks in March
Five weeks in April
Four weeks in May
Four weeks in June
Five weeks In July
Four weeks in August
Four weeks in September
Week ended Oct. 1
Week ended Oct. 8

1930.

2,269.875
2,245,325
2,280.672
2.772,888
2,087.756
1.966,355
2,422.134
2,065,079
2.244,599
622.075
625,636

3,470,797
3,506,899
3,515,733
4,561,634
3,650,775
3,718,983
4,475.391
3,752,048
3.725,686
971,255
954,782

91 AA9 204

Total

2,873,211
2,834,119
2,936,928
3,757,863
2,958,784
2,991,950
3,692.362
2,990,507
. 2,908,271
777.712
763.818
20 4AAA2A

26.203.043

The foregoing, as noted, covers t,ota loadings by the railroads of the United States for the week ended Oct. 8. In
the table below we undertake to show also the loadings for
the separate roads and systems. It should be understood,
however, that in this case the figures are a week behind those
of the general totals-that is, are for the week ended Oct. 1.
During the latter period fifteen roads showed increases over
the corresponding week last year, the most important of
which were the Delaware Lackawanna c% Western RR., the
New York Ontario & Western Ry., the Spokane Portland eo
Seattle Ry. and the Terminal RR. Association of St. Louis.

-WEEK ENDED OCT'. 1.
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)

1932.
Eastern District
Group A;
Bangor & Aroostook
Boston & Albany
Boston at Maine
Central Vermont
Maine Central
New York N. H.& Hartford
Rutland

Total Loads Received
from Connections.

Total &MU.
Freight Loaded.

Railroads.

1931.

1930.

1932.

1931.

784
3.043
7,882
682
2.450
10,795
757

1,667
3.909
10,278
842
3.438
13,800
703

2.185
4.054
12,069
951
4.778
15,275
825

196
4,300
9.564
1,861
1.828
11.140
1,025

259
5.631
11.952
2.954
2,707
14.296
1.201

26.393

34,637

40,137

29,914

39.000

6.418
10.910
12.134
127
1.978
9.420
1.807
20,773
2,421
550
312

7,670
10,575
16,097
180
2,101
10,858
2,801
26.691
2,276
495
472

9.736
13,929
16,909
220
2.706
11.073
3.036
34,224
1.608
601
534

6.630
5.613
13.053
1 742
1.016
6,243
68
25,297
2.254
100
204

7.753
6.122
15.378
2.452
1.079
7,265
56
31.564
2.074
22
261

66,850

80.216

94,576

62.120

74.028

562
1.499
8,606
31
471
185
1.336
2.661
6,025
3.556
4.538
4.593
3.692
1.167
5.575
3.387

694
1,981
9,709
55
485
226
1,464
3.023
7.054
3,595
5,984
5.190
4.709
1,443
6.820
4,192

700
2.544
11.682
71
494
274
2.328
3.802
8.772
5.177
6.689
7.889
7.052
1.801
6.822
4.357

971
1.816
10,657
62
121
1.787
638
4,405
6,958
160
7.758
3.775
4.374
534
6.762
1,612

1.224
2.078
12.656
70
125
1.872
814
5,459
8.036
247
8.904
4.236
4.795
746
8.424
2.741

47,884

56,624

70.454

52.388

62.427

Grand total Eastern District-- 141.127

171,477

205.167

144.422

175.453

26,261
1,582

34.057
3,314

z44.044
5.851

12,496
826

17.372
1.505

• 141
7,114
2
212
120
974
55.219
13.052
3.220
48
2,914

154
7,626
657
321
148
1.737
74.864
16.845
5,807
53
3.427

200
11.842
605
447
225
2.005
94.567
20.213
11.789
53
3.635

4
9,672
41
37
11
2.730
34.678
13.426
914
3.184

3
12,751
36
22
28
3.936
42.862
18.556
2.977
1
4.115

110.859

149.008

195.476

78 019

104.184

22.390
17,029
871
3.493

25.265
20,339
985
3.964

27.746
21.395
1.140
4.421

8.156
3 575
1.299
545

8.707
4.228
1.696
410

43.783

50.553

54,702

13.575

15.041

6.865
866
413
182
71
1,737
578
337
6.515
19.571
190

8,478
1,278
448
174
74
2.137
557
408
7.779
23.559
215

12.140
1,394
814
218
RI
2,434
650
486
10.732
28.547
242

3.888
1,196
658
293
72
1.193
718
1.990
2.842
10,967
748

5.397
1.276
945
348
106
1.298
822
2.487
3.312
12.733
1.193

Total
Group B;
y Buff. Rochester & Pittsburgh.
Delaware& Hudson
Delaware Lackawanna & West,.
Erie
Lehigh dr Hudson River
Lehigh di New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western
Pittsburgh & Shawmut
Pittsb. Shawmut & Northern
z Ulster & Delaware
Total
Group C;
Ann Arbor
Chicago Indianap.& Louisville.
Cleve. Ctn. CM. it St. Louts
Central Indiana
Detroit & Mackinac
Detroit di Toledo Shore Line.-Detroit Toledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia._
Wabash
Wheeling & Lake Erie
Total

Alletheny District
Baltimore & Ohio
Bessemer & Lake Erie
y Buffalo & Susquehanna
Buffalo Creek & Gatiley
Central RR. of New Jersey...
Cornwall
Cumberland & Pennsylvania.-Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
Total
Pocahontas District
Chesapeake & Ohlo
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian.
Total
Southern District
Group A;
Atlantic Coast Line
Clinchfield
Charleston & Western Carolina
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick.& Potom..
Seaboard Air Line
Southern System
Winston-Salem Southbound.

Total Loads Received
from Connections.

1932.
Group B.
Alabama Tenn. & Northern_
Atlanta Birmingham & Coast._
All,& W.P.
-West RR.of Ala
Central of Georgia
Columbus & Greenville
Florida Eaat Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Macon Dublin & Savannah
MississloPi Central
Mobile & Ohio
Nashville Chattanooga & St. L.
New Orleans-Great Northern
Tennessee Central
Total

1931.

1930.

1932.

1931.

264
676
717
3.427
241
361
944
388
795
22.902
17,881
118
188
1.941
2,724
587
226

312
698
709
3,776
307
494
1,150
456
982
27.170
20.590
134
244
2.400
3,078
955
599

285
1,026
929
5,070
504
575
1,356
702
1.515
30.883
26,273
211
299
2.993
4,493
958
731

130
531
1,054
1,994
205
358
1,150
269
670
8.168
3,284
259
312
1,304
1,896
353
504

181
621
1,106
2,394
220
418
1,391
263
856
10.025
4,135
249
388
1.396
1,957
401
646

54.320

64,054

78.801

22,441

26,547

Grand total Southern District

91.645

109.159

136.539

47.006

56,464
_ _

Northwestern District
Belt Ry. of Chicago
Chicago & North Western
Chicago Great Western
Chic, Milw. St. Paul & Pacific_
Chic. St. Paul Minn. & Omaha
Duluth Malabo & Northern_
Duluth South Shore & Atlantic
Elgin Joliet & Eastern
Ft. Dodge Des M.& Southern_
Great Northern
Green Bay & Western
Minneapolis & St. Louis
Minn. St. Paul & S. S. Marie
Northern Pacific
Spokane Portland & Seattle

1,286
16.043
2.624
19.757
4,108
2,027
461
2,917
391
10.857
626
2.345
5.337
9,853
1.417

1.584
22.034
3.374
23.815
4.126
10,511
865
3.714
388
14.875
768
2.413
6.683
11.841
1.101

1,667
27.186
3.843
28,503
5 677
13.382
1.039
7,083
462
22.728
836
3.336
9.424
15.452
1,605

1.932
8.993
2.642
7,104
3,761
132
504
3.099
95
2.080
340
1.518
1,888
2.197
1,219

1.972
10.371
2.622
7.678
3,853
105
447
4,567
183
2.439
440
1,695
1.959
2,583
1,182

80.049

108.092

142.223

37.5
114

42.096

20.822
3,141
133
16.659
14.158
2.919
1.116
3.177
710
1.307
1,011
244
17.823
424
13,246
510
*1.546

27,021
3,938
188
20.514
/
16.346
3,233
1.908
3.727
662
2.018
1,168
183
21,365
307
392
16.730
782
1.586

32,355
4.734
302
26,969
19 696
3.923
2.134
5.026
939
2,219
1.811
:344
28.446
288
259
21.958
993
2,147

5,256
1,808
24
6.255
6.529
1.763
889
2,817
21
1,146
280
30
2.952
353
892
8,704
9
2.123

5.892
2,282
28
7,484
8.203
2.383
1.240
2,857
13
1,255
344
79
3,926
277
834
9.323
14
2,135

99.151

122.136

154.543

41.851

48.569

140
240
329
1.194
269
1,995
216
1.605
1.269
101
817
*182
5.585
16.392
47
94
9.860
3.119
259
5 391
4 085
2.248
24

219
256
287
1,622
327
2.277
395
1.916
2.134
379
1,150
129
6.695
19.143
38
143
11.649
3.476
413
7.656
4.746
2,199
38

276
572
448
2,120
495
2.730
486
2.800
2.008
298
1,367
129
8.061
23,366
43
189
13.934
3.971
441
9.867
6.201
2.785
48

2,795
468
151
1.054
48
1,548
843
1.641
940
480
225
248
2.427
7.374
41
134
3.424
1.234
102
2.631
2.870
2.232
41

3,029
659
142
1,410
46
2,122
1.025
2.146
1,305
629
296
344
2.706
8.678
47
120
3,795
1.379
293
3.756
3.953
2,809

55.461

67,287

82.605

Total
Central Western Dist.Atch. Top.& Santa Fe System.
Alton
Bingham & Garfield
Chicago Burlington & Quincy
Chicago Rock Island & PacificChicago & Eastern Illinois
Colorado & Southern
Denver & Rio Grande Western_
Denver & Salt Lake
Fort Worth & Denver City....
NorthwesternPacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah..
Western Pacific
Total
Southwestern District
Alton & Southern
Burlington-Rock Island
Fort Smith & Western
Gulf Coast Lines
Houston & Brazos Valley
InternatIonal-Great Northern__
Kansas Oklahoma & Gulf
KaRNAB City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas.
Missouri-Kansas
-Texas Linen__
Missouri Pacific
Natchez dr Southern
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
San Antonio Uvalde & Gulf
Southern Pacific in Texas & La.
Texas & Pacific
Terminal RR. Assn. of St. Louis
Weatherford Min. Wells&N.W.

Total
29.917
37.325
57.738
45.105
24.565
Total
x Included In New York Central. y Included In Baltimore & Ohio RR. a Estimated. •Prevlout figures.




Total Revenue
F eight Loaded.

Railroads.

nos

33,041

as

40.747

Financial Chronicle

Volume 135

Department of Agriculture Reports
Farm Wages Lowest in 30 Years.
Farm wages are the lowest in 30 years. Wages range from
60 cents a day without board in South Carolina, Georgia,
and Mississippi, to $2.50 a day in Massachusetts, the average
for the country being $1.19 a day.
The farm wage index computed by the Bureau of Agricultural Economics was 84% of pre-war, on Oct. 1, a decline
of 3 points since July 1, and a decline of 29 points since Oct. 1
a year ago. Usually, farm wages rise during the third quarter of the year. On Oct. 12 the Bureau also reported the
following:
United

States

Farm wages have registered a non-seasonal decline in the third quarter
of the last three years, and attributes this to the general downward tendency
in prices paid producers for farm commodities. There was a sharp upturn
In prices during the third quarter this year, but it is explained that changes
in the direction of wage rate movements usually lag behind changes in the
direction of farm price movements and appear somewhat later.
Crop correspondents have reported to this Bureau that the demand for
farm workers was 60.8% of normal on Oct. 1, as against 62% on July 1.
and 68.9% on Oct. 1 last year. The supply of farm workers on Oct. 1 is
computed at 123.6% of normal, the same as on July 1. and 9% larger than
on Oct. 1 a year ago. The supply on Oct. 1 this year was 203.3% of the
demand.

Trend of Employment in United States During September According to United States Department of
Labor-Increases Reported in Employment and
Payrolls by 15 Industrial Groups.
The Bureau of Labor Statistics of the United States
Department of Labor reports the changes in employment and
pay rolls in September 1932, as compared with August 1932,
based on pay roll reports ending nearest the 15th of the
month, received from 54,851 identical establishments in 15
major industrial groups, having in September 4,248,706
employees, whose combined earnings in one week were
$79,486,136. The combined total of these 15 industrial
groups (not including building construction for which complete data are not yet available) shows an increase of 3.6%
in employment and an increase of 2.6% in pay rolls over the
month interval.
The Bureau also reported as follows under date of Oct. 16,
the trend of employment in the United States:
The greatest gains in employment and pay rolls from August to September
were reported in the canning and preserving industry. in which seasonal
increases of 26.6% in employment and 14.6% in pay rolls were shown. The
anthracite mining industry reported an increase of 13.6% in both items, and
the retail trade group reported a gain of 7.2% in number of workers combined with an increase of 6.3% in pay rolls. Employment in the bituminous
coal mining industry in September was 5.1% above the August level, and
pay rolls were 14.4% higher than in the preceding month. The manufacturing group of industries reported a gain of 4.5% in employment and
5% in pay rolls, and the dyeing and cleaning group reported an increase of
4.7% in number of workers and 8.5% in total earnings. Employment in
the quarrying and non-metallic mining and in the metalliferous mining
groups showed gains of 2.4% and 2.2%, respectively, with slightly larger
gains in pay rolls, and the wholesale trade group reported an increase
of
0.9% in employment coupled with a decline of .1 of I% in pay roll totals.
In the remaining six industrial groups (crude petroleum producing, telephone and telegraph, power and light, electric railway and bus operation.
hotels, and laundries) decreases in employment combined with slightly larger
declines in pay rolls were reported. The decreases in employment in these
groups, with the exception of the crude petroleum group, were 1% or less.
Manufacturing Industries.
Employment in manufacturing industries increased 4.5% in September,
as compared with August, and pay rolls increased 5%.
These changes are based on reports received from 18.165
establishments in
89 of the principal manufacturing industries in the United States, having in
September 2.620.867 employees whose combined earnings in one week
were
$44.626.055.
Twelve of the 14 groups of manufacturing industries reported
increases in
employment and pay rolls over the month interval, the textile
group
reporting the most pronounced gains in each item. 14.1% in
employment and
23.4% in pay rolls. The two groups reporting decreased employment and
pay rolls (transportation equipment and rubber goods) were affected
largely
by the curtailed operations in the automobile industry.
Increased employment was reported in 68 of the 89
manufacturing industries included in this monthly employment survey, and increased
pay
rolls were reported in 66 industries. The largest increase in employment from
August to September (68.7%) was a seasonal increase in the
cottonseed
oil, cake, and meal industry. The rayon industry reported an increase of
41% in employment and the typewriter and men's furnishings industries
reported gains in employment of 37.2% and 30.1%. respectively. Increases in employment ranging from 25.1% to 21.3% were reported in the
women's clothing, confectionery. fertilizer, and millinery industries. and
gains ranging from 19.6% to 10.2% were reported in the beet sugar,
stoves.
cotton goods, jewelry, dyeing and finishing textile, silk goods, shirts and
collars, hosiery, and cement industries. Gains in employment ranging from
9.7% to 5% were reported in 14 industries, including the men's
clothing,
furniture, woolen and worsted goods, steam fittings, and machine tools
industries. In the remaining 37 industries in which increased employment
was shown, the increases in 21 industries were over 2%. The most pronounced decline in employment over the month interval (14.9%) was
reported in the plumbers' supplies industry. The automobile industry
reported a decline of 12.9% in number of workers and a decrease of 32%
in pay roll totals from August to September. The locomotive industry
reported 9% fewer employees over the month interval and the cast iron
pipe and the rubber boot and shoe industries reported decreases in employment of 8.5% and 8.1%. respectively. The decreases in four of the 21
Industries reporting decreased employment from August to September were
lees than A of 1%.




2721

INDEX NUMBERS'OF EMPLOYMENT AND PAYROLL. TOTALS IN
MANUFACTURING INDUSTRIES.
(12 Month Average 1928=100.)

Manufaauring Industries.

Employment.
Sept.
1931.

General Index
Food and kindred products
Slaughtering and meat packing.
Confectionery
Ice cream
Flour
Baking
Sugar refining, cane
Beet sugar
Beverages
Butter
Textiles and their products
Cotton goods
Hosiery and knit goods-Silk goods
Woolen and worsted goods
Carpets and rugs
Dyeing and finishing textilesClothing, men's
Shirts and collars
Clothing, women's
Millinery
Corsets and allied garments
Cotton small wares
Hats,fur-felt
Men's furnishings
Iron and steel and their products.
not including machinery
Iron and steel
Cast-iron pipe
Structural Ironwork
Hardware
Steam fittings
Stoves
Bolts, nuts, washers and rivets.
Cutlery and edge tools
Forgings, Iron and steel
Plumbers' supPliesTin cans and other tinware
Tools. not Including edge tools.
Wirework
Lumber and allied products
Lumber, sawmills
Lumber. millwork
Furniture
Turpentine and rosin
Leather and its manufactures.Leather
Boots and shoes
Paper and printing
Paper and Pulp
Paper boxes
Printing, book and Job
Printing, newspapers& periodicals
Chemicals and allied products
Chemicals
Fertilizers
Petroleum refining
Cottonseed oil, cake and meal
Druggists' preparations
Explosives
Paints and varnishes
Rayon
808.1)
Stone. day and glass products- Cement
Brick, tile and terra cotta---Pottery
Glass
Marble, granite. slate. &c
Nonferrous metals and their prod Stamped and enameled ware-- Brass, bronze and copper prod Aluminum manufactures
Clocks, clock movements. &C
Gas and electric fixtures
Plated ware
Smelting and refining copper.
lead and zinc
Jewelry
Tobacco manufactures
Chewing and smoking tobacco
and snuff
Cigars and cigarettes
Transportation equipment
Automobiles
Aircraft
Cars.electric and steam railroad
Locomotives
Shipbuilding
Rubber products
Rubber tires and Inner tubes
Rubber boots and shoes.-.Rubber goods. other
Machinery, not Including transportation equipment-Agricultural implements
Electrical machinery,apparatus
and supplies
Engines and waterwheels
Cash registers and calculating
machines
Foundry & mach.shop prods..
Machine tools
Textile ma,,Illnery and parts-.
Typewriters and supplies
Radio
Railroad repair shops
Electric railroads
Steam railroads

Aug.
1932.

Sept.
1932.

Payroll Totals.
Sept.
1931.

Aug.
1932.

Sept•
1932.

70.9

56.0

58.5

56.7

36.3

38.1

89.7
88.3
89.5
86.8
88.9
91.2
82.8
54.9
89.5
113.7
78.6
75.4
81.6
69.5
81.4
69.7
86.0
79.8
74.6
85.4
79.6
105.1
87.9
85.8
70.6

80.6
85.0
71.5
81.6
82.5
80.7
78.4
52.3
74.8
103.5
62.3
61.2
72.7
53.7
70.4
47.1
68.1
62.3
50.7
53.4
62.4
92.6
68.5
68.0
48.3

83.6
87.1
88.9
76.5
84.6
80.4
77.4
62.6
77.0
101.8
71.1
71.9
80.9
61.2
76.1
47.2
77.8
68.3
57.4
66.8
75.7
96.2
73.0
74.4
60.2

85.1
85.3
82.6
82.4
83.3
86.7
79.7
55.8
84.5
104.0
65.3
62.4
67.4
59.2
68.3
52.6
76.6
59.3
59.0
73.6
68.3
84.0
74.2
69.1
60.7

66.2
67.8
53.3
66.4
67.9
67.6
68.9
41.0
63.8
85.6
40.1
38.4
46.2
36.8
50.4
24.2
47.3
35.7
31.8
34.9
43.1
61.6
44.3
44.0
26.0

68.7
70.8
69.1
61.5
68.9
68.7
88.5
49.4
62.0
83.4
49.5
50.3
58.3
41.3
56.4
25.3
60.0
42.9
34.7
45.5
59.4
70.7
53.1
57.0
37.7

67.2
65.6
53.3
69.3
61.5
51.0
63.8
72.6
72.9
70.1
73.2
81.7
84.3
105.3
50.8
47.0
49.3
61.4
53.2
83.3
77.5
84.7
88.4
79.5
83.1
86.0
103.0
82.9
95.2
50.1
69.9
30.6
86.5
96.0
78.3
153.5
102.8
62.3
58.2
46.9
73.8
72.3
79.1
65.9
70.7
64.4
58.9
61.5
88.5
71.3

50.8
50.4
30.7
44.6
46.4
33.1
43.7
60.3
63.0
53.0
59.0
75.5
54.4
90.2
36.4
34.5
34.6
41.6
41.5
75.2
64.4
77.9
77.3
72.2
66.6
70.9
95.1
67.6
81.3
34.2
62.8
27.5
68.2
69.2
66.0
92.8
93.9
42.3
38.0
29.9
52.0
52.7
52.2
50.2
57.0
49.3
46.3
41.6
60.6
57.5

51.8
51.3
28.1
42.7
48.2
35.5
51.7
61.0
63.6
49.9
50.2
81.2
59.0
92.7
37.7
35.2
34.5
45.3
42.1
77.0
67.0
79.5
78.8
74.1
69.8
71.7
96.3
73.4
82.3
42.5
63.4
46.3
69.7
71.6
66.9
130.9
94.5
43.5
41.9
29.6
54.6
54.3
52.9
52.4
61.7
50.3
47.5
40.1
63.2
60.5

44.2
40.4
37.7
54.1
39.3
34.3
48.0
50.7
52.6
44.6
56.1
55.3
54.8
88.0
39.7
36.1
38.7
46.9
50.3
65.4
70.6
63.9
83.9
64.2
77.7
80.8
103.2
78.7
81.0
44.0
68.4
37.6
91.3
81.5
72.5
148.8
100.9
48.9
48.2
30.8
51.7
61.4
67.7
53.0
56.3
47.7
45.7
54.0
73.5
57.6

23.1
19.5
15.8
25.0
20.9
18.8
23.8
29.2
39.5
25.1
34.4
45.2
26.6
59.5
19.3
17.3
19.9
21.8
36.7
49.8
48.2
50.3
62.7
46.7
52.8
56.8
83.0
56.1
58.6
25.2
56.2
28.1
65.7
43.6
48.7
74.5
81.5
25.5
23.4
13.7
26.7
36.5
35.6
30.6
34.6
27.8
23.5
26.4
41.4
34.0

24.2
20.4
15.8
23.9
22.7
20.4
31.6
29.5
39.1
21.9
27.5
52.4
32.4
63.2
20.8
18.1
20.0
25.7
35.1
52.7
51.5
53.0
654
49.4
59.0
58.6
84.7
59.5
58.5
29.8
54.6
40.3
68.1
44.8
51.6
110.8
83.3
26.0
24.5
13.7
29.8
36.4
35.6
33.6
40.0
29.3
25.8
26.9
45.1
37.9

68.1
52.5
81.4

53.9
35.4
70.3

54.9
40.7
72.0

55.3
43.1
66.4

33.1
21.9
52.5

35.7
27.9
54.2

82.4
81.3
64.1
65.4
244.0
26.3
24.5
90.5
72.7
67.3
69.5
88.0

88.7
67.9
50.5
52.0
170.7
18.6
15.9
71.5
64.1
62.2
53.8
76.2

87.5
70.0
45.0
45.3
161.5
19.3
14.5
69.0
62.3
59.3
49.5
78.8

75.1
65.4
42.1
40.4
245.8
17.8
21.9
77.4
53.7
49.1
57.1
67.5

71.8
50.2
32.0
31.8
183.2
11.1
11.6
52.6
40.1
39.0
33.4
47.7

74.2
51:8
23.6
21.6
167.2
11.1
9.4
51.6
37.6
32.2
37.3
53.3

66.2
31.0

45.2
21.7

45.3
21.0

48.4
23.2

25.7
15.5

26.2
14.6

77.3
57.5

53.5
39.4

50.6
39.3

64.3
40.8

33.4
23.1

32.9
22.6

77.9
60.8
55.8
72.6
76.6
114.1
58.4
74.8
57.1

62.1
42.8
29.6
49.3
40.7
63.1
44.8
66.7
43.1

62.9
43.4
30.2
52.3
55.8
68.1
46.5
66.5
44.9

57.6
40.8
39.8
54.4
51.8
95.3
52.4
68.5
51.1

45.1
21.9
16.9
28.9
21.7
44.9
33.0
54.6
31.3

45.4
22.2
17.7
33.0
29.1
56.1
33.5
53.7
31.9

United States Department of Labor Reports Slight
Increase in Wholesale Prices From August to
September.
.
The index number of wholesale commodity prices as computed by the Bureau of Labor Statistics of the United States
Department of Labor shows a slight increase from August
1932, to September 1932. This index number, which includes 784 commodities or price series weighted according
to the importance of each article, and based on the average
prices for the year 1926 as 100.0, averaged 65.3 for September
as compared with 65.2 for August, showing an advance of
about .2 of 1% between the two months. When compared

with September 1931, with an index number of 71.2, a
decrease of 8Y4% has been recorded in the 12 months.
Continuing, the Bureau also said under date of Oct. 17:
The farm products group showed no change between the two months.
Increases were recorded in the average prices of calves, sheep, cotton, eggs.
lemons, oranges, tobacco and wool. Decreases were recorded in the average
prime of most grains, cows, hogs, onions and potatoes.
Among foods, price increases were reported for butter, cheese, dressed
poultry, coffee, oleomargarine, granulated sugar and most canned vegetables. On the other hand, condensed milk, bread, rolled oats, bananas,
lamb, mutton, fresh and cured pork, veal, lard, and raw sugar averaged
lower than in the month before. The group as a whole showed no change in
September when compared with August.
The hides and leather products group increased more than 334% during
the month, due to sharp increases in hides and skins and leather. Decreases
were shown for other leather products, with boots and shoes showing
practically no change in average prices. Textile products as a whole increased 5 % from August to September, all sub-groups showing advancing
prices for the month.
In the group of fuel and lighting materials decreases in the average prices
of bituminous coal, electricity, gas, and petroleum products forced the
group as a whole to decline nearly 2%. Anthracite coal advanced during
the month and coke remained at the August level.
Metals and metal products showed no change for September. Increases
in iron and steel products and non-ferrous metals were offset by &creases
In agricultural implements, motor vehicles, and plumbing and heating
fixtures. In the group of building materials brick and tile, lumber, paint
and paint materials, and other building materials moved upward and cement
and structural steel showed no change in average prices for the two months.
The group as a whole advanced 1 % from August to September.
Chemicals advanced slightly between August and September. Drugs and
pharmaceuticals, fertilizer materials, and mixed fertilizers showed recessions
,
during September, causing the group to decline a little more than 35 of 1%
from the month before. As a whole the house furnishing goods group showed
an upward tendency from the previous month.
The group of miscellaneous commodities increased approximately .2 of
1% between August and September, advancing prices of automobile tires
and tubes, and crude rubber more than counterbalanced decreasing prices
for cattle feed, paper and pulp, and other miscellaneous commodities.
The September averages for raw materials, semi-manufactured articles,
non-agricultural commodities and all commodities other than farm products
and foods were above those for August, with increases ranging from .3 of
1% in the case of non-agricultural commodities to nearly 5% in the case of
-manufactured articles. Finished products declined about M of 1% in
semi
the month period.
Between August and September price increases took place in 230 instances, decreases in 138 instances, while in 416 instances no change in
price occurred.
INDEX NUMBERS OF WHOLESALE PRICES BY °nouns AND SUBGROUPS OF COMMODITIES (1928=100.0).
Groups and Suer/mum

September
1931.

71.2
All commodities
60.5
Farm products
44.2
Grains
61.0
Livestock and poultry
65.4
Other farm products
73.7
Foods
84.6
cheese and milk
Butter,
70.3
Cereal products
. 71.0
Fruits and vegetables
73.6
Meats
68.5
Other foods
85.0
leather products
Hides and
93.5
Boots and shoes
58.6
Hides and skins
83.4
Leather
101.1
Other leather products
64.5
Textile products
75.5
Clothing
61.5
Cotton goods
59.2
Knit goods
43.5
Silk and rayon
65.7
Woolen and worsted goods
74.1
Other textile products
67.4
Fuel and lighting materials
94.3
Anthracite coal
83.9
Bituminous coal
81.5
Coke
100.6
Electricity
103.4
Gas
38.9
Petroleum products
83.9
Metals and metal products
94.1
Agricultural implements
82.3
Iron and steel
95.4
Motor vehicles
59.0
Non-ferrous metals
82.6
Plumbing and heating
77.0
Building materials
82.6
Brick and tile
75.8
Cement
66.9
Lumber
77.6
Paint and paint materials
82.6
Plumbing and heating
81.7
Structural steel
82.6
Other building materials
76.3
Chemicals and drugs
79.8
Chemicals
61.7
Drugs and pharmaceuticals
74.2
Fertilizer materials
77.6
Mixed fertifizers
82.7
Houseturnishing goods
Furnishings
81.2
84.6
Furniture
68.2
Miscellaneous
Automobile tires and tubes
46.0
44.4
Cattle feed
80.7
Paper and pulp
10.6
Rubber, crude
86.7
Other miscellaneous
62.7
Raw materials
66.7
Semi-manufactured articles
75.9
Finished products
73.4
Non-agricultural commodities
73.9
All enmmodltles less farm products and foods_
•Data not yet available.

August
1932,

September
1932.

65.2
49.1
38.2
52.8
50.8
61.8
60.2
66.0
55.6
61.9
62.1
69.7
84.4
39.3
60.0
82.3
54.0
66.0
52.6
48.5
29.5
53.4
67.4
72.1
86.0
81.3
76.7
104.4
107.0
48.9
80.1
84.9
78.7
95.3
48.5
67.1
69.6
75.2
79.0
55.5
67.2
67.1
81.7
78.3
73.3
79.7
57.0
66.4
68.3
73.6
74.8
72.6
64.6
40.1
47.4
76.3
7.9
84.2
55.7
57.9
70.7
68.5
70.1

65.3
49.1
37.4
51.2
52.1
61.8
60.6
65.8
52.5
60.9
64.6
72.2
84.4
48.2
63.2
81.5
57.0
67.3
57.9
50.4
32.6
56.7
88.6
70.8
87.7
81.1
76.7
()
5
(*)
46.7
80.1
84.9
79.7
92.7
51.6
66.8
70.5
75.4
79.0
56.3
68.2
66.8
81.7
79.9
72.9
79.8
56.6
63.6
66.9
73.7
74.7
72.7
64.7
42.7
45.9
75.5
8.2
83.2
56.2
60.7
70.4
68.7
70.4

Commodity Prices Slightly Lower During Week Ended
Oct. 15 According to National Fertilizer Association.
Commodity prices again declined during the week ended
Oct. 15, but the loss was smaller than for the preceding week.
The wholesale price index of the National Fertilizer Asso-




Oct. 22 1932

Financial Chronicle

2722

ciation declined from 60.9 to 60.7, a loss of only two points.
During the preceding week the index dropped 11 points.
The decline during the latest week marked the fifth consecutive weekly loss in commodity prices. The latest index
number, 60.7, is still more than one full point higher than
the record low, :59.6, recorded for the week ended June 11
1932. The high point of the recent upturn in commodity
prices was shown for the week ended Sept. 10, when the
index advanced to 62.7. (The three-year average 1926-1928
equals 100.) The Association also said as follows on Oct. 17:
During the latest week, five groups advanced, five declined and the remaining four showed no change. The changes in the individual groups
were small. Fuel, building materials, metals, fats and oils, and miscellaneous commodities were higher. Foods, grains, feeds and livestock,
textiles, automobiles and fertilizer materials were lower.
Thirty-six commodites showed price losses while 23 commodities were
higher during the latest week. During the preceding week, there were only
nine price advances, while there were 52 price losses. Important raw
materials that declined during the latest week were rubber, cotton, corn,
wheat, cattle, light weight hogs, lead, wool and silk. Other commodities
that declined were bread, flour, apples, beans, foodstuffs, rosin, cotton
yarns, lard and vegetable oils. Price gains were shown for petroleum,
gasoline, rubber tires, raw sugar, milk, potatoes, sheep, lambs, copper.
silver and oak-flooring.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 478 COMMODITY
PRICES (1926-1928=100)•
Per Cent
Each Group
Bears to the
Total Index.

Group.

Latest
Week
Oct. 15
1932.

Preceding
Week.

Month
Ago.

Year
Ago.

23.2
16.0
12.8
10.1
8.6
6.7
6.6
6.2
4.0
3.8
1.0
.4
.4

Foods
Fuel
Grains,feeds and livestock.Textiles
Miscellaneous commodities._
Automobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural implements

62.0
62.3
40.5
46.3
62.0
86.6
70.5
69.9
77.4
42.1
87.4
61.9
69.0
92.1

62.1
61.5
40.9
47.6
81.4
89.0
70.4
69.7
77.4
41.8
87.4
62.0
69.0
92.1

63.4
65.4
43.7
48.0
62.0
89.0
71.4
70.2
77.4
42.5
87.4
61.7
60,2
92.1

71.2
59.4
50.5
50.0
66.3
89.3
76.0
75.6
86.0
64.6
88.8
71.2
79.7
95.2

60.7

60.9

112.5

an 7

.a

100.0

All groups combined

Agriculture Only One of Major Groups Gainfully
Employed to Show Constant Downward Trend
Since 1870 in Ratio of Persons Employed to Population.
According to the National Industrial Conference Board,
In 1870 there were more than 180 persons out of every 1,000
of the population of the United States engaged in farming,
lumbering and fishing. In 1930 there were but slightly
more than 87 out of every 1,000 engaged in these pursuits.
Since 1910 there have been some highly significant changes
in the relative importance of certain occupations. During
the 10 years ending with 1920 there was a decrease of 74%
in the relative number of livery stable employees and an
increase of 557% in the relative number of garage employees.
These and many other changes of particular significance
in connection with the employment situation are graphically
shown in a chart of occupational trends in the United States
from 1870 to 1930, issued by the National Industrial Conference Board. With regard thereto the Conference Board
on Oct. 12 said:
The chart shows that the impressive decline in relative importance of
the agricultural group was, until 1920, partly offset by the growing Importance of the group composed of manufacturing and mechanical pursuits,
but that in the last 10 years, ending with 1930, this group did not
hold its own.
There was a striking decline between 1920 and 1930 in occupations connected with railroad transportation and shipping. Offsetting such changes,
however, there appeared during that period a notable increase in the importance of occupations connected with commercial service in insurance, in
real estate, and in stores and personal service in barber shops and beauty
parlors. During the decade ending with 1920 there was a alight decrease,
about 3%, in the relative number of steam railroad employees, but in the
next decade ending with 1930 there was a decrease of over 20%.
Of the major groups of those gainfully employed, the agricultural group
Is the only one that has shown a constant downward trend since 1870 in the
ratio of persons employed to population. In 1870 the manufacturing and
mechanical group numbered only 71 out of every 1,000 of population; in
1930 the proportion was 116 per 1,000. The trade and transportation group
showed the largest increase in relative importance, the group comprising
35 of every 1,000 of population in 1870 and 114 in 1930.
The chart indicates also remarkable changes in the relative importance
of certain selected occupations in transportation and non-industrial fields.
One of the most interest changes is the steady decline in the number of
physicians in proportion to the population. In the 10 years ending with
1920 there was a decline in the ratio of 17%, there being 1,371 physicians
per million of population in 1920. By 1930 this number had fallen to
1,253 per million of population, a further decrease in the ratio of 9%.
In 1920 there were 1,411 per million of population engaged in the real
estate business and by 1930 the number had increased to 1,955, a ratio
Increase of 89%.
The largest increase in this selected list is shown in the insurance field.
In the 10 years ending with 1930 the ratio of those engaged in insurance
Increased 83%, there having been 2,331 out of every million of population
In 1930 as compared with 1,277 in 1920. The next largest increase was
in the number of garage employees. There were 1,113 out of every million
of population in 1930 engaged in the garage business as compared with 696
In 1920, an increase of 60%. This increase of ratio, however, was not to
be compared with the 557% increase shown in the preceding decade.

Volume 135

Financial Chronicle

By way of contrast, the chart shows the decline in the livery stable
business. In the decade ending with 1920 there was a decline of 74% in
the ratio of employment in this business to population, with 1920 showing
but 180 persons out of every million of population so engaged. By 1930
the number was 54 per million of population, or a decline of another 70%.
The number of barbers and manicurists in relation to population fell off
slightly between 1910 and 1920, there being 2,045 to every million of
population in 1920. But between 1920 and 1930 there was an increase
of 49% in the ratio of those engaged in these service occupations, so that
in 1930 there were 3,049 to every million of population. It should be noted
that hairdressers are included in this occupational group, and the reason
for the increase is doubtless to be found in the prevalence of the beauty
parlor.

October Survey of National Association of Credit Men
Indicates Upturn in Sales and Collections.
A decided upturn in collections and sales throughout the
country is revealed in the October survey by "Credit and
Financial Management," official publication of the National
Association of Credit Men. The Association notes that previous months had witnessed a slowly rising curve to indicate
-improvement, but in the current month the turn upward
is sharp and decisive, emphasizing the favorable indications
now being reported in many parts of the country. Under
date of Oct. 17 the Association says:
Five cities, in contrast to one in September, note collections as "good."
In the sales classification there are also five cities in the "good" column
instead of two. Collections are reported as "good" in Springfield, Mass.;
Austin, Tex.; Charlotte, N. 0.; Albany, N. Y., and New York City.
Austin, Charlotte and Albany also reveal "good" sales, and to this list
are added Dallas, Tex., and Helena, Mont.
Delving through the reports from the 105 correspondents in the country's
major markets it is seen that the sales betterment is well in advance of the
collection betterment as to intensity, but this is interpreted as a logical
condition because collections invariably follow sales in wholesale circles
by a margin of 30 to 60 days. Supplementary reports from various States
indicate the improved outlook:
Arkaneas.-Ft. Smith reports collections fair and a marked increase in
sales. Collections and sales in Little Rock are fair, and an upward trend
in business is Been in almost all lines.
California.
-There has been a definite improvement in collections and
sales in Los Angeles. Oakland finds collections and sales fair and expects
pick-up in both during the coming months. Collections in San Francisco
have shown a decided tendency toward larger volume in sales. The general
outlook is good.
Louisiana.
-New Orleans finds collections fair, with one section reporting
collections very good. Sales are fair. Shreveport reports the following:
"While no improvement is yet noted in wholesale collections, some houses
report sales for the past month as the best for the corresponding period in
three years. The prices of many commodities are increasing and the
increase in the price of cotton is having a very marked effect. The cotton
crop in this section is very short, but a good feed crop has been made.
Improvement in all lines is anticipated within the next few months. A
better feeling seems to exist throughout the section, and within the next
few weeks an improvement in collections is anticipated."
-Both sales and collections have improved in Duluth. MinneMinnesota.
apolis reports the following: "There is an indication of improvement in
collections and evidence of the usual seasonal demand for merchandise and
a slight up-trend in sales. Further recovery in prices of live stock and
grain should improve collections in St. Paul. A feeling of optimism is
apparent among buyers, who are replenishing their stocks."
New York.
-Binghamton reports collections fair, with two sections
reporting collections good. Sales are fair. Collections in New York are
good and sales fair. One section reports sales good with the collection
turnover identical with last year. Bankruptcies have been greater in this
section.
Texas.
-There has been a decided pick-up in collections and sales in
Austin due to the rise in cotton. The Dallas market wholesalers have just
reported one of the best buying seasons in two years. Collections are fair.
Ft. Worth reports the following: "Collections on current accounts continue
good, with a decline in sales of approximately 30% over the same period
last year. Jobbers and manufacturers are doubtless carrying receivables
which are of long standing, but with good prospects for a large cotton crop,
and a fair price for this commodity practically assured, some of these old
receivables will be turned into cash before many more months have passed.
Everyone seems optimistic for the immediate future, and with anything
like a fair price for cotton this fall, business is bound to be better."
Waco reports "prospects look better for sales and collections, when the
cotton crop begins to move all over Texas. If the price stays around 7%
or 8c., we will see quite an improvement." Wichita informs us that sales
have improved and merchants plan to abandon the "sale" idea and expect
to make a profit on merchandise. They also expect to price their goods
instead of letting the public set the price. It looks better in this section
than it has in the past few years. The farmers are raising cotton on a
basis of 40. a pound, but it now looks as though they will receive more
than 80. The prospect for crops is better than it has ever been in this
territory.

"Annalist" Weekly Index Slightly Lower During Week
of Oct. 18-Indices of Domestic and Foreign Wholesale Prices.
The "Annalist" Weekly Index of Wholesale Commodity
Prices sagged 0.2 points to 90.6 on Oct. 18 from 90.8 (revised) the week before. The week's movements were mixed,
according to the "Annalist," with steers, cotton and hides
reporting the most important losses, and corn, hogs, cotton
goods and rubber also lower. Continuing tho "Annalist"
also reported:
Refined sugar, on the other hand, recovered its level of a fortnight ago,
while the partial recovery of crude petroleum and gasoline prices reflected
the further curtailment of crude production in the Texas and Oklahoma
fields, in consequence of which daily crude production for the 'United States
declined to 2,130.650 barrels for the week ended Oct. 15, with a reduction
of 42,350 barrels from the week previous.




2723

THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(Unadjusted for Seasonal Variation (1913=100).
Oct. 18 1932. Oct. 11 1932. Oct. 20 1931.
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous

71.7
97.2
575.6
126.8
97.2
106.2
95.3
78.9
OA A

All enmmnrilttotra

*73.0
96.5
*76.8
125.1 •
97.2
106.0
95.3
79.2
*OA e

85.2
112.9
85.4
127.7
100.2
112.6
97.3 •
90.4
ml A

*Revised. x Provisional.
Foreign price indices for September generally reflected the summer's
advance in the United States, although the extent of the rise varied greatly
in different countries. In Canada, September, like August,showed a small
though definite Increase over the preceding month; that the increase was
not comparable to our own despite the proximity of the two countries was
due to the insulation of Canadaian prices through the absence of free gold
exchange.
DOMESTIC AND FOREIGN WHOLESALE PRICE INDICES.
(Measured in Domestic Currency; 1913=100.)
Sept.
1932.

Aug.
1932.

July
1932

Sept. Per Cent Change
1931. Month. Year.

95.2
United States of Amer_
94.2
92.1
100.5
+1.1
-5.3
104.5
104.3
Canada
104.0
108.9
+0.2
-4.0
102.1
Great Britain
99.5
97.7
99.2
+2.6
+2.9
397.0
France_x
394.0
404.0
437.0
+0.8
-9.2
95.4
Germany
95.9
108.6
y
Y
Y
300.0
300.0
303.0
Italy
330.0
+0.1
117.8
Japan
111.6
Y
113.1r
Y
Y Not available. a July 1914.-=100.0.
Indices used: U. S. A., "Annalist:" Canada, Dominion Bureau of Statistics:
Great Britain, Board of Trade; France, Statettioue Generale; Germany. Federal
Statistical Office; Italy, Milan Chamber of Commerce. Japan, Bank of Japan.
Great Britain reported a further sharp rise for September, the increase
from July being 4.5%. In France, where prices have been slow in coming
-3 points, against a loss of 10
down, the advance in September was small
points in August. The German average for September, is not available,
but the weekly figures indicated a steady or slightly upward tendency.
In Italy. where August prices failed to show any change. the September
index shows a small rise.
August figures for Japan show sharply higher prices, following a small
advance in July. The degree of real advance is difficult to determine,
however, since the price level there is also influenced by the rate of yen
exchange and the extent of yen inflation.

Production of Electricity in the United States Off 9%
as Compared with Corresponding Period Last Year.
The production of electricity by the electric light and
power industry of the United States for the week ended
Saturday, Oct. 15, was 1,507,503,000 kwh., according to
the National Electric Light association. The output for
the Atlantic seaboard was down 4.7% from the same period
last year and compares with a decrease of 4.4% for the
week ended Oct. 8. New England, taken alone, was down
0.2%, against 2.4% in the previous week. The Central
industrial region, outlined by Buffalo, Pittsburgh, Cincinnati, St. Louis and Milwaukee, showed a decrease of 11.3%,
compared with a decline of 11.3% the week before. The
Pacific Coast was down 9.4%, against a decrease of 10.1%
in the Oct. 8 week.
Arranged in tabular form, the output in kilowatt hours
of the light and power companies for recent weeks and by
months since the first of the year is as follows:
Weeks
Ended

1932.

1931.

1930.

1929.

1932
Under
1931.

Jan. 2 _ _ _ 1,523,652,000 1,597,454,000 1,680,289,000 1,542,C00.000 4.6%
Feb. 6 ____ 1.588,853,000 1,679,016,000 1,781,583,000 1.726,161,000 5.4%
Mar. 5 ___ 1,519,679,000 1,664,125,000 1,750,070,000 1,702,570.000 8.7%
Apr. 2 ____ 1,480,208,000 1,679,764,000 1,708,228,000 1.663,291.00() 11.9%
May 7 ___ 1,429,032,000 1,637,296,000 1,689,034,000 1,698,492,000 12.7%
June 4 ____ 51.381,452,000 1,593.622,000 1,657,084,000 1.689,925,000 13.3%
July 2 ____ 1,456,961,000 51,607,238,000 1,594,124,000 1,592,075,000 9.3%
Aug. 6 ........ 1.426,986,000 1,642.858,000 1,691,750,000 1,729,667,000 13.1%
Sept. 3 __ 1,464.700.000 1,635.623,000 1,630,081,000 1,774,588,000 10.4%
seat.10 ____ 1,443,977,000 1,582,267,000 1,726.800,000 1,806,259,000 8.7%
SePt.17 ___ 1,476,442,000 1,662.660.000 1,722,059,000 1,792,131,000 11.2%
Sept.24 _-- 1,490.863,000 1,660,204,000 1,714,201,000 1,777.854.000 10.2%
Oct. 1 ____ 1,499,459,000 1,645.587,000 1,711,123,000 1,819,276,000 8.9%
Oct. 8 ___. 1,506,219,000 1,653,369,000 1,723,876,000 1,806,403,000 8.9%
Oct. 15 ___ 1,507,503,000 1,656,051,000 1,729,377,000 1,798,633,000 9.0%
Months
January. .. 7,014,066,000 7,439,888,000 8,021.749.000 7,585,334,000 5.7%
February_ 6.518,245.000 6,705,564,000 7,066,788.000 6,850,855,000 y6.1%
March
6,781,347,000 7,381.004,000 7,580,335.000 7,380,263,000 8.2%
April
6,303,425,000 7,193,691,000 7,416,191,000 7,285,350,000 12.4%
May
6.212,090,000 7,183,341,000 7,494,807.000 7,486,635,000 13.5%
June
6,130,077,000 7,070,729,000 7,239,697,000 7,220.279,000 13.3%
July
6,112,175.004) 7,286,576,000 7,363.730,000 7,484,727,000
August
6.310 867 non 7 1800RAnnn 7 501 100 000 7 772 070 nnn 16.1%
11 eel
Including Memorial Day
Change computed on basis of average daily reports
Including July 4 holiday.

Decrease of 18% in Life Insurance Sales in United
States During September Compared With Same
Month Last Year.
Reports of September sales of new Ordinary life insurance
compiled by the Life Insurance Sales Research Bureau at
Hartford, Conn., show a decrease in volume of 18% when
compared to September a year ago. Figures for the nine
months of 1932 reveal a decrease of 19% compared to the
same period last year. k smaller decrease for the month
indicates that the trend is slightly upward. The improve-

ment during the month was greatest in the West North
Central and New England sections. Rhode Island was
the only State to show a gain in sales during September.
The following table supplied by the Bureau Oct. 19 gives
by sections a comparison of sales for September and for the
nine months'of 1932 to the same period last year:
Nine Months 1932
Compared to
Nine Months 1931.
81%
827
83
81
78 cl
78%
79
83
77
844

September 1932
Compared to
September 1931.
United States total
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Pacific

854
85V
81%
83

771

80'7,
845
75%

GOLD AND SILVER.

Country's Foreign Trade in September-Imports and
Exports.
The Bureau of Statistics of the Department of Commerce
at Washington on Oct. 18 issued its statement on the foreign
trade of the United States for September and the nine months
ended with September. The value of merchandise exported
in September 1932 was estimated at $132,000,000, as compared with $180,228,000 in September 1931. The imports of
merchandise are provisionally computed at $98,000,000 in
September the present year, as against $170,384,000 in
September the previous year, leaving a favorable balance in
the merchandise movement for the month of September of
approximately $34,000,000. Last year in September there
was an unfavorable trade balance in the merchandise movement of $9$44,000. Imports for the nine months ended
September 1932 have been $1,015,301,000, as against
$1,618,674,000 for the corresponding nine months of 1931.
The merchandise exports for the nine months ended September 1932 have been $1,188,894,000, against $1,841,775,000,
giving a favorable trade balance of $173,593,000 for the
nine months, against $223,101,000 in the same period a
year ago.
Gold imports totaled $27,957,000 in September, 1932,
against $49,269,000 in the corresponding month of the previous year, and for the nine months ended September, 1932,
were $220,013,000 as against $367,261,000 in the same period
a year ago. Gold exports in September were only $60,000,
against $28,708,000 in September, 1931. For the nine
months ended September, 1932, the exports of the metal
foot up $809,438,000, against $30,545,000 in the corresponding nine months of 1931. Silver imports for the nine months
ended September, 1932, have been $15,948,000, as against
$20,738,00J in the nine months ended September, 1931, and
silver exports were $10,400,000, compared with $21,287,000.
The following is the complete official report:
TOTAL VALUES OF EXPORTS AND IMPORTS OF THE UNITA D STATES
(Preliminary figures for 1932 corrected to Oct. 14 1932.)
MERCHANDISE.
9 Months Ended Sept.

September.
1932.

Excess of exports

1931.

1932.

1931.

Increase(+)
Decrease(-)

1.000
Dollars.
132.000
98.000

1,000
Dollars.
180.228
170.384

1.000
Dollars.
1.188,894
1,015,301

1.000
Dollars.
1,841.775
1,818.674

1.000
Dollars.
-652,881
-603,373

34,000

9,844

173,593

223,101

"Prep. ft I m nnrts4

--

9 Months Ending Sept.

September.
1932.

Excess of export& _
EXCM4 of IMOOrt9

1931.

Increase(+)
Decrease(-)

1,000
Dollars.

1,000
Dollars.

1,000
Dollars.

1,000
Dollars.

28,708
49,269

27.897

20,581

869
2,352

Silver
Exports
Imports

1932.

60
27,957

Excess of exports_
Excess of imports__.

1931.

1,000
Dollars.
Gold
Exports
Imports

2,183
2,355

10,400
15,948

1 48:1

172

5.548

809,438
220,013

30,545
367,281

+778,893
-147,248

589,425
336.716
21,287
20,738

-10,887
-4,794)

549

EXPORTS AND IMPORTS OF GOLD AND SILVER, BY MONTHS.

The figures are based on the experience of companies
having in force 88% of the total legal reserve Ordinary life
insurance outstanding in the United States.

Exports
Imports

Oct. 22 1932

Financial Chronicle

2724

Gold.
1932.
ExportsJanuary
February
March
April
May
June
July
August
September
October
November
December

1931.

1930.

Silver.
1929.

1932.

1931.

1930.

1929.

1,000 1.000 1.000 1,000 1,000 1,000 1,000 1.000
Dollars. Dollars. Dollars Dollars. Dollars. Dollars. Dollars. DOWSTS.
107,863
54 8,948 1,378 1,611 3.571 5.892 8,264
128.211
14
207 1.425
942 1,638 5,331 8.595
43.909
26
290 1.635
967 2,323 5,818 7,814
49.509
27
110 1,594 1,617 3,249 4,646 5,752
212.229
628
82
467 1.865 2,099 4.978 7,4.85
226,117
40
26
550 1,268 1,895 3,336 5.445
23,474 1.009 41.529
807
828 2,305 3.709 8.795
18,067
39 39,332
881
433 2,024 4.544 8,522
60 28,708 11,133 1.205
869 2,183 3,903 4,374
398,604 9.266 3.805
____ 2,158 4,424 7.314
4,994 5,008 30.289
---.
872 4,102 8,878
32,651
38 72,547
-.__ 2.188 3.472 6.389

9 mos. end.Sept 809,438 30,545 101,656 9,942 10,400 21,287 42,156 81,047
12 mos.end. Dec.
486,791 115,967 116,583
26,485 54,157 83,407
Imports
January
February
March
April
May
tune
July
kugust
September
October
November
December

34,913
37.844
19,238
19.271
18,715
20 070
20,037
24.170
27,957

34,426
16.156
25.671
49.543
50.258
63.887
20.512
57.539
49,269
60.919
94,430
89.509

12.908
60.198
55.768
65.835
23.552
13.938
21.889
19,714
13.680
35,635
40.159
32,778

48.577
26.913
26.470
24.687
24.098
30.762
35.525
19.271
18.781
21,321
7.123
8,121

2,097
2.009
1,809
1,890
1,547
1.401
1,28t
1,554
2,352
____
____
---_

2,896
1.877
1,821
2,439
2.636
2,364
1,663
2,685
2,355
2.573
2,138
3.215

4.756
3.923
4.831
3.570
3,486
2,707
3,953
3,492
3.461
3,270
2,652
2.660

8.260
4.453
6,435
3,957
4,602
5,022
4.723
7,345
4,111
5,403
5,144
4.479

9 mos. end.Sept 220,013 387,281 287,482 255,084 15,948 20,738 34,179 48,014
112 mos.eud. Dec.
612,119 398.0.54 291,659
28,664 42,761 63,940

Canadian Building Permits for September and for First
Nine Months.
According to the Dominion Bureau of Statistics, the
value of the building permits issued by 61 cities during
September stood at $2,203,230; this was a decrease of $1,128,048, or 33.9%,as compared with the total of $3,331,278
in August 1932, and of
,204,769, or 78.8%, in comparison with the aggregate of $10,407,999 recorded in
September of last year. Further details are given as follows:
Some 60 cities furnished detailed statistics for September, showing
that they had issued 400 permits for dwellings estimated to cost approximately 51,000.000. and over 1,800 permits for other buildings valued at
over 11,000.000. During August, authority was granted for the erection
of about 300 dwellings and 2,000 other buildings, estimated to cost approximately $900,000 and 12.200.000. respectively.
Saskatchewan reported an increase in the estimated value of building
as compared with August 1932, but elsewhere there were declines, that
of $689.796. or 60.2% in Quebec being greatest.
As compared with September 1931. there were losses In all Provinces.
In this comparison also Quebec showed the largest loss of $4,039,086, or
89.9%.
The larger cities-Montreal. Toronto, Winnipeg and Vancouver
registered lower totals of permits issued than in either the preceding month
or the same month of last year. Of the other centres, Sydney, Westmount,
Chatham. Fort William, Niagara Falls, St. Thomas, East
Windsor, Brandon, Kamloops and Nanaimo showed increases as compared with both
August 1932 and September 1931.

EXPORTS AND IMPORTS OF MERCHANDISE. BY MONTHS.
1932.
ExportsJanuary
February
March
April
May
June
July
August
September
October
November
December

1931.

1930.

1,000
1.000
1.000
Dollars. Dollars. Dollars.
150.022 249,598 410.849
153.972 224.346 348,852
155.250 235.899 369,549
135,359 215.077 331,732
132.065 203,970 320.034
114,259 187.077 294.701
10(i.r 30 180.772 266.761
101)0)14) 164.808 297.765
132.000 180,228 312.207
204.905 326.898
193.540 288.978
184,070 274.856

1929.

1928.

1927.

1.000
Dollars.
488.023
441,751
489,851
425.264
385.013
393.186
402,861
380.564
437.163
528.514
442.254
426.551

1.000
Dollars.
410,778
371,448
420.617
363.928
422.557
388.661
378.984
379.006
421.607
550.014
544,912
475.845

1.000
Dollars.
419.402
372.438
408.973
415.374
393.140
356.968
341.809
374.751
425.267
488.675
460.940
407.641

9 months ending Sept 1.188,894 1,841.775 2,952.4503,843,676 3.557,586 3,508,120
2.424,289 3,843,18. 5,240,995 5,128.356 4.865,375
12 mouths ending Dec.
Imports
January
February
March
April
May
June
July
August
September
October
November
December

135.520
130.978
131.189
126.522
112.278
110.296
79.420
91 100
98,000

183.148
174.946
210,202
185.706
179.694
173.455
174.460
166.679
170.384
168.708
149,480
153.773

310.968
281.707
300.460
307.824
284.683
250.343
220.558
218,417
226.3.52
247.367
203.593
208.636

368.897
369,442
383.818
410,666
400.149
353.403
352.980
389,358
351.304
391.083
338.472
309.809

337.916
351.035
380.437
345,314
353.981
317.249
317.848
346,715
319.618
355.358
326,565
339.408

358.841
310.877
378.331
375.733
346.501
354.892
319.298
368, 75
342.154
355.739
344.269
331.234

1,618,674
3.153.502
Sept 1.015,301 n noln /.0e 2,401.312 3,360,017 3.070.113 • ILJA ,A0
9 months ending ....
..
2 non MO A nnn not A dlr. AAA
•
..
•.
•••
.
.
•
•
.
12mont seri 11




Cumulative Record for First Nine Months, 1932.
The following table gives the value of the building authorized by 61 cities
during September, and in the first nine months of each year since 1920,
as well as index numbers for the latter, based upon the total for the corresponding period of 1926 as 100. The average index numbers of wholesale
prices of building materials in the first nine months of the years since 1920
are also given (average 19260100).

Year,

1932
1931
1930
1929
1928
1927
1926
1925
1924
1923
1922
1921
1920

Value of
Permits
Issued
in Sept.
12.203,230
10.407.999
11.093.020
17.117,017
20.374,149
14.462.243
11.047.503
10.140.853
15.055.250
10.763.898
11.597.034
10.907.828
9 R42 677

Value of
Permits
Issued
In First
Nine Months.
532,340,740
88.602,995
126,361.350
186.011.017
165.621.634
141.152.535
120.163.936
98.364,181
96.817.333
108.319.972
116.778.450
88.573.442
96 146 278

Indere' of Value Moos. Indexes of
of Permits
Wholesale Prices
Issued in
of Building
Firm Nine
Materials in
Months
lst. Nine Months
(1926=--100). (1926 av.=100).
26.9
73.7
105.2
154.8
137.8
117.5
100.0
81.9
80.6
90.1
97.2
73.7
80.0

77.3
83.8
94.1
99.8
97.8
95.8
100.7
104.2
108.3
111.7
108.5
126.8
155.3

The aggregate for the first nine months of this year was lower than in
1931 and earlier years of the record; the average index numbers of wholesale
prices of building materials, however, were also much lower in 1932 than
in any other year of the record.

Marmon and Reo Motor Car Companies
Announce New Models.

The Marmon Motor Car Co. is introducing 1933 models
on its 16-cylinder line, with price reductions ranging as
high as $925, it is announced.. The base price on the 1933
line is $4,825, f.o.b. factory, as compared with a base price
of $5,700 on the previous line. The new models are offered
in eight body styles built on a 145-inch wheelbase.
-ton heavy duty
The Reo Motor Car Co. announces new 2
-ton speed wagons, rounding out its unified line of
and 3
new commercial vehicles. The capacity range of the
company's product begins with the 1M-ton speed wagon
introduced a little over a year ago and extends up to an
8-cylinder 4-tonner introduced in August. As a tractor-ton model has a gross load rating of
trailer unit, the 4
32,000 pounds. The price range is from $625 for the 1
-cylinder model, to $2,995 for the 4
-ton truck and
ton, 4
$3,645 for the heavy tractor-trailer outfit with 8
-speed
transmission and air brakes.
Building Situation in Illinois DuringlSeptember and
First Nine Months of 1932, Reviewed by Illinois
Department of Labor.

Statistics
and Research of the Illinois Department of Labor, stated
on Oct. 12 that "in September 1932 961 building projects
involving a total estimated expenditure of $1,113,048 were
authorized by permits issued in 45 reporting cities of Illinois.
These figures," according to Mr. Myers, "represent a decline from the figures for August 1932 of 2.9% in the number
of projects, but an increase of 7.3% in the total estimated
expenditure. The total estimated expenditure for all reporting cities in September 1932, however, was 70.4%
below that reported for September 1931." Mr. Myers also
said as follows:
Howard B. Myers, Chief of the Division of

The gain in the total estimated expenditure, which was counter to the
movement usually displayed by September reports, was attributable
directly to the increase of 66.8% reported by the group of cities outside
the metropolitan area, and to an increase of 12.0% reported by the suburban cities. In Chicago the estimated expenditure for building projects
dropped 23.3%, causing the Chicago index of building expenditure for
September to decline to 2.5 (monthly average 1929 equals 100)•
In September two building classifications, new residential and additions,
alterations, repairs and installations, were responsible for the increase in
the total,estimated expenditure in the 45 reporting cities. The total estimated expenditure in the former classification increased 26.9% and in the
latter 15.3% over August 1932. The total estimated expenditure for new
non-residential building in the State was 13.2% below the aggregate for
August 1932.
In Chicago the decline in total expenditure for September was due to a
drop of 67.5% in proposed expenditure for new non-residential building.
The September index for new non-residential building was 1.0. Two building classifications, new residential building and additions, alterations, repairs and installations, showed Increases in September over the preceding
month. The increase in expenditure in the former classification was 29.0%
and lathe latter 17.0%. The index for new residential building in Chicago
was 1.3 and that for additions, alterations, repairs and installations was
28.5 (monthly average 1929 in each classification equals 100).
In September 1932 the 21 suburban cities reported a gain over the preceding month of 40.9% in estimated expenditure for new residential building and an increase of 14.9% in the estimated expenditure for new nonresidential building. A decrease of 10.1% was reported in the estimated
expenditure for additions, alterations, repairs and installations. Ten of
the cities in this group reported gains in September 1932 over the preceding
month, but only four-Berwyn, Kenilworth, River Forest and Wheaton
reported gains over September 1931.
For the group of 23 reporting cities outside the metropolitan area increases
occurred in September in each of the three main building classifications.
The estimated expenditure for new residential building showed an increase
of 17.2%, and that for additions, alterations, repairs and installations an
increase of 33.1% over that for August 1932. Expenditure for new nonresidential building increased from $68,946 in August 1932 to $202.790 in
September 1932, or 194.1%. The proposed erection of a post office in
Waukegan, estimated to cost $143,000. Was responsible for this large increase. Eleven of the 23 cities in this group reported increases in September 1932 over the preceding month, and five-Alton. Centralia, Danville,
Quincy and Waukegan-reported increases over September 1931.
Of the total estimated expenditure reported in September 1932 by the
45 cities of the State, 39.3% was to be expended in Chicago, 18.8% in the
reporting suburban cities and 41.8% in the reporting cities outside the
metropolitan area. A division by building classification disclosed that of
the total estimated expenditure authorized in September 1932 by 45 cities,
28.3% was to be expended for new residential building. 30.4% for new nonresidential building and 41.3% for additions, alterations, repairs and
installations.
For the first nine months of 1932 the total estimated expenditure for all
reporting cities of the State was $11.259,339. This represents a decline
of 83.9% from the total of $70,099,065 authorized during the first threequarters of 1931. In Chicago the total for the first nine months of 1932
Was $5,436,573, which represents a drop of 88.1% from the total of $45,818.737 for the same period of 1931. For the reporting suburban cities the cumulative total declined from $11,784,606 for the first nine months of 1931 to
$2,109.921 for the same period in 1932, or 82.1%, while the cumulative
total for the reporting cities outside the metropolitan cities declined from
7
$12.495, 22 to $3,712,845, or 70.3% for the same comparative period. A
comparison of the amount to be expended for each of the three main buildclassifications during these two periods showed losses of 81.4% in new
ing
residential building, 90.3% in new non-residential building and 56.8% in




2725

Financial Chronicle

additions, alterations, repairs and installations. Three reporting cities
of the State-Centralia. Murphysboro and Rockford-showed larger estimated expenditure for building projects for the first nine months of 1932
than for the same period in 1931.

Mr. Myers also issued the following statistics:
-TOTAL NUMBER AND ESTIMATED COST OF BUILDINGS
TABLE 1.
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES IN SEPTEMBER
1932, BY CITY.
September 1932.

September 1931.

August 1932.

No. of Estimated No. of Estimated No. of Estimated
Cost.
Cost.
Ridge.
Bides.
Cost.
Bldgs.

City.

$
1.037.007 *1.610

3.762.565

Total all cities

961

1.113,048

990

Metropolitan area

522

647,244

556

757.713

918

2.846.315

Chicago

348

437.625

392

570.501

631

2.006.462

Metropolitan area. excluding Chicago...

174

209,619

164

187.212

287

839,853

15
22
6
24
16
1
7
4
15
1
2

38,550
8,022
4,550
55.750
2,670
50
6,300
2,550
17,325
1,500
600
14.818

13
12
6
18
4
3

5
16
9

9
15
4
2
2
7
12
23

31
32
10
41
20
2
9
13
18
1
8
17
5
10
23
15

32.334
16,735
117,590
247,000
10.105
1.930
7,805
4,075
22,151
400
2,975
41.253
3.000
4.070
103,185
153,470

2
2
6
7

1,015
29,410
11,285
1,144
1,680
7,500
2.475
2,425

9.885
3.045
14.660
44.500
775
475
10.275
4.900
12.300
1.100
425
18.022
700
3.025
25.590
1.130
15.400
4,700
3.650
6.730
5.925

5
5
13
9

5.600
4,900
43,200
18,075

439

465,804

434

279,294

*692

916,250

14
23
1
2
3
1
6
21
43
40
7

13,027
9,682
100
8,000
670
5,000
11.758
14,762
32.835
14,718
7,585

21
18
1
2
5

12,992
16.995
800
10.000
3,910

34
64
4
9
5
-

12,652
85.076
5.550
,41,000
1,515

10
1
54

14,800
167
25,171

7
9
45
30
6
1
6
2
69

7.130
9.014
30.076
20.217
7.790
200
10,400
426
30,972

27
70
53
18
1
23
4
79

8.600
172,580
58,935
18,720
16,282
26.000
33.200
2.400
33,688

39
17
20
57
76
4

84,600
9,005
12,115
9,091
45,318
147,500

2
50
16
14
73
50
7

3,500
42.250
6,525
8.600
25.130
26,267
6,100

eg
56
10
41
62
101
14

23.200
117,785
1,910
20,472
41,228
155,432
40,025

Berwyn
Blue Island
Cicero
Evanston
Forest Park
Glencoe
Glen Ellyn
Harvey
Highland Park
Kenilworth
La Grange
Lake Forest
Lombard
Maywood
Oak Park
Park Ridge
River Forest
West Chicago
Wheaton
Wilmette
Winnetka
Total outside metropolitan area
Alton
Aurora
Batavia
Bloomington
Canton
Centralia
Danville
Decatur
East St. Louis
Elgin
Freeport
Granite City
Joliet
Kankakee
Moline
Murphysboro
Ottawa
Peoria
Quincy
Rockford
Rock Island
Springfield
Waukegan

5
5

7
2
2
10

3

s

* Revised figure.
TABLE 2.
-TOTAL NUMBER AND ESTIMATED COST OF BUILDINGS
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES FROM JANUARY
THROUGH SEPTEMBER 1932. BY CITY.
Jan.
-Sept. 1932.
City.

No. of
Bugs.

Estimated
Cost.

Jan.
-Sept. 1931.
No. of
Bldgs.

Estimated
Cost.

Total all cities

8,053 $11,259,339 *13,279 870,099,065

Vfetropolitan area

4,476

7,546.494

7,722

57,603.343

Dhicago

3,259

5,436.573

5.475

45,818,737

getropolitan area excluding Chicago...

1,217

2,109,921

2.247

11,784,606

99
126
67
169
61
18
36
34
98
7
25
74
25
65
93
29
20
12
44
62
63

88,204
57.762
54.030
529.000
20.170
82.421
66,805
83.714
189,800
3,690
11,325
166,023
9.935
167,358
219,960
33,140
54.904
9,230
103,000
33.055
126,395

Berwyn
Blue Island
Cicero
Evanston
Forest Park
Glencoe
Glen Ellyn
Harvey
Highland Park
Kenilworth
La Grange
Lake Forest
Lombard
Maywood
Oak Park
Park Ridge
River Forest
West Chicago
Wheaton
Wilmette
Winnetka
Total outside metropolitan area
Alton
Aurora
Batavia
Bloomington
Canton
Centralia
Danville
Decatur
East St. Louis
Elgin
Freeport
Granite City
Joliet
Kankakee
Moline
Murphyaboro
Ottawa
Peoria
Quincy
Rockford
Rock Island
Springfield
Waukegan
* Revised figure.

3,577
177
190
9
28
31
4
77
133
334
223
68
3
92
26
410
4
19
423
114
204
418
520
70

„
..” " " ......
.„........w".
,E ...0.....m......0.".

Volume 135

650,779
209,374
1,034.728
2,988.000
145,885
167,540
166,914
209,449
409,656
98,250
108.725
918,508
42,029
508,164
734.288
450,645
661,108
29,490
129,600
787,169
1,334,305

83,712.845 *5,557 812,495,722
8169.781
120,177
12.800
231.000
22,895
29.000
101,126
170,896
210.332
141,892
90.161
600
107.500
28,948
158,579
12.000
31.800
476.505
48.080
721.980
135.723
433.295
257,575

281
403
21
55
39
7
106
204
425
369
106
14
273
47
548
3
*63
620
128
478
514
669
184

$446,384
1,049,144
34,210
689.700
33.720
27,000
172.266
682.255
980,511
388.681
221.498
63,150
804.789
92,680
447,313
7,500
492.700
1.333,302
1.329,823
569,982
414,978
1.615.059
599.077

Financial Chronicle

2726

Business and Agricultural Conditions in Minneapolis
Federal Reserve District
-Volume of Business in
September Smaller Than During September 1931.
"The volume of business in the Ninth (Minneapolis)
Federal Reserve District during September continued to be
smaller than the volume a year ago, but the declines in many
lries were not as great as the decrease reported for earlier
months, and the autumn upturn in business in many cases
was greater than the seasonal expectancy," according to the
preliminary summary of agricultural and business conditions
issued by the Federal Reserve Bank of Minneapolis. The
summary issued Oct. 15 also said:
There are evidences that the District is slowly recovering from the
effects of last year's crop failure, although the national business depression
continues to have a bad effect on the activities of the District. The
greatest improvement in September occurred in city department store
sales. September department store sales were only 10% smaller than
sales in September last year, whereas the decrease from last year's records
reported for August was 24%, and for July 28%. Moreover, the increase
In sales from August to September was nearly twice as large as customary.
Smaller decreases from last year's figures than had been reported in preceding months occurred in bank debits, country check clearings, freight
carloadings, city real estate activity, flour shipments, and iron ore shipments.
The recovery from the effects of the crop failure was delayed by the
tardy movement of cash grains from the farms. The movement of wheat,
In particular, has been slow, and at the present time 30,000,000 bushels
less wheat has been received at terminal markets than would ordinarily
have been received up to this time from a crop and carryover of this year's
amount.
The estimated cash income of Northwestern farmers from marketings
during September was only 7% smaller than the income in September
last year. The income from wheat, in spite of delayed marketings, was
twice as large as last year's September income from this source. The
Increase in income from wheat almost entirely offset the decreases in
income from dairy products and hogs. Prices of all major farm products
of the Northwest were lower in September than in the corresponding
month last year, with the exception of eggs. There was a strong seasonal
increase in the price of eggs during September, and the average price was
10% higher than in September last year.
ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS MARKETED
IN THE NINTH FEDERAL RESERVE DISTRICT.
Sept. 1932.
Bread wheat
Durum wheat
Rye
Flax
Potatoes
Dairy products
Hogs

Sept. 1931.

% Sept. 1932
of Sept. 1931.

$12,218,000
2,368,000
285,000
3,391,000
1,515,000
7,865,000
4,602,000

55,794,000
2,337,000
196,000
3,754,000
2,107,000
11,913,000
8,469,000

211
101
145
90
72
66
54

nnn

on

529 915

nnn

521 570

Employment in Texas Increased for Second Consecutive
Month During Period from Aug. 15 to Sept. 15,
According to University of Texas.
For the second consecutive month, there has been a gain
In the number of workers in Texas firms, according to the
University of Texas Bureau of Business Research. The 930
establishments reporting to the Bureau of Business and the
United States Bureau of Labor Statistics had 66,172 workers on their payrolls on Sept. 15 as compared with 63,089 on
the corresponding date a month earlier. The University
Bureau's report, issued Oct. 7, also said:
This increase of 4.9% in the number of employees stands out as an
unusually good showing in comparison with changes between August and
September in previous years. Last year, for example, there was a drop
of 0.5%; in 1930 there was a drop of 4.5%. It is necessary to go back
to 1929 to find another gain-and that was for only 1.81%.
These successive monthly gains in employees, which are due, apparently,
to other than seasonal factors, have cut down the decline in the number
of workers as compared with a year ago. As compared with September 1931,
the number of workers on payrolls for the month just passed was only 12.7%
behind; the decline has been as much as 19.9%, which occurred in
May 1932.
Purely seasonal influences brought about substantial increases in the
number of workers at bakeries, confectioneries, cotton oil mills, cotton
compresses, men's and women's clothing manufacturers, but a large number
of other classifications also showed gains, notable among which were
lumber and sew mills, cement mills, and retail and wholesale stores.
Average weekly wages continued downward, averaging only $21.69 on
Sept. 15 as compared with 222.66 in the previous month.
Two cities, Amarillo and Fort Worth, had more workers on payrolls
on Sept. 15 than on the corresponding date a year ago, while Austin,
Beaumont, Dallas, Galveston, Houston, San Antonio, Waco and Wichita
Falls all showed more workers than on Aug. 16.

Review of the Industrial Situation in Illinois by
Industry During September by Illinois Department
of Labor-Employment and Payrolls Show Increase
Over August.
"From August to September, increases of 1.1% in employment and 1% in payrolls were reported by 1,480 industrial
establishments in Illinois," according to Howard B. Myers,
Chief of the Division of Statistics & Research of the Illinois
Department of Labor, in reviewing the industrial situation
in that State. "These increases continued the upward
movement observed in August, when all reporting industries
in the State showed gains of 1.2% in employment and 2.8%
in payrolls," continued Mr. Myers. "Although the increases




Oct. 22 1932

shown in the last two months are the largest reported since
industrial activity began to decline about three years ago,
these increases have been insufficient to offset the declines
which occurred during the month of July 1932, when employment decreased 5.6% and payrolls 10.7%. The index
measuring the volume of employment in September 1932, was
57.9% (1925-27 average=100), or 43.9% lower than in
September 1929, while the payroll index of 38.3 was 60.4%
lower than three years ago. The weekly earnings for those
employed in September, this year averaged $20.68 as compared with $26.96 in September, 1929." Under date of
Oct. 18 Mr. Myers also said:
The September gains in employment and pay rolls were contributed
largely by the manufacturing industries, which showed increases from
August of 1.8% in employment and 2.6% in payrolls. In the manufacturing
division as in all reporting industries, the combined increases for August
and September failed to compensate entirely for the losses recorded in the
preceding July. Metals, machinery and conveyances, the largest of the
nine main manufacturing groups, and the one which usually determines the
movement in the manufacturing division as a whole, showed reductions of
2.8% in employment and 2.1% in payrolls for September. These reductions
and those in two other groups, stone, clay and glass, and printing and
paper goods, were more than offset by the substantial increases in the
remaining six groups, especially the food group, which reported considerably more than seasonal gains.
Ten of the 13 industries included under metals, machinery and conveyances reported decreases in employment. Reductions in employment in
electrical apparatus, watches and jewelry, cars and locomotives, and agricultural implements, ranged from 8.2% to 14.8%. The iron and steel
industry showed a decrease of 2.8% in employment with an increase of
1.5% in payrolls. Employment gains were shown by tools and cutlery.
brass, copper, zinc and other metals, and cooking and heating apparatus.
Of these three industries the last two also increased total wage payments.
In the printing and paper goods group decreases of 4.7% in employment
and 2% in payrolls continued a downward movement which, with slight
exceptions, has prevailed throughout the entire year, Decreased activity
in job printing and edition book binding more than offset gains in several
other industries in this group, notably paper boxes and other paper contaners. stone, clay and glass products, the
third of the three groups In
which employment and payrolls were curtailed during September, decreased employment 2.6% and payrolls 3.4%. Glass factories contributed
the greatest share of these declines while miscellaneous stone and minerals
establishments continued the upward tendency of the preceding month.
The food products group, which was mainly responalble for the increases
in the manufacturing division as a whole, showed increases of 9.5%
in
employment and 8.2% in payrolls. Employment in this group has shown a
steady advance since last April; payrolls have fluctuated irregularly but on
the whole have also shown an upward tendency. Of the 11 separate indus
tries included in this group, five showed gains in both employment and
payrolls. Marked activity prevailed in the confectionery industry, in which
18 reporting establishments added 33.1% more wage earners and increased
payrolls 47.5%. Thirteen slaughtering and meat packing establishments
reported increases in employment of 3.8% and in total wage payments of
4.9%. Increases in employment in flour feed, and cereals, and in miscellaneous groceries, exceeded 10%, while increases in payrolls in these
Industries were between 5 and 10%•
The largest percentage increase from August to September was reported
for the wood products group, which increased employment 9.8% and
payrolls 19.7%. Furniture and cabinet work establishments were mainly
responsible for the increase. In the textiles group increases of
3% in
employment and 18% in payrolls practically offset the decreases that have
taken place in this group since last May. The clothing and
millinery group
continued to increase employment and payrolls, showing gains in September
of 6.5% in employment and 9.7% in Ferrol's. Every industry in this
group contributed to the increase in employment and all but one, overalls
and work clothes, to the advance in payrolls.
In the furs and leather goods group, increases of 3.5% in employment and
1.9% In payrolls followed gains reported in August of
4.3% and 22.6%.
respectively, in employment and payrolls. Tanning factories reported
gable of 7.9% in employment and 7.8% in payrolls for September. In
boot and shoe manufacturing, payrolls allowed a slight reaction of .4
of 1%
from the marked expansion of the preceding month while employment
showed a further increase of 2.5%. Chemicals, oils and paints showed
Increases of6% in employment and 7.8% in payrolls, gains which practically
offset the decreases of the preceding month. The miscellaneous chemicals
Industry, which was responsible for a large share of tho
August decline.
accounted to a large extent for the increase in September.
The non-manufacturing division showed a somewhat smaller
percentage
decline in employment and payrolls than has been characteristic of previous
months this year. Employment declined .1 of 1% and payrolls
.8 of 1%.
Two of the five groups in this division showed substantial gains. Coal
mining increased employment 4.3% and payrolls 34.8%,
according to
21 reporting mines employing 1,807 men in September. While
these reports
cover only a small fraction of the coal mines in the State, they reflect the
general situation, since there has been a gradual resumption of coal hoisting
In one mine after another, despite the unsettled conditions in the coal
mining areas. The building and contracting gropurn,ynireepnrteseanntded2.b5y%25in8
in em
establishments, showed increases of 9.4%
payrolls.
Of the three remaining non-manufacturing groups, wholesale and retail
trade. and public utilities showed reductions in both employment and
payrolls. The trade group decreased its volume of employment .3 of 1%
and its total wage payments 2.2%. Thirty-six department stores in this
group, however, reported gains of 6.9% in employment and 5.8% in
Payrolls. Wholesale dry goods, wholesale groceries, and mail order houses
Increased payrolls but not employment. In the public utilities group,
water, gas, light and power, and telephone companies were responsible for
decreases of .5 of 1% in employment and 1.3% in payrolls in the group as
a
whole. Street railways and railway car repair shops showed increases.
The services group, comprising hotels and restaurants, and laundering,
cleaning and dyeing establishments, showed a 2.1% decrease in employment with a 1.6% increase in payrolls. The gain in payrolls was the result
of an increase of 2.3% in total wage payments reported by 45 hotels and
restaurants.
Reductions in wage rates reported by 27 establishments in September
affected 9,662 employees, or 3.6% of the total number of wage earners in
all reporting industries.

Mr. Myers also issued the following review, on the industrial situation in Illinois by cities, under date of Oct. 17:
Increases from August to September of 1.8% in employment and 2.8%

In payrolls, were reported by 998 Illinois factories. These gains followed

Volume 135

increases from July to August of 2.3% in employment and 7.1% in payrolls; the combined increases for the two months, however, have been
insufficient to offset the July declines of 7.6% in employment and 13.8%
in payrolls. In September Chicago factories, which employed approximately
three-fifths of the total number of wage earners reported, increased employment less than the factories in the State as a whole. In August, increases
In Chicago factories had been in excess of those for all reporting Illinois
factories. Factories outside Chicago, which had reported a decrease in
employment of .3 of 1% in August, showed an increase of 3.5% in employment in September. These factories reported an increase of 5.9% in payrolls, following a rise of 3.3% in August.
The September gains in employment and payrolls were less marked than
those reported for August but were more widely distributed throughout the
State. Of the 15 cities for which figures are compiled separately, 10
Increased employment and 12 expanded payrolls during the month of
September. In August seven of these cities reported gains in employment
and 10 reported increases in payrolls. The "all other" cities increased
employment 1.2% in August and 3.5% in September while increasing
payrolls 6% in each of these months.
The ratio of applicants to every 100 positions available at the free employment offices of the State increased to 187.4 for September as compared with
181.5 for August. The demand for farm labor was only slightly affected
by the corn-husking season. Road construction, however, showed some
increase. The Division of Highways of the Illinois Department of Public
Works and Buildings reported a total of 22958 men engaged in road construction during the month, an increase of 3.2% over the figure reported
for August. A number of the coal mines resumed operations in September
but conditions in this industry continued unsettled as the newly formed
union of the Progressive Miners of America opposed operations under the
agreement between the officials of the United Mine Workers of America
and the Coal Operators' Association of Illinois.
Aurora.
-Eighteen reporting factories in this city showed a 2% decrease
In employment with an .8 of 1% increase in payrolls. The manufacture of
paper and of women's apparel showed an increase in payrolls. At the free
employment office 205.8 registrations were recorded for every 100 positions
open.
Bloomington.
-Increases of 80% in employment and 54.2% in payrolls
in 10 reporting factories of this city Were largely the result of gains in the
food products group although all the other reporting groups showed gains.
A canning company and a candy factory showed greatly increased activity.
At the free employment office the registrations for work totaled 147.5 to
every 100 positions available in September, as compared with 161.3 in
August.
Chicago.
-Gains of .8 of 1% in employment and 1.2% in payrolls were
reported for September by 513 factories in this city. Increases in both
employment and payrolls were shown by five of the nine main manufacturing groups
-the stone, clay and glass, wood products, textiles, clothing and
food products groups. Employment and payrolls in the metals group
showed losses of 5.9% and 7.2%, respectively, which more than offset the
August increase in employment and offset to a large extent the August
Increase in payrolls. Paper and printing, another important group, continued to decrease operations. At the free employment offices registrations
per 100 positions open totaled 264.5 in September, as against 290.5 in
August.
Cicero.
-Ten factories of this city reported gains of 7.5% ir employment
and 22.9% in payrolls with the metals group mainly responsible for these
increases. The unemployment ratio at the free employment office dropped
from 303.4 in August to 229.9 in September.
Danoille.-A decrease of 4.9% in employment in 10 reporting factories of
this city in September offset in part the 18% increase reported in the
preceding month. Payrolls in these factories, however showed an increase
In September of 4%. This was the first increase in payrolls reported since
last March. An unemployment ratio of 248.9 in September. as compared
with a ratio of 228.8 in August, was reported by the free employment
office.
Decatto.-Eighteen facto,ies reported a slight increase of .7 of 1% in
enmloyment but showed an increase of 8.3% in total wage payments.
The groups which increased total wage payments were the metals, clothing
and food products groups. The unemployment ratio at the free employment office rose from 282.6 in August to 395.1 in September. The rise
in the unemployment ratio reflects the large number of applications to
the free employment office for work on a Federal road construction project.
East St. Louis.
-Increases in employment and payrolls of 1.9% and 5.6%.
respectively, reported by 19 factories of this city, were practically of the
same magnitude as the percentage decreases reported for August. The
chemicals and the food products groups were largely responsible for these
gains. The free employment office records showed an unemployment ratio
of 121.7 for September, as against a ratio of 122.7 for August.
Joliet.
-While employment in 24 reporting factories of this city decreased
.5 of 1%, payrolls increased 8.4%. Higher payrolls were shown in every
reporting industrial group. The unemployment ratio at the free employment office continued high, with a total of 415.3 applicants for every 100
positions open in September, as gainst a figure of 309.9 in August.
Moline.
-An increase of 20% in payrolls reported by 16 factories of this
city in September, marked the third consecutive rise in payrolls. Although
employment in this city declined from July to August, the increase of
5.2% in September, with the increase of 9.4 in July, caused employment to
Increase during the quarter. The metals and food products groups contributed to the September increases in both employment and payrolls while
wood products contributed a substantial increase in payrolls.
Peoria.
-During September increases of 15.3% in employment and 15.6%
In payrolls reported by 32 factories reversed the downward tendency that
has prevailed since last April and which was especially pronounced during
July and August. Metals, printing and paper goods, textiles, and food
products contributed to these gains. The number of registrations per 100
positions open at the free employment office rose to 142.5 in September from
111.9 in August.
Quincy.
-Substantial increases of 9.6% in employment and 23.2% in
payrolls were reported for September by 13 factories. A limestone plant
recalled the men laid off during the two preceding months. Five metals
establishments contributed the larger share of the reported increases. The
unemployment ratio increased slightly, from 108.0 in August to 108.6 in
September.
Rockford.
-Thirty-eight reporting factories of this city showed a 2.9%
rise in employment, the first increase since last February. Payrolls, which
showed a 5.8% increase during August, decreased 1% in September. The
metals, wood products and textiles groups contributed to the gain in employment. The latter two groups also increased payrolls but the gains were
more than offset by the losses in other groups, mainly metals and printing
and paper goods. The free employment office showed an enemployment
ratio of 170.1 for September as against 169.7 for August.
-Increases of 3.9% in employment and 2.6% in payrolls
Rock Island.
In 10 factories of this city continued the upward movement reported for
August. An oil refining company and establishments in the metals group
were responsible for these gains. Reports from the free employment office




2727

Financial Chronicle

showed an unemployment ratio of 158.4 for September. This was higher
than the ratio of 133.3 reported for August.
Springfield.
-The large decreases in September of 21.1% in employment
and 27% in payrolls reported by 11 factories of this city practically offset
the marked increases of the preceding month. The establishments in the
metals group and a shoe factory were mainly responsible for the sharp
recession in September. The unemployment ratio increased to 134.4 in
September from 123.9 in August.
Sterling-Rock Falls.
-Twelve reporting factories in these cities, 11 Of
which are included in the metals group, reduced employment 2% and payrolls 21.6% from August to September. Employment in factories of these
cities has declined steadily since last January. With the exception of a
slight increase in August, payrolls have shown an even more marked
percentage decline than employment during the year.
-Increases of 3.5% in employment and 6% in payrolls
All Other Cities.
were reported by 244 factories of these cities. These increases continued
the upward movement that was shown in August. The metals group.
represented by 80 factories employing 14,568 wage earners in September,
showed increases of 3.8% employment and 14.6% in total wage payments.
Other groups registering substantial gains in both employment and payrolls were wood products, furs and leather goods, and chemicals, oils and
paints.
The following statistics were also issued by Mr. Myers:
EMPLOYMENT, PAYROLLS AND AVERAGE WEEKLY EARNINGS IN
ILLINOIS, SEPTEMBER, 1932.
EMPLOYMENT.

Industry.

PAYROLLS.

Indez of
Average
Index of
Payrolls
Weekly
Per
Employment
Per
(Monthly
Cent
(Monthly Earnings
Cent
Change
Average
Change
Average
of
-27=100) &AAug.15 1925-27=100) Aug. 15 1925
to
go
Mayan
Sept. 15 Sept. Sept. Sept. 15 Sept. Sept. Sept. 15
1932. 1932. 1931. 1932. 1932. 1931. 1932.

+1.1
All industries
+1.8
AU manufacturing Indus
-2.6
Stone. clay. glass
Miscen. stone, mineral_ +12.2
Lime, cement, plaster_ _
Brick, tile, pottery-- -- -2.6
Glass
Metals. mach'y,convey'ces
-2.8
Iron and steel
Sheet metal w'k,hardw_ -0.1
Tools, cutlery
+1.3
Cook'g Jr heat'g tipper_ +11.0
Brass, cop., zinc Sr other +1.9
Cars,locomotives
-12.6
Automobiles, accasories -0.4
Machinery
-0.4
Electrical appatatus_ _ _ -8.2
Agricultural implements -14.8
Instruments St appli'ces -0.2
-11.3
Watches. Jewelry
-4.3
All other
+9.8
Wood products
Saw-planing mills
Furn.,cabinet work_ _ +16.9
Pianos, musical Instets. +14.8
Miscell. wood products_
+5.8
Furs and leather goods
+3.5
Leather
+7.8
+14.8
Furs, fur goods
+2.5
Boots and shoes
Miscell. leather goods_ _ +24.5
Chemicals, oils, paints
+6.0
Drugs, chemicals
+2.0
Paints, dyes, colors---- -0.7
Mineral dr vegetable oil. -1.6
Miscellaneouschemicals +42.3
Printing and paper goods. -4.7
Paper boxes, bags, tube +10.4
Miscell. paper goods... +0.8
-15.7
Job printing
+4.4
Newspapers, periodicat
Edition bookbinding... -15.8
+3.9
Lithographing 8,engrav
Textiles
+3.0
Cotton, woolen goods-. +8.0
-5.3
Knit goods
+2.3
Thread and twine
Miscellaneous textiles-. +7.6
Clothing and millinery... +6.5
+4.3
Men's clothing
Men's shirts, furnishings +8.8
Overalls, work clothes. +0.2
Men's hats. cans
+0.8
+16.3
Women's clothing
Women's underwear__. +5.5
Women's hats
+23.4
Food, beverages, tobacco_
+9.5
Flour, feed. cereals__ _ +12.1
-3.4
Fruit, vegetable canni
Miscellaneous groceries- +13.6
Slaughtering, meat pkg. +3.8
Dairy products
-3.6
Bread, other bak'y prod. +0.3
Confectionery
+33.1
Beverages
+4.1
Cigars, other tobaccos-- -51.4
Manufactured ice
Ice cream
-19.1
Miscell. manufacturing...- +1.6
Non-manufacturing Indus_ -0.1
Trade-Wholesale dr retail
Department stores
+6.9
Wholesale dry goods.
- -4.5
Wholesale groceries- 0.0
Mall order houses
Milk distributing
-4.8
Metal lobbing
-4.5
Services
Hotels and restaurants_
Laundries
-0.4
Public utilities
-0.5
Water,gas,light as pow_ -3.5
Telephone
-0.6
Street railways
+0.4
Railway car repair
+3.6
Coal mining
+4.3
Building, contracting_ _ _
+9.4
Building construction
+2.9
Road construction
+40.9
Miscell. contracting_
-10.6

57.9 I
54.5
44.0
53.6
48.6
26.7
63.7
41.9
58.6
50.8
33.9
51.4
51.9
6.6
38.4
40.5
35.0
31.0
44.1
32.9

72.3
+1.0 38.3
68.3
+2.6 32.2
57.0
-3.4 22.9
63.1 +13.7 29.9
57.8
-4.5 24.1
41.0
+4.0 12.0
78.7 -14.6 47.7
62.7
-2.1 20.4
+1.5 23.6
75.9
67.8
+2.0 38.7
45.0
-9.9 12.7
70.9 +23.2 21.6
65.5
+4.0 27.4
16.3 -18.3
3.3
-6.0 21.7
67.9
57.4
-0.1 23.5
64.1
-9.9 15.6
49.5 -14.5 14.2
19.5
53.5
20.5
69.6

34.1 15:5
30.4 45.0
35.2 46.0
20.7 26.8
44.4 53.2
87.3 94.0
89.7 100.5
81.5
33.1
68.3
61.8
61.6
70.2
68.0
68.5
68.1
76.2
50.0
83.1

95.4
37.4
79.6
70.3
75.1
77.5
83.1
83.8
80.1
86.2
84.3
89.2

66.1 11.5
91.5 107.9
61.0 79.2
56.4 59.9
87.9 92.9
67.8 70.3
61.2 63.5
54.5 65.8
24.0 22.3
-- :7 -8
0
83:6
105.4 91.0

57.6
50.3
40.2
45.9
40.7
22.6
87.8
40.5
47.8
74.2
25.3
37.5
41.7
13.5
96.0
46.4
31.2
23.8
29.9
56.2

320.68
17.94
17.17
23.00
18.74
15.69
15.07
16.52
12.37
14.59
13.85
15.98
17.14
14.59
17:8
16.03
24.62
14.47
19.03
14.19
29.49
13.63
+19.7 19.5 34.1
-7.5 13.4 30.7
14.02
13.76
+39.4 19.5 32.5
14.62
+28.1
9.0 15.5
+9.4 22.3 35.1
12.86
+1.9 46.3 60.7
12.23
+7.8 72.5 95.4
22.12
+13.4
32.26
41.13
-0.4 ---10.82
+39.9 22.8 34.0
14.94
+7.8 53.9 73.8
20.70
+10.6 41.4 57.3
17.37
+17.9 54.1 83.7
20.60
67.5 87.3
24.32
+45.2 46.5 63.4
16.26
26.52
-2.0 41.3 56.8
20.20
+18.9 41.1 50.5
+0.1 56.8 78.5
18.14
-12.7 24.4 34.7
25.81
37.29
+4.4 60.4 77.2
-7.2--------28.53
27.5
0
-1.0
16.00
+18.9 ;3ii:a
20.13
+24.8 101.5 147.3
11.77
+18.9 61.5 100.8
+1.7 46.8 53.3
14.22
16.14
+17.1 60.4 73.0
+9.7 38.5 48.0
15.29
+3.8 39.1 44.9
18.17
+40.9 42.4 68.3
12.56
-3.5 24.8 1;
2_53:
.
18.85
1.31
16.16
35.9
++223.3 72.0 85.2
+3..66
5
8.96
+144.9
21.05
--61.5
19.53
+6.8 64.9 77.1
20.03
-30.2 60.2 185.1
6.35
22.72
+7.9 56.9 74.8
21.12
+4.9 69.9 88.9
29.40
-5.4 69.3 94.6
24.34
+4.6 57.3 64.2
14.82
+47.5 71.2 70.6
20.14
-18.9 36.9 85.7
18.22
-44.4 21.1 61.5
33.90
-11.8 7_7 8 190.4
: __...
-16.4
30.26
11.28
2235..5269
-0.8
"5"9".§
+5.8 72.0 91.3
18.85
21.47
+6.4 63.6 64.1
+0.3 56.8 73.6
27.16
17.43
+0.8 30.5 45.0
-10.1--------44.55
22.94
-0.7
__
+1.6
+2.3
15..0
6 89
-2.5 -55:i -82:i
14.70
.
31..56
27 12
37..2 56 5
-7.4 66 8 92.0

--0:5 +8.2
8

-82:5
83.5 75.4
177.6 246.4
75.2 73.6
81.3 84.3
83.7 94.7
59.5 69.7
131.1 89.2
59.5 78.4
19.9 68.5
86.5 100.9

-53:1
83.6
71.2
56.9
44.8

-62:1
89.8
75.2
77.5
54.0
----

-7771 -9-2:4
76.1 87.7
81.0 114.9
89.4 95.1
76.5 85.0
44.3 49.5
18.3 74.0
14.8 28.7
9.9 24.0
353.0 119.9
14.3 27.4

+2.4 8 ..4 197..6
7 9 13 2
9
+6.2 47.0 76.5
+34.8
7.0 35.8
+2.5 14.5 27.7
-6.4
8.2 22.4
+23.7 732.3 169.8
+1.8 14.8 37.3

33 15
21..92
20.37
17.26
26.15
29.61
21.8.5
25.79

Lumber Production Gains- New Business Lags as
Compared with Recent Weeks.
Production of softwood lumber as reported by the mills
during the week ended Oct. 15 was the largest of any week
since June, and new business was the smallest of any week

Financial Chronicle

2728

since the middle of August, according to telegraphic reports
to the National Lumber Manufacturers Association covering
the operations of 687 leading softwood and hardwood mills.
Hardwood production was the largest since July and new
business heaviest since last winter except for one week.
Compared with the week ended Sept. 17, when orders of
all reporting mills were at their 1932 peak, the week ended
Oct. 15 showed decline in orders of 26.5% for softwoods but
gain of 2% for hardwoods. Comparison of the same weeks
shows increase of 8% in production of softwoods and 22.8%
increase in hardwood output. The Association further
reports as follows:
Production of reporting mills in the Douglas fir region of the West Coast
was larger than during any week of 1932 with the exception of two weeks
last wintez: orders received by these mills were less than for any week
since August. For the first time since early August. the orders received
by Southern pine mills were less than for the corresponding week of last
year. Southern pine orders were, however. 29% above production dming
the week ended Oct. 15. Western pine mills showed the same favorable
Percentage relationship.
New business as shown by all reporting mills during the week ended
Qct. 15 totaled 145.889.000 feet. Production was 123.727.000 feet. This
was 24% of capacity, compared with 24% the previous week. New business was 28% of capacity, compared with 30% the week before. Production of identical softwood and hardwood mills was 25% below that of
the corresponding week of last year and new business as reported by these
mills was 13% below last year.
Lumber orders reported for the week ended Oct. 15 1932 by 461 softwood
mills totaled 128.702.000 feet. or 12% above the production of the same
mills. Shipments as reported for the same week were 141.743,000 feet.
or 23% above production. Production was 114.908.000 feet.
Reports from 241 hardwood mills give new business as 17,187.000 feet,
or 95% above production. Shipments as reported for the same week were
15,765.000 feet, or 79% above production. Production was 8,819.000 feet.
Unfilled Orders.
Reports from 398 softwood mills give unfilled orders of 401,617.000 feet,
on Oct. 151932. or the equivalent of 10 days' production. The 371 identical
softwood mills report unfilled orders as 396,080.000 feet on Oct. 15 1932,
or the equivalent of 10.6 days' average production, as compared with
412.952,000 feet, or the equivalent of 11 days' average production, on
similar date a year ago.
Last week's production of 424 Identical softwood mills was 111,412,000
feet, and a year ago it was 145.100,000 feet; shipments were respectively
138,127.000 feet and 146.207,000: and orders received 123.474.000 feet
140.888,000. In the case of hardwoods. 185 identical mills reported production last week and a year ago 7.605,000 feet and 13.291.000; shipments 13.804,000 feet and 16,796,000. and orders 14.947,000 feet and
18.444,000 feet.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 217 mills reporting for
the week ended Oct. 15:
SHIPMENTS.
UNSHIPPED ORDERS.
NEW BUSINESS.
Feet.
Feet.
Feet.
Coastwise and
Domestic cargo
Domestic cargo
delivery_ __ 22,471,000 delivery,_ _ _ 107,929,000 intercoastal_ 21,707.000
15,201,000
76,787,000 Export
Export
9,835.000 Foreign
22.743,000
Rail
20,785,000 Asti
44,763,000 Rail
6.135,000
Local
Local
6,135,000
65.786,000
Total
59,026,000 Total
229,479,000 Total
Production for the week was 61,386.000 feet. Production was 24% and
new business 23% of capacity, compared with 24% and 24% for the previous week.
Southern Pine.
The Southern Pine Association reported from New Orleans that for
117 mills reporting, shipments were 37% above production, and orders
29% above production and 6% below shipments. New business taken
during the week amounted to 30.495,000 feet (previous week 29,876.000
at 113 mills); shipments 32,470.000 feet (previous week 29,336.000), and
production 23,662,000 feet (Previous week 22,106.000). Production was
37% and orders 48% of capacity, compared with 34% and 47% for the
previous week. Orders on hand at the end of the week at 108 mills were
75.429.000 feet. The 108 identical mills reported a decrease in production
of 15%, and in new business a decrease of 1%. as compared with the same
week a year ago.
Western Pine.
The Western Pine Association reported from Portland. Ore., that for
105 mills reporting, shipments were 42% above production, and orders
29% above production and 9% below shipments. New business taken
during the week amounted to 36,713,000 feet (previous week 36.403.000
at 110 mills); shipments 40,526,000 feet (Previous week 39,779,000). and
production 28,545,000 feet (Previous week 26.354.000). Production was
21% and orders 27% of capacity, compared with 21% and 29% for the
previous week. Orders on hand at the end of the week at 105 mills were
116.954,000 feet. The 93 identical mills reported a decrease In production
of 29% and in new business an increase of 3%. as comapred with the same
week a year ago.
Northern Pine.
The Northern Pine Manufacturers of Minneapolis. Minn., reported production from 7 mills as 763,000 feet, shipments 2,342.000 feet and new
business 2.050.000 feet. The same number of mills reported production
339% more and new business 1% more than for the same week last year.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh. Wis.,reported production from 15 mills as 552,000 feet.shipments
819.000 and orders 418,000 feet. Orders were 5% of capacity compared
with 11% the previous week. The 15 identical mills reported a decrease of
49% in production and a decrease of 68% in new business, compared with
the same week a year ago.
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis. Tenn., reported
production from 226 mills as 6.689.000 feet, shipments 14.428.000 and new
business 16.008.000. Production was 19% and orders 35% of capacity.
compared with 18% and 40% the previous week. The 170 identical mills
reported production 43% lass and new business 15% less than for the same
week last year.




Oct. 22 1932

The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh. Wis., reported production from 15 mills as 130.000 feet. shipments 1,337,000 and orders 1,179.000 feet. Orders were 22% of capacity,
compared with 20% the previous week. The 15 identical mills reported a
decline of 48% In production and a decline of 45% in orders, compared with
the same week last year.

Employment and Payrolls in Pennsylvania Factories
Increased Further from August to September,
According to Federal Reserve Bank of Philadelphia-Increases Also Noted in Delaware Factories.
Factory employment, payrolls and working time in
Pennsylvania have shown more than the seasonal tendency
upward since July. In September employment increased
further by 4% and payrolls by almost 8% as compared with
August, according to reports to the Philadelphia Federal
Reserve Bank, which collects these figures, in co-operation
with the Pennsylvania Department of Labor and Industry
and the United States Bureau of Labor Statistics, from 807
manufacturing plants, employing nearly 223,000 workers,
whose weekly payroll amounted to $3,289,000. These
unusual increases, which were nearly twice as large as in
AuguSt, occurred for the first time in the past three years.
Compared with a record low level reached in July, employment in September was 7% higher and wage payments
nearly 13% larger. Under date of Oct. 17 the Federal
Reserve Bank of Philadelphia also noted the following:
All manufacturing groups shared in these gains during September except
transportation equipment and chemical and related products. The textile
industry continued in the lead with a further gain of 13% in employment
and 30% in payrolls from August; every leading branch of this industry
reported unusually sharp increases. All industrial city areas of this district, save the Williamsport section, showed further additions to the factory
workers, and most of them had marked gains in the amount of weekly wage
payments. The largest increases in weekly payrolls occurred In the areas
comprising New Castle, Hazleton-Pottsville, Reading-Lebanon, Scranton,
Philadelphia. Lancaster and Allentown-Bethlehem-Easton.
Factory operating schedules also were enlarged to a greater extent than
was the case at the same time in the past two years. Total weekly manhours actually worked in September rose almost 10% from August, as
shown by reports from 572 factories, employing 169,000 workers, earning
weekly $2,445,000. All groups contributed to this expansion, except
transportation equipment, and chemical and related products; leather and
rubber products as a group also declined, but working time in shoe factories
Indicated a considerable further increase.
Employment and payrolls in most non-manufacturing Industries of Pennsylvania also showed increases from August to September. Such extractive
industries as mining and quarrying added more workers and had larger
payrolls than in August, while public utilities and wholesale trade reported
slight declines. Retail trade, hotels and dyeing and cleaning establishments
had Increases both in employment and payrolls, while laundries showed a
small gain in employment but a slight decline in wage payments. Seasonal
gains also occurred in the canning and preserving industry.
The factory employment index rose to 61% of the 1923-25 average,
while the payroll index number advanced to 36. Compared with a year
ago the employment index was still 17% lower and wage payments index
34% lees.
Delaware factories reported gains of 6% in employment and over 7%
In payrolls and working hours from August to September, most of the principal groups sharing in these advances. The Delaware employment index
in September was 72 or about 11% lower than a year ago, and the payroll
Index was 48 or 25% below that in September 1931.
FACTORY EMPLOYMENT AND WAGE PAYMENTS BY CITY AREAS.
Prepared by Department of Research and Statistics of the Federal Reserve Bank
of Philadelphia.
(City areas are not restricted to corporate liml s of cities given here.)
Employment.

Payrolls.

Per Cent Change
Compared With
Sept.
Indexes.
Allentown-BethlehemEaston
Altoona
Erie
Harrisburg
Hazleton-Pottsville
Johnstown
Lancaster
New Castle
Philadelphia
Pittsburgh
Reading-Lebanon
Scranton
Sunbury
Wilkes-Barre
Williamsport
Wilmington
York

52.5
57.7
51.2
60.5
90.3
38.4
59.7
40.3
86.0
51.5
85.9
59.9
68.4
97.8
45.4
93.8
76.6

Aug.
1932.

Sept.
1931.

+6.7
+5.3
+2.0
+4.1
+27.9
+0.5
+4.7
+4.7
+5.6
-0.2
+0.8
+19.3
+3.3
+6.9
-15.9
+1.5
+3.9

-14.6
-24.6
-33.3
-9.3
+17.8
0.0
-19.9
-1.7
-17.9
-19.2
-14.5
-10.5
-2.0
+6.8
-38.4
+6.6
-10.3

Sept.
Indexes,

31.2
33.1
32.2
40.4
59.4
15.8
35.5
17.0
51.1
21.0
35.0
47.4
43.0
68.2
31.9
77.8
51.4

Per Cent Change
Compared With
Aug.
1932,
+10.2
+4.4
+4.2
0.0
+28.9
-- 4.2
+11.3
+25.0
+13.6
-4.5
+19.0
+17.9
-0.2
-1.6
-9.4
-2.5
+5.1

Sept.
1931.
-34.3
-39.8
46.0
-35.9
-13.7
-50.2
-46.5
-10.5
-26.7
-47.6
-31.5
-23.7
-21.0
-11.7
47.2
+ 5.4

FACTORY EMPLOYMENT AND WAGE PAYMENTS IN DELAWARE
COMPARISON WITS! THE PREVIOUS MONTH BY INDUSTRY.
Prepared by Department of Research and Statistics of the Federal Reserve Dank
of Philadelphia.
Per Cent Change September
No.
Compared With August 1932.
of
Plants. EmployPayEmployee
men!.
rolls.
Hours.•
All manufacturing industries
Metal products
Transportation equipment
Textile products
Foods and tobacco
Stone, clay and glass products
Lumber products
Chemical products
Leather and rubber products
Paper and printing
•Based on reports from 48 plants.

54
10
5
3
7
4
5
5
8
7

+5.9
+7.4
+18.8
+9.8
+23.1
-28.2
+13.0
-6.5
-1.1
+3.4

+7.3
-3.8
+24.7
+21.2
+10.9
-24.9
+9.8
-10.9
-2.3
+15.2

+7.7
-8.7
+24.5
+19.3
+24.7
-24.2
+19.7
-11.0
-2.8
+21.4

Volume 135

Financial Chronicle

FACTORY EMPLOYMENT AND WAGE PAYMENTS IN DELAWARE
COMPARISON WITH PREVIOUS YEARS FOR
ALL MANUFACTURING INDUSTRIES.
Prepared by Department of Research and Statistics of the Federal Reserve Bank
of Philadelphia.
Employment.

Payrolls.

1932
1932
Indexes.
Compared
Indexes.
Cornpar'd
with 1931
with 1931
1930. 1931. 1932. Per Cent. 1930. 1931. 1932. Per Cent.
January
113.1
87.1
79.3
-9.0 107.8
77.0
57.8
-24.9
February..,.. 112.4
87.6
78.5 -10.4 107.0
79.9
59.5
-25.5
March
112.9
88.1
75.9
-13.8 108.1
81.7
57.2
-30.0
Are'
112.6
86.9
74.8 -13.9 108.1
79.7
52.8
-33.8
109.4
May
86.3
72.6
-15.9 103.8
81.1
49.4
-39.1
June
107.2
85.6
71.5
-16.5 101.1
78.0
48.5
-37.8
July
102.7
84.4
69.8
-17.3
94.2
68.7
45.9
-33.2
August
101.6
83.2
68.1
-18.1
93.2
68.9
44.7
-35.1
September..
98.5
81.2
72.1
-11.2
89.7
64.1
47.9
-25.3
October
94.0
74.5
87.1
61.0
November_
87.9
74.9
78.1
54.7
hecember
86.7
76.0
56.4
78.7
Average
103.3
83.0
96.4
70.9
FACTORY EMPLOYMENT, WAGE PAYMENTS AND
EMPLOYEE
-HOURS IN PENNSYLVANIA.
Prepared by the Federal Reserve Bank of Philadelphia in co-operatio
the Pennsylvania Department of Labor and Industry and the United States n with
Bureau
of Labor Statistics.
(Index numbers are percentages of 1923-1925 average which is taken
as 100.)
Employment.*

Payrolls.*

Per Cent
Per Cent
Sept. Change From Sept. Change From
1932
1932
Index. Aug.
Sept. Index. Aug.
Sept.
1932. 1931.
1932. 1931.

Empl'ye
Hours.x
%
Change
Sept.
From
Aug.

All manufacturing Indust_ 60.6 +3.9 -16.5 36.0 +7.5
-33.7 +9.5
Metal products
49.5 +1.9 -24.5 24.1
+3.0 -45.6 +7.0
Blast furnaces
37.1 +1.1 -4.4
Steel works & rolling mills 44.1 +0.9 -21.1 13.6 -2.2 -50.4 -1.8
19.0
Iron and steel forgings_ -- 42.4 -6.8 -34.7 21.7 -3.1 -47.7 +1.5
-2.3 -48.9 -0.8
Structural iron work
74.7 +2.0 -20.4 38.7 +4.6 -39.7 +5.3
Steam and hot water heating appliances
77.8 +5.7 -9.8 42.4 -8.2 -26.0
Stoves and furnaces
61.1 +1.2 -5.6 44.1 +15.7 -8.5 -6.1
-Foundries
48.7 +1.2 -19.4 19.7 +1.5 -41.7 +0.7
Machinery and parts
51.5 -0.2 -31.0 24.7 -2.0 -46.9 -0.4
Electrical apparatus- _ _ 68.0
+3.5 -32.3 42.8 +20.9 -46.1
Engines and pumps
33.4 +17.6 -32.5 16.4 +25.2 -50.6 +24.9
Hardware and tools
55.1 +0.2 -19.0 28.1 +5.2 -39.6 +29.5
+2.6
Brass & bronze products_ 52.5
0.0 -16.1
Transportation equipment. 36.73 -5.2 -32.8 29.0 -1.7 -40.0 -0.4
20.53 -1.0 -51.1 -0.7
Automobiles
25.9 -27.7 -55.0 13.5 -9.4 -51.1 -11.5
Automobile bodies& parts 28.4 -18.4
Locomotives and cars_ 20.8 +4.0 -42.2 19.8 -8.3 -82.1 -6.7
-114 10.4 -7.1 -37.3 -1.7
Railroad repair shops
58.8 +0.3 -10.5 .21.8 +17.2 -57.6 +44.4
Shipbuilding
50.1 -4.2 +23.1 78.3 +8.6 +133.0 -0.1
Textile products
84.9 +13.4 -0.6 61.0 +30.3 -13.1 +25.8
Cotton goods
57.1 +14.2 -9.2 45.4 +37.6 -10.8 +2.0
Woolens and worsteds
64.6 +23.5 +2.4 43.2 +30.5 -17.1 +8.6
Silk goods
97.9 +13.8
Textile dyeing & finl.sh'g 78.2 +10.0 +11.6 72.4 +14.2 -15.2 +13.6
-11.4 69.5 +7.3 -11.8 -10.9
Carpets and rugs
49.7 +10.2 -22.9 28.2 +11.9 -46.5 +9.7
Hats
58.5 +3.2 -20.6 55.4 +27.4 +1.3
Hosiery
101.2 +7.4 +2.2 76.9 +54.1 +1.3 +64.3
Knit goods, other
87.1 +32.2 -4.3 61.7 +43.5 -21.0 +36.5
Men's clothing
70.9 +11.0 -14.9 50.9 +22.9 -31.7 +26.3
Women's clothing
90.7 +35.0 -13.0 58.5 +48.1 -30.1 +0.9
Shirts and furnishings
119.6 +32.3 -20.4 77.3 +26.5 -37.4 +56.1
Foods and tobacco
96.6
Break and bakery prods- 94.6 +2.7 -9.1 78.3 +2.6 -16.3 +5.3
0.0 -10.0 77.5
0.0 -19.1 +2.0
Confectionery
89.4 +13.0 -16.5 75.6 +15.8 -22.5 +15.6
Ice Cream
86.8 -12.0 -18.7 71.6 -13.3 -32.0 -10.6
Meat packing
93.8 +1.5 -0.1 74.4 +7.5 -5.8 +7.9
Cigars and tobacco
Stone, clay & glass products 98.0 +2.2 -5.2 75.9 +0.9 -8.8 +4.5
45.9 +8.0 -18.9 21.2 + 1.0 -45.1 +9.0
Brick, tile and pottery
46.6 +2.2 -29.6 19.2 +2.1 -52.0 +2.1
Cement
42.5 +25.7 -14.1 19.5 +18.9 -45.1 +28.6
Glass
52.4 -7.6 -9.0 30.5 -20.4 -33.1 -17.1
Lumber products
45.3
Lumber & planing mills_ 25.2 +6.1 -25.7 31.1 +9.1 -46.7 +10.5
-4.9 -26.1 16.2 -7.4 -41.5 -9.6
Furniture
52.6 +15.9 -28.5 38.1 +26.6 -48.0 +20.2
Wooden boxes
56.2 -1.9 -11.1 35.7 -8.9 -40.6 +5.9
Chemical products
79.3 -1.7 -6.9 63.0 -2.5 -15.5 -2.4
Chemicals and drugs
49.8 -2.2 -23.1 37.7 -3.3 -37.8 -12.3
Coke
55.5 -5.3 -5.6 18.3 -0.5 -43.5 .._
Explosives
63.9
Paints and varnishes._ 81.1 +0.9 -16.4 52.4 +22.7 -34.7
41.8 -6.7 54.4 +6.0 -29.0 +3.7
Petroleum refining
124.8 -1.4 +0.4 114.4 -4.2 -1.4 -2.1
Leather and rubber prod
83.9 +0.7 -13.5 60.1 +0.5 -32.6 -2.1
Leather tanning
81.1 -1.6 -20.3 54.7 -1.1 --41.2 -4.2
Shoes
98.0
Leather products, other. 67.1 +3.4 -2.2 80.2 +16.7 -7.5 +10.5
Rubber tires and goods_ 77.5 +0.8 -19.0 56.9 +0.9 -27.2 +2.2
+1.4 -11.4 54.0 -29.0 -43.1 -21.6
Paper and printing
81.7
25.3 +3.5
Paper and wood pulp.... 74.4 +2.6 -10.3 64.9 +2.7
+7.7
Paper boxes and bags_ 61.3 -0.2 -5.0 47.7 +3.7 -20.5 +5.4
-26.3 52.0 +14.3 -36.4
Printing and publishing
sin 2 4.05 -in o 72_fl .4-21 -2R a +7.7
4.1 A
p Preliminary. * Figures from 807
companies representing 53 Industries.
x Figures from 572 companies representing 47 industries.

2729

which has just been completed by R. G. Dun & Co. The
survey issued Oct. 18 also said as follows:
Almost two-thirds of the world's supply of crude
rubber is turned into
finished products in the United States, and of this
amount nearly threequarters goes into the production of tires, tubes
and tire accessories for
automobiles, motorcycles and bicycles; the balance
enters into the manufacture of rubber heels, rubberized fabrics,
mechanical rubber goods,
rubberized and rubber clothing, and druggists'
and stationers' rubber
goods. As automobile production and sales have
declined more than 40%
from the 1931 total, the original equipment
business has been reduced
sharply. In addition, replacement purchases
are subnormal for the
third successive year. Further handicaps to the progress
of the tire division
have been furnished by price-cutting by mail-order
houses, and the large
discounts granted to aid retailers and factory
-owned stores.
Rehabilitation programs recently started by
many industrial concerns,
In order to conserve their plants and partly in anticipati
on of further
business expansion, have been reflected in the
production and distribution
of mechanical rubber goods. Call for replaceme
nt needs, principally hose
and belting, have picked up materially, and new installatio
n contracts are
larger in proportion. The low prices which have
prevailed for some time
are continuing, but there is an upward tendency on certain
grades. Quotations for crude rubber sheets have fluctuated considerab
ly during the
past year. Present prices are close to a basis of 3Mc., as
compared with
6c. a year ago.
Conditions in the retail division have been less favorable.
During the
past six months sales have declined approximately 30%,
by comparison
with the total volume of business transacted in the same period
last year.
Spring and summer weather was too dry to favor a free
movement of
rubber clothing and footwear, but bathing goods have contribute
d to a
substantial part of the sales. Retailers have good-sized
carry-over stocks
of rubber footwear, but this department now is approachi
ng the season
of the year when sales should show a marked improvement.
The insolvency record of the rubber industry has been somewhat
more
favorable than it was last year, at least in the manufactu
ring division.
Although there were 11 defaults recorded for manufacturers in
the compilation of R. G. Dun & Co. during the first eight months of the
current
year, as compared with eight for the entire 12 months of
1931, the total
of the involved liabilities was less by $1,046,287.

Shipments of Pneumatic Casings and Inner Tubes
Increased During August
-Production Declined
Inventories Again Rise.
Shipments of pneumatic casings for the months of August
1932 amounted to 2,654,863 casings, an increase of 10.4%
over July this year, but were 46.5% below August 1931,
according to statistics estimated to represent 100% of the
industry, as released by the Rubber Manufacturers Association, Inc. Production of pneumatic casings for August
1932 totaled 3,089,201 casings, a decrease of 14.6% under
July this year and 20.9% below August 1931. Pneumatic
casings in the hands of manufacturers Aug. 31 amounted
to 6,658,974 units, an increase of 7.4% above July 31 stocks,
but were 25.1% below Aug. 31 1931. The actual figures
are as follows:
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS.
[From figures estimated to represent 100% of the
Industry.]
Shipments.




3,089,201
3.616,829
3 905 925

Inventory.
6,658.974
6,202,856
8.896.296

The Association, in its bulletin dated Oct. 14 1932, gave
the following data:
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS AND
INNER
TUBES (BY MONTHS).
iFrom figures estimated to represent 80% of the industry.]
Pneumatic Casings.
Inrentory.
1932
January
February
March
April
May
June
July
August

Oldput.

6.329,417
7,337.796
7.902.258
7476.1356
7,502,953
x3,999,260
4,962,285
5.327,17

Total

Rubber Industry Retarded by Heavy Surplus
Stocks
According to R. G. Dun & Co.
-Consumption
at Lowest Point During 1931 Since 1925.
Rubber consumption in 1931 dropped to the lowest point
since official figures first were compiled in 1925, the total
of
250,000 long tons comparing with the 1930 consumption
figures of 376,000 long tons. For the first nine months of
the current year consumption in long tons has receded to
275,220, in contrast to 281,039 in 1931, and 229,100 in 1930
for the same nine months' period, while imports for the
comparative nine months of 1932, 1931 and 1930 were
314,534, 357,632 and 367,542 long tons, respectively.
Stocks on hand at the end of September are placed at 365,789
long tons, which brings the total to a new high level, as
stocks of crude rubber on hand at the close of 1931 were
approximately 322,000 -long tons, which constituted the
previous record, having risen from 201,600 long tons at the
close of 1930, according to the survey of the rubber industry

Production.

2,654,863
2,404,095
4,959.984

August 1932
July
1932
August 1931

7.165.846
7.628,520
8,011,592
8.025,135
8.249,856
8.357,768
7.935465
7,117,037
6.526,762
6.640.062
6,335.227
6,219.776

Total

Total
x Revised.

Inner Tubes.
/nentory.

Output.

2,769.988 2.602,469 6,175,055
3,098,976 2,042,789 7.007.567
2,936,872 2,363,323 7,558.177
2,813,489 2,958,014 7.552,674
3,056,050 3.406.493 7.130.625
4,514,663 x8,051,932 x4,139,358
2,893,463 1,923.276 4,779.814
2,471,361 2,123,890 4.901,884
24,552,862 25,471.685

1931
January
February
March
April
May
June
July
August
September__ - _
October
November
December

1930
January
February
March
A pr11
May
June
July
August
September_
October
November
December

Shipments.

2,939,702
3,188,274
3,730,061
3,95.5.491
4,543,003
4,537.970
3,941,187
3,124,746
2,537,575
2.379,004
2,000,630
2,114.577

2495.479
2.721.347
3,297,225
3.945,525
4.332,137
4,457.509
4,369.526
3,967,987
3.145,488
2,281,322
2,309,971
2,225,036

3.588.862
3,644,606
3.890,981
4,518,034
4.573,895
4.097,808
3.193,057
3.332.489
2,692,355
2.865,933
2,123.089
2.251.269

7.551.503
9.936,773
8,379,974
8.330.155
8,438,799
8.403,401
7,671.801
7,019.217
6.476.191
6,658,913
6,495,708
6.337,570

2,898.405
3,132,770
3.559.644
3.693,222
4,329,731
4.286,467
3.964,174
3,548.335
2.759,431
2,461.578
1,954,915
2.077,704

3,249,734
2,720.135
3.031,270
3,708.949
4.224.594
4.317,543
4,664,964
4,240,403
3,320,103
2,250,494
2.075,716
2,213.261

38.666,376 40,017,176

3,525,404 10,163.267
3,356.104 10.428468
3,773.865 10,543,026
4,071,822 11,027.711
4,173,177 11.081,523
4,234,994 10,889.444
4,357.836 9,325.602
4.139.900 8,589,304
3,524.141 8.052.12i
2.799.440 8.413.578
2,267.465 8.250.432
2.688.960 7.999.477

40,772.378 42,913,108

2.718,508 2,803,369
3.056.988 2.182.405
2,801.602 2.148,899
2,579,768 2,708.186
2,727,462 3.093,593
4,222,816 x7,215,371
2,349.761 1,727.750
2,198,560 2.002,347
22,655,465 23,881,920

38.992,220 40,048452
9,539.353
9.928.238
10,010.173
10.461,208
10,745,389
10421.634
9.449,318
8.678.164
_ 7.849.411
7.842.150
7.785.786
7.202.750

Ship',tents.

3.685.410
3,707,066
3,952.921
4.408.030
4,428,367
3,959,972
3,151.107
3.836.880
3,053.424
3,161.048
2,143,609
2.448,195

3.885,717
3.469,919
3,781,789
3.878,697
4,058,847
4,212,082
4,884,182
4.609.856
3,632,458
2.777465
2.230.654
2.729,973

41:
936,029 43,952.139

Financial Chronicle

2730

THE
CONSUMPTION OF COTTON FABRICS AND CRUDE RUBBER IN
PRODUCTION OF CASINGS, TUBES. SOLIDS AND CUSHION TIRES
AND OUTPUT OF PASSENGER CARS AND TRUCKS.
a Production.

Consumption.
Cotton
Fabrics
(80%)
Calendar years:
1928
1927
1928
1929
1930
1931
First 8 months of:
1931
1932
Month of Aug. 1932

(Pounds)
165,963,182
177,979,818
222.243.398
208,824.653
158,812,462
151.143,715

Crude
Rubber
(80%)

Gasoline
(100%)

(Gallons)
(Pounds)
518,043,062 10.708,068.000
515,994,728 12,512,976,000
600,413.401 13,633,452,000
598,994.708 14,748.552.000
476.755.707 16.200.894.000
458.615.428 16.941,750.000

Passenger
Trucks
Cars
(100%) (100%1
3,929,535
3,093,428
4,024,590
4.811,107
2.939.791
2.036.567

1932

Hope in an eventual unification of some, at least, of the major producers
is still held in banking and paper circles here and in Canada. The necessity
of eliminating some of the excess newsprint manufacturing capacity by closing down the leas efficient plants is recognized by all makers, and, it is
contended by some, can be accomplished only through a general consolidation of major producers.

535,006
486,952
576.540
810,549
569,271
435.784

116,004.763 347,463.175 11,357,010,000 1,717,734 335,744
98,398,703 314.372,275 10,439,604,000 945,341 178.755
79,073 15,318
10,115,830 32.984,219 1,478,694,000

WHOLESALE PRICES OF COMMODITIES.
I Index Numbers.
1926=100.
Average Prices.
Commodity.
Aug. Aug. July Aug.
Aug. July
1932. 1932. 1931. 1932. 1932. 1931.
65.2 64.5 72.1
All commodities
7.9 • 6.1 11.2
Crude rubber (cents per pound)
5.9 11.1
7.8
.054
.029
pound)_ - .038
Smoked sheets (cents per
7.6 11.6
9.0
.057
.038
Latex crepe (cents per pound)._ .045
40.1 40.1 46.0
Tires(dollars per unit)
9.59 39.7 39.7 43.6
8.74
8.74
Balloon (dollars per unit)
5.28 48.1 48.1 55.5
4.57
4.57
Cord (dollars per unit)
50.8
25.46 25.46 31.13 41.6 41.6 43.1
Truck and bus (dollars per unit)
2.43 34.7 34.7
1.96
1.96
Tubes. inner (dollars per unit)
abroad the
x These figures include Canadian production and cars assembled
Parts of which were manufactured In the United States.

for
Albert H Wiggin Declares There Is No Foundation
in Montreal of Newsprint
Report That Conferences
of
Interests Resulted in "Sharp Differences
Opinion."
differWith reference to reports from Montreal of "sharp
that city of newsprint
ences of opinion" at a conference in
Governing
interests, Albert H. Wiggin, Chairman of the
Bank of New York, issued the
Board of the Chase National
following statement on Oct. 18:

bad taken a
In reference to published statements that Albert H. Wiggin he was in
part in the "newsprint war," Mr. Wiggin stated to-day that foundation
no
Montreal Friday last [Oct. 14] and that there is absolutely
encountered and
for the statement that "sharp differences of opinion were
Mr. Wiggin
that the conference broke off with a decided air of tension." executives of
added that paper contracts are entirely the affair of the
the International Paper Co.

From Montreal, Oct. 17, Canadian Press accounts had the
following to say:
columns:
The "Star" to-day publishes the following in its financial
in a bitter
"The leading units in the newsprint industry are now engaged
question of prices.
price war that eclipses any previous controversy over the
was offered
"Further price concessions have been made, and spot paper
only about $2
to-day as low as $38 per ton, with contract prices averaging
the recent level
per ton higher, which is a considerable reduction from
Paper Co. a few
of $45 per ton which was established by the International
weeks ago.
keen. It
"The competition for contracts is reported to be particularly
has been sucis understood on unimpeachable authority that International
what are generally
cessful in securing contracts which were formerly held by
known as the Canadian group.
by Consolidated
"In this connection, contract losses have been suffered contracts were
Papen, Price Bros. & Co., and St. Lawrence Corp. The
those of Canadian daily papers.
differences between
"Further efforts are now directed to a solution of the
of a conthe various interests in the industry. The Street learned to-day
head of the
ference held last week between the Canadian interests and the
Paper
Chase National Bank, Albert H. Wiggin, bankers for International conferthe
Interests. Sharp differences of opinion were encountered and
ence broke off with a decided air of tension.
here this
"Meanwhile, leading executive; of the industry were in session
under
morning, although there was no intimation of the subject matter
discussion.
must be
"In the case of Price Bros., interest on the first mortgage bonds
bondholders.
met before Nov. 1 or the property will fall into the hands of
paid. No
It is reported in some quarters, unofficially, the interest will be
1.
official statement has been made. The interest payment was due Aug.
a
"The case of Lake St. John Paper Co., a unit of St. Lawrence Corp.,
Memcommittee has been named to protect the interest of bondholders.
Arthur
bers of this committee are: John Appleton, Toronto; Senator
John
Meighen and A. F. White, both of Toronto; W. S. Lighthall and
Stadler of Montreal.
be
"Representing the debenture holders of the Lake St. John Co. will
Mitchell,
E. V. Young, D. H. McDougall, George L. Robinson and John
Toronto, and E. Jones, Montreal.
before
"These committees, it is understood, will first ask for proxies
calling meetings of the security holders."

In its issue of Oct. 19 the New York "Times" said:
Finance
Mr. Wiggin is a director and a member of the Executive and
Paper &
Committees of the International Paper Co. and the International
Co. As the
Power Co., and a director of the Canadian International Paper
company, Mr.
Chase National Bank is the principal banker for the paper
affairs.
Wiggin has at all times been actively interested in its
large Canadian
Although little has been heard of the plans to merge
s in recent months, they are still in progress under
newsprint manufacturer
Canadian Pacific Railway.
the leadership of Edward W. Beatty, head of the
s other than terms, and the recent
They have been delayed by consideration
in paper circles as having further
cutting of newsprint prices is viewed
retarded conclusive negotiations.
all the properCanadian and American bankers sponsored a plan whereby
were to be analyzed and weighted in
ties of each of the major companies
unit under a general merger scheme.
order to determine the value of each
to the values claimed
have been numerous differences of opinion as
There
conceded by the various parties at interest.
or




Oct. 22

Wild Ford Rumor Lifts Wheat Prices-Buying Spurred
By False Report Auto Maker Would Buy Grain
to Sell to China.
A Chicago dispatch Oct. 19 to the New York "Times" said:
Ths wly•at trade received a thrill late In to-day's session of the Board
of Trade here when unconfirmed rumors were circulated that Henry Ford
would announce late in the evening that he intended to buy 75.000,000
seven
bushels of wheat at 60 cents a bushel and sell the grain to China on
rumor, the stock
Years' credit. While the trade was inclined to scout the
and caused a rush of
market suddenly braced at about the same time,
short covering by the Pit element that made the close at the top at net
gains of R; to 1 cent a bushel.
The rumor was reported by Ford officials to be without foundation,
had
tut the denial was not received until after the indemnity market
closed. Offers good all day to-morrow which were in active demand near
the close, advanced sharply.

The same paper in its issue of Oct. 21 printed the following:
Exploding a Rumor.
bushels
Denial of the rumor that Henry Ford was purchasing 75.000.000
-a story which caused a sharp advance in the
of wheat for sale to China
by a swift decline in
grain pit on Wednesday-was followed yesterday
wheat prices. Wheat opened aoout a quarter cent lower and extended
the decline to more than a cent, December contracts touching 47K cents,
closing
the season's minimum. Later, however, the market rallied and
nrIrets were about three-eighths cent oelow the Previous day's final quotation.

Cut in Rail Rates on Export
Corn.
Chicago advices Oct. 18 to the New York -Times" said:

Grain Dealers Urge 50%

An emergency freight rate on corn for export has been recommended
by the Grain and Feed Dealers' National Association in a letter sent to
President Hoover and the heads of railroads. A reduction of 50% from
existing rates Is urged as a measure of economic assistance to fanners.
It is advised that the cut be put into effect after the close of navigation
on the Great Lakes so that corn shipments on the combined lake-and-rail
rate will not be affected.
Advices to the Association said President Hoover had referred the matter
to the Int?r-State Commerce Contmission.

Hearing of Chicago Board of Trade Appeal Nov. 10
Proceedings Outgrowth of Refusal to Grant Clearing Privileges to Farmers' National Grain Corp.
From the Wall Street "Journal" of last night (Oct. 21)
we take the following from Chicago:
of Agrihi Hearing of appeal of tne Board of Trade against the Secretary so-called
the

culture, Secretary of Commerce and Attorney-General in
Farmers' National Grain Co. case in U. S. Circuit Court of Appeals has
been postponed until Nov. 10 due to illness of Weymouth Kirkland, attorney
for the Board of Trade. The case concerns the order of the appellees who
sat as a commission under the Grain Futures Act and suspended the Board
of Trade for 60 days as a contract market upon refusal by the Board to
admit Farmers' National to clearing membership.

A previous item appeared in our isue of Oct. 1, page 2259.
May Lift Restrictions as to Grain Futures-President
Hoover Said to Be Negotiating with Chicago
Board to Ease Market Situation.
According to a Chicago dispatch Oct. 20 to the New York
"Times" negotiations were reported under way to-day between President Hoover and the Chicago Board of Trade on
the question of lifting the restrictions on trading in grain
futures, with a view to easing the market situation. Peter
B. Carri, President, and other representatives of the board
had a conference with the President three weeks ago said
the dispatch which added:
For years restrictions on trading in grain futures have been a source

of complaint among the members. At present all open trades of 600,000
bushels of wheat, corn and oats, and 200,000 bushels of rice, must be reported to the grain futures administration. It is proposed to make a
new arrangement to have the Board of Trade clearing house handle the
reports, instead of the grain futures administration.
There have been conjectures that if the restrictions on futures trading
were eased an arrangement might be reached with the Government whereby the Board of Trade might give the Federal Farm Board the privilege
of the Clearing House.

Arthur W. Cutten Says Pools in Grain Are Futile
Warns Canadians by Citing Alleged $500,000,000
Spent by Government Here.
From a dispatch Oct. 16 from Chicago to the New York
"Times" we take the following:
"Were the Canadian Government or the pools to take 100,000,000 bushels
'of wheat at 30 cents a bushel and dump it into the lake, they would be out
.
$30,000,000," said Arthur W Cutten, referring to reports from Winnipeg
that the Canadian pools were sustaining the wheat market there at 60 cents
wheat. "The United States Government would have
a bushel for December
been better off had it taken 300,000,000 bushels of wheat and dumped it
into the ocean, as it has expended $500,000,000 in three years, yet our
prices to-day are the lowest known for wheat."
Many wheat traders here virtually agree with Mr. Cutten, believing
that efforts of Governments or pools to sustain or "peg" prices in the face

Volume 135

Financial Chronicle

of adverse conditions are futile, especially when stocks are greatly in
excess of consumptive and export requirements.
Wheat and other grains dropped last week to the lowest prices of the
season on the Board of Trade here. At the same time it was necessary
for the Canadian pool to peg December wheat in Winnipeg at 50 cents.
It is estimated that export sales of Canadian wheat credited to the pools,
were around 5,000,000 bushels for the week, or about the same as for
several weeks, and it is said the pool has bought 15,000,000 bushels
of
late.
The closing price in Winnipeg for October wheat yesterday was 48%
cents; for December, 50 cents; May, 54% cents, the last figure % cent
lower than a week ago, while December was % cent and October % cent
lower. These were virtually the lowest prices of the week.
In the market here the bottom figures of the week were made yesterday,
December selling at 47% cents and May at 63%. July made its
low
mark, 54% cents, on Thursday, while on Saturday the low price was
%
cent above that.

2731

Australian Wheat Gains 30,000,000 Bushels—Govern
ment Report Estimates Crop at 200,000,000 Bushels
—Above Average.
Associated Press accounts from.Oanberra, Australia, Oct.
20 stated that the 1932 Australian wheat crop was estimated
by the Government that day at 200,000,000 bushels. The
New York "Evening Post" of Oct. 20, in publishin
g the above
said:
The Australian crop of this year compares with
last year's crop of
170,000,000 bushels and a five-year average of about
With an increase of 30,000,000 bushels in view, 160,000,000 bushels.
moreover, it becomes
increasingly apparent that the United States must
do the major portion
of her export business within the next few months, as
the Southern Hemisphere crops will begin to move in volume at the end
of this period.

Argentine Wheat Prospects Good.
The following Buenos Aires cablegram Oct. 20 is from the
New York "Times":

Bank of Montreal on Dominion Crops —Few
Years
Have Exceeded High Yield and Quality of
1932
Canadian Crops.
The Bureau of Rural Statistics reports crop conditions from
good to
excellent in all provinces except Entre Rios, where locusts have
The principal field crops of Canada have seldom
eaten
attained
vast areas. Entre Rios sows only 4% of the country's wheat, but 25%
such total volume as during th( present season or been
of its flaxseed. Unless weather conditions become unfavorable, the Bureau
of a
expects a large wheat crop but a curtailed flaxseed harvest.
higher quality, the Bank of Montreal states in its final
crop
report for this year. "Yields were generally satisfactory
in
The World's Wheat Crop—Beerbohm, British Expert, each of the Provinces, despite sectional reverses due to
weather conditions or other causes. A preliminary estimate
Places Total 102,000,000 Bushels Below 1931.
Under date of Oct. 14, London advices to the New York of the Dominion Bureau of Statistics placed the total yield
of wheat in the Prairie Provinces et 446,000,000 bushels,
"Times" said:
but from the htest reports a total of around 415,000,0
Beerbohm does not confirm the American estimates of an
increase in
00
total wheat production of the world over last year's harvest. He
bushels is now looked for. Even so. the yield is well
estimates
in
the world's wheat output this year at 675,500,000 quarters of eight bushels,
Mess of the 16-year average and the largest crop
as against 588,250,000 a year ago.
since 1928.
Last year's Prairie crop was approximately 300,000,0
The exportable surplus is placed by Beerbohm at 150,000,000
quarters
00
requirements of importing countries at 82,000,000.
and the
bushels. The wheat marketed to date has graded exceptionally, high and tests indicate that the high protein content
International Institute of Agriculture at Rome,
Italy— will be maintained. The western oat crop is estimated at
Ratifies Pact Whereby Institute Would Become 274,003,000 bushels against 183,700,000
last year, and the
Agricultural Organ of League of Nations—Con- barley crop at 70,00),000 bushels as compared
with 50,5CO3vening of Institute's General Assembly.
000. In Quebec, crops of the main staples have been good
Under date of Oct. 18 a wireless message from Rome, and in Ontario they have been heavy, although in both
Provinces potatoes are below average. In the Maritime
Italy, to the New York "Times" said:
The 'International Institute of Agriculture to-day unanimously
Provinces crops have done well, with again the exception of
ratified
a draft agreement whereby the League of Nations Council recognizes the
potatoes, Nova Scotia also recording a 30% loss of the apple
Institute as the League's advisory organ in agricultural matters.
The
crop due to storms. In British Columbia crops generally
agreement provides further for co-ordination of the activities
of the two
bodies, while respecting the separate identity of the institute.
have been above the average.

To-day's action makes effective the hope expressed by David Lubin, the
Institute's founder, in a resolution adopted by the Institute's
permanent
committee in December 1918, that when the League came
into being the
Institute might become its agricultural agency.

From the same paper we also take the following from
Rome, Oct. 17:
In the midst of the gravest and most widespread crisis agriculture
has
ever known the eleventh meeting of the general assembly of the International Institute of Agriculture convened this morning in the Villa
Borghese.
Forty-two of the leading nations of the world were all represented
by
strong delegations, the two notable absentees being the United States
and
Russia. Regret was expressed on all sides at the absence of the
United
States. China was again present after several years' absence.
Problems
of world agriculture will be discussed for the next week.
All of the delegates agree with the thought expressed by the President
of the assembly in his opening address that the present distressing conditions in agriculture could be remedied only by common action
among
the countries of advanced civilization. The thought was stressed by
several that it was imperative at this time to keep open the channels
of
International communication and consultation, of which the
institute was
held to be the most effective as far as agriculture is concerned.
Sir Bhupendra Nath Mithra, the High Commissioner of India in London,
was elected President of the assembly.
Among the notable representatives of agriculture present as
delegates
are Dr. Andreas Hermes, former Minister of Agriculture of Germany; Dr.
Englebert Dollfuss, Chancellor of Austria; Senor Valiente, Under-Secre
tary
of Agriculture of Spain; Marquis de Vogue, President of the Society of
Agriculturalists of France; Sir Daniel Hall, Scientific
Advisor to the
British Board of Agriculture; Mr. Okamoto of Japan and Dr. Van Rhyn of
Holland.

Low Funds Handicap International Institute of Agriculture at Rome, Italy—Unable to Publish Reports
on First World Census.
The following from Rome, Italy, Oct. 20, is from the New
York "Times":
Delegates to the meetings of the International Institute of Agriculture
here charge all Governments show indifference to the International body,
and even to their own official organizations that deal with farm problems.
They say that when the agricultural crisis is the gravest feature of the
world depression the Governments give small contributions [$48,500 for a
first-class nation] to carry on the work of the only International agricultural organization.
The entire work of the International Institute of Agriculture has been
paralyzed by the lack of funds. Valuable economic data obtained in the
first world agricultural census, carried out under the institute's leadership, cannot be made available for the use of all the nations concerned
because there are no funds for co-ordination and publication.
Farm organizations in all countries, now in dire need, are turning more
and more to the institute for facts and figures on world agricultural con.
(Miens on which to base sound national policies.
The delegates say the readiness with which funds are made available
when banking and in.dustrial interests are at stake emphasize the lack
of consideration shown by Governments to fundamental agricultural problems.




Conference on Sugar Is Postponed in Cuba -Disagreement on What Is to Be Done With Big Pool
Believed to Have Caused Delay.
From the New York "Times" we take the following from
Havana Oct. 17:
The conference scheduled for to-day between President Machado and
the directors of the Sugar Institute, the official body controlling the
sugar
industry, at which the figures for the 1933 sugar crop were
to be decided
was indefinitely postponed, according to Virlato Gutierrez, President
of
the Institute.
While no official statement was forthcoming as to the reason for inc
delay, information obtained in sugar circles indicates that it resulted
from dissension over what disposition should be made of the 700,000-ton
pool.
The Sugar Institute recommends that the crop oc limited to 2,000,000
tons, thus permitting liquidation of the pool as well as ot the 300.000 tons
of segregated sugar which must be disposed cf yearly under the Chadoourne
plan.
Some producers, headed by Dr. Orestes Ferrara, Sacretary of Stats,
who several days ago came out in an editorial against this plan,
to
see the mill owners authorized to grind 2,700,000 tollE4 and to desirethe
hold
700,000 tons over until next year.
Despite the declaration of the Chief Executive last Saturdai that the
Institute, the Government and the cane planters were in perfect accord
on the sugar situation, it is a well-known fact that the cane planters
have
always been solidly against any restriction.

World's Cotton Position as Viewed by Prof. Todd,
English Economist—American Cotton Re-Asserts
Its Dominant Position—Increased Consumption
Only Can Justify Rise in Prices.
Discussing the world's cotton position in a statement made
to the Association of Cotton Textile Merchants of New York,
Professor John A. Todd, the English economist, points out
that "the outstanding feature of the last two years has been
the renewed evidence of the unlimited capacity of the American cotton crop to falsify all predictions and do the exact
opposite of what it did the year before." Prof. Todd under
date of Oct. 15 said:
"In 1930 the alarming feature of the American c3tton situation was the
extraordinary change-over of the world's consumption from American to
outside growths as the result of three bad American crops in succession,
both in quantity and quality, with the inevitable effect on relative values.
Two years ago the figures showed for the first time that in one half-ye
ar
the world had apparently consumed more outside growth than of
American
Cotton. In 1930-31 the first half of the season carried this tendency
still
further, but the second half showed a distinct reaction in favor of
American
and in the season just closed this reaction has been carried still
further.
For the time being, at least. American cotton has reasserted its dominant
position.

2732

Financial Chronicle

Oct. 22 1932

indicated 90% operations on the same basis. The Exchange
"During the past season the United States consumption of American cotService on Oct. 17 said:
ton has steadily declined, while that of the rest of the world has increased,
rest
but exactly the contrary movement is shown in the comparison of the
This phenomenal increase was the result of extremely heavy 'sales of
growth. The former has
of the world's consumption with that of outside
cloth during the summer, followed by fairly good sales in the early fall.
-years while the latter has declined even more.
for three half
been increasing
Cloth sales were 57.1% above production in July, 182.4% above production
The main cause of this see-saw movement of relative consumption lies in
in August, and 2.6% above production in September. In considering the
the vagaries of the American crop.
small excess over production in September. it should be borne in mind that
"For nearly two years after the Wall Street crash the fall in the price of
production in that month was much larger than in the early summer. Reit was alleged to be in so many commodities, to any
cotton was not due, as
porting mills sold goods at an average rate of 56.000,000 yards per week in
of supplies; on the contrary, the world's cotton production had been
excess
July. 128,000.000 in August. and 59,000,000 in September. Their total
that
quite moderate and it was only the effect of restricted consumption
sales in the three months from July to September, inclusive, aggregated
gradually began to pile up the world's stocks of cotton, which by the end
1,025,557,000 yards, compared with ohly 436,221,000 yards in the previous
figure.
of July, 1931, were rapidly approaching a record
three months from April to June, inclusive. Sales in the three months from
crop of 1931 completely changed the situation. The pros"The bumper
July to September last year totaled 673,713,000 yards.
pective season's supply. i. e., crop plus carryover in 1931-32, was recordbreaking (25,445,000 bales), so that a crop far in excess of current consumpnew
tion aggravated the fan in the price of cotton and brought it down to
low levels in history. Owing to England's departure from the gold standard.
Activity in the Cotton Spinning Industry for
York
Liverpool prices no longer reflected world cotton prices, but in New
the
September 1932.
on Juno 9 1932 cotton futures touched 4.85 cents, which compares with
previous low record in history of 4.98 cents in November, 1898.
The Department of Commerce announced on Oct. 20
price of cotton were due just as
"Thus the last stages in the fall in the
as to
that, according to preliminary figures compiled by the
much to the conditions of supply and demand affecting cotton itself
of
the general world conditions, though these continued throughout most
Bureau of the Census, 31,545,832 cotton spinning spindles
The abandonthe past season to be just about as bad as they could be.
were in place in the United States on Sept. 30 1932, of which
ment of the gold standard had produced an artificial rise in nominal prices
steadily
23,883,948 were operated at some time during the month
in England and other countries similarly placed, but gold prices
declined, even in America, in spite of the efforts of Washington towards
compared with 22,022,490 for August, 19,758,252 for July
reflation.
20,646,966 for June, 21,633,036 for May, 23,362,862 for
do with it. The un"When the turn di'l come, cotton had a good deal to
a
April and 25,230,618 for September 1931. The aggregate
expectedly small figure of the Bureau's August estimate was as great
been in the
shock to the market as the big crop figure of August, 1931, had
number of active spindle hours reported for the month was
sympathetic
other direction. The sharp appreciation of cotton had a
at the
6,866,031,482. During September the normal time of
effect on other commodities. The fact that the world's carryover
bales was
end of the season had reached the record total of 12,818,000
operation was 25 2-3 days (allowance being made for the
to
entirely ignored, and crop prospects were being steadily talked down
observance of Labor Day in some localities) compared with
about 10,750,000 bales.
27 for August, 25 for July, 26 for June, 253 for May and
"The sentimental effect of the fall from last year's figure of 17.096,000
lowest in
bales, I, e., from the second largest figure in history to one of the
25% for April. Based on an activity of 8.96 hours per day
searecent years, completely overshadowed the fact that the prospective
largest
the average number of spindles operated during September
even with such a small crop, would still be the second
son's supply,
demand
was 29,856,205 or at 94.6% capacity on a single shift basis.
in history. The change in sentiment had its effect on the actual
for cotton goods, with August sales showing a record figure.
This percentage compares with 72.4 for August, 51.5 for
report on market sentiment was out of all
"The effect of the September
sharp reJuly, 57.6 for June, 63.3 for May, 70.5 for April and 87.9
proportions to the facts: and there is very little doubt that the
general
action in cotton was one of the chief contributing factors to the
for September 1931. The average number of active spindle
prices, which has since
reaction on the Stock Exchange and in commodity
hours per spindle in place for the month was 218. The total
cottcn has played almost a major part in
developed. Since August, 1931,
number of cotton spinning spindles in place, the number
tendency of commodity prices. In August, 1931, it was the
the general
straw that
last straw that broke prices. In August, 1932, it was the first
active, the number of active spindle hours and the average
and the Septemshowed the new direction in which the wind was blowing,
hours per spindle in place, by states, are shown in the
ber report was the first sign of a change of wind.
following statement.
"There is no getting away from the fact that the crisis of the last three
years has been due almost entirely to reduced consumption, rather than to
excessive production, and any real recovery must depend on a reversal of
Active Spindle flours
Spinning Spindles.
that condition. The United States figures of raw cotton consumption and
for September,
in July of this year, which were the lowest on
State.
production of cotton goods
Active DurIn Place
Average per
record, showed the appalling extent to which the restriction of consumption
fag Sept.
Sept. 30.
Total.
Spindle in Plate.
had gone.
Presidential election be31,545,832 23,883,948 6,866.031,482
218
"Apparently the world must wait until after the
United States
It is
fore we can even hope to see the fundamental problems really tackled.
279
Cotton growing States 19,109,940 16.701.442 5,327,328,942
how, with all these major problems still unsolved (such as repahard to see
6,485.378 1,403,612,939
124
New England States 11,276,136
subrations, war debts, tariff and exchange restrictions), there can be any
697,128
1,159,756
116
135,089,601
All other States
trouble—
stantial change in what is, after all, the chief cause of the whole
1,664,850
1,865,558
285
531.187,477
Alabama
the world's inability to consume goods because of the lack of purchasing
657,250
1,031,248
138
142,382,039
Connecticut
power.
2,900,234
3,318,012
869,671,843
262
Georgia
of
778.274
981,580
"We start the season with a world supply of about 24,000.000 bales
166
163,187,787
Maine
3.370.176
6,142,718
117
715,781,158
Massachusetts
American cotton while the world's consumption last season was 12,319,000
150,536
216,756
increase of
53,162,323
245
Mississippi
bales. The only thing that can justify a rise in prices is an
733,298
1,189,568
148
176,595,059
New Hampshire
consumption.
234,432
135,476
20,891,592
89
New Jersey
of the situation in
268.716
580,336
112
65,223,175
New York
"The statement then goes into an exhaustive discussion
Egypt
5,145,746 1,507,081,464
6,164,334
244
North Carolina
of outside growth,such as those of India, China and Egypt.
In crops
847,86 3
1,813,758
101
183.310,024
more than half of
Rhode Island
followed up her big cut in the acreage of 1931 to a little
5,319,826 1,896,627,580
333
South Carolina— --- 5,697,706
are likely to
501.10
691,304
the record figure of two years ago, but although conditions
349
208.465.559
Tennessee
Egyptian crop will
200.954
282.088
197
55.589,210
Texas
be more favorable than last year it is not likely that the
643.178
or eight million
678.462
231
156,673,566
Virginia
greatly exceed a half yield against the normal rf about seven
565,756
161
757,882
122,201.626
States
All other
kantars (kantar equals 100 lbs.).
something
"There are indications that both India and China will enjoy
their
more like normal conditions and will probably add a million bales to
Government's
crop in each case. With regard to Russia, the feature of the
estimates,
statistics for some years back has always been that their early
Increase of 21% in Output of Cotton by Texas Mills
This year
according to the Plan, were grossly in excess of actual outturn.
Reported by University of Texas During Septemis probable that the actual
they are promising about 2 million bales, but it
ber—Production at Unusual Rapid Pace for This
yield will be less than that. Whether they will again make large exports
will depend upon the price and the quality of the American crop.
Season of the Year.
not so
"In America the chief effect of the Farm Board position has been
Production at Texas cotton mills during September
much in anything it has done during the season as in the recurrent fear of
the
the market that it might do something with its heavy stocks, e. 6., at
proceeded at an unusually rapid rate for this season of the
a
end of April, when the mere rumor that they proposed to unload caused
year. The 21 mills reporting to the University of Texas
heavy drop in the market. The latest announcement on Sept. 5 apparbales will
Bureau of Business Research increased their output during
ently leaves us with the position that something like 3,000,000
still be held off the market until March or July 1933, unless the price goes
the month by 21% to 4,300,000 yards as compared with
above 12 cents in the meantime."
3,552,000 yards during August, although during the five
The conclusion to which the survey of the world's position brings Professor Todd is that that is extremely unlikely.
years 1927-1931 there was an average drop of 2.6% in proIncrease in Domestic Spinning Activity.
increase in domestic cotton spinning activity from
The
July to September was the greatest in any period of similar
length since records of monthly activity, through monthly
cotton consumption figures, first became available in 1912,
and it was probably the greatest increase in such a period
in the history of the industry, according to the New York
Cotton Exchange Service. In July domestic mills used only
279,000 bales, or at the rate of 12,400 bales per day. In
September they used 491,000 bales, or at the rate of 20,700
bales per day. Consumption in July indicated an activity
equal to only 54% of the average operations in the six years
from 1922 to 1927, inclusive. Consumption in September



duction from August to September. For the first time this
year production during the current month exceeded that for
the corresponding month in 1931. In noting this on Oct. 16,
the Bureau also said:
Bales of cotton used at the reporting Texas mills increased from 4.817
in August to 6.088 in September, or 26%; cotton consumption during SePtember was greater by 2.6% than in tho corresponding month last year.
Active spindles and spindle hours rose in harmony with increased activity,
and three mills which had been inactive reopened during the month.
Unfilled orders and sales held up rather well during the month, but there
naturally was a reaction following the spectacular rise in both of these
Items during the month of August. Sales, for instance, dropped to 3.822,000 yards as compared with 5,400.000 yards the previous month, and were
23% under sales in September a year ago. Although unfilled orders at the
close of August set a high for a period covering 29 months, there was a drop
of only 11% during the month, so that bookings were 6,713,000 yards at
the close of September, or 63% above those at the close of September
last year.

Financial Chronicle

Volume 135

Census Report on Cotton Consumed in September
Larger.

Under date of Oct. 14 1932, the Census Bureau issued
its report showing cotton consumed in the United States,
cotton on hand, active cotton spindles and imports and
exports of cotton for the month of September 1932 and 1931.
Cotton consumed amounted to 491,655 bales of lint and
61,308 bales of linters, compared with 402,601 bales of
lint and 47,620 bales of linters in August 1932, and 464,335
bales of lint and 64,269 bales of linters in September 1931.
It will be seen that there is an increase under September
1931, in the total lint and linters combined, of 24,359 bales,
or 4.44%. The following is the official statement:
SEPTEMBER REPORT OF COTTON CONSUMED, ON HAND,IMPORTED
AND EXPORTED, AND ACTIVE COTTON SPINDLES.
(Cotton In running bales, counting round as half bales, except foreign, which Is In
-Pound bales.)
500
Cotton Consumed
DwingTear

United States

1932 407,966
1931 377,531
1932 70.413
1931 70,738
1932 13,276
1931 16.066

New England States
All other States

Other foreign cotton
so*
-Egyptian cotton
Amer.
Norincltuied Above
Linters

Cotton
Two
In con- In Public Spindles
Months suming
Storage
Actin
Ending Establish- dt at Com- During
Sept. Sept. 30. menu. presses.
Sept.
(bales) (bales)
(bales)
(bales) (Number)

11932 491.655 894,256 1,087,286 7.969,280 23.883.948
11931 464,335 889,365 777,858 6.298,408 25,230,618

Cotton-growing States

Included Above
Egyptian cotton

Cotton on Hand
Sept. 30.
-

1932
1931
1932
1931
1932
1931

746,136
719,296
123.871
138,133
24,249
31,936

832,288 7,540,477 16,701,442
511,671 5,959,281 16,838,338
208,370 220,442 6,485.378
227,515 106.779 7,366,156
48,628 208,361
697,128
38,672 232,348 1,026,124

6,464
7,096
4,360
5,469
1,828
1,802

12,694
12,763
7,529
10,197
3,450
2,932

33,354
37,223
17,742
31,414
6,461
8,170

33,820
19,611
4,591
10,541
8,880
10,452

{ 1932 61,308
1931 64.269

108,928
126.076

269,404
202.654

53,891
38.820

I

Imports of Foreign Cotton (500-1b. Bales).
Country of Production.

September.
1932.

Egypt
Peru
China
Mexico
British India
All other
Total

•
i

2 Max. End. Sept. 30.

1931.
2,388
16
287
1,037
1,630
87

4,291
1,207
1,143
314

5,425

6.955

1932.
10,448
1,471
1,758

1931.

4113
85
14,178

•

5,377
231
941
1,252
4,783
77
12,661

Exports of Domestic Cotton Excluding Linters
(Running Bales
-See Note for Linters).
Country to Which Exported.

September.

2 Mos.End. Sept. 30.

1932.
United Kingdom
France
Italy
Germany
Spain
Belgium
Other Europe
Japan
China
Canada
All other

1931.

1932.

1931.

86,819
111,477
68,340
252.979
26,439
18,439
49,084
103,407
6,620
8,441
1,820

28,208
22,108
39,859
120,824
25,226
12,414
26,475
162,313
106,758
6,377
7,630

154,172
187,480
110,864
357,847
46,189
30,646
72,138
161,871
46,033
12,439
6,140

35,276
28.072
61.942
142.256
40.298
16,787
40,472
215,429
161,139
15.874
11,679

Total

538,192 1.185.819
733,665
769 222
Note.
-Linters exported, not included above, were 15.796 bales during
September
in 1032 and 4,331 bales In 1931; 26,402 bales for the two months ended Sept.
30 in
1932 and 9,575 bales In 1931. The distribution for September 1932
Kingdom, 1,434; Netherlands, 1,827; Belgium, 2,120; France, follows: United
3.663: Germany.
5,603; Italy, 90; Canada, 901; Japan, 160; Panama, 30; Finland, 8.
WORLD STATISTICS.
The estimated world's production of commercial cotton, exclusive of
lintere.
grown in 1931. as compiled from various sources was 26.398,000 bales. counting
American in running bales and foreign In bales of 478 pounds lint, while
the consumption of cotton (exclusive of linters In the United States) for the
year ended
July 31 1931, was approximately 22.402,000 bales. The total number of spinning
cotton spindles, both active and Idle is about 162,000,000.
Economic Trend Upward, Says C. T. Revere--Believes
Cotton on Eve of Major Upward Movement
India Lifts the Boycott on British Cotton
Goods.

The belief that the economic trend is upward is expressed
by C. T. Revere of Munds, Winslow & Potter, in his current
cotton letter, which adds that "while political muddling and
meddling may impede the progress toward recovery, the
interference or interruption will be only temporary.
"As a matter of fact, we do not believe that economic rehabilitation depends entirely upon developments in the
United States. The Old World with a realism seasoned by
centuries of vicissitudes is beginning to take matters into its
own hands. Two striking developments of the week, in our
opinion, have related significance. Private cables from India
announced the lifting of the boycott on British cotton goods.
While this item received no special prominence in the press,
we have been informed that the announcement came from
an official source. This step taken in conjunction with the
Indian preferential tariff on British goods assures a great
market for Lancashire.




2733

"Synchronizing with this news item came a sudden decline
in sterling. Hitherto a break in the pound has been the signal
for uneasiness. Such was not the ease this time. Although
various explanations for the decline in sterling have been
forthcoming, and we admit that our view of the movement is
largely surmise, we think the downward movement in sterling
exchange may easily be part of a plan to place British industry, and particularly the textile division, in a position to
compete aggressively in the export markets of the world."
Mr. Revere expresses the opinion that the cotton market
is on the eve of a major upward move and that the hazard of
a further decline under the weight of the movement imposes
only a negligible risk upon buyers.
Petroleum and Its Products
-Larger Companies Await
Further Developments Before Meeting New Crude
Price Schedules-Explain Stand in Frank State-Petroleum Seen as First Basic Industry to
ments
Emerge from Depression.
Despite the fact that the Standard Oil Company of Indiana
and Standard of New Jersey have not met the increased price
postings for crude oil, an inference that they will do so when
the producers demonstrate that they intend controlling
production so that the supply and demand balance will be
favorable is s3en in the frank statements issued by the
companies.
Humble Oil & Refining Co.,representing the Jersey Standard in Texas, issued the following statement. "The Humble
Oil & Refining Co. reiterates its position in support of conservation to the end that: all waste be prevented; correlative
rights of competing producers be protected; and likewise reiterates its belief in fair prices to producers of crude oil and
consumers of gasoline.
"We met the price advance in April of this year, at which
time we said: 'This company desires higher prices for crude
oil just as much as any producer does, but it is convinced
that higher prices can prevail only if they rest on a firm
economic foundation. Present product prices do not justify
purchasers in paying more for crude. This price advance is
admittedly based on the hope that better product prices and
improved economic conditions generally will follow. Over
the period of five months since the last price advance in
November 1931, this company has been unable to secure
for products from its refineries and from the operation of its
transportation system to its refineries any profit on the crude
bought, transported and refined. At the present time it is
buying more oil than it wants, and it has endeavored persistently during recent weeks to reduce its takings; but it has
been unable to do so without working a hardship on the
producers whom it serves.
"Producers cannot hope to command a higher price for
crude oil as long as the amount they offer for sale is greater
than purchasers are willing to buy. Balancing supply with
demand is imperative if the new price schedule is to be maintained. Responsibility for securing this balance rests squarely
upon those who have initiated and sponsored this price advance, including the producers, trade organizations, newspapers and officials.'
"The conditions stipulated in this April statement as
prerequisite to a sound price advance have not yet been
realized. The demand for crude has never been equal to
the supply in all areas, as is evidenced by the fact that many
properties are still without connections and are begging for
buyers. Product values over the period since the last increase have not warranted the prices paid for crude oil.
The maintenance of those prices has entailed a continuing
substantial loss for all refiners operating on purchased crude.
"The sponsors of the present crude oil price advance and
curtailment program promise that a balance between supply
and consumption demand will be attained; that production
in excess of allowables will be eliminated; and that wholesale
product prices will be realized that will justify, the crude oil
price advance. We earnestly hope and we believe that these
promises can be fulfilled, but we are unable to increase the
existing disparity by paying higher prices under present
conditions. In the light of past experience, deliberate consideration compels us to await the fulfillment of these promises before posting higher prices."
The Standard Oil Co. of Indiana statement follows:
"Officials of Standard Oil Co. of Indiana announced to-day
that their company cannot advance its posted prices for
crude oil despite the recent action of certain other companies.
Conditions do not warrant even the present prices and will
not give necessary support to an increase.

Oct. 22

Financial Chronicle

2734

"Everybody in the industry knows that with consumption
of gasoline falling off enormously, price-cutting is rampant
throughout the oil business. Although producers are making
commendable efforts to control their problems, crude is still
being produced in excess of demand. Some of it is being run
illegally and sold at prices that jeopardize the posted price
structure. Refineries are manufacturing more gasoline
than is needed. Many are dumping at cut prices. Aided
by rising taxes, tax evading is wrecking retail markets
wherever they operate. There is also much retail pricecutting by reputable marketers who are striving to hold
volume of sales regardless of profits.
"The Indiana company is sincerely desirous of seeing producers receive a satisfactory price for crude. But it is convinced that an advancelin the face of present conditions
will simply provide leeway for further abuses and delay
progress toward permanent recovery in the oil industry.
It believes that the sound road toward better prices for both
crude and finished products is by way of first correcting the
fundamental conditions which will control eventually, no
matter how they are temporarily overlooked in eagerness for
better returns."
It is generally thought in local circles that when the new
allowables throughout all the -producing areas, with the
exception of Pennsylvania, are really effective the crude
price structure will become uniform through adoption by
the several large companies now holding off from such action.
The Federal Oil Conservation Board, reporting to President Hoover on Wednesday, Oct. 19, declared that "the
American oil industry gives indications of being the first
basic industry to emerge from the world depression" and
concluded that "certainly the oil industry, one major business with a comparatively intact market, never had a better
opportunity to serve the country and the country never had a
more vital interest in the purchasing power of this industry."
The members of the Board include Dr. Ray Lyman Wilbur,
Secretary of the Interior, Chairman; Patrick J. Hurley,
Secretary of War; Charles Francis Adams, Secretary of the
Navy, and Roy D. Chapin, Secretary of Commerce.
The new prices, which range up to $1.12 a barrel, became
effective last Saturday, Oct. 15.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
Bradford, Pa
$1.72
Corning, Pa
.85
Illinots
.80
Western Kentucky
1.05
Mid-Continent, Okla., 40 and above 1.12
Hutchinson, Tex., 40 and over__ .57
Spindletop, Tex., 40 and over
.90
Winkler, Tex
.75
Smackover, Ark., 24 and over
.75

Eldorado, Ark., 40
$0.75
.95
Rusk. Tex., 40 and over
Salt Creek, Wyo., 40 and over __ - .94
.80
Darst Creek
Midland Dist., Mich
.85
Sunburst, Mont
1.05
Santa Fe Springs, Calif.,40 and over 1.00
Huntington, Calif., 26
1.00
Petrol's, Canada
1.90

REFINED PRODUCTS- GASOLINE ADVANCED THROUGHOUT EASTERN TERRITORY
-FIRMNESS IN ALL LINES
ATTRIBUTED TO HIGHER PRICES IN CRUDE MARKET.

Gasoline prices throughout the entire eastern territory
were increased lc. a gallon in tank car, tank wagon and
service station listings yesterday. The Standard of New
Jersey advance was met throughout its territory by all
major companies, while Standard of New York led in its
territory, followed by major marketers.
This advance partially restores gasoline to the levels
prevailing before the reductions in September, when prices
were cut 2 and 3c. in the east. The new strength in the
bulk gasoline market is a direct reflection of the increases
in crude prices which became effective last Saturday.
It is believed that several of the "competitive" conditions
which existed in the eastern markets during the past several
months have been eliminated. One was the invasion of
gasoline made from "bootleg" east Texas crude and offered
here through independents at prices below the general
structure. Another instance was the importation of naptha,
which, mixed with casinghead gasoline, produced a high
octane motor fuel.
A sharper advance was announced in Oklahoma on
Monday, Oct. 17, when Barnsdall posted a 3c. advance in
service station prices. Standard of Ohio also announced
an advance of Mc. a gallon on all grades throughout its
territory, effective on Oct. 16.
The firmer crude market has also strengthened other
refined products. Grade C bunker fuel oil has been active
this week, and the posted price of 75c. a barrel, at refinery
in bulk, held steady. Diesel was also in good call at $1.65
a barrel, same basis.
The kerosene markets have firmed up considerably and
sellers are holding more firmly to the posted price of 53'c.
for 41-43 water white in bulk, at refinery. It has been




1932

possible to purchase this at 34c. or more under the posted
prices. Price changes follow:
Oct. 16.
-Standard of Ohio advances all grades of gasoline He. a gallon
throughout territory.
Oct. 17.-Barnsdall Corp. advances all grades of gasoline 3c. a gallon
at Tulsa, Okla.
Oct. 20.
-Sinclair and Standard of New Jersey advance tank car gasoline prices lc. a gallon at all Atlantic terminals and at Tampa. F1%., and
lc. advance in tank wagon and service station prices in New Jersey, Mary
land. Virginia. West Virginia, North Cirolina, South Carolina and District
of eolumoia. All .najor companies met advances.
Oct. 21.-Standard of New York advanced gasoline prices, for all methods
of delivery, lc. a gallon throughout New York and New England. Advance
is met by major marketers.
Gasoline, Service Station, Tax Included.
New York
3.15 I Cleveland
$ 128
$ 18 New Orleans
Atlanta
19 I Denver
14
20 Philadelphia
Baltimore
.194 , Detroit
125 San Francisco:
Boston
129
175 I Houston
Third grade
17
Buffalo
175 Jacksonville
195
Above 65 octane.._ _ 180
Chicago
15 Kansas City
.214
Premium
155
Cincinnati
.18 Minneapolis
.14
147 St. Louis
Kerosene, 41, Water White, Tank Car Lots, F.O.B. Refinery.
43
N.Y.(Bayonne)___ .05S1 I Chicago
New Orleans, ex_ __80.0356
$ 02%-.03
North Texas
03
Los Ang., ex_ .0451-.06
.044-.0335
Tulsa
Fuel 011, F.O.B. Refinery or Terminal.
N. Y.(Bayonne)California 27 plus D
3.6$
Gulf Coast C
Bunker C
3.75
3.75-1.00 Chicago 18-22 D.42.50
Diesel 28-30 D
1.65 New Orleans C
.70
.60 Philadelphia C
Gas Oil. F.O.B. Refinery or Terminal.
N. Y.(Bayonne)ChicagoI Tulsa
5 0136
28 plus G 0_3.0371-.04
32-36 G 0
$ 016i I
Gasoline, U. S. Motor (Above 65 Octane), Tank Car Lots, F.O.B. Refinery.
N. Y.(Bayonne)N. Y.(Bayonne)Chicago
$ 0571-.0571
Sinclair
Standard Oil, N. J.$ 0731 New Orleans, ex. .05-.05X
Pan-Am.Pct. Co_ .06
Motor, 60 or04-.04X
Arkansas
Lane
Shell Eastern Pet_ .0771 California
1.0J1
05-07
Motor, 65 ocNew YorkLos Angeles, ex_ .0471- 07
Lane
07
Colonial-Beacon_ .06
Gulf ports
05-.0571
Motor,standard .01
Crew Levick
.06
Tulsa
06-.0561
z Texas
Stand. Oh, N. Y_ .07
06
Pennsylvania_ __
.0571
Tide Water Oil Co .0871
Gulf
.06
Richfield Oil(Cal.) .06
Continental
07
Warner-Quin. Co_ .07
Republic Oil
* 06
*Below 65 octane. z"Fire Chief" .0636.
**Standard Oil of N. Y. now quoting on basis of de ivered price not more than
5c. per gal, under company's posted service station pr cc at point and date of delivery but in no event less than 8550. a gal., f.o.b. New York Harbor, exclusive
of taxes.

Crude Oil Production Fell Off During Week Ended
-Gasoline Stocks at Lowest Point
Oct. 15 1932
This Year.
The daily average crude oil production in the United
States was reduced 42,350 barrels a day last week, the daily
average for the period ended Oct. 15 being 2,130,650 barrels,
against a daily average of 2,173,000 barrels in the preceding
week; a daily average of 2,437,000 barrels in the corresponding period last year, and of 2,163,550 barrels for the four
weeks ended Oct. 15 1932, according to estimates bi the
American Petroleum Institute.
Gasoline inventories continued to decline, falling below
50,000,000 barrels for the first time in approximately a
year. Stocks of 49,779,000 barrels in all districts at the
end of the week of Oct. 15 were 831,000 barrels less than
the inventories of 50,610,000 barrels on Oct. 8.
Reports received during the week ended Oct. 15 from refining companies controlling 93.6% of the 3,856,300 barrel
estimated daily potential refining capacity of the .United
States, indicate that 2,138,000 barrels of crude oil daily
were run to the stills operated by those companies and
that they had in storage at refineries at the end of the
week, 31,305,000 barrels of gasoline and 135,863,000 barrels
of gas and fuel oil. Gasoline at bulk terminals amounted
to 11,771,000 barrels and 1,723,000 barrels were in waterborne transit in or between districts. Cracked gasoline
production by companies owning 95.4% of the potential
charging capacity of all cracking units averaged 431,000
barrels daily during the week.
The complete report for the week ended Oct. 15 1932
follows in detail:
DAILY AVERAGE PRODUCTION OF CRUDE OIL.
(Figures in Barrels of 42 Gallons.
Week
Ended
Oct. 15.
1932.
Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
East Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texas
Coastal Louisiana
Eastern (not including Michigan)
Michigan
Wyoming
Montana
Colorado
New Mexico
California
Total

Week
Ended
Oct. 8.
1932.

372,800
101,900
48,550
47.950
24,550
165,600
52,350
368,000
57,350
29,800
33,900
122,650
33,250
100,550
.22,750
33,150
7,350
2,700
31,300
474,200

380,850
99,450
41,700
49,350
24,350
170,000
54,250
304,150
53,600
30,400
34,050
138,650
33,780
99,900
23,800
32,600
7,200
2,800
32,150
470,100

Averace
4 Weeks
Ended
Oct. 15.
1932.
382,650
100,600
45,250
48,800
24,250
168,950
53,150
378,200
55,000
30,000
34,100
136,750
33.750
98,600
23,700
32,150
7,350
2,750
31.750
475.800

Week
Ended
Oct. 17.
1931.
506,600
101,900
64,850
56,900
27,000
202,400
56,200
422,150
57,150
29,500
37,950
124,050
30,350
107,850
12,450
37.450
7,450
4,760
43,650
507,400

2.130.650 2.173.000 2.103.550 2.437.000

Finarcial Chronicle

Volume 135

CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS AND GAS AND FUEL
OIL STOCKS, WEEK ENDED OCT. 15 1932.
(Figures in barrels of 42 gallons each.)

District.

Daffy Refining Capacity • Crude Runs
of Plants.
to Stills.
Reporting.
Potential
Rate.
644,700
144,700
434,900
459,300
315,300
555,000
146,000
89,300
152.000
915.100

Total.

%

638,700
137,500
424,000
408,800
227,200
545,000
142,000
84,500
139,000
868,100

99.1 484.000
95.0
92,000
97.5 303,000
88.4 218,000
92,000
71.2
98.2 388,000
97.3
83,000
94.6
43,000
91.4
31,000
94.5 424,000

copar.tomz.Rmo
eic...44Oooice

East Coast
Appalachian_ _.Ind., Ill., Ky_
Okla.. Kan., Mo.
Inland Texas
Texas Gulf
LOU/818Ra Gulf._
No. La.
-ArkRocky Mountain
California

%
Daily OyerAverage. ated.

a Motor
Fuel
Stocks.

Car and
Fuel Oil
Stocks.

13,332,000 9,314,000
1,624,000
823.000
6,215,000 4,160,000
4,528,000 3,054,000
1,388,000 2,042,000
4.870,000 10,461,000
1,477,000 4,052,000
173,000
524,000
1,218,000
474,000
14,954,000 100,959,000

Totals week
Oct. 15 1932-- 3,856,3003,609.800 93.6 2.138,000 59.2 c49779000 135,863,000
Oct. 8 1932._ 3.856.300 3.609.800 93.6 2.005.000 55.5 50.810.000 135.742.000
a Below is set out an estimate of total motor fuel stocks on U.S. Bureau of Mines
basis for week of Oct. 15 1932, compared w th certain October 1931 Bureau figures:
A. P. I. estimate B. of M. basis week Oct. 15 1932_b
50,900,000 barrels
U. S. B. of M. motor fuel stocks Oct 1 193
50,122,000 barrels
U.S. B. of M. motor fuel stocks Oct. 31 1931
50,439,000 barrels
b Estimated to permit comparison with A. P. I. Economics report, which is of
Bureau of Mines basis.
c Includes 31,305,000 barrels at refineries: 11,771,000 at bulk terminals: 1,723,000
barrels in transit, and 4,980,000 barrels of other motor fuel stocks.
Sr

Venezuelan Crude Oil Production and Shipments Again
Declined During September.
According to O'Shaughnessy's Oil Bulletin, the estimated
output of crude oil in Venezuela amounted in September
1932 to 8,802,687 barrels (of 42 gallons each) as compared
with 9,4,12,329 barrels during the corresponding month last
year and 9,429,632 barrels during August 1932. Shipments
declined from 8,133,600 barrels in the latter month to
8,087,300 barrels during September this year and compares
with 9,420,000 barrels in September 1931.
During the nine months ended Sept. 30 1932 production
of crude oil in Venezuela totaled 88,072,501 barrels, compared with 87,233,694 barrels in the same period last year,
while shipments amounted to 84,765,000 barrels as against
84,956,444 barrels during the first nine months of 1931. A
comparative table follows:

2735

The sponsors of the present crude oil price advance and curtailment program promise that a balance between supply and consumption demand
will be attained; that production in excess of allowables will be eliminated:
and that wholesale product prices will be realized that will justify the crude
oil price advance. In the light of past experience, deliberate consideration
compels us to await the fulfillment of these promises before posting higher
prices.

Regarding the posting of the crude oil price advance by
the Sun Oil Co. and other companies and the refusal of the
Standard Oil Co. of Indiana to meet the advance, we published in our issue of Oct. 15, page 2577, an item covering
the same.
Sr

Gasoline Prices Advanced by Standard Oil Co. of New
Jersey and Sinclair Refining Co.
The Sinclair Refining Co., a subsidiary of the Consolidated Oil Corp. and the Standard Oil Co. of New Jersey,
announced on Oct. 20, an increase in the price of gasoline,
according to Associated Press advices, which also said:
The Sinclair company added lc. a gallon to the price of cargo gasoline
at Gulf ports, bringing the price to 5iic. a gallon, effective Oct. 20. The
Standard concern followed with a notice that it would raise the price of
gasoline lc. a gallon throughout its territory, excepting Delaware
and
Pennsylvania, beginning Oct. 21. It was understood the two States were
excepted because they did not benefit by the initial fuel cut.
Beginning Oct. 21, the Sinclair company stated, the tank car price
of gasoline would be advanced lc. a gallon at all Atlantic coast terminals
and Tampa, Fla., making the price for regular grades 7c. a gallon and 634c.
for United States motor grades. At the same time a corresponding advance will be made at all points in New Jersey, Maryland, West Virginia.
North Carolina, South Carolina and the District of Columbia.
It is understood in oil trade circles no general increase is contemplated
at this time and that a further improvement in the products market would
be necessary before higher crude rates would be considered.

Tulsa, Okla., Gasoline Price Advanced Three Cents
a Gallon.
The Barnsdall Corporation advanced the retail prices of
its three grades of gasoline three cents a gallon in the Tulsa,
Okla., district on Oct. 17. E. B. Reeser, President of the
company, in announcing the change said that "this is an
indication of the changed attitude and improved outlook
for the oil industry as a whole."
Sr

Month.

Production.

Shiprnints.

1932.
1931.
1930.
1932.
1931.
9,589,088 10,384,451 11,518,273 9,087.000 10,787,289
8,994,242 9,486,327 10,898,535 8,546,100 9,515,725
9,998,250 10,282,727 11,920.282 9,949,300 10.362,346
10,480,750 9,252,503 10,724,045 11,004,200 8,585.690
10,648,480 9,514,909 10,918.419 11,260,000 9,048,694
10,578,631 0.181,369 11,361,233 10,313,300 8,561,200
9,550,781 9.913,192 11,624,070 8,394,200 9.401,400
9,429,832 9,795,887 11,378.274 8,123,600 9,274,100
8,802,687 9,412,329 11,310,770 8,087,300 9,420,000
Nine months
88,072,501 87,233,894 101,653,901 84,765,000 84,958,444
October
9,440,165 11,784,591
9,639.300
November
9,535,088 10,910,501
8.984,320
December
9,921,889 10,492,030
9,100.800
•
Total for year__
116.130.816 134.841.023
112.680.864

January
February
March
April
May
June
July
August
September

Two Subsidiaries of Standard Oil Co. of New Jersey
Oppose Crude Oil Price Advance.
The Carter Oil Co., Mid-Continent subsidiary of the Standare Oil Co. of New Jersey, has joined the Standard Oil Co.
of Indiana in opposition to an advance in crude oil prices,
it is learned from advices from Tulsa, Okla., to the "Wall
Street Journal" of Oct. 18. According to the advices, a
statement by the company said:
As our customers advise us that they cannot afford on current product
prices to pay increased prices for crude oil, we will until further notice continue our present price schedule.

Advices from Houston, Texas, to the same paper quoted
said that the Humble Oil & Refining Co., subsidiary of the
Standard Oil Co. of New Jersey, has posted a price of 98
cents a barrel for East Texas crude oil, retroactive to Oct. 1.
The advices also noted:
Humble's announcement followed posting on Oct. 15 by many major
and large independent purchasers, which set $1.10 as the price for East
Texas crude, an advance of 12 cents over their previous quotation.
Humble is one of the largest purchasers of East Texas oil. Heretofore
it has not set a formal price for its takings, but followed the price set by
other major companies.

In connection with the posting of 98 cents a barrel for
East Texas crude by the Humble Oil & Refining Co., W. S.
Farish, President of the company, said in part:
PrOSOR/ product prices do not justify purchasers in paying more for crude.
This price advance Is admittedly based on the hope that better product
prices and improved economic conditions generally will follow. Over the
period of five months since the last price advance in November, 1931, this
company has been unable to secure for products from its refineries and from
the operation of its transportation system to the refineries and profit on
the crude bought, transported and refined. At the present time It is buying more oil than it wants and it has endeavored persistently during recent
weeks to reduce its takings, but it has been unable to do so without working
a hardship on the producers whom it serves.
Producers cannot hope to command a higher price for crude oll as long
as the amount they offer for sale is greater than purchasers aro willing to
buy.




Gasoline Prices Increased by Standard Oil Co. of Ohio.
Effective Oct. 16 the Standard Oil Co. of Ohio increased
the price of all grades of gasoline throughout its territory
one-half cent a gallon. This change brings the prices to
113', 123' and 153' cents a gallon, plus 5 cents State and
Federal taxes. Officials of the company said that the increase follows the recent advances made in the general wholesale gasoline market, resulting from efforts now being made
in both Texas and Oklahoma to reduce the output of crude
oil.
Montana Attorney-General Rules State May Impose
Gasoline Tax on Such Fuel Sold to Federal Land
Bank.
Helena, Mont., advices Oct. 5 are taken from the "United
States Daily":
A State may impose a gasoline tax upon the sale of fuel to a
Federal Land
bank

although such fuel is used in automobiles owned by the bank
and
operated in connection with the bank's business, the Montana
AttorneyGeneral's office has advised the State Board of Equalization.
The tax affects the operation of the Government only
remotely, and can
not be considered as directly interfering with it, the opinion
said.

Cancellation Upheld of Naval Oil Leases
-United States
Supreme Court Denies Petition for Review of
Findings.
The Supreme Court of the United States on Oct. 10 denied
the petition of the Pan American Petroleum Co. for a review
of a decision by the Circuit Court of Appeals for the Ninth
Circuit (55 F.(2d) 753). which upheld the right of the Federal Government to cancel three leases in Naval Petroleum
Reserve No. 1, in California, held by petitioner. The
"United States Daily" of Oct. 11, reporting this, added:

The present writ of certiorari, No. 130, Pan
American Petroleum Co.
v. United States. Is the outgrowth of litigation which
followed the Investigation of the Teapot Dome and naval oil reserve
leases. The briefs filed in
the case that leases were executed or authorized
by the then Secretary of
Interior Fall, Thereafter Mr. Fall and the Secretary
of Navy executed
to petitioner a blanket lease of the then unleased land
in Reserve No. 1.
This was followed by a Senate investigation of
all leases in the petroleum
reserves and resluted In passage of a Senate resolution
ordering institution
of proceedings to set aside, among other
contracts, the blanket lease to
petitioner.

A suit to set aside the blanket lease because
of fraudulent conspiracy
between Mr. Fall and Edward L. Doheny. a former
stockholders In petitioner'. corporation, was successful and thereafter
petitioner withdrew its
defense that the transaction for the three leases
in the present suit was not
fraudulent.
Petitioner argued In its appeal to the Supreme
Court that the contracts
and leases and all that was done under them pursuant
to the conspiracy of
Mr. Fall and Mr. Dohenv were so interwoven as to
constitute a single
fraudulent transaction. It argued further that actions to recover
different

2736

tracts of land or parcels of th? same tract. where recovery is based upon the
same title or the same fraud, constitute but one action, and therefore the
present suit Is subject to the defense of split cause for action. The present
suit In equity. Petitioner contended, W0.1 based on the same evidence as was
used in the prior suit to cancel the olanket lease.

T. S. Hose Report on Petroleum Institute Finds Crisis
Past in Oil Industry, Leaving Way Open for Further Price Advances.
Crisis in the oil industry has been passed and indications
point to a gradual upturn in the price of all grades of crude
oil, according to the T. S. Hose weekly report on the petroleum situation. Mr. Hose says:
When the Texas Railroad Commission, In the face of seasonal decline
allowable of the
for gasoline and crude oil, a few weeks ago increased the
were
East Texas field from 43 to 50 barrels per day the major operators
measure to overcome.
confronted with a situation that called for heroic
They did not fold their hands and say it Is just too bad, what can we do but
the oil they
Immediately served notice that they would only pay for 50% of
storage
run from the various leases in this field, holding the other 50% in
and as withdrawn from
for the account of the operator, to be paid for when
storage
result that
This put an entirely different light on the picture, with the
State authorities.
several conferences were called by all concerned with the
and the oil industry
The result of these conferences are now being published
obstacles in its fight
has again met a crises squarely and again overcome
back to prosperity.
effective as
The announcement of the Texas Railroad Conunisslon that,
barrels per
of Oct. 15. the East Texas field would be held down to 335,000
announcement of the
day. or 40 barrels per well per day. was met with the
would increase
Sun 011 Co. that effective that day and upon that basis it
advance of 12 cents
the price of crude from 98 cents per barrel to $1.10, an
the other fields
Per barrel. The Railroad Commission also announced that
announcement
of the State of Texas would be slightly reduced and the Sun's
for crude from the Gulf Coast areas
stated that It would increase its price
10 cents per barrel.
Co.followed
The Consolidation Oil Co. and the Sinclair-Prairie Pipe Line
area, a
with a general 10 cents per barrel advance for the Mid-Continent
pipe line companies for the
forerunner of a general advance by all the major
other companies
Mid-Continent area which has long been expected. The
near future.
will in all prooability announce their increases in price in the
companies
Gratifying feature of the entire matter is the fact that the major
bring the price of oil up to the
have been able to continue in their efforts to
economic and otherwise,
cost of production and refusing to let conditions,
undo the good work they have been doing since July 1931.
squarely in
Executives at the head of the oil industry faced the situation
Imes without hue or cry, and
the depressing moments of 1931. took their
side of the
launched a progressive program to put themselves on the profit
ledger again.
The recent developments have removed all possibilities of the price
to
structure of the oil industry crumbling and will enable the operators
spring demand
continue at a profit during the winter months, and when the
that it will aid
for crude commences the industry will be in such condition
mate:ially in carrying other industrues back to prosperity with it.

Week of Slow Business in Non-Ferrous Metals Brings
Out Few Price Changes.
The sales volume for the week in major non-ferrous metals
was again disappointing, says "Metal and Mineral Markets"
in its issue of Oct. 20 1932, even though business, taken
as a whole, showed a little improvement over that of the
preceding seven-day period. Actual consumption of metals
has increased from the low point registered during the summer
months, according to those in close touch with the situation,
been
but the gains, from present indications, have not
speed up the movement of raw maimpressive enough to
terials in such a manner as to remove all doubt in regard to
of
the future trend of values. During the last week prices
copper, leo d nd zinc showed little change. Tin became
unsettled on the weakness in sterling exchange. With
speculative enthusiasm lacking, fluctuations in silver were
held within narrow limits. The publication adds:
Copper Quiet.
comparatively quiet
Both the domestic and foreign copper markets were
transacted on
throughout the last week. A small amount of business was
abroad that might arouse
both sides of the Atlantic, but any development
in this country
activity here was lacking, and,likewise, no action transpired
to encourage heavier trading in foreign circles.
Conn.,
Domestic producers maintained the price of the metal at 6.25c.,
at 6.10c., with delivery
One dealer Is reported to have offered 3,000,000 lb.
business
tonnage of
specified as the second quarter of next year. The total
-hands during the week, although of modest volume was,
booked by first
for the preceding seven-day period. Brass
nevertheless, about double that
began in the
interests state that the improvement in specifications that
then.
last week of August has continued unabated since
have been responsible
In the foreign market, the forces still exist that
action on the English tariff
for the unsettled conditions there, but with
in the near
proposal and a meeting of the leading international producers
is probable.
offing some improvement in the current chaotic situation
with the proposal
Owing to the swift action taken at Ottawa in connection
general opinion appears to be that the
for an English tariff on copper,
affirmative consideration at the present
tariff measure will receive prompt
session of Parliament.
5,091 long tons in
Stocks of copper in British warehouses increased
imposed on other
September. In anticipation of tariff of 2d. a pound being
in Ottawa, some foreign
as recommended
than British Empire copper,
and storing it. So far
producers have been shipping metal to England
large, the increase of warehouse stocks durint,
the amount has not been
only 7.530 tons. British consumption has
the last two months being
month so far thLs year.
averaged about 10,000 tons a
between the c.i.f. price, usual EuroBeginning with Oct. 13 the spread
f.o.b. refinery export quotation of "Metal and
pean destinations, and the
points instead of 35 Points.
Mineral Markets" will be 30




Oct. 22 1932

Financial Chronicle

Interest in Lead Improves.
Demand for lead showed moderate improvement over that for the
preceding week, and the undertone at the close appeared to be fairly steady.
The sales volume, though below the average, seemed to be sufficient to
remove the selling pressure. Corroders were the principal buyers, and
November metal figured largely in the sales for the period. October lead
met with a limited call, and producers feel that consumers are fairly well
covered so far as the current month is concerned.
American Smelting & Refining maintained its contract basis at 3c.,
New York, throughout the week. The leading factor in the Middle West
restricted his offerings on the 3c. basis on Eastern business, and on Tuesday
and yesterday was able to obtain a slight premium on part of the business
booked. The St. Louis market on three days in the last week showed some
variation in prices, business on more than one occasion passing as high as
2.95c.
September statistics were favorable, showing another reduction in stocks
of refined metal. Shipments to consumers were lower than in August,
yet a little above the average for the first nine months of the year. United
States refined lead shipments during the first nine months of the year
totaled 231,581 tons, against 429,949 tons in the same period last year,
and 637,384 tons in the January-September period in 1930.

Price of Steel Rails Cut from $43 to $40 a Ton by U. S.
Steel and Other Companies—Action Announced
Following Conference with Railroad Executives.
The United States Steel Corporation, through its subsidiary, the Carnegie Steel Co. announced on Oct. 20 the
first reduction in the price of steel rails since October, 1922,
cutting the quotation $3 a ton,from $43 to $40. The action
was immediately followed by steel companies in the Chicago
district, and a statement by E. G. Grace, President of the
Bethlehem Steel Corporation, said that his company will do
likewise. The New York "Journal of Commerce" of Oct. 21
in reporting this also said:
Rat's were the only major steel product which had not come down in Prim
over the past two years. The reduction followed by only 24 hours a conference between Myron C. Taylor, Chairmar, of the Board of the United
States Steel Corporation, and a number of Presidents of leading railroad
companies.
Wine no official statement was issued, it was widely reported that the
railroads promised rail business in considerable volume if the price were
reduced. According to the reports, the railroad men stated that they would
do all in their power to stretch the useful life of the present trackage if the
price of new rails were not adjusted.
Dividend Outlook.
Financial observers were yesterday of the opinion that the orders for rails
might have a direct bearing on the dividend action of the steel corporation
next Tuesday. While Mr. Taylor issued a definitely worded warning in
July that future preferred dividends would depend on earnings and business
conditions, it was felt in some quarters that this eleventh hour improvement
might result in another regular payment of 81.75 on the preferred stock.
The earnings derived from any rail business will not, of course, be reflected
until the statement for the final three months of this year is released. It
is probable that the business will be spread in order to keep the mills of the
steel company busy for several months and that not all of the revenues will
come in this year.
Rail business has been typical of the activity of the steel Industry this year.
The smallness of the orders has, however, been partly the result of the financial difficulties of the railroads, most of which find themselves with heavy
deficits caused by top-heavy financial structures. Rail buying at the present
time is made possible through the use of the facilities of the Reconstruction
Finance Corporation. Rail orders this year are estimated in trade quarters
at less than 150,000 tons, or only about 15% of the business of 1931, which,
in turn, was below the business of average years.
Price Record.
Prices for rails fluctuated more before 1922 than since. The top was $57
a ton for open hearth steel in 1918, a differential of $2 over Bessemer steel.
Now a flat price is charged for either type. Prices trended lower after that to
$40 a ton in 1921. when they were set at M.the price until yesterday.
There are only eight important makers of steel rails in the country. It Is
a specialized product and one which requires heavy equipment. The leaders
among rail makers are the United States Steel Corp., Bethlehem Steel Corp.,
Inland Steel Co. National Steel Corp., with a new plant, and the Colorado Fuel & Iron Co.

The following from Chicago Oct. 20 is from the New York
"Tim'':
s
mmpanies to-day announced a price of $40 a ton for standard steel

rails and thereby took a step that may mean an immediate substantial increase In the rate of steel operations and the employment of many thousands
of men.
The new price represents a reduction of $3 a ton and is the first change
in the price of rails since 1922. During this decade of unaltered rail prices
the prices of almost all other steel products have declined substantially.
For some time it has been understood that steel companies would lower
their prices for rails if they were assured that by so doing they would obtain
large orders. To-day's action, therefore, was interpreted in trade circles as
meaning that substantial orders were on the way.
Speeding up of activity in the steel industry will mean a great deal to
Chicago, inasmuch as this city is the largest single rail producing centre
in the United States. The Illinois Steel Co., United States Steel subsidiary,
and the Inland Steel Co. are both large producers.
Illinois Steel has a mill which produces nothing but rails. This plant has
been practically idle all Summer. Inland Steel Co. has produced very few
rails for months. Philip Block, President of the Inland Steel Co., to night
said:
"Inland Steel Co.. of course, will put into effect the $40 price announced
by Eastern steel companies. If. as we hope, the lower price will result in a
good pickup in orders for rails employment will be considerably improved.
Pig iron will have to be produced, ovens started, and steel made before the
rails themselves are actually rolled."
•

Other American steel companies have followed the action
of the United States Steel Corporation in reducing the price
of rails. From Birmingham, Ala., Oct. 20, Associated Press
advices said:

Volume 135

Financial Chronicle

The Tennessee Coal, Iron and Railroad Co., subsidiary of the United
States Steel, to-day announced a reduction from $43 to $40 a ton on standard
steel rails.

Pittsburgh Steel Scrap Cut to $9.60 Ton.
From the New York "Evening Post" of last night (Oct. 21)
we take the following:
Although there has been a widening in the range of heavy melting steel
scrap at Pittsburgh, resulting in a mark-down of the most representative
level to $9.50 a ton from $9.75. the country's principal scrap markets as a
whole have held fair and steady.
At Pittsburgh the l'ennsylvania Railroad's list contained 1.000 tons of
heavy melting steel and it is reported there that more than $10 a ton was
paid for delivery to an Ohio River steel maker.
The offsetting factor was that dealers were able to cover commitments
at $9 to $9.25 without much difficulty. The United States Steel Corp.
subsidiary did not make its expected purchase during the week, which, of
course, had a softening effect on the market.
At Chicago several steel mills have been taking shipments at a much
better rate, in line with increased steel production, and the situation seems
improved. The official price is unchanged at $6, dealers offering $5.75 to
$6 to cover commitments.
The Philadelphia market is quiet, as are the Cincinnati and Buffalo
markets, though some easiness is reported at Boston.

British Steel Duty Extended Two Years.
The following (United Press) from London Oct. 21 is from
the New York "Sun" of last night:
The existing duty of 33 1-3% on iron and steel was ordered extended
for two years from Oct. 25 by the Treasury to-day.
The weekly "Economist", in a comprehensive survey,computed that after
the Ottawa trade agreements are made effective, 79.5% of United States
exports to Britain will be subject to duty, compared to only 29.5% In 1930.

Steel Output Slightly Higher-Now Estimated at 193/2%
of Capacity-Price of Steel Scrap Weakens.
Still lacking conspicuous support from the major consuming industries-the railroads, building construction and the
automobile manufacturers-the steel industry is holding
the minor gains of recent weeks, but is now inclined to the
belief that it may mark time until the elections are out of
the way, announces the "Iron Age" of Oct. 20.
Ingot production for the entire country, according to the
"Age," is estimated at 19
for the current week, against
19% last week. The Wheeling district, at about 35%, is
the most active, but small increases have occurred at Chicago
and Pittsburgh, while other sections are holding their own,
excepting Birmingham, where a reduction from 33% to 25%
has occurred.
In some departments of the industry there are gains, and
in others losses. Tin plate production, now averaging 45%
is outstanding. Bar mills are also attaining better schedules,
but operations of sheet and wire mills have declined, adds
the "Age," further stating:
The automobile industry, though still proceeding slowly in work on
new models, has released some orders for Initial assemblies, small lots having
been bought for the Chevrolet. Plymouth, Pontiac and Willys-Overland
programs. Selling prices of new offerings, particularly in the light car
field, will be lower, a move which may bring added pressure from the
automobile makers against prices for materials.
Delays in making commitments for steel are noticeable among the railroads, even those that have received loans from the Reconstruction Finance
Corporation. The Pennsylvania has ordered a small amount of steel to
begin work on the 1.285 cars It will build in Its own shops, and the Reading
has brought its steel orders up to a total of 2.000 tons for a repair prokram.
The Norfolk & Western has placed 4.500 tons of rails and 2,000 tons of track
accessories. Other railroad orders are of minor importance. The Reconstruction Finance Corporation has granted a loan of $3,000.000 to the
Baltimore & Ohio. which is expected to buy steel soon for the repair of
2.500 freight cars and 165 locomotives and the building of 820 gondola cars,
but part of the material for the new cars was assembled some time ago.
Lettings of steel for building construction are not noticeably increasing
in volume this month, but inquiries are heavier, forecasting improvement
later on. Now bids have been taken on part of the steel required for the
Golden Gate bridge at San Francisco. The main superstructure, calling
for 75.000 tons, was awarded to the McClIntic-Marshall Corp a year ago,
but in addition to this the bridge will take 24.890 tons of steel cables,
10.700 tons of structural shapes for approach spans and miscellaneous work
and 6,000 tone of reinforcing bars, a total of 116.500 tons. R. F. C. loans
to a number of municipalities have resulted in Inquiries for cast iron pipe.
In general, however, the iron and steel industry cannot look for much
-financed projects, excepting railroad work, for several
aid from Government
months. The bulk of current business is in miscellaneous small lots from
diversified Industries,
widely
Adoption oI preferential tariffs by Canada will naturally offer an opportunity for largely increased sales of British steel in the Dominion and
consequently place American mills at a disadvantage, but the ability of
Canadian consumers to obtain prompt deliveries from this side and the fact
that Canadian manufacturing and construction practices coincide so closely
with our own are counted upon to mitigate the lasses. Last year's exports of
iron and steel to Canada from the United States totaled 420.946 tons,
Including 68,210 tons of scrap, and were 42.4% of the total American iron
and steel exports. Structural shapes constituted the largest single item
in Canadian purchases of our steel last year, having totaled 78.381 tons,
Scrap markets have more definitely weakened, a decline In heavy melting
steel at Pittsburgh having brought down the "Iron Age" composite price
$7.58. thus erasing all of the gain that had been made
for this grade to
September,
since the first week of
Prices of pig Iron and finished steel remain fairly steady, although makers
not fully established the advances that became effective at
of sheets have
the month, particularly on No. 24 hot-rolled annealed
the beginning of
some mills are still selling at last month's quotation of 2.10c.
sheets, which
a lb., Pittsburgh. The "Iron Age" composite prices of pig iron and finished
steel are unchanged.




2737

THE "IRON AGE" COMPOSITE PRICES.
Finished Steel.
Oct. 18 1932, 1.977c. a Lb.
Based on steel bars, beams, tank plates,
One week ago
1.977c.
wire, rails, black pipe and sheets.
One month ago
1.965c. Tliee products make 85% of the
One year ago
2.014c. United States output.
High.
Low.
193
,
1.977c. Oct. 4
1.926c. Feb. 2
1931
2.037e. Jan, 13
1.945c. Dec. 29
1930
2.273c. Jan. 7
2.014c. Dec. 9
1929
2.317c, Apr. 2
2.283c. Oct. 29
1928
2.286c. Dec. 11
2.2170. July 17
2 402e, Jan. 4
1927
2.212c. Nov. 1
Pig Iron.
Oct. 18 1932, $13.64 a Gross Ton.
Based on average of basic iron at Valley
One week ago
$13.64 furnace foundry irons at Chicago
One month ago
13.64
Philadelphia, Buffalo, Valley and BirOne year ago
15.17
mingham.
High.
Low.
1932
114.81 Jan. 5
$13.64 Aug. 16
1931
15.00 Jan. 6
15.79 Dec. 15
1930
18.21 Jan. 7
15.90 Dec. 16
1929
18.71 May 14
18.21 Dec. 17
1928
18.59 Nov.27
17.04 July 24
19.71 Jan. 4
1927
17.54 Nov. 1
Steel Scrap.
Oct. 18 1932, 57.58 a Gross Ton.
Based on No. 1 heavy melting steel
quotations at Pittsburgh, Philadelphia
One week ago
$7.67
One month ago
7.7
, and Chicago.
8.75
One year ago
Low.
High.
16.42 July 5
1932
58.50 Jan. 12
7.62 Dec. 29
1931
11.33 Jan. 6
11.25 Dec. 9
1930
15.00 Feb. 18
1929
14.08 Dec. 8
17.58 Jan. 29
13.08 July 2
1928
16.50 Dec. 31
13.08 Nov. 22
1927
15.25 Jan. 11

Steel production advanced half a point to 19
in the
week ended Oct. 15, but the rising curve which has put the
steel rate up six points in six weeks appears to be flattening
out, stated "Steel" of Cleveland on Oct. 17, which further
went on to say:
For the substantial market improvement since Sept. 1,small and moderate
size consumers are almost entirely responsible. It is becoming evident,
however, that demand from this class can do little more than maintain
Itself in the immediate future, and any further substantial improvement
must originate with tonnage buyers.
Because automobPe manufacturers have become ultra-conservative, their
assistance the remainder of the year will be subnormal. Building steel
requirements continue bright, and by November may put actual orders on
mill books, but this week bookings again are below the average. The
railroads loom as the best customers for steel.
This week for the first time the Imminence of the National election is
casting a shadow on the market for iron and steel. Even small buyers are
more cautious in their commitments, and in the East some fears are expressed over a passible lowering of a tariff wall which is proving inadequate
to prevent a harmful inflow of foreign steel.
Momentarily the Pennsylvania railroad is expected to allocate about
15.000 tons of plates for the 1.285 freight cars it will build with Reconstruction Finance Corporation assistance. The Reading. which has bought
1.500 tons for cars, has 2.200 tons more to place. Inter-State Commerce
Commission approval of an Reconstruction Finance Corporation loan to the
Baltimore & Ohio will release material for repairing 165 locomotives and
2.500 freight cars and building 820 gondolas-about 20.500 tons.
Over the next 60 days substantial orders for rails-considering the times
may be matured by Federal funds. One Pittsburgh district rail mill expects
to operate for two periods by the end of the year; the Norfolk & Western
award of 5,000 tons of rails, expected this week, may be the signal for resumption.
Leading, in point of steel requirements, all projects financed by the
Reconstruction Finance Corporation is the San Francisco-Oakland bridge.
for which 170.000 tons of structurals and cable and 20.000 tons of reinforcing bars will be purchased. This tonnage, however, probably will not
be rolled this year. Last week's structural awards totaled only 6,412 tons,
lowest In many weeks.
Sheet mills have been slightly more active, partially due to the Oct. 15
deadline on specifications against lower-priced third quarter contracts.
On galvanized sheets the market seems better established at 2.85c.. Pittoburgh, but on other grades concessions have not been entirely eliminated.
Tin plate mills expanded five points. to 45%. at Pittsburgh last week.
Scrap still is In a period of recuperation following its rapid rise, and
railroads have withdrawn some offerings on account of dissatisfaction with
quotations. The market level as a whole, however, is unchanged, and the
scrap composite of "Steel" stands at $6.96, compared with $5.96 in the
last half of July. when the rise began.
Pig iron is being taken in by more foundries, in some measure In anticipation of a heavier melt. Shipments in the Lake region are running coosiderably ahead of September. At Chicago, covering into the first half of
1933 is reported. Pig iron prices are steady except for basic In eastern
Pennsylvania, which is 25 cents easier on the strength of a purchase of
20.000 tons.
Strength displayed by galvanized sheets more than offsets this softness
In pig Iron and puts the iron and steel composite of "Steel" up 3 cents this
week to $29.33. Sheets also have lifted the finished steel composite 10 cents
to $47.70.

Steel ingot production for the week e-ded Monday
(Oct. 17) is placed at nearly 20% of theoretical capacity,
according to the "Wall Street Journal" of Oct. 18, which
further reports:
This compares with 1934% in the preceding week, and better than
1714% two weeks ago. U. S. Steel is credited with a rate of 1934%,
against a little over 19% in the week before and 18% two weeks ago,
Independent steel companies are at 20%. compared with better than
1954% In the previous week and a shade over 17% two weeks ago.
In the corresponding week last year there were decreases of more than
1%. with the Industry at a fraction under 28%, U. S. Steel slightly below
31% and independents around 2634%.

Increases Reported by Philadelphia Federal Reserve
Bank in Employment and Wage Payments in
Pennsylvania Anthracite Collieries from August
to September.
Both employment and wage payments in the anthracite
industry showed an increase of almost 14% from August to

2738

Financial Chronicle

September, according to reports furnished the Anthracite
Bureau of Information by 153 collieries, employing over
76,000 workers, receiving a weekly payroll of nearly $2,000,000, and released by the Federal Reserve Bank of Philadelphia.
The employment index in September was 54.4% and the
payroll index 39.4% of the 1923-1925 average. Comparative indexes for the past three years follow:
1923-1925 A verag

100.

Employment.

Wage Payments.

1930.
January
February
March
April

May

June
July

August
September
October
November
December

1031.

1932.

1930.

1931.

1932.

105.6
107.8
83.3
84.8
92.3
89.5
90.3
81.7
91.9
06.2
94.7
96.5

88.3
87.1
79.9
82.9
78.3
74.2
63.4
65.5
77.8
84.4
81.2

74.2
69.3
71.7
68.1
65.1

91.0
102.4
66.2
63.2
84.8
78.3
71.8
67.3
77.3
101.1
82.2
84.1

75.0
85.5
59.6
63.1
63.9
55.9
45.0
47.2
54.4
76.3
66.6
65.6

51.5
48.0
51.3
60.4
48.6
31.4
29.0
31.6

51.5
43.2
47.8
51.4

77.7

39.4

Production of Bituminous Coal Exceeds 7,000,000 Tons
-Anthracite Output Lower.
According to the United States Bureau of Mines, Department of Commerce, there were produced during the week
ended Oct.8 1932 a total of 7,255,000 net tons of bituminous
coal and 1,188,000 tons of anthracite as compared with
6,790,000 tons of bituminous coal and 1,392,000 tons of
anthracite during the preceding week and 7,848,000 tons of
bituminous coal and 1,290,000 tons of anthracite during the
corresponding period last year.
During the calendar year to Oct. 8 1932 production of
bituminous coal amounted to 219,214,000 net tons as against
291,867,000 tons during the calendar year to Oct. 10 1931,
while anthracite output was reported at 36,180,000 net tons
as compared with 46,127,000 tons during the corresponding
period last year. The Bureau reports as follows:
Production of bituminous coal crossed the seven-million-ton mark during
the week ended Oct. 8 1932. the first time for any week since the end of
March. Total output. Including lignite and coal coked at the minim. is
estimated at 7,255,000 net tons. Compared with the preceding week,
this shows an increase of 465.000 tons, or 6.8%. Production during the
corresponding week in 1931 amounted to 7,848.000 tons.
Anthracite production during the week ended Oct. 8 1932 is estimated at
1.188.000 net tons. Compared with the preceding week, this shows a
decrease of 204,000 tons. or 14.7%. Hard coal production has for several
weeks closely approximated the 1931 figures. The cumulative output during 1932 to date, however. Is less by nearly ten million tons than in 1931.
Total production of beehive coke during the week ended Oct. 8 1932 is
estimated at 11.000 tons. This compares with 12.900 tons during the preced ng week,and 21,900 tons produced in the corresponding week of 1931.
ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS).
Week Ended
-

Oct. 1

Sept. 24

Oct. 3

1932.

Slam

1932.

1031.

Oct. 4
1930.

September
1923
Arerage.a

288.000
406.000
183.000
163.000
211.000
Alabama
121.000
96.000
82.000
95.000
Arkansas and Oklahoma
57,000
204.000
140.000
214.000
113.000
151.000
Colorado
918.000 1,128,000 1,587.000
637.000
584,000
Illinois
341.000
550 000
229.000
257.000
268.000
Indiana
117.000
85.000
75.000
76.000
65.000
Iowa
131.000
168.000
108,000
122.000
110.000
Kansas and Missouri
812.000
713.000
679.000
584.000
687.000
Kentucky-Eastern
248.000
213.000
197.000
209.000
182.000
Western
42.000
40 000
35.000
25.000
22.000
Maryland
27.000
15.000
10.000
Michigan
9.000
6.000
68.000
75.000
37.000
50.000
Montana
34.000
56.000
35.000
25 000
19.000
26.000
New Mexico
49.000
27.000
45.1)00
28.000
30.0110
North Dakota
464.000
861.000
3014.000
286 000
430.000
Ohio
Pennsylvania (bituminous) 1,573.000 1,530.000 1,859.001) 2.922.000 3,585.000
100.000
119.000
62.000
Tennessee
61,000
82.000
26.000
13.000
17.000
Texas
14.01)0
23.000
112.000
103 000
61.000
91.000
Utah
65.000
189.000
245 000
Virginia
206.000
188.000
199.000
58.000
Washington
29.000
27,000
38,000
55.000
West Virginla-South'n b_ 1,533.000 1,443.000 1,708,000 1,793.000 1,474.000
857.000
582.000
Northern_ c
398.000
409.000
437.000
165.000
102.000
130.000
102.000
Wyoming
127.000
4.000
2.000
3.000
2.000
1.000
Other States
Total bituminous coal
Pennsylvania anthracite

6,790.000 6,325.000 7.860.000 9.423.000 11,814.000
1.392.000
714.000
980.000 1,208,000 1,528.000

Total all coal

8.182.000 7.305.000 9.128.000 10.951.600 12.528,000
weekly rate for the en ire month. b Includes operations on the
O.; Virginian; K. & M., and B. C.& G. c Rest of State, including
N. th w.: C. &
a

Average

Panhanale.

Oct. 22

1932

ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Week Ended
Oct. 8
1932.c

Oct. 1
1932.0

Calendar Year to bate

Oct. 10
1931.

1932.
1931.
1929.
Baum. coal a_ 7,255,000 6.790.000 7,848,000 219,214,000 291.867.000 404.477.000
Daily aver.. 1.209.000 1,132,000 1.308.000
920.000 1.223.000 1.694,000
Pa. anthra b._ 1.188.000 1.392.000 1.290.000 36.180.000 46,127.000 55.292.000
Daily aver__ 198.000 232.000 215,000
153.000
195.000
233,800
Beehive coke._
11.000
12.900
21.900
540.300 1,013.400 5.315.600
Daily aver__
1,833
2.150
3
2.242
'
a Includes lignite, coal made into coke, local sales and colliery fuel. b
Includes
Sullivan County, washery and dredge coal, local sales and colliery fuel.
c Subject
to revision. d Revised.
WEEKLY DISTRIBUTION STATISTICS.
Week Ended

Year to Date

Oct. 8
1932.

Oct. 1
1932.

Oct. 10
1931.

140.290 3,901,343 5.209.232 7.138.885
26,070
732,270
933,794 1,146,924

1932.

1931.

1929.

Car loadings. f.o.b.
mines, cars a
115 r'ds
Anthracite, 9 rds
Lake loadings, net
tons b
'Mum.. cargo_ _
Bit., vessel fuel_

129,196
24,054

120.969
28,182

918,844
24.529

866,591 1,088.581 17,169.683 24,392,156 30.687.329
22,804
30,081
427.430
798.978 1,197.293

Bitum. total_
Anthracite total__

943,373
14,998

889,395 1,118.662 17,597.113 25.191,134 31,884.622
36,402
7,413
225.010
603.507 1.107,987

loadings, net
net tons c
Foreign cargo__
Foreign bunker_
New Eng. cargo
New Eng.hunke
Other coast wise_
Inside Capes...

6,251
'7.6134
176.378
3.339
88.966
4.642

8.007
5,171
222,181
5.477
71.364
3.680

29,513
278.740 1.085.584 1.593.341
25.225
401.001
700.223 1.323.627
258.052 7,574.210 9.0:12.440 9.894.980
5,463
173,569
209.406
272.872
123.514 4.000.474 4,675.118 3.946 647
5.094
186,135
196.192
180.302

Total loading

287.240

315,880

446.861 12,614.138 15.899,053 17.211,769

New England rail
cars a
Bituminous
Not yet
Anthracite
available

1,586
2.170

Hampton Roads

01.732
02,595

65.1178

84.887

64.0:16

90.585

Rs nig

in, 97%

a Courtesy of American Railway Association. Figures o loadings
f.o.b. mines
Include railroad fue for comp my use and therefore

differ from the
of car loadings of revenue freight often (tooted by the carriers. famill .r statistics
b ore & Coal Exchange. c C. & 0.; N. & W.; and Virginian railroads. d
Week of Oct. 3 1931.
Accumulations also to corresponding dates.

California Court Declares Produce Dealers' Act Valid
-Decision Makes Bondsman Liable for Growers'
Claims Against Defunct Fruit Corporation.
Sacramento advices, Sept. 28, to the "United States Daily"
said:
A decision upholding the constitutionality of the State
Produce Dealers'
Act and affecting the payment to California growers of
claims arising out
of the sale or consignment of their product has just been
handed down by
the District Court of Appeals in San Francisco.
The case is that of Dudley Moulton as Director of the
State Department
of Agriculture against the Williams Fruit Corporation of
San Francisco,
now defunct, and the American Surety Co. of New York,
bondsmen of the
corporation.
Guaranteed $15 a Ton.
Williams Fruit Corporation accepted from various
growers consignments
of grapes, affixing a guarantee of $15 a ton. The
corporation became insohent, leaving many growers in the position of being
consignment creditors.
The total of the claims of growers amounted to $5,225.21,
slightly in excess
of the bond. The bonding company refused to make
payment after demand
had been made by the Director of Agriculture through
C. J. Carey, Chief
1ivisth e t Jtituted t I
) io
w
of Suitthe . n noinsla rket EI,
h '.
m e ht
t ie
Attorney•Gleneral's offize, and judgment for the plaintiff was obtained in the Superior
Court in San Francisco.
The defendants prosecuted an appeal on the ground
that the affixing of a
guaranteed price changed the transaction from a
consignment to a sole and
thereby took the negotiations out of the jurisdiction of
the Produce Dealers'
Act. The company also attacked the constitutionality
of the law.
Appellate Court Judges Sturtevant, Nourse and
Spence concurred In a
decision which not only sustained the constitutionality
of the law, but
affirmed the holding of the trial court that if the
transaction started as a
consignment, and was a consignment in fact, the mere
teed price would not change the basic nature of the affixing of a guaran•
deal.
Department Is Pleased.
"The decision is most gratifying to the Department
of Agriculture and to
the growers of the State," Mr. Carey stated orally.
"While this law hns
been on the statute books for five years, and although
the legislators who
framed it, the farmers of the State who demanded
its passage, and the
Division of Market Enforcement, which hog put Into
effect the regulations,
have always believed that the law was above any
attack, this far-reaching decision establishes and reasonable constitutional
sustains the statute once
and for all.
"The decision should thoroughly discourage
agencies hostile to State
regulation of agricultural activities in general and
marketing is particular.
Similar suits involving many thousands of dollars
in claims were awaiting
this decision."

Current Events and Discussions
The Week with the Federal Reserve Banks
The daily average volume of Federal Reserve bank credit
outstanding during the week ending Oct. 19, as reported
by the Federal Reserve banks, was $2,235,000,000, practically the same as the preceding week and $43,000,000
below the corresponding week in 1931. After noting these
facts, the Federal Reserve Board proceeds as follows:




On Oct. 19 total reserve bank credit amounted
to 82.219.000.000. a decrease of 515.000.000 for the week. This
decrease corresponds with decreases of $30,000,000 in money In circulation
anti 515.000.000 in unexpended capital funds, non-member deposits,
Are., and increases of $19.000.000 In monetary gold stock and 330.000.000
In Treasury currency, adjusted, offset in part by an increase of$80.000.000
In member bank reserve
balances.
Holdings of discounted hills decreased $6.000.000
at the Federal Ili
-serve
Bank of San Francisco, and 514.000,000 at all
Federal new,. banks.
The System's holdings of Treasury certificates
and bills increased $38.

Financial Chronicle

Volume 135

000.000, while holdings of United States Treasury notes decreased by the
same amount.

—Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement, such as monetary gold stocks and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the
different items, was published in the May 31 1930 issue of
the "Chronicle" on page 3797.
The statement in full for the week ended Oct. 18, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages, namely,
pages 2789 and 2790.
Changes in the amount of Reserve bank credit outstanding
and in related items during the week and the year ending
Oct. 19 1932, were as follows:

Bills discounted
Bills bought
U. S. Government securities
Other Reserve bank credit

Increase (+1 or Decrease (—)
Since
Oct. 19 1932, Oct. 12 1932. Oct. 21 1931.
$
314,000.000 —14,000.000 —384.000.000
34,000.000
+1,000,000 —735.000.000
1,851.000.000
+1,124.000.000
21,000,000
—1,000.000
—23,0011,000

TOTAL RES'VE BANK CREDIT-2,219.000.000 —15,000,000
Monetary gold stock
4 227.000,000 +19,000,000
Treasury currency adjusted
1,898.000,000 +30.000,000
Money In circulation
Member bank reserve balances
5,621.000.000 —30.000,000
Unexpended capital funds, non-mem-2,326.000,000 +80.000,000
398,000.000 —15,000,000
her deposits, &c

—19,000.000
—110,000.000
+124,000,000
+116.010.000
+50.000.000
—171.000,000

Returns of Member Banks in New York City and
Chicago—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in New York City, as well as those in
Chicago, on Thursday, simultaneously with the figures for
the Reserve banks themselves and for the same week, instead
of waiting until the following Monday, before which time
the statistics covering the entire body of reporting member
banks in the different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks, for the
current week, as thus issued in advance of the full statement
of the member banks, which latter will not be available until
the coming Monday. The New York City statement, of
course, also includes the brokers' loan of reporting member
banks. The grand aggregate of brokers' loans the present
week remains unchanged, the total of these loans on Oct. 18
1932 standing at $433,000,000, as compared with $331,000,000 on July 27 1932, the low record for all time since
these loans have been first compiled in 1917. Loans "for
own account" increased from $410,000,000 to $411,000,000,
while loans "for account of out-of-town banks" decreased
from $17,000,000 to $16,000,000, but loans "for account of
others" remain unchanged at $6,000,000.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN
CENTRAL
RESERVE CITIES.
New York.
rows and investments—total
Loans—total
On securities
All other
Investments—total

r-

u. B. Government securities
Other securities
Reserve with Federal Reserve Bank
Cash invault

Oct. 19 1932. Oct. 12 1932. Oct. 21 1931.
6 989,000.000 6,906.000.000 7,351.000.000
3,475,000.000 3,450,000.000 4,540,000.000
1,653,000,000 1,654,000,000 2.300,000.000
1,822.000,000 1,796.000,000 2,240,000,000
3,514.000,000 3.456,000.000 2,811,000.000
2.469,000,000 2,422,000,000 1,739,000,000
1 045,000,000 1,034.000,000 1.072.000,000
059,000,000 913.000.000 839,000.000
36,000,000
39,000.000
61,000.000

Net demand deposits
Time deposits
Government deposits

5 40(1.000,000 5,365.000,000 5,529.0'0.000
887.000.000 867.000.000 957.0.10,000
265,000,000 246.000,000
57.000,000

Due from banks
Due to banks

81,000,000
83,000,000
1 389,000,000 1.371,000,000

Borrowings from Federal Reserve Bank.

70, 00.000

Loons on secur. to brokers & dealers;
For own account
411,000,000
For account of out-of-town banks
16.000.000
6,000,000
For account of others
Total
OM demand

on time
Loans and investments—total
Lo505—total
On securities
All other
Investments—total
J. s. Government securities
Other securities




76,0,0.000
978,10,000

433,000.000

410.000,000
17.000.000
6,000.000

603.000.000
102.000.000
179,000,000

433.000,000

884,000,000

281.000,000 285.000.000 614,000.000
152,000,000 148,000,000 270,000,000
Chicago.
1,235,000,000 1.214,000,000 1,693,000,000
745.0e0,000

751,000,000 1,154.000.000

425,000,000
320,000,000

435,000,000
316,000,000

490.000,000

463,000,000

539,000.000

283,000,000' 259,000,000
207,000,000 ,i, 204,000,000

317.000,000
222,000,000

662.000.000
492,000.000

2739
Oct. 19 1932. Oct. 12 1932. Oct. 211931,

Reserve with Federal Reserve Bank__ 261,000.000
Cash in vault
17.000,000

256,000,000
18,000.000

Net demand deposits
'rime deposits
Government deposits

879,000.000
319.000.000
34,000.000

857,000.000 1,111,000,000
323.000,(00 464.000.000
30.000.000
6,000,000

Due from banks
Due to banks

216,000.000
302,000,000

237.000,000
297,000,000

98,000,000
244,000,000

4,000,000

5,000,000

Borrowings from Federal Reserve Bank_

162.000.000
15.000,000

Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above, the statements for the New York
and Chicago member banks are now given out on Thursday,
simultaneously with the figures for the Reserve banks themselves and covering the same week, instead of being held
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in 101
cities cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business on Oct. 12:
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on Oct. 12 shows increases for the week of
399.000.000 in total loans and investments, $101.000.000 in net demand
deposits and $16,000.000 in time deposits, and decreases of 543,000.000
in Government deposits and $29.000.000 in reserve balances with Federal
Reserve banks. Borrowings of weekly reporting member banks from
Federal Reserve banks remained unchanged.
Loans on securities declined $16.000.000 at reporting member banks in
the New York district and $14.000.000 at all reporting member banks,
and increased $6.000.000 in the Boston district. "All other" loans increased
$39.000,000 in the New York district and $11.000.000 at all reporting member banks, and declined $9,000.000 In the San Francisco district, $7,000.000
in the Chicago district and $6,0130.000 in the Boston district.
Holdings of United States Government securities increased 271,000,000
In the New York district and $61,000,000 at all reporting member banks,
and declined $7.000,000 in the Chicago district. Holdings of other securities increased 530.000.000 In the New York district, $6,000.000 in the
Chicago district and $41.000,000 at all reporting banks.
A summary of the principal assets and liabilities of weekly reporting member banks, together with changes during the week and the year ending Oct.12
1932, follows:
Increase(+)OF Decrease(—)
Since
Oct. 12 1932.
Oct. 5 1932.
Oct. 14 1931.
$
Loans and investments—total__18.981.000,000
+99.000.000 —2.520.000.000
Loans—total
On securities
All other
Investments—total

10.634.000,000

—3.000.000 —3.046.000,000

4.467.000.000
6,167,000,000

—14,009.000 —1 534.000.000
+11.000.000 —1.512,000,000

8,347,000,000

+102,000,000

+526,000,000

U.S. Government securities—. 5,064,000.000
Other securities
3,283,000,000

+61.000.000
+41.000.000

+864.000.000
—338.000,000

—29.000,000
+10,000,000

+119.000.000
—71,000,000

Reserve with F. R. banks
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. banks

1,799.000.000
207.000.000
11,309.000,000
5,660.000.000
550,000,000
1.570,000,000
3,189,000,000
107.000.000

+101.000.000 —1.278,000.000
+16.003.000 —876000.000
—43,000,000 +268.000,000
+31,000,000
—9,000,000

+415.000.000
+402,000,000
—307.000,000

Slump in Pound Sterling Bewilders London—Causes
Not Known, but New Low Levels for Sterling Are
Expected.
The following from London Oct. 19 is from the New York
"Times":
The pound sterling, which closed yesterday at $3.41, took a spectacular
drop to $3.35 this morning, but with a resumption of official
support it
managed to close at $3.39 St. The early figure was the lowest since January.
Exchange dealers were flooded with business and had a hectic day
trying
to cope with the wide fluctuations in the rate. The forward
exchange
market became almost as demoralized as in the days Just following
Great
Britain's suspension of the gold standard. The
general impression was
that the French were the heaviest sellers of sterling, although pressure
came
from many sources on the Continent.
While Government newspapers minimize the decline as unimportant,
there is much anxious bewilderment in financial circles over the
causes
of the drop of the sterling In the last two days. The volume of
speculative
activity has been small and there have been few signs of short selling.
In some quarters the fall is attributed to a combination of seasonal factors
plus various unlikely rumors that the Government Is tuying
dollars to
cover the December payment on the war debt. It is suggested. too,
that
Premier MacDonald's speech on Monday and the demonstrations of the
unemployed here may have had a psychological effect.
The general feeling in the market is that the decline will go hmther in
the next two months, although the authorities may he able to hold
sterling
at ite present level a while. An attempt was made to-day to
maintain
the official peg at 23.3914. but it proved to be too expensive and
the authorities let the exchange drift unchecked to $3.35. The slump had
an adverse
effect on British Government stocks, but gold shares boomed
when the
price of the metal went well above e6 a fine ounce.
Widespread bewilderment here over sterling's behavior
will be reflected
In to-morrow's "Financial Times" which will
say there is no Intrinsic
weakness In the pound to account for the decline.
It suggests that extraneous
factors are responsible, chief of which is the
continued existence of big
boating balances held by foreigners In the principal
monetary centres.
They are liable to be transferred at the first
hint of uneasiness." says
this leading financial paper. "Bitter
experience of the damage that their
movement can cause prompts the intention
to bring before the world
economic conference the question of the
best method of dealing with them.

Financial Chronicle

2740

Meanwhile, such as remain are still Capable of causing disturbance and it
'would seem some of them are being repatriated in view of the emergence
of the renewed differences of opinion among the powers, although others
in this era 01 low interest rates are seeking a centre where they may find
the most remunerative employment."

Gold and Silver Imported Into and Exported from the
United States by Countries in September 1932.
The Bureau of Foreign and Domestic Commerce of the
Department of Commerce at Washington has made public
its monthly report showing the imports and exports of gold
and silver into and from the United States during September
1932. The gold exports were only $59,952, of which $50,000
went to France; $8,522 to Canada, and $1,430 to Switzerland. The imports footed up to $27,957,250, of which
$.5,868,247 came from the United Kingdom; $5,542,700
from Netherlands; $3,912,032 from Canada; $2,893,244 from
China; $2,854,575 from British India; $2,842,894 from
Mexico, and $1,311,830 from Hong Kong. Below is the
report:
GOLD AND SILVER EXPORTED FROM AND IMPORTED INTO T HE
STATES BY COUNTRIES.
SILVER.

GOLD.
Total.
Exports.
Dollars.
CountriesFrance
50,000
Germany
Netherlands
Norway
1.430
Switzerland
United Kingdom_
Canada
8,522
Costa Rica
Guatemala
Honduras
Nicaragua
Panama
Salvador
Mexico
Newfoundland
Jamaica
Trinidad and Tobago
Other Brit. %V. Indle.
Cuba
Dominican Republic
Netherland W.Indies
Argentina
Chile
Colombia
Ecuador
British Guiana
Peru
Venezuela
British India
Ceylon
China
Netherland E. Indies
Hong Kong
Philippine Islands__
Australia
New Zealand
Belgian Congo
Other Brit. NY. Africa
Total

Refined Bullion.

Total (Incl. Coin).

Imports.

Exports. Imports. Exports. Imports.

Dollars,
100.000
320.000
5,542.700

Ounces.

220.500
5,868.247
3,912.032
23.701
14.110
27,337
28.557
24.820
968
2.842.894
31,548
385
28.492
1,132
74,075
43.326
195.208

Ounces.

Dollars.

Dollars.

450
65,203

3,215
27.259
52.059
81.356
14.252
127.047
160.160
2.854.575
2,400
2,893.244 1,782.907
118.280
1,311.830 975,798
450.000
511.108
41,482
9.541
2.625

193.104

76,024

218
310,858

327,249
1.814

246.555
5.254

'2,905,266

20.030 1,445.434
32.481
2,500
390
58
150
3,802

417

1,300
976
199,584
8.545

27.857
54.364
2,563

120.739

65,301

430.415
67,534

501.665

127.500
19,080

269,915
70

3,651
1,221
19
1,533

59 9.52 27.957.2.50 2.827.123 4.254,737

868,760 2,352.389

Drop in Pound Sterling as "Peg" is Removed-Exchange
Falls to Lowest Figure Since Jan. 11-Later Rally
New Level Viewed as Aim.
Finding it impractical to continue to hold sterling at the
levels recently maintained, the Bank of England on Oct. 18
"pulled the pegs" and let the pound fall 4M cents, it was
observed in the New York "Times" of Oct. 19, which noted
that the break carried the exchange to a low and closing
/,
price of $3.403 the lowest quotation since Jan. 11. The
decline was the sharpest since the establishment of the
£150,000,000 exchange equalization fund last April, said the
"Times" which went on to state:
Sterling has been under pressure lately, due to remittances from England
to this country to pay for purchases of American securities and for the
seasonal movement of cotton. This pressure was not the prime cause of
the fall in the exchange, according to bankers, however. Sterling is at
present a managed currency, controlled by the Bank of England through the
operations of the equalization fund. Consequently, movements of the exchange are regarded as dictated by monetary policy.
That the British fiscal authorities were prepared to let sterling down
another step was indicated a week ago, when the exchange was allowed
to break below $3.45. For about two months prior to that time the pound
had been confined to a fairly stable range between about $3.453. and
$3.473.. Since the beginning of August it had not been permitted to go
above $3.50.
Sterling, Under Control, Slides.
For six months sterling has been undergoing a controlled depredation.
When the Equalization Fund was set up the exchange was quoted around
$3.77, or about 37 cents above yesterday's closing price. In the early
stages of the operations of the fund the efforts of the British fiscal authorities
were directed chiefly toward checking the rising tendency of the exchange
Induced by the weakness of the dollar. With the return of confidence in
managers of the
the dollar last June. sterling came under pressure, and the
currency contented themselves with preventing any extreme breaks, while
allowing the pound to fall gradually to about$3.46. When that price was
reached the decline was arrested.
depreciation of sterling
As British monetary policy is Interpreted here, the
necessitated to restore Britain's financial post
Is, In effect.a levy on capital
return to the gold standard. How heavy
Con and lay the groundwork for a
determined only by experimenting with various
this levy must be can be
other measures of financial rehabilitaovels of exchange in conjunction with




Oct. 22 1932

tion, some of which, such as the conversion of the war debt to a lower rate
of interest, have already been taken.
Accordingly, the fall In the pound yesterday was viewed by bankers
here as a step preliminary to trying out a new level of exchange. What
that level is likely to be, only the future can indicate, bankers remarked.
Operations in Sterling Not Large.
Despite the sharpness of sterling's fall, trading was not large, dealers In
foreign exchange said. Lack of bids in the face of the evident willingness
of the Bank of England to permit the exchange to decline accounted for
the size of the setback more than weight of offerings. Official support
reappeared In the market at the lowest levels touched, but whether the
support was accorded merely to lessen the force of the decline or to check it
definitely at thy level could not be determined.
The break in sterling carried other European exchanges lower in terms of
the dollar. Francs dropped Y6 point to 3.92% cents. guilders 4% points
to 40.19 cents, beiges 2 points to 13.89 cents and Swiss francs 2 points to
19.30% cents.

Regarding the recovery on Oct. 19, the New York "Journal
of Commerce" of Oct. 20 said:
On a new decline almost as sharp as the 44ic, break which sent the pound
to $3.40 on Tuesday [Oct. 181 sterling reached a new low for the year yesterday. but rallied vigorously during the afternoon. The rally was generally
attributed to short covering rather than to intervention by the British
Treasury.
During the day transactions were reported as low as $3.36. The closing
rate, however, was 63.39%, which was only 1% below the final rate on
Tuesday.
Forwards Are Weak.
Forward deliveries were much weaker than spot quotations. The premium on deliveries In 90 days declined from 3-16 of a point above the rate
for cable transfers to a premium of only 1-16 of a point. On the theory
that seasonal pressure against sterling should Increase until the end of the
year many traders held that forward sterling should decline to a discount
from the spot price. Throughout the period during which sterling moved
from a level In the neighborhood of $3.70 to its present price, forwards were
maintained at a discount above spot. Anticipation of a continued decline
in the basic rate would of course lead to the discounting of future rates.
There were widespread, but unconformed reports yesterday that the
equalization fund of the British Treasury at the present time consists almost
entirely of sterling balances so that the ability of the Treasury to support
the pound by selling exchange is extremely limited. The equalization fund
was set up and placed in possession of the Treasury for the purpose of
stabilizing sterling within areas to be determined by Treasury officials. It
may hold gold, foreign exchange and sterling.
Exhaustion of foreign exchange reserves held In the fund would mean
that support of the exchange could come only through the sale of gold by
the Bank of England. The Bank now holds over £140000000 bullion.
This amount Is considered more than ample to maintain sterling at present
levels. In fact, It was pointed out, the bank was able with much less gold
to keep the rate to its old par level over long periods.
Official Support.
In local banking quarters it was considered probable that official support
would appear in the market soon, whether tots support took the form of
sales of exchange or ofshipments of gold. Opinions varied widely, however,
as to the next level at which the rate would temporarily be stabilized. Predictions ranged from g3.25 to the present level. around $3.40.
Bankers said yesterday that the increased cotton financing business now
going to London accounts In part for the weakness of sterling. Acceptance
financing In London is even cheaper than it is In New York so that overseas shipments of cotton and of Canadian wheat are being financed to a
great extent on sterling bills. Shippers hedge against exchange losses by
contracting to deliver sterling at present exchange rates on the maturity
dates of their bills. This puts considerable pressure upon the forward
market.
The obligation of the British Treasury to pay out £165,000,000 cash for
nonconverted 5% War Loan bonds on Dec. 1 naturally had a depressing
effect upon the exchange. A large proportion of the nonconverted securities
are said to be held outside of England. According to reports from London
yesterday such holders to a large extent already have sold forward sterling.
It was pointed out in local exchange quarters, however, that the forward
markets obviously could not stand the strain of such heavy sales.

The same paper in its issue of Oct. 21 stated:
The sharp fluctuations in sterling exchange came to an end yesterday
[Oct. 201. and for the day at least the rate was stabilized in the neighborhood
of$3.40. This suggested that the British Treasury again had entered the
market In which case the rate would be likely to remain close to yesterdaYS
levels. However. traders said that they had no independent evidence of
official support and that for the time they could only draw inferences from
the behavior of the exchange.

Neville Chamberlain, British Chancellor, on Pound
Sterling Fund.
The "Wall Street Journal" of Oct. 20 reported the following from London:
Neville Chamberlain. Chancellor of the Exchequer, said in the House of
COMMOn11 that the £150.000 000 sterling equalization fund Is In a ''reasonable position" and has not been gambled with In an effort to support 00
British currency.
Ile refused to confirm reports that the Bank of England used a part of the
fund for the Purchase of gold.

Drop in Pound Sterling Stirs Berlin-Many Fear
Further Handicap on Germany's Exports.
Berlin advices as follows Oct. 19 appeared in the New
York "Times":
German financial circles and export Interests were alarmed at to-dars
sharp drop in sterling to the lowest Point touched this year and close to the
lowest since Great Britain's abandonment of the gold standard. The Berlin
market for sterling cables declined to 53.36, later recovering to $3.38. The
official quotation was fixed at 14.25 marks. against 14.49% Yesterday. The
Stockholm, Oslo and Copenhagen exchanges followed suit.
The apprehensions were directed chiefly to the Increased c.ompetItIve
export handicap imposed on Germany. Some observers envisage a now
dumping front and express the belief that It was consciously aimed at by the
British Treasury, the Bank of England ceasing to support sterling. There
was also uneasiness about German claims for sterling which are not pro-

Volume 135

Financial Chronicle

tected by the clause containing a guarantee against fluctuation and about
holders of British public bonds declining to accept conversion.
Beyond the direct effect on Germany.a disturbing influence on the world's
unsettled monetary problems also Is feared by some financiers who say that
sterling's'drop likely will have psychological consequences since it will be
interpreted as if it were the second abandonment of the gold standard and
a renewed defeat of the Bank of England's attempt to regulate the sterling
rate by means of gold.
Other authorities, however, tend to view the drop as a transitory Phenomenon and emphasize the necessity of waiting to see whether official
support of sterling Is not resumed by the Treasury and the Bank of England
at a more convenient rate.

Great Britain Ends Trade Treaty With Soviet Russia—
Ottawa Pacts Forced Abrogation of Agreement,
Thomas Tells Commons—Britain, However, Suggests New Discussions on Trade Interchange.
J. H. Thomas, Secretary for Dominions, announced in
the House of Commons in London on Oct. 18 that Great
Britain has abrogated its commercial treaty with Soviet
Russia. Under Article 21 of the tariff agreement reached
at the recent Ottawa Imperial Conference, he said, renunciation of the temporary commercial agreement with
Russia was made necessary. An Associated Press account
from London Oct. 18 to the New York "Evening Post"
continued:
This agreement was signed in April 1930. It gave Russia the Privileges
of most-favored nation treatment and therefore, Mr. Thomas explained.
stands in the way of trade prohibitions which might oe necessitated by
it
the obligations undertaken at Ottawa.
In notifying the Russian Charge d'Affaires here that Great Britain is
serving six months' notice of abrogation in accordance with the pact. the
Soviet authorities were informed that Great Britain is still anxious to increase its trade with Russia and is ready to enter discussions with that object
in view at the earliest possible time.
Russian !neat Opposed.
Article 21 of the Ottawa agreement, to which Mr. Thomas referred,
stipulates that the whole arrangement with the Dominions is based on the
express condition that if either party "Is satisfied that any preferences
granted on any particular class of commodities are likely to oe frustrated
by reason of maintenance of prices for such commodities through state
action on the part of a foreign country," that government will exercise the
powers it has "to prohibit the entry from such foreign country of such
commodities for such time as may be necessary to maintain the preferences" granted at Ottawa.
Canada and Australia were particularly concerned during the negotiations
at Ottawa that the British Government should adopt effective means to
prevent resumption of Russian dumping on the wheat market.
It was suggested at the time that abrogation of the British agreement
with Russia might be necessary to make the Ottawa agreements effective.
The Government benches cheered when Mr. Thomas declared to-day
that the Government, having undertaken an obligation to give preferences
within the British Commonwealth. must take all steps necessary to see that
"no country shall frustrate this obligation by dumping sweated goods in
Great Britain."
Before Parliament assembled, the Liberal members of the House voted
to oppose strenuously the passage of legislation necessary to ratify the
Imperial Conference trade agreements.
With Sir Ilerruirt Samuel, who resigned as Home Secretary. Presiding,
the Party organized a committee to prepare detailed amendments for presentation. Sir Herbert's resignation was unanimously indorsed.
As soon as Mr. Thomas had finished speaking about the Russian treaty
and the unsuccessful negotiations regarding points at lime with the Irish
Free State. Neville Chamberlain, Chancellor of the Exchequer, opened
debate on the Ottawa matter. This probably will consume three days.
Be moved the first of the finance resolutions which will make the Ottawa
Pact a Part of the law of the land. Declaring that his purpose was to indicate
the real significance and Importance of the Ottawa Conference. he said that
if that meeting results in increasing the prosperity of the British Empire.
would be the best contribution Great Britain could make toward restoration of world prosperity.

Premier Herriot Denies Rumor France Will Not Pay—
Assures United States December Installment on
Debts Will Be Met—No Decision Beyond That—
Says Paris Press Misquoted Him.
France will pay the debt installment due the United
States on Dec. 15, in full, Premier Edouard Herriot assured
J. Theodore Maniner, American Charge d'Affaires, according to "United Press" advices, Oct. 21, from Paris to the
New York "Sun," which went on to say:
Mr. Marriner visited the Premier after statements had been made in
the French papers intimating the payment might be evaded. M. Herriot
told him, however, the Government had made no decisions about future
debt Payments.
The Foreign Office also announced that M. Herriot insists that the
French Government has made no decision on regulating the debts, beyond
the scheduled December payment.
The Foreign Office described as false verbatim reports printed by the
"Echo de Paris" and other French newspapers concerning M. Herriot's
recent appearance before the Finance Commission of the Chamber of
Deputies. He was quoted as saying France admits the commercial and
war stock debts owed to the United States but intended to negotiate the
political debts.
Bound for Britain.
Premier Ilerriot Insisted, on the contrary, that the Government has
not deliberated the question and will not do so until after the American
presidential election.
M. Bizot, Vice-Director of the movement of funds in the Finance Ministry, started for London to-day to talk about the French war debt to
Britain with Sir Frederick Leith Ross. British financial expert.
May Try to Block Payments.
Members of the Chamber Finance Commission discussing the budget
had hinted that Parliament might attempt to block the December pay




2741

trout to Washington. Louis Malvy, Chairman of the Commission, reminded Finance Minister Germain Martin that Parliament, when ratifying
the debt agreements, adopted a safeguarding clause, providing that Prance
would pay her creditors only to the extent that she received payments
from Germany.
M. Malvy said that in view of the Lausanne agreement to cancel reparations, the Government could not pay the United States without Parliaments' authorization. The Finance Minister /wiled that he would
not discuss the question before the American election.
Before Cabinet To-night.
Efforts will be made to force the Government to debate the American debt
In the Chamber of Deputies during November, but pollOcians believed that
the debate would be postponed until after the Presidential election. They
pointed out that the budget will not be in shape for general debate before
Nov. 10.
The Cabinet will discuss the budget to-night, and is considered certain to
take up the debt question.

International Debts As Paris Sees Them—Suggestion
of Refunding Short Loans—Private Obligations
and Germany's Foreign Indebtedness.
From Paris, Oct. 7, advices to the New York "Times"
said:
In present discussion of possible relief from the burden of international
debts,one suggestion Is made that such indebtedness be consolidated—that
Is, that States wih short-term obligations should oorrow for long periods
to take up the short maturities. The objection to this recourse is that. in
order to borrow on long-term, the debtor governments must once more
Inspire confidence in those countries now capable of suoscribing such longterm Mans.
Budget balancing would problably not suffice to restore such confidence.
and it might conceivably be necessary, before revising the short-term debts,
to ask creditors to make sacrifices, as is done in private difficulties of the
kind.
Since such sacrifices would make possible the subsequent return to
banking and commercial transactions on a gold oasis, it is thought that they
would be more profitable than maintenance of the status quo and insistence
on the full terms of the obligations. French financial circles consider that
some such clearing up of the situation will have to precede re-establishment
of the gold payments in Central Europe.
German newspapers do not conceal the fact that German enterprises are
not able to meet their private debts in full. But as regards the German
foreign loans, especially governmental obligatioaa, it is felt that any suspension of payment would deal such a blow to German credit that Germany
will make an effort to meet its accruing commitments. Certainly the
country has resources for such purposes which are not available to small
countries like Austria.

War Debts Unsolved, Says Sir John Simon—Statement
Comes on Day Great Britain Is Reported Preparing for Payment.
Sir John Simon, the Foreign Secretary, in the House of
Commons on Oct. 20, rebuked the Liberal Ministers who
had resigned from the National Government for doing so
at a time when Great Britain was confronted with so many
grave questions that were still unsolved. In enumerating
some of those questions he mentioned "the whole problem
of the American debt." The foregoing is from a London
cablegram (Oct. 20) to the New York "Times," which
likewise stated:
It is interesting and significant that the Foreign Secretary should refer
to the war debt to the United States as an unsolved problem on the very
day reports were coming to London from Europe and America to the
effect that Great Britain was already Preparing to Pay the amount due
the United States Dec. 15. These reports were attributed here to hasty
jumping to the conclusion that the decline of the pound in the last three
days must have been caused by Britain's buying dollars for the December payment. Financiers and politicians in Great Britain both declare
that this conclusion is incorrect.
In the first place, this matter of the war debt must be settled as a diplomatic and political question before the bookkeeping problem of the
payment is considered. This diplomatic phase has not even oeen begun.
and probably will not be until after the United States elections.
There is only one certainty about the whole situation. That is that
Great Britain will not default. If the United States insists on full payment on Dec. 15. Britain will pay, even though no budgetary provision
Is now made for such a contingency. She can pay if necessary by raising
money through a new domestic loan or treasury notes.

Paris Chamber of Commerce and Textile Union Appeal
for Balanced Budget—Demand Wage Cuts by
French Ministry.
The Chamber of Commerce of Paris and the Textile
Syndicate Union on Oct. 15 joined a long list of important
trade organizations issuing appeals to the Government to
take strong measures-to balance the budget. Both of these
associations urged salary cuts as a necessary part of any
program, said a Paris wireless message to the New York
"Times," which went on to say:
Meanwhile, the government seemingly Is having great difficulties in
striking an effective compromise between the apparent necessity of reduring wages and the pacification of the powerful civil service organizations,
which are unalterably opposed to reductions and whose votes count heavily.
To-day a delegation from the Railroad Workers' Federation visited the
Minister of Public Works and declared the workers were unalterably
opposed to wage cuts. Yet the railroads are losing about 12.000.000 francs
labout $480,000] daily and the government ultimately will have to foot the
The chief difficulty is going to be to follow any wage cut by the necessarl
cut in the cost of living, which is now said to be higher here than in most of
the rest of the world.

2742 •

Financial Chronicle

A slight seasonal Improvement amounting to 156.000.000 francs [about
$6,240.0001 in France's foreign trade for September was shown in figures
issued to-day. Exports improved 202.000.000 francs, while imports fell
46.000,000 francs to the lowest level since the decolorization of the franc.
The totals were: Exports, 1.325.703.000 francs: imports, 2,228.038,000
francs. The figures for the first nine months of this year, however, give
little cause for satisfaction, especially from the merchants' and shippers'
points of view. Imports were 22.169,467.000 francs, which is more than
11.000,000.000 francs less than for the corresponding period of 1931. Of
course. France. just as other European countries, has been trying to curtail
her imports, but her exports also fell nearly' 9,000,000.000 francs to 14.561.932.000 francs.
Imports and exports together show a drop of about 35% as compared with
last year. exports dropping 38% and imports 34%•
The seriousness of this situation led the French committee of the European
Customs Union to announce to-day it had adopted a resolution demanding a
general reduction of tariffs and asking that a study of customs tariffs be
placed prominently on the agenda,of the,coming World Economic Conference.

Proposal by French Syndicate to Liquidate German
Frozen Credits Opposed by American Business
Representatives in Paris.
On Oct. 18 Associated Press advices from Paris said:
American business representatives, at a special meeting to-day, decided
to call the attention of the French Government to what the Americans
regard as a menace to their trade in the scheme of a French syndicate to
liquidate frozen credits in Germany.
Under the plan, the French group would arrange for German firms to
grant French Importers lower prices through liquidation of impounded
credits at a discount.
,The Americans agreed they were unable to act to offset this plan in
any other way than by appealing to the government. They admitted the
scheme was legal. Hope was expressed that authorities would consider
the American viewpoint in negotiating the new Franco-German commercial
treaty.

Paris Bourse Extends Sessions.
From the "Wall Street Journal" of Oct. 15 we quote the
following from Paris:
Beginning on Nov. 1. both the official and curb markets will hold afternoon sessions from 2:45 until 3:30 for dealing in international Issues with
London and Brussels. On the official markets, probably only Royal Dutch,
Central Mining. Canadian Pacific and Paris Metropolitan Railway will be
listed, but the curb expects dealings in all the South African issues. Shell,
Eagles, De Beers, &c. Before the war, the curb had an active afternoon
aroitrage market with European centres.

Loan Subscribers—Profitable Shifting from
Old Government Bonds to New.
The following wireless message from Paris Oct. 14 is
from the New York "Times":
French

It may be pointed out that subscriptions by the public to
the new
rentes were largely made with proceeds of sales of existing 4% routes. 434%
which
latter were bought by the Bank of France for the account of French savings
banks.
Since the 4% had risen nearly to par and since their price was
maintained
by the purchases referred to, holders were enabled by this shift to
increase
their investment yield while paying only a trifling difference in
price.

Items bearing on the French loan conversion appeared
in our issue of Oct. 15, page 2583, and Oct. 8, page 2415.
Reciprocity Pacts Urged by French Committee of
International Chamber of Commerce—Favors Condition in Most
-Favored-Nation Treaties.
In a report concerning the most favored-nation clause by the French
National Committee of the International Chamber of Commerce, made
Public to-day, a clause making reciprocity a condition in all treaties is
- recommended,
In view of pending negotiations on a Franco-American trade treaty this
report was examined with interest by United States business circles here.
The report points out that such a conditional clause was contained in
the
original Franco-American treaty of 1778 and therefore cannot be
regarded
as an innovation.
• This conditional clause would provide that both parties to a treaty containing most-favored-nation treatment be required to make equal concessions and would prevent one nation from giving other advantages without obtaining equivalent concessions.

German Foreign Debt Set at Revised Figure of About
26,600,000,000 Marks Report to Department of
Commerce Shows.
Total amount of German foreign indebtedness on Feb. 29
1932 was estimated in revised form by the German Statistical
Bureau at about 26,600,000,000 marks, according to a
report of the Commerce Department's Regional Division.
The Department's advices, made available Oct. 15, also
said:
Included in the debt were various items. At the close of February 1932
the debt was composed of 10.153.000 000 marks, maturing up to February
1933. and a total of 10.470,000.000 marks in long-term debts, due after
February 1933. making a total of 20.623.000,000 marks. (The par value
of the mark is 23.82 cents. U. S.)
In addition to the above.foreign Investments in Germany were estimated
by the Second Committee of Experts at Basle In December 1931 to be
distributed as follows:
Amount of German bonds owned by foreigners, approximately 400.000,000 marks; foreign-owned German shares and interests in German enterprises. between 2.500.000,000 and 3,500,000.000 marks: foreign-owned
real property in Germany. 2,000.000 000 marks, it was stated.




Oct. 22

1932

Foreign exchange regulations issued in Germany since the financial crisis
of July 1931. and the required registration ofsums owed by German nationals to foreigners, have made it possible, it was pointed out, to determine
foreign indebtedness of Germany in a much more accurate manner than
previously. In particular, the decree of March 30 1932 furnished the legal
basis for a census of German foreign debts, according to their status as of
Feb. 29 1932. This census covers a wider field than the previous censuses
taken in July and November.- inasmuch as it was extended to all individual
German obligations above 5,000 marks, while the minimum for the previous
Investigations was 50,000 marks.
In order to obtain a clear picture of Germany's total indebtedness, it ii
necessary to make an allowance for debts below 5.000 marks. which were
not covered by the census. It is believed that the total amount of these
debts would not exceed 100.000.000 marks.
Total credits and loans granted by foreign banks amount to 8,400,000.000
marks, or 40% of the total German indebtedness, excluding, of course.
foreign investments in Germany. Of the remaining
60%. the greater part
represents loans issued in foreign capital markets.
The distribution of Germany's foreign debts by countries
is shown in
millions of marks as follows:
United States, 3.227 in short-term debts and 5.165 long-term debts.
Netherlands, 1.661 short-term and 1,914 in long-term.
Switzerland, 1.615 short-term and 1.146 long-term.
Great Britain, 1.286 short-term and 1,129 long-term.
France. 474 short and 482 long-term.
Sweden, 136 short and 167 long-term.
Belgium, 119 short and 80 long-term.
Czechoslovakia. 157 short and 18 long-term.
Italy, 73 short and 74 long-term.
Denmark, 51 short and 9 long-term.
Norway, 14 short and 5 long-term.
Other countries. 1.340 short and 281 long-term debts.
The last item
includes the account with the Bank for International
Settlements.
• The interest on German debts required 1.225.000.000
marks per annum,
which is divided about equally between short-term and long-term
debts.
The Statistical Bureau estimates the total service of
German foreign debt
in 1932-33 at 1,700,000.000 marks, it was stated.

Chancellor Von Papen Says Germany Can Pay Creditors
Only in Goods—Wants Trade Bars Lifted—Asking
Debt Payment While Keeping Tariffs High Called
Bad Logic—Chancellor Indicates Expansion of
Standstill Agreement Is Needed.
Chancellor Franz von Papen on Oct. 16 warned Germany's
private foreign creditors that obligations to them could be
paid only by sale of goods and that to make this possible
trade barriers would have to be lifted. A cablegram from
Berlin Oct. 16 to the New York "Times" went on to say:
In a significant speech before Westphalian industrialists at Paderborn he
emphasized that the German Government would seek to impress
this point
on creditor nations at the coming world economic conference.
Discussing the Government's political and economic
program at length.
the Chancellor announced that while previous repayment of $1.000.000.000
of foreign private debts suggested impressive testimony of Germany's
economic virility, withdrawal of further credits in the present situation
could not be countenanced, as it would involve serious convulsions of her
economy.
Wants Consoadation of Debts.
Lieut. Col.g ond Phort erm fastign aindispeate bie eo e co
s lon va n sapent forec re as nd pri vnsa ind thtedn
idatnd of
eyoion e
Germany'
th
scope fixed in the "German credit agreement of 1932." which
expires next
.
March 1 But aside from this he gave no intimation of how
the Government would intervene in present private commitments
between foreign
creditor banks and the German debtors committee.
There was nothing in his statement to Permit an inference
that the Government would proclaim a private debt moratorium before
thoroughly canvassing the situation with the foreign creditors. A promise to
this effect, it is
well known, was given to Albert H. Wiggin as chairman
of the Foreign
Creditor Bankers Committee by the Bruening Government
when the present
standstill agreement was initialed.
"Our creditors abroad." the Chancellor said. however,
"can reckon on
repayment of Germany's foreign indebtedness only if
they are
to
take German commodities in payment, and this presupposes Prepared
they are willing to neen their trade frontiers to our goods. To
repayment of
expect
debts while confronting us with trade barriers suggests both
crass and indefensible violation of all economic logic.
"With export prospects thus lightened, the burden
of 20.000.000.000
marks (about $4,750,000.000) of private debts still owed
abroad will be
made tolerable and will not longer constitute a Paralyzing
factor In our
national economy•"
Disappointed Over Ottawa.
Chancellor von Papen expressed disappointment
over the
Ottawa conference, and believed they were hardly conducive results of the
to promoting
an international revival of trade. "But we must not give
up hope," he
added. "that the world conference will succeed in showing
the path to
world-wide economic improvement."
One of the most important problems confronting the
conference, he said.
is suggested in the existing confusion and impediments
imposed on international money transfers, now hopelessly fettered by complicated
exchange
restrictions which are obstructing private initiative
the world over.
Defending his Government's import quota policies,
the Chancellor said
these had not neon convolved in a spirit of reprisal, but
had been dictated
by the urgent necessity of conserving
German agriculture. The opposition
to them abroad , he believed, will disappear once it is realized
they essentially
constitute a protective measure in the interest of German
economy in its
entirety. He stoutly denied reports that they were Inimical
to the security
of German currency and reiterated there could be
no concern for the
staollity of the currency.
Unmoved by Politics.
Reverting to the Government's domestic policies, Chancellor
von Papen
reiterated RA determination to carry out its reform measures without
deferring to the susceptibilities of party politics. Ile was
loudly cheered
when he exclaimed that German economy had waited in
vain for 13 years
for that measure of secrity essential to its rehabilitation
and the that time
had now come to Operate it from laming confusion
and the phraseology of
party politics.
.l
n
was not this Government that created an abnormal
situation, but
the insecurity of the German party system which is forever evading
responsibility," he concluded. "It Is time the German people emancipated
itself from this incubus in our national life".

Volume 135

Financial Chronicle

German Mark's Price Linked with Dollar—Dollar
Exchange Did Not Fall at Berlin in Week of Oct. 15.
Under date of Oct. 14 a wireless message to the New
York "Times" stated:
Bankers here doubt whether Mr. Hoover's misunderstood speech at Des
Moines was itself sufficient explanation for last week's reaction in dollar
exchange. They are inclined to believe that the simultaneous reaction in the
Wall Street stock market had been a,..companied by European selling of
American stocks and by withdrawal of the proceeds, which temporarily
affected the exchange rat,.
The view is taken that the dollar's position is unshakable in view of the
present smallness of European balances in America and the resultant continued flow of gold to New York. Generally, banking comments on the
Wall Street reaction are to the effect that it was normal and inevitable,
and some financiers of longer experience recall the sharp Wall Street reactions which occurred after the United States had begun its real recover
from the 1907 panic.
The Reichsbank maintained its dollar quotation unchanged despite the
temporary decline in other countries, but advanced is rates on Paris. Amsterdam and Zurich sharply and reduced them only after the dollar had
recovered on those markets. The practical effect of this policy is to tie
the mark to the dollar, and the policy seems to have succeeded.

Reichsbank's Protest Against Quota Plan—Belief That
Saving in Imports Would Be Offset by Loss of
Exports—Warning by President Luther.
In a cablegram Oct. 15 from Berlin to the New York
"Times" it was stated:
The protest by Reichsbank President Luther to the government against
the imposition of quotas on agricultural imports is not interpreted here as
meaning any danger to the reichsmark's stability on the exchange market.
Luther's view is that Germany's saving of foreign exchange through reduction of agricultural imports will be more than counterbalanced by loss
of exchange from diminished exports—if, as is expected, foreign countries
were to retaliate.
At present Germany's imports of agricultural products affected by the
quota plan average only 38,000.000 marks monthly, whereas her exports
to 18 countries which supply these products average monthly 225,000.000.
It is therefore reasoned that retaliatory measures would threaten Germany's
export surplus and therewith affect the Reichsbank's reserves.
It is not thought that this would necessarily undermine the mark's
stability. It would, however, compel the Reichsbank to impose still more
stringent restrictions on foreign remittances, from which foreign holders of
German bonds and short-term credits might suffer.

Under date of Oct. 14 a copyright cablegram from Berlin
to the New York "Herald Tribune" said:
Dr. Hans Luther, President of the Reichsbank, has warned the German
authorities that the stability of German currency might be endangered if
the government persists in continuing its method of establishing quotas on
foreign impoits to this country, several dailies here reported to-day. Should
the government's plans for restricting foreign imports be carried out. then
"the Reichsbank will not be in a position to guarantee the stability of German currency." Dr. Luther is quoted as having said in his message.
While the reports of the Berlin newspapers are confirmed by a reliable
news agency here. the German Cabinet, following a meeting this afternoon
In the presence of the Reichsbank president, issued a statement that "no
information could be given regarding internal correspondence," but that
"endangering of the currency was not maintained and does not exist."
• Although the newspaper reports might have exaggerated so far as the
wording of Dr. Luther's message was concerned, he is known to be a fervent
opponent of the political restrictive measures for foreign importation which
the Van Panel Cabinet plans to introduce to the advantage of domestic
agrarians. Whether these plans will be carried out to the extent originally
intended must seem doubtful, not only in view of Dr. Luther's attitude
but because of the general failure which the German negotiations to this
end have met In a number of European capitals.
A final decision on the matter will not be taken until the German "quota
commission" has returned from Its unsuccessful circle trip. Rumors persist
that either Baron Magnus von Braun. Minister of Agriculture and advocate
of curbing imports, or Hermann Warmbold. Minister of Economics, who
Is known to be objecting to these measures, will fall a victim to this strife
within the Cabinet. Dr. Warmbold's standpoint has been supported daily
by the resolutions or big industrial and commercial organizations protesting
emphatically against the Cabinet's plans for curbing imports.
The appointment of a State Commissioner for the supervision of banks—
a post for which Dr. Hjalmar Schacht, former President of the Reichsbank,
has been mentioned—has been postponed until after the Reichstag elections
on Nov. 6.

An item in the matter appeared in our issue of Oct. 15,
page 2583.
Reich Again Shows Decline in Trade—Export Surplus
Drops from $23,086,000 in August to $19,992,000
in September—Imports Up 83/2%.

Under the above head the New York "Times" reported
the following from Berlin Oct. 15:
Germany's export surplus—essential for the maintenance of foreign debt
service and the Reichsbank's foreign exchange portfolio—went down in
September to 84.000,000 marks (about $19,992,000) from the August
surplus of 97.000.000 marks (about $23.086.000). The decline results from
the fact that whereas exports-444.000.000 marks—rose 16.000,000 marks
above the August exports, imports-360.000,000 marks—advanced 29.000.000 marks above the August figure
Raw materials account for 20 000.000 marks of the imports increase.
While their average price level was above that of August the prices of
nufartures imported were lower in August so that the imports increase
was approximately the same by volume and by value, namely 854%•
The increase in exports shows a rise by volume of 7A %,but by value of
only 3 %,because finished goods,constituting most of the German exports,
have declined still further in price. If this downward tendency continues
toward a further weighting of Germany's trade balance.
it will contribute
Exports to European countries, except Czechoslovakia. increased, but
they declined to transoceanic countries. Imports from Russia and Italy
declined.
The shrinkage of Germany's international trade and still more of her
year's figures. In
export surplus is exhibited by a comparison with last
•




2743

September 1931, exports were 835.000,000 marks and imports were 448.400,000 marks, giving an export surplus of 386.600.000 marks—against the
84.000.000 marks for September of this year.
For the first nine months of 1931 exports totaled 7,233,000.000 marks
and imports 5,269,000,000 marks, the export surplus being 1.964.000.000
marks. For the same period of 1932 exports were 4.291.000.000 marks and
imports 3,444.000,000 marks, the export surplus being 847.000.000 marks.
For he: foreign debt service Germany needs 1.600.000.000 to 1.800,000,000 marks a year. To cover this amount from the export surplus the
surplus at the end of September should stand at 1.200,000,000 to 1,300.000.000 marks.

German Nationalism Extolled by Dr. Schacht—Former
Reichsbank President at International Forum in
Berlin Hails New Spirit.
Dr. Hjalmar Schacht, former President of the Reichsbank,
in an address in Berlin on Oct. 16 at the American Church
on "Germany's Rebirth," said the signs of an awakening
were already visible in the "National movement," and
that a new Germany would rise from the ruins of the old.
This is made known in a Berlin cablegram to the New
York "Times", from which we also quote the flowing:
"No foreigner can understand Germany unless he understands what
'national' means in this connection." he said. "Germany was beaten as
no other nation before. We have suffered and paid. But it is not the lose
of external power or material goods that we protest against.
"What has turned the tide, what has inspired the steadily augmented
national movement is a protest against our inner enslavement. Our honor
has been taken from us—our moral worth, our self-determination, all our
most precious values, the inner light whereby a nation lives and which is
essential for the expression of its creative power.
"Regaining the 'loamy to use and develop Germany's creative forces Is
the aim of German nationalism. That is what I mean by nationalism. It
Is not one that will lead toward war but toward peaceful, spiritual competition that will benefit all nations alike."
The lecture was the first delivered before the International Forum
organized by the American Church here.

German Railways Form Company to Finance Buying.
A cablegram from Berlin Oct. 19 is taken as follows
from the New York "Journal of Commerce":
As part of the program of the Government to increase employment,
the German national railways have organized a special financing institution
known as the Reichsbahn Supply G.m.b.H. The capital of the latter
will be 10,000.000 reichsmarks.
The purpose of the new enterprise is to finance the 180.000.000 retellsmarks of tax credit certificates to which the Reichsbank is entitled under
the emergency relief program of the Von Papen government. This is the
rebate under the transport tax provided for in the emergency decree.
The new company will accept drafts drawn in connection with deliveries
of materials and supplies pending the maturity of the tax certificates in the
years 1934 to 1938. It will discount its paper with the Transport Credit
Bank. while the Reichsbank in turn has agreed to rediscount such acceptances for the latter when called upon to do so.
In addition, the making of Lombard loans against these tax credit certificates created by the Papen plan is being considered by the Reichsbank.

Engineers Ask Role in Shaping Economic
Reconstruction of Germany.
In its issue of Oct. 18 the New York "Times" published
the following from Berlin Oct. 17:
The Congress of the Society of German Engineers, attended by 1,200
members, adopted a resolution to-day demanding that more influence be
accorded engineers in shaping the economic reconstruction of Germany
and protesting against the demagogic vilification of technology.
"From the researches of economists no comprehensive understanding
of economic events can be gained." the resolution says. "It 18 all the more
needful then that the engineer's insight, won from constant inexorable
reality, should be made use of more than has been customary.
"Above all, it is necessary to guard against those irresponsible prophets
(meaning the Nazis) who are talking the German people into a mood
hostile to technology. The distress of these times could not be overcome
at all if people turned their backs on technology.
"This society is Imbued with a sense of patriotic duty to take the most
active share in the German people's struggle to reconstitute its existence."

Call for Restoration of Hohenzollerns at "Resurrection" Meeting in Berlin.
On Oct. 17 Associated Press advices from Berlin said:
A clarion call for the restoration of the Hohenzollerns was sounded tonight at the Sinkagademie at a "resurrection" meeting of the League of the
Upright, which convened for its first session since it was suppressed a decade
ago after Foreign Minister Walther Rathenau had been murdered.
The celebration coincided closely with the birthday of the first wife of
the Kaiser, in whose memory the court preacher, Dr. Walter RichterReichhelm, pronounced an oration. The only Hohenzollern representatives present were the young Princes Oscar and Burchard, sons of the
.
Kaiser's fifth son, Oscar, who was absent because of illness.
The former Crown Prince sent his greetings, as did the ex-Kaiser, who.
in a message from Doom, cited Christ's saying, "Without me ye can do
nothing."
Friedrich Everting, militant Nationalist member of the Reichstag. spoke
on "The living kingdom, the new task of the League of the Upright."
A capacity house of monarchists gave three "hochs" for the exiled Kaiser.

German Transport Credit Bank Pays 7% Dividend.
In its issue of Oct. 17 the New York "Journal of Commerce" published the following from Berlin Oct. 8:
The German Transport Credit Bank of Berlin, has declared a dividend of
7% for the year ended June 30 1932, and has carried a surplus of 189.129
reichsmarks forward. Despite the economic crisis, the company reports that
it has continued to operate profitably as a financing enterprise working in
conjunction with the German National Railways.

2744

Financial Chronicle

The company Invested 2,500,000 reichsmarks during the year in stocks of
new acceptance and discount companies organized jointly by the German
banks to help meet prevailing conditions in the money markets of the Reich.

Karstadt Investors in Germany Will Co-Operate with
Group Here if Equality in Status Is Guaranteed.
A cablegram as follows from Hamburg Oct. 11 is from
the New York "Times":
At a meeting of the German Karstadt dollar bondholders held here to-day.
Dr. Zacharias, head of the German protective committee, defined that
Committee's position relative to the American protective association.
The German committee, he said, was ready to co-operate in principle
with the American bondholders' protective association, but this must be
made conditional on the German receiving "assurance of an independent
co-operation with equal rights at every stage of the negotiations."
While the chairman of the American association had declared its readiness
to co-operate. Dr. Zacharias continued, and to receive suggestions, the
relations of the two groups had not Yet become clarified.
"As long as the guarantees mentioned are not unequivocally granted.
the depositing of bonds at the depositories designated by the American
committee must be considered inadvisable and the German holders should
report on13 to the Hamburg organization," he said. The meeting expressed
Its approval of this position.

Italy and Germany Settle Exchange.
Associated Press accounts from Rome, Italy, Oct. 17
stated:
Italy and Germany reached an agreement to-day to abolish "defenswe"
measures against German exchange restrictions set up by Italy three weeks
ago. The restrictions were in the form of a clearing house to assemole
money and credits in Germany and use them to pay Italian bills for
German exports. In this way, it was thought. Italians would get some of
their "frozen" deposits out of Germany.
A German delegation has been here since Oct. 5. The agreement reached
to-day was expected to end a great deal of ill-feeling which has arisen during
the last fortnight.
The question of quota restrictions on Imports has not yet been settled,
and the conversations will continue in an effort to reach an agreement on
Italian

Oct. 22 1932

Sao Paulo Plans Issue of Bonds.
Associated Press advices from Rio de Janeiro, Oct. 19,
said:
Advices from Sao Paulo to-day said the Government had decreed an
issue of approximately $17,000,000 of bonds for the redemption of the bonds
Issued during the recent rebellion oy the Paulista Government.
Time Limit for Redemption of Sao Paulo Bonds
Extended.
From Sao Paulo (Brazil) the "Wall Street Journal" reports
the following (United Press):
The time limit for redemption of Sao Paulo bonds Issued during the recent
revolt has been extended 75 days. The value of the ponds is 342,566
comm. partly guaranteed oy coffee reqUIsitiOns and partly by cash deposits
n the Bank of Brazil.

Request in Mexican Chamber for Explanation for
Tax Loan Advance by Oil Men.
Associated Press accounts from Mexico City Oct. 19 stated:
Eugenio Mendez, chief of the Vera Cruz Deputies, demanded in the
Chamber of Deupties last night that Secretary of Finance Patti be called
to explain the $10,000,000 tax advance loan American oil companies are
reported to be negotiating with the Government.
He asked that the Deputies be informed why Mexico needed the money

and what "compromises" were being made to obtain It. The request{
was ignored by the Chamber.
From Mexico City the "Wall Street Journal" of Oct. 18
reported the following:
The Standard Oil Co. of New Jersey, Standard 011 Co. of California and
the Aguila (Royal Dutch Shell group) each has advanced $3,000.000 and
the Sinclair interests $1,000,000 of the $10,000.000 loaned to the Government by foreign oil interests. The Government in return for the
loan will eliminate export production tax and will tax undeveloped acreage,

A reference to the oil loan appeared in our issue of Oct. 15,
page 2585.

that problem.
Greek Debt Transfers.
Under provisional agreement with creditors, transfer of
interest on Greek foreign debts will not exceed 30% it is
stated in Paris advices to the "Wall Street Journal" of
Oct. 19.
Morocco Loan.
From the "Wall Street Journal" of Oct. 19 we quote the
following from Paris:
Government of Morocco has announced offering of fr. 1.000,000,000
bonds at 97, bearing a 43.% coupon.
Anglo-South American Bank Said to Have Decided
to Suspend Dividends and to Set Up Special
Reserves.
The following (United Press) from London is from the
"Wall Street Journal" of Oct. 17:
Directors of the Anglo-South American Bank have decided to suspend
dividend payments on both the Class A and B stocks and to set up a reserve
fund of £450,000 for "bad and doubtful debts."
Stockholders at the annual general meeting were told profit of the bank
In the year ended June 30 amounted to £465.892, against £461.383 in the
preceding year. Gross profit last year amounted to £1,866,000 as compared
with £1,920,000 in the previous year.
Directors also authorized the transfer of £1,000,000 from the reserve
fund to a special reserve instituted last year to make provision for depreciation of investments for all known bad debts.
The bank had been affected by conditions in South America, particularly
In Chile, where it had large investments.

Brazil Pays $1,170,637 on Her Foreign Debts—
Remittances to New York and London Bring
Amortization Up to $11,651,000.
From the New York "Times" we take the following
(Associated Press) from Rio De Janeiro (Brazil), Oct. 14:
The Banco do Brazil remitted £317,422 (about $1,079,305) to-day to
London and New York under a foreign dent-funding plan, and £135,688
(about $461.332) to Rothschilds, London,for liquidation of a credit granted
to the Government of former President Washington Luis, overthrown in

1930.

A total of £3,426,797 (about $11,651,000) of the Brazilian foreign debt
•has been amortized thus far this year.
It was announced to-day that rebel currency issued during the civil war
in Sao Paulo would be redeemed with Sao Paulo 30-year Treasury oonds
at 7%, with the Banco do Brazil aiding in the rediscounting.
Minister of Finance Oswald() Aranha said that a 2% gold import tax
would be imposed at Santos, the re-opened port of Sao Paulo.
"We will simply apply to Santos the same tax that other ports Pay,
instead of creating one," he explained.

Brazilian Interest to London.
The London advices to the "Wall Street Journal" of
Oct. 18 state that Rothschilds has received a sum equivalent
to £430,000, representing instalment of the Banco do Brazil
consolidation credit due Oct.23 and all provision.for Brazilian
external debt service due in October.




Policies Upheld by Federal Land Bank in Wichita—
Denies Using Fund to Buy Own Bonds at a Discount Instead of Making Loans to Agriculture.
The Federal Land Bank of Wichita has not used its
available funds to buy its bonds at discounts instead of
making loans to farmers, it is asserted here to-day in an
article entitled "The Facts About the Federal Land Bank,"
appearing in the "Monthly Bulletin" of the bank, according
to Wichita, Bans., advices, Oct. 17, to the "United States
Daily," from which we also quote as follows:
The statement is made in reply to current "misstatements of fact made
with great positiveness by persons who know better, as well as by others
who {{peak entirely without knowledge but with much enthusiasm."
Fewer Foreclosed Loans.
The number of the bank's loans in foreclosure is less than a year ago, and
the member of foreclosed farms owned by the bank is less, according to

the statement.

The statement follows in full text:
The operations of the Federal Land Banks are becoming of increasing
public concern and importance.
Never clearly understood by the people generally, the present situation
has fostered further misunderstandings through misstatements of fact made
with great positiveness by persons who know better, as well as by others
who speak entirely without knowledge but with much enthusiasm.
With many farmers heavily burdened with debts which their creditors
wish to shift to the Federal Land Bank, and others in sound financial
condition but short of cash, the lending operations of the Federal Land
Bank are widely discussed.
Solvent Farmers Eligible.

Farmers who are solvent are eligible borrowers under the provisions of
the Federal Farm Loan Act, and offer adequate security, get the loans for
which they apply, and say nothing.
Creditors of farmers who are insolvent are not eligible borrowers, or do
not offer security sufficient to permit the making of loans to pay off these
creditors, are violently disappointed when the Federal Land Bank declines
to make the loans for which they urged these farmers to apply, and
say much.
It is not possible for facts entirely to overtake misstatements and refute
them. Without any expectation of that being accomplished, the following
facts as to the making of farm loans by the Federal Land Bank of Wichita
are stated so that some of the many who yet retain interest in the truth
may have opportunity to possess It:
The Federal Land Bank of Wichita has not used its available funds to
buy its bonds at discounts instead of making loans to farmers.
Outstanding Bonds Increased.
The total of the Bank's outstanding bonds is $636,800 more than it was•
year ago.
Since Dec. 31 1930 the bank has lent $4,734,600 to 1,425 farmers in
Colorado, Kansas, New Mexico and Oklahoma.
If the Bank had bought its bonds at available discounts with these funds
which were lent, the Bank would have made more net earnings in those 21
months than can be made in 33 years from the loans that were made, if
every loan is a good loan and all installments on all of them are paid
when due.
It was the Bank's obligation to agriculture in this period of depression
to make these loans.
The Bank discharged that obligation and is discharging it now.
In September 1932 the Bank closed loans for $195,200 as compared with
loans for $173,100 closed in September 1981. Loans amounting to 368,700
were closed in the first five days of October 1982.

The Federal Land Bank of Wichita is under no obligation to pay off
other creditors of farmers hopelessly involved in debt, and take over collection jobs which others find impossible.
4

Volume

135

Financial Chronicle

Must Collect on Loans.
The Bank is not disbursing the proceeds of appropriations when making
loans. It is investing funds which the Bank must collect and repay.
Statements continue being made with great abandon to the effect that the
Federal Land Bank is pursuing a ruthless and drastic policy of foreclosure
and is not giving its borrowers a chance to continue in possession of their
farm homes until they have had opportunity to make another crop at better
prices, from the proceeds of which they may pay up their delinquencies.
Creditors of the Bank's delinquent borrowers who have second mortgages
on farms mortgaged as security for the Bank's loans, and have chattel
mortgages on all personal property and growing and harvesting crops of
these borrowers, feel it an outrage that the Bank insists on having a share
of the proceeds of production applied on the delinquent obligations of the
Bank's borrowers. And they talk, loud and long.
Here are the facts as to foreclosures of mortgages by the Federal Land
Bank of Wichita:
On Sept. 30 1932 the total number of the Bank's loans in foreclosure
was 12% less than the number in foreclosure a year ago.
Improvement Recorded.
One in each 28 delinquent loans was in foreclosure a year ago.
Only one in each 97 delinquent loans is in foreclosure now.
The number of foreclosed farms owned by the Federal Land Bank of
Wichita is 3% leas now than it was a year ago.
These statements are so utterly at variance from much which has teen
printed and spoken by the uninformed, misinformed, and well•infortned
with ulterior purposes which they hope may be served by misrepresentation,
that they may seem incredible to some.
But they are the facts about the Federal Land Bank of Wichita.

Agricultural Credit Corporation Not Taxable
in Oklahoma.
The following, from Oklahoma City, Oct. 15, is from the
"United States Daily":
An Agricultural Credit Corporation to be established in Oklahoma City
by the Reconstruction Finance Corporation will not be subject to State
tax, according to a ruling given by J. Berry Xing, Attorney-General.
The opinion was requested by the Assistant Secretary of State when
application was made for a State license to operate such a Corporation.
Capital of the bank will be not less than $3,000,000, according to
the
application, and "is subscribed and owned by the United States of
America;
and all of its obligations are under terms of the Act, wholly and unconditionally guaranteed as to interest and principal by the United States."

Views on Action of Department of Agriculture in
Extending Crop Production Loans in Cotton States
with Cotton as Collateral on Basis of Nine Cents
a Pound.
Conflicting views as to the effect on the cotton situation
of the Department of Agriculture's announcement (referred
to in our issue of Oct. 8, page 2418) that cotton will be
accepted for collateral for seed loans at nine cents a pound,
were voiced in Memphis on Oct. 6, according to the "Commercial-Appeal" of that city, from which we also quote:

Charles G. Henry, General Manager of the Mid-South
Cotton Growers'
Association. believes that the advance will serve to take
1.000,000 bales off
the market until spring.
Frank G. Barton, President of the Memphis Cotton
Exchange, holds no
hope that taking a million bales off the market would in any way
affect
the Price.
"The action of the Secretary of Agriculture in waiving present
collection
of the second mortgage on this year's crop incurred by last season's seed
loan borrowers, will automatically keep 400,000 bales of cotton
from the
1931-32 crop off the market until next spring, and in addition the
collateral
allowance to borrowers. of 9 cents in this territory and 93i
canto in the
Atlantic mill States, will probably prevent the sale at present
prices of
600,000 bales from this year's crop."
Holding to Increase.
If Mr. Henry's prediction turns out to be correct, the total holdings of
Department of Agriculture, the Farm Board's stabilization
the
corporation and the American Cotton Co-operative Association will be increased
to 3.750,000 bales.
"We had to argue considerably to persuade Secretary Hyde to make a
collateral allowance of 9 cents which is 2 to 2% cents more than the
actual
value of the cotton." said Mr. Henry.
"The allowance is frankly an emergency measure, dictated by the need
of the farmers rather than by strict good business. The situation is that
cotton is 'frozen' like the assets of certain big business concerns were until
the Reconstruction Finance Corporation was organized to thaw them out.
"Spot cotton is worth about 6% cents, only a cent or 1Si cents better
than at this time last year and the crop is off 40%. In the delta regions
7
the situation is worse—while %-inch cotton is selling for a little bit more
than last year, the basis for the longer staples is off an average of 100 points.
"something had to be done to save the farmer who had borrowed from
being wiped out, and taking another million bales off the market, in addition to giving him a high collateral value, will help."
-cent co lateral value is for u-inch middling cotton—with proThe 9
portionate premiums and discounts for the other grades and staples.
A contrasting view of the 9
-cent collateral policy was expressed by
Mr. Barton. President of the Memphis Cotton Exchange, speaking, however, for himself alone.
Will Not Aid Price
Mr. Barton said he did not believe taking another million bales off the
would affect the price much, one way or the other and that he
market
considered it unfair for the Government to give the marginal cotton farmer
an arbitrary collateral value for his cotton two cents above the market
Price'
"The planter who is solvent and has to finance himself has to cover
is lines using his cotton for collateral at less than the market price. It's
not far to give the man whose past record as a farmer does not entitle him
-o private credit such a great credit advantage from the public treasury."
t
Applicants for seed and crop production loans must state in their applidons that they cannot get credit from private sources and as the max:lloan given is $400 the government source of credit is of little value
ta big planters.
If the loans are all eventually repaid, "according to Hoyle," the collateral allowance will be of little importance, but the cotton traders us
general believe—rather cynically—that the small farmers put up just

c:um




2745

enough cotton with the crop loan offices to cover their loans at the inflated collateral value and sell the rest for cash.
Eventually, they say, the government may be forced to sell the cotton
for less than the collateral allowance and will lose heavily, while it will
be practically impossible to come back on the small farmers for the balance
with any success.

From the New Orleans "Times-Picayune" of Oct. 6 we
take the following:
Granting by the United States department of agriculture Wednesday
of a moratorium on seed loans to cotton farmers means that more than
$10.000.000 additional cash will be available to Southern cotton growers,
according to a statement issued by the American Cotton Co-Operative
Association here.
Officials of the A. C. C.A., the statement reads, spent the past week in
Washington urging the plan under which growers now may put up their
cotton on a 9
-cent a pound basis and extend their loans instead of being
forced to sell the product to pay off the loans on the present market of
approximately 63 cents.
In addition, it was stated. 900.000 bales will be removed from the market
under the new arrangement, which provides that the cotton placed as
security shall be held until March 1.
Sales to Aid.
"Present prices would have required 1,250.000 bales of cotton to pay
off the $40.000,000 loaned Southern farmers on crop production." the
-cent basis. 900.000 bales will be
A. C. C. A. statement said. "On the 9
set aside as security, leaving more than 300.000 bales to be sold at $30 to
$35 each. Thus,more than $10,000.000 will be made available which,except
for the timely extension of loans, would have been lost."
The holding movement, which has strengthened the market materially,
it was pointed out, will be given added power through the removal of the
900.000 bales.
U. B. Blalock, Raleigh. N. C., President of the A. C. C. A.. and C. 0.
Moser of New Orleans, Vice-President, who worked for the extension plan
In Washington, notified the association's headquarters by long-disatnce
telephone Wednesday that their task had been completed successfully.
According to Grade,
Credit will be given for superior grade and staple in valuing cotton
to secure the loans, and inferior grade and staple will be penalized, it was
stated. Cotton may be classed for this purpose at any of the co-operative
classing offices at more than a hundred points In the cotton States.
Under the new arrangement, a farmer owing $100 to $135 on the Government loans would turn over three bales of cotton, which would be accepted
on the basis of 9 cents a pound, or about $45 a bale, and would be held
subject to the grower's orders. When sold, anything above the amount
of the loan and carrying charges would be returned to the grower.
-cent valuation is for middling white cotton of seven-eights inch
The 9
staple. Differences "on" and "off" this classification were announced
as follows: Middling three-fourths. 60 off; middling 13-16ths inch. 30 off;
middling 15-16ths inch, 25 on; middling one inch, 55 on; middling 1 1-16
inch. 85 on; strict middling seven-eighths inch. 25 on; strict low middling
seven-eighths inch. 30 off, low middling seven-eighths inch, 75 off, and
strict good ordinary seven-eighths inch. 125 off.

Questionnaire of New York Stock Exchange Calling
-Annual Condition of Members, Revised
For Semi
to Include Data Additional to That Previously
Required—Reported Designed to Maintain Closer
Scrutiny of Margins of Customers' Accounts.
The questionnaire of the New York Stock Exchange issued
semi-annually to ascertain the financial condition of brokerage firms, had been revised to provide a closer scrutiny of
the margins of customers' accounts, it was noted in the
New York "Times" of Oct. 19, which said:
The revised questionna.re goes into the position of customers' accounts
in great detail. Among the new questions Is one that reflects the Exchange's
ruling of last June that 10 points was the minimum adequate margin on•
short sale. The questionnaire also Indicates close supervision of debit
balances of customers.
The details asked for in the new questionnaire concerning the position
of customers are designed to safeguard brokerage firms against granting
excessive margins.

The questionnaire follows:
NEW YORK STOCK EXCHANGE.
Questionnaire for Registered Member Firms,
1. Total Bank Balances.—Enter separately, amount of contribution to
clearing fund of Stock Clearing Corporatin, and deposits with trust companies to guarantee cotton contracts, Am.
2. Total Money Borrowed, and Total Value of Collateral.—Enter
separately, accounts carried for your firm by other banking or brokerage
houses, showing debit and credit money balances and market value of
securities both long and short. State ledger balances and market value of
securities In the following accounts: Stocks borrowed. Stock loaned. Failed
to deliver. Failed to receive.
3. Market Value of Negotiable Securities in Box and Transfer Books.—
Classify as follows: Listed on New York Stock Exchange; market value $5
per share or over: market value under $5 per share. Not listed on New
York Stock Exchange; market value $5 per share or over; market value
under $5 per share. Do not include the value of any securities in "safe
keeping," nor the value of any securities carried as "long" if paid for in full
by customers.
4. Customers' Accounts. (All accounts for others than members of the
firm.)—(a) Ledger debit balances in customers' accounts—Classify as
follows:
I.—Total of debit balances in accounts which in each case have securities
with market value equal to or more than 125% of the debit balance. (State
total market value of securities.)
II.—Total of debit balances in accounts which in each case have securities
with market value of 100% or more but less than 125% of the debit balance.
(State total market value of securities.)
III.—Total of debit balances in accounts in which the market value of
securities is less than the debit balance in each case, (State total market
value of securities.)
IV.—Total of wholly unsecured debit balances.
(b) Ledger Credit Balances in Customers' Accounts—Classify as follows:
I.—Total of credit balances in accounts having "short" positions in which
the "equity" in each case is equal to or greater than 10 points on the number

Financial Chronicle

2746

of shares "short." (State total market value required to cover "short"
positions.)
II.—Total of credit balances in accounts having "short" positions in
which the "equity" in each case is less than 10 points on the number of
shares "short." (State total market value required to cover "short" positions
and number of shares "short.")
III.—Total of credit balances in accounts having "short" positions in
which in each case the "cover" value is greater than the credit. (State total
market value required to cover "short" positions and the number of shares
"short.")
IV.—Total of "free" credit balances.
If both "long" and "short" positions are carried in one account or if such
positions are carried for any customer in more than one account the ledger
balance (or net of balances) should be included in its proper classification
with the total market value of"long" and the total market value of"short"
securities given where only "long" or "short" values are called for above.
Customers' accounts with commodity positions ("spot" or "future")
should be so stated as to indicate margin condition with the amount of any
"undermargined" and (or) "deficit" condition stated.
Customers' accounts with no ledger balance but with open commitments, contracts or positions should be stated separately in such manner
as to indicate clearly whether or not the item is in "equity" or "deficit."
Do not include in answers to Question 4 the value of any securities in
"safe keeping" nor the value of any securities carried as "long" if paid for
in full by customers.
5.—Partners' Accounts. (Including capital accounts.)—Total debit
balances and total credit balances, also total value of long securities and
total value of short securities in the following accounts: (a) Partners'
individual accounts. (b) Firm investments and trading accounts. (c) Underwritings and syndicate participation accounts. (d) Capital accounts.
(State separately any amounts or valuations requested herein resulting
from borrowings under subordination agreements or otherwise.)
6. Profit and Loss Accounts.—Surplus and undivided profits, including
balances in income and expense accounts (commission, interest, expenses,
&c.) which will eventually be closed by journalizing to a profit and loss
account.
Note.—This question may be answered by giving one net amount,specifying debit or credit.
7.—Other Accounts.—State details (ledger balances and value of securities) of any accounts which have not been included in one of the answers
to the above questions, entering each account separately. These accounts
will include Exchange Seats, office furniture and other fixed assets, If
carried on the books, revenue stamp account, dividend account, &c.
8. What practice is followed by your firm in complying with that part of
Chapter XII, Sectioi 4, of the Rules adopted by the Governing Committee, pursuant to the Constitution, which declares that—"An agreement
between a member and a customer . . . does not justify the member in
pledging or loaning more of such securities than Is fair and reasonable in
view of the Indebtedness of said customer to said member."
9. Contingent Liabilities.—Give brief description, in memorandum form,
of any contingent liabilities of the firm, that are not included in ledger
account. Items of this nature may include: "When Issued" contracts;
(total commitments of customers) (total commitments offirm and partners).
Accommodation endorsements. Endorsements of puts and calls. Rediscounted notes. Participation in any proposition subject to future demands.
10. Partners' Accounts in Other Offices.—Have any general or special
partners of your firm, individually or collectively, any security or commodity accounts or commitments carried by other banking or brokerage
houses, which are not reflected on your books?
If so, state debit and credit balances. value of securities long and short,
and equity or deficit in open commodity contracts.
General Instructions.
Do Not Place Your Name on the Answers You Submit.
All answers must be prepared as of the same date (of which you have
received notice), and be attested by each member of your firm on the form
enclosed.
In stating ledger balances, specify debit or credit, and on security valuations, state whether long or short.
Retain a copy of your answers and keep all working papers and memoranda covering the answer and the one previous to it, for audit and review.
Send answers by registered mall in enclosed envelope addressed to
Committee on Business Conduct, New York Stock Exchange.

Yearly Figures of New York Clearing House Association—Mortimer N. Buckner Re-elected President—
Benjamin Strong Jr. Succeeds Charles W. Weston
as Secretary—G. W. Davison Chairman Clearing
House Committee—Total Transactions This Year
$205,840,923,153, Compared with $325,518,628,376
Last Year.
The re-election of Mortimer N. Buckner as President of
the New York Clearing House Association occurred at the
annual meeting of the Clearing House on Oct. 4. Mr.Buckner is Chairman of the board of trustees of the New York
Trust Co. A new Secretary of the Clearing House Association was elected at this week's annual meeting in the person
of Benjamin N. Strong Jr., Vice-President of the Bank of
Manhattan Trust Co. Mr. Strong, as Secretary, succeeds
Charles W. Weston, Vice-President of the Manufacturers'
Trust Co. Clarence E. Bacon continues as Manager of
the Clearing House and Edward L. Beck was re-elected as
Assistant Manager, and Charles A. Hanna continues as
Examiner. George W. Davison, President of the Central
Hanover Bank & Trust Co., was elected Chairman of the
Clearing House Committee, succeeding Charles S. McCain,
Chairman of the board of the Chase National Bank. The
full membership of the Clearing House Committee is as
follows:
George W. Davison, Chairman; President Central Hanover Bank &
Trust Co.
Herbert P. Howell, President. Commercial National Bank & Trust Co.
Gordon S. Rentschler, President, National City Bank.
Percy H. Johnston, President, Chemical Bank & Trust Co.
William 0. Potter, President, Guaranty Trust Co.




Oct. 22

1932

The report indicates that the total Clearing House transactions for the year were $205,840,923,153, this comparing
with $325,518,628,376 for the previous year. The total
transactions since the organization of the Clearing House
79 years ago amount to $7,613,373,223.890.
The Clearing House makes available the following extracts from the Manager's annual report for the year ended
Sept. 30 1932:
The Clearing House transactions for the year have
been as follows:
Exchanges
$177.306.295.651.48
Balances
28.534.627.501.13
Total transactions
The average daily transactions:
Exchanges
Balances

S205,840,923,152.61
*583.244.393.59
93,863,906.25

Total
$677,108,299.84
Total transactions since organization of Clearing
.House (79 years):
Exchanges
$7,005,530,919,557.22
Balances
607.842.304.332.97
Total
$7,613,373.223,890.19
Largest exchanges on any one day during the year
(Oct. 2 1931)
$1,428,231,746.0
0
Largest balances on any one day during the year
(Nov. 4 1931)
189,450,188.12
Largest transactions on any one day during the year
(Oct. 2 1931)
1,580.349,364.75
Smallest exchanges on any one day during the year
(Aug. 29 1932)
197.074,118.68
Smallest balances on any one day during the year
(Aug. 29 1932)
40,140,932.44
Smallest transactions on any one day during the year
(Aug. 29 1932)
237.215,051.12
Largest day's transactions on record (Oct. 31 1929)—
Exchanges
$3,853,040.114.48
Balances
378.201.061.08
Total transactions
$4.231.241.175.56
Largest exchanges (Oct. 31 1929)
$3.853.040,114.48
Largest balances (Oct. 30 1929)
432,909,546.73
Transactions of the Federal Reserve Bank ofNew York:
Debit exchanges
$2.122.932,873.98
Credit exchanges
20,931.216,350.38
Credit balances
18,808.303.476.40
The Association is now composed of 6 National banks. 1 State bank and
14 trust companies. The Federal Reserve Bank of New York and the
Clearing House City Collection Department also make exchanges at the
Clearing House. making 23 institutions clearing direct.
There are 4 banks and trust companies in the city and vicinity, not members of the Association, that make their exchanges through banks that are
members, in accordance with constitutional provisions.

Number of Branch Offices of New York Stock Exchange
Members Increased from Sept. 1 to Oct. 1.
A second consecutive increase in the number of branch
offices of members of the New York Stock Exchange was
reported on Oct. 1. The October "Monthly Bulletin" of
the Exchange reported 1,178 branch offices on that date,
an increase of 18 over those open on Sept. 1. The number
of branch offices open on Sept. 1, which totaled 1,160, was
the first increase since Aug. 1 1931, at which time there
were 1,483 branches.
Percy H. Johnston of Chemical Bank & Trust Co
Returns from European Trip --Views of Conditions
Abroad.
Percy H. Johnston, President of the Chemical Bank &
Turst Co. of New York returned Oct. 17 on the SS. Bremen
of the North German Lloyd Line from a six weeks' business.
trip to Europe.
He found conditions somewhat improved in Germany,
with much improvement in sentiment in that country.
Conditions also seemed better in England and Czechoslovakia. In Austria and Hungary there are no signs of improvement. France seemed to be getting along in a very
good way with no outward evidence of unemployment or
distress
Annual Report of President Julian of New York Rubber
Exchange—Volume of Trading 258,2023/ Long
Tons—Rubber Restrictions.
An upward turn in rubber prices, accompanied by an
expanded volume of business, followed a decline to record
low levels during the year ended Aug. 31 1932, says John
Julian, President of the Rubber Exchange of New York, in
his annual report to members presented at the ennual meeting of the Exchange on Oct. 12. The report says:
General business conditions continued unfavorable during mast of the
past year, and further declines in crude rubber prices were made; a low
for all times being reached on June 28 1932, when No. 1 Standard contract
sold at 2.53c. for July delivery. However, in July there was an upward
turn and the volume of trading on the Exchange increased; the turnover
In August being 61,980 tone, the largest for any month since March 1929,

Volume 135

Financial Chronicle

and 78% of the turnover in March 1928, which was the most active month
in the history of the Exchange.
The matter of restriction of rubber output continued to be the subject
of conferences between British and Dutch interests and their governments.
However, on March 19 1932 an official statement by representatives of the
British and Netherlands governments announced that after a careful review
of the situation the British and Dutch governments had been forced to the
conclusion that under existing conditions it was impossible to frame and
operate an international scheme which would guarantee effective regulation
of the production and export of rubber. Consequently there still is a
free and open market with respect to rubber.
Production and shipments of the British and Dutch Colonies were maintained at practically the former rates until the first half of 1932, when
the native production in the Dutch East Indies fell off about 43% compared
with the first half of 1931, while the decrease in native production In
the British sections was less marked.
Estate production and shipments in British Malaya and the Dutch East
Indies show few signs of reaction since abandonment of the restriction
proposals. Although tapping on large areas has been stopped, the
exports
of estate rubber from the Dutch East Indies remained at about the same
level as in 1931 until August, while in British Malaya the estate production was slightly above the 1931 level, which indicates more intensive
tapping on the remaining tappable areas.
Consumption in the United States declined further during
the past 12
months, whereas the total foreign consumption during that period
somewhat
exceeded previous levels.
The principal world stocks of crude rubber increased about 94,000
tons
Irons Aug. 31 1931 to May 31 1932. Since the latter date, there was
a
decrease up to the end of July, with a slight upward turn
in August, and
at Aug. 31 1932 the principal world stocks were about 46,000 tons
higher
than at Aug. 81 1931.

Volume of trading on the Exchange during the year
amounted to 258.202% long tons, of which 234.920 long
tons
were transacted in the No. 1 Standard contract, 20.500 tons
In the No. 1B Standard, 50 tons in the AB contracts, 1.610
tons in the A contract, and 1,122% tons in the old A contract.
On the basis of the Standard contracts, prices fluctuated
between a high of 5.97c., reached on Sept. 11 1931,
and a
low of 2.53c. paid on June 28 1932. During the year 13
applicants were elected to Tembership.
Downey & Co., Philadelphia, Suspended
from
Philadelphia Stock Exchange for Insolvency.
Downey & Co., an investment firm with offices
in the
Fidelity-Philadelphia Building, Philadelphia, Pa., on
was suspended for insolvency by the Philadelph Oct. 13
ia Stock
Exchange, according to the Philadelphia
"Record" of
Oct. 14.
Jeremiah M.Downey,floor member and sole member
of the
firm, was admitted to the Exchange in November
1928,
stated.
it was
Volume of Commercial Paper Outstanding as
Reported
to New York Federal Reserve Bank
$117,900,000 on
Sept. 30 as Compared with $108,100,000 on
Aug. 31.
The New York Federal Reserve Bank released
the following on Oct. 19:
Reports received by this bank from commercial
paper dealers show a
total of $117.900,000 of open market commercial
paper outstanding on
Sept. 30 1932.

On Aug. 31 the volume of commercial paper outstandi
ng
was reported by the Reserve Bank at $108,100,000. Below
we furnish a record of the figures since they were first reported by the Bank on Oct. 311931:
1932.
Sept.30
Aug. 31
July 31
June 30
1
tp 31
aas

magi 36

$117,900.000
108,100.000
100.400.000
103.300,000
11.100.000
107.800,000
105,606.000

1932.
Feb. 29
Jan. 31
Dec. 31
Nov.30
Oct. 31

$102,818,000
107,902,000
1931.
117.714.784
173.684.384
210.000.000

First Increase During 1932 Reported in Volume of
Outstanding Bankers' Acceptances—Total Sept.
30
$996,365,078—Increase of $1,723,339 Compared With
August 31.
After a long period of declining bankers acceptance volume,
the total of bills outstanding, as shown by the survey of the
American Acceptance Council as of Sept. 30, released
Oct. 20, increased $1,723,339 over the volume outstanding
as of the end of August. Robert H. Bean, Executive Secretary, American Acceptance Council, in reporting this added:
While this amount of Increase is relatively unimportant when compared
with the total volume of bills it does indicate the beginning of a seasonal
use of acceptance credits for crop financing.
The total volume outstanding at the time of this survey was $683,189.146
which is $313,175,932 below the figures for Sept. 30 1931.
An analysis of the classified totals shows the greatest gain to be In
acceptance credits used to finance the storage of goods and commodities
in domestic warehouses. This amount increased from $175,160.333 at the
end of August to 8197,657,284 at the end of September. a gain of $22,This of course is a purely seasonal performance as agricultural
496,
951*
products are placed in warehouses subject to trade demand during the
remainder of the year.
Acceptances created to finance exports advanced in volume $4.477.149,
•he first increase in export acceptance credits for several months,
w offsetting these gains in export and warehouse credits was a
reduction
$16,583,337 in the volume of acceptances based on goods stored in or
of




2747

shipped between foreign countries. This is the second consecutive substantial reduction in the volume of foreign bills, bringing the total down
$30,839,496 since July 30 1932.
Bankers acceptances for the purpose of financing imports went off
$2,845.041, domestic shipment acceptances decline 82.487,991 and acceptances for the purpose of creating dollar exchange went off $3,334.392.
It is particularly encouraging to note that the volume of "foreign bills"
generally referred to as German credits has now been reduced $105,000.000
since Sept. 30 1931 and is now considerably less than half the peak volume
for this type of business.
Geographically, the current survey reveals only very slight
changes in
the totals reported from the 12 Federal Reserve Districts. The New York
Federal Reserve District reported a gain of $1,100,000. As a result of
the lessened acceptance activity in other districts, in recent months
the
New York territory now has 8547,152.785 out of a total for the entire
country of $683.000,000. This is compared with 3780.000.000 and $996.000.000 at the end of September 1931 thus further emphasizing the concentration of the bill business in the New York District.
Not in the history of acceptance financing has it been possible for
producers of commodities in the crop moving time of the year to finance
their business at so low a cost as at present. The recent reduction in bankers
bills to %%—li% up to 90 days—the lowest rate on record—makes it
possible to arrange crop financing at previously unheard of rates.
The condition of the bill market so far as it affects the supply and demand
continues unchanged with dealers portfolios at record low levels.
The holding of bills by the large accepting banks continues to account
for nearly 80% of all created bills. As of the end of September, accepting
banks were holding of their own or other banks bills a total of $519,209,122.
This amount is $54,000,000 less than the total held by these banks as of
the end of the previous month. Accepting banks of the Second Federal
Reserve District alone held $392,778,816 at the last month end.

Detailed statistics are made available as follows by
Mr. Bean:
TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS.
Federal Reserve District.

Sept. 30 1932.

1
2
3
4
5
6
7
8
9
10
11
12

Aug. 31 1932. Sept. 30 1931.

539.587.527
547.152,785
12,271.193
10.175.394
1.359.100
6,786,035
39,521.697
1,346.989
2,309.424
1,200 000
1,605,189
19,873.813

881.273.197
780,785.075
17.667.152
19.262.532
3.655.470
7.110.001
50,708.274
1.831,182
2,678.216
600.000
1.555.594
29,238,385

$683,189,146

Grand total
Decreaseinerasmaa

841.728.586
546,051.620
11 191.101
10.330.556
1,418 546
5,447.886
40,727.942
1,343.035
1.662 487
1,200.000
998.154
19.365.894
$681,465,807

5996.365,078
313,175,932

1.723.339

CLASSIFIED ACCORDING TO NATURE OF CREDIT.
Sept. 30 1932.
Imports
Exports
Domestic shipments
Domestic warehouse credits
Dollar exchange
Based on goods stored in or shipped

573,106.387
156,190,631
14,392.371
197,657.234
7,952.554

Aug. 31 1932. Sept. 301931.
575,951,428
151,713,482
16.880,362
175,160.333
11,286,946

5173,681.770
257.395.744
27.689.635
162.478.377
36,714.277

Nat.:man Meader. nnlin.Mesa
TAR RRQ 010
250 475 2rift
RaR 4f15 275
CURRENT MARKET QUOTATIONS ON PRIME BANKERS'ACCEPTANCES
OCT. 19 1932.

Days—
30
60
90

Dealers'
Dealers'
Buying Rate. Selling Rate.
%
Si
Si

3.4
Si
X

Days—
120
150
180

Dealers'
Dealers'
Buying Rate. Selling Rate.
X
1
1

H
X
'A

Liquid Position of New York City Banks at End of
September—Highest During Entire Depression,
According to Hornblower & Weeks.
The liquid position of New York City banks as of Sept. 30
was 58%, based upon the ratio of cash and United States
Government securities to total deposits, the highest ratio
of liquidity reported during the entire depression, according
to an analysis prepared by Hornblower & Weeks, members
of the New York Stock Exchange. The firm says:

Since July the deposits of 15 leading banks have .ncreased over
$500,000,000. As of June 30 combined deposits of these banks were
$6.929,765.000, as compared with $7,430,374,000 on Sept. 30. Published weekly
Clearing House figures indicate that the rise in deposits since Sept.
30 has
continued. Largest increases were: Chase, up $120 millions:
National
City. $61 millions: Guaranty Trust. $74 millions; First
National. $58
millions; Manhattan Trust, $54 millions: Bankers Trust,
$50 millions:
Central Hanover, $30 millions; Chemical Bank, $33
millions.
Capital.

Surplus and
Undle.Prof
.

Deposits. Liquidity.
$
s
s
%
25,000,000 77,007,000 598,229,000
70
6,000,000 9,134,000 109,457,000
55
21,000.000 70,119,000 560,525,000
63
148,000.000 118.335,000 1.420,221,000
44
21,000,000 45,641,000 308,760,000
60
15,000,000 22,740,000 219,717,000
62
6,000,000 3,268,000
61.948,000
45
10,000.000 85,527,000 383,200,000
69
90,000,000 180.830,000 1,002,027,000
67
50,000,000 75,148,000 398,249,000
67
32,935.000 22,126,000 374,358,000
40
b40,395,000 75,078,000 a371,317,000
52
124,000.000 82,554.000 1,275,275,000
50
12,500,000 22,093,000 255,714.000
54
8,250,000 4.385.000
91,377.000
70
Total
610.050,000 893.985.000 7.430.374.000
58
a Manhattan Trust Co. deposits. b Manhattan
Co. figures as of June 30.
Despite unprecedented liquidity, bank earnings
in the third quarter were
well maintained, and dividends were covered
by a fair margin in most
Instances. At present levels the income
yield ranges from 6.90% to
4.16%, the average being 5.47%.
As of Sept. 30 1932—
Bankers
Bank of New York
Central Hanover
Chase
Chemical
Corn Exchange
Empire
First National
Guaranty
Irving
Manufacturers
Manhattan
CItY
New York Trust
Public

2748

Financial Chronicle

Young Committee Holds Meeting at New York Federal
Reserve Bank.

The committee of 12 bankers and industrialists headed by
Owen D. Young met at the Federal Reserve Bank of New
York on Oct. 18. From the New York "Journal of Commerce" we quote:
It was the first meeting of the full committee since early summer.
Eugene Meyer. Governor of the Federal Reserve Board, was In New York
this week but no statement was issued as to whether or not he attended the
meeting. It was believed that Walter Teagle of the Standard Oil Co. of
New Jersey outlined the progress of his Share-the-Work movement and that
a report was made on the recent questionnaire to large companies on their
contemplated capital expenditures. The Standard Oil Co. of New Jersey
and American Telephone & Telegraph already reported on this point.

Tenders of $252,465,000 Received to Offering of $75,000,-Day Treasury Bills Dated Oct. 19—Bids Ac000 91
cepted $75,110,000—Average Rate 0.14—New Low
Price.

A record low interest rate (0.14%) is recorded in the sale
of the 91-day Treasury bills dated Oct. 19, offered to the

amount of $75,000.000 or thereabouts, an item regarding
which appeared in our issue of Oct. 15. p. 2593. Tenders of
$252,465,000 were received for the issue, and the amount
of bids accepted was $75.110,000. The Treasury Department's announcement on Oct. 18 of the result of the offering
follows:
Secretary of the Treasury Mills announced to-day that the tenders for
V5.000.000. Or thereabouts. of 91-day Treasury bills, dated Oct. 19 1932.
and maturing Jan. 18 1933. which were offered on Oct. 13. were opened at
the Federal Reserve Banks on Oct. 17.
The total amount applied for was 1252.465.000. The highest bid made
was 99.967. equivalent to an Interest rate of about 0.13% on an annual
basis. The lowest bid accepted was 99.960.equivalent to an interest rate of
about 0.16% on an annual basis. Only part of the amount bid for at the
latter price was accepted. The total amount of bids accepted was $75,110.000. The average price of Treasury bills to be issued is 99.965. The
average rate on a bank discount bash; is about 0.14%

The previous low record (0.19%) was noted in our issue of
Oct. 15 (p. 2593) this having been the average price paid for
-day Treasury bills offered to the amount of $75,000,000 or
92
thereabouts.
New Offering of $80,000,000 91-Day Treasury Bills
Dated Oct. 26.

A new offering of 91-day Treasury bills, to the amount of
$80,000,000 or thereabouts, was announced on Oct. 19 by
Secretary of the Treasury Ogden L. Mills. The new bills
(which will meet a maturing issue of $83,317,000) will be
dated Oct. 26 1932 and will mature on Jan. 25 1933. The
face amount will be payable oil the maturity date without
Interest. The bills are sold on a discount basis to the highest
bidders. Tenders will be received for the new issue at the
Federal Reserve Banks or their branches up to 2 p. m.,
Eastern Standard Time on Monday, Oct. 24. The announcement of Secretary Mills says in part:
They 'the bills] will be issued in bearer form only, and in amounts or
denominations of 51.000, 510,000. $100,000, 1500.000. and $1.000,000
(maturity value).
No tender for an amount less than $1,000 will be considered. Each
tender must be In multiples of $1.000. The price offered must be expressed
on the basis of 100. with not more than three decimal places, e.g., 99,125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit
of 10% of the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guarantee of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on Oct. 24 1932,
all tenders received at the Federal Reserve Banks or branches thereof up to
the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning. The Secretary of the Treasury expressly reserves the right to
reject any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action In any such respect shall be final. Those sub
mitting tenders will be advised of the acceptance or rejection thereof.
Payment at the price offered for Treasury bills allotted must be made at the
Federal Reserve Banks in cash or other immediately available funds on
Oct. 26 1932.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and Inheritance taxes. No loss from the sale or other
disposition of the Treasury bills shall be allowed as a deduction, or otherwise recognized, for the purposes of any tax now or hereafter imposed by
he United States or any of its possessions.

Veterans' Cost Chart Comparing United States Expenditures With Those of Allies.

From Washington a dispatch, Oct. 15, to the New York
"Times" said:
Visitors at the Capitol since Congress adjourned in July have shown
more Interest In a chart setting forth the comparative costs of veterans'
benefits in the United States and Allied nations, than they have in the

imposing statues and paintings of former members of Congress which
adorn the corridors of the Capitol.
closing days of the last
This chart was prepared hurriedly during the
Nebraska, who used
Congressional session for Representative Simmons of




Oct. 22 1932

It In connection with opposition voiced against increased benefits for the
American war veterans.
The large board was inadvertently left in the lobby of the House and
thus far caretakers have shown no Inclination to remove it.
Almost invariably when a group of visitors Is shown about the Capitol.
one or more persons will draw aside and study the figures, some taking
out pencil and paper to copy off data.
The figures showing the cost of the American veteran as compared with
those of other Powers engaged in the World War are as follows:
Dead and
Men
Mobilized. Wounded.
Country—
322,497
4.757.000
United States
13,000,000 6.111.862
Germany
6.600.000 3,000.000
Great Britain
8,410,000 5,623.000
France
5,615.000 1,597.000
Italy
232.045
619,636
Canada
Per Cantle
Per Capita
Based on
Men
This Year's
Dead and
Mobilised.
Relief
Wounded.
Country—
ized.
Bill.
$2,668
United States
$180
$860,365,000
48
Germany
22
298.690.000
as
Great Britain
26
174.802,060
50
France
84
286.722.000
43
Italy
12
69,853,300
263
Canada
98
61.123,000

Representatives of-Bonus Expeditionary Force Received
at White House by President Hoover—Petition of
Censure for Eviction of Veterans Last Summer
-Gen. Hines.
Presented to Brig.
A delegation representing the Bonus Expeditionary Force,

bearing a petition of censure for the forcible eiction of
veterans last summer and presenting some new demands,
was received by President Hoover at the White House on
Oct. 13. With regard thereto we quote the following from a
Washington dispatch (Oct. 13) to the New York "Times":
The petition was not handed to the President, as was originally planned.
but to Brig. Gen. Frank T. Hines, administrator of veterans' affairs, who
was In Mr. Hoover's private office during the delegation's visit, Mr.Hines
promised to give the document his consideration.
The petition demanded bedding and a daily ration of 15 cents a day for
unemployed veterans, as well as cash payment of adjusted compensation
certificates.
Heading the veterans' delegation of 12. Including two women. was Hoke
Smith. National Field Commander of the B. E. F., who on leaving the
White House remarked that his party had been "shown every courtesy."
lie was clearly pleased by the way they had been received.
Mr. Hoover took occasion during the reception of the visitors to reiterate
his opposition to "some" of the B. E. F. objectives and to express pleasure
at their determination to present future petitions through appropriate
channels rather than by such means as a new march on Washington. He
told them also that, as as President of the United States, he could not
accept a petition censuring that officer.
Tells of Conference.
Walter H. Newton. one of the Presidential secretaries, related for the
White House what happened at the conference. He said:
"Commander Smith stated to the President that they wished to par
their respects, tender their support, pledge their loyalty to the President
and the Constitution of the United States.
"The President expressed his pleasure at that statement and to'd them
that they would recognize that he disagreed with the point of view of
some of their objectives: that he had to consider 25.000.000 families in the
United States In these times of distress as well as members of special groups.
but that he was glad they had determined to present their propagate to the
Congress. through the appropriate committees, rather than to repeat the
scenes that occurred in Washington during last spring and early summer.
"The President said he was pleased that they were not presenting him
with the petition which had been reported in the press, as It contained
statements offc sire to the dignity of the office of the Presidency and
he was glad they had decided not to present it at the White HOMO.
"He said that every group In the United States was free to present its
views on every public question and they no doubt would be given ever"'
facility In the expression of their wishes to Congress."
Mr. Newton added that the petition in question was not seen by the
President. as it was passed in an envelope to General Hines. The document was the same as prepared at the recent National convention of the
B. E. F. at Uniontown. Pa. Besides demanding full cash payment of the
bonus. It expressed opposition to any legislation tending to cut down veterans' allowances, and demanded that immediate steps be taken to issue
to unemployed veterans billeted In camps at various places "underwear,
uniforms, shits. socks, hats, caps and overcoats," to lend them cots,
mattresses and blankets and to provide a food or cash ration allowance
of not less than 15 cents a day for their care.
The censure of the President was contained in the last paragraph, in
which It was resolved:
"That we. the assembled representatives of the B. E. F. (at Uniontown) do hereby severely censure you and those of your administration
who took part in and the means used in the foreceful eviction of the B.E. F.
from the District of Columbia on July 28 and 29 1932.'
In the group received by the President were Mr. Smith, Philo D. Burke.
liaison officer; Robert Dessert, George J. Spencer, Edgar F. Cornelius.
medical officer; William E. Jordan, Burns M. Thomas, Fred Allamong,
Arthur A. Tabb and T. A. Charlton and Mrs. Myrtle F. Crawford and Mrs.
Geneva N. Frew. nurses.

Associated Press advices from Washington, Oct. 13, said:

Hoke Smitn told newspaper men as he left the White Howie offices to-day
that his delegation had "pledged our unswerving allegiance to the Constitution and the flag."
The B. E. F. resolution, as handed to newspaper men by Mr. Smith.
cited an appropriation of 150.000 for the "entertainment of French veterans" and legislation permitting a loan of bedding to the American Legion.
"We, the delegates of the B. E. F. In National convention assembled at
Uniontown. Pa." the petition said,"do herewith demand that the same
consideration be shown these destitute, honorably discharged World War
vaterans that was shown our more fortunate comrades in the above-mentioned public laws."
Later in the day Mr. Smith conferred for an hour with General Hines
and to-night the D. E. F. officer hawed a statement saying that the reception
of his group by the President proved that the organization was not "the
'criminal group' that was so viciously attacked by the Attorney
General during the middle of September" and that the severe censure
mentioned in the resolution presented to General Hines "was directed at
Mr. Hoover the individual" and not at the Chief Executive of the country.

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Financial Chronicle

President Hoover, in Cleveland Address, in Answering
His Opponents, Defends Tariff and Other Policies
of Administration in Dealing with Crisis—Reviews
12-Point Program—Denies He Employed Cheap
Chinese Labor in South Africa.
In an address delivered in Cleveland on Oct. 15, President
Hoover directed his remarks toward answering criticisms
of his opponents. To quote from the Cleveland "Plain
Dealer":
The President lashed out unsparingly at Roosevelt and Garner; attacked the type of campaign conducted by the enemy ; defended the
acts of his administration, including the Ilawley-Smoot tariff bill, and
as a climax presented in outline a twelve-point program he said he
had carried out for the benefit of both laboring men and employers, in
an eflort to overcome the depression, maintain national stability and
create jobs. .
Mr. Hoover's address to-night climaxed a long, hard day in which he
spoke from the rear platform of his special train as it crossed four States
to throngs estimated by police to more than 100,000.
Removes Bandage.
The President had removed the bandage on his hand which he had
since Thursday night when it was cut and bruised while shaking
worn
hands with 3,000 at a White House reception. . . .
In discussing the unemployment and wage question, the President outlined this twelve-point program he said he had put into effect since
the beginning of the depression:
1—Organization of relief committees to prevent "hunger or cold."
2—Labor conference to prevent strikes.
3—Organization of preparatory measures to prevent disaster in time
of panic or depression.
4—Public works building program.
5—The five-day week or stagger system of employment.
6—The Federal Dome Loan Banking system.
7—Maintenance of comparatively high wages in this country.
8—Insistence of a protective tariff for American industry.
9—Prohibition of immigration to a minimum.
10—Retained stability of the American dollar.
11—I'rogram to restore normal jobs to workers.
12—Reduction of armaments to relieve the world of arms burdens.
Emphatic in Denial.
Mr. Hoover was particularly emphatic when he discussed Democratic
charges that he had employed cheap coolie labor while on an engineering
Mission in South Africa. Ile rapped the desk with his clenched fist as he
emphasized his points and his voice grew in volume as he denied
the
charge.
"In my hand I have a copy of the instructions issued by the Democratic
National Committee to their speakers," he said. "I find a paragraph
referring to my 'dark labor record.' I am glad that is neither pink nor
red. But they say: 'First and indelible his early record is clouded
by his former partnerships which contracted cheap Chinese coolie labor
In South African mines.' It goes further with reference to statements
of Democratic leaders grieving over his coolie labor and implies that I
engaged in the slavery of human beings.
"This calumny has been disproved and denounced time and again. Some
of my friends base even gone to the extent of digging up the public records
of 28 years ago, which show that at the time Chinese labor was imported into South Africa, I publicly protested on the grounds that high.
paid skilled labor would do the work more efficiently, and further no
South African concern with which I was ever connected ever employed
a single Chinese laborer.
"But snore important than this, I happen to have in the files in Washington, from the man who first penned those lies, a statement
under
oath, humbly and abjectly withdrawing them. . . ."
War Debts.
In regard to war debts, the President said he had consistently opposed
cancellation while "the Democratic candidate, to use his own
words, proposes to reduce our tariffs so that out of Europe's profits through the
increased trade they would obtain from us Europe would pay us
these
debt annu:ties."
"That is uistly worse than cancellation," said Mr. Hoover.
"This
would take money out of the pockets of the farmer, laborer and
business
man to pay Europe's debts. in the constructive handling of this question
I have said that I would favor the utilization of war debts to advantage
agriculture and labor. Such action has received support of many
leaders
of labor and agriculture."
It was at this point that the President summarized his own record in
this fashion:
"It is radical in its defense of our people's interests; it is progressive
in constructive advancement of our people; it is conservative in maintaining the fundamental principles of American life. . . ."
And in conclusion:
"No one who has seen this battle as I have seen it, who has watched
the bright fabric of recovery woven laboriously from day to day, with
the stout efforts of American faith and confidence in their people, could
harbor a doubt for the future of this nation.
"If there shall he no retreat, if the attack shall continue as it is now
organized, then this battle is won."

In full the President's address follows:
spoke at Dee Moines about agriculture. My remarks this evening
will be largely directed to employment and to the wage and salary earners.
I propose to review what the administration has done and the measures
and policies it has in action together with the relation of these policies
to those of our opponents. As President of the United States, I have
the duty to speak to workers, but I have also a certain personal right
to speak.
When I talk to you to-night about labor I speak not out of academic
imaginings hut from sharp personal experience. I have looked at these
human problems, not only from the fireside of one who has returned from
a day's work with his own hands but I know the problem that haunts the
employer through the night, desperate to find the money with which to
meet the week's payroll. In public service during past years I have
had to look at these problems from the point of view of the national
welfare as a whole.
The people of s free nation have a right to ask their Government, "Why
has our employment been interrupted? What measures have been taken
In our protection? What has been done to remove the obstacles from the
return of our work to us?"




2749

They not only have a right to ask these questions but to have an answer. I am here to-night to give that answer.
During the past three years our economic system has received the most
terrific shock and dislocation, which, had not strong action been taken
by your Government, would have imperiled the Republic and the whole
hope of recovery. It has affected business, industry, employment and
agriculture alike. It is appropriate to repeat that while many of our
measures are directed to the protection and assistance of particular groups,
yet all are in the same boat and all -must come to shore together.
And how are they to get to shore? By listening to those who manifestly
display a lack of knowledge of the character of the storm and of the
primary problems of navigation? By boring holes in the bottom of the
boat? By throwing overboard the measures designed to meet the storm
and which are proving their effectiveness?

Declares Smoot-Hawley Tariff Act not factor in depression.
Our opponents have been going up and down the land repeating the
statement that the sole or major origins of this disruption and this
world-wide hurricane came from the United States through the wild flotation of securities and the stock market speculation in New York three
years ago, together with the passage of the Smoot-Ilawley tariff bill,
which took place nine months after the storm broke.
I propose to discuss this assertion.
First. Because it can be pro‘ed absolutely untrue.
Second. Because the United States did not bring this calamity upon the
world. The United States is not the oppressor of the world.
Third. Because it can be demonstrated to be founded upon a complete
misunderstanding of what has happened in the world.
Fourth. Because any party which exhibits such a lack of economic understanding upon which to base national policies should not be trusted
with the fate of 25,1100,000 American families. They should not be trusted
to command the battle against the most gigantic economic emergency
with which our people have ever been confronted, and to bring that battle
to victorious issue in the re-establishment of the functioning of our
economic machine.
This thesis of the opposition as to the origin of our troubles is a wonderful explanation for political purposes. I would be glad, indeed, if
all the enormous problems in the world could be simplified in such a
fashion. If that were all that has been the matter with us we could
have recovered from the depression two years ago, instead of fighting
ever since that time against the most destructive forces which we have
ever met in the whole history of the United States—and I am glad to say
fighting victoriously.
Nowhere do I find the slightest reference in all the statements of the
opposition party to the part played by the greatest war in history, the inheritances from it. the fears and panics and dreadful economic catastrophes
which have developed from these causes in foreign countries, or that they
may have had the remotest thing to do with the calamity against which
this Administration is fighting aay and night.
The leaders of the Democratic party appear to be entirely in ignorance
of the effect of the killing or incapacitating of 40,000,000 of the best
youth of the earth, or of the stupendous cost of war—a sum of $300,000,000,000, or a sum nearly equal to the value of all the property in the
United States, or the stupendous inheritance of debt, with its consequent
burden of taxes on scores of nations, with their stifling effect upon recuperation of industry and commerce or paralyzing effect upon world
commerce by the continued instability of currencies and budgets.
Democratic leaders have apparently not yet learned of the political
instability that arose all over Europe from the harsh treaties which ended
the war and the constant continuing political agitation :ma creation
of fear which from time to time paralyzed confidence. They hays
apparently never heard of the continuing economic dislocation
from the
transfer on every frontier of great masses of people from their
former
economic setting.
They apparently have not heard of the continuing dislocation
of the
stream of economic life which has been caused by the carving of twelve
new nations from three old empires. These nations have a rightful
aspiration to build their own separate economic systems; they naturally
have
surrounded themselves with tariffs and other national protections
and
have thereby diverted the long-established currents of trade. I
presume,
however, that if our Democratic leaders should hear of these nine
new
tariff walls Introduced into the world some fourteen years
ago they
would lay them at the door of the Smoot-Hawley bill passed twelve
years
later.
They apparently have not heard of the increase of standing
armies of
the world from two to five million men, with consequent
burdens upon
the taxpayer and the constant threat to the peace of the
world.
Democratic leaders apparently ignore the effect upon
us of the revolution among 300.000,000 people in China or the
agitations among 800,000,000 people in India or the Bolshevist revolution
amongst 100,000,000
people in Russia. They have ignored the
effect of Russia's dumping into
the world the commodities taken from its
necessitous people in a desperate
effort ot secure money with which to carry
on—shall I call it—a new
deal.
The Democratic leaders apparently have
never heard that there ha,
been gigantic overproduction of rubber
in the Indies, of sugar in Cuba,
of coffee in Brasil, of cocoa in Ecuador,
of copper in the Congo, of lead
In Burma, overproduction of zinc
in Australia, overproduotion of oil
from new discoveries in the United
States, Russia, Sumatra, and Venezuela;
and likewise the effect of the
Introduction into the world of gigantic
areas
of new wheat lands in the Argentine
and in Canada ; new cotton lands
in Egypt. In earh and every case
these enormous overproduction,, far
beyond consumption even in boom
times, have crashed into the
immutable
law of supply and demand and
brought inevitable collapse in
prices and
with it a train of bankruptcies
and destruction of buying power
for
American goods.
They appear rot to recognize
that these forces finally generated
economic strangulations, fears and
panic, the streams of which
precipitated
another long series of world-wide
disasters.
The Democratic leaders
apparently never heard that
there followed
revolutions in Spain and Portugal,
Brazil, the Argentine Chile Peru,
Ecuador, Siam, with attempts
at revolution in a dosen
other cc:unifies:
resulting in their partial or
practical repudiation of debt
and the constant
decrease in buying power for
our goods.
Series of Collapses Abroad.
They seem not to know that
the further accumulation of all
these
causes aml dislocations finally
placed a strain upon the weakened el
-anomie
system of Europe until one by one
they eollapsed in failure of their gold
standards and the partial or total
repudiation of debts. They would hold
the American people ignorant
that every one of these nations in
their
financial crises imposed direct or
indirect restrictions on the import of

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Financial Chronicle

goods in order to reduce expenditures of their people. They call these
"reprisals" against the Smoot-Hawley tariff bill.
They apparently have never heard of the succeeding jeopardy in which
our nation was put through these destructions of world commerce, or
the persistent dumping of securities into the American market from these
panic-stricken countries; the gigantic drains upon our gold and exchange, or the consequent fear that swept over our people, causing them
to draw from our bank resources $1,500,000,000, all of which contracted
credit, resulted in demand for payment of debts right and left and thwarted
our every effort for industrial recovery.
Yet, in the very face of all these tremendous facts, our Democratic
friends leave the impression with the American people that the prime
cause of this disaster was the boom in flotations and stock prices and a
small increase in American tariffs.
Such an impression is unquestionably sought by the Democratic candidate when he says:
"That bubble burst first in the land of its origin—the United States.
The major collapse abroad followed. It was not simultaneous with ours."
I do not underrate the distressing losses to millions of our people or
the weakening of our strength from the mania of speculation and flotation of securities, but I may incidentally remark that the State Governments have the primary responsibility to protect their citizens in these
matters and that the vast majority of such transactions originated or took
place in the State of New York.
Origin of Depression.
But, as to the accuracy of the statement I have quoted, I array call
your attention to a recent bulletin of the highly respected National Bureau
of Economic Research, in which it is shown that this depression in the
world began in eleven countries, having a population of 600,000,000 people,
before it even appeared in our country, instead of the bubble having "first
burst in the United States." Their report shows that the depression in
eight other countries, with a population of another 600,000,000 people,
started at the same time with ours. In fact, the shocks from the continued economic earthquakes in these other countries carried our prices
far below the values they would otherwise have sunk to, with all Its
train of greatly increased losses, perils and unemployment.
Our opponents demand to know why the Governmental leaders or
business men over the world did not forsee the approach of these disintegrating forces. That answer is simple. The whole world was striving
to overcome them, but finally they accumulated until certain countries
could no longer stand the strain, and their people, suddenly overtaken by
fear and panic, through hoarding and exporting their capital for safety,
brought down their own houses and these disasters spread like a prairie
fire through the world. No man can forsee the corning fear or panic, or
the extent of its effect. I did not notice any Democratic Jeremiahs.
So much for the beginnings and forces moving in this calamity.
I now come to the amazing statements that the tariff bill of 1930 has
borne a major influence in this debacle.
I quote from the Democratic candidate:
"The Hawley-Smoot tariff is one of the most important factors in the
present world-wide depression."
"It has destroyed international commerce."
"The tariff has done so much to destroy foreign trade as to make
foreign trade virtually impossible."
I shall analyze the accuracy of these statements not only because I
should like to get before my countrymen a picture of the lack of understanding which the Democratic party has of world trade, but also for the
further reason that it is of vital importance to labor that, as our opponents have this obsession, it means that if they are intrusted with control of our Government they intend to break down the protective tariff,
which is the very first line of defense of the American standard of living
against these new forces.
It requires a collection of dull facts to demonstrate the errors in these
bald assertions by Democratic leaders.
At the beginning I may repeat that this tariff bill was not passed until
nine months after the economic depression began in the United States and
also not until twenty other countries had already gone into the depression.
The Democratic party seldom mentions that 66% of one imports are
free of duty, but that is the fact. From half to two-thirds of the trade
of the world is in non-dutiable goods—that is, mostly raw materials.
Another part is in luxuries, upon which all nations collect tariffs for
revenue; another part, and probably less than two-thirds of the whole, I.
In competitive goods so far as the importing nation is concerned and
therefore subject to protective tariffs.
The trade of the world has distressingly diminished under the impact of these successive dislocations abroad. But the decrease is almost
exactly the same in the free goods everywhere as in the dutiable goods.
That is the case in the United States. If the Smoot-Hawley tariff reduced
our imports of dutiable goods, what was it that reduced the two-thirds
of non-dutiable goods?
Tariff Duties.
If we explore a little further we would find from the Tariff Commission that the total duties collected in a comparable year represent 16%
of the total imports, this being an increase from 13.8% of the previous
tariffs. In other words, the effect of the new tariff shows an increase of
2.2%. This is the margin with which they say we have pulled down
foreign Governments, created tyrannies, financial shocks and revolutions.
I may mention that upon the same basis the McKinley duties were 23%;
the Dingley duties were 25.8%; the Payne-Aldrich duties were 19.8% of
the whole of our imports—all compared with the 16% of the present
tariff—and yet they produced in foreign countries no revolutions, no
financial crisis, and did not destroy the whole world, nor destroy American
foreign trade.
And I may explore the facts still further. The five-year average of
the import trade of the United States before the depression was about 12%
of the whole world import trade. Thus they would say that 2.2% increase applied to one-eighth of the world's imports has produced this
catastrophe.
I can explore this in still another direction. I. remind you that we
levy tariffs upon only one-third of our imports. I also remind you that
the actual increaser made in the Smoot-Hawley act covered only one
quarter of the dutiable imports. I may also remind you that our imtrade is only one-eighth of the import trade of the world. So they
port
would have us believe this world catastrophe and this destruction of foreign
trade happened became the United States increased tariffs on one-fourth
of one-third of one-eighth of the world's imports. Thus we pulled down
the world, so they tell us, by increasing on less than 1% of the goods
being Imported by the world.
And I may explore the responsibility of the tariffs still further. My
opponent has said that it "started such a drain on the gold reserves of
the principal countries as to force practically all of them off the gold
standard.*




Oct. 22

1932

Europe's Gold Holdings Increased Following Passage of Smoot-Hawley
Tariff Bill.
At Des Moines I defended the American people from this guilt. I pointed
out that it happens there had been no drain of gold from Europe, which is
the center of this disturbance, but, on the contrary, that Europe's gold holdings have increased every year since the Smoot-Hawley tariff was passed.
My fellow citizens, I could continue for hours in an analysis of mistaken
statements and misinformation from the opposition. But I assure you that
this country is not to blame for the catastrophes that have come on the
world. The American people did not originate the age-old controversies
of Europe. We did not inaugurate the World War or the panics in Europe.
No, my friends, the increase of duties collected by the United States
by 2.2% calculated on all the goods we import did not bring about the
debacle in the world. If every country in the world were to increase the
duty upon their imports by 2.2% to-morrow, but if at the same time they
would also adopt domestic policies which would bring about release of the
energies and progress of their people—if they would maintain peace and
good will toward their neighbors—if they would support confidence in the
world, then the world's, as well as our own, international commerce would
thrive and boom beyond any dimensions that we ever dreamed of.
I dwell on this point not only because I believe it is important to correct
current misstatements of our opponents, but because the policies of our
opponents are founded upon misconceptions of the utmost gravity for the
future of the United States. If it were not a matter of such utter gravity
for the future of the United States I should treat them not in a sense of
seriousness but in a sense of humor. There is a vital determination before
the American people as to whether there shall be placed in power over the
destinies of 120,000,000 of people a party which so lacks a penetration
Into the forces active in the world and the dangers and responsibilities
that arise from them.
Policies of Administration.
I now wish to examine the record and policies of the present Administration in their relation to our wage and salary earners, for that record
Is made. There are 12 major measures and policies which we have put into
action. They speak louder than any promises.
Relief.
1. My first concern in dealing with the problems of these times, while
fighting to save our people from chaos and to restore order in our economic
life, has been to avert hunger or cold amongst those upon whom these blows
have fallen with heartbreaking severity—that is, the unemployed workers.
In the fall, 1931, we mobilized again, through co-operation with Governors and local communities, all the associations and agencies in the United
States and carried a victorious battle over the winter of 1931-32.
Still again during the last few weeks I have co-operated with the great
national agencies in the remobilization of the voluntary forces of the
country for an attack on the forthcoming winter.
But, fearing that the resources of individuals of the local communities
and States were being exhausted, I settled with the Congress an authority
to be given to the Reconstruction Finance Corporation to loan a total of
$300,000,000 to those States whose needs might be found greater than the
voluntary associations and local authorities could provide.
I had great difficulties with Democratic leaders to prevent this being
made a pork-barrel operation rather than based upon need. Under that
authority many millions have already been provided. We have provided,
in addition, large quantities of wheat and cotton for their aid. There should
be no fear or apprehension at any deserving American fireside that starvation or cold will creep within their doors to menace families and loved ones
over the forthcoming winter.
With these three years of unceasing effort in relief and by the patriotic
service of our citizens and local communities and public officials, the
stimulus and mobilization that we have been able to give through the
use of the Presidential office, we present to the world a record unparalleled
In any other nation.
That is a record expressed in technical terms, yet interpretable in sheer
human sympathy. That record is the Information furnished to me constantly
by the Surgeon-General of the Public Health Service, which shows, down
to this latest moment, that the adult mortality, infant mortality, are at
the lowest rate on record, and the general health of the American people
Is at a higher level to-day than ever before in the history of our country.
I know that there are exceptions and that there is suffering which always
arises in communities where their organization is less efficient than it
should be. Even so, no such record could be established if the nation's
unemployed were starving and without shelter. Yet some say that things
could not be worse. Had these actions not been taken they would be a
thousand times worse.
Measures in Behalf of Labor.
2. In November 1929 I assembled in Washington representatives of the
leading employers, together with representatives of organized labor, and
here we developed certain plans for dealing with this emergency. I
believe this can be truly said to have been the first time in history that the
Government has taken the leadership in securing an understanding between
industry and labor of the complete mutuality of their interest in the face
of national danger.
We worked out on that occasion many purposes. The first was to uphold
the standards of real wages. The second was to uphold the buying power
of our working people until the cost of living had diminished.
The third was to prevent that thing which had happened in every previous
depression in our history, and that was an immediate attack upon wages
as a basis of maintaining profit.
This proposal had the sympathetic support of the employers of the
country and for nearly two years they maintained the standard of wages
In the United States. They maintained them in the face of disappearing
profits. As the depression grew more severe there have been readjustments,
but these readjustments have come about by agreement between employer
and employee after profits were exhausted and the cost of living had been
reduced.
Al a result of these efforts we have had the astonishing spectacle of a
country in which there have been less strikes and industrial conflict, with
all their bitterness, than even in normal times.
The fourth of these undertakings made on this occasion was that the
employers, faced with the necessity for reducing staffs, would stagger their
employment. Instead of discharging a portion of workers into complete
diameter, they would spread the remaining employment over the whole of
their employees. That has been done on a wide scale in the manufacturing
industries, and millions have continued with some income who otherwise
would have been destitute.
At a later date I secured the establishment of a definite organisation
which has been engaged for many months in the conduct of a campaign
throughout the country for the adaptation of these principles to office and
service institutions. This has already resulted in much expansion of
employment and relief of disarms in those occupations.
The fifth of the undertakings made in 1929 was that manufacturers,
railroads and utilities would expand their construction of new equipment

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Financial Chronicle

beyond their present needs in order to maintain employment to the utmost
of their capacity.
A vast sum of money was expended in these directions during the first
year of the depression. Some months ago I secured the interest of employers
in organization of a new campaign to replace obsolete equipment and
machinery. This also will result in expansion of employment.
As I have said, when history records this depression it will record no
brighter chapter in the whole history of the United States than the approach
to this problem by both employers and leaders of labor in humanity and a
sense of social responsibility. To them I pay high tribute. In the face
of these actions and these results, let no man say that it could not be
worse.
If it had not been for these actions this country would have been fired
with the flames of bitterness and conflict between workers and employers,
millions more would have been without jobs, wages would have been reduced
far below their present levels.
Public Works.
3. Day before yesterday my opponent announced a plan "to set up in
prosperity what might be called a nest egg, to be used for public
times of
works in time of depression." He says "that is a policy which we should
initiate when we get hack to good times." He adtances this apparently
as a brand-new idea. Now, it will doubtless surprise him to learn that
the eggs nave not only been laid but have hatched.
Ile either ignores or is ignorant of the fact that as far back as 1922, in
our unemployment conference of that year, under my chairmanship, we
developed the idea of making use of public works to assist in the stabilization
of employment in times of depression and laid the foundation for its
operation.
Upon the breaking out of this depression in November three years ago, I
announced that not only would the Federal Government speed up its public
works, but I requested the States and municipalities to do likewise.
During the year 1930 we not only maintained these types of construction
work, but stimulated it to above normal, to an amount of $500,000,000 to
$800,000,000. The wide extent and pressure of the depression, however,
rapidly cut into the construction work of many States and municipalities.
We, however, have held Federal construction work up to three times its
normal. By the end of this fiscal year we will have expended nearly
$2,400,000,000 of Federal money on construction and maintenance work
since the depression began. Do you not think things could have been worse
if these policies had not been adopted?
There has proved to be a limitation, however, on this, and that limitation
is that the Federal Government should not and most not undertake projects
which are not of productive value to the community and must not extend
its liabilities beyond its ability to maintain a balanced budget.
To take money from the taxpayer and thus decrease his ability to employ
people himself, and to put it into public works which will never make a
real return to the public, is a waste of national wealth and an actual
destruction to employment.
Notwithstanding the fact that the Federal Government was carrying
a
burden of $700,000,000 of public works per annum—the utmost that its
resources permitted—the Democratic Vice-Presidential candidate introduced, in May of this year, and secured the passage of a bill in the Democratic House of Representatives calling for $1,200,000,000 more of public
works. The expenditure of these sums meant the unbalancing of the budget;
it meant the destruction of governmental credit.
But far worse than this, the works upon which it was intended to expend
this money were of typical pork -barrel character. In that bill were 3,500
different projects, scattered in every community in the country.
One list
alone would have imposed a maintenance charge on the Government
of
$15.000,000 a year, as against a perfectly efficient
service now costing
$3,000,000 a year.
Lists of the projects in different Congressional districts were distributed,
in the hope that they would appeal to the cupidity of those districts and that
/ would be forced into the embarrassment not only of appearing to oppose
my own policy of speeding up public works, hut of depriving thousands of
towns and villages of the expenditure of Federal money and myself
of
votes in this election.
It is a good thing to have a fire in the grate to warm the house, but
it is a had thing to set the house on fire in order to warm your hands.
The Democratic candidate for Vice-President still advocates that bill.
Ile proposes to introduce it again in the next session. He proposes it
as a part of the policies of the Democratic party. But, with the responsibility of the President of the United States, I propose to continue my
opposition to it.
4. Eight months ago I requested certain of the engineering associations
to investigate the possibilities of aid from the Government by way of loans
to stimulate construction of public and private works of reproductive
character—that is, works that would earn repayment of capital and
interest
but that were halted from lack of credit. As a result of the ventilation of
these ideas, the Reconstruction Finance Corporation was authorized to
make such loans up to $1,500,000,000 for such works.
Already the Corporation has authorized the starting of works the
ultimate
cost of which will exceed $400,000,000. The installation of these works
will be productive in living for literally thousands
of families.
Shorter Work Week,
6. It is obvious that, in addition to the great dislocations which we
received by the demoralization of governments and markets
had
abroad,
there was also another economic form moving for which there
must he a
remedy. That wait the so-called technological unemployment.
in plain
terms, our inventions of lavor-saving machinery have outrun our discoveries
of new commodities and new services upon which to absorb the men thus
discharged from the older industries.
In order to bring the Government into line with these facts, upon my
reca;nmendation to Congress the shorter hours were applied effectively to
Government service in order that we should spread Government
employment
over the largest possible numbers and yet decrease Government expenses.
Federal Home Loan Banks.
a. There is an agency of protection which we have created which has
been near to my heart over many years. That has been the establishment
of better opportunity for our people to purchase their own homes and to
have a (fiance to keep them when they have undertaken this great
step in life.
In November of last year I propounded a plan for a national system of
home loan banks. These banks were for the purpose, with the temporary
assistance of the Government, of mobilizing the resources of building
loons,
savings banks and other institutions devoted to home ownership to enable
them to borrow collectively on more favorable terms from the investor,
and to assure to the borrower long-term payments at more reasonable
rates.
The literally thousands of heart-breaking instances of inability of working
people to attain renewal of expiring mortgages on favorable terms, with
the consequent loss of their homes, have been one of the tragedies of this




2751

depression. Had the Democratic House of Representatives acted upon this
measure at the time of its recommendation, we would have saved hundreds
of thousands of these tragedies.
I finally secured the passage of that bill through the Congress. Those
banks will be' operating by the end of this month. The system is not as
perfect as I should wish, yet it has already had one immensely beneficial
effect, and there will be others. The anticipation of its aid has largely
stopped foreclosing on homes, and with its operation it should enable every
man who wants to make a fight to hold on to his home an opportunity
to do so.
And there is another purpose in setting up this new institution. Despite
the tendency of the people in some communities to huddle in depression,
and therefore to create many vacant dwellings, yet there are other communities where people to-day wish to build homes but cannot do so because
they cannot borrow a portion of the cost. These institutions, by furnishing
this capital, will give renewed employment to many thousands of people.
High Wages Advocated.
7. I have for many years advocated high wages as the economic basis
for the country. That is the road to economical production and high
consumption of products of the farm and factory.
Those who say that things could not be worse speak without knowledge
of what has happened in other countries which have gone through this
cataclysm. In order to show you what the rates of wages are in the
United States compared with other countries I have this week secured
through the Department of Commerce a calculation on a basis which I have
used before for purposes of illustration. The actual wages in terms of the
currencies of other countries are difficult to compare. We must find a
common denominator.
If we say that 5% of butter and 95% of flour form the basis of that
useful mixture called "bread and butter," then the weekly earnings in each
country would buy at retail in those countries the following totals of
this useful compound:
WEEKLY WAGES IF APPLIED TO THE PURCHASE OF "COMPOSIT3
POUNDS OF BREAD AND BUTTER" AS OF OCTOBER 1932.
Country.

Railway
CarEngineers. pesters.

United States.__. 1,069
United Kingdom_
342
Germany
271
France
246
Seldom
288
275
Italy
Innan
131

1,064
253
176
183
228
118
50

Elec[tic-tans.
1,300
276
169
164
240
149
90

Coal
Miners.

Weavers.

Day
Labor.

734
223
162
123
180
70
57

565
161
120
86
199
67
31

393
184
106
86
160
85
55

Let no man say it could not be worse.
Protective Tariff.
8. I wish for a moment to return to the tariff. There is no measure in
the whole economic gamut snore vital to the American workingman and
the farmer to-day than the maintenance of a protective tariff. I stand
on that principle of protection.
Our opponents are opposed to that principle. They propose "a competitive tariff for revenue." They propose to do this in the face of the fact
that in the last year currencies of competing nations have depreciated by
going off the gold standard and consequently wages have been lowered in 30
competing countries.
This is a flat issue which every farmer and workman in the United
States should consider from the point of view of his home and his living.
That it is the intention of the Democratic candidate to reduce the tariff—
on all commodities—must be clear from these typical expressions in respect
to the present tariff used in this campaign: "Wicked and exorbitant
tariff"; "its outrageous rates"; "almost prohibitive tariffs"; "the notorious
and indefensible Smoot-Hawley tariff"; "the excessive rates of that bill
must come down"; "until the tariff is lowered"; "our policy calls for
lower tariffs".
Do you want to compete with laborers whose wages in their own money
are only sufficient to buy from one-eighth to one-third of the amount of
bread and butter which you can buy at the present rates of wages? That
is a plain question. It does not require a great deal of ingenious argument
to support its correct answer.
It is true we have the most gigantic market in the world to-day, surrounded by nations clamoring to get in. But it has been my belief—and
it is still my belief—that we should protect this market for our own labor ;
not surrender it to the labor of foreign countries, as the Democratic party
proposes to do.
Prohibition of Immigration.
9. In order to hold the jobs we have for our own people and to prevent
further additions to our unemployed and thus prevent further burdens upon
our communities, I have by administrative order practically prohibited all
immigration from every quarter of the globe except the relatives of our
residents.
It has reduced the numbers of people coming into the United States
seeking employment to less than those who are departing. That order
was
issued two years ago.
Had the net immigration taken place since the date of that order,
which
took place in the two years previous, we would have had 400,000
jobs
taken from our people or had just that many persons
added to our unemployed. That might have been worse.
Preservation of Integrity of American Dollar.
10. 'There is nothing in which the American workman is
more concerned
than in preserving the integrity of the American dollar. The
Democratic
party has at various times, and specifically by the passage
of the Pittman
Bill by the Democratic House of Representatives, on June
15 last, endeavored
to undermine the integrity of the American currency
through the issue of
$2,300,000,000 of greenbacks—harking back to the
disastrous experience
of 60 years ago.
If any of you will study what happened in Germany,
or France, or
Austria, or any other European country when they
resorted to these
measures in order to meet their immediate
difficulties, you will find that
the major hardship fell upon the working people.
There was a time when the value of the German
mark was fire to the
dollar. They tried this plan of relief. I have in
my desk a fiNe-millionmark note which before the entrance into these
processes would have been
worth one million dollars, and yet which I
bought for actually one dollar.
The effect of their experiment was a subtle and
steady reduction of real
wages, right and left.
We have fought a great battle to maintain
the stability of the American
dollar, the stability of its exchange, in order
that we might protect the
working people of the United States.
Problem of Restoring Normal Jobs.
11. Over and above and of infinitely more importance than
all these
measures I have mentioned is the problem of restoring the great mass
of

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Financial Chronicle

normal jobs in the country. Emergency jobs have helped enormously, but
the normal jobs as the permanent dependence of the worker. Emergency
Jobs will never heal the depression.
Obviously, the normal jobs lie in the production and distribution of goods
and services; in other words, the factories, the mills, the mines, the railways, the public utilities, the stores, the offices.
And every part of this mechanism is lubricated by what we call credit.
That is, the ability of the manager of a business to borrow money to buy
his raw materials and to pay his labor. Tins credit is the very lifeblood
of this whole structure. It is the lifeblood of jobs. If credit fails, the
enterprise dries up; it withers or it dies. And jobs decrease or disappear.
And what is the source of credit? The savings of the people themselves.
These are gathered in a myriad of tiny rivulets of their deposits in the
banks, their premiums to life insurance companies, their dues to benevolent
fraternal organizations, their payments to building and loan associations,
and a score of other ways.
These rivulets in total volume are a mighty river. Their waters are
stored in credit reservoirs.' These are the banks, mortgage companies, the
Insurance companies, investments in the services of industry and business.
Thus credit is born of the people themselves. What the people give,
the people can take away. The reservoirs of credit are built upon the
confidence of the people in them. Fear is death to credit.
When the great economic earthquakes abroad struck directly at the
credit structures of those foreign countries, the shocks reverberated to us.
I have already said foreigners dumped their securities here at panic prices
and demanded gold in payment. They claimed their deposits from American
banks. They demanded cash for all goods they had sold us. Our own
people, in fear, drew out $1,500,000,000 of their savings from our own
banks.
Thus credit began to dry up. The managers of business turned in vain
for the accustomed loans to buy raw materials and to pay their labor.
Beyond all this contraction of credit was the fear and panic through
the world, spreading its destruction into the United States. It imperiled
the institutions in which were the savings of every fireside—bank deposits
or insuraime policies or investments.
In this contraction of credit lay dangers to every one who owed money,
for upon demand for immediate payment he was compelled to sell his
property in a limited and vastly depreciated market and so was threatened
with ruin.
Faced with these unprecedented perils, we took unprecedented steps. We
refused to allow these destructive forces to run their course to chaos and
ruin. We organized the co-operation of the community; we thrust the
strength of the Government as a shield before the people as has never been
done before in the history of all time.
I have referred to these gigantic measures on other occasions. I will
not take your time to again describe the weapons and instrumentalities we
have brought to bear in this battle. We created them, and we created
them to preserve your savings deposits, your insurance policies; to protect
you from foreclosure on your homes.
We did it to hold for you the jobs you have and, finally, to recover the
ground lost in the battle and restore the jobs which have been lost. It
has been a battle with inevitable casualties, but that battle is now being
won. Credit is being expanded, and normal jobs are coming back.
These agencies are working day and night. They are producing results.
September alone shows an increase of 3.0% in employment for the whole
country. If these policies shall be uninterrupted, if we shall hold the
financial integrity of the United States by maintaining a balance in our
budget, these measures and the courage and industry of our people will bring
back our economic system a long way toward its normal functioning and
the restoration of our people to their jobs.
Let no man say that things could not have been worse. Without these
many measures, things would have been so much worse that to-day would
look like prosperity in retrospect.
Reduction of Armaments.
12. It must be clear to you and clear to the country that a major part
of the shocks and dislocations which have brought this destruction are of
foreign origin. They are not of American making; but by the fact that we
have suffered from them it is implied that labor and agriculture have a
fundamental interest in securing greater stability abroad. Our selfcontainment is such that we can build back a long way on our own
resources. But if it Is possible to improve the internal stability of other
nations, it would at once allow them to relax their emergency restrictions
against exchange and the import of commodities; it would allow them to
return to stable currencies and enable the world to be free from political
shocks—all of which build for American markets, for the American farmer
and for American labor. It would protect the American worker and farmer
and business man from the rising flood of goods due to depreciated currendes and lowered standards of living. To this major end, which means work
for our unemployed and increased prices for our farmers, we have given
great devotion over the past year.
As the first direction to strike at the root of such evils I have proposed
that the armaments of the world should not only be cut by one-third but
that the weapons and methods in use should be so altered as to increase
the power of defensive weapons and decrease the power of offensive
weapons.
We not only thereby seek to remove fear and political shocks, but the
substantial acceptance of this proposal would save the United States over
$200,000,000 annually, and through savings of taxation in European countries would increase their buying power by probably a billion dollars a year.
It would release a thousand energies among their people.
Further, we have taken part in the development of a world economic
conference to be held later in the year to consider a multitude of monetary
and other economic questions which will reduce the obstacles to recovery.
War Debts.
In this connection, with all these problems, the European war debts to
the United States constantly arise. I have consistently opposed cancellation of these debts. The Democratic candidate, to use his own words,
proposes to reduce our tariffs so that out of Europe's profits through the
Increased trade they would obtain from us Europe would pay us these debt
annuities. That is vastly worse than cancellation. This would take money
out of the pockets of the farmer, laborer and business man to pay
Europe's debts.
In the constructive handling of this question I have said that I would
favor the utilization of war debts to advantage agriculture and labor.
Such action has received support of many leaders of labor and agriculture.
I am confident that in these policies which NVP are proposing in building
up in these three directions—that Is, disarmament, economic stabilization
of the world, and the proposed use of these debts to secure the ends I have
mentioned—I believe we can confidently hope to promote more rapid
recovery, and that we can greatly safeguard ourselves from future economic
shocks.
And that is the record of organization and measures In aid to labor.
It is radical in its defense of our people's interests; it is progressive in




Oct. 22 1932

constructive advancement of our people; it is conservative in maintaining
the fundamental principles of American life.
Chinese Coolie Labor.
I should like to digress for a moment to a more personal matter. In my
hand I have a copy of the instructions issued by the Democratic National
Committee to their speakers. I find a paragraph referring to my "dark
labor record." I um glad that is neither pink nor red.
But they say: "First and indelible his early record is clouded by his
former partnerships which contracted cheap Chinese coolie labor in South
Airican mines." It goes further with references to statetnents of Democratic leaders grieving over tide coolie labor and implies that I engaged
In the slavery of human beings.
This calumny has been disproved and denounced time and again. Some
of my friends have even gone to the extent of digging up the public
records of 28 years ago, which show that at the time Chinese labor was
imported into South Africa I publicly protested on the grounds that
high-paid skilled labor would do the work more efficiently, arid further,
no South African concern with which I was ever connected ever employed
a single Chinese laborer.
But more important than this, I happen to have in the files in Washington, from the man who first penned those lies, a statement under oath,
humbly and abjectly withdrawing them.
Such contemptible statements in a political campaign would be ignored
were it not that they were issued by the authority of the Democratic
National Committee, and they would be of no interest to the American
people except that it is proposed that a political party shall be placed in
power over 120,000,000 of people on the basis of votes secured in this
manner.
I should like a moment also, shortly, to indicate the Democratic record
of action during this trying period.
Democratic Proposals.
The Democratic party has laid before the country its program both in
the last session of Congress and in the promises of its candidates.
At no time in the history of the United States have we required mors
constructive statesmanship than in the past two years. The Democratic
party in the last Congressional election promised a definite program for
restoration of the country. That program was not disclosed until 18 months
later in the House of Representatives, which they controlled.
Aside from the patriotic support of some of their members to our
program, the organized program of their party was evidenced by passage
through the House of a series of bills which had to be stopped either by veto
or successful opposition in the Senate through public support. These bills
consisted of an omnibus pension bill ; of an order to the Federal Reserve
Board and the Treasury to fix prices in the United States, which they could
not physically carry out; of a $1,200,000,000 pork-barrel public works
bill ; of payment of a cash bonus to veterans of $2,300,000,000; of the
issuance of $2,300,000,000 of old-fashioned greenbacks, wirishm I have
referred to; of the destruction of the effectiveness of the tariff commission;
and of placing the United States Government into direct and personal
banking on a stupendous scale.
Instead of decreasing Government expenditures, as they are assuring the
country that they will do if they are given full control of the Government,
they failed to accept the reccmmendation of the Administration for
reduction of expenditures, and on top of it they passed measures which
would have increased our expenditures by $3,500,000,000.
We are willing to rest our case upon comparison with these records of
actual performance—not upon promises.
In closing, let me carry these Issues to a plane far above all personal
considerations. I have discussed with you to-night the bottles we have
fought, the measures and policies we have in action which more particularly
relate to those who work at the bench and at the desk.
Parallel with these actions other battles have been fought on a score of
fronts, in behalf of agriculture, industry, and business, to which the welfare
of every worker is indissolubly related.
We have been fighting, not only as an Administration, but as a people,
to relieve distress, to repel impending catastrophes, to restore the functioning of our economic life.
This economic system has but one end to serve. That end is not the
making of money. It is to create security in the millions of homes of our
country, to produce increasing comfort, to open wider the windows of hope,
to increase the moral arid spiritual stature of our people, to give opportunity for that understanding upon which national ideals and national
character may be more and more strengthened.
In securing these ends the first necessity Is to preserve those previous
heritages and principles which have come down to us forged in the fires of
long generations of Americans. Principles and institutions which, while
they have the imperfections of humanity, yet represent the highest expressstone of human attainment In thousands of years.
And to me a great historical truth has been revealed during this period
of trial and stress. This is the striking fact, driven home above all others,
that never during these trying weeks, months, and years has the soul of
America yielded to the bitter sting of defeat.
Bewilderment and dismay seized upon some of our people, but never did
the spirit of America itself surrender. Never for an Instant did the
American people lose faith in tire principles of their Government, their
Institutions, their country, or their God. Ilad America not stood staunch
in this world storm ; had it surrendered ; had our people lost faith, the
tide of disintegration might now engulf us all.
It has been the intangible and mighty forces of this unconquerable
spirit of the nation that has overco:ne the dangers and perils which might
have plunged the world in a long period of chaos. Incessant above the
storms in business, above the din of political dehate and legislative battle,
there has been the firm, strong voice of the people bidding that we should
carry on.
No one who has seen this battle as I have seen it, who has watched the
bright fabric of recovery woven laboriously from day to (lay, with the stout
efforts of American faith and confidence in their people, could harbor a
doubt for the future of this nation.
If there shall be 110 retreat, if the attack shall continue as it is now
organized, then this battle is won.

President Hoover Says Silver Question Will Re Fully
Dealt With At World Economic Conference—Will
Appoint a Representative of Silver Interests to
Delegation to Conference.

rd hi

In a telegram to Paul D. Iludtleff, Chairman of the Silver
Bow County Republlean Committee, PrensWent Ffoover
indieates that he made participation of the Unittd States
in the international economic conference conditional upon

Volume 135

Financial Chronicle

consideration of the silver problem. According to Associated
Press accounts from Washington Oct. 20, Mr. Hudtloff had
asked for a statement from the White House, declaring
Franklin D. Roosevelt, Democratic Presidential candidate,
and Senator T.J. Walsh, Democrat, of Montana,in speeches
in Butte, made statements indicating that Mr. Hoover had
done nothing toward calling a silver conference. President
Hoover in his telegram states that "the whole silver question"
will be "fully dealt with" at the conference which is to be
held late this year. He also says that a member of the
American delegation to the conference will be a representative of the silver interests of this country.
Mr. Hoover's telegram follows:
Mr. Hoover's telegram follows:
Regarding your telegram calling attention to misinformation given in
recent public meetings in Butte in respect to the calling of a silver conference. something over a year ago I had informal Inquiries made, as is the
usual custom, of important governments as to whether they would be prepared to attend a silver conference to be called by the American Government. They stated they would not be interested.
At subsequent dates, on being approached by minor governments who
were anxious to secure such a conference, we suggested that they endeavor
to see whether they could secure attendance of the principal foreign governments at a conference which they would call, and that we would be glad to
attend and cooperate. We also suggested that regional conferences might
be held at which we would attend.
Finally, upon proposal of the British Government that there should be
called a world economic conference to take place late this year, I made it a
condition of our acceptance that the whole silver question should be put
in the agenda and that it should be fully dealt with. That has been agreed
to, and recently I stated that I should appoint a member of the delegation
to that conference representing the silver interests of the United States,
The Congress has been passing resolutions for 20 years asking for an
international conference on silver. Various Presidents have endeavored to
secure such a conference. They have all failed because there are governments In the world that are not particularly interested or are opposed to
any special action.
The arrangement which I have succeeded in making in the last few months
in respect to the world economic conference is the first constructive step
that has been taken in this direction.
I am anxious to secure the improvement of the silver situation in the
world and will take part In any constructive measures to that end. Otherwise I should not have insisted upon this question being fully considered at
the forthcoming world economic conference. I am glad that your telegram
enables me to give this information and record a statement not only as
to the action of the administration but as to the utterly misleading character
of these statements which have been made to the people of Montana.

C. W. Handy Predicts Stability in Nation's Silver—
Experts Expect Higher Values as Coinage Situation
Improves—Huge Copper Stocks in This Country—
Meeting of American Institute of Mining and
Metallurgical Engineers.
No substantial advance in the price of silver is expected
in the immediate future but, on the other hand, there is no
reason to expect a price collapse, C. W. Handy, President
of Handy & Harmon,said at a dinner symposium on Oct. 19
on the present status of silver, copper, lead and zinc, held
by the. American InstitutA of Mining and Metallurgical
Enginuers at 2 Park Avenue.
The future prospects of silver depend entirely upon the
trend of economic conditions, which may confidently be
expected to be upward, Mr. Handy added, acording to
the New York "Times" of Oct. 20, which likewise said:
The future of the copper industry is likewise linked with the return of
prosperity, but a sane policy on the part of the producers Is also needed
to restore the world's copper industry to a profitable basis. Ludwig Vogel
stein, Chairman of the board of American Metal Co., said. About 100
members of the institute attended the symposium.
In discussing the silver situation Mr. Handy said that he believed that
silver prces wou d fluctuate for the present within the range of recent
months, between 26 and 30 cents per ounce. The coinage situation of
silver is Improving, he declared. Germany. with her increase of metallic
Currency in circulation, will have absorbed about 52.000.000 ounces during
1931 and 1932, he said. Mexico. Belgium and Turkey also have bought
silver recently and after more than a decade of "demonetization and debasement" the silver coinage situation is really encouraging.
The tremendous shrinkage in demand from India and China Is the chief
cause of low sliver prices, he went on to say. These countries ordinarily
import 75% of the world's production of newly mined silver, but this year
their imports would scarcely amount to 35% of the total, he declared.
Mr. Vogelsteln said that the outstanding event of the year in
copper
had been the reimposition of an import duty of four cents a pound in this
country. The present rate of consumption In the United States, he added.
is about equal to domestic production, but there exists In this country a
stock of refined copper of approximately 650.000 tone.
The United States, heretofore the leading market for copper, has lost
its paramount position, he said. Although the domestic price has not
differed substantially from the foreign price, there is no reason why producers
in this country could not raise the domestic price one or two cents a pound,
since their entire production is needed and the large stocks of refined copper
are controiled by a group of six or seven corporations which have no Intention of dumping their stock.
Referring to the future, Mr. Vogelstein explained that the producing
capacity of this country was five times as large as the present production
and that the world's copper mines were equipped to produce at least three
times the present output of copper. Improvement in general busimss,
especially In the electrical business, Will be of great help in restoring the
world's copper industry to a profitable basis. When the country does
emerge from the depression economies practiced at the mines In the barren
years which have resulted In lowered cost of production, will benefit the
mines and the Industry generally, he concluded.
Clinton H. Crane, President of St. Joe Lead Co., spoke on the status
of lead, and R. M. Roosevelt, Vice-President of the Eagle Picher Lead Co..




2753

discussed zinc. Sydney H. Ball, Chairman of the New York section of
the Institute, presided.

President Hoover Denies Charge He Has Foreign Oil
Interest—No Investment of Any Kind Outside
United States in 15 Years, He Wires California.
The following (Associated Press) from Los Angeles,
Oct. 20, is from the New York "Evening Post":
In a telegram received by C. C. Teague, head of the Republican campaign
In Southern California, President Hoover stated he has not "had a dime's
interest" in any activity outside the United States during the last 15 Yeas?.
The telegram was in response to an inquiry from Mr. Teague. who
informed the nation's Executive that oil workers In California were receiving political pamphlets charging Mr. Hoover opposed the tariff on oil
because of ownership of foreign oil wells.
Mr. Hoover's telegram follows:
-I have your telegram stating that Democratic agents, despite all proof
to the contrary, are still circulating misleading statements through their
fields that I have been opposed to relief of oil industry because of my
supposed interest in foreign oil and that I opposed the tariff on oil. This
Is usual type of politics.
"I have not In 15 years since I entered public service had a dime's interest
outside the United States of any kind, including oil. I supported the oil
tariff In the revenue bill and signed that bill. Without the support I
gave I do not believe it would have received a sufficient vote from nonoil sections to have been carried."

Ford Co. Out for Hoover "To Avert Worse Times"—
Statement Sent to Employees Throughout Country.
The following from Detroit Oct. 17 is from the New York
"Herald Tribune":
In a message Issued to-day to Its employees throughout the country the
Ford Motor Co. advocated the re-election of President Hoover "to prevent
times getting worse." The announcement was printed in placards and
placed on the bulletin boards at the company's River Rouge plant and the
executive offices In Dearborn. Thousands of copies of the statement were
also sent to Ford offices throughout the country. The statement follows:
"The Ford Motor Co. is not interested in partisan politics. We do not
seek to control any man's vote.
"We feel, however, that the coming election is so Important to industry
and employment that our employees should know our views.
"President Hoover has overcome the forces that almost destroyed industry
and employment. His efforts to start the country back to work are beginDing to show results.
"We are convinced that any break in his program would hurt industry
and employment. To prevent times from getting worse and to help them
to get better President Hoover must be elected.
"These are our convictions and we submit them to the serious consideration of all Ford employee' throughout the country and their families."

Henry Ford in Radio Speech Urges Re-Election of
President Hoover—Argues Against "New Recruit"
When President Has Brought Forces of Defense
and Recovery Into Action—Advocates Improvement in Money System.
Speaking at Detroit, on Oct. 19, over a National hookup of the National Broadcasting Co., including Station
WEAF, Henry Ford urged the reelection of President
Hoover. "Why," said Mr. Ford, "bring in a new recruit
and retard the seasoned leader, especially since President
Hoover has already got the massive forces of defense and
recovery into action?" Mr. Ford further said "we should
not forget to elect a good Congress in our effort to elect a
good President," and he added, "the next big job is to improve the money system."
Mr. Ford's speech as contained in a Detroit dispatch to
the New York "Times" follows:'
It is unusual for me to talk politics. I suppose I am like most Americans:
we never bother about politics until it means something to us. Party
politics never meant anything to me. and it means nothing to rue tonight.
I support the best man for the job. If Herbert Hoover were a Democrat
with his record during the last four years. I should support him. So, you
see. I cannot make much of a party speech to-night.
Of course. Ilerbert Hoover's worst enemy would not wish his administration to tall on these times. It is curious how Providence turns all things
around.
I supported Woodrow Wilson because I expected that he would devote
himself to'the improvement of the economical machinery of this country.
He understood what was wrong with our money system and wanted to
change It. That was his program.but the sudden change of events compelled
him to switch all his energies toward war and International problems.
It was the same with Mr. Hoover. When he was elected he expected
to organize the machinery of prosperity, but the sudden turn of events
placed upon his shoulders the most terrible depression the world has ever
known.
Woodrow Wilson was allowed to go ahead and carry out his program.
And,for the very same reason, Herbert Hoover should be allowed to carry
out his program. and I think he will.
Ile has faced the enemy for four years now. He knows all the techniques
of the forces of destruction. Why bring in a new recruit and retard the
seasoned leader, especially since President Hoover has already got the massive forces of defense and recovery Into action?
Says Hoover Asks No Sympathy.
I have great sympathy for Mr. Hoover. I know the size of the job
he has been carrying, but he is not asking for sympathy. Ile is asking
for help to complete his joo and I believe he is going to get it.
I am not saying that Herbert Hoover can work miracles. I have known
a number of Presidents and I have never yet known one who could. Mr.
Hoover is carrying a greater burden than Abraham Lincoln carried. lie
is carrying it in a way that. places him beside Lincoln in sacrificial service.
The American people are conservative. They do not run after any newfangled remedy,and when they do attempt to do anything radical they want

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Financial Chronicle

to see it controlled by experience and common sense. Herbert Hoover is
the very embodiment of common sense and realiabilitY•
There are no people in this country who know more about the depression
than the automobile workers. We have felt the full force of it. I think
the men engaged In the automobile industry are as intelligent as any class
in the country.
We automobile workers say this:
Herbert Hoover cannot work miracles, but he had the opportunity to
make some colossal and disastrous mistakes. He was clutched from every
side to do panic-stricken things, but Mr. Hoover kept his head when others
lost theirs.
No act Of his has been dictated by panic or politics, and the result is we
are now beginning to feel the lifting power of his well-thought-out Program.
Every act of the President has been in the interest of unemployment. That
is what we are saying.
We have a Congress which comes from the people and represents the
people. It usually acts for the best interests of the people. It will be
necessary for the President and Congress to work together during the next
four years.
For that reason we need good men everywhere in office. We should not
forget to elect a good Congress in our effort to elect a good President.
Money Reform Urged.
The next big job is to improve the money system. I would like to see it
done by a man of practical experience like Mr. Hoover.
Congress alone is given constitutional control of our entire money system.
No private financial interest should have anything to do with it. The
money question is coming to the front in this country just as Certain as can
be because the money question bears directly on our present difficulty.
Congress cannot keep its constitutional control over money. It farmed
out the National money system to private hands. It would never dream
of farming out naval defense, tax collection or postal service in the same
way.
Congress should take back full control of money and give the United
States a public-service money system as opposed to a private-profit money
system—a money system managed as our rivers and harbors are, for the
promotion of the public's business; managed as our postal service is, for the
service of the people's business. managed as our weather service is, for the
protection of the People's business.
That is what we need and that Is what we may have if Congress will take
over control originally delegated to it by the Constitution.
I am convinced that our money system is antiquated. We have plenty
of men and plenty of material, but money, which is not so important as
men or material, is holding up progress. This must be changed.
If Mr. Hoover during the next four years will give his mind to this matter.
I think he will completely establish his fame as a great President. It Is
only common sense when a man like Mr. Hoover has been educated by
experience, when he has got control of the thing he is fighting, when he is
beginning to show results—it is only common sense to let him finish his Job.
I think of him as a human-hearted, honest-minded, hard-working man.
Let me add a word about Governor Brucker. who introduced me here
tonight. He is a type of the new young man in polities clean, honest.
courageous and with one ambition—that is to do something big and helpful
for the people of the State. My friends, things will look better with men
like Hoover and Brucker continued In public office. Thank you.

Secretary of State Stimson Lauds President Hoover's
Program of Reconstruction—Asserts Gov. Roosevelt is Silent on Issues—Declares Tariff Absolutely
Necessary for Welfare of Country.
The reconstruction program of President Hoover was
lauded in a speech before the National Republican Club in
New York on Oct. 18 by Secretary of State Stimson, who,in
commending the course pursued a year ago by the President
when "a situation soon arose which threatened to destroy
utterly not only our entire system of banks and saving banks
but our insurance companies, our building and loan associations, and all the other fiduciary institutions," Secretary
Stimson said "Mr. Hoover's treatment of it was appropriate
to the character of the crisis."
Secretary Stimson in alluding to the tariff said that
Governor Roosevelt (Democratic nominee for President)
"has attacked the present tariff and has virtually promised
a general revision and a reduction of the tariff." "Of all
times," said Secretary Stimson, "is this the time to abandon
protection and substitute a competitive tariff? If there
was ever a time when even a free trader would admit that
a tariff was absoluetly necessary for the welfare of America,
it is now, when we are surrounded everywhere by immense
over-supplies of foreign goods seeking a chance to be dumped
upon our market." The speech in full of Secretary Stimson
follows:
We are approaching an election which in many ways is more critical
and important than any which this country has faced since the Civil War.
The depression from which we are suffering has been caused by a war much
greater than our Civil War and one which left its disastrous effects upon all
the nations of the world. In the course of this depression great crises have
been met: panic has been checked. and the forces of recuperation have
been put into motion by a program of governmental action. Unmistakable
sign/ of recovery appear on many sides: but we are not yet out of the woods.
A false step from the firm path that has been taken might well throw us
back Into a morass even deeper than the one out of which we have Pulled
ourselves.
Nest month we must choose the man who shall be our leader in this
difficult situation and upon whose shoulders shall rest the responsitilitY
tee carrying on the work of saving the nation. It is an election which calls
for the highest Intelligence and the greatest steadiness and courage.
Matters could be made a great deal worse. We have tarely escaped
grave dangers which other nations have suffered, and a mistake now may
still throw us back Into those dangers. In an election of this kind,Involving
the issues which this election involves, the judgment of the people of
America is not going to be based upon their reason and Intelligence. but
upon blind emotion born solely of adversity, our economic welfare may
receive a setback from which it, will take long to recover.




Oct. 22

1932

I do not ask you to support a man merely because he is in office. I ask
you to have the steadiness and staunchness to examine the record and to
decide intelligently whether he ought to be in and whether there is not
satisfactory evidence that his policies are winning out.
To-night I shall try to recall to you in the briefest possible way some of
the chief elements of the problem which Mr. Hoover has faced during the
past three years and to point out the principles which have guided him in
what he has done. Of course, I shall not even attempt to give the details
of the long. terrible struggle through which he has passed or of the great
program of reconstruction which he has carried through. But I shall try
to point out certain outstanding features which are of critical importance,
and I shall try to show you how on each of these points Mr. Roosevelt and
his Democratic colleagues have opposed what Mr. Hoover has done. In
such a way we may get a clearer measure of what we may expect if we
should seek to make a change in our leader.
The first outstanding feature of these past three years has been that
the depression from which we have been suffering has been worldwide and
that as a result the United States is surrounded by other countries whose
condition may adversely affect us.
We have suffered from failing prices which have caused tremendous
business losses and unemployment,. The nations around us have suffered
from much lower prices and much greater business losses and proportionately from much more unemployment. We have been glutted with goods
which we cannot sell and labor to which we cannot give employment. They
have had a great deal more than we. We have bad bank failures and
consequent fright and panic. We have seen our citizens drag their deposits
out of the bank, where they were helping to sustain business, and hide
those savings in their homes and stockings, where they were useless for such
a purpose. We have witnessed attacks on the solvency of our national
currency and upon the deposits of our gold reserve.
The nations around us have had more bank failures, more acute panic,
much more hoarding of savings by their dares.; and, worse than that.
many of them, even the best and strongest of those nations, have teen
forced off the gold standard into monetary insolvency.
What was the first self-evident policy to be pursued in such a situation?
Manifestly to prevent our bad situation at home from oeing made worse
by the additional dangers from without. Our ship of state might be staggering in the heavy seas, but it la a vessel of great natural buoyancy, and
the first thing to make sure of was that it should have an opportunity to
right Itself without being overwhelmed by further blows from without.
We have been surrounded by a world suffering from an even greater overproduction of goods, particularly agricultural products, than ourselves.
The first thing was to make sure that our situation was not further
complicated by the influx of those goods from abroad into our own falling
market. This was done. In the first summer of Mr. Hoover s term,
even before the depression had become genemi. in order to assist the already
distressing situation of agriculture. Mr. Hoover called a session of Congress.
and a year later the tariff was raised upon those agricultural products which
were most clearly threatened by the oversupplies from abroad.
Furthermore, scientific machinery in the shape of a bipartisan tariff
board was created by which further protection. if necessary, could oe given
to other commodities in case a change of conditions made such further
protection necessary. This can now be done without the adverse effect
on business which is inevitably caused by a general tariff revision by
Congress.
By this action during the crisis of the depression our country has been
protected from further loss and donee. from without. When we consider
the narrowness of the margin by which we have escaped, this protection
may well have made the difference between recovery and complete collapse.
Tariff.
What has been the attitude of the Democratic candidate and platform
toward the situation which I have discussed? What would have been done
if the question had confronted him? What may be done In the future
If the Democrats come Into power? The Democratic platform demands
a competitive tariff for revenue and separate tariff bargains with separate
nations. It abandons the principles of protection. It proposes anew system
so radically different from every system which we have ever bad that It
necessarily involves a general tariff revision; it demands the repeal of the
present Tariff Commission.
Mr. Roosevelt also in his speeches has virtually promised a general
revision and a reduction of the tariff; In other words, even now when the
passage of time has made the emergency of the situation perfectly dear.
both Mr. Roosevelt and his platform attack the fundamental safeguard
which the Republican Party have thrown around American business and
the American workman in this time of emergency.
Of all times, is this the time to abandon protection and substitute a
competitive tariff? If there was ever a time when even a free trader would
admit that' a ta.iff was absolutely necessary for the ueifare of America.
it Is now. when we are surrounded everywhere by immense oversupplies of
foreign goods seeking a chance to be dumped upon our market. The
great economic strength upon which tho United States tuna always depended
has been our home market. The Democratic l'artY Proposes to destroy
it at the very time when that resource is most needed.
Congressional tariff revisions have always been notoriously unsettling
to business, and now, at a time when such a general revision would be
most disastrous at the very moment when business is beginning to find again
its new equilibrium after the depression the Democratic Party
proposes a
general tariff revision.
President Hoover's Reconstruction Program,
The next outstanding contrast to which I shall call your attention. is
that between the way in which Mr. Hoover has handled the terrible financial
panic last year and the attitude shown toward that same situation by
his
opponent. Mr. Roosevelt. This panic developed in the late summer and
autumn of 1931 and lasted through the following winter and spring. Out
People. alarmed by the long continued fall of prices and the business depression and by the sight of panic abroad, became themselves alarmed
lest
our financial system would follow the course of disaster which
they had
seen taking place in Europe. Other nations In th sir alarm were
withdrawing
their gold which they had deposited in our Treasury. American depositors
became panic stricken and began to draw out their deposits from our
banks. This reacted on business and caused a further fall in prices.
A situation soon arose which threatened to destroy utterly
not only
our entire system of banks and saving banks but our insurance companies,
our building loan associations, and all the other fiduciary Institutions with
which the savings of our people aro invested and upon which our business
and the support of our employment are dependent. Over 390 American
banks failed in September 1931 and over 500 more in October.
It was a situation of the most critical nature. It affected every section
and class of our country. Mr. Hoover's treatment of it was appropriate
er
to the charact of the crisis. After careful study and taking the advice
of all men most competent to advlae, he called into conference the leaders
of Congress of both parties and of every shade of opinion. The conference
was held in that historic room,the library of Abraham Lincoln. well qualified
to evoke every sentiment of national feeling and patriotic self devotion.

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Financial Chronicle

In that room Mr.Hoover presented to his guests a program ofreconstruction which should place the credit of the entire American Government
behind the tottering institutions of our people. It was a program which
in its comprehensiveness. courage, and originality was without precedent.
It was presented as a National remedy for a great National emergency.
It was presented as an appeal transcending every consideration of class,
section or Party.
By reason of its intrinsic soundness and the courttge and insistence
with which he pushed It. Mr. Hoover succeeded in getting practically
the entire program adopted by Congress before it adjourned in July.
With the adoption of these measures, the panic ceased. Our people were
reassured. $250,000.000 of currency has come back from the stockings
and gone Into the banks: over $275.000.000 of gold has returned from
abroad to our Treasury, the streams of credit have been loosened and made
available to the business and commerce of thit country. There is a new
spirit of confidence in business which did not exist flee months ago.
The very centre of this reconstruction program was the Reconstruction
Finance Corporation. That was the instrumentality by which the credit
of the Government was loaned to support the tottering credit system of
our people. That was the organization which made the necessary loans
to our banks, our insurance companies and the other institutions In which
our savings were deposited and by which our business was being carried.
As soon as that Corporation was organized and began its work, the beneficent results were immediately visible. The life streams of credit began
to flow into the veins of.our business system and to restore the Impulses
of life which had so long been deficient.
At that very moment, when the hope of recovery was hanging in the
balance. at Albany on April 7 last. Mr. Roosevelt made an attack upon
this beneficent process. He made a speech on "The Forgotten Man,"
in which he asserted that the funds which the Reconstruction Finance
Corporation were distriouting were not reaching the small people and the
small banks and institutions of the country, but were being put solely at
the disposition of the big banks, the railroads and the big corporations.
This was a complete misstatement of facts. Coming at the time that it
did. it was extremely reckless. Mr. Roosevelt has since in part retracted it.
The facts are that the great majority of the banks which have borrowed
from that Corporation are located in small towns; some 70% of them in
towns of less than 5,000 inhabitants; and more than one-fifth of all the banks
In the country have received such loans.
But Mr. Roosevelt's statement wts misleading in a much wider sense,
for in America. as in every other modern nation, the welfare of every
inhaoltant Is so bound up in the Integrity of its credit system that a blow
to that system harms and a benefit to it helps every man, woman and child
In the land. When we speak of helping the banks whom do we mean?
To whom does the help go? It goes to the customer whom the banks
serve; to the depositors sho entrust to it their savings; to the farmers who
borrow from the banks the means of carrying their farms or harvesting
their crops, to the manufacturer who borrows to pay his payroll until his
raw materials are turned into finished products; to the home builder who
borrows to complete his house.
And when a bank closes, who suffers? The wage earner both In factory
and farm: the farmer; the business man, and every man, woman and child
In the country.
The Forgotten Man.
Our country. America, is a great living unit where every man's oenefit
Is intimately and necessarily tied to the welfare of every other man. Whoever seeks to deny that relationship, whoever seeks to set off the welfare
of one class against another class, does an incalculable harm to the welfare
of the entire nation. I am glad to say that other Democrats recognized
these great truths. Mr. Alfred E. Smith. shortly after Mr. Roosevelt's
speech. issued a statement in which he used the following words:
"We should stop talking about the Forgotten Man and about class
distinctions. There is no other country in the world where individual
initiative counts for so much, where opportunities to rise are so great
and where class prejudice is so unimportant. What Is needed in the crisis
of to-day is the united co-operative effort of all good citizens of whatever
class or creed to fight our way out of the bog of depression to the solid
ground of good American enterprise and prosperity,"
In that statement Mr Smith put into vigorous utterance the principles
upon which Mr.Hoover had proposed and was carrying through his program
for the reconstruction of our economic lie. But by his speech of April 7,
Mr. Roosevelt at a very critical moment had not only dealt a blow at our
recovery, but he had shown that he could seek to inflame class prejudices
at the very time when other men, regardless of party. were seeking to
serve the nation.
The last fundamental feature of Mr. Hoover's program to which I shall
call your attention is the most Important one of all. By the autumn of
1931 the losses In business caused by the deepening of the depression and
by the financial panic which had set in had become reflected in the tax
receipts of the Government. It had become evident that the budget of
the Government was heavily out of balance. Furthermore, the work of
reconstruction and relief would ,necessarily throw further burdens upon
the credit of the country.
Balancing of Budget.
Mr. Hoover insisted that the budget must be brought into balance.
He insisted that the program of reconstruction must be carried through
without risking our national credit. Ile insisted that this could only be
done by balancing the national oudget as we went. Ile foresaw that unless
this was done, unless we at once showed our willingness through increased
tares to pay fur both our losses and all expenses of relief and reconstruction.
the world at large would not believe that we would ever pay them. The
world would believe that we had started on the long downward road toward
paper money. inflation, loss of credit and final repudiation, which has
brought misery to millions of people In many countries and In many ages.
On this question of balancing the budget the contrast between the
president and his opponents is sharp and clear. Mr. Garner last Friday
made a speech in which he sought to deny to Mr. Hoover the credit for
balancing the budget. Fortunately actions speak louder than words, and
the countrY has before It the record of the actions of ooth parties during
the long critical months when this struggle over this question was proceeding.
Mr. Hoover Presented the necessity for balancing the budget in his
message to Congress on Dec. 9 1931 and during the eight months that
Congress was in session he continued to press upon that body the absolute
necessity of economy in expenditures, and of raising the revenues neceeearY
to meet them. In the very beginning the President cut the original oudget
proposals of the departments by 3369.000.000. On May 5. when it became
evident that further economies were necessary, he sent a special message
to Congress proposing a further reduction of t230.000.000.
He organized throughout the nation a gigantic program of private and
local relief,thus striving to keen alive the sense of privet*. and local responsibility' for such relief. Ile urged that Government relief appropriations
should be confined to productive projects and he insisted upon other
restrictions by which the expenditures of the Government would be eventually recouped. Day In and day out, by conference with the members of




2755

Congress and by public messages to that body, he insisted that the budget
should be balanced and balanced as promptly as possible in order to restore
the confidence of the people in their Government and thus hasten business
recovery.
In this essential feature of his program Mr. Hoover had the support of
many of the leading Democrats of the country, both in Congress and in
private life. But he did not have the willing support of the Democratic
majority in the House of Representatives, and he did not have the willing
support of the man who was the Speaker of that House and who is now
the Democeatic candidate for Vice-President. While it is true that Mr.
Garner proposed to support the doctrine of a balanced budget, that did not
prevent him and the Democratic majority of the House from again and
again throwing themselves behind proposals which would have hopelessly
wrecked the budget, destroyed thelcontidence of the country and placed Insuperable obstacles in the path of recovery.
Sags Recklessness of House Discouraged the Nation.
The Garner bill, providing nearly $1,250,000,000 for the construction
of nearly 3.000 unneeded postoffices and many other unnecessary public
buildings and other works, was such a proposal, and its passage by the
Democratic majority at a time when our national solvency was at stake
was an act of reckless irresponsibility. These proposed expenditures were
so uncalled for that many of the very communities where such buildings
were to oe placed protested against the proposal.
The Patman bill, providing for the payment of a bonus to veterans of
32.250,000,000 by the issuance of paper money, was another such proposal,
and its passage by the Democratic House was an even more flagrant act
of reckless irresponsibility. The Garner bill, which proposes to allow any
individual who could not raise money elsewhere to borrow from the Government of the United States and thus put the Government into a gigantic
pawnbroking business, was another such proposal; and yet it required
the veto of the President to stop it.
The action of the Democratic majority of the Hot se in rejecting the
unanimously reported bill of their own Ways and Means Committee for
balancing the budget wasted many precious weeks and set back the cause
of recovery at the most critical period of last spring. Each of these steps
was taken when time was precious, when the nation's condition was most
threatening, and against the earnest protest of all sane and sober advisers
of both political parties. These actions were chiefly responsible for the
long delay in balancing the budget which caused the gloom and discouragement of last spring and early summer.
This record is relevant to show what we may expect in the future. It
Is also a measure of the difficulties which will confront Mr. Roosevelt
In case he is elected. It takes special courage to be a sound-money President
of the Democratic party. His own party will thoroughly test out the
stanchness of Franklin D. Roosevelt if he becomes President. The same
proposals which confronted Mr. Hoover will undoubtedly be hurled at him.
Take the question of the Immediate payment of the $2.250.000.000
for the veterans' bonus. If that payment were made it would at once
destroy the balance of the budget which Mr. Hoover labored so hard last
winter to establish. The mere possibility of it has thrown a chill on the
reviving business situation. Every day that passes, while the situation
Is thus left uncertain, retards our recovery and endangers our financial
credit. Mr. Hoover at once promptly and publicly made his position
clear. Mr. Garner has announced that he would say nothing on the subject.
Mr. Roosevelt has thus far remained silent, when every day of silence
was a blow to the credit of the Government and the restoration of business.
Some of his friends say he has already taken a stand and others say that
he will soon do so, but I say he has said nothing.
He has toured the country from one end to the other and talked of
many things. He has told us of King James ferryboats and Alice in Wonderland and Humpty-Dumpty. But upon the specific questions upon which
more than anything else the economic recovery of this nation now depends,
and as to which the upholders of national solvency are most keen to hear,
he has said nothing.
We do not know whether he favors the various bills which his party
favored last winter or not. We do not know whether he will fight courageously for a balanced budget against them or not. We do not know whether
be approves the $5.000,000,000 public program of his supporter, Mr.
Hearst, which would set back the cause of recovery even further than the
bills which Mr. Garner has proposed. All we know is that a grim battle
has been successfully waged thus far against all of these evils by Mr. Hoover,
that the battle is still on and more attacks are threatening, and that Mr.
Roosevelt has said nothing.
Holds Governor Fails as Reformer in State.
Even where Mr. Roosevelt has touched upon the conditions of the
depression the few suggestions which he has made have been belied by
his own performance as Governor of the State of New York. He has
criticized what he terms the orgy of speculation and excessive flotation
of securities, and has promised that if elected President he will control
such action in the future. He has demanded publicity for the investor.
And yet for four years he has been Chief Magistrate in the jurisdiction
where the great stock exchanges of the country are located, and where 90%
of all the securities issued in this country are originated.
He has been the Governor of New York during the very time when
the evils which he now criticizes have occurred; and yet he has not taken
one single effective step to control such evils along the lines he now suggests.
As Governor he has had power to do these things; as President his jurisdiction would at best be most doubtful.
While Mr. Hoover has been successfully pu3Ing through a great program
to support and protect the banks and other fiduciary institutions of the
country from the economic depression New York banks and trust companies
have been failing under circumstances which reflect no credit upon the
administration of the New York Banking Department, over which the
Governor testified he has responsible supervision. Since Mr. Roosevelt
became Governor one Superintendent of that Department has been convicted of the crime of bribery, and another Superintendent has been charged
with criminal neglect of duty, although on that charge be was acquitted.
in December 1930 after many preliminary warnings and after Governor
Roosevelt had refused insistent requests for ageneral investigation of the
Department.
The greatest banking catastrophe in New York history occurred when
the misconduct of its officers brought down In ruin the great Bank of
United States, a New York State bank, with losses to 440,000 depositors
and stockholders In affiliated organizations. Truly the people of thls
country might well ask of Franklin Roosevelt that before he sought to be
"ruler over many things" he might better show himself "faithful over
a few things."
I shall close with the same appeal which I made at the beginning. This
Is not a time to cast a ballot with a mind blinded by adversity or swayed
by emotion. It is a time when the future of our country demands that
its citizens should exercise the great power of the ballot with the clear
minds and the steady hearts which have always characterized the American
people in great emergencies. If this economic disaster had swept upon
the country when any other man was In the Presidency, is it not a fair

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Financial Chronicle

assumption to make that of all Americans competent to deal with such a
situation. Herbert Hoover. by reason of his tested experience and his
success in so many other economic crises, wouid have been sought out
by his country and asked to devote his tried skill and powers to its solution?
When the crisis came it found him in the Presidency. For ever three
years you have had the picture before you 01 his unswerving fidelity. his
courageous initiative and his great sagacity. We have come through a
hurricane which has wrecked most of the Governments of the world with
our economic structure and the principies of our Government still sound
and secure. The ship is still on her course and the break in the clouds is
beginning to show through the spindrift, but the waves still are high.
It is not the time to displace the captain who has brought her thus far?
I am a New Yorker. proud of my State and party. and I cannot close
without expressing in a word at least the pride and satisfaction which I
take in the local ticket which has been put out this year by our party.
Almost the last time I saw Colonel Donovan I had the honor of greeting
his gallant figure on the battlefield of the Ourcq immediately after the
close of that hard-fought contest, in which his regiment participated with
such distinction. He has brought to every duty civil and military, dauntless courage and great energy. Those qualities are certainly needed now.
Mr. Medalie, candidate for Senator. and Mr Davison. candidate for
Lieutenant Governor, are fit associates on such a ticket. They have records
of service, alike of civil and military life, of marked distinction. With them
in of ice we may expect a State Administration of high efficiency and a
worthy representation in the Senate.

Governor Franklin D. Roosevelt, Democratic Candidate
for President, Indicates Views as to Federal and
State Governments in Providing Funds for Unemployment—Would Set Up "Nest Egg" in Times of
Prosperity for Use of Public Works in Periods of
Depression—Advocates Unemployment Insurance.
In a radio speech at Albany, N. Y., on Oct. 13, Governor
Franklin D. Roosevelt, Democratic candidate for President,
indicated his position "in relation to the duty of the Federal and State and local governments to provide funds and
aid for the relief of those out of work." "I am very certain,"
said Governor Roosevelt,"that the obligation extends beyond
the States and to the Federal Government itself if and
when it becomes apparent that States and communities
are unable to take care of the necessary relief work." Governor Roosevelt further declared "that where the State
Itself is unable successfully to fulfill this obligation which
lies upon it, it then becomes the positive duty of the Federal
Government to step in to help." Criticizing the opposing
party, he said "it took the present Republican Administration in Washington almost three years to recognize this principle." Among other things, Governor Roosevelt said:"From
the long-range point of view it would be advisable for governments of all kinds to set up in times of prosperity what
might be called a nest egg to be used for public works in
times of depression. That is a policy which we should
Initiate when we get back to good times." Turning to the
question of unemployment insurance, Governor Roosevelt
stated that this was "directly answered by the Democratic
platform, which advocates unemployment insurance under
State laws. This," he added, "is no new policy for me. I
have advocated unemployment insurance in my own State
for some time, and, indeed, last year six Eastern Governors
were my guests at a conference which resulted in the drawing up of what might be called an ideal plan of unemployment insurance." Governor Roosevelt also said:
This type of insurance is not a cure-all, but it provides at least a cushion
to mitigate unemployment in times of depression. . . .
As to the co-ordinated employment offices, I can only tell you that I was
for the bills sponsored by Senator Wagner, of my own State, and passed
by the Congress. They created a nationally co-ordinated system of employment offices operated by the individual States with the advisory co-operation
of Joint boards of employers and employees. To my very great regret this
measure was vetoed by the President of the United States.

In full, Governor Robsevelt's address follows:
I RID speaking to you from my desk in the Executive Mansion in Albany
OD a subject which is not in the norrower sense of the word political, but
which, because it is connected with government, vitally affects the life of
almost every man, woman and child in the United States.
I cannot, of course, answer the hundreds of questions which come to me
in every mail, but a letter signed by 10 of the leading social welfare
workers permits me to use their questions as a text for the expression of
certain great basic principles which are vital to us in this time of stress.
The first question asks my position in relation to the duty of the Federal
and State and local governments to provide funds and aid for the relief of
those who are out of work.
The problem therein outlined is one which is very real in every section
of the country, as I have good reason to know. This was accentuated by
what I saw and heard on my recent trip to the Pacific Coast. Let use
answer it by laying down what I believe to be certain cardinal principles.
In the first place, even in an ideal community, where no one is out
of work, there would always be the need of welfare work conducted
through the churches, through private charity, and by local government—
the need for clinics and hospitals and vocational training, the need for
the care of the aged, for care of mental cases, and for care of the
crippled.
Such communities where there is no unemployment are almost Utopian,
for even in times of prosperity there are always some unemployed—people
who want to work but can 'find no work. .
The first principle I would lay down is that the primary duty rests on
the community, through local government and private agencies, to take
care of the relief of unemployment. But we then come to a situation where
there are so many people out of work that local funds are insufficient.




Oct. 22

1932

It seems clear to me that the organized society known as the State
comes into the picture at this point. In other words, the obligation of
government is extended to the next higher unit.
I practice what I preach. In 1930 the State of New York greatly
increased its employment service and kept in close touch with the ability
of localities to take care of their own unemployed. But the slimmer of
1931 it became apparent to me that actual State funds and • Statesupervised system was imperative. I called a special session of the
Legislature and they appropriated a fund of $20,000,000 for unemployment
relief, this fund to be reimbursed to the State through the doubling of
our income taxes. Thus the State of New York became the first among
all the States to accept the definite obligation of supplementing local
funds where these local funds were insufficient.
The administration of this great work has become a model for the rest
of the country. Without wetting up any complex machinery or any large
overhead, the State of New York is working successfully through local
agencies, and in spite of the fact that over a million people are out of
work and in need of aid in this one State alone, we have so far met at
least the bare necessities of the case.
This past spring the Legislature appropriated another $5,000,000, and
on Nov. 8 the voters will pass on a 830.000,000 bond issue to tide us over
this winter and at least up to next summer.
Obligation of Federal Government.
Finally, let me come to the last step in the statement of the principle.
I am very certain that the obligation extends beyond the States and to the
Federal Government itself if and when it becomes apparent that States and
communities are unable to take care of the necessary relief work.
It may interest you to have me read a short quotation from my message
to the Legislature in 1931:
"What is the State? It is the duly constituted representative of an organised
society of human beings, created by them for their mutual protection and well-being.
One of the duties of the State is that of caring for those of its citizens who find
themselves the victims of such adverse circumstances as make them unable to
obtain even the necessities of mere existence without the aid of others.
"In broad terms. I assert that modern society, acting throueh Its government,
owes the (tenni e obligation to prevent the starvation or the dire want of any of its
fellowman and women who try to maintain themselves but cannot. To these
unfortunte citizens aid must be extended by the Government—not as a matter
of charity, but as a matter of social duty."
That principle which I laid down in 1931, I reaffirm. I not only reaffirm
it, I go a step further and say that where the State itself is unable successfully
to fulfill this obligation which lies upon it, it then becomes the positive
duty of the Federal Government to step in to help. In the words of our
Democratic national platform, the Federal Government has a "continuous
responsibility for human welfare, especially for the protection of children."
That duty and responsibility the Federal Government should carry out
promptly, fearlessly and generously.
It took the present Republican Administration in Washington almost
three years to recognize this principle. I have recounted to you in other
speeches, and it is a matter of general information, that for at least two
years tine the crash, the only efforts made by the National Administration
to cope with the distress of unemployment, were to deny its existence.
When finally this year, after attempts at concealment and minimizing
bad failed, alien they were at last forced to recognize the fact of suffering
among millions of unemployed, appropriations of Federal funds for assistance
to States were finally made.
I think it is fair to point out that a complete program of unemployment
relief was on my recommendation actually under way in the State of
New York over a year ago, and that in Washington relief funds in any
large volume were not provided until this summer, and at that they were
pushed through at the demand of the Congress than than through the leadership of the President of the United States.
At the same time, I have constantly reiterated my conviction that the
expenditures of cities. States and the Federal Government must be reduced
in the interest of the nation as a whole. I believe there are many ways
In which such reduction of expenditures can take place, but I am utterly
unwilling that economy should be practiced at the expense of starving
people.
We must economize in other ways, but it shall never be said that the
American people have refused to provide the necessities of life to those
who, through no fault of their own, are unable to feed, clothe and house
themselves. The first obligation of government is the protection of the
welfare and well.being—the very existence of its citizens. So much for that.
Attitude Toward Appropriations for Public Works.
The next question asks my attitude toward appropriations for public
works as an aid of unemployment. I am perfectly clear as to the principles
involved in this case atso.
From the long-range point of view it would be advisable for governments
of all kinds to set up in times of prosperity what might be called a nest
egg to be used for public works in times of depression. That is a policy
which we should initiate when we get back to good times.
But there is the immediate possibility of helping the emergency through
appropriations for public werks. One question, however, must be answered
first, because of the simple fact that these public works cost money. We
all know that Government Treasuries, whether local or State or Federal,
are hard put to it to keep their budgets balanced, and in the case of the
Federal Treasury thoroughly unsound financial policies have made its
situation not exactly desperate, but at least threatening to future stability,
If the policies of the present Administration are continued.
All public works—including Federal—must be considered from the point
of view of the ability of the Government Treasury to pay for them. There
are two ways of paying for public works.
One is by the sale of bonds. In principle, such bonds should be issued
only to pay for self-sustaining projects or for structures which will without
question have a useful life over a long period of years. The other method
of payment is from current revenues, which in these days means in most
cases added taxes. And we all know that there Is • very definite limit
to the increase of taxes above the present level.
From tnis point, therefore, I can go on and soy that if funds can be
properly provided by the Federal Government for increased appropriations
for public works, we must examine the character of those public works.
I have already spoken of that type which is self-sustaining. These should
be greatly encouraged.
The other type is that of public works which are honestly essential to
the community. Each case must rest on its own merits. It is impossible,
for example, to say that all parka or all playgrounds are essential. One
may be and another may not be.
If a school, for instance, has no playground, it is obvious that the
furnishing of a playground is a necessity to the community. That if the
school already has a playground and some people seek merely to enlarge
it, there may be a very definite question as to how necessary that enlargement is. Let me cite another example. I am much interested in providing
better housing accommodations for the poor in our great cities.

Volume 135

Financial Chronicle

modern buildings put up.
If a slum area can be torn down and new
but, on the other hand, the
I should call that almost a human necessity,
part of the city while allowing
mere erection of new buildings in some other
of necessity. I am confident
the slums to remain raises at once a question
co-operation with States and
that the Federal Government, working in
public works and along lines
cities, can do much to carry on increased
point of view.
which are sound from the economic and financial
Unemployment Insurance.
am asked whether I favor a system
Now I come to another question. I
made compulsory by the States, sapof unemployment insurance reserves
employment offices
plementer! by a system of Federally co-ordinated State
workers.
to facilitate the re-employment of jobless
by the Democratic
The first part of the question is directly answered
under State laws.
platform, which advocates unemployment insurance
unemployment insurance
This is no new policy for me. I have advocated
last year six Eastern Governors
In any own State for some time, and indeed
drawing up of what
were my guests at a conference which resulted in the
insurance.
might be called an ideal plan of unemployment
at least a cushion
This type of insurance is not a cure-all, but it provides
of depression. It is sound if, after
to mitigate unemployment in times
financing. It is
starting it, we stick to the principle of sound insurance
have failed to live
only where governments, as in some European countries,
ent insurance has been an
up to these sound principles that unemploym
economic failure.
can only tell you that I
As to the co-ordinated employment offices, I
of my own State and passed
was for the hills sponsored by Senator Wagner
co-ordinated system of unemby the Congress. They created a nationally
the advisory
ployment offices operated by the individual States with
To my very
co-operation of joint boards of employers and employees.
the United States.
great regret this measure was vetoed by the President of
furnishing leadership,
I am certain that the Federal Government can, by
useful
stimulate the various States to set up and co-ordinate practical
systems.
Work of Federal Government in Behalf of Children in Depression.
the relief
These first three questions which I have discussed related to
that the next two
of those who are unemployed, and it is perhaps logical
we know that unemployment
questions should relate to children, because
works a great hardship on the young people of the corning generation.
done
I certainly favor the continuance of the fine work which has been
we must
by the Children's Bureau in Washington, but at the same time
not forget that the Federal Government, through several other agencies,
is constantly working for the welfare of children.
Attempts have been made to cut the appropriations for child welfare
work. It seems to me that this is the last place in which we should seek
Hoover's
to economize. I cannot agree with the member of President
Cabinet who suggests that this depression is not altogether a bad thing for
fact that malnutrition is one
our children. You and I know the appalling
of the saddest by-produets of unemployment. The health of these children
is being affected not only now but for all the rest of their lives.
Furthermore, • depression takes thousands of children away from schools
and puts them to work to help the family income. They are underpaid
and only too often work under conditions which, physically and morally,
are often dangerous. It is well to remember, too, that the use of these
untrained children in industry keeps many adults out of employment and
has the effect of cutting down wages below a decent living standard.
These are only a few of the many reasons why the Federal Government
must continue to act as an agency to disseminate information about child
welfare and to encourage State and local governments to raise their
standards to the highest possible level.
l'ocational Education for Children.
The last question relates to keeping children in school to the age of 16.
I am in favor of that. Furthermore, I go along with the thought that we
must increase vocational education for those children who otherwise would
not receive adequate training. That kind of vocational training will raise
in
the standards of worthwhile employment, not only now but also
normal times.
of the
My own observation leads me to believe that in many parts
country we have tended to an educational system devised too greatly for
academic training and professional careers. We know that already many
the
of the professions are oversupplied, and it is a fair guess that during
coming generation we shall devote more attention to educating our boys
honorable, just as
and girls for vocational pursuits which are just as
respectable, and in many instances just as remunerative as are the professions themselves.
The Federal Government, without in any way taking away the right and
the duty of the several States to manage their own educational affairs,
can act as a clearing house of information and as an incentive to higher
standards.
Problems of Public Health and Social Welfare.
But the Federal Government has had no continuing policy for dealing
with problems of public health and social welfare. In this as in other
activities a multiplicity of unrelated agencies have been developed hit-or-miss
to deal with aspects of the same problem. The result has been waste of men
and money; more costly and less efficient service than we should have.
The Administration has done nothing to reorganize this or other branches
of the Federal Government, in spite of campaign promises at the last three
Presidential elections. I propose to inaugurate a definite long-range plan
for dealing with all phases of public health and welfare, which are a proper
concern of the Federal Government.
May I add that in the State of New York during the past four years we
have accomplished definite and practical results by co-ordinating and
planning the work of the State?
I cite as a simple example the public health program, which is a part
of my administration. It has been referred to in other States as the most
Important contribution to practical public health work during this generation. And all of this we have taken out of politics. The same principles
can and should be applied to the health and welfare work of the Federal
Government.

Appeal to Country in Behalf of Unemployed—Asks Contributions to Direct
Relief of Local Needs.
In closing, will you let me make an appeal to the entire country—an
appeal with all my heart, with all my mind and with all my soul—to let
nothing interfere with the duty and obligation of coming forward as individuals and as groups to the support of the unemployed and the support of
their dependents during the coming winter?
to the State of which I am
By proclamation I can make official appeal
Governer, but I think that I have the right as a Presidential candidate to
fellow-Americans in every other State.
make an unofficial appeal to my
above the age of reason in the
I wish that every man, woman and child
ng Day and the corning
whole country would make the coming Thanksgivi




2757

clothing, or
Christmas Day occasions to contribute with money or food or
all three, to the direct relief of local needs.
the
Let us remember that in addition to whatever it may be possible for
relieving
Federal Government or State Government or municipalities to do in
and distress
the tremendous and increasing burden of relief work, misery
will still be great unless individuals, unless societies and churches practice
greater
actual charity—actual love of their neighbor—to an extent even
than at any time in the past.
own
Let us who have jobs or money or shelter for ourselves and our
families share with the less fortunate. Thanksgiving Day and Christmas
Day of 1932 will take on an added significance—the significance of a
higher American ideal of social justice.

Governor Franklin D. Roosevelt, Democratic Nominee
for President, in SpeeclCat Buffalo, Says State of
New York "Can't Go Broke"—Budget "Best Balanced" of any State in Union—Urges Approval
at Polls of $30,000,000 Bond Issue for Unemployment Relief.
Gov. Franklin D. Roosevelt, Governor of New York
and Democratic candidate for President, in an address
delivered in Buffalo, N. Y., on Oct. 18, spoke of some of
things,
the problems of the State. He declared, among other
"I am proud that in this period of depression we have come
through with the best balanced budget of any State in the
Union." Further along in his remarks Gov. Roosevelt
said:

borrow money for 30 years.
Now. the State of New York can't go and
so that that deficit of
It has got to balance its budget the following year
year. I call that pretty good
this year is actually paid off within the next
has lived up to these
business and the Democratic party in this State
good business practice
clauses in the constitution. and has lived up to the
next two or three weeks—
of balancing budgets. Now you will hear lathe
will hear about how the
I will come down to the next point of this—you
cost of government in this State has gone up.
ion, when we slipped backward In
Since that famous Miller administrat
ahead in the previous tea, the
two years almost as much as we had gone
State of New York in
comparison is made between the cost of running the
cost of State governand in 1932. and here is the figure: In 1922 the
1922
00, and they are
ment was $143.000.000 and in 1932 It was $276,000.0
00 which we are spending
asking you how about that increase of $133.000,0
years ago.
to-day over and above what we spent 10
d thing called a budget;
I could go on throughout the length of a complicate
that, taking it by and
I could give you lots ot 'figures, but the fact remains
is made up in large part
large. this Increase over 10 years of $133,000,000
0: secondly, State aid
of three items: first, debt service, about $12,000.00
the localities to spend, most
to localities, not for the State to spend, but for
caused by the fact that
of it on education: and thirdly, the normal increase
birth control and insists on
the population of this State does not believe in
more people in the
going up. We have to take care of about 1.500.000
a fair question.
State of New York than we did 10 years ago, and so it is

Regarding proposals which come before the voters of the
State on Nov. 8, Gov. Roosevelt said:

for Pittsburgh and
And now there is just one more thing oefore I start.
that is coming up
that is, I want to tell you there is just one more thing
8. There are just two
in the ballot box, on the voting machines on Nov.
One is this $30,propositions to be put before the voters of the State.
through almost un000.000 bond issue that I hope and pray that it goes
animously.
opening of the
The other is a proposition for the weakening, for the
preservation of
splendid constitutional provision that we have now for the
. . .
our Adirondack preserves and our Catskill preserves.
recognizAnd so I hope that there won't be any question that the people.
and save our own
ing their heritage, will vote "No" on that proposition
woods.

Gov. Roosevelt's Buffalo speech is taken as follows from
the New York "Times":

Erie County, and
Mr. Chairman, and my old friends of Buffalo and
western part of my State:
second of July
The last time I was here in waking hours was on a certain
and I shall
when I entered Buffalo from the air on my way to Chicago.
field of yours out. there, or that
never forget either that splendid flying
wish me godsdevoted little group of my old friends of Buffalo who came to
speed on the rest of a very bumpy journey.
two things
Way back about that time, on the second of July. I hoped that
would happen later on in the Fall.
The first was that Lieutenant Governor Herbert Lehman, would be
was that I
nominated for the Governorship of this State. and the second
your vote
hoped to be able to come out to Western New York to bespeak
in his behalf.
of this State. in telling you
I will be quite frank with you, my neighbors
in this State.
that I am not going to do any campaigning on my own behalf
for the very good reason that you people know me.
That
You know whatever there is good in me and you know my faults.
as to whether I will
being so. I am going to leave it to your good judgment
And I ant not going to talk
carry the State again on Nov. 8 by 725.000.
politics.
to You to-night or make a formal speech about national
Says Problems Go on in intensita.
I am going to talk to you as one of your neighbors. talk to you a little
been
bit about some of our problems in this State: problems that have
yours and mine over a great many years; problems that have been in large
in
Part solved, so far as the present goes; problems which will continue
that
intensity, continue in importance, during the coming years: problems
of forwardcan be faced in one of two ways—either from the point of view
looking, progressive government, or from the point of view of the kind of
a
government that you and I had in this State the last time that we had
Republican Governor, and I refer to an old friend of mine, a fine citizen,
Governor Miller. who served from 1921 to 1923.
And the reason I speak feelingly of this matter is this: way back. 20 years
ago
-22 years ago, to be exact—there were a number of young men in the
Legislature, a Legislature that was, that year. Democratic for the first
time in 20 years, the Legislature of 1911, young men like Jim Foley, Bob
Wagner, Al Smith and myself.
Out of that session of 1911. there grew a definite policy which has been
that of the Democratic party in this State ever since and perhaps because

2758

Financial Chronicle

we tag the Democratic party with the Progressive label, by the same token
the other party has had the other kind of a label.
It has stood for cheese-paring, for conservatism and for a complete
failure through all these years to initiate any measure of progress that you
and I have ever heard of.
Recalls Measures of 1911 Legislature.
Let us run through the list:
There in 1911. you people in this State got out of that one session alone
more progressive legislation than you had had in a lifetime—workmen's
compensation, that was an achievement all by itself.
You got direct primaries.
You got factory inspection laws. You got the protection of women and
children in industry. You got the provision for one-day rest in seven.
And even in those days. and by that legislation we can prove it. the
Democratic party was talking and acting in behalf of what I call the "forgotten man."
In other words, the men and women constituting the great mass of the
people, who because they have not got position, who, because they have not
got wealth, are more than likely to be overlooked in the processes of
government.
Says State Stood Still Under Republicans.
That's why they need the protection of a party that stands for liberalism
and humanity.
And for four years in Albany the government of the State continued
progressive legislation. And then for four years it stood still under the
administration of Governor Whitman.
The result was that when Alfred E. Smith was elected to office for the
first time in 1918 he found much to do—and he Put his shoulder to the
wheel.
He was followed by two years of Governor Miller. And a great deal was
said and done about economy during those two years. So much so, my
friends, that when Governor Smith came back on the first of January
1923. he found the men and women of the State who are unfortunate enough
to have to go to the hospitals of the State—he found them living and sleePing out in the corridors.
Ile found them living under conditions that were 100 years out of date.
He found the prisons of the State overcrowded and full of the highest type
of unsanitary conditions.
And he had to start to make up for the loss of time. You know his great
record for six years. You know the strengthening of the labor laws during
that period.
You know bow he protected this State against the effort to steal from the
People of the State the State-owned water power of the St. Lawrence.
You know about the great system of parka which he instituted from one
end of the State to the other and you know the great odds that he fought
against.
The Republican leadership in both houses of the Legislature was constantly trying to block, block, block and block, every time, every move
that he initiated. something -for the benefit of the average citizen. Four
years ago I inherited the same kind of a fight. Well. I like a fight.
Somebody said up in Rochester to-day that I had my fighting clothes on.
They are right. I have only got three weeks to go. and I am not going to
take them off. Now let's do a little analyzing; as Al would have said.
"Let's look at the record."
You are going to hear a great deal about the government of this State in
the next three weeks. You are going to hear the same old story that confronted you people in 1922. 1924 and 1926 and 1928 and 1930.
Proud of this State's Balanced Budget.
I see you know the answer.
And how does the credit of the State of New York compare with the
credit of the other 47 States of the Union?
And it is the same answer. because this State has the best credit and the
soundest structure of government finance of any State in the Union. and
I am proud of it. and I am proud that in this period of depression we have
come through with the best balanced budget of any State in the Union.
Now, let's see why. It isn't entirely Morris's doing, or mine. There
happens to be a clause in the Constitution of this State—and it ought to be
a clause in the Constitution of every State, and of the United States Government as well—ft is a very simple clause.
It provides that every year In January the Governor of the State shall
submit to the Legislature a budget.
Now what does that mean? It must be a balanced budget, and thereupon
the Legislature are supposed to pass appropriations, and, if necessary, taxes
to create a balanced system of finances for the State.
Cites Achierement of 48-Hour Law.
And every time you saw through the fog, you saw through the beclouding
of the true issue, and the result was that you sent down to Albany Demo
(vatic Governors.
Let us ask some questions. Who was it that proposed to make the
so-called 48
-hour a week law for women In industry a real 48-hour law?
It took me two years of cussing and brow-beating the Republican leaders in
the Legislature before I could make it a 48
-hour law.
Who was it that proposed a half holiday a week for women in Industry?
Oh, after two years the Republican Legislature put it through, but it took
two years of constant prodding to get it done, and I suppose somebody will
now say it was a Republican measure.
Who proposed putting occupational diseases of workers under the workmen's compensation act? That took me three years and finally my good
friend. Judge Knight. caved in.
Who was it that proposed the extension of the system of State employment offices in this State over the protest of the Republican leader?
Who was it that put every year into the budget money to carry out
Alfred E. Smith's system of State parks for the average citizen?
And last but not least, who was it that first suggested—ask your former
fellow-citizen, the present Republican candidate for Governor,that question
—who was it that proposed the present system of old age pension laws In
this State?
Yee, and who put through, after a three-year fight, the law for the
development of the State-owned water power on the St. Lawrence for the
benefit of the home owners and farm owners and small business men of this
State? Ask him that.
Tells What Was Done for "Forgotten Man."
There came out in the paper the other day a report of a speech by your
distinguished fellow-citizen, who, by the way, is an old friend of mine, and
a fine fellow and a brave soldier—and the story of his speech contains this
headline: "Colonel Donovan Ridicules the Forgotten Man."
And he wants to know what we have ever done for the forgotten man?
/ have gone back with you good people to 1911. and I have shown you what
has been done for the forgotten man, in this State and under Democrats
and under Democratic Governors. Now let us just go a little bit further.




Oct. 22 1932

Let us analyze some more things that have been said and some things
that are going to be said in the next three weeks. You will be told that this
State is in a serious way financially.
Well, that is easy for people in Buffalo. All you have to do is to ask
Morris Tremaine.
Or if you do not believe Morris—although he La the best Comptroller the
State has ever had—you can go to your banker and say what is
the credit
rating of the State of New York? How does the credit of the State of New
York compare with that of the Federal Government?
Says New York State Cannot "Co Broke."
But into that budget mind go whatever deficit there has been during the
previous year. The result is that from the bookkeeping point of view, or
from a cash point of view, the government of the State of New York can
never be more than one year behind. Get that.
And it means that if there is a deficit in our State finances this year—
in other words,if the tax receipts don't measure up to what we had
expected
them to Le—then the appropriation and the taxes for the following year
must be enough to pay off the deficit of the preceding year. Is that clear?
In other words, the State of New York can't go broke.
More than that—let me put it another way: suppose we run a deficit in
our family bookkeeping for one year, we cannot
constitutionally go out
to the banks and say, "Let us have a long-term borrowing of that amount
and spread this deficit over 20 or 30 or 40 years." That, my friends, is
the custom of the Federal Government during the present administration.
I will tell you what it is like: let us take a simple illustration:
if you or I
in our own families—suppose we figure out at
the beginning of the year a
family budget based on our income, and suppose the
family income is.
say $2,500 a year. We fix up. with the aid of our good
wife, estimated
expenditures that are within the $2,500.
Now suppose for the sake of argument that the salaries
of the father and
whoever else works in the family, are cut down to $2.000
a year. We
can't, perhaps, cut out expenditures quite fast enough to
get the cut in our
salaries, and the result is that at the end of the year the
family ends up with
a deficit of $200.
Under the Washington system, the family would go to the bank
and say,
"Lend us $200 for 30 years," And then, if they ran a
deficit the following
year. they would go to the bank again, and say,"Lend us
another couple of
hundred dollars to be paid back in 30 years," and the result
would be that
each year we would be getting deeper and deeper into the hole. And
very
soon, after a short number of years, we would find as
a family that the
continuing interest charges of the bank on those loam] were
actually eating
up all our income,and we would have to go to the poor
house.
Now, the State of New York can't go and borrow more
for 30 years.
It has got to balance its budget the following year so that that deficit
of
this year is actually paid off within the next year. I call
that pretty good
business, and the Democratic party in this State has
li;ed up to those
clauses in the Constitution, and has lived UP to the good
business practice
of balancing budgets.
Now, you will hear in the next two or three weeks—I will
come down to
to the next point of this—you will hear about how the cost of
government in
this State has gone uP.
Since that famous Miller Administration we slipped backward
in two
Years almost as much as we had gone ahead in the previous tea.
The comparison is made between the cost of running
the State of New
York in 1922. and in 1932, and here is the figure: in 1922
the cost of State
government was $143,000,000 and in 1932 It WAS $276.000.000
and they are
asking you how about that increase of $133.000,000 which
we are spending
to-day. over and above what we spent 10 years ago.
All right, that's a fair question, if it is fairly put and
honestly asked.
What is the answer?
Number One.—Now. I will Just touch the high spots,
because they are
easy figures to get-8133.000.000 has got to be spent some way
or another.
Well, number one, the State's policy has been to build certain
structures,
like hospitals, that will last 80 or a 100 years: or prisons
like the one over
here in Attica, that will last 80 or 100 years—to build
them through bond
Issues rather than to make the poenle of the State pay for
our lack of
facilities, our lack of foresight, over a whole generation gone
by.
And so we have gone to the State for somewhere
around 4200.000,000
to build permanent structures to eliminate the grade
crossings—and
Buffalo knows something about that, because you got
a great big slice of
it—and of the interest charges on those bonds. And
by the way we are
paying off every year. running $12,000,000 higher
than they did 10
Years ago.

Tells of Money Used for State Aid.
That's what they call debt service. Does the
distinguished gentleman
who is running for Governor on the Republican ticket
think that he can
cut down on that debt service?
That's easy. You've got him there.
And then the next item is $80,000.000, a great big whale
of an item. It's
made up of what I call money that flies through Albany.
It is made up of
money that comes in from tax collections, income tax,
inheritance tax,
corporation tax,stock exchange tax, and so forth and so on, and
it comes in
to Morris Tremaine's office in the morning, and in the afternoon
he sends
it out in the form of checks—a big check to New York
City, and another
big check to Buffalo, and another one to Rochester. Syracuse
and Utica.
Cattaraugu.s, Shenango, Orleans and every other county in
the State.
In other words, it is what we cill State aid. It is money
that is collected
by the State and turned over to the localities for them to
spend.
Sixty-eight million dollars of this increase goes to one
form of State aid
alone. education.
I don't know what the figure of your check that you get
in the City of
Buffalo, or the County of Erie, from the Comptroller of this
State to help
pay for your common schools, grade schools, high schools,
teachers college
and so forth and so on, but it rune into the mallorts.
Now can we cut there? Sixty million out of the one
hundred and thirtythree increase is caused by the policy of this State to help in
the education
of every child in the population of our State
Vuoles Donovan on State Cuts.
I believe that Colonel Donovan said down in
Brooklyn the other daY,
or down in Queens, "Oh. I wouldn't Cut that. I don't
believe in cutting
down in the educational facilities for our children."
Well, let's go on. I wonder if he believe; in cutting
down on the aid to
towns and counties for all sorts of puzposes? It
isn't a big item, only a
million and a half.
I wonder if he believes in cutting on the farm problem
a couple of hundred
thousand dollars for snow removal.
Well, we want to get our milk and other things in the
Wintertime as
much as in the Sununwtime, and we try to keep
the roads clear.
I wonder very much if he believes in cutting down
or stopping altogether
the eight million doilars that the State pays to the
localities every year for
old age support?

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Financial Chronicle

Commission's Work on Old-Age Pensions.
I was talking about that before—old-age pension. Four years ago I
went to the Legislature and asked them to pass a law, and they gave me a
commission.
You know it is perfectly marvellous how quick people are in this campaign,
in any State in the Union. to know Just what I mean when I say "commissions." Oh the commission racket has not been a patented article by
Washington, D. C., by a long shot. It is a patented article especially of
the existing Republican leadership in almost every State in this Union,
Including New York.
Well, they gave me a commission to investigate old-age pensions, but
by great luck they put on some pretty good People, and I managed to slip
on some perfectly grand people as minority members, and the result was,
to the perfect horror of the Republican leaders, the second year this commission brought in a report and said: "We are in favor of old-age pensions."
The Republican leaders did not like it at all, and they began to hear from
the State, and of course the theory was a very simple one.
The theory was that in these modern days it is a whole lot better, when
old people get to the point where, through no fault of their own, they are
up against it, they are in need and want, that it is far better for the State
to spend something to keep them with their own families, with their own
relatives, or in the homes of their neighbors, keep them in home life rather
than cart them off to the finest nstitution In the world.
Yes, there were somewhere around $80.000,000. That went for contributions by the State to local government.
And then we set up, as we should have done, quite properly, retirement
systems for State employees, for teachers' annuities, for compensat:on
Insurance and for the maintenance of our Indian quota, funds that totaled
nearly $5.000.000.
Some people say that those phases of legislation that were advocated
by the Democrats were really legislation for the forgotten people of the
State. people that have been forgotten by Governor Miller and forgotten
by Governor Whitman, people that have been remembered by Governor
Smith and myself.
Lehman's Aid in Care for Wards of State.
Well, there is another item and that is the increase of a good many millions of dollars—somewhere around $12,000,000 I think—for taking care
of the people in our institutions.
I think it was my second year in office that Colonel Lehman—no, It
was not, it was the summer of the first year in office, that I asked the
Lieutenant Governor to go through this State because I knew be was a
man who understood business, and secondly, he was a man with a heart
and a man with vision—I asked him to go through this State and look into
our institutions.
He did. He visited every hospital that the State maintained—and
mind you, the State is taking care of 65.000 wards, patients, in its hospitals
at the present time, and seven or eight thousand prisoners in addition to
that. And Colonel Lehman's report showed that much could be done to
bring the treatment and care that these wards of the State were receiving
up to a modern basis.
The prisoners in this State were being fed at the rate of 21 cents a day;
21 cents a day was all the food that the prisoners of the State of New York
were getting, and I insisted, and the Legislature got generous and now we
are spending 27 cents a day on the prisoners.
Does the Republican candidate for Governor want to cut it back?
In the old days when I was a boy, people who had some kind of mental
trouble and went to a State hospital for the feeble-minded or the insane
went in thae and never came out until they came out in a coffin, and yet
to-day, because of a progressive policy in this State, there is not a year that
goes by that we do not increase the number of cures of the mental cases
committed to our care.
And in the long run, what is cheapest, my friends, to send out 22% of all
those who go into our hospitals, send them back cured to their families.
or keep them there all the rest of their lives?
Col. Donovan Asked About Other Cuts.
And the same thing applies to the prisoners. What is cheaper, to continue the present parole system, that we set up two years ago. under which
7.000 boys are out on parole, under supervision of parole officers throughout
the length and breadth of the State, learning to be good citizens—is it
cheaper to maintain that parole system at a cost of $300,000 a year, or to
build more prisons and keep those 7.000 boys in prison, at a cost of $3,000.000 a year?
And so it is an equally fair question to ask my friend. Colonel Donovan,
is he going to retain the parole system of this State or not
I could go on throughout the length of a complicated thing called a
budget; I could give you lots of figures, but the fact remains that, taking
it by and large, this increase over 10 years of $133.000.000 is made up. in
large Part, of three items: First, debt service of about $12,000,000;secondly,
State aid to localities—not for the State to spend but for the localities to
spend—most of it on education, and thirdly, the normal increase caused
by the fact that the population of this State does not believe in birth control
and insists on going up.
We have to take care of about a million and a half more people in the
State of Now York than we did 10 years ago, and so it is a fair question.
Urges Hearers to Ask About Reductions.
I would like to stay in this State for the next three weeks and keep
asking those questions myself.
on
I would like to ask my friend, the Cononel, lots of questions as he goes
around talking finances of the State of Now York, but I have to go out and
cover a large part of the United States, 17 more States in the course of the
next nine days, and so I will let you people ask the questions, and every time
that a Republican candidate or a Republican speaker talks to you about
finances, you say to him: Where are you going to cut?
I will let you in on a secret. I will tell you where we are going to cut,
and how we are going to cut, and do not believe Republican speakers when
. they quote figures to you about the cost of government in this State.
I have seen it stated, erroneously—and, I am afraid, with malice aforethought—that the cost of this past year was $300,000,000.
The Legislature passed an appropriation for $273,000,000. which was a
.reduction from the year before of $34,000.000, and the year before the
Republican Legislature passed appropriations of $14,000,000 more than I
had asked them for.
Saving for the Slate 10 to 15 Millions.
This year the government of the State of New York had given to it by the
Legislature $273,000.000. But lam not spending it. I am Scotch.
So far, without violating the law. I have found ways of leaving in the
Treasury of the State, in the perfectly safe hands of another Scotchman—
Morris Tremaine—this year I am going to leave somewhere between 10 and
is million dollars out of that unspent.
And beginning the end of next week—even before Nov. 8—I am going
into a huddle with the Lieutenant Governor, the next Governor, and with
the Controller, who is the next Controller, and the Director of the Budget,




2759

and we are going to go through the department estimates with a fine-tooth
comb.
And, my friends, I am perfectly confident in my own mind that when
those budget estimates are made up they will show a total saving in the
coming year of this State of $25.000,000 less than the present budget of this
year.
We are going to cut out some of the functions of government—some
of the frills of government—and we are going to cut down all we possibly
can in every place—but we are not going to cut out the essentials of government—especially those essentials that apply to the lives and well-being of
the average man, woman and child.
Well, so much for that. There you have the picture of the financial
problem of the State. and I tell you that this State is not only solvent but
that we can't go broke.
We are cutting down the cost of government as far as any reasonable
set of human beings will want it cut down.
First State to Provide Unemployment Relief.
We are not going to cut down in the work of caring for the people of the
State. and that brings me to Just this point:
Who was it a year ago, who first among all the States of the Union—a
whole year ahead of the Federal Government—who was it that first started
the definite principle, accepted the principle that it was the duty of the
State to see to it that none of its citizens went hungry, that none of its
citizens went unclad, that none of its citizens went without a roof over
their heads?
A year ago the Legislature in special session met and passed appropritions of twenty millions of dollars to take care of unemployment relief in
the State of New York during the Past winter and spring.
And we know that we had still some tax resources left. So, instead of
Issuing bonds for it. we doubled the income tax and got away with it. Then
this spring, having taken care of our own, we added another five million
dollars to it for good measure.
Appeals for Support of Relief- Bond Issue.
But, my friends, under the present condition of national economics—
and mind you, no State in this Union can all by itself change the economics
of the nation under our present national econonic condition—it was obvious that the coming winter was going to be a ha...cl one. with the result that
we are asking the good people of this State on Nov. 8 to approve of funds
for the taking care of unemployment relief during the coming winter.
We are asking for a sum which is larger than last year's sum, because
the distress is greater. We are asking it not in the form of another tax.
We are asking it for this special single year in the form of a bond issue—
the right to issue $30.000.000 of bonds to take care of our unemployment
relief for a year to come.
That question is going to be submitted to you on the eighth of November.
and I hope that every man and women in this State will recognize the seriousness of the situation and will vote their approval of that bond issue
in common humanity.
Now. I am not going to do any threatening. I am going to tell you a
simple fact:
The State of New York recognizes its ooligation to see that nobody
starves; that nobody goes hungry; that nobody goes without clothes, and
without shelter; and it you don't get this money that way, my friends the
next Legislature and the next Govenor have got to raise the money between them some other way, and there isn't any other way except by increasing Your taxes and mine.
And that's why I have got my heart on the discharge of this bond issue,
the approval of it ny the people of this State by the biggest majority that
has ever been given to any proposition submitted to them.
Urges a Vote "No" to Protect Preserves.
And now there is just one more thing before I start for Pittsburgh. and
that is. I want to tell you—there Ls just one more thing that is coming up
in the ballot box, on the voting machines, on Nov. 8. There are just two
propositions to be put before the voters of the State. One is this $30,000.000 bond issue, and I hope and pray that it goes through almost unanimously.
The other is a proposition for the weakening, for the opening of the door
to the splendid constitutional provision that we have now for the preservation of our Adirondack preserves and our Catskill preserves. You know
there are two great areas, the largest owned by any State in the Union.
set aside for the use of the people of this State in perpetuity and never to
be touched.lobe left in the wild state of nature in which God made them.
And let me tell you the simple record. This past summer over a half
million people, nearly all of them citizens of this State. have registered at
different camp sites—very large their use is—that the State maintains
the
in the Adirondacks and the Catskills. Now, they go through them,
hiking and hunting and fishing, for their wholesome, healthgiving recreational purposes. And the additional number, besides those who registered
at camp sites, would run literally into the millions.
The provision that you are going to be asked to vote on is a proposition that would allow a town or towns, or a series of towns, within the
Adirondack or the Catskill preserves, to break down that historic provision
In our Constitution and do all sorts of things—and put up amusement
places, put in Coney Islands; in other words. try to derive some prtfot
out of what is the heritage of the people of the State of New York. Everybody interested in conservation, so far as I know, every association and society. is begging and praying that we won't tamper with that splendid
Adirondack and Catskill preserve.
And so I hope that there won't be any question that the People • rerog •
nizing their heritage, will vote "no" on that proposition and save our own
woods.
And that is another question I would like to ask of the gentlemen who
is running for Governor on the Republican ticket. How does he stand on
that measure, which was introduced by the Republican leaders in the Legislature of his own party?
Pays a Tribute to Lehman as Leader.
And so, my friends, you have got a choice once more for about the tenth
time in rapid succession. For over ten years you have been talking about.
wondering on election day, before election day, as to how you were going to
vote. To-day you have two very delightful gentlemen running for the
office of Governor, one of them a fellow-citizen of yours.
The other one in a man who has three great qualifications for the Governorship: First, splendid business training, and the Lord only knows we need
a business man as Governor during the next two years; and the second Is
the qualification, very essential, of knowing the problem of State government, and not having to learn it from the ground up, a man who has been
around this State the past four years into every nook and corner of It,
Into every institution, who knows the State better than I do—that's saying
a lot—who is keen on finding out what the needs are in every county,
in every town and in every city.
And the third qualification that he has got is something that is worth
more than all the others put together. It is not Just that his heart is in
the right Place—most of us have got our hearts in the right place. The

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Financial Chronicle

most hard-boiled fellow in the world, if he sees a beggar lying In the gutter
is not going to pass by on the other side. But a heart in the right place
doesn't always get used.
I want a man who uses his heart, a man who understands the relationship of human beings to human oeings, a man who understands the relationship of government to human beings, a man who believes that we cannot
stand still and that even in the face of necessary economy, we have got
to go on. protecting people in their existence, protecting them In their lives,
in their association with each other.
In other words, a man who translates his humanity into deeds and actions.
And a man that we have got running for Governor this fall is one who has
been associated with me to my very great advantage during the past four
years. a man who was associated with me years ago, in wa.- times down in
Washington, a man who understands this State. and a man who will carry
on what has become a tradition in this State, a government that is aimed
at progressive and liberal policies, and won't stand still.
Is And so I say, my friends, I am going away to night headed West again,
,
and then South and then over to the Eastward, and then back to vote.
And In the meantime, I am very confident that not only the good sense
ot the People of this State, but the sober judgment of the people of this
State, and the humanitarian impulses of the people of this State, are going
to spread upon the record faith in Democratic leadership, faith in the great
man who has been offered to YOU to be your leader during he next four
years—Colonel Herbert II, Lehman.
Is And, as I said over in Rochester to-day. when I get down to the White
House I want to be able to lift up the telephone and get the co -operation of
the State of New York, and 83Y "Hello, Herbert. come over and see me."

Governor Roosevelt, Democratic Nominee for President,
in Wheeling Address, Says Reconstruction Finance
Corporation Is as Much a Democratic as Republican Measure—Views on Federal Reserve System.
At Wheeling, on Oct. 19, Governor Franklin D. Roosevelt
of New York, Democratic nominee for President, in referring
to the Reconstruction Finance Corporation, declared it to
be "as much a Democratic measure as a Republican measure
—for It was passed in the spirit of bi-partisan co-operation
In the Congress of the United States." The Governor added:
Thus we may fairly say that the two things which have saved things
from being worse—the Federal Reserve System and the Reconstruction
Finance Corporation—are both the result of the constructive foresight of
the Democratic party and its leaders.

Governor Roosevelt's Wheeling speech Is given herewith:
We are now in the closing stages of no ordinary campaign. And I come
to the great State of West Virginia to speak to you who have reason to
know the conditions which face our citizens and to speak to you frankly
and in a straightforward manner concerning the reasons which have brought
these conditions about, and the steps that we must take to effect their cure.
We are not faced merely with a choice of a change of administration.
We have now to make a choice between a nation with hope for economic
order and individual prosperity on the one hand, or a country allowed to
drift under the present temporizing type of administrative leadership.
You have had placed before you the spectre of fear by the Republican
candidate, and the Republican speakers. You have been told that things
might have been worse, and will be worse if I am elected to office. But I
say to you:
"Yes, things might have been worse; indeed, we might all of us have
been destroyed. But, on the other hand, remember that things might have
been better, should have been better, and will begin to get better with a
change of administration on the 4th of March."
To attempt to instil panic into the electorate at a time when we must
all have courage and a firm belief that the American characteristic of
finding answers to problems will bring us back on the upward trail, is a
method of campaigning which does little credit to leaders still at this
time entrusted with the welfare of the United States.
We may well ask the question: "Are you afraid of a change?" Certainly, in the light of three years of almost complete inaction by Republican
leadership—three years in which little constructive action of any kind
was taken—would almost he sufficient to have us give the answer: "No,
we are not afraid of a change."
Reconstruction Finance Corporation and Federal Reserve Act.
But, further than that, I would remind you of two very interesting facts:
First, things might have been worse if it had not been for the establishment
In the Wilson Administration of what we call the Federal Reserve System.
Had there been no Federal Reserve System, the collapse would Indeed have
been complete. And that System was the product of a Democrat—Carter
Glass—and that System became law only after the most bitter opposition
from the Republican leaders—now Mr. Hoover's associates.
How wise were those Democrats who fought for that measure? To them
to-day should go most of the credit when we say that things might have
been worse. And. may I add, how much better off would our nation be
to-day if the original purposes and principles of that System had been
followed by Republican Presidents.
And, secondly, it has been said that the Reconstruction Finance Corporation, which, by the way, is as much a Democratic measure as a Republican
measure—for it was passed in the spirit of bi-partisan co-operation in the
Congress of the United States—is another thing which has saved the financial
structure of the country. But, again, this measure was not due to the
creative genius of Republican leadership, for it was during the period of
the Democratic Administration that there was established the War Finance
Corporation, and it is essentially the principles of that War Finance Corporation which have been re-established at this new period of crisis.
Thus we may fairly say that the two things which have saved things
from being worse—the Federal Reserve System and the Reconstruction
Finance Corporation—are both the result of the constructive foresight of
the Democratic party and its leaders.
And just for the sake of the record—to get it straight for future
historians—let me make this clear: I have not at its inception or at any
time since criticized or objected to the establishment of the Reconstruction
Finance Corporation any more than I have the Federal Reserve System.
The point is that it is not that the Republican Administration established
that agency; it is how it used that agency. The Reconstruction Finance
Corporation has performed many excellent services in extending credit to
banks and other institutions, but it is the fact, which I established last
spring, and which the record of the subsequent months has disclosed, that
I was right in saying that only a small portion of the actual credits
advanced by the Reconstruction Finance Corporation has trickled down—
seeped through—to the individual, to the worker and the farmer, and the




Oct. 22 1932

man without a job—or, for that matter, to the small business man himself.
As in the case of the Federal Reserve System, the fundamental purposes
and principles of the Reconstruction Finance Corporation have not been
carried out by the present Administration in Washington.
I believe that we are ready for a change—a change which will put into
practice the lessons which we have had to learn through out trials and
troubles. The lesson of interdependence—the simple fact that no part of
the country is safe while any part is in want, that the worker is less likely
to have a job whenever the farmer cannot get a decent price for his crop,
that the bank is not safe whenever irresponsible financiers sell pyramided
or watered securities. These are a few of the lessons that call for new
leadership.
As I have said before, this nation cannot endure "half boom and half
broke." The Hoover Administration forgot these facts ; encouraged speculators, strangled foreign markets by indefensible tariffs, and accomplished
nothing for agricultural communities, depressed already to the lowest point
in modem history.
I have studied these problems. I have made a trip through every
section of the United States in order to familiarize myself by a face-to-face
and intimate contact with the varying problems of each community and
section.
I have proposed a series of plans dealing with this tremendous group of
problems. I have suggested a program for the rehabilitation of agriculture,
a program for placing the great transportation systems of railroads on their
feet and operating them so as to assure the financial obligations of the
greater number of these carriers whose holders represent every group in
the community.
I have outlined my purpose to curb the financial excesses and exploitations
which in the last 12 years have thrown to waste so much of the hard-earned
savings of our citizens. I have advanced a definite program for the fair
control of public utility and power service. I have advocated a lowering
of tariffs by negotiation with foreign countries. But I have not advocated,
and I will never advocate, a tariff policy which will withdraw protection
from American workers against those countries which employ cheap labor
or who operate under a standard of living which is
lower than that of our
own great laboring groups.
Tariff.
You have been told by ray opponent that the
Democratic tariff policy
will result in the further loss of American trade with
foreign countries.
But I call to your attention that we now have a strangulation
of that very
trade under the tariff system of unsystematic and
unscientific tariff walls
set up by the log-rolling that created the Grundy tariff.
The Democratic program is practical, and I pledge to
you that it will be
carried out with speed and dispatch.
I shall continue in this campaign to be constructive and
to state my
position on the great issues which face our Government. My
first thought
is that government exists for individual men and
women, and that its
first objective is to promote their happiness and
well-being. It must carry
out economic reforms, not solely for the sake of the
railroads or for agriculture, or for banks or for industry, but for the people
who work and use
those railroads, for the farmers and their families, for
the bank depositors,
for the consumers, and for workers. Unless they prosper
the nation falters.
I seek a sound administration, but I seek a humane
administration. To
me government is not a machine driven by
technicians, but a human,
sympathetic and responsive institution. I refuse to
believe that the people
of the nation can be made to fear false bogies. The
choice is deeper than
that. It is indeed one between restored order and
dangerous drift, between
constructive planning and the forces of mismanagement.
If this nation wants to know what is wrong with its
National Government,
I will give them the answer in one word. That word
is "mismanagement."
I am on the side of courage, with a united and a
liberal purpose, with a
program worthy of the task before us. I ask your
support that America
may have a chance to go forward. Of the result I
have no fear.

Governor Roosevelt of New York, Democratic
Nominee
for President, Indicates Stand on
Bonus—Not
Possible He Says Until Government Balances
Budget—Criticizes Extravagance in Spending by
Federal Government—Favors Beer Tax as Source
of Revenue.
The stand of Governor Franklin D. Rcolevelt
of Now

York on the bonus question was enunciated in an lddress
on Oct. 19 at Pittsburgh, in which the Governor (the Democratic nominee for President) made known his position as
follows:
I note that former President Coolidge Is reported as having

said in a
speech In New York City:
An early and timely word from the Democratic candidate
for President
that he would reject the proposal to increase the National
dent
000.000 to pay a bonus would have been a great encouragement by $2.300,to business,
reduce unemployment, and guarantees? the Inteerity of the
National credit.
While he remaind silent economic recovery was
measurably impeded.
That charge is baseless and absurd for the reason
that last April my
views of the subject were widely published and have
been subsequently
frequently quoted. I said:
I do not see how, as a matter of practical sense,a
government running
behind $2.000.000,000 annually can consider the
anticipation of bonus
payment until it has a balanced budget, not only on paper
but with a surplus
of cash in the Treasury.
No one, for political purposes or otherwise, has the right
in the absence
of explicit statement from me to assume that my
views have changed.
They have not. So much for another effort ny Republican
leaders to preach
an unwarranted gospel of fear and panic to the
American electorate.

Governor Roosevelt in his Pittsburgh speech was also
devoted to a criticism of "extravagant" spending by the
Federal Government, and in disputing figures of deficit
estimates of the Hoover administration, said in part:
On Dec. 3 1930 the administration of Preeldent Ifoover
estimated that
on the following June 30 the Government would have
a total deficit of
$180000000, but that during the following fiscal Year, In other
worth',
on June 30 1932 It would have had a profit of
$30,000.000, thus reducing
the total deficit by Juno 30 1932 to $150,000,000.
Now, my friends, I am going to give you a real shock.
Instead of the
estimated deficit of 8150.000,000. the deficit on June 30 1932 was
for the
fiscal year three and three-quarters billion dollars.

In indicating his support of a beer tax Governor Roosevelt

said:

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Financial Chronicle

I have sought to make two things clear: First, that we can make savings
by reorganization of existing departments, by eliminating functions, by
abolishing many of the innumerable boards and commissions which over
a long Period of years have grown up as excrescences on the regular system.
These savings can properly be made to total many hundreds of millions
of dollars a year.
Secondly. I hope that It will not be necessary to increase the present
scale of taxes, and I call definite attention to the fact that as soon as the
Democratic platform pledge is enacted into legislation modifying the
Volstead Act, a source of new revenue amounting to several hundred
millions of dollars a Year will be made available toward the balancing of
the budget.
I refer specifically to a Federal tax on beer, which would be raised through
the sale of beer in those States and those States only which by State law
allow the sale of beer. At the same time I reiterate the simple language
of the Democratic platform which opposes the return of the saloon, as
follows:
"We urge the enactment of such measures by the several States as will
actually promote temperance, effectively prevent the return of the saloon
and bring the liquor traffic into the open under complete supervision and
control of the State."

Governor Roosevelt's speech follows in full:
It Is fitting that I should choose Pittsburgh to sound a solemn note of
warning addressed not only to the Republican leaders but also to the rank
and file of American voters of all parties. There are some prices too high
for the country to pay for the propaganda spread abroad in a Presidential
election.
That is true when, as now, the Republican campaign management is
guilty of spreading the gospel of fear.
That is true when in a desperate, futile, last-minute effort to dam the
tide of popular disapproval that is steadily growing against the administration. they become alarmists and panic
-breeders.
This policy of seeking to win by fear of ruin is selfish in its motive, brutal
In its method and false in its premise. It is a policy that will be resented
as such by men and women of all parties in every section of the land on
November 8.
It is an insult to the Intelligence of the voter to think that he or she
can be fooled by shifting the boast of the full dinner pail made in 1928
to the threat of the continued empty dinner pail of 1932.
I assure the badly advised and fear-stricken leaders of the Republican
party that Democrats and those of the rank and file of their own
party
who are properly dissatisfied with their leadership, are still
American
patriots and cherish in their hearts, as I do, the safety
of the country,
the welfare of its people and the continuance of our institutions.
So much for the note of warning.
What is the normal and sensible thing to do when your neighbor
gets
excited and starts calling you and your friends bad
names over the back
fence? Nothing is gained by calling him worse names
or by losing one's
temper. The peace of the community is best served
by sitting down and
quietly discussing the problems without raising one's
voice. That is why
I decline to answer vituperation by vituperation.
One of these problems—and a very vital one to my family
and Your
family and the whole community—is the financial
problem of making
both ends meet.
I want to discuss this problem with you to-night
fully. To do so sincerely,
I must tell the fa-ts as they are and conceal nothing from
you. It Is not
a pretty picture, but, if we know it and face
it, we have nothing to fear.
This country is the richest and most resourceful nation
in the world. It
can and will meet successfully every problem which
it faces, but it can
do BO only through intelligent leadership working unselfishly
for the good
of all people. That it has not had such leadership
in its financial affairs
will become obvious from the facts I shall relate to
you to-night.
We all know that our own family credit
depends in large part on the
stability of the credit of the United
States.
And here at least i one field in which all
business, big business and
little business and family business and the
individual's business, is at the
mercy of our big Government down in
Washington.
Now, it is undoubtedly true that the mind of the
average individual,
man and woman, has been unable to keep pace In the
past 10 or 12 years
with the intricacies of Federal financing. In the first
place, what used to
he analogous to an old-fashioned account book,
that all the family could
understand, has become in Washington a
maze of intricate double-entry
bookkeeping which only a few highly trained
technical expert accountants
could possibly understand.
What I should like to do is to reduce, In so far as
possible, the problem
of our nat onal finances to the terms of a family budget.
Now the credit of the family depends chiefly on whether
that family
le living within Its Income. And this is so
of the nation. If the nation is
living within its Income, its credit is good. If In some
crisis, it lives beyond
its income for a year or two It can usually borrow temporarily on
reasonable
terms. But if, like a spendthrift, it throws discretion to
the winds. Is
willing to make no sacrifice at all in spending, extends its
taxing to the limit
of the people's pcwer to pay and continues to pile up deficits, it is on
the
road to bankruptcy.
Federal Government Spending.
For over two years our Federal Government has experienced
unprecedented deficits, in spite of increased taxes. We must not forget
that
there are three separate governmental spending and taxing agencies
in
the United States—national, State and local.
Because the apparent national income seemed to have spiraled
upward
from about 35 billions a year in 1913 to about 90 billions in 1928. all three
of our governmental units became reckless, and the total spending in all
three classes rose in the same period from about three billions to nearly
13 billions, or from 8%% of income to 1455% of income.
But even then we did not greatly worry. We thought we were getting
rich. "Come
-easy-go-easy" was the rule.
It was all very merry while it lasted, but when the crash came we were
shocked to find that while income dropped away like snow in the spring,
governmental expense did not, with the result that it is estimated that in
1932 our national income will not much exceed 45 billions, while our total
cost of Government will likely be considerably in excess of 15 billions.
This simply means that one-third-33 1-3%—of the entire income of
our people must go for the luxury of being governed.
That is an impossible economic condition. Quite apart from every
man's own tax assessment, that burden is a brake on any return to normal
business activity.
Taxes are paid in the sweat of every man who labors because they are
a burden on production and can be paid only by production. If excessive,
they are reflected in idle factories, tax-sold farms, and, hence, in hordes
of the hungry tramping the streets and seeking jobs in vain. Our workers
may never see a tax bill, but they pay in deductions from wages,in increased
cost of what they buy, or (as now) in broad cessation of employment.
There Is not an unemployed man—there Is not a struggling farmer—
whose interest In this subject is not direct and vital.




2761

Let me make it perfectly clear, however, that If men and women or
children are starving In the United States, I regard it as a positive duty
of Government to raise by taxes whatever sum may be necessary to keep
them from starvation.
What I am talking about are the taxes which go to the ordinary costs
of conducting Government, and that Is where the question of extravagance
comes in. There can be no extravagance when starvation is in question;
but extravagance does apply to the mounting budget of the Federal Government in Washington during these past four years.
The most obvious effect of extravagant Government spending is, then.
its burden on farm and industrial activity and, for that, nearly
every
Government unit in the United States is to blame. But when we come to
consider prodigality and extravagance in the Federal Government—as
distinguished from State or local government—we are talking about something even more dangerous. For upon the financial stability of the United
States Government depends the stability of trade and employment, and
of the entire banking, saving and insurance system of the country.
To make things clear—to explain the exact nature of the present condition of the Federal pocket-book—I must go back to 1929. Many people
have believed the story which has been painstakingly circulated by this
administration that the routine spending of our Federal Government has
been kept on a fairly even keel during these past five years.
It was perhaps easy to give this impression, because the total outlay
each year up to the emergency appropriations of this year did not Increase
alarmingly. But the Joker In this is that total outlay includes interest and
sinking fund on the public debt—a fixed charge which was declining during
the days of national debt reduction and lower interest rates thereon.
On the plain question of frugality of management, if we want to compare
the routine Government outlay of 1927 with that for 1931 for example, we
must subtract this socalled "debt service charge" from the total budget
for both years.
If we do this we find that the expenditure for the business of Government
in 1927 was $2,187.000,000 and, in 1931, $3,168.000,000.
That, my friends, represents an increase of actual administrative spending
in those four years of approximately $1.000.000.000. or roughly 50%;
and that. I may add, is the most reckless and extravagant pace I have
been able to discover in the statistical record of any Peacetime government
anywhere, any time.
It is an ultimate fact which Is the exact reverse of the thing announced
as fact by Republican leaders.
Let me repeat those figures. so that the whole country can get them
clearly in mind. Leaving out debt service charges in both instances, the
cost of carrying on the Government's business was 82,187,000.000 In 1927.
$3,168,000,000 in 1931—an increase in four years of $1.000.000.000.
That is the story on the spending side of the budget; but it is less than
half of the whole appalling story.
On the income side of the budget the record is worse. Unlike other
taxing agencies. the Federal Government does not levy a direct tax on
property. Therefore, you don't have to be an expert to know that, when
anything happens that violently contracts sales and incomes and the prices
of securities and commodities, there is sure to be a similar violent contraction of Federal income and that a Government charged with maintaining
the financial stability of the United States under all conditions is under a
very solemn duty, in such an event, to take immediate steps to avoid
a deficit.
Although six weeks had elapsed since the worst economic crash in history.
the Federal budget of December 1929 did not even refer to It.
It estimated receipts for the year ending June 30 1931 at 4.2 billions,
actually more than there had been in the preceding year of economic fantasy
—a figure which obviously could not possibly be attained without immediate
return to the exaggerated speculations of 1929. The administration advised
no economy.
On the contrary. it proposed a reduction of taxes and it blandly remarked
"Our finances are in sound condition. . . . Our estimated expenditures
. . . are well within our expected receipts."
Secretary Mellon's Estimates.
Against those estimated receipts placed at 4.2 billions by Secretary
Mellon, the sad fact Is that actual revenue turned out to be 3.3 billions
900.000.000 dollars less than the estimate—a cool billion of overestimating.
I recite the 1929 Federal Incident to clarify what happened at.Washinston
in 1930 and 1931. In December of 1930 a new budget appeared. Vast
declines in every form of business activity were now crystallized and certain.
The national income was in a nose-dive, and it was therefore certain that
Federal Income was on the verge of a catastrophe.
But that new budget of December 1930 recommended neither Increased
taxes nor decreased expenditure although upon that recommendation
depended the credit standing of this country.
The budget message of the President asserted that the deficit for 1931
would be only $180.000.000. and contained the statements:
"Nor do I look with great concern upon this moderate deficit." and.
"Our Government finances are in a sound condition."
A surplus of 830,000.000 was estimated for 1932—that is to say, the
net deficit for the two years together was estimated at $150.000.000. Now
at this time the President and the Secretary of the Treasury had Plenty
of experience with falling tax receipts.
The astonishing and inescapable fact Is that no such results as those
estimated could have been achieved without an immediate and complete
business recovery from the practical Paralysis then existing. In other
words, this 1930 budget cannot fairly be called an estimate at all. It was
an extreme hazard on the hope of an economic mfracle—a gamble, if you
please—on a highly improbable assumption, a gamble with your money
and mine.
There Is something much more than mere error in this kind of thing.
Our people and the world are entitled te reasonable accuracy and a reasonable
prudence, and above all they are entitled to complete frankness.
They have a right and a duty to place In retirement those who concea
realities and abuse confidence.
Remember these simple facts: On Dec. 3 1930 the administration of
President Hoover estimated that on the following June 30 the Government
would have a total deficit of $180.000,000, but that during
the following
fiscal year— In other words, on June 30 1932—it would have had a profit
of $30,000,000. thus reducing the total deficit by June 30
1932 to $150.000.000.
Now, my friends, I am going to give you a real shock. Instead of the eatimated deficit of $150,000.000, the deficit on June 30 1932 was for the
two fiscal years three and three-quarters billion dollars.
No.I fear we cannot call this budget an estimate—nor even a fair gamble.
I don't know what to call this kind of representation of that kind of fact.
but the name certainly is not candor.
1931 Worst Year in Depression.
Nineteen-thirty-one proved to be the worst year yet experienced in the
depression. For my distinguished opponent it was the year when all his
distinctive 1928 economic heresies seemed to come home to roost together.
Let us call the roll of them:

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Financial Chronicle

1. The loans to "backward and crippled countries," which he said
would provide uninterrupted employment and industrial activity by
expanding our export trade, no longer could be made.
31 2. Retaliation against his monstrous Grundy tariff, against which the
best economic and industrial thought in the country had stood in almost
unanimous protest and against which it once more protested within the
past week,and which was to cure our agriculture and maintain our industry,
had begun to strangle world trade. including our own.
3. Debtor nations (no longer sustained by our improvident loans and
no longer able to export goods) were drained of gold for debts and, one by
one, were forced to abandon specie payments.
4. As a direct result of all these influences, our export markets dried
un. our community prices slumped and our domestic business was declining
at a more rapid rate than business in some of the backward and crippled
countries. Unemployment also began to rise here in even greater proportions than in Europe. To top this ruin of all these seductive 1928 theories
(which were to bring the millenium of abolished poverty) came the complete
collapse of the 1929 and 1930 administration fiscal Policy.
The truth about the shatering effect of all these homing heresies began
to leak out as the summer of 1931 advanced. It is my opinion that in the
conduct of national finances, as in the conduct of corporation finances
or family budgets, If things are not going as well as one had hoped, it is
far better to face the truth than to try to hide it. That Is why it was far
more harmful to the nation last Autumn, and all through this year, to have
the facts leak out than it would have been to have had them boldly and
frankly disclosed to us when they were actually happening.
My friends, the result of such a combination of disquieting revelations
was inevitable. The very basis of confidence in our economic and financial
structure, both here and abroad, was impaired.
A fresh wave of liquidation ensued. Foreigners took gold back to their
now shattered "backward and crippled countries"—until a cool billion
had been drawn from our reserves. It was the Stygian climax to the black
business year of 1931.
I emphasize this history because our opponents have now become almost
frantic in their insistence that this entire sequence originated abroad—
that no American policy was in the least to blame, and that to say otherwise
Is what they call "hideous misrepresentation." The "foreign-cause" alibi
is like ascribing measles to its spots rather than to its characteristic germs.
No. we need not look abroad for scapegoats. We had ventured into the
economic stratosphere on the wings of Mr. Hoover's novel, radical and
unorthodox economic theories of 1928—the complete collapse of which
brought the real crash in 1931. The Grundy tariff accentuated the drop.
As hard reality rushed up to meet our fail, this administration did not
see fit to adapt its fiscal policies to this inevitable consequence.
It is a responsibility which no campaign alibi can avert, and to-day the
day of reckoning is here.
The recent administration strategy in this campaign is a direct appeal
to public sympathy for their agony of spirit in the dark hours of 1931-32,
when retribution for our chasing after strange economic gods overtook us.
They protest against any assessment of just blame. But they protest
In vain.
I want to say, with all sincerity, that I recite this record with reluctance.
No man with a spark of humanity can fail to sympathize with our responsible
leaders in hours of crisis.
Politics or no politics. I pay my tribute to the devotion of the President.
It is not true to say that he has not been unremitting in his efforts and I
for one have never heard it said. But I do indict his administration for
wrong action, for delayed action, and for lack of frankness and courage.
Before the administration partisans complain of this arraignment, they
must remember that the American people are now about to exercise their
democratic right of self-determination of their own fate and future. They
must make a choice. The administration's appeal for sympathy is not
based on any frank acknowledgment of the failure of the policies so clearly
portrayed by these tragic events.
It is. on the contrary, a denial that these principles have failed. Indeed,
It persists in the same course and even presumes to ask admiration for the
stubborn ruggedness of that persistence.
In such circumstances I should fall utterly in my duty to the American
people if I did not fearlessly portray these errors and link them directly
to the havoc which they have brought and which they threaten to continue.
The autumn of 1931 witnessed, then, the complete wreckage of the
administration program to that date—the collapse of its entire economic
philosophy. The convening of the Seventy-second Congress last December
marked a new phase. The President appeared with his December 1931
budget message. That was a fateful moment. That was the time for an
honest demonstration to the world that might have set the whole world
trend of economic events in an upward direction or at least checked the
decline.
All that was nerfsaazy to do was finally to end the two years of vacillation
and secretiveness—to tell the truth to the Congress of the United States—
to rely on it to balance the budget and establish American credit in the eyes
of all the world.
This administration specifically acknowledged the necessity for that.
It said it was going to balance the budget. Then it said it was balancing
the budget and,finally, it said it had balanced the budget and now, months
later. it Waists that, because it has balanced the budget, it has saved the
Gibraltar of world stability and prevented the overthrow of our form of
government.
Figures of Daily Treasury Statement.
If all this is true, the administration has done well. If it is not true,
then the administration stands convicted of a new and fatal trifling with
the welfare of our people and the credit of our country. Let us not waste
words. I now quote from the daily Treasury statement at the end of the
first quarter of the current fiscal year, made three weeks ago, on Sept. 30
1932:
"Excess of expenditures over receipts, 3402,943.002."
For the corresponding quarter of last year the deficit was only $380,495.584, but at the end of the year it was 32.885.000,000.
There is. therefore, strong indication that we are in for another staggering
deficit. If the present rate continues, the true deficit as of June 30 next
year will be over $1,600.000,000. not as large as it was in the unprecedented
fiscal year of 1932. but so great that it makes us catch our breath.
I regret to say that the appeal of this administration for applause for
Its soundness and courage last winter is simply not based on facts. The
budget is not balanced and the whole job must be done over again in the
next session of Congress. Who is to blame for this new blunder? I cannot
answer that question better than to refer you to the dispassionate review
of the last session of Congress made last Friday by my running mate, the
Speaker of the House. John Garner. No one who will take the trouble to
read that speech will doubt that the patriotic determination of a willing
Congress to balance this budget at any cost was frustrated by the same
kind of concealment and vacillation that produced the staggering deficits
of the Years ending June 30 1931 and 1932.
It is very clear that, under repeated insistence that the budget was being
balanced. Congress gave our Treasury—without hesitation or limit—every




Oct. 22

1932

cent of revenue it asked for and that, at the end, the administration assured
Congress and the country that the task had been accomplished.
I have already shown how unreliable these constant assurances are.
It is not seemly to conjecture motives, but I think it is fair to say the whole
record of administration policy in the last four years reveals that it has
been afraid to trust the people of the United States with the true facts
about their affairs.
That is a fundamental error which shows unfamiliarity with the true
basis of American character. While the President claims that he did finally
recommend new taxes, I fear that this courage came two years too late
and in far too scanty measure. It explains "prosperity around the corner."
It explains two complete concealments of daicits and the insufficiency of
the action taken last winter.
It is an error of weakness and an error which I assure you I shall not make.
Our Federal extravagance and improvidence bears a double evil; first,
our people and our business cannot carry its excessive burdens of taxation;
second, our credit structure is impaired by the unorthodox Federal financing
made necessary by the unprecedented magnitude of these deficits.
The latter is the more technical, but, to my mind the more immediately
dangerous evil, and, at the risk of being tedious to many of my audience.
I want to ask their indulgence while I talk, for a.moment, straight to our
financiers.
Instead of financing the billion-dollar deficit of 1931 in the regular way,
our Government simply absorbed that much of the lending capacity of
banks, and, by so much, impaired the credit available for business.
In that year the amount of Government obligations held by our banks
Increased by a little more than $1,000,000,000.
Banks Financing Stupendous Deficits.
You know as well as I do that this administration's claims that it has
provided credit for industry and agriculture by pouring credit into banks
are not frank. Commercial credit has continuously contracted and is
contracting now. Most of this new Government-created credit has been
taken to finance the Government's continuing deficits.
The truth is that our banks are financing these stupendous deficits and
that the burden is absorbing their resources.
All this is highly undesirable and wholly unnecessary. It arises from one
cause only, and that is the unbalanced budget and the continued failure
of this administration to take effective steps to balance it. If that budget
had been fully and honestly balanced in 1930, as it could have been, some
of the 1931 collapse would have been avoided. Even if it had been balanced
In 1931, as it could have been, much of the extreme dip in 1932 would have
been obviated. Our financial men know the unnecessary muddle that has
accumulated and is still accumulating in Washington.
Now how can we continue to countenance such a condition? In all
conscience, can an administration which has so frequently failed in a matter
so directly touching your own responsibilities ask for your support and
trifle with your common sense by these campaign alibis about mysterious
foreign forces and this specious talk about sound fiscal policies and administration?
Would it not be infinitely better to clear this whole subject of obscurity—
to present the facts squarely to the Congress and the people of the United
States and secure the one sound foundation of permanent economic recovery—a complete and honest balance of the Federal budget?
In all earnestness I leave the answer to your common sense and judgment.
The other bad effect of this fiscal mismanagement is not at all technical.
It is the buden of high cost on the backs of all our people.
Warring on Government Costs.
I can state the condition best by quoting one paragraph from a document
published a week ago and signed by both Alfred E. Smith and Calvin
Coolidge:
All the costs of local, State and National Government must be reduced
without fear and without favor. Unless the people, through unified action,
arise and take charge of their government they will find that their government has taken charge of them. Independence and liberty will be gone
and the general public will find itself in a condition of servitude to an
aggregation of organized and selfish minorities,
Every word of that warning is true, and the first and most important
and necessitous step in balancing our Federal budget is to reduce expense.
The air is now full of Republican death-bed repentance on the subject
of economy, but we must look deeper than these eleventh hour pronouncements. You cannot go very far with any real Federal economy without a
complete change of concept of what are the proper functions and limits of
the Federal Government itself.
Perhaps we can get some glimpse of the President's underlying idea
about the Federal Government from his 1928 speeches. He proposed, you
remember, "a new thing in government." He says he "reorganized the
Department of Commerce on a greater scale than has ever been attempted
or achieved by any government in the world."
In his book. "The New Day," he says, "A nation which is spending
90 billions a year can well afford a few hundred millions for a workable
program."
I could go on quoting for a good many minutes, but perhaps the point
could be made clearer by recalling that the Department of Commerce went
through even the heavy war strain on about 13 millions a year.
When Mr. Hoover left it. it was spending 39 millions, and, for 1933, it
estimated it will spend 43 millions. It is now housed in what is facetiously
called in Washington the "Temple of Fact
-Finding," which cost the people
considerably more than the Capitol of the United States.
That record may explain the 50% increase in government overhead in
four years, 1927-1931 and I am sure that the whole group of quotations
reveal why you can never expect any important economy from this administration. It is committed to the idea that we ought to centre control of
everything in Washington as rapidly as possible.
That was the idea that increased government cost by a billion In four
years.
Now, ever since the days of Thomas Jefferson that has been the exact
reverse of the Democratic concept—which is to permit Washington to take
from the states nothing more than is necessary to keep
abreast of the march
of our changing economic situation.
In the latter philosophy and not in the philosophy of Mr. Hoover (which I
think Is responsible for so much of our trouble) I shall approach the problem
of carrying out the plain precept of our party, which is to reduce the cost
of the current Federal Government operations by 25%.
Of course that means a complete realignment of the unprecedented
bureaucracy that has assembled in Washington in the past four years.
I am no stranger to Washington. I knew it at first hand during the
administrations of Theodore Roosevelt and William II. Taft. I served in
Washington for seven and a half years during the Wilson Administration.
I have some familiarity with the psychology of the administration of the
National Government. More than that, I have conducted, for four Years.
the administrative and executive affairs and the policies of a State that has
13 million inhabitants.
Now, I am going to disclose to you a definite personal conclusion which
I adopted the day after I was nominated in Chicago. Here it is: Before
any man enters my Cabinet he must give me a two-fold pledge of

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Financial Chronicle

1. Absolute loyalty to the Democratic platform and especially to its
economy plank.
2. Complete co-operation with me, looking to economy and reorganization in his department.
I regard reduction in Federal spending as one of the most important
'wiles of this campaign. In my opinion it is the most direct and
effective
contribution the government can make to business.
Reply to Former President Coolidge on Bonus.
accordance with this fundamental policy it is equally necessary
.
to
eliminate from Federal budget
-making during this emergency all new items.
except such as relate to direct relief of unemployment.
As a part of this phase of the problem I note that former
President Coo,
iclge is reported as having said in a speech in New York City:
An early and timely word from the Democratic candidate
for President
that he would reject the proposal to increase the
000,000 to pay a bonus would have been a great National debt by $2.300,reduced unemployment and guaranteed the encouragement to business.
integrity of the National
credit. While he remained silent economic recovery
was measurably
impeied.
That charge is baseless and absurd, for the reason
that last April my
views on the subject were widely published and have
been subsequently
frequently quoted. I said:
I do not see how, as a matter of practical business
sense,
running behind two billion dollars annually can consider a Government
the
of bonus payment until it has a balanced budget, not only anticipation
on paper but
with a surplus of cash in the Treasury.
No one, for political purposes or otherwise, has the
right in the absence
of explicit statement from me to assume that my views
have changed.
They have not.

In

So much for another effort by Republican leaders
to preach an unwarranted gospel of fear and panic to the
American electorate.
I have sought to make two things clear: first,
that we can make savings
by reorganization of existing departments, by eliminating
functions, by
abolishing many of the innumerable boards
and commissions which over
a long period of years have grown up as excrescence
s on the regular system.
These savings can properly be made to
total many hundreds of millions
of dollars a year.
Secondly. I hope that it will not be necessary
to increase the present
scale of taxes, and I call definite attention
to the fact that, as soon as the
Democratic platform pledge is enacted
into legislation modifying the
Volstead act, a source of new revenue
amounting to several hundred millions of dollars a year will be made available
toward the balancing of the
budget.
Tax on Beer.
I refer specifically to a Federal tax on beer,
which would be raised through
the sale of beer in those States, and those States
only, which, by State law,
allow the sale of beer.
At the same time I reiterate the simple
language of the Democratic
platform which opposes the return of
the saloon, as follows:
We urge the enactment of such
measures by the several States as will
actually promote temperance, effectively
and bring the liquor traffic into the open prevent the return of the saloon
under complete supervision and
control by the State.
The above two categorical statements
are aimed at a definite balancing
of the budget.
At the same time, if starvation and
dire need on the part of any of our
citizens make necessary the appropriati
on of additional funds which would
keep the budget out of balance, I shall
not hesitate to tell the American
people the felt truth and recommend
to them the expenditure of this additional amount.
My friends, these have been
unhealthy years for prophets, and I hasten
to disclaim that role.
But one thing I know. A powerful
cause contributing to economic
disaster has been this inexcusable
fiscal administration and the obscurity
and uncertainty that has attended and
grown out of it. There it remains
for all to see—a veritable cancer in
the body politic and economic. Is
it prophecy to assure you that
if we remove this destructive growth we
shall move on to better things?
To my mind this is so plain and
persuasive as scarcely to be open to
argument. As I said in the
beginning, this is the one field in which business is wholly in the grip of government.
By the same token, it is the one
field where government can make the
greatest possible present contributio
n to recovery. To this contribution
I here pledge the utmost of my faith and
my ability. I am as certain as
mortal man can be certain of anything
in the future that from the moment
that we set our hands openly and
frankly and courageously to this problem, we shall have reached the end
of our long, hard downward road and
shall have started on the upward trail.
pe,We shall have built for economic
recovery a firm footing, on a path
broad, true and straight.
Join me, and "Let's go!"

Gov. Franklin D. Roosevelt Democratic Nominee
for
President Answers Inferences That Mark Losses
Were Suffered by Investors in United Europea
n
Investors, Ltd.—Makes Public Letter From E. S.
Paine a Hoover Supporter Indicating That
All
Investors Had a Profit.
'Governor Roosevelt on Oct. 14, at his home at
Hyde
Park, N. Y., answered a Republican attack on him
as a
participant in foreign enterprises which resulted in
loss to
American investors. The New York "Times" from
which
we quote, went on to say:
In reply to "dodgers" telling of a company which dealt in German
marks in the inflation days of the Reich the Governor made public a letter
from Edward S. Paine, a lawyer, explaining the Executive's part in the
company. the United European Investors, Ltd., of which Governor
Roosevelt was listed as President, in 1922-24.
Mr. Paine stated that instead of losing money for the persons who
dealt with the company, Governor Roosevelt made money for them. As
the attorney who had charge of the liquidation of the enterprise, he insisted that not a dollar had been lost to the individual investor, and that
instead profit had been made for him.
The lawyer wrote as one who intended to vote for President Hoover,
but he asserted that "fair play" made him speak out. He recited the
history of the development of the company from its inception to the time
of liquidation when it paid off with a profit.
Mr. Paine's Letter to the Governor.
The letter to the Governor, sent by Mr. Paine from his offices at 165
Broadway. New York City, was as follows:




2763

"Oct. 12 1932.
Hon. Franklin D. Roosevelt, Executive Chamber, Albany,
N. Y.
My dear Governor: My attention has been called
to a public statement
made by the Assistant Secretary of War that you,
as President of the
United European Investors, Ltd., advised the public
to invest in German
securities in 1922 as a result of which money
was lost.
As you know. I was very active in the affairs of
that company, having
been a member of the firm of William Schell
& Co., bankers, who acted
as the financial advisers and supervised the
investments made by the
United European Investors, Ltd., in Germany,
in industrial and other
enterprises there.
I am familiar with the affairs of that corporation
and personally attended to the details of the liquidation of its affairs,
resulting in the stockholders receiving approximately $8 per share for
their stock.
Instead of this being, as is reported, a loss to
American investors,
it represented a substantial profit; in fact, a large percentage
of profit
to each of the stockholders, all of whom were treated
upon a basis of equality.
Although I am a Republican and intend to vote for
President Hoover.
I believe that fair play requires that I write you my
understanding of
the situation.
Aim and Functions of Concern.
The company was incorporated in 1922 for the purpose
of affording
to American holders of German marks, which were rapidly
declining in
value, the opportunity of recouping some of their losses.
It neither solicited nor received subscriptions in any form of
money
other than the actual paper marks which were held in large amounts
by
American citizens and which were speedily becoming worthless.
The par value of each share of stock was 10.000 German marks,
and
as the actual paper marks were received from subscribers they were
shipped
to Germany and there invested in high-grade German equities. At
the
time when the company began to function the market value of
10.000
marks was approximately $2.50.
The company prospered under your management and that
of William
Schell and his associated on the executive committee, aided by a distinguished advisory committee of bankers in Germany.
As a result of the investments made, the book value of these shares
reached nearly $8 per share, whereupon in late 1924 or early 1925
the
company, under my supervision, liquidated, its shareholders were paid
at the above rate, which yielded approximately three times the amount of
the value of the marks at the time of their deposit.
Profit in the Transaction.
It is therefore inaccurate, in fact totally incorrect, to charge that the
investors lost money in the transaction.
I may repeat that no dollars were paid by the public, the only investment was their German marks; in fact, my recollection, which may be
confirmed by the Public p.ints of that time, is that you stated no one
should be Persuaded to invest any dollars or buy marks for the purpose
of purchasing shares of the company, with the further statement that
the company was organized solely for the purpose of permitting present
holders of German marks to convert them into the shares of our company.
These marks, as every one knows, became aosolutely worthless. It
was the careful management of the company and wise Investments that
we were able to realize this $S per share, which gave the holders of these
marks just that much money which otherwise could never have been
realized had they continued to hold their marks.
Should you _equire any further information teem me, I shall be happy
to furnish it.
With expression of my personal regard. I am
Sincerely yours.
EDWARD S. PAINE.

As to the charge we quote the following from an Associated
Press account from Stockbridge, Mass., Oct. 11:
Colonel Frederick H. Payne, Assistant Secretary of War, who believes
"the nation would have experienced a Democratic victory if the national
elections had been held in July." to-day saw a Republican victory in
November. . . .
He criticized Franklin D. Roosevelt. the Democratic Presidential
nominee, for his "failure to make his position clear."
"It becomes apparent," he said of Roosevelt. "that he Prefers to sidestep rather than take a stand. His actions repudiate his pledge "to make
dear his position at the earliest possible moment."
Mr. Payne quoted from the San Francisco "Chronicle" in referring to
"the crowning example of insincerity."
"The 'Chronicle'," Payne said. "recalls and reprints an advertisement
that appeared in its issue of Oct. 12 1922. In that advertisement United
European Investors, Ltd., Franklin D. Roosevelt, President, invited
American investors to participate in the large earnings and dividends
of German industries. Less than a year after the advertisement appeared
the German crash came.
"Did United European Investors, Ltd., Franklin D.Roosevelt, Peesident.
ever repay a single dollar lost by American investors through their activities in the foreign investment field? Not that I know of."

President Hoover, in Appeal to Nation Over Radio,
Asks for Support of Local Organizations to Aid in
Relieving Distress.
Giving to local community organizations to relieve "the
increased distress over the country" was urged by President
Hoover at Washington Oct. 16 in opening a series of
Nation-wide radio programs for relief mobilization in the
coming winter. The President's appeal follows:
The purpose of this appeal this evening is to summon
again the great
heart of the American people. We must make
our material provision
for the support of our charitable and character-b
uilding institutions. We
must provide to the utmost extent for the local community
support to the
increased distress over the country.
I take profound pride in the fact that my countryme
n have accepted
the responsibility, each in his own community
, to meet this need. That
is the only way to meet it effectively—in the
neighborhood itself, where the
need is known.
The normal burden has been easily met in
the past, and in the past two
years we have responded to the unusual burden.
This personal sense of obligation and the
desire to give have added to
these community funds a wealth of human
sympathy that has meant
much indeed to those who have received
aid from them. Not only have
their material needs been supplied, but a friendly
hand has added a precious
warmth besides.
I have confident faith that the overwhelming majority
of our people
will not allow themselves to be tempted into doing less than their uttermost

2764

Financial Chronicle

toe cause so charged with civic duty and so rich in appeal to every generous
instinct of their hearts.
For the past two winters this campaign for community funds for relief
was carried on by committees, which I have organized specifically for that
purpose. This year the National Association of Community Chests has
taken the responsib lity of organizing the work of voluntary giving in every
community. They represent the co-operation of all these agencies. The
funds they gather will bo disbursed through these existing agencies, upon
an agreed division of the work. Thus the appeal for funds is centred locally
In the one group, in order to simplify and expedite their collection.
In closing, let me say that no richer blessing can fill your own hearts
than the consciousness on some bleak winter's evening that your generosity
has lighted a fire upon some family's hearth that otherwise would be black
and cold and has spread some family table with food where otherwise children would be wanting. I wish my last word to you to be the word "give."

Opening of Federal Home Loan Banks,
The 12 Federal Home Loan Banks opened for business
Oct. 15 and are now functioning, the Federal Home Loan
Board announced. Franklin W. Fort, Chairman of the
Board, said in the announcement that there is now no sound
reason why mortgage lending institutions should not promptly
make sound home mortgage loans, since the system stands
ready to provide the necessary funds. The statement as
given in the "United States Daily" follows:
The Federal Home Loan Bank System was launched successfully to-day
when the 12 regional banks comprising the system opened their doors for
business promptly. Telegraphic advices to Chairman Fort from each bank
gave the hour of opening in each city as that of the oeginning of the banking
day and in some cases announced the name of the executive Vice-President
who had been elected to take active charge of the bank.
Franklin W. Fort. Chairman of the Federal Home Loan Bank Board, expressed general satisfaction over the inauguration of the system and sounded
a note of warning thst loans on home mortgages on excessive real estate
valuation could not be expected.
Mr. Fort said:
"I am very much pleased to announce that every one of the 12 district
banks opened by Oct. 15, which was the mark set six weeks ago.
"Many of the oanks are in temporary quarters out all are organized and
functioning.
"I want to express my very deep appreciation of the devotion and drive
that has nee,n shown by the directors in all of the bank districts in accomplishing the almost impossible task of organizing and opening on such short
notice.
"There no longer exists any reason why the ordinary mortgage lending
-7
institution in any section of the count should not promptly Proceed to
snake sound home loan mortgages, as the home loan banks are ready to
money with which to do so.
furnish them with
"Of Course, this does not mean loans can be made on excessive valuation
or real estate or excessive percentage of that value. Nor in cases where the
owner can not nossiolY carry the property. But it should now be possible
to get any loan which would be procurable in times of normal business."

In its issue of Oct. 18 the "Daily" said:
The Pittsburgh Home Loan Bank opened with William F. Bell, of Beaver
Falls, Pa.. as Executive Vice-President and in active charge. Mr. Bell
resigned from the banks board of directors to accent this post.
The Newark Home Loan Bank opened with George N. Bliss as Executive
Vice-President. In active char,re.
The Winston-Salem Home Loan Bank opened with Hugh Gordon Jr., of
Miami, as Executive Vice-President, in charge.
The Evanston Home Loan Bank opened with A. R. Gardner of Olympia.
Wash., as Executive Vice-President. in active charge.
The Little Rock bank opened with Benjamin H. Wooten, Dallas, Tex..
Executive Vice-President. in active charge.
The Los Angeles bank opened with William F. Duffy of San Francisco,
as Executive Vice-President. In active charge.
The Federal Home Loan Bank Board here has not yet been formally
advised of the Executive Vice-Presidents for the remaining banks.
-day Period the
Reports of the stock subscriptions received during the 30
books were open which ended last night are coming in but it Is expected that
final figures will be avallatle.
it will be several days before

Items bearing on the new Federal Home Loan Banks
appeared in these columns Oct. 15, pages 2598-2599.
George L. Bliss, Manager of Federal Home Loan Bank
of Newark, New Jersey.
George L. Bliss of New York City took charge of the
Newark Home Loan Bank as General Manager on Oct. 18,
according to the Newark "News" of that date which also
said:

He also was named as Executive Vice-President. He will work with an
executive committee composed of Francis V. D. Lloyd of Hackensack.
President of the bank: Ernest A. Minter and Louis J. Cohen of Newark and
Eustace Seligman of New York.
Announcement of the selections was made by George MacDonald. Chairman of the Board of Directors, after an executive session in the offices of the
Eagle Fire Insurance Co., of which Franklin W. Fort, National Chairman
of the Bank. is General Manager.
The Chairman also announced that Mr. Bliss had resigned as Vice-President of the Franklin Society for Home Building and Savings in New York.
fo prevent a repetition of the overrunning of the oank offices in the Let
court Building by applicants for individual loans the Chairman announced:
"The board is in sympathy with the individual applicants and their needs,
but to accommodate the thousands of applicants, their applications will not
be received by the board direct, but must be made through savings banks
and building and loan institutions."
It was emphasized by the Chairman and other officers in talks to applioantes that the Home Loan Bank cannot lend directly to individuals unless
aid can not be secured from the institutions that have been making loans.
These organizations are savings banks, insurance companies and building
and loan associations.

Approved Loans by Agricultural Credit Corporations
for Crop Raising Total 1% Million—Advances of
$75,000 First Week Made to Farmers and Stockmen.
Loans totaling $75,516.76 were made by the seven Agricultural Credit Corporations during the first week of their




Oct. 22

1932

operation, which ended Oct. 14, and in addition a total of
502 loans amounting to $1,502,320.56 were approved, although
disbursement had not been made at the end of the week, the
Reconstruction Finance Corporation announced Oct. 17.
The "United States Daily" of Oct. 18 further reports:
A total of 1,935 applications or such loans aggregating $2,571,837.82
were on file in the various credit corporation offices at the end of the
week. Disbursements are to be made with all possible speed.
37 Loans Made.
The loans were made to farmers and stockmen by the Corporations, the
capital being supplied by the Reconstruction Finance Corporation. Loans
actually made during the week under survey totaled 37.
Section 201, Paragraphs (e) and (1) of the Emergency Relief and
Construction Act of 1932, provides, in connection with the Agricultural
Credit Corporations, as follows:
"(e) The Reconstruction Finance Corporation is further authorized to
create in any of the 12 Federal Land Bank districts where it may deem
the same to be desirable a Regional Agricultural Credit Corporation with
a paid-up capital of not less than $3,000,000, to be subscribed for by the
Reconstruction Finance Corporation and paid for out of the unexpended
balance of the amounts allocated and made available to the Secretary of
Agriculture under Section 2 of the Reconstruction Finance Corporation Act.
Such Corporations shall be managed by officers and agents to be appointed
by the Reconstruction Finance Corporation under such rules and regulations
as its Board of Directors may prescribe.
Aid for Crop and Stock Raising.
"Such Corporations are hereby authorized and empowered to make loans
or advances to farmers and stockmen, the proceeds of which are to be used
for an agricultural purpose (including crop production), or for the raising,
breeding, fattening, or marketing of livestock, to charge such rates of
interest or discount thereon as in their judgment are fair and equitable,
subject to the approval of the Reconstruction Finance Corporation, and to
rediscount with the Reconstruction Finance Corporation and the various
Federal Reserve banks and Federal Intermediate Credit banks any paper
that they acquire which is eligible for such purpose. All expenses incurred
in connection with the operation of such Corporations shall be supervised
and paid by the Reconstruction Finance Corporation under such rules and
regulations as its Board of Directors may prescribe.
"(1) All loans made under this Section, and all contracts of the character described in Paragraph (1) of Subsection (a), shall be fully and
adequately secured. The Corporation, under such conditions as it shall
prescribe, may take over or provide for the administration and liquidation
of any collateral accepted by it as security for such loans.
"Such loans shall be made on such terms and conditions, not inconsistent
with this Act, as the Corporation may prescribe, and may be made directly
upon promissory notes or by way of discount or rediscount of obligations
tendered for the purpose, or otherwise in such form and in such amount
and at such interest or discount rates as the Corporation may approve:
Provided, That no loans or advances (except loans under Subsection (c))
shall be made upon foreign securities or foreign acceptances as collateral."
Loans Approved and Pending.
The full text of the Corporation's announcement follows:
Thirty-seven loans, totaling $75,516.76, were made by Agricultural Credit
Corporations the week ending Oct. 14. In addition, 602 loans were approved
for an amount totaling $1,502,320.56, although disbursement had not been
made on the 14th.
Applications are on file, the Corporation stated, in various Credit Corporation offices, totaling 1,935 and representing $2,571,837.82. Disbursements on these loans will be made as rapidly as they are approved.
The week ended Oct. 14 was the first week the Credit Corporation offices
were open for business. Loans are made to farmers and stockmen by the
Credit Corporations.

Mortgage Bankers in Western and Southern States
Report on Farm Loans for Last Year.
Farm mortgage loans were smaller in both total volume
and average size in 1931 asl compared with the preceding
year, mortgage bankers in 17 Western and Southern States
have reported to the Bureau of Agricultural Economics.
There were higher ratios of loans to value of farms. More
general use was made of the gradual payment system. Renewed loans represented a materially higher percentage of
the value of mortgaged property than did new loans. The
Bureau on Oct. 10 further stated:
Of a total of 3,918 loans, representing more than $19,500,000 in loan
contracts made during the year in these States, 2,335, amounting to
#13,100,000, or 67%, consisted of renewals; the remainder, 33%, represented new loans. In the preceding year, 69% of the business represented
renewals, and 81% new loans.
The average ratio of loans to value of the farms constituting the security
was 39.4% on new loans last year, and 61.3% on loans renewed. Loans
requiring renewal, the Bureau explains, typically include farms with
heaviest indebtedness since their original loan contracts were made when
land values were at higher levels. Approximately 87%, or nearly
$19,000,000, loaned by these bankers last year was for a term of five years.
The Bureau notes a further marked increase, last year, in the proportion
of new martgage contracts containing the provision that some payment on
the principal should be made each year during the term of the loan.
Loans requiring such payments on principal constituted 65% of the total
in 1931, compared with 52% in 1930 and less than 10% in 1929. Straight
loans payable at the end of their terms showed a decline in relative importance from 90% of the total in 1929 to 35% in 1931.
Life insurance companies took 71.2% of the total loans, or less than in
previous years, whereas there was an increase in the proportion of farm
mortgages bought by private investors and other local agencies. The preveiling interest rate to owners of funds loaned on farm mortgages was 5.7%,
and additional costa for commissions and handling expenses amounted to
eight-tenths of 1%.

End to Railroad Credit Corporation Regarded Likely—
Four Carriers Against Continuance and Majority
for Unit Is Needed.
The Railroad Credit Corporation, one of the first national
agencies organized to stem the tide of the depression, will

Volume 135

2765

Financial Chronicle

be voted out of any existence except that of a liquidating
body at the convention of the Association of Railway Executives here on Nov. 10, it was learned on Oct. 19, according
to the New York "Herald Tribune" of Oct. 20, from which
we also quote:
Discontinuance of the agency has been made possible by the successful
operation of the Reconstruction Finance Corporation, which has been armed
with reserves substantial enough to cope with the demands now being
made on the Railroad Credit Corporation.
On March 31 the official life of the latter Corporation expires unless
action to renew it is taken at next month's meeting of the railroad executives. That such action will definitely not be taken was indicated yesterday
when it was revealed that the New York Central RR., together with the
Southern Pacific, Delaware & Hudson, and Atchison Topeka & Santa Fe
railroads, will lead a fight against perpetuation of the Credit Corporation.
Unanimous Vote Needed.
An agreement exists among the members of the Association of Railway
Executives, it was further learned, that a unanimous vote of the Association
can alone renew the credit agency's life after the date fixed in its constitution. There is no possibility of such a vote being mustered, it was unequivocally stated by an officer of one of the railroads above mentioned.
Supplementing the contention that the active functioning of the Reconstruction Finance Corporation had obviated the need of the railroad agency
Is the fact that 90% of the railroads contributing the funds now making
possible the latter's existence are running under operating deficits thus far
thie year and are unable to meet their fixed charges without outside aid.
The Railroad Credit Corporation, which has been characterized by Leonor F.
Loree, President of the Deleware & Hudson, as "senseless socialism," was
created by the railroads at the suggestion of the Inter-State Co-amerce
Commission on Nov. 19 1931. In order to provide the Corporation with
the funds necessary to its activity, the Commission authorized the railroads
to put into effect freight rate surcharges on special commodities calculated
to bring the railroads an added annual return of between $100,000,000
and $125,000,000.
Revenues Fall Short.
These surcharges were to be paid into the Corporation's treasury and then
advanced in the tom of loans to those needy railroads otherwise unable to
meet their fixed interest obligations. This plan has worked out as conceived, except that the revenue return from the surcharges will fall short
of the $100,000,000 minimum estimate of the Commission by at least
$55,000,000.
Of the $60.000,000 which the railroads expect to realize from surcharges
from 1932 operations, $6,000,000 will be held as a reserve, $9,000,000 will
not be received until after the year-end, and the balance of $45,000,000
will be more than eaten up by the applications of railroads in financial
distress for loans with which to meet their fixed interest obligations. Those
carriers which cannot be cared for by funds from the Railroad Credit
Corporation will have to seek the aid of the Reconstruction Finance Corporation. The latter has already indicated its willingness to help them,
provided adequate security Is offered.
To date the railroad organization has been successful in averting numerous
interest defaults by leading carriers on their funded debt and has loaned
more than $30,000,000 to 40 railroad companies. The Corporation has no
authority to make loans to prevent defaults in payments of principal of a
maturing obligation, a contingency which, however, the charter of the
Reconstruction Finance Corporation enables the Government organization
to meet.
The railroads are not united on the question of discontinuance of their
credit agency, although a majority is understood to stand for its dissolution.
Whether or not they can borrow from it any sum commensurate with their
contributions to the agency is a guiding motive in deciding their course.
Those systems opposed to furtherance of the Corporation's life are in the
main large contributors who receive nothing in return for their contributions
other than the interest rate levied against borrowers.
Those systems whose total contributions to the agency exceed the borrowing which their smaller units exact from it are supposed to favor continuation of the Corporation's lending activities. In this class are such lines
as the Chesapeake & Ohio RR. Co., which has not been a borrower although
It has contributed, to date, approximately $8,500,000. Yet this money
has more than been returned indirectly in the form of loans irons the credit
agency to the road's affiliates, such as New York Chicago & St. Louis RR.
Directors of the Railroad Credit Corporation will meet this afternoon
at the offices of the Railway Express Agency in this city.

Its order in Ex Parte 103, authorizing the rate increases, and leaving the
carriers free to apply the loaning plan.
The assent of substantially all the eligible Class I railroads and of a
large percentage of the other classes was assured before Dec. 12 1931, and
the Marshalling and Distributing Plan declared effective as of Jan. 1 1932.
The Plan provides that the revenues derived from the increased rates be
ascertained within 40 days after the close of the month in which earned
and paid over to your Corporation within 10 days thereafter. Accordingly
the January 1932 revenues became payable to your Corporation on March 21
1932. Your Corporation is not authorized to borrow moneys, therefore,
its only available loaning funds were and are the emergency revenue
contributions.
During the period in which your Corporation had no funds, and immediately
thereafter, when all of its receipts were required to meet the pressing
necessities of its member lines, participants were enabled to secure loans
to meet necessities upon the assurance that when funds were available
your Corporation would take over any such loans to carriers then eligible.
Such assurances amounted to $16,120,814.50, and obligations with respect
thereto have now been fulfilled.
The Plan requires your Corporation to refund to each participating carrier
so much of any tax or taxes as it shall have been required to pay because of
the receipt by it of revenue from the increased rates. To meet this
potential liability, 10% of the amounts received is being set aside and
deposited in separate bank accounts as a special reserve fund.
The Inter-State Commerce Commission's findings, on which the order
In Ex Parte No. 103 was based, estimated that the proceeds of the rate
increases would produce between $100,000,000 and $125,000,000 in the
15-month period from Jan. 1 1932 to March 31 1933. For the same period
the maximum requirements to meet fixed interest obligations and to
prevent defaults thereon were estimated to be $60,000,000. The indications now are that the increases will produce a net available for loans
in 1932 of approximately $45,000,000, while the requirements will be in
excess of $100,000,000, an estimated deficit of $55,000,000. Funds
available for loans during 1932 are the revenues accruing to carriers to
Oct. 31 1932, less the tax reserve.
To make up the deficit in funds available for interest, and also requirements for such items as taxes, equipment trust obligations, maturities,
and current operating expenses, recourse has been had largely to the
Reconstruction Finance Corporation.
In its report in Docket No. 25135, commenting upon its reliance upon
the representations of the carriers to apply the loaning plan and agency, the
Inter-State Commerce Commission states: "The carriers have justified
this reliance."
A condensed statement of resources and application thereof to Sept. 80
1932 shows:
Resources—

Emergency revenues reported by participating carriers
Accrued interest
Proceeds from sale of capital stock

$35,764.808.20
213,5119.56
1.200.00

Total
APPlicatfOn—
Loans
Less payments

$35,979,395.78
528.719,279.00
1,065,250.00

' Net outstanding
Cash reserved for tax payments, &c
Accounts receivable and accrued items
Expense of administration

$31.595,101.81

Total
Balance
Loan commitments subject to demand

Pursuant to the conditions precedent to the authorizations by the InterState Commerce Commission for rate increases allowed under Ex Parte
No. 103, your Corporation was created on Dec. 14 1932.
The carriers by railroad and by water, subject to the jurisdiction of
the Inter-State Commerce Commission, filed an application, on June 17 1931,
for a general increase of 15% in their all-rail and rail-water freight rates
and charges. After hearings during the summer and autumn of 1931, the
Commission on Oct. 18 1931, while denying the application, suggested rate
Increases on certain commodities for a period ending March 31 1933, conditioned upon the acceptance of a plan for the division of the gross proceeds
derived from the increases among needy carriers.
In compliance with these conditions, the carriers filed a supplemental
petition in which they alleged, in substance, that the pooling plan outlined
by the Commission could, as a practical matter, best be made effective by
the creation of a corporate entity through which the revenues, derived from
the increases might be marshalled and distributed, in the form of loans,
for use by eligible carriers, to prevent default in fixed interest obligations
The petition included a draft of the plan, together with a draft of the
charter and by-laws proposed for the Corporation to be organized to carry
out the provisions of said plan. On Dec. 5 1981 the Comnrission entered




$4.384.293.95
4,027.500.00

5358.798.95
Available working fund
The emergency revenues reported to Sept. 80 1982 were earned by
participating carriers during the seven months' period ending July 31 1932.
The provision in the plan for rendering reports 40 days after the close
of the month accounts for the differences in dates. An analysis of reports
by classes and regions follows:
Class I Carriers (189).
Emergency Revenue.
Region—
51,835.317.37
New England region
7.886.053.93
Great Lakes region
9,223.122.94
Central Eastern region
2,296.805.08
Pocahontas region
3.901.253.14
Southern region
3,196,478.38
North western region
4.680.735.26
Central Western region
2.295.177.91
Southwestern region
Grand total—United States

First Annual Report of Railroad Credit Corporation—
Amount Available for Loans $45,000,000—Requiremanta in Excess of $100,000,000—Re-election of
Directors.
The first annual report of the Railroad Credit Corporation was submitted to the stockholders on Oct. 18 by E. G.
Buckland, President. The report indicates that approximately $45,000,000 will be available for loans to railroads,
while the requirements to meet fixed interest obligations
will be in excess of $100,000,000—an estimated deficit of
$55,000,000. The report was presented as follows by Mr.
Buckland:

$27,654,029.00
3,553.918.66
28.5.926.77
101.228.38

$35,094.744.01

Class II and III Carriers (290)An regions

669.882.19

Grand total—all roads(429)
$35,764,606.20
The financial statement as of Sept. 80 1932, a copy of which has been
filed with the Inter-State Commerce Commission and each participating
carrier, has been checked by Mr. T. H. Seay, Comptroller, Southern Railway
System, and found to be in accordance with the Corporation's record and
books of account. In addition thereto, certificates have been received from
each of the duly appointed custodians which show that all collateral items,
deposited to secure repayment of loans, are held in safe keeping for your
Corporation.
For the Board of Directors,
E. G. BUCHLAND, President.

The financial statement of the Railroad Credit Corporation as of Sept. 30 was given in our issue of Oct. 8, page 2436.
At the stockholders' meeting, on Oct. 18, the folloVvinif
were re-elected members of the Board of Directors:
F. W. Charske, Chairman of the Executive Committee, Union Pacific
System.
P. E. Crowley, President of the Rutland RR. Co.
George M. Shriver, Senior Vice-President of the Baltimore & Ohio RR. Co.
A. J. County, Vice-President of the Pennsylvania RR. Co.
Bird M. Robinson, President of the American Short Line Railroad
Association.
E. 0. Buckland, Chairman of the Board of the New York New Haven &
Hartford RR. Co.
H. A. Scandrett, President of the Chicago Milwaukee St. Paul & Pacific
RR. Co.
G. B. Elliott, President of the Atlantic Coast Line RR. Co.
E. N. Brown, Chairman of the Board of the St. Louis-San Francisco
Railway Co.
L. A. Downs, President of the Illinois Central System.
J. J. Pelley, President of the New York New Haven & Hartford RR. CO.
J. J. Bernet, President of the Chesapeake & Ohio Railway Co.

2766

Financial Chronicle

Report for August of Reconstruction Finance Corporation Made Public by Clerk of House.
As we indicated a week ago (page 2430), South Trimble,
Clerk of the House, made public on Oct. 7 the report for
August of the Reconstruction Finance Corporation. The
August report had been submitted to the House on Sept. 28,
and with it was a letter and legal argument against its
publication. Both the letter (of Atlee Pomerene, Chairman
of the Corporation) and the brief, prepared by Morton G.
137gue, General Counsel of the Corporation, were given in
trese columns Oct. 8, page 2431. In making the August
figures public on Oct. 7, Mr. Trimble, Clerk of the House,
issued a statement (which we publish elsewhere in this issue)
in which he says "after consideration of the protest filed
by the Reconstruction Finance Corporation and the brief
by my counsel analyzing the protest, I adhere to my original
opinion that the law requires me to allow the public to
inspect the Corporation's monthly reports. In submitting
to the Clerk of the House the August report, Chairman
iene said: "Under the provisions of Section 5 of the
Reconstruction_ Finance Corporation Act, the Corporation
during A.11
-glISt authorized 1,110 loans aggregating $111,596,631.90 and authorized increases aggregating $10,681,010
in loans authorized prior to Aug. 1 1932, making a total of
$122,277,641.90. "These figures, "he said, "do not include
amounts withdrawn or cancelled from Aug. 1 to Sept. 21
inclusive, the date this report was closed."
A table in the report summarized the loans as follows:
Banks and trust companies (including receivers)
Building and loan associations
Insurance companies
Mortgage loan companies
Federal Land banks
Joint Stock Land banks
Agricultural credit corporations
Livestock credit corporations
Railroads (including receivers)
Total

$85.057.605.43
12.294.1814.87
3.708.700.00
2.101.720.00
3,000.000.00
55.000.00
594,1121.62
2.667.822.98
12.798,583.00
$122,277.641.90

From the report we quote:
Parts of loans authorized during the period from July 21 to 31 1932
Inclusive, which were withdrawn or canceled during the period from Aug. 1
to Sept. 21. inclusive. aggregated 81,224.264 22
Total repayments during the month of August were $35,241,799.47,
as follows:
Banks & trust co's___$31,301.176.46 Building & loans assns.$1.573.337.82
296.009.69 Mortgage loan co's_ _ 1.423.658.10
Insurance co's
1.235.00 Joint Stock Land bks_
Credit unions
_
5,843.00
Agricultural Credit
Livestock Credit corcorporations _
_
7.613.68
porations
408.041.41
224.884.31
Railroads

The report in full, as given in a Washington dispatch to
the New York "Times" follows:
Sept. 28 1932.
Hon.South Trimble. Clerk of the House of Representatives, Washington. D. C.
-Pursuant to the provisions of Section 201(b). Title II, of the
Sir:
Emergency Reliefand Construction Act of 1932. the Reconstruction Finance
Corporation submits this report of its activities and expenditures for August
1932. together with a statement of loans authorized during that month,
showing the name, amount and rate of interest in each case.
Under the provisions of Section 5 of the Reconstruction Finance Corporation Act, the Corporation during this period authorized 1.110 loans aggregating $111.596.631.90 and authorized increases aggregating $10.681.010.00
In loans authorized prior to Aug. 11932. making a total of 3122.277.641.90,
as shown in Table 1. These figures and the list of loans authorized, contained in Table 1, do not include amounts withdrawn or canceled from
Aug. 1 to Sept. 21, inclusive, the date this report was closed.
Of the $122.277.641.90 authorized. $85.057.605.43 was authorized to
banks and trust companies (including $7.772.900 to aid in the reorganization
or liquidation of closed banks): 112.294.188.87 to building and loan associations: $3.708.700 to Insurance companies:$2.101.720 to mortgage loan companies; $3.000.000 to a Federal Land Bank; $55,000 to a Joint Stock Land
Bank; $594.021.62 to Agricultural Credit corporations; $2,667,822.98 to
Livestock Credit corporations, and $12.798.383 to railroads (including
$5.696.449 to railroad receivers).
Loans authorized by the Corporation are sometimes withdrawn or canceled in full or in part due to: the funds are not required by the borrowing
Institution; part of the collateral is defective or not available for pledging
at the time; the borrowing institution closed after the loan was authorized,
and for other reasons. Loans which were authorized in August and withdrawn or canceled in full during the period from Aug. 1 to Sept. 21.inclusive,
no part of the proceeds being disbursed, are not included in the loans authorized, and listed in Table I. but are summarized below. Likewise in cases
where parts of loans authorized in August were withdrawn or cance:led during
the period from Aug. 1 to Sept. 21. inclusive, the amounts withdrawn or cancelled are not included in Table 1, the net amount of the authorizations being
given. These withdrawals or cancellations also are summarized below.
Loans Withdrawn or Canceled.
Loans authorized during August which were withdrawn or canceled in full
during the period from Aug. 1 to Sept. 21, inclusive, no part of the proceeds
being disbursed, were as follows: to thirty-five banks and trust companies
aggregating $2.631.571.70; to one insurance company in the amount of
$780.000, and to one mortgage loan company in the amount of $40.000.
Parts of loans authorized during August which were withdrawn or canceled during the period from Aug. 1 to Sept. 21. Inclusive, were as follows:
To banks and trust companies. $420,163.70; to building and loan associations. $249,411.13: to an insurance company, 535.000.00; to mortgage loan
companies. $25.280.00. and to Livestock Credit corporations. 818.631.59.
Loans authorized from July 21 to July 31 1932. inclusive, which were
withdrawn or canceled in full during the period from Aug. 1 to Sept. 21.
inclusive, no part of the proceeds being disbursed. aggregated 35.552.400.00.
These withdrawals and cancellations are listed in Table 2, because the loan
authorizations were included in the Corporation's report for the period from
July 21 to 31 1932, inclusive.




Oct. 22

1932

Parts of loans authorized during the period from July 21 to 31 1932.
inclusive, which were withdrawn or canceled during the period from
Aug. 1
to Sept. 21. inclusive, aggregated $1.224.264.22. These withdrawals and
cancellations are listed in Table 3, because the loans to which they relate
were contained in the Corporation's report for the period from July 21 to
311932. inclusive.
In addition to the above, loans aggregating 33.818.078.91, which were
authorized before July 21 1932, were withdrawn or canceled in full
during
the period from Aug. 1 to Sept. 21, inclusive, and parts of the loans which
were authorized before July 21 1932. aggregating $8.158.861.01, were withdrawn or canceled during the period from Aug. 1 to Sept. 21, inclusive.
In cases where loans authorized prior to Aug. 1 1932 were increased
during the month of August, the amount ofsuch increase is listed in
Table 1
as a loan authorized during August.
Applications for loans received at the Washington office of the Corporation under Section 5 of the Act during the period numbered 1.151, as follows:
899 from banks and trust companies (including 50 applications from receivers or liquidating agents of closed banks), 140 from building and loan
associations, 14 from insurance companies. 21 from mortgage loan companies. 1 from a Federal Land Bank, 2 from Joint Stock Land banks. 30
from Agricultural Credit corporations, 32 from Livestock Credit corporations and 12 from railroads (including 2 from railroad receivers).
Loans for Relief Made Available.
Under the provisions of Section 1. Title I of the Emergency Relief and
Construction Act of 1932. the Corporation made available
113.931.669 for
the purposes cif relief and work relief during August, as shown in Table 4.
Formal applications received under this Act during August numbered
218.
of which 44 were for relief under Title I and 174 were for loans under
TitleII.
Under the provisions of Section 201 (d), Title II, of the Emergency
Relief and Construction Act of 1932. the corporation authorized two loans
aggregating 150.000.000. as shown in Table 5.
Total repayments during the month of August were 135.241.799.47. as
follows: Bank and trust companies.$31.301.176.46; building and loan associations. 81.573.337.82; insurance companies. $296,009.69; mortgage loan
companies. 81.423.658.10; credit unions. $1,235; joint Stock Land banks.
$5,843; agricultural credit corporations. $7,613.68; live stock
credit corporations, $408.041.41. and railroads, 1224.884.31.
During the month of August 125.000.000 of the $250.000.000
"Second
Series" 3ti% notes authorized by the board of directors on June 16
1932.
and 575.000.000 of the 8250,000.000 "Third Series" 3%% notes authorized
by the board of directors on July 23 1932, were sold to the Secretary of the
Treasury.
During the period the Corporation allocated $10.000.000 to the Secretary
of Agriculture in accordance with the provisions of Section 2 of the Reconstruction Finance Corporation Act, making a total of $107.500.000 allocated
from Feb. 2 to Aug. 31. inclusive. Of this sum $75.000,000 had been
paid over to the Secretary of Agriculture as of Aug. 31.
The following tables are attached as a part of this report:
Table 1. Statement of loans authorized from Aug. 1 to Aug. 31
1932.
inclusive, under Section 5 of the Reconstruction Finance Corporation Act,
showing the name, amount and rate of interest in each case (exclusive of
amounts withdrawn or cancelled from Aug. 1 to Sept. 211932. inclusive).
Table 2. Statement of loans authorized from July 21 to July 31 1932,
Inclusive, which were withdrawn or cancelled in full from Aug. 1 to Sept.
21
1932. inclusive, no part of the proceeds being disbursed.
Table 3. Statement of loans authorized from July 21 to July 31 1932,
inclusive, which were withdrawn or cancelled in part from Aug. 1 to
Sept. 21
1932. 4. Statement of amounts made available from Aug. 1 to Aug. 31
Table
1932. inclusive, under Section 1. Title I, of the Emergency Relief and
Construction Act of 1932. upon application of the Governors of the
States
mentioned, showing names of the States, amounts made available and
rate
of interest.
Table 5. Statement of loans authorized from Aug. 1 to Aug. 311932.
inclusive. under Section 201 (d), Title II, of the Emergency Relief and
Construction Act of 1932.
Table 6. Statement of cash receipts and expenditures of the Corporation,
Aug. 1 1932. to Aug. 31 1932, inclusive. (Corporation's account with
Treasurer of United States).
Table 7. Statement of condition of the Corporation as of the close of
business, Aug. 31 1932.
Respectfully,
POMERE
ANE.
Chairman,
the succeeding tables the asterisk Indicates that no part
In
of this amount
had been disbursed up to Sept. 211932. inclusive.]
TABLE I.
Statement of loans authorized from Aug. 1 to Aug. 31 1932, inchisim
under Section 5 of the Reconstruaion Finance Corporation Act. showing
the name, amount and rate of interest in each case (exclusive of amounts withdrawn or cancelled,from Aug. 1 to Sept. 21 1932. indusive)•
BANKS AND TRUST COMPANIES,
ALABAMA.'
Int.
Amount
Rate.
City and Name
Authorized.
%
Andalusia-The Andalusia National Bank
$25.000.00 5
Atalla-The Atalla Bank
10.000.00 5
Ashville-Farmers and Merchants Bank of Ashville
3.500.00 5
Birmingham-Exchange Bank
9.940.00 5
Carrollton-Bank of Carrollton
*40.000.00 5
Castleberry-The Peoples Bank of Castleberry
_
5,000.00 5
Decatur-The Morgan County Nat.Bk.of Decatur_
.
34.900.00 5
Decatur-Tennessee Valley Bank
24.900.00 5Si
Decatur-Tennessee Valley Bank
25,000.00 5
Fairfield-Fairfield Trust & Savings Bank
4,000.00 5
-The Citizens Bank of Otuitersville_ _
Guntersville
4.500.00 5
Jasper-First National Bank of Jasper
*30.000.00 5
Lexington-Bank of Lexington
6.000.00 5
Louisville-The Bank of Louisville
3.000.00 5
Moulton-The Citizens Bank
6,925.00 5
Tuscumbia--The First National Bank
*
30.000.00 5
ARIZONA.
Holbrook-The First National Bank _
7.300.00
Holbrook-The First National Bank
5,250.00
-The Nogales Nat. Bank (Receiver)
Nogales
40.000.00 5
Phoenix-The Valley Bank & Trust Co
280.000.00 5
Prescott
-The Bank of Arizona
51.250.00
Prescott-Yavapal County Savings Bank_
32.500 00 5
Tucson-United Bank & Trust Co
20,000.00 5
ARKANSAS
Casa-Farmers Bank
2.500.00 5
Cotter-Bank of Cotter
10.000.00 5
Gurdon-Clark County Bank
10.000.00 5
Bettis
-First National Bank
20.000.00 5
Judsonia-Bank of Judsonia
5.000.00 5
Junction City-The Merchants & Farmers Bank
15.0(10.00 5
Martanw-Lee County Nat. Bank of Marianna
215,000.00 5
-McGehee Bank & Trust Co
McGehee
20.000.00 5
Bt. Francis
-Bank of Bt. Francis
1,300.00 5

gg

Volume 135
City and Name—
Searcy—Security Bank
Sheridan—Grant County Bank
Shirley—Bank of Shirley
Wheatley—Rice Growers Bank
Wynne—Cross County Bank

Financial Chronicle
Amount
Authorized.
53,591.72
16.000.00
4.000.00
5,000.00
*60.000.00

Int
Rat.
%
54
54
534
54
54

CALIFORNIA.
Alturas—Modoc County Bank
30,000.00 5
Alturas--Modoc County Bank
15,000.00 534
Anaheim—Anaheim First National Bank
18,000.00 5
Cambria—Bank of Cambria
50.000.00 534
Chico—Peoples Savings and Commercial Bank
42.000.00 5
Coachella—First National Bank of Coachella
40,000.00 534
Corcoran—The First National Bank of Corcoran_
20,000.00 54
Cucamonga—The First National Bank of Cucamonga
10,000.00 53,4
Folsom—Bank of Folsom
*27.500.00 53,4
Glendale—First National Bank in Glendale
75.000.00 53,4
Hermosa Beach—The First National Bank
10.000.00 5
Hermosa Beach—The First Bank of Hermosa Beach.,
8,250.00 53,4
Huntington Park—City Nat'l Bank of Huntington Pk
10,000.00 5
Laton—The First National Bank of Laton
15.000.00 534
Verne—The Farmers & Merchants Bk.of La Verne
La
30.000.00 53,4
Lindsay—Lindsay Savings Bank
75.000.00 534
Long Beach—The Seaside Nat'l Bank of Long Beach
(Receiver)
165,000.00 5
Marysville—Decker
-Jewett Bank
40,000.00 534
Madera—The First National Bank of Madera
27,500.00 5
Maywood—The Maywood Bank
15,000.00 5
Monterey—The First National Bank of Monterey
65,800.00 534
Newport Beach—The First National Bank of Newport
Beach (Receiver)
19,000.00 5
pasadena--Citizens Commercial Trust and Savings
Bank of Pasadena
225,000.00 5
Pacific Grove—The First Nat'l Bark of Pacific Grove
25,C00 5
Salinas—Monterey County Trust and Savings Bank130,000.00 5
Santa Ana—The Farmers & Merchants Savings Bank
of Santa Ana
84.000.00 5
Sequel—Citizens Commercial and Savings Bank
10,000.00 53,4
Torrance—The First National Bank of Torrance
13,00.00 53,4
Vacaville---First National Bank
20,000.00 534
COLORADO.
Alamosa—First State Bank of Alamosa
10.000.00 534
Boulder--Boulder National Bank
62.000.00 54
Craig—The First National Bank of Craig (Receiver)_
13.000.00 5
Dolores—J. J. Harris & Co.. Bankers
15.000.00 5
Parker—Douglas County Bank
13,000.005
Plattsville—The Piattaville National Bank
10.000.00 534
Pueblo—Southern Colorado Bank
45,000.00 53,4
Ramah—The State Bank of Ramah
5.000.00 53.4
Simla—Simla State Bank
3,000.00 53.4
CONNECTICUT.
Bridgeport—The Bridgeport City Trust Co
Bridgeport—West Side Bank, The
Bridgeport—West Side Bank, The
Bridgeport—West Side Bank, The
Bristol—Bristol Bank and Trust Company
Madison—Madison Trust Company
Meriden—Puritan Bank and Trust Company (repaid
in full)
South Manchester—The Savings Bank of Manchester
DISTRICT OF COLUMBIA.
Washington—The Commercial National Bank of
Washington
Vi'ashington—The Commercial National Bank of
Washington
Washington—The Prudential Bank
'Washington—The Prudential Bank
Washington—Washington Savings Bank
FLORIDA.
Clermont—Citizens Bank of Clermont
Fort Pierce—St. Lucie County Bank
Jacksonville—The Citizens Bank of Jacksonville_
Kissimmee—The First National Bank of Kissimmee—
Lake City—State Exchange Bank
Live Oak—Commercial Bank of Live Oak
Milton—First National Bank of Milton
Saint Cloud—The Citizens State Bank
Starke—Bank of Starke
Tavares—Bank of Tavares
GEORGIA.
Claxton—The First National Bank
Cumming—Bank of Cumming
Gainesville—The Gainesville National Bank
Hartwell—The First National Bank of Hartwell
(Receivers)
Lake Park—Lake Park Bank,Lowndee County
Soperton—The Bank of Soperton
Valdosta—First National Bank
Wadley—Bank of Wadley
Waycross—The First National Bank of Waycross.—
West Point—Citizens Bank & Trust Co
Winder—Winder National Bank
IDAHO.
Ferdinand—Ferdinand State Bank
Gooding—First Security Bank of Gooding
Idaho Falls—Anderson Brothers' Bank
Jerome—First Security Bank of Jerome
Moscow—The Moscow State Bank
New Plymouth—New Plymouth State Bank
Orofino--Bank of Orofino
Preston—First Security Bank of Preston
St. Manes—Lumbermen's State Bank of Preston
Star—Farmers Bank
Twin Falls—Twin Falls Bank & Trust Co
ILLINOIS.
Anna—First National Bank of Anna
Ashkum—Farmers Trust & Savings Bank of Azilikura.
Beecher—First State Bank of Beecher
Benson—Farmers State Bank of Benson
Bloomington—American State Bank
Bloomington—Liberty State Bank
Blue Island—State Bank of Blue Island
Carlock—Farmers State Bank of Carlock
Carrier Mills—The First National Bank
Cham/Alga—The First National Bank of Champaign
(Receiver)
Charleston—The National Trust Bank of Charleston_
Chicago—Aetna State Bank
chicago—Aetna State Bank
Chicago--Austin State Bank
Chicago--Austin State Bank
Chicago--Cosmopolitan State Bank
chicago--Cosmopolitan State Bank
cmoage—Halsted Street State Bank
Chicago--Lawndale National Bank
ckicago—Lawndale National Bank
Chicago--South Chicago Savings Bank
cmoago—Terminal National Bank
Cicero—First National Bank of Cicero
cropsey—Citizens State Bank of Cropsey
De Kalb—De Kalb Trust & Saving; Bank
E.ASE Dubuque—East Dubuque Savings Bank
Ellsworth—Bank of Ellsworth
Flat Rock—The Flat Rock Bank
Frankfort—The Citizens Bank of Frankfort
Giffordhe Morse State Bank of Gifford
—T




City and Name—
Hamilton—The First National Bank of Hamilton
(receiver)
Highland Park—Highland Park State Bank
La Orange—La Grange State Trust & Savings Bank_
La Prairie—La Prairie State Bank
Lebanon—The First National Bank of Lebanon
Macomb—First Trust & Savings Bank of Macomb
Madison—First National Bank
Milistadt—First National Bank of Milistadt
Mundelein—State Bank of Mundelein
Naperville—The First National Bank of Naperville—
Oalc Park—Avenue State Bank
Oak Park—Oak Park Trust & Savings Bank
Palatine—State Bank of Palatine
Pekin—The Farmers Nat'l Bank of Pekin (Receiver)
Pontiac—National Bank of Pontiac
Quincy—State Street Bank & Trust Co
Rockford—The Rockford National Bank (Receiver)_
South Holland—South Holland Trust & Savings Bank
Stanford—Stanford State Bank
Stronghurst—Stateliank of Stronghurst
Vermont—Peoples State Bank
West Chicago—West Chicago State Bank
Westmont—First State Bank of Westmont
INDIANA.
Borden—The Borden State Bank
Dale—The Dale State Bank
Elkhart—St.Joseph Valley Bank
Farmersburg—Farmersburg State Bank
Hammond—Hammond Nat'l Bank & Trust Co.(Rec.)
Holton—Holton State Bank
Huntington—The Citizens State Bank
Jasonville—First National Bank of Jasonville
Jasper—Farmers & Merchants State Bank
Logansport—The Logansport Loan & Trust Co
Michigan City—The Peoples State Bank
Mishawaka—First National Bank
Mishawaka—First Trust & Savings Bank
Mishawaka—First Trust & Savings Bank
Nappanee—Farmers & Traders Bank of Nappanee_
New Albany—New Albany National Bank
Princeton—The Peoples American Nat'l Bank of Pr..
Rochester—United States Bank & Trust Co
Rockport—The First National Bank of Rockport
Scottsburg—Scottsburg State Bank
South Bend—The St. Joseph Loan & Trust Co
Union City—Union Trust Co
Warsaw—Lake City Bank

IOWA,
Albta—First Iowa State Bank of Albla
Alburnett--Albuniett State Bank
Aileman—Farmers Savings Bank
200.000.00 534
Allison—State Bank of Allison
25.000.00 54
Ames—Ames Trust & Savings Bank
200,000.00 5%
Ames—Union Story Trust & Savings Bank
40,000.00 53,4
Aredale--Aredale State Bank
85.000.00 5
Ashton—The First National Bank in Ashton
27.000.00 534
Atlantic—Farmers Savings Bank
Avoca—The Avoca State Bank
19.800.00 54
Bloomfield—Davis County Savings Bank
500,000.00 54
Boone—Boone State Bank
Bronson—The Bronson Savings Bank
Buffalo Center—The Farmers Trust & Savings Bank
of Buffalo Center
50,000.00 534
Buffalo Center—First Nat'l Bank of Buffalo Center_
Burlington—Burlington Savings Bank
160.000.00 51
Burnside—Burnside Savings Bank
5.000.00 5
Cedar Rapids—Cedar Rapids Savings Bk. & Tr. Co_
80,195.00 5
Charles City—Commercial Trust & Savings Bank
30.000.00 5
Clinton—City National Bank of Clinton
Colesburg—The Farmers Savings Bank of Colesburg_
Colwell—Farmers Savings Bank
15,000.00 5
Conrad—First State Bank
30,000.00 5
Council Bluffs—State Savings Bank
31.750.00 534
Creston—Farmers & Merchants Savings Bank
6,720.00 53.4
Decorah—Decorah State Bank
3500.00 53.4
Denver—Denver Savings Bank
26,000.00 53.4
Des Moines—Home Savings Bank
21.000.00 5
Des Moines—Valley National Bank
6,000.00 54
Dubuque—First National Bank of Dubuque
59.985.00 534
Dysart—National Bank of Dysart
20,000.00 54
Eidore—Citizens SavingsBank
Elkader—The Central State Bank & Trust Co
tate
Elma—Peoples Savings Bank
26.000.00 534
Ely—Ely Trust & Savings Bank
10,000.00 534
Extra—Exchange State Bank
25,000.00 54
Fairfield—Iowa Loan & Trust Co
Fairfield—Iowa State Savings Bank
13,000.00 5
Fertile—Farmers Savings Bank
6,000.00 534
Festina—Festina Savings Bank
12.500.00 5
Fort Madison—Lee County Savings Bank
310.000.00 534
Garwin—Farmers Savings Bank
5,000.00 53,4
Gilbertville--Farmers Savings Bank
*15.000.00 5
Goodell—State Savings Bank of Goodell
99,000.00 5
Grafton—Farmers Ste Bank
State
20.000.00 5
Hills—Hills Savings Bank
Holland—Farmers Savings Bank
Janesville—The Savings Bank of Janesville
3.100.00 534
50.000.00 534
Joice—Farmers Savings Bank
296.235.00 5
Kanawha—First Natior al Bank
30.000.00 53,4
Kesley—Kesley State Bank
6.510.00 534
Kiron—Kiron State Bank
5,600.00 534
Laurens—State Bank of Laurens
8.110.00 534
Leland—Leland Co-Operative Bank
44.500.00 55,4
Littleport--Littleport Savings Bank
22.630.00 53,4
Luxemburg—The Luxemburg Savings Bank
5,800.00 534
Lytton—Lytton Savings Bank
33,000.00 53,4
Madrid—Madrid State Bank
Manly—Manly State Bank
Maquoketa—Jackson State Savings Bank
11.500.00 534
Maynard—Maynard Savings Bank
40.000.00 55,4
Missouri Valley—First National Bank
Missouri Valley—State Savings Bank
3. .
43 800
0
'000
5
Monteith—Monteith Savings Bank
72.450.00 5
New Albin—New Albin Savings Bank
40.000.00 534
Ottumwa—First Bank & Trust Co
36.000.00 5
Pierson—Farmers Savings Bank
8,000.00 53,4
Pocahontas—The Commercial State
15.000.00 5
Polk City—Polk City Savings Bank Bank
Pomeroy—Pomeroy State Bank
400.000.00 5
Preston—United States Bank & Trust Co
18.000.00 534
Rake—State Savings Bank
37.000.00 534
Readlyn—Readlyn Savings Bank
103.000.00 534
Riceville—The First National Bank of
100.000.00 53,4
Russell—Russell State Bank & Trust CoRiceville
75.000.00 534
Sabula—Sabula Savings Bank
75.000.00 554
Sheldon—Sheldon National Bank
308.000.00 5
. Sibley—Sibley State Bank
126.450.00 5
Sidney—Fremont County Savings Bank
75.000.00 554
Slifer—Slifer Savings Bank
50.000.00 5
Soldier—Soldier Valley Savings Bank
125.000.00 53,4
Spencer—Farmers Trust & Savings Bank
130.000.00 53,4
Stout—Farmers Trust & Savings
56,000.00 5
Stuart—First National Bank of Bank
17.500.00 55,4
Sumner—First National Bank Stuart
81.000.00 534
Tabor—First State Bank
55000.00 53,4
Thurman—Thurman State Savings
7.000.00 534
Tipton—The Tipton National BankBank
20.000.00 5
Tripoli—American Savings Bank
25,000.00 53,4
Valley—Junction—First Nat.Bank of Valley Junction
20.000.00 54
Valley Junction—Valley Junction Savings Bank

2767
Amount
Authorized.

Int.
Rate.
%

31,000.00
135,000.00
63,400.00
10,000.00
75,000.00
*25,000.00
85,000.00
45,000.00
18,000.00
65.000.00
230,000.00
240,000.00
8.000.00
175.000.00
75,000.00
30,000.00
*400.000.00
58.000.00
10,000.00
18,000.00
*30,000.00
75,000.00
6.000.00

5
535
534
54
534
5t1
5
54
5
54
54
54
5
534
5
54
54
54
5
534

50.000.00
32.500.00
115,000.00
7,000.00
*155,000.00
29,000.00
64,304.56
11,000.00
26.400.00
*70,000.00
20,000.00
*25.000.00
100,000.00
*50,000.00
16.000.00
15.000.00
86,000.00
20,000.00
25,000.00
43,000.00
170,000.00
22,981.58
*25,000.00

534
534
54
54
5
5
5
5
5
5
534
5
5
5
5
5
5
534
534
534
53,4
534
534
,

68,304.41
15,000.00
26,000.00
24.000.00
*134,000.00
120,000.00
5,000.00
8,000.00
13,980.00
*57.000.00
65,000.00
*46,000.00
9,500.00

51
5
5
5
5
5
5
5
5
5
5
53.4

14,000.00
*3,500.00
80.000.00
10.000.00
160.000.00
35.000.00
*360.000.00
15.550.00
10.000.00
12,514.26
85,000.00
55,000.00
100.000.00
40.000.00
83.000.00
100,000.00
375.000.00
40,000.00
32.25000
.
49,900.00
14.084.00
50.000.00
16,500.00
18,000.00
50.000.00
5.000.00
24,000.00
40.000.00
42.500.00
14,000.00
12,000.00
30,000.00
*14,000.00
15.000.00
7.000.00
*18,000.00
23.000.00
10.000.00
32.000.00
10,000.00
19,000.00
15.000.00
12.000.00
17,000.00
12,000.00
35.000.00
41,000.00
28.000.00
38.500.00
23.000.00
50 0 :0 0
5:050 00
00

534
534
5
5
5
5
5
5
5
534
54
534
534
534
534
534
534
5g
5
5
534
54
sg
54
5;,3
534
5g
5%
534
534
51
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5ti
SR

340.000.00
25,000.00
*28,000.00
18.000.00
20.000.00
20.00(1.00
10,000.00
30.000.00
30.000.00
22.000.00
19.000.00
45: :
1000 00
0 000

554
5, 1
1
5
5g
554

534

Rti
2$
5
534

5

*19 000:00 5
7
:000 0
0 5
35.000.00
52.000.00
14.000.00
45.000.00
106.000.00
60.000.00
9.000.00
39.500.00
25,000.00
50.000.00
19,350.00

534
534
534
5
5
5
54
534
534
534
536

2768
City and Name—
Villisca—The Villisca National Bank of Villisca
Wailbrd—Farmers Savings Bank
Webster City—The First Nat.13k. of Webster City
Wellsburg—First State Bank
Wesley—Exchange State Bank of Wesley
Westgate—State Savings Bank
West Liberty—The Peoples State Bank
Williams—Williams Savings Bank
Woodburn—Woodburn Savings Bank

Financial Chronicle
Rate.
Amount
Authori:ed.
%
20,000.00 534
16,000.00 534
*30,000.00 534
17,000.00 534
23,500.00 534
14,819.09 534
20,000.00 534
19,000.00 534
10,000.00 534

KANSAS.
Blaine—The Blaine State Bank
Cheney—The Citizens State Bank
Coldwater—People's State Bank
Falun—Falun State Bank of Falun
Garnett—The Nat. Bk. of Corn. of Garnett(Receiver)
Highland—First Nat. Bank of Highland (Receiver) _ Kansas City—The Fidelity State Bank
Meade—The Meade State Bank

3,249.52
15,873.96
7,050.82
9,058.48
20,000.00
13,000.00
26,439.99
25,484.26

534
534
534
534
5
5
531
534

KENTUCKY.
Ashland—Third National Bank of Ashland
Buechel—Bank of Fern Creek
Covington—The First National Bank of Latonia
Fleming—First National Bank
Flemingsburg—The Peoples Bank of Fleming County
Georgetown—Georgetown National Bank
Hopkinsville—First City Bank & Trust Co
Irvington—First State Bank
Island—Island Deposit Bank
Lexington—Bank of Commerce
Lexington—Bank of Commerce
Lynch—Lynch National Bank
Marion—Farmers Bank & Trust Co
May's Lick—Bank of May's Lick
Morganfield—Union Bank & Trust Co
Morgantown—Morgantown Deposit Bank
Olive Hill—Peoples Bank
Paintsville—Paintsville National Bank
Paris—The First National Bank of Paris
Pineville—The Bell Nat. Bank of Pineville (Receiver)
Russell—First and Peoples Bank
Shelbyville—Shelbyville County Tr.& Banking Co_ _ _
Shively—Bank of St. Helens
Sturgis—Bank of Sturgis
Uniontown—Farmers Bank of Uniontown
Walton—The Walton Equitable Bank
Wilmore—First American Bank of Wilmore
Wilmore—The Wilmore Deposit Bank

56,000.00
9,000.00
66,500.00
23,500.00
17,500.00
44,000.00
60,000.00
47,000.00
4,500.00
78,000.00
94,000.00
16,850.00
35,000.00
22,500.00
30,000.00
19,955.00
22,000.00
26,500.00
45,500.00
*55.000.00
32,000.00
20.000.00
65,000.00
20,000.00
13.985.00
56,000.00
4,000.00
5,000.00

535
535
535
535
535
53.4
535
535
534
535
534
534
535
534
534
5
5
534
534
5
534
534
5
5
534
534
534
534

LOUISIANA.
Alexandria—Commerl Bk. & Tr. Co. of Alexandria_
Amite—Amite Bank & Trust Co
Arcadia—The Commercial Bank of Arcadia
Bastrop—Bastrop State Bank & Trust Co
Bastrop—Citizens State Bank & Trust Co
Campti—Citizens Bank
Choudrant—The Bank of Choudrant
Delhi—Macon Ridge National Bank, Inc
Delhi—Macon Ridge National Bank, Inc
Gibbeland—First National Bank of Gibbeland
Houma—Bank of Terrebonne & Trust Co
Independence—Independence Bank & Trust Co.__
Jonesboro—The Jackson Parish Bank
Kaplan—Kaplan State Bank
Lake Providence—The Lake Providence Bank
Napoleonville--Citizens Bank & Trust Co
Natchitoches—Exchange Bank of Natchitoches
Natchitoches—Merch's & Farm's Bk.(Repaid in full)
New Orleans—Interstate Trust & Banking Co
Paincourtville—The Bank of Paincourtville
Ponchatoula—Ponchatoula Bank & Trust Co
St. Joseph—Bank of St. Joseph & Trust Co
St. Martinville—Bank of St. Martinville
Springhill—Commercial Bank & Trust Co

100,000.00
84,000.00
11,750.00
50.000.00
17,500.00
15,000.00
14,591.61
7,500.00
13,000.00
16,000.00
200.000.00
110,000.00
50,000.00
14,963.00
21,000.00
20,000.00
35,000.00
12,500.00
178,275.50
15,450.00
40,000.00
45,000.00
11,000.00
20,000.00

534
535
535
534
534
534
534
534
534
534
534
53.4
534
534
534
534
534
534
534
534
534
534
534
534

MAINE]
Bangor—Merrill Trust Co
Houlton—Houlton Trust Co
Portland—Fidelity Trust Co. (Repaid in full)
Washburn—Washburn Trust Co

270,000.00
50,000.00
783,250.00
15,000.00

535
535
53.4
531

MARYLAND.
Annapolis—The Annapolis Banking & Trust Co____
Baltimore--Clifton Savings Bank
Baltimore—Commonwealth Bank
Baltimore—Title Guarantee & Trust Co
Baltimore—Union Trust Co. of Maryland
Brunswick—The Bank of Brunswick
Chestertown—The Third Nat. Bank of Chestertown
Cumberland—The Liberty Trust Co. of Cumberland
Hagerstown—The Hagerstown Bank & Trust Co—.—

150,000.00
100,000.00
300,000.00
735.000.00
12,500,000.00
75.000.00
60.000.00
*15,000.00
339.937.00

534
534
534
535
534
534
534
534
534

MASSACHUSETTS.
Framingham—Framingham Tr. Co. (Repaid in full)
Holyoke—Hadley Falls Trust Co
Lawrence—Merchants Trust Co
Malden—Malden Trust Co

30,000.00
649,875.00
210,000.00
40,850.00

535
533
535
535

MICHIGAN.
Allegan—Allegan State Savings Bank
Avoca—First National Bank
Bad Axe—State Savings Bank of Bad Axe
Battle Creek—Old-Merchants National Bk. & Tr. Co
Benton Harbor—Berrien County Bank (Receiver)
Benton Harbor—Berrien County Bank (Receiver)._
Coldwater—The Coldwater National Bank
Davison—Davison State Bank
Dearborn—Guardian Bank of Dearborn
Detroit—Detroit Trust Co
Dowagiac—The Dowagiac National Bank
Dowagiac—The Lee State Bank
Elsie—The State Savings Bank of Elsie
Flint—Citizens Commercial & Savings Bank
Flushing—First State & Savings Bank of Flushing
Grand Ledge—The Grand Ledge State Bank
Grand Rapids—Grand Rapids Savings Bank
Grand Rapids—Galewood-Wyoming State Bank_ _
Hartford—Olney National Bank
Highland Park—Highland Park State Bank
Hudsonville—The Hudsonville State Bank
Iron Mountain—First National Bank
Jackson—Jackson City Bank & Trust Co
Jonesville—The Grosvenor Savings Bank
Lenox—Macomb County Savings Bank
Lincoln—Lincoln State Bank
Manistee—First National Bank of Manistee
Manistique—The State Savings Bank of Manistique_
Memphis—Memphis State Bank
Milan—Peoples State Bank of Milan
Millington—Millington National Bank
Minith—Farmers State Bank of Minith
Niles—State Bank of Niles
North Branch—The Pioneer Bank
Pigeon—Pigeon State Bank
Port Huron—United States Savings Bank
Portland—Maynard-Allen State Bank
River Rouge—People Wayne City Bk.of River Rouge
Saginaw—Bank of Saginaw
Yale—Yale State Bank

50,000.00
18,000.00
25,000.00
650.000.00
52,000.00
33.000.00
20,000.00
*35.000.00
*305,000.00
*3,000.000.00
48,500.00
15,500.00
20,000.00
101,000.00
20.000.00
24,985.00
68,852.88
75.000.00
27.000.00
*2,000.000.00
20.000.00
190.000.00
101.730.0(1
45.000.00
100.00(1.00
*8.000.00
16.000.00
42.071.10
5.000.00
50.00(1.00
5.00(1.00
2.600.00
35,500.00
28.000 00
*15.000.00
10.000.00
50.000.00
200.000.00
100.000.00
12,500.00

53.4
534
534
534
5
5
534
534
534
5
5
5
5
5
534
5




5
5
5
5)5
5)5
535
5)5
5
5
5
5
5
5
5
5
5
5
5
63.
5
5
534
53.4

Oct. 22 1932
MINNESOTA.

Amount
City and Name
Authorized.
5,500.00
Altura—Altura State Bank
18,500.00
Altura—Altura State Bank
Belle Plaine—State Bank of Belle Plains
12,0(10.00
*56.000.00
Bemidji—The First National Bank
15,000.00
Benson—Swift County Bank. Inc
Blue Earth—Blue Earth State Bank
45,000.00
Ceylon—State Bank of Ceylon
15.000.00
Chicago City—Security State Bank
16.00(1.00
Eden Valley—State Bank of Eden Valley
15,000.00
20,000.00
Ellendale—Security State Bank
Ely—First State Bank of Ely
10,000.00
*12.000.00
Eveleth—People State Bank of Eveleth, Inc
60,000.00
Fairbault—The Citizens National Bank of Faribault_
29,000.00
Faribault—Faribauit State Bank & Trust Co
Finlayson—First State Bank of Finlayson
29.960.00
Floodwood—First State Bank of Floodwood
10.942.00
Fosston—The First National Bank of Fosston
13.987.00
Frost—State Bank of Frost
20,000.00
Gaylord—Citizens State Bank of Gaylord
18.500.00
Glenville—Citizens State Bank of Glenville
13.303.98
Hanska—State Bank of Hanska
35.000.00
Houston—Houston State Bank
14.000.00
90.000.00
Hutchinson—Citizens Bank
Jackson—The Brown National Bank of Jackson
2.000.00
Janesville—The Citizens State Bank
22.000.00
LeRoy—First State Bank of LeRoy
20,000.00
Luverne--First & Farmers Natl Bk.in Luverne(Rec.)
*14,000.00
New London—Farmers State Bank
5,000.00
New Prague—State Bank of New Prague
40,000.00
Onamia—First State Bank of Onamia
4.500.00
Palisade—Palisade State Bank
21,800.00
Pelican Rapids—Otter Tail County State Bank
12.000.00
Pine City—Farmers Si Merchants State Bank_
22.50(1.00
St. Bonifacius—Peoples State Bk. St. Bonifacius. Inc.
31.000.00
Renville—Renville State Bank
16,500.00
St. Clair—St. Clair State Bank
15.000.00
St. Paul—East Side State Bank of St. Paul
12,000.00
Sanborn—Sanborn State Bank
24.160.00
Springfield—State Bank of Springfield
24.000.00
Springfield—Farmers & Merchants State Bk of Sprgfd
40.000.00
Tamarack—First State Bank
7,760.00
Triumph—Triumph State Bank
17.000.00
Verdi—State Bank of Verdi
6.500.00
Warroad—Security State Bank
*11.000.00
Westbrook—The First Natl. Bk.of Westbrook (Rec.)
51,000.00
Winger—Farmer State Bank of Winger
2,000.00
MISSISSIPPI.
Biloxi—Peoples Bank
Booneville—The Bank of Bonneville
Clinton—Bank of Clinton
Greenwood—Greenwood Savings Bank (Receiver)
Gulfport—The First Natl Bk. in Gulfport (Receiver)
Kosciusko—Guaranty Bank & Trust Co. (Receiver)_
Kosciusko—The Kosciusko Bank
Lauderdale—Lauderdale State Bank
Meadville—Bank of Franklin
Olive Branch—Bank of Olive Branch
Sallis—Sallis Bank (Receiver)
Tunica—Planters Bank
Rupelo—Citizens State Bank
MISSOURI.
Belgrade—Belgrade State Bank
Brentwood—Brentwood Bank
Bucklin—Citizens Bank
Canton—Bank of Lewis County
Cape Girardeau—Sturdivant Bank
Carl Junction—Citizens Bank of Carl Junction
Cleveland—The Bank of Cleveland
Durham—Durham State Bank
Macon—First Bank & Trust Co
Marceline—Marceline State Bank
Montrose—Montrose Savings Bank
Nevada—Nevada Trust Co
Paris—Granville Bank
Pleasant Hope—The Pleasant Hope Bank
Revere—Bank of Revere
St. Clair—Bank of St. Clair
St. Louis—Hodiamont Bank
St. Louis—Hamilton State Bank
St. Louis—Jefferson-Gravois Bank of St. Louis
St. Louis—Scruggs Vandervoort & Barney Bank
St. Louis—Scruggs Vandervoort & Barney Bank
St. Louis—Shaw Bank & Trust Co
St. Louis—West St. Louis Trust Co
Thayer—Bank of Thayer
University City—West End Bank
Windsor—The First National Bank
MONTANA.
Big Timber—Citizens Bank & Trust Co
Culbertson—Culbertson State Bank
Deer Lodge—The U. S. Natl Bk. of Deer Lodge
Fairview—Fairview State Bank of Fairview
Froid—First State Bank of Froid
Medicine Lake—The First State Bk.of Medicine Lake
Poplar—Traders State Bank of Poplar
Valler—First National Bank of Valier
Whitehall—The Whitehall State Bank
Zurich—First State Bank
NEBRASKA.
Anoka—Boyd County State Bank
Bennington—Bank of Bennington
Blair—Citizens Savings Bank
Blair—Citizens State Bank
Blair—Farmers State Bank
Cairo—The State Bank of Cairo
Cedar Bluffs—Bank of Cedar Bluffs
Cedar Rapids—Farmers State Bank
Chappell—Deuel County State Bank
Clarkson—Clarkson State Bank
Columbus—Farmers State Bank
Curtis—Security State Bank
Dunbar—The Farmers Bank
Garland—Germantown State Bank
Homer—Security State Bank
Obert—The Farmers State Bank
Osmond—Security State Bank
Petersburg—Petersburg State Bank
Schuyler—Banking House of F. Folds
Whitney—Farmers & Drovers State Bank
NEVADA.
Elko—Henderson Banking Co ____
Pioche—Bank of Pioche, Inc
Reno—Bank of Nevada Savings & Trust Co
Reno—Reno National Bank.._
Reno—United Nevada Bank of Reno
NEW JERSEY.
Cliffside Park—Cliffside Park Title Guar. & Tr. CoClifton—The First National Bank of Clifton
Edgewater—Edgewater Trust Co
Haleton—lialeton National Bank of lialeton
Harrison—The West Hudson County Trust Co
Boboken—lioboken Trust Co
Little Ferry—The Little Ferry National Bank____
Metuchen—Commons ealth Bank of Metuchen
North Bergen—North Bergen Trust Co
Paterson—The Franklin Trust Co. of Paterson
I'erth Amboy—The Raritan Tr. Co. of Perth Amboy
Rochelle Park—Rochelle I'ark Bank

Int.
Rate.
%
5
5q
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
(5)5

sq

20.000.00
81.50(1.00 5
13.315.30 5
*140,000.00 5
*280,000.00 5
*42.500.00 5
47.795.20 5
*7.000.00 5
17.370.85 5
mom 00 5
*43.500.00 5
59.965.00
39,014.23

2g

15.000.00 5
12,000.00 5
*8,000.00 5
15.0nomn 5
10.000.00 5
12.50(1.00 5
2.50(100 5
7,00(1.00 5
22.600.00 5
11.0(10.00 5
19.175.00 5
23.000.00 5
10.000.00 5
19.550.00 5
4,500.00 5
*22,500.00 5
15.000.00 5

*95.000.00 5
1
'175.000.00
45.0(10.00
55.057.29
*25.000.00
170.0(10.00
*25.000.00
•72,000.00
50,000.00
30.000.00
25.0(10.00
39,450.00
•12.500.00
22.000.00
17.5(10.00
23.000.00
9.500.00
20,000.00
*10,000.00

5
5
5
5
5
5
5
5

I

7.500.00
20.000.00
5.000.00
1.500.00
12,354.67
7,625.00
5.900.00
16.325.00
*4.610.00
20.00(1.00
11.525.00
18,000.00
4,700.00
3,525.00
6,800.00
4.910.00
10.000 00
39.000.00
*24.500.00
5,535.60

5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5

199.013.91
23.000.00
75.000.00
39,500.00
50,000.00

5
5
5
5
5

59,536.32
350.000.00
99.829.84
50.000.00
300.000.00
100.000.00
25,000.00
15.460.00
30.000.00
135.000.00
39.541.29
45,000.00

5
5
5

5
5
5
5
5
5
5
5

Volume 135

Financial Chronicle
Int.
Amount
Rate.
Authorized.
%
38.000.00 554
135.000.00 534
165,000.00 534

City and Name—
Scotch Plains—First State Bank of Scotch Plains _
South Orange—South Orange Trust Co
West New York—The First National Bank
NEW MEXICO.
Albuquerque—First Say. Bk.&Tr.Co.of Albuquerque
150,000.00
Logan—McFarland Brothers Bank
10.000.00
NEW YORK.
Baldwin—Peoples State Bank of Baldwin
60,000.00
Churchville—State Bank of Churchville
37,000.00
Cicero—Cicero State Bank
12.500.00
Fulton—Citizens Nat. Bk. & Trust Co. of Fulton
79,925.00
Geneva—Geneva Trust Co
165.000.00
Granville—The Farmers Nat.Bk.of Granyille(Receiv)
150,000.00
Larchmont—The Larchmont Nat. Bk. & Trust Co
100.000.00
Lima—Bank of Lima
61,500.00
Mamaroneck—The First Nat. Bk. in Mamaroneck
200,000.00
Niagara Falls—East Side Bank
80.000.00
Niagara Falls—East Side Bank
70.000.00
Niagara Falls—The Falls Nat. Bk. of Niagara Falls_
255.000.00
Ontario—State Bank of Ontario
64.048.86
Pelham—The Pelham National Bank
100.000.00
Sodus—Gaylord State Bank
74.178.25
Suffern—Lafayette Trust Co. of Suffern
65,037.46
Syracuse—The Salt Springs Nat. Bk. of Syracuse...
326,575.00
Waddington—The Waddington Bank__
20,000.00
White Plains—The Peoples National Bank & Trust
Co. of White Plains
25,000.00
NORTH CAROLINA.
Conway—The Bank of Conway
2.500.00
Dobson—The Slurry County Loan & Trust Co
30,000.00
Fremont—Bank of Fremont
10.000.00
Gastonia--Gaston Loan & Trust Co
2.500.00
Greensboro—North Carolina Bank & Trust Co
*6,500.000.00
Lexington—Commercial Bank of Lexington
64,610.00
Mount Olive—Citizens Bank (Receiver)
*13,000.00
Newland—Avery County Bank
4,500.00
North Wilkesboro—Bank of North Wilkesboro
24,865.00
North Wilkesboro—Bank of North Wilkesboro
15,000.00
Raleigh—The Comm Nat. Bk.of Raleigh (Receiver).
721,000.00
Roanoke Rapids—Citizens Bank & Trust Co
4,000.00
Roanoke Rapids—Citizens Bank & Trust Co
3,500.00
Shelby—The First National Bank of Shelby
•
*95,000.00
First Nat. Bk. of Wash.(Receiver)
Washington—The
*16,000.00

554
554
554
534
534
554
554
5
554
554
554
5
5
534
534
5
534
554
554
554
534
554
5
554
554
554
554
5
534
534
534
5
534
534
5
5

NORTH DAKOTA.
Beach—Farmers & Merchants Bank_
12,000.00 534
Danzig—Farmers State Bank
*4,500.00 534
Petersburg—Citizens State Bank of Petersburg
5,850.00 5)4
Van Hook—The First Nat. Bk.of Van Hook(Receiver)
*15,400.00 5
Starkweather—Farmers Bank of Starkweather
10.000.00 534
OHIO.
Akron—The Commercial Bank & Trust Co
42.000.00 534
Akron—The Commercial Bank & Trust Co
35.000.00 554
Amsterdam—The Amsterdam State Bank Co
22,000.00 5
Ashley—The Farmers Savings Bank Co
10,500.00 534
Bergholz—The Bergholz State Bank Co
13,500.00 534
Burton—The First National Bank
20.000.00 554
Canton—The George 13. Harter Bank of Canton
1.750,000.00 534
Celina—The Citizens Banking Co
83,000.00 634
Cleveland—The Union Trust Co
2,000.000.00 534
Cleveland—The Zitiello Banking Co
19,815.00 554
Delta—The Peoples Savings Bank Co
*34.000.00 554
Fostoria—The Commercial Bank & Savings Co
34,500.00 554
Fredericktown—The First Nat. Bk. of Fredericktown
(Receiver)
24,000.00 5
Galion—The Citizens Nat. Bk. of Galion (Receiver).
17.500.00 5
Glenford—The Glenford Bank
11.000.00 534
Grafton—The Grafton Savings & Banking Co
30,000.00 534
Haskins—The Farmers Sayings Bank Co
7,000.00 554
Lima—Lima First American 'Trust Co
300,000.00 534
Lorain—The Lorain Banking Co
83.500.00 554
Lorain—The National Bank of Commerce of Lorain175.000.00 554
Lyons—The Farmers State Bank of Lyons
10,000.00 534
Marion—The Marlon National Bank (Receiver)
130,000.00 5
Middle Point—The Middle Point Banking Co
3,000.00 554
Painesville-'—The Painesville Nat. Bk. & Trust Co
50,000.00 534
Saint Paris—The First National Bank
9,500.00 554
Spring Valley—The Spring Valley National Bank...
11,000.00 534
Steubenville—The Antonucci State Bank
39,000.00 554
Steubenville—The Union Savings Bank & Trust Co
of Steubenville
*435,000.00 534
SylvaniaThe Farmers and Merchants Bank Co
23.952.71 534
Wellsville—The Peoples Nat.Bk.of Wellsville(Receiver)
78.000.00 5
OKLAHOMA.
Agra—Bank of Agra
3,311.05 554
Arnett—Farmers and Merchants Bank
6,563.50 534
Cashion—Cashion State Bank
10,729.62 554
Dill—Dill State Bank
2,587.15 554
Fort Cobb—Washita Valley Bank
3,629.31 554
Headrick—Citizens State Bank
3,482.01 554
Temple—First State Bank in Temple
2,955.00 534
Tryon—The Farmers and Merchants Bank
5,488.79 534
Watonga—The First Bank & Trust Co
3,912.32 554
OREGON.
Gresham—First State Bank
*42,500.00 534
Gresham—First State Bank
18,200.00 5
Juntura—First Bank of Juntura
2,430.00 5
70,000.00 5
La Grande—The First National Bank of La Grande_ _
Lebanon—The First National Bank of Lebanon
9,000.00 5
Mitchell—Mitchell State Bank
6,650.00 5
Newberg—First National Bank
20,000.00 5
Portland—Montavilla Savings Bank
29,000.00 5
16,000.00 534
St. Helens—Columbia County Bank
Shaniko—Eastern Oregon Bank Co
10,000.00 5M
20,000.00 5)4
The Dalles—The First National Bank of The Dallas_
25,000.00 554
The Dallas—The First National Bank of The Dalles.
PENNSYLVANIA.
Ashley—The First National Bank of Ashley
140,000.00 534
Barnsboro--The First National Bank
65.000.00 554
Beaverdale--The First National Bank of Beaverdale
53,500.00 5
(Receiver)
11,500.00 5H
Beaver Falls—State Bank of Beaver Falls
Bethlehem—The Gosztonyi Sayings & Trust Co
10,000.00 534
Birdsboro—First National Bank of Birdsboro
50,000.00 5
Bowmanstown___ _
Bowmanstown—Citizens Bank of
15,000.00 5
Carnegie—The Carnegie National Bank
*33,000.00 5
carnegle—The Union National Bank of Carnegie_ _ _
37,000.00 5
19,895.82 5
Cherry Tree—Farmers & March. Bk.of Cherry Tree_
Connellsville—The Union National Bank of Connells35.000.00 5
villa (Receiver)
10,000.00 534
Conshohocken—Conshohocken Trust Co
15,000.00 514
OoPlay—Coplay National Bank
50,000.00 534
Darby—The First National Bank of Darby
32,500.00 534
Derry—First Savings & Trust Co
550,000.00 5
Easton—The Easton Trust Co
24,000.00 5
Elwood—The First National Bank
40.000.00 5
Emeee—The Emaus National Bank
300,600.00 554
Erie—Erie Trust Co
210,000.00 554
Erie—The Second National Bank of Erie
30,500.00 5
Farrell—The Colonial Trust Co.of Farrell
65,000.00 5
City—The First Natl. Bk.& Tr.Co.of Ford City
Ford
Bank of Ford City
12.500.00 5
Ford City—Peoples
Bank
45,000.00 5
Forest City—First National Bank
30,000.00 5
Fort—Forty Fort State
Forty
45,439.27 5
Freeport—Freeport Bank & Trust Co
of Glen Rock
20.000.00 5
Glen Rock—Trust Co.
20,000.00 5
Harrisburg—Citizens Trust Co. of Harrisburg




City and Name—
Harrisburg—Commonwealth Trust Co
Hawley—The Hawley Bank
Hellertoym—Saucon Valley Trust Co
Indiana—First National Bank of Indiana
Jeannette—First Bank & Trust Co
Jeannette—Glass City Bank
Jenkintown—Jenkintown Bank & Trust Co
Jennerstown—Peoples State Bank
Jersey Shore—The Jersey Shore Trust Co
Jersey Shore—The State Bank of Jersey Shore
Johnstown—Johnstown State Deposit Bank
Johnstown—Morrellville Deposit Bank
Johnstown—Moxham National Bank
Kittanning—Safe Deposit & Title Guaranty Co
Kutztown—Farmers Bank & Trust Co
Lancaster—Northern Trust & Savings Co
Lansford—The Dime Bank of Lansford
Lebanon—North Side Bank & Trust Co
Lilly—The First National Bank of Lilly
Lykens—First National Bank of Lykens
McKee's Rocks—The McKee's Rocks Trust Co
McKeesport—Peoples City Bank
Medla—Media 69th Street Trust Co
Mifflinburg—Mifflinburg Ii...nk & Trust Co
Nanticoke—Peoples Savings& Trust Co.of Nanticoke
Norristown—Norristown-Penn Trust Co
Oil City—Citizens Banking Co
Philadelphia—Broad Street Trust Co
Philadelphia—City National Bank of Philadelphia
Philadelphia—Commercial Natl.Bank of Philadelphia
Pittsburgh—Tlle Bank of Pittsburgh National ASSII.
(Receiverr—
Pittsburgh—The Exchange National Bank of Pittsburgh (Receiver)
Pittsburgh—Fourteenth Street Bank
Pittsburgh—Hazlewood Savings & Trust Co
Pittsburgh—The Highland National Bank of Pittsburgh (Receiver)
Pittsburgh—Real Estate Says.& Tr. Co. of Allegheny
Punxsutavmey—Farmers & Miners Trust Co
Reading—Mount Penn Trust Co
Reading—Penn National Bk.& Tr. Co.of Reading
Renovo—The First Nat'l Bank of Renovo (Receiver)_
Rockwood—Farmers & Merchants National Bank
St. Clair—Citizens Bank
Scranton—Green Ridge Bank
Scranton—Providence Bank
Shamokin—Dime Trust & Safe Deposit Co
Shamokin—The Guarantee Trust & Safe Deposit Co.
of Shamokin
Tamaqua—Peoples Trust Co. of Tamaqua
Tarentum—First National Bank & Trust Co
Tower City—The Tower City National Bank
Turtle Creek—Turtle Creek Savings & Trust Co
Vandergrift—The Vandergrift Savings & Trust Co__ _
Wilkes-Barre—The Hanover Bank & Trust Co. of
Wilkes-Barre
Wilkes-Barre—The Hanover Bank & Trust Co. of
Wilkes-Barre
Williamsport—Bank of Newberry
Williamstown—Miners& Merchants Bank
Windber—The Citizens National Bank
Zellenople—The First National Bank of Zelienople
RHODE ISLAND.
Woonsocket—Woonsocket Trust Co
SOUTH CAROLINA.
Aiken—The Farmers & Merchants Bank
Camden—The Bank of Camden
Charleston—The South Carolina National Bank of
Charleston
Florence—First National Bank of Florence (Receiver)
Saluda—The Planters Nat'l Bk. of Saluda (Receiver)
Spartanburg—The Central Nat'l Bk.of Spartanburg_
Winnsboro—Bank of Fairfield
Winnsboro—Bank of Fairfield
SOUTH DAKOTA.
Alcester—State Bank of Alcester
Beresford—Security State Bank of Beresford
Bonilla—Bonilla State Bank
Brandon—Brandon Sayings Bank
Carthage—Farmers State Bank
Greenway—The Greenway State Bank
Howard—Miner County Bank
Humboldt—Bank of Humboldt
Lebanon—The Citizens State Bank of Lebanon
Norris—Blackplpe State Bank
Orient—Orient State Bank
Plankinton—Case and Lathrop State Bank
Rovillo—Farmers and Merchants Bank
Roscoe—Farmers State Bank
Scotland—Farmers and Merchants State Bank
Wagner—Commercial State Bank
Wessington Springs—Jorauld County Bank
Wood—Mellette County Bank
TENNESSEE.
Bradford—Bank of Bradford
Chattanooga—The First Nat. Bank of Chattanooga
Cookeville—First National Bank
Covington—Union Savings Bank
Crossville—First National Bank
Dandridge—Jefferson County Bank
Darden—Bank of Darden
Dayton—Dayton Bank & Trust Co., Inc
Elbridge—Bank of Elbridge
Englewood—Bank of Englewood
Friendship—Bank of Friendship
Gadsden—Peoples Exchange Bank
Halls—Bank of Halls
Halls—Bank of Halls
Humboldt—Merchants State Bank
Johnson City—The Unaka and City National Bank.
Kingston—Kingston Bank & Trust Co
Knoxville—East Tennessee National Bank
Lafayette—Citizens Bank
Liberty—Liberty Savings Bank
Lobelville—Bank of Lobeiville
McKenzie—Commercial Bank
Morristown—The First National Bank
Normandy—Duck River Bank
Ripley—First State Bank
Rutledge—Citizens Bank & Trust Co
St. Joseph—American Bank
Scotts MU—Farmers State Bank
Sevierville—Bank of Sevierville
Sneedville—The Citizens Bank of Sneedville
Westmoreland—Farmers and Merchants Bank
Yorkville—Bank of Yorkville
TEXAS.
Austin—Republic Bank & Trust Co. of Austin
Balmorhea--Toyah Valley State Bank
Bandera—First State Bank
Bonham—Bonham State Bank
Center—The Farmers State Bank of Center
Dallas—State Trust & Savings Bank
Edinburg—American State Bank & Trust Co
Elsa—Canal Banking Co
Fort Stockton—The First National Bank of Fort
Stockton (receiver)
Fort Worth—The Texas Nat. Bk. of Ft.Worth (Rec.)

2769
In:.
Amount
Rate.
Authorized.
%
170,000.00 5q
10,000.00 5
100,000.00 5
118,350.00 554
56,500.00 5)4
125,000.00 534
325,000.00 534
5,000.00 534
30,000.00
35,000.00
6,000.00
13,000.00
75,000.00 534
195,000.00 5H
90,000.00 534
90,000.00 534
,
55,000.00 534
55,000.00 534
20,000.00 534
6,000.00 534
56,500.00 554
381.500.00 534
150,000.00 534
35,000.00 534
65,000.00 554
525,000.00 534
50.500.00 534
260,000.00 534
,
195,000.00 534
107,279.95 534

gt1

2,730,000.00 5 450,000.00 5
468,201.13 5)4
22,500.00 514
500,000.00
136.000.00
61,500.00
70,000.00
175,000.00

5
534
554
534
53I

6
I,r08.80
. )
80,000.00
45,000.00
60,000.00
36,000.00

534
534
534
535

100,000.00
40,000.00
160,000.00
50,000.00
47,600.00
110,000.00

554
554
554
5)4
5H
534

RH

115,000.00 534
50,000.00
75,000.00
12.000.00
60,000.00
25,000.00

5
1
5
5
534
534

295,625.00 534
40,000.00 534
4,000.00 534
843,000.00
67,500.00 5
*20,000.00 5
375,000.00
*5,000.00
42,000.00 534
10.000.00
25,000.00
3,500.00
10.000.00
10,000.00
2,000.00
10,000.00
23.980.00
9,000.00
3,916.00
5,000.00
15,000.00
19.505.00
3.500.00
10.000.00
18.000.00
11 388 8. 8
:1 .

15.000.00
1,060.000.00
90.000.00
13.000.00
29.500.00
15,000.00
2,300.00
25,000.00
8,500.00
3,500.00
12,000.00
15,000.00
14.000.00
10,000.00
83,611.68
5 :000 00
8 00000
0 000:0
0

534 •
534
5)4
534
514
554
534
534
534
534
534
534
534
534
534
534
St1

534
534
534
534
534
534
5
5
5
5
534
534
5
56
5g
554
5
534
534
5
5
554
534
534
5
5
5

650.000.00
25.000.00
5,000.00
12.000.00
20.000.00
50.000.00
2:5 0 00
5 50 :
000
5.50000
18.000.00
2.200.00
11.000.00
30.000.00
25.000.00
2.800.00
10.000.00

5g
5
534
534
534

124,299.87
12.000.00
30.000.00
*37.500.00
7,245.00
*60.000.00
22.000.00
15,000.00

534
534
5)4
5)4
534
534

12.000.00 5
*110.000.00 5

2770
City and Name—
Harper—First State Bank
Hereford—The First State Bank
Iowa Park—State National Bank of Iowa Park
Lexington—Lexington State Bank
Littlefield—First National Bank
Lyford—First State Bank of Lyford
Marlin—Marlin-Citizens National Bank
McAllen—McAllen State Bank
Meadow—The First National Bank of Meadow
Memphis—Citizens State Bank
Memphis—The Hall County National Bank
Mercedes—The First National Bank
Pittsburg—The Pittsburg National Bank
Rochelle—Rochelle National Bank
Ropestille---The First State Bank
San Saba—The City National Bank
San Saba—The San Saba National Bank
Silverton—The First National Bank of Silverton
Sunset—The Sunset State Bank
Utopia—First State Bank
Uvalde—The Commercial Nat. Bank of Uvalde
Weslaco—The Security State Bank
White Deer—The First Nat. Bank of White Deer
UTAH.
Helper—The Helper State Bank
Nephi—The First National Bank of Nephi
Ogden—First Savings Bank of Ogden
Sandy City—Sandy City Bank
Spanish Fork—The Commercial Bk of Spanish Fork
Springville—Mondenhall Banking Co
Woods Cross—Farmers State Bank
VERMONT.
Montpelier—Montpeller Savings Bk. & Tr. Co
North Troy—Valley Savings Bank & Trust Co
Poultney—The Citizens National Bank
Richford—The Rictiford Savings Bk. & Tr. Co
VIRGINIA.
Alberta—Bank of Alberta
Big Stone Gap—The First National Bank
Bloxom—Peoples Bank of Blorom
Crewe—The First National Bank of Crewe
Eastville—The Eastville Bank
Grundy—The First Nat. Bank of Grundy (Receiver)
Hanover—The Tri County Bank, Inc
Petersburg—The First Nat.Bk.& Tr.Co.ofPetersburg
Richmond-Ameriran Bank & Tr. Co. of Richmond
Victoria—The First Nat. Bk. of Victoria (Receiver).
WASHINGTON.
Arlington—The Citizens State Bank of Arlington
Bla ne--Home State Bank
Burlington—The First National Bank of Burlington
lone—tone State Bank
Kelso—The First National Bank of Kelso (Receiver)
Palouse—The Farmers State Bank of Palouse
Pullman—The Pullman State Bank
Sumas--Bank of Sumas
Tieton—Tieton State Bank
Tonasket--Tonasket State Bank
Wenatchee—Columbia Valley Bank
Winthrop—Farmers State Bank
WEST VIRGINIA.
Barboursville—The First State Bank
Charles Town—Bank of Charles Town
Chester—The First National Bank of Chester
Clarksburg—The Empire Nat! Bank of Clarksburg
Clarksburg—The Union Nat! Bank of Clarksburg_ _ _
Grafton—The Taylor County Bank
Hamlin—The Farmers & Merchants Bk. of Hamlin _
Huntington—Huntington Banking & Trust Co
Lost Creek—The Harrison County Bank
Milton—Bank of Milton
Morgantown—Second Nati Bk of Morgantwn (Rec.)_
Moundsville—Mercantile Banking & Trust Co
Moundsville—Mound City Bank
Parkersburg—The Citizens National Bank
Princeton—Princeton Bank & Trust Co
Webster Springs—The First National Bank
Wellsburg—Wellsburg Banking & Trust Co
West Union—The First National Bank
Williamson—The First National Bank
WISCONSIN.
Abrams—Abrams State Bank
Adams—Adams County State Bank
Amery—Union State Bank
Auburndale—Auburndale State Bank
Balsam Lake—Polk County Bank
Barton—Barton State Bank
Belleville--Belleville State Bank
Black Earth—Black Earth State Bank
Bloomington—The Woodhouse & Bartley Bank--Brandon—Farmer State Bank
Bristol—Home State Bank
Burnett—Burnett State Bank
Butler—State Bank of Butler
Butternut—Ashland County Bank. The
Cambridge—Bank of Cambridge
Clinteuaville--First National Bank of Clintonville
Colfax—Peoples State Bank
Collins—Collins State Bank
Cross Plains—State Bank of Cross Plains
Cudahy—Cudahy State Bank
Deerfield—Bank of Deerfield
Delavan—Citizen Bank of Delavan
Dousman--Dousman State Bank
Elkhart Lake—flank of Elkhart Lake
Ellsworth—Bank of Ellsworth
Fall River—The First State Bank
Fort Atkinson—Fort Atkinson Savings Bank
Galesville—Farmers & Merchants State Bank
Green Bay—The Farmers Exchange Bank
Green Valley—State Bank of Green Valley
Haugen—Haugen State Bank
Hurley—Iron Exchange Bank of Hurley
Kendall—Kendall State Bank
Ladysmith—Pioneer Nat! Bank of Ladysmith
Larsen—The Farmers State Bank
Lone Rock—Farmers Bank of Lone Rock
Madison—The Commercial National Bank
Madison—The Commercial National Bank
Marshfield—Cloverland State Bank
Mayville—The First National Bank of Mayville
Mellen—Mellen State Bank
Menomonee Falls—Citizens State Bank
Menomonee Falls—Farmers & Merchants Bank
Merton—Farmers Exchange Bank
Middleton—Bank of Middleton
Milladore—Milladore State Bank
Milwaukee—Badger State Bank of Milwaukee
Milwaukee—Bay View Nail Bank of Milwaukee
Milwaukee--Kilbourn State Bank
Milwaukee--Merchants & Farmers State flank
Milwaukee—Sixteenth Ward State Bank
Milwaukee—State Bank of Milwaukee
Milwankee—Teutonia Avenue State lank
Mondovi—The First National Bank of Mondovi_
Neenah—Neenah State Bank
New Richmond—Bank of New Richmond._
Oregon—Bank of Oregon




Financial Chronicle
Int.
Rate.
Amount
Authorized.
%
25.000.00 534
40.000.00 531
20,000.00 534
4.930.30 5
29,354.90 534
2,500.00 534
75.000.00 534
40.000.00 534
3.000.00 534
19.863.00 534
18.000.00 534
30.000.00 534
10.000.00 534
6.000.00 534
4,812.00 534
21.000.00 534
9,664.93 534
15.000.00 534
1.1)00.00 534
5,000.00 534
80.000.00 534
25.000.00
35.000.00

RI

56,500.00
15.000.00
171.933.19
21,10000
.
26.300 00
19.000.00
9,850.00

5
534
5
5
5%
5%
534

75.000.00
25.000.00
50,000.00 534
40,000.00 534
25.000.00
17.500.00
8.000.00
15.000 00
15.098.75
11,000.00
11.1)00.00
40.000.00
375.000.00
19.000.00

534
534
534
534
53.4
5
534
534
534
5

*21.000.00
25.450 49
11.000.00
2.600.00
45.000.00
3.250.1)0
15.000 00
2.500.00
2.870.00
2.000.01)
28,290.00
*8,700.00

514
534
5
5%
5%
5
5
534
534
534

8,500.00
30.000.00
30.000.00
200.1)00.00
75.000.00
70.000.00
14.500.00
140.000.00
20.000.00
64,590.00
335,000.00
30,000.00
31.000.00
70,000.00
229.975.00
10.500.00
38.000.00
16,500.00
198.375.00

534
534
534
534
534
534
5
5
5
53-4
5
534
535
534
534
5
5
5
534

*15.000.00
32.000.00
35.000.00
21.000.00
33.000.00
*10.000.00
23.000.00
52.000.00
75.000.00
25.000.00
17,000.00
17.500.00
8.500.00
17.100.00
50.000.00
70.000.00
35,000.00
21.000.00

534
534
534
534
534
534
534
534
534
534
534
534
54
51
5
5
534
534
534
534
534
534
534
5%
534
534
5.34
534
534
534
534
5
5
534
534
534
534
534
534
534
534
534
534
5%
534
5
534
534
534
534
5%
5%
534
534
534
534
534

35:770:W00
94 005
32.000.00
78.000.00
20.800.00
*18.000.00
90.965.00
12.000.00
45.000.00
15.000.00
*26,500.00
12.000.00
30.000.1)0
13.000.00
25.000.00
55.000.00
•10000.00
*14.000.00
140,000.00
125.000.00
22,000.00
*28.000.00
20.000.00
24,000.00
100.000.00
25,000.00
25,000.00
13,000.00
*175.000.00
210.000.00
114,050.00
469.950.00
*50.000.00
33606.30
,
*165.000.00
12.500.00
30,000.00
20.000.00
*36,000.00

RI

City and Name—
Redgranite—Redgranite State Bank
Reedsburg—The Citizens State i ank
Reedsburg—The Reedsburg,
ank
Rio—First State Bank of Rio
Saukville—Saukville State Bank
Sheboygan—State Bank of Howards Grove
Sheboygan Falls—State Bank of Sheboygan Falls_ _ _
So. Milwaukee—The Home State Bank of So. Mirkee
South Milwaukee—South Milwaukee.i3ank
Sparta—Monroe County Bank
Spring Green—Farmers State Bank
Stanley—Citizens State Bank
Stratford—Stratford State Bank
Tigerton—The First National Bank of Tigerton
Two Rivers—Bank of Two Rivers
Two Rivers—Two Rivers Savings Bank
Two Rivers—Two Rivers Savings Bank
Viroqua—Bank of Viroqua
Waterford—Noll's . ank
Wautoma—Farmers Home P.ank
Whitelaw—Whitelaw State Bank
Wisconsin Dells—Farmers & Merchants State Bank _
Wild Rose—Wild Rose State Bank
Wittenberg—Citizens State Bank of Wittenberg__ _ WYOMING.
Rock Springs—First Security Bank of Rock Springs_
Rock Springs—North Side State Bk. of Rock Springs

Oct. 22

1932

Int.
Rate.
Amount
Authorized.
%
35.000.00 5
104.000.00 5
115.000.00 5
40.000.00 5
14,000.00 5
75.000.00 5
*64.000.00 5
50.000.00 5
57.1)00.00 5
30.000 00 5
25.000.00 5
20.000.00 5
50.000.00 5
18.000.00 534
5.000.00 5
18.000.00 5
5.000.00 5
115.000.00 5
75.000.00 55j
*50.000.1)0
28.61)0.00 5
30.000.00 5%
40.000.00 5%
20.000.00 534

g

151,913.00 5%
17.000.00 54

BUILDING AND LOAN ASSOCIATIONS.
ARKANSAS.
Int.
Amount
Rate.
City and Name—
Authorized.
%
Little Rock—Equitable Bldg.& Loan Assn Perpetual_
58.765.00 54
Little Rock—The People's Bldg. & Loan Assn
39.877.00 5%
Little Rock—Pulaski Building & Loan Assn
49,541.75 535.
Little Rock—Young Men's Bldg. Assn., Perpetual. of
Little Rock, Arkansas
6.638.00 534
Warren—Warren Building & Loan Assn
7,364.70 534
Wynne—Wynne Bldg.& Loan Assn
8,000.00 54
CALIFORNIA.
Alhambra—Alhambra Bldg. & Loan Assn
65,000.00 53/
Long Beach—Commonwealth Bldg. & Loan Assn_ _ _ _
87.221.95 5
Oakland —Prudential Guarantee Bldg. & Loan Assn_
85.01)0.01) 5
Pasadena—California Security-Loan Corp
90.000.00 6
Pasadena—Crown Building-Loan Assn
*57,50(1.00 5
CONNECTICUT.
Chester—The Chester Bldg. & Loan Assn
13.273.10 54
Meriden—The Fourth Meriden Bldg. & Loan Assn.._
73.050.00 54
ILLINOIS,
Calumet City—Southeastern Bldg.& Loan Assn
20,000.00 534
Carbondale—The Carbondale Bldg., Loan & Homestead Association
115.000.00 5
Chicago—Jungman Building & Loan Association
14.703.61 5
Chicago—Lublin Savings Building & Loan Assn
*13.000.00 5
Chicago—Roseland Standard Building & Loan Assn
90,000.00 5
Chicago—The Swedish Home Building Association
42.01)0.00 5
Chicago—Trigala Building & Loan Association
*20.000.00 5
Chicago—Vytauto Building & Loan Association..
35.000.00 5
Cicero—West Town Building & Loan Association_
30.000.00 5
Danville—The Danville Benefit & Building Assn_
600.1)00.00 5
Danville—Fidelity Investment & Building Assn
100.000.00 5
Homewood—Homewood Building & Loan Association
27.000.00 5
La Salle—Equitable Loan & Bldg. Assn. of La Salle,
Illinois
20.000 00
Lincoln—Logan County Building & Loan Association..
31.500.00
Mount Morris—Mount Morris Bldg. & Loan Assn..,,
18.266.00 5
St. Joseph—The St. Joseph Bldg. Loan & Investment
Association
6,000.00 54
INDIANA.
Indianapolis—Seltic Saving & Loan Association. No.3
Indianapolis—Fletcher Ave. Says. & Lean Assn_
3
450.000.0080,000.00
Michigan City—Home Building & Loan Association
of Michigan City, Indiana
30.000.00
Oakland City—Home Economy Building dr Loan Assn
5.000.00
Spencer—Owen County Savings & Loan Association_
8.000.00 5
IOWA.
Council Bluffs—Home Savings & Loan Association of
Council Bluffs_
68.847.87 5
Des Moines—The State Bldg. Loan & Savings Assn.._
65.000.00 5
Fort Dodge—Fort Dodge Bldg. & Loan Association
10.600,00 5
Mason City—Mason City Bldg. & Loan Association_
12,000.00 5
KENTUCKY.
Louisville—Portland Building & Loan Association
400,000.00 534
Mayfield—The Young Men's Building & Loan Assn,
of Mayfield, Ky
31.858.65 54
Middlesboro—Middlesboro Says. & Bldg. Association
020,000.00 54
LOUISIANA.
Minden—The Minden Building & Loan Association
24,871.00 534
MARYLAND.
Baltimore—Uncle Sam Loan & Savings Co. of Baltimore City
135.000.00 54
MONTANA.
Missoula—Missoula Building & Loan Association____
37,000.00 534
NEW JERSEY.
Atlantic City—Atlantic City Bldg. & Loan Assn. of
Atlantic City, N. J
55,000.00 534
Atlantic City—Atlantic City Bldg. & Loan Assn. of
Atlantic city, N..1
92.000.00
City—Islanders Building & Loan Association
Atlantic
100,000.00
Atlantic City—Resort Building & Loan Association
15,000.00 5
Atlantic City—Security Building & Loan Association
of Atlantic City
100,000.00 534
Bloomfield—Young Men s Building & Loan Association of Bloomfield, N. J
55,000.00
Bogota—Investing Building & Loan Association
29,233.33
Camden County—The Oaklyn Building & Loan
Association of Oaklyn
12,500.00 536
Elizabeth—Ehnora & West End Building & Loan
Association of Elizabeth, N.J
*75.000.013
High Bridge—High Bridge Bldg. & Loan Assn
39.022.00 gq
Highlands—The Highlands Bldg.& Loan Association_
34,545.00 5
Jersey City—The Borrowers Bldg.& Loan Association
of Jersey City,N. J
77.884.20 534
Jersey City—Own Your Own Home Bldg. & Loan
Association of Jersey City, N. J
39.628.00
Lakewood—The Lakewood Bldg.& Loan Association_
50.000.00 g5 1
3
Newark—Bigelow Building & Loan Association of
Newark, N J
369.026.32, 54
Newark—The Capital Building & Loan Association
of Newark. N.J
29,194.00 534
Newark—The Casino Building & Loan Association
of Newark, N.J
80,000.00 534
Newark—The Ideal Building & Loan Association of
the City of Newark, N. J
24,727.00 534
Newark—The Lincoln Building & Loan Association of
Newark, N.J_
*60,000.00 534
Home Building & Loan Association
Newark—Polish
of Newark. N.J
84,225.00
Newark—Service Building & Loan Association
*30,000.00
Newark—The Sixteenth Ward Building & Loan
Association of Newark, N.J
80,000.00 534
Newark—The West End Building & Loan Association
of Newark, N.J
2,843,331.29 534

g$

g$

Volume 135

Financial Chronicle

int.
Amount
Rate.
City and Name—
Authorized.
Ocean City—Ocean City Building & Loan Association
90,000.00
Palmyra—Palmyra Building & Loan Association......95.800.00 554
534
Passaic—The Fourth Ward Building & than Associaof Passaic. N. J
73.383.70 534
Paterson—American Building & Loan Association—
*100.000.00 535
Princeton—Princeton Building & Loan Association of
Princeton. N. J
100,000.00 5
Ridgewood—Glen Rock Building & Loan Association_
120.000.00 5
Roselle—The Roselle Building & Loan Association_
90.000.00 5
Roselle Park—Twin Borough Bldg. & Loan Assn_ _
29,317.00 5
South Plainfield—South Plainfield Bldg.& Loan Assn.
7.327.011 5
South River—South River Building _& Loan Man. of
South River, Middlesex County. N. J
134.970.00
Union Beach—Union Beach Bldg.& Loan Association
9,494.00 5
5
Westfield—The Mutual Building & Loan Association
of Westfield. N..1
*135.000.00 534
West Wildwood—West Wildwood Bldg.& Loan Assn_
12,000.00 534
NEW YORK.
Brooklyn—The Flatbush Co-operative Savings &
Loan Association
59.305.36 534
Olean—Olean Building. Loan & Savings Association_
*20.000.00 534
Tottenville—Richmond County Building & Mutual
Loan Association
441,924.00 534
NORTH CAROLINA.
Hamlet—Hamlet Building & Loan Association
9,940.00 5
Henderson—Henderson Building & Loan Association_
7.500.00 5
Henderson—Home Building & Loan Association
24,869.00 5
Smithfield—The Smithfield Building & Loan Assn
7,868.75 53.4
Southport---Southport Building & Loan Association
4.000.00 534
OHIO.
Akron—The First Savings & Loan Co
*10,000.00 534
Barnesville—The Home Savings & Loan Co
30,000.00 534
Canton—The Citizens Building & Loan Co
200.000.00
Cincinnati—The Victoria Savings & Loan Association
40,000.00 5
5
Cleveland—The Progress Bldg.. Savings & Loan Co_
40.000.00 535
Hamilton—The Hamilton Homestead & Loan Co_ _
40.000.00 534
Hamilton—The West Side Bldg. & Loan Association..
100.000.00 5
Mount Gilead—The Mount Gilead Says. & Loan Co_
•1I.500.00 5
North Bend—The Miami Township Bldg.& Loan Co_
23.678.50 53.4
Portsmouth—The Royal Savings & Loan Co
40.000.00 53.
Roseville—The Home Building Co
35,000.00 534
St. Bernard—The Thrifty Building & Loan Co
2.500.00 534
St. Mary's—The Union Building & Loan Co
20.000.00 534
Woodsfield—The Woodsfield Building & Loan Co
*22,500.00 534
TEXAS.
Eastland—Eastland Building & Loan Association_
13.500.00 534
Greenville—Greenville Building & Loan Association_
125.000.00
Waco—Pioneer Building & Loan Association
50.000.00 5
5
WEST VIRGINIA.
Chester—Hancock County Bldg. & Loan Association_
42.518.00 534
WISCONSIN.
Ashland—Ashland County Build.-Loan & Inv. Assoc.
30.000.00 534
Cudahy—Cudahy Savings & Loan Association
26,000.00 534
Milwaukee—Acme Building & Loan Association
39,530.00 534
Milwaukee—Bay View Building & Loan Association_
50.000.00 534
Milwaukee—Biltmore Building & Loan Association
24.849.20 534
Milwaulcee—The First Bohemian National Loan &
Buliding Association
320.000.00 534
Milwaukee--Guaranty Building & Loan Association..
40.000.00 534
Milwaukee—Hopkins Street Building & Loan Assoc_
29.663.90 534
Milwaukee—Kinnickinnic Mutual Loan & Bldg. Asso.
*60.000.00 534
Milwaukee—National Savings & Loan Association_
400.000.00 5
Milwaukee—North Shore Building & Loan Assoc
148.030.98 5
Milwaukee—Upper Third Street Savings & Loan Asso.
*250.000.00 5
Milwaukee—Wisconsin Savings Loan & Bldg. Assoc_
172.788.00 51
4
Nekoosa—Nekoosa-Port Edwards Bldg. & Loan Assoc
50.000.00 534
Racine--Beile City Building & Loan Association_
*10.000.00 534
Wauwatosa—Blue Mount Bldg. & Loan Association_
39,615.50
Wauwatosa—Wauwatosa Bldg. & Loan Association_
216.621.21 5
INSURANCE COMPANIES.
Birmingham, Ala.—Lincoln Reserve Insurance
Co__
*66.200.00
Denver. Colo.—Pacific States Life Insurance Co_ ___
*50,000.00
Chicago, 111.—Supreme Liberty Life Insurance Co.__
60.000 00
Cedar Rapidsjowa—Cedar Rapids Life Lmur.
82.500 00
New Orleans, La.—Union Indemnity Co
400.000.00
Detroit, Mich.—Standard Accident Insurance Co._
1.000.000 00
Lincoln. Neb.—Bankers Life Insurance Co. of Neb _
Cincinnati, Ohio—The Columbia Life Insurance Co_ *1.000.000 00
350.000.00
Philadelphia. Penn.—Philadelphia Life Insurance Co.
500,000.00
Reading, Penn.—American Casualty Co
200.000.00
MORTGAGE LOAN COMPANIES.
Stamford. Conn.—The Title Insurance & Mtge. Co_
125,000.00
Aurora, 111.—Merchants National Investment Co___
35.000,00
Shreveport. La.—Abraham Lincoln Home Founding
Co., Inc
10,000.00
Baltimore, Md.—The Calvert Mortgage Co
200,000.00
Baltimore. Md.—The Sun Mortgage Co
150,000.00
Boston. Mass.—Lawyers Mtge.Inv. Corp. of Boston.
99,720.00
Atlantic City, N. J.—Chelsea Title & Guaranty Co
42,000.00
Clarksville, Tenn.—Northern Bank Trust Co
40,000.00
Aransas Pass, Tex.—Guaranty Bond & Mortgage Co_
50.000.00
Houston.Tex.—The Carter Investment Co
*275.000.00
Ogden, Utah—Investors,Finance Co
*1,075.000.00

534
5
5
5
5
5

sg
5

534
534
534
534
5
5
5
534
534
534
534

FEDERAL LAND BANK.
Houston, Tex.—Federal Land Bank of Houston*3,000.000.00
534
JOINT STOCK LAND BANK.
Atlanta, Ga.—The Atlanta Joint Stock Land Bank__
55.000.00 5.51
AGRICULTURAL CREDIT CORPORATIONS.
COLORADO.
Rocky Ford—Arkansas Valley Agricul. Credit Corp_
28,701.84
Rocky Ford—Arkansas Valley Agricul. Credit Corp_
14,367.68
• IDAHO.
payette--Idaho Fruit Finance Co
8.332.50
payette--Idaho Fruit Finance Co
6.330.00
OREGON.
--Hood River Agricultural Credit Corp
Hood River
5.510.00
WASHINGTON.
Wenatchee—Columbia Agricultural Credit Corp_
36,737.21
Wenatchee--Columbta Agricultural Credit Corp_ __
37.170.65
wenatebee—Columbia Agricultural Credit Corp_ _
36.462.38
Vi'enatchee--Columbia Agricultural Credit Corp_ _ _ _
41.558.08
--Columbia Agricultural Credit Corp_ _
Wenatchee
50.000.00
wiatchee--Wenatchee Fruit Credit Corp_ _
36.640.61
Wenatchee—Wenatchee Fruit Credit Corp
14.575.25
--Wenatchee Fruit Credit Corp
Wenatchee
16.811 00
Wenatchee--Wenatchee Fruit Credit Corp
8,662.20
Wenatchee--Wenatchee Fruit Credit Corp
19,272.60
Yakima—Yakima Credit Corp
53.102.23
Yakima—Yakima Credit Corp
26.203.00
Yal,inia—Yakirna Credit Corp
12,299.47
l'akinia—Yakima Credit Corp
79,529.58
Yakima—American Agricultural Credit Corp
11,769.87
yakima—American Agricultural Credit Corp
9,850.00
Yakima—American Agricultural Credit Corp
11,910.38
Yakima—American Agricultural Credit Corp
17.226.36
Agricultural Credit Corp
Yakima—American
10,998.73




534
5;4

5.34
5
5
5
5
5
5
5
534
5
5
5
534

sg
5)4
53.5

9771

LIVE STOCK CREDIT CORPORATIONS.
COLORADO.
let.
Amount
Rate.
City and Name—
Authorized.
%
Monte Vista—The San Luis Valley Agricultural &
Livestock Credit Corp
6,200.00 534
Montrose—Montrose Agri. & Livestock Loan Co
*177,500.00 534
IDAHO.
Boise—Loan Co. of Idaho
69.100.00
Boise—Loan Co. of Idaho
62.200.00 531
Boise—Loan Co. of Idaho
230.000.00 5
Boise—Loan Co. of Idaho
10,700.00 5
Pocatello—Stockgrowers Loan Co
29,000.00 5
Pocatello—Stockgrowers Loan Co
13,550.00 5
MONTANA.
Deer Lodge—Stockgrowers Finance Corp
106.700.00
Dillon—Livestock Industries, Inc
133,900.00 5
5
Dillon—Livestock Industries, Inc
98,400.00 5
Dillon—Livestock Industries, Inc
67,800.00 5
Havre—Northern Livestock Loan Co
47.600.00 5
Havre—Northern Livestock Loan Co_
25,200.00 5
NEW MEXICO.
Albuquerque—New Mexico Credit Corp...........
61,700.00
Albuquerque—New Mexico Credit Corp
64,301.51
OREGON.
Baker—The Eastern Oregon Credit Co
130.448.00 534
TEXAS.
Mertzon—West Texas Wool and Mohair Association
*175.000.00 534
UTAH.
Ogden—Western Investment Co
36.672.77 5
Salt Lake City—Bankers Livestock Loan Co
66.800.70 5
Salt Lake City—Bankers Livestock Loan Co
96.900 00 5
Salt Lake City—Bankers Livestock Loan Co
76.400.00 5
Salt Lake City—Bankers Livestock Loan Co
92,850.00 5
Salt Lake City—Bankers Livestock Loan Co
142.550.00 5
Salt Lake City—Bankers Livestock Loan Co
152,000.00 5
Salt Lake City—Bankers Livestock Loan Co
58.250.00 5
WYOMING.
Cheyenne—Wyoming Discount Corp
65,400.00
Cheyenne—Wyoming Discount Corp
51.150.00
Cheyenne—Wyoming Discount Corp
60.000.00 5
Cheyenne—Wyoming Discount Corp
23.800.00 50
Cheyenne—Wyoming Discount Corp
80.000.00 5
Cheyenne—Wyoming Discount Corp
81.700.00 5
Cheyenne—Wyoming Discount Corp
54,050.00 5

Ril

gll

RAILROADS.
Ashley Drew & Northern Ry. Co
Boston & Maine RR
Central of Georgia Ry. Co
Chicago & Eastern Illinois Ry. Co
Chicago Great Western RR, Co
Florida East Coast Ry. (Receivers)
Mobile & Ohio RR. Co.(Ernest E. Norris, Rec. of)_
New York Chicago & St. Louis RR. Co
St. Louis Southwestern Ry. Co
Tennessee Central Ry. Co
Wabash Ry. Co. (Walter Franklin and Frank
Nicodemus as receivers)
Wichita Falls & Southern RR. Co

400.000.00
1,200.000.00
827,484.00
753.500.00
1.289.000.00
50.850.00
1.0
-0.599.00
1.400.000.00
684.450.00
147,700.00

6
6
6
6
6
6
6
6
6
6

*4,575.000.00 6
400.000.00 6

SUMMARY OF TABLE I.
Banks and trust companies (including receivers)
Building and loan associations
Insurance companies
Mortgage loan companies
Federal Land banks
Joint Stock Land banks
Agricultural Credit corporations
Live Stock Credit corporations
Railroads (including receivers)
Total

585.057.605.43
12.294.188.87
3,708,700.00
2,101.720.00
3,000.000.00
55.000.00
594,021.62
2,667.822.98
12.798.583.00
2122,277,641.90

TABLE 2.
Statement of loans authorized from July 21 to July 31 1932. inclusive,
withdrawn or cancelled in full from Aug. 1 to Sept. 21 1932, inclusive, no
part of the proceeds being disbursed.
BANKS AND TRUST COMPANIES.
Amt. Withdrawn
City and Borrower.
or Canceled.
San Francisco, Calif.—Bank of America National Trust &
Savings Association
53,800.000 00
Monte Vista, Colo.—The Wallace State Bank
60.0043.00
Washington, D. C.—Franklin National flank
120.000.00
Tarpon Springs. Fla.—The First National Bank of Commerce of Tarpon Springs
15.000.00
Chicago, Ill.—Mid-City Trust and Savings Bank
320.000.00
Gary, Ind.—The First National Bank of Gary (receiver)
235.000.00
Appleton City, Mo.—Citizens Bank of Appleton City_
30.000.00
Seymour, Mo.—Bank of Seymour
7.000.00
Ilion, N. Y.—The Manufacturers National Bank of Ilion_
50.000.00
Portland, Ore.—Montavilla Savings Bank
49.400.00
North Zulch, Tex.—Guarantee Bond State Bank
15.000.00
Madison, Wis.—Security State Bank
100.000.00
Milwaukee, Whs.—North Avenue State Bank
475.000.00
Neosho, Wis.—Neosho State Bank
16.000.00
Rewey—Rewey State Bank
20.000.00
Wauwatosa—First National Bank of Wauwatosa
240.000.00
Total

55.552.400.00
TABLE S.
Statement of Loans Aurhtorized from July 21
Which were withdrawn or canceled in part from to July 31 1932. inclusive,
Aug. 1, to Sept. 21 1932.
inclusive.
BANKS AND TRUST COMPANIES.
ARKANSAS.
Amt. Withdrawn
City and Borrower.
or Canceled.
Judsonia—Bank of Judsonia
'875.00
CALIFORNIA.
Sacramento—California National Bank of Sacramento_
__.
27.361.02
Willows—Bank of Willows
292.30
CONNECTICUT.
Bridgeport—The Commercial Bank & Trust Co
619.87
Boise—The Boise City National Bank of Boise City
Moscow—The Moscow State Bank
ILLINOIS.
Chester—Buena Vista State Bank
Cicero—Western State Bank of (Metro
Evanston—City National Hank & Trust Co. of
Evanston_
Oak Park—Avenue State Bank
INDIANA.
Ccdumbla City—The Farmers Loan & Trust Co
IOWA.
Garner—The Farmers National Bank of Garner
Goldfield—Goldfield State Bank & Trust Co
West Branch—West Branch State Bank

2.881.75
50.00
1.926.83
1.000.00
18.897.62
30,000.00
2.675.00
150.00
200.00
85.00

KENTUCKY.
City and Borrower.
Williamstown-Grant County Deposit Bank
LOUISIANA.
Baton Rouge-Citizens Bank & Trust Co
-Louisiana National Bank
Baton Rouge
Donaldsonville-Ascension Bank & Trust Co
Minden-Bank of Minden & Trust Co
MARYLAND.
-The First National Bank of Hancock
Hancock

NORTH CAROLINA.
Amt. Withdrawn
or Canceled.
20.00

MICHIGAN.
Allegan-First State Bank
Holland-The First State Bank
Jackson-Union and Peoples National Bank of Jackson
Ontonagon-First National Bank of Ontonagon
Ortonville-State Bank of Ortonville
MINNESOTA.
Lismore-State Bank of Lismore
MISSISSIPPI.
-Duck Hill Bank
Duck Hill
-The Bank of Lambert
Lambert
NEBRASKA.
-Hooper State Bank
Hooper
Taylor-Bank of Taylor
NEVADA.
Elko-Henderson Banking Co
National Bank
Winnemucca-First
NEW JERSEY.
Dunellen-Peoples Trust Co
Irvington-Chancellor Trust Co
NEW MEXICO.
Artesia-The First National Bank of Artesia
NEW YORK.
Bellerose-The First National Bank of Bellerose
Mahopac-The Mahopac National Bank
Newfane-State Bank of Newfane Sodus
Sodus-The First National Bank of

918.00
725.00
727.99
375.00
500.00
500.00
340.00
9,500.00
115.00
26.71
50.30
1,744.00
200.00
300.00
3.16
20.070.82
2,175.00
6,263.96
2,744.32
344.00
2.250.00
10,000.00
94.29
769.36

OHIO.
452.80
Canfield-The Farmers National Bank of Canfield
700,000.00
Bank & Trust Co
150.00
Dayton-The Winters National Bank
-The Commercial State
50.00
Napoleon
100.00
Orrville-The Orrville National Bank
of SteubenvilleSteubenville-The Peoples National Bank
OKLAHOMA.
210.50
Tishomingo-First State Bank
OREGON.
1,370.00
Klamath Falls
Klamath Falls-American National Bank of
PENNSYLVANIA.
550.00
Blairsville-Blairsville Savings & Trust Co..
20,000.00
& Trust
Chester-Cambridge Bank Trust CoCo
150.00
Duquesne-The Duquesne
3,455.00
Pittsburgh-Allegheny Trust Co
18,154.00
rg-Farmers and Mechanics Bank
SharPsbu
SOUTH CAROLINA.
3,114.88
Columbia-The Central Union Bank of South Carolina
•
TEXAS.
150.00
-Citizens State Bank
Memphis
626.55
Muleshoe-Muleshoe State Bank
541.80
Wallis-Wallis State Bank
UTAH.
208.50
-Eureka Banking Co
Eureka
VIRGINIA.
75.00
-The Citizens Waynesboro Bank & Trust Co..
Waynesboro
WASHINGTON.
2,300.00
lone-lone State Bank
WISCONSIN.
1,575.00
-State Bank of Kiel
Kiel
525.00
Linden-Bank of Linden
11.00
164.38
Potter-Farmers State Bank of Potter-15.00
Star Prairie-Star Prairie State Bank_
Prairie
1,488.00
Sun Prairie-Bank of Sun
Tony-Bank of Tony
$902.408.71
-Banks and trust companies
Total
CREDIT CORPORATIONS.
AGRICULTURAL
WASHINGTON.
329.18
Corp
Wenatchee-Wenatchee Fruit Credit Corp
700.00
Wenatchee-Wenatchee Fruit Credit
$1.029.16
ons
-Agricultural Credit Corporati
Total
BUILDING AND LOAN ASSOCIATIONS.
ARKANSAS.
Assn., Perpetual
Dardenelle-Dardenelle Bldg. & Loan Association
Little Rock-Capital Building & Loan
CALIFORNIA.
Inglewood-Peoples Building & Loan Association
-Home Mutual Deposit-Loan Co
Ban Francisco
CONNECTICUT.
-The Federal Building & Loan Association, Inc..
Bridgeport
ILLINOIS.
Chicago-Kedzie Building & Loan Association
LOUISIANA.
Amite-Security Homestead Association Association
-Florida Parishes Homestead
Hammond
Association_ _
New Orleans-Continental Building & Loan
NEW JERSEY.
& Loan Assn_ _ _ _
Cranford-The Cranford Mutual BuildingLoan Association
Elizabeth-The Workmen's Building &
of Elizabeth
of the City
Elizabeth-Young Men's Bldg.& Loan Assn. of Elizabeth -Garfield-The American Bldg. & Loan Assn of Garfield.
of Jersey City
Jersey City-The Central Bldg.& Loan Assn.
n
& Loan
Jersey City-Columbia Building Building Associatio
& Loan Assn
-Greenville Heights
Jersey City
Bldg.& Loan Assn of Jersey City
-The Security
Jersey City
iation
Newark-Branford Building & LoanAssoc Assn
Loan
-The Sixth Ward Building &Loan Association of
Newark
Newark-The Universal Building &
the City of Newark
Association
-The Woodside Building & Loan Building & Loan
Newark
k Relief
New Brunswick-New Brunswic
Brunswick
Association of New
ion-.
Passale-Acquackanonk Building & Loan Associat
NEW YORK.
&
-The West Side Mutual Building Loan
New York City
of New York
Savings Association of the City




Oct. 22 1932

Financial Chronicle

2772

$351.60
2.778.89

City and Borrower
Dunn-Home Building & Loan Association of Dunn
Elkin-The Elkin Jonesville Building & Loan Association
Huntersville-Huntersville Mutual Building & Loan Assn
Rockingham-The Richmond Co. Bldg. az Loan Assn
NORTH DAKOTA.
-The Grand Forks Building & Loan Assn_
Grand Forks
OHIO.
Cleveland-The Aetna Savings & Loan Association

Amt. Withdrawn
or Cam elled.
1.186.50
371.50
152.00
307.00

387.00
1,818.87
316.00
148.18
594.18
1,118.00
100.20
80.33
2,084.00
4,919.45
741.00
1,860.00
2.524.00
5,404.78
235.40
2,432.96
5,703.00
442.00
5.786.83
808.20

419.93
$48,861.19

Total,Building and Loan Associations
INSURANCE COMPANIES.
ALABAMA.
-All State Life Insurance Co
Montgomery
INDIANA.
-The State Life Insurance Co
Indianapolis

$2,300.00
240.000.00

Total,Insurance companies
LIVESTOCK CREDIT CORP.
COLORADO.
Monte Vista
-The San Lula ValleyAgricultural & Livestock
Credit Corp
MORTGAGE LOAN COMPANIES.
LOUISIANA.
New Orleans--Hibernia Mortgage Co.. Inc
MARYLAND.
Baltimore-Arundel Mortgage Co

$242.300.00

$22,000.00

$2,022.66
5.642.50
$7,665.16
$1,224,264.22

Total. Mortgage Loan Cos
Grand total

TABLE 4.
Statement of amounts made available from Aug.1 to Aug.311932.inclusive,
under Section 1, Title I. of the emergency relief and construction act a
1932, upon applications of the Governors of the States mentioned,showing
names of the States, amounts made available, and rate of interest. ell
Int.
Amount
Rate
.fade
Available.
Name
8225.000.00 3
State of Alabama
6.000.000.00 3
State of Illinois
1.096.084.00 3
State of Louisiana
*1,800.000.00 3
State of Michigan
*50.000 00 3
State of North Dakota
768.000.00 3
State of Ohio
842,585.00 3
State of Ohio
150.000.00 3
State of South Dakota
3.000.000.00 3
State of Wisconsin
813,931.869.00

Total

TABLE 5.
Statement of loans authorized from Aug. 1 to Aug. 31 1932, inclusive.
under Section 201 (d). Title II, of the emergency relief and construction
act of 1932.
Int.
Rate
Amount
Authorized.
City and Name
.00
*$15.000,000 (54)
Cotton Stabilization Corporation
*35.000.000.00(534)
American Cotton Co-operative Association
850,000.000.00

Total

TABLE 6.
Reconstruction Finance Corporation statement of cash receipts andrsr"
penditures Aug. 1 1932 to Aug. 31 1932, inclusive, Corporation's accounts
with Treasurer of United States.
Cash balance at the close of July 311932,as per the books
639,398,481.31
of the Treasurer of the Corporation
Add: Deposits credited to the Corporation's account with
the Treasurer of the United States prior to the close of
July 31 1932. but not reported to the Treasurer of the
79.136.94
Corporation until after July 31 1932
$39,475,618.25
Adjusted cash balance as of close of July 31 1932
RECEIPTS.
Sale of second series notes
825,000,000.00
notes
Sale of third series
75,000,000.00
Loan repayments:
Banks and trust companies (including
receivers)
28,815.867.02
Credit unions
1,195.00
Building and loan associations
1,472,422.65
Insurance companies
280,760.47
Joint stock land banks
4,847.59
Live stock credit corporations
322,368.63
Mortgage loan companies
1,264,732.10
Agricultural credit corporations
7,613.68
Railroads(including receivers)
206,687.50
Interest and discount collected
2,235,243.95
11,546.07
Reimbursable expense collected
9,056.48
Collections on collateral to rediscounts_
11.88
Miscellaneous
Unallocated-pending advice.
3,442,655.51
138,075,008.53
$177,550,828.78

Grand total
872.96
3,335,93

1.584.50

EXPENDITURES.

Loan disbursements:
Banks and trust cos. (incl. receivers)-. $77,631,277.46
Building and loan associations
.180,063.17
Insurance companies
4,661,210.41
Joint stock land banks
128,382.45
ons
Live stock credit corporati
1,944,974.76
Mortgage loan companies
3,184,891.92
Agricultural credit corporations
534,151.82
Railroads(including receivers)
41,963,445.50
Relief disbursements
3,947,884.00
Refund of interest on account of over49.93
payments
Refund of unearned discount
2,819.71
7,947.65
Release of cash collateral to rediscounts...
Int, paid on cash collateral to rediscounts
19.67
Accrued int. on county notes received in
217.08
connection with relief disbursements_ _ _
Refund of excess repayments in prior
157,996.17
periods
37.985.08
Furniture and fixtures
162,854.84
General expenses
251,755.60
Loan agency expenses
93,624.96
Custodian expenses
15,004.42
Reimbursable expenses
Increase in petty cash accounts held by
150.00
agencies
128.00
Miscellaneous

148,908,814.40

830,843,812.38
Cash balance at close of business Aug. 31 1932
Note
-In addition to funds on deposit with the Treasurer of the United
custodian banks held in suspense funds which amounted to $1,494.States,
565.32 at the close of July 311932,and $3,630,151.87 at the close of business
Aug. 311932.

Financial Chronicle

Volume 135

TABLE 7.
Statement of Condition as of the Close of Business Aug. 31 1932.
ASSETS.
$30,643,812.38
Cash on deposit with Treasurer of United States
3,630,151.87
Funds held in suspense by custodian banks
2,100.00
Petty cash funds
107,500,000.00
Allocated to Secretary of Agriculture
3,947,884.00
authorizations—proceeds disbursed
Relief
12,983,785.00
Relief authorizations—proceeds not yet disbursed
Loans—Proceeds disbursed (less repayments):
$549,709,673.62
Banks and trust companies a
368,489.00
Creditun ons
67,177,390.87
Building and loan associations
53,481,254.97
Insurance companies
9,000,000.00
Federal Land Elanks
1,249,839.13
Joint Stock Land Banks
8,414,291.28
Live stock credit corporations
74,127,730.23
Mortgage loan companies
1,208,090.77
Agricultural credit corporations
205,799,354.76
Railroads(including receivers)
Total
Loans—Proceeds not yet disbursed:
$114,757,168.27
Banks and trust companies_a
8,285,446.87
Building and loan associations
14,650,102.63
Insurance companies
20,000.000.00
Federal Land Banks
195,808.43
Joint Stock Land Banks
1,076,505.94
Live stock credit corporations
4,055.153.14
Mortgage loan companies
131,000.67
Agricultural credit corporations
27,820.670.00
Railroads(Including receivers)
Bonafide institutions under Sec. 201-d- 50,000,000.00

970,536,114.63

Total
Accrued interest receivable
Reimbursable expenses
Furniture and fixtures

240,971,855.95
10,572,046.64
20,089.94
220,692.87

Total assets

$1,381,028,533.28

LIABILITIES AND CAPITAL.
Payable to Secretary of Agriculture
of relief authorization not yet disbursed
Proceeds
Proceeds of loans not yet disbursed
Cash receipts not allocated pending advices
Suspense
Liability for funds held as cash collateral
Unearned discount
Interest refunds payable
Interest accrued
Interest earned, less interest and other expense
Notes
"First Series" 3
$250,000,000.00
250,000,000.00
"Second Series" 3 % Notes
75,000,000.00
"Third Series" 3% Notes
Capital stock

$32,500,000.00
12,983,785.00
240,971,855.95
3,579.765.19
4,343.93
3.667.979.02
21,139.14
162.39
4,344,201.94
7,955,300.72

575,000,000.00
500,000,000.00

$1,381,028,533.28
Total liabilities and capital
a Loans to banks and trust companies Include $39,290,150.00 to aid in
reorganization or liquidation of closed banks.
Note—In addition to the loans shown on the statement of condition, the
Corporation had outstanding on Aug. 31 1932 agreements to make loans
totaling $875,000.00 upon the performance of specified conditions.
Of loans authorized to railroads, $2,170,500.00 is reimbursable from the
Railroad Credit Corporation when, as and if funds are available.

The July report of the Reconstruction Finance Corporation
was given in our issue of Aug. 27, page 1423.
Reconstruction Finance Corporation Approves $3,000,000 Work Loan to Baltimore Sc.Ohio RR.—Additional Loan of $3,000,000 to Lehigh Valley RR.—
• Tuckerton RR. to Receive Advances of $45,000—
Commission Denies Loans to Five Small Roads.
A loan of $3,000,000 to the Baltimore & Ohio RR., approved by the Inter-State Commerce Commission on Oct. 13,
the money to be used for the repair and rebuilding of locomotives and freight cars and the building of 820 steel gondola
cars, has been approved by the Reconstruction Finance
Corporation.
The Inter-State Commerce Commission on Oct. 21,
according to press dispatches approved a loan of $3,000,000
to the Lehigh Valley RR. from the Reconstruction Finance
Corporation and at the same time received an application
from the carrier for an additional accommodation of $2,000,000. The Commission previously approved a loan of
$1,500,003 to this road from the Reconstruction Finance
Corporation.
The $3,000,000 loan will be used to pay off interest and
taxes coming due Nov. 1, 1932 and 1933, and the additional funds were asked in the refunding of an $8,684,000
issue of 4% and 5% bonds of the Lehigh Valley Coal Co.,
due Jan. 1, next, and guaranteed by the railroad. Bondholders are to receive the $2,000,000 asked from the Reconstruction Finance Corporation, $2,300,000 from the Coal
company's sinking fund and the balance in refunding bonds.
Th€ Inter-State Commerce Commission also approved a
—
loan of $45,000 to the Tuckerton RR. This brings the total
loans approved to date to $339,469,193 to 69 roads.
The Commission denied the approval to five short lines
of loans aggregating $489,475 as follows:
Alabama Central RR
Alabama & Western Florida RR
Arington & Fairfax Ry
Rowlesburg & Southern RR
Sierra Ry. Co. of California

$25,000
73,175
11,300
150.000
230,000

The loans were disapproved in each instance because
"the prospective earning power of the applicant and the
security offered as pledge for the proposed loan are not such
as to afford reasonable assurance of its ability to repay the
loan."




2773

Two small roads, the Rapid City Black Hills & Western
RR.and the Bane & Elk RR.(Pa.) have asked the approval
of the Inter-State Commerce Commission for loans of
$40,000 and $30,000, respectively, from the Reconstruction
Finance Corporation. This brings the total amount of
loans applied for to date to approximately $434,225,336.
The reports of the Commission approving.the loans follow:
Baltimore & Ohio RR.
The Baltimore & Ohio RR. on Sept. 27 1932, filed with us an application to the Reconstruction Finance Corporation, for a loan under the provision.. of Section 5 of the Reconstruction Finance Corporation Act approved
Jan. 22 1932, as amended.
On March 30 and May 16 1932, we approved loans to the applicant
aggregating $32,500,000. and on Aug.19 1932,a further loan of$31,625,000,
for purposes stated in previous reports.
The Application.
A turther loan of $3,000,000 is requested, to be repaid within the statutory period, and with interest at the rate of 5% to be cumulative and
Paid with the principal. The loan is sought for the primary Purpose of
Increasing employment and stimulating business, and in this connection
the applicant will undertake approximate expenditures of $900.000 for the
repair and rebuilding of 165 locomotives, 51.100,000 for repair of 2.500
freight cars, and $1,460,000 for building 820 new all-steel gondola cars.
Of the latter sum It Is desired to borrow $1,000.000. In this work, the
applicant estimates that about 1.500 men will be employed 30 hours a week
for a six-months' period and that the muerial and applicances to be purchased will represent a like amount of labor, in outside shops. The loan
will furnish employment during the fall and winter months to men who would
not otherwise be employed.
The application is made under the authority and with the approval of
the applicant's board of directors. The applicant states that it will make
repayment of loans for repairs of cars and locomotives as and when such
equipment is withdrawn from storage and again placed in service.
Security.
The security for the loan tendered is the applicant's note secured, In the
first Instance, by it equity in the collateral now pledged with the Finance
Corporation for loans heretofore made. and. In addition. Its equity In
securities to be pledged for the further loan, approv id by us, of $31,625,000.
as and wh‘in made by the Finance Corporation.
Railway operating revenues accrued for August of the current year
amounted to $9.807,184. a decrease of $4,995.408 from August 1931. For
were
the eight months ended Aug. 31 1932, railway operating revenues
*84.468,372, a decrease of $34,954.395 from the corresponding period of
$267.436
1931. Net income account for August 1932, showed a deficit of
and for the eight months ended Aug. 31 1932. a dellcit of $5,698,929. The
the month and a delatter amounts represent a decrease of $995,677 for
crease of $7.120,290 for the eight months. Included in the results stated
for 1932. representing emergency increase in operating revenues. are $250.months
249 estimated for the month of August, and $2,369,249 for the eight
ended Aug. 31. As ot July 311932, the applicant's total reported assets
Current reported
were $1,228.308,754. and corporate surplus $96.753,608.
assets wore $34,497,315, and current liabilities 541,026,688.
Conclusions.
Upon consideration of the application and after investigation thereof,
we conclude:
I. That we should approve a loan of not exceeding $3,000,000 to the
applicant by the Finance Corporation, for a period not to exceed three
Yeats from the dates of the advances thereon, said loan to be advanced to
the applicant in installments in reimoursement of Cash expenditures hereafter made by It for the repair and construction of equipment as herelnbefore
specified.
2. That before each advance upon the loan be made, the applicant
should deposit with the Finance Corporation, and with us. a verified statement of cash expenditures hereafter made by it in connection with said
repair and construction of equipment.
3. That no advances should be made upon the loan in excess of such
total cash expenditures reported to the Finance Corporation and to us.
4. That no advance should be made upon the loan in reimbursement
of expenditures for work performed or materials purchased prior to the
date of approval of this loan.
5. That the applicant should agree with the Finance Corporation that
all stocks and bonds pledged or to be pledged as collateral security under
the terms prescribed in our certificates and orders in respect of other loans
to the applicant shall apply equally and ratably as collateral security for
said other loans and the loan herein conditionally approved.
Tuckerton RR.
The Tickerton RR. on May 10 1932. filed with us an application to the
Reconstruction Finance Corporation for a loan under the provisions of
Section 5 of the Reconstruction Finance Corporation Act, approved Jan.22
1932 as amended.
The Application.
Phe applicant requests a loan of $45,000, for the term of three years,
for the following purposes:
To_pay principal of short-term 5% note to Fidelity-Philadelphia
65,000
Thist Co.. due May 25 1932
To pay principal of short-term 6% notes to Starr & Co., due
12.000
May 25 1932
182
To pay interest to Oct.25 1932. on above notes
To pay New Jersey State and local taxes. due Dec. 31 1931
714
"89
To pay interest accrued on unpaid taxes to Oct.30 1932
3.200
To purchase ties and timber
To pay per diem charges due Pennsylvania RR.and Central RR.
Co of New Jersey for period March 1 1931 to Sept. 30 1932,
.
1 417
Inclusive
4.000
For locomotive repairs
5.838
For working capital and material and supplies
6.380
To pay State and local taxes for year 1932, due Dec. 1 1932-$45.000
Total
All of the items mentioned, except the last, represent expenditures
required immediately or in the very near future.
The applicant represents that it is unable to obtain the necessary funds
In whole or in part from any source other than the Reconstruction Finance
Corporation.
The applicant has not become a Party to the "Marshalling and Distributing Plan, 1931" of the Railroad Credit Corporation, because It has
no funded debt and therefore is not eligible for loans from that Corporation. From $30 to $40 per month increased revenues are expected from
the emergency rates authorized by us.
The applicant Is a wholly independent railroad company, and is not
a subsidiary of, or affiliated with, any railroad company or other organization.

2774

Financial Chronicle

Transportation Properties and Operations.
fhe applicant owns and operates 29 miles of line and 4 miles of yard
tracks and sidings. Its railroad extends from Whitings, N. J., to Tuckerton, N. J. Traffic connections are had with the Pennsylvania RR and the
Central RR. of New Jersey. Fishing, cold storage, oyster and clam,
salt hay, cranberry and moss and peat industries are served. Coal, lumber, petroleum products and roadbuilding materials are important items
of traffic. Most of the business is done in the summer months.
During the 11-yes, Period from 1921 to 1931 inclusive, the applicant
earned its fixed charges each year except 1931. The total net income
from 1921 to 1930 inclusive, was $134,438. Gross revenues averaged
$126,551 from 1921 to 1931 inclusive, net income $10.445, and interest
was earned 3.62 times. The operating ratio tor that period was 77. In
1931 gross revenues were $58.232, or $13,233 less than operating expenses
and there was a deficit of $19,539 in net income account. Operations of
the Period January to August inclusive, 1932, have resulted in a deficit
of $9,932 in net income account and a deficit of $777 has been estimated
by the applicant for the remaining months of the year, after Interest on
the loan applied for. The estimate takes into account increased freight
rates above mentioned, wage reductions effective early in 1931. and other
economies. Gross revenues for the eight months were $26.363. Dividends totalling $71.260 were paid between 1921 and 1926, and none since.
The applicant operates in a restricted locality and handles a large p-oportion of summer-resort business, which, while it has declined sharply, may
recover with equal rapidity. It expects to benefit from the construction
of highways, both by hauling materials for the construction and by reason
of the fact that when punt a large number of people will no attracted to
the locality. A survey of traffic prospects conducted by the applicant
shows that the recent loss of traffic is a remit of the general depression in
business and improvement may be expected with improved general conditions.
Funded debt was reduced from $100,000 to $48,000 in 1928. to $39,500
In 1929, and was eliminated in 1930, when the issue of $100,000 of first
mortgage bonds matured. Short-term loans of $10,000 were contracted
In 1930 in connection with this financing, and increased to $15, 0 in 1931
00
as a result of the deficit in earnings of the latter year. From Dec. 31 1921.
to Dec. 31 1931. corporate surplus increased from $56.779 to $82.755. and
recorded investment Inroad and equipment from $663,341 to $683,911. A
summary of balance sheet changes between Dec. 31 1921 and Dec. 31
1931 follows:
Increase in surplus
$25.978
Additions and betterments to property
20,570
$5.408
54,930
Decrease in current assets
19.770
Increase In current liabilities
Increase in deferred and unadjusted liabilities (depreciation and
18.430
taxes)
1.464
Decrease in deferred and unadjusted assets
$100.000
$100.000
Funded debt discharged
Excess earnings were received by the applicant in 1921 and 1925 in the
aggregate amount of $3,899, of which one-half, or $1,950. has been paid to
Us. No protest of our tentative finding was recorded, and it was made
final.
Necessities of the Applicant.
The foregoing stated Purposes for which the loan applied for is sought
Indicate the current financial necessities of the applicant. Cash on hand
Aug. 31 1932 was $1.869 and current assets and current liabilities were
$8.331 and $25,304 respectively.
The applicant's financial necessities originated in 1930, when its first
mortgage bonds matured and were not refunded, and increased by the
deficiency in earnings in 1931. and during the current year. In order to
pay the outstanding bonds at that thne, the applicant drew upon its current working cash with the understanding that its banking connections
would loan it up to $20,000 until sufficient working cash would be accumulated from earnings. The applicant states that when these bonds matured
they could have been readily extended. Bank loans were granted In the
amount of $15,000, but the loans were not all renewed as they came due.
Of its present loans. $5,000 is from the applicant's banking connections
and the remaining $12,000 from a stockholder, as a temporary accommodation, which cannot be extended.
Penalties at the rate of 1% a month are running on the overdue taxes.
The tier; and timber, for the purchase of which funds are sought, should,
the applicant states, be installed during the fall and winter. The locomotive repairs are required immediately, and two of the locomotives will require a thorough overhauling at a cost of $12,000.
Security.
As security for the loan of $45,000 applied for, the applicant tenders
Its bond and warrant in the sum of $100.000, and a first mortgage on the
entire railroad, including rolling stock and franchises.
As of June 30 1916, we found the value for rate-making purposes of
the property of the applicant owned and used for common-carrier Purposes
to be $503,946, including $18.946 for working capital. Suasequent net
additions and betterments to the property have been reported to us by the
applicant in the amount of $41,290. The applicant's nalance sheet as of
Aug. 31 1932, showed $552,242 capital stock, $73,762 corporate surplus,
and $30,452 accrued depreciation.
Conclusions.
Upon consideration of the application and after Investigation thereof,
we conclude:
1. That we should approve a loan of not to exceed $45,000 to the applicant oY the Finance Corporation for a term not exceeding three years and
for the Purposes hereinabove set forth.
2. That the Finance Corporation will be adequately secured by the Pledge
of an equal principal amount of bonds to oe issued under a closed first
mortgage upon its property.

Commissioner Mahaffie dissents. Commissioner Brainerd .did not participate in the disposition of this case.
Reports Formation of National Committee to Meet
Leasing Situation As to Voluntary Bankruptcies
of Chain Stores.
Moving to meet the serious situation in business properties
caused by voluntary bankruptcies of chain stores, the National Association of Real Estate Boards announces an
important extension of its activity in the field of commercia
leasing. The Association on Oct. 13 said:
Tht action is being taken upon a recommendation of its Brokers Division,
which most in Chicago, Oct. 7, to consider in detail what should be done




Oct. 22 1932

In the present emergency, characterized by men most familiar with the
National leasing situation to be one of the gravest which has ever confronted
the owner of business properties.
The Association announces that It is setting up a special committee to
be known as its Committee on Commercial Leasing Policies. In the
work of this Committee the National Association of Building Owners and
Managers will co-operate.
The Committee will be made up of men expertly familiar with business
property values and especially with chain store leasing. It will focus facts
for the information of the individual owner of business property, and
act to stop, if possible, the threatened tide of voluntary bankruptcy liquidations of National retail organizations through which existing leases may be
disavowed.
Frank S. Slosson. Chicago. will be Chairman of the new Committee.
The remainder of the personnel will be announced shortly. Mr. Slosson
is a former Chairman of the Property Management Division of the National
Association of Real Estate Boards and is active in the work of its Brokers
Division. He is also Vice-President of the National Association of Building Owners and Managers and Chairman of a special committe of that
organization now making a detailed study of percentage lease rates which
various types of retail business can afford to pay.
Owners Now Being Pressed for Decisions Should Act Carefully and Cautiously,
Chairman Advises.
It is suggested by Mr. Slosson. as Chairman of the Committee, that
owners who are being pressed for decisions act carefully and cautiously.
The Committee will seek to bring to their use essential facts as soon as
possible.
The first work of the new body will be an investigation of the present
situation In regard to commercial leasing, and particularly in regard to
chain store leasing. It will follow current important developments as
they take place, and disseminate information on these developments to
real estate brokers, property managers and owners.
Chain Stores Will Be Asked to Co-operate.
Chain-store organizations will be asked to give the Committee their
full and frank co-operation.
Facts to be brought together will include the actual present gross and
net earning situation of National retail business organizations and their
general situation, on the one hand, and the actual situation of the building
owner on the other hand, particularly as to the fixed charges he must meet.
These include taxes and interest charges.
Possibility of Nationwide Emergency Organization of Real Estate Brokers and
Real Estate Owners.
At an early meeting of the new Committee there will come up for discussion the possibility that there may be formed a Nationwide emergency
organization of real estate brokers and real estate owners who are especially
Interested in the question involved. Such an emergency organization would
draw together the full force of real estate Interests to act for stabilization
of income values of business properties.
The new Committee will consider the possibility of acting as an advisory
body to individual owners and brokers who want to take advantage of the
expedience represented by the Committee's personnel, when and if their
advice is wanted upon specific individual business situations.
The Brokers' Division, in calling the meeting, of Oct. 7, invited also all
members of the Property Management Division of the Association to take
part, opened the meeting to all realtors interested, and invited members
of the National Association of Building Owners and Managers to attend.
The meeting discussed the whole problem which arises where a business
tenant, as for example a chain-store tenant, is threatened with bankrputcy
as the result of present business conditions or claims to be threatened with
bankruptcy. It attempted to consider all major factors Involved, and
brought out the importance of weighing all such major factors in any individual lease adjustment made because of threatened bankruptcy of the
business tenant.
Newton C. Farr, Chairman of the Brokers' Division of the National
Association, presided.
Lawrence T. Stevenson. Pittsburgh, President of the Association. In
opening the meeting, pointed out that rental values must be stabilized if
we are to stabilize sales values. The problem, he said, is a National problem, and must be dealt with in a National way. It was the sense of those
present at the meeting that as far as their own interests were concerned
this is what they were agreed upon as advisable procedure:
1. That in present cases where chain-store bankruptcy proceedings are
going on with a new corporation being formed to take over old leases,
that no lease be drawn for a longer period than one year.
2. That the minimum guarantee,in the case of percentage leases, in such
cases, if adjusted at the present time, be not less than 75% of the existing
rate.

Municipal "Holidays" Declared Illegal for Banks in
Minnesota — Assistant Attorney-General Rules
They May Not Be Used for Moratorium on Banking Transactions.
Municipal "holidays" decreed by Mayors of Minnesota
towns for the purpose of celebrating the George Washington
Bicentennial, or for other purposes, are not legal holidays,
and may not be taken advantage of by banks for the purpose of gaining a moratorium on banking transactions,
according to an opinion by W. H. Gurnee, Assistant Attorney-General, given at the request of the Commissioner of
Banks, J. N.Peyton. This is learned from St. Paul, Minn.,
advices Oct. 17 to the "United States Daily," from which
we also take the following:
In order to give a respite or breathing spell to hard-pressed banks, mayors
In some of the smaller towns in neighboring States have instituted the
practice of declaring holidays for periods of a week to two weeks, It Was
explained at the office of the Commissioner of Banks. This practice has
recently spread to Minnesota, where, for instance, the Mayor of the Town
of Kenyon proclaimed an eight-day holiday for observance of the George
Washington ill-centennial,
These are not legal holidays, Mr. Gurnee has ruled, and the Commissioner
of Banks is authorized, in his discretion, to take possession of any State
bank which fails to keep open on a business day.
Mr. Gurnee's opinion follows in full test:
Dear Sir: We have your favor of Oct. 13 1932, in which you submit the
following questions:
"Question 1 —If the Mayor of a town declares a holiday and the bank
takes advantage of that holiday to negotiate certain concessions with its
depositors and during that period the bank refuses to cash checks and to
accept deposits, is that a legal proceeding, and should this Department

Volume 13.5

Financial Chronicle

take any action with regard to the bank? Does the declaration of a holiday
by the Mayor make that holiday a lawful holiday, to be observed by the
bank, and could any depositor who was refused withdrawal of his funds
from the bank take legal action against the bank with the hope of success?
is there any obligation on the part of this Department to take any action
with regard to a bank that arbitrarily takes advantage of a holiday declared
by the Mayor?"
Answer.—The only legal holidays in Minnesota are: New Years Day
!Jan. 1), L'ncoln's Birthday (Feb. 12), Washington's Birthday (Feb. 22).
Memorial Day (May 30). Independence Day (July 4), Labor Day (first
Monday in September), Election Day (first Tuesday after the first Monday
In November of the even-numbered years); Christmas Day (Dec. 25), the
Friday next preceding Easter Sunday (commonly known as Good Friday)
and Armistice Day (Nov. 11). No mayor or other municipal officer has
power to declare any other days legal holidays so as to authorize a bank
to close its doors and refuse to transact business.
A bank on which a check is drawn is under obligation to pay the same
promptly upon presentation on a business day during the regular banking
hours, if the maker of the check has sufficient credits subject to such check.
Any person damaged by the failure to pay such a check has a cause of action
against the bank for all such damages as result proximately from such
wrongful act.
May Close Such Banks.
. Under your supervisory powers as Commissioner of Banks you have
authority to see that such a practice is not indulged in, and at your discretion you are authorized to take possession of any State bank which falls
to keep open on a business day.
"Question 2 —Assuming that a bank worked out a plan whereby certain
of its depositors agreed to allow the bank to reduce the deposits of those
individual depositors a certain percentage—for the purpose of argument.
say 40%—with which the bank would agree to remove an equal amount
of assets trusteeing these assets for the benefit of those depositors who
would allow the 40% cut in their deposits, and assuming that the entire
transaction took place between the bank and the individual depositors,
Is there any duty imposed by law on this Department in connection with
such a proceeding?"
Answer: If, in order to avoid liquidation, the depositors of a bank agree
with the hank on a plan such as outlined, we see no legal objection thereto,
provided all parties act in good faith and the bank makes a fair disclosure
to the depositors of its condition. In other words, such a contract is valid
if there is no misrepresentation or other fraud, and if the same is supported
by a valid consideration. It would be natural to expect that stockholders,
as well as depositors, would share in taking such a loss through the medium
of a voluntary assessment. You have no concern with a contract which
meets these requirements.
"Question 3.—Assurning that a bank has proceeded as outlined in Question No. 2. and the stockholder, through the contribution made by the
depositor, has avoided an assessment, would it be proper for the Commissioner of Banks to order an assessment upon the stockholders and apply
the proceeds of that assessment toward reimbursing the depositors who took
the cut?"
AM/unity Lacking.
Answer: No. You have no authority to order an assessment to reimburse
depositors who accept a reduction in their respective credits. However,
if you find the agreement to be unfair or fraudulent or without consideration, you may order the bank to restore all reduced accounts to their former
status. If the bank is then in an unsafe condition, you may order an
assessment.
"Question 4.—Assuming that a bank finds it desirable to request
depositors to allow it time for liquidation. is it a legal proceeding forits
a
bank to make an agreement with its depositors, under which agreement
the depositors agree not to withdraw their deposits except under certain
stated conditions, usually in the nature of percentages over a period of
years; and has this Department any obligation in connection with an agreement made directly between the bank and the depositor under these conditions?"
Asnwer: Such an agreement would be valid if supported by a sufficient
consideration (that is, the benefit to the depositors by avoiding liquidation),
and if fair to both sides. It is your duty as Commissioner, so far as possible, to see that both depositors and stockholders of banks are afforded their
full legal rights, and that no agreement will be entered into to the detriment
of either.

New York State Economic Group Urges Tax Reduction
—Declares Cuts in Government Expenses Must
Precede Business Revival.
An "immediate" legislative program has been adopted
by the State Economic Council, it was announced on Oct. 15
in an Albany, N. Y., dispatch to the New York "Times",
which said:
The program sponsored by the organization calls for a State-wide campaign to bring about economies in government and includes:
Reduction of Federal. State and local expenditures by at least 25%.
Repeal or amendmant of all State laws and regulations fixing mandatory
expenditures upon local governments.
Repeal all laws and regulations fixing wages and labor conditions, or to
so amend them that they will no longer unduly raise the cost of public
construction.
Abandon payment to veterans for disabilities not arising out of active
service.
Oppose cash payment before maturity of the Federal bonus.
Oppose further entrance of government into business in competition with
private business and any extension of government regulation of private
business.
"It is the conclusion of the council's studies," said Merwin K. Hart, its
president, "that there can be no sound revival of business within the State
until the tax burden is greatly reduced and governmental extravagance
sharply pruned"
Mr Hart stated that the council, heretofore acting in more compact
form, had been extended by the organization of business and professional
men's councils in virtually every county of the State, and the recruiting
of additional leaders in New York City financial, industrial and legal fields.
Among those enlisted in the campaign are:
George W. Wickersham, General James G. Harbor& former Senator
James W. Wadsworth Jr., James W. Gerard and others of last year's
directorate; Joseph R. Swan, William L. De Bost, Walter E. Frew, George
V. McLoughlin, William Fellowes Mcrgan, Joseph P. Day, William C.
Breed, Lawrence B. Elliman,all of New York City; Beverly Chew of Geneva
j. Melbourne Shortliff of Colgate and Wolcott J. Humphrey of Wyoming
County.

Issuance of Our Annual Number, American Bankers'
Convention Section.
We are issuing to-day our annual publication—the American
Bankers' Convention Section, which contains the proceed-




2775

ings of the Annual Convention of the American Bankers
Association, held at Los Angeles, Calif., Oct. 3 to 6. One
of the speakers at the Convention was Secretary of the
Treasury Ogden L. Mills, and his speech along with all the
others delivered before the general Convention, as well as
those before the various Divisions and Sections, will be
found in full in our Bankers'Supplement. Reports presented
and resolutions adopted will likewise be found therein.
Sir

John

Aird Forecasts Adoption by Congress of
Banking System Based on that of Canada.
John Aird, President of the Canadian Bank of Com-

Sir
merce, following his return from the annual convention in
Los Angeles of the American Bankers Association, expressing
himself hopeful of a steady return of normal business conditions, forecast in an interview in Toronto on Oct. 15
that the next United States Congress will make important
amendments to the United States Banking Act and mold
a banking system on the lines in force in Canadian banking
institutions. We quote from Toronto adviees to the
"Herald Tribune" of Oct. 16, from which the following is
also taken:
"The banking situation in the United States has improved a great deal,"
Sir John said. "In my opinion the retiring President, Mr. Haas of Philadelphia, made a very important statement when he strongly recommended
the Government of the United States to consider the Canadian banking act
as he felt that many things in connection with banking in Canada would be
beneficial to the United States. I felt that to be rather an important admission and indorsation of the banking system in Canada."
Sir John believed that business men had begun to feel that a modified
form of the Canadian banking system could be adopted advantageously
in each of the 12 Federal Reserve Districts of the United States. He felt
that the American banking situation had improved greatly, that hoarding
had practically stopped and that the number of important bank failures
had been retarded.
"At the beginning of the year there was a panic condition in regard to
banking over there but that has been displaced by a fear—there is a great
difference between a 'panic condition' and a fear—a fear that on account
of the unsettled conditions in other parts of the world, that something might
happen that would be reflected adversely in the banking world." Members
of the Association, he said, seemed to think that business was getting out
of the slump and that the uptrend would be gradual.
Commenting on the United States elections, Sir John believes that Californians felt that Roosevelt's repudiation of Tammany and Hoover's wavering on the prohibition question had strengthened Democratic hopes.
He looked to the Chicago world fair to stimulate business and remarked
that prior to the 1929 crash fair promoters secured $10,000.000 from responsible people, that the money was still intact and available for fair
purposes.

Deliberations at Annual Convention of Investment
Bankers Association of America to Be Directed
Toward Problems of Taxation, Railroads, Industry
and National, Municipal and Foreign Finance.
The widespread efforts that are being made by both
business and Government to debrutalize the economic forces
of the depression make the coming Investment Bankers
Association convention (to be held at White Sulphur Springs,
W. Va., Oct. 22-26) of particularly significant interest at
this time, says Robert E. Christie Jr., of Dillon, Read &
Co., who is a member of the Association's Board of Governors
and Chairman of its New York group. It is common
knowledge, Mr. Christie said, that a vast amount of unnecessary and unjustifiable loss and hardship is inflicted
on many productive and essential businesses and individuals
in periods of this kind, and the sound efforts of organized
business and of Government to prevent such needless
waste and suffering is therefore the most immediately interesting and practical thing in the process of business
recovery. For that reason, he added, the work of the
convention of the Investment Bankers Association, which
is a fact-finding institution that maintains intimate contact
with the Nation's major business and financial problems,
should have this year a more intense interest to the country,
as well as to investment bankers, than at any time since the
organization was founded in 1912. Mr. Christie says:
During the present year probably the most outstanding development in
the investment field, as well as in the economic situation generally, has
been the reconstruction activities of government. The abnormal times have
crippled the normal processes of investment and have temporarily impaired
the values of many productive enterprises that were soundly and wisely
conceived and operated. The period of adjustment has developed new
economic arrangements and forces, and in this situation and throughout
the whole movement for business recovery there is a growing realization of
the tremendous importance oforganized business effort. The proceedings of
the 21st annual convention of the Investment Bankers Association, Oct.
22-26, at White Sulphur Springs, W. Va., will concentrate on that objective
and will give an unparalleled opportunity for investment bankers to obtain
more immediate and broader information on conditions affecting their
business and general economic recovery. I refer particularly to the problems
of taxation, of the railroads and industry, of national, municipal and
foreign finance, all of which will be presented at the convention. Of
perhaps more intimate interest to the daily activities of investment bankers
will be the special session, which will be devoted to the problems of "investment management service," and the report of the Committee that will
discuss the trends of the business and the possible effects of the new economic
forces that have developed.

Financial Chronicle

2776

As a member of the Association's Board of Governors I have had
opportunity to observe the effort and purpose put into the building of the
Association's convention proceedings for this year. I have said all this
because I am convinced that when any constructive, organized, major
line of business, such as the Investment Bankers Association, undertakes
work of this kind in times like the present, it is not only a serious duty of
self-interest but it is an important civic duty for every eligible institution
within that organization to be fully informed of that work and to participate
actively and whole-heartedly therein.

An item with reference to the program appeared in our
issue of Oct. 8, page 2440.
•
More Than 200 Delegates Leave New York for Annual
Convention of Investment Bankers Association
of America to Be Held at White Sulphur Springs,
W. Va., Oct. 22-26.
The delegation from New York (approximately 200) to
the Annual Convention of the Investment Bankers' Association, held at White Sulphur Springs Oct. 22-26, left in a
special train last night (Oct. 21); it is headed by Colonel
Allan M.Pope, President of the First of Boston Corporation
and President of the Investment Bankers' Association and
Robert E. Christie Jr. of Dillon, Read & Co., Chairman
of the New York group. Reservations for the special train
were in charge of the Chairman of the Transportation Committee, Harry E. Lowery of F. S. Moseley & Co., 39 Broadway.
"Bankers and Brokers Committee" of United Hospitals
Fund—James Speyer Again Chairman.
Eighty-six bankers and brokers who are Trustees or
Directors of the 55 hospitals belonging to the United Hospital
Fund, have agreed to serve on the "Bankers and Brokers
Committee" of the Fund for this year's collection.
James Speyer is Chairman; Charles H. Sabin, Chairman
of the Guaranty Trust Co., is Associate Chairman of the
"Bankers and Brokers Committee," and Albert H. Wiggin
is Treasurer of the Fund.
The letter of appeal calls attention to the fact that "on
account of economic conditions, the necessity for free treatment in our hospitals will doubtless be greater this winter
than ever before," and urges "Wall Street" to do all it can
to help alleviate the condition of the unfortunate sick poor
in our 55 New York Hospitals without regard to creed,
color or nationality.
Lat year the "Bankers and Brokers Committee" collected
$87,227, the largest amount obtained by any Auxiliary.
As usual, the amount collected will be distributed impartially by a Committee composed of the Mayor, the
Presidents of the Chamber of Commerce and of the Merchants' Association, and Henry J. Fisher, Arthur Curtiss
James, Edwin P. Maynard, Gates W. McGarrah and
James Speyer.
The following well-known "Wall Street" men are serving
on this Committee:
Cornelius R. Agnew
Winthrop W. Aldrich
erederic W. Allen
Robert E. Allen
Nelson I. este!
George F. Baker
Stephen Baker
William M. I3ernard
Unzee Biagden
George Blumenthal
Hugo Blumenthal
Myron I. Borg Jr
George S. Brewster
Robert S. Brewster
Thatcher M.Brown
Goerge 8. Carr
S. W. Childs
Stephen C. Clark
Charles M. Connfelt
George F. Crane
Howland S. Davis
Edward C. Delafield
Moreau Delano
Harris A. Dunn
William Fahnestock
Marshall Field
Henry L. Finch
Albert Forsch
Charles Froeb

Charles R. Gay
Thornton Gerrish
Philip J. Goodhart
Fred H. Greenebaum
Charles Hayden
Clifford Hemphill
Theodore Hetzler
Leonard A. Hockstader
G. Beckman Hoppin
William S. Irish
Samuel T. Jones
William M. Kingsley
G. Herman Kinnicutt
W. Thorn Kissel
David H. Lanman
Harold M. Lehman
Adolph Levrlsohn
Lucius V. Maltby
Charles H. Marshall
D.Irving Mead
M. J. Meehan
Edwin G. Merrill
DeWitt Millhauser
Richard L. Morris
Vernon Munroe
-P. Murphy
Grayson M.
Walter W. Naumburg
Simon Newman
Carl H.Pforzheimer

Lewis E. Pierson
Hermann C. Place
George B. Post
Alonzo Potter
C. Tiffany Richardson
H. E. Robinson
George Emlen Roosevelt
Kermit Roosevelt
Ernst Rosenfeld
Arthur W. Rossiter
Louis F. Rothschild
Samuel Sachs
Walter E. Sachs
Theodore Schorske
Edward W. Sheldon
E. H. H. Simmons
Frank L. Sniffen
Andrew V. Stout
Bertram L. Taylor Jr.
Adrian Van SIndern
Elisha Walker
Frederick M. Warburg
James P. Warburg
Charles F. Wheaton
Harrison Williams
Henderson M. Wolfe
William Wodward
August Zinsser

ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
Arrangements were made Oct. 21 for the sale of a New
York Stock Exchange seat at $120,000, off $55,000 from the
previous transaction, Sept. 21.
Two memberships in the New York Cotton Exchange were
sold Oct. 17. The first was the membership of Paul Henry
Hemelryk, sold, for $12,500 to John Pflieger, the price being
a drop of $5,000 from the previous transaction on Aug. 17.
The membership of John H. C. Albrecht was sold to Homer
Orvis for $12,100.




Oct. 22 1932

John Edgar Elder, General Manager and Chief Engineer
of the New York Stock Exchange; Building Co., died suddenly
on Oct. 16 at the age of fifty-eight. Mr. Elder for the last
ten years was General Manager of the New York Stock
Exchange Building Co., which controls and operates four
buildings from 2 to 28 Broad Street, including the New York
Stock Exchange Building. He was born in Bell's Valley
,
in Rockbridge County, Va., on Oct. 30 187..
The proposed reduction in the capital of the County Trust
Co. of New York to $2,000,000 from $4,000,000 and the
number of shares to 80,000 of $25 par from 160,000 shares
was approved by stockholders at a special meeting Oct. 18.
Carlton H. Palmer, President of E. R. Squibb & Sons, was
elected a director of this company. A reference to the plans
to reduce the capital appeared in our issue of Oct. 15, page
2605.
Lucien Nachmann, Vice-President and director of the
International Acceptance Bank, with offices at 32 Pine St.
this city, died on Oct. 16 in his suite in the Hotel Astor of
pneumonia, after a week's illness. He was sixty-seven years
old, and is survived by two sisters, the Misses Frieda and
Emma Nachmann, who live in Frankfort, Germany, and a
nephew residing in Lima, Peru.
Mr. Nachmann was born at Mainz, Germany, and during
the earlier part of his career was a manufacturer of copper
and brass in Frankfort and London. Later he entered
banking, also in England and Germany. He Was a friend
of Paul M. Warburg, who, in 1921, invited him to become
an official of the International Acceptance Bank. Mr.
Nachmann was considered an authority on international
finance, and in particular that branch of it dealing with
acceptances.
The intention to consolidate the businesses of the Bank
of Manhattan Trust Co. and International Acceptance
Bank, Inc., was made known in an announcement on Oct. 19
by J. Stewart Baker, Chairman of the Manhattan Co., who
at the same time stated that the officers and directors of the
latter have recommended the desirability of taking steps to
have the New York Title & Mortgage Co. and the Bank of
Manhattan Trust Co. inch pendently operated and managed.
These proposals are in furtherance of plans to conduct a
banking business independent of affiliated companies.
The announcement in the matter (Oct. 19) follows:
At a meeting of the Board of Directors of the Manhattan Company.
held to-day, a plan was adopted, subject to the approval of the stockholders of the Manhattan Company and of its affiliated companies, which
involves several interesting features.
For some time the officers and directors of the Manhattan Company
group have recognized that public opinion no longer favors the affiliation
of a banking institution with other companies, and that conditions have
so changed since 1929 that many of the advantages which at that time
were inherent in the affiliation of various companies through a holding
company have disappeared. Accordingly, in December of last year. the
Manhattan Company caused its affiliate, International Manhattan Co..
Inc., to discontinue its general securities business, believing that under
present circumstances the business hitherto conducted by the International
Acceptance Bank, Inc., could be more advantageously and profitably conducted through a foreign department of a domestic bank than through an
Independent company, the officers and directors have been working towards
that end and have now reached the point where they are prepared to recommend to the stockholders the dissolution of the International Acceptance
Bank, Inc., and the transference of its business to a foreign department of
the Bank of Manhattan Trust Co.
In further carrying out the policy of conducting a banking business independent of affiliated companies, the officers and directors have recommended that simultaneously with the proposed consolidation of the busi• nesses of the Bank of Manhattan Trust Co. and International Acceptance
Bank, Inc., it would be desirable and in the interests of both the New
York Title & Mortgage Co. and of the Bank of Manhattan Trust Co. to
take stops to have these companies independently operated and managed.
Accordingly, a comprehensive plan has been carefully worked out and
adopted by the directors for submission to the stockholders which provides
for the consolidation of the domestic and foreign banking businesses here
totore conducted by the Bank of Manhattan Trust Co. and the International Acceptance Bank, Inc., as well as for separate ownership by the
stockholders of their consolidated banking business and their title and
mortgage business.
The plan provides that the Manhattan Co. will purchase from New
York Title & Mortgage Co. the latter's 35,281 shares of Bank of Manhattan
Co. stock (an interest of about one seventh in the Trust company acquired
by the New York Title & Mortgage Co. in exchange for stock of its former
subsidiaries, the American Trust Co. and The County Trust Co. of White
Plains). The price to be paid by the Manhattan Company is $7,000,000
In cash and $3,584,300 in face value of mortgages. As the New York Title
& Mortgage Co. is not indebted to the Manhattan company or to any of
its subsidiaries, the New York Title & Mortgage Co. will actually receive
the full purchase price.
The Manhattan Company will transfer to a holding company to be known
as "New York Title & Mortgage Corp." its ownership of approximately
983 % in the New York Title & Mortgage Co., and will distribute the
stock of the New York Title & Mortgage Corp. to its shareholders, who
will receive one share of such stock for each share of Manhattan Company
held by them. For reasons of taxation the par value of the New York
Title & Mortgage Corp. will be fixed at $1 per share, but for each such
share outstanding the corporation will hold one share of New York Title
& Mortgage Co., par value $10. While the direct distribution of the
stock of the New York Title & Mortgage Co. to the Manhattan share

Volume 135

Financial Chronicle

holders might have imposed a heavy income tax burden upon them, in
the opinion of counsel, distribution of stock of the New York Title & Mortgage Co. in the form of shares of the corporation organized to hold the
same will subject the Manhattan Company shareholders to neither Federal
nor New York State income taxes.
Stockholders of the Manhattan Company will continue to hold the same
number of shares as formerly, but the par value of their shares will be
reduced from $20 to $10 Per share.
While the banking business and the title and mortgage business will
thus be separately owned by the shareholders instead of as heretofore
through a holding company, those officers of the Manhattan Company
who have been serving on the board of the New York Title & Mortgage
Co. will remain on the board and will continue to give their time and
attention to the affairs of the company as heretofore.
Bank of Manhattan Trust Co. will acquire the assets and liabilities of
the International Acceptance Bank, Inc., and will then merge into the
Manhattan Company, which will continue under its old charter as Bank
of Manhattan Co., resuming the banking business conducted by it from
1799 to 1929 when it became a holding company.
Bank of the Manhattan Co. will then have the same aggregate capital
funds as Bank of Manhattan Trust Co. has to-day, namely, $56,816,466.34.
The capital funds and reserves acquired from the International Acceptance
Bank, Inc., and the capital funds of the Manhattan Company represented
by investments in subsidiaries other than Bank of Manhattan Trust Co.,
International Acceptance Bank, Inc., and New York Title & Mortgage
Co.. amounting in the aggregate to more than $21,000.000, minus the
consideration paid to the New York Title & Mortgage Co. as above set
forth, will be held in reserve or used to write down some of the assets of
the International Acceptance Bank, Inc.
, The earnings of the institutions to be consolidated as outlined above
and operated as Bank of the Manhattan Co. have been running for the
first nine months of 1932 at a rate which, if maintained, will more than
provide for the continuance of the present rate of $2 per share per annum,
notwithstanding the change in par value of the 2,000,000 shares which
will remain outstanding.
The board of directors of the Manhattan Company after the consolidation will consist of the following:
J. Stewart Baker, Stephen Baker. Walter H. Bennett, Bertram H.
Borden, John S. Burke, Harry I. Caesar, F. W. Charske, George W.
Fennell, Marshall Field, B. D. Forster, F. Abbot Goodhue, William V.
Griffin, W. A. IIarriman, Alanson B. Houghton, Raymond E. Jones,
Harry A. Kehler, George McNeir, John C. Moore, Morgan J. O'Brien,
James A. O'Gorman, George Stuart Patterson, P. A. Rowley, L. H.
Shearman, George M.Shriver, Charles A. Stone, Felix M. Warburg, James
P. Warburg, H.Pushae Williams, John L.Wilkie, Daniel G.Wing,Bronson
Winthrop.
Stephen Baker will become Honorary Chairman of the Board;
J. Stewart Baker will be Chairman of the Board; James P. Warburg.
Vice-Chairman of the Board, and F. Abbot Goodhue, President.
The directors of the New York Title & Mortgage Co. are:
Frederic W. Allen, Charles A. Angell, Richard Gordon Babbage, J.
Stewart Baker, William F. Clare, Lewis L. Clarke, Walter V. Cranford,
James R. Deering, Harry M. DeMott, Lawrence B. Elliman, W. Burke
Harmon, W. A. Harriman, Hugo Hirsh, Henry A. Ingraham, Stanley
p. Jadwin, Harry A. Koller, Frederick T. Kelsey, Fred C. Lemmerman,
George T. Mortimer, William Obermayer, Morgan J. O'Brien, Morgan
J. O'Brien Jr. James A. O'Gorman, P. A. Rowley, Matthew S. Sloan,
James P. Warburg, H. Pushae Williams.

A dispatch by the Associated Press from Mechanicville,
N. Y., on Tuesday of this week, Oct. 18, stated that more
than $1,000,000 would be divided among the depositors of
the defunct Manufacturers' National Bank the following
day. The institution, which was capitalized at $100,000,
closed on Aug. 10 of last year, as reported in our issue of
Aug. 15 1931, page 1069.
On Monday of this week, the Continental Illinois National
Bank & Trust Co. of Chicago, began operations as a successor to its State-chartered predecessor—the Continental
Illinois Bank & Trust Co. The change into an institution
operated under a national charter was approved by the
stockholders on Oct. 10 as noted in last week's issue of the
"Chronicle," p. 2607. We quote below in the matter
from the Chicago "Post" of Oct. 17:
With this change effective, three of the five major downtown banks in
Chicago are national institutions—a reflection of the trend toward a more
unified banking structure throughout the nation.
As pointed out by James R. Leavell, president, when stockholders last
Monday approved the plan to seek a national charter, there will be no
Inconvenience to customers of the Continental as a result of the altered
operating authority.
Deposits at the opening will total $644,494,986 and resources will aggregate $802,533,372—the largest outside of New York and the fourth largest
in the United Stews. These deposit figures represents an increase of newly
$8,000,000 since the last statement of condition as of Sept. 30.
Cash on hand totals $185,980,426 and United States securities are
carried at $104,534,241.
Total invested capital of the bank as it assumes operation under the
national charter total $102,711,362 without giving consideration to the
investment affiliate, Continental Illinois Co., the entire capital stock of
which is held in trust for the benefit of stockholdets of the bank.
Bank capital is $75.000.000; surplus, $25,000,000, and undivided profits,
.
$2,711,362
Stock of the Continental Illinois National Bank & Trust Co. of Chicago
be exchanged for stock of the predecessor institution on a share-forwill
share oasis. Book value of the stock is in excess of $136 a share.

The Chicago "Post" of the 17th had the following to
say regarding the history of the institution:
The Continental Illinois National Bank, which has 36% of the banking
resources in Illinois, traces its history to 1857, when the oldest component,
the Merchants Savings Loan & Trust Co., was organized. In 1861 the
second oldest component,the Hibernian Banking Association, was chartered.
Since that time there have been numerous mergers, which, together
with natural growth, have placed the Continental Illinois in western banking leadership.

From the Chicago "Post" of Oct. 19, it is learned that C.
F. Kuehnle,formerly a Vice-President of the National Bank
of the Republic of Chicago, has become President of the




2777

Halstead Exchange National Bank of Chicago, assuming his
new duties on that date. The "Post" went on to say:
His banking career in Chicago extends back several years, and he is well
known in financial circles. He is a native of Iowa and a graduate of the
State University•
Until last week Carl Jernberg, President of the Liberty Trust & Savings
Bank, was also President of the Halsted Exchange National. Then the
directors of the latter institution deciding that the double duties claimed too
much of Mr.Jernnerg's time,decided on a new President. Mr.Kuehnle was
their choice.
Mr. Jernberg continues as a director of the Halsted Exchange National
Bank and will still have an active interest in the bank and the community.
The Halsted Exchange National has had a most impressive record during
the critical development of the last three years, its statement at all times
showing cash, United States Government bonds and readily marketable
bonds in excess of deposits, commonly known as 100% liquidity. At no
-day notice on its savings deposits, and it was
time has the bank placed a 60
in a position at all times to pay off every dollar of deposits. The managefellow the sound policy.
ment will continue to

The Boston Five Cents Savings Bank of Boston, Mass.,
4%, payable Oct.
has declared a semi-annual dividend of 11Y
15, establishing the rate on deposits at 3% annually,
against a previous declaration on a 4% basis, according to
advices from that city on Oct. 13 to the "Wall Street Jaurnal," which added:
This bank, by far the largest mutual savings institution in Massachusetts,
had total assets at the close of business Oct. 11 of $119,511,744, a new
record. Deposits of $111,023,713 compare with $100,005,661 Jan. 2.
Since that date the number of open accounts has grown to 192,533 from
181,109, a net gain of 11,424 accounts and of $11,018,052 deposits.

The death occurred at Weston, Mass., on Oct. 16 of
Charles 0. Morrill, President of the Waltham Savings Bank
of Waltham, Mass. Mr. Morrill, who was 81 years of age,
was born at Springfield, Mass., but moved to Weston when a
boy. For 50 years he was the proprietor of a grocery store,
and in 1893-1894 served as a representative in the State
Legislature.
John E. White has resigned as Chairman of the Boards of
Directors of the Worcester Bank & Trust Co. of Worcester,
Mass., and the Worcester County National Bank of that
city, positions he has held since the two institutions became
affiliated two years ago. He will continue as a director of
both institutions. Associated Press advices from Worcester,
on Oct. 18, reporting the above, went on to say:
Mr. White retires after nearly 40 years of service in executive poets in
Massachusetts banks, the last 17 years of which has been in Worcester,
first as President of the Worcester National Bank, then, following its merger
with the Worcester Trust Co., as President of the Worcester Bank & Trust
Co., and finally in the offices which he now relinquishes.

Carlos W. Tyler, for the past four years President of the
Western Massachusetts Bank & Trust Co. of Springfield,
Mass., was chosen President of the Miller's River National
Bank of Athol, Mass., at the regular meeting of the directors
on Oct. 18. Mr. Tyler, who succeeds the late Walter M.
Hunt, will assume his new duties on Nov. 1. A dispatch
from Athol to the Springfield "Republican," reporting the
matter, furthermore said in part:
Virtually all his banking experience has been spent in Massachusetts,
where he was born. He was for a number of years associated with the
National Shawmut Bank of Boston, a former State Bank examiner, an officer of the Atlantic National Bank, Boston, and for the past four years
President of the Western Massachusetts Bank & Trust Co., of Springfield,
Mass. There he has been actively identified in civic affairs, being
former Treasurer of the Springfield Chamber of Commerce.

The Arlington Trust Co. of Lawrence, Mass., which closed
Dec. 17 last, was to reopen its doors yesterday, Oct. 21, according to an announcement by State Bank Commissioner
Guy. Total deposits of the bank amounted to approximately
$6,500,000 and there are about 17,000 depositors. The Boston
"Transcript" of Oct. 18, in reporting the matter, quoted Mr.
Guy, in his announcement, as saying:
"This accomplishment has been made possible by the tireless and unceasing efforts of the reorganization committee under the able direction of
Daniel J. Murphy and to the active co-operation and good will of numerous
of the depositors who have agreed to the use of a portion of their deposits
to consummate the plan of reopening, also the furnishing of $150,000 new
cash by stockholders and other interested parties.
"In addition to the agreement by many of the depositors for the use
of part of their deposits as mentioned, most depositors have also agreed
that payment of a substantial portion of their deposits be deferred and in
view of the fact that a vast majority of the depositors have so agreed, under
authority conferred upon me by law, I have imposed similar restrictions
on all deposits and other claims so that all may be treated alike.
"The original plan, to which most depositors have agreed, called for a
credit of 5% of balances on reopening, but I am pleased to state that
instead of a credit of only 5% being made available at this time an immediate credit of 20% will be available to the depositors of both departments upon reopening, thus making available a tbtal credit in excess of
$1,200,000, all of which will be in eash.
"This increased credit has been made possible by the generous and active
co-operation and assistance of all the other banks of Lawrence. The
bank, as reopened, will merit the fullest confidence of its depositors and

the people of Lawrence."

2778

Financial Chronicle

The First National Bank of Bradley Beach, N. J., which
had been closed on Dec. 24 last, was reopened Oct. 15, according to the Newark "News" of that date, from which we
quote, in part, as follows:
The Bradley Beach Bank resumed business at 11 a. m. A drive for
subscriptions to $125,000 of stock was brought to a successful conclusion
yesterday afternoon (Oct. 14) when Franklin W. Fort of the Lincoln
National Bank of Newark arranged a 30-day purchase loan in that institution
to take care of 1,000 shares of stock. Mr. Fort is Chairman of the Federal
Home Loan Bank. He is on a leave of absence as President of the Lincoln
National.
The drive for subscriptions for the new issue was put over in a last
minute effort. When it became apparent Thursday (Oct. 13) the full
number of subscriptions could not be obtained by midnight, the limit previously set, the Comptroller of the Treasury was appealed to. He extended
the time 24 hours to last midnight. . . .
Under an agreement, depositors will be permitted to withdraw 60% of
their deposits immediately, the remaining 40% to be left two years.

Bradley Beach advices on Oct. 17 to the Newark "News"
contained the following additional information regarding
the opening of the bank:
Although it was opened for lees than three hours, the First National
Bank of Bradley Beach received deposits in excess of drafts upon accounts,
amounting to $3,000 Saturday. To-day (Oct. 17) the bank will resmne its
regular business after being closed for nearly 10 months. Depositors were
permitted to withdraw up to 60% of their deposits in the old institution.
Word from the Comptroller of the Treasury approving the reopening was
not received until 11:55 o'clock, and although the bank officials intended
to close the institution at noon, several hundred people had entered the
building and were permitted to make withdrawals and deposits until the
last had been served.
The Board of Directors of the old bank elected James D. Carton President
of the reorganized institution, the position he held in the old bank at the
time it closed, Dec. 24. Three other former directors were named to the
Board of the new bank as the old Board members resigned one by one, new
members being elected as each vacancy occurred.

According to the Newark "News" of Oct. 15, the Matawan
Bank at Matawan, N. J., which closed its doors in December
1931 to protect its depositors, may reopen shortly. The
"News" said in part:
According to George Compton, Deputy Banking Commissioner, a plan for
the reopening of the bank in about 10 days had been submitted and
approved by the Banking Department.
Christian Heuser, President of the bank, said nothing official had been
given out and no date had been set for the reopening. He said a plan for
the reopening had been submitted and approved by the Banking Department
about three months ago.
The bank will not open until after the stockholders' meeting, which has
been called for next Saturday afternoon (Oct. 22), in the bank.

Trenton, N. J., advices to the Newark "News" on Oct. 17
stated that the Edgewater Trust Co. of Edgewater, N. J.,
had that day filed a bill In Chancery seeking to compel
S. Leslie Doremus, former President, to account for approximately $50.000 alleged to represent loans of bank funds
made without knowledge of the other directors. The dispatch, continuing, said:
The bill alleged specifically that while he was President from 1926 to
May 2 1932, Doremus "habitually concealed from said directors his action
in making loans, renewals, discounting paper and purchasing securities."
Several instances are recited in which it is alleged Doremus overstepped
his authority. It is charged he made a loan of $4.600 to Angelo Traviani
on a worthless third mortgage, a loan of $10,511 to Benjamin Klein, a bankrupt, and one of $30,000 to the Arcola Realty & Development Co. of which
he was half owner.
Another allegation is that Doremus made a loan of $5,000 to Anton
Bohm, his partner in a realty concern, and that Doremus appropriated to
his own use half of the $30,000 advanced to the Arcola Co.

George H. Arnold has been appointed Vice-President and
Trust Officer of the Illinois Bank & Trust Co. of Rockford,
Illinois, and will assume his new duties on Nov. 1. The
Chicago "Post" of Oct. 15, from which this is learned, went
on to say:
Mr. Arnold is well known in Chicago banking circles, having spent many
years in the corporation buying department of the Harris Trust dt Savings
Bank and the underwriting department of Foreman-State Corp. Since the
closing of the latter institution he has been acting as General Manager of
the Equity Ownership Corp., handling the reorganization of utility and
real estate properties.

The new bank which has been organized in Washington,
Pa., under the title of the Washington Union Trust Co.,
Washington County, opened for business Oct. 18, according
to the Philadelphia "Ledger" of that date. The new organization succeeds the former Washington Trust Co. and the
Union Trust Co., which closed their doors early in October
1931. The paper mentioned, continuing, said:
Dr. William D. Gordon, Secretary of Banking of Pennsylvania, in a statement announcing the opening of the new institution, declared that "it will
be in a position to meet its deposit liabilities 100%." Ninety-seven per
cent. of the bank's assets are in cash, bonds and collateral loans.
Under the reopening. plan the new trust company has assumed certain
of the assets of the two closed banks and a part of the deposit liabilities;
other assets being segregated and are to be made available to depositors
as liquidated.
This will mark the second reopening of a closed bank, the first having
been the Homewood State Bank, of Homewood, Pa., several weeks ago.




Oct. 22 1932

With reference to the affairs of the defunct Northern
Central Trust Co. of Philadelphia, Pa., it is learned from the
Philadelphia "Ledger" of Oct. 16 that the first account of the
State Banking Department of Pennsylvania in possession of
the institution has been filed in the office of the Prothonotary
of Common Pleas Court. The paper named,continuing, said:
The Secretary of Banking charges himself with assets appraised at $2,687,491 as of Sept. 28 1931. when the trust company was taken over. Credit is
claimed for losses in conversion and disbursements amounting to $1,143,040,
including a 10% advance payment to depositors of $197.878.
The liabilities as of July 6 1932, are given as $2.015.890 with deposit
liabilities as of the same date amounting to $1,977,852. The Secretary of
Banking had on hand July 6, cash and unconverted assets appraised at
$1,650,746.

The closing of this institution on Sept. 28 1931, was noted
in the "Chronicle" of Oct.3 last, page 2209.
The Philadelphia "Ledger" of Oct. 16 stated that the
Carbondale Miners' & Mechanics Savings Bank, Carbondale, Pa., will make an advance payment Oct. 27 of 5% to
10,000 depositors amounting to $134,591.
Concerning the affairs of the defunct Bank of Crozet at
Crozet, Va., advices from Charlottesville, Va., on Oct. 17
to the Washington "Post," stated that the receiver of the
institution, Edwin H. Copenhaver, had announced on that
day that an additional dividend of 10%, amounting to
$14,253, would be available to the depositors the next day,
making a total of 30% to be received since the institution
closed its doors the first of last year. The dispatch continuing said:
A dividend of 20%—$29,550.41—was paid depositors during 1931.
Settlements with depositors have also been made to the extent of $14,016
by making set-offs on notes due. This makes a total settlement to date
of $57,818.98. When the bank closed its doors depositors were due approximately $156,000. This amount has thus been reduced to slightly leas
than $100,000.

Sterling B. Cramer, until recently connected with the Continental Illinois Bank & Trust Co. of Chicago, has become
President and a director of the First-Central Trust Co. of
Akron, Ohio, the large institution formed last fall by the
union of the First-City Trust & Savings Bank and the Central
Depositors Bank & Trust Co., it is learned from Akron advices on Oct. 14 to the Cleveland "Plain Dealer." Mr.
Cramer, who has had thirty years of banking experience,
succeeds Harry Williams, who has been Chairman of the
Board and President since the new organization was formed,
atd who continues as Chairman. We quote further from
the dispatch as follows:
Bank officials announced the selection of Cramer was made because of
his wide experience in mid-west banking and to fulfil the promise made at
the time of the merger to bring in an outside executive to head the combination.
There will be no other changes in the official setup of the bank's management, it was said. . . .
Cramer started his banking career with the Merchants Trust & Savings
Bank of Chicago and took part in organizing the Federal Reserve Bank
in that city. Leaving the Federal Reserve Bank of Chicago, Cramer went
to the Continental Illinois Bank, where he has headed the commercial
group that has had the central territory, including Ohio. He is regarded
the best known Chicago banker in this section of the country.

E. G. Ruder, President of the First National Bank & Trust
Co. of Hamilton, Ohio, and a leader in financial and industrial circles of that city, died suddenly on Oct. 11 at Fort
Hamilton Hospital, following an operation. The deceased
banker had served as President of the First National Bank &
Trust Co. for more than 11 years, and in addition was
President of the Hamilton Dime Savings Bank, the Hamilton
Industrial Bank and the Miami Valley Knitting Mills; First
Vice-President of the Niles Tool Works Co., and Treasurer
of the Dollar Savings & Loan Co. He was in Ills 74th year.
That the Minerva Savings & Banking Co. of Minerva, Ohio,
will probably reopen in the near future Is indicated in the
following press dispatch from that place on Oct. 14, printed
In the Cleveland "Plain Dealer":
With 87% of the depositors approving the plan, steps looking toward the
reopening of the Minerva Savings & Banking Co. are nearing consunnnation.
According to F. G. Patterson the bank will release $50,000 upon reopening.

Joseph N. West, former Indiana State Bank Examiner
and later Cashier and liquidating agent of the American
Trust & Savings Bank of Richmond, Ind., was 'sentenced to
two to 14 years in Indiana State Prison on Oct. 10 on a
charge of embezzlement. A $20,000 fine was suspended by
Judge G. H.Hoelscher, of the Wayne Circuit Court. Advices
from Richmond to the Indianapolis "News" reporting this,
went on to say:
A plea of insanity entered by West's attorney was withdrawn and a
plea of guilty entered. Two other charges of embezzlement were dismissed.

Volume 135

Financial Chronicle

Abcut two months ago West disappeared with $10,000. and was found
wand:ring in a woods near Forsythe, Mo. The automobile he used was in a
stream in Taney County. Mo.
Besties being liquidating agent West was a member of the Board of Police
Commissioners and was active in American Legion circles.

From the Chicago "Tribune" of Oct. 7, it is learned that
the Lake County (I11.) Grand Jury the previous day returned
an indictment before Circuit Judge Ralph J. Dady at
Waukegan, charging Lyle Gotuiey, President of the closed
Highwood State Bank of Highwood, and seven other officials
and directors of the bank, with conspiracy. Those indicted
with Mr. Gourley were his father, John J. Gourley, a
Highland Park coal and lumber merchant and a director of
the bank; Harry Colander, Vice-President; John E. Engquist,
Cashier, and John J. Flannigan, William J. Brown, Waiter
E. Meierhoff and Guy Vitti, all directors. Lyle Gourley is a
City Commissioner of Highland Park, and Brown is a former
City Commissioner there.
The "Tribune" continuing said:
The bank closed on July 28. At the time It had liabilities of $200,000 and
held $25.000 in cash. State's Attorney A. V. Smith started an investigation
of the institution after he had received complaints that a number of the
directors and members of their families had withdrawn large sums from the
bank just before it closed.
The investigation disclosed that Olander had withdrawn $1,500 shortly
before the closing, and Flannigan $5,000. The indictment charges that
the officers and directors were aware that the bank was insolvent on July 27
and tot some period before that, but that they continued to receive deposits
and operate the bank.
Members of the Grand Jury asked permission of Judge Dady to present,
along with the indictment.a resolution crithdzing State Auditor Oscar Nelson
for the conduct of his office, on the grounds that no examination of the bank
was made by his office between October 1931, and last July, shortly before
the bank closed. Judge Dady refused to receive the resolution, holding that
the grand jury's powers were confined to the presentation of indictments
and no-bills.
I

A complete list of the officers of the new City National
Bank & Trust Co. of Chicago was announced on Oct. 13 by
General Charles G. Dawes, Chairman of the Board, it is
learned from the Chicago "Post" of Oct. 13. In addition to
General Dawes, Philip It. Clarke, President, and C. C. Haffner Jr., Executive Vice-President, the officers are as follows:
Vice-Presidents—W. L. Burgess, A. R. Floreen, A. T. Leonard, H. A.
Mereight, C. S. McFerran, H. R. Moore and John Mt.
Assistant Vice-Presidents—O. J. Chortler, K. K. DuVail, L. B. McMahon,
R. R. Mentz, M. A. Olson and S. H. Otis.
Cashier—W. B. Noyes,
Assistant Cashiers—J. A. Hatttio, M. E. Shanahan and M. O. Smeck,
Auditor—P. J. Drexler.
Personal Trust Officers—H. J. Clark, F. R. Curda and H. W. Hawkins.
Corporate Trust Officer—G. R. Helfrich.
Assistant Corporate Trust Officers—J. S. Crossley and W. E. Toom.
Trust Investment Officer—W, K. Otis.
Assistant Trust Investment Officers—O. K. Johnson and R. E. Lenington.
Secretary—W. W. Henshaw.

Concerning the affairs of the First State Bank of Hartford, Mich., which was placed in the hands of a receiver in
July 1931, the "Michigan Investor" of Oct. 15 stated that a
dividend of 15%, the third, had Just been paid to the depositors, making a total of 50%. The first dividend
amounted to 25% and the second to 10%, it was said.
That the Clare County Savings Bank of Clare, Mich., will
be reorganized shortly is indicated in the following, taken
from the "Michigan Investor" of Oct. 15:
The Depositors' Committee of the Clare County Savings Bank at Clare,
which closed its doors May 21, has obtained the necessary quota of signers
for reorganization. The sum of $850,000 was required and it went along
rapidly until the lad $100,000, but a strenuous campaign during the past
week brought about the desired results.

.

The depositors of the Buchanan State Bank at Buchanan,
!Itch., the closing of which was reported in our issue of
Oct. 31 1931, will soon receive their second dividend amounting to $29,523.64, of which $11,637.70 will go to savings depositors and $17,885.94 to commercial accounts, according to
the Michigan "Investor" of Oct. 15.
That the American Exchange Bank of Manitowoc, Wis.,
is being liquidated by the Manitowoc Savings Bank of that
city, is indicated in advices from Manitowoc on Oct. 17 to
the Milwaukee "Sentinel," which said:
The initial step towards liquidating assets of the American Exchange bank by the Manitowoc Savings bank was accomplished Monday
when more than the necessary 80% of depositors had given off icial consent
to the plan.
Accounts of depositors were transferred to the savings bank. Those
with $250 or less in the bank were paid in full while others will receive
as% immediately and the balance later.
The Exchange hank has levied an assessment of 100% on its stockholders.

The Milwaukee "Sentinel" of Oct. 18 stated that officials
of the Wisconsin State Bank of Milwaukee had conferred
informally with the authorities in Washington, D. C., relative to placing the institution on a National basis, according




2779

to William II. Hasse. Cashier. The matter will be taken up
at a meeting of the directors on Nov.7 next, it was said.

That the closed Franklin State Bank of Milwaukee, Wis.,
will reopen shortly under the title of the Marquette State
Bank was reported in the "Commercial West" of Oct. 15.
An item referring to the affairs of this bank appeared in
our issue of last week, page 2608.
The Farmers' & Merchants' National Bank of Milbank,
S. D., recently observed the fiftieth anniversary of its
founding, according to the "Commercial West" of Oct. 15,
which named the officers as follows: W. S. Given, President; N. J. Blesser, Vice-President; E. H. Benedict, Assistant
to the President, and 0. B. Schneck, Cashier.
According to the "Commercial West" of Oct. 15, depositors
of the closed Security State Bank of Dante, S. D., are receiving a dividend of 8.6%, their first and the only dividend
to be paid.
The "Commercial West" of Oct. 15 stated that stockholders
of the Citizens' State Bank of West Union, Iowa, are receiving a second dividend on their stock. The bank, which has
been in liquidation since the summer of 1931, has already
paid off all its depositors, it is said.
Depositors of the closed Washta State Bank at Washta,
of
Iowa, are receiving an initial dividend of 8%, according to
the "Commercial West" of Oct. 15.
4.

The Farmers' & Merchants' Bank of Ceresco, Neb., was
reopened on Oct.1 with 50% of its deposits secured on waiver
agreements, according to the "Commercial West" of Oct. 15.
Officers were named as follows: Frank Wedberg, President; Herman Nelson, Vice-President, and Fred Mostram,
Cashier.
—*—
Consolidation of the Farmers' State Bank of Tekamah,
Neb., with the First National Bank of that place, effective
Oct. 13, was reported in a dispatch from Tekamah, printed
in the Omaha "Bee." The enlarged First National Bank
now has combined capital and surplus of $120,000; deposits
of $511.000, and total resources of $750,000. Officers (as
named in the advices) are as follows: Robert I. Stout,
President; E. C. Houston and D. W. Greenleaf (former
President of the Farmers' State Bank), Vice-Presidents,
and H. J. Fragge, Cashier.
That the Arthur State Bank at Arthur, Neb., a small
institution, is to liquidate was indicated in the following
dispatch from that place, Oct. 6, appearing in the Omaha
"Bee":
Due to the small volume of business, directors of the Arthur State Bank
have decided to liquidate the institution and pay all depositors in full, it
was announced Thursday (Oct. 6) by R. H. Barber, Vice-President of
the
Bank of Paxton at Paxton (Neb.), who also has an interest in the
Arthur
bank.
Depositors have been asked to withdraw their deposits and notice has
been given that after Nov. 5 no further deposits will be accepted
and no
checks paid.
Others interested in the bank are Theo. Lightbody of Arthur, Ray
0.
Langford of North Platte (Neb.)and Paul H. Kannow of Kearney
(Neb.).

The Bank of Burlington, at Burlington, Okla., after being
closed for three weeks following the disappearance of its
Cashier, Henry C. Doherty, reopened for business on Oct. 13
under a two-year moratorium plan, according to Associated
Press ad vices from Burlington, which added:
The bank was opened in charge of John H. Cotton of Prague,
who will
represent the State Banking Commission. No depositors
attempted to
.withdraw their money.
Doherty is free under $2,500 bond on a charge of
embezzlement, filed after
his return more than a week ago.

Regarding the affairs of the Vandeventer National Bank
of St. Louis, Mo., an institution which closed its doors on
Jan. 1 of the present year, a press dispatch from Washington,
D. C., dated Oct. 4, contained the following:
The receiver for the defunct Vandeventer
National Bank in St. Louis is
prepared to distribute to depositors an
additional dividend of 34%, it was
announced here to-day (Oct. 4). Checks for
the dividend are being made
out at the Treasury Department and probably
will reach Receiver Joseph
F. Holland by next Monday.
This dividend is supplemental to a 25%
dividend paid last July. It is
made possible partially through a loan from
the Reconstruction Finance
Corp., according to the Division of Insolvent
Banks of the Comptroller of
the Currency office.
The estimated amount of the new dividend is $324,853.
When this shall
have been disbursed, the aggregate dividend paid depositors in less
than
three months will have reached 59% of the claims, a total of $563.715. The
total claims proven amounted to $955,451. There were
3.260 depositors.

2780

Financial Chronicle

Secretary Cooksey of the R. F.0.said he was not at liberty to give information on loans made to banks or corporations except as the regular report
required by Congress is made public. The second report has been made, but
publicity on it was withheld by request of Chairman Pomerene. The first
list published did not show a loan to the Vandeventer Bank.

We reported the failure of the Vandeventer National Bank
in the "Chronicle" of Jan. 9 last, page 251.
The newly organized Bank of Whitesburg at Whitesburg,
Ky., which replaces the First National Bank of that place
which closed June 15 last, was to open for business on Oct. 10,
according to advices from that place Whitesburg to the
Louisville "Courier-Journal." Officers had been chosen as
follows, the dispatch stated: M. K. Marlowe, President;
B. C. Bach, Vice-President, and Herman Hale, Cashier.
With reference to the affairs of the closed Central Bank &
Trust Co. of Asheville, N. C., Attorney General Dennis G.
Brummitt, on Oct. 8, despatched for filing in the United
States Supreme Court the State of North Carolina's brief
on the petition for a writ of certiorari filed by Wallace B.
Davis (former President of the defunct Asheville bank),
Colonel Luke Lea and Luke Lea, Jr., who are asking to
carry to the United States Supreme Court their appeal from
convictions in connection with the failure of the Central
Bank & Trust Co.in 1930. The Raleigh "News & Observer"
of Oct.9,from which the above information is obtained, went
on to say:
The effort of the bankers to gain a review before the highest court in the
land is concurrent with attempts to have their cases reviewed a second time
by the North Carolina Superme Court—a course which the AttorneyGeneral's department is contesting just as it is the move to carry to appeal
to Washington.
Last week the Attorney-General'odged motions before the State Supreme
Court to dismiss both appeals, contending that the grounds set forth were
trivial and in violation of principles laid by the court in opinions clarifying
the famed Casey opinion on second appeals in criminal cases.
The Court held this spring that Leas and Davis were convicted properly
In Buncombe (County) Superior Court and should serve the sentences
Imposed for their part in the collapse of the $17,000,000 financial institution.
Shortly after the Court denied the defendants' motion for reconsideration, they sought new trials in Buncombe Superior Court on the ground of
newly discovered evidence. Judge Clement denied the motion but permitted
the defendants to appeal from his decision. Notice of appeal to the U. S.
Supreme Court was given following the failure to gain a new trial in this
State.
Luke Lea, Sr., former U. S. Senator from Tennessee and a Colonel in
the American Expeditionary Force who gained world-wide notoriety in
1919 for his plan to kidnap the Kaiser and bring him to the United States
as a Christmas present for President Wilson, faces the heaviest sentence
under the conspiracy conviction—from 6 to 10 years in State's prison; his
son, Luke Lea, Jr., faces a sentence of from one to three years and Davis,
President of the defunct bank,faces a term of four to six years. Davis also
faces another term for his conviction of violating State banking laws.

Subsequently, advices from Raleigh on Oct. 19 by the
Associated Press stated that the North Carolina Supreme
Court on that day had dismissed the appeal of Colonel
Luke Lea from a Superior Court ruling denying him a new
trial on a charge of violating the banking laws. Continuing,
the dispatch said in part:
The Court granted the motion of the State to docket the case and dismiss it. It also dismissed similar appeals by Wallace B. Davis of Asheville, former Asheville banker, and Luke Lea Jr. . . . To-day's
(Oct. 19) action ended the last recourse in the State courts of the three
men to escape execution of the sentences. They may, however, ask the
United States Supreme Court to review the proceedings.

Further referring to efforts being made to reopen the First
National Bank of Durham, N. C., a press dispatch from
that place under date of Oct. 11, printed in the Raleigh
"News & Observer" had the following to say:
Seventy-five per cent of the depositors of the closed First National Bank
have signed the creditors' payment agreement, the committee in charge of
the campaign to open a new National Bank of Durham announced Tuesday
(Oct. 11).
The remainder of the depositors in the closed bank must sign by Oct. 18
If the new bank is to be opened within the time limit fixed by the Comptroller, the committee said, in urging all depositors who have not signed to
attend to the matter without further delay. The new bank will have
capital and surplus of $300,000.

Oct. 22 1932

at Raleigh and other parts of North Carolina) has resigned
as a Vice-President of the Wachovia Bank & Trust Co.,
effective Nov. 1 next. Greensboro advices, on Oct. 14, appearing in the Raleigh "News and Observer," from which
the above information is obtained, quoted Mr. McLean (who
is ex-Governor of North Carolina) as saying in his statement:
Mr. Calhoun has been actively engaged in the banking business for SO
years. He was for a number of years Vice-President and Trust Officer of
the Bank of Maysville, Ky. Colonel Fries, late President of the Wachovia
Bank & Trust Co., brought Mr. Calhoun to North Carolina seven years ago,
and he was made Vice-President of the Wachovia Bank & Trust Co. at
Raleigh and placed in diarge of the banking department. He remained
there until 1928, when he was promoted and brought to the home office
at Winston-Salem, where he organized and had charge of the credit department of the entire system of the Wachovia Bank & Trust Co. and its
branches throughout the State. After the death of Colonel Fries and the
election of Mr. Hanes as President of the Wachovia Bank & Trust Co., Mr.
Calhoun took over Mr. Hanes's work, and is still occupying that position.
In addition to being a Vice-President of the Wachovia, Mr. Calhoun is
one of the general directors and a member of the Loan Committee of the
entire Wachovia system. .
.
The Board of Directors passed an unanimous resolution thanking I. B.
Grainger, Executive Vice-President, for the able and efficient manner In
which he has directed the affairs of the bank since the resignation of the
former President.

The dispatch also said in part:
There were no other changes in the personnel of the organization, ex-Governor McLean continuing to serve as Chairman of the Board, giving active
attention, as in the past, to the affairs of the bank, and Julius W. Cone
continuing to serve as Chairman of the Executive Committee. . . •
There are nine banks in the North Carolina Bank System. They are
located at Greensboro, Raleigh, Burlington, Salisbury, High Point, Wilmington, Rocky Mount and Kinston.

Cyrus K. Clarke, President of the First National Bank of
La Porte, Texas, died of a heart attack on Oct. 13 at his
home,King's Lea,on San Jacinto Bay. The deceased banker
was a native of Pittsburgh, Pa.
The Deseret Savings Bank of Salt Lake City, Utah, which
closed its doors last February, has submitted a plan to depositors providing for the release of approximately $2,500,000. The bank had 13,000 depositors and deposits of about
$6,500,000. Advices from Salt Lake City on Oct. 13 to
the "Wall Street Journal" reporting the above went on to say:
The plan calls for the liquidation of the assets of the bank under the direotion of the First Security Corp., which operates a chain of about 30 banks
In Utah, Idaho and Wyoming.

George L. Browning, President of the Seaboard National
Bank of Los Angeles, Calif., on Oct. 14 announced the election of Roland W. Nicol, investment counselor, to the
directorate of the institution, according to the Los Angeles
"Times" of Oct. 15, which went on to say:
Mr. Nicol was with the Rideout Banks in Marysville, Calif., prior to
war service in France, after which he became affiliated with Blythe-Witter
& Co. in San Francisco in 1919. In 1928 he studied for eight months under
Henry MacCormick at the Guaranty Trust Co. in New York and then
became salesmanager for the Eastman Dillon Co. in Chicago, later coining
to Los Angeles to enter the local investment field.

The Monroe National Bank of Monroe, Wash., was placed
in voluntary liquidation on Oct. 4 last. The institution,
which was capitalized at $25,000, was absorbed by the First
National Bank of Monroe.
The Royal Bank of Canada announces that data regarding
the recently revised Canadian tariff can now be obtained at
the New York Agency of the Bank. The various provisions
of the new schedules of duties will be explained to those who
may be interested.

THE WEEK ON THE NEW YORK STOCK EXCHANGE.
The stock market has been confused and uncertain during
the present week. Alternate periods of strength, unsettlement and irregularity have characterized the trading, and
• while the changes have generally been within a narrow
Associated Press advices from Winston-Salem, N. C., on range, the trend, on the whole, has been toward lower levels.
Oct. 11 reported that a quarterly dividend of 2% hal been Railroad stocks have attracted the most interest, though
declared on that day by the directors of the Wachovia there has been some buying in the specialties that has kept
Bank & Trust Co. of that city, payable Nov. 1. The dis- that group fairly steady. Trading has been dull and
patch also stated that Ralph E. Spaugh of Winston-Salem while there has been some selling, it was usually, quickly
absorbed without makinf much impression on the market.
had been elected Assistant Treasurer of the institution.
Tobacco shares had a sinking spell on Tuesday which exThe appointment of N. S. Calhoun as President of the tended into the following session and industrial issues have
North Carolina Bank & Trust Co., with headquarters at been generally weak. Call money renewed at 1% on
Greensboro, N. C., was announced on Oct. 14 by A. W. Monday, continued unchanged at that rate during the rest
McLean, Chairman of the Board of Directors. Mr. Calhoun of the -week.
Trading was light, changes were narrow and the closing
succeeds in the Presidency W. S. Ryland, who resigned many
months ago, since which time the affairs of the institution firm during the short session on Saturday. Prices were somehave been directed by I. B. Grainger, Executive Vice-Presi- what higher during the early trading, but the market quieted
dent. The new President of the bank (which has branches down as the day progressed. Railroad stocks started off




Volume 135

Financial Chronicle

2781

The market turned heavy shortly after the opening on
strong, but reacted to around the previous close. United
States Steel was well supported, the preferred moving up Friday and drifted downward during much of the remainder
about 2 points at its top for the day, though it reacted later of the session. Railroad shares which were moderately firm
in the session and closed at 76 with a gain of I point. Mer- during the preceding day tumbled downward followed by
chandising stocks were higher, Safeway Stores leading most of the active speculative favorites. Practically every
with a gain of a point Norfolk & Western was strong and group was more or less reactionary and while selling fell off
moved up 23% points to 973% and Canadian Pacific moved somewhat after the noon hour, the rallies were weak and
up to 669/i at its top. Other gains registered at the close failed to hold. At the close the changes were largely on the
were American Tobacco, 23( points to 713%; Eastman Kodak side of the decline and included Air Reduction 33% points to
3
pref., 73% points to 120; Endicott-Johnson, 2 points to 31; 53%; Allied Chemical & Dye, 5 points to 703%; Amer. Tel.
International Silver, 45% points to 18; Woolworth, 1 point & Tel., 53% points to 1013%; Atchison, 43% points to 40%;
4
to 373 ;Firestone pref., 23% points to 63; Atlas Power pref., Auburn Auto, 4 points to 403%; Union Pacific, 53% points to
%
4
13% points to 653/; Hershey Chocolate, 13 points to 567 ; 63, and Western Union, 3% points to 36%. At the close
Mack Truck, 1 point to 21; International Business Machines, the market was weak and near the bottom for the day.
4
13 points to 92, and Public Service of N. J., I% points
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY. WEEKLY AND YEARLY.
to 47%.
Stocks were lower on Monday, but recessions were small
State.
United
Total
Railroad
quwks,
and trading was comparatively light. Railroad shares
Bond
States
Number of and Missal. Municipal &
Week Ended
Bonds.
Sales.
For'n Bonds.
Bonds.
Shares.
Oct. 21 1932.
attracted considerable speculative attention, Atchison mov3293.000 $4,917.000
593,510 33,022.000 31,602.000
ing ahead about a point at its best, though it lost all of Saturday
7.387.000
833,000
2,953,000
3,601,000
770,310
Monday
its gain and closed 13% points off. In the final hour the Tuesday
1,770,500
8,873,500
3,957,000
3,146,000
1,020,900
6,889,400
616,400
2,092,000
4,161;000
1,303.330
Wednesday
market weakened and most of the favorite trading issues Thursday
7.191.000
750,000
2,060,000
4,381.000
1,055,950
8,054,500
1,043,500
2,441,000
4,570,000
1,241,695
closed at lower levels. Among the latter were such active Friday.....
5,985.695 323,692,900 $14,294,000 35.306,400 343,292.400
stocks as Allied Chemical & Dye, 18% points to 713 ; Ameri%
Total
can Can pref., 13/è points to 120; Amer. Tel. & Tel., 23%
Jan. 1 to Od. 21.
Week Ended Oct, 21.
Sales at
8
points to 103; American Tobacco "B", 23% points to 70%;
New York Stock
1931.
1932.
1931.
1932.
Exchange.
4
Auburn Auto, 23 points to 41; Beechnut Packing, 3 points
471,528,545
374,267,832
6,508,623
5,985,695
of shares_
to 40;Industrial Rayon,23% points to 253 ;Reading 1st pref., Stocks—No,
4
Bonds.
8 points to 25; Union Pacific, 2 points to 63; United States Government bonds.-- 35.306,4e0 814,234,700 3511,697.450 $170,061,900
699,373.160
624.448,100
State & foreign bonds- 14,294,000 23,355,000
Industrial Alcohol, 2 points to 24; Dupont, 13% points to Railroad &misc. bonds 23,602,000 41,284,000 1,370.793.000 1,474,843.460
5
*AR 000 Ann !IA 572 7n0 S2 MR 025 ASO 12 244 275 4110
35/f Consolidated Gas, 13% points to 543%, and Colorado
Gas & Electric pref. "A", 2 points to 693%.
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
On Tuesday the market continued quiet with irregular
BALTIMORE EXCHANGES.
price movements and with little change in the active trading
Baltimore.
Philadelphia.
Boston.
list. Railroad stocks were moderately firm and tobacco
Week Ended
BondSales. Shares. BondSales. Shares. BondSalet.
Shares.
Oct. 21 1932.
shares were weak. During the first hour the market re471
85.000
8,351
31,000
versed its position and much of the loss of the preceding day Saturday
11,131
1,298
7,000
11.458
2,000
15,283
Monday
38.000
was recovered. As the session progressed the rally petered Tuesday
325
1,000
13,556
17,554
2.700
1,060
1,000
18.302
1,000
24,983
Wednesday
out, the unsettlement being brought about by the drive Thursday
3.000
478
5,000
17,496
25,000
21,251
3,000
350
1.836
1,000
4,099
on the tobacco shares. The changes at the close were Friday
3113.700
3.982
$19,000
slightly on the up side and included among others, American
70,999
$30,000
94,301
Total
Can, 2 points to 515 , American Tel. & Tel., 23 points to .......— --..,.. .........A lao nos 510 nan 175 752 125 500 4.800 $24.800
%
%
1053 ,Atchison, 33% points to 44, Auburn Auto, 23% points
%
to 433%, Bomberger, pref., 3 points to 80, J. I. Case Co.,
23% points to 423%, Eastman Kodak, pref., 5 points to 125,
COURSE OF WANK CLEARINGS.
Hershey Chocolate, pref., 3 points to 80, Union Pacific, 23
%
Bank clearings this week will again show a decrease as
%
points to 653 , Tide Watet Assoc. Oil, pref., 35 points to compared with a year ago. Preliminary figures compiled
%
443%, Allied Chemical & Dye, 13% points to 733%, Inter- by us, based upon telegraphic advices from the chief cities
national Harvester, 13% points to 223 , S. S. Kresge Co., of the country, indicate that for the week ended to-day
%
3
3 points to 99, Lambert Co., 13% points to 37%, and J. C. (Saturday, Oct. 22), bank exchanges for all the cities of the
Penney pref., 3 points to 87h.
United States from which it is possible to obtain weekly
Following early strength, stocks lagged all along the line returns will be 16.1% below those for the corresponding
on Wednesday. Around noon considerable profit taking was week last year. Our preliminary total stands at $5,126,in evidence and while the railroad shares maintained a fairly 878,071, against $6,112,310,402 for the same week in 1931.
steady showing, the rest of the list worked down to lower At this center there is a loss for the five days ended Friday
levels. Trading was on a small scale, the turnover for the of 5.5%. Our comparative summary for the week follows:
day reaching about 1,303,330 shares. Railroad issues were
Per
Clearings—Returns by Telegraph.
the leaders of the early advance and a few of the outstanding
Cent.
1931.
1932.
Week Ending Oct. 22.
trading favorites showed modest gains at the close. Stocks
—5.5
$2,902.828,503 33,070,487.227
New York
239,578,867 —35.1
closing on the side of the advance included among others Air Chicago
155,406,878
282.000.000 —20.2
225,000,000
Allied Chemical & Dye, Philadelphia
Reduction 13% points to 583%;
280.000,000 —33.9
185,000.000
Boston
70,722.563 —24.8
53,176,882
4
3 points to 763%; American Can,23% points to 533 ;Atchison, Kansas City
68,000.000 —17.8
56.000.000
St. Lbuis
107,120,000 —25.7
points to 453%; Atlantic Coast Line, 2 points to 24; San Francisco
79,602,000
13%
No longer will re port clearings.
Los Angeles
4
Auburn Auto, 23% points to 453 ; J. I. Case Company, 33% Pittsburgh
95.324,719 —38.3
80,734.935
83.405,981 —48.0
43,401.375
points to 46; Coca Cola, 33% points to 97; Consolidated Gas Detroit
77.748,526 —30.2
54,270,310
Cleveland
55.555,630 —18.4
48,420.138
points to 59; Delaware & Hudson, 4 points to 67; Del- Baltimore
23%
41,113,791 —27.9
29,858,387
New Orleans
4
aware Lackawanna & Western, 33% points to 343 ; New
$3,811,895.388 34,471.057.304 —14.7
Twelve cities,
4
Haven pref., 33 points to 30; Public Service of N. J., 23% Other cities, fivefive days
843,979,395 —28.5
480,503,005
days
points to 493%; Union Pacific, 33% points to 683%; Western
34,272,398.393 35,115.038,699 —18.5
Total all cities, five days
997.273,703 —14.8
%
854,479,678
Union Telegraph, 23 points to 31; United Air & Transport, All cities, one day
36.112.310.402 —16.1
2 points to 273%; North American Edison pref., 23% points to
SA 1211 a75_071
Total all oltIon for %gook
82% and International Business Machine,33% points to 933%.
Complete and exact details for the week covered by the
Price movements were somewhat irregular on Thursday, foregoing will appear in our issue of next week. We cannot
though most of the active stocks retained their early gains furnish them to-day, inasmuch as the week ends to-day
despite the frequent reactions. Railroad shares continued (Saturday) and the Saturday figures will not be available
to attract considerable speculative attention and showed until noon to-day. Accordingly, in the above the last day
some gains at the close. The changes for the day were small of the week has to be in all cases estimated.
and largely on the side of the decline. Prominent among
In the elaborate detailed statement, however, which we
the recessions were such stocks as Air Reduction, 1 point present further below, we are able to give final and complete
to 573%; American Tobacco, 3 points to 63; J. I. Case Co., results for the week previous, the week ended Oct. 15. For
4
2 points to 44; General Motors, IH points to 133 ; Gold that week there is a decrease of 38.5%, the aggregate of
Dust pref., 3 points to 99; Peoples Gas,1 point to 70; United clearings for the whole country being $4,084,700,689,
/
States Steel, 18s points to 383%, and Liggett & Meyers B, against $6,638,829,121 in the same week in 1931. Outside
23% points to 573%•
of this city there is a decrease of 36.1%, the bank clearings




Financial Chronicle

at this center recording a less of 39.9%. We group the
cities according to the Federal Reserve districts in which
they are located, and from this it appears that in the New
York Reserve District, including this city, the totals show
a contraction of 39.9%, in the Boston Reserve District of
44.3%, and in the Philadelphia Reserve District 31.8%.
In the Cleveland Reserve District the totals are smaller
by 34.5%, in the Richmond Reserve District by 28.7%
and in the Atlanta Reserve District by 29.2%. The Chicago
Reserve District suffers a loss of 43.4%, the St. Louis
Reserve District of 29.7%, and the Minneapolis Reserve
District of 21.2%. In the Kansas City Reserve District
the decrease is 32.2%,in the Dallas Reserve District 39.4%,
and in the San Francisco Reserve District 34.2%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.

Week Ended Oct. 15.
Clearings at
1932.

1931.

1932.

Inc.or
Dec.

S
$
%
831.923,411
120.688.572
-44.3
-39.9 6,430.317,593 11,822.225,869
736,474,089
518,591,649
-31.8
392.782.544
566.909.228
-34.5
184.569,575
-28.7
219.079.475
237,848,904
160.785,496
-29.2
761.577,660 1.1E6.219,823
-43 4
247,232,486
184.378915
-29.7
124,112.952
164.327.829
-21.2
256.949.500
195.520,533
-32.2
65,453.483
126,454,246
-39.4
317.728.229
487,852.889
-34.2

Federal Reserve Discs.
$
186 B566011---12 cities
197.325.070
2,572,046,367
2nd New York..1.2 "
344,074,020
3rd Philadelphia 10 "
4th Cleveland.... 8 "
179.974,029
515 Rlehaumd-- 6 "
99,649,459
82.655.048
6th Atlanta_ _...11 "
271,458,378
715 Chicago._....20 "
89.586.716
8th St. Louis... 6 "
73.184,824
8411 Minneauolis 7 "
88,008,463
10th Kaasaselty10 "
33,468.847
llth Dallae____ 5 "
153,259,466
12th San Fran..14 "

$
354,477,641
4,277.587,830
357,789,606
274.887.414
139.810,319
116.665.322
479,459.511
127,379.11
92.593.602
129,709.831
55.297,952
232.920.97•

Total
119 cities
Outside N. Y. C1/1
,

6,638,829,121 -38.5
2.489,278.825 -38.1

4,084,700,689
1.589.862.118

Ws ...Am

n'll , tol
rry

1929.

1930.

.1. ins "All

-as

9,856,633.231 16.883.397.74
9
3.582.911.188 5.320,403,656
442.513.050

514.438.749

Week Ended Oct. 15.
Cleartnas at
1932.
First Federal
Maine-Bangor__
Portland
-Boston
M899.
Fall River_
Lowell
New Bedford
Springfield_
Worcester
Con8.-Hartford_
New Haven_ _ _
R.I.-Providence
N.H.-Mancheer
Total(12 cities)

1931.

Ins. or
Dec.

8
3
%
-BostonReserve Diat riot
365.312
724403 -49.6
2.000,463
2.897.445 -31.0
170.977,989 310.807.900 -45.0
588,868
931,307 -36.8
298,713
460,747 -35.2
596.487
1.234,406 -51.7
2.584,896
4.849.876 -46.7
1,630.828
2.944.382 -44.6
6.130.063
9,921,537 -38.2
4.020.126
8,953,882 -42.2
7.734.000
12,258.500 -36.9
397.325
493.056 -19.4
197,325,070

354.477.641 -44.3

Second Feder al Reserve D istrict-New
-Albany..
3.929.579
N. Y.
6.433489
Binghamton...
081.529
981.777
Buffalo
21,396.104
38.312.979
Elmira
497,925
988,168
Jam66town....
488,959
876.560
New York.... 2,494,733,573 4,149,550,296
Rochester
5,449,550
9,098,345
Syracuse
2485.764
4,594,294
COWL-Stamford
1,897,357
2,797.100
N. 2.
-Montclair
517,262
1.070,180
17,091,957
Newark
28,469.46•
Northern N. 2_
22.368.155
34.366.996

1930.
8
654,799
3,545,765
468,658,495
1,045,499
535.634
1,288,221
4,960.799
3,569.92
13.993.078
8,014,833
13,699.600
722.932
520,688,572

1929.
6
677,487
4,395.705
749.000.000
1,675,148
1.492.219
1,872,763
6.400.760
5,011,920
25.859.053
13,196,557
21.396,600
945,219
831,923,411

York
-39.4
9.621,436
8,184.582
1.422,845
-30.0
1,615.931
-44.2
47,483.540
87.363.068
-49.5
1.083,721
1,103,556
-44.2
1.150.642
1.500.000
-39.9 6.273,722,033 11562,994093
-40.1
10,116,410
114,807.948
-35.0
5.249,045
9,690.250
-32.2
5.024.8
4.975.207
1.295.913
-51.7
1.063.392
33,009,917
45.103.406
-40.0
41.137.259
79.824.376
-34.9

Total (12011(09 2,572,046.367 4.277,587,830 -39.9 6.430,317.593 11822.225889
Third Federal Reserve Dist rict-Philad elahlaPa.-Altomm
1,237.032
269,681
595,632 -54.7
Bethlehem....
3.578.395
e2,309,63
3,362,589 -31.3
Chester
1,106,009
766.138 -68.9
238,018
1,818,058
Lancaster
1.103,692
2,572.427 -57.1
Philadelphia... 232.000.000 335.000.000 -30.7 493,000.000
Beadle-,
3,129,156 -38.1
1,935,6
92
3,387,2
Scranton_
4,659.055
2,175.747
4.208.21 -48.3
Wilkes-Barre
2.237.924 -41.8
1.301,76
3.956,235
York_
2323,593
936.856
1.558.523 -38.0
N.2.
-Trenton_
4.360,9.1 -59.3
1.773.000
3.727.911
Total(ID cltinr,

244.074.020

357,789,006 -81.8

518,591,649

1,593,816
5.395.823
1,602.709
2.496.769
700.000.000
5.587,172
7.147.297
5.000.000
2.326.199
5,334.304
736,474.089

Fourth Perim al Reserve D Istrict-Clev eland
01110
-Akron....
6299401
4,352,000
2.674.',, -884
6,076,000
Canton
b
b
b
b
b
Cincinnati
41,254.000
55.924576 -26.2
99.392,303
67,405,545
Cleveland
02.138,535
95.026.888 -34.6 137.749,858 199.088.204
Columbus
7.623,900
9,940.400 -23.3
22,411.100
17.256,900
Mansfield
c746,863
1.215,170 -38.5
2.219.517
1,951345
Yowiestown _ _
b
b
b
b
b
Pa.-PIttsburgh _
87.913.731 110,106,380 -38.3 164066.996 237,742.104
T,tal(6 cities)_

179.974.029

274.887,414 -34.5

392,782,544

566,909,228

Fifth Federal Reserve Dist riet-Richm ondW.Va.-FlunVg'n
316,471
533.637 -40.7
Va.-Nerfolk
2.349.000
3.201,884 -26.8
Richmond ._ _.
24.091,721
35.329,215 -31.8
--Cluirlexton
.700 uno
B.C.
1.742.5993 --59.18
-Baltimore
54,317.680
844.
75.063.732 -27.6
D.C.-Washin6'n
17,875.607
23.939,268 -25.3

1,179.337
4,201.041
49.295.143
2 621 492
98.545.499
28.718,063

1,494.726
4,808.881
57,180.000
2.863 492
122.240.326
30,492.050

Total(6 cities).

99,649,459

139.810,319 -28.7

184,569,575

219,079,475

Sixth Federal Reserve Dist rict-Atlant a
-Knoxville
2 058.253
3.614.805 -43.1
Tenn.
9,198,867
Nashville
11,792,317 -22.0
28 300 000
42.600.000 -33.6
Ga.- Atlanta-.
968.198
1.430.719 -32.3
Austasta
434.591
842.643 -48.4
Macon.
Nla.-tacienvfne.
8.217339
11.202,127 -44.5
6.la.-Btrming'm.
8.452.476
11,969,130 -29.4
853.399
1329.801 -24.5
Mobile
1.370000
1.243 000 +10.2
1SiMs.-Jaeks3n_
134,439
158.207 -15.0
Vicksbur4
24.667.336
30.682.573 -19.6
L41.-NewOriesn9

2.744.181
21,356,510
50 236 777
2415.943
1,510478
13,258.145
17.991.344
2.040.046
2.447 000
200.310
46.774.162

3.460472
28.922.205
70.000 000
3.760.661
3,005.576
17.813.664
31,398.535
2,987,488
2.500.000
371.458
73.630.447

116.665.322 -29.2

160.785.496

237 948.904

Total (51016109)

82,655.048




Inc. or
Dec.

1931.

271,458,378

479,459,511 -43.4

Eighth Federa Reserve DI. trict---St. 1.0 ulsInd.
-Evansville_
Mo.-St. Louis_ _
56.300,000
88.400.000 -38.3
18.797.332
21,323,472 -11.8
Owensboro. _
11
Tenn.-Siemplils
13,884.127
16,847,202 -17.6
111.-Jackeville_ _
100,348
128,57 -22.0
Quincy
504.911
679.863 -25-7

1930.

1929.

761,577,660 1,186,210,823

124,100.000
35,210,329

154400,000
48,628,689

23,847,107
143,699
1,057400

41,671.929
446,252
1487,616

184,378,935

247,232,486

Ninth Federal Reserve Die trict.-Minn espolisMlnu.-Duluth_
2.637.479
2.973.232 -11.3
2.561,137
50.410,262
Minneapolis_ _
83,256,87 -20..
82,880,160
St. Pan'
16.876.732
20,848,889 -23.8
27.751,872
N. Dak.-Fargo,
1420.008
2,148,931 -24.6
2,443,985
S.D.
-Aberdeen.
494,450
732,943 -32.5
1,116,901
Mont.
374.449
-Billings _
496.618 -24.6
846.397
Helena
1,171.444
2,436,119 -27.3
3,512.500

6,178,850
116,508,397
30,539,278
3,166,851
1,495.965
1,281.490
5,157.000

Total (5 cities).

89,586,718

Total(7 cities).

We now add our detailed statement, showing last week's
figures for each city separately, for the four years:

I

$
Seventh Feder al Reserve D hstect-C hi cago
Mich.
-Adrian _ _
199,405
162,720 -40.1
97,497
356,751
Ann Arbor_
468,003
790,945
803,526 -41.8
995,204
Detroit
50,673,025
96,559,357 -47.5 150.177,550 221,119.206
Grand Rapids_
2.160,471
5,999,636
4051,767 -46.7
6,894,097
Lansing
3.5(.0.722
2,633,356 -89.8
274,100
4.073,774
Ind.
-Ft. Wayne
848,304
2446,611
5,418,748
1,697,113 -50.0
Indianapolis.- _
11,080,000
21,790.972
14,805,000 -25.2
25,043.000
South Bend_..
843,321
2,306.028
1,188.972 -29.1
3,638,105
Terre Haute_ _ _
2,996,330
4,739,116
4,362.621 -31.3
5,423,492
Wis.-Milwaukee
13,114,924
23,445,623 -44.1
29,120,013
39,842,139
Iowa-Ced, Rap_
668,868
2,154,484 -89.0
3,265,457
3,555,464
Des Moines_ _
4,912,443
6.953,134 -29.4
7,881,522
11,402,232
Sioux City_ _ _ _
2,098,511
6,896,432
3,622.312 -42.1
7,295,043
Waterloo
890.174
1,780.820
2,351.577
111.-Bloomlon_
940,105
1,772,415
1,282,532
2,500.000
Chicago
176.191,192 307,822,683 -42.8 508.649.640 830,370.741
Decatur
428,596
740.224 -42.1
1394,369
1,413.268
Peoria
1,817.246
2,826.686 -35.7
7.132.945
4,179.270
Rockford
484,172
2,843,167
1,317,197 -83.2
4,054,569
Springfield_
1,360.670
2,140450 -38.4
3,339,478
2,483,370
Total(20 cities)

Week Endel Oct. 15 1932.

Oct. 22 1932

73.184,824

127,379.114 -29.7

92,893,602 -21.2

124,112,952

164,327,829

--61.2

232,235
460.373
4,344,061
44.076,271
3,117,245
6,928,253
128,682,814
4,955,600
1,071.408
a
1451,373

391,930
700,000
4,635.569
60,772.840
3.399,511
10.000400
167,578,585
6,415.667
1,278,417
a
1,788,131

129,709,831 -32.2

195,520,533

256,949,500

Eleventh Fede rat Reserve District.- D alias.
Texas
708,898
1,654,127 -57.2
-Austin _
27.982.696
39.987.265 -30.0
Dallas
2.771,000
Galveston
3,261,000 -15.0
2.006.253
La.
-Shreveport.
3,147.497 -36.3

1,839.256
45.570.122
4.008,000
4,647 735

2,550.229
90.1100.000
9.329.000
6 920 320

65,453,483

126,354,240

Tenth Federal Reserve Dist rIct.-Kansa
Neb.-Fremont
104.666
178,183
Hastings
129.079
138.786
Lincoln
1.734,124
3,166,837
Omaha
19.537,967
31,56.0,348
Kan.
1,359.894
-Topeka
1,818,502
Wichita
3.858.804
4.921,909
Mo.-Kans, City
57,884.126
82,658.459
St. Joseph_ _ _ _
2,384050
3,237.414
Colo.
-Col. SIRS.
487.873
950.758
a
a
Denver
Pueblo
527,880
1.090.635
88,008,463

Total (10 cities)

33.468,847

Total(5 cities)_

8 City.

--41.3
--7.0
--45.0
--36.1
---25.1
--21.8
--30.0
---26.4
--48.7

55.267,952 -39.4

Twelfth Feder al Reserve D Istrict-San Franci SCO-20.611.367
Wash.
31.354,768 -34.3
-Seattle_ _
41,141,025
5,092.000
Spokane
9,392.000 -45.8
13317,000
543.328
Yakima
1,013,003 -46.4
1,512.547
15,647.985
Ore.
27,609,092 -43.3
-Portland _
36.982408
8.669.032
Utah-S. L. City
13,357,104 -35.1
19.057,836
Cal.
2.717,587
4.456,803 -39.1
-Long Beach
6,905,365
No longer will report dearth 11S.
Los Angeles_
2.669.530
Pasadena
4,234,283 -37.0
5.709.923
5.945.515
Sacramento...
6,699,507 -11.3
6, 12,504
1,
San Diego__ _
2.708,426
3.788,887 -28.5
5485,953
San Francisco_
84.296.317 123,705,781 -31.9 171.056.920
San Jose
1.612.540
2,722,740 -40.8
4.075,052
Santa Barbara.
969,269
1.579,525 -38.6
1.982,324
758.793
Santa Monica.
1,545,686 -50.9
2,017.372
1,027.787
Stockton_
1.439,1400 -28.6
1.971.900

72.508,782
10.047.000
:.044,521
72,966,359
27.346,456
10,071,411
7.880.661
7,712,126
11.030.937
262401.724
5.762.388
2474,073
2.506.572
2,700,000

Total(14 cities) 153.269.488 232,900,979 --34.2 317,728,229
487,952,889
Grand total (118
4.084 700.689 .638.829.121 --38.5 9 856 833 221
cities)
16883397749
Outslde N.Y.__ 1 589.962 116 2 489.278 825 --36.1 3.582911.188
5.320.403,658
Week Ended Oct. 13.

Clearings al
1932.

s

CanadaMontreal
Toronto
Ninnlime
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Bertha
Brandon
Lethbridge...-.
Saskatoon
Moose Jaw
Brantford
Fort William
New Weatodneter
Medicine Hat
Peterborough
Sherbrooke
Kitchener
Windsor
Prince Albert....
Moncton
Kingston
Chatham
Bar da
Sudbury
m.o.,/10 arI•lae‘

85.483.89
69.668.454
45.909.875
10,424.230
3,433.067
3.541,541
1.022,590
2.684.778
6,019.946
1,273,621
1,201.5
1479.196
3,416.956
4,115.486
329,95
337.822
1,683,936
497.015
739,269
483.437
382.979
199.068
486,2/34
547,092
906.704
1,719,076
231,700
505.903
463.468
365.660
299.957
387,956
Oil

29.2 401

1931.

$
86.837,527
73.394,263
36407.395
11.888.208
6.288,445
4,574,334
2.654.886
3,311,9
4,763.506
1.734.226
1.800.991
2,230.890
3,340,839
3,749.790
401.97
398.758
1,499.95"
473,842
718,065
506.371
477,963
249,487
566,171
639,147
859.066
1.961.889
275,881
650.629
699.091
403,076
321.125
671,452
250 Ina nAst

Inc. or
Dec.

i4
.1 111 4
.4_+114 4
_ _ill+M
1+1
L
wvwwww..w.A.w+.6.ww44wwcotzww rw—wkiw.-10 mO
kboi414W04.6:...00'140io0'WWW:p.M.W.L.

2782

_g

a

1930.

$
161,034,473
127,448,424
62.292.366
17.754.072
7,981.194
7,013.789
4.219.242
6.058,199
8445.499
2.496.445
2.629,686
3.285.844
6,476.833
6,079,915
616,777
588.710
2,599.876
1412,810
1,148,190
854.675
767,169
358.512
940.177
936,934
1,447,764
2,889,294
405,658
986.433
852.465
615.279
637,134
1.251,538
AII0 KIR nen

1929.

$
169.527.067
134,988.303
87433418
25465,537
3.2147.115
8.003.209
2,999,161
6,038.297
15,733.623
2,722.085
3,621.159
3,494.1499
8.073.283
10,197.728
820.634
1.142.788
4355.992
1.659.901
1,435,860
1.285.660
1,002,836
751.500
972.746
1.133,710
1,519414
5,649,713
714,127
1,177,643
901.100
701.221
982,037
el A ARO ,An

b CU', rilic 1.mine ..... fUlletIon 111/ al
prment.
c ("Mathis house reopened In February. d cures smaller due to merger of two
largest bank. •Due to merger of two lead:ng bank», thls figure reprenents
etch/mig9 of checks between fewer institutions f Only one bank open. No Meat
,
Mg (Wires available. • Eat:mated.
8 N,,looter rep. • La

Volume 135

THE CURB EXCHANGE.
Irregularity has been the dominating feature of the dealings in the curb market during most of the present week,
and while there have been frequent periods of moderate
strength these have usually been followed by a sweep of
realizing that has cancelled most of the gains. Oil shares
and public utilities were moderately strong on Tuesday and
Wednesday, and specialties have shown slight improvement,
but the changes for the week have generally been within a
comparatively narrow channel. Trading has been dull
and some short selling has been apparent from time to
time and only a handful of trading favorites were able to
hold their gains. On Saturday most of the industrials were
fairly firm, Electric Bond & Share leading the power group
to slightly higher levels. Aluminum Co. of America was
higher at its peak, but lost part of its gain and closed only
fractionally higher. Newmont Mining was higher and a
few specialties showed improvement. Oil shares lagged
behind and showed little change at the close. Leaders were
generally irregular on Monday as the curb list moved upward
and downward, though in the final hour some of the early
losses were cancelled. United Light & Power cony. pref.
was off about 2 points at one time and American Beverage
dropped off when pool support was withdrawn. Singer
Mfg. Co., A. 0. Smith and Newmont Mining Co. were the
weak features of the specialties section. In the oil group
Standard Oil of Indiana showed a fractional gain, while
Gulf Oil of Pa. and International Petrol( um were both lower.
Public utilities moved to the front on Tuesday as renewed
buying flowed into the Curb Market. Electric Bonda
Share and American Gas & Electric were fairly strong anil
regained part of the lasses of the previous session. Citgs
Service, on the other hand, was off on the day. The industrial sections moved forward under the guidance of Aluminum
Co. of America, which was higher by 2 points at it, top for
the day, though it lost part of its early advance and closed
at 523/2, with a net gain of 1 point. Miscellaneous stocks
also were more active and low-priced issues like Gold Seal
Electric and National Belles Hess registered good improvement. Oil stocks gained ground and substantial recoveries
were scored by tandard Oil of Indiana, International Petroleum and Gulf Oil of Pa. The buying side was the most
conspicuous on Wednesday, though the changes continued
within a narrow range. Aluminum Co. of America was in
good demand and moved up to 57 at its top for the day.
Electric Bond & Share fluctuated over a narrow range but
closed with a substantial gain. Oil shares were in moderate
demand, Pure Oil pref. featuring the group with a gain of
2 points at 59. Gulf Oil of Pa. moved around 30 with little
change and Standard Oil of Indiana was fractionally higher.
Prices on the Curb Exchange lacked definite trend on Thursday, though the gains were, on t e whole, somewhat in the
majority. Trading was devoid of special feature and public
interest was divided be ween a handful of power stocks and
a few specialties. American Beverage was under pressure
most of the day and closed fractionally down and Aluminum
Co. of America had a rather wide downward swing, but
rallied well before the close. Oil shares were lower, Gulf
Oil of Pa. and Standard Oil of N. J. slipping back a point or
more. Industrials, on the other hand, were fairly steady,
Parker Rust Proof, Glen Alden Coal and United States
playing Card holding around their previous close.
• On Friday,the curb market developed a decidedly reactionary tendency and stocks tumbled downward from fractions to
4 or more points. Utilities reflected moderate liquidation,
a large part of which centered around Electric Bond and
Share, though American Gas and Electric, and Cities Service
were also under pressure. Aluminum Co. of America' was
the weak spot of the industrial list and dipped 234 points
to 5334 and Great Atlantic & Pacific Tea Co. slipped back
about a point at the close. Oil shares moved within a
narrow range. The changes for the week were largely on
the side of the decline and included among others, American
Beverage, 7 to 5; Aluminum Co. of America, 55 to 5334;
American Gas & Electric, 27% to 273; American Light &
Traction, 18 to 173.; American Superpower, 5 to 434;
Associated Gas & Electric "A", 23 to 2; Atlas Corp., 73%
3
to 6/i; Central States Electric, 3/i to 3; Cities Service,
334 to 33; Consolidated Gas of Baltimore, 653/i to 63%;
s
Cord Corp., 45/ to 4%; Deere & Co., 11 to 1034; Electric
and Share, 2634 to 2234; Hudson Bay Mining, 3 to
Bond
234; International Petroleum, 93% to 8%; Pennroacl Corp.,
%
23 to 134; A. 0. Smith, 243 to 23; Swift & Co., 834 to 8;
%
United Founders, 13 to 19'; United Gas Corp., 234 to




2783

Financial Chronicle

3
29/8; United Light & Power "A", • 5 to 4%, and Utility
Power, 29/s to 23/8.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE

Week Ended
Oct. 211932.

Stocks
(Number
of
Shares).

Bonds (Par Value).
Foreign
Foreign
Domestic. Government. Corporate.

Saturday
Monday
Tuesday
Wednesday
Thursday
Friday

75.325 51.944,000
95.160 2,190,000
111.500 2.818.000
145.105 3.003.000
111.040 2.919.000
150,020 3.086 000

$31,000
130 000
142 000
113.000
125 000
125 000

Total

688 150 815 960 000

8666 000

Week Ended Oct. 21.

Sales at
New York Curb
Exchange.

8625 000 817 251.000
Jan. 1 io Oct. 21.

1932.

1931.

1,168,121
688,150
Stocks-No,of shares_
Bonds.
815,960.000 616,832.000
Domestic
530 000
666 000
Foreign Government_ _
790 000
625.000
Foreign Corporate

48,471,368

91,706,932

8706.890.100
26 25)1000
50.992 000

8738.887.000
24.268 000
32,112 000

$17.251,000 $18,152000

3784173.100

8795.267 000

Total

1932.

1931.

Total.

841,000 82,016,000
133.000 2.453.000
128.000 3 088.000
98.000 3.214 000
116 000 3 14)0000
109.000 3.320 000

THE ENGLISH GOLD AND SILVER MARKETS.
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
Oct. 5 1932:

GOLD.
The Bank of England gold reserve against notes amounted to n39,421,213 on the 28th ult., as compared with £139.421,213 on the previous
Wednesday.
The substantial amounts of bar gold offered daily in the open market
have been taken for the U. S. A. and the Continent.
Quotations during the week:
Equivalent Value of
Per Fine
£ Sterling.
Ounce.
14s. 2.9d.
119s. 4d.
Sept.29
14s. 2.7d.
5d.
119s.
Sept.30
14s. 3.1d.
119s. 24.
Oct 1
14s. 3.04.
119s. 3d.
Oct 3
14s. 2.0d.
119s. 4d.
Oct 4
14s. 2.83.
119s. 4d.
Oct 5
14s. 2.9d.
119s. 3.7d.
Average
The following were the United Kingdom imports and exports of gold
registered from mid-day on the 26th ult, to mid-day on the 3d inst.:
Exports.
Imports.
£1,433.574
£1.330,004 France
British South Africa
380.150
1,454.371 U. S. A
British India
161.200
192.451 Netherlands
Australia
19.031
Poland
Straits Settlements and
7.334
136.754 Germany
Dependencies
5,182
83.680 Other countries
Salvage from SS. Egypt
62.644
British West Africa
25.786
New Zealand
28,378
Iraq
22.115
Anglo-Egyptian Sudan
10.213
Other countries

£2.006.471
£3,346,396
The Southern Rhodesian gold output for August 1932 amounted to
4V.254 fine ounces, as compared with 47,331 fine ounce's for July 1932 and
43.292 fine ounces for August 1931.
The SS. Narkunda is reported to have sailed from Bombay on Saturday
last bearing gold to the value of £513.000 consigned to London and £35,000
consigned to Holland.
SILVER.
Very quiet conditions have characterized the market during the past
week and no particular feature has presented itself.
-The Continent and China have worked both ways, while some purchases
have been effected on Indian account.
After remaining unchanged for four consecutive working days. quotations
4
have to-day risen 3-16d. for cash and ;id. for forward to 177 d Trind
17 15-164.. but at this level buyers seem satisfied for the moment.
There is little to justify the expectation of any considerable movemenrs
in the near future.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 26th ult. to mid-day on the 3d inst.:
Imports.
British India
Germany
Japan
Australia
Other countries

Exports.
£26,360 Yugoslavia
19,300 British India
14.351 Other countries
24.444
33,059
£117,514

Quotations during the week:

E25.785
12.200
5.825

£43,810

IN LONDON.
IN NEW YORK. .
Bar Silver per O. Std.
(Cents per Ounce .999 Fine)
Cash Delis. 2 Mos. Delis.
Sept.29__17 13-164. 17 15-16d. Sept. 28
27%
Sept.30--17 11-164. 17 13-16d. Sept. 29
27 7-16
Oct. 1-_ -17 11-164. 17 13-16d. Sept. 30
27%
Oct. 3.-17 1I-16d. 17 13-164. Oct. 1
27 7-16
Oct. 4..- -17 11-16d. 17 13164. Oct. 3
Oct. 5.-17 Nd.
17 15-16d. Oct. 4
i711
Average._ -17.740d.
17.8544.
The highest rate of exchange on New York recorded during the period
from the 29th ult. to the 5th inst. was $3.46 and the lowest $3.445£•
INDIAN CURRENCY RETURNS.
(In Lacs of Rupees)
Sept. 30.
Sept. 22.
Sept. 15.
Notes in circulation
17.577
17.553
17.526
Silver coin and bullion in India
11,529
11.507
11,477
Gold coin and bullion in India
1.134
1.123
1.123
Securities (Indian Government)
4.914
4,923
4,926
The stocks in Shanghai on the 1st inst. consisted of about 118.800.000
ounces in sycee, 3240.000.000 and 3.780 silver bars, as compared with about
116.500.000 ounces in sycee, $240.000.000 and 3.980 silver bars on the
24th ult.
Statistics for the month of September last are appended:
Bar Silver
Bar Gold
Cash Deli,. 2 Mns. Delis. per Oz. Fins.
Highest price
.18 13-16d. 18 15-16d. 119s. m.
Lowest price
17 9-16d.
17 11-16d. 117s. lid.
Average price
17.9964.
18.115d.
118s. 7.84.

.61

2784

Financial Chronicle

ENGLISH FINANCIAL MARKET
-PER CABLE.
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows the past week:
Silver, p. oz d..
Gold, p.fine oz.
Consobi, 24%
British 5%_-British
%__
French Rentes
(in Paris)3% fr.
French War L'n
(InParls)5% fr.

Sat..
Mon.,
Oct. 15.
Oct. 17.
17 11-186. 17 11-166.
1198. 106. 1198.10d.
774
774
____
1024
102%

Thurs..
Frt.,
Wed.,
TU68..
Oct. 19. Oct. 20. Oct. 21.
Oct. 18.
174d.
174d.
1746.
174d.
1208.26. 12133.104d. 1218.7d.
120s.
77
774
76%
76%
102%
.102%
1024
102%
102)i
102%
102%
102%

81.50

80.60

80.70

80.40

79.90

100.60

100.20

99.60

99.20

98.60

The price of silver in New York on the same days has been:
Silver in N. Y.,
per oz. (eta.)

27%

27%

27%

27%

27

27%

THE BERLIN STOCK.EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
• April 29 1932 after having been closed by Government decree
since Sept. 18 1931. Prices suffered heavy declines. Closing
prices of representative stocks as received by cable each day
of the past week have been as follows:
Oct.
15.

.

Oct.
17.

Reichabank (12%)
Berliner Handels-Gesellschaft (4%)
Commerz-und-Privat Bank A. G.(0%) ..
Deutsche Bank und DIseonto-Ges.(0%)...
Dreedner Bank (0%)
Aligemeine Elektrizitaeta Gee.(AEG) (0%)
Geefuerel (4%)
Siemens & Halske(9%)
I. G. Farbenindustrie (7%)
HoltSalzdetfurth(9%)
day
RheinIsche 13ratinkohle (10%)
Deutsche Erdoel(4%)
Mannasmann Roehren (0%)
Hapag (0%)
North German Lloyd (0%,
Dessau Garr 7%
Berliner Kraft U. Licht 10%
Hamburg. Elektr.-Werke 84%

128
91
53
75
62
33
72
119
95
185
167
74
52
17
17
90
115
98

Oct. Oct. Oct.
19. 20.
18.
Per Cent of Par
126 125 125
90
90
90
53
53
53
75
75
75
62
62
82
32
31
32
70
69
71
118 118 118
94
94
94
186 183 182
185 161
180
71
72
71
51
50
50
16
17
17
17
17
17
88
69
88
114 113 113
97
98
97

Oct.
21.
125
90
53
75
82
32
70
117
94
162
161
71
51
16
17
88
114
97

In the following we also give New York quotations for
German and other foreign unlisted dollar bonds as of
October 211932.
Bid Ask
Anhalt is to 1948
35
40
Argentine 5%. 1945, 810058
pieces
80
122
Antloqula 8%. 1948
24
Bank of Colombia, 7%.'47 27
2812
2812
Bank of Colombia, 7%.'48 27
Bavaria As to 1945
4712 4912
Bavarian Palatinate Cons.
35
Cit. 7% to 1945
40
Bogota (Colombia) 834.'47 115
18
/5
Bolivia 8%. 1940
7
Brandenburg Elec.68, 1953 521/ 6312
314 34
Brazil Funding 5%,
British Hungarian Bank
132
34
748, 1962
Brown Coal Ind. Corp.
54
68
634s, 1953
Call (Colombia) 7%. 1947.
Callao (Peru) 74%. I94C
Ceara (Braz11) 8%, 1947..
CitySavings Bank. Budapest. 78, 1953
Dortmund MUD. HU'88.48
Duisberg 7%to 1945
Dusseldorf 78 to 1945
East Prussian Pr. 6/3. 1953_
European Mortgage & Investment 74s. 1966....
FrenchGovt. 548, 1937..
French Nat. Mall SS,88.'52
Frankfurt 78 to 1945
German AU. Cable 78, 1945
German. Building & Land
bank 834s%. 1948
Hamb-Am Line 64o to '40
Hanover Harz Water Wks.
8%. 1957
Boosting & Real Imp 78.48
Hungarian Cent Mut 713.'37
Hungarian Discount & Exchange Bank is, 1983...
Hungarian Ital Bk 7 48.'32
I Flat price.

19
18
J21/
/2712
32
36
33
43
3834
104
1041/
38
59i/
42
514
35
49
/32
125
f731/

Koholyt 645. 1943
Land M Bk. Warsaw 8,9.'41
Leipzig Oland P1 645.'46
Leipzig Trade Fair is, 1953
Luneberg Power. Light &
Water 7%, 1948
Mannheim & Paint 78. 1941
Munich 75 to 1945
Munlo Bk. Hessen,76 to'45
Municipal Gas & Elea Corp
Recklinghausen, 7e, 1947
Nassau Landbank 845,'38
Nat Central Savings Bk of
Hungary 7.4s, 1962....
National Hungarian & Ind.
Mtge.7%, 1948
Nicaragua, 5%, 1953
Oberpfalz Elec 7%, 194811 Ogdenburg-Free State 7%
10
to 1945
Pomerania Eleo 6%, 1953Porto Alegre 7%, 1988.
29 Protestant Church (Ger341/
many) is, 1948
39 Prey Bk Westphalia 68,'33
39 Rhine Westph Elec 75, 1936
45 Rom Catb Church 1345.'48
RC Church Welfare is,'48
3734
108 Saarbruecken M Bk 135. '47
10514 Salvador 7%, 1957
39 Santa Catharine (Brazil)
81
8%, 1947
Santander (Colom) 75, 1948
45 Sao Paulo (Brazil) 88, 1947
584 Saxon State Mtge 68, 1047_
Slem & Halake deb 68, 2930
39 South Amer RYs 6%, 1933.
50 StettinPub UM 78, 1946..
34 TucumanCity Is, 1951Vamma Water 5345, 1957281/ Vesten Elea Ry 75, 1947
781/ Wurtenberg Is to 1945

810 Ask
42
44
52
58
504 5312
373 39
4
41
49
43
35

45
53
51
40

40
57

43
62

/39

41

128
25
40

45

35
43
17

40
45
10

ss

40
60
56
84
48

2913
sa

57
541/
61
44
/14

71
16

554
144
11 112 1412
lo
18
56
as
300 325
4512 471/
47
50
12
15
71
32
48
51

PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:
Oct. 15 Oct. 17
1932. 1932.
Francs. Francs.
of V-Ance
Bank
11,300
Banque de Padget Pays Has-.
1,420
Banque d'Union Parisienne
375
Canadian Pacific
358
Canal d3 Suez
15,085
Cie Diatr d'Electricite
2,000
Cie Generale dEectrialte
2,010
Cie Generale Transatiantique__
83
Citroen B
444
Comptolr Nationale d'Escompte
1,100
Coty Inc
170
Courderes
356
Credit Commercial de France..
638
CreditFonder de France
Holt4,550
day
Credit Lyonnais
1,960
Distribution dElectricfte Is Par
1.910
2,090
Haul Lyonnais
812
Mier& Eleetdque du Nord
953
Energie Electrlque du Littoral
63
French Line
Galeries Lafayette
760
Gas Le Bon
440
Kuhlmann
720
L'Air Liquid°
350
Mines de Courrieres
440
Mines des Lens
1,470
Nord Ay




Oct. 18
1932.
Francs.
11,400
1,430
355
355
15,310
2.025
1,980
80
433
1,100
180
353
624
4,500
1,960
1,990
2,060
612
948
60

"iiso
440
730
360
450
1,450

Oct. 19
1932.
Francs.
11,100
1,390
351
358
15,150
1,912
1.930
60
415
1,090
180
352
820
4,480
1,940
1,980
2,080
819
938
60
89
430
720
350
440
1,480

Oct.20
1932.
Francs.
11,200
1,420
358
370
15,080
1,982
1.970
60
413
1,100
180
351
821
4,520
1,940
2,120
625
945
59
88
760
430
730
350
440
1,470

Oct.21
1932.
Francs.
10,900
1,360
355

1;i66
f,eijo
180
4,450
1,880
1,930
2,080
_
59
89
760
420
700
350
430
1,450

Oct. 22 1932

Oct. 15 Oct. 17 Oct. 18 Oct. 19 Oct.20.
1932. 1932. 1932. 1932. 1932.
Francs. Francs. Francs. Francs. Francs.
Orleans Ry
970
980
984
990
Paris, France
1,010 1.060 1,050 1,080
Pathe Capital..98
96
96
Pechlney
1ili 1,160 1,120 1,140
Reines 3%
81.50 80.60 80.70 80.40
Relies 5% 1920
120.80 120.40 120.10 119.70
Rentes 4% 1917
95.00
95.00 94.90 94.70
Rentes 5% 1915
100.80 100.20 99.60 99.20
Rentes 8% 1920
101.70 101.20 100.70 100.30
Royal Dutch
1,510 1.510 1,480 1,480
Saint Cobain C.&0
1,870 1,860 1,585 1,580
HoltSchneider & Cle
day
1,190 1,190 1.190 1.180
Societe Andre Citroen
420
440
430
440
Societe Francalse Ford
109
104
105
108
Societe Generals Fonder°
183
185
181
181
Societe Lyonnalse
2,075 2,100 2,095 2,125
Societe Marsellialse
615
810
600
600
Suez
15,000 16,400 15,200 15,200
Tubize Artificial Silk, prof
140
137
136
140
Union d'Electricite
790
no
760
770
Union des Mines
200
--_
---200
Wagon-Lita
71
70
70
70
CURRENT

Od.21
1932.
Francs.
1,090
Zia&
79.90
118.70
93.80
98.60
99.80
1,480
--

"Zia
103
181
---14,900
"iiii
---......

NOTICES.

-Announcement has been made of the formation of King, Watkins &
Co., Incorporated, with offices in The Merchants National Bank Bldg.,
Mobile, Ala., to conduct a general securities business, specializing in the
purchase and distribution of Alabama, Louisiana, Mississippi and West
Florida municipal bonds.
Porter King. Vic3-President and Secretary, has been connetted with
The Merchants National Bank of Mobile, Alabama, for the past
17 Years.
resigring as Vice-President of the Merchants Securities Corp.. the bank's
Investment affiliate, and Warner S. Watkins, President. has been a member
of the firm of Marx & Co., Bankers, of Birmingham. Alabama,
for the past
12 years, in active management of the Bond Department
of that firm.
-Elworthy & Co., San Francisco investment firm, announce the admission as a partner of Mon R. Tucker, who has been
a prominent figure in
Pacific Coast finance for a number of years. Mr.
Tucker formerly was
President of Bond & Goodwin & Tucker, Inc., and later
of Tucker Hunter
Dulin & Co., formerly among the largest underwriting
and distributing
firms in the securities business in the West. In that capacity
he was active
In the organization and financing of many of the
leading enterprises on
the Pacific Coast.
Fenner, Beane & Ungerleider announce that the
October issue of their
Private Wire Directory is ready for distribution to clients
who travel in
the territory served by the firm's numerous branch
offices. For the first
time permanent offices In the State of Florida are listed, these being located
in Jacksonville and Miami. The new directory also makes
the initial listing
of two branch offices In Londor, which have been added
recently to supplement the European business conducted by the firm's Paris
office.
-Gilbert Elliott & Co. announce the opening of a Government bond
department under the direction of Stephen O'Brien, who has
had experience
In the Government bond business with the firms of J.
P. Cahill & Co.,
Ludwig Robertson & Co. and Rhoades & Co. Ralph
Warren, formerly
of C.F. Childs & Co ,will also be associated with the firm
in its new department.
-Henry T. Dunn, formerly Vice-President and Sales
Manager of Ross
Beason & Co., has become associated with Lord, Westerfield
& Co., Inc.,
of New York, as Vice-President and will be In charge of
wholesale distriouLion of American Business Shares, the new Investment trust
of the restricted
management type recently formed under their sponsorship.
-Frazier Moss, formerly Vice-President and
Manager of the First
National Co. of Fort Worth, Texas, has formed the firm of
Frazier Moss &
Co., with offices in the First National Bank Bldg., Forth
Worth, Texas
and will conduct a general investment
business, specializing In utilities
and Texas municipals.
-Reports that the South Carolina National Bank are
discontinuing
their bond department are not correct, and the services of
the bond depart
ments of the bank at Charleston, Columbia and Greenville,
we are advised,
are being maintained as heretofore for the purchase and
salo of securities
for customers accounts.
Schatzkin & Co., members of the New York Stock
Exchange, 60
Broad St., New York, have issued their October
analysis of bank and
insurance stocks, listing 27 banks and trust companies
and 48 insurance
companies, with complete third quarter statements and
comparisons.
-Holt, Rose dc Troster,74 Trinity Place, New York have
prepared their
usual statistical analysis of the statements Issued by the
forty New York
City banks and trust companies In answer to the calls issued
for their condition as of the close of September.
John F. Andrews, C.P. A.,formerly Vice-President
Kaul Lumber Co..
Birmingham, Ala., has formed the firm of Andrews, Harden
& Co.,certified
public accountants, with offices In the Jackson Building,
Birmingham.
-Craigmyle, Marache & Co.. Inc., announce that George
Peterson is
now affiliated with them in their sales organization,
representing the Hem
In Worcester and surrounding territory.
-Wm C. Orton & co ,43 Exchange
Place, New York City, have issued
their November, 1932 comparative analysis of first Insurance companies
and
New York banks and trust companies.
_G, BL-p, Murphy & Co., members New
York Stock Exchange, as"
nouree the appointment of S. Earl Taber as Assistant Manager of their
branch office in Utica.
- K. Rice Jr. & Co., 120 Broadway, New York, have prepared a
J.
simplified analysis of third quarter figures on leading New York banks
and trust companies.
George F. Robinson, formerly with White, Weld & Co., is now associated with Townsend, Graff & Co., members New York Stock Exchange,
New York City.
-Little, Wooter & Co., municipal bond specialists, Jackson, Tenn.,
have removed their offices to the ground floor of 106 South Liberty Street.
Jackson, Tenn.
-Rudolph J. Teichner, formerly Manager of tho Unlisted Trading Department of H. G. Einstein & Co., has become associated with IIIIson &
Neuberger.
- R. Naething announces the formation of H. E. Naething & Co.,
with offices at 2 Rector Street, Now York to deal In investment securities.
-Howard G. DeVan has become associated with the New York office
of Wachsman & Wassail and will specialize in unlisted stocks and bonds.
-William M. Baer, Nicholas Fox and Donald L. Graham are now associated with Gilbert Eiiott & Co. lc their bond brokerage department.
Gilbert J. Postley & Co., of this city, announce the opening of a
Municipal Bond Department under the direction of D. C. Rhodes.

Financial Chronicle

Volume 135

-Bristol & Willett, 115 Broadway, New York, are distributing the
current issue of their "Comparative Bank Stock Statistics."
William R. Compton Co., Inc., 90 Broad Street, New York City,
have prepared an analysis on Joint Stock Land Banks.
Schmeltzer, Clifford & Co., 1 Wall Street, this city in their current
review discuss the outlook for the stock and bond markets.
-Chandler & Co. have moved their Buffalo office from the Liberty Rank
Building to new and larger quarters at 11 Niagara Street.
Italo Conte has become associated with Schmeltzer, Clifford & Co. as
Manager of their Foreign Stock Department.
-G. L. Ohrstrom & Co.. Incorporated, are distributing an analytical
survey of Oklahoma Natural Gas Corp.
-Ettinger & Brand announce the removal of their Chicago office to
105 W. Adams Street.
-Charles T. Abeles Jr. has Joined the investment department of }Bison
& Neuberger.

Count=daland WiscelliatteratsBeWS
Cleveland Stock Exchange.
-Record of transactions at
Cleveland Stock Exchange, Oct. 15 to Oct. 21, both inclusive, compiled from official sales lists.
Friday
Sales
Last Week's Range for
Sale
ofPrices.
Week
Par. Price. Low. High. Shares.

Stocks-

Aetna Rubber corn
*
2
2
Cleve Elec Ili6% Pre_ _100
' 103% 104%
Cleve Ry "Cts Dep"_ __ 100 4014 40% 40%
Cleve Worsted Mills corn_•
43( 4%
Cleve & Sandusky Brow100
6
5% 5
Dow Chemical com
•
34
36
Federal Knitting M illscom•
26
28%
Ferry Cap 6: Set Screw_ _ _ •
1%
1% 1%
Foote-Burt corn
•
9% 9%
General T & Rubber com 25
37
37
6% pref series A
100
40
40
Goodyear T & Robb com • 14% 14% 16%
.
Greif Bros Coop el A
•
10
10
Halle Bros pre(
100 44
44
48
Harbauer com
•
4
4
Higbee 1st preferred_ 100
15
15
Interlake Steamship coin.*
20% 20%
Kelley Isld L & Tr com_ ._•
10% 11
Lamson Sessions
•
4% 4%
Mohawk Rubber com_ •
2%
214 2%
National Acme com
10
3
3
National Refining com__25
434 434
Ohio Brass B
•
7%
734 7%
Richman Bros corn
• 26
25
26
Beiberling Rubber coin_ •
2% 3
Selby Shoe corn
*
11
11
Sheriff Street M kt coin_ _•
0
6
Sherwin-Williams com_25 21% 21% 23
Trumbull-Cliffs Furn pf100 65% 80
65%
Union Metal Mfg com_ ___•
4%
4
434
White Motor Secs Pref-100
75
75
Bonds.
Cleveland rtY 58
o par value.
Foreign

1933

84%

Range Since Jan. 1.
Low.

High.

15
1% July
3
62 91% Apr 104%
12 35
Apr 35
50
3 May
6
142
2
Jan
7%
333 21% July 40
109 18% June 28
35
1% June
2%
100
534 Jan
9%
40 18
July 4934
15 30
July 60
690
5% May 28%
10
7% July 13%
90 44
Oct52
30
2 May
6%
50 15
Oct 40
25
9% May 26
150
8 May 15
50
3% June
7
50
Jan
1
4
30
1% July
5%
60
3% July
834
25
5% July 13
213 14 June 31
150
1
May
44
4
50
7 Jun
12%
58
5
Aug14
342 19% July 35
1,682 41
May 65%
175
3 July
7
50 70 May 89

84% 8694 52,000

841$

Oct

95

Jan
Oct
Aug
Sept
Aug
Sept
Aug
Sept
Oct
Jan
Jan
Aug
Jan
Sept
Jan
Jan
Jan
Jan
Jan
Sept
Sept
Feb
Jan
Feb
Jan
Sept
Apr
Jan
Oct
Aug
Apr
Nov

Trade of New York-Monthly Statement.
Merchandise Movement at New York.

;Iona.

Imports.
1932.

1931.

January_. 85,450,212 87.278,807
February _ 68,324,224 83.741.723
March-- 67.088.157 101,718.797
April
6E785.558 90,924,314
May
52,497,496 83.714.133
June
52,482.112 89,9132.205
July
37.656,849 84,823,090

Customs Receipts
at
New York.

Exports.
1932.

,

44,388,825
47,040.635
48,261,354
42,176.624
38.337.589
38.817.616
35,157,319

1931.

1932.

94,604,323
91,336,302
85.927.653
80,714,213
74.505,792
74.235,131
67,058,129

13,177,186
12,756,949
12,047,238
10,74E892
9.019.643
9,079.203
7.704,834

1931
15.764.232
15,741,196
17,612,788
14,702.264
13.569,915
14,455,069
17,237,635

Total-- 405,284,608 22.183,069 292.179.962 588.381,543 74,526,925
109,083,099

Movement of gold and silver for seven months:
Goid Movement at New York.
Month.

Imports.
1932.

1931.

Siker-New York.

Exports.
1932.

January- 19.067.937 9.404.455 107,842,041
February - 7,221.315 11,309.143 128.185.769
March-- 6.630,355 20,320,531 43.902.866
3.164,462 38,213,53 49,480.976
April
2.919.081 46,392,331 212,143.353
Mal
Aloe
2,229.61 35.321.267226.087,954
2,484,859 10,926,608 23,472.951
July
43,717.422 169,887,874 791,115,910

Imports.

1931.

Exports.

1932.

1932.

919,079
829,844
1.116,271
1,229.933
992.889
616.597
213,623

572,257
494,562
700,483
715,007
1,600,430
1.036,089
533,848

1.059,3281 5.918,236

5.652,676

2,000
20,000
37.000
1.000,3281

National Banks.
-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
CHARTERS ISSUED.
-Continental Illinois National Bank & Trust Co. of Capital.
Oct. 15
Chicago, Chicago, Ill
V5,000,000
ldent, James R.Leaven: Cashier, R.G. Danielson.
version of Continental Illinois Bank & Trust Co.,
hicago, Ill.

i

VOLUNTARY LIQUIDATIONS.
-The Monroe National Bank, Monroe, Wash
Oct. 15
Effective Oct. 4 1932. Liquidating agent, Whit H.
Clark, Monroe, Wash.
Absorbed by the First National Bank of Monroe,
No. 9372.

25,000

Auction Sales.
-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
By A. J. Wright & Co., Buffalo:
Stocks.
Per Sh. Shares. Stoats.
Shares. International
$ per share.
is Angel

Corp. par $1 10o 15 The Como Mines, par 81




70

2785

By Adrian H. Muller & Son, New York:
Shares. Stocks.
$ per Sh. Shares. Stocks.
8 per Rh.
33 Prudential Investors, Inc., $6
1100 Pressed Steel Car N. J., pref..
pref., no par
66 ' par 5100
514
497 Calorle Coal Co., par 3100---$50 lot 500 Park Estates Corp. (N. Y.),
2 590 Deep Run Smokelems Coal Co.
no Par; $2,500 6% notes due
preferred, par 810
46 lot
Oct. 15 1932
$11 lot
178 71 Park Ave., Inc., sold sub181 G. G.Tegge & Sons,Inc.(N.Y.)
iect to provisions stated in stock
par $25
2100 lot
certificate
$7 lot 36 Towne Securities Corp. (Del.),
12 71 Park Ave., Inc.. sold subject
common, no par; 4 Union Dint° provisions stated in stk. ctf $2 lot
count Co., Inc. (N.Y.). Pref..
100 Great Northern Ry., prof.,
par $100; 2 Union Discount Co..
par $100
12%
Inc., (N. Y.), corn., no par:
100 N. Y.. N. H. & H. RR. Co..
100 United Wholesale Grocery Co.,
common, par $100
1494
(Del.), class A corn., no par----$9 lot
100 Southern Ry. pref., Par $100
1054

By R. L. Day & Co., Boston:
Shares. Stocks.
8 per Sh.
1919 89-100 Building Products,
Inc., pref., par $10; 2184 89-100
common par $10
$500 lot
100 The Thermatomic Corp., corn;
271 Oa Miners Nat. Quick Silver
S. A.,corn, par 100 pesos: 272 Chi
Miners Nat. Quick Silver S.A.,
pref., 100 Pesos
$25 lot

Shares. Stocks.
$ per Sh.
726 Spraco Inc., pref.; 1.126 COM.$500lot
18 Saco Lowell Shops, corn
750
$14,000 Hotel Charles 5348. Sept.
1953
$15 lot
15-75ths of an undivided portion of
the Peninsula Hotel Owned by the
bondholders of same, and located
in St. Petersburg, Fla. (as 13)-25 lot

By Barnes & Lofland, Philadelphia:
Shares. Stocks.
Per Sh.
15 Ninth Bank & Trust Co.. par $10 18
5 Northwestern National Bank &
Trust Co., par $20
26
5 Fidelity-Philadelphia Trust Co.,
par 5100
380
21 Penna. Co. for Insurances on
Lives & Granting Annuities, par
43
310

Shares. Stocks.
Per sh.
20 Philadelphia Nat. Bank, par $20 62
10 North Pennsylvania RR. Co..
Par $50
7494
Bonds.
Per Cent.
83,000 City of Philadelphia
%
Int. Jan.& July; due April 1 1976
(optional 1946)
8751

DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.

Per
When
Cent. Payable.

Railroads (Steam).
Atlantic Coast Line 5% pref.-Dividend omitte d.
Dallas Ry.& Terminal. 7% pref. (quar.)
Nov. 1
Ontario & Quebec (s.
-a.)
Dec. 1
$3
Semi-annual
2% Dec. 1
Pitts. Bees.& Lake Erie (8.-a.)
8144 Dec. 1
Richmond, Fredericksburg & Potomac
7% guaranteed (s-a)
$4 Nov. 1
6% guaranteed (s-a)
:4 Nov. 1
United New Jersey RR.de Canal Co.
(qu) 82% Jan. 10
Virginian Ry.common-Div. passed.

Books Closed
Days Inclusive.

Holders of rec. Oct. 21
Holders of rec. Nov. 1
Holders of rec. Nov. 1
Holders of rec. Nov. 15
Holders of rec. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Dec. 20

Public Utilities.
Cedar Rapids Mfg. dr Power (guar.)._
760 Nov. 15 Holders of rec. Oct. 31
Central States Edison 7% prof.-Divide nd passed.
City Water of Chattanooga 6% pf.(qu.) 154 Nov. 1 Holders of rec. Oct. 20
Concord Gas Co. prof. (quar.)
$134 Nov. 15 Holders of roe. Oct. 31
Connecticut Lt.& Pow.,554% pt.(qu.)1% Dec. 1 Holders of reo. Nov. 15
y4% preferred (quar.)
194 Dee. 1 Holders of reo. Nov. 15
Connecticut R.de Lighting Co.
Common and preferred (quar.)
1.1211 Nov. 15 Holders of rec. Oct. 31
Consumers Power Co.55 pref.(quar.)_ $1% Jan. 3 Holders of r*c. Dec. 15
6% preferred (guar.)
1% Jan. 3 Holders of rec. Dec. 15
1.65 Jan. 3 Holders of rec. Dec. 15
6.6% Preferred (guar.)
7% preferred (quar.)
1% Jan. 3 Holders of rec. Dec. 15
6% preferred (monthly)
50c. Nov. 1 Holders of rec. Oct. 15
6% preferred (monthly)
50c. Dec. 1 Holders of rec. Nov. 15
6% preferred (monthly)
50c. Jan. 3 Holders of rec. Dec. 15
6.6% preferred (monthly)
55c. Nov. 1 Holders of rec. Oct. 15
6.6% preferred (monthly)
55o. Dec. 1 Holders of rec. Nov. 15
8.6% preferred (monthly)
550. Jan. 3 Holders of rec. Dec. 15
Cumberland Cty.Pow.& Lt.. pf.(qu.)
$114 Nov. 1 Holders of rec. Oct. 15
Dallas Power & Light Co.7% pref.(qu.) 131 Nov. 1 Holders of rec. Oct. 21
$6 preferred (guar.)
3134 Nov.
Holders of rec. Oct. 21
Davenport Water 6% pref. (quar.)
Holders of rec. Oct. 20
194 Nov.
Eastern States Gas Co.(quar.)
1214e Oct. 1 Holders of rec. Oct. 1
Fail River Gas Works Co.,(quar.)
750. Nov.
Holders of rec. Oct. 24
Greenfield Gas Light6% pref.(quer.)._ _
750. Nov.
Holders of rec. Oct. 15
Havana Elec. & Utilitire Co.
6% corn. 1st preferred (quar.)
760. Nov. 1 Holders of rec. Oct. 22
Houston Lighting & Power 7% Id.(MI.). 194 Nov.
Holders of rec. Oct. 15
$6 preferred (quar.)
Holders of rec. Oct. 15
8134 Nov.
Idaho Power Co.7% pref.(quar.)
131 Nov.
Holders of rec. Oct. 15
$6 preferred (guar.)
$134 Nov.
Holders of rec. Oct. 16
Iowa Electric Lt.&Pow.7% pf. A-Div. action deferre d.
644% pref. B-Div.action deferred.
6% pref. C
-Div.action deferred.
Kentucky Ctn.Co.prior $334 Pt.(ou.)
8754e Nov. 19 Holders of reo. Nov. I
Keystone Telep. Co. of Phila. $3 pt. div. omitte d.
$4 preferred dlv. omitted.
Kokomo Water Works6% pref. (quar.)_
114 Nov. 1 Holders of roe.
20
Lincoln Tel.& Tel.6% prof. A (gust.).'. 114 Nov. 10 Holders of rec. Oct. 81
Oct.
Extra
250. Nov. 10 Holders of rec. Oct. 31
5% cum.special pref. (guar.)
1% Oct. 1 Holders of rec. Sept.80
Lorain Telep.Co. pref.(guar.)
3114 Oct. 1 Holders of
26
Louisville Gas & El.. corn. A & B (quar.) 43340 Deo. 24 Holders of roe. Sept.30
Tee. Nov.
Meadville Telep. Co. common (quar.)
3734c Nov. 15 Holders of rec. Oct. 81
Preferred B (s.
-a.)
8754c Nov. 1 Holders of roe. Oct. 15
Milwaukee Gas Light Co.7% pf. (qu.)_
Dec. 1 Holders of reo. Nov.25
Mississippi Power & Light pref. (guar.). $134 Nov.
Holders
Monmouth Cons. Water Co.7% pf.(qn.) 131 Nov.15 Holders of reo. Oct. 15
of reo. Nov. 1
Montreal Lt.,Ht.& Power Co.of.(au.). $2
Nov. 1 Holders of rect. Oct. 31
Mutual Telep.. Hawaii(monthly)
80. Nov.2 Holders of rec. Nov. 10
National Pow.dc Lt., corn.(quar.)
250. Deo.
Holders of roe. Nov. 12
National Tel.& Tel., cl A (guar.)
880. Nov. 1 Holders of rec. Oct. 17
1st preferred (quar.)
New England Water Lt.& Pow.Assoc. $131 Nov. 1 Holders of roe. Oct. 17
Preferred (quar.)
$114 Nov. 1 Holders of reo. Oct. 19
Pacific Gas & EL.6% pref.(qua?.)
37140. Nov. 15 Holders of tee. Oct. 31
5% preferred (quar.)
3434e. Nov. 15 Holders of reo. Oct. 31
Pacific Pow.& Light Co.7% pf.(qu.).
1% Nov. 1 Holders of rec. Oct. 18
$6 preferred (quar.)
Nov.
Phila. Suburban water Co. pref.(cm.)._ $1% Deo. 1 Holders of rec. Oct. 18
134
1 Holders of rec. Nov. 120
Portland Gas & Coke Co.7% pf.((BO
1% Nov. 1 .Holders of rec. Oct. 18
6% preferred (guar.)
194 Nov. 1 Holders of rec. Oct. 18
Princeton Water Co.(N.J.).(guar.)
750
Public Service Co. of Indiana $6 Pf.(qu.) $114 Nov. 1 Holders of roe. Oct. 20
Nov. 15 Holders of rec. Oct. 31
Public Service of N.J.,6% pt.(mthly.) Nov.
Shawinigan Water & Power Co.com.(qu) 50o. Nov.30 Holders of rec. Nov. 1
12c.
15 Holders of rec. Oct. 21
Common ((Mar.)
130. Feb. 15 Holders of rec. Jan. 21
Sierra Pacific Elec. Co.6% pref.(quar.)_
144
Swiss-American Elec.$6 pref.-Div. omi tted. Nov. 1 Holders of rec. Oct. 24
Tampa Electric Co. pref. A (quar.)
$15' Nov. 15 Holders of rec. Oct. 81
Common (quar.)
560. Nov.
Holders
Texas Power & Light Co.7% pf.(TO-. 1% Nov. 15 Holders of rec. Oct. 81
1
of roe. Oct. 15
$6 preferred (guar.)
$1% Nov. 1 Holders of rec. Oct. 15
Toledo Lt.& Pow. Co..6% pref.(qu.). 1% Oct. 1 Holders of rec. Sept. 15
Utica Gas di El.,$8 pref.(quar.)
$1% Nov. 1 Holders of rec. Oct. 20
Quebec Power Co.corn.((Mar.)
38c. Nov. 16 Holders of rec. Oct. 21

Oct. 22

Financial Chronicle

2786
Name of Company.
Banks and Trust Companies.
Kings County Trost CO. (guar.)

Per
When
Cent. Payable.
$20

Books Closed.
Days 'reclusive.

Below we give the dividends announced in previous weeks
and,not yet paid. This list does not include dividends announced this week, these being given in the preceding table.

Nov. 1 Holders of rec. Oct. 25

Fire Insurance.
Name of Company
50e. Nov. 15 Holders of rec. Oct. 31
Amer. Re-Insurance Co. cap. stk. (go.).
Nov.21 Holders of rec. Oct. 31
$1
Fire Association of Phila.(new stock)-F)iv. pas ed.
National Fire & Marine Ins. common
-Div.o mined
Penn (Wm.)Fire Ins. Co.of Pa.
Holders of rec. Oct. 17
$116
St. Paul Fire & Marine Ins.(quar.)
Miscellaneous.
50e. Dec. 1 Holders of rec. Nov. 15
Abbotts Dairies, corn.(guar.)
7% lot preferred (guar.)
15 Dee. 1 Holders of tee. Nov. 15
7% 2nd preferred (guar.)
114 Dec. 1 Holders of rec. Nov. 15
Allied Kid, $616 preferred (guar.)
$1 ei Nov. 2 Holders of rec. Oct. 24
$1
Oct. 22 Holders of rec. Oct. 18
American Book common (guar.)
Holders of rec. Oct. 15
50c.
American Fidelity Co. (guar.)
Si4 Oct. 15
American Furniture pref. A (guar.)
500. Nov. 1 Holders of rec. Oct. 20
American Investment Co. of III. elA(go)
25c. Nov. 15 Holders of rec. Nov. 5
American News Co. common (bl-mthly.
American Ship Building, pref.-Dividen d omit ted.
50c Dee. 1 Holders of rec. Nov. 12
American Stores Co.(guar.)
50e. Jan. 2 Holders of rec. Dee. 13
Extra
/175c. Nov. 18 Holders of rec. Nov. I
Artloom Corp., preferred
025e. Nov. 18 Holders of rec. Nov. I
Preferred
-a.)
Atlantic Steel pref. (s.
$34 Nov. I Holders of rec. Oct. 29
Babcock & Wilcox. Ltd.
=44 Nov. 7 Holders of rec. Oct. 17
Amer.dep. receipts ord. reg.
Badger paper Mills e% pref.(guar.).
75c. Nov. 1 Holders of rec. Oct. 21
Bomberger(L.)& Co..0l. Cl come/L(W) 116 Dec. 1 Holders of rec. Nov. 14
75c. Jan. 2 Holders of rec. Dec. 12
Beach-Nut Packing Co.. corn. (guar.)._
Bigelow Sanford Carpet & Rug Co.
$116 Nov. 1 Holders of rec. Oct. 22
Preferred (guar.)
Bohaek (H.C.) Co.. Inc.. corn.(guar.)... 62.160. Nov. 1 Holders of rec. Oct. 15
14 Nov. 1 Holders of rec. Oct. 15
Im7% lot preferred (guar.,
$14 Nov. 1 Holders of rec. Oct. 15
13ohack Realty Co.. 1st pref.(guar.)
50c. Nov. 15 Holders of rec. Nov. 5
Bond & Mtge. Guarantee.Co.(guar.)...
124c. Nov. 15 Holders of tee. Oct. 31
Buck Hill Falls (guar.) Builders Exchange Bldg.(Bait.). extra
Sc. Oct. 19 Holders of rec. Oct. 13
Buywell Food Markets, Ltd.
174c Oct. 15 Holders of'roe. Sept. 30
7% preferred (initial)
Oct. 1 Holders of rec. Sept. 30
$5
Canada Life Assonsnre Co.. (goon
15c. Nov. 15 Holders of rec. Nov. 1
Chain Belt Co.. corn. (guar.)
Chartered Investors. $5 pref. (guar.). _ 314 Dec. 1 Holders of rec. Nov. 1
Chicago. Wilmington Br Franklin Coal.
$111 Nov. 1 Holders of rec. Oct. 25
B preferred (guar)
23e. Nov. 1 Holders of rec. Oct. 20
Coast Breweries Ltd. (guar.)
Cohn-Hall Marx, 7% pref. div. passed.
Columbus Auto Parts-No dividend act1 on talc en.
$14 Nov. 1 Holders of rec. Oct. 17
Columbus Packing. prof. (guar.)
6216c Nov. 1 Holders of rec. Oct 20
Cone() Press Inc.. corn.(quar.)
$14 Dec. 15 Holders of ree. Dec. 1
/0 Preferred (guar.)
75e. Nov. 1 Holders of rec. Oct. 25
Diamond lee & Coal. pref.(guar.)
Dec. 1 Holders of rec. Nov. 18
$2
Dictaphone Corp., pref.(quar.)
25e. Nov. 1 Holders of rec. Oct. 20
Dominion-Scottish Invest.. 5% Pf. Min
50e. Nov. 15 Holders of rec. Nov. 1
Dow Chemical Co., no par stock (goon_
Nov. 15 Holders of rec. Nov. 1
Preferred (guar.)
50e. Dec. 1 Holders °tree. Oct. 31
Eastern Theatres. Ltd.. corn.(goonFamily Financing.7% pret.-Dividend a etion d eferred
Fenton United Cleaning & Dyeing Co.
314 Oct. 15 Holders of rec. Oct. 14
Preferred (fi oar.)
15e. Oct. 25 Holders of rec. Oct. 15
Firemen's Ins. Co. of Newark (quar.)...
10e. Nov. 1 Holders of rec. Oct. 21
(quar.)
Fuller Brush Co.. clam A
114 Dec. 1 Holders of rec. Nov. 12
Geist(C. 11.1 Co.Inc.. 4% Pref. (111.)- (
20c. Oct. 25 Holders of rec. Oct. 22
GlImore Orssolene Plant No. I (monthly)
75c. Jan.I'33 Holders of rec. Dec. 20
Gottfried Baking Co.. Inc.. cll. A (guar.)
75e. Apr.I'33 Holders of ree. Mar. 20
Class A (guar.)
75e. July1'33 Holders of rec. June 20
(guar.)
Class A
75e. Oct.1•33 Holders ofjec. Sept. 20
Class A (guar.)
Guilford Realty Co.-Cemmon dividend omitte d.
6% & 7% preferred-Dividends omitt ed.
15e. Dec. 1 Holders of rec. Nov. 15
Hale Bros. Stores Inc.(guar.)
750. Nov. 15 Holders of rec. Nov. 1
Hartford Times, Inc.. part. pref. (qu.).25e. Nov. 15 Holden of roe. Oct. 29
Hormel (Geo. A.) & Co.. corn.(quar.)
$116 Nov. 15 Holders of rec. Oct. 29
Class A. preferred (guar.)
Nov. 15 Holders of rec. Oct. 29
$7
Class B. preferred (annual)
Holdee of rec. Nov. 5
International FIarveeter Co.. pf.(quar.)_ $116 Dec.
Holders of tee. Nov. 16
60e Dec.
International Safety Razor Co. el.A (gut
Holders of tee. Oct. 15
Kansas City Stockyards. pf.(guar.)- - 814 Nov.
Holders of rec. Oct. 15
514 Nov.
Preferred (guar.)
Holders of rec. Oct. 2()
100. Nov.
Kekoha Surer Co.(monthly)
Holders of ree. Nov. 10a
Kendall Co.,cum. part. pref. A (gnat.).. $114 Dee.
25c. Jan. 2 Holders of rec. Dec. 21
Klein (Emil D.) Co. common (guar.)
Leh.& W.-Harre Coal Co.of N..1.(go.). 82 Oct. 20 Holders of rec. Oct. 10
Liberty Limestone 7% pref.-Div.°mitt ed.
Dec. 1 Holders of rec. Nov. 15
Liggett & Myers Tobocen Co.coin.(aol.) $1
314 Dec. 1 Holders of rec. Nov. 17
Lord & Taylor 1st pref. (guar.)
MacKinnon Steel Corp. 7% let pf.(go.) 14 Nov. 1 Holders of rec. Oct. 28
McCrady-Rodgers 7% Pref.-Div. Dame 4.
Meech. & Mfrs. Securities Corp. pref.- Div. o mitted.
Merland 011 Co.of Canada. Ltd.
Common (Initial)
24e Nov. 15 Holders orrec. Oct. 31
15c. Nov. 15 Holders to tee. Nov. 1
Mickelberry Food prod.Co.. corn.(WO Minneapolis Honeywell Regulator Co
250. Nov. 15 Holders of rec. Nov. 4
Morline Mfg. Co.. common (quar.)_.....
150. Nov. 1 Holders of roe. Oct. 20
250. Nov.2Q Holders of rec. Oct. 31
Mohawk Mining Co. cap. stock gluon!. Extra
Nov.29 Holders of rec. Oct. 31
$2
Holders of rec. Oct. 24
Mortgage Corp.of Nova Scotia (guar.).- $14 Nov.
Holders of roe. Nov. 19
Muskogee Co.6% cum. pref. (guar.)... 116 Dec.
National Biscuit Co. common (guar.).
70c. Jan. 1 Holders of rec. Dec. 16
Neon Products of Western Canada. Ltd.
6% preferred (guar.)
Holders of rec. Oct. 15
75e. Nov.
Holders of rec. Oct. 26
25c. Nov.
New Process Co. common (guar.)
Holders of rec. Oct. 26
. Preferred (gluier.)
114 Nov.
e5 Nov.
Holders of tee. Oct. 15
New York Hanseatic Corp
Noyes(C. F.) Co.. Inc..6% com.Pf.(gu) 014 Nov.
Holders of rec. Oct. 16
$216 Nov.
Ohio State Life Ins. Co..(guar.)
Oswego Falls Corp., 1st pref.(guar.)---- $2 Nov.
Holders of rec. Oct. 29
Holders of rec. Oct. 20
Sc. Nov.
Facile flay Products Co.(gum.)
Holders of rec. Oct. 18
Pioneer Mill Co.. Ltd.(guar.)
$116 Nov.
Holders of rec. Sept. 15
Oct.
$5
Plant Nut & Chocolate Co.(guar.)
Holders of rec. Sept. 15
116 Oct.
6% preferred (guar.)
Holders of rec. Oct. 15
) 0
Pogue (Il.& R. C -6% Pref.(guar.)... 14 Nov.
Oct. 1 Holders of rec. Oct. 14
Printing Machinery Co. common (guar.) $2
Oct. 1. Holders of rec. Oct. 14
$1
Extra
Holders of rec. Oct. 14
Oct. 1
$2
Preferred (quar.)
St
Oct. 15 Holders of rec. Oct. 14
Extra
Holders of rec. Oct. 18
Railway & Licht Reenritiee Co.Pf.(q11.)- $14 Nov.
Holders of rec. Oct. 15
Republic Service Corp. Mi pref.(qUar.)... $114 Nov.
30c. Nov. 1
Holders of rec. Nov. 1
Rich's. Inc. corn.(quar.)
14 Dec. 3 Holders of reo. Dec. 15
614% preferred (guar.)
Holders of rec. Oct. 18
25c. Nov.
Motor Car. Ltd.. corn.(guar.)Russell
Holders of rec. Oct. IR
14 Nov.
, 7% preferred (quar.)
Holders of rec. Oct. 20
.
Seaboard National Securities prof.(lu.) 374c Nov.
Holders of rec. Oct. 20
Semiritlee Corp. General $7 pref.(guar.), $14 Nov.
Holders of rec. Oct. 20
$134 Nov.
se preferred (guar.)
Holders of rec. Oct. 20
350. Nov.
common (guar.)
Selby Shoe
Holders of ref.. Oct. 20
14 Nov.
Preferred (guar.)
Holders of tee. Oct. 21
- $14 Nov.
Aerie. Chemical. prof.(WienSmith
Holders of rec. Oct. 20
4e. Nov.
Standard Corp. Inc. (guar.)
Holders of ree. Nov. 15
Strawbridge & Clothier 6%,..erA pf.(gu.) 134 Dee.
Holders of rec. Oct. 20
134 Nov.
Troxel Mfg. Co.. pref. (guar.)
Holders of tee. Nov. 16
50c Dep.
United Biscuit common (guar.)
Chemists pref.-Div.omit ted.
United Retail
Holden; of rec. Oct. 17
7c Nov.
United States Banking Corp
Holders of rec. Oct. 19
Nov.
corn.(guar.) E1
Vletor Talking Machine Co.
Holders of roe. Oct. 30
Nov.
Weston (Geo.), Ltd.(quar.)
Holders of rec. Oct. 22
14 Nov.
Corp.,614% prof. (guar.)
Whiting
omitted.
Yale Leasing Corp. div.




1932

Per
Cent.

When
Payable.

Railroads (Steam).
Augusta & Savannah RR Ora)
2 Jan 6'33
Extra. .
26c Jan 533
Chesapeake & Ohio Ry Co. pref. s.
34 1- 133
-a.)
Cincinnati Sandusky & Cleveland
Preferred (s. a.)
$14 Nov. 1
Cleveland Cincinnati & St. Louis
-5% preferred (guar.)
1)4 Oct. 31
Elmira de Williamsport (s.
31.16 Nov. 1
-a.)
Kansas C., St. L. de Chicago pref.(guar.) $14 Nov. 1
Maboning Coal RR.. rum. (guar.)
Mot Nov. I
Nashua & Lowell (s. a )
Nov. 1
$4
Norfolk & Western. adj. Pref.((Wan-- SI
Nov. 19
Northern RR.of N.H.(guar.)
514 Oct. 31
Pittsbg et Se ayne & Chic., corn.((W.).
- 14 Jan 243
Preferred (guar
134 Jan 3•311
Reading Co.. common (guar.)
250. Nov. lo
Utica, Chen & Susgu Valley (s-a)
$3 Nov. 1
Virginian Ky., preferred (guar.)
$14 Nov. 1
York His,, preferred (guar.)
624e. Oct. 31

Books Closed.
Days Inclusive.

Holders of ree. Dee. 8
Holders of rec. Oct. 25
Holders of roe. Oct. 5
Holders of rec. Oct. 20
Holders of rec. Oct. 20
Homers of rec. oct. 14
Holders of rec. Oct. 15
Holders of rec. Oct. 31
Holders of rec. Oct. 5
Holders of roe Dec 10
Holders of tee. Dec .10
Hoidens of tee. Oct. 13
Holders of rec. Oct. 14
Holders of rec. Oct. 15
Holders of rec. Oct. 20

Public Utilities.
Alabama Power Co..$6 prof. (oust.)
$1 34 Nov.' 1 Holders of tee. Oct. 15
Amer. Cities Pow.& Lt. Corp. el. A (Ott ) s75c. Nov. 1 Holders of rec. Oct. fia
Amer. Gas& Elec. Co. pref.
$14 Nov. 1 Holders of tee. Oct. 8
American 1.1gbt & Traction Co.
Common (guar.)
62160. Nov. 1 Holders of too. Oct. 14a
Preferred (guar.)
14 Nov. 1 Holders of rec. Oct. 14a
Amer. E, ater i
e4 , V ,n 0 Lor) & Elec. Co.. Inc-,,,1 ,,
ks
50e. Nov. 1 Holders of rec. Oct. 7
Associated Telephone. pref.(guar.)
37.4c Nov. 1 Holders of rec. Oct. 15
$14 Nov. 1 Holders of rec. Oct. 7
Atlantic City Electric. prof.(gum.)
Bangor Hydro Elect corn.(guar.)
50c. Nov. I Holders of rec Oct. 10
British Columbia Tel. Co.,6% 2d pf (or)
14 Nov. 1 Holders of tee. Oct. 15
nutria*, elegant & ostern Pose, Carp
SI 4 Nov. 1 Holdors of me. Oct. 15
$6 preferred Omar I
Calgary Power Co., Ltd..6%pref.(quar.) 14 Nov. 4 Holders of rec. Oct. 16
120e hot 25 Hoidore
an North pow Corp. led moo ion
rec Sept 30
Holders of roe. Oct 15
Central Arizona Lt. & Pow.. $7 pf. (au.) $14 Nov.
Holders of rec. Oct. 15
$6 preferred (guar.)
$134 Nov.
Holders of rec. Sept. 30
Central ilferired ( uar.)Eleo. Corp.(qu ) 200. Nov.
6 rap m.u eon(g .t
l
ias
Holders of rec. Sept. 30
14 Nov.
Holders of rec. Oct. 15
Central Pow.& Lt. Co.7% prof.(guar.). 134 Nov.
Holders of rec. Oct. 16
6% preferred (guar.)
IS Nov.
Holders of rec. Nov. 15
Cleveland Elec. Ilium. Co. pref (guar.) $1 14 Deo.
Columbia Gas & Elec. Corp.. cont.(qu.) J 250. Nov. I. Holders of rec. Oct. 20
Holders of ree. Oct. 20
1.14 Nov. I
6% series A preferred (guar.)
Holders of rec. Oct. 20
14 Nov. 1
6% series No. 14 pref.(guar.)
.....
116 Nov. 1. Holders of roe. Oct. 20
5% cony. preferred (guar.)
Holders of rm. Oct. 15
Columbus RY., P.& L. Co.. pref. B(qu ) $1.63 Nov.
Holders of rec. Oct. 15
Commonwealth EdisonCo. Boston 'au ) $14 Nov.
Holdenu of roe. Nov 16
Commonwealth Utilities. pref. C (fiu.) $14 Dee.
Bohlen) of rec. Sept 20
Consollealod Gas(N Y.). a% pf. (qu.) 14 Nov.
50c. Nov.
Dayton Pow.& I.t.. pref.(monthly). _ _
Holders of rec. Oct. 20
Nov.
$3
Edison Electric Ilium. Co.(Boeton)
Holders of rec. Oct. 100
EleetrIc itond & Share Co..$e pref. km , $114 Nov.
Holden. lii tee. Oct. 5
$14 Nov.
$5 preferred bluer.)
Holders of rec. Om.
150. Nov.
El.Pow. Ammo., Inc.. el. A & corn.(qr.)
Holders of tee. Oct. 15
Holders of ref oft 27
hsaanabs ).1 lei, P & ry ,6se
a.)
1$, Nov
134 Nov.
Franklin Telegraph. 7(4% gtd. (s-a)
Holders of rec. Oct. 15
Hartford Elec. Light (guar.)
684e. Nov.
Hoidenu of roe. ()r1. IS
Honolulu Gas (monthly)
150. Oct. 25 Holders of tee. Oct. 15
Illinois Northern Utilities Co.
6% preferred Man
134 Nov.
Holders of rec. Oct. 15
$14 Nov.
$7 junior preferred (guar.)
Holders of rec. Oct. 15
Illinois Power & le. Co.e% pref.(au.)
$1 14 Nov.
Holders of rec. Oct. 10
Intenmtional Utilities. $7 pref.(au.) - $1 4 Nov.
1
Holden) of rec. Oct. 15a
474e Nov.
$34 preferred (pine)
fielders of rec. Out 154
Jamaica Water Supply, 734% pref (s-s)
14 Nov.
Holders of rec. Oct. 11
Lone Star Gm). $614 pref. (guar.)
514 Nov.
Holders of rec. Oct. 20
Los Angeles Gas & El. Corp.69, Pr.(qu ) 116 Nov. 1
Holders of rec. Oct. 31
Louisiana Pt A l.i Cu,. fel pref MUM .1 $1
V.v. 2 Hanlon of me oet 16
Malone Light & Pow.. $6 Pref. (guar.)._
$134 Nov. 1 Holders of tee. Oct. 20
Michigan
& F.lee. Co.. 7% old.(gut
134 Nov. 1 Holders of rec. ()et. 15
6% preferred (guar.)
1% Nov. 1 Holders of rec. Oct. 15
$6 part. preferred (guar.)
$1 4 Nov. 1 Holders of rm. Oct. 15
20 preferred loom.)
514 Nov. 1 Holders of roc' Oct. 15
M6 watpreferred 00iar& Light Co.11% dt e Eiec. RY. .)
14 Oct. 31 Holders of rec. Oct. 20
13% preferred (guar.)
116 Deo. 1 Holders of rec. Nov. 15
Mohawk liuulaon Pow. Corp. pt tame
$14 Nov I Holders of rec. Oet. 15
moutmad U. Ht. & pc. Cons. ecan.(o...) t 37e. Oct. 31 Holders of rec. Sept. 30
National Pow. & Lt. Co.
pref (g...) $134 'goy. 1 Holders of roe Ore.
Nevada-Callfornia F.lec. Corp.. pt. rou.) $14 Nov. 2 Holders of tee. Rope 30a
New York Utilities, Inc.. pref. Oman- $134 Nov. 1 Holders of tee. Oct. 10
North Amer. Edison Co.. $6 pref. (w.) 5)34 Dec. 1 Holders of roe. Not, 15
No. Amer. Gas & Elect., $6 pref. (guar.) $116 Nov. 1 Holders of rec. Oct. 20
134 Nov. 1 Holders of rec. Oct. 10
Northern New York Util.,7% pref.(qu).
et 5 H oidrs of
3
1 i %fe2 2 ilolders 0f ;Le.sepi 30
611e
Northern Ontario Pow Co.. Ltd.. corn
e
. Seot 30
.
11% cum. preferred (guar.)
Northern States Power Co.(Del.)
14 Nov. 1 Holders of rec. Sept. 30
Common clans A (goon
15e. Nov. 1 Holden' of rec. Sept. 30
Northern States Power (Del.) al. ft (go )
Nov. 1 Holders of tee Oct. 25
12
Orange & Rockland Elec. Co.(guar.)
. 5 1,
It Nov.vi 113 111
Pacific Lighting Corp.. eom.(guar.).- ! ..im3 10410d.erare
rec
ree. 04. 2
.
16
0
Di roe.
Peninsular Telephone corn. (guar.)
/ Nov IS Holders of tee. Nov 6
1
4
7% preferred Oman
II
2 16 *33 Holden of um. Veb
7% preferred (goon
5.5e. Nov. I Holders of rec. Oct. 20
Pennsylvania Power Co.$6.60 Pf.(mtbly)
5.5e. Dee. 1 Holders ot rec. Nov. 19
$6.60 preferred (monthly)
$6 preferred (guar.)
$14 Dec. 1 Hoidens of roe. Nov. 19
Me Oct. 25 Holden) of roe. Oct. 1
Philadelphia Co. common (quar.)
114 Nov. I Hoidens of rec. out. 1
6% *um. pref. (semi ann.)
.
Ph 11arlelreferred w, $5 9ref. Man -- $14 Nov. 1 Holders of rec. Oct. 10
8,,l p phla lelec .mr3
N .
Nov.
14 eni 0f ere. 0. 20
111ders of roe 0 t. 2
Potomac Edison Co.7% prof. Moan. e
c
0
1)4
Public Service Co.of Colorado. 7% pref
68 1-3c Nov. 1 Holders of tee. Oct. 15
(monthly)
50o Nov. 1 Holders of rec. Oct. 15
6% preferred (monthly)
'
41 2-3c Nov. 1 Holders of tee. Oct. 15
5% preferred (monthly)
Public Service con.. of N. J.50e. Oct. 31 Holders of tee. (lot. I
6% preferred (monthly)
75e. Nov. 1 Holders of rec. Oct. 15
Public Service of Nor W..common
14 Nov. 1 Holders of nee. Oct IS
7% preferred (guar.)
14 Nov. 1 Holders of rec. Oct. 15
6% preferred (guar.,
35e. Nov. 15 Holders of roe. Oct. 21
Quebec Power Co.. corn. (guar.)
Nov. 1 Holders of ree. Oct. 15
Rhode Island Pub. Serv. Co.. e). A (quo $1
50e, Nov. 1 Ifoirimm of tee. Oct. 15
Preferred (guar.)
20e. Nov. 1 Holders of roe. Oct. 16
Rockland Light & Pow. Co.(guar.).
2 Nov. 15 Holders Cl tee. Oct. 20
Southern California Edison. corn. (go.).
50e. Oct. 25 Holders of rec. Sept. 30
Stundard GM A F:lee. Co.corn. Mon
$14 Oct. 25 Holders et rec. Sept. 30
Participating preferred (guar.)
$6 preferred Moan
$14 Out. 25 Holden' of rec. Sept. 30
$7 preferred (guar )
$14 Oct. 25 Holders of tee. Sept.30
Tennessee Electric Power Co.116
5% preferred (gust.)
1-2-33 Holders of rec. Doe. 15
8% preferred (gum.)
14 1-2-33 Holders of rec. Dee. 15
14 1 2-33 Holders of rec. Dec. 15
7% preferred (goon
81.80 1-2-33 Holden' of rec. Dee. 15
7.2% preferred ((Plan
6% preferred (monthly)
50e. Nov. 1 Holders of rec. Oct. IS
6% preferred (monthly)
50e. Dec. 1 Holders of rec. Nov. 16
6% preferred (monthly)
50c. 1-2-33 Holders of tee. Dec. 15
60e. Nov. 1 Holders of rec. Oct. 16
7.2% preferred (monthly)
7.2% preferred (monthly)
60e. Dec. 1 Holders of rec. Nov. 16
7.2% preferred (monthly)
600. 1•2-33 Holders of rec. Dee. 15

Financial Chronicle

Volume 135

Name of Company.

Per
When
Cent. Payable

Public Utilities (Concluded).
Southern Calif. Gas Corp.$8).4 pr.(qU.). $154 Nov.30
Southern Canada Power Co.. Ltd.
Common (guar.)
25e. Nov. 15
Standard Power & Lt. Corp. corn.(au.)
30c. Dec. I
Preferred (guar.)
$14 Nov. 1
Suburban Elec. See. Co., tot pref.(qM.). SI 4 Nov. 1
Toledo Edison Co.. 7% prof. (mtlelY) 58 1-3o Nov. .1
8% preferred (monthly)
500. Nov. 1
5% preferred (monthly)
412-30 Nov. 1
United Light & Ry. Co.(Del.)
7% preferred (monthly)
58 1-3c Nov. 1
8.38% preferred (monthly)
53e. Nov. 1
eel preferred (monthly)
,
50e. Nov. I
United Ohio Utilities Co..6% Of.
114 Nov. 1
Washington Light & 'Frac. (D.C.) (qu.) $3
Nov. 1
West Penn Electric Co..7% pref.(guar.) 14 Nov. 15
6% preferred (guar.)
114 Nov. 15
West Penn Pow. Co..7% cum.Pf.
14 Nov. 1
8% cum. preferred (guar.)
14 Nov. 1
Wisconsin Tel. Co. pref.(fluor.)
144 Oct. 31
Bank & Trust Cos,
Corn Exchange Bank Trust Co.(qu.)___

$1

Name of Company.

Holders of tee. Oct. 31
Holders of rec. Oct. 31
Holders of rec. Nov. 12a
Holders of rec. Oct. 15a
Holders of rec. Oct. 15
Holders of rec. Oct. 15
Holders of ree. Oct. 15
Holders of rec. Oct. 15
Holders of rec. Oct.
Holders of rec. Oct.
HolderS of rec. Oct.
Holders of rec. Oct.
Holders of rec. Oct.
Holders of rec. Oct.
Holders of rec. Oct.
Holders of rec. Oct.
Holders of rec. Oct.
Holders of rec. Oct.

15
15
15
12
22
20
20
6
5
20

Nov. 1 Holders of rec. Oct. 21

Fire Insurance.
Camden Fire Ins. Co.. (guar.)
250, Nov. 1
Franklin Fire Insurance
25e. Nov. 1
Home Insurance Co.(N. Y.). (guar.)._
25e. Nov. 1
Richmond Ins. Co.(N.Y.), corn. Unit.).
100. Nov. 1
Standard Fire Insurance Co. (quar.)... 3714e. Oct. 23
United States Fire Insurance,corn
30e Nov. 1
Westchester Fire Insurance (guar.)
25c. Nov. 1

r'

Books Closed.
Days Inclusive.

Holders of roe. Oct.
Holders of rec. Oct.
Holders of rec. Oct.
Holders of roe. Oct.
Holders of rec. Oct.
Holders of roe. Oct.
Holden of rec. Oct.

15
20
15
11
18
21
21

Miscellaneous.
Abraham & Straus. Inc.. pref..(guar.) __
lq Nov.
Holders of rec. Oct. 15
Adams-M 11143 Corp.. common (guar.)._ 50e. Nov.
Holders of rm. Oct. 20
Preferred (guar-)
$14 Nov.
Holders of rec. Oct. 20
AlasIra Juneau Gold Mining Co.(quar.). 1214c Nov.
Holders of rec. Oct. 10
Allied Chemical & Dye Corp.. corn.(qu. 1 514 Nov.
Holders of rec. Oct. 11
Aluminum Manufactures, corn. (qtr.)._ 50c. Dec. 3 Holders of rec. Dec. 16
Preferred ((low.)
144 Dee. 3 Holders of rec. Dec. 15
Amerada Corp.. cap. stock. (guar.).--. 50o. Oct. 3 Holders of rec. Oct.
14a
AmorIran Can Co.. corn. (quilt.)
$1
Nov. 15 Holders of rec. Oct. 3Ia
Amer. Crayon Co.. 6% pref. (gime.).
154 Nov. I Holders of roe. Oct. 20
American Electric Securities. pref
1125e Nov. I Holders of roe. Oct. 20
American !envelope ho., 7% pref. (go.)
14 Dec. I Holders of roe. Nov. 25
America]) Hardware Co.. common (go.). 500 Jan 1'33 Holders of roe. Dec. 18
American Horne l'rod. Corp. (monthly)
350 Nov. I Holders of rec. Oct. 14a
American Ice Co., Com.(quar.)
25. Oct. 25 Holders of rm. Oct. 7
Preferred (quar.)
51 4 Oct 25 Holders of roe. Oct. 7
American Invest.. $3 pref. (guar.,
750. Nov. 15 Holders of rec. Oct. 31
AmericanMach.&FoundryCo..com.(qr.)
20o. Nov. 1 Holders of ree. Oct. 22
Amer Natl. Co.(Toledo). pref. A (go.)
111 Jan 113 Holders of rec. Dec. 20
Preferred B (quarterly)
1 Is Jan 113 Holders of rec. Dec.
American Ship Building Co., corn.(go) 50e. Nov. 1 Holders of rec. Oct. 20
15
Archer-Daniels-Midland Co.. pref.(qr.)- $14 Nov. 1 Holders of rec. Oct. 21
Atlantic Ice Mfg. pref. (s-a)
$354 Nov. 1 Holders of rm. Oct. 15
Atim Powder Co.. pref.(quar.)
$I oe Nev. I Holders of rec. Oct. 20
Austin Motor Co.. Ltd.. common
xis25 Nov. 7 Holders of rec. Sept.30
Bonus
zu25 Nov. 7 Holders of rec. Sept. 30
,
Aufetin, Nichols & Co. prior A (guar.)...
25e. Nov. 1 Holders of rec. Oct. 14
Beatty Bros cony. Int pref. (guar.)...
14 Nov. 1 Holders of rec. Oct. 15
Deming cortlee111, Ltd.. gonr.(guar.).
- 14 Nov. 1 Holders of rec. Oct. 15
Beneficial Indust. Loan Corp., corn.(go) 37 34e, Oct. 30 Holders
of rec. Oct. 15
Preferred series A
07540. Oct. 80 Holders of rec. Oct. 15
Block Firm. Tobacco. eon).(guar.)
3714c. Nov 15 Holders of rec Nov. 10
Preferred (guar.)
1 (((Dee. 31 Flolders
Bloomingdale tiros.. Inc., Prof. (guar.) $14 1 Nov. 1 Holders of roe. Dec. 24
Blue Ridge Corp.8% cony. pref.(quar.) m75c. Dec. 1 Holders of rec. Oct. 20
of rec. Nov. 5
Bon Ami Co.. clam A (guar.)
II
Oct. 30 Helder, of ree (let 15
Borden Co.. common (guar.)
50e, Dec. I Holders of rm. Nov. 15
Boor.lots, Inc., Prof. (guar.)
8840. Nov. 15 Holders of ree. Nov. 1
BrItman Elect. Co.. pref. (goes'.)
144 Nov. I Holders of rec. Oct. 15
weray Dept.Storm. foe. 7% let pf.
11 Nov. I Holders of rec. Oct. 15
4
(qr./
Brown Shoe Co.. Prof. (guar.)
14 Nov. I Holders of ree. Oct. 20
Bullock Fund (quar.)
20e. Nov. I Holders of rec. Oct. 15
Bunte Bros., preferred (guar.)
$14 Nov. 1 Holders of rec. Oct. 25
Burma Corp. Ltd_ Am. dee reo. (flea) si an oey.
22 Hoiden of rm. SOD% 15
Burrnah 011 Co., con) Interim
rtc5 Nov. 15 Holders of rec. Oct. 17
Byers(A. M. preferred (guar.)
$14 Nov. I Holden/ of rm. Oct. 14
Colombo Sugar Estates. corn. (guar.)._
40r. 1 2-33 Holders of roe. Dec. 15
Preferred (quar.)
350. 1-2-33 Holders of rec. Dec. 15
California Sugar Estate 7% pref.
35e. (-2-3:1 Holders of rec. Dec. 15
(g11.)
Campo Corp.. 84% pref. (quar.)
14 Nov. 1 Holders of rec. Oct. 15
Canadian Bronze Co.. Ltd.. Own.
(qu.) 314e. Nov. 1 Holders of rec. Oct. 20
Preferred (guar.)
$14 Nov. 1 Holders of rec. Oct. 20
Canadian ConvertersCo..Ltd..corn.(qr.)
50e. Nov. 15 Holders of rec. Oct. 31
Canadian Dredge & Dock. Prof.(qua,,).
1
Canfield 011 Co.. 7% preferred (gear.. $114 Nov.81 Holders of rec. Oct. 19
)
Holders .t reit Dee tt,
154 Dee
Capitol Management Corp. (guar.).
25e.
Central Illinois security. cony. M.(qu.). 374e Nov. 1 Holders of rec. Oct. 21
Nov. 1 Holders of me. Oct. 200
Centrifugal Pipe (guar.)
15c. Nov. lb Holders of roe. Nov e
Century Ribbon M1115 pref.(quay.)
$14 Dee. 1 Holders of rec. Nov. 19
Cherry Barren Corp., pref. (qui.e
$14 Nov. I Holders of re0. Oct. 15
Chicago Transfer & Clearing. pf. (gri.).- $134
1-2-33 Holders
Cluett. Peabody & Co., Inc.. Corn. (qu.) 25c. Nov. I Holden of roe. Deo. 15
Of roe. Oct. 21
Coats (J. & P./. Ltd. ord. reit•
red Oct. 31
(guar.).Colgate-Palmolive-Peet Co.
6% preferred (quay.)
14 Janf'22 Holders of rec. Dee. 10
Columbian Carbon Co.. cap. etk. (qu.)
50c. Nov. 1 Holders of rec. Oct. 14
Commercial Solvents Corp.. corn. (8,-.,)
300. Dec. 31 Holder; of rm. Nov. 21
Community State Corp el A (qua,.)
1214e. Dee. 31 Holders of
Consolidated Chemical Indust. rd. A (qu/ 37%c Nov. 2 Holders of rec. Dec. 27
Consolidated Cigar Corp..8 % pf.(qu.) 14 Nov. 1 Holders of rec. Oct. 15
rec. Oct. 17
Preferred (quar.)
$141 Dec. 1 Holders of rec. Nov. 11
Consolidated laundries Prof. (guar.)
$14 Nov. 1 Holders of rec. Oct. 15
Consolidated 011, 8% pref. (guar.)
2 Nov. 15 Holders of rec. Nov. 1
Consolidated Royalty Oil Co
5c. Oct. 25 Holders of rec. Oct. 15
Continental Can Co., Inc., corn.(guar.) _
50e. Nov. 15 Holders of rec. Nov. la
Coon(W. I).) Co..7% pref.(quar.)
$14 Nov. 1 Holders of me, Oct. 17
Rubber, $8 part. pref
Cord
25c. Dec. 15 Holders of reo. Nov. 15
Corso Mills. common (guar.)
25e Dec. 1 Holders of roe Nov IS
Counsellors Fund. Inc. (floe.)
28e. Nov. 1 Holders of rec. Oct. 15
Crosson Consoddated Gold Mining
le. Nov. 15 Holders of rec. Oct. 31
guar.)
Crum & Forster. 8% pref.(
52 Dec. 31 Holders of rec. Dec. 20
Cudahy Packing Co.. 6% pref. (8.-a.)
3
Nov. 1 Holders of rec. Oct. 20
7% preferred (s. a 1
314 Nov. 1 Holders of rec.
Deposited insurance Shares. cl. A (5.-11 ) 214 Nov. 1 Holders of rec. Oct. 20
Sept. 18
Doctor Pepper Co.(quar.)
30e. Dec. 1 Holders of roe Nov. 18
Dominion Bridge. Ltd.(guar.)
50e. Nov. 15 Holders of roe. Oct. 31
Pont(EA.) is Nom.& Go
Du
Debenture stook (guar.)
1(4 Oct. 25 Holders of rec. Oct. 10
Eastern Bond & Share 11 (qUar.)
250. Nov. 1 Holders of rec. Oct. 1
Eureka Pipe 1.101 0..(guar.)
Nov. 1 Holders of rec. Oct. 15
$1
E
..meigation Co.(quar.)
60e. Nov. 15 Holders of rec. Nov. 5
Exchange Buffet Corp.. cap. stk.(guar.) 134e. Oct. 31 Holders of rec. Oct.
15
s
aber, e'oe & (lemur pref.(guar.)
$14 Nov 1 Holders of rec. Oct. 2
Preferred (guar.)
$14 Feb
I Holders of rec Jan. 20
$14 Nov. 1 Holders of rec. Oct. 21.
Fair (The). preferred (guar.)
Foultieto Rubber Co., corn. (quar.)..._. 500. Jan.1'33 Holders of rm. Dee. 15
Federal Knitting Mills. cam.(quay,).... 62(40. Nov. 1 Holders of rec. Oct.. 15
Fiberboard Product.). prof. (guar.)
$14 Nov. 1 Holders of Fee. Oct. 15
50e, Nov. 1 Holders of me. Oct. 15
F1delltY Fund. Inc.. class A (quar.)
Extra
15e, Nov. 1 Holders of rec. Oct. 15
50c. Nov. 15 Holders of rec Nov. 10
FOod Mach. Corp.. $614 pref.(monthly)
(monthly)
$814 preferred
$1
Dec. 15 Holders of rec. Dec. 10
General Cigar Co.. corn. (guar.)
St
Nov. 1 Holders of rec. Oct. 17
134 Dec. 1 Holders of rec. Nov.23
Preferred (guar.)
10e. Oct. 25 Holders of ree. Sept. 3 a
General Electric Co.. corn. (guar.)
,
15e. Oct. 25 Holders of rec. Sept. 30a
Special stock (guar.)




2787
Per
When
Cent. Payable.

Books Closed.
Days Ineltatve.

Miscellaneous (Continued).
General Foods Corp. (guar.)
50c. Nov. 1 Holders of rec. Oct. 14
General Mills, Inc.. common (guar.).-- 750. Nov. 1 Holders of rec. Oct. 154
General Motors Corp.,$5 pref. (quer.) _
51(4 Nov I Holders of rec. Oct 10
General Outdoo