Full text of Commercial and Financial Chronicle : September 11, 1941, Vol. 154, No. 3979, Section 2

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

In 2 Sections

—

Section 2

Reg. U. 8. Pat. Office.

WITH WHICH HAS BEEN COMBINED THE FINANCIAL REPORTER
/

New

•

Volume

Number

154

President

3979

NJ Bond Club to Hold

Says We Will Protect

Annual Fall Field Day

Ships In Defensive Waters

J Lee W. Carroll Of John B. Car¬
roll & Co., president of the Bond
Club

Declaring that "upon our naval and air patrol—now

operating in large number over a vast expanse of the At¬
lantic Ocean
falls the duty of maintaining the American

that

New

the

held

Fall

this

tember

Jersey, "announces
Field

year

Day will be
Friday, Sep¬
County

the

Essex

—

policy of freedom of the seas—now," President Roosevelt
on
Sept. 11 warned that-"that means, very simply* very
clearly, that our patrolling vessels and planes .will protect,

Country
Parker

Club. • Courtlandt *B.
R.. W. Pressprich &

Co. is Chairman of the Field Day

7'.'

Committee.f7.

ships—not
only<$>
American ships but ships of any
merchant

all

flag
our

;

engaged in commerce in

—

defensive

They will

waters.

aiilia

protect them from submarines;
they will protect them from sur¬
face
raiders"In
address,
broadcast from Washington at 10
,

M./ (D.S.T.), and rebroadcast
Federal
throughout the World, the Presi¬

Banks

Reserve

Copy

I We appear new to be approaching a real crisis, and this

nation is not

prepared for it. It has for a long while been
very nearly so.
Permanent avoidance of it
would have been, and would now be little short of miracu¬
lous.
That crisis revolves around the question of war or
peace.
The American people have wanted, and, in our con¬
sidered judgment, still want peace. < As matters are now de¬
veloping, however, there is daily growing danger that they
will have war—by whatever name it may be called—in the
not very distant future. Unless there is a sharp change in the
course of events, they
certainly will have war eventually, and
this country is not prepared for war in terms of technical
equipment, trained armies, or mental or emotional states. It
is a most distressing situation, and one which grows logically,
not to inexorably out of the mismanagement of our interna¬
inevitable,

tional affairs.1

report conditions in their districts.

V®;T

IPs Was Inevitable!
•

All

Price 40 Cents

York, N. Y., Thursday, September 11, 1941

Page 116 J.*/

truth is that

The unvarnished

unrelentingly stub¬
dent further declared: ,';.;®
Let
this
warning be
clear. Business activity shows little or no let-down from its recent high born, utterly war-minded President with an almost unprece¬
dented hold upon the rank and file of the people has stead¬
From
now
on,
if German or
V
V
: Italian
vessels of war enter the
10 <
®
\'
Pa&e 114 fastly led the nation day by day nearer the precipice all
waters the protection of which
Petroleum and its products.
SPAB refuses high priorities for pipe¬ the while " professing aversion to /war, arid assuring the
v is
necessary for American deline steel.
Senate group hears conflicting testimony on "Sur¬ unthinking masses that no war would result, from his in¬
fense, they do so at their own
plus" tank cars.
PCO making tank car survey.
v lower rail credible recklessness in
foreign affairs. | He has been able
peril* The orders which I have
irates :on^gaSj, ;oB/imnMnyieht.^ settlement of Mexican question
given as Commander in Chief
to persuade- the majority of the voters that he was right in
held likely.
U. S. tankers arrive safely in Russia, i
crude
,

an'

•

•-

•*

the

States Army

United

and

'«

The sole responGrain storage Space 85% occupied on Sept. 1.
upon
Germany.
i'f

There will be no shooting unless

•

The
President
asserted
that
."my obligation as President . is
historic.!-it is clear; yes, it. is in..escapable'. It is no act of war oh
our part when we decide to pro¬
-

that

seas

vital

are

Page 114

;

•, *

Senate Passes Tax Bill Estimated To Yield

123)

page

""'®* Y '®® '.

FROM WASHINGTON

•. »

AHEAD OF THE NEWS

$3,583,900,000; Measure Goes To Conference

'
*• *

tectthe

(Continued

Page 115

®®;,®y®''7 -Y-,(Continued on page 128)

Germany continues to seek it.

'®®

®®®®v:v

icy—at' once.
sibility
rests

production dips, after hitting record high.®

Navy are to carry out that pol-

attrition

The

;

Dollar-a-Year

men

the

hands

adoption of the new tax on revenue bill by New Dealers is proceeding at such a pace that some observ¬
the Senate on Sept. 5, by a vote of 67 to 5, the measure was ers are coming to compare it, facetiously, with the English
sion is not ours. ®. Ours is solely
sent to Conference to adjust the differences between the losses in the Battle of Crete or even at Dunkerque.
.defense."
Those
] In his address President Roose¬ Senate bill and that passed by the House on Aug. 4.
The whose business; it is to keep up with the propaganda of
velt referred to recent attacks on
bill was formally reported to the Senate by the Senate Washington are wondering why Ralph K. Davies ever let
American ships, and said:
"•
■—®
v.-.YY®®®;® i, .v."1
Finance Committee on Sept. 2, as was reported in these himself in for what seems to be^—
It is clear to
all Americans
headed his way,® Mr. Davies is
®
(Continued on page 121)
v.; ' ■
'" '. "
\
^columns Sept. 4, page 26, and de¬ with the Standard Oil
American

The

defense.

With the

aggres¬

■

Company

bate in 'the Senate
was
brought
under way on Sept. 3 by Senator of New

TO OUR READERS:
The

Chronicle
the
and
the

; -

has

have

of form,

those

are

that

material

publication.
Readers will find the same features
editorials, the same corporation and municipal news,
stock and bond market quotations and essential

new

same

statistical data.
this

•

editorial

basic

•

have

content. we

added

new

the Financial
More than a
dozen new correspondents and special writers have been *
added to our staff to make this possible: However, the same
conservative editorial policy that has always characterized f
and

features

Chronicle

special

departments

make

interesting and more helpful.

will be continued.

the Financial Chronicle
~

Chairman of the Com¬
—
the legislation having
thus
been
rushed
through
the
Senate in three days. Of the 67
votes cast on Sept. 5 in favor of
the Meassure, 51 were those of
Democrats while 16 were regis¬
tered by Republicians.
The five
voting against the adoption of the
bill were Senators Clark of Idaho,
and
McCarran,
(Democrats);

been made in the Financial
rather than of content.
All,®
has been appearing heretofore in the old"
been carried over, almost completely, into
that

changes

Chronicle

George,
mittee,;

been binding their

help those subscribers who have

copies of the Financial Chronicle, we bound a three months'
supply of blank pages. The resulting volume is only slightly
larger' than our old bound copies of the Chronicle, less than
two inches higher and three inches deeper.
The new bound
volumes will, of course, be a great deal thinner.
This will
make them easier to handle." The paper used in the new
Financial Chronicle was selected for its strength and dur¬

it will not turn yellow or crumble
V
:
T ^
:
It is unfortunate, particularly at this time, that our y
publishing schedule has been held up due to the unreason¬
able demands of labor unions.
There is no disagreement
about wages, hours or working conditions, but dictatorial
labor union officials have made demands that are absolutely
ability, and because
along the edges.
r

unreasonable.
adverse

are,

circumstances

sociated

We feel con¬

helpful than it has ever been in the past.

year.

press

accounts

from

Editorials

Well* it so happens that one of
Roosevelt's concerns is just

Mr.

how to get the

country into a war

Was

The

Inevitable

113

—

Attacks

Government

'•

>®

_________121

Itself

It has been his con¬
U. S. Latin American Trade
long time.
Horrible
Relations
121
he is referred to
Washington, took the matter
Regular Features

psychology.
cern

for

Harold Ickes, as

in
up

with® the

President

when,

one

.of

mous"

the-; President's

aides

From

the

Legal

Washington

Weekly

Coke

Index
Oil

125

Front
Trade

;____L_114

Review

and

Commodity

Crude

128

State of

"anony¬

whose

of
113

Oddities

On the Foreign

Coal

Ahead

News

Output

Prices

—

120

World

114
Production—Week 117

Scripps-Howard news¬
Review
120
papers for whom he was an edi¬
suggested lower exemp¬
tor for so long.
The slogan is to Railroad Car Loadings ______115
tions in the past, he had not
the effect that if you1 give the
urged that they cut below pres¬
National
ent levels. The exemptions were people light they will find the
Mellett apparently really Tax Bill Passes Senate
113
reduced to the present figures way.
believed this slogan.
Anyway, he
last year. He crticized the pend¬
Consumer
Credit
124, 126
didn't do anything about the plans
ing measure as one which hits
submitted by Wallace and Ickes Defense and European War—
hardest
the persons the least
for making the people war con¬
Morgenthau, Secretary,
able to pay and lightest those
scious.
warns
of inflation
127
most able to pay.
Ickes finally got impatient
Roosevelt, Pres. F. D., warns
The
and hit upon his gas shortage
change
in
exemptions,
Axis
113
Mr. LaFollette said that while gan of the

fident, however, that our readers, after acquainting them¬
selves with the additions and improvements that have been
made in the Financial Chronicle, will find it even more
interesting and

he had

inconvenience caused by this

always easy to follow.

000

| GENERAL CONTENTS

Washington, $56,-

job, in the
Washington said:
L—120
public mind, was. to deal with Electricity Output
Senate action came after Sena¬ propaganda,
but whom, accord¬
Engineering Construction
* -'v
tor La Follette, Progressive, of ing to a recent magazine article
Contracts in August
—119
Wisconsin, had contended that apparently
despises
propaganda
lowered exemptions would fur¬ and believes that the truth will Iron and Steel Operations—
*
ther
reduce
low
standards
of prevail if just let alone.
Weekly Review
118
This is
living in the bottom tax groups. a philosophy he got from the slo¬ Non-ferrous
Metal
Market

situation.

Familiar paths are

understood

shortly after the last Presidential
Senators Lauger
and Nye
(Re¬ campaign, he went with him on
the Carribean trip. Mr. Roosevelt
publicans) and Senator La Folagreed that something had to be
lette
(Progressive). In its action done. He
delegated his crusading
on
Sept. 4 the Senate approved,
vice president, Henry Wallace, to
by a vote of 43 to 23, the Senate
work out a plan. -. Ickes was alsoj
Committee proposal to cut from
told to work out a plan,
$2,000 to $1,500 the income tax
Both men went eagerly about
exemption for married persons,
their work but were quite pro¬
and from $800 to
$750 the ex¬
voked when their handiwork was
emption in the case of single per¬
turned over
to Lowell
Mellett,
sons.
Under date of Sept. 4 As¬

however, carrying on under these
and we ask the indulgence of our

subscribers for any temporary

Jersey,'drawing, so it is

•

/'*

lContinued

paage

119)

(Continued on page 128)

•

114

FINANCIAL CHRONICLE

■in
,

Thursday, September 11, 1941

The

weekly

*■:.

Commodity Prices ^Continue ToRise

Lis!

The State Of Trade

j-'-

;rs >■

.wholesale / cqmrnodftyk;price

indexes Compiled" iby lr.
The National Fertilizer
Association, issued September 8, registered
its ninth consecutive advance. In the week ended
September 6 this
.Grain in commercial storage at
index rose to 115.8 per -cent of the 1935-1939
average.
It was ,115.3 40 terminal markets reporting to;
in the preceding week, 113^3. a month
ago, and 97.^ a year .ago.7;<,'/>:, the;. Department of Agriculture's

Business

activity shows little or no let-down from its
high levels.
Steel operations continue to expand;
electric power output continues substantially higher than
last year; Engineering construction awards totaled $90,The farm product price-index /rose to the
highest point re¬ Marketing Service increased hear014,000, an increase of 18 per cent, over the volume for the corded since the first week of
August, 1937. Cotton was again higher ly b%, during August, it was an¬
corresponding 1940 week.
Retail trade news continued to during the week, and grain prices moved upward. A drop in the nounced on Sept. 4; About 85%
reflect larger pay rolls and the buying of consumers who price of eggs counterbalanced continued advances in livestock quo¬ of the available commercial space
was
occupied Sept.: 1 compared
tations, causing the livestock index to remain unchanged,. The food
anticipate difficulties later in r obtaining certain supplies.
with; 80% a month earlier; This
recent

Retail trade felt the stimulus of back to school

volume

was

week last year,

to 28 per cent higher than in the
according to Duh & Bradstreet, Inc.*

price average was only fractionally higher as declines in eggs, and
meats nearly offset advances in other commodities
included in
the group. Although increasing
prices for cotton, cotton goods, wool,
and burlap were responsible for ! another rise in the
textile index,
this group average is still7;below,
jthe levels reached in August;.'The
only other price changes recorded' during the week were in the

same

August as publicity of the silk shortage set off a general'
'buying wave, is now falling back to more normal levels,!
according to figures released recently by the Federal Re-;
serve Board of New York.
The peak of retail buying was;
'•attained during the week ended August 9th, when the in-!
crease reached 47
per cent oyer the same week last year.
,

miscellaneous cbmmbdity' aver 0geC>.This> index

occupying the spot light
for commodities,

and

and 8

••that

matter what difficulties may

iae

Bears, to

food

1942

record

•

Shaiply increased

Foods- * A

I
V

•

23.0

total

domestic

The

and

Week

..A:i "112.6

112.5

125.5.

Cotton

182.3

t '133:4

•

.118.3 -

105.2

Miscellaneous

124.6V&:

Building

106.3
112.7

Materials

Fertilizers
.3

;* 9».3

Air Groups -Co.

1926-1928' base

Sept.,7,. 1940, 75.9...

'•

.../.

121.6

139.3

119.5
■

keis

112.3

lo7.l

and

tral

the

•

Ap-r

Southwestern

90%

the

About

group.

available

space

mar-

East

87%

"of

thb *

occupied

was

Cen¬

103.7
102.0

106.4

Lakex markets/- com- >r
pared with 80.%. d months ■earlier/ .;
Little

tne^cow'er

104.8

105.7

112.7- :

markets.*

96%

; .;

87.8

101.7 '

in the pfiftci*

Central

109.1 rM
102.5

118.5

106.3

107.1

hedf-It'f

were

/115.8?r

Sept. ;6;

1941;

•

;

change occured in Atlantic

Coast

lUJ.O

Wi> 99.3 ':j>7 99.3 ^

changed January • 4*
on

■

99.3

115:3';:,? 113.3H >

and

Gulf

markets

14 and '82 percent,
of

97.4

the

commercial

16 ''1935-1939; average ia cupled August
90.2; -Aug. • 38, 1941," 89.3," temberil."
<

where

respectively,'*

space

T ^and

oc- <>

was

also

Sep- ? ?
*
V

•

.The

transfer

grain storage 's
at Sah"(Ftahcisco 'to bchfer:•
use^, reduced -the. sphce kvaiiable !.f
xhx; ?gi am': rnaterla'iiy - iri *
Racific^ '
Coast markets.'"With aif"increase &J1'
space

Ijand with ii view generally toward restricting output,

World Prices

Steady

An interesting item is the statement of
Secretary ofGeneral Motors Corp. and
Treasury Morgenthau* in a recent address before the
Cornell, University,twhich .prior .to., the
^Advertising Club of Boston^ in which he urged selling bfi European war had cpllaborated^ln .the, publication of a world com¬ !i2itrillliori;
busndls^^
modity price index, have resumed issuance of international iprice
'.j farm surplus in order to curb inflation, which he said was! statistics, but on a different basis than before the
75% of the space was occupied
war.
Instead of a
already under way. He stated: 4'this has been historically
at' the close:' of the* month.--Thi^
composite index of world prices,, these organizations now are^pub-5
a land of. milk and
compares with 38% occupancy on
honeys There is still plenty of milk and iishing the information onlyas individual!country indexes.
August ' 1.
M/Jll
-honey, but too much of it is in the warehouses. Let's make
The index is built upon 4Q basic commodities-and the list is
the
n

■

Machinery

'Farm

100.0

__—

• •

136.9

ny.5

Fertilizer

Indexes

space

80.8

'103.8' i' '103.9

Materials'
Chemicals
and
Drugs—

period

tnese

bushels

iiilea (Sep temb'er 1 in; ,V/esk

was

83.8

97.9-

124.4

13,4 n ,;.138.0

103.8

1.3

100.

Commodities

Textiles~st-Zji;i:u —? iv:

7.1;

6.1

"Base

v,' At

million

wheat

proximately

:V 87.4

150.0

winter

pal

66.9

114.7

<156.9

67.0

•

101.9

8.2

tinued to increase

92.9
•

U17.5

= 143:6

i 1940

1 107.8

122.0-

"-'cottonseed OiiiL--Ai^v'450.7i>
Farm Products'—119.6
'

1941

.117.3 i

•

the

September 1 occupied near^
ly 8o% of me available commerr
ciaf storage space.. Stocks - con? ,'

Ago
Sept,. 7,

•

Aug. 2,

•„

,194t

■

•'

-10.8

store

Year 'i

Ago

Aug. 30,

la4l'

si08;5'>

spring V
Minneapolis;;.;

Duluth-Superior.

points

stocks

at the

was

markets

wneat

seated.

greatest increase in

during August

Preceding Month

Week.

•

pro-;

commercial • storage
space
placed at approximately 450,
bushels.
The
Depart-'

was

•

,•••"-

•

Fa6s and-Oilfr

import require-1
ments and to forestall
possible domestic shortages is planned
in the 1942 farm program announced
recently by Secretary
of Agriculture Wickard. .......
!!
{ '/
j
v
The new program is featured
by production goals on
1
all essential agricultural products and
by a price guarantee;
of 85 per cent of
parity on the protective foodstufis. Hither-1
to, production goals have been set only on the major crops!
.

Group,

duction of various foodstuffs to fill British

INDEX

Sept. 6,
•

j
•

kinds

ment's announcement also

Latest

u•

25.3

output is set by the Government;

•to meet British and domestic needs.

PRICE

/— 100*
,

be presented through;

COMMODITY

Total index

possible intensification of submarine warfare, this country
j'.is going to increase its exports of staples to Great Britain,
Russia and China.

all

;

stocks,;

;

WHOLESALE

% Each Group

suming dangerous proportions. This is reflected clearly in
the soaring commodity markets.
It is generally realized

Commercial

.'"i-''-.y*'

"Compiled by Tne National^Fertilizer> Association

private

and 'foreign r grain
totaled 876,729,000 bushels Sept. 1, while the

41 advances

were

1935-1039

as¬

points.

including

7
•

storage
processing plants at

mills and

these

declines; in the second preceding week there
(!>•>'' i-'-c*

17 -declines.

and

which is

include

During the week 34 price' series included in the index advanced
000,OuO
8 declined; in the
preceding week tnere were also 34 advances

WEEKLY

Inflation appears to be
more.
Hence the rush

and

rosek slightly as a
higher cattle feed quotations; -the price of rubber declined.

result of

■'

doesk not

some

However, the retail trade boom which reached its peak;

;

demand, and

(

the

fV"'it flow.

{

to let it

doing something even

ing to make

...

for each, country, in-vsp-.far: as
Jpossible.v, Each commodity is
weighted uniformly for. each country, according to its relative im¬
portance in world production.
The actual price data are collected

flow to the public, we would
not only help in keeping prices stable, but we would be1
were

same

important; 5 we'would be help

National Banks

Tq^nerar;JM[ptqrs; by^ea^^e^ibha; ^rbMf^lunpe^^es'- '-'I The
from

cw£ekl$

information

following

the
office
oftnekCompL^i
people healthier and happier." He states scribed as "the most responsible agencies available in each country,
troiier
of (tne> Currency,
further t "it is sh^~iolly~irpnt.fhq farmer's (iTrea-! ;
usually a goyerpnient pepartmenL"^. The commodities involved in4
point s of view
Sury Department:,
\
\
Hude ^"avpqmprqhqnsiye
to push prices up by
Ji^tpfjsevei'al; groups; Ihcludihgograih^
creating scarcities in times, like these
Common
Capital" Stock- InThe farmers suffered
cruelly for twelve long years after the liyestockahdlivestock)prpduCts,:rmIscelIanedUs.foodsr(coffeejCocoa; creased August 30 ~ The Lub-:v
tea, sugar, &c.), textiles, fuels, metals and a list of other
miscellaneous
; collapse of. the inflation of 1920 and
1921; thejy should mot materials <rjubber^.;%ide^
^ (hWspript^flihse^'
&c.)i"
be made to suffer again."
Weights assigned in the index to the different commodity groups are bock,-;,;Texas. QFrom &$200,000 - to »r
^

our

•

follows:

—""Thb force 0f defense
spending is being felt in the Middle
JWest as moTe projects are
placed in this area,
In these
a

fodds^

laneous, 18.

sections

Grains, 20; 'livestock and livestock products,

table fatsr^and btheri

^'! > ;j! V1? "cv ij?"!

19; vege¬

eisr;tl;imetalS, 11; miscel¬
f:^ ^
': % /tvMV.

new

prosperity is evident, but it does not favor¬ ['The indexes,which are based on prices ^expressed in the currency
of each country, were
reported Sept, 8 as fqllows:
ably affect the areas away from new/construction. How-j
:•!• (August,, 1939=100)
ever, the relatively moist summer and the
ArgeiiAus-- Cony, '.lEngprospect for fall
Sjoe- SwitZ"
' Mex-y ' New
United
ima
trali<£ eda^s land
Java
ico
Zeal'd
cditrtytjerfandli States\
crops, with abundant pastures, •. fatve given an impetus c to
1940—
rLw
'
?

-jy

"farm sections.

The

producers with all their -various FedVeral payments are
receiving parity, so long desired, and in
consequence ate finding the going .easier/*;" *
Vf
f

TheBuropean:war, national defense and^lie feafcoffini

flationto^

;
'•*

May

118

June

.118

July

August i._
SeptemberOctober

,118

1941—V';;" I

136 '"

1095V

140 h.

109? k

120

132.

144

109

153

111

.1150

•

122

113

»,?.

126

V 124

/126

•

Aid :Ta Poland
...

President

Roosevelt

announced

Sept. 4 that he had authorized

...

„

(the

transfer

articles to
land

the

under

various

defense

Government of Po¬

the

Lend-Lease

Act

and declared that the

gallant resis¬

tance

forces

Poland

the

ernment

the

Gov¬

"vital

the defense of the United States."

•

This

action,

demonstrates

the

President

our

said,

intention

give
material
support
to
"the
fighting
determination
of
the
,* Polish people to establish once
again the independence of which
they
were
so
inhumanly
de4*

prived."

The;; White

»;
f
^

■

issued.

Sept,.

House

;
.Statement

also!. said,!(tha!t

Pol^h

Ichine

President's

order,

Mareh

guns,sub-machine

guns,

rifies> artillery equipment, trucks
and
to

other

supplies will
troops in the

these

;:,?»146
149

Government of Poland

con¬

aid

the

United

all

who

States
resist

120

111^118
Ill
119;.,

acnussets.

119

144

.*119

147

122

129 '

119

...

154

176

122

;

121

131

150

<125

115

119

156

180

134

rl52

-129

117

120

156

189

131«

119

121

155

193

123

156

194

137

121

137

155

-120

4142

T58

•

.114 <

139

rl55

134

123

121

154

•194

141

»T56

134

126

121

156

194

.(137

ri35

136

126

122

155

194

rI36

>137

rI26

124

155

194

•137

rl27

.,123

rl35

't 120 '

142

5157

138,

156

194

137

136

120

142

*158

137

123

156

*194

13 7

137

120

142

♦157

138

127

123

156

138

rl21 4

138

_4
r

Revised

121

;

Sept.
veit

1530A.

as'-

137

day

♦157

139 k

128

>123

156

139

143

•157

138

127

123

son,

156

.140

■

Registration Period 1

educational

development

the

took

■

f;
the:

otner

oath

The

Government

Senate

(Sept.

5).

the

Robert

offi¬

confirmed

the

same

Jack¬

Associate Justice of the

Su¬

Court, who is Mr. Biddle's
predecessor,
administered
the
preme

President's

brief

ceremony

office

the

White

bank men and women of New House. Among those
present be¬
registration period for the York City and vicinity. The edu¬ sides the President, were Secre¬
cational
semester of the New York
courses,
covering
the tary of State Cordell Hull and
Chapter of the American Insti¬ needs of those engaged in the Secretary
of
Commerce
Jesse
The

Hennessy In Boston
(Special

The

Financial

BOSTON, MASS.
Hennessy has formed

Fall

Chronicle)

William A. tute of Banking will extend from
banking" profession and the re¬
Sept. 15 through Sept.- 19, with lated fields of investment and fi¬
offices, at 24 classes resuming on Sept. 22. The

—

nessy

Federal

general

Co.

with

Street,.; to
securities

W. A. Hen¬

nance,

engage

business.

in
,

As¬

Chapter,
can

section of the Ameri-! ter- in

Bankers

Jones.

Mr.

Biddle

had

previous¬

been

Solicitor General, hav¬
offered by the Chap¬ ing served in this post since Jan¬
cooperation with Colum¬ uary, 1940. The President's
nom>,,

are

Association, is a^ pro¬ bia. University/, thus >; assuring ination of Mr. Biddle; on
Aug. ,25
association/; the,--primary! academic ■! standards in v the'i con- was reported -in these <
*

will'

fession

■

„

aim

which

to'furthersthe- duct of the work.

Aug. 30, page 1219/

columns

as Attorney General on
before President Roose-

and

cials.

143

Biddle

appointment:!,; earlier

oath

AIB

Biddle Sworn

of office
121,:
121

rl57

preliminary.,.

Certificate No.

132

137

Dorchester; Boston, - Wfas^-;:

129

i„ll50 V123-

extend

aggression."

125

120

1-156

—

September ^

Snawmut 4Bank M

120

113

143

5—The I National

120

111

121

141

•»

171

rl20

133

___

rl72

;

Authorized

of Boston/Boston, Mass. Locatioii k
-branco/T' 577-589 I: Columbia
*

120

Branch

114

121

Aug.

National BaiiK

118

133

Aug.

118

133

i'.Vv

"First

soil Cityi"<;

158

—4-—L_:

National
Bank
of \ Piper;"
City," Piper City, County of Ford, •
ilk, changed to Gibson' City; Coun'->y
ty of Ford, 111;, ana title cnangeti

Francis

'The

First

168

—„.

Aug.

Title '

164

:•

rl33

Aug.

Change of Location and
Aug us t
30 — Loca tion t- -of

142

]150

126-

;,r

(

4'4vS'4'.*'v

Aug.
,

-•

144

July 26

tinuing expression of "the policy
of

July 19
-

The President stressed the im¬
portance of this new aid to the

t> 118 4

.i1;

136

"July 12

fu¬

near

120

126

July

127,1150

127
4 126

119

Weeks end.:
..

111

112 V

121

——'
—

1941—•

sent

ture.

troops are now training sociated .with the firm
Canada^ for action overseas, Charles J. Thornton.

ma-

:^115

112?;

135
.145 -116 '/■ 110
122
:145t f 117 '110 4120 4 138

133

the

-116 ^113

Road,
114

114

July

under

—_v_„—

February
April

"132

.i 121

113 »v 125

4."

May

ll9

131
131

113 .123

November

<143

132;

116 A120

January

ll81
:i

120

120: -1144
' 116
113
114
5*145 'V.-llS-- i112;r>114,'

..<•

.118118

boomThc^ifarni;

lrealty agencies made by the Northwestern NationalV. Insurance
Company reveals that farms are selling faster than
at any time since the
depression. •
'
4
-k

120

$300,000;'' >Amt; of increase <$1005-

000.'

;
^
v

Volume

Number

154

115.

CHRONICLE

FINANCIAL

3979

woufd

incessant ' patrol
by convoy. -' i\or
would it be dependent, as an al¬
ternative,' upon easily; disrupted
.require

Revenue Freight Car Loadings During^Week
Ended AngiJOf 1941 Mounts lc912,720 Cars

IfPetroleum And Its Products !
;tf~."The plans of. the petroleum industry and the Office of

railroad

freight for the week ended Aug. 30. totaled
912,720 cars/the Association of American Railroads announced on
Sept. 5.
This was an increase of 143,945 cars of 18.7% above the cor¬
responding week in 1940; and an increase of 196,323 cars or 27.4%

the Petroleum Coordinator for

yards

/Loading of

'the

a bo ve

•w

same

revenue

1h''■<•*I?

week '.in

'"i'/tt'l;,,,

;

V'-C

fc'v

i-1^

'! "s

•

-4

'I.'

"«

' *•

immediate

and ^movement

'.■•>

K'>

start

the

time

construction of the

with

movement

and ponderous
of war."
/.
:

jammed

buraens

;

$80,000,000 defense pipeline from Texas
'I'he acUon of the SPAB in re¬
the 7 New York-Philadelphia *; refining 7 area ■ came ■ to a fusing"
high priorities in orcier

•

sudden

the

make

jhalt! on September 9j when the Supply, Priorities

needed

available'

steel

immediately tor a start on inch
/^Loading of revenue freight for the week of August 30 was an and
Allocations -boards rejected
Petroleum / Coordinator
pipeline means that it cannot,
Increase of 12,970 cars of 1.4% above the preceding: rwe^k-. f. 1 i : >
ickes' request: for high <
priorities^ •'
; 1 { ""
" 1: '•
'
now possibly be completed m inc.
Miscellaneous freight loading totaled 3fi0,305 cars, an increase of on
of
Production - Manage¬
480,00u to 700,000"tons oi steoi ■vjifice
*13,391: Oars above thO-preeding week, and • an -increas^ of 86,641 cars plates on - the ground that ' steel ment; In commenting upon 7 the spring of 1942, as nad beeAr
above the corresponding week in 1940. )\//
v;,?,; ty.'V":--■
/-.J' supplies are too limited at pres¬ need for the; pipelines in his Sep- pianned, and probably now wni,
-

not be finished
until mid-1943i/;
Loading of merchandise less than carload lot freight totaled 158,- ent to ^permit ,* the diversion of lember 9 appearance before tne
Since neither Mr.- Ickes nor Mr..
increase of 1,209 cars aboye the, preceding week, and an
such/./amounts'' "for the construc¬ Senate'/group investigating the
Davids attended the SrAti meety
Increase of 4,651 cars above the corresponding week in -1940.- V
tion/of1 a . pipeline. Use of- seam- shortage -of gas and oil on the mg, there was no
passing upon,
;/ ;Cpal loading amounted 'to 170,338 cars,z an- increase of ^685i cars ies9 tubing for the .pipeline as a East' Coast, Deputy Oil Coordin¬
tne
question of the pipeline it-v
above the preceding week, and an increase of 31,910 cars above the substitute for .the steel
plates is ator-Da vies pointed "out that the
self, merely the ruling mat steel,
.'•correspohding^week. In1940.;t// ^* j* v";-i
be.ng discussed, but this question president and the key defense
r

311

cars an.

^Grsurtiahdlfgfaiii:^tbi£3^!43,5$6/^
of 89

will-

below the preceding

week, but an increase of 6,203 cars
■above the corresponding week in 1940.^ In the Western Districts
alone, grain and grain products loading for the week of August 30 to^
ialed 29,601 cars, a decrease of 1,124 cars below the preceding week,
but an increase of 6,115 cars above the corresponding week in 1940.fi/
V

cars

Live stock loading

12,462 Cars,

amounted to

not

probably.

built

been

needs for other defense industries,;

eleven

major

Inc--;.had

more
importance at me
time in view of the short,

present

that

supplies

fense in order that the most popu¬

oil

were

the

giarit

tne

pipeline

sup¬

snouid

plan

any

approve

the,:backing- of industry, would not have to de¬

pipeline

sought. ;/ Even

plies

companies v7 by-; an■' • industry-l'i- lous area in the" United"-States,
nanced./National Defense Pipe¬ with its extreme concentration of

increase of 449 lines^

settled 1/until

agencies/ backing'
the - proposed
pipeline did so "because we need
viThe pipeline,^ v/hich was to have them desperately for national de¬

week

wim

buik^

seamless f

tubes, construction would be held,
3,706 cdrs" below the Petroleum Coordinator, of pend for7 its life blood/ upon a down in order tnat tnere
would,/
the corresponding week in .1 1940.
In the Western Districts" alone, President Roosevelt, of the War tenuous 2,000-mile line of ocean
be no. interference in / the con-1
loading of 'live stock for the week of August 30 totaled 9,225 cars, and Navy Departments, of the tankers, exposed to "attack" by iruction of shell
above the preceding week,' but a; decrease of

cars

increase of 351

above the

cars

preceding week, but

decrease oi Office of Civilian Supply and the torpedoes

below the corresponding week in 1940. ,,•'//*
'.
' Forest
products loading totalejK47,750 cars, a decrease of 2,695
cars below the preceding week, but an increase of 9,113. cars above
the corresponding week in 1940. '
Ore loading amounted to 76,548 cars, a decrease of 471 cars be¬
low the preceding week, but an increase of 7,258 cars above the corr
responding week in 1940.
"
■ 1
•
s
^"
Coke loading amounted to 13,470 cars, an increase of 491 cars
above the preceding week, and an increase of 1,875 cars above the
corresponding week in 1940.
v
r
•
All districts reported increases compared with the correspond¬

3,154

ing weeks in 1940 and 1939.

1940

weeks

Jo.nu8.ry

weeks

February--

weeks

.—'

3,817,918

------

weeks
weeks

weeks

Week

3,^13,427
2—883,065

August

-727,073
743,050
761,11)8
768,775

—

—-*-1

—

August

—-i

August 23———.

———

—

Southern

Coast

Line

•

Durham

Gainsvllle

Gulf,

(NUMBER OF CARS)—WEEK ENDED AUG. 30
:

Railroads
k :""/•.

Total Revenue

;

Louisville

1941

Ann

tUnicago, Indianapolis &
Central Indiana—
Delaware & Hudson

Detroit

5,313

5,321

8,050

8,946

iUi 8,57.1 ,4*

380

;•//..•:

13,516

8,960

140

1,591

10,513

8,708

8,724

3,542

...

10,308

2,593

2,566

5,161

3,345

374

2,347

2,176

-67

:// 25

50,850

42,340

16,171 //

11,638

40,677

10,256

9,731

York, Ontario- & Western——

1,204
'

412

965

5,914

7,233
8,992

2,405

1,800

14,241

10,388

1,623

1,163

8,408

6,020

7,470

390

328

229

•

——

8,080 -/:

418

1,012

880

•

5,346

...

349

266

880

44 2,593

:■

246

1,910

629

1,242

5,362

5,390

10,447

8,740

4,398 v

4,473

4,365

3,457

145,444

206,589

162,360

724

606

—

396

'441

6,486

Lake Erie—___—_____

6,091

;

6,552 r; /
45,/ •-

5,348

882

•....751

Shawmut
Pittsburgh, Shawmut Bi North.—
Pittsburgh & West Virginia
&

5,695

5,929

6,202

Marquette—

Total

1,903

2,690

6,449

43,575

6,308

2,460

1,273

1,332

•

Lines

Rutland

2,115

1,940.

192

1,621

7,461

2,671

4,084

4,706
.

12,265

Wheeling

1,101

15,586

-12,775 .>:■< 13,041

166

153

393

',/

: /

31..

3,297

xl,782

22,376

16,266

22,749

-22,"(24

8,357

131

5,623
534

114

676

390

231

3,110

2,699

1.637

1.311

■

3,400,:

3,002
1,084

470

434

153,689

4,692

148

164

158

103,451

101,519

18,743
;//' 68i.

14,86*7
686

1,158

1,056

88,968

68,461

St.

3,218

2,504

2,562

3,420

3,065

25,299

20,902

20,994

11,569

9,384

3,878

4,587

Ft.

Green
Lake

7 4,498

4,706

20,707

14,277

319

1,737

902

1,108

499

570

11,038

9,695

/•* 7,072

9,238

6,377

679

576

412

184

26,143

24,506

21,776

4,469

;

Des Moines & South

Dodge,

Great

4,237

24,858
-

Atlantic—

Shore &
& Eastern

Joliet

Elgin,

..Northern

Bay & Western—
—^
Superior & Ishpeming..—

680

3,438

1,851

790

620

102

■;•."> 8 3

1,921

'•

3,619

2,262

204

•

3,623

516

3,287

2,458

634

8,325

7,918

8,289

3,506

2,041
3,012

13,386
! 214

11,244

11,101

5,150

3,923

351

307

362

327

2,672

Pacific

Spokane International——___—

2,005

1,560

2,742

1,889

Portland & Seattle—

Spokane,

255

Minneapolis & St. Louis
Minn., St. Paul & S. S. M.„__—__
Northern

10,931

—

P. & Pac

South

Duluth,

14,297

19,206

—

Chicago, St. P., Minp. & Ohiaha
Duluth, Missable & Iron Range

1,000

(
t"

151,655

Total—I-—.
Central

22,380

.i./—

Alton—
Bingham

Chicago, Burlington & Quincy
Chicago

Denver

382

15,300

11,068

Lake

Bessemer

Erie

-----

761

541 :

44,052

/ 34,932 s

.'v

1,108

31,572

6,268

7,284

—

447

2,316

739

2,208

1,639

v/: 986

12,576

12,304

11,745

2,672

2,669

3,301

2,722

638

.692

800

1,470

1,336

4,385

3,156

14,518

5,023

Western

.//:

——

Denver

816

3,911

1,880

945

9,315

1,298

981

742

975

1,181

City

3,933

805

;

Z/,

—

2,110 !

North

Western

Peoria

335

15,335

545

■

Creek

Cambria
Central

312

Gauley

130
474

;•

291

9
5.109
'

1,674

1,289

Ix.ttoJ

i,.uu

14,706

1,929

3,183

2,273

113,139

111,522

74,330

55,915

163

159

234

296

2.297

2,083

1,399

,2,018

2,454

1,926

1,053

837

131,291

286

264,

1,927

■

1,944

Indiana

&
R.R.

Cornwall

New

22,134

2,201

:>..;■i

■>

Pennsylvania

VaHey™

Lilgonier

1,474
5,922

675

—

Cumberland &

1,502 v672

196

200 ••

.,.-v:ii7

—

4 d

661.;
;

■

16,358
; .">:■•

214

;£■'

11,477
52

"/•"/ 26

127
770

567-

80
'

■

■•

\37

■■■**

•

Island
Penn-Reading
Long

Seashore

Lines

Total—

2,307

—

93,898

17,278

;,v
•

19,676

Maryland—

3,028

2,595

Pennsylvania System
Reading Co
;
Union
(Pittsburgh!
Western

957

—;

4,226

—

202,796

1,536

1,651

71,497 'v

62,157

15,000

/,, 3,464

'162,829

■

•59,777
23,469

^
<•-:

11,750/',

19,513

■/;

1660

2,126

12,889

6,759
9,095

44,375
17,350

■*'.

3,439/;-

...

6,059
.6,970

'112,487

Chesapeake &
Rorfolk •&
■

• *

: /■:"

■.

Ohio—___

Western—

___

■

7" " *-

29,233 7 25,846 '7 25,562
22,142 •..20,671

24,869

Virginian^—v7:,: 4,931,

4,2.65

; 7 ,7 7,7

13,445

•"

6,138^'c-i

4.513 ;7.:,1,838

59,033)?'i;:52l253 -iS50,746;v;-j2i^2I

Southern

City

Gulf——

Litchfield

!
i„

Missouri-Kansas-Texas

Acme

Louis-San

St.

Lines—

-1-

&
8s"

;

; i

21.

59,315
'iJ L'f

.*.}

>•

.-■*

7-8
.

: '

■*

; '

jVote—Previous year's figure revised. "

surplus tank

8,935
5

133

6,363

4,916

3,401

2,385

7.555

7,030

4,125

4,699

3,258

206

V'-;; 44

movement

crude

About

Coast

area.

finite

thing

result

that
was

reduced

schedule

traffic

rate

only de¬
a

airing of the tank

tne

situation

car

the

developed

oil

low¬

whicn

gasoline, fuel and: heating
by 25 per cent and set crude

oil

rates

first

on a

class

reductions
some

basis of 13 per cent

which meant

rates,

high

50 per cent

instances. The

with the ICC

probably

new

rates,

September

will

go into
effect
and will be effec¬

week

tive

until

less

cancelled.

December

31, 1942,
,,/;

•

un¬
-

2,946

3,937

cars

petroleum products
shortage-stricken
East

the '

12,220

•-,16

50,959

;

•

yr.

■

?>j5O,03f '•/ 48,240/

{

Pelley,

Association

Gulf Mobile & Northern only.1

American

the

Rail¬

roads, told the Senate committee
September 3 that there were

could '

move /

8,000,000?
figures,

President

_2^ 20,000 idle railroad tank
'. 34.92

•- ..

refined

> i
*

by
tne
Mr.;

sevued.

During
Peliey,

Mr.

and

within

2,495

151

118

those

group.
oi

for

227

3,895 }

4,165

one

number

tne

227.

7,270

2,273

8 389

New Orleans—
——
Pattlfifel——"———

(for transportation)

available

3,004

150

-{7,471-

2,646

that

extent

Downey, of California and
Davies,
the
Senate / heard
widely conflicting claims about

417

281

die

Mr.

4,095

;;

adding

aen

'4,718
81

the.

Budd, defense transportation ex^
pert, C. F. Dowd, Senator sheri-'

14,588

4,333 ,u:

114,389

basis

date,"

Senate

tiled

109

9,218

Francisco—j.

1.35,7

^'17j387

not

testimony

1,016

snort-''

oil

tne

the

over to

was

1,468

nof: pare

Senator lvlaioney'

that

the

1,554

-157

Davies'

And the transportation question

1,994

/ ' 691

East

available."

are

330

2jJ,0tKJ

the

could

the facilities:

,1,831

16,922

Pacific—

over

hearings
tnmk

1,950
298

•

Mr.

think

age

169

cars

barrels,

1,88

648 /■

and

/ that

174,000
said

3,022

4,507

Louis; Southwestern—-—.

Texas'

utilization

tank

Despite

sistance

,1,896

■

Davies

his estimate of the daily snortage
for tne balance of tne year below

,2,311

834

:——

Pacific

Missouri

full

area,

tural.-

-.309

395

Arkansas

166

Midland 7 Valley.—

Missouri

Mr.

could

60,000-barrei daily
saving
from
drivers' economies
and other figures which oil men
regarded at best as highly conjec¬

; 241

2,524

]

—

i,947

2,882

10,991 Wichita Falls & Southern:-;-——Lj6,039 "Weatherford M. W. & N. W.—-—--i..

.248

;_l-_7—

Madison

3,074
:

2,210

Louisiana .& -Arkansas—_—_i—-—

St..

District—

Kansas,' 'Oklahoma
Kansas

;3.675
;

tnat

up
witn a ' surpius" oi
.barrels.., Tne Senator

additional
Coast

sub¬

transportation

Coast

from

wound

oils

•

Northern—

International-Great

Quanah

137,795*- 146,223

Dfetrkt—

Southwestern

Burliftgton-Rock Island——
GUlf; Coast Lines

.Texas
Pocahontas

gather

ered

2,676

./;./. ■ 4

6,464

9,013

Jersey

TotaL—

18,230

298

343

possible gains

497

'/:/ 7 49i

;.297"

2,072

Pacific————————,.

26,930

385

17,420

;

814

115

1,652

26,867

Western

System

1,670

2,315

■;/./'/.

/:■//• :!753:-: /////';558,/'

31,243

(Pacific)-

Pacific

Union

879

Union

Pacific

1,279

1,943

1,267

Pacific-——

Pekin

Southern

2,050

Northern

Nevada

1,936

974

1,119

Missouri-Illinois

the original di¬

Terminal

Illinois

: 918

4,670

Buffalo

the

East

8,670

3,163

Lake

Salt

Worth

Fort

2,324

Allegheny District—
,

the

5,895

610

Southern—

Denver & Rio * Grande

9,106

2,902

2,936

15,146

—

Chicago, Rock Island & Pacific
&

20,116

3,029

669

Chicago & Eastern Illinois
Colorado

49,982

63,812

18,726

—

Midland-

Illinois

20,018

3,485

Garfield—,—

119,340

SS;/

& Santa Te System

Atdi.- Top.

132,455

District—

Western

Utah

—

stitute forms of

counted
20,922

that

admit

Chairman Maloney deducted

'ail

:".7
23,270

North Western
Great Western

Chicago, Milw.,

Davies

day after

1,140. ain,

{580

Ma-

Senator

version of tankers to Great Brit¬

3,419

Northwestern District—*

Western
Akron, Canton & Youngstown
Baltimore & Ohio

rels

5,907

441

before

came

original snortage of 3oo,0u0 bar?/

5,204

20,448

when

ordinator

1,375

there actually was no snortage on
the East Coast.
Starting wim

344

431

Southbound——u«r.

September

7,759

21,664

—

1,236

25,037

respec¬
need

series of high-t

committee

Senate

tne

371

♦

-/■;/,'

The climax of

397

9,639

—

were

ly contradictory witnesses

9,039

447

Potomac

2,832

that their

ground

industries

steel.

3,316

11,127 *

225

•v:;

129

232;

/•;

Central

410

3.595

21,447

;

Rail-

/ 144

577

;./'} 214 V

oj.

loney, Chairman, sought unsuc-*
i,63s>! cessfully to force Deputy Oil Co¬

117

1,773

291

4,365

System.—.

Tennessee

1,007

27,371

-i—

Line.:

Winston-Salera

829

■;:/ 898

469

Association

586

1,036

i. 345

317

381 !

26,142

System

Northern

Piedmont

2,121

;

1,461

Toledo,

186,463

tive

1,206

2,747

408

426

1,266

1,414

1,373

205

480

336

:■

./.'

425

1,407
--•■/

3,060

53,269

Wabash

1,310

3,698

& Hartford———

Pittsburgh

131

ioi

272

174

—-

Central

7,210

1,629

4.973

——

N. H.

7.475

''.

274

15,933

—

York

1,795

Pittsburgh & Lake Erie

10,673

366

ir. Y, Chicago & St. Louis
NT. Y., Susquehanna & Western
Pere

398

2,094

Monongahela

New

2,110

2,349

Western—---——^

Montour

Y.,

2,193

2,620

Maine Central

2,490

1,313

Hudson River——
Lehigh & New England
Lehigh Valley
_.

New

373

;Er■

Trunk

9,672

13,689

1,674

1,433

203

1,295

Mackinac—.——

■

Grand

7,708

263

7,348

& Ironton
—
Detroit & Toledo Shore Line———

Lehigh

■

10,403

Western-

Toledo

Detroit,

833

1.290

",•17

—

Lackawanna &

1,425

644
;

1940

1941

1,609

—

Central Vermont—
Delaware,

---:

7.627

1,838

Louisville—

1939

776

9,403

Maine

629

988

& Aroostook—

Boston

//'4

4597

Arbor

Bangor

from Connections

1948

442

435

—__a_

Nashille

Chicago

•;'

Eastern District-

2,733

Norfolk'

Loads Received '

Freight Loaded

/, •'://.-'. '-'4.' •••///

the

80,000

Total

'- :'

3,753

—

Central

Chicago

3,850

203

•

•/

;

Macon, Dublin &. Savannah
Mississippi Central
Nashville, Chattanooga & St.

FROM CONNECTIONS

AND RECEIVED

LOADED

FREIGHT

REVENUE

•

3,958

•

122,167

a summary

week last year.

same

IV j

5,284

}

Midland

Southern

the

1 017

6,567

—

Florida.
Mobile & Ohio-————1.

oi- the freight carloadings for
the separate railroads and systems for the week ended Aug.'30, 1941.
During this period 115 roads showed-increases when compared with
is

The following table

V
i_

Florida 'East Coast---1

Fred.

! 1,521 !

603

9,386

1,824

Southern.—

Air

23,454,918

1,925

787

Commission, and

President

265i roads—had opposed the pipelines

741

Greenville-

Seaboard

/;/ 27.724,313

289

9,561

CUnchfield_r_7—

Richmond
i-—

Carolina

Charleston & Western

21,183,708

Total

770

265

778

Georgia

Illinois

2,532,236
656,553
,
661*023
609,793
683,906
716,397

912

.:*/

Pelley,

| American

1940

1941

J.'

4,855

Birmingham & Coast

Georgia—_______

•

/v
:

1939

249

of the Maritime

10,796

Atlanta,
Atlantic

Georgia* &

450-

Alabama, Tennessee & Northern—
Atl. & W. P.—W. R.R. of Ala.-7—1-

Central

1940

1941

District—

2,563,953

2,822,450
717,927

878,549
690,374
899,750
912,720

August 9—
Week of. August 16—
of

Total
Loads Received

from Connections

Freight Loaded

2,976,655

com-^

investigating / the
East
Coast shortage — Admiral Laud,

•

Total Revenue

Railroads

2^225,188
2,026,408

...

■■■■

2,896,953

July---—-—-———-—————-——-—-———

2,288,730
2,282,866

.■■■&*

2,490,212
3,351,840

Week

April-';; 2,794,563
2,795,663"
4,160,527
of May--—'--——————————-----—1.
4,160,527
of June
1——'3,510,137
of

weeks

Week

2,557,735
2,488,879
3,123,916

2,824,188
2,824,188

;

March

2.740,095
2,740,095

_———

1939

'i'wo,

before the benate

witnesses

mittee

Columbus
1941

casings;

which

bombs,

cars

and

from

barrels

(Continued,

that

cars

6,000,000

of' •-Crude

bil

page

116)

"■

." .JIII;?^, ujuW &At4*jufcvuu

116

FINANCIAL

they

Petroleum And Its

are there, it
blow to the

ous

defense

Products

-ij-J..-

tiate

his

very

morale

program."
claims

that

"at

the

cars

moment's

closed

that

leum

the

Institute

vey

the

available

were

notice"

and

American

had

that

have

"Within the past week

"This report
selected

man

made
tank

was

the

re¬

reported, after
having dropped 2,103,000 barrels
during
the
August
23
period.
American stocks

were

imported inventories

000

barrels.

There

were

„

which

oil

price
-

Gasoline Situation

following extracts

;

First

The

Federal

Boston

<$>

(Boston) District

reports

Reserve

Bank

its

"Monthly
Review" of Sept. 1 that "in New
England during July the level of
general

business

activity

in¬

creased-over that which prevailed
in ' June, • after
allowances
had

been made
for
customary i sea¬
lessees, and from
the 20,000 idle cars actually exist. Maloney committee investigating sonal
changes, and was consider¬
date, it is
the East Coast oil situation to
The oil companies have promised
still evident that there is a sur¬
ably higher than in July last
to use all of the available cars to recommend the discontinuance of
year, but the volume of construc¬
plus of some 20,000 tank cars."
the night-time ban
upon«motor
move
crude and refined oil into
car

and

owners

the results tabulated to

•

In denying that he had had a the East
Coast areas, the railroads
request from Deputy Petroleum have cooperated by lowering their
Coordinator DaVies for "any in¬
prices and the PCO has appoint¬
formation," Mr. Pelley said that ed a veteran railroad man to su¬
he
was
surprised to read Mr. pervise tank car movements, so
,

Da vies' statement that "when

one

only time can give the final an¬
/ the
question
of: idle swer in this case.
It must be re¬
equipment with railroad people, membered,
however, that even

pursues

one

finds

the

most

elusive

tank

to be

car

one

with

things imagina¬
ble." Ralph Budd, defense trans¬
portation expert, backed up Mr.
Pelley's statement on the follow¬
ing day when he testified that
there

sufficient

were

available

move

crude-oil

daily.
sharp

Mr.

Budd

than

Government
is
holding
down
prices of gasoline and other prod¬
ucts.

,r <

•

;

from

for

whole

Manuel Avilax Camacho

pipeline situation was a States
"Trojan horse" to cover the con¬

declared

that

settle¬

was

Management had the authority to
enforce rationing of gasoline to
individual consumers in the East,

such

should

action become

neces¬

sary.
*

Dowd,

oil

traffic

expert

Eastern

area.

the

whether

tank

cars,

relaxation

leaves

per

the

very

which

curtailment

still

cent

ahead

last year's consumption."

Further

ley's
8

claims

when

ney,
Mr.
-cars

attacks
came

Senator

upon
on

based

While

admitting that dealers
"happy" under the curfew ar¬
rangement, and it-is cutting con¬
sumption of motor fuel 10 to 12
per
cent,
Benjamin
Jacoby,
of

Retailers

the

Associated

Gas

the

ministrator, for
the

East

"do

some

not

profit"
Jacoby

100,000

service

allow

war

materials

the

Soviet

movement of the tankers
the

Ar¬

trouble

through

areas.

After having hit a new all-time

.•

high of better than 4,000,000 bar¬
Mr. Pel- rels in the previous week, daily

September average production of crude oil
Dow¬ during the week ended
Septem¬
that ber 6 dropped 189,750 barrels to

idle 3,814,950 barrels.
The American
"vague and Petroleum Institute report point¬

misleading"
statements,
adding ed out this compared with es¬
figures were the result timated September market de¬

that these

out-of-date.

that

ney

said.

"The .big

has

oil

use

six

months.

are

not

occurred
If these

there,

and

step

the

last

20,000'

Cars

Pelley

says

wage-earners

the

number

employed

Philadelphia

that

demanded

Civilian

Supply

Mr.

time

estimated
than

this

that

double

year,

output
that

1940.

According to trade comments,
cotton

textile

record

operations

ust.

There

mand
sales

was

continued

during

Aug¬

active

de¬
cotton gray goods, but
were restricted
by the un¬
for

willingness
their

order

power

mills

to ..add

backlogs.

production

to.

Electric

rose

"further

August and the output of bi¬

tuminous

coal

have

appears to
somewhat more

increased

than

usual.

Loadings of railway
freight during the first three

weeks of the month were main-*
tained at about the same kate as
in

July.

ff\ J-J<jji July, :

Production and Trade

Owing to the continued
of

sure

defense

the

traction

lines

summer

shown

was

pres¬

demands, resis¬

usual

con¬

many

business
activity
in
July, and this bank's seasonally
adjusted
index
of
production
and

most

higher than the

Labor

and

In¬

dustries.

"we

capacity

during August.

connection with the shift to
pro¬
duction of new
models, auto¬

mobile

marked

occurred

the

September

was

Aug.

Department

1.5%

"complete

record

weekly payrolls increased 2.4%,
according to the Massachusetts

was

have gathered information which

and

over

and

trade advanced to 111% of
estimated long term trend. This
figure compares with 110 in
June and 91 in
July, 1940. Sea¬
sonal
factors
considered, the

July

Second (New York) District
Judging from preliminary data
proves there is no shortage and now at hand, business activity in
that no shortage is impending" August appears to have held close
East

production

was

materi¬

gains

over

June

the

durable

production of
goods, both in the pro¬

ducers'

and

consumers'

catego¬

ries.

Steel

mill

operations
con¬
tinued to run at a
high rate in
July, despite growing concern in
the industry over actual or
po¬
tential
and

shortages of steel scrap
pig iron, and mother durable

goods industries vitally affected
by the defense program, such as
aircraft, machinery, and ship¬
building, showed still further
gains.

Activity in non-durable goods
(Continued

page

117)

order was issued on
September the Labor Day holiday, inventor¬
by Deputy Coordinator Davies ies for the
country as a whole
announcing that total gasoline showed a less-than-seasonal de¬
an

deliveries to all customers in the
cline, according to the midweek
17 Atlantic Coast states and Dis¬ report of the
American Petrol¬
trict of Columbia would be cut eum
Institute.
Higher gasoline
by 10 per cent of the July total. production for the initial
week
The order was pursuant to the of
September offset lower refin¬
recommendation
of
the
East ery operations, and this
aided to
Coast
Marketing
Committee, some degree in offsetting the
which has been approved by the drain
upon stocks of gasoline.
A
OPM, and will reduce actual con¬ decline of about 460,000 barrels

sumption % to
600,000
barrels, in East Coast stocks cut the total
against
indicated
demand
for to
19,803,000 barrels, including
667,000 barrels daily. Since com¬ 648,000 barrels of aviation
gas,
mercial, agricultural and emer¬ which compares with
21,930,000
5 gency demands will be met i in barrels a
year ago.^:,'; :
:v

full

during this month, deliveries
Total holdings of
finished, un¬
private motorists will be re¬ finished
and
aviation
gasoline
duced by 15 per cent of the July
during the week ended Septem¬
consumption.
ber 6 dropped
101,000 barrels to
for

Mr.

Davies

the Maloney 81,571,000 barrels.
Gasoline out¬
September 9 that put rose 61,000 barrels to
13,353,gasoline rationing in the East had 000 barrels.
Refinery operations
proved successful in reducing con¬ were off 1.8 points to 92.9
per
sumption and would not be lift¬ cent, with daily
average runs of
week.
It was indicated,
however, ed "until we are positive that this crude oil to stills
dropping 75,000
that the 6i/£ cent price for regu¬
may be done safely without risk barrels to
3,995,000 barrels. In the
lar gasoline will apply only to
of
precipitating a serious gaso¬ final week of
August, stocks of
motor fuel produced by small re¬ line
and fuel famine
this win¬ motor fuel were off
approximate¬
finers, which is normally sold in ter."- Gasoline deliveries in the
ly 900,000 barrels although hold¬
the Gulf Coast area. It is not ex¬
Eastern
area
during the week ings on the East Coast were
up
pected to apply to the larger re¬ preceding the Labor
Day holiday 167,000 barrels, in
contrast
to
fineries
producing gasoline for period by the 17 major oil com¬ lower stocks
in the rest of the
shipment to the East Coast or to panies were
off to .113,273,947 country.
Refinery operations
serve
as
basis
for
East
Coast
gallons, against 126,015,076 gal¬ were within striking distance of
prices. The original 6-cent ceil¬ lons for the week ended
August their July 12 record
high, at 94.7
ing drew bitter protests from the 22. J This decline was the first
per
cent of capacity, or
daily
small refiners, and it was at their
time
that total
deliveries
were
average runs of crude to stills of
behest that the price study, which
below the base period of July 18
4,070,000 barrels. :,
resulted in the lifting of the ceil¬ when
the
Coordinator's
office
Price changes
during the period
ing, was carried out by govern¬ started checking figures for this covered

year-old survey and already mand of 3,960,000 barrels. Texas,
"The
truth
is with a slump of
196,350 barrels,
are using 15,000 to 20,000
and
Kansas, off nearly 25,000
more
tank
cars
than
we
were
barrels, offset higher production
using a year ago," Senator Dow¬ totals in other States to establish ment officials.
a

are

Massachusetts

number employed in these same
concerns in June and
aggregate

living

ally reduced in August.
It was
reported, however, that manyplant's completed the change¬

tance

representative - manufac¬
turing
establishments
during

had announced a week
earlier at the meeting of the rep¬
resentatives
of
approximately
stations

con¬

2,037

4Q> cities in

instances.

some

55.9%

seizure of the American oil

Sheriden

upon

this

in¬ to the advanced level reached in
vestigation" by the Federal Gov¬ July, the Federal Reserve Bank
for their consideration.
Thus far,
of
ernment.
•
New: York ; reports
in
its
oil
companies
have' not
made
Small
independent
gasoline "Monthly Review" of Sept. 1. In
known their reaction to the re¬
dealers who have had difficulty part; the summary added:
ported
agreement.
Since
the
The steel mills again
in obtaining supplies in the East¬
operated
bone
of
contention
since
the
within a few percentage
ern area have been asked to
points
sup¬
1938
be presented to the oil companies

of California, charged
Pelley's
estimates
of
are

than: in

during July by mills in
New England was
110,080 bales,
exceeding
the
June : total
of
102,727 bales by 7.2% and the
July, 1940, total of 70,592 bales

are

sea-going tankers and barges are
as
Leon Henderson notified Gulf
mies, currently locked with the
built, Mr. Henderson contended, Nazi war
Coast refiners that the govern¬
machine, from America.
more
ment would offer "no objection"
pipelines will have to be
However, the strict notice given
built.
He added that in his esti¬
to their charging 6V2 cents a
gal¬
by both the United States and
mation the committee should not
lon for regular gasoline. On
American governments that
July
any
recess until the gasoline situation
action taken to hamper the move¬ 16, the OPACS requested refin¬
has been cleared up, adding "I
ments of the tankers would be ers to hold the price at 6 cents,
am not going to feel comfortable
pending a study of costs in that
considered
"unfriendly"
appar¬
as
long as I. feel there is going
ently paved the way for safe area, which was completed last
modest

less

sumed

Office

awarded

35.3%

was

The amount of raw cotton

' '

ordinator,

less

contracts

...

had the effect of

consumption."

of Petroleum Co¬
ply information to the Office of
properties under the exproporachallenged the state¬ tion decree of the Cardenas Ad¬ Petroleum Coordinaton on any
difficulties they have had, and
ments of both Mr. Pelley and Mr.
ministration has been insistance
also figures on stocks on hand
Budd when he testified on
Sep¬ by the companies of the return
and sales totals, by Deputy Co¬
tember
5
that
he
questioned of their properties, which defi¬
ordinator Davies.
whether there were 20,000 rail¬
While remind¬
nitely is not provided for in the
road tank cars not in use and
ing them that there exists short¬
reported agreement, whether or
available to carry oil to the East.
ages on the East Coast because
not
they will approve the re¬
of
the transportation bottleneck
In commenting upon Mr.
Pelley's ported setup is problematical.
created by the transfer of tank¬
statements, Mr. Dowd said that
Other world developments af¬
ers to Great
the
Britain, Mr. Davies
20,000 tank car figure "is fecting the American
petroleum
informed
the
smaller
operators
merely an estimate and I would
industry included the safe arrival
that it is the policy of the PCO
not
accept it as a figure.
We of the three West Coast tankers
that all marketers of petroleum
hope to know within a few days. carrying aviation
gasoline to So¬
Leon
Henderson,
head
of
the viet Russia from California this supplies may receive their pro¬
portionate share, without discri¬
OPACS, recommended the con¬ week.
Some
uncertainty as to mination.
struction of a network
of new whether the
ships would be al¬
pipelines to assure adequate sup¬ lowed to
An increase of V2 cent a gal¬
proceed to Russia by
plies of oil within the nation in
lon in Gulf Coast gasoline prices
Japan, which, at the behest of its
the event of attack, saying "you
Axis partner, Nazi Germany, bit¬ won the tacit approval of the Of¬
can't sink a pipeline."
Regard¬ terly protested the shipments of fice of Price Administration and

?■

district

United

imminent, reports are
current
in
Washington that an
struction of a natural gas pipe¬
early settlement of the oil dispute
line from Texas to the New Yorkmay be nearby.
One report from
Philadelphia ' area,
which
Mr. the
Capital indicated that the two
Budd thought unlikely.
Follow¬
governments had arrived at an
ing Mr. Budd came a statement
understanding,
which
provided
from J., Howard Marshall, coun¬
for a down payment of approxi¬
sel for the Office of Petroleum
mately $9,000,000 and further in¬
Coordination, which formally no¬
stallments, chiefly in oil.
This
tified the committee for the rec¬
agreement, it was believed, would
ords that
the Office of Production

tion

the

Philadelphia,
told
Maloney committee that the
price standards set for gasoline
ment of
long-standing problems
by
Leon Henderson,
price ad¬
between Mexico and the
ident

Senator which

brought
up
the
to whether or not the

reductions, move¬
much more
reducing
shipments and the

rail" cost

tanker

cars

came

who

question

rate

sales

Stating that none :of the result¬
June and was 36.3% lower than
ing savings in operating costs to
in ; July,
1940." ' The
"Review"
the
stations as .a result of the
goes on to say in part:
;.
night shutdowns are being passed
The sales volume of 117 de¬
along to the; consumers, Mr. Sin¬
stores
and
apparel
ger
added that "gasoline con¬ partment
shops in New England during
sumption figures
are
concrete
July was 22.8% larger than in
evidence that the night closing of
July, 1940.
stations has not

Following a speech at the open¬
200,000 barrels
ing session of the Thirty-Eighth
the East Coast
President
Congress in Mexico City by Pres¬

questioning

O'Daniel

tank

the

ments

fuel

move¬

give from the "Monthly Review" of the Federal
Reserve Districts of
Boston, New York, Philadelphia, Cleve¬
land, Richmond, Atlanta,^ Chicago, St. Louis,
Minneapolis^
Kansas City, Dallas and San Francisco,K'•
'■'''

212,-

Jj.

crude

Indications of the trend of business in the various Fed¬
eral Reserve districts is indicated in the

291,000,

and

products.,;y changes.
on

Reserve Banks Report On Business

Mines

Contending that the closing of
15, and the appointment of R. P. filling stations from 7 p. m. to 7
a.
m, "is not in the public inRussell, car service superintend¬
terest and is not justified ;as a
ent of the Pennsylvania Railroad
means
of gasoline conservation,"
as
chief of the Office of Petrol¬
Russell E. Singer, general man¬
eum Coordination's rail
transpor¬
tation section, it is now up to the ager 6f the Amencam Automobile
urged
the
Senator
railroads to prove whether or not Association,

reports of another
study of the tank car situation,"

crude

ments of crude and refined
prod¬
ucts established as of September

car

seen

he added,

move

With lower rail rates

situation last May and had found
there were
20,000 surplus cars
available.

Bureau

sur¬

tank

cars

fined

Petro¬

made

railroad

tank

dis¬

Thursday, September 11, 1941

seri¬ during the final week of August,
our rising
to 249,413,000 barrels, the

substan¬

Pelley's
statements
were
■/.''. •,'* (Continued from page
misleading,, he
115)
■',
produced
letters
and
telegrams
montlily in the East Coast.
Mr. from
California
oil
companies
Pelley told the Maloney commit¬ saying that they could not
get any
tee

CHRONICLE

committee

told

were

Deliveries

for

confined

local

the

August readjustments, with the
excep¬
output during 1 Despite the fact that estimated 29 week were 2.8 per cent under tion of the % cent a
gallon rise
the initial c- week*;of * September. demand for motor fuel
the July 18 total.
for 1: Gulf Coast: bulk
during the
'Jan
,•«
»prices al¬
Stocks of American and foreign current
month- is 'Substantially
While
East
Coast. <::stqcks; <of lowedly* the Office of
Price Ad¬
crude oil were up
503,000 barrels above that for September, 1940, motor fuel showed the effects of ministration and Civilian
a

area.

net loss in crude
:

Supply.

1->\U

Volume

117

CHRONICLE

FINANCIAL

Number 3979

154

(Continued, from page 116)

that the daily aver¬

The American Petroleum Institute estimates

crude oil production for week ended Sept; 6, 1941 was 3,814,950
barrels.
This was a decline of 189,750 barrels from the output of
age

below the
3,960,000 barrels calculated by the U. S. Department of the Interior
to be the total of restrictions imposed by the various oil-producing
States during September.
Daily average production for the four
weeks ended Sept. 6, 1941, is estimated att 3,937,100 barrels. : The
daily average output for the week| ended Sept. 7, 1940, totaled 3,623,850 barrels. Further details as reported by the Institute follow:
preceding week and the current week's figures were

the

industries

little

was

The

Fourth

crop

the

weeks

output
devoted to

and receipts in bond at of cotton exceeded that in the Bank said: '
extraordinarily / large
ended Sept. 6, totaled 1,- previous peak year (ended July ^ An
3t, *1937) by more than 20%. amount 6f building and engi¬
542,000 barrels, a daily-average of 220,286 barrels, compared with a
neering work was contracted for
Wool consumption, on the other
daily average of 207,143 barrels fpr: the week ended Aug. 30 and
in this district the last week in
hand,
appears
to
have
been
223,036 barrels daily for the four weeks ended Sept. 6. These figures
July.
For the entire
month,
somewhat lower than in June,
dollar volume was at a 14 year
include all oil imported^ whether bonded or for dome^c use, but it
although mora than half again
Much of this construc¬
as
large as in July, 1940.
As peak.
is impossible to make the separation in weekly statistics.„,r
... ;
tion was publicly-financed.
reflected in the figures for- rail¬
Thero were no receipts of California' oil at "Atlantic or Gulf Coast
Industrial employment in
way
freight car loadings, sea¬
ports during the week ended Sept. 6, 1941.V''* **" ' * \r
sonally adjusted,
the rate of many of the principal manufac¬
turing centers of the district was
flow of goods through primary
•/Reports received from refining companies owning 86.4% of the
increased somewhat further dur¬
distribution channels was about
4,538,000 - barrel estimated daily potential refining capacity of the
ing July, in several instances to
unchanged. frqm'June to July.
new
high levels.
Hours were
Retail trade made, a favorable
JJnited States, indicate that the industry as a whole ran to stills, on
showing in July, considering the reduced in a few cases, with the
a Bureau of Mines' "basis; 3,995,000 'barrels of crude oil daily during
result that aggregate payrolls in
usual
midsummer / slackness.
$he week^lind
storage at refineries; bulk Sales of
.department stores and some localities were smaller in
terminals, in transit and in pipe lines as of the end of the week, 81,- mail order houses were off con¬ July than in June.
Retail trade has continued to
571,000 barrelsof finished and unfinished gasoline. The total amount siderably less" than seasonally,
expand contra-seasonally.
July
of gasoline produced'by all companies is estimated to have been 13,- /while! about " the - expected de¬
dollar sales at reporting Fourth
cline occurred in the case of
353,000 barrels durihg the week." : - i ; - -- - r;
variety. chain store sales.
Re¬ District department stores, on a
*
seasonally adjusted, basis, were
DAILY 'AVERAGE CRUDE OIL PRODUCTION (FIGURES IN hARRELS)
tail
sales of 1 automobiles, al¬
Imports of petroleum for domestic use

fourth

consecutive?

,«

yarn

tham

were

com-/

pelled to draw further on al¬
ready small reserve stocks. Bi¬
tuminous coal mined in July ex¬
ceeded

closely related to de¬
Regarding business, the

fense."

and rayon yarn mills

year,
the /

shipped more
they could make and

additional

46%

month

has been noted in
District
during re¬

industries is

basic

purposes

ended

year

Fourih

cotton

month

for

schedules

cent

last

"Monthly Business Review"
an
"increasing number of
dislocations in industrial operat¬
that

ing

operations,

capacity

consumed

than in the corresponding

Aug.

its

30th

mill consumption

1941

indicates

Cleveland

./':'$■tp:

During the

continued
and

Bank

Reserve

1940 business.-:

July

(Cleveland) District

Federal

The

;' changed

above

In " industry, ;no outstanding
development occurred in July in
the Fifth district.
Textile mills

month.

crude oil and
expanded.

output

43%

reduced

was

in: the

electric power was

June, seasonal factors con¬
sidered, but was substantially
higher than in July, 1940.
The
rate of mill consumption of cot¬
ton was slightly higher in July
than in June, although in most
years a pronounced decline oc-

July 31,

coal

usual

than

less

from

i uurs.

Production

Daily Average Crude Oil Production for Week Reserve Banks Report
Ended Sept. 6,1941. Off l89,750 Barrels
®-g/0n Business > /

July 1940 production by

21%, and, contrary to seasonal
trend, also exceeded June out¬
put.
Shipyards, airplane plants,
and all other industries engaged

principal United States ports, for the;week

defense

continued

work

capacity levels last month.

Sixth

The

reached

Actual Production

B.offSCalcu*

T ■*

Week

Allow¬

ments

ables

(September)

428,000 1438,450

489,800

Oklahoma■''Kansas
-a—;J—

1229,400
.
,47,300

Panhandle Texas
North

Central Texas-

West.

Texas ——

East

80,650

37;400

209,650

•i-211,200

40,850

279,450

-210,600

255,400

1,400

380,000

121,050

99,800

*—.

89,900

39,500
85,000
20,200

49,850

East

Total

1.
of

power

consumption

' Tobacco

;

Employment

•

7,700

5,050

•

71,100

20,350

17,750

+ Okla., Kans., Neb.,.

Distribution

3,623,850

3,937,100

—189,750

City

September 3rd.

Cost

do not include

produced.

any

put into

PRODUCTION OF GASOLINE;

STOCKS OF

- *

102

reports:

construction

102

—

108

983

110

109

108

112

108 §

1113

131

118

100

(1919-25

deposits,

'24

,25

i/,27

New York

average = 100)—.

of living

-ing in June, although wage pay-,/ments

Fifth

off

were

slightly; . In¬
activity- is

creased

industrial

finding

expression

trade

Third (Philadelphia) District

which

mains level during

(Richmond) District

which

both

,volume

seasonal

at any

and

during July-

showed less tendency to
:to

upward

In fact. Seventh

District retail trade

retail

moving

physical

dollar amount.

is? reported by the Federal
The Aug. 31 "Monthly Review"
Reserve Bank of Philadelphia, in of the Federal Reserve Bank of
its "Business Review" of Sept. 1,
Richmond-indicates that seasonal
that ; "trade
and industrial ac¬ recessions in trade and industry

f£.

OIL,-WEEK ENDED SEPT. 6, 1941

' *\

maladjustments."

further

ordinarily
re¬
July, reached
a
peak second only to that in
March of this year, due prin¬
cipally to an expansion of in¬
dustrial
plants
financed to a
large extent by public funds.
Despite seasonal influences, em¬
ployment in the Seventh Dis¬
trict
during
July
was
main¬
tained at the high level prevail-

116

117
103

awards,

103

trend.

tivity

serious

Bank

Volume

■

be¬

unequal development as

upward, controls are being
effect in an attempt to

avoid

94-

117

factors

respond

than

has

time since 1922.7

the

Third

serve* District cordihue well sus¬

(Figures in Thousands of*Barrelsof 42Gallons Each)

1213

appear

Federal Re¬ in July in the Fifth Federal Re¬
Eighth (St. Louis) District
serve
District
were
much
less
The Federal Reserve Bank of
tained, / although i there is ordi¬ noticeable than in most years,
St. Louis reports that in many
narily . some lull during this sea- and in a few instances actual in¬
;
•/
Daily RefinCrude Runs Gasoline Stocks •'Stocks
lines of industry and trade in the/
ing Capacity ' to Stills
Produc'n ^Fin^.:^' of
•Stocks flflSfoCfca son.\K; The Bank also' had the
creases occurred.. In comparison
L.'i..•"/•///7'V7
at Re- ished & V, 'Gas • V of Re- AviaEighth District new high levels
; '
following to say:;'\'< *>'
sidual
tlon
with business
a
PoDistrict
year
ago,
last were recorded
$.Pi
fZ^^-<{itineries
'
during July and
/ r/TKe-imov«nent-6f •
Fuel
Gasoten- :;:i Refreight is month showed marked improve¬
' P..C.
Incl. "I ished Vand
Oil v line
the first part of August.
Qdso- J
Distial,
Fromport- •; Daily Oper- Natural
the heaviest for this season in
ment in nearly every line.
The the Bank's
ated
Blended
Aver.
'Rate
ing
Aug. 30th "Business
over a" decade. / Buying by. both,
following is also from the "Re¬ Conditions" the
100.0
9,498 E.Coast
--673
629"V 93.5 1,664 19,803
15,671
East Coast
following is also
retailers and consumers is ex¬

119

of Living

Cost

•
estimate of any oil which

FTN3BHED AND -UNFINISHED GASOLINE .-AND GAS AND FUEL.

;

115

structure

industrial

production and trade continue to.

and Wages*
~
104
1093
107
108 "
(1935-39 average == 100)
114
120
122
1233
Wage rates (1926 average = 100)
•§ Preliminary, " t Revised;
steel,
wool and new
in the cases of
♦
Not adjusted for
passenger car sales, the series have been revised,

30-day allowable as of September 1st but experience. indicates

TO STILLS',

surge

117

Velocity of demand deposits, outside New
York City (1919-25 aver. = 100)
:

Velocity of demand

figures indicated above
might have been surreptitiously

CRUDE RUNS

120§

Velocity of Deposits*

and if any upward revisions are
made. Panhandle shutdown days are September 7; 14, 21 and. 28th; with a few
exceptions the rest of the state was ordered shut down' on September 1, 6, 7, 13,
14, 20, 21, 27, 28 and 30th. - '<■■:■>>.;'/:
-.a* v.,'V"':/•";■/ ' ;/"^vvC/

116

Mail order house sales
"'■New passenger car salest

f Recommendation of Conservation Committee of California Oil Producers.
»

112

NOTE:—The

; Grocery

7 that it will increase-as new wells are completed,

states
and

stresses

beginning

are

the

cause

Consumer

Department store sales (U.S.)
chain store sales

•.

Miss, and Ind. figures are for week ended 7 a. m.

| This is the net .basic

100

623,000

be produced.

3,000,850

640,100

Mines' calculations of the requirements of domestic crude oil
premises outlined in its detailed forecast for the month of
September.
As requirements may be supplied either from stocks, or from new pro¬
duction, contemplated withdrawals from crude oil inventories must be deducted
from the Bureau's estimated requirements to determine the amount of new crude
to

106

108

are Bureau of
based upon certain

oil

strains

1323

Chicago

Distribution

and misc.
freight car loading, other
-

Ry.

t These

132 §

105

The

Ry. freight car loading, mdse,

3,600

3,297,000

11.000

3,814,950

Primary

100,700

112,750

—200,750

641,400

contracts

4,150*

1,150"
50

3,173,550.
11610,000
.

81,450

building

Variety chain store sales

196

1333

112

Nonresidential building and engineering
contracts

the Federal Re¬

"although

198

Residential

52,250

corre¬

(Chicago) District

that

167

90,350

45,500

the

Aug. 29 issue of "Busi¬

Bank

126

91,600

well

were

period last year.

serve

1153

employment

series

levels

Conditions"

ness

/ 85 §

152

the

95+

products

Employment
Man-hours of

18,300

the

103

•

—

packing

Manufacturing

117§

148

113

these

sponding

113§

111

down from June.

also

exception of construc¬
awards, however,

106S

125

the

contract

Seventh

122

98t

5,250

20,400

3,963,000

States

150

2,600

••

113,750

113,200

3,325,300

Calif.

634,700

United

Total

800

77,050

113,200

California

133

131

some¬

comparison

were

above

104 §

contracts

in July declined

With

Construction

4,500

*—

Mexico

131

121

103+

v28,650

Colorado

127

Meat

74,600

+v 14,900

—

114

—

Wool 'consumption!

278,050

387,050
- 20,250

450

153,450

—

Cotton

213,250

2,850 -/// 50,400

75,100

104§

petroleum

Crude

Electric

73,250

406,000-

•

104 §

107

50 - • 329,500-

333,850

76,013

106

93t

—

Bituminous coal

64,800

328,646

105 S

Automobiles

1,299,200

& Ind.)—

Wyommg
Montana

•

Steelt

77,350
252,150

324,000

all

108 §

106§

consumer

Production

78,650
"374,900

1,397,400

(not incl.

Eastern

Industrial

83,600

—

Michigan

—

122§

105

96t

goods

distribution

Distribution

351,100

1,450

/Indiana

New

221,500

21,400

Mississippi
Illinois

111.

7: 29,650

—196,350

——wii;——79,000.
33,000
—1—
392,500

30,750

261,300

78,450

Louisiana—

Arkansas

nondurable

1,378,600 §1,406,362 1,252,950

Louisiana-—

Coastal

Consumers'

„-

Louisiana—--:

North

96,200

4,300

—

181,800

"Texas—-----

-7 Total

.300

100,550

71,000

—

1295

distribution increased

Construction

District.

104 §

121
■119

July
much
more
than it
usually does, building permits
increased substantially, and an¬
other
new
high
record - was
reached in textile activity in the»

121 §

90t
97t

—_

goods-

;

durable

Producers'

Primary

1243

1103

half

about

Wholesale

Consumers'

4M00

only

tion

109

department
July but*

declined

amount, and

iron

May

_—

durable goods —
nondurable goods

Producers'

200

76,500

•

—

248,800

7,150

sales

with the
totals for April, May and June,
and production of coal and pig

trend;

June

80,200

District

the usual
seasonally ad¬
justed basis were at a new high
level
in
the ■ 22-year
series.

of:

Production

165,750

■

5,000
7

298,550

Texas—.——

^Total

—

————

Texas,——

Southwest
Coastal

■

30,700

226,250

Central Texas---,,
Texas

East

247,250

At-'

Bank

■'

store

July
1113

July
of Production, and Trade

Index

421,700

ex-

1941

1940

Re¬

reported in the

Reserve

Sixth

what

for seasonal variations and estimated long term
reported in dollars are also adjusted for price changes.)

series

100,900

Texas

West

was

Sixth

the

lanta:

awarded

1940

427,600

—

85,300

Sept. 7

1941

level,

Federal

substantial margin. ///>

(Adjusted

Ended

Sept. 6 V-

24,900

—

248,800

239,800

Ended

10,800

<7* 5,000

Nebraska

4 Weeks

Ended
from
Sept. 6, Previous
Week
1941,, ;

State"

Requite*-■.

Change

high

all-time

busi¬

regarding
in

Aug. 31 "Monthly Review" of the

ceeding the late 1929 peak by a

volume for

largest

any July since 1929;

Week '

lated

the

June,

than/ /in

lower

District

serve

though:

following

conditions

ness

(Atlanta) District

r-s:

Appalachian
Ind.

III.

0kla. Kans, Mo.--w
Inland

——v

'4,419 Interior

ceptionally

active.

2,050

,2,040-V 1.329

tinue

and

63.2

80.7

134

16,815-1

95.2 >1,230
576

91.0-- ** 955

'95:6

.152

102.7

358"

49.9

102.1

138

.136

,50.1

; 51

787

90.9

579

'^ 2,325

3,030"

94,2

...

Mountain— /'

California

577

5,199

317,"l

1,097

No. La. & Arkansas

Rocky

3,005

14,846

137 "

641

80.7

Gulf^=-.. .-156-

86.4

Reported
———
Est. -Unreported

3,643
-352

1,589

;

401"

-342

417 Calif.-.
426

76,071

44,937

-1-.335

:-5,500

•1,190

•1,500

13,353

§81,571
81,672

46,127
45,351

95,125

/ 13,292

Aug!U.

B..

3,995
4,070

:■

Prices

District in

July

was

7,184

95,052 -.7,268

fense

5,820

tinued

•

learned:

July the rate of in-I
dustrial
production
remained*
virtually unchanged instead ofreceding as is usual for this
creases
were
period.
As expected, industries
relatively small.
supplying materials for national/
Department ' store / sales in
79
showed- the
stores declined 15% from June .defense
greatest,-

maintained

industries, mowing to
/requirements • and

•

of goods

During

to con¬
sumers
usually is in substan¬
tially smaller amount in July
than in June, but this year de¬

high levels prevailing the
before,/although there is
ordinarily v, a ■ decline ^ in
this
period.
Improvement was par¬
ticularly marked in the heavy
goods

„

Distribution

at the

365

con¬

in- many -lines

month
6,819

S.
-.'i Or '• ■
6, 1941—
4,538
30,
1941—
4,538

Manufacturing activity in this
'

1,656

93,625

12,018

firm

are.rising further.;..

1,904 ; I V-i
,

64,886

233
1,659

92.9
,

1,309 G. C'st.
8,164 ' 3,186

■

6,299

-3,067

V 132
.1,021
13,759/. 12,612

75-.0.
81.0
■

466

11,029'
'

648

fEst." tot.- U.
Sept.

view":

472

2,658

83.8

84.4

413<

263

Texas—•

-Gulf-;:-^

Texas

Louisiana

";;562

98.6

* 100.9

1661

752

——

gains. Chemicals, machinery, air^-

July, but in the latter month
29% higher than July 1940

cfaft, leather goods, ordnance,
explosives continued to adr

were

sales; " Furniture *

de¬

and

sold

vance.

in July than in
/preceding month,- and ex-*

slightly

con¬

stores

more *

Production

was

consid¬

behind orders in- many
tEstimated Bureau of Mines' basis.
tAugust-September, 1940 daily average. IThis is
lines.
Further gains,
Building activity .in this
sales in July 1940 by
a week's production based on the>U. S. Bureau of Mines-August-September
1940-daily -the usual
area in July was at a very high
seasonal-change; were 47%. Wholesale trade as reflects
average, "i {Finished 73,701*000-bbli; unfinished 7,870,000 bbl.—
•»".
u.
-.reported in a wide;;variety /of /ed> in 201 firms1 rq.se 5%> last sleveLhOJ'il
At refineries, bulk1 terminals; In' transit dnd ih pipelinesC.• "■
non-durable
(Continued on page 118)
month over June trade/ and was
goods
industries.
IHIncluded in finished and unfinished gasoline total. , r' '
\
()

fSept. 6, 1940—

13,568

J11.791

♦

83,402

45,672 107,267

strong

the
buying.
after considering /ceeded

consumer

erably

118

FINANCIAL CHRONICLE;

Steel Shortage May

On Business j%%

(Continued, from

krnonth ggp^(likewise- revised) i and 101 J)% /one. year ago ^uprevised)^:v
represents-an mcrease of 0..6 points; or i 0.6%, from the precede -1
t
ing week.
Weekly indicated rates of steel operations since Sept. 2, •

Cause Postponements i I !This

Many Semi-Defense Projects-Output Higher

117)

page

Thursday, September 4T,nl941

llOiO^fdiloWi^^x;;!^:-^;;:

f A'A
t

%
The "Iron Age"" in its issue df Sept. .11. reported that :> because
large amounts of steel cannot be spared without slowing down vital
phases of the defense program, some of the big semi-defense prqlects
view"
of
the ; Federal
Reserve iwhich have
b$erttells:e&about facerestriction, po^
Bank of Minneapolis reports the
aonment.,V/'Y77% V*''I'v
following:
ylv1
•■'.■/■v.v/v;- %
Likelihood of the nation's railroads obtaining the balance of
Business volume in July re¬
sumed its upward trend and was their 1941 rails as well as 1942 requirements at any where near: the'
!

■.

The

Aug.

28th

"Monthly

'1929.
cash

income

^vance.

'stores

department

all

reached

time

highs.

the

The

eral

(Kansas City) District

following

regarding

Reserve

the

from

busi¬

Review'

the

Bank

District/is

Aug.

30th

taken

"Monthly

Federal

Kansas

Reserve

City:•

' '•

Trade activity continues to ac¬
celerate, wholesale sales in July
being 33% and retail sales 22%
above last year.
Wholesale and

retail inventories

12%

wheat

about

and

one

Other

normal

corn

crop

cellent.

crop

Coal and flour

very

Eleventh

kinds

lauded

steel

consumers,- particularly

,,an

/etr

17—

-96,6%

23--^—J»9.9%

7_:—_•__x94;9"/o'14„
<98.2 fa •

99.3%

j»y

;

jiy

28-ii-^—X97.6.%,

Jly

Apr' 28— 111_94.a%-

ab.o'/i

4--~--X9G.3'A>
■Aiife-1•..
.iug 18-^--—X96.2%* ••
»Hg 25—:_x96.59o. .
,iep
2_.:__:-x9tf:3%

May

.—97.1%

.May

94.6%

Aupf

—193.8%

3iuy

27———97.1%
V: 3—1
06.9%

it'el5

/el)

smalivmetal

-1—99.2%
194%i %—99.9%

May 26— %^i98:6%l

; ;

of the iron and steel mar-4
• . ;,*• .■,.•■„> ;•
-' • ' ■
'

situation is clearing it'is believed4 at. least

fortnight will be required to eliminate rather widespread uncertain¬
'
%
*,
*
/
..
V" '
ties. I* Lack of full understanding by many consumers' in making
misleading and ominous quiet pervaded most iron and steel ( out
prescribed forms is adding to work of steelmakers and retard^
scrap markets last week but with consumption continuing full blast
!ing booking .of new
and no adequate solution toward' procuring more opeq market scrap,
One effect of informatioi) obtained under the priority order is
the situation seemed, about two weeks away from another'climax.
>'X
to reduce smpments to consumers with large inventories,-some being
The flow of incoming business to steel-mills in the past week
refused tonnage- in" September inasmuch ,as^their, .reports indicate
contracted somewhat, with nearly all producers noting a decline
sumcient on hand for the entire
month/ Strict inventory control
in the volume of new specifications.
- In
the light;of' ;the>;great tiff expected to prevent uneven distribution.
*,
I'.l

■

backlogs,- this tapering has little significance. .<1% i,
a

merits and

•
v

Unbalanced deliveries have caused'Accumulations by Army arid ^ I
Navy, and otner consumers, while material was lacking tor' omer..
defense purposes. At the same time steelmakers claim that most of

lack of scrap and pig iron

tneir

customers

have only normal

mill books represents
it will be

supply Or less.

Some tonnage

duplicate buying and wherever tiiis is revealed "

canceled, thus reducing mill backlogs.

;

Consumers in many instances are aiding to -unscrAhablO the situ- ;
ation by tiling PD-73 forms against'old orders, instead of taking rhtf,,
full time allowed under M-21 orders, in wnicn ..tne deadline whs >
ucc.

Many sellers say a. majority, up to luO, per. cent in soma

io.

cases, nave responded.

■/•m.

;-^,/'"•

./ Warehouse

priority rating of A-9 has been applied, under a new;' >
which is expected to relieve the situation con¬
siderably-and-afford opportunity-for supplieis,to obtain material to 4

.OPM order,

of these pig

some

Reserve

r 1

have been done

District

the Dallas Fed¬
Bank, business and
industrial activity in the Eleventh
eral

Jutt

Jly

Apr 21— —96.0%

active.

(Dallas)

According

all

•-95.7%

20—

■

JUn "30----:_-x91.8%;

iepuria their broken assort^
on a quota basis.,
Tins or.cerJs.
expected to expedite filing of forms by consumers, which will afford
September production of pig iron has been allocated and practically suppliers intoimation on which to base their oroeis to
mills, inurcat-'
all the material is slated for shipment to consumers
carrying a de¬ Tng.usfcs'to which tne.steel is to be put.
..
3
fense rating.
In a small number of cases essential civilian require¬
J /Augiist pig iron production, 4,784,639 net tons, set a new all-J
ments have been partly taken care of.
As expected, the entire pool
time record,; "exceeding tne previous nign mark in Juiy by I8,f23t
of 2%, the amount which each producer is to lay aside during Sep¬
tons, :a gain Of 0.4 per cent. The; dailyproduction.rate in^ August
tember, has also been allocated, most of it going to non-integrated
was 154,J43 tons,; an increase of 594 tons over tne
July rate, sotting
steel companies short of pig iron and to foundries w.th heavy de¬
another record.
One additional stack was in production, making
fense business.
Considerable revision is said to

production and

Construction

continues

Jail

While the priority

Tuesday pig iron producers received their, long awaited
September pig iron schedules which had been examined and revised
by the OPM in accordance with the iron priority order.- '-The entire

lead shipments are very large.
>.Pay rolls are about a quarto
higher than a year ago and have
gained much faster than employ¬
ment.

Apr"; 7-1—

1911—

JJB "13—1%08.5-%:"

Xwf
Nov .18

On last-

)

2L-__—_:y4.9'/(

Oct

a jump in "Output for export of
ingots, blooms, billets, slabs, etc. to 169,575 tons.
The institute's "fig-,
ures show-that, as yet, conversion of sheet mills to
plate production
has not had any notable effect upon the rate'of sheet production*

large as last year.
conditions are ex¬

499.4%
-'—199.8%"

31-3% i___99.2%
—198.3%-

14——94.4 %

Kof'j 4———i.96.0%

Rail mills are overtaxed^ With !

June, the gain being'due chiefly to

about
15%
Even
with
a
acreage,, the District

average.

■>.restricted
has

The

was

crop

above

1941

130:1111^:92.6%*'

Oct

Sharply increased rolling of semi-finished steel for export lifted
production of iron and steel products in July 24 % over the June total,
according to the American Iron and Steel Institute.
Production for
export in July totaled 430,493 tons, compared with 327,357 tons' in

the District

normal.

above

Step

continuing to bar still higher
steel output, operations rose a point this week to 97V2%." .This* com¬
pared with 96^/2% last week and 97 in the pre-holiday week*/
,,

ago.

months of

the first 7

for
was

being

With

somewhat below normal but

was

Miir

defense

about 15%>

are

than a year
July moisture in

larger

17—-L

Decmi—_—95.9%;

conditions in the Tenth Fed¬

ness

Mar

Mui'V 24—

Oct

MarllCte'^c ;Z2_«8.8%"'

16—_,__.:96.8'/0:

Dec-

Oi:'t

•

' •?,' ' *-i" • '•■** 4 /'■ "<*
Q "
flR fiC*.
9_:—.--98,6% •' '
,

lull
Juti

working plants.

Tenth

ry96.:0%"5

.ju.■', 'f

•.

2
<J7 Sri,'
3_„_ 1—197.5%"'

week

for

Mar
Mar

Steel" of Cleveland, in its
sumrhary
speeding! up of the priority system and the creation of the
tkets on September 8, stated:
.
OPM division of contract distribution ate twp moves oL the past

new

district

largest on record
month.
•'' l/: / V

were

the

-contracts

"..'A',:..

V
'V

H: i The

Rural bank debits and construc¬

tion

•;Vi-"f

are

deposits and

city

S»f

■

/eo 2%—■—
8
Jun 1 2—,_ __—99.2%
__l90;9V
botind to fill highest defense orders first. - The t>lan td/bTJtnd -25 | Nov1 25__—___,96.6%;
■new Ore vessels on the Great Lakes may be cut' down because of- the- I 'K/ X Therevisionain the rates publlshed for previoils weeks reflect thfi recently announced
1 increased capacity of the industry, rated as of June 30, 1941.
steel involved.
'
"
I-v
I
'
'
'

ad-

Dee;
Dec

—,9L9%

'.'i.'.-.v/.4*

IW V 2
96.9%, 1
Dec
2—96.9% *

Sep ^_::__L:92.5%

munitions steel and structural shapes, and mill operators,

continued

City bank

.July ^sales

'• '•'••

Sep' 16—1—92.9%

;

to the high level of ,time needed grows fainter each day.
Farm prices and farmers' 'orders for

•

•-■?;•. •••*/,..+

Sc|r< '.2L_xL:_-_82.5%:
.Sep

■

lie-

about equal

Ninth (Minneapolis) District

(

'■'■"Uf' '<■{

1940—-

iron schedules, the OPM eliminating,
adding; others'*

ship-:

some
•*

the total 213.

;

•

Following announcement by Office of Price Administration that
ceiling prices on scrap would be enforced strictly, considerable activ¬
-

Already, some controversy has appeared within the-industry over
ity 'resulted in preparing and shipping available scrap from yards,"
some pig iron producers have been instructed to deliv¬
presumably at nigner prices.
Tms was toilowed byU'almost corti-'
pig iron to points distant from the point of production; ^necessitat¬ piete cessation of movement as the industry sought to determine. it3
ing substantial freight.;rate absorption.
/'*£h?-S'/ position, r Most dealers and consumers continue to believe Higher:
prices are-the only factor which will' increase flow of scrap ,ah.tf <*
Coke pig irort production in August reached "a new
"higfy total¬
Review" the Bank in comments ing 4,791,432 net tons, compared, with 4,770,778 tons- in July, according point to fthe fact tnat a larger, tonnage appeared when - ceiling prices
: were disregarded in August. : The situation is
becoming: alarming ta^ *
also said:
Output on a daily basis increased
' 7"*" to reports to the ."Irop, Age*."
^-Steelmakers, 'who approach the winter season: with reserw?? far' be-i
Employment and payrolls con- slightljrfrom 153,896 tons a day. in July to 154,562 tons in Augusts-On
'fow ;norihalt supply restricted and consumption at a-record rate.
■tinued to
expand and depart¬ Sept. I
were 213 furnaces in blast.
•
Vment
store
trade 1 was at
the
/Automotive production: last week was 3^,94j units, comparedFabricated structural steel "awards of. 19,85(L.iohs.are:.
slightly iwith? 39,965, the: preceding ? week. In;
•highest level of record for that lower than a- week
the;corresponding perioa last -1* *• |
ago.
The largest lettings are 11,600" fbi^ a^lizia/
yeajrIproduction was 39,665,units., This is tde first. time, in a number)
-particular .month.
Retailers lip rion, Okla., (for an air
depot,for the War, Department,; 2,500! tona; for of,week's that
.output whs beio.w; tne • comparable wqek last. yeai*. V.
■'•general" made heavy purchases
e*ght cranes for the Navy Department-at various locations and 1,209
Tiicidenceiof l^bdr day;probably accouto^lor the dip*
at wholesale
establishments in
J ; !
; .
tons for an assembly building for the Lockheed Aircraft Corp. at
Bur-j
to-some Labor da^ idleness and necessity for repairs steel
v order to
meet current and anti¬
bank, Cal. Ne w structural. steel .'.projects Id.ec.Imed. to LU,l6(/ tb/isrr ihom
cipated consumer demands. Con¬
\ i-a^^is;::' v';
zj,too tons last week.
New jobs reported include 12,000 tons ldr l|^tluctidn';^t::^ek.;dCcHhed^;lTpninc:;f
struction
activity, as measured
;feicpecced this^week. - Cleveland increasedprdductiori 2 poinLS to 9o%/1
Boeing.. Aircraft. buddings at Reritori; Wash'. ' Reinforcihg^-'steel
•by
the
value
Of
contracts
Wneeling l4point; to 94 and Cincinnati' I point to 89* Chicago lost%
awaras !of o3,345 tons are swelled by 36,000 tons for
Navy uefehse
•awarded,
increased moderately
^/^rpoint to, 100% ^ Eastern. Pennsylvania -.V2rpomt. to gSj^uffalo.^li ! C
construction; On - PacifjC: Islands.
-N ew- reinforcing projects tail fbr.
from June to July, .and.the de¬
points to 90j/2| Detroit 6 points to 86; Pittsburgh 2 points to 98 and
mand for lumber at pine mills only z,iio tons. ;vt y.
i'oungscown 2 points to. 96.' Unchanged were Birmingham at 95,'
■
in
this district showed an in-t. .•
*the '-iron agb:> coMPOsrrE prices
^
* Hi, Bt. Liouis 98 and New
England
fa
1
'crease during the latter month
Finished Steel
■'
*
High
»L*OW»
/r%4Tf6n*ahd*steeFimports In June/^
muchi:greater than is usual a t
1939
22.61
Sept. 9, 1941, 2.30467c. ..a Lb.
Sep 19 -' 20-.61-- Sep '12
yolume' of May, puti hot ^qual;.to;-those nf June,;-l940i/imports for
1938
6he wee*c ago
that
season.
Crude ?■
23.25 Jut) 21
>lb!.6i.>
.

which had made pro¬
gains during the first
year of the National defense pro¬
gram, was well sustained in July.
In its Sept. 1 "Monthly Business
District,

the fact that

nounced

•

(

•

„

petroleum
'One
-output was reduced somewhat
One
"in July because of lower proA

indnth

allowables, but increased
during the first half of August;
the rate. of refinery operations
established a new peak in July.

•

Twelfth

(San

Francisco)

the

"Under

defense

the

District

unremitting

pres¬

High

r941

_"_2.30467C.

Sep

-"_2.304o7c.

Jan

1939

--2.58414C.

1937

Jan

L_2.32263c.';
I-2.07642C.- '

1933

—1.95578c.1

further in July and early in Aug.

19321.89196c.

the

record

tained earlier in the
noted
eral

the

further

said:

Important

;area were

occasioned

.labor

at¬

year." it

was

Francisco

Reserve,, .Bank's

Review"

San

levels

Aug.

industries

which
V:

•

between

and

management, and in¬
operations continued to
expand. * Accompanying the ex¬
pansion of industrial operations,
.iactory employment and payrolls
in the three Pacific ^Coast states
dncreased further.
Employment
qn

seasonally adjusted basis; gained
^Continued on■ page 127)

Oct

Jan

Mar

2.06492c.4

1.95757c.

Jan

10
-

3—,—

-9:h\20.29

-Nov 24

kcb'16

^18.73

Aug 17

17.90

May
1' '16.90' Jan 27
liec. '5 ;.;-r*,,D6. Mn i t

16.90

14.81

Jan

i931

16.90

Tan

1930

-18.21

Jan

19X9 ■——i.

18.71

May .14

Mar

l>ec

,1,97319c.

Dec

l3.d8.fl)fecV6
C, 14,79

J)eC 15

2.26498c.

Oct

15:90

Dee. 16

18.21

Dec

week

month

1941,

ago

$19.17

Pig Iron

■}—r

One week ago——
month ago

One

year

No.

1'heavy ■melting'steel scrap

consumers

Chicago.

quo-'

:: vV

Pittsburgh,

PphadeT
^•■;

High

Loto

Based
ac

Valley

and

Southern

!.}.*■

;

22.50 .Oct

•

21.92

1935

'■

High *'■"■

1941

—823.61

1940

,1— 23.45:

$23.45

Jan

IJxU

22.61

Jan

1929

Low

„•

M-IJ.

.'932

' 1931

;

•

Mar 20
Dec

13.42

——

8.50

Jail

11.33

Jail

American

Iron

and

Steel

are frozen * and remain at the
several weeks: ^Finished Steel, $56.60; steel and

QHUIiVl

ftt' pononirir

tKX

Sept.

8, is

placed
,.„J

n.r.oiA.in

—.3—.

Institute

'*;;** 6.43

;

7 Va

Sept.

C'r

announced

loss;*.*

industry will be 96.9% of capacity for the. week.■

beginning Sepk.;8,

—

J937-1T_-—

■

71
f V: 2
'52;:%: 2

•

1934.—

—

: i-3'

■~r.r

revised figure of 90.3% one week ago,-95.6%r. ohe*iV27Sit::I*^

78% +'■ 8 '/a--.
V+ T'/a

,'19'/a+

,.+■ IJ/a

•'■•-- 60

•

l'/a

-fr. 2

33
2xW" ;
'6dr%V2?-t'r

Vs
64

—'3

4-4

2'/i M
2Vz

22y;— '-*%
»

.j,:

•

% 73%

-vr;
'■':

....

'."v

:\68'

^i4;

5ff

1929-1

47 '/a—10

193 l':'if

79;V-t4'/2

3'/a -i

+'. 4 •*

•79M»6 '/a i;

1936-^3

14.03 Dec"3

production with tne nearest corresponding week of previous
years;

11/39

Jly-r*t>

: •' v.,

Jatl

?/'•;* 8.50 : Dec
l&lfltM' DeC'

■„

ago..-

fyu ttie follpwing^table t gives a: comparisoh; c# the^ percentag^f^

Al»r 29

6.75

Jail

17.58

two weeks "ago.' Leading maepenaents are credited with
in the preceding week and 97%% two

97%,;compared with 96%

9.50:,Sup'25

<ing rate of steel companies having 91%-of the steel capacity of tho

week ended

+'*>r\w* "

Steel is.estimated at 96%,-.against"-07% in.the.week before

and 95V2%

that telegraphic reports which it had received indicated that
operat-

;compared with

V^v

$19,16* /

iinffiontiarl

: Juit. 9

10.33

lei)

Tj.UlT

f T2.67

AtlgV-8

The

> Under ceiling prices composites

Nov 10

Dec ,10 -y
Mar 13

12.25

'Apr H

12.92

Dec 21>

13.00

Apr 10

16.04

14.08- May 16
•11:00 IJuil 7

Mar 30

17.75

*934

1933

level' of. the past

weeks

$19.17

-15.00 * Nov. 22
1

1937

iron

Cincinnati.
.

Dee

1936

averages for basic iron at Valley fuvnand "oundry h-nt at f-'lii^srr * ?MIa T,

Buffalo,

Jan

21.83

19x8.
23.31

phia,

$22.00

19-9:

ago—

irdh; $38.15f peelmaking^scrap;,

-U%$i9.17

1940
,.

coming,

j year, ago''19.92

Based

1941.1—

TonC

lu,708 tons mis year^
? a yea^
Scrap "imports in June were also '
of;May, 6473 tons, compared with 3758 tons, material"
principally from Cuba and uanada./'l.x ■••xMf ,.v>Wv.; t

those

1,^""i 9:17

ago

-f.y*,

Gross

also below nrst half last year,

Gross" Ton

are

agaihsc 30,788 tons

/' r Steel -ingot • production for the

Steel 'Scrap

Sept. 9,

•

f tauions to
pnia,: -and

i 9

May 28

"■

One

?!-v

•y.nji'i?;

montns

: six

above

1932

One

1.83901c.-

Jan,

1934,
1933

One

Jan' 13 ' T.8t>o80C.-

Jly

*M'Shpfc*'9j-t9Utiv$23C61-a

dustrial

■.and payrolls in California,

—2.31773c.

1929

2.05200c.

Jan

One

the

free of work stoppages

by .disputes

1930. :_2.25.488c,

Fed¬

"Monthly

27,

—1.99629C.

1931

2.32263c.

28
•

23.25Mar

may

2.27207c;, Oct

Apr

Oct

2
16

Dec

_^2.15367c.

3 v 2.26689c.

„2.58414c.,Mar

1936

better

•

2
2.30467c. Sep
2* • 2.24107C7 Apr

__2.35367c.;-Jail

1938

1935

■la.o't-.

'k\ -i Xdtti

1934

■

effort,

economic

19.74

1.9-5-

activity in toe Twelitn
Federal Reserve District advanced

sure

1936

steel bars, beams,
tanx pjites, wire, rails, black pipe, hot and
coid-roiled sheecs and strip.
These products
represent
73% oi -the UrnDed. States oucput.:
based

index

1940

1937

30467c.

ago''
_I

ago

year

weighted

Tduction

J0467c.
2,30467c.

41.,.

•"t--:-

—

T'-'

..2Va%

rioVz-r

-62%-T ,I-<W.
81: ■+. ,2 '/a
60

■

I/-

Volume

154

FINANCIAL .CHRONICLE

Number 3979

the

•

listj.with perhaps the

Steel company obliga;fraetidri$ll;y /higher Z'v^thY the
exception'of the Youngstown bonds'which snowed small fractional
:VvA A consistent absence of fluctuation has characterized* the bond .loSsbs".Oilshave been generally^steady and coals, bon^s, showed mod¬
? averages in tne upper rating groups this week but lower grades erate strength as. was the;case with1 shipping bohipany obligations,
revealed some tendency to decline. Treasury issues have been vir- the; International, Mercantile Marine 6s, 1941, having gained 1%

Are Mixed

•V-v

•

side favored.

^jew TasMeasureNow

tiohtf >fcaveYbeeh -gerxefaily

Gees To Conference
(Continued from"First "1?age)

a standstill.
- 1 ' '.:-'aVN'
''//N,;''
Some weakness has prevailed among high-grade rail bonds

tually at
r

•-

;

party leaders said, had the solid
support- of President Roosevelt.

points,at 91%.; A strong spot developed in sugars, with the Fran¬
cisco 6s, 1956, gaining .4 points at 65 y2. Among retail selling com¬
pany obligations the Childs Company 5s, 1943, continued weak but

■

with

;

y'*-

f''* '

-Yv * ^

•

•*

*/•

■'/'£»►.

••

YC,

'v w.

t,.vY

.>•*/-V

,:i;. i

t,.'Y 1

Vs-J

•

substitute, Senator La
proposed higher rates
exemptions in the
scnedules
of
estate * and
gift

;;

trading in this group of light volume. Oregon Short Line 5s; "1946,
declined y4 to 113%. Medium-grade rails as a group have displayed ':thb,tihitad; E)rug^5s; 1953, strengthened.
In the liquor section the
tittle change but weakness developed at the close. Speculative rail Hiram Walker 4y4s, 1945, declined on notice of redemption. fv The
Issues have been actively traded at the beginning of the week with. McKesson & Hobbins 3%s> 1956, commenced trading at 103%. YVtZ'

Follette
and

lower

taxes.

He said these would raise

.prices the general tendency. In some instances the junior
The foreign bond market continues in a more cheerful mood.
\$z02,u00,000 annually, v : ^; t
of various A "problem" roads sank to new lows. Newr York
"That would be loss of $101,V
.There, have been some; spectacular advances in Norwegian short £
"
Cericfal; 4^sy -2019; dropped to a new low of 63%, off IVi points;
terih loans, the 6s, 1944, soaring 23 points to 84 with minor gains
000,000" he added,
"but that
iNorthern Pacific 4y2s, 2047, registered a new low of 49 f° close; at
wouia be a cheap price to pay if
ambng "the lohger-term issues. Haiti- 6s rising 10 points have been
4.9y4, a loss of %. Defaulted rail issues, in sympathy with lower another- strong, spot and Panama 3 y2s reached new high ground.
Congress could assure the people
stock prices, registered wide losses.While there has been comColombian issues continued to attract speculative buying and other
in the lower income group thajb
-liparatively little equipment -trust. financing during the. week, an- Latin American loans remained steady at recently improved levels. / we are not going to attack them
::
nouncement was made of a new. $14*737,000 St. Paul Union A
P
Australian bonds advanced fractionally and Canadian loans have
witn a ta* pincers. movement."'
issue to retire the company
y'S 5s, 1972. «'V'N
On Sept. 4 also the Senate re¬
been steady.
A late rally in Japanese bonds advanced tne 6y>s
Utility bonds have drifted rather aimlessly although recently .four,points.
jected Treasury recommendations
'
'
'
'
all classes tended to ease fractionally. Activity has been restricted
that a special 10% tax'be levied
although sizable interest has been , shown in the International - Tel. & i? ^Moody?s imputed v bbhdl prices .'jjtnd't bond; yield' averages are on 'excess * earnings - of ; asport¬
Tel. deb. 4y2s, 1952, and 5s*. 1955, and the Interstate Power 6s, 1952.. given dn ihe following tables: — v.,. .
'
v ^4. I, )
ations not now being reacnea by
:if
Mixed changes have been the rule in the industrial section of
'■' J<
\
f •
"MOOP1TS BOND PRICES t
■ the excess profits tax law. This
{Based on Average Yields)
was leportea
111 advices
to the
lower

•.

issues

■

.....

Engineering CeasMieii Confracls
In
MTreWeSIAbcve LastYear

Vaily

oept

-9 _'L

Aaa

New
Corporate by Groups '
' P. V/:" Indus

~ ' Baa.

107.80

118.20

114.85! 108.88

91.91

97.16

107- 80

118.20

114.85. ; 108.70

92.06

119.18

107:80

118.20

114.85;, 108.70

92.06

119'.l3

107.80

118.20

107.80

118.20

95.06

97.31

112.00

92.06

97.16

112.00

115.43

92.06

97.16

112.00

115.43

119.13

97.16

112.00
115.43
r.;^)Uy;A:X r.

114.66-

108.88

>-92.06

107.60

118;20

107.80

StocK Exchange Closed
118.40
114.85 -108.88
91.77

—

119.14,

Aug. .29

108.88

118.20 " 11-4.66

••

115.24

108.88

114.85

.107.80

115.43

108.88 •'

114.85

119.16

97.16

118.7^

107.62

U8.9Q

107.80

119.20

policy -of

107.98

118.00

114.66-

108.70

-91.77

112.00

115.04

* •'
a1-/v<
Values of awards -for the" thfee months are; '
*
•
Ail gust,

■

(

\- A '-

■

r.i

:v -'

1940

{five weeks)

July,

1941*

(five weeks)

97.47

112,00

115.04

97.46

112.00

115.04

91.91

97.16

111.81

1.5.04

li4.85

108.52 '

115.04

108.34 :

91.91

107.62

118.20

115.04

108.16

V;!;. lr'cX^.--

119.46

107,98 f

91.77

97.00

111.62.

107.4.4

118.00-114.66

107.80

91.77

67.16

114.44

114.46

107.62

91.48

97.00

111.44

;•

117.60

114.08

107.44

91.48

97.00

111.25

113.89

117.20

113.70

107.27

91.19

96.69

110.88

113.31

116.61

113.31

107.09

91.05

96.69

110.70

112.75

106.39

116.80-113.50

106.92

91.19

96.69

110.70

112.93

106.39

118.-51 ^.113.31

106.92

91.34

86.85

110.52

112.75

106.92

106:39

118.35

i6\—-___; 118.52

•

106.92

91.62'

m-OO -.112.93"

106.74

91.34

66.85

U0.52

112.75

106.56

91.19

96.69

110.34

116.41

112.56 ;

106.39

96.54

110.15

112.19

106.21

90.77

96.54

109.79

116.80

112.37

106.21

91.48

97.00

109.ii7

112.19^106.04,,

91.05

96.54

109.79

111.81

112.93.

106.56 '

90.77

96.54

1*0.15

112.75

117.40

113.31

106.56

90.48

96.54

109.97

113.31

,v:

percent higher than the $3,987,243,000 reported for the entire yeai,
1940. - Private awards, $893,742,000; are up 41 percent compafed

117.40

* 117.00

3 percent; sewerage, 8

private .housing, 49 percentpand*-unclassified construction,. 121 per-r
1

Every geographical ;section-.,of the
gains for 1941 over the corresponding
5;: Mississippi states lead with

^percent;: South is 'up .109

109.97

113.12

taxes

95:92

109.79

112.75

89.52

95.62

109.60

112.75

583,900,000 "designed
to meet -defense costs.. The bill is

105.66

1*6.24

H16-.52

117.60

113.12

117.80

-106.21

113.31,

10b.21r

118.00

113.70

106.56

117.60

113.89

118.06

106.'56

118.20

106.56

118.20

60,20

106.39

117.64

percent;

West is

78^

109.60

109.79

113.12

96.85

109.79

1 Jii.56

90.77

97.16

109.97

described by the Associated Pres3

113.89

106.56

S0.48i

96.69

110.15 ...113.86

114.27

106.56

113.70

■

105.39

89.78

95.92

108.88

92.35

97.62

112.00

114.4o

persons

115.43

95.62

1UH.42

1*1.6.

119.63

106.74

119.00

115:04

106.74«

89.92

96.07

110.88

114.85

ciated Press Washington accounts

113.02

i 99.04

112.19

109.60

99.52

Sept. 6 we also quotes

116.09

103.80

116,61

112.93

103.64

111.03

Daily \

97.31

109.24.

;

Avge. x
Corpo¬

":r

'"■■■

104.83

79.37

86.38

105.52

106.56

86.11

' 92.20

109.60

111.25

,96.07

82.40

of
88.13

Corporate by Groups
Baa

2.91

3.23

2.74:

2.91

3.24

2.74:

2.91

.3.24

3.29

2.74

2.91

3.23

2.88

3.93

3.06

^5-V
4

■' V

3.29 '•

2.74-

2.91

3.06

2.74-

2.92
2.92

.^private housing, 40- percent; waterworks,. 15 percent; and unclassU
P^fied construction, 72 percent, v LosSes: are • industrial buildings, 39
percent; bridges, 36 percent; sewerage, J42 percent; and earthwork:
'/and drainage, 15 percehtp'v:-'
Comparisons of the current averages ,with those for July, the
?;(i ?highest month in ^history? reveal an( increase 'in only one class of
f,
work: commercial -building and large-scale- private housing* up * 1

"•

Aug; y29;.r jVil

•

3.29

iy-_:

2.92

■5.

2.90

2.89

July: 25

' 2.74

3.29-1

vis- _i%—:

2.74

j__

2.75

3.3i:

No *'-20 —i-*—

•May- 29
;

•

3.33

Geographically,

sections-of .the- nation' top

their respective

•

3.25

3.26
3.27

t
:

3.28

2.92

3.25

\
C

■t 3.29

2.89

:<*

2:95

f
o

2.81

3.37

3.06

2.98

;

3.92

3.06

2.89

.3.93.

3.06

•

2.90

3.07

;

3.93

-4.31

3.94'

2.92

3.09
3.10

' V 2:96

3.96

3.12

2.99

3.96

3.13

3.02

4.33

3.£

•

4.31
4.33

3.13.

}'•

3.34

3.00

3.34

4.30

3.94

3.14

3.01

3.35

£ 4.32

3.95

3.14

3.02

4.33

3.96

3.15

3.16

3.06

3.18

3.07

4.32

3.95

3.36

3.39

3.37

4.35

3.97

2.83

3.38

3.05

3.38

i: 4.36

3.97

2.81

3.04

<■)

3.38

/ 2.83

3.05

?.■

3.39'

2.80

3.01

3.38

2.78.

3.39

2,99

4.31

3.94

4.34

3.97

3.36

4.36

3.97

3,36.

4.38

2.99

2.78

3.*4

3.02

3.03

3.40

3.02

3.37

3.01

3.38

3.17

3.46

2.99

3.17

3.40

4.43

•

3.00

3.18

3.02

4.01

•t

3.42

New capital for construction purposes. tor-August totals $396.-'
186.Q00. On :the weektv -average basis, - this is .73 percent above the

Jan.

3.35
.3.37

2.80

3.40

<
■

3.02

3.39

i.77 f

3.00

3.38

2.99
?.97

3.37

V 2.76

2.75

4.45

4.03

3.19

4.44

4.01

3.19

4.40

3.97

3.18

—.—

•v

debate.

the
,f

Democratic

Leader

and

because

sible.

■

...

to
A

5/ of $330,200,000 in
*

./}, A/-

3.00

: 2.99

rider

ments which made

4.37
3.95
3.18
2.91
?.37
volume for ^August,}1940;^new firiapcipg is made up
3.36
2.77 i
2.96
3.36
A 4.36
3.93
2.98
t 3.17
:
3.36 :
2.96
2.74
-17.--—4—
3.36
,, federal
appropnatioris for WPA / construction.'
4.38
3.96
3.16
f 2.06
*•
%
2.94
$23.594.000i 'in> RFC :-loans for^ private • industrial Olant
2.74
3.36
3.36
3. £6
4.39
3.16
2.95
expansion, ;r:;,rio^y-_i^-4.2.93
;
2.73
3.37
3.37
4.43
4.01
3. *6
;.
$22:703,000 in state; and municipal- bond sales,. $19,154,000 in cor( 2.93
.3.42
3.06
High* &Y
.2.84
4.47
4.03
3.39
V 3.20
3.08
porate, security issues, and $535,000 in RFC loans for public im- Low-1841 ,1—1
3.28
2.72
2.89
3.23
4.25
3.90
3.06.
2.88
3.81
3.06
i ■: provements.
3.19
A 3.42
High 1940Y
3.78
5.24
4.68
3.36
;
Low. 1940 'O—v————
'3:35
2.70
3.35
4.42 •
4.00
2.90.
3.12
i
; New construction'
2.91
fihahcing" fi)r; the: yeai? ib 'da^^
1 Year Ago— r;?
r
.'.tops the $1,985,331,000' reported for the: 8-month period- last .year
3.52
2.82
3;01
1—
3.53
:
4.70
4.26
by Sept. 9, 1940-:
3.19
3.10
■i172 percent. ; Private investment accounts for^ $627.462 000 of
the r-';"2-rYedra Apo— r
3.92
Sept. 9, 1939—1—
1941 total, 17 percent below last year;
3.21
3.46
3.53
; 4.00
4.99
4.55
3.66
$378,410,000 is in federal apy * These* pticesYatB computed from average yields on the basis 5f: one (^plcaP' bond
v.-. '• propriaticjps
for- non-federal. Work;' .9' perWt- under, :1M0;' and
coupon,. maturing 4n 25 years) and do hot purport to show either- the average level or the
•{ $4,397589J)ft0; is ..in. federal* funds for.-federal
construction 443 peri- •average ^movement of actual price quotations^ They merely- serve to illustrate in a more com*
cent higher than in the 8-month period a
year -ago.
'
" ' prehensile way, the 'relaUve vleyelsapd the relative movement-of, yield averages, the lat¬
ter

3.02

-r^i //
;

2.79

Com-:

prompt7

Senator
George*
each day's de¬
lay in enacting the tax measure
costs the Treasury about $3,000,000 "in,- uncollected > nuisance*
taxes,
engineered
the
agree4

'Capital

offered

bill.

tax

worried

3;02

3,17

consider

proposal to give $30-a*
pensions to, all person?
The pension Dipn >*d

Barkley

3.07

3.97

Finance

the

60.

been

3.05

3.18

3.99

4.40

...

3.01

that

would

Z Both, the community income
and
the
pension
issues
had
threatened to develop prolong-Z

3.05

•W

3.40

A 3.01

2.99

month
over

2.94

";3.64

4.34

2.81

28 -————i

would

amendment

affected Pennsylvania*

vocates

2.91

3.09

3.94

rnittee

2.00

3.08

-3.93-

2.90

£: 3.06 1

2.82

&>&'. *'

The

have

laws.

2.89

2.80-

Mar.

2.00

3,06
3.06

.".

.: -3.91

4.29

3.34

3.41

wives

Jersey, or other States not
having
community : property
'
i
0;2. They promised pension ad^

2.90

3.37

:'.2.82

and

New

2.88

3.03

3.91

4.28

3.33

A.' 3.06

3.37

3.38

husbands

poses.

not

C-'

3.36

I' v;

2.88

,2;

Apf .^sT;

mated

vented

2.88

16:

ivr
*'<•. A"-.

community property States from
dividing income ,for tax / pur*

2.88

-3.91

4.27

3.32

2.99

4.i8

4.26

4.37

4.28

3.31

2.97

2.82

3.37

—

3.06

3.93

.4.29..

3.30

2.77-

4.29

„

'2.93

2.76
,

had

/•;'/ v/x: /'
;.'-vj
dropped a Finance
amendment, Aesti*
: to
raise; $50,000,000
a
which would have pre*

year,

2.89

3.06

3.93

4.29

'3.24

2.79

3.92..

^>23 &&QSL&..L.

tion, 43 percent;

3.b3„

•

3.24

2.92

2.75

3.35

-QiO

A.21

■

3.24

2.90

2.75

3.34
•

3.93;.
3.93

3.23

•

2.90

2.74

r
/

-3.31

'•

■

3.30 >* : 2.745
3.30

leaders

important conces¬

They

2.89

■

Exchange Closed

2.91

2.75

3.29

measure

two

2.75'

3.28

£i';~:.i

_i_j

: 2.73:

3.30

-11

;

2.74
Sv
S'

3.29

U/a

^ -15
r_Jw-__'u.
i;:. .-.. s _i-_—j__

Stock

{

•v;:,

4,27...
4.27

3.23

3.29'
.

4.27

3.23

; 2 -_f—1V—_L;

V public buildings; 168 percent; commercial building and large-scale

3.23

•3.29 i

3 •

tax

^
-Ji
approval

•••;

Senate

2.80

3.93

.....

Indus

3.06

3.93

...

4.27
4.27

P. V.

R.R.

4.28

make

Prices)

■>

the

103.84

sions:

Corporate by\ Ratings

101.47

fast

win

Committee

2.74'

3.29

iy...

YIELD AVERAGES

Aao

rate

*; *

Asso¬

89-3

3.29.

streets and roads, 9 percent.

the

ioti.04

climbs

year on

From

structure.

tax

1*2.00

3.29

gains .over those reported:last

one

115.22

Ago

Average-

tax •; measure in
which will brin^
4,911,000 additional
under the Federal income

biggest

anu

estimated

10o.52

(Based on Individual Closing

•

ri.

■.

114.08

110.15

115.24

MOODY'S,BOND

tne

history

.Ho.89

:1941-

-percent

113.5G

110.15

96.69

90.34

114.46

118.60

rev*

enues

113.31

90.48

118.40

.106.39
107.98

118.65
119.62

nation

Middle

"95.92

-95,54

89.61"

106.39

1940-.—

reports substantial
period in 1940.
West of
160 percent; rise; Far West gains 113

yield

66.23

89.78'

106.04

Y.r.

will

90.20

106.21

1948-*-

higher

thereunder

106.39

Sept,;9, 1939—

112.93

112.75

Low

113.31

117.14

"High

by the Senate oh
estimated thai the

passed

117.20"

Sept-: 9, 1940—

Sept.

117.00

•i>_- -3
High •. 1941 ____
Lvw "l94i_^i"__

cent..

:■

105.52

V: V 10118.03

period last year.; All other classes of work, except streets and roads
which are 10 percent lower, climb above their respective totals, for
up

105.86

building construction accounts for $1,994,332,000 of the
year's total, and is 405 percent over the volume for the

Waterworks construction is

111.81

Public

106.04

t-"

aiong
W1C.1
committee
recomy
mendations for higher levies oii
admissions.
Y*'"-

1X6.93

2r;-^^-

period last year, and public construction, $3,435,n
885,000, is 129 percent higher as a result of the 357 percent gain in ^";:^7

federal,-canstrucUont.r;;.v

estate/ and

refused

but

116.06

28"

; ^

Jan.

gift: taxes,

7..116.90

Feb.

with the 8-month

„

90.91

112.93

from

yield

revenue

112.19

116.41

112.00

116.41

lor

112.19

110.52

97.00

agreed, to follow sagy
01 President Roosevelt
lowering exemptions on per¬
sonal incomes, anu also adopted
cnangfcs proposed oy tne Finan¬
ce
Committee 'to increase
the

I gestions

112.75

116.61

-y

113.12

116180

tax^

114.27

118.71

' profits

chamber

114.66

117.80

106.74

112.00 : 115.24

10,7.09

118.97

May. 29.

-v-' (four we,ks):,.

114.66

407.44" 118.00.

119.02

1041

108.52

119.45

119.55

I—..

June 27

115.24

118.20

ago.,,

97.47

115.24

118.20

•

year

92.06
92106

118.00

107:62

115.04
115.24

107.80'

Current

112.00
112.00

107.80

9 —:
118.45
106.56
$397,25^,000
$958,663,000 $529;561,Ou0
2" Alii Ji.*i Ki 18.66 ■ 1(56.39
'82,766,000 ' V' 86,342,000c> - 72,982^)00
118:62; 106.21
Public Construction
314,487,000 fl 872,321,000
..456,579,000
-18
-118.28 "105.86
State and Municipal
; 144,145,000
128,780.000 : 80,1"58,000
105.69
:-10.__>„- 4*7.36
Federal
170,342,000
743,541,000
376,426,000 p§i/:;4:pi^5Av::ll7.S5i; 106.04
28
" 117;80
,105.86
The August volume brings 1S41 construction to $4,329,627,000v
"2i
117.85
106.21
a
103 percent increase over the 8-month total last year, and 8V2
14 —__i_ *-117.7-7
106.21

:V?(

97.31
•97.47

119.55

Construction

Private * 'Construction

91.91
92.20

119.56

Total

10d.70
108.70

August,

115.04
115.24'

18-,-119.47

•'

'v/f)i^ce^ing.;moni;h's-av^age;,;''V:^:#I""
'i

118.00
118.20

July 25

•

'Lte

fundamental

tne

excess

ation, the Senate voted its eli¬
mination from the bill, but with
the understanding that a suo4
■: siitute
proposal may be sougnt
in conference.. £
v ;
>
1;: At the same time, the upper

•

with

tent

C'v

Sept. 4 which also said;*; : J,
Supporting tne position taken
by its Finance Committee that
that \ special tax was
inconsis¬

115.43

111.81

Com¬

eau

91.16 ,112.00 ; 115.24
97.16
1a2.00
115.24

112.00

"Journal

York

merce" from its Washington bur¬

R. R-

119,11

__1

i"i-'S'119.13

>4
:.3

i'C?'"■:
>'
Corporate by Ratings ♦ '

rate *

-119.13

..Cl

'>5

-f
August engineering construction awards top the half-billion
N dollar mark for the third consecutive month, and reach the fourth
highest .volume .ever reported, .by:.Engineering...News-Record.;YTh'£
V
month's total, $529,561,000, averages $132,390,000 for each of the fou*
weeks, and is 67 percent-above the average" for the five weeks *)f
v
August, 1940, but ai percent Under the all-time high average week
'; for July, 1941; >r.^T:L
..Vi.---c.v>; Private- awards, on the,weekly average basis are up 10 percent
compared with the month lasc year, ana 6 percent over a .month
ago. -; Public construction is 82 percent higher than a/year agb.;due
to the 176 percent increase in federal work, but is 35 percent lower
W than in July, the record high.
,Federal work is'37 percent under the
.

bonds'

'jli*
2-.'-

•; 6

Avge.

Corpo¬

Govt.
:

v. s.

Aoerayes

passage

pos¬

://' •;'"Za1/;\':" '-AaZ- '•

: Because- of :1 a recess agree¬
ment, the House can not act
on
a
comprise measure before
September 15, and leaders said
they hoped to have all difter*
ences
ironed out by that date:
The Senate's action in lower¬

ing income tax exemptions from
$2,000 to $1,509 for married per¬
sons and' from $800 to $759 for
single persons topped the list;,

being the true picture of

the.bohd market.

controversial

^ the

I "A.A;:

two
>

♦;

issues

chambers. N *

between

>1.

(Continued on 'page/124). V ;; n :

Non-Ferrous Metals

(Special

industry

news event<3>
Australian
and

the

top

week.

the

lead

purchased by
Washington re¬
ports indicated. The zinc statis.tics for August showed a gain in
stocks
and the
highest rate of
Peruvian
Metals

Copper
took

discussions

Further

place

during tne last week in reference
to extending the deal for South
American copper.
The stumbling
block
is
the
price.-. It appears
likely that 11c. c.i.f. United States

higher will have to be
some in the industry be¬
Bonded
copper
sold in
York througnout the last

ports

paid,
lieve.

.New

week at

11c., f.a.s.

The U. S. Bureau of Mines,

000

will

tons

for

available

tons.

sales

Domestic

the

making

tons,
month

far

for

28,038

for

tne

lead

situation.

scheduled

with

are

officials

Washington today (Thursday,
Sept. 11) to explore the general
situation.

To augment

supplies, it was re¬
ported unofficially that the Metals
Reserve
Co,, has acquired 4,600
tons
of
Australian
lead,
now
afloat, artd closed a deal for 10,000
tons of Peruvian lead. Some Peru¬

vian

estimated

lead,

the week ended Aug.

around

Sales

Zinc '/yyy
zinc

slight gain—130,000 tons,, or 1.2%—over the preceding week.
week last year was 9,072,000 tons.

week ended Sept.

3,222

4^299
mon

The

6 amounted to

tons,
wuh shipments of
tons. The backlog in com¬
dropped to 65,741 tons.

zinc

situation

price

was

un¬

changed, Prime Western continu¬
ing at 7V4C., St. Louis. The trade
in

interested

was

consumers'

the

stocks

for

report

July indi¬

cating another gain in the supply
hand.

Beginning with figures for Au¬

the
Zinc

American
an

scatistics
Institute

1940,

the

present

improved picture of operations

States.

smelters

zinc

statistics

The

the

show

production of zinc (all grades) by
domestic

from

smelters

Aug. 23

Pro¬
j

ended Sept.

153,269

207,774

208,138

securities

fuel b

42,496,000

average

and
col¬

Aug. 23,

Aug. 24,

1941

Colorado

17,403 tons, against 13,848
(revised) a month previous.
Production
during August was
ions

at the rate of 906,Including im¬

year.

Georgia and North Carolina-

Iowa

■

—

Kansas -and

*■.'

•

120

100
794

222
33

Mexico

135

.9,

,...

Central

Dakota

Pennsylvania bituminous
Tennessee.

——

2,665

2,678

2,236

——

1,846

143

...

147

•

112

107

14.
486

2,765..
,101..

Rocky

v.;/yy. 85
405
29

2,177

2,258

1,968

405

Virginia
Washington
v

Virginia—Southern a—

Northern b

States c__

bituminous

■

828

y119

V:.

98
♦
_

542

kfy

;•

■

came

■

•

DATA

FOR

1,515
875

/.:*'-*.y

11,538

2.975.094

<•

1,926
13,464

Mav

June

3,162.586

11.775

10.950

5.85

52.000

11.775'

10.950

52.000

11.775

10.950

52.000

5.70

7.25

52.000

5.85

5.70

52.000

5.85

5.70

about

Nov.

Dec.

Sept.

Oct.

Sept.

52.000

Sept.

52.000

Sept.

52.000

52*000

52.000

Sept.

52.000 /52.000

52.000

Sept.

52.000

Sept.

___52.000

52.000

2.056.509

2.266.75!

2.051.006

2.260.77!

2.287.421

11.775

Average

prices

11.775c;

for

export

2.362.436

+.17.3

2 395.857

2.074.014"

2.1^5,033

1.937.486 >■ '2.139.28:

2,402,893

2,154.099

•

2.377,902

i
•'(

52.;00

5.85

082.232

2.152.779:

2.426.631

3,200,818

2.745,697

'.+16.6

2,714.193

+17.7

2,434,101

',+ 17.8

2.442,071

'2.321;53:

2,216.648

3.223,609

2.736:224

3,095,746

2 591.957

+19.4

2,413,600
.

2,453,556

2.375,852

2.159 667

•2.312.10-

2.193,750

2.341.10:

2,198,266 i
„

2.206,560

2 532.014

2 279.233

2.538.118

2.211 059

2,816,358

2,558,538

2,207,942

2,360,95(
2,365.85(

.2.351.23:

2,380,30]

2.109 985

2.773.177
2.769.346

2.286.36:

2,368.43*

2.202,454

shown

7.25

.2 2' 1 39*

2 338 37(

2321,2.77
2,331,41?

above

are

net prices

at refineries on the Atlantic seaboard.

"5" 70

7.25

calendar week .ended
copper,

York lead, 5.850c.; St. Louis lead,
The above quotations are "M.

Delivered prices in

New England average 0.225c. per pound above the refinery basis.

> ' 7.25

Export quotations for copper are reduced to net at refineries
10.950

2.176 391

•y+iR.2

3,196,009

2.251.99!
•

.'v.'

•

Sept. 6 are: .Domestic copper f.o.b. re¬
f.o.b. refinery 10.950c.; Straits tin, 52.000c.: New
0.700c.; St. Louis zinc, 7.250c..; and sihvr, 34.750c.
& M. M's" appraisal of the major United States
markets, based on sales reported by producers and agencie^r They are reduced to the
basis of cash, New York or St. Louis, as noted.
All prices are in cents per pound.
Copper, lead and zinc quotations are based on sales for both prompt and. future
deliveries; tin quotations are for prompt delivery only.
«. j
,
: v V- ;
v In the trade, domestic copper prices are quoted on a delivered basis; that is, de¬
livered at consumers' plants.
As delivery charges vary with the destination, the figures
Average

finery,

2,340.571

2.030.754

-7.25

5.70

52.000

10.950

follows:

1,936.597

2.328.756

Sept 27

7.25

5.70

10.950

2.186.394

2,399,895

—

2.249.301

2.277,749

+15.3

3,193,404

2.242.42:

+ 18.0

Sept 20

7.25

5.70

5.85

*..+ 16.3

f, +17.1
; +15.1
•:.;,+15.2"

Sept 13

St. Louis

5.85

2.023 830

2.760.935

-—+L

Sept

Zinc

-Lead—

2 225.19"

.2 019 065 y

2,762,240 ^ +16.8
2,743,284 > +16.5

Aug. 30

J." QUOTATIONS)

1 992 161

2.234.592.

3:183.925

Aug. 23

-St. Louis

;

3,226; 141

j/a—

Aug. ,16

10.950

„

2 '>*'4.7^3

2.238.826;

2 681.071

New York

„•

+18.3

+ 18.5

New York

Kilowatt-Hours)

.+ 17.0

V +18.0

Exp., Refy,

2,651,626

11.775

was

2.550 071

3,141.158

11.775

1,200 tons of tin is overdue.
'
Straits tin for future arrival

2.515.515

2.982.715

2.659.825

Dom., Refy.

3.1.
X9.0

>..16.6/

from

2.425 229

11.775

y +16.4

2.503.899

2.653 788

& M.
Straits Tin,

17.7

.1940

2.914.882

3 _____•_
Mav 10;
May 17:.y
May

2.866.865

("E.

4.5

xio.3

((Thousands.. ;0f

3.120780

tin

cargo

WEEKS

3,055.841

METALS

••

(

17.5

21.8

T 1S41

Includes operations on the N. & W.; C. & o;; Virginian; K.
in Kanawha, Mason, and Clay counties.
bRest

data under revision.

RECENT

Week Ended

the B. & O.

PRICES

19.4

16.2'
24.2

.11,641

8,686

13.2

.'vyy."-M *yy'

;

154

114

.1,487..

,856

16,'4ll

;:/c 23.0

•

be higher;

should

17.8

19.4

States...

•"

XlO.5

June 21

...

field to 52c. throughout the week,

8.5

Auff.
■

20.2

12.1"

15.1

24.8

xlO.8

& M.; B. C. & G.; and June 28
Of State, including the July 5
Panhandle District and Grant, Mineral,
and Tucker counties. * c includes Arizona, July 12
California, Idaho, Nevada, and Oregon. ; d Data for Pennsylvania anthracite from pub¬ July 19
lished records of the Bureau of
Mines,
e Average
weekly rate for entire month. July 26
>f Alaska, Georgia, North CaroUna, and South Dakota included with "other Western States."
Aug. • - 2
Less than 1,000 tons.
s,
*<•.*>
^
• • ---~
'
Aug.
9
a

Though political tension in the
East
moderated, and some
expected
futures to

positions.

kB: 20.1

19.3

••

2 664.853

consumers

all

,>27.4 '
7.7 <y-.

Aup. 23,'41

16.0

•

^ 066.047

all'coal——

DAILY

Straits

17.5 -

United

Percentage

•

June 14

Total,

-Electrolytic Copper-

for

21.9

States

;.y!T* *+'

Aug. 30,141
2?.. 5

16.1

2.598.812

to 79,000 tons.

market

Sept. 6,41
-

2.588.821

9,860

Auc. 30.

Week Ended Week Ended Wee* Fvd<>d

_i.

2.477.689

977

1,000,000

•

3.042.128

Far

the

•

? -

2.924.460

Tin

«ase,

3.011,754

i,i74
11,914

44 000 000
+

Change

the

ably

year ago.

■y
<

3,000,000
•——--

The outnut for the week ended

12,008
12,008

6R onn 000

' PERCENTAGE INCREASE FROM PREVIOUS YEAR

•

ports of slab zinc, total supply of
metal during August prob¬

May 31

/ 1,258

anthracite d

850 000 000

—

Percent

10,154.

7,830

8,883

10.740,

79,000,000

+140.000,000 /

626 000.000

..
y

;

248

.V.I ;712.

105

24
83

2,115.

1,900
:r.

9,355 000 000

+.40

.:.

•

Coast

Total

118
':

78,

+3*448.000.000

5 090.000

26,000,000

—

238

640;.:;

10,750

coal

138

—-

Western

848

;—

—

278

288

.49

—104.000.000

610,000,000

Mountain

Pacific

.,3,734

.24

12
75

,.24,349.000.000
i

estimated to be 3,223,609,000 kwh., an increase of 17.8%

Industrial

Southern

r 1
20
y/ 871

rtf*

Utah

Total

382

Other

448

—

Wyoming

■

648

—

Texas

West

;

663

—-----

331,000,000

West. Central

50
*

South

and

North

Atlantic

Middle

..17.,
48

...

40,000,000

banks

England

New

217

52.000 000

3,502,000,000

Regions

765
-

164

: ^ 26

103 000 000
8P4 000 000

1,000,000

■

,8..
52

56
20

—

—
—...

153

+
—

J 6.000.000

Major Geographic

145

638

34.000.000

99,000,000

5,42(5.000 OOQ

'/' y

100

111.

824

Maryland
Michigan

147

732 000 000

—

deposits:

was

440

956

208

;

1,3^6 000 000

+.
—

deposits—adjusted

the like week

over

325

JPaanonno

1,363

1,037

149
<,

Western

Montana

247

376

9.00

Missouri

Kentucky—Eastern

New

—

2,591,957,000 kwh.

1941,

173

743

866

446

465

Indiana

4.-000.000

15,000,000

3.768.000.000

banks

Government deposits

taled

138

■

•

3.000.000

.....

397
•

86-

105
.

1,045

1,122
c—-—1,122

..-1-,

Illinois

yyy- iis::
"yy ■■''l i:

122

—;—,

321

314.000 000

The Edison Electric Institute, in its current weekly reuort, es-:
timated thq,t the production of electricity by the electric light
power industry of the United States for the week ended Sept. 6, lp41,
was 3,095,746,000
kwh.
The current week's output is 19.4% above
the. output of the corresponding week of 1940, when production to¬

1923 e

'x54"

82"

•"..V

226

274

344
•

Oklahoma-—-

343

.Alabama-

Electric Output for Week Ended Sept. 6, 1941;
Shows Gain of 19.4% Over Like Week Last Year

average

1929

1939

1940

60,000.000

Banks__10.534.000.000

Foreign banks

Aug. 24* Aug. 26

Aug. 16,

1941

State

268.000.000

Borrowings

estimates are based on railroad carloadings and river shipments
and are subject to revision on receipt of monthly tonnage reports from district and
State sources or of final annual returns from the operators.).
Week ended
'::y^
-y •+4ufir.

and

domestic

Domestic

(The current weekly

Arkansas

with

Interbank

PRODUCTION OF COAL, BY STATES

(In Thousands of Net Tons)

;;

deposits

ESTIMATED WEEKLY

—

37.000 000

8.000 000

543.000.000

Reserve

Time

22,183

19,242
12,000
26,150
22,100
(a) Adjusted to comparable periods in the three years, (b) Includes washery
dredge coal, and coal shipped by truck from authorized operations/ (c)^ Exclude?
liery fuel,
/ :V," /W
\y':
Daily

Gov't 3,316.000 0"0
r

Federal

vault

Demand

4,591,800

7,058

132,600

1,461,100

3,983,100

72,000

156,900

2.000.000 ;

Liabilities—

45.793,000

31,973,000

2 000.000

27.000,000

-r

-i

2.283.000.000

total

33,656,000

34,090,000

821,000

1,195,000

1,171,000

35,878.000

864,000

1,258,000

1,233,000

Comm'l prod'nc—
Beehive Coke—

1.000.000 ,'

7.949.000 000

wtih

Cash

1,019,000,000

103,000,000

1,940,000.000

notes

Balances

colliery

incl,

'
1,256 OOO.OOO

45,000,000 "

securities

3,000,000

+159,000,000217,000,000

v 436 000,000 ;

_________________

/
+1,742.000 000

39.000.000

—

2,337,000,000

•„

+ 5.050.000.000

206,000,000i /

607,000,000

■

:___

loans

Sept.A, 1940
>y,,-.*■■■<

bonds

Reserve

1929

1940 a

Anthracite-

Penn.

Total,

totaled

dealers

—'—I—

loans

397,000,000

____________

and

Obligations guaranteed by U.
Other

Pennsylvania

brokers

estate

Treasury
U.

1940

6.222.00Q.000

Loans to hanks

Aug. 31

1941

and domestic concentrate.
expanded
statistics
reveal
that stocks at the end of August

tons

ing
Real

Calendar Year to Date

Aug. 23

Aug. 30

/; +131,000.000

Other loans for purchasing or carry;.

Tons)

(In Net

COKE

BEEHIVE

Aug. 27,1941
*■

Investments—total__-l____29.238.000.000

securities

PENNSYLVANIA ANTHRACITE

PRODUCTION

: Sept. 3,4941,

.>
•

market paper

Open

Other

Week Ended

The

75,524 tons,

v-*

/».

loans

Loans

1940 and 1929.

and corresponding 35 weeks of

1941,

and

tural

Includes for purposes of historical comparison and statistical convenience the
production of lignite, (b) Total barrels produced during the week converted to equiv¬
alent coal assuming 6,000,000 B.t.u. per barrel of oil and 13,100 B.t.u. per pound of
coal
Note that most of the supply of petroleum products is not directly competitive
with coal.
(Minerals Yearbook, 1938,. page 702.)
(c) Sum of 35 weeks ended August
30,

Commercial, industrial and agriciil-

5,609

3, 1941, follows:

Loans—total■ ii_l____—________li___10,903,000,000

1,512
6,368

of the principal assets and liabilities of reporting
together with changes for the week and the year

Assets—*

9,072

of weekly output 6,415

Increase ( + ) or Decrease <—)
:

petroleum—b

Coal equiv.

A summary
member banks,,

1940

10,880
1,813

average

Crude

•

.. -

Loans

fuel

inch' mine

Total,

<•

deposits-adjusted declined $38,000,000 in the Chicago
district, $35,000,000 in the Cleveland district, and $104,000,000 at all
reporting member banks.
'
"
;
Deposits credited to domestic banks increased In all districts. &

coal—a

Bituminous

Demand

AUg.

1941

Dally

/'/

Calendar Year to Date c

Week Ended

Aug. 30

both im¬

ported

288

of Net Tons)

(In Thousands

United

now

arid agricultural loans increased $18,-

industrial

000,000.

CRUDE PETROLEUM

ON PRODUCTION OF

COMPARABLE DATA

Ohio

gust, and corrected back to Janu¬
ary,

PRODUCTION OF SOFT COAL.

ESTIMATED UNITED STATES
WITH

Alaska

the

for

common

^credited to
y / '•?'
f •;

Holdings of Treasury bills declined $42,000,000 in New York
City, $17,000,000 in the Chicago district, and $60,000,000 at all report¬
ing member banks. Holdings of "Other securities" declined $34,-

banks.

indicating

30 is esimated at 10,880,000 net tons,

duction in the corresponding

3,000 tons, figured in the previous
transaction
involving
foreign
metal.

Commercial,

in its report stated that the estirrv

Department of the Interior stated that production of bituminous
change in trend.
The total output in

AND

Producers

meet

domestic banks./ V/Q'i

coal continues to show little

active,

the demand-

Increases

adjusted,, and y an increase , of - $140,000,000 in deposits

report of the Bituminous Coal Division,

The latest weekly coal

U. S.

;

fore long to control

the

September 3:

000,000 in New York City and $159,000,000 at all reporting member

resulting from a combination of
increased consumption and appre¬
hension about probable action be¬
supply

Hass, Barnes & Maxwell.

shows

cities

ended

Treasury bills

continued

member banks in

preceding week. ;Tn comparison with the output in the corresponding
week of 1940, however, there was an increase of 369,000 tons (about
43%).

ESTIMATED

Lead

for

copper

total

leading

week

and

32,941 tons.

■

Call

involved

week

last

;

•

of weekly reporting

statement

following principal changes for the
of $39,000,000 in commercial,
industrial and agricultural loans, and $159,000,000 in loans to brokers
and dealers in securities, decreases of $60,000,000 in holdings of
United States Treasury bills, $99,000,000 in reserve balances with
Federal
Reserve
Banks, and $104,000,000 in demand
deposits101

with M. H. Lewis &
prior thereto was man¬
ager of the stock department of

formerly

(a)

ceiling of 12c., Valley..,;.
the

The condition

000,000 in New York City, and $39,000,000 at all reporting member
banks.
Loans to brokers and dealers in securities increased $137,-

asking for at least 140,000
The quotation held to the

mers

of the Federal Reserve

System for the week ended with the close of business Sept. 3.

production of Pennsylvania anthracite for the week ended Aug.
30 amounted to 1,233,000 tons, a decrease
of 25,000 tons from the

getting
routine affair. About 131,-

September shipment, with consu¬

the entire body of reporting member banks

ated

The domestic market is
to be

Board of

Governors of the Federal Reserve System respecting the returns of

California, 623 South Hope Street,
members
of
the
Los
Angeles
Stock Exchange. Mr. Harvey was
Co.

In the following will be found the comments of, the

Weskly Goal And Coke Production Statistics

was

production on record.

Company

Thursday, September 11; 1941

Member Bank Condition Statement

—

Reserve,

■

Pacific

the

with

Markets"; in the issue of Sept. 11
stated that thousands of pieces of mail and thousands of ap¬
plications for preference ratings which had become "bottlenecked" during the last several weeks were cleaned up over
the last week-end, according to Donald M. Nelson, Director
of Priorities.
This was accepted in the non:ferrous metals

CAL.

f.C

Chronicle)/.*.

Financial

John
C. Harvey has become' associated

"Metal and Mineral

The

LOS ANGELES,

Zinc Higher

—

•

Harvey With Pacific Co.,

Government Purchases

—

Australian and Peruvian Lead

FINANCIAL CHRONICLE

120

board.

*
on

the

Atlantic

sea¬

foreign business, owing to the European War, most sellers are restricting
offerings to f.a.s. transactions, dollar basis.
Quotations for the present reflect this
change in method of doing business.
A total of .05c. is deducted from fas
basis
(lighterage,

etc.)

arrive at the f.o.b.

Due to the

European

is not available.

Prices

war

refinery quotation.

the usual table of daily London prices

standard tin, the only prices given, how¬

as follows:
Sept. 4, spot, £256. three months, £259
£256, three months. £259; Sept. 8,-spot, £257, three
£259%; Sept. 9, spot, £257%, three months,* £260%• and
Sept. 10, spot, £257, three months, - £259%/ v5"
ever,

are

Sept. 5, spot,

months,

FINANCIAL

Volume .154 / Number 3979

Announces We Will

Government Attacks Itself
?

Defend All

The Battle of the

Judiciary seems not to have been end¬
ed, as most Americans must have supposed that it was, by
the emphatic popular and Congressional rejection, in 1937,
of the official plan to enlarge the Supreme Court. Even in
the midst of clashing arms and extreme demands upon the
country's resources and power that call loudly for unity of
sentiment, the President revivies memories of the most sign¬

that the time has
Americas

after a struggle lasting for more
which he exhausted every exped¬
ient of Presidential power in his effort to achieve victory.
Mr. Roosevelt sustained inglorious and overwhelming de¬
feat at the hands of the people of the United States. Aroused
as they never had been aroused since their Civil War, and
substantially unanimous in sentiment as they never had been
upon any great issue in the past, they sprang to the defense
of one of their time-tried institutions and virtually compell¬
ed their Congress, previously most subservient to the Ex¬
ecutive, to obey their will. The issue that had this tremenduous result was the preservation, in its constitutional inte¬
grity of one of the three co-ordinate and mutually indepen¬
dent departments of the Federal government—the Supreme

1936-1937

which

could

and

greater

/ will
American

term,

consisted of

Chief

story, the controversy was en¬

gendered in the former's lust for unlimited authority. In
a narrative written with the aid of Turner Catledge, this
observer said:—

of the Court's offenses was its
The Presi¬
dent regards great powers as, his prerogative, and while he is some¬
times careless of the prerogatives of others, he is as jealous of his
own as was Louis XIV.
Since he considered them infringements on
/ "Perhaps

the most immediate

denial of satisfaction to the President's taste for power.

his prerogatives, all the conservative
was
most angered
by the decision

decisions angered him;
in

the

comparatively

trivial

•

In the waters which

deem

strike
In

their

his

But the President's

methods, as Walter Lippmann long
observed, "are; not ;direct." The "vindictiveness"
which, according to Alsop, he felt in 1935, was not outward¬
ly revealed until 1937, when, with the aid of "pump-prim¬
ing" expenditures of Federal funds and the politically di¬
rected W.P.A., he had obtained his first re-election. He was
repeatedly challenegd by .opponents, during the 1936 cam¬
paign, concerning his attitude towards the Supreme Court,
but persistently and consistently he avioded the slightest
commitment. ; His self-restraint was* not so prolonged as
that:, 6f 3Sap61&^
determination to turn
tfgain^iAfcstria;^^heally whiclt had enabled him to bring the
Crimean, war to a face-saving close was concealed from
ago

1856 to 1859, even from members of his .Cabinet, but it

suf¬
February 5, 1937, in the
transmission to Congress of a brief message recommending
enactment of a bill providing for enlargement of the Court
that had been prepared in great secrecy by Homer S. Cummings, the substitute Attoreny General who had been forced
into the Cabinet at the last minute, under a designation de¬
clared to be temporary, by the sudden and unfortunate death
of the. man who .had been selected, Senator Thomas F.
Walsh, of Montana. The bill never had a chance.
It was
actually never considered in the House of Represenatives,
and in the great Judiciary Committee of the Senate it was
steadfastly opposed by Senators King, Van Nuys, Burke,
ficed.

The

surprise attack

•v.

came on

{Continued.on

page

122),.

-y.i,

American countries.

As late

South American countries

were

the

beginning of 1941, thef

hard put to it to

find dollar

exchange to buy what they needed in this country.

But

since then their Unfavorable balance of trade has been

deadly blow—first.

declaration

the

act

re¬

will

anf of

keep

from

maintaining intact two bulwarks
of defense:
First, our line of
supply of material to the enem¬
ies of Hitler, and second,
xne
freedom of our shipping on the
high seas.
No

what

matter

it takes, no
costs, we will
keep open the line of legitimate
what

matter

with

war

seek it

these

defensive

shooting

But neither do

now.

merchant

ships while they
legitimate business.

The

President's

new

Supply Priori¬
prob¬
swiftly has the

South

American

For

itself, that whereas less than
countries

year ago

were

trying hard to shut out
American products for the
simple reason that they lacked
the wherewithal to pay for them,
they are now eager to get
them, amply able to pay for them—but find that they are
not to be had, for reasons of defense
program priority.
/
Briefly, the course of north-south trade in the Western
Hemisphere since the war broke out has been as follows.
war

cut off South America's

sources

Europe for

manufactured necessities and she had to turn to

numerous

not

willing to pay for it by permit¬
ting him to attack our naval and

situation reversed

The

sought
Hitler.

want peace so much that we are

•on

lem of priorities for South America.

ours.-

have

commerce

major functions of the

ties Allocation Board will be to tackle the troublesome

violence,

intimidation

One of the

Presi¬

dent likewise said:

are

address

was

the United

States, with the result that South American purStates' goods after a year of war had
jumped 50 per cent. But "in the-meantime the South Ameri¬
cans had lost substantial
European markets for meat, grain,
and cotton, and they were not able to find a compensating
market in this country.
Out of this situation arose con¬
chases

United

originally scheduled for delivery siderable discussion as to whether South America's natural
Sept. 8, but with the death,
trade relations were not chiefly with Europe rather than
on
Sept. 7 of his mother, Mrs.
3ara Delano Roosevelt, the time with the United States.
'or delivery was deferred
until
This trade unbalance brought many answers—none
Sept. 11.
The White House an¬
nouncement on Sept# 6 regarding satisfactory.
The President obtained from Congress in

the

address

President's

read:

September 1940 authority to lend $500,000,000 to Latin
American countries through the
Export-Import Bank—a
Monday at 9 P. M.,
Eastern
standard
time, at the proposal he had previously made without success in the
White House and deliver a na¬ $3,860,000,000 spending-lending bill of the summer of 1938,*
tionwide broadcast on the radio. Efforts were increased to
spread the reciprocal trade trea¬
The
facilities
of
the
three
ties, but with little success.
Argentina, facing one of the
major broadcasting chains, NBC,
worst crisis in her history, imposed rigid foreign exchange
CBS; and Mutual, have been
made available. His address will control and import quotas.
;
President

The

air

will

the

•

translated

and

gauges
wave so

into

some

broadcast

lan-

short

that the speech will at¬

What turned the tide,

materials for defense.

however, was our need for raw
True, we cannot use Brazilian cotton

Argentine wheat, but these are virtually, the only regular
commodities of which our need has
not expanded to South America's capacity. South America's
trade fortunes have always gone up and down with the
demand for commodities.
Though less than ten years ago
we
put a 4-cent protective duty ("excise tax") on copper
to protect our domestic producers," today we cannot get
White
House
with
Democratic enough copper for our needs by ransacking all the mines of
and Republican leaders of Con¬ North and South America, and
barely enough for our de¬
a world coverage.
The address will be on impor¬

tain

tant one,

South American export

although the time con¬
sumed will be only 15 minutes.
I am not able to tell you what
the subject will be, but it will
be of major importance.
On Sept. II the President con¬
ferred early in the day at the

case. . . . The President saw in the decision the most gress to give them an advance
direct of all possible trespasses on his powers as Chief Executive; outline of his speech said advices
from
he was completely infuriated .-—"The 168 Days" pp. 13-14.
Washington
to
the
New
•

by-products of the

defense Amer¬

our

Humphries

One of the most remarkable current

defense program is the almost overnight reversal of the
balance of trade between the United States and the Latin

versed; it is now we who are doing more buying than sell-;
ican naval vessels and Ameri¬
ing. And as accompaniment of this change in its trade rela¬
can planes
will no longer wait tions with the United
States, South America is today
until
Axis submarines lurking
under the water, or Axis raid¬ experiencing one of the fastest booms on record—almost
ers
on
the surface of the sea, entirely a product of our defense
program.
for

necessary

Justice

As the President's kinsman and fellow-alumnus of Gro-

attacks

•„v'

Charles Evans

ton and Harvard relates the.

be used for

lerism.
.

inevitably
weaken
ability to repel Hit-

us,

waters of

Hughes, and Associate Justices Willis J. Van
Devanter, Louis Dembitz. Brandeis, James Clark McReyholds, George Sutherland, Harlan Fiske Stone (now by Mr.
Roosevelt's appointment, Chief Justice), Pierce Butler, Ben¬
jamin Nathan Cardozo, and Owen J. Roberts.

waters,

further

the

our

waters

suddenly, and completely without warning, by
President at the moment luxuriating in the early after¬

now

own

Raised

must

A continuation of

attacks in

Court of the United States.

seemingly triumphant re-election, those only su¬
perficially acquainted with the American character might
have expected, as the President unmistakably did expect,
an immediate bowing to the executive determination.
Such
acquiesence did not eventuate.
The American, people are
made of stronger and sterner stuff.
They fought for their
Judicial Department, which they recognized as the guar¬
antor of their liberties, and they won.
To the President,
this success of the popular side in a contest which he had
sought and supervised was humiliating, and provocative.
; '
It all began with towering indignation against the
Court, which during the whole of the President's incum¬
bency, up to the retirement of Justice Van Devanter, at the

when the

be defended.

years ago, in July, 1937,
than five months during

glow of

Ships

come

themselves

121

U. S. Latin American

(Continued from First Page)

ally unpopular expedient in his entire radical and changing
program and, in effect, serves notice that he will not be con¬
tended with less than complete reversal of the verdict then
rendered.
It is necessary, therefore, that the country should
be reminded of the historical essentials of that contest. Four

CHRONICLE

York

"Times"

fense program alone.
In the first half
States imported 470,000,000 pounds of

of 1941 the United

.wool against only
pounds in the same period of the previous
White House year.
We are short of lead and taking all that Mexico can
"would leave turn
out, erecting a special refinery to take care of it.
/
indicated

which

that Stephen Early,
secretary, had stated
no
unanswered questions." From
the
"Times" .^advices
we
also
quote.
Mr. Early, at a press confer¬
ence at 10:30 A. M., told report¬
ers that as the speech would be

"complete and all-covering" Mr.
Roosevelt had decided to cancel
his

regular
Friday
morning
conference.
/v'"
speech would be
followed by a message to Con¬
gress, Mr. Early said that he did
not know, and added:
"It will be written in English,
press

Asked if the

180,000,000

The

increase

America has had

American

purchases

South

from

three-fold purpose. First, the enormous
demands of the defense program and of enlivened civilian
a

consumption have to be met from any and all available
Second, we are still dangerously dependent on the
East Indies for several staples like tin, rubber and tungsten,
which can be produced in South America without the long
ocean haul or the danger of war with Japan.
And lastly we
are
buying to keep South America from being tempted to
sell them to the Axis powers.
As a result, we are now
sources.

making "total purchases." For example in May we made
an
agreement to purchase from Brazil all that country could
produce of eleven strategic or critical commodities, in ex¬
be made
at
9
P. M. Eastern
change for which Brazil agreed to sell them to nobody else.
standard time, it will be com¬
In the case of coffee and sugar, the extraordinary American
plete up to that hour. There is
demand has caused the quotas of imports into this country
very little likelihood that there
will be any developments be¬ to be raised—in the cause of sugar four times.

English that will not need trans¬
lations.
Because the speech will

its

tween
A.

delivery

and

tomorrow.

10:30

The South American countries benefit both from this

that all-out demand and from higher prices.
Some commodities,
hour for a conference with the particularly the metals, have not
appreciated, but sugar is
American
mission to Moscow.
up enough to double the Cuban margin of profit, and Ameri¬
Hence there will be no
press
can
takings of Cuban sugar have increased substantially.
conference tomorrow."
"The

President

has

set

The text of the President's ad- Coffee
(Continued on page 122)
:
". I /,

is up

sharply since the quota system
(Continued

on page

122)

was
//',

',vtl

established
■..,/

•

...V,

FINANCIAL, CHRONICLE;'

122

Thursday, September 11, 1941

icvernment

U. S-latin American Relations

Announces We will

(Continued from

121))}

page

^
Connally, McCarren, O'Mahoney, and Hatch, (all Democrats,
November, and it has been estimated that every one- among whom only Senator Hatch showed the least disposi¬
cent increase in the price of coffee means an annual in
tion to comprise) and
dress
by Senators Borah, Austin and Steiwfollows, according to the
crease
of $5,000,000 in Colombian trade revenues.;; Wool
Associated Press:
er, Republicans.;? Yet executive belligerency prolonged the
The Navy Department of the
mercury, and a number of other South American.; staples struggle and it was bitter and sanguinary, final and acknow-,
United States has reported to me
are
up sharply.
Since the OP A put a ceiling of 3J/2 cents ledged defeat for the President, not coming until anxiety and
that on the morning of Sept. 4
on
duty-paid sugar the South American countries have been devotion to a'1 pause that he did not/favor had brought/about
the
United
States
destroyer
.

Defend All

(Continued,

from

Ships

page

121 >

last

121)

page

Greer, proceeding in full day- fearing other ceilings on their products, and these Ameri¬ I the: lariientable death of Senator
Joseph Taylor Robinson, of;
light towards Iceland, had reach¬ can price ceilings are not at all
popular to the south of us Arkansis;Xthe attractive and able leader: of the Democrat^
ed a point southeast, of Green¬
but there have been enough increases in price already/ant of-.thet»Sejiato»*;'^ Thero/.svas ^notj
land,
She was carrying Ameri¬
a^single'.'jTieiTiber of • the vSuiw
can
mail
to Iceland.
She was enough increase in volume so that the. South Americans are preme- Court:who did not i feel outraged by the attack upon
.'flying the American flag. ' Her doing very well as it is.
tHe ihtegrity of/the;;judicial;system and some, of the oldest;
"identity as an American ship
.

unmistakable,

was

She

then

was

Now, however,

•

there- at¬

and

tacked.

by
a
submarine. Geradmits that it was a Ger;man submarine.
The submarine
deliberately fired a torpedo at
the Greer, followed lated by an¬
other torpedo attack.,' In spite
of
what
Hitler's
propaganda
bureau has invented, and in spite
of what any American obstruc¬
many

tionist

organization fnay prefer
believe, I tell you the blunt

fact that the
fired

first

destroyer
with

German

without

American

deliberate

warning, and

design

.her,

destroyer,

sink

Our

.»

the

....

time,

in waters which the govern¬

was

the

ment

declared

defense
of

submarine

this

upon

United
be

States

surrounding

—

American

had

waters

self-

outposts
in the

protection

Atlantic.

;

the

north,

outposts

established

»been

land.

Greenland,

.waters there

other

supplies to

they

bear

civilians,

material

which the

•

They bear food and

flags.

many

Ice¬

Labrador and
Through these
many ships or

Newfoundland.

•.

have

a^d
fov

war,

people of the United

States

are
spending billions of
dollars, and which, by Con<?res-

•

sional action, thev have declared

essential

their

defense

land.

own

United

The

for the

destrover.

States

Americans

comes

the ironic fact that the South

having.: difficulty in buying the Unitec
States goods they want, with the proceeds of this gooc
fortune.
By and large the whole situation may be summeo
up by saying that the United States has shifted from an
economy beset by surpluses to one beset by scarcities;"and;
by the osmosis of foreign , trade,-this condition has been
carried to South America.
Hence just as the problem of
surpluses is disappearing from* South America, the pToblem
of shortages, is appearing. A year ago Argentina was strictr,
ly limiting/the number bf automobileshercitizehs/bpulcr
import. ' Today, with adequate buying. power, the • Argen¬
tines are looking to our defense authorities to see that
they
get as large a share as possible of the limited number of
cars which will be available for
export in the coming twe^lye
months;
American exporters to South America who only
a
year ago had to find their way through labyrinths of
quotas and exchange restrictions now find * themselves in a
sellers' market in which the doors are wide open to what
they have to sell, but they cannot fill the demand.. There
are
shipping difficulties, export control difficulties, and
priority difficulties; the last two are the most serious apd
are no
longer set up by the South Americans hut by
United States authorities.
It is estimated, for example, that
95 per cent of United States' exports now have to have - a
license under the Export Control Act of June, 1940, and
the remainder will probably soon he brought under the Act
And then there is the greater and still growing trouble ipf
priorities.
are

|apd Tnostl honbred;^mong:h^to f ju^ices, (including ^
Srandeisy p^mitted:^/fHeir? :disgusLand opposition to
publicly'known.^
'
The

Judiciary

Committee's- majority

on
•'

attacked,

was

proceeding

mission.

legitimate

:■If the destroyer was

;

which

■■

Isweepingly^ pondeini^pth^^ entire;plan;' characterized ythe
measute^indigri^
sc^hih^t^ms^iHot/^i^
deadly dheunciatioij caii be given space here, but the follow¬
ing expressions are typical; y ;
• - 1
-

We- recommend the ? rejection' of this bill" as

needless, ' futile/

yy/Would^bjugatpdhe^-;courts;CtQy the^ willof Coh^ess arid the'
F^eslder^kiici'' iherepy^^;desifcr^-;theiTrittepehaenCe^'h^tii^yudiciaty^
the omy

certain- snieid of individual richis.*.

;

."It points the, way to. an eyaSiOrv pT the Constitution and estab¬
lishes the metnod / wnereby- the people
may be aepnved
01- their

'-to pass.yupon' amenoidehts of

funaam^

{^heyoouniry^ aelmoydedgecfr^by (itsypro^
poi^enis as a plan 10 xorce judicial dnteipredaaon of
a

Copsiuuuonj

uie

proposal -tnae,vioiales/every- sacrecf -tradidail ot Aiuerican aemoc-!

laty;'".';'i -'/y
»

v.v:; y-

r'y^'.-v-'y'--yh:':y;y"r3

••••

>y; "-.-'.ff

"It is

which should^ be

a measure1

•

.»-»

emphatically rejected thai

its paral.ei win never again
be*presented to- the
Qf tiie free people <of America."

free representatives
Judiciary Committee Reports, Sev->

onty^Firirt Congressr.

'■

l' "

some

y-,

•-r-

•-

•

-y y-.y-'v" y

.*■

maneuvering-: and: abortive efforts
y.(Conitnueu,

■

•«

--r.y,

After,

„

•

,n>

page-123)-

at face^

•

" ;l.u,

arid allocations wilThave toVbe transmitted down There also;
with limited supplies to be

parcelled out, the South Amerr
priorities make trouble can be. readily seen from ican; countries will have to cooperate With the. SPAB by
a list of South
America's major • import needs • from this workin^ydut /their: ownyschedules/^f what
;thpy;want^^^ &
country.
They include steel, machinery, chemicals," elec-* and; how; much. SPAB is now working out' tpe principled
trical equipment, engineering equipment, airplanes,' loco¬ ori;
which^pand yequipraent/willy bb's:al}^
motives, freight cars, trucks and road-building equipment. Latin: American: countries.; One rule^of thumb being tried
Everyone of these is. now either under priority or is scarce. rs tq take their 1937 .imports, from this country as a,rough
How

when

report,

visible to.
torpedo
was fired, then the attack was a
Fuel is now one of the]
major needs, and here the transpor¬ gaide^asktoywhat-theyiarerentitled/to;^^ Manyyotber
deliberate attempt by the Nazis
tation difficulty applies just as it does to the gasoline and Wril/dbsmpliea^
the ;fidblenb
to
sink r a
te
clearly
identified
American warship. On the other burning oil requirements, of j the United States'/^tlahtip tor the ,'esta blishmeht of militaly 'and an;, bases fo tne South.
.hand, if the submarine was be¬ seaboard;
ButJfi^/^thoritiesthere^ will have to have a. say in
neath the surface and, with the
the matter.-'
■
v.'y1'" "
y.y. :-yy
-aid of its listening devices, fired
It is essential for political, economic, and military rea
the submarine when the

factor^

^hq^yb^

;in the
the

direction of the sound

American

taking the trouble to learn

even

its

sons

without

destroyer

identity—as the official Ger¬
communique would indi¬

man

that South America

necessary

should 'not suffer;

froriF these shortages.

Itlie maCchirieryb c>f tiie bid

~thafT is

For .this reason/there

was

^stem

^pWlj^disn^ntl^y^

rif«ithefeiSide bf th^ jCaribbeariy
p^mtaming!b^
early this summer a special Export Clearance De¬
Wrqurita Hmjtk;bgainst;;the':Jn^prf^
partment in the Office of the Administrator of Export. Cori^
wants;all; itican, get.
/ The new quotas; it shoiild be remem4
trols.
As the problem grew, this was soon replaced by the
bered j arq qui teydif f^enf/in purpose; from the bid;:
they are:
Economic Defense Board, headed. Ey Vicb-Presidqnf; iWaFintended ^ par eel; buL.f^
aU tha t; can he^pbtained of la;
lace, to fit these hemisphere peeds into bun priorities sy^
go as fab as possible^
tern.
And now the functions of this Economic Defense beared cpmmpdi^^
set

cate—then the attack was even
more
outrageous.
"For it indi¬
a
policy of indiscriminate
"violence against any vessel sail¬
ing the seas—belligerent or non¬
belligerent.
•
} to^ltePp^Ihe eomim
Board have been absorbed into the new Supplies Priorities
A This was piracy—legally and
A-' tradeWeaty^ foirr instance, < is • likely- to be
-signed- between
morally.
It was' not" the first Allocation Board, which will: survey and. allocate the..re^
the United States and Argentina this year to cut tariffs on
-nor the last act of piracy which
spective wants of our armed services, our civil;an censumers/
both sides, ; after efforts in this direction have
the Nazi government has com¬
repeatedly
and our South American customers for the limited supply
mitted
against
the
American
teiledvimriec^
I
ip-Z'
of materials and machinery.
■
When, for instan:e; the South
flag in this
has
cates

th^plft^wereM^ighecL

{

Attack

war.

lowed

attack, v

•

y-•

'V A few months
can-flag
submarine

the

South- Atlantic,
ed

transport planes to rer lace., those;
of the German lines, SPAB will have to decide, whether

merchant

Robin Moor, was

stances

American countries want

Ameri¬
ship,
the
sunk by a Nazi
ago

middle

under

violating

international

;

boats

open

miles

lation

from

land,

hundreds

This, in fact, was

SPAB.

This

this

in direct vio¬

internationalagree¬

country's

economic; system

it must also be obvious that

only one such authority can
by the government now make the allocations for, the
hemisphere.
In the be¬
of1 Germany.
No
apology, no
.allegation of mistake, no offer ginning of the present situation, American exporters, had to
•of
renarations
has
come
from find their own way through the red tape and the, export
Jhe Nazi government.
;•* '
authorities had neither; policy nor machinery to meet the
A In July, 1941. an American new situation.
The first try at it; the export clearance
battleship
in
North
American
division of the Export Control administration,-was inadewaters was followed by a sub¬
marine which for a long time auate;
so was
the 1 subsequent Economic Defense/Board;
sought to maneuver itself into there was
nothing to do but to put the matter in the hands
"a position of attack.
The peri¬ of the
Supply Priorities Allocation Board. ■;/
scope
of
the
submarine
was
,

ments signed

clearly

seen.

British

And just as the United States'

condition of prosAmerican submarines were with¬
in
hp^^s "elf miles nf this perity-and-bottlenecks has been transmitted through' trade
'ih; J

(Continued on> page-123)'

seemed

insuperable;;;' Today's situation,

the

crth^hand^iriakes-it ^Ssehti^
trying not
id Pj^ratpvaS ;a hPfn
eepppmie; dnit-would be abrios t
.

principle of humanity. The pas¬
and the crew were forced
into

one of the reasons for the-setting jip:
hemisphere problem duplicates - the fast insuperable..;
; y
-y:'.Jy''
growing domestic problem of priorities, and just as. it was
Z
A^:majpb;by«^roduc^ of ythriinew cqnddHohs^
obvious that only one coordinating authority could properly
Latin American courifeies are
/cooperating with the AmbrL4make the allocations for

every

sengers

planes are to be provided at "the expense of the Army
difficulties
Corps or the domestic American air transport industry

Air

circum¬

and

y**

an'eccmomic urn
ofThe\yi^hole^Western-Hemisphere;yyThis was hoped for and

these

the

long-establish¬
law

'.Zp
.TJ^Jtrend nowiisyall iowarS: cheating

fol¬

channels to South

America;

new

the new

can

■.

military-economic

with

-program

greater and

greater

Willingtie&,^
suspected of/Axis. >leahings^ was hot takeii particularly' well
theynatural reason, that it', necessarily disrupted: a good
many - going business relations;J But the Latin ' American
governments appear glad enough to make exclusive
selling
agreements with • usf they have:, cooperated widely in the
for

elimination of German air

lines.in South
America; and, if
only to relieve; the shortage of north and south
shipping
facilitiesffheyy have-/ taken/Loveri/ some 80 Axis vessels ol

400,000 tons which had been lying idle in their ports.

•

yi/yProbably never,-in the history of inter-American relaioris; has there been such .a,/swift, complete,, and
kaleido- l
methods of quotas scopic change as has occurred in-1941.<„ iffZZujS,

Volume 154

"r*«

}

FINANCIAL CHRONICLE

Ntirfiber-3979

wagHalle Kleeman/"Gracious Lady, The Life of Sara

6c vernmentAilacks;

■V'V

123

DHtfn&dfcotosteveU/t

pp.

204-5. 1

kmmm We Will

V»

Defend All Ships

-great pity that, as President, he forgot or trans¬
saving; the President surrendered abjectly and uncondition- gressed the faith that he held as a youth. Now, he holds
;
olly^ Dut not vwith(rat~impenatrable .and ^permanent ^indigna- that partial repudiation of public and private debts was an
; tion. - "Go ahead and write iyour 7 own ticket;'1 % said Vice- essential of recovery and that breaking its solemnly plighted
faith was; in 1933, a controlling factor affecting the "fate"
,

(Continued from page 122)

of this

of the

sake

"The

Party, oe reasonable.

168

Daysj/p

pp.

277-294;
'

Tentative

intended to

suspend the contest in the
Senate, and transfer • it* to the other /branch of Congress;
were indeed made;
They were speedily, abandoned when
Hon. Hatton W. Sumners, the .very able and patriotic £haii|;
*

moves

riian^x^herJudiciary jCommitiee ■ in the House bf Represehitatives, demanded the floor arid spoke- thisnaming:---' C'A'W
,

Nation.

them

six

Navy ship

House

for

owned

flag

;

:What

followed 7;is v

Sessa.

she had been first tor¬
pedoed
without
warning,
and
.then
shelled,
near
Greenland,
Aug.

while

carrying civilian

been

supplies

It is feared that the

Iceland.

other members of her

have

crew

view

drowned.

established

the

German
submarines in this vicinity, there'
be

can

reasonable

•»

doubt

identity of the attacker.
Five days ago another United
States merchant ship, the Steel

;;"The decision was unanimous, for the grandiose, unworkable

Seafarer,

history.
Justice Van Devanter's .andVdistinctlybppr'essive ^ law appealed no more to liberals than to
place was filled by Senator. Hugo L.* Black, although the McReyriolds. ; ; The decision was popular ; vi.^thd millions Who
5oad. had some disagreeable experiencej of. rising prices, irritating
; ^emoluments" of; fther positib^-rhad been; inereased, auring code
"regulations, or monopoly newly powerful under N. R. A. heart¬
^h^ terni in;Congress4hat he !was-then serving AncUconse^ ily- approved it. -/Indeed, the decision was the President's best piece
of luck .during his first term, for it spared him the uncomfortable
quently,. his .appointment' was prohibited by. tfte Constitur,
tion.
In the course of time,; the Chief Justice and five.of necessity; of lying in the bed he made."—"The 168 Days," p. 7.

presence

the

Mr. Alsop and his associate author said:—A ; :

recovery Act,

picked

American-

ship operating under the
our
sister republic of

Panama—the

this House when we are trying to mised that his mind will revert to what he wrote in 1937.
the.Nati<|>nr4f they bring that bill into; this Bbferf ing * to - the condemnatibn of the; National Industrial
1 do not believe tney will have enough

consideration,
hiae left" on it to bother about." ^ "The 16'8 Days/' pp. 264-5. f

patrol

three survivors of

"If they bring that bill into

preserve, the solidarity of

spot at the time, so the nation¬
ality of the submarine is clear.
Five days ago a United States

These were divided-court opinions, some
three, but condemnation and criticism is
equally violent in three cases that were unanimously de¬
cided: the Frazier-Lemke case (295 U. S., 555), 'the Hum¬
phries case (295 U, S. 602), and the National Industrial
Recovery case 272 Uf/S./52,\ 135): In these cases Justices
Brandeis, Stone, and Cardozo, liberals against none of whom
any -sane- liberal ever uttered a word; were unhesitatingly
with the majority of the Court.
When Cousin Alsop reads
the animadversions upon the N. R. A.' decision, it is sur¬
of

sunk

was

Ger¬

aircraft in the Red

man

220

Sea

bound

tacked

that

discredited-" effort

one,

prominent; as- incumbents of executive J offices another effort to make the Supreme Court, if it should be
by* hisown designation when they were named, has not
permitted, to survive, merely a time-servmg instrument . of
appeS&ed - &S;e^r-smoI^
such control was
any President temporarily in office.
Indeed, the sole con¬
nof accorded^in' coMbrmify : with* his own plan. V This is
demonstrated by the leading! article in the current- issue sequence of his .present vituperative v attack upon the. Su¬

^fet^ated^Septembef^A&WplI Golliei-'s, publi^ed dvef the

preme

at¬

American

flag

clearly
identifiable.
ships were war-

these

fifth

the

case

the

face

all

our

feet
of

Americans

are keeping
ground.
Our

the

democratic

thought
to fight

compelled
nation

by.

piratical
terical

out¬

feeling
other

some

single

any

of our
not becoming hys¬

are

-on

losing

has

reason

attack

ships. We

type

civilization

the

grown

■>

this,

one

sense

our

proportion.
Therefore, what I
am thinking and saying does not
relate to any isolated episode. v
I: Instead, i we v Americans
are

taking a long-range point of view
in regard t to certain fundament
tals

and

land

and

considered
of

nation

isolated

part

unworthy

exaggerate

incident

must

whole—as

pattern.

would

great
-

which

sea

world

series of events

a
an

become

inflamed by some one act of vio¬

companymg its publication, that;'Keprouuc tion
in part is Tbrbiddeii; *withbut^ymtten1per

lence.// But

in whole or

(Continued

...v,

from

cusable

First Page)

everything that he has undertaken. : He has suc¬
theiess; we- note thatemdst bf theargiiment Has already been
hiade public property by dissemination to. and 'through- the ceeded in having them, or the most of them, leave, practically
all matters that have,to do with^our relations with foreign
daily press; and it is at' leaist permissible for a still unceh"ibredperiodical; Mftbfe4l&^^tb?the/Bi^enfe^o^| entries to his judgment because, so we believe, he Was
able td; persuade; them that he woiRd:keep;them out^ of war>
';te 'foead/hahd'?:
but, he has utterly failed to arouse what is known as the
"program '" of alleged -"progre&s?" is a lauier singular ana
war spirit; among the rank and file.
It may be, although
probciuly unprecedented"? instanceyof a vvituperative attack
tne nead pi orie

cb4)rdm&tod^

anotner co-ordinate branch..

^.jy ':)(

;AC;;^hb/":afticle is* a Jong!^ne^inS^arcdy
j(nter^t4b4hat Respite
■

that he will presently prove equal
to tneAask of converting the majority of the people to what
v. KR
isf eWdently his; way of thinking about our participation in
sustained theAhoOting, but it is plain as a pikestaff That he has not as
yet- even "approached the point of being able to command
that virtually unanimous support without which no prudent
is liead^pL^ gpvernmeiit would of his own choice enter any
it appears very .doubtful,

4ne;oniy jjqurtspecifically qprjo^
revived, there must be some reiutahon. v Referring to the
Ufipt-uii" case (293 U; Ss 368), the President motes thatti
was the first in which the; invalidity ofian: Act? or Congress

war

the

one

now

raging in' most sections of the

Valley Admmistrationf the complaint is - tnat the 'Justices,

UnitedjStates is

it fears the fire.

now

in the position of the burned child;

It had almost complete

faith in Woodrow

go- beyohd Wilson,. in: his forthrightness, in his .candor, and in his
judgment. / Subsequent events have unfortunately proved
And yet the President is a lawyer, or at any rate a.member that;faith not entirely, well placed, i Subsequent events, so
Of the bar.
Bitter complaint is made; also, against 'the deci¬ far as the rank and tile are concerned, and Lansing's war
sions; on which the Govefnmen$> has^^ bad ^tmuou^^ to memoirs, so far as the more serious students of public affairs
are concerned, have long ago established that fact. . It has
rely, in the "Gold; Claused cases; Although I these decisions*
become all too clear in the intervening years that "making
diaho t deny ,Its intended effeqL^
bben
the world safe for democracy" had little or nothing to do
done.
It is somewhat surprising, in xms'Connection, to read
with the other World War save in the minds of American
a
passionate Presidential defense of his 1933 degradation ot
the dollar, which some may have supposed that it was de¬ idealists, and many of them have learned better long ere
this. ; Moreover,' the last time we had from the first made
sirable to have forgotten. Many years ago, during an earlier
a showing at least of demanding the rights of neutrals,-the
attack upon the integrity of - American currency-; a' Groton
freedom of the seas, and other doctrines familiar and dear
school-boy wrote:—' v**\'R-;?
to American hearts, and we ourselves took pains, relatively
.

,/'Free coinage of .silver .meariS: therefore a .depreciated 40113^.^4

is the.working-man: v.
depreciated
prices rise much;fasteft thair .wagesvit/d'.i'In' Jaetv-'the^who]e
contention of the ^Siiverites may be reduced to an attempt to-lower
currency

inex¬

such

which makes it clear that the in¬

these acts of international law¬

lessness
a

are

manifestation

design which has

been

made

clear to the American people for
a long time.
; It is the Nazi de¬
sign to abolish the freedom" of
,

the seas and to acquire absolute
control
and
domination of the

for themselves.

seas

:; For with control of the seas iri
their own hands, the way can be-»
come clear for their next
step-^»
domination
and

the

the United

speaking at least, to respect the ordinary laws of neutrality.
This time w.Q have not done any. of these things—that is,
(Continued on p^e 124) J ".VVV^r'0.;.
-V'.V-

Western

States

Hemisphere'by

Under Nazi control of the

seas,

althpiigh deciding' for the! Government,4^

The greatest loser Of; all

minimize

cident ts/ not isolated, but part
of a general plan. ■.:/";: I
j
The
important, truth is that

force.

vrv

As to.another :case, Ashwander v. Tennessee

would

; "Incidents/' f:
•was-declairedto^^ ;resiilt! |r^ 5 ite 5im^
oi
power and complains, with singular ignorame bi
; long ;.;s;lvltrmay be that a few more "incidents" such as those
of recent days will serve to arouse the American people to
;iirie of lliuminating decisions /"beginning with the case oi
a
lighting pitch" roughly comparable to that which was
lTfiz
;dec?ded;;wMe?;4ohh4viai^i^L
Justice; that "the limitations of permissible "delegation were -evident in l9l7; but it is most gravely to be doubted; The
not laid down.

folly

incidents in the face of evidence

almost

; py

sunk

vessel

ama.

Court, could it result in legislation consistent with

signature.^Ffanklin Delano Roosevelt," and entitled ."The As-tenor, would be the abolition of that Court, in its func¬
Fight Goes Gn." Discussion of this amazing though belated tion as an'interpreter of the Constitution.
counter blast would. have beeri simplified 11, in his anxiety
to secure the closing word;< thq President had notrpersonahyj

port.

clearly carried the flag of Pan¬

and

four of, them

the

towards

meddlesome and vicious as the old

were

was

ships of the American; Navy. In

the

flew

Two

regimentation
President's1'indignation has not been interrupted
and:,artificially abetted monopoly or to renew his attack
; nor has it diminished with the lapse of time.
It was said
Yet now, in the Collier's
of tbd Boiifbobs> long *the'^cddb^roigiiing family^iri Europe** upon the Judicial Department.
article, he has strongly asserted a position, the only logical
'that they ''never learned
anything* anci never forget anything." Control of the Supreme Court, through his own consequence of which, could he prevail, would be a pew
appointees; all former associates of his Administration and N.- R. A.,

She

Suez.

Egyptian

and

Not once during the 1936 campaign did President
.remaining Associate • Justices retired br.diedm .".office*
and now the Court, after the confirmation and qualification Roosevelt dare to tell the voters
that; if re-elected, he would
of; former Attorney-General Jackson and Senator Byrne,
attempt to revive N. R. A., in any form or disguise. Neither
will include seven appointees of Mr. Roosevelt, among whom did
he; during 1940, venture to advise the voters that, if
two or three are actually Competent lawyers.
accorded a third term of office," he would either seek to
v
resurrect,

for

Four of the vessels sunk

the

The

south

miles

merchant

United

States

ship
of

any

the

other

American republic would be free
to carry on any peaceful com¬
merce,

except

cending

grace

tyrannical

Ocean,
and

which

should

would

then
to

menace

United

become

the

United

the

States,

cities

States.

commerce

States,

inland

the- condes¬

has
been,
and
always be, a free
friendly; highway for us;

which

the

of this foreign and
power. ' The Atlantic

and
the

of;

deadly
of

coasts

the

United

The Hitler government, in de¬

fiance of the laws of the
of the recognized

rights

sea

and

all

other

nations, has presumed to
declare, on paper, > that great
areas

ing

the

seas—even

includ¬

vast expanse lying in the
Western Hemisphere—are to be
a

closed, and that
ter

them

for

ships may

en¬

purpose,

ex-1

any

cept at peril of being sunk. Ac-*
tually, they are sinking ships at
will

and

widely

without

separated

(Continued

^warning

7 areas S both
page

124)-*

124

FINANCIAL

■■& As Was Inevitable

CHRONICLE

Thursday, September 11, 1941
have

would

Announces We Will

the

physical

and

manpower

resources

possibility, v The danger
ohiyt from* a
military
enemy
but from
an
enemy of all law, alHiberty,: all
morality, all religion.
;
a

••'■ (Continued from, page 123)

• y

•..

;.y :

■

;

quits recently when ii appeared convenient to the

until

build

;

^ Defend All Ships

a Continued

President

again to raise some of these time honored doc¬
trines, but withal without mention of the obligations of
neutrality. ' y
y'- -y,'fy?$-r'y'
y'y y •"''V'.^-

■

We have not

made

pretense of demanding that
the • "democracies" respect our rights as a neutral.
Even
before the present war started we had gone on record as
being willing to forego many such rights, although techni¬
cally reserving the privilege of demanding them if we chose.
Almost from the beginning we have been neutral in name
only, if even in that degree. Our responsible public officials,
including particularly the President himself, have repeat¬
edly excoriated other nations and other governments with
which we were at least technically at peace.
We have been
guilty of almost endless international intrigue for the pur¬
pose of aiding one group of belligerents at the expense of
the other, and we have made a regular practice of boasting
of the aid we were furnishing or would shortly furnish one
group to the detriment of the other.
Indeed it may be said
that we have in everything but name long ago entered the
struggle against Germany and her allies. The American peo¬
ple dislike Hitler, the strutting Mussolini and all they repre¬
sent most cordially. For this dislike they have the strongest
of

even

reasons.

"At the

time, however, they have an innate

same

sense

of fair

play, and in such matters as these at least a certain
degree of realism in their make-up. It is not reasonable to
expect them, one and all, in existing circumstances to be¬
come infuriated over German
transgressions at Sea as they
did in 1916 and 1917."
with

Those who would stir such emotions

arguments harking back to that earlier era have

essentially weak

and they must be aware of the fact.
The cold truth of the matter is, in any event, that the Ameri¬
case,

people for the most part, rightly

can

wrongly, have long

largely abandoned the notion that the traditional doc-^

ago

tnnes

of'freedom of the

warfare

scale such

seas

under conditions of modern

that

now

obtaining

are

enforce¬

able

or worth fighting for in
many such cases as now seem
arising and. threatening to arise. If such were not the case
the so-called neutrality laws would never have reached the
Statute books, and they would not today be so difficult to
expunge from those books.

There

1917

are

well remembered

conspicuously lacking at the present moment, and, in our
belief, so likely to remain largely lacking barpng incidents
more dramatic and far more
inilaming than any so far occuring.y We have repeatedly referred to them in these columns,
and there is no need to repeat them here.
The question
at present before us concerns our course now that we are
apparently about to be brought face to face with the inevitaoie and
disagreeable results of our own acts. Short of a
formal declaration of war which appears to be out-moded
these days, there, is little likelihood that the American people,
or, for that matter, Congress will have a great deal to say in
any formal way about what is to be done, so largely have
the

Constitution

ments

and

innumerable

recent

statutory enact¬
placed the destiny of the nation in the hands of the

Chief j Executive.

Not even so headstrong an individual as
Roosevelt, however,'can escape the pressure of
public opinion when well crystallized and: even half articu¬
President

late.

•

123)

page

far

and

far-flung

outside

pretended

these

zones.

is but

oceans

It is time for all Americans of

stop being
by the romantic notion
can go on liv¬

His

intrigues, his plots, his
machinations,
his
sabotage
in
this

World

New

are

all

known

••to the government of the United

States.

Conspiracy has followed
conspiracy.
•
Vy;
Last year a plot to seize the

government

Uruguay

was

smashed by the prompt action of
that country,
which was sup¬

ported in full by her American
neighbors.
A like plot was then
hatching in Argentina, and that
government
has carefully and

wisely blocked it at

point
More recently an endeavor was
every

made to subvert the
of

Bolivia.

Within

government

the

last

few

Weeks the

discovery was made of
secret air landing fields in Co¬
lombia, within easy range of the
Panama

Canal.

ply instances.

could

multi¬

To be ultimately successful in
world

mastery, Hitler knows that
get control of the seas.

he must

He must first

destroy the bridge
ships which we are building

the

across

Nazi-dominated
Generation

Atlantic,

over

which

plements of
him

and

end./ He

patrol

war

all

his

to help destroy
works
in the

must

sea

• wipe
out our
and in the air. He

must silence the British

ing

again to people who like to think
of the United States

Navy as an
protection, that this
can
be true only if the British
Navy survives.
That is simple
invincible

arithemetic.

one.

that

means

shipbuilding

facili¬

which
the
Axis
powers
would then possess in all of Eu¬

land

all

•

Our
time

its

only greater,
times greater.
States

into

resources

threw

such

situation, seeking to double and
even

redouble

the

size

Navy, the Axis
trol

powers,
rest of
the

the

vvvv);;fV:',:-

has

been :

(Continued from

applied

While the editorial

immemorial—and

still

ap¬

ations

10%

the

other;

Pacific

oceans

fare

against
policy.
It is

constitutes

'■

His

■

intention

clear.

The

have
it.

and

has

siders

"defensive
was

waters".
Apparently this essential in¬
purposely withheld—the official explanation

is that the boundaries will
in the future.

was

depend

nonetheless

upon Germany's
notice that

about to begin (indeed some shooting seems

begun) by
many,

of the fact that in order to avoid it Ger¬
at the very least;-Would apparently be obliged to
reason

forces from
has

actions

shooting was
to have actually,

designated

areas

sea

which that
country
warfare in which she has
areas

bills.
their concessions,'■

making

today;

made

When

debate

final * test
half hours y

yesterday,, a chorus of
resounded through the

"ayes"

;

V;-:

the

after six and

came

•'

chamber. 1 : v •
:y/*-/•;'yy yv
whisperings of apLa : Follette -(Prog- y
that Hitler is not inter¬ y • Senator
Wis.) ■ who. had fought toothested
iri- the
Western
Hemi¬
and-nail
against many
provisphere,
no
soporific
lullabies
No

tender

peasers

that

wide

from

ocean

him—can.

protects

sions of the bill then demanded

the roll

have;-any
effect on the hard-headed, farsighted and realistic American
people.,
«
*,
long

•'

call,;yy':::';;;^;y.^:y;-.;y::;;:::-

addition

for

voted

who

the

who-

bill,. 14 Senators

absent
were y ahry;
in favor of passage.

were

nouriced

episodes, be¬

the

Because of these

These included Senators' Davis;
of
the
movements
and
operations of German warships, 5: (Republican, Pa.)-and Smathers "
and
because of
the clear, re¬ I (Democrat, N. J.)./..
;•</
Besides lowering present expeated proof : that the present
emptions, the Senate bill would
government of Germany has no
raise :: individual .and
corpor¬
respect for treaties or for inter¬
ation income tax rates all along
national law, that it has no de¬
: the
cent
attitude
line.. : Individual / income
toward
neutral
levies^; (includihg
nations
or
human life
we
surtaxes)
would start at 10% instead of
Americans are now face to face,
the ■ present 4%.f: -yy -■ y
not with
abstract theories, but
At the instance of Administra- '
with cruel, relentless facts.
cause

—

This attack,
localized

the Greer

our

con¬

world,

two

based

murder.

And

step

that

sure

United

States

belligerent

Dow¬

California,
Sept.

it later as; a separate bill/ >
From
its ' Washington
bureau

sys¬

Sept. 9 the New York "Journal

y ■:

even

said to have agreed on

5 to with hold the $30-a-month ;
pension amendment- if the leader¬
ship would promise to consider

toward

waiting

are

the

was

force, terror and

y'r.;y// ■

Nazis

whether

This

Senator

(Democrat)

ney
was

struggle

a
-

permanent world

tion Senate forces

was

operation
This

nations.

determined

creating

the

episode

mere

between

military

Commerce"

now

to say

see

by silence give them the green
light to go ahead on this path

in part;

had

the following

yy.':'

-.y

Acceptance: by the House of
Byrd rider to' the $3,583,-

will

the
-

900,000

bill td establish •

tax

special

committee; to seek cuts.
The Nazi danger to our West¬ / in y Government :; expenditures >
ern World has long ceased to be •> was-seen
probable tonight on
of

destruction. *'

he sounds, that

some

of his

initial

and

differences
;

meetings

House

committee

out

House

bring

contacted,»today

;

~
y

move

squarely into"
the tax picture, with Chairman
Doughton (Dem., N. C.) voicing

economy

; '.

his opinion that, "it's S crime to

;

waste

;•
?

y.:y
con¬

expressed support for the
to

the

measure.

of -the

group

confer-

iron

in; the

Members

ference

.during

any v. money

this v "

-Thet"Byrd proposal aims at
reducing" expenditures
of
the

Government outside of the needs
for

defense

000,000,000
fiscal year

/ committee
of

Senate

ations

encouraging if the Rubicon is not definitely crossed,
an opportunity for the American people to make
their wants and wishes defnitely and imperiously' known.
In arriving at their own conclusions concerning the
course we should
now pursue,
it would be well for the
people of this country not to permit themselves to become
involved in questions of international law—which has been

Senate

ence

leaving

eve

the

formation

House * tax oh

which had called for final action

the

where did it make known (and nowhere since it has been
made known) precisely what waters the Administration con¬

increase from

in the

won
: Senate
approval
day ahead of their schedule,'

one

American people can
illusions about

,/K'y/y/*■

leaders

;

further

taxes

sales, billboards and;

local telephone

humanity.

been

10%

levies," eli¬

House

clear that Hitler has

international law

profits

"of

time

5 to

his

campaign to control
the seas v by ruthless force and
by wiping out every vestige of

soft drinks and
•

includ¬
corpor¬

of a special
corporations not
sufficient
income * to

excess

radio

aggression—
historic American

that

119)

page

mination

de¬

be taken in a Pickwickian sense, but if
paragraphs above were waiting for
press, the President delivered to the people of this so he, by making such utterances, has made a. bad situation
country (and of other countries) a radio address, which, worse. If one is to interpret what the President now
says in
according to one of his secretaries, was to make the position light of his former tactics, it is conceivable at least that
of this country utterly clear: -A/ i
what he really does will
{ *;
depend in substantial measure
::
It did nothing of the sort, of
course, but it has placed upon the public reaction to what he has said.
This, of course,
both Germany and the people of this
country upon notice leaves, the situation in an unsatisfactory state in one sense,
that shooting is about to begin.
The address left our posi¬ but somewhat encouraging in another. It is unsatisfactory
tion in the dark at important
points, for the, reason that no¬ in that it contains so many elements of uncertainty; it may
are

own

elimination
tax

pay

war¬

act

now

begun

all

earning

submarine

1941

fiance—an

well.

Unrestricted

and

statements

our

''// Other Senate changes
ed higher surtaxes for

from

the

intend to; be
;

attacked

now

goes To Conference

our
policy;
time again, in

people wish done in light regularly been operating for a good while past. To be cer¬
of the existing situation? What should it want done?" These tain of
avoiding clashes she might well have to withdraw in
are
questions which should be, and doubtless are, searching very large measure from the "battle of the Atlantic". These
the souls of all thoughtful and patriotic citizens
throughout things no one expects her to do. <
.• •//;;v
the length and breadth of the land.:
They are queries which y/yThe President has evidently left himself wide leeway
none of us can
in these matters, and it is
longer afford to ignore or neglect.,/ \ ;;
possible that he does not really
,

and

New Tax Measure Now

What then does the American

children

our

but

tem

throw

You have

plies—not merely to the Atlantic

greater than all the shipbiulding
facilities and potentialities of all

all

children's children into your
form
of terrorism and slavery.

com¬
"

history.
policy has

our

the

others.

That

for

unsafe

war,

merce

one

Even if the United

con¬

permanent

tances from the actual theater of

rope, in the British Isles, and in
the Far East would be much

three

and

our

nation

has the right to make the broad
of the world, at great dis¬

nation,
ties

quest

oceans

in the north Atlantic.

two

world

seek

tal

Americas—not

seekers

seas.
That policy is a very sim¬
ple one—but a basic, fundamen¬

•For, if the world outside the

but

these

world
domination by the sword—"You

Americas falls under Axis domi¬

the

strained

time

I must see the
necessity of say¬
inhuman,
unre¬

•

Navy.

It must be explained again and

the

generation,

come

now

America has battled for the gen¬
eral policy of the freedom of the

shall continue to roll the im¬

has

when you and
cold inexorable

world.

after

proved time and

oceans.

There

that the Americas

coun¬

the Nazi plots now
being carried on throughout the
Western Hemisphere — all de¬
signed
toward
the
same
end.
For Hitler's advance guards —
not only his avowed agents but
also his dupes among us—have
sought to make ready for him
footholds and bridgeheads in the
New World, to be used as soon
as
he has gained control - of the
terpart

over.

ing happily and peacefully in

This Nazi attempt to seize con¬
trol of the

times

of all the Americas to

deluded

within

many other reasons

why the war spirit of
by the older generations is so

from

several

mere

is"-"here 1ri6W—1noti"

out-;

by upward of $1,4- f >
below
the
current

budget estimates. The
would
and

and

y Secretary; of
rector of the

composed

House appropri¬

taxing

committees,
Treasury and" Di-

Budget.

•

>* ;

The

committee

directed

•

;

>
to

■

honored for

in the breach than in the observance

all sides—and center attention upon our own

•

V-'-.v:?

study of

Government with

the

"all
-Federal

view

commending elimination
duction of all such

♦deemed

to
or

re-,
re¬

expenditures-

non-essential."

The

group would report to the '
President ; and
Congress V- as

interests in this

-y: kv'-

complete
expenditures
of

tangled affair without becoming emotionally, unbalanced! at!
this critical time.

make

•

quickly as its studies
"plete.

were

'com-'
->...

Volume

154

Number 3979

You shall go no further."
practices of diplomacy

safety.

Pressed Steel Car

Normal

sible

The

strike

McKees

the

pean

sink Rock, Penna., plant' of the Press¬
citizens. ed' Steel Car Co., was called off
peaceful nation after an- Sept. 6 at the request of the Na¬
who

outlaws

One

disaster

has' met

other

refused

each

look

down

because tional Mediation Board, the strike
the Nazi had closed the plant on Aug. 29.

European Stock Markets

■

•

Hitler, and second, the freedom
6ur "shipping on the high

when the S.. W. 0. C. contended
.

; of

""'seas.
'

what it takes, no
what- it costs, we will

matter

keep open the line of legitimate
commerce*" in
these '-defensive
waters. '
"

have

shooting

sought no

with Hitler. We do not seek

war

that

obtained

had

of members

vances

majority and

neither

But

now.

•

:
>

•

peace

that

assume

the

•

tect them from-surface raiders.
"

This situation is not
second

German

••

not deeply
we

European privateers and Euro¬
pean ships of war which were
infesting
the
Caribbean
and
South American waters,

invective.

But

when

you

see

poised

; snake

strike,

wait

•

not

•

before

until

you

raiders

has

They are a menace to the free pathways of the
high seas. They are a challenge
to oUr sovereignty. They hammer at our most precious fights
when they attack ships of the
American flag—symbols of our
independence, our freedom, our
life.

very

It
that

cleSjr to. all

the.

time

has

Americans
when

Amefij&s themselves

;

now

ation

;
'•

defended.

must

continu-

attacks

our

own

waters,

or. in
waters
which
be used for further and

could

greater

attacks on us, will in¬
evitably weaken American abil¬
ity to repel Hitlerism.
Do not let us split hairs. Let
;

ask-

not

the

ourselves

defend

whether

should

Americans

themselves

begin

after

to
the

The time for active defense is

split hairs.

this

Let

succeeds

getting home,

tion

ern

preven¬

attack.

for

submarines

tack in

raiders

at¬

distant waters,

they can
attack equally well within sight

our

shores.

own

presence

Their

waters

any

very

which

American deems vital to its de¬

ah attack; v

constitutes

fense

In the waters which
necessary

erican

:■

for

lurking
the sea,

and? Amno

longer

submarines

the

under

raiders

—first.

will
Axis

until

defense, Am-

vessels

planes

wait

Axis

our

naval

erican

•

deem

water,
surface

the

or
of

strike their deadly blow
■;;r:• V

■s

the

Ocean

Atlantic

—

falls

policy

seas

—

now.

freedom

That means,

ships
^

any

That

the

day

same

curred.

German

Italian air¬

had done the sinking, and
ominous repercussions
are
con¬

sidered

inevitable.

The

Red

specifically declared

was

into

area

which

Sea
open

American

and Italians held

tion

that

less direct

to their conten¬

was

war

interest

area.

the United

around

this

oc¬

The terse statement said

Prime

the

Canada's

Minister, W. L. Mackenzie

tons,

some 300
Iceland. This

southwest

Commission

was on

the

immediately

counter-attacked

furnished.

occurred,
point charted

utilized

and

ordinary • shipping services.
This
sinking occurred while the ship

proceeding on a voyage to
with foodstuffs,
lumber
general cargo.
Here again

was

with the British.

1,700

Sessa,

miles

Iceland

Emphasizing
the steady ap¬
ing torpedeos which missed their
of the United States to¬ mark.
The
Greer

West¬ of technical neutrality.

ship

Iceland with mail, when
and
submarine attacked her by fir¬

way

Greer Incident

States, but also of some impor¬
tance,
was
the .torpedoing, re¬
ported Tuesday by the State De¬
partment, of the Panamanian flag

time

attack late

which it

merely that the Greer

clear in Iceland, along

the

and

call

times

with

that

for

clear

was

considered

submarine
the

results

••

that

are

Pacific

;

Tension

Region.
Far

the

relieved

somewhat
American

German

responsible, and
unpredictable.

was

East

this

was

week,

moved without

tankers

molestation into

the Russian port

with

Vladivostok:

plies of aviation
clear

Tokio
the

final

that

respecting

Pacific

sup^

The

decisions

war

remain

disclosed.

large

gasoline, but
peace

first

taken

three

tankers

carrying gasoline for the
was
reported at Vladi¬
vostok on Sept.
4, and the re¬
maining two ships arrived safely
in the next four days.
This was
a
highly important gain in the
diplomatic efforts to prevent the
Japanese from interfering with
Russians

American
to

Russia.

British supply lines
conferences

Protracted

noted

were

Tokio

between

United States Ambassador

Grew

officials

and

Joseph
of

the

Berlin
Japanese Foreign Office. The pur¬
said, at a
at Lat.
62
degrees 31 minutes N. and port of such discussions remains
Long. 27 degrees 6 minutes W., undisclosed, however, and no in¬
formation
is being made avail¬
which
would
place
tne
attack
about
200
miles
southwest
of able ih Washington regarding the
Reykjavik, capital of Iceland. A many difficult problems entailed
in tne effort to halt Japanese ag¬
German
submarine
fired
tor¬
Contrasting
with the
pedoes, the German statement ad¬ gression.
mitted, but only after alleged at¬ signs of improvement in relations
are indications that Japan is pre¬
tacks with depth bombs by the
Greer.
The incident began soon paring for further outbreaks of

inner

comes

against this
their

strength

free

latest

assault

Prince

Premier

war.

Fumimaro

this.issue: We

Konoye

Russian Resistance

American

New

World".

The actual

course

followed close

the heels of the

Vast battles
the

are

in progress on

in Russia,
are trying to
and the Rus¬
sians
are
struggling
mightily
against their well-armed oppo¬
1,650

front

mile

where the Germans
win

against

nents.

The

time

outcome

the

tre-(

incident, and brought about mendous struggle remains uncer-'
changed, for the time being, al¬ an ever sharper deterioration of tain, save in the sense that all
though a speech by President relations between the European participants are fast reaching the
Powers
and
the
United point
of
exhaustion.
Official
Roosevelt tonight may steer the Axis
State
Department statements on both sides were
country still more closely to war. States.The
on' Monday 'that an .terse. r','ancf: uricpmmunicative.
The degree to which the United announced
It

upon of

democracy, their sovereignty, and their freedom.
Ed.
Note:
Labor
difficulties
in have delayed the appearance of
■

has
ordered
attacks
upon
declaration a good velt
"meaning" for the German German submarines and "is en¬
people, and he also viewed the deavoring with all the means at
suggested statement as what he his disposal to provoke incidents
called a "realistic recognition that for the
purpose
of baiting the
Britain is the one obstacle in the American people into the war."
Two
merchant
ship
sinkihgs
way of a Nazi attack upon the
an

deal of

hearts.

fearless

people con¬
scious of their duty and of the
righteousness of what they do,
they will—with divine help and
guidance — stand their ground

very

flag—engaged

plane

warned
the
Japanese
people late last week that Japan
"faces the gravest crisis in her
history."
Ships were dispatched
by Tokio to repatriate Japanese
nationals from the United King¬
Berlin statement said, of "giving dom and the British Dominions,
it cannot be avoided.
urged the United States to stand
but no comparable action is re¬
The
American
people
have at the side of Great Britain in the attack of an American de¬
ported respecting Japanese in the
faced other grave crises in their the conflict with Nazi Germany, stroyer on a German submarine,
United jStates.
It remains more
history—with American courage as a reflection of that "deepening which was undertaken in com¬
than ;, possible that the Japanese
and American1 resolution.
They interdependence - of
the - free plete violation of neutrality, a
militarists are bidding their time
of
legality."
Berlin
will do no less today.
world" which was signalized by semblance
"
in the expectation of an attack
They know the actualities of Mr. Churchill's assurance of Bri¬ added the comment that in the
Siberia, if and when the
the attacks upon us. They know tish aid to the United States in German view the alleged attack upon
Germans defeat Russia in Europe.
the necessities of a bold defense any clash with Japan.
The Cana¬ by the American destroyer fur¬
against these attacks. They know dian Prime Minister saw in such nishes evidence that Mr. Roose¬

that

the

simply
and clearly, that our
patrolling
vessels
and planes
will protect all merchant ships
—not only American ships but

inquiry for securities.

after noon, on Sept. 4, and con¬
I have no illusions about the
King, issued an outright call for
gravity of this step. I have not American
participation
in the tinued nearly until midnight of
that day, if the German version
taken it hurriedly or lightly. It course of a luncheon in London,
is accurate
in
this
sense. }■ The
is
the : result
of
months
and Sept. 4.
Prime Minister Winston
months of constant thought and
Churchill,
who
attended
the American charge that the attack
anxiety and prayer. In the pro¬ luncheon, made clear his approv¬ was initiated by the submarine
tection of your nation and mine al of the comments.
Mr. King can only have the purpose, the

And

duty of maintaining the Ameri¬
can

disclosed

the

that• the

our

—

the

Hemisphere.

heads

naval and air patrol
now
operating in large
number over a vast expanse of
Upon

maintain

the time

to advance
Netherlands partment reported the

Amsterdam

drowned.
This

fair

this soverign nation.
Various
other
occurrences
of
only step possible, recent days also have served to
if we would keep tight the wall throw into high relief the diffi¬
of defense which we are pleded culties of the American position

and the passengers are

crew

prices
moderately.

That

: the

crisis.

right

■'j us not say—"We will only defend
ourselves
if the
torpedo
.

tended
The

But

market

which is
situation there.

responsibility rests side of the Atlantic.
The entire
upon Germany.
There will be incident disclosed, however, the
no
shooting
unless
Germany greatly increased danger of ex¬
continues to seek it.
plosive incidents which followed
That is my obvious duty in our maintenance of armed forces

■; now.
us

normal

sole

The

fifth attack, or the tenth attack,
or
the twentieth attack.

Do not let

the

come

now

The Berlin

the

either

ship went down Aug. 17 with an
apparent loss of 24 members of
policy, and the contro¬
the crew, including one Ameri¬
versy
can
be expected to echo
can.
The Sessa was one of the'
indefinitely, since it involves the
Danish
vessels
taken
over
in
fundamental question of the free¬
American harbors by the Mari¬
dom of the seas.
The Navy De¬

with
depth
charges, but results were not
incident of the American destroy¬
upon American ships by the cor¬
known,
the
Navy
indicated.
er
Greer, 1,200 tons, which was President
sairs ~ of the nations of North
Roosevelt took up the
engaged by a German submarine matter in his
Africa.
conference
press
in waters nead Iceland on Sept.
last Friday, and he made clear
My obligation as President is 4, The ship was made the target
historic; it is clear; it is ines¬ for several torpedoes, but the that he believed the attack was
deliberate.
Adding
slightly
to
capable. '
missiles fortunately missed their
the information disclosed by the
It is no act of war on our part
mark, and a counter-attack with
Navy
statement, Mr. Roosevelt
when we decide to protect the
depth bombs
immediately - was revealed that the attack was
seas which are vital to American
made upon the
attacking sub¬ made in broad
daylight, with
defense. The aggression is hot
marine.^ These also, it seems,
visibility good, and the flag and
ours.
Ours is solely defense.
were unavailing,
for the subma¬
identity marks of the ship plain¬
V But let this warning be cl<&r. rine reported the incident to Ber¬
ly showing. American naval ves¬
From now on, if German or Ital¬
lin, and the German authorities sels were
searching for the at¬
ian
vessels
of
war
enter
the
supplied a version which differed
submarine
and
would
waters, the protection of which fundamentally from that of the tacking
is necessary for American de¬ United States Navy, although it "eliminate'' it, the President de¬
clared.
He asserted that the in¬
fense, they do so at their own doubtless suited the German pop¬
cident occurred on what he called
peril.
•lj
ulace better.
According to Ber¬
|
the American side of the ocean.
The orders which I have given
lin, the American ship was the
In a German statement of last
as
commander in chief of the attacker and the torpedoes were
United States Army and Navy
discharged only in self-defense. Saturday, which charged that the
are
to carry out that policy— Needless to say, the German ver¬ Greer began the attack, the pre¬
at once.
'*
sion made no impression on this cise location -of the incident was

the Atlantic.

disclaimed

American

" •

commerce.'

third * President

gains in many issues.
market was
inactive,

United States, Thomas Jefferson,
ward
all-out shooting
particip¬
ordered the United State Navy
ation in the European war is the
to end the attacks being made

and

rattlesnakes

destroy¬

Tuesday, by fresh

proach

struck

American

The

you

submaries

the

are

ing

arattle-

crush him.

Nazi

These

United

the

States, John Adams, ordered the

The

United States Navy to clean out

range

President

new.

concern-

are

) ed by what

followed,

was

Americans say
or publish about them.
We cannot
bring about the downfall
of Nazism by the use of long-

leaders

•

the State Depart¬
positive knowl¬
edge of the nationality of the
attacking airplane.
The general
assumption was, of course, that
and

ment

much that we
are willing to pay for it by permitting him to attack our naval
and merchant ships while they
are
on
legitimate business.
want

last

among

the

"it

Atlantic

ships
London noted steady ad¬ sion via Alaska, and by. the dis¬
in
gilt-edged
securities patch of a five-man mission to might enter by President Roose¬
But the Germans
the
Moscow
conference velt, in April.
good tone in almost all attend

cause,

the employ¬ others.
Home rail stocks were suggested by President Roosevelt
Independent Car
quiet, but a number of industrial and Prime Minister Churchill, a
and Foundry Workers, an inde¬
Even Polisn troops
specialties showed improvement. month ago.
pendent
union, ., was. t,certified Mexican issues were in demand training * in Canada- are to be
early this year by the National on
aided under the lend-lease meas¬
reports of a general settle¬
Labor ' Relations
Board, as. the
ment of the troubles occasioned ure,
because Mr. Roosevelt re¬
collective bargaining agent.
by the nationalization of oil re¬ gards Polish action as "vital to
A
previous & reference to the sources ' there.
The
modified the defense of the United States."
strike appeared in our Sept. 4
The
Greer
incident
over¬
optimism
of
Prime
Minister
issue, page 16.
Churchill's
review of
the war shadowed all else in the field of
since

ees

South

the

Seafarer,

Contrasting sharply with the dull and uncertain trend
of our own stock markets, European exchanges this week
throat.' •'.'•b'"; v;
V'' '■
6 said:
•
4
/'
The
United States will not
reported a continuance of the decided upswing which now
More than 100 employees re¬
make that fatal mistake.
turned to work to; unload 250 has been in progress for some time.
Optimistic views as to
No act of violence or intimcarloads
of
steel
and lumber, war and other
developments possibly stimulated the foreign
idation will keep us from mainwhile the rest of the employees
markets, but it also is possible that inflationary tendencies
taining intact two bulwarks of
are to
be back on the job Mon¬
are
defense: first, our line of supply
making themselves increase
day
,rl:hpit''..
'»b ingly manifest. ■ Whatever the by the arrival of a Russian mis¬
•; of material to- the enemies • of
The walkout .began Aug. 29

May.
No lives were lost in the
bombing and sinking of the Steel

danger squarely in the eye until Concerning the reopening, United
it
actually had 'them by the Press Pittsburgh advices of Sept.

the first having been
Moor,
which
went

war,
Robin

the

ships and kill our

our

use

ternational
1

5,719 tons, in the Red Sea last
Friday. The vessel was the second
American flag ship to be sunk in
the course of the present Euro¬

Plant Strike Ended

writing—are of no posin dealing with in¬

—note
t

125

FINANCIAL CHRONICLE

the

United

States

was

un¬

Greer

have .taken advan¬
commerce
Tn V our
defensive
waters. They, will protect them tage: of : this cdelay: t& "present the Slates'-is becoming*' committed'1 iri aerial bbmb had surik the Ameri¬ appeared;': hbwever; bthat ^countef,
(Continued on page 126)
Eastern
freighter
Steel
Europe was illustrated can
Seafarer,
from submarines; they will pro- President's address.

FINANCIAL CHRONICLE

126

Russian

On The

Foreign Front

Black

Sea

defense pis

stout

fleet, and the possibly

will
if

war-zone

expected to con¬

be
the

turned

into

German

/AyVi'vV

■

„**.<!•*,& yj^S'^hursday,

September 11, 1941

tactics

should

tinue indefinitely.

H'*-S H

'Says/IiistalmentfjM

change.
The
B r i t i s h
" Berlin spokes¬
suggested an early capitula¬ spokesman referred proudly to
the city of Kiev, but that the strong British and American
being made by the Russians in
forces
now
occupying/ Iceland
the central area, around Smolensk important municipality is in the
center
and the decision on the jointly, without indicating when
and
Gomel, while the Germans
field will probably decide the fate the promised withdrawal of Brit¬
and
their
allies
made at least
of KieVi .?•?if*•'••
' ish troops would take place.
The
some progress toward the capture
Allied front now runs in an im^ ing a.large part of the recent growth.in demand for con¬
of the key cities of Leningrad in
durable goods,'If-the? Board of' Governers of the
mense
crescent from Spitzbergen sumers'
r Iranian Route
'>•?''*
the
north,
and Odessa in the
in ,the Arctic to Tobruk in"the Federal Reserve
System, in the September "Bulletin" just
south. " The
Acceptance
of
Anglo-Russian
problem "of supply
Western Desert.
He praised the
issued, notes that i ,{the preserit^voldme of consumer instal¬
plainly- becomes more and more demands by the Iranians was re¬
"magnificent resistance", of the
troublesome
with/ * the
passing ported yesterday, and the end of
lment;; debt^
Russian armies, which he assert¬
$£hiptotipg*
$0,000,000,000,> is ' at; ah
Weeks of this tremendous effort, the vest-pocket war in that Mid¬
ed had cost the Germans more
fall-tirrie' peak, and is nearly dou¬
and both sides are beset by such dle ■- Eastern
country
thus - is
ble the recent low in 1938." / The
reported in raids on the Suez and
casualties. in three months to
difficulties.
There were rumors reached, with the supply route
suffered in any • full the. shipping using that passage, Board goes oil to say that "dur¬
The incident the Reich
from London yesterday, however, for Russia assured;
with the sinking
:of the Ameri¬ ing the past year the famount of
that the Russians are feeling the will prove a highly important one year of the first World War.vBut
-1
-J—. J.'Si
the»! Russians must be assisted, can jship; SteelSeafarer one ob¬ credit outstanding - en
automo¬
pinch perhaps more than their for the conduct and duration of
increased
over ;
indication. £ British ^sub¬ biles
the Prime Minister added, and he vious
40%, arid
That the Russians will
adversaries.
Sir "Stafford Cripps, the war.
warned the House that a consid¬ marines are operating, in the cen¬ other 1'ofms of instalment credit
the .British Ambassador to Mos+ hold but is now considered as¬
and
erable Diversion of supplies . may. tral'- Mediterranean
causing also; have increased substantial¬
cow,
is said to have been in- sured, but the promised supplies
take
place, both from Empire havoc0.among /Italian § '.vessels ly.":;This is brought out by the
for'med that the Russians expect from Great Britain and the United
and American sources.
speeding on the two main routes Board in discussing its recent con^
early supplies from Britain and States. ar£ likely to prove vital
between
Italy ' and Libya. "An sumer : credit regulation (known
The Spitzbergen incident seems
for. the
Russian
defense. ,: It is
the
United
States,
and also a
Italian-cruiser of 10,000 tons was as Regulation W)V reference' to
more
effective effort by British through
the Iranian ' route,.. es¬ to have been more sensational
reported torpedoed, on Sept." 5, which was made iri the Chronicle
forces
in
western
Europe J But pecially, that ^supplies are likely than significant, for--no opposi¬
and a large liner believed to be of Aug. 30, page 1203:" In its
tion / was
Sep¬
encounteredwhen v a
the
Russian
winter
nears,; and to flow into Russia, and the pos¬
carrying troops to Africa also was tember "Bulletin" the; Boalrd ob¬
the weather possibly will prove sibility is not to be disregarded force landed in the islands,? far
serves:
'•»•"//i'lTy;-.*;,: '
to the north of Norway^ : Mines hit, London announced.; On the
again, as in' the1 past, the best that a British Expeditionary Force
following day London officially .In the: past
friend of the Russian forces. /;/].» may be sent into Russia in or¬ were destroyed, and most of the
year the /country.,
has experienced the most
der*'to hid
in the
defense of Norwegian miners were carried to reported the sinking of the Ital¬
rapid
Although
much
prominence
ian transport
Esperia, 11,398 tons, i increase in the volume of bank
that country. The Anglo-Russian England.
British officials were
currently is being accorded the
and Rome conceded the
sinking
credit during its history., Loans
troops met little military resist¬ quoted as saying that the Nazis
battles at both ends of the great
this week.
A smaller freighter
of commercial banks have ex¬
ance
in Iran, but diplomatic re¬ had planned to take Spitzbergen
lipe, most military experts are
also was sent to the
bottom, Lon¬
sistance to the demands of the and use the coal mines there to
panded by nearly $3 billion and
agreed that the center is the vital
don said, v Aerial raids on Italian
their holdings of United States
two invading countries was pro¬ augment their dwindling supplies
area- in
the
Russian campaign.
nounced.
The
incident : finally of fuel, but a degree of skepti¬ ports in Libya were continued,
Government f obligations
hy
Well
organized
counter-attacks
and some bombs were
has been settled, however, with cism is permissible with respect
dropped on
about $3.0 billion, as shown by
against the Germans were made
an
to such alleged plans, in view of mainland cities of Italy. ,- These
the chart. • As a result of this
agreement
whereunder
the
by the forces of the Russian cen¬
Russians are to occupy a north¬ Mr. Churchill's statements about actions foreshadow that resump¬
expansion and of the further
ter, and these developed by Tues¬
tion of the conflict which all ex¬
ern strip of Iran, and the British huge Axis
increase / in : monetary
shipping losses and in
gold
day to the point where the re¬
regarded
as
a
inevitable,
southern strip.
Oil wells and the light of the continued British perts
stock, the country's abundant
capture of numerous villages and
when
the
hot
summer
ended.
transportation facilities are to be control of the seas." Some mem¬
150 sq. miles of territory could
:j supply of bank deposits and cur¬
held by the i3ritish, and the Ger¬ bers of the landing party appar¬ Both sides, obviously, are preparrency
in 'circulation
has
in¬
be claimed officially by the Mos¬
for the clash, which
man nationals who
furnished the ently were left to hold Spitzber¬ riig: Well
creased further. / Tne volume of
cow authorities.
The precise line
therefore may prove to be far
casus belli are to be interned, or gen, the seizure of which Was an¬
money payments, as reflected in
of
fighting is in some doubt,
delivered to the Allies. The Iran¬ nounced in London on Monday. riiore sanguinary than the cam¬
the figures of debits to checking
since there are dispatches avail¬
paigns of last winter.
J
ian
Parliament
approved
the
accounis
in
In the aerial battle which now
able
from
Berlin
and
Berne
banks, has risen
terms on Tuesday, /
is
sharply since the inauguration
which
coming to be known as'.. the
suggest
that
the
Reich
of
the
defense program
forces have advanced to Bryansk
last
Anglo-German Conflict •- » - Battle of Germany, the British
Latin-America
and Konotop, whereas the Soviet
summer, and the; turnover of
Bitter aerial and sea fighting fliers "far butnumbered the; Ger¬
>
Steadily closer integration of
bank deposits, which represents
who seem to be rather
description of the battle would continued between British
and mans,
political and economic relations
the rate at which deposits are
seem to place it near Gomel and
on the
Russian
German forces, as the great Euro¬ deeply engaged
between the United States
and
front.
Great squadrons of bomb¬
Smolensk.
being used, has also increased.
Eight German divi¬ pean war moved well into its
the/various countries of Latiners soared over the Channel and
Although the expansion of bank
sions, in any event, are reported third
year.
The
attacks
were
America now is a matter of daily
routed
credit, the growth of currency
by the Russians in the varied by a British disclosure that bombed Berlin night after night
in circulation, and the
center.
Military authorities point the Norwegian islands of Spitz- in bright moonlight. Russian air¬ record, and in almost all senses
building
this is an occasion for
gratifica¬
out that enveloping
joined
in
this
task
at
up of Treasury deposits at the
movements bergen had been raided by Brit¬ planes
tion.
The improvement of politi¬
times.
But the British attack far
are being attempted by both sides
Reserve, Banks
have
caused
ish,
Canadian - and
Nowegian
cal Felafcidhs^can only be regarded
some reduction in the volume of
in the center, with important and
troops.
But the principal inci¬ outweighed the Russian endeavor,
as fa ; distinct
and it also was
benefit in these
bank reserves in excess of
extended to a
abrupt changes possible at any dent of recent days probably was
legal
times. • Economically,
much larger brea.
time.
In all probability another a
German ports troublous
requirements, ; excess' reserves
sweeping review of war de¬
and industrial cities by the score the United States appears to be
"battle
of
are
is
in velopments and the
still very large, amounting
annihilation"
prospects for
to about $5 billion for all mem¬
progress, and it is significant that the future, supplied Tuesday by were
hammered,
and
daylight giving far more than it is receiv¬
the
Reich
ber banks.
These reserves are
High
Command no Prime Minister Winston Churchill raids were made upon the in¬ ing under the current arrange¬
(Continued from page 125)

strokes

vital

importance

are

men

tion of

Stimulates Consumer Demand
,

•

■

•

longer issues frequent statements to the British House of Commons. vasion
to

the

effect

effective

that

Rus¬

optimistic than on
most
sian
resistance has 'been Wiped previous
occasions,
the
Prime
out.
Instead, Berlin admits the Minister reported to the first ses¬
stubborn fighting qualities of the sion of the Commons
after the
Soviet troops. The Nazis were re¬ return of that
body from a brief
ported as endeavoring to straight¬ holiday.
It was also the first ses¬
>

out their lines, preparatory to
digging in for the winter.
They
bombed Moscow heavily on Tues¬
day night, which indicates that
daylight operations still are pre¬
vented by the Russian air force.
en

;

That the position of Leningrad
is

now

grave

the

for

weeks

cannot

Russians

President

and

Mr.

important

decisions

were

reached
and

be doubted, halt

began

Roosevelt

Churchill. In that conference, Mr.
Churchill
informed
the
house,

highly

several vent

regarding aid for Russia,
the policy to be pursued to
Japanese aggression and pre¬
the

sion since the Atlantic conference
of

and

from

war

spreading

day, at

ran

their

admitted
Germans * at¬

ago

defense

which

aspect

that

over

the

waters

Lake Ladoga of
the
Atlantic, Mr. Churchill
but few could was fairly hopeful, but he warned
make
good
a
retreat by that the House against false hopes and
route.
The earlier decision to de¬ vain talk.
During July and Aug¬
fend the city to the bitter end ust the
sinkings of British and
thus seems likely to stand. Ger¬ Allied
merchantmen
were
only
man heavy artillery was reported
slightly more- than one-third of
shelling the great industrial cen¬ the total Axis tonnage sunk in
ter, and immense air raids also the same period by British and
are

possible,

said

have

the Nazis.

been

made

by Allied submarines and

Finnish

airplanes,

troops, mean¬ he declared.
He considered the
while,
continued their advance Germans to be much hampered
over
the Karelian isthmus, and on the American side of
the At¬
around
Lake

the

Ladoga.

Germans

and

northern

shore

of lantic by fear of trouble with
the

A junction of the powerful American
Finns

said

dispatches to have occurred.
Odessa,
in
the far south, re¬
mained
under
siege
by
NaziRumanian
forces,
which
were
s^idi in; Moscow,-.to be..; suffering

some

"This has been
wish it might
he added.

naval

help to

forces.

but I

greater help,"
Hitler has the greatest
a

need, Mr. Churchill said, to pre¬
precious stream of muni¬

vent the

tions
supplies^ how' crossing the
heavy ^casualties. r/ The city de¬ Atlantic-1' from reaching British
fenders are being supplied by the
shores, and the whole Atlantic

able

sinking

announce,

Far

Tuesday,

Northern

the

waters

available
for

Getulio Vargas declared on Mon¬

day that
source

any

will

united in

aggression from any
find

the

defense.

Americas

Mexico and

Cuba specific statements of a like
nature have

and

days,

been

made in recent

other Latin-American
following the same

banks

further

pansion in

still

may or may not be rectified in
the future.
Infiltration of Nazis

Latin-America, and the Ger¬
The
tempted some resistance, especial¬ man propaganda in general, now
ly when attacks were made oh are being combatted everywhere.
Oslo and other Nowegian
Argentina this week has been
ports
held by the Nazis.
Some Ameri¬ swayed from its former concep¬
can-made bombing airplanes were tion of strict neutrality by an in¬
lost in these battles, arid at least vestigation of anti-Argentine ac¬
three members of the American tivities, which disclosed, a cam¬
Eagle
squadron
were
reported paign for the "Nazification" of
missing. /The heaviest raids on the entire Western Hemisphere.
the Reich developed last Sunday, A charge to this effect was made
which was the amiiversary of the at the conclusion of the inquiry
all-out
German
aerial
assault by the Argentine Deputy, Damonte Taborda, who conducted the in¬
upon England.
In the war at sea
Celebrating the anniver¬
the Germans apparently were less quiry.
of
Brazil's
independence,
successful than in many previous sary
achieved 119 years ago, President
months, but some sinkings of
maximum.

an all- the Pacific.
As in the case of his
by soldiers and civ¬ radio address of Aug. 24, the
ilians, alike. In the last few days Prime
Minister
asserted
that
the
Germans
claimed
officially Britain and the United States had
the / complete
encirclement
of pledged themselves jointly to the British and Allied vessels were
Leningrad, by land, the trap hav¬ destruction of the Nazi tyranny, reported almost every day. Brit¬
ing been closed with the Nazi the phrase being taken from the ish officials viewed the Battle of
the
capture of Schluesselberg, Mon¬ eight-point declaration.
Atlantic, however, as "not
In his comments on the Battle going
day.
Escape for- the Russians
too badly."
London was

out

to prepare for

England. ments,

coast
opposite
airplane, losses

British

their
and

vestments

basis

large

very

loans

ex¬

and

in¬

correspondingly

in the volume of

deposits.

Likewise the Board states that
"one of outstanding
banking de¬

velopments since tne start of the
defense

program
has been
the
rapid growth of bank loans " "By
far," it says, "the largest increase

occurred

nas

gory

the

commercial

(Continued

broad

and

page

cate¬

indus-

127)

suspicion will linger that Mexico
is

unregenerate

coming

into

sideration.
ment
of

the

whose

and

possibly

fold

for

the
A

the

final

cash

con¬

settle¬

well-justified claims

American

properties

oil / companies
were

confiscat¬

by Mexico is reported/ to be
part of the deal. But the rumored
settlement
and

far

from

adequate,

the

oil companies are
hardly
States
are
ship Bremse,
likely to accept a pittance for
course.
Pan-American solidarity
1,400 tons, and several other ships
their large investments in Mexi¬
supplying German troops on the assuredly is being achieved, in co. / British
oil; companies also
the political sense.
t 'v
',
Russian Arctic front. An interest¬
are
involved, and it is significant
ing incident was the capture of
If economic solidarity is lag¬ that /. London
views ' the
entire
of the German cadet

German

lantic,

submarine

after

the vessel.

aerial

the

At¬

attack

The submersible

on
was

ging

somewhat

tical

unification

the poli¬

matter

skeptically. Just what dis¬

the American position

fault cannot be
towed to a British port, accord¬ laid to a lack of
generosity at
ing to a London announcement of Washington,
although judgment
Monday. ■
;
may be awry.
Loans and credits
have been extended in profusion
,,

Republics,

behind

the

„

off* her

Mexico

intends

make

huge

defaulted- dollar
debts is not clear/ It
may be ob¬
served, indeed, that the debt rec¬
ord of Latin-American
countries,
with

few
exceptions, is far from
encouraging. : Argentina is one of
Intensive
preparations plainly Grande, and fresh advances ap¬ the exceptions, of course, and an¬
are being made both by the Brit¬
pear to be in prospect.
Wash¬ other came to light last Satur¬
ish and the Axis Powers for a ington dispatches last week in¬ day,
when Haiti cancelled
ar¬
renewal of the
struggle in the dicated that Mexico may, obtain rangements rfor partial payment
Mediterranean, now that cooler a sizeable loan in' the United of coupons and.indicated that full
weather.
impends.'"Attacks
on States, ■ /as; part ,M
an ^extensive payments is/to jbe;-made,;
owing! to
supply -liries lhiak^u this clear. agreement for,^cooperation;" (Un¬ economic
improvement
of
that

Mediterranean Warfare

the

countries south of the Rio

*■

German

and

Italian

aircraft

are

til

all

details,

are

available' the COUntry.7,«

eral is effective as ,of

Says Instalment Credit
^Stimulates Demand
i

for, both

panding ('sharply?
Board

The

purposes.','

and non-defense

fense

de¬

that the rea¬ /

notes

Reserve Banks

Morgenthau Says Gountry Is Facing Inflation

Sees Tax Bill, Defense Bonds As Correctives

which have been ex¬

loans

trial

(Continued from, page 126)

September

effective4 dates'1 dl
certain
provisions have- i been
postponed—some to ^October 1;
some to November 1,
ind others
Measures to combat inflation, which he said is no long¬
to January 1.
These postponed
er a "distant threat"
were discussed by Secretary of the,
provisions apply to records to
be kept; renewals, revisions, ad¬ Treasury Morgenthau, in addressing the Advertising Club
ditions,
and
consolidations of of Boston on Sept. 9. /Declaring that we are facing infla¬
outstanding credit; and in the tion
If • 1941 ythe

■

127

FINANCIAL CHRONICLE

Number 3979

154

Volume

now," and

must deal with it at once," Mr. Morgen¬

On Business
A

and

ing the 7 reasons set forth by the
President in his Executive order

tinued

the

curbing

Y
A

reciting that "the exten-

reasons

volume

listed goods. The down-payment,

developments of increas¬
ing consequence as the limits of
productive
capacity ..are:? ap¬
proached in more and more fields
hinder

for

■

regulation

further, stated that the

value .of

tracie-in

the

to 20% for refrigera-

car,

do
in

overrode
sonal

cneck in¬
allow prices

the

riod.

power

needed

post

defense

have

called

all

For

goods,

.listed

.automobiles, .the down payment

the

before

much

twice

almost

cost

once

except.

has

process

ended."

required lsngureo as a percenk-

/A'/We can, as I have said before,
'defeat
this threat of inflation,

riod Yin
These

y case

large

they

and

the

scope

regulation

The

*■;

covers

pri-

manly extensions of instalment

regulated

;
';

ister

credit for the purpose of purpose of. purchasing or carrying
certain designated types of com

•;iK

V.
i

supplement to
the regulation
and is subject to change from
time to time.
Used articles, as

well

ones,

new

to prevent evasion of the main
£'■ purposes of the order ar.d regulation, maturity restrictions me
Y imposed on \ cash loans repay-

•

also
uness

$1,000,000,000

many other types of busi-fcstablisnments.
A Y large

and loan agree¬

prior to the effective date of the regulation are
covered

not

regulation,

i ing agencies, including commer'•

ex¬

idated

Some

loans

effective

The

dates

loans

including

not

secured

sued :

Some

/rises

from

banks

loans for

similar

and

y where needed to prevent undue
,<i

hardship;!loans to ? dealers/and
-

•

;

<•'

V*-'T

•'*.►**''

While

the regulation

in gem

use

of those

sup-

from; 9^

cents

100%

in two years,

bill

stocks

for

sent

the

freeze

gov¬

and

cotton

duration

the

and

thus to prevent the
from disposing of
the surplus \ wheat and

sident

acquired. The Pre¬

promptly vetoed the bill

because

this

?>'

measure

would

have

aggravated the danger of
and might have frus¬
trated our efforts to fight it.
"

inflation

•V. We ought not to withhold cot¬
ton surpluses, or any surpluses,
from

tne

these.

made

or
-

times

pay

tribute to

and. speculators when
a cotton sheet for her

profiteers
buys

she

home

market

The housewife ought not

shirt for her husband

suit for her child, -v..

Millions > of

peoplestill go
milk,,; butter and

without, the

which, according to. the tes¬
timony of food experts and the
of plain common sense,
are necessary to good health and
eggs

dictates

selves
year

their in-.
i.

hold

the

they create.

panies also ; go

are

have

much

this

shall

able

regular lines of
market

instalment

Sales finance

the open market

banks

been

paper
,

com-

for funds.V

to
-

earners

was

their

sheer

prices

the

to push
by creating scarcities

suffered

cruelly

The farmers

for

the collapse

after

years

from

folly

point: of view

in times like these.

again.

long
of the

for labor
increases in

few

months

which

to absorb

most of

prices, and
-'

;

stocks.; of

farm

of many kinds which
should be released for consump¬
products

tion

for

fast as necessary to pre-

land¬

bear

defense

centres

housing space is at a pre¬

'"-yV

•

It is poor business, in the long

reserve

higher
higher

higher cost of liv¬

mium.

volume.
Here in this country we have

It seems

seek
every

charge all that the traf¬

will

run,

for

any

businessman to seek

exorbitant profits

in this period

of defense spending.

It is bad banking, in the long

run,

for

any

the present

banker to

exploit

demand for funds by

seeking to/charge
interest

increases

stocks in that coun¬

larger
;

new

produce
costs,

is short-sighted

lord

to me desirable
apd necessary that we now fol¬
low the example set in the case
of Cuban sugar and permit the
entry
of
Canadian wheat in

large

wages

same

./v^Y.'/., '/Y//'•■ " VYv;i//. A;;

ing.

try.;

—

turn

manufacturing

where

;

in the
leaders to

folly

new

way

fic

the quota on sugar
Cuba was enlarged so sub¬

fyy-A

is sheer

from

wage

;

farmers

the other day

of America to set aside

country's good.

of keeping up

try. <" But it is also

the

rigid quota

wneat in this coun¬
true that only

/the price of

have to invest much

to the importation
with the

applied

the "reserve

avail¬

wheat from Canada

stantially

clear, call

ago

ultimate objective

great and
present tax

ia portiop of, their earnings each
-week :for
their/own good and
/

months

three

our¬

;

are

neighbor democracy

in our

the

;

crops

5of Canada. "It is true that only

widely and systematically
in Defense Savings Bonds and
Stamps. .In particular, the rising
payrolls of the past year have

borrowing

years'

several

year,

now;

heavily next

than

held in this country .,
are
far higher than they were
a
year'ago and far higher than
the
of the past five
average
years. * * *
/ /'vyy/'Y.' ;/:•////://.
pork

/bag of flour, that our supply of
wheat is tne largest on record,
and that 498 million bushels oi

tax

shall

stocks of

/knows, wnen she pays 15% more
than she did a year ago for a

rises

they

but

storage, y/;Y > y'
j
wonder. if the-/ housewife

morale. . Yet the reserve
butter, cheese, beef and

good

inflation of 1920 and 1921; they
should not be made to suffer

from the open

certain other special? types/v.:A

Price Ad¬
those

enough.

expenses

and

credit

limit

end,

necessary

not

control

by voluntary cooperation.
.;>-V
All these are useful steps to

finance

sales

medical

bill will be..

stores,

is¬
the

supplement the ef¬

far-reaching

stalment

System

Office of

ministration

companies

dealers, however,

niture

ing repair loans, loans made for
?

and

forts of the

others!

with

authorizing

; The
Congress is considering,
?nd I hope will pass without undue delay; a bill to. limit price

purposes,

upon the de¬
Above all, we

from

installment credit.

particularly department or fur¬

educational

program.
*must make full

of Governors of the Fed-

consumers

by/ vendors

discounted

vprder

Reserve

eral

banks;

goods

Board

companies,

consumers'

finance

banks.

article recently or about
purchased, first mortgage
loans on real estate, some buildto

•

created

paper

durable

sold

listed

;

finance

commonly

of ' instalment
exempted from The

$1,000

over

industrial

credit unions; and a few,

types

are

regulation,

)

the

after

applicable provisions.

cial /! banks, r

personal

cept in certain cases where they
are renewed, revised, or consol¬
of

the

encroaching

fense

these :f, plies that are available, not only
month
inv defense
production but in

V'. The President has recently

made

worth -• of

were,-sold

rnotes

contracts

out"

Areport1 to/you that more than, a

ments

purchas¬

happy to

am-

*
or

cotton it had

wherever this can be dona with¬

tax

but

respects,

various

secured by listed articles,
part of consumer credit is exprovided the loan does not exV tended directly by the dealers
ceed $1,000. The regulation does
in tne various durable
consu¬
does not apply to open book ac¬
mers' goods. A somewnat smallf
counts, nor to any loan payable
er
proportion is extended to
in full on a fixed date.1 Instalj
consumers directly by casn lendment

v;v;"; ; /the provision of civilian goods
in the business of extend-- j'of /August.'!V • y;;'-;
which
do:? not j compete
with
ing such credits.. To all persons ••-A The Treasury has also begun
defense output.
If we reduce
of selling Defense
engaged in that business, how¬ V a / program
undesirable purchasing now and
Savings'^ Bonds and Stamps to
ever, a general license is granted
keep prices down now, we shall
byf tne regulation" itSeir until people of moderate and low in¬
be
helping to provide for • the
comes.
y The
December 31, 1941.
people
have * re*
day when these vast defense ex¬
sponded -to a tune of a billion
y Thus
the institutional coverpenditures will end and when
and' a quarter dollars in four
age of tms regulation will be
our
defense workers will take
tnonthsf : without coercion of any
broad, including not only mem-;
/
up the work of peace again, f
kind; and in making that re¬
ber banks of the Federal
y The most effective way to presponse-possible the advertising
Yvent a damaging rise in prices, is
A profession /has been of truly inquite simply, to release surplus¬
f; valuable: help.

not

J :•

income

current

ing i>ower,. and I

Bank

Board

instalments, whether or

able
•

holds

now

recently

any

every

and

credit

check

Vas a

the

;

sumers'Y instalment

;

government

supply of

gage

covered

are

i': in all. cases except■ household
>1 furnitures Iii/: order, to i'cqvet
-a
more broadly the field- of com

must be licensed in order to en~.

covered is given in a

of articles

•

the • end

with the Federal Re¬
or their district and

year

serve

durable goods.. The list

sumers'

•

tne

required to reg-

are

later than

not

fectiveness

tne types of credit

of extending

;

risen

war,

goods available to the consumer

Regulation says—* f/ox?

/" of the

above that

unreasonable price rises.

wheat

make

seasonal

for

;

1940/

ernment

the

allowing

President

•

must

Twelfth

the

Congress

10% higher than in

not far from

■

increase

July.

August 1, 1939 to over
17 cents a pound at the present
time.
In spite of this rise of

month
was

July

have

•

effort

in further

trade

15%

pound

"•

rection.

' to
re¬

controls 7,000,000 bales of cotton
in reserves,
and cotton prices

//- Through a new form of note
fsonah linance or *! "small loan";
,~the tax ^anticipation note—it
and credit unions.
and nature .4 companies
Peking / to increase the ef¬
:/ Persons engaged in the business

and

reflected

The Government

;

W in its September number,

that

vent

tion

year.

cash

farm

Vment'in its reference to Regula¬

department store sales

January,

influences, and

substantial

time

retail

District

job.
good

Value

I, afee of tne" full purchase price
this time, for they should help
designed /.to. combat inflationary
huiius the value or tne 'traae-in,;
just; as ' we^ can defeat and; def us to decrease certain forms
of
developments.'' j Incidentally
it A/if any. For inis reason, tne in¬
stroy ^ the forces
of evil that
may be noted here that Secretary
stalment buyer of such articles,:
have been let loose upon this purchasing now and increase them
of the Treasury
Morgenthau - in '.
in the
future when they may be
regaraiess
or
the trade-in ai- Yearth./'r-But we need to under¬
an address at Boston on Sept. 9
needed."
;.*,/
Y:o%YY:'w/y-.yI
stand the issues and we need to
lovyance, must always make a
declared
thatinflation
"is
no
Mr.
Morgenthau
also
stated;
; see clearly the
consequences oi
longer a threat" but that "we are
f't .payment; is required on real tsr > inaction or delay.
I should like, that "we must,/? as I have said
facing it now and we must deal
• rate modernization
loans of Jess, therefore, to
point
out
first, many times, reduce nonessential
Vijrith it at once." Chairman Eccles
than $l,v60 lor services and ma-i
what ;we, have done; and then, Federal expenditures.
We must
of the Reserve Board of Govern"what we need to do, la order to also appeal for economy in State
Y tenals other -than listed articles,!
/' ors
1 ikewise,
in v a statement >; but sucn loans must he repaid/ i'&top prices from rising further. and local A government ex¬
Aug. 24, published oil Page 1216 / in;, 18 months.
In the first place, Congress is penditure and a curtailment of
;• X X
of our Aug. 36 issue) warned that
ineir borrowing for non-defense
*•.
y Persons
and■;< agencies j subjec I on-.the point of passing a huge
/ "if there are no restraints; upon
to -rims
reguiatmn * inbluoe' alt; J}; tax bill designed to raise almost purposes." A Pointing out that all
the public's spending of increasof the measures he had suggested
who are engaged in the business4- $4,600,000,000 in additional reveing income for articles that cancombating inflation would
nue;; thus withdrawing a great- "for
maKing-ek».ensipns
instafc
: ilot
be
produced in sufficient
power attack the problem by reducing
/ ment i credit
or discounting ■ orr iY amount >. ofY purchasing
quantity to meet the increasing
the demand for goods now and
/ purcnasmg instalment paper, in-: Ythat; competes with the defense
demand, the inevitable result is
by helping to build up a backlog
effort.' ^
:
that the price of these articles feluding mstalment sellers ohthe
Secondly, the Treasury in its of purchasing power for the post¬
listed arucies, wnether dealers,
lyiil be fapidly bid up. ' The con¬
:/ borrowing program is trying to war world." Y Secretary
Morgen¬
stores,
mail order houses,*or
sequence
isV what is commonly
obtain as large a portion of its thau added in part:
?
;
others; saies finance companies;
*: termed inflation.'*
The Board inBut we should also attack the
funds ; as ; possible from current
i
banks, including Morris Plan and
eludes
Chairman Eccles'
stateconsumers' income.
problem from the opposite di¬
other industrial banks; and .perf
.

sea¬
cus¬

employment

was

gains

themselves, but
especially necessary at

are

month

have

for

this

gains

ceipts,

"se¬

his

would

measures

desirable

and

loses

successive
influence

made
at

factory

pe¬

Expansion in consumer incomes,
owing particularly to increased

addition," he said "I
have already suggested the crea¬
what

July

factors -which

declines

tion of

the

tomarily

the emergency and in¬
the outflow of funds when

crease

the

pi. J to go

jin the light of the
fpregoing'considerations and as a
step supplementing more funda¬
mental
governmental * measures

our

during

the controls

use

pri¬
con¬

preceding three months and

for the second

on rising as they did from paration wage"—that
is, an en¬
to 15% for major items
71916 to; 1920, we may find that
tirely new form of contribution
housing equipment such as tur-"
food, fuel,/ shelter and clothing out of wnich a worker
itaces and piumbing, and to 10%
may draw
which
now
cost
a
dollar will
a
lor household furniture.; ;/ A:fb
regular wage for a stated pe¬

•

"issued

was

disposal now, if we fail
the specific things which

flation jiow,

other household appli-

and

fail

our

Y ances,

program.'' The Board

the defense

say---'/;

: are

useu
lois

available for financing

of savings

amount to 66W<>
automobiles, which may in¬

clude

accumulation

the

Morgenthau expressed
hope "that we may extend
tary

red

requirements

tionary

and

exceeding one month/ Mini-.

such credit in excessive
tends to "generate infla¬

sion

necessity

the

our

higher

New

building

active

78%

and

earlier.

year

residential

vate

light, our warning signal, tothe'
uay,Tor such a rise is always the social
security program so as to
mum
down payments are re-:
advance. guard of arx increase in
increase the flow of funds to the
quired in the case of instalment.
the cost - of living."
He went on
sales and of loans secured by
Treasury
irom
current
income

not

instalmentv'credit,—one Y of /the

regular /intervals,

at'

stalments

constitutes

that

respectively in July

49%

were

than

commodities

(Continued from page 118)

5% and 9%

regulating v consumer '*/ last case to minimum monthly
thau said "we have now, as we had in 1916, a moderate nse
credit and for assigning this task Y paymefttsA yy • ' ..A/
7: j in the cost of
living, a great rist3>
y/m*';': : ■
to the Board of Governors of the Y • For all types of loans
covin
wholesale prices and a still
y
We may have to extend gen
Federal Reserve System were set ; ered by the regulation a maxigreater rise in the prices of basic
eral controls over bank credit i
forth
in
the % Executive
mum" maturity of 18-months is
Order
commodities
like
wiieat,
hogs,
and create controls over selected
(given in our issue of Aug. 16, ; prescrioed and, with some ex¬
cotton and lumber." it is he said
capital expenditures.
'
page'921) and the Foreword to
ceptions, loans must be repay-:
"the, rise in the prices of basic
the Board's regulation, embody¬
In his further remarks Secre¬
able in approximately equal in¬
tor

sons

Report

rates.

unreasonable
/

....../

CHRONICLE

FINANCIAL

128

%
'

LEGAL

IN THIS SECTION

'... *

•

Thursday, September 11, 1941

Samuel Shaw Honored For 50 Years Of Service

{Continued from First Page)

•;

'i,

;

By Chemical Bank & Trust Co. Of New York

Engineering construction contracts in August sharply reduced from
July peak but substantially above year earlier.
^
.

Samuel

Shaw,'Vice-President & Secretary 'of the "Chemical
Company, has completed his fiftieth, year of service
with that institution.
In honor of the occasion, he was presented
*
Page 114
with a gold pin, studded with
diamonds,, by Mr,. Percy H. Johnston,:
Number of semi-defense projects may be postponed due to steel Chairman, in the presence of Mr. Frank K.
Houston, President, and
INGENIOUS AND ATTRACTIVE
a large number of the staff.
shortage. ■
Mr. Shaw was invested with the pin
Paee 118 by Mr. John F.; Flaacke, dean of New York bankers and Honorary
"There's your new charter en¬
President of the Quarter-Century Club of the Chemical Bank.
The
titling you 'to contract for, buy Preference rating applications cleaned up in past week.
Govern¬
Quarter-Century Club, of which Mr. Shaw is President, is composed
and sell securities and bonds of
ment buying Australian and Peruvian lead.
Page 119

ODDITIES

AIB

Bank

Registration Period.

nature and description, and
and loan money there¬

every

Trust

Page 120

...
,

to borrow

on."

asked

I'd

for

wider Daily average crude oil production off 189,750 barrels: ii week endY-f ed Sept. 6.
-YY.YY

any

the state would call you
bank', and then you'd be sub¬
yYYyY:J .,77;Page 117
ject to state supervision and con¬
Electric production for week ended
Sept. 7 totaled 3,095,746,000
trol," the Ohio lawyer explained.
kwh. according to Edison Electric Institute.
"I suppose that's right, too," the
V/;• '.!
'7' ■'
Ohio promoter agreed.
...x !
'/v,/'
''
Page 120
Then this new corporation bepowers
a

•

Soft

business by borrowing high
grade bonds on which the corpo¬
ration agreed to pay interest at

\gan

(in addition
interest itself), and

specified
the

rates

bond

and

the

bonds

return

amount

-•

to
to

class

same

end

the

period.
L
•' •
: '
"Therefore,
youi receive
not
only the interest your - securities
are
earning, but also the addi¬
tional interest we pay you for

loan

the

of your securities,

use

is the

same

terest

for

the

was

selves.

Then, having acquired a backlog
of

borrowed

Bond

individual

Prices

the

collateral,

bonds

these

raise-

Page 119

•Y^V'?.Yv\

Francis Biddle

sworn

''Y: /

*'f

Page 120

Attorney General.

Page 114
In

noting

expansion

tention

installment

credit

Reserve

Board

calls

at¬

tendency toward inflation, which regulatory measure

seeks to prevent.

♦

1 **'

Senate passes tax bill estimated to

Page 126

•

yield $3,583,900,000.
77'Y.

Page 113

.YY,Y

Secretary Morgenthau declares country is facing inflation—Regards
tax bill and

defense bond sales

extend

—May

controls

from storage suggests

means

of curbing

bank

over

credit

and

price rises

release

surpluses

"separation wage."

Page 127

President

Roosevelt

out

waters

patrol

Germany

warns

vital

protect

American

merchant

continues

and

Italy to

seek

keep submarines

defense—orders

ships—No

shooting

naval

and

air

unless

says

it.
;

Page 113

President Roosevelt authorizes lease-lend aid to Polish troops train-

ing in Canada.

corporation

30.

Page 120

Condition statement.

used

Aug.

tons below preceding week.

Changes Are Mixed.

Member bank

putting'

lenders,

ended

bonds, the corpora¬
money from banks

the borrowed bonds as col¬
lateral, lent this money to bor¬
rowers
who put up more bonds

week

tion borrowed
and

change

bond-

citizens
assured them¬
7:'Y. Y'/'/YycYYY;
Y

holding
'

bonds." J the

our

little

Anthracite output 25,000

shows

lure, ' and

advertising

Ohio citizens were deceived
thereby.
'
/■ '
"
"That's as good as double in¬

terest

production

which

bank paying in¬
use
of your cash,"
a

many
-

coal

Page 114

to lend to more borrowers;
Revenue freight car loadings totaled 912,720 cars in week
—and so ad infinitum. ,* $ \ / Y <
;
> Aug. 30—Highest figure reached since Nov.
2, 1930.
At this stage the State of Ohio

money

ended

for

intervened,:;-applied

in¬

junction to prevent any further
dealings 7on the ground that the
corporataion was carrying on a
banking business without com-

'"''7'v-Y;YiPage "115

Y-

Commodity Price Average Registers Further Gains in Week Ended
Sept. 6 National Fertilizer Assn. reports.

7Yy: YVvyY'Y

YYy-

Page 114

General Motors Index World Prices.

plying with the state banking
Jaw, and the Supreme Court of
Ohio
effectually
protected
the
childlike
citizenry
from
any

Page 114
Samuel Shaw Honored by

devised

scheme

"The

and

thority," the

Frcm

court said.

Ohio

First Page)

campaign. Whether there was

■!..

shortage

gas

fundamental

'7
;

Washington

(Continued from

that

\
v

the

! '

the disunity in which

not

he is

cabinet

and

Emergency,

the

interests

the

did

seriously.

cut

are

agitation.
know

the

what

rap

The

Washington editors hooted at
Ickes. ; One editor, indeed,
photographers

sent
Ickes'

place

the

out

country,

about 20 miles from Washing¬

take

ton,

700

gallon

oil

this

fuel

his.

official
in

times

national

emergency

the

ex¬

explo¬

should

able

coming,
taking the
under

executive,
thing.

point

move

is true,

the

oil.

cite
of

Oil

having been the

the

whole

Instead of being

this

the

another

em¬

showed the lack of confidence

another

opin¬

V '
.„

in. public

rap

iiV

set-up for
'£kf«Jhfnpi*T which it .seems
J? S°inf ,to .be developed in the
-S'
n°t be
Ick®s creating the oil scare to

3 fal
f^s know to be the truth, but of
wh

in Ickes.

the East¬

ern seaboard have been put
to a
Further¬
Then, when questioning voices lot of inconvenience.
more,
there are stories wafting
began to be raised all over the

companies originating it

It
with

festly

truly

the

New

out

amazing
Dealers

make

against business,

how,
mani¬

born

was

Trust

Y,,Y

Newark,

New

Jersey,

have

February

appointed Cashier January 12, 1921, and Vice-President & Cashier
12, 1928.
When the Chemical National Bank became a
State institution on June 30, 1929, he was made Vice-President &
Secretary. Mr. Shaw is Secretary of the New York Clearing House
Association and a member of the Special Sub-Committee.
He is
January

also

member of the Baltusrol Golf Club.

business

themselves

'*•

case

so many rep¬

gating field, but if he is but half

per¬

become

X-Y:'y vlY'J'.Y

a
•

good in this instance, the chances
that

are

will

able

use

Hollywood's

own
set-up against
For one thing, he
Hollywood has moved in on it.
can
ask
Washington-in high glee for the how the Hollywood Reporter can
investigation by a Senate sub¬ support the coverage it is getting.
committee of the charge by iso¬
It promises to
be a

that

the

movies
.

long

good

have

propagandizing
for
this
country's entrance*into the war.
In typical Hollywood fashion,, it
is intended to burlesque the in¬
vestigation and make fools out of
the Senators. - The Hollywood Re¬
porter, ; a paper with less than
10,000 circulation, has employed
several
high priced, writers for
this purpose, and the industry has
engaged Wendell Willkie.
; ' ;
This writer from

'?L

Secretary, Chemical Bank & Trust Company.

115

been

maybe it isn't.

meantime, motorists

the Citizens National Bank, of which Mr. Shaw was appointed As¬
on November 17, 1919.;
After the merger of the Citi¬
zens National Bank, and the Chemical National Bank in
1920, he was

lationists

instance

untrustworthiness

ion.

Shaw

party to it.'

"big"
business, ' the
"oil
moguls."
Business will take

Maybej

Bank

sistant Cashier

mit

The to Pursue their selfish interests
and what better evidence of this
"big" oil companies, according to
than the fact that the campaign
the picture, did not want to avail
was
Jturned over to an official of
themselves of the railroad facili¬
one
of the big companies?
ties for selfish reasons.
In the
this

Chemical

1877 and entered the employ of the Ninth National Bank on Septem¬
ber 13, 1891.
Through a series of mergers, that institution became

approximately

resentatives

barrassed, he will be able to

seem

President,

the

Standard

year

administrator

very

which

editor would

cabinet

administrator

stepped

Well,!™**Jk

the

was

the fact that
do

and

tank

It is doubtful that the
filled with oil, but

place.
tank

pictures

this explanation would

instead

$56,000

be-

the

comes,

seems

will

contro¬

over-simplification, to say
least.
But the point is
that, that is the picture which the
Senate committee is developing.
It is developing a picture that in
the first instance, there is really
no
oil shortage.
Then, who is
responsible for the scare?
the railroad people say they,have
had
plenty of tank cars with

expenses.

circumstances, for having ori¬
ginated the oil shortage cam¬
paign in the first instance,

writer

commit¬

the

When

Ickes,

pipe line to
seaboard, and

Davies.

sion

ramifications

picture

plosion

Eastern

they took

versy

ap¬

President

the

this

Mr.

responsible
This

down
Into

the gas short¬
age
bugaboo to put over their
project, iWhen one goes into all
the

Nation¬

had been

serve

that

member of

administrator.

fuel

editors,

Ickes'

take

After all,

pointed

selfish

standing, to erect

finds itself, that
editors, particular-

Washington

the

«.

vacation. 1

doesn't

country

;

people

newspaper

Davies, to take charge of the glad to have the closings of fillcrusade.
And he, himself, went ing
stations because they could

for

was

purpose

Mr.

Now, a C, Senate % committeeis
looking into the whole mess and
somebody is going to be hurt.
What the committee is developing
so far is that there has really been
no gas shortage but that a lot of

Frank K. Houston,

Y' .'

Mr.

should be 7 tee's final findings will be.
So
made war conscious through
far, it has painted a picture of
the spirit of sacrifice.
It was
there being a desire on the part
rather an amazing commen-.
of the big oil companies, of long
tary

not, Ickes"

Page 128

place about whether there was about Washington, the greatest
really a shortage of gas, Ickes propaganda factory in the country,
picked out a Dollar-a-Year man, that the "big" oil companies were

off

Mr.

YYVyY-Y'.'-'Y
directors, officers and employees who
been in the bank's employ for twenty-five years or more.
of

at¬

tempted is ingenious and attrac¬
tive, but at least to the extent of
soliciting and receiving such de¬
posits! of bonds the corporation
jwas engaged in the banking busi¬
ness, and was acting without au¬

left to right:

Mr. John F. Flaacke, Asst.

Chemical Bank and Trust Company.

further loss.

From

Company; Mr. Percy H. Johnston, Chairman, Chemical Bank & Trust Company;
Samuel Shaw, Secretary & Vice-President, Chemical Bank & Trust Company;

Mr.

show, with Hollywood
ing out on the wrong

out

have

the

particularly needed
stance.
as

waded

out.

in this in-

rate, it looks

■

•

■-

with

its chin
vY...'

Correction

any

ability

though the movie industry

has
;

pro-

paganda end—if Worth Clark
turns

com-

The

Financial Chronicle of
Washington experience, has never September 4th it was
reported
known anybody to take a Senate that Meredith
Kilgore has been
committee for

ride.

years

has too

marty advantages. ^ However, the
Senate has lost many of its good

transferred from the Tulsa
office
Francis, Bro. & Co. to the
firms main office in St.

investigators.

Mo.

seen

what

Worth

sort

Clark

It
of
of

remains
a

Louis,

are

informed

that

job, Senator Kilgore has been selected to

Mr.
fill

Idaho, who is the
vacancy
as
Oklahoma re¬
chairman of this particular com¬ presentative of
the Tulsa office
mittee, is able to do.
He is a of Francis, Bro. &
man

with

proven

Co, Kennedy

plenty of ability, un- Building, caused by the
resigna¬
in the Senatorial investi¬ tion of Robert B. Ewin. u

Full text of Commercial and Financial Chronicle : September 11, 1941, Vol. 154, No. 3979, Section 2

FRASER