Full text of Commercial and Financial Chronicle : September 11, 1947, Vol. 166, No. 4628

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BUS.

SEF 12 194/

ADM.,; .r"'
ESTABLISHED 1839

Reg. U. S. Pat. Office

Volume

Number 4628

166

New

York, N. Y., Thursday, September 11, 1947

Price 30 Cents

Secretary Bevies Proposal
By WALTER E. SPAHR

By J. ANTON de HAAS

Professor of Economics, New York
University

and importance of foreign trade
in advancing civilization and ar¬
out

can

other credit.

save

world

been

able

mind

and

give

psychologists have
probe the human

the reason for
many strange actions on part of
the
public.
.•
us

saddest

The

thing
have
is

that

who

mal,

trolled

tions.

ious
this

one

with

in¬
peo¬

ple;

and
argument
fered
Harold

Giuck

given course of action as
"foreign"; and
an
undesirable
feeling takes possession of many
people. Or if you use the word
"international," it will suffice to
give some people heart failure.
Any half baked rabble rouser
can
sjtir up trouble by talking
about "foreign trade" or "intera

the
of¬

Walter

Spahr

if possible,

even

It is natural, therefore, that

in¬

formed and responsible people in
both the United States and Britain
should be disturbed by the utter¬
Efforts to find

the

(Continued
[These
nent

ity

were

page

reflections

futile.

that

best

ration¬

some

ality in the proposal
Apparently,

the

24)

British Foreign Secretary
suggestion
before
the
Union Congress in South -

port, England, Sept. 3, have been
prepared specially for the "Chron¬

Poke

mind toward

creatpg a favorable attitude in the public
plait,-program, procedure or notion long

almost treason not to
support some course of action yet to
be determined, a course of

action, however, which has been
given a shrewdly selected label. President Roosevelt and
his political general staff were
past masters in the art.

was

ever

Lithographing Co.

R. H. Johnson & Co.
Established,

mounted

only
to
$2,113,000,000.
What

convincing
Anton

prac¬

asked for that

Haas

the

of the United

business¬

States backed

by the eriqrmou§ resources Of this
country and by the productive
capacity of the "free American
system"
were
conquering
the
world's markets.
We pointed with pride at this
remarkable increase in our export
activity and regarded it as evi¬
dence

business
Latin,

be questioned, however, whether the

the

exports

political tactic, this business

thing advocated has taken definite form. Neither
technique new which undertakes to make it appear
evidence of stupidity or, worse,
positively anti-social or

It may

out¬

in Europe

is the

tice

the

proof could be

people.

some

before the

was

Our

men

systematically

war

the efficiency
enterprise.

America,

(Continued

the

Far

page

our

East,

26)

fully developed, more astutely em¬
ployed or more vigorously pressed than is now the
case
with reference to this
thing they all so glibly
more

J(Continued

page

25)

State and

icle."—EDITOR.]

Havana

★

a new

record

for at the time
break

Of course, it is not

emi¬
author¬

Bevin's

American monetary

Trades

(Continued on page 31)

Pig in

;

old

was

record

•

directed at the rank and file of the American

sup¬

port of it was,
less defensible.

ance.

what

then

r," figure of $8,228,000,000 in
ex ports.
A

adage to the effect that it is never wise
to "buy a pig in a
poke."- Since they seem so determined
to influence public
opinion with the employment of slogans,
it may be well to remind "Marshall Plan"
evangelists of
this homely but sound and
timely aphorism. Still more to
the point would be an effective
suggestion of the sort

associ¬

formed

find

We See It

Selling
There is

■

no¬

itself
what

ate

people lose the

mem¬

capacity to think
clearly.
An
emotional block takes place as a
result of "name calling.'' Desig¬
nate

one

British

would

parts of
country
you

expect

not

and

increasing the

reason-

tion

words in var¬

;

what

The American
people have always regarded large exports as a
blessing.
Shortly after the first World War, we pointed with pride

the

ber. The

certain

accomplishment under present situation. Looks for
price declines when exports fall off, and denies raising value of
gold will help foreign trade or domestic economy.

was

tion

areas

cabinet

high
degree
by his emo¬

but doubts its

EDITORIAL

the devastated

from

con¬

for¬

gold

<$>

■

ani¬

Relations

University

power

ably

posed to be a
rational

purchas-

ing

not

sup¬

Harvard

would

man,

* is

Foreign Secretary Bevin's proposal of Sept. 3 that the

United States distribute its
gold supply "to assist in

world"

learned

recovery

International

Business,

tending loans to maintain exports.
will be generally
repaid, and predicts probable reduction of export
level from $15 billions to $6 billions.
Holds increase in world
trade only remedy in
restoring normal foreign trade conditions,

their real market value.

British
Our modern

Instead, he declares, for real world

eign currencies should be soundly stabilized and anchored

by charity. Holds nations
clamoring for help threaten to
ruin our foreign trade.

collapse after First World
period are repeated by exSees unlikelihood that loans

Spahr characterizes Britisher's suggestion for redistribution of
Fort Knox gold as irrational and
unprecedented from a friendly
nation. States step would
destroy value of our money, deposits, and
*

attacks idea that U. S.

Professor

School

Dr. de Haas reviews export boom and
War and indicates same errors of that

Dr.

it is a two-way affair. Points
fallacy of isolationsim and

Ziegler

Graduate

Monetary Policy

Writer calls attention to antiquity

gues

William

Executive Vice-President, Economists' National
Committee

By HAROLD GLUCK, Ph.D.

Copy

STATE

Municipal

MUNICIPAL

and

Bonds

1927

—

INVESTMENT SECURITIES

Hirsch & Co.
Members New York Stock Exchange
and other Exchanges

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I

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THE CITY OF NEW YORK

Bond

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Electric Company
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and Dealers

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on

request

Members New York Stock Exchange

CLEVELAND

MEMBER LOS

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Toronto

for Banks, Brokers

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(Incorporated)
Established

REDLANDS

ANGEIES STOC^EXCH ANGE
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HAnover 2-01

$1.25 Conv. Preferred

OTIS & CO.
.

Montreal

^Universal Winding Company
*Prospectm

t.
'1*

•

Conv.

*Twin Coach Company

Distributors of Municipal
and

S. SPRING

N. Y.

Teletype NY 1-395

New York

Solar Aircraft Company

626

THE CHASE

Security Dealers Assn.

WILLIAM ST.,

Raytheon Manufacturing Co.

SINCE 1927

Investment Securities

CO.

Members

Syracuse

Dallas

Pittsburgh

Bond Department

THE NATIONAL CITY BANK HART SMITH &

Broadway, New York 5, N. Y.
Telephone:

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Bell Teletype:

Hardy & Co.
Members New York Stock Exchange
Members New

York Curb Exchange

30 Broad St.

New York 4

2-8600

NY 1-635

Tel. DIgby

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IRAHAUPT&CO.
Members

Broadway, N. Y. JL-

111
REctor

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Principal Exchange*; j

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and other

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THE

(1002)

COMMERCIAL

FINANCIAL CHRONICLE

Alabama &

H. WEINWURM

ERNEST

Writer says

failure of the British Treasury recalls Keynes' criticism of 1925. ■ Holds dollar deficit in
1947 results from British expenditures outside United States and the breakdown of Sterling Block as
well as need to make concessions to holders of "blocked" sterling balances.
Contends foreign central

Assoc. Electric Co. 5/61
BOUGHT—SOLD—QUOTED

banks contributed

by creating additional "transferable" sterling accounts.

distinction between "free current" and "controlled capital" transactions

New York Hanseatic

tion of

and confidence have suffered another blow.

caught
e

Savoy Plaza

been

said

and

been

eve r

shed

the real

those who tried in vain to call at¬

Vapor Car Heating

even

Common

bewil-

dered

Members New York Curb Exchange

Telephone COrtlandt 7-1070

from

System Teletype NY 1-1548

| appraise

correctly

the

.will

Common and
v

•'

Rights
r

real

•

as he had done in previous
emergencies.
He hardly would

Request

]VfcpONNELL & (fr.

had

when

could
the

become

1 The

evident.

New

York

120

Stock

REctor

calculation?

the

120

;

tiohally reticent British Treasury
fidential
clusions

Economic

By MACKENZIE STEVENS*

Director of

from

files.
will

Preliminary
have

whatever

data

(Continued

IJ.

„

Iron

Steel

S. Finishing com.

pfd.

Electric Bd. & Share Stubs
New

Eng. Electric System
Gen'l Aniline & Film "A"
Hooker Electro Chemical
com.

Title

United

Trust

Terminal 3^-47
New

Piece

United

England

Dye

Artists

Wks.

Theatre

Central States Elec.
,

Common

con¬

Detroit Ml

Aetna Standard Eng.

Shortage

Warner & Swasey

Established! 1923
Members New

Foundation Co.
Lea Fabrics

away

tated

s '

■«

lions

very dangerous and very
usual malady. Tt is a mental

dition which

senti¬

otu^i

Members N. Y. Security Dealers Assn.

Hanover 2-4850

©ell Teletypes—NY 1-1126 & 1127

Trading Markets En
American-La France

'
Grimteli
^Standard Milling Company
^Standard Ry. Equipment Mfg.

Prospectus available
and

banks

and

that

make

swore

mistake

But

Members

since

this

last

war

Teletype NY 1-609

New

Chicago

we've

Asst.

Mgr.

York Curb Exchange J
Stock Exchange

un¬

been doing exactly the same thing

39 Broadway

con¬

again.- We've passed out
some $15 billions since the war
with very little more consider a-r

Digby 4-3122

all

best be described

can

wrong with

over

fixed

by the
check

to somebody.

After the

ness

the

economics

and

sailor

than

New York 6
Teletype NY 1-1610

tribution of his wages after a

voyage.
tried to

the dis¬

gives to

Republic

long

Yet the countries we've
help seem to be in no bet¬

Natural Gas

previous World War

ter condition than they were a
wef wrote checks for loans by the year ago. Will we never learn?
Mackenzie Stevens
billions of dollars for reconstruc¬
tion of Europe. We provided no
®><S Marsha"' Plan Approach
repayable
loans? - Shades
of
our * Yankee
practical methods to receive. re-,
The Marshall Plan approach to
forefathers! Why must we alone payment, however, and in fact we the problem of European recon¬
made repayment in goods doubly struction is by far the most statesj *An address by Mr. Stevens be¬
difficult through high tariffs. Our man-like development thus far,
fore the Export Managers' Club debtors, glad of any excuse to do inasmuch as we insist that these
of New York, New York City, sol repudiated these billions of re¬ countries shall get together and:
construction loans under the guise
Sept 9, 1947.
(Continued on page 32)

Bought—Sold—Quoted

•

We Maintain Active Markets in U. Si FUNDS for
l

Canadian Banks

;

Members

-i

New York Security Dealers Ass'n

American Gas & Power

Air Products, Inc. Com. & "A"

Company

Detroit Harvester Co. Com.

United Kingdom 4 % '90
Rhodesian

Canadian Mines

Selection

3-5s of 1953

Gaumont-British

Emery Air Freight Corp.

3-6s of-1953

Common

Canadian Utilities
Canadian

Securities

Department

Scophony, Ltd.
British

Securities

•

Bought

—-

Sold

Quoted

—r

^Georgia Hardwood Lumber Co.
Common

Department

Goodbody & Co.
Members N, Y. Stock Exchange and Other Principal Exchanges
115 BROADWAY
Telephone BArclay 7-0100

NEW YORK 6, N.Y.
Teletype NY 1-672

J-G-White 6 Company
INCORPORATED

NEW YORK 5

37 WALL STREET

...

ESTABLISHED 1890

■

request

Reynolds & Co.

Slock Exchange

Broadway, New York 5, N. Y.

Telephohb:' REctor 2-8600

Tele. NY 1-1815

Tel. HAnover 2-9300

Members New York
120

/■

♦

*Prospectus

only

WHitehall 4-4970

KANE,

Joseph McManus & Co.

v
ST., N. Y. 5

debts,'5

never

drunken

world

Standard Stoker

^Tennessee Gas & Transmission

can

sinbpie devise of writing

dol¬

Canadian Industrials

;

MICHAEL HEANEY, Mgr.

WALTER

tioh of the realities of sound busi¬

;

Giddings & Lewis

dealers

Securities

everything that's

Dictaphone
General Portland Cement

HAnover 2-9470

Curb and Unlisted

j "Checkitis." The most char¬
acteristic symptom of this mental
disease is the blind delusion that

worth of
products
must be gifts,
grants, or un-

our

Exchange

NEW YORK 5

•

Teletype NY 1-1140

"war

wcfd

lars

ArgoOil

64 WALL ST.

again.

it; for granted
that these biW

•

nations always give
we have?
Why not

America today is troubled with

war

areas

the
what

trade?

onstrue-

mentality

Time, Inc.

37 Wall St., N. Y. 5

among

re-

this that takes

HaytianCorp.
Int'I Detrola

avail¬

for

what

Hood Chemical

York Curb

re-•

the world. But

Moxie Common
f

these

tion
>

Newmarket Mfg.

Candy

Frank C. Masterson & Co.

•"

We recognize the difficulties under which our friends acros^ the se% are
laboring. We
sympathize with them in these difficulties.
We are the greatest single source of machin¬
ery, equipment,-capita^ and technical know-how in the world today; and we want to make

Punta Alegre Sugar

{

Bridge

now

a delusion, Mr. Stevens lays difficulties of most countries to de~
ficiency of production and to tack of faith in tjeir governments and currencies. Blames exchange regula¬
tion?, which require the sale of dollars at half then value or less, for creating dollar scarcity and says
monetary mismanagement in Europe is disguised as "dollar shortage."
Urges more realism in our for¬
eign aid program and end of the "Uncle Sap" policy of giving out goods and credits without getting
in exchange other goods and services.

able

Boston & Maine R.R.

(Va.)

Stock

Asserting so-called dollar shortage is

sources

Dumont Laboratories

; 'V

Teletype NY 1-1227

rts.

Guaranty

Boston

Northern

2-4230

30)

page

Stock Exchange

Broadway, N. Y. 5
WOrth

BeU

drawn

J are

Export Distribution, Reynolds Metals Co.

CLetualTUarUeli Qu

;

^embers Baltimpre

best-in¬

Former Chief of American Far East Economic Commission

Taylor Wharton

& Pfd.

such

should be willing to open its con¬

The So-Called Dollar

2-7815

;

' Com.

Loft

Exchange

BROADWAY, NEW YORK 5
Tel.

•

Pfd.

Newspaper Machinery

Exchange

Curb

York

New

Wood

Consequences of Mr.
Cbut-chill, reprinted in Essays in Per¬
suasion, London, 1931, MacmiftaA.

thus

American Yvette, Com. &

Obviously, no final answers may
pe expected at this time. But the
public cannot wait until all inform
mation is available and the tradi^

developments

May, McEwen & Kaiser Co.

the

Kingan & Co.„ Com. & Pfd.

the • recip¬

were

Steel

National Dyeing & Printing

formed experts.

British

true

branch effices

Scale, Com. & Pfd.

Members

time

to
get
identify

Second, the basic
large claims
presented, far' beyond

why

reasons

the
Ex¬ of
personal inefficiencies. It is
Treasury—
important to ascertain- why first
unwarranted and
class experts (and ^r- Dalton himhard-to-explain optimism even at
a

our

last few months.

who persisted in

Prospectus

facts

which

ients of the dollars pouped out by
the British Treasury during the

'have hesitated to suggest reason¬

Chancellor

chequer—the

First,

available
countries

from
revealing. .off-the-record ably rather than doctrinaire poli¬
maneuverings among officials who cies.
did hot prove equal to the big
There
is
an
urgent need
to
ta.sks they were confronted with.
determine
the
true ■ facts : and
Heavy responsibility undoubt¬ reasons why convertibility failed
edly falls upon Dr. Hugh Dalton, —far -beyond any -.considerations

British

•

,•

laying down future poli¬

clarification.

•

Bought—Sold—-Quoted
t

NY 1-1557

Sweets
Howe

Two principal questions require

Direct wires to

cies.

age!

Ernest H. Weinwurro

ence

bring to bear his vision and.cour¬

blaming

Exchange

Now Orleans, La.-Birmingham, Ala.

pitfalls in the. future and to take
advantage of that bitter- experi¬

and reliance on unworkable
traditional: positions. It is a pity
"that Lord Keynes could no longer

•

individuals

Stock

Only by clarifying past errors
will it be possible to avoid similar

standard. resumption

'forces

g*a i n e d

•

gold

'to

and

Little

31 Nassau Street, New York 5

reminded

Maynard

;192|5.1 There is the same inability

confused than
before.'

strongly

Keynes' brilliant
,critical comments on the activities
of Treasury experts at the time

seem

One

John

people

many

York

St., New York 4, N. Y.

astray in this instance.

and disappointments.

New

25 Broad

an economist of excellent
reputation) could be led so far

tention to the unavoidable dangers

events and

Vantferhoef & Robinson

explain developments which

HAnover 2-0700

causes

the

sincere efforts : of self is

frustrated the

un-

little light has

Savoy Plaza

Steiner,Rouse&Co.
Members

recent weeks

written

xpectedly.

How

3/6s, 1956

has

most

observers

Hooker Electrochemical

B o ught—Sold—Quoted

shocking debacle of sterling convertibility after less than six weeks of operation
attention.
The already shaky foundations of international trust

Much

Bell

Sees the Brelton Woods
unrealistic. Holds resump¬

has aroused worldwide

Teletype NY 1-583

Class "A"

Louisiana Securities

convertibility is impracticable without long-term consolidation of British foreign debts.

The

Corporation
120 Broadway, New York 5
7-5660

11, j!• t)

Why Sterling Convertibility Conld Not Succeed

Cities Service Co. 3/77

BArclay

Thursday, Septemi

Bell

Teletype: NY; l-f$6

~:v:i

Si'v,*.

Volume 166

Number 4628

THE

COMMERCIAL

FINANCIAL

CHRONICLE

(1003)

INDEX
Articles

and

News

Page

Exports and Our National Economy—J. Anton Haas
On Secretary Kevin's Proposal—Walter E.

Meditations

Cover

Spahr

„___Cover

foreign Trade—Harold Gluck^_„„

CALL

Cover

Why Sterling Convertibility Could Not Succeed
—Ernest

Weinwurm

Stevens____

What Happens When Dealers in Securities Aren't
Their Heads

Stock Market
The Business

Against

Writer contends Securities Acts and

■

Bumping

and brokers.

Outlook—Q. Forrest Walker

Buckley..,,.

Rio Results

British Dumping of American

—L.

•

Scudder

many: years
of unjust and unsound restrictions that
have
uted to the present difficulties which

C. Shook.
A. Morse

....

and

resent

Exports and the Business Outlook

still

(Interest Rate Possibilities)

Sept. 28____

Holds Marshall Plan Essential Curb to
Russia..

World Bank Barred from
Extending Interim Relief,
Officials Confirm

nose

Canadian

Coming
■

Securities

Events

Field.

Our

Reporter

—

the

Observations—A. Wilfred May

Our

Reporter's. Report.*—,

Investment

4--.:

Public

Real

Washington

News—Carlisle

Indications of
Mutual

the

Activity...

(Walter

""""See

The
;

Twice

Weekly

COMMERCIAL

and

Reg, U,

S. Patent Office

$25.00

WILLIAM B. DANA COMPANY, Publishers
25. Park Place,

REctor

New York 8,

2-9570

N. Y.

9576

WILLIAM

SEIBERT, President !

RIGGS,

;{
,

■"

Other

Offices:

135

ba made

S:/ La

York

Subscription#: in.Unite&States,

■

look at

face.

keep

something that is

Let

bumping

sweep away

obvious

funds.

page

New York 4, N. Y.

3-0272—Teletype NY

1-956

►any
BOUGHT— SOLD

—

QUOTED

our

FIRST COLONY

the

CORPORATION

52 Wall St

New York 5, N. Y.

Tel. HA 2-8080

Tele. NY l-242i

Established 1856

H. Hentz & Co.

recent Chicago Transit
And why do you think this

the top.

over

Members
r

New

York

Stock

Exchange

New

York

Curb

Exchange

Cotton

Exchange

New

York

Commodity

Chicago

Exchange,

Board

New Orleans Cotton

And other

N. Y. Cotton
NEW

Inc.
Trade

Exchange

Exchanges

Exchange Bldg.

YORK

CHICAGO

4, N. Y.

DETROIT

PITTSBURGH

GENEVA, SWITZERLAND

20)

are

interested in offerings of

B. V. D.

High Grade Public Utility and Industrial

Corporation

PREFERRED STOCKS

Prudence Co..

Members New York Stock Exchange ■

15 Broad

of
.

;

St., N.T. 5

Stock

Members New Y-orti Curb Exchange

135 S. La SalLe St.,

Broad Street,,New York 4
Tel.: HAnover 2-4300

Exchange

WHiteHaH 44330

Bell Teletype NY

.■

1.2033

:-v,

Albany.

Boston

Teletype—NY 1-5
-

Glans. Falls

Chicago 3

C. E.
^

Tel.: And over 4690

•**

★

—

llnterberg & Co.

Members M Y.

Security Dealers

61 Broadway, NewYork (fc NlY
•

Schenectady

—

■

Newburger, Loeb & C<

S.I

1st

N. Y. Title & Mtge. Co,

Members New .York

Possessions, Territories and Members
Pan-American Union, $33.00 per year;

Better still, could it be that the powers that pull the
strings on such matters took the wall away for a change?
For the first time in
years a pre-selling, beat the gun cam¬
paign was»conducted by the World Bank and everybody
knew-that the green
light was on and with the tacit consent
of the SEC
too, if you will. You heard the bonds were sure
to go to a
premium a Week before the offering. When you
wapt to sell something you make it attractive and that is
one of the best
ways in the world to do it. And another thing

Lawyers Mortgage Co.

Subscription Rates
>

New

WHitehall

International Bank Bonds and fhe

Lawyers Title & Guar. Co.

25,

extra.)

Bond & Mtge. Guar. Co.

second-class matter Febru¬

1942^- at the post • office at New
York,
N. Y., under the Act of March
8f 1.879.
»

ary

Record—Monthly,

(Foreign postage

Members New York Security Dealers Assn.

25 Broad St.,

■

CERTIFICATES

Salle

-Camp-any'

year

year.

must

our

(Continued

Coypright 1947 by William B. Dana
Reentered

per

Susquehanna Mills

court would

TITLE COMPANY

Quotation

year.

Business Manager

Sfe,.
Chicago 3, 111.' (Telephone: State ,0613);
1 Drapers' Gardens, London, E,
C.,, England, c/o Edwards & Smith.

•'

$38.00

the rate, of exchange^ remittances for for¬
eign subscriptions and advertisements,

Ktate and city news,

page 9.

per

phenomenal selling job was so successful? Could it be that
we
stopped bumping our heads against the wall?

Note—On5 account of the
fluctuations in

Every Thursday (general news and. adwertislng issue); and. every Monday (com¬
plete statistical issue — market quotation
records/ corporation news, bank clearings,

■

Earnings
Record — Monthly,
$25.00 per year.
(Foreign postage extra,:)

Thursday, Sept. 11, 1947

Sugar

Authority Bonds

Other Publications

and
per

the

Monthly

HERBERT D. SEIBERT, Editor & Publisher
DANA

;

WILLIAM

Industry

Bank

Markets

article

FINANCIAL CHRONICLE

_•

Registration—?

Canada,
Countries, $42.00

Other

«">*-

Whyte Says).—

Dominion

Washington and You.——

NSTA Notes

>_1.

Now

....

Published

—

Salesman's Corner..—,
in

Securities

Tomorrow's

Banks and Bankers...'

News About

Securities—

Securities

The State of Trade and

Bargeron...

Funds

;

Securities

\-_._

^Business

19
-

Securities

Estate

Ahead; of

Governments--.

Utility

Railroad

Recommendations

Einzig—A Pill Against
Earthquake'

Prospective Security. Offerings

Dealer-Broker, Investment

Frorh

not

few cobwebs and
have a look at two
very important events which have hap¬
pened during the past few weeks. Two
very large and sup¬
posedly difficult underwritings were offered to the investing
public and they were sold under the most
trying conditions.
Bad times, summer
doldrums, the unfavorable foreign situat¬
ion, lack of public familiarity with the security behind both
issues, all this couldn't stop the steam rollers that pushpd

Page

—Cover

Stocks..-.—

it's

Now let

Regular Features
Pa&e

SAYS THE REICHSTAG! And
heads against that same old wall-

Whether

industry get together-it some INFORMAL gathering. But
as soon as there is a
public meeting and a big-wig from the
exchanges, the SEC or NASD shows up you would think
that
everybody present was1 100%- behind everything that
has hamstrung our business for the
past 14 years. .YAH!

.....

Australia Sells Gold to Britain.....

(Editorial):

U. S.

their convictions than truckle down to
any
tion. All these
things you can hear discussed with fervor
and candor when the rank and file members
of the securities

and Insurance

Alegre Sugar

Lea Fabrics

for
such organiza

Compared

Bank

Punta

They

North and South American Stock
Exchange Activities to Be

As We See It

System Teletype N. Y. 1-714

Haytian Corporation

WITH

wholesale prices just because those dealers
may "not give a
tinker's hoot for the NASD and would
rather stick

Reports Marked Decline in Savings

INTERFERENCE

so
rule, they
pretty raw deal that some dealers are
from; the privilege of buying merchandise at

think

excluded

Houses Are Not Being Priced Out of the
market......

New Jersey Newspapers Increase Prices

REGULATORY

underwritings except at the same price paid by the public
very likely is a government sponsored violation of the anti¬
trust statutes.

Broadway

Bell

in
23

American Bankers Convention to
Open

Established 1908
Members N. Y, Security Dealers Assn.
REctor 2-4500—120

agree
that the
monopolistic exclusion of non-members of the Na¬
tional Association of Securities
Dealers from participation

Superiority Increasing—Sen. Brien McMahon

Correction

J.K.Rice,Jr.&Co.

THEIR MARK-UP AND PRICING
POLICIES.

Keep Up Selling to Avoid Depression!-—Paul G.
Hoffman...

among

fear

Argentina Reflects Prosperity of War Years—Joseph W. Rowe 21

Advertising—Roger Babson

Finishing Com. & Pfd.

Central Hanover Bk. & Tr.

strange that many securities men will continually
themselves and express the frank conviction that
over-regulation is the bane of our business. They will come
out
openly and condemn the ambiguities, petty restraints and
restrictive provisions of the Securities Acts.
They openly
talk

Haile Mines
U. S.

It is

Labor—Philip Murray

largely contrib¬
plague us and retard

efforts.

our

—Secy. Lewis B. Schwellenbach—

was doing such a foolish
replied, "It feels so good

Someday those of us who are engaged in the
look about us and' realize that fof
we have been bumping our, heads
against a wall

Peace-Making Must Not Be Deferred—Sen. Walter F. George 19

U. S. Atom

Hoviug Corp.
Jack & Heintz

securities business
may

Pay Rises Are the Workers' Right

Radio

4-6551

why he

you will remember that he
when I stop."

Vandenberg 12

—Louis Dolivet

A Challenge to

STREET, NEW YORK

Telephone:. WHiteball

joke about a dull fellow who kept
bumping his head against a wall. When

thing

Labor's Policies Must Be Worldwide—David

99 WALL

of !

worn

of his friends asked him

one

Causes and Remedies of European Economic Distress

Business Slow-Up Ahead—Robert

evidence

bonds.

Aeronca Aircraft Com. & Pfd.

There is a.time
himself occupied
by

Securities Improbable

Mott„_...————

concrete

those

and

Inspiration—Secy. George C. Marshall

Authority Bonds

stocks

;

of sale of World Bank Debentures

success

want bids

you

obsolete

largely

capital would flow into trade and industry without these
impediments.

The United States Will Help Her Friends—Pres. Truman

Inter-American Treaty a Milestone—Sen. Arthur

are

how

Duggan.—

Points to

and Chicago Transit

Farm Cash Income at All-Time High, But Vulnerable

—I.

Regulatory bodies

contributing factors in difficulties which plague investment bankers
3

Timing—Col. Herbert G. King

Wall Street Is Misunderstood—Julian G.

—if

Stone Wall?—John Dutton.

By JOHN BUTTON

The So-Called Dollar Shortage—Mackenzie

ME,

MISTER

Worcester

;

Telephone BOwliof Green 9-3565
Teletype NY 1-1666

Thursday, September 11,1947

CHRONICLE

COMMERCIAL & FINANCIAL

THE
4

(1004)

BUSINESS BUZZ

Stock Market Timing

Ward & Co.
EST: 1926

importance of time element in stock market
operations. Calls attention to work of floor traders, and concludes

Col. King points out

cast

y."

EcIII.

and

clesiastes
This

trend.

John Coleman, Emil
and Johnson, nnd
Eddie Stern, seem to have a sixth
sense that keeps them right with
the
trend.
It is fascinating to
watch these men work for they;
always seem to anticipate the un¬
expected. Fluctuations are gov¬
erned by the law of supply and
demend and these short pull trad¬
ers attempt to coincide their trad¬
ing
with
the ' proper
timing.
Seligman,

true

was

Roth,

in the time of

and

David

just as true
today
for
who

those

stock

the
market.

The

young

trade

Joseph understood this
when he inter¬

sidiaries is

important factor

The

were

cows

supplying textile manufac¬
and converters with a

turers

complete service consisting of
BLEACHING

simply what we now

of boom and
Every
businessman
only too well that the bad
years will eat up the good years
and that there are times when al¬
most any stock you buy will show
a profit and other times when no
stocks at all seem to be able to
depression.

passing through and the world
situation.
Daily fluctuations are
of no consequence to them.
They
are
mainly concerned with the

depends upon when you buy
well

SANFORIZING

the

ended June

1947 Aspinook,

30,

ex¬

clusive of its subsidiaries,

changes.

proximately

;

ap¬

in the stock market. He
"You can lose by being
wrong on the market and also
by being right too soon." How
true that is, Many of us have seen
traders who took a position in a
with

$7.38

each of its 1 78,250 shares!
of stock outstanding.
The
in

Aspinook interest

non-consolidated

ings

equals

subsidiaries

its

earn¬

additional $7.72

carry

EQUIVALENT TO $15.10

never

did come.

and they

back

could, get

operations, the natural ques¬

this is the time to buy.

opinion
The

In my

stocks?"

time ot buy

present

through

Exports and Business Outlook

about the present

"What

tion

passing

market

period of irregularity

Hugh W. Long & Co., sponsors of Mutual Funds, hold a decline
in our exports would not be unfavorable. Says giving away our

goods subtracts from our prosperity.

gives the investor ample op¬

that

How bitter it

and

bull

is to be

1948

market of

are

1950 will

have

shrewd

timed

their

investors

who

purchases

that they may bene¬
the rise.
Today's wise

in the business

success

taking advantage

undoubtedly

the

and

times

prosperous

very

bring huge profits to those

traders

their

This country is in for some

come.

entirely when it

missed the move

ment.

from

fit

depends upon

purchases should prove to be very

of the time ele¬
time element profitable, indeed.

To them the

business.!.
It

t f '

per

active

GAS & ELECTRIC CO.
Preferred

market

and

22 East 40th Street,

Special Report

and greater

decline

in¬

spending power.
in

exports

1
..

due 1956 -•—'/■ '

REcter 2 8700

Giving away goods is not essen¬
our prosperity. To the con¬

tial to

trary,! it subtracts from our real
prosperity.
Payment must be
made either by high taxes or ad¬
ditional
government borrowing.
High taxes are bad.

They reduce

the consumer's income

and ability

spend. They are reflected in
high prices and disturb the flow
of business funds into necessary

■"

•"

■

V "

Angeles

Members New York Security

PHONES

41 Broad Street

Bos. 2100

' "• INCORPORATED

,anyway,,,;;,. •, >.;.%f2_
year,, it was esti¬
government that ex¬
ports for 1947 would amount to

Earlier

gifts already appropriated,
possible financing through
the International Bank and the
International Monetary Fund, it

and

that

Mr.

government is powerful
enough to dominate the
money
market. This should
have read that it is foolish to

hold

Dealers Association

New York 4, N. Y.
.

this

mated by the

Wendin

stated

had

request

better. They

intensify the inflationary spiral.
In
effect, such borrowings; are
little more than indirect taxation

said, among other things,
that it is foolish to hold, the

was

Chemical

Seligman, Luhetkin &> '"Co.
* \*

1-1286-1287-1288

adjustment in

such purposes are no

"Chronicle" of Au¬

Detroit, and due to a typo-;' }
graphical' error in the sumji;
mary .preceding- the- same it >

Park, Inc.

Analyses on

the

_text pf a.speech made by Mr. ;
Sigurd R. Wendin, President; !
Heber-Fugin-Wendin Inc. of;'{

Corporation

Tennessee Products &

120 BROADWAY, N. Y. 5

Hartfd4im -Buff, 6024

upon a proper

gust 21 (page 4), under the
above caption, we carried the

Osgood Company "B"
Security Dealers Assn.

Direct Wires to

in¬

capital improvements and expan¬
sion. Government borrowings for

Interest Rate Possibilities

Teletype: NY 1-2948

Convertible Debentures

Fashion

ENTERPRISE

wage

trade.

fear
will

Correction

New York 16, N. Y.

Graham-Paige Motors

they too had

that

Corporation

Telephone: LExington 2-7300

Philadelphia, and Los

round

prices had declined fur¬

prices—an adjustment which may
not
be
possible except with a
more reasonable balance in export

prices

"prop", from under our
economy and contribute to a busi¬
ness recession. But this is looking
at only one side of the economic
house in which we live. The high
level of exports has accentuated a
shortage of many products and

ESTABMSHED 1927

Send for Our

Vn:!

abroad, pend

higher

this stock.

Af embtrs N. Y.

1947

creases

in ex-!

to,

Central National

fi. Y.

obtained

eliminate

EASTERN CORPORATION

6% Cumulative
maintain

tunate

•••

■

rise

Such "truths" have aroused

QUEENS BOROUGH
We

the

that

agricultural products

that

currently

selling under $30

true

farmers

come

f .i '-r t

Bought—Sold—Quoted at Net Prices
The Stock is

ports required more people to ther, as appeared possible a year
produce goods for export and that ago, before the bulge in exports
It is not too
their incomes were spent on what was experienced.
was left at home.
It is also true much to say that the longer-term
that because of the shipment of stability of our economy may de¬

PER SHARE OF ASPINOOK.
?

later he'd

it!"

It is a mistake, in our judgment, to conclude that the high level
of exports has added to our real prosperity and that a decline in
anticipated eventually portunity to accumulate his stocks.
exports at this time would be un-§>
happened
but
alas
they had Every time there is a sell-off, favorable. We believe that the thus has added to inflationary
bought too soon. Some unforseen those who have funds should pick
It
has
contributed
sharp rise in exports during the pressures.
accident occurred which scared
half of this year did our greatly to the current high price
up some good stocks and put them first
them
out of their position or
level of food and clothing, which
away for the long pull.
The big economy a great deal of harm. A
wiped them out. Then the stock
decline in exports to more reason¬ in turn has affected wage rates.
move in the market has
not yet
able ^levels
should not depress We might have avoided the unfor¬
got away from them and they

Floor

THE EARNINGS COMBINED

swallow

important factor in stock mar¬

ket

kept holding it, I knew sooner or

which they

the smartest men

ARE

right too soon.

share.

per

firm determination

it until the desired end
had been attained.
Their infor¬
mation
was
correct
and that
to

"The way he

element is such

Since the time

said,

stock

earnings of

reports

trend

the

with

ing

late

Dwight W. Morrow explaining to
a
friend
how
one
could lose
money

For the year

xf•

stay¬
until it

right time to buy and then

sell.

remember

economic cycle the country

in the

Therefore, successful buying

and when you

primarily interested

ent time, are

primarily a question of timing.

It all

PRINTING

seven

knows

floor trader
is the one who is mainly con¬
cerned with the long pull. These
are the men who make the great
fortuntes on the Exchange.
Men
like A1 Caspary, Eddie Bruns and
Sidney Rhinestein who are among
the most outstanding at the pres¬

call the cycle theory

rise.

DYEING

their

are

range

other type of

The

the seven fat

lean cows eating up

main concern.

dream.

aoh's

Leeds

Events

Phar¬

preted
Col. Herbert G. King

for peace, there

really the trend of the market
they always play with the
Shrewd traders like Jimm#

a w a

The

;

and

keep
time

is a time
that which is planted,- a time to

pluck up

plant and a time to

opportunity to

gives investor ample

for war and a time

"There is a time

and its sub¬

York Stock Exchange

irregularity in present market
accumulate stocks profitably.

This company

KING

COL. HERBERT G.

Member, New

the government

is NOT

powerful enough to dominate
the
money
market. The
"Chronicle " of course, regrets
this error,':
„•«
-.p
v;:A. r

was

believed

that an. estimated

$5 billion
drawing
bf
foreign,gq$ and dollar reserves.
These were* estimated at the be¬
,
i ginning-^* the. yea* > to. exceed
<j $20 biRiob/ v But Umports ' haVe
export balance of about
could
be financed by

down

not more than $1 billion

(Continued on page 8)

166

Volume

THE

Number 4628

!RONICLE

COMMERCIAL &. FINANCIAL

t
..

■■■

The

Production

Steel

•'

(1005)

,„k

Electric Output

Carioadings

THE BRITISH

realities of our past arid present international
financing activities.
Mr. Bevin's fairy tale to his people with its
"moral" that getting their hands on. rich and

greedy

Sam's yellow

Uncle

metal

Would

help
solve the world's economic crisis not only makes
clear to the American layman the true implica¬
tions of our gold dealings during the past decade,
but also strips the trappings which have obscured
the real nature of our financial operations since
the First World War,
_

For the Britisher's bland demand for the de¬
votion of our Fort Knox gold for "world revival"
is immediately recognized by the veriest tyro as

entailing the gift or subsidy process on our part.
thus fae also realizes that the First World
War's debt process, and our private investors'

And

large-scale buying of foreign bonds during the
following decade, constituted the indispensable
mechanics for subsidizing our foreign trade. Hitherto difficult of ex¬
planation by our economists, the actual subsidization involved in our
past gold policy has now been made quite clear by Mr. Bevin.
A. Wilfred

May

Our public, now

;

thirties,

realizes that our gold buying of the nineteen-?
has been often pointed out by this columnist and others,

but another round in

Food Price Index

Industry

Whatever deep home front

Commodity Price Index
Auto Production

and

ATTACK ON FORT KNOX

strategy may have motivated British
Foreign Secretary Bevin's call for "redistribution" of our Kentucky
gold store, his simply expressed dream has performed a signal service
for America in enabling our public now to understand the cold
i.

Retail Trade

State ol Trade

By A. WILFRED MAY

Business

Anglo Huronian Ltd. Irr,

Failures

Bulolo Gold

J
question that has been of immedi¬
to all has been and continues to be just how long business

Since the close of the war the
ate concern

that will promote the best

activity will be maintained at a level
whole.

interests of the country as a

appraisal of the future outlook, the September issue of
"Business Comment," a monthly bulletin of The Northern Trust CoriiIn

Dredging

Noranda Mines Ltd.

Steep Rock Iron Mines Ltd.

HUT SMITH & CO.

58 WILLIAM
ST., N. V, 5

HAnover 2-0980

Bell Teletype NY

of Chicago, observes that the dominant characteristic of the
present situation is that we are in the upper phase of a durable goods
pany

Now York

1-395

Montreal

Toronto

cycle that appears to have some distance yet to run. Developing its
observation, it notes that consumer expenditures pn durable goods
increasing and would be higher if more automobiles and other

are

items

available.

were

The

source,

this high demand.it finds arises,, not,

only fr°m

but also from a mass 'of new buyers
whose purchasing power is greater than before the war and who are
advancing their material standard of living.
A good many people, says the "Comment," are better off than
before the war, while others are worse off with the average on the
favorable side. Quoting the President's midyear economic report it

pent-up replacement. needs,

HODSON&

COMPANY,

Inc.

points put that the figures show in the forepart of this year per
capita income, after taxes and after allowance for the rise in the
cost of living, was 45% higher than the 1935-39 average and oyer
30% higher than in 1940. Determining the reason for the rise, it
notes that

165

greater portion of the total population is at work and

poker game where a winning player con¬
stantly gives back the chips to the losers, to keep the game going,
Our people, in addition to the technicians, now uriderstand more
fully that in 1934, in raising its buying price for the gold "chips" to
$35 an ounce, this country was increasing its subsidizing service
by 70%. At this rate for gold we gave 4.9 millions of dollars to

Broadway, New York

lines, particularly that of agriculture, output per worker has
risen substantially..
markets for all kinds of goods, but

was

the

United

Kingdom, approximately the same amount to Canada,
$924 million to South Africa, $348 million to Australia, and $403
million to India, which dollars have been used as the chips in exChange for acquiring our real wealth in the form of equivalent goods
and

services.

Now Mr. Bevin wants, to repeat

this

process

all

over

again, and have England and other foreign countries be given the
privilege of taking the Fort Knox gold, then sending it back to us
for twenty-one billions of dollars, and with these dollars in turn
acquiring their counterpart in our goods, This would be even more
Injurious than other devices used for giving away our goods, for
euch stripping from the Reserve Banks of their reserves against
their notes would utterly destroy the value of our country's money
and credit. But Mr. Bevin's suggestion furnishes the great benefit
for our public's thinking in making it clear
that, although he took
the precaution of asking for gold and not dollars, such double and
triple buying of gold as well as our other devices of international
transactions have been merely camouflage for covering, up foreigners'
ever-continuing import surpluses.
After Mr. Bevin's reductio ad
can determine future policy with
realism, in¬

ubsurdum Americans

cluding the amount of our patrimony we can afford to give away.
Mr, Bevin's epochal proposal has served a useful
purpose also
in further

enlightening-the American public about the basic philos¬

ophy of Britain's current Labor Government.
national

scale

combined

It reflects

on an.

inter¬

philosophy

of socialistic sharing-the^
wealth and purchasing power nostrums with collectivist barter eco¬

nomics.

It extends from the national to

Socialist

lieu

government's past overemphasis
production of wealth.

The advancement of such'a proposal

♦

the international scale the

to another)

and the illiteracy of its form

purchasing power; in

(from
are

one friendly nation
closely consistent with

the basic misconceptions of the Labor Government on its home front.
Witness the considered testimony, not of its political

opponents, but
Of "The Economist" of London, a respected authority which for
many
months sympathetically supported the Labor Government.
Under
the caption "A Curse on the Tinker," that authoritative
journal
bitterly reports that "it is by now clear that the Socialist Ministers
never had but one idea.
They have been so obsessed with getting
hold

the

controls

the

national

with seizing power
that they, have-never' stopped to think what
they are going to do
with it," And the same authority after referring to Food
Minister
Strachey's regulations as "soothing syrup," asks why there still is so
much unwillingness to face the facts.
r An all-important defect in the Labor Government's operations is
their half-way nature.
For example, although the government has
seen fit to bite off a large chunk of
planning, it has fallen woefully
short in directing such activities as capital expenditure and
the pro¬
duction of goods and services in pursuance to the national need.
So, as is the case with all Socialist movements, the British planners
have unwittingly maneuvered their economy into a condition halfeconomy,

slave and

half-free—indicating there, as well as in Mr. Bevin's mone¬
tary fantasies, that it is far on the road to its eventual collectivization

some

effedt of this rise in real income , in expanding the
particularly, for those characteris¬

The potent

tically associated with a higher standard of living, including better
houses, may have been underestimated, the bulletin asserts.
In
peacetime the attainment of' a higher living standard proceeds
gradually year after year. During the war many of the goods that
would have been in greater demand as a result of this were not
produced, at the same time that the ability to buy in larger quantity
was apparently increasing.
This means that several years' increment
in demand
not

is concentrated

initiated

until

here

the market

markets

now.

begin

of supply with demand for all makes,

hindrance to

mass

BONDS
with

Coupons Missing

saturated again
of

•

which generally

High prices, which are often cited
buying, must be appraised in relation to high

Gude, Winmill

">
.1

DIgby 4-7060

•

Blocked Balances
BOUGHT AND SOLD

;

hi.

with approval

industrial, output the past week showed, a slight, advance
level of the preceding week. As for employment arid
payrOllsr they continued steady at ia high level. In fact, total civilian
employment was reported to have surpassed all war and post-war
records, but hi the previous week the number of layoffs in some

blocked.

rose

in scattered

F. BLEIBTREU & CO., Inc.
79 Wall St., New York 5, N. Y.

areas.

Telephone HAnover 2-8681-2

disquieting piece of news at the close of the week was the
report that railroad officials fear a coal shortage this winter due
to a lack of 18,000 cars needed to transport coal. This compared
With a shortage at this time last year of 14,000 cars.
This news
followed a petition of the country's railroads to ICC in which they
seek freight increases averaging 26.8% and supplants the one filed pn
July 3, last, when/(a-16% average boost was sought. The carriers
on Tuesday of this week. were to seek
permission of the ICC to

Cables:

New York

Solofret,

INTERNATIONAL

ACCOUNTANTS SOCIETY

temporary 10% increase into effect immediately,

the

kindof

any

foreign exchange, free

the

industries

put a

of local controls.

•Markets quoted for

Total

above

Teletype NY 1-955

DANISH and SWEDISH

Co.

1 Wall St., New York 5, N. Y.

demand,
reduced,
an increased supply might not be forthcoming.
Should supply begin
to outrun demand, then price reductions would be salutary,
The other strong element in the domestic demand for goods and
labor, says the bulletin, is that from: business itselfl- Deferred replace¬
ment needs are reinforced by expansion programs to meet new market
potentials. In some industries/ such as the petroleum, electric power
and telephone, these programs are projected with a considerable
degree of certainty for some years ahead, while in others, the outlook
but unless labor, plant and materials are available or costs

is-much less clear;

Members New York Stock Exchange

lower prices would without. question increase the

wages;

•

has proved not to be true as yet.
as a

A recession should

relative to buying power. Difficulty in marketing certain makes
a line of goods should not be confused, the bulletin warns, with

catching

BIDS MADE

Mines, U. S. Department of Interior, estimates the
amount needed will total 5,220,000 barrels daily.
The forecast in¬
cludes estimates of total gasoline demand of 73.0 million barrels,
a yield of gasoline from crude oil of
41.5%, and total crude runs to
stills of 5,180,000 barrels daily.
The

Debenture 5s, 1968

oil in September, 1947,

current forecast of demand for crude

Bureau

output

industrial

machinery

oil

and

field

equipment
supplies
in some

showed some slight improvement; while farm machinery and
continued to be produced in limited quantities.
Layoffs

(Continued

page

Sell to return bViVc-lV&%
Small issue
company

long established
good earnings.

•

Seorge A. Rogers & Co., Inc.
42

Broadway, N, Yi 4
1

29)

DIgby 4-0133

Montgomery^!., Jersey Cily

both at home and abroad.

Ohio Match

Portland Electric Power
,

•

Universal Match

•

6s, 1950

•

Portland General Electric Com.

V-;.

LAMBORN & CO.,Inc.;
wall

Tennessee Gas & Transmission
i

■
___

When Distributed

Bought—Sold—Quoted

■

;

.SUGAR..

Raw—Refined—Liquid

FREDERIC H. HATCH t CO.,

Striker $ BROWN
50 BROAD
-

»>*-■
'

; TeLi

(.
ii

ruw

yo¥r

^,-NEW^OR&4,

HAnoverio2-3978
"

ii-rnifii

;

N.:
-v

INC.

"i Expdrts—Imports—Future

Established 1888

Y..; .:v-7;•
;

■'

Teletype NY 1-1582

63 Wall

MEMBERS N. Y. SECURITY DEALERS

Street, New York 5, N. % *'

•

•;
ASSOCIATION

street

new york 5, n. y.

Bel! TeletypeNYl-897

V-

Dlgby 4-272?'
-■

■

'•

r
•

*■

•:

& FINANCIAL CHRONICLE

COMMERCIAL

THE

(1006)

Wall Street Is Misunderstood

The Business Outlook
Q. FORREST WALKER*

By JULIAN G. BUCKLEY

Economist, R. H. Macy & Co., Inc.
t

Leading retail economist cautions against expectation of continuous expanding business. Warns of
customer resistance to rising prices, and ascribes heavy retail selling fo extensive use of past savings

|
i

f" and

credit. Contends present forces leading to'high business activity are temand advocates better balanced inventories, improved 1 sales "turnover, and restricted forward 1•

expansion of consumer

porary,

!
!

commitments.

Probably there is no Subject of greater immediate interest to the merchant .than the putWe are now in the ninth year of expanding retail trade.,. Except for the
long period of sales expansion that culminated in 1929, we have seldom had such an experiod
The timing of impending eco¬
nomic changes is always difficult

uninter¬

»of

rupted growth
sales

In 1938,

total

retail

Jsales were
about $38 bil¬
lions; and in
,1946,

they

were

about

396tt

billions.

Some

Postwar Maladjustments

further

will

We know that all great postwar

increase

replacement booms are followed
by corrective readjustments
of
greater or lesser severity.. They
occur because the boom
perpetu¬

doubtless

realized in
1947.

Q. Forrest Walker

cannot

Wisely

as¬

that

sume

some

new

formula has

ates, wartime maladjustments and
creates
new
maladjustments in

guarantees a \ production, costs and prices. Cor¬
continuing upward trend without! rections are required to establish
a hew basis of ^confidence for fur¬
any interruption. Both historical
ther. expansion. ~.
experience
and
common
sense

been

here and there. They

Mr.* Buckley, in*

calling attention to unwarranted attacks on Wall
Street for political purposes, recommends as antidotes: (1) increase
of public's personal interest in Wall Street; (2) publicize activities
of large banks; (3) elucidate functions of underwriting houses;
and: (4) describe. functions of commission brokers. Urges all
segments of securities industry take concerted action to combat
false propaganda.
J
:

invented that

...

chants, Lake George, N. Y., Sept.
9, 1947.

nature.

shortage
share,

BALTIMORE

„

-t

that

stand

Senator

Bilbo

figures.

cared

the

for

and

farmer

Wm-.

hated Wall

Street, but he

knew

that

per¬

Well

fectly
&

would

r o u s e

t h e
r

may blossom into a full-fledged
jealousy of
depression. When the corrections
p o o r
men
proceeded far enough, con¬
against the
1
fidence revives and business again
rich.
In like
starts on the upgrade. This process
manner
in
of expansion and contraction does,
Julian G. Buckley
^ X'
not proceed smoothly without in¬
I William Z.
terruption. It is usually marked
Foster, national Chairman of the
by intermittent waves of confi¬ Communist
Party, in commenting
dence and apprehension and mtich
on the Truman Doctrine, is quoted
confusion arising out of the con¬
as saying that "the people of Eu¬
flict of' opinion, informed and
rope did not throw off Hitler in
otherwise, on the state of. our
order to submit to the shackles
economic health. In a rough way,
of Wall Street." Foster also un¬
this describes the typical postwar
doubtedly knew such a statement

have

and

much

spread over

not

interested

is interested in perj
sonalities. One has only to reCall
what heroes the public made of
the late J. P; Morgan, the elder',
and the late George F. Baker. The
press
for years
carried stories
about these men which the public
ate up.
They boasted to their
It

children

about

them

held

and

them up as examples. Perhaps, the
chief reason the public liked these

because of their inherent

men was

courage

and the fact that they did

not bow down before the dictates
of

but forged ahead to

anybody

obtain their objectives; Today, the

on"the bounty! tinent to attempt some-appraisal
of the. current replacement boom.

The Federal Reserve index of in¬

strives to get its dustrial production measures
than its share. Old changes in physical production.
structures cannot be main¬ This index dropped from 236 in

economic

cost

During the period of
high demand, each

i..

widening field. Both reasonable
and unreasonable prices. are af¬
fected. Production declines. Un¬

ture; others depend

There is no great mystery about
deny any such possibility. This
long period of rising sales should the causes of these various mal¬
not blind us to the likelihood of adjustments.
Replacement
de¬ boom and its correction. There is
some adverse change in this trend.
mands vary greatly in urgency now scant reason to believe that
It should prompt us to operate and magnitude,
Some are im¬ the broad pattern here sketched
Imore cautiously and think more mediate; others are capable of has been supplanted by a new
deeply about current problems. postponement., Some can be .met pattern of economic behavior.
quickly;
others
require
long
Appraisal of Present Boom
*An address by Mr. Walker at periods before
they are satisfied.
the Annual Meeting of the New Some can be
With this background, it is perr
supplied by manufacYork State Council of Retail Mer¬

■

The ; recent death of Senator-elect Theodore G. Bilbo brings to
mind his many references to the farmer as the "victim" of Wall Street^
:
it was not sc^
—
——-r"
——"i

because
complex economic de¬
velopments can seldom be pre¬
cisely scheduled; but if we can employment rises.
grasp the nature of the hazards
If voluntary corrections do not
we face, we can prepare for. the
ease the price situation, the "eco¬
eventualities.
Economic
storms nomic disturbance grows worse
generally catch businessmen un¬ and becomes what economists call
prepared.
a "recession"; and the "recession"

vol¬

ume.

look for business.
tended

Thursday, September 11,1947,

group

or more

absurd but he

was

also

knew

hears

public

who

broker

banker

has

the

courage

late

those

titans.. Perhaps it iS
impossible to produce such men;
but there

are

many men

Street whose

Wall

active in
might

careers

played up. We might name
Blaine, President of the

James G.

Marine

Harvey

Midland

Trust

D., Gibson,

Company;
President of

of the the Manufacturers Trust Com*
people. Also in May, 1947 Repre¬ pany; Christopher J. Devine of
sentative Sabath of Illinois told C. J. Devine &
Company, and
the House that "outrageous and Allan M. Pope of the First Boston
crooked dealings" are going on in Corporation. Not only should the
would stir up the feelings

Wall Street. One could go back by
and years and pick out

so-called "big shots" be described
but also the margin - clerks, the

remarks and slanders about Wall

telephone boys and the registered
representatives (customers' men)

months

Street.

Even

Franklin

the

Delano

President

late

Roosevelt

was

not above stirring up his listeners

should have stories written about;

them.

against Wall Street bankers.
Now, when the average Wall

Banks

ments.

with

;

(2.) The Activities of the Large
Should

Described

—

They are replaced by new February, 1945, to 152 in Feb¬ Street baker or broker reads such
This
might include a detailed,
With_ some inter¬
frequently very burdensome ruary, 1946.
remarks, he* is inclined to shrug description of their personal loan
cost structures that can. only be ruptions, it rose rapidly in sub¬
his shoulders and mutter some¬ activities. Here,
.again too many
maintained by boom volumes of sequent months and reached 190
thing about rabble rousing crack- figures should be avoided but the
production and trade. Prices rise in March. It has since receded to
pots. His natural reaction is that attempts of banks to bring, down
unevenly, and the relation* be¬ 183 in Jime. AV current levels, the because
he, sees through the re¬ the cost of personal loans should
tween and among prices, become index i3 about 80%
above the
marks of these people he thinks be stressed. The method of ban*
1937-39
annual average. During
gravely distorted.
the resfr of the country will also
cUing and treatment of the appli¬
Ultimately, the people who hold 1947, the monthly changes have see the shallowness of their com¬ cants might be described in detail
tained.
and

Bay way Terminal
Davis

Coal

Coke

Jacksonville Coach Company
Common

the purse strings, refuse to
buy. or
are unable to
buy at the prevailing

STEIN BROS. & BOYCE
Members New

York

Baltimore Stock

Exchange and other leading exchanges
6

CALVERT

ST., BALTIMORE 2

Bell

Teletype BA 893

dication

in¬

some

declining
However, this is not the case. The
formation
prices, or buy sparingly because
of
of" the curve of production, this late Joseph Goebbels, Chief
of lack of confidence In
prices,
suggests
that
we
have German propaganda, too clearly
Customer resistance grows. Lower year
"Repeat
a
lie
reached the peak of the replace-; demonstrated:
prices and better values are de¬
enough and it will become the
manded. Soon, production flows ment boom in production.
truth." A great many people not

slightly

old

prices.

can

Stocks

sold at the

begin

There

are

several

less

only

(Continued

ac¬

37)

page

ST. LOUIS

PHILADELPHIA
American Air Filter

Eastern Corporation

Colorado Milling

Consider H. Willett

Reliance

Varnish

Data,

Stix & Go.

Request

Co.

INVESTMENT SECURITIES

BUCKLEY BROTHERS
Members New

STREET

York, Philadelphia and

Exchanges
afi ,
New York Curb
Exchange

Incorporated

1st

Floor, Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY

Long Distance 238-9

Also Member

1420 .Walnut

not
.

St.LouisLMo#

Bell Tele. LS186

N. Y.

Los Angeles
Hagerstown, Md.

fa*

Telephone—WHitehall 3-7253
Private Wire System between

Philadelphia, New York and

Los

Members St.- Louis Stock

Exchange^

American Furniture Co.

NORTHWEST MINING

Report

For Immediate Execution of Orders
or

REORGANIZATION PLAN

Quotes call TWX Sp-43

Exchange .from

A.M.,

for
PITTSBURGH

Pac.

Std.

10:45

Time:

Floor
11:30

Sp-82

other hours.

RWYS.

CO.

Standard securities

Scott, Horner &
Mason, Inc.
Lynchburg, Va.
Tele. LY S3

LD 11

Sfiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

H. M. Byllesby &

Members Standard Stock Exchange
of -Spokane

PHILADELPHIA OFFICE

RIttenhouse 6-3717

In addition, other personal serv¬

Wall ices, such

robbers

evil place

widows'

isolated base/The activities
Street

change is trying to .get their story
to the public. These efforts
are excellent and
should be en¬

effects

the

remarks

the

rabble rpusers might not
only, be
reduced but the .banks might obf-.
tain
as a

considerably more business

result, of their activities being
known. One or two banks:

better

attempting to advertise

the;

Brokers

Dealers

Underwriters

Peyton Building, Spokane

cerned.

poor.

suggested, therefore, "that
the commercial banks, the large
underwriting houses and even the
small ones, the Stock Exchange,
the
security dealers,- etc., pool
their efforts to get their story
is

<3.) The Functions of the Large'
Underwriting: Houses Should be'
Explained —VThis would require4
considerable skill since their op-J
,

erations,

are

highly

.technical.;

However,
pictorial
illustrations
might show how a company borover to the public.
rows money from these underwrit*
Here
are
some
oi the points
ing houses, enabling the company
which might be driven home. ,
to -expand plant facilities and 'in*'
(1.) Increase the personal in¬ crease employment. On the other
terest in Wall Street—It should be side,
detailed explanation could
_

CORPORATION

Company

Stock Exchange Bldg. Phila. 2
Telephone

might also be discussed.

over

SECURITIES

PROPOSED - AMENDMENTS

Dan River Mills

regard

could

described. Community trust funds

are

SPOKANE. WASH.

Bassett Furniture Ind.

funds

LYNCHBURG
Send for

trust

small

couraged, but the Stock: Exchange
radio but: their efforts are stilt
only one segment of Wall
not very effective as far: as, sell¬
Street, Financially, compared with
the other segments, it is relatively ing the public Wall Street is con*

...

Angeles

llllllllllllllllllllllllllllllllililiiliilliA
Trading Market*

simply are not
known. It is true the Stock Ex¬

Street, Philadelphia 2

with

Wall

y°rK

509 OLIVE

Los Angeles Stock

MBANKERS BOND

particularly

Elevator Co.

Beryllium Corp.

Murphy Chair Company

understand

of the Trust De¬

partment,

as free investment ad**
vice, etc., could be described. A
very interesting article was re¬
savings. For example, the writer
cently written on the State Street
had occasion to talk with a re¬
Trust Company of Boston, Mas¬
tired colonel with a West Point
sachusetts, in one of the leading
background. This colonel asked periodicals. In
other words it
how many brokers had a college should be
shown that
the big
education. When told that a good
banks, the so-called Wall Street
many were not holders of a col¬
banks, are not greedy giants, but
lege degree, the colonel burst out large public service
organizations
with these words: "It seems dis¬
run in an efficient and profitable
graceful that the finances of the manner.
country should .be in the hands of
As a result of this publicity the
uneducated men/' This colonel is

filled

LOUISVILLE

not

Street but think it

cumulate. -Prices begin to -weaken

American Turf Ass'n

pictures.

The activities

trend. The plateau-like
.

faster than it

New York Telephone REctor 2-3327

been small and there is

Teletype

Branches at

PH 73

Kellogg, Idaho and Yakima, Wn,

recognized at the start that in ex¬

plaining

Wall Street too many
figures
should be
avoided. In
general the public does not under-

be given of their distribution of

securities, not only to the publiflj

(Continued on page 33)

Volume 166

Number 4628

THE

The Eisenhower

COMMERCIAL

&• FINANCIAL

CHRONICLE

Boom
By I.

attention given to the "Eisenhower Boom," Mr.
Bargeron points out his choice by Republicans seems unlikely in

view of his

Jaft

]
.

WASHINGTON, D. C:—There is getting to be

•

hower Presidential boom than meets the naked eye.
unusual

to the Eisen¬
—

that

the

real

-e.a!ly

•a a

?*ne ™nths have elapsed since the boards of directors of the 12 Farm Credit
met, These months have brought changes in the system,
problems confronting us then have
place.

acting

party.

the

global madness.

Washing¬

ton

specula-

tive

stage.

fact

that

the

ents

hard

Carlisle Bargeron

i t h

session, but also to the fact that
some
pretty stubborn forces are
determined to keep the name of

en¬

right
again.
of

He's o.k.

the fore.

entirely that a
victory would again put

CIO

dominant

political

longer

past several years, out of the
campaign.the

was

strategy behind
build-up of Wen¬

sensational

dell Willkie in 1940.

Eastern Re

publican influences had a horror
of
that
campaign - being fought
over the paramount issue t>f ' in¬
tervention.' Taft "and Dewey w^re
both looked upon as isolationists,
and

this

writer's

humble

opinion that had Taft been nomi¬
he

nated
a

clear

issue

cut

have

would

not have

have

would

made

this

situation would be
en¬
were he elected, in
We have such of his conserv¬

tirely different
'48.

ative advisers

John W.

Snyder

to thank for Truman's not

letting
hog wild as it did
RodSevelt, along with! a
predominantly conservative Con¬
the

CIO

run

under

»'

gress;-

) y'

;■

/••••

All

along, however, the school

around him headed by Bob Han-

have insisted that to Re¬
in office he had to play ball

negan
main

that he

with the radicals. And if he should

would

be returned in '48 it will be these

How¬

forces that returned him J He will
realize
that.
The
radicals
will

and

entered the

the

roost, Truman'^ homely
and
plain Americanism

fact remains that it

cently

that

are

manifestly wanted

increasing.

This division is

being reflected
in the agitation for an extra ses¬
sion of Congress and Republican
resistance to it.

that

session, sitting in
the
emergency
atmosphere that
now prevails, would be stampeded
into giving more billions to Eu
rope. There is the inevitable hope
that

delay will lessen the agita¬
tion, if not the urgency, and that,
at least,
the mounting but in¬
choate

opposition

thinkers will have
to

express

thinkers

whelmingly

American people.
been

the

been

passed

the

had

itself.

case

time

Bill

the

over

moves

dare..

and

the

bill

over¬

the

If this had not
would

not

have

Truman's

veto.

may

Phil

be¬

Murray's

That, in fact, would

seem to

be,the logical thing to do.

ume

and

the

action

Manifestly, if Eisenhower

were

to be the Republican nominee the

Roosevelt-Truman conduct of
international
relations > with

reached

were

with

by the PCA's
for cooperatives

banks

the

Federal

lip¬

land banks

increase

last

that farm
a

real

June

Eisenhower has been

Dept. of Moore,
PITTSBURGH,, PA.—Frank
Satler,

Jr.

has

been

appointed

than 2,000. While a larger number
of employees was needed when the
banks were, making a tremendous
volume of loans in the 1930's, it is
true; but todayythey have a better
trained personnel, many of their
employees having been with the

banks for 15 years or more.

the

last -six

this

are

the wheat belt, in the Middle West
in the range livestock terri¬

and

him.
are

any

number

en¬

In the

Some

leveling off In land values
during • the four months prior to
July 1. <
>
'
; Farmers and ranchers who
deem
•

it, wise

President.

But

Davis,

President of

Federal Reserve Bank

St.

Louis, in testifying before the Ag¬
riculture

the

outstanding loans of

the Federal land banks
creased

again de¬
during the year, there is

stock

they have

their properties.

large equity
Present

val¬

income decline materially.

Right
few

prices

loans

the

This is evidenced by a
the rate of repayment

new

ended

year

loans

made.

June

30,

totaled

year

the same as for a
past, farm commodity
influenced greatly by

stock

Frank

amount owned five years ago. In
the same time capital stock owned

by the Government has decline*
$81V2 million to $40 Vz mil¬
Capital
stock
owned
by

from

lion.

farmer-members

1947,

accounted

net worth

Production

(Continued

;

We wish to

<4 *

$150

announce

page

that

(formerly with Strauss Bros.)

has

joined

our

trading department

*Remarks by Mr. Duggan at the
conference

Directors of the

Farm Credit Association Districts

Francisco, Calif., Sept. 1, 1947

Utility

Gilbert J. Postley & Co.
6, N. Y.

H. E. SCOTT COMPANY
the

opening of offices at

Broad

Street

Telephone HAnpver 2-1762

municipal depart¬

Moors, Leonard & Lynch,
Building, members of

Union Trust
New

York

Exchanges.

with the firm for

and

He
some

Pittsburgh
has

time.

N. Y.

been

Members New York Stock Exchange
68 William St.

New York 5

201 Devonshire St.
;

Boston 10

Experience

Knowledge
.

•

for Investors

to transact

general business in

Investment Securities

Facilities
,

;

associations

MR. JOSEPH F. DONADIO

earnings
.

credit

June

accumulated

and

33.2%.

exceedingly heavy foreign de-

ended

L. Satler, Jr.

manager of the

owned, on

June 30r 1947, exceeded $42 mil¬
lion which was about twice the

1947,

than

owned by
amount of

farmers repaid $1.62 for each dol¬
lar of new loans
made; this com¬
pares with $1.81 for the previous
year

are

The

exceeded, for the first
amount of association
the Government.

the

time,

34.2%

now,

years

the

decline

production c r e d i t * associations
reached a noteworthy objective in
May 1947 when the amount of
stock owned by them on a system

safer if

indication that this trend is slow¬

cause widespread
and serious
difficulties in agriculture," v
The farmer-stockholders of the

wide basis

while declines have ues to a very large extent reflect
outstanding neverthe¬ current earnings rather than prob¬
less their forces are considerably able
earnings over a long period.
less. Despite these reductions, the As you all know, it usually takes
district institutions, the national
years to pay for a farm out of
farm
loan associations,
and the earnings and if it is heavily mort¬
production credit associations, all gaged now it may be difficult to
are efficiently managed.
pay off the mortgage should farm
While

New York 4,

Stock

him

purchase farm land at
the present high values will feel

the

admirers; of the gen¬
of* course, who would like

announce

thusiastic
see

Chester

the

Investment Stocks

eral,
to

ever.

BONDS

ment of

There

the

their

are

Public

who

advance

about
that

heavy purchases cannot go on for¬

and Municipal 5.
Railroad, Industrial

him his chance for fame, and
continued

realize

State

angle. Can you imagine his
criticizing the Truman or Roose¬
velt administrations on
any
gave

decided

realistic

and

United States Government

part

any

Truman

the current high

Direct Wire to Chicago

Can you imagine

Roosevelt

should

situation

will

but I'do

other countries pur¬
of our food supplies.

less

months.
found

slump in

prices

when

there

levels

29 BROADWAY, NEW YORK

To me, in fact, the boom in his
behalf seems fantastic from most

was

believe

predicting
estate

easing off from
chase

completed their
5-year steady advance and to have
either
halted or- turned
down

slightly in
Exceptions

real

prices

have

not

States

units,

all

criticising the Yalta, the Tehe¬
ran, the Potsdam agreements,, any
of
the
shenanigans
that
took
place?

ground?; It

much smaller personnel. • At the East South Central, South
Atlah
peak-the-land .banks had 13,000 tie and East 'North ;Centfal
groups
employees; todays they Hhave lfesa ©i states where there was also

San

our

his

estate

•.

cause

Easing Off of Real Estate Prices
farm

and

year

Committee, U. S. House
still increas¬ Of Representatives, said "Although
the drop in farm prices and. in¬
also saw the
expiration of the
Despite, this, slackening in farm come may not be as precipitous
right to make Land Bank Com¬ real estate prices farm land in the or as
great as the drop which jfolmissioner- loans leaving the field year
ended - March,
World War I, and some
1947,
was lowed
for the land banks with their 65 %
changing hands at a l\igher rate measures may be developed to
loan,1 •;,k"- •
•
: ' / ••
' I .• than at any previous tipie.
offset the forces1 leading to the
De¬
The system is operating with & creases in sales
occurred in the decline, nevertheless, it is likely

the

the mess that has been.
brought
about; would be completely elim¬
inated from the
campaign.
Be¬
of that conduct.

land

of the United

part

sign

ping their loan volume consider¬ tory where prices
ablyu over <the, previous year. ) It ing.

year;'and $3.11 for the

global

want

encouraging

was

promptly in farm real es¬
prices. When the prices; of

farm commodities dropped in 1920
it was not long before farm real

Increased Last Year

June 30, 1945. Federal land bank
and Commissioner loans made in

chance

now.

ing down.

Republicans

Green's

skill

global

The

naturally

hoove

majority

Men like Taft feel

extra

his

was

got through Congress

lot of these latter and that their

numbers

dar¬

are

ing the Republicans to nominate
Taft are doing his a bad turn. The

One has only to make a trip across
the country as this writer has re¬
are

The

rather

tate

Farm land prices generally con¬
tinued

farmer-owned, with the total gov¬
ernment capital in all associations
being substantially reduced.
In
the year, new peaks in loan vol¬

not been

done, to realize there

en¬

exports and employment are
high. Should either of these de¬
cline, it is likely to be reflected

estate prices declined also,
Prices

seemed

if the labor leaders who

system

Land

over

other

aid to

our

the

stand¬

faster rate

the

been—from

point of cash income, and it prob¬
ably will continue good as long

slightly lower than* the previous
year due largely to the fact that
the mortgage loans made by other

credit associations in the

notwithstanding. What he is abdve
everything else is a politician.
In the meantime, it is doubtful

Europe and those, rather inarticu¬
late as yet, who are getting plenty
fed up with the whole business.

leaving

brought to 12 the production
ranks; of

year

virtues

should be unstinted in

tional farm loan associations.

global

30, 1946,

Despite the large volume of new
loans the percentage of land bank
business to total
recordings was

has

ever

tirely farmer- in many states exceeded the peaks
borrower owned through the na¬ reached in the
boom of 1920. Yet,

in the country now is between the

figure

than the year ended June

As a result, farm business
good—perhaps better than it

4,471 greater

was

St.

the land bank
I. W. Duggan

mand.

banks.

Land
of

Paul

rule

who

number of loans

Federal

ever, that's water over the dam.
The rapidly developing division

thinkers

war..

won

such

But the

•

which was $15
million
than the previous year. The

capital by the

He has shown he

overlook

million

lenders increased at
than
those
made

Bank

plain American with all
virtues.
j

Truman

the last of the

American

They
the

the

repayment

our

the

was

Government

that the hope is to

.This

ment

playing

are

They are in the dold¬
any doubt position.
rums now and their effectiveness
get him on the
has been largely destroyed.
And
Republican ticket. And the pur¬
may
say
that Truman has
pose among the master minds is you
done little or nothing to prevent
once again'to keep foreign affairs,
or
our
international policy over their slump.
is

There

accomplish¬

the

upon as

notable

con¬

is
too
much ' feeling
them that it would be Ml
if Truman were to win

is just a

Congress not

the general to

industrialists

po¬

sition.

There
among

any¬

are

with fire.

thing to write
a

they

influences; that is,

terprise system, they

time

finding

favorable

that

pillars of the American free

pondhave

unusually

servatives and looked

Washington
corres

is their

concern

extent

men

financial

the

business

Part of this is
due

Their sole

disappeared; others have taken their

Agri-$

pulture
has
continued
in

in good faith with the
Republican

to the front of

decline would entail prompt recession. Predicts halt in
five-year
peaks. Praises constructive work of Farm Credit

ministration districts have
ol the

manipu¬

not

are

export

land prices, which last
year exceeded 1920

borne

lators of the boom

warns

Administration.

It has enjoyed

—

convinced

persistency all
along and just
now

rise in

Sees

likely Republican candidate.

Governor, Farm Credit Administration

Agriculture official

participation in the Yalta, Teheran and Potsdam Agree¬

ments, and his advancement both by Roosevelt and Truman.

W. DUGGAN*

but Vulnerable

CARLISLE BARGERON

Commenting

(1007)

27)

THE COMMERCIAL, &

(1008)
)
*

FINANCIAL - CHRONICLE

Exports and

(Continued from page 4)

;

International Hydro-Electric

Filing of integration plans for International Hydro-Electric Sys"tem were deferred for several years pending recapitalization of the
"

Sub-holding company, New England

Electric Power (now New Eng¬

and merger-of the two New York subsidiaries
(Hudson River Power and System Properties, Inc.). The merger into
Eastern New York Power became effective last December, and re¬

land Electric System)

of. New England*®'—
—:
-T-r
;
Electric System replaced the-six zation consists of $26,568,000 depredecessor holding companies a bentures 6s (due 1944), 142,484
(par
few weeks ago.
Litigation over shares of preferred stock
the
$10,000,000 cash settlement $50), and 856,718 shares of $2
with. International Paper Co. was Class A stock (the Class B and
common stocks were cancelled in
also cleared up early this year,

the

Accordingly,

International

Hydro is < now in better shape to
y*ealize on its assets, consisting

jHincipally

of some $10,000,000
bash, 1,439,024 shares (about 86%)

1941).
Three

one

have

plans

dissolution

two months,

been filed in the past

by P. H. Todd of Kalamazoo,

Mich.,

director and

substantial

though reduced

even

would still

from the current rate,

high level. Europe's need
goods is desperate. This
is made dramatically clear when
we find macaroni being shipped to
be at

for

Recommendations and Literature
It is understood that the firms mentioned will be pleased
to send interested
parties the following literature:

Chemical
and

Industry

Analysis

—

research comment—H.

Co.,

Beaver

York 4,

goods and our own.

Exports,

Dealer-Broker Investment

lagged below the estimate by j a
rate of $1 billion annually, and
exports have increased to a rate
of about $16 billion annually. This
is a level that apparently could
not be maintained without hurting
the economies of both the foreign
nations that have been receiving

capitalization

•

Thursday, September 11,1947

;

Business Outlook

I,.

I»W *

N. Y.

Hentz

Street,

New
Electric

Howell

Co.—

Motors

Analysis—B. W. Pizzini & Co.,
25 Broad Street, New York 4, N. Y.

earnings, etc.
Metal

our

Chemicals—Brochure

the in¬

dustry
discussing long-term
growth potentialities and the po¬

Italy, cheese and fish going to Bel¬
sition of 30 leading companies in
gium and coal to Great Britain.
the chemical field, with basic fi¬
Latin America and Asia must ob¬
nancial data on 26 other companies
tain from us much of what they
Merrill Lynch, Pierce, Fenner &
had
previously
obtained from
Europe. Assuming a reduction in Beane, 70 Pino Street, New York 5,

another by exports to more nearly reasonable N. Y.
the Carter Committee for prefer¬ proportions
our
export surplus
of Eastern New York Power, and
Finance Companies—Memoran¬
red stockholders, and the third by would result more from a defi¬
&
about 536,000 shares of New Eng¬ the Trustee, Bartholomew Brick- ciency of imports than an excess dum—Hirsch
Co., 25 Broad
land Electric System, with a total ley of Boston. Treatment of the of exports. Our imports are run¬ Street, New York 4, N. Y.
estimated value in the neighbor¬ three securities under these plans ning .at an annual rate at least
Two
Thousand
Factories
for
$3 billion short of the amount that
would be approximately as fol¬
hood of $50,000,000.
would be normal at the current Kentucky — Address by
Thomas
International Hydro's capitali- lows;
level of our economy. This is due Graham at Second District Bar
to the world shortage of raw ma¬ Association
Meeting in Owens-Trustee's
Carter
Todd
terials and manufactured goods.
boro, Ky.—The Bankers Bond Co.,
Plan
Plan
Plan
Moreover,
the
world
is not Kentucky Home Life Building,
$1,000 Debentures:
Louisville 2, Ky.
without means of paying for
a
$300 :
*
*
♦
$1,000
$300
Cash
_____
:
large volume of exports. In addi¬
20 shs.
Gatineau
33 shs.
Allen
Industries, Inc.—Memo¬
tion to foreign gold and dollar re¬
20 shs.
New Eng. Elec._.__
> 4 shs.
M.
Kidder
&
Co.,
serves
of approximately $20 bil¬ randum—A.
6 shs. Gatineau
2 partic. ctfs.f
1 Share Pfd. Stock
$95* cash
1 Wall Street, New York 5, N. Y.
lion, the possible additional sup¬
1 partic. ctfs.f
Remaining Remaining
1 Share Class A Stock
ply of dollars—through existing
Assets
Assets
Artkraft Manufacturing Corp.—
plans such as our authorized lend¬
*
Par plus dividend arrears, cash to be realized by sale of securities,
ing and relief aid, the Interna¬ Descriptive and illustrated bro¬
f Representing remaining assets.
tional Bank and the International chure—Comstock & Co., 231 South
La Salle Street, Chicago 4, 111.
Monetary Fund—approaches $10
,•

of Gatineau Power, 320,000

unemicai ana r asmon

Park.

Also available is the "Fortnight¬
ly Investment Letter" discussing
1947 Rail

rroaucis

Thermit

York

dum—New

—

Memoran¬

Cor¬

Hanseatic

New

Broadway,

poration,
120
York 5, N. Y.

National Terminal Corp.—Mem¬

orandum for dealers

only—Adams
Adams Street,

Co., 105 West
Chicago 3, 111.

holder of Class A stock;

Pittsburgh Railways Co.—Report

proposed amendments to re¬
organization plan—H. M. Byllesby
& Co., Stock Exchange Building,
Philadelphia 2, Pa.

Sperry Corporation—Special re¬
in the current issue of the

view

Bulletin"

"Aviation

containing

earnings, prices, news and general
market opinion—John H. Lewis &
Co., 14 Wall Street, New York 5,
N. Y.

■

Suburban Propane Gas—Circu¬
A.

lar—Edward
50 Broadway,

Purcell

Co.,

New York 4, N. Y.

Applying recent market values (about 16^ for Gatineau and
14y2 for New England Electric) yalues would work out roughly as

follows:

Todd

Carter

Trustee's

Recent

Plan

•

Plan

Price

■

$1,000

$920

are

100

level of exports.

Preferred Stock
Class. A..

r—

A1J interests apnear agreed
on

that

hand should be devoted to

paying $300

bond, thus retir¬

per

ing 30% of bondedrdebt. It seems
likely that this step will be ap¬
proved by the SEC and the court.
Judging from the present quota¬
deben¬

for the

tion of around 99

confident that
the terms of the final plan will

tures, holders
provide

seem

them

cash

$700

with

substantially
securi¬

marketable

ties, though the Todd plan would
give

them

$600

only

the

and

"Trustee only $620.

; As

division

the

re¬

maining portfolio values, the Todd
y.

Pittsburgh Bond Club
To Hold Fall

Outing

PITTSBURGH, PA.—A full day
of sports and entertainment is be¬
ing planned by the Committee in
charge of the Fall Outing of the
Bond Club of

Pittsburgh. The out¬
ing will be held at the Shannopin
Country Club on Tuesday, Sept. 16.
Members

who

golf in the

wish

morning,

play
luncheon

may
a

will be served at noon, and after

luncheon there will be
nament

and

for

ment

these current
and potential funds are not dis¬
tributed according to the needs
of the various
importing coun¬
tries.
Nevertheless,
these funds

which

golf tour¬

Bocci

tourna¬

handsome

prizes

There

plan obviously favors the Class A
stock

would

and

whether

the

doubtful

seems

SEC

inclined

iunior stock such

the

courts

give

adequate

the

favorable set¬

support

the

remains

Plan.

Marshall

It is

too

terips of the needs of Europe
our willingness to help pro¬

vide

for

urer.

Liberty Products Corp.

Rockwell Manufacturing Co.

Crowell-Collier Publishing Co. / U. S. Potash Co.

Beryllum

equipment

Also available
ern

Paine, Webber, Jmson & Coras

are

Corporation

Bird

Son

industries

important

that

curtail

pro¬

probably not

erate decline in exports.
demand for their
or

And it is

present

output.

important to remember

activity
a

products equals

their

exceeds

Domestic

long

these

in
way

industries

Fairbanks

data

Cotton Mill*

Mohawk

Circular

—

Mohawk Val¬

ley Investing Co., Inc., 238 Gen¬
esee

Street, Utica 2, N. Y.

East¬

Colorado

and

Co.—Memorandum

Established

1879

First

Greyhound Racing

issue Makes Debut Here

dividend

Also

issued' by
Inc.

available

are

memoranda

Taylor Wharton Iron & Steel;
Purolator Products; Upson Corp.:

United Artists; Vacuum
Fleetwood

Air

Flow;

September, 1947,

Hugh W." Long &

Co.,

Sept.

1947-48

for

declared

payable Oct. 22 to holders of rec¬
on

recent

net

Oct. 15.

earnings

The corporation's

statement

shows

earnings after taxes for fiscal

year ended April 30, 1947 ofi$l,Concrete; 445,952; total amount wagered wag

Lanova

Portland Ce¬
Sterling Motors; Diebold:

ment;

Lamson &

Sessions Co.; Aspinook

$49,915,633.

Motors

Corp.—

Analysis—Seligman, Lubetkin &
Co., 41 Broad Street, New York 4,
New York.

Also

Gray B. Perry With
Grimm & Co. in New York

Graham-Paige

was

Lawrence

Corp.;

Corp.

cents

ord

5, N. Y.

towards deter¬

erally.—Reprinted from "The New
York Letter"

Co.—Circular—Ward

Co., 120 Broadway, New York

mining the level of business gen¬

data—

Milling & Elevator Co.

agricul¬

and

equipment, are examples of

would

goes

Corp.—Late

Buckley Brothers,
1420 Walnut
Street, Philadelphia 2, Pa.

—

first

railroad

that

5, N. Y.

Inc.

them.j But this much is

duction if there were to be a mod¬

;

Max¬

Fuerst

crystal clear.

other

Buckeye Steel Castings

Roberts—Otto

Corp.—

prepared by

Revere Racing Association, Inc.
Bros.,
1420
Walnut
The impoverishing —Buckley
tlement — though on the other
common
stock is the-first grey¬
policy of looking for gifts from Street, Philadelphia 2, Pa.
Also available are memoranda hound race track issue to be sold
hand, the two other plans may be "Uncle Sam" must be replaced
Eastern
Corporation
and publicly here, according to Bon¬
with a program of work and fi¬ on
a little generous to the preferred.
ner & Bonner, Inc., 120 Broadway,
nancial stability.
Increased pro¬ Southern Production Co.
But current prices for both the
New York City, the underwriters,
duction is the only sound way for
preferred and Class A stocks are the world to obtain more dollars.
Chicago, Rock Island & Pacific who call attention to the' phe¬
substantially below "liquidating And the Marshall Plan should en¬ —Analysis—Vilas & Hickey, 49 nomenal
growth
of
greyhound
Wall Street, New York 5, N. Y.
racing in England where it has
value," indicating that holders courage progress in this direction.
Also available is a circular dis¬
reputedly outstripped horse racing
To gain perspective for judging
anticipate a long-drawn fight be¬
volume
of
attendance
and
the influence of exports on the cussing Railroad Developments of in
fore the SEC and the courts, with
the Week.
outlook for business, one needs to
wagering. According to Bonner &
resulting risk of deterioration in look back to the
Bonner, there are 20 stocks of
spring of 1920
City of Philadelphia Bonds—
oortfolio values.
and the summers of 1929 and 1937.
greyhound racing companies listed
Valuation and appraisal—Stroud
on
On each of those occasions, the
the London Stock Exchange.
&
Co., Inc.,
123
South Broad The Revere Track, operated since
steel industry was'producing suf¬
will be awarded. A dinner will be
Street, Philadelphia 9, Pa.
ficiently to meet all of the domes¬
1935, is believed to have a larger
served at 7 p.m. A feature of the
Also available is a valuation and
tic demands as well as exports. A
attendance and volume of wager¬
outing will be the "Country Fair" decline of one ton in steel
appraisal of Railroad Equipment
exports
ing than any other greyhound
at which various games of skill
Certificates and Price
Earnings
meant a curtailment in
racing track in the United States.
production
will be provided.
of one ton of steel.
This is ob¬ Ratios and Yields on 123 Public The SEC
registration statement
James C. Lear of Reed, Lear & viously in contrast with conditions Utility Common Stocks.
relating to the issue became ef¬
Co. is General Chairman of the today. Despite capacity steel pro¬
fective
September
5,
and
the
Diebold Incorporated — Recent
duction
there
is a shortage
in
underwriters state that the offer¬
Outing Committee. The officers of
supply of steel. Lack of steel is bulletin—Giving earnings for first
ing will be adversised shortly.
the club are: S. W. Steinecke (S.
the reason why many other in¬ six months and indicating annual
The offering price of
K. Cunningham & Co.), President; dustries operate
Revere
below capacity return on basis of shipmentsErnest O. Dorbritz (Moore, Leon¬ today. One ton of steel that is not Ward & Company, 120 Broadway, Racing Association common stock
is $5.75, to yield almost 14% based
exported is welcomed by domestic New York 5, N. Y.
ard
&
Lynch), Vice-President;
on
declared intention to pay 80
consumers.
Edward C, Kost (A. E. Masten &
Dixie Cup Company—^Analysis cents in
dividends, during the fis¬
The automobile, building sup¬
Co.),. Secretary, and W. Stanley
—Laifd, Bissell & Meeds,
120 cal year ending April 30, 1948;
ply, non-ferrous metals, electrical
Broadway, New York 5, N. Y.
the same as paid last year. 'The
Dodworth (Parrish & Co.), Treas¬
equipment,
petroleum,
possibly
a

Trading Markets in Common Stocks

Manufacturing Co.

well

Utica

New York 5, N. Y.

and

tural

Bates

way,

early to

appraise what the plan will mean
in

Aspinook Corporation—Special
report—Ward & Co., 120 Broad¬

high

so-called

States Plywood

Co., 57 William Street, New York

course,

$900

Debentures

cash

billion.

United

Memorandum

available are analyses of

Osgood Company

"B," Tennessee

Gray B. Perry has joined the
of Grimm & Co., 44 Wall

staff

Street, New York City, members
of the New York Stock Exchange.
He

was'"formerly

VoorhisT&LCo.

with

..n»i I:

Kalb,
s

THE

Number 4628

Volume 166

COMMERCIAL

CHRONICLE

of Home Builders contends increase in home building costs

not out of line and

are

Frolic at Park Hill

of family earnings is required to purchase a new house than ever before. Foresees only
slight reductions in new housing costs.

•

smaller portion

Country Club, Aug. 22

pamphlet entitled "Housing Costs and Prices," prepared by the National Associa¬
Builders of Washington, D. C., contains an analysis of home building costs

(10091

Out of the Market Bond Club of Denver

Houses Are Not Being Priced
National Association

FINANCIAL

tion of Home
and

family savings and income,

prices in relation to

of other things,

income,

and

savings

family

paid for a new house
before. According to the

Look

less

than ever
pamphlet:

__
*
purchasing power repre-' period in history on the basis of
sented by individual income has income as related to living costs.
increased

The

purchasing

advanced:— and

with them—-you can see
plainly that the
cost of new
houses has not advanced as much

power

elements of the

the other major

economy.

For

consider the fol¬

example

lowing facts:

■

new

only 82%.

typical

urban

This purchasing power is

worker

country is the worker in
manufacturing industries. There
3

million

are

such

million of them

workers

and

Average

weekly
earnings
in
manufacturing industries in the
1935-1939 period were $22.42. In
1947, these earnings

purchasing

$47.44.

are

power

repre¬

sented by these earnings has in¬

Family Savings

other

and

forms

holdings im¬

mediately convertible to cash.
In 1939, the people had savings
.

has increased

While
new

been

shown

that

takes less of the

now

dollar, it must be con¬
are competitive

consumer

sidered that there

$192 billions.
purchasing power

power.

are

sented

liquid

repre¬

of indi¬

assets

Cost
houses has increased only

viduals had increased 250%.
of

new

82%.
Individual Income

each man, woman

and child—was
$498 after taxes in the 1935-1939
period, on an annual average. In
1947—after taxes:—it is $1,090. If
income were to be
four person family,
it would mean that family income
increased from $1,992 in the 1935-

this per capita

1939

period to $4,360 in 1947.

family's

advanced

clothing

than

But

and

items

other

miscellaneous

living
This

have
house

the

cost

have

...

the

those

who

war.

there is more purchas¬

In fact,

for

power

homes

want

before

Never

now

investment
at

than

home

Clark, Amos C. Sudler & Co., Don

Chairman

Arrangements

been

Brown,

Boettcher

Co.,

General Chairman, awarding golf
winners

have to¬

Senate

any

other

com¬

banks

the

that

1945

$20 billions for mort¬
investment. Insurance
companies, building and loan as¬

gage

sociations, mortgage bapkers and
home construction companies add
incalculable billions to the total
available.

have

rates

Interest

been lower.

never

Double

Significance

(1) All the foregoing facts add
up to
unprecedented purchasing
power and to a favorable price
position of new houses with re¬
spect to that purchasing power.
Normally this means an effective
market demand for houses.

(2) Until supply comes into bet¬
ter balance with

INDIVIDUALS*

<—

AVERAGE INDIVIDUAL INCOME

there

has

purchase that

uation will

to
homes.

buy

day. An American Bankers' Asso¬

demand, this sit¬

operate

tant factor in

ASSETS

Phil

credit

available the amount of credit for

1939

LIQUID

factors

above

availability

1935-1939

ing power to buy new houses than

Credit

the

all

costs
new

means

before the

ing

Availability

ciation official told

advanced only 56%
period.
far greater purchas¬

has

1947,

alone have

represented more stabilized costs
and, therefore, the total cost of
above the

savings
bonds
by the people exceeded
cash-in of bonds by $1,386,325,000.

purchasing

rent, fuel, electricity,

months

five

first

mittee
and

prices.

ice

Average individual income—for

Food

living

applied to

...

the

investment in government

Added

Cost of Living

vs.

has

housing

drains

The

continued

and

only 82%.

Family Income

of $55 billions. JToday their sav¬

ings

increasing wage rates
savings.
Evidence that high earnings and
family
income
are
still
being
translated into savings
and,
therefore, still greater purchasing
power
is seen in the fact that

ployment,

creased 111%. Cost of new houses

of individuals
represent
purchasing power —
money saved up
in war bonds,
savings accounts, demand deposits
assets

Liquid

being

...

veterans.

are

Family Savings Being Maintained
sustained by a high level of em¬

this

The

Cost

Typical Earnings

Power

look at how all costs

119%.

houses had increased

Costs and Purchasing

When you

have

the basis of which it is contended

comparison with the costs <*The
and in relation to

that in

impor¬

Hal

preventing*a decline

price of new housing.
So it isn't likely that the price
of houses will come down as long
UP t!9

situation

this

%—)

prevails.

Writer,

Peters,

Writer

& Ed

Coughlih,
Coughlin & Co.,
Invitations Committee

Chpstensen, Inc., prize committee Chairman,

in the

That's

against likelihood of
the cost of houses dropping in the

point No.

(AFTER TAXES)**

foreseeable future.
the Price

Will
1947-

J—

UP in %

■31

Come
7 The

WORKERS EARNINGS***

MANUFACTURING

price

mined

houses

the

of Houses

Down?

deter¬

balance' between

supply and demand.
On the demand side, the factors
t947

■

UP 88%

which influence prices

Family

(1)

COST OF FOOD***

1947'

cost of

living.;

Savings available
vestment in housing.
(2)

-»UP85%4

COST OF CLOTHING***

in¬

and

with relation to the

come,

1935-39

are:

earnings,

•

■

•- U UTI

> n A

in¬

for

n 4 U H 1 »

Availability of credit.

(3)

These factors have been shown

1935-39
1947

to be
"UP

82%«j

percentage

♦♦Dept. of Commerce and speech of President Truman, N. Y. April 21,

♦♦♦Bureau
♦

♦♦♦National

Labor Statistics

1947

housing
reason

room

Wholesaler and Retailer of
Investment Securities

Department

stocks, title company and

bank participation certificates.

150 BROADWAY
6

DIgby 4-2370

Boston
Teletype NY 1-1942

on-site

since

Inc.;

off-

and

represent
of

there

new

left in which to achieve any

level

reduction

prices.

1 NEW YORK 7, N. Y.
Philadelphia

off.

possible
factor.

great, reduction
because of the
....

profits-r-Builders'
profits appear to have stabilized
at
the lowest level possible
to
continue operations. Uncertainty
of 'attaining a safe profit margin
has

Trading

specializes in real estate bonds

SIEGEL & CO.

and

appears

(3)

89 Broadway, N. Y.

Bosworth, Sullivan & Co., President of The Bond

Denver; Hal Writer, Peters, Writer & Christensen,
Phil Clark, Amos C. Sudler & Co.

to expect that wage levels

substantial

wage

INCORPORATED

and

going to decline, there is little

are

Amott, Baker & Co.

Our

Club

(2) Materials prices—Materials
prices have shown a recent trend

ACTIVE MARKETS

3rd Is, 1970

Wages

site labor—Since wages
four-fifths
of
the
cost

Housing Agency Index of Building Costs.

2nd 2s, 1970

Bernard Kennedy,

the

(1)
.

figures are based on the increase between 1935-1939 and
April, 1947, except liquid assets of individuals.
This increase is based on such
assets
in the year 1939, only, compared to such assets at the end of 1946, by
estimate of the Department of the Treasury.
The percentage increase is conceded
to be even higher if Treasury estimates were available for an average of the entire
1935-1939 period.
♦All

prices.

supply side, the factors
which influence prices are:

COST OF NEW HOUSES****
SOURCES:

favorable that they oper¬

ate to sustain demand and

Builders'

forced

some

builders to

drop

plans.

(4) Efficiency of operation —
Price-saving benefits from
in¬
creased production,' improved dis¬
tribution
of
but

and

materials

have

efficient
been

use

effected

continue to be bvershadowed

(Continued

page

29)

(the one disturbing feature); Myles Talmadge,
Sigler, J. A. Hogle & Co.; Dick Green, J. A. Hogle &

Officer Murphy
Tom

guest;
Co.

lfl

THE COMMERCIAL & FINANCIAL CHRONICLE

(1010)

With Herrick Waddell Co.

Illinois Brevities

(Special, to The Financial Chronicle)

TAMPA, FLA.—Philip C. Smith
hag

been

added

the

staff

Herrick, Waddell & Co.

Terminals

National

Corporation
Common Stock
A

leading

company

essential

industry providing warehousing,

carloading

storage,

stevedoring,

and

office

;

important middle west cities to

spac9

and

cold

services

$105,000,000 offering of Chicago Transit Authority revenue
bonds roared to a successful and exciting finish late last month, and
veterans of the Chicago financial district still are not quite sure how

apparently had not

helped by any such de¬
velopment
as
a
single
very
large order. Some said the of¬

fering had been helped by the

Corp.

COMMON STOCK

Food

Maytag

Commercial

Home

Beverage

Refrigerators, Liquid Vending
and Outdoor Advertising

Machines

;

Signs.
sales

Current

taken

financial

the

tinue

industry

most dramatically

are

♦

*1*

Descriptive

and

illustrated

brochure

of¬

to be declared a success
was that of the Tucker Corp., new
auto
manufacturer
in
Chicago.

fering

dealers

only

COMSTOCK & CO.
CHICAGO 4
231 S« La Salle St.

Assured

capital,

working

$15,000,000

their

closed

underwriters

the

books

Sept. 9,

Franklin County Coal

industry
and

longer

famine"

Industrial Brownhoist
Common

Cone

army

Common

STRAUS & BLOSSER
York

Stock

Chicago

Stock

Member

New

Depart-

Sears
Chairman. The
wants to set up 2,500 of
' *

Exchange
Exchange

York

Curb

135 South La Salle St., Chicago 3, HI.
Tele. CG 650-651

been close.

the

United

have*

Brazil

always

It is not too much to

relations

our

those of

Why are the ties between
close?

The distance

countries

recent

years

us so
between our

had

from "investment

half

com¬

tim% in this change¬

the firm at A the end of the

had

money

majority-owned

most

securities

its

democratic.

were

The

such

com¬

the first of the

was

which

Constitution

adopted two

later

the

not
lute monarchy.

was

the
ideals of free
these of abso¬

years

government,

Total- securities

the

of the world to

expression

associated companies.

Co.,

We look upon, the state as

fundamental rights of man.
We"
recognize have the same respects for thethe new independent state.
We dignity of the individual. We look
were not troubled by the fact that
(Continued on 'page 31)
it took the form of an empire, for
the
foundations ', of
the empire

its hations

^'venture capital" status.

over,,

Brazil

when

come

be governed by its own agent of the people for the at¬
people and for their own welfare, tainment of the general welfare.
i
am happy to recall that the We have the same belief in
the

progress

For the first

time

was

held by Chicago Corp. ; The history of Brazil in many
and ,werer valued at $9,828,578 June 30 (respects
parallels. that of the
United States.
Both are nations
that cottons can look forward to in contrast to $8,308,802 at the
(which have carved civilizations
several steady years in place of year end.
These holdings were
increased

Mr. Dribben

the

emphasized that
had burned away

industry

(out of the wilderness. Both have
by purchase of 73% of (been endowed with great natural

the 5% preferred

stock of Amer¬

bus company's equity.

He said cotton textile mills this

Meanwhile,

year

will spend $100,000,000 for

sales

production facilities. The
also
is
spending
a

great deal

Standard Silica Corp.
Stock

Common

Antioquia 7/45

"Cottons

new

textures,

qualities

new

of - color

and design promise to put greater

Barranquilla 4/64

Bogota 6i/2/47

value into

our

lines than

the

before

case

war.

was

Top

the

de¬

signers in the fashion field in

Bogota 8/45

cent years have

Caldas 7V£/46

re¬

learned to work

with cotton and to appreciate its

Cali 7/47

versatile

qualities."
*

Cauca Valley 7/48

Northern

The

Cauca Valley 71/fc/46

monthly

bulletin,

Co., in its
said business

investment

hold¬ (the

nation

new

Member New York Stock

and other

Exchange
Principal Exchanges

So. La Salle St.

208

dom¬

CHICAGO 4

of Brazil,

Phone Andover 1430

Tele. CG 150

I am

,jUnited States that Brazil turned

support 'in
independence.
for

Commenting
on
consumer
credit in its monthly business
bulletin, the Federal Reserve
Bank of Chicago said abnormal
conditions

evaluation

have
of

prevented
the

where

mercial banks stand in
ment

cash

financing.

lending

out

any

ning of

sales
s

lending
field.

long."....
( The long

„

described

Common

the

National Tank Co.
Common Stock

Prospectus

reign

Stock

"life¬

Available

great

various

speech of President Truman
session of the Bra¬
zilian Congress in the Tiradentes

stand

in this

Palace, Rio de Janeiro, Sept. 5,

—

Black, Sivalls & Bryson, Inc.'

the

agencies

TRADING MARKETS

historical friendship

our

(which I have

install¬

However,

where

—

for

posed to us was a singular mark
bf confidence. It was the begin¬

com¬

and

struggle

its

The alliance which Brazil pro¬

the, bank
said the pattern should be more
discernible by the year end and
1948 should make it possible to
find

Trust

its

*
1

hew

finishes,

Antioquia 7/57

from

TAROLL & COMPANY

ings to $7,746,211 from $10,899,876. (equally happy that itt was to the

research, he

said, adding:-

by people whose
inant motive was freedom.

If I
port¬ j^States am happy that the United
was the first to recognize

folio reduced other security

industry

both have been de¬

resources and

Buslines, Inc;, and 20% of the veloped

ican

its dead wood in the depression.

Trading Markets

before a' joint

William A.Fuller& Co.
Members of Chicago Stock Exchange

2<D9 S. La Salle Street
Tel. Dearborn 5600

•

Chicago 4

Tele. CG 146

11947.

Colombia 3/70
.

Cundinamarca 6%/59
Medellin

6%/54

Cent. Pub.

Serving Investment Dealers

Nekoosa-Edwards Paper

specialize exclusively in under¬
writing and distribution of securities,
providing investment dealers With at¬

Medellin 7/51

Santander 7/48

COMMON STOCK

Income

Co.

taining
own,

dealers,

retail

compete

but

serve

department
in

them

way

Bought

our

Sold

Utility Corp.
5%s, 1952

Chgo. No. Sh. & Milw.

tractive issues for their clients. Main¬

Tolima 7/47

Ry. Co.

Quoted

Common Stock

with

exclusively.

Correspondence invited.

Specialists in Foreign Securities

Brailsford & Co.

ZIPPIN & COMPANY

;

208

S. La Salle Street

FLOYD D. CEKIF CO*

Randolph 4696

CG 451

Members'.

120 South La Salle Street

Chicago 4, Illinois
Chicago

great and until ofcommunication was

(United States

new

Tel. ANDover 5700

and

•

Our Close Ties

Which it represents.
The ties between

States

States.

Was to

continues

Corp.

Chicago

their traditional irregularity.
New

Brazilian nhtlon and I extend my
best wishes to the-noble people

the

Agreements

War

Brazil is

recession have been exploded

International Detrola Co.

Members

our

Then

Inc., said predictions of a textile panies

Hearst Class A

Associate

that the form of

Your Dec¬ slow and difficult. But it is not
Independence
was physical
proximity
alone
that
brief, but just as challenging as makes friends and neighbors. It
was ours.
The cry of independ¬ is rather the fact that we have
ence,
uttered -on
that famous common interests, common prin¬
Sept. 7, 1822, told the world that ciples and common ideals.
•

the units.

Export & Commission

Wood,

President

Dribben,

1876 which marked the centenary^

laration

nient men and Gen. Robert E.

proposition.

Saul

came tpexposition at Philadelphia in •

("lifelong* friendship."

company

Co.

signed

"feast

Nu Enamel Com.

Members

;

convention here that the cotton

textile

pleasure that he

tJnited States, when he

democratic

describe

were

Textile merchants were told at
i'

We recall with

tt is interesting to note also that justly proud of a his¬ Brazil
adopted
a
constitution £
tory of government by free men. modeled closely uport that of the
t salute the Congress of the great Federal system of the United "
'

pany" to

Dearborn 1501.

Teletype CG 955

Brazil.

The

me.

country

working

their

Chicago

Roebuck

cash for the

enough

company to meet a War Assets
Administration
requirement for

the

con¬

available to

stamp which comes to the United
States
with
every
mail
from

halls,

LegZlature

to
provide a reserve ordnance unit
for the army program was Sears,

widely-publicized

Another

Approximate price 2%

boost

First

records.

new

democratic nations.
today know him
^vell, for you. have engraved his.
hPble
features
upon
a -postage
leading

Was the first monarch to visit the ;

construction awards.

big city laboring for, traction

among

honor you
have extended

pound

companies;

Illinois

illustrated

was

——•

—

more appreci¬
ative
of
the

unfa-

corporation. The "take-over" date (forces. The Chicago Association
is midnight Sept. 30. The fighting (of Commerce &Industry reported
spirit of the bankets did not go (that business activity in the city
unnoticed, and
congratulations
(declined in July—with the chief
poured in to Edward B. Hall and
his colleagues. The great impor¬ Exception of building permits and
tance

the

posi¬

all

—

is leveling off while "down- (rich fruit.

State"

•

establishing

t am

■•■■■.

Americans

Ex¬

tion from leg¬

islative

■

bom Pedro II put Brazil

ment

over

reform.

"earnings

and

and modernized by a unique city

Lima, Ohio

Freezers,

At any rate, the success of the
offering
meant
that
Chicago's
bankrupt elevated and street car.

would

ecutive

crop weather of 1947
Chicago's farm product
market-places into a^ spiral of
heavy activity and rising prices,

soon

' <s>

■

pective customers.

lines

Man ufactu r i ng

the mail¬

was

as
has

who

tome

| butter and $l-pltts meat loomed
i at
retail.
New seasonal highs

of unfavorable parts of a
rating service's analysis to pros¬

PHONE STATE 0101

reaction to
efforts made to hurt

One of these

it.

Speaking
one

Dollar-a-dozen eggs, $1

the

of "

before the*
entwined with

appear

independence.
in 1889, when Brazil felt 1
a republic fitted
identified with
better its national aspirations, the
i and some all-time records were
President Truman
the people
being chalked up constantly.
Congress of the United States of
*
jj!
iji
themselves.. This must be so if the America adopted a joint resolu- *
!
The United States Employment tree of responsible self-govern¬ tlon congratulating the country:
Service said Chicago area employ¬ ment is to blossom fully and bear upon its new form of government. -

trade

ing

•

Manufacturers

and

anonymous

ILLINOIS

Artkraft

that

United States.

sent

■

WEST ADAMS STREET

TELETYPE CO 381

I am deeply gratefulfor the invitation to
Congress of this great nation whose history is

vorable

been

ADAMS <r CO.
CHICAGO 3,

talk and the

Inflation

public

105

Stressing our close political, ideological and economic ties with the ; *
Brazilians, President Truman declares we will not forget them in :
case of need.
Predicts otlr mutual good will can solve the critical
peace problems ahead, despite UN disappointments.

bit mystified by the avalanche,
because

pro¬

Analysis Available

merchandise.

about.

came

Help Her Friends

By HON. HARRY S. TRUMAN*

A syndicate headed by Harris, Hall & Co., Inc.. Blyth &-Co.,
Inc., and First Boston Corp. offered the bonds conditionally; they
said they would take them if sub-^
only is
a
good
script-ions reached $84,000,000 by spending, not
Sept. 12, By the close of business barometer of the * nation's" eco¬
Aug. 26 the issue no longer was nomic prospects but actually is
in doubt.
The Aug. 26 sales of one of the two key elements that
$7,500,000 worth had left only a kre supporting the boom.
The
$37,500,000 unsold balance for the other, the bank said, is the mass
Of new buyers Whose actual abil¬
entire
$105,000,000
issue.
The
next day the bandwagon filed up ity to buy is greater than before
and the whole issue was sold out. the war despite the increase in
prices.
Financial people here Were a

ducers, shippers, jobbers and distrib¬
utors

The U. S. Will

The

it all

Active Trading Markets in

Thursday, September 11,1947

Chicago Stock Exchange

PHONES-^baly
—

Chicago: State 0933

5392
,m*

mm*

Teletype MI

•

17,

208 S. La Salle Street

MILWAUKEE (2)

225,.KAST WIASON ST.
mm

mm*

MM '

mmi

am*

ami

mmt

CHICAGO 4

488

I
mm*

ammm

TeL

State

9868

Volume 166

Number 4628

THE

COMMERCIAL

FINANCIAL' CHRONICLE

(1011)

Rio Results

Inspiration

an
of

Secretary

This

the
tive

nations ,w~

different
ed

lan¬

—^

action—even

terms

varying reactions

the

The

treaty for com¬

public

plete

countries

co-oper¬

ation

m u

other

opinion

regions

Western

Hemisphere.

tions

These terms

George C. Marshall

The

committed the
to

have

efforts

nations

in
to

the
be

selfof

taken

into

disrupt such negotia¬
bring to naught the

and

promote

mutual

task

the

peace.

resolving

these various factors that

act

satis¬

-collectively for the peace and se¬
curity of the New World and to

factory instrument results is
difficult, even under the

favorable circumstances.

this

.provisions
United

with

accordance

Charter

the

the
the

think

not

over¬

I must comment

statement to say that this demon¬

that played

stration of trust and
•this

evidence of

co-operation,
willingness to

a very

cerely

desirous

satisfying

manner

promoting the

for

one

the

most

the

not

With

common

friends

corrimon

parted

bond

trust and understanding.
liberations
were
open

Our de¬

to
the
It will not be easy to mis¬
represent the import of the treaty
World.
We

have

agreed

Rio

upon

Janiero,- for its text
forward and clear.

the

is
-

straigth-

Agreement was reached
voluntary basis, each nation

fnanifesting its will
•Own

•out

adjust its

position to that of the others
respect for the opinion of

the majority. No nation
over

•a

triumphed
other,, for this was not

any

contest

between nations

"get together"'
yet

there

among

resulted

but

them. And

watered-

<$own formula—no lowest common

denominator or
Vital principles.
As

already been stated by
before
a
session of the Brazilian Sen¬

Vandenberg,

ate and House of

Representatives,

the successful formulation of this
regional treaty affords the United
Nations a significant

•Example, I feel, of
great

need

example,

the

present

'The full degree of the
plishment is difficult to
The

casual

Casual

reader,

student

which it is in

time.

accom¬

grasp.

even

the

international
matters, had difficulty in visualiz-

George E. Lestrange, and John R. Klima.

MORGANTON, N. C.—Jesse
Lo.ckaby has formed J. S.

was

*An address by
Secretary Mar¬

over

System

and

Mutual

Broadcasting

American Broadcast¬

ing Co. networks, Sept.
4, 1947.

Mr. Arthurs

manager of the

was

Klima

formerly

municipal department.

manager of the local office of R. H. Johnson &

was

in the .securities business.

Mr. Klima

Co.

Lock¬

was

NSTA Notes

Hitchman Opens
MINEOLA,
is

Wm.

—

Af¬

engaging in

Saville Road.

In the

with

secu¬

past he

Erickson

INVESTMENT DEALERS ASSOCIATION OF
HOUSTON

was

Perkins

(Special to The

SAN

Financial

meeting of the Houston Bond Club, it

name

that

Investment Dealers
the

Houston

Chronicle)

organization

been

added

Kelsey

Street.

the

Co.,

staff

the

voted to

was

Investment

Association

investment

Houston

firms, which

composed

members

are

•Officers of the Investment Dealers

Claude T. Crockett, Moroney,

Taylor

the

success

importance

undersigned

Association

of Houston

an
off er, to sell nor a solicitation of an offer to buy any of 'these securities\
only by the Prospectus. This is published o\i behalf of only such
of the

as are

registered dealers in securities in the respective Stales.

New-Issues

tile conference.
'

•

Tennessee Gas Transmission

ern

Hemisphere will be taken at
Bogota next January and I think
have already developed

First

should greatly facilitate the
large
of

amount

work

be;

Mortgage Pipe Line Bonds, 3% Series due

tion

Price 102/4%

great satisfaction

the

work

representing

the

Plus accrued interest from September
1, 1947, to date of

re¬

country.

and

Con-

nally, Representative Bloom, Am¬
bassador
Austin, chief of -the
United Nations, and
Ambassador
William Pawley, represented the
interests and desires of
tees.

(Par Value #100 per

Price

gov¬

the working
commitr
They were assisted in turn
personnel

State Department.
a

our

100,000 Shares 4.25% Cumulative Preferred Stock

trained

from

$103

per

Share)

Plus accrued dividends from July 1,
1947, to date of

delivery

the

■

The result,

highly efficient team.

was

The purpose of the
treaty is to
provide for the peace &nd
security
the Western
Hemisphere.
It

lays down in precise terms
agreed action to be taken in
of

delivery

delega¬

this

Senators, Vandenberg

ernment

1967,

accom¬

plished there.
It is

Company '

$40,000,000

gen¬

understanding which

Copies of the Prospectus may be obtained from any of the under'
signed who are qualified to act as dealers in the respective States.

aggression from without

the
case

Stone 8C Webster Securities

aggression within the
hemisphere.
than that,
it reflects the
unity of purpose of the countries

Corporation

White, Weld & Co.

represented, the solidarity of their
attitude.Senator
-Vandenberg,
who follows me
immediately on
the

program

standing

and

who

Blyth 8C Co., Inc.
Goldman, Sachs

mittee which had to
handle the
most difficult aspect of the
treaty
course

8C Co.

Harriman

■

as a member of the com¬

—the stipulated

The First Boston

action

Ripley 8C Co.

Smith, Barney & Co.
-

Glore, Forgan & Co.

Kidder, Peabody & Co.

Union Securities Corporation

Corporation

Incorporated

out¬

was

•
.

W. C.

Langley 8C Co.

the

within

event
or

aggression

Paine, Webber, Jackson & Curtis

Central

particular, its

relation

Bosworth, Sullivan & Company

you

the high lights of the
treaty and,

the

Republic Company
(Incorporated)

from

without—will give

September 10, 1947

all

are:

Rowles, Rowles & Co., Vice-President; and Neill T.
Masterson, Chas.
Co., Secretary.

erous mutual

NASD

Beissner & Co., President; Russell K.

B. White &

•

This advertisement isf neither
The offering is made

Dealers

and is associated with the NSTA.

FRANCISCO, CALIF.—J.'

Andrew Cook and Harry O. Shaw

the

Association of Houston.

Two With W. J.
Kelsey

have

recent

change

Co.

Fer-

Foreign

of great

was

aby & Co. with offices in the First
National Bank Building to engage

shall

John

partner in Moore, Leonard &
Lynch, with which Mr. Lestrange

has

Benator

joint

compromise

Co.

Lockaby Forms Own Co.

The next steps in the
develop¬
ment of the solidarity of the West¬

port

•Others.

Minister

George E. Lestrange

None of the 19 nations concerned
sought to impose its will upon the

Julian

O'Brien

Next Meeting at Bogota

conducted.

desire.

conference, Dr. Raul

tribution

the atmosphere of good
will,
good feeling and mutual trust and

.as

Addison W. Arthurs

late

also associated

per¬

permitting the proceedings to
unduly prolonged.. His con¬

grati¬

We met largely as acquaintances

&, Co.

Brazil, was a most for¬
tunate choice in that he
displayed

conference

was

President Dutra

conspicuous ability in promoting
harmony in the discussions while

"Was

.accord in which it

Victor

fairs for

at¬

efforts of the last two

features

the

nandes,

Goodwill Atmosphere
me,

The presiding officer

success.

years. *

work.

apparently made it his

nothing
lacking of that nature that
could possibly add to the
prospects

frustrating delays and
Without much confusing and dis¬

fying

assembly and to facili¬

was

.Without

our

late

Marquis

the

John

Sept. 5.

sonal business to see that

sin¬

turbing propaganda that has

connected

had

;peace and well-being of the world
it can be done, and it can be done

tended

■ceased

the

rities business from offices at 149

provided in the most

and

the large

beyond
are

Aug. 8.

Interest

Acosta

important part'

tate their

I
think,
<loubt, that where nations

Patrick

that could be done
had been done for the
comfort of

conference

•demonstrate,

ceased

Everything

national action since the close of
hostilities.
the

Interest

Cortes

for the conduct of the
conference.

couraging, most stimulating inter¬

late

Hitchman

complete

possible a unanimous - agreement
ior the good of all is the most en¬

results

the

ernment had

the many varied national
points of view in order to make

The

Co.

in the successful
conclusion of the
Negotiations. The Brazilian Gov¬

-adjust

Interest

-Buckley in Harris, Upham & Co.,
ceased as of Aug. 31.

two factors

William M.

Elkins, Morris
of Aug. 31.

R. S. Dickson & Co., Inc.

Brazilian Government

Nations.

.formerly local representative for

Commended
I

most

Exchange
following

the-

Interest of the late

several

representations of those who work
under cover for local or
larger

each

and

matters

account, with their high suscepti¬
bility to the skilfully planted mis¬

de¬

fense

the

the
1

u a

announced

fe-'j

changes:

ceased

defense.

The New York Stock
has

Elk.ins

the precise

construc¬

one

Exchange
Weekly Firm Changes

governments

sovereign

Lestrange & Klima has been
formed with offices in the Union
Trust Building to conduct a
general
business in investment
securities. Partners are Addison W.
Arthurs,

op¬

international development in
sadly in need of such en¬

precise agreements regarding mu¬
tual obligations to take
definite

formal

agreement

of.

ence

reach¬

the

New York Stock

ing the tremendous complications
involved in reaching at a confer¬

speaking four
guages,

regarding

couragement.

from the Inter-American Conference at
There, in one day less than two weeks, 19 sovereign

statement

world

yesterday

-Kio de Janeiro.

brief

conference gives

portunity to report

State

Secretary of State declares demonstration of trust and Cooperation
at Inter-American Defense Conference is most
stimulating inter¬
national action since close of hostilities. Expresses great
optimism
over next January's conference at
Bogota.
returned

Arthurs, Lesfrange & Klima Formed in
Pittsburgh
PITTSBURGH, PA.—Arthurs,

Nations.

By HON. GEORGE C. MARSHALL*

terms of the Charter of the United

COMMERCIAL

THE

(1012)

CHRONICLE

FINANCIAL

Thursday, September 11,1947

Inter-American Treaty a Milestone
HON. ARTHUR

Chairman,

hardly have come as any

could

The pattern had long
is true that manage¬

good case in showing its inability to pay and in showing
the favorable relationship of wages in the railroad industry to pay
for similar work in other spheres.^
August also
In the present era, however, such mainly in the East.
economic arguments have appar¬ probably witnessed further addi¬
ently become little more than aca¬ tions to net earnings. Up to now
demic.
If your neighbor gets an it has been customary to more or
ment made a

increase of 15 lk

cents an hour in

are, per se, entitled to
treatment. It is hoped,

wages you

the

same

that
downward soiral

but without much conviction,

.When, and if,

similar philoso¬

gets under way a

phy will govern.

decision of

| Be that as it may; the

down

the arbitration board came

much sooner than it had been ex¬

pected, and in One respect it was
considerably more favorable than
had been anticipated.
For some
reason
the idea had taken hold

entire financial
community that a definite prece¬
the

throughout

been

had

dent

that
should be

established

railroad wage increases

retroactively. The most
optimistic had figured that any
increases awarded would be made
granted

the

retroactive

middle of the

The more pessimistic had
the
possibility that
would
be retroactive
to

year.

considered
they

the decision was
on
Sept. 2 and the
were
effective
only

April 1. Actually
announced
increases

Sept. 1.
no increase in costs
accepted calmly at this

Naturally
be

dan

For a substantial propor¬
major carriers it may
higher wages at the
current level of business will still
allow
highly satisfactory
share
earnings despite statements made
in connection with the
pending

point.

tion of the

true that

petition for freight rate increases.
On
the other hand, the break¬

Mar¬
wise

The

their

requested

freight

ering the permanent relief. There
is a fairly general feeling that the
chances favor such an interim in¬
due

crease

major

the

carriers

serious needs
such as New

Hagemann Elected to
IBA Governing Board
ST.

did well from
standpoint
in the

try

earnings

first seven
although there
important exceptions,

months of the year,
were

some

America,

this treaty have ful¬
filled the United.Natrons.Charter
called

adds

Group

period

ginning

with

protections

for

within

the

security
Western

our

Hemisphere.

have built

for

good

ing

arrangement"
effective

and

doing

defenses

officially

new

and

peace
area

what

"regional

which

neighbors.

set

E., K.

Hagemann

the

sunlight in

dark world.

held

Teletype NY 1-1063

statesmen

many

the

evolu¬

Union

minister these aspirations.

loose,

was

treaties

Under

sometimes
vague,
series of consultative

a n

auspices,

developed, as did also an

attachment

was

international

law.

constantly progressed in what
the greatest and most suc¬

formerly

was

comes

the

ing

pole.

The
a

—

"region" is a
great oval —

America

South

and

their

sur¬

including, out¬
the oval, all "territory of an

rounding
side

seas

—

American state" such as Hawaii,

fundamental

The
all

ratify

obligation of

American

the

treaty

the

that

"an

the

armed

any

state

against

state

shall

the unquali¬

agreement

which

states

attack

special "region."

consid¬

against

them," whether inside

World War II,

noth¬

this

encompassing North, Central and

American

Met at Chapultepec

can see

the

gigantic ellipse

ered

the midst of

and

"region,"
obligations it darThe "region" runs from

matizes.

attack

has testified.

There

about

vague

pole

be¬

now

form

has

map.

about

nor

continents

shape and substance. You

fied

adventure of the age
the comparative peace of our

pattern

fact.

cessful peace

impressive ideal

all

outside

But

at¬

Florida, Nov. 27 to Dec. 5,1947.
succeeds
Theis,
of
Harry
Albert Theis and Sons, Inc., whose
term will expire at that time.

The
covers

Mississippi
the

Valley

eastern

half

Group
of

the

state of Missouri, all of Arkansas,

and the western half of Tennessee.

Hagemann

Chairman

was

the

a
former
Mississippi

Valley Group and has served
a

member and Chairman of vari¬

ous

committees

over a

of time. He has been

Walker

since

long period

Manager of
Municipal

Co.'s

1941,

and has
been identified with the Municipal
business in St. Louis since 1923.

ready for the new

said they were

but

concept
of

old.

the

at the expense
They accepted new
not

upon

obligations but insisted
retaining the old hemisphe¬

rical

reliance.

global

result,

the

recognition of "regional arrange¬
ments," within the framework of

desire.

Any

immediately

will

the

twenty-one

which

are

alert

expected

all

Upon notification,

signed.

ready
each

forthwith

will

republics

in ultimate
Nineteen have al¬

co-operation.

the Charter, was

decide

the

basic

upon

in ful¬

immediate action

pledge

just recited and "in accord¬

defense.

Rio

We. went

tion of the United

I dare to

weeks
the prom¬
the sanc¬

three

tomorrow to fulfill
ise of Chapultepec and

ago

ter.

the

attack within

armed

region"

Nations Char¬

assert, as Secretary

said, that the re¬
sults exceed our fondest expecta¬
tions.
When this treaty is rati¬
has

Marshall

fied,
peace
security will

and
be

justice
on

and
far firmer

foundations in our Western

World

regardless of what happens else¬
where and regardless of the ob¬
which

plague peace else¬

nental

the principle of contir
solidarity" and in the ex¬

ercise

with

ance

collective

right

by Article 51

summary

authorized

of the United Na¬

tions Charter.
This
sive

immediate

action

will

defen¬

mutual
be

followed

prompt consultation to determine

definitely

plans.

These

collective

upon

plans

listed.

are

They may comprise the recall of
chiefs of diplomatic missions, the

breaking of diplomatic
the

where.

the

self-defense

breaking

relations,

consular

rela¬

iterating

calcitrant

liness

their

> >

>:>

will

remain

united, pledge themselves to
solidate

and

friendship

strengthen

and

good

their

neighborli-

To submit every controversy
which may arise between them to

peaceful settlement:
of

armed

without
vent

attack

the

But

from

case

within

hemisphere, to

pre¬

repel aggressions against
any of them through effective re¬
ciprocal assistance."
I

shall

mitments
be

speak
in

detail

these
so

com¬

there

can

misunderstanding.
But
first I linger briefly on the his¬
toric background because of its
significance.
There 'has ' always

ANGELES, CAL.—Charles

Paine, Webber, Jackson &
Curtis, 626 South Spring Street
■'
*An adddess by Senatot Van¬
He was formerly Ventura man*
ager for Livingstone & Co., and denberg over Mutual? Broadcast¬
prior thereto was with First Cali* ing System* rand American Broad¬

casting

Co?ffSept. 4, ,1947.

Nothing that we have

own.

Within U. N.

con¬

ness:

C. W. Flesher Joins Staff

fornia.

these

complete or partial inter¬
ruption pf economic relations, sus¬
pension of all types of communi¬

■

Green 9-6400

first

the

Conference.

formally organized in 1890 to ad¬

What

Hemisphere.
an

done is
aimed at any 'other fenertiies than
I have constructed the follow¬
war and aggression and injustice,
ing sentence from literal phrases
the three deadly foes of civilized
taken out of the text of the new
mankind.
I repeat here what I
treaty. Because it is literal it is
authentic. It says what .it means said to the Brazilian Congress last
week.
If there should be those
and it means what it says.
This
who suspect us of ulterior motives
is the sentence:
they will merely confess their
"The American
republics, re¬
■a.-'t,

■i

with

New York 4, N. Y.

recog¬

1826 by Simon

Pan-American

stacles

Friendship and Good Neighbor-

vention which
will

LOS

Telephone BOwling

do¬

tremen¬

National Con¬

W. Flesher has become associated

JS Broad Street

for

and

ourselves

also have

new

dously significant and progressive
pattern for others to follow. This

(Special to The Financial Chronicle)

STOCKS-BONDS

was

summoned

contributed

The

creating

Of Paine, Webber Finn

RAILROAD

signers

three

Bonds

asn*t*HTEKn

who

authorized, with,
its own
plement -to the United Nations
particular emphasis upon the un¬ fillment
and part of its machinery.
The
impaired inherent right of selfhave

Nations.

United

pact is not a substitute for
the United Nations. It is a sup¬

our

Department

Special Securities

the

This

year

Guaranteed Stocks

possesses

tions

represent the
Mississippi
for

domestic.

pact of peace

teeth. We have
not deserted or impaired one syl¬
lable
of
our
overriding obliga¬

Association of

Mr.

indus¬

sealed

ment Bankers .obligations

Valley

and

foreign

have

which

LOUIS,

too seriously.

whole, the railroad

of us

tion of this ideal across the years.

safer

present it to the
Senate for ratification with every

creases.
a

lands

Doctrine."

"Monroe

early

American

shall

world.

formerly

high

importance upon the
road
to
a
happier
and

ble

gressors,

If they were

of incalcula¬

milestone

and

Central

•

granted the industry
might just as well close up and
we could go back
to the covered
wagon days of transport. It would
be just as efficient and econom¬
ical. The best guess at this time
is that eventually the operating
brotherhoods will get just about
what the non-ops were awarded,
probably in a combination of rule
changes
and hourly wage in¬

will be

American

recognized long | now becomes a working reality.
our It is specifically identified.
What

was

famous

nized

Western

twenty-one American re¬ tack inside the "region" is rec¬
Pennsylvania. confidence that it will deserve
publics met at Chapultepec, where ognized to be of special hazard.
If it is granted it should be ef¬
prompt and enthusiastic approval they
logically
made
common That is why non-treaty areas like
fective by Nov. 1 at the latest, and
of
its
traditionally
American cause in that tremendous conflict,
Canada and Greenland, are in¬
it could corne as early as the mid¬
ideals.
and promised to perpetuate this cluded
in
the
dle of October.
Such an interim
"region"
even
effective
solidarity
thereafter. though they are not presently in¬
Effective Solidarity
increase for the last two months
Then came the United Nations cluded
of the year would probably just
among treaty signatories.
We have re-knit the effective
Charter at San Francisco. In one Provision is made for other Amer¬
about offset the 1947 results of the
solidarity of North, Central and
voice these twenty-one republics ican states
wage increases just granted.
to adhere later if they
South American against all ag¬

York

have made de¬
mands for increased hourly wages
as
well. Some rule changes will
probably be granted in the long
run.
The major ones, however,
taken

col¬

have asked for an leagues on our delegation.
I report with deep conviction
interim boost averag¬
ing around 10% to be effective tha'Mhe conference agreed upon
while the Commission is consid¬ a treaty which, in my opinion,

they will probably

pay

warmest respects to all

and

crease

question of what the oper¬

not

preached,

Vandenberg

unity

emergency

ating brotherhoods will get is still
undecided. They have demanded
far reaching rule changes and by
the time this column is in print

need

the
A.

peace

security.
practiced

National
Board
of
Governors
of
the Invest¬

(

and

upped
rate in¬

cause

tional

have

railroads

the south

the
for

high moral grounds in

ago on

Inter-American

interna¬

potentiality, on the
other hand, that is highly favor¬
The

republics.
own

_____

the

among

Bolivar

sable

There is one

able.

interest

leader-

earnings

priced merely on their
through August.

special fraternity of self-

ship, for the
indispen¬

earnings because of the

recession

Secre¬

higher costs, many of the better
railroad stocks would be under-

elected to the

the near term.

over

under

shall's

should be even a
in traffic levels

there

ties

minor

tary

potentiali¬

to earnings

States

United

worked

grounds that retroactive wage in-,
creases might cut into them seri¬
ously. Now there is no excuse for
fears on this score.
Even if the
last four months of the year bring

MO.—E. Kenneth
Hagemann, Manager of the Mu¬
rapidly in recent years. Even be¬ nicipal
Department
of , G. H.
fore the most recent rise in wage Walker & Co., has been unanimously
costs there was ample cause for
as

upon the del- <S>—
egation of the been

unison,

been

concern

at the recent

disregard these earnings that
have already accumulated on the

point of railroad operations
rising
steadily
and

even

has

glad to cooperate with Secretary of State Marshall on this radio program as
historic Inter-American Conference at Rio de Janeiro which has just
terminated its labors. Without thought of partisan politics, Republicans and Democrats
I

did

less

in no net

Senate

safer and happier

surprise either to railroad manage¬

ment, railroad analysts, or railroad investors.
before been set in other major industries. It

on results of Rio Conference, states regional agreement will lead to
world. Declares it fully reflects purposes and formula of United Nations, and
will greatly benefit ourselves as well as our neighbors.

unions

increase awarded the non-operating

VANDENBERG*

Relations Committee,

Vandenberg, reporting

Sentator

The size of the wage

Foreign

Nothing

do here

over¬

responsibilities to the United

Nations, to which we renew our

categorical
Everything we do here is

allegiance in a special,

pledge.

cation, and the collective
armed forces.

use

In all but the latter

—namely, the use of armed forces
—all treaty states will be bound
by

two-thirds

vote.-

There

paralyzing veto upon any of
these peaceful sanctions. One re¬
no

nation

—

one

non-co-

operator—cannot nullify the loy¬

subtracts

single word from our

one

all

Formula

tions,

alties

the

stop the

even

others.

cannot

others from using

collective force.

are

building

mutual trust. This is

upon

true

partnership which represents the
greatest advance ever made in the

thought of business of collective peace.
There is one other unique iniimperialism and is
dedicated solely to
the orderly plement. With particular regard
intra-American
border
dis¬
pursuit of international justice to
and security.
Thus we give the putes,
the Pan-American con¬

devoid of the remotest

conquest

possible encouragement
strength to the United

greatest

and aid and

Nations

set them an ex¬

and we

high emulation
march—we make

ample worthy of
forward

and

new
ress

even

sensational prog¬

in the spirit of those

who

unity
peace

dedicated

the

immediately

pall
sus¬

hostilities, restore the

pend
war

will

the contending states to

pre¬

status and proceed to settle¬

ment

by peaceful means.

to adopt

{hese

Refusal,

pacific actions will

pioneers largely determine who shall be

Pan-American

of
between the republics, of

sultation
upon

special welfare

branded

who

must

the

thus

(Continued

"aggressor"
take
on

the

page

and

conse-

25)

Volume 166

Number 4628

THE

COMMERCIAL

British Dumping of American
Securities Improbable
!

Editor,

Analyst

A Pill

criticizes

for

little likelihood British will unload American securi¬
collateral by RFC, to meet dollar shortage. Says
amount, $400 million, would barely meet needs for one month.
con¬

der

Re-

construction

sold relatively readily,
though their prices would doubt¬

Finance

Cor¬

less be affected

poration

loan,

the

has

could

again

"In¬

Government Loan Drawn Down

The

April
18,1946 ("Brit¬
ish

1946

Hold¬

L. Scu^Her Mott

ings of Amer¬
ican

Editor
'Investment

Securi-

ties") critics
and

since

of the then nronosed

granted

billion

$3.75

loan to Great Britain
complained
that the British had a substantial

equity in the loan

and suggested
that they be required to liquidate
the
collateral, pay off the loan and
employ the equity to cut their re¬

quirements under the new U. S.
Government loan. Our own con¬
clusion

that

was

would not

dition

for

the

which

turned

however,
now

such

liquidation

required

con¬

government
to

out

similar

loan,

the

case,

criticisms

are

$3.75

down

billion

loan

follows:

(5% months), $600 million;

first quarter of 1947, $500 million:
second quarter 1947, $950
million;
and

riviing"

British

drawn

was

Govern¬

ment

July 1947 alone, $700 million.

Since then $150 million more had
drawn and the British ex¬

been

pected the remaining $850 million
to be used up this October.
It

was

announced

Aug. 20
temporarily
suspended, with U. S. approval,
conversion of pounds into dollars
that

the

British

had

except for

the U. S., the Philip¬
pines and parts of Latin America.

Another
drawn

$150

million

the

loan, leaving a $700
million balance, not to be reduced

until
the

further

time

consultations

as soon

drain

one

cuts

off

the

British, but

would be able to do is to bolt the

stable

door

Mr.

but

g r eements

Little

Recent

RFC

that

has

taken

elicits

the

selling of

the loan

$25
been

have

been

dimensions
In fact, since

place.

granted in 1941, only

was

have

information

any

million

securities

disposed of, and these
sold for more or less

necessitous

reasons,

funding

retirements of issues,

such

re¬

others

course

Hence

inquiry at the offices of

the

about

Selling Done

British

the

RFC

Furthermore,

tention to sell
statement

known, and the
made

was

in¬

that

the

Initiative

for: any selling would
have to come from the British.
The

RFC

loan

covers

the

could

represent only a month's
even less, on the part

needs,
of the

British.

Either

the

loan

RFC

would have to be paid off, cutting
in half the available
amount, or
the

loan would, be

left

collateral

by half the former value in
marketable form.

non-

Dalton

the

evident

RFC

solve

that

the

collateral

the

British

would

dollar

not

problem,

nor even

the

securities here regardless of their

interest.

prospects

sult

merits and would

the

British

re¬

receiving less

none

merely

confirmed Mr.

appar¬

ently being reduced at the rate of
about $40 million annually.

liquidation
lateral

Division of Collateral

our

April

article

1946

the situation has not

changed

preciably since then)
that the

(and

collateral fell

ap¬

showed

into

three

and

the

continued

reduction in the RFC loan, it does
not
appear
to
us
that
forced

hence

would

criticism

RFC

col¬

warranted,

action

such

despite

British
is

and

improbable

and

comment

largely,for political advantage, in
some

quarters.

could

dec¬

the

j)r> Paul

Einzig

purely temporary

was a

emer¬

gency measure, but while that re¬
mark conveyed the impression that
the present state may

after

years,

continue for
Snyder's state¬

Mr.

ment it is now considered

that

(a) listed common and
preferred stock of 83 representa¬

tive American

companies; (b)

listed American

(of 68
(c) capital stock
of 40 British owned American in¬
surance companies and an
assign¬

earnings of the American

branches

British

insurance

The value

was

about

(a)

$380.

that

million;

time

(b)

$215 million; and of (c) $200 mil¬

ties

the

less

been
net

SAN

the

currently,

there

may

appreciation

some

worth

Financial

the

companies, and value

insurance

now

is esti¬

mated from $700
•The loan equity

to $800 million.
is thus around
$500 to $600 million currently.
The listed securities and some

San

Francisco

has

Hoelscher
Russ

possible

Co.

Ex¬

Sherman

with

offices

Hoelscher.

was

partner in McNear &

idea

appears

the

$400,000,000

frozen

were

face

absurd.

weeks.

For

which

the

even

now

released it would only

requirements
And

for

although

few

Mr.

Dal-

Westenberger Opens

(Special

LOS

Lorenz

The

Financial

Chronicle)

ANGELES, CALIF.
H.
Westenberger

—Dr.

has
opened offices at 618 South Spring
Street to engage in a securities
business.

the

unlisted

*Reprinted

Timing,"
nomics

from

"Investment

published

a^d

the Eco¬
Investment Depart¬

ment, National
search

(representing

Securities

Corporation,

City, Aug..21,-1947.

New

Re-

York

B. M. Balson Now With

doubted that
fice

its slogan, it is
he would sacri¬

even

would

the
mere

feW months.
is

was

formerly

& Durham.

the final

They seriously
the abuses an

Investment

Field

Sept. 16, 1947 (Pittsburgh, Pa.)
Bond Club of Pittsburgh Fall
Outing at the Shannopin Country

Sept. 19, 1947

(Chicago, 111.)

cago

Sept. 26, 1947 (St. Paul, Minn.)

dollars.

the

now

too

short

Dalton

view

assumption

that

view

countries, having
large amounts, are

foreign

converted

This

Sept.

of sterling.

refuses to

see

adverse

grossly

1947

(Atlantic

*1947 (Hollywood,

30-Dec. 5,

Fla.)

matter of weeks by

Investment Bankers Association

trade

that resumption of

and

ican Bankers Association.
Nov.

international sterling position can

balance,

28-Oct,

Annual Convention of the Amer¬

passing technical strength of the
a

Country Club.

City, N. J.)

What Mr,
is that the

This is under
an

Annual Convention

the

Holly-

Hotel.

Beach

wooci

to be construed as an
offering of these shares for sale, or as
offer to buy, of as a solicitation of an offer to buy, any of such shares.
The offer is made only by means of the
Prospectus.
no

circumstances

NEW ISSUE

September 9, 1947

J,>:
considered

Britain's

possible

disposal,

beyond

100,000 Shares

un¬

Florida Power &

freezing the balance of $400,000,000.
Even the possibility of the
Washington Administration agree-,
ing not to insist on the immedi¬

into

conversion

ate

dollars

sterling received from third
tries

for

payment

coun¬

\XA% Preferred

American

dismissed

now

afford to

un¬

($100 Par Value, Cumulative)

convertibil¬

resume

ity?
The trouble is that the
and

the

Bank

optimistic

ability

vertible.

perience

Treasury
England are as

making

sterling con¬
The-lessons of the ex¬

rate

the

Price $100 per share

about Britain's

ever

the

last

entirely lost
almost
the

two

bad

months

them—or

entirely.

breakdown

faith

plus accumulated dividends from September 1,1947

They

which

Copies of the Prospectus may be obtained from any of the several under¬
writers only in States in which such underwriters are qualified to act as
dealers in securities and in which such Prospectus may legally be distributed.

con¬

flaws

and

many

foreign monetary authorities made
use

the

Treasury

conversion

and

Bank

facilities.

England
complain bitterly about
way they have been tricked
by foreign treasuries and central

The First Boston

officials

Smith, Barney & Co

Corporation

the

banks who made

loophole
Britain

tences,

use

of every pos¬

secure

under

Incorporated

pre¬

Stone & Webster Securities

Central Rerublic

implicit

trust

placed in the good faith of foreign
monetary
authorities
in
whose
hands the application of conver¬
allowed

that

distrust

they

cannot

Lazard Freres & Co.

White, Weld & Co.

(Incorporated)

A. C. Allvn and

Tucker, Anthony & Co.

•

Equitable Securities Corporation

Company

(Incorporated)

»•

Company!

Incorporated

Esttbrook & Co.
"

j
Riter & Co

Laurence M. Marks & Co.

Stroud & Company

The Wisconsin Company

Incorporated

At
was

Harris, Hall & Cempany

Drexel & Co.

Company

Paine, Webber, Jackson & Curtis

Atwill and

rest.

Union Securities Corporation

Corporation

absurdity

was

Harriman R'pley & Co.

•,

W. C. Langley & Co.

Kidder, Peabody & Co.

Shields &

the

dollars

false

at any rate through

Glore, Forgah & Co.

Blyth & Co., Inc.

extremely "liberal" interpretation
of the terms of the
Agreements.
But, then, critics of the Govern¬
ment pointed out months ago the

was

City. Mr. Balson
partner in Balson

Twin City Bond Traders Club
Annual Golf Party at the South-

$2,400,000,000
drop in the

and would disappear in

ocean,

tibility

Boris M. Balson has become as¬
sociated with
Filer, Schmidt &
Co., 30 Pine Street, New York

EVENTS

the gold reserve for meeting

circumsatnces

ton

ster¬

convertibility without heavy

losses

the insatiable dollar requirements
of
other
countries.
In
existing

that time the British attitude

Filer, Schmidt & Co.

stopped, it would be possible to

Britain's

Treasury has adopted "charity

from

L. H.

re¬

work

be offset in

begins abroad"

reserve

believe that, once

ton's critics believe that the Brit¬

sible

Hoelscher.

Cabinet

premature

Municipal Bond Club of Chi»
Outing at Knollwood Coun¬
try Club.
i»

based

the

undue

leaving it to the

decision for itself.

many

vertibility to technical

Building in partnership
C.

formerly

Stock

formed

approving

once

British

would henceforth

attribute

Opens

Chronicle)

FRANCISCO, CALIF.—
Hoelscher, member of

change,

with

lion, or a total of $795 million,
■plough the value of listed securi¬
have

The

Sherman

the

companies.
i

(Special to

securities

companies), and

ment of

Hoelscher & Co.

the

Club.

high degree of convertibil¬
ity might be restored in a matter

any

un¬

ling balance is eligible for con¬
version, the Bank of England

weeks.

resumed without

Instead of

foreigners to decide when

suspension

of convertibil-

ity

risk.

laration that

are

classes:

into

against

abusing their rights convertibility

Dalton's

circumstances

pill

million

Hence

sumption of convertibility.

the less cocksure advisors

likely. How, then, could Mr. Dal-

now.

COMING

holdings.

these

that

So it is quite possible

that he will succeed

convinced that if they can pre¬
vent
foreign
authorities
from

goods

all

than

misleading

are

than true potential value for their

Considering

fur¬

of the

fective

discredited

completed.

The loan balance was $248 million
in March 1946 and is about

$190

realize

in¬

has

horse

are

Nor

sale

fails

tend

balance

sweeping world-wide
demand for dollars, and of Brit¬
ain's inability to export primary
necessities, any technical devices
to
improve the system of con¬
vertibility would be no more ef¬

now.

his

and

that the United States would place
additional
dollar
resources
at

Conclusion

postpone appreciably the
necessity for. other measures.~ It
would presumably depress certain

underlying securities and invest¬
ments, which also

that

paid

being

down from income received

collateral

probably be readily realized would

rather than to realize cash
per se.
Sales since April 1946 have been

negligible.

remain.

$400 million

the

after

engaged in doing

ish

being voiced.

would

adverse

This is precisely what they

gone.
are

various

with

for

tne

to realize was that by the
they discover, that they are

being cheated they would have no
resources left, and all they

Mr.

re-negotiation

cover

This

;

time

about

p a y m e n

vestment Tim¬

failed

its resumption

point¬

ed out in

ing"

made

Snyder

heavy sacrifices might be entailed.

was

Whitehall and Threadneedle Street

'statement

the

and

cussion.
As

collateral)

the

earthquate.

gravely
perturbed by

through negotiated
taking over of companies,
unless a long time were
taken/

sale

earthquake."

were

unfavorably. But
the other half could probably
only
be realized on

cropped up in
financial
dis¬

like "pill against an

August 20

total

the

face

LONDON, EN GLAND—Those in Britain who have welcomed
with a sigh of relief the shedding of the burden of convertibility

had

un¬

half

ther.

"simple souls" in British Treasury and Bank of England
optimism on prospects. Maintains Chancellor

unwarranted

are

collateral

about

converlibility
crease

Dalton fails to realize in face of dollar demand technical devices

Recently that hardy perennial, the story that the British
sold, were going to sell, or should sell the American securities
stituting the

<$>

Einzig maintains possibility of early return to sterling con¬
vertibility, as indicated by Secretary Snyder, is absurd. Strongly

"Investment Timing"

Earthquake

PAUL EINZIG

Dr.

sees

ties, held

(1013)

Against
By

SCUDDER MOTT*

By L.

FINANCIAL 'CHRONICLE

Company

Sterne, Agee & Leach

Hayden, Miller & Co.
Courts & Co.

The Ohio Company

Chas. W. Scranton & Co.

Clement A. Evans & Company

Fahey, Clark & Co.

Incorporated

very

foreign authorities

well

unless

J. J. B. Hilliard & Son

Leedy, Wheeler & Alleman

Johnson, Lane, Space and Co., Inc.

Incorporated

and until theJatter;

are

caught, at

abusing the5(confidence placed iri

them.

What

the

simple

souls

Thornton, Mohr & Co.

•14

COMMERCIAL & FINANCIAL CHRONICLE

THE

(1014)

Amer. Bankers Ass'n

Bank and Insurance Stocks

Causes and Remedies of

Convention Sept. 28th

Euopean Economic Distress

The American Bankers Associa¬

VAN DEUSEN

By E. A,

This Week
The

Insurance Stocks

relationship of capital and surplus to

question of the

mium volume

—

tion will hold its annual conven¬

pre¬

May 22, 1947, issue

discussed in this column in the

was

tion

A list of 30 fire insurance companies was pre¬

of the ♦'Chronicle."

sented which showed, among

other things, the ratio of capital and
of 12-31-46 to net premiums, written, in 1946, for each
"company. It was pointed out that, on the assumption the ratio should
not be permitted to fall much be-<£
So far, this year only five
low unity," half the companies in tion.
"surplus

the list

tal increases.
to

means

what

mind

one.

constitutes

Union

the

and

Providence-Washing¬

All of these companies have

ton,

low

action, viz: Aetna,
Falls, National

Glens

Camden,

However, the indus¬

try is by no

taken

have

candidates for capi¬

were

at, Atlantic

City, Sept. 28 to
Oct., 1. The convention proper will
begin with the annual meetings of
the divisions and the sections, on

By LOUIS DOLIVET*

editor, though acknowledging overall picture of Europe is j
most
frightening,. says economic situation* there is not as disastrous j
as it looks, since
63% of Europe is already producing at or abov$ j
prewar levels. Estimates execution of Marshall Plan may require. >
as much as $30 billions. Ascribes had situation to
disruption of i;

Monday, Sept. 29; Sunday, Sept.
28 being given over t6 meetings of
committees, commissions} and
councils.

convention

The
as

sist

general sessions,

of two

the

whole Will cori-i

Association

trade channels and shortage

one

Tuesday morning, Sept. 30, and,
on Wednesday morning,,
Oct. 1. The convention will close

pean

the other

Wednesday,

noon

economic recovery.

of dollars but predicts ultimate Euro*
^

If you

take the overall picture of Europe, which is now most
frightening, you know that approximately $30 billion will bo
recommended

low

capital ratios, as follows:—
There will be a reception and
by the Euro¬
safely decline, nor for that matter, .76, .55,' .74, .46 ,and .84. \
tea tendered by the New York
pean Commis¬
This column also stated on May
the high ppint .to which it is de¬
Clearing House Association late; sion for
help
sirable. to let it rise.
»
j 2, that a number of companies, Sunday afternoon, and a concert under the
The average ratio of the 30 com
by reason pf their" high capital on Sunday evening by the Phila¬
Marshall Plan.
panies was 1,28, but individual ratios, were in position to increase delphia Orchestra with Eugene'
I think this
ratios ranged from the low ,48 of substantially their volume of bus¬ Ormandy conducting.
figure will: be
American Equitable to the high iness. As a matter of fact, irre¬
Among the speakers. to address reduced b e
3.14 of
Phoenix.
Fifteen com¬ spective of: their capital position, the convention are:"
Winthrop W: cause it is im¬
panies had ratios below 1.0 and practically all stock fire com¬ Aldrich, Chairman of the board;
possible
to
fifteen above.
panies, whose mid-year figures of the Chase National Bank of foresee
today
In view of this condition of low have been published, report more New
York;
Chester C. Davis,; that this coun¬
capital ratios, coupled with the business written during the first President of the Federal Reserve try would ad¬
continuing expansion of premium half of 1947 than during the same Bank of St. Louis; Dr. Marcus; vance, under
volume and also the presumption period in 1946. The accompanying Madler, professor of finance, New
pretty- unprepoint

which

the

ratio

may

happened

above

table

shows figures for 15

com¬

York

University; Beardsley Ruml.

cise

Chairman of the board of R. H.
levels so long as present
panies. The group is. not entirely
inflated prices, and costs prevail,
Macy & Company, New York;
tile same as used in the former A. L. M.
it is perhaps surprising * that s6
Wiggins, Under-Secre¬
few fire insurance companies have article, because reports from many tary of the Treasurer; H. Earl
taken steps to increase capitaliza¬ companies are not available; "
Cook, member of the board of
pre-war

Ratio

Cap. & Surplus

(000s Omitted

American Alliance

$1.81

Bankers & "Shippers—*

—L.

Firemen's Insurance.—
Glens Falls

,67

*—;_w'■

$2,377
,2,384
6,606

7,611

20,472

24,702

16,795

20,709

15,148

-16,994'

.74

8,604

10,211

Great American———

1.48

14,038

f Ins. of North America-

2-67

20,909

Jersey

Insurance

National

.85

Union

| Northern

,89

Pacific Fire

.88

12,821

that

the

companies

with

72.3

those

with the

lower

24.7

22.5

11.8

25.0

6.9

4,327

18.1

7.4

3,034

22.6
43.2

15,030

17.2

11.8
30.4

-4.2

33.5%

15.4%

trade.
Which
repercussion; there-;!
fore, the fact that Great Britain is
buying wheat and: other food
prpducts from Russ?a* and the
eastern
area
is obliged to buy
them from the United States and
Canada, which increases, in turn;
the shortage of dollars,
As soon
as the food markets of eastern Eu¬
rope are opened, I have no doubt
that the dollar shortage will de*

the

high

only

makes

Summarized,

shows the

the

ratio

table

Intermediate

Premium Volume—1947 First Half

% Increase Over

offering of

is¬

of debentures for the Federal

sue

following averages:

successful

made

Aug.

Credit

Banks

was

Charles

First Half
.

Average 15 companies
Average 6 companies (ratio

—

ever

Second Half

1946

Dunn, New York, fiscal agent for

1946

33.5%

.—,

—-

1.0)——

—

■

47.4

15.4%
■

■

24.3

Average 9 companies

(ratio Under 1.0)

Since the first of the

24.3

—

9.6

clined, Standard & Poor's weekly
index registering 115.9 on Sept. 3,
1947 compared with 119.5 on Dec.

hampered by relatively
inadequate capital funds are likely

tire

to be favored.

for

31,

insurance

1946.

stocks

If there

year

most

have

is to

de¬

be any

not

are

Sept. 2, 1947 and $8,480,000
new

money

NATIONAL BANK

and

of INDIA, LIMITED
.Bankers to the Government in
Kenya Colony and Uganda

INSURANCE
4

STOCKS

Head

Office:

26, Bishopsgate.
London, E. C..
.

Branches in India, Burma,
Colony and Aden and

Ceylon, Kenya
Zanzibar

this can only be done

overall economic plan. <
some of the export and

Take

import figures of France. France*
import about

back in 1937, used to

$3 billion worth of products every
year.
As you know, the United
States; with immense effort, after
the visit of Mr. Leon Blum, 16
months

approved $2 billion
divided into three
kinds of credits.
Now, in one
single year," France needs" imports
of about $3 billion and she only
ago,

to' France,

exports up to the value of about

$1.2 billion.* Therefore, you have
a lack of $1.8 billion.
However
these
$1.8 billion are
only a
deficit in a short-range
policy

the

hard

currency

areas

money

purposes.

(Special to The Financial Chronicle)

gap,

and

the duty- of

disastrous

it looks. About 63%

Europe is producing today at
orewar levels or higher.
I saw

Mr. Attlee (Prime Minister of
Great Britain) a few weeks ago
and
we
talked at great length
! about the economic situation. Mr.

the

the industrialists of the earth

gap.,
I am not

you

500,000.

/■

economists and of the traders and

know, basically, the
European economic situation is not

As of

and

to intervene and to

was

Baker With Hope & Co.

back.

have, between the short-?
the long-term policy a

term

sion for Asia.

$40,375,000 of debentures due

Sept. 2, 1947, the total amount of
debentures outstanding Was $391,-

BANK

crease, and

Within

$48,855,000 1.15% consolidated

logic in forthcoming4 market ac¬
tion, it would appear that the
stocks of those companies which

fire

Louis Dolivet

submit

tries, by the World Bank, by the
International Fund; and by vari¬
debentures dated Sept. 2, 1947, ous special agencies such as the
and due June 1, 1948. The issue' Economic Commission for: Latin
Was placed at par.
pf the pro-: America (which is being created
ceeds $40,375,000 were used to re¬ now) and the Economic Commis¬
of

any

the banks, The financing consisted

•

(that is, not to the United States
or Canada),
but to some of the
soft currency areas, such as South
America, the British Dominions—;
and we will then findHhe equilib¬

Division meeting.

company With below average in¬
crease.

have

land

They are not a real deficit in a
long-range policy,. because the
production of France will go up*
And if you were the members of
a board of directors of the greatest
bank on earth, and would have
rium' in that direction.
"
$100 billion at your disposal, %
I think that the Marshall Plan would try to- convince you to loan
will have to be expanded to in¬ to France $9 billion for five years*
clude* not only the direct Ameri¬ And I could, I think, at least try
to prove that you would get your
can help but help by other coun¬
not

greet the delegates at the National

with a percent increase Bank
higher than average," and Great

ratios.

Glens Falls is the only low ratio

13.2
21.3

From Prague
little

exchange in trade going on with
Nor does Eng*

terms, a
of $29 or
billion.
I

that the
practically

western Europe.

that, economically,
this does not matter.: Whether the
United States will approve $5 bil¬
directors of the Federal Deposit lion or $10 billion — if the United
Insurance Corporation; Arthur A. States
is
putting
through the
Hood, editor of the "American Marshall Plan, and-I think it must
Lumberman and Buildings Prod¬ —then that $29 or $30 billion will
ucts Merchandiser;'? Chicago, 111.; somehow have to- come,: because
Joseph
Stagg Lawrence, Vice- that, represents the heeds, And if
President of the Empire,; Trust $29 billion are the needs, it might
Company, New York City;, R. D. be that there will be longer nego¬
Mathias, President of" the Old Na¬ tiations and that part, of it Will
tional Bank at Evansville, Ind„ come "from the United States, part
and
President
of
the
Indiana of it from Canada, part of it from
Bankers Association; C, W. Bailey, the British Dominions, and part
President of the A. B. A., and jthe of it might come from some of the
Presidents of the four divisions of Latin
American countries; and
the Association. Preston Delano that then the Europeans might be
Comptroller of the Currency will able to deliver goods much faster,

company

considerably greater extent than
are

34.3
31.1

18,960?

14,538
15,681

expand¬ American
premium volume to a

their

"12.2

1,702

the high capital ratios are

ing

23.3

27.8

;

posi¬

15.2
20.7

53.9

1.34

This table brings out very

tively

25.1%

47.5

13,400

11.7

9,637

4,029
2,714 "

13;244

.72

Average

2,475

1.49

St. Paul Fire & Marine
Springfield Fire & Mar.

7,707
3,664

22.6.

-28,7;.
-

36,035

•

28,889
1,522
9,014

1948

36,3%

11,554

15,166

1,389

.46

Insurance.

4946

2,664

5,912

% increase Over
Ist Half 2nd Half

$2,973

3.10

1947 '
1st Half

16,748
13,456
13,298.

.78

Fire——.55
Continental Insurance3.03

Fidelity-Phenix

2nd Half

$2,181
2,173

Camden

•

—r—

-1946

•

of 12-31-46 1st Half

But

completely.

are

down to Russia, there is very

Net Premiums Written

to Net Premiums

sum

$30

France

markets

cut off

volume must remain

eastern

that

International Editor, "United Nations World"

the

Thursday, September 11,1947

try to fill that
:*>

going to give, because
my time is up, the other figures
for other: countries-, but by and
large
you
find
everywhere
exactly the same situation. • That
is Where politicians alone are un#
able to. fill the gap which exists
today between-the two worlds of
non-dollar, and

the dollar and the
*

example,Which is only" due to financial
O. Baker is now connected, withi that the major problem of his?
aspects because of the fact that
Hope & Co., San Diego Trust &: country is not the small amount
84 % of the gold reserves of th§
Savings Building,
I of production for export, but; the earth are ; concentrated in
thi$
difficulty of exporting, to- the hard
country and that, therefore,: :th^
SAN

DIEGO,

CALIF.—Francisj

Attlee

considered,: for

Laird, Bissell & Meeds
•

120 BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Bell Teletype—NY 1-1248-49
.t

(L. A. Gibbs, Manager Trading Dept.)

Subscribed Capita!
£4,000,000
iPaid-Up CapitaL__.*__£2,000,000
Reserve Fund_
_£2,300, OOO
,

Members New Fork Stock Exchange

The

Bank

conducts every /description,'of
banking and exchange business ;

Trusteeships and Executorships
also undertaken

currency

Royal Bank of Scotland
Incorporated by Royal Charter 1727.
HEAD

OFFICE—Edinburgh

Branches

throughout Scotland

LONDON OFFICES i

COMPLETE COVERAGE

3 Bishopsgate, E. C 2
8 West Smithfield, E

BANK STOCKS
INSURANCE STOCKS

Buiuyuff j co
OF

Primary Trading

I IXfrS T R E E T

LOS itiOELB 14, CALIFORNIA

Markets—

YEIFFHONE TRINITT 7»7I
YKETYFE: u m,

Analytical and
Sales Service

NEW YORK
CHICASO

DALLAS

FHIIA0ELFHIA
•

DETROIT

ST. LOUIS

SAN FRANCISCO

SEATTie

181 as against 174 for
the
United States of America;
at the figures:
While it is a much smaller coun¬
for example, of France, you get

Burlington Gardens, W. ft,

ada is VP to

paralyzing element.
But if- you look

TOTAL ASSETS

£115,681,681

Coriuicthtj "I'l/itH t»
IOSTON

the; hard

rest of the world has/not the, nec¬
relatively overessary gold coverage in order to
by exporting' to
be able to buy i dollars,, and gol<|
France, Belgium, etc., they can
is the, only product which can.
buy
get the necessary dollar credits
dollars. which* are needed.
Therefore, be¬
-I: think; that i Canada- must .be
cause everyone : wants dollars, the
dollar shortage is the most com¬ brought: in much more to: the, in*
ternational circle because Canada
plete shortage today. I think' that
will change brefty soon.' But, for is the one country in. the:world
the -; time being and until a hew which has achieved, the highest
plan - comes into operation-, the development of national income
dollar shortage remains the basic of all, countries of the earth. Can*
saturated; -and

64 New Bond Street, W t

CAtJFORKIA*

214

C. ft

Charing Cross, SWift

areas, because

currency areas are

Associated Banks:.

Williams

Deacon's

Bank, Ltd.

Glyn M:Us &

do.

try, nevertheless: this, fantastic and
important section of
phenomenal growth is a pretty
production—being 84%
interesting indication that that
of prewar levels,
and in some
country should play a much large^
cases up to 106%.
But what has
part in economics.
; '
Therefore, I should like to sub*
*From a transcript of an ad¬
into-

most

industrial

dress by Mr. Dolivet before the
Export Advertising Association,

New York

City, Aug. 27, 1947.

;

that these
probably the most decisive
times not only for the survival of

mit to you in conclusion
are

Volume

166

mankind
open

but

Number 4628

for

certain

number

imaginative

fields

imagination,

can

which

the

ability

our

play

Business

our

part and

knowl¬

Business economist

think it is not
true, as many
people say and as often stated in
papers, that only two. coun¬
tries in the world have a
truly
free economy.
I know that about
62% of the world has a mixed

where
or

tional

the

production

trolled,

sector

one

controlled

sector

one

Great

than in 1929-1932

for

look

pro¬

duction

uncon¬

consultation

some

and

fact,

this

cism

a r

indoor

sport;

there

value

the

generalizations
that
we
hear about the end of the world
and the 1

and

there

tunities

immense

are

and

some

interested I would be

give
I

have

views

are

sooner or later
Such observers

ject.

very

for

dis¬

our

issue

93,000

common

fact,

par

about
ahead

share by Henry P. Rosenfeld

Co., New York. The securities,

according

offered

mary

the

prospectus,

speculation.

are

The pri¬

object of the corporation is

the exporting into foreign

expressing

is being publicly offered at $2,625

own

the
as

outlook

can

another

ment

mistic.
to

became

Because

unduly

•

still

exceptions,

This state¬

price

averages.

there

all-time

which

has

peaks

the

moderate,

already

others

and

advance

has

been

for which there
decline.

been a

able

the

areas

pessi¬

between

able to meet

stranger

corporation will carry

iness,

deem

when

shall

its bus¬

nomically advantageous, to set
to

establish

outright

obtain

control

Purchasing Policy Not Entirely

eco¬

foreign and domestic inventories,

Business

been

and

enough to push prices

partial

factory

good

liberal

then

puts

in his

own

should

certainty. Each with¬
limits tries to make

estimate

corporation's* operations.

this

into

possible and

effect

Purchasing

his

chases.

also

told

them

agents,

year

that time and
son

get

can

mainder

the

beginning of

that

industrial

have

not

gone

possibility of

purchasing

this

Gilbert J.

Postley Go.

Joseph F. Donadio1 has joined
the trading department of Gilbert

Purchasing,

Sept". 9,

Inc.,

New

1947.

began to be
a

very sharp
buying, which con¬
July and August.

normal
for

placing

the

Fall

misinterpreted by

initial

many

revival

was

sellers

many

Inflationary psychology

new

season

being

re¬

June,

demand.

stim¬
in coal

was

ulated
by the advance
miners' wages and in steel prices.
Before
long, many
distributors

important
a

seemed

to
accept
the
sellers'
viewpoint that initial buying bad
riot been enough. There are in¬
dications
third

tors

now,
therefore,
that
quarter orders by distribu¬

increased by

(Continued

much

page

33)

This is under
an

circumstances to he construed

offer to buy,
The

overboard

as an offering of these shares for salet W ||
solicitation of an offer tq buy, any of such shares.
offer is made only by means of the Prospectus,

or as a

NEW ISSUE

September 10,1947
M

*100,000 Shares

Seaboard Finance

Company

$2.60 Convertible Preferred Stock
(No par value—stated value $50 per share)
♦Of these shares, 56,184 are

initially being offered only by the Company to Its

Series A and Series B Cumulative Preferred stockholders pursuant to an

Exchange Offer expiring on September 19, 1947. The underwriters have
severally-agreed, subject to certain conditions, to purchase any of such
56,184 shares not issued pursuant to acceptances of such Exchange Offer.

agents
the

Price $53 per

plus accrued dividends from July 10, 1947

„

clines

much

risk of further

These Securities

tinued

new

was

still

flation.

the

York,

pressure

sales.

pres¬

downward

wholesale markets.

current

pickup in

The Domestic Market Shrinking

developed last Fall in

position. I

were

further strong in¬

*A speech by Dr. Shook before
National Institute of Government¬
al

the re¬
without the

The

Although purchasing policies at
this point can rest firmly .on the
belief that the risk of price de¬

Jos. Donadio Now With

orders

Considerable

orders

slightly below normal in

lation

general decline.

sure

reasonable

their earlier policies
reversed. There was

through

sharper and

unfilled

were

year

were on

somewhat high in relation to pre¬
war
normals, but their stocks

to believe that production and

prices

Their

passed since
find little rea¬

Business Outlook Important
Nevertheless

into

has

actively
those in

industry,

beJ

still

were

inventories, and other

By May of this year, distribu¬
tors generally had
gotten back

Almost

value to them to know

some

fact that every decision
represents

aware

that

the up grade-.

the

by the fourth quarter of 1947.

way

Government

purposes.

quite

that

sharp setback in general
business activity would be under

further
will allow the company to put a
normal markup on the new pur-

therefore,

are

and

quarters,
a seasonal

rising, manufacturers in

cases

form of demand, such
the construction

high in production and wholesale
prices had not yet been reached,

customers and for other
corporate
•

justified,

fourth

record level of de¬

be of

forecasters

some

building

not

and

normally shows

still

were

read¬

average

know that what they may believe
about
the
future
in
guesswork

credit

the

Forecasts

under¬

general

third

when it

were

gain. A year ago, however, exports

90%

rather than

Business

the

over-pessimism at that time

purchasing
agents, of course, are in a little
different position.
But it should

factories, to extend
terms

un¬

happened last year.
seriously overcommitted at the end of July and
reduced their new
buying during
Distributors

the verge of

was

Dependent

inflation

the

And

mand with something to spare. :

many of you, it will merely

coun¬

which

by distributors.

the

This is what

sharp drop in now orders by re¬
tailers. You have frequently heard
above the
argument that income and re¬
prewar for
many
months.
It is
tail
sales
do
not
change very
true that national income is also
rapidly during the early stages of
at peak levels, but this has been
a changing business cycle.
This is
increasingly offset by the rising
true,
but
it is
also
true' that
trend in living costs. In any event,
changes in primary or speculative
for many months past the cur¬
rent level of production has been
unit basis has

on-a

manufactured

but

level of retail sales, the
volume of distributors' new orders
does change

Last October^ when we warned

Total industrial production

(3)

keep the record straight to point,
Without any further discussion
out that we disagreed with the of the immediate business
out¬
products.
premature pessimists of a year look, these points suggest a com¬
Today the corporation's products
ago. They expected a decline in mon sense approach to purchasing
are
shipped to 33 foreign coun¬ business
activity to come much policies.' With a few exceptions
tries and places.
too soon, and having been
disap¬ there are no longer any important
pointed, many of them are now shortages of stxpply. The most im¬
The net proceeds obtained
by
among the most fervently opti¬ portant elements of unit demand
the corporation from the sale of
mistic.. We find, however, that we are beginning to shrink. The pri¬
this issue will be used for work¬ can no more
agree with them now vate concern, therefore, can mini¬
ing capital, to expand the corpo¬ than we could a year ago." Over- mize its risks by buying conserva¬
present
time tively. If the worst happens, and
ration's business into new lines optimism- at. the
seems even less justified than ex¬
it has to purchase later at a some¬
and new territories, to
engage in cessive pessimism seemed at the what
higher price, presumably a
further advertising programs suit¬ earlier date.
trend
of
business
favorable
tries

that

source

long

some

applies

vious
for

recent criticism is
justified.
When security
prices declined last
September and October, and some
of the other
speculative markets
followed them down, many com¬

mentators

are

are some com¬
modities that have exceeded pre¬

some

■

two

have been.

ever

ing

also,

the

others

the

one

with

seen.

way

over-supply at the

that

moment, prices in
the United States are just as high,

optimism

for

some

are

sharper and
justments?

lieved

(2)

forecasts, usually

fervent

setting

Naturally,

made their

not

their

writers for trade
publications
well. As a matter of

value

stock,

$1, of Pan-American Export Corp.

per

left

include hot

of the

round

way9

Successful buying depends
complete information about a
myriad of individual products and
a
cold-blooded analysis of what
this information implies.

writers who have
criticized
forecasters'for having made fore¬
casts, .have in the same breath

Pan-American Export
Class A Stock Offered

other

this sub¬

time

same

they

placed

portant to make estimates of the
business and price outlook. Is an¬

scarce.

is not in

item

and

accumulated

not

of goods

being

must

business cycle where

oniy government economists
pri¬
vate
forecasters, but businessmen

today.

class A

in any

few

very

who

express

oppor¬
you

people
Robert C. Shook

glad to
the many figures which

you

cussion

end of the United Nations

the,' end of economic trade.

think

prognos¬

seem

overall

that

essential.

pop-

facts

(1) Selectivity is always highly
There is never a time,

Busi¬

become

should not

face

Inc.

are cer¬

Consequently, there
obvious

buying policy^

jus¬

was

tified.

with

have

their

sensitive

volume

drastically from time

taken into consideration in

criti¬

tications

abruptly.

very
are

the

to the consumer,
to the volume of new orders

■

balancing of risks and that this
changes with the price

tain

some

of money, etc.).
France has 58%
of her total trade that is still free

depression.

level.
matter-

ness

Bureau,

balance

prices.

ministries for facilities of.transfer

Therefore, I think

Statistical

being moved

about the out-.

na¬

imports which is completely open
and
practically free from any
government control (although
there

SHOOK*

much

to time.

today
exports and

Saying anything in public about the business outlook has come to be a serious occu¬
pational hazard.
During the summer revival of optimism particularly, financial writers of
every creed and color were blasting all economists who had ever expressed any pessimism

Britain

there is still 38%

markets
come
These markets

Slow-Up Ahead!

warns

severe

economy

total

(1015)

readjustment

will be less

the

planned

CHRONICLE

that current high activity will be followed by fourth quarter decline. Believes
dollar sales will follow decline.in unit distribution within 30 to 60 days.
Asserts coming

FINANCIAL

Vice-President, International

we have acquired can
be used extremely well.

economy,

By DR. ROBERT C.

edge which

and

COMMERCIAL

new,

which

amount

THE

greater than

the

advances, it is imCopies of the Prospectus may be obtained from any of the several under*
only in States in which such underwriters are qualified to act aJ
dealers in securities and in which such Prospectus may legally be distributed.
writers

placed privately through the undersigned with institutions
purchasing them
for investment. They are not offered for sale and this
announcement
were

appears as a matter

of record only,

■

NEW ISSUE

■

■:

*•

The First Boston

50,000 Shares
Van

Chas. Pfizer & Co,, Inc.

Corporation
H. P. Wood & Co.

Johnston, Lemon & Co.

Alstyne, Noel & Co.

Central Republic

Crowell, Weedon & Co.

Kirchofer & Arnold, Inc.

Company

(Incorporated)

3%% Cumulative Preferred Stock

The Ohio

Company

$100 Par Value

Brush, Slocumb & Co.

Martin, Burns & Corbett, Inc.

Joseph F. Donadio

Postley

New
Mr.

York

Co.,

City, it is

Donadio

was

F. Eberstadt

announced.

formerly

Strauss Bros.

Reynolds & Co.

Broadway,
with

Sutro & Co.

■

Courts & Co.

Doolittle, Schoellkopf & Co.

Auchincloss, Parker & Redpath

Watling, Lerchen & Co.

September 11, 1947.

& Co. Inc.

G. Brashears & Company

C. T. Williams & Company, Inc.

Stirling, Morris & Bousman
C. F. Cassell & Company,

Inc.

Goodwyn & Olds

;

Durand & Co.

(1016)

THE

COMMERCIAL

CHRONICLE

FINANCIAL

11/1347

Thursday, September

Laboi's Policies Must Be Woildwide

Canadian Securities

By DAVID A. MORSE*

Under-Secretary of Labor
By WILLIAM J. McKAY
In the attempt to cure the world's current economic
ills, drastic
experimentation is certainly not the appropriate medicine at this
stage. The plight of Britain today would have been less acute if the

Labor Government had

not

chosen

such

unpropitious period for
In the same way the deli¬

its far-reaching schemes of Socialization.
international

balance

cate

economic relationships can not with¬
rough shocks*^produced by endeavors to effect Canada and the rest of the British
fundamental changes in the exist¬ Commonwealth has
constantly ex¬
ing economic framework.
panded.
stand

il¬

Efforts

Prior to the

desirable

The Canadian situation well

lustrates this point.
world

had

dollar

crisis

Canada

active and

flourishing vol¬
foreign trade which the

ume

Labor Day was created to give, recognition to what its founder called "the industrial
spirit, the great vital force of every nation."
It was "the industrial spirit"—the will of free Americans to work under a free system—-

Dominion

able

was

finance

partly by foreign credits and part¬
ly by the traditional method of

been

far

state

far

from

affairs

successful.

and indiscriminate

maintain

democracy. It
was
the pro¬

this

ductive

have

p e

outpourings of

needed

now

near

exhaustion of the

foreign-held fund of U. S. dollars,
Canada has now to give consider¬
ation to revolutionary changesl in
her

economic

historic

relations

with Britain and this country. The
most

obvious

course

the

choice

between

with

union

entry into
Britain

suggested

economic

this

country and the
customs union with

other

the

and

British

into

however, im¬
plies economic nationalism of the
worst kind

and the abandonment

multilateral system of world

during

first

know-how

This could sub¬
sequently be extended to other
British Dominions and then as an
to

dollar

gifts
loans, sterling could be ren¬
convertible ~ during
the
emergency period as a result of
temporary official support by the
and

dered

stabilization fund.

currency

thereby the war-stricken Brit¬

ish economy could be restored to

Its

former

strength this invest¬
sterling could conceivably

ment in

return good dividends.

Moreover,

Instead of the present dfvi-,
the resources of the British Com¬
sion of the world into two camos
monwealth as a whole still are
chaos would be worse confounded
trade.

capable

partition

the

tries

which

still

those

adhere

coun¬

It
^

vital

therefore

this

eleventh hour to avoid this dis¬
astrous

disentegration of the time-

honored bases of world trade.

spite
1

their

imperfections

the ruinous impact of two
wars

trade

with

eral.

the

principles at least of a free system
of foreign trade and democracy.

and

world

Britain,

providing good collat¬

During the week the securities
market

continued

dull and declining trenrt
months.

There

the

their

low

new

minions

tional

investment

result of

Do¬

institu¬

some

demand.

Free

partly

ease

the

partly with the de¬
tourist

active

and

golds moved into a higher
trading range as a result of buying
of a more solid type
than has

new

Leduc

feni

PROVINCIAL

MUNICIPAL

CORPORATION

oil-field

Alberta

confirm that Canada

discovered

a source

has

of oil that will

eventually
replace
the
Turner
Valley field as the Dominion's
principal producer.

CHICAGO,
Johnsen

A. E.

CO.
INCORPORATED

with
208

has

WALL STREET

NEW YORK

N. Y.

NY-l-1045

Financial

Chronicle)

become

associated

Chapman

& Co.,
South La Salle Street, mem¬

bers of the New York and

Chicago
Exchanges.
Mr.
Johnsen
was formerly President, of
Behel,
Johnsen & Co., Inc.

FHLB Issue Placed
An

issue

one-year

Federal
sold at

TAYLOR, DEALE
&
64

Wall

COMPANY
Str/it, New York 5

WHitenall 3-1874

$85,000,000

1 V4%

consolidated notes of the
Home

Loan

Banks

were

September 3 by Eve¬
rett Smith, fiscal
agent. The issue
is dated Sept. 15, 1947 and matures
Sept. 15, 1948. The proceeds will
par

be used largely for the financing
of
home
construction
through

3,700

member

associations
months.

■

savings
over

and

the

loan

coming

Government
Provincial

Municipal

world.
was a

recent military

our

rising to

are

the

occasion.

They have reconverted an indus¬
trial arsenal to production of con¬
goods with

sumer

social

and

economic

minimum of

dislocation.

have
achieved
unprece¬
dented heights of peacetime pro¬
duction.
They are feeding to a
They

world starved for

consumer

goojs

the machines and materials which
will build the homes and plant and
harvest the crops.

They must

solve to continue to assist in

re¬

cur¬

ing the ills of a world which after
years of total war stands at

six

the

crossroads

Labor Day
with

was

street

first celebrated

parade

demon¬

Steele,

Steele

in 1882.

labor

other

benefits

measured in

that

head

cannot

dollars.

a
result, the working man
today is achieving the status
in our country which he deserves.

sits

labor-management

His

representatives

recognized

the

councils

United Nations, and sit as
voting partners in the Governing
Body and Conferences of the In¬
ternational
Labof
Organization.
Labor

has

progress
in
recognition.

made

substantial

obtaining

erished

world

know how

there

points

are

the

asset

side of the ledger. However, there
is much more to be done—and it
is

well

for

all of us on this day
to reflect not only on
the past but also on the respon¬
year

sibilities and objectives which lie
ahead.
The improvement in la¬
bor's position has

responsibilities

Yet labor's

met.

must

present position
enough nor se¬
for
complacency.

neither strong

enough
Many difficult problems still ex¬
ist; many unsatisfactory condi¬
tions still require correction.
cure

Labor

can

thinking
our own

longer confine its
the .four corners of

country.

must

take

Labor's policies
the world

embrace

into

consideration

fellow

our

all parts of the earth.

men

the

That is the

about this.

clear

for

ex¬

our

tailed
production means unemployment.
Unemployment of
American

workers

diminished

purchasing

results

power

These are not

continued

the

only essential for
well-being
of
They are als»

American workers.

the

tion during

While I speak

war.

here of the resolutions to be made

equal¬

by labor, the same applies

ly to all other groups of our coun¬

try.

(1) High production and pro¬
ductivity must be maintained if
maximum

have

are

em¬

ployment and prosperity at home.
They are also essential if we are
to supply America and the world
with the products, machines and
food
they need.
When produc¬
tion is curtailed, it is labor which
the

feels
and

fat

effects

adverse

longest.

Even

first—

during

seven

workers do not have
enough margin of income over ex¬
years,

to prepare for seven lean
Consequently
American
workers have the greatest stake
in high production and produc¬
tivity.
penses

years.

High

(2)
value

wages

little

are

the American worker if

still beyond his reach.
vital¬
ly concerned with what his wages
will buy than in the number of
prices

The average person is more

unemployment.

It
to

for

also makes it
import goods

—particularly essential raw mate¬
rials—from
turn

other

results

countries.

curtailment

and

This

tome

unem¬

ployment in those nations.
At the present time the world
badly needs American goods. Most

countries

sufficient

dollar

have
gold reserves
to buy as much of American prod¬
ucts and food as they need. Loans

not,

however,

to these countries have

served

This in turn has
helped us maintain our own pro¬
duction and imports at high levels
—thus

benefiting them and us.

world

this

interdependence

impossible for us to maintain high
of employment
and pro¬
over
long periods unless

levels

duction

other countries who
tomers

cannot remain

our

cus¬

prosperous.

also

are

oasis of plenty

desert of destitution.

American

and

ers,

work¬

businessmen,

farmers

are

now

gen¬

erally cognizant of these facts.
They
realize
that helping the
world to get back on

its feet will
feet. They
realize that, helping
our neigh¬
bors is not only a good deed , but
help

to stay

our

is of mutual interest and concern.

It is for these

has

been

ance

which

such

this

was

reasons

that there

universal

accept¬

Government's policy

aptly interpreted by

Secretary Marshall at Harvard.
Europe is now attempting to work
out a plan of self-help and selfOrganization so that we may assist
with

wages

able

wages

deeds. This is
we

cannot

front from which

morally retreat.

Necessary
If
al

our

are

succeed,

First

that

business, labor, and agricul¬
general interest
before personal gain and exer¬

ture must put the

in
seeking
higher wages.
only alternatives to such eco¬
self-restraint

higher prices
The

nomic

and

statesmanship
controls

ment

government.

are govern¬
inflation. Since

controls

the

over

price system have been removed,
we

must exercise self-restraint iri

the maintenance of

balance be¬

tween prices and wages or suffer
"boom and bust" inflation.
It is

imperative that more and more
businessmen, workers, and farm¬
ers recognize and operate
by this
principle.
(3)

Stability in labor relations

is essential to the maintenance of

high production. Strikes and lock¬
outs

have

could

fect

this

disastrous

time.

They

ef¬

would

interrupt the vital momentum of
America's

industrial

machine.

They would also cut off shipments
abroad which
for

world

It is

recent

badly needed

recovery.

gratifying to report that in
months

substantial

ship

are so

both

have

labor

often

concessions

and

made

avoid

stoppages. Such statesman¬
will be needed to an even

greater, degree

the

months

ahead.
On

this

Labor

Day

1947

also appropriate for us to turn our

Resolutions

domestic and internation-

policies

Interest

recognition of these facts

work

Europe, faced .with chaos,
new hope and inspira¬
America's words and

reason¬

inflationary spiral.

General
It is in

prices and
is not to chase the

one

other up

bility.

from

be¬

between

balance

management

tion

are

must be maintenance of

greater' effectiveness in a
long-term program for world sta¬
has drawn

That

merely an
illusion in an economy plagued
by soaring prices.
Yet prices and wages are direct¬
ly related. High labor costs make
high prices just as high prices re¬
quire high wages. Therefore there

cise

makes it

economics which

receives.

high

cause

They have permitted
purchase of American products of
farm and factory.

are

dollars

stop-gap.

in price-wage

of balance

tenance

relationships; and (3) stability in
labor-management relations.

reduction of production and more

of-

An address by Mr. Morse over
Company,
Inc., Fort Worth, Tex., died at the Columbia 'Broadcasting
System,
age of 59 after a long illness.
Bept. 1, 1947:v.
•

and

tion

home. This necessitates additional

brought serious

which

de¬

ports, we must curtail our own
production to that extent.
Cur¬

Objectives

market

sustain

cannot

Let

mocracy.

Responsibilities and
These

universal

Spells

Unemployment

An impoverished world cannot
buy American goods. An impov¬

Government boards, have

political and

Impoverished World

economic

the

in the

military fields.

was

true

production

problems

Marshfield Steele Dead
Marsbfield

This
field

strate to'the public

"the strength
esprit de corps of the trade
and
labor
organizations."
That

the health and well-being of

difficult

civilization.

greatly

other countries; and their domes¬
tic programs
in turn affect us.

ican labor and American manage¬
ment

conditioned

(1) high produc¬
productivity; (2) main¬

the coming year:

suffered devastation and destruc¬

self-in¬

world developments. Our domes¬
tic actions have a direct effect

Once again Amer¬

for assistance.

make

must

workers

Today

con¬

agriculture

and

national

our

which Amer¬
during

three resolutions

ican

conse¬

actions.

our

that

are

prerequisites for the continued
prosperity of American business¬
men and American farmers—and
for the recovery of our allies who

without

international

the
of

industry,

terest

that

same oc¬

few years ago. Formerly
able to pursue our na¬

quences

upon

since V-J Day,
this
same
spirit has begun to
penetrate
the
world
economic
arena,
operating as a force for
peace. An impoverished, sick and
hungry world has turned to us

and

Marshfield

Corporate

labor,
realize

In the two years

today

CANADIAN
SECURITIES

out¬

the

victory.

each

RECTOR 2-7231

Na¬

future.

from

different

marked the

self-interest

margin of productivity

vital factor in

Stock

TWO

sidering

entire
This

far
we

were

our

of the

Chapman

ILL. —William

Farwell,

casion

produce

been

William L. Johnsen Is
(Special to The

world

tion
Morse

committees.

iih Farwell,

in which

tional

en¬

perspec¬

immediate

Only if labor, and all other Amer¬
icans, raise their sights to this
can
we
hope to maintain
our
democracy and insure that
men everywhere will be free.
Labor Day 1947 is celebrated in

which

David

the

extent

management

serve

CANADIAN STOCKS

for

Since then, American
has,
among
many
other
things, obtained
shorter hours,
hitherto
been
evident.
Papers higher wages, safer and healthier
and Western oils also strengthened working conditions, welfare funds,
noticeably, and reports from the unemployment compensation and
the

GOVERNMENT

tive

and

for

demand

Canadian currency.
Stocks were more

CANADIAN BONDS

responsibiltiy—the

abled

liquidation of internal

securities and

cline

but

internal

level

funds continued

activity

section,

attracted

the

of recent

little

was

external

—

new

American

the

step.

alternative

and

industrial

the

ideal

Either alternative,

than

rican

"Hyde Park" agreement
with Canada would constitute the
war,

Dominions.

execution

workers

offsetting U. S. dollar deficits by. practical plan to assist this coun¬
conversion of its favorable baN try's best customers during the
ance
in sterling and other cur¬ present period of emergency.
Although more difficult to put
rencies.
With the

capa¬

city and comt e n c e of

Lavish

only aggravated the sit¬

What

arsenal of

the

dollars and theoretical glo¬
bal schemes for world rehabilita¬
uation.

country

our

tion have

made^-

which

further

any

Government official, urging labor to extend its thinking to all corners of earth, asserts impoverishment
abroad will drastically lower our production and en tail severe unemployment.

there

attention

the

plight

1 less fortunate than

we.

Two

those

years

Volume

THE

Number 4628

166

after V-J Day there are still hundreds of thousands of the victims
of

who

war

have

These

which it is safe to return.
too

—

realize what it is to have to leave

land because of political or re¬

ligious beliefs. We know that
Nation
the

has

our

drawn

strength from
our popula¬
various
nationalities,

varied nature of

tion.

The

come

which

religions

and

races,

have

shores have all made

our

significant contributions to the
cultural, scientific, and political
life of the Nation; and all gave
their blood in our recent fight
against aggression.
J

that

know

last

will

labor

the

disregard the needs of
homeless refugees who ask
the opportunity for a new

those

only
start.
On

this

Labor

American
with
pride and to the future with hope
workers

and

Day

look to the past

can

determination.

much to

There

still

There
and
unsatisfactory working conditions
in
some
occupations which need
still

are

accomplished.

substandard

correction.

There

knotty problems
tion.

other

are

requiring

solu¬

Most American workers

today
and

wages

working

for

better

are

wages

under better

shop conditions
than ever before. The vigilance of
workers and their representatives
and the recognition on the part
©f industry that it has a stake in
its workers' welfare alone

can as¬

continued progress.
In certain situations cooperative

sure
■

endeavor

labor

will not suffice to

and

industry
solution

assure

problems facing many work¬
ers.
In those cases legislation will
be

needed.

for

that

reason

that President Truman in his La¬

bor
Day Statement called for
early Congressional action to in¬
mimimum

crease

rates,

wage

broaden the socal security system

"by extending its benefits to a
greater number," and establish
an
"adequate system of health
insurance."
and

sure

that labor

public at large will hail
and
support enactment of this
Vital legislation.
I

confident that labor, con¬
its strength, senses the

scious of

importance of its responsibilities,
and

will work

build

and

for

always better America and a de¬
cent peaceful world. To labor all
Americans can say: Best wishes
{for the tasks that lie ahead!

Secretary asserts wage boosts have not been sole cause
of savings among low income
groups, Mr. Schwellenbach

corporations to nest

egg

months reconversion to
peace
We

know

now

how false
that

would

ensue

only to our own econ¬
but as a protection of our •
position in the international fiel&T*
For example, wheat. The
estimate
of wheat production this
year is
1,400,000,000 bushels. I remember

Citing relatively small

declares workers have

much right

that when I

was

labor

hope.

its

and

that

any

particular

which

have been

other, neither I

cre¬

and used

to prevent any

speedy

was

in both the international and domestic

employers.

Roa d blocks

ated

The belief

I rebuked

the

one

nor

tions

I knew
case

side

domestic

side,

adhered

despite

the

Administration,

production for
1946

was

cratic

our

the

highest peace¬
time
produc¬
tion

enough

man

L. B. Schwellenbach

the

history of
nation,

our

not producing

are

permit

the

ordinary
laws
of supply and demand to
come into play.
One thing I be¬
lieve all of us failed to envisage
oil VJ-Day was the impossibility
of our casting aside the nervous
tensions which had developed in
almost four years of active war.
of

Out

those

for

American

Worker

which has been given to
American worker for his ac¬
complishments in both war and

to,

way

peace.

tensions

grew

dis¬

trust, fear and antagonisms which
had developed during the wartime
years.
The shadows of distrust,

Particularly

do I resent
the
widespread effort that has
been made to shoulder the
respon¬

made clear by President Tru¬
in his Labor Day message of

sibility for increased prices exclu¬
sively upon the backs of those

this year.

He said, "The bargain¬
ing table at which labor and man¬

who

work.

but

sit to work out their
problems is indispensable
to our democracy, and must be
safeguarded against any attempts
common

misguided or ill-intentioned
groups or individuals to weaken
or replace it."
I know that many
people in this country without
realizing the results which must
inevitably flow from such action
believe that labor problems might
quickly be solved by instituting a
system of compulsory arbitration.
by

some

ing

Hardly

day

passes

statement is issued hav¬

its

purpose the acceptance
this doctrine by the American

people. Particularly frequent
are those
protestations. The
son

for

the

made

June

of last year when
they promised that with the lifting
of
price controls within a few
months prices would be lowered.

know

when

The fact is that in those countries

action here would
the

attempting to shift responsi¬
bility entirely to the organized

contrary to
democracy which
go

system of
cherish and for which

fought two

wars.

workers of America.

have

There

It would be the

one

answer

tragedy for us should we their protests. That is, that the
first step toward dicta¬ prices of fpod products have in¬
torship. How could we then look creased 72% over prewar prices,

the

June

23,

their

this

they were willing
lives

give

same

period. Very largely the
who grew and processed

people

order .that freedom

number of stoppages in America be not destroyed by the food products are not organ¬
the lowest in any the totalitarian dictators who so ized into unions. Almost univer¬
peacetime year since 1921, with much hated it?
sally the people who produced
1
manufactured products were or¬
the exception of the years of the
Labor, organized and unorgan¬
ganized into unions.
I have no
deep depression in the early 1930's
ized, also participated in that war.
It is my considered opinion that
The high measure of production quarrel with the farmers, nor do
I intend to pick one
the prime reason for the decrease
by pointing
that resulted from tneir labor is
out those facts.
in strikes was that by that time
The farmers do
tension had been lessened and the proof that they too took part when not fix the prices for which thqir
nerves
of our people had been they made of America
the ar¬ products sell. They are fixed by
the operations of the wheat ex¬
relaxed.
senal of democracy for the world.
change, the corn exchange, and
I am not unaware of the criti¬
the

1947,

among

the

period

labor

during
unrest. The
me

72%, and those produced very
largely by organized workers have
increased 48%.
I want to make
,

it clear that I
do not contend that
wage increases
have not been a factor in
price

increases.

have.

It is obvious that they

That

fact,

democracy.

still

the

arsenal

other similar

Our peacetime muni¬

more,

however,

justify any effort on the part
of those who have increased
prices
to

place the whole blame for them
increases in wages.

upon

Wages and
For

Profits

example, there has been

phenomenal

increase

during

last

this

year.

of Fi¬

tion has been ihat it relaxed wage
controls so much sooner than the

Congress repealed

This

That criticism is unwarranted and

ture

announcement
to

price controls.

to the New York
Stock Exchange Institute, is of¬
fering the following advanced lec¬

first

quarter of 1947 corporation
profits were $875,000,000,
com¬
with

pared
same

$323,000,000

period

tions

almost

the

first

did

for

be construed

offer

half

much

this Fall:

W. Truslow Hyde, Josephthal &
Co.—"Analysis of Public Utility
Holding Company Securities."

not

that

entitled

any corporation,
to make profits.

The profit system

is the basis of

I would no more
general regulation of prof¬

economy.

favor

and

aside

corporation to

portion of

future

compulsory arbi¬
right

I know full well the

need

its

profits

Patrick B. McGinnis, McGinnis,
Hampton & Sellger—"Current De¬
velopments in Railroads."

Harold H. Young, Eastman, Dil¬
lon & Co. — "Current Develop¬
ments in Utilities."
1

Louis

Whitehead,

Whitehead

Co.

—

Louis

"Current Eco¬

War Labor Board

concerning dis¬
between employers and
employees were eliminated as of
cases

Again my objection
to the effort being made to
place full responsibility on labor
for price increases. These
profits
are
in part made because of in¬
goes

crease

prices.

Let

reiterate

the fact that I recognize

fully the

right of
reserves

corporation to set
against future losses

future disasters.

make their
corporations secure,
also contend that the wage earners
of America should seek no
adjust¬
of their wages because

ojL,

page

sell

offer

31, 1945, but the Wage Sta¬
bilization
Board,
which passed
upon wage
increases insofar- as

they

might

national

have

economy,

affected
was

(Marketing products under

our

continued

Developments
Security Values."
The Fall Term

February, 1947.
Congressional action which gen¬
erally lifted the lid on prices was
taken in June, 1946.

Affecting

commences

Sept.

Basic investment analysis and

15.

brokerage

procedure

courses

are

included in the curriculum.

istrations
York

are

Reg¬
accepted at the New

Institute

Finance,

Broad Street, New York 5, N. Y.

Newburger, Loeb & Co., mem¬
bers of the New York Stock Ex¬

was

crack

93,000 Shares Class "A" Common Stock

announce

Seiniger

them

tive
at

57th

now

pute I felt

the

firm's

Street

New York

and

side
was

publicly rebuke

of the labor dis¬
in the wrong dur¬

ing collective bargaining sessions.
A doctor doesn't attempt to cure
a
nervous patient by
denouncing
in

him

the

statute

press.

under

Furthermore,
which

ated in the conciliation of
as

branch
6th

City.

office

Avenue,

Offering Price $2,625

disputes,

per

Orders will be executed by

oper¬

Underwriter
(As defined pursuant

the

Securities

Act

1933

construed by regulation by the

first

with

registered representa¬

(Par Value $1.00 Per Share)

criticized because I didn't

down

whichever

Secretary of Labor in 1913,
SamueT required impartiality as between

that
associated

change,

of NATIONAL TOBACCO COMPANY,

Criticisms Answered

the

With Newburger, Loeb

name

wholly owned subsidiary corporation)

in operation until

nomic

Export Corporation

(A New Jersey Corporation)

Dec.

radio

Schwellenbach
and Mutual

address
over

Broadcasting System,

Aug. 31, 1947.

Street, New York, N. Y.

Mr.

Station WOL

amended.)

HENRY P. ROSENFELD CO.
79 Wall

Telephone—HAnover 2-0217

to is that
many of the same people
who
contend for
that right
to

NEW ISSUE

What I do object

buy the securities herein mentioned.

Pan American

set

for

use.

contrary to the facts. It is true
operations of the National

pute

for

I do not contend that
any manu¬

facturer

(Continued

thbj

quarter of 1947 as they
the -entire year of 1939.

that

courses

for

Corpora- "
automobiles

a year ago.

manufacturing

earned

the farmers in the country

not to

profits
For the

ment

exchanges. Further¬

does

not

tration.

cause

1946,

23,

remains that
the price
of
products produced very largely by
unorganized workers has increased

its than I would

and

Dec.

got

bushels,

nation, both here
abroad, and they gave us an
increase in production almost im¬
possible to understand.
Yet the

take

and the .prices of manufactured
products have increased 48% over

during the six-months' period

Agriculture,

production

million

direst

at the graves in every part of the
World where men are buried be¬

from

started to
worry about a surplus.
The farmers of the
country met
the needs of the

our

simple

Many strikes resulted. Despite the
stoppages thus resulting, we
did produce more goods and serv¬
ices than we have produced in
many previous peacetime
years,
work

wheat

750

over

rea¬

hope that the

that they must shudder
they see the monthly re¬
ports showing how prices are in¬
the fears and antagonisms, hung which have tried compulsory ar¬
creasing, but they should not be
like clouds over every meeting bitration, the results have been
permitted to justify their, dismay
between industry and labor. These total failures.
Furthermore, such by

clouds, in many instances, made
impossible the securing of agree¬
ments through the ordinary pro¬
cedure
of
collective bargaining.

time

any

now

American people will
forget state¬
ments that the same
individuals

member of the

fact

the

agement

still

Praise

could

definitely

was

Senate Committee

and

Insufficient

the members

that the only demo¬
to handle labor dis¬
putes was through the medium of
free collective bargaining.
That

was

the fruits and goods of

are

peace.

effectively work in that case once
I cannot restrain
my own ten¬
a
position of impartiality had been sions when I think of
the faltering
abandoned. It ha^been the policy
praise

inter¬

that

scenes.

the

Conciliation Service

national prog¬
ress.
On the

fact

Japan occurred.
Great
strong that within a few

chief criticism of the Administra¬

nance, successor

•

magnificent job in
a time when the
pro¬
duction of farm products was
es¬

<&-

producing at

;

parts of America.

done

sential not

of price rises.

for future.

America

New Fall Courses
Institute

have

Two years ago last month the unconditional surrender of
celebrations occurred in all

Administration and of

The New York

(1017)

omy

Labor
rate

cisms that have been made of the

Finance Institute Offers

CHRONICLE

Secretary of^Labor

was

the

FINANCIAL

By LEWIS B. SCIIWELJJENBACH*

mechanics,
laborers, carpenters, machinists,
farmers. We call them "displaced
persons.''
Americans are descendants pf
"displaced persons."
We should
workers

are

Pay Rises Are the Workers' Right

homes

COMMERCIAL

28)

FINANCIAL

COMMERCIAL

THE

(1018)

CHRONICLE

against the, natural human tend¬
ency to act spasmodically when
it doesn't 'hurt to act.'

how

well

one

It's curious

know a given

may

Thursday, September 11,1947

suit, there were 9,000 more cars
on order Aug.
1 than on July 1.
Furthermore, it is officially stated
that such retirement of

running steadily

was

principle of this sort and yet fail

cars

application unless one keeps
remembering it. Probably that's
why our homespun ancestors used

of deliveries.

in its

August—A Bad Month
The past month was unusually hot and humid, even for
and the sales indices of shares in mutual funds followed an
course

readings.

to temperature

August,
opposite

Unquestionably the weather had an

enervating effect on salesmen and^
many potential buyers were on' today, it is interesting to note that
vacation.
Financial
activity, as during nine of the past ten years,
measured by the volume of trad¬ monthly volume on the Stock Ex¬
during
the
last
four
ing on the New York Stock Ex¬ change
change, was the smallest in more months of the year, has been sub¬

which

are

ness—

20.8

20.7

1943

14.3

16.7

1942

7.4

14.5

Therefore,

1941

10.9

19.5

pany

years,

—

Sept. to Dec.

For the benefit of Wall Streeters

Average

August

ELECTRICAL

Monthly

Volume*

who wish they were farmers

Volume*

20.8

21.7

5 0%

31.9

1945

Incr.

33.3

1946—
*

1940

EQUIPMENT

7.6

15.9

17.4

29.5

1938—

20.7

30.2

35.7

108

24.8
Avg.
15.9
*In millions of shares.

10-Yr.

that investment

decision."

It will also be noticed from the

shows

10%'% under the average of
ten Augusts and

preceding

little

for

from your

Investment dealer or

Distributors Group,

63 Wall Street, New

months

four

NATIONAL

SECURITIES

Keystone's

S-4

organization can sell a fund com¬
posed
of
speculative
common
stocks even in a declining market.

the

during

that

hope

Against the Crowd
a

letter to stockholders, Ed¬

C. Johnson, IX, President

During

total

the

months

$169,000,000

Keystone's

ten funds.

time
its

RESEARCH
UO

dustries

case

companies

quite
the

follows:
are

investment

continuity

CORPORATION

too many

management

application

freight

ceived

from

cars

than were

re¬

manufacturers;

re-

BROADWAY, NEW YORK 5, N. Y.

are

in¬

many

carried

their books.

good many stocks

higher

than

the

Stated

are

the

probably
balance

has

1930's,

and

certainly

sound

But it has often been the

enough.
case

that

•

■

the

Ifi&f

owned

public

Union

may

it begins to appear
plant and property account
be worth not only the figure

which

ably

Prospectus

eystone

Fund

very

carried, but prob¬

much

more.

usually
represent
equity in tangible property,
among other things,
That is one
reason
why they have usually
been good inflation hedges."

nitely affecting people's ability to

save," Mr. Catharine stated.

savings banks of New York
gain for July of $20,902,300
compared with $62,340,070 for

The
show
as

July of
June
crease

and $50,007,485

1946
this

of
in

for

year.
The net in¬
savings accounts for

new

July was 7,621 as compared with
for June, 1947.

the first seven months
savings bank deposits
$335,300,075, or 3.7%,
compared to $447,590,964, or

During

of this year,
have' risen
as

5.7%, for a similar period during
The

1946.

the

same

pared

gain
seven

120,221,

year was

with

the first

the

accounts

months
or

181,414,

seven

"While

for
this

1.7%, as com¬
or 2.8% for

months of 1946.
net gain in

savings
sharply reduced,
the
figures for the one month
are not conclusive," Mr. Catharine
pointed

were

"Since

out.

most

banks
July 1,
the part of

credit interest dividends
a

tendency on

depositors to delay withdrawal of
needed funds wherever possible
until

the

end

the

interest

pe¬

riod.

Consequently, withdrawals
are generally abnormally high in
January and July. The experience
during the next few months will
indicate

Phillips, Schmertz & Co.

just

ability to

how

save

seriously

the

is being affected by

PITTSBURGH, PA. —The firm

rising costs and increasing avail¬
of
Phillips, Schmertz
&
ability of consumer goods.
If
Robinson, Union Trust Company, people do not continue to add to
members of the Pittsburgh Stock
their savings regularly, or are un¬
Exchange, has been changed to able to do
so, it can very easily
Phillips, Schmertz & Co. George have a serious effect on our entire
name

have retired from

Hampshire Secur. Co.

MANCHESTER,
i

firm

name

N.
H.

Lord, Abbett Sq Go.
INCORPORATED

linos
Los Angeles

Chicago

consequent future hardship to in¬
dividual families."

H. —The
Elmes

Company, 875
Elm Street, has
been changed to New Hampshire
Securities Company. Earl S. Dud¬

Custodian

ley, Ji^. is manager of the trading
department and' customers' depart¬
ment.

With Carter H. Corbrey Co.
(Special to The Financial

LOS

650

Carter
South

Marcell

INVESTMENT FUNDS

First

SHARES OF CAPITAL STOCK OF

Chronicle)

ANGELES, CAL.—Chester

Marcell, Jr., has become affiliated
with

Certificates of Participation in

quite

seems

apparent that the continuing rise
in the cost of living is very defi¬

there is

"Stocks

New

upon request

OF INVESTMENT COMPANIES

increase, it

continue

State

York

New

show

and

economy.
Not only would the
partner¬ lack of new
savings give further
ship in the firm, the latter form¬
impetus to the tendency toward
ing Aspden, Robinson & Co. in
inflation, but also, the withdrawal
Philadelphia.
of
savings would represent re¬
duction of security reserves and

Preferred

Stock

•K-*-

New York

during July

"Actually,
that

deposits

savings banks

W. Sheridan and Ellwood S. Rob¬

and

Bank, reported

savings

"Though

now,

been

That

Catharine,

Association

24,686 for July of 1946 and 15,268

depressed

considerable emphasis
given by security an¬
alysts to 'liquid assets' and 'work¬
ing capital' in
balance
sheets.

even

the

accounts in the 131

couldn't

another way: True book values of

inson

investing their capital

representative

great

that they

part

probable in

begin
to replace their plant and equip¬
ment at the values at which they

RR. Equipment Orders Pile Up
"It would seem
Distributors Group in a recent
investors
states
that
the
R.
R.
who only want to buy or sell at bulletin
particular times. Thus the same Equipment Industry today offers
man
who eagerly buys General an amazing investment bargain.
Motors at 75 may have no inter¬ "In the railroad equipment busi¬
est at all when it is offered at 50. ness, the backlog -of orders con¬
to
mount.
In
the
first
"We therefore are continually tinues
emphasizing to ourselves that one seven months of the year the car¬
of the greatest advantages of full riers were forced to retire 8,000

the

comments

utility.

that there

from

"It

$4.47 a share during the same
period. Total assets of Series S-4
now amount to $19,715,000 of the

part

follows:

"In

Fidelity Fund of Boston writes in

request from,

new

pened

ward

upon

building

value.declined 34% from $6.77 to

Let

York 5, N, Y.

investment dealer,

the

always darkest just before the

year

dawn."

your

plants today is far in excess of the
figures at which old plants are
carried.

Robert

year,

today.

Company of

attention

fact that the cost of

the past 12 months
an
aggressive sales

that

calls

past
last
exemplifies the adage, "It

the

month

Sell

Prospectus

Chicago,

analyst has skipped over or
handled the plant and property
account
as
being of somewhat
questionable value, unless it hap¬

decade.

Incorporated

average

last

the

this year

the Dollar Savings

published

ended
July 31, the number of shares out¬
standing rose 53% from 2,875,000
to
4,407,000 although net asset

REQUEST

than half the

volume

Bank Associa¬
July deposits
less than one-third for

announces

President

sheets indicate.

Series during

wis

record

The

above tabulation that the August,

the

tion

last

Values

Selected Investment

much

Outstanding Up 53%
Asset Value Down 34%

Book

"Selections,"

1947 volume of 14.2 million shares

A PROSFECTUS

com¬

can

ment

Group Securities, inc.

for

than four times

cars more

Than

upon

17.2

1937—

orders

Replacement Values Higher

large a part.

based

perform a real service
by lessening the factor of emo¬
tion which is necessarily present
to some degree in every invest¬

109

1939

hand'

incidental to one's busi¬

emotional factors play too

1944

three

lion

freight

ahead

New York Savings

'on

hang mottoes on their

Investing should be
matured convictions
of long run value which are acted
upon when it 'hurts to act.'
It is
altogether too easy to buy and
sell with, not against, the crowd.
"It might be a fair conclusion
that
investing, more
than any
other
activity,
-needs
uninter¬
rupted application because spo¬
radic
emotions
are
involved.

only 14.2 mil¬ stantially in excess of the August
averaging 56% higher
changing hands—off volume
72%% from the 1946 peak month. for the decade.

than

"With

Reports Marked Decline
In Rate of Savings

walls; in the total delivered in the first
same month in 1946.
seven
months of this year, and
this .case
it might read 'Where
emotion prevails reason departs.' orders for locomotives close to
Deposit figures for the month of
"It may be that part time in¬ double the total delivered in the
July, released by the New York
vesting very often leads to invest¬ same period, there is no question Stat.e Savings Bank Association,
of the
continuing capacity de¬ reveal a marked lag in rate of gain
ing at those times when 'it makes
one
feel
good' to act.
That's mand for railroad equipment for over previous months of this year
years."
and over comparative periods of
probably true of many activities
to

By HENRY HUNT

out

worn

was

Corbrey

Spring

Street.

Co.,
Mr.

previously with the

California

Company.

Fundamental

•

BONDS
(Series B1-B2-B3-B4)

Investors Inc.

PREFERRED STOCKS
(Series K.1-K.2)

COMMON STOCKS
(Series S1-S2-S3-S4)

Prospectus from
your

Tke

I1VC.

local investment dealer or

Keystone Company
of Boston
50

Congress Street

Boston 9,

Massachusetts 1

Prospectus

Prospectus
your

may

be obtained from

local investment dealer,

may be obtained

Prospectus from your Investment Dealer or

HUGHW. LONG & CO.

THE

PARKER

CORPORATION

ONE COURT STREET. BOSTON 8, MASS.

1 31!

from authorized dealers, or

X*'

SELECTED INVESTMENTS COMPAN

mcoBRORAiio

135 South La Salle Street

te,,
48 WAIL

STREET, NEW YORK 5, N.Y

105 ANGfUl

CMiC AGO

•

CHICAGO 3, ILLINOIS

Number 4G23

16G

Volume

THE

COMMERCIAL

CHRONICLE

&' FINANCIAL

•ii.'v

certain number ot

open

markets

Business Slow-Up Ahead!

uvw

imaginative lm!<fs in v, tin h *
imagination can p] \ a t^rt t! J
in which the amour t td knowl¬
edge which we have acquired i«a
be used extremely well.
think it is not tnm,

the

that only two
the world have a

papers,

...

tries

truly

where one six tor is
planned or controlled economy

and

sector

one

tional

trolled.

there is still 38%

creed and color

jvery

na¬

Therefo.-e, I think

about the end

hear

and the end of economic trade.

•

there

think

tunities

immense

are

and

some

opjxsryou

are

interested I would be very glad to

give you the many figures which
t I have accumulated for our dis¬
■

cussion

today.

Pan-American
Issue

class

Export

Robert C. Shook

ject

per

shard by Henry P. flosenfeld

Co., New York,

according

object of the corporation is

mary

the exporting

tries
•

are

speculation. The pri-

as a

into foreign coun-

manufactured

products.

vate

have

coun-

ahead

outlook

can

another

for

also;

some

justified.

When security prices declined last

September and October, and
Of the

other

speculative

followed them down,

mistic.

became

Because

to so many

some

markets

many

com¬

unduly pessi¬
a
stranger

it will merely
keep the record straight to point,
out that we disagreed with the
premature pessimists of a year
They expected
activity to

decline in
much

come:

obtained

and having beep disap¬
pointed, many of them are now
among the most fervently opti¬
mistic We find, however, that we

this issue will ie used for work¬

can no more agree

ing capital, to ext am! the eorporation's
and

business

U\t%

lines

ri w

territories to engage in

new

further ad vert is it.g programs
able

the

finess,

when

;

the

its bus-

carry v.\

deem

shad

nomically advaidfr

suit¬

whuh

areas

corporation will

eco¬

set up

ms to

foreign and dome* tic j.a usuries,

4 to. establish or ottym partial or
outright

•

control

factories, to

e xftr

credit terms

literal

n ore

the corp. ration's

customers and for

•

factory

(2)

ther corporate

than we could

with them now
Over-

year ago.

the present time
stems even less justified than ex¬
cessive pessimism seemed at the

optimism

earlier date.

Purchasing Policy Not Entirely
Dependent
Business

Business Forecasts

should

forecasters

know that what they may believe
about

the

rather than

guesswork

future

certainty. Each with¬

in his own limits tries to

make as

estimate as possible and

good

then

puts this into effect

with

one

they

ever

ment

Jos. Donsdio Now With

applies

there

some com¬
exceeded pre¬

are

in his

peaks

all-time

vious

been a decline.

has already

(3) Total industrial

averag¬

the trading departmer.t of Gilbert

year

time and

passed sinc6

has

find little rea¬

to believe that

production and
through the re¬
mainder of the year without the
beginning of a sharper and more
general decline.

son

prices

get

can

for

the

to spare.

their earlier policies began
reversed.

There

pickup in

to be
sharp

new

The

very

placing

qormal
for

orders

was

buying, which con¬
July and August.

tinued

Fall

the

heard

Before

long,

seemed

initial
was

season

many

distributors
sellers'

the

viewpoint that initial buying had
not been enough.
There are in¬
dications
now,
therefore,
that
quarter orders by distribu¬
by as much as 30

third

increased

tors

(Continued

be construed as an offering of

circumstances to

This is under no

page

33)

these shares for sale, or k»

ofer to buy, or as a solicitation of an offer to buy, any of such
The ofer is made only by means of the Prospectus.

shares.

;

normal markup on the new pur¬
chases.

Government

purchasing

agents, of course, are in a little
different position.
But it should
be of some value to them to know
that industrial purchasing agents
have

not

gone

September

NEW ISSUE

10,19jtf

*100,000 Shares

Seaboard Finance Company
$2.60 Convertible
-

•

(No par

•

the company to put a

will allow

•Of these shares,
'

56,184

Preferred Stock

value—stated value $50 per share)

are

Initially being offered only by the

Company to it®

Cumulative Preferred stockholders pursuant to an
Exchange Offer expiring on September 19, 1947. The underwriters have
severally agreed, subject to certain conditions, to purchase any of such
56 184 shares not issued pursuant to acceptances of such Exchange Oiler.

Series A and

Series B

overboard on the

possibility of a further strong

in¬

Ft1

flation.

speech by Dr. Shook before
National Institute of Government¬
al Purchasing, Inc., New York,

1947.

wtte

normals,
but their stocks
slightly below normal in re¬
lation to current sales.
In June,

were

look, these points

Price $53 per

Outlook Important

Business

Nevertheless

decision represents

Thtu Securitte*

still

were

war

drop in now orders by re¬

any

suggest a com¬
mon sense approach to purchasing
policies. With a few exceptions
there are no longer any important
shortages of supply. The most im¬
portant elements of unit demand
are beginning to shrink.
The pri¬
vate concern, therefore, can mini¬
mize its risks by buying conserva¬
tively. If the worst happens, and
it has to purchase later at a some¬
what higher price, presumably a
trend
of
business
favorable
enough to push prices up further

orders

Shrinking

tailers. You have frequently

further discussion
immediate business out¬

Without

actively

somewhat high in relation to pre¬

months.

mand with something

unfilled

Their

and 90%

many

still

By May of this year, distribu¬
generally had gotten back
into a more reasonable position.

above the argument that income and re¬
It is tail sales do not change very
true that national income is also
rapidly during the early stages of
at peak levels, but this has been a
changing business cycle. This is
increasingly offset by the rising true,
but it is also true that
trend in living costs. In any event,
changes in primary or speculative
for many months past the cur¬
rent level of production has been
able to meet a record level of de¬
between 80

prewar

were

misinterpreted by many sellers as
Considerable
downward pres¬ being a new revival of demand.
Inflationary psychology was stim¬
sure developed last Fall in many
ulated by. the, advance in
coal
wholesale markets. An important
miners' wages and in steel prices.
source
of
this pressure
was
a
The Domestic Market

production sharp

unit basis has been

Although purchasing

plus accrued

policies at

dividends from July 10, 1947

point can rest firmly on the
belief that the risk of price de¬
clines is much greater than the
risk of further advances, it is im-

this

joined

has

Ifctnadiu

This state¬
price averages.

modities that have

agents,
quite aware of5the

therefore, are

Sept. 9,

Gilbert J. Poitley Co.
F.

have been.

Naturally;

■•A

Joseph

exceptions,

two

that

Purchasing

operations.

fact that every

purposes.

;

the moment, prices in
just as high,

the United States are

you,

the corporation from the sale of

Almost

ing

seen.

way

criticism

recent

long

too soon,

tries and places.

proceeds

this information implies.

also

rising, manufacturers in

tors

myriad of individual products and
a
cold-blooded analysis of what

breath

same

forecasts, usually
fervent
optimism

business

net

this sub¬

economists pri¬

the

over-pessimism at that time

lieved

fourth

inventories, and other
form of demand, such as those in
the construction industry, were on
the up grade.

told them that we be¬
sharp setback in general
business activity would be under
way by the fourth quarter of 1947.

not

their

own

the

about

ago.

The

forecasters, but businessmen

are

shipped to 33 foreign

left

and writers for trade publications
as well.
As a matter of fact, some

Today the corporation"! products

later

government

mentators

offered

The securities,

the prospectus*

we;

Such observers include not

omy

the

*s being publicly offered at $2 625

who

express
views sooner or

Successful buying depends

new

and

cases

building

prices had not yet been reached,

complete information about a

still

some

Last October, when we warned

same

few

very

general read¬

last year.

gain. A year ago, however, exports

under¬
verge

not justified, and that the
high in production and wholesale

orders

buying during
quarters,
when it normally shows a seasonal

was

scarce.

new

seriously over-

were

reduced their

justments?

business cycle where some
in over-supply at the
time that others are still

people

expressing

$1, of Pan-American Fx port Corp.
X

the

item is not

there

un¬

sales, the

committed at the end of July and

were

in any

indoor

seem

made their

stock, par value

common

a r

And

retail

This is what happened

pessimism

inflation

are we

and

sharper

setting

(1) Selectivity is always highly
There is never a time

pop-

sport;

that

have

any

round

way?

essential.

prognos¬

carts.

93.000

Busi¬

other

buying policy.

jus¬

was

distributors.

level

Distributors

portant to make estimates of the
business and price outlook. Is an¬

and others
of the writers who have criticized
for which the advance has been
forecasters for having made foremore moderate, or for which there

Class A Stock Offered
An

of the worM

the United Natlorr

and the end of

criti¬

become

their face value 'tr.r
generalizations that \u

overall

•

must

that

facts

this

tications

should not

Consequently, there are cer¬
obvious

taken into consideration in

ness

tain

some

tified.

of her total trade that is still free

matter

fact,

cism

France has 53%

of money, etc.).

balancing of risks and that this
changes with the price

balance

level.

the

the, third

ministries for facilities of transit**
•

and

not

of goods

volume

does change drastically from time

come to be a serious occu¬
revival of optimism particularly, financial writers of

w.th

tv
a

prices.

(altkmtg;

rotwultattft

pro¬

duction

of exports ar.vl

control

some

for

the

to time.

blasting all economists who had ever expressed

were

look

sensitive

volume of distributors'

depression.

summer

about the out-

•

there

than in 1929-1932

During the

imports which is completely oper
and
practically free from any

government

high activity will be followed by fourth quarter decline. Believes

Saying anything in public about the business outlook has

is
unconBritain todaj

Great

total

the

production

much

abruptly.

very
are

being moved to the consumer, but
to the volume of new orders being

Statistical Bureau, Inc.

f°N°w decline in unit distribution within 30 to 60 days. Asserts coming readjustment
severe

pational hazard.

economy,
a

8a^es

wul be less

that current

warns

come

markets

placed

Business economist

coun¬

free economy, I know th.d about
62% of the world has a mixed

.■

By DR. ROBERT C. SHOOK*

Vice-President, International

manv

people say and as often Mated

These

institutions purchasing them
for sale and this announcement
'
of record only.

placed privately through the undersigned with

for Investment. They are not offered
appears as a matter

Copies of the Prospectus ma) he obtained from an) of the several under
writers only in States in which such underwriters are qualified to act as
dealers in securities and in which such Prospectus may legally be distributed.

NEW ISSUE

The First Boston

50,000 Shares
Van Alstyne,

Chas. Pfizer & Co., Inc.
3V2% Cumulative

Preferred Stock

-.'»

».

Martin, Burns

■>*

Postley

New

Mr.

Ycrk

Co.

Cit>

Donadia

vs..*

fit

«r n

s •

Inc.

F. Eberstadt & Co.

srued'.

September 11, 1947.

Kirchofer & Arnold,

Co.

Co.
I

Inc.

W-

ith

Doolittie, Schoellkopf & Co.

G. Brashears & Company

Stirling, Morris & Bousman
C. F. Cassell

Auchincloss, Parker & Redpath

Courts & Co.

Sutro & Co.

Co,

Strauss Bros,

(Incorporated)

Watling, Lerchen &

& Corbett, Inc.

Reynolds & Co.
jos>ff ti r.

H. P. Wood &

Co.

Central Republic Company

Co.

The Ohio Company

Brush, Slocumb &

$100 Par Value
I

Johnston, Lemon &

Noel & Co.

Crowell, Weedon &

Corporation

& Company,

Inc.

Goodwyn & 01d«

C. T. Williams & Company, Inc.
Durand & Co,

(1016)

THE

COMMERCIAL

FINANCIAL

CHRONICLE

Thursday, September 11,1947

Laboi's Policies Must Be Worldwide

Canadian Securities

By DAVID A. MORSE*

Under-Secretary of

Labor

By WILLIAM J. McKAY
In the

Government official, urging labor to extend its
thinking to all

attempt to

cure the world's current economic
ills, drastic
certainly not the appropriate medicine at this
The plight of Britain today would have been
less acute if the

experimentation

stage.

Labor Government had not chosen such
its far-reaching schemes of
Socialization.
cate balance of international
economic

further

any

rough

Labor

unpropitious period for
same way the deli¬
not

can

with¬

shocks

produced by endeavors to effect
fundamental changes in the exist¬
ing economic framework.

Day

...nr.

our

the

been

had

and indiscriminate

desirable

Canada

active and

ume

foreign

Dominion

flourishing vol¬

trade

which

able

was

the

partly by foreign credits and part¬
ly by the traditional method of
conversion
in

ance

its

favorable

ofJ affairs

successful.

the

only aggravated the sit¬

What is

needed

now

bal¬
cur¬

ation to

her

near

revolutionary changes in

historic

economic

relations

during

ideal

first

step.

sequently

This

could

extended

with Britain and this
country. The

British Dominions and then

obvious

course

alternative

the

choice

between * economic

union

with

entry into
Britain

this

suggested

country and the

customs

and

the

union

other

with

British

Dominions.
Either

alternative, however, im¬

plies economic nationalism of the
worst kind

and the abandonment
multilateral system of world
trade. Instead of the
present divi¬
of

sion of the world

chaos would be

the

tries

worse

partition

which

into two

still

camos

confounded
those

adhere

coun¬

vital

eleventh
astrous

hour

therefore
to

avoid

disentegration

this

dis¬

of the time-

honored bases of world trade.
In
spite of their imperfections and

the

ruinous impact of two
world
wars
U.
S.
trade with

Britain,

convertible

world

sumer

"apable

They

economic

providing good collat¬

eral.

goods

and

have

dented

During the week the securities

v/ith

dislocation.

heights of peacetime pro¬
They are feeding to a

world starved for consumer
goods

minions

ing the ills of

attracted

institu¬

some

result of

liquidation

the

golds

trading
of

partly with the'detourist

moved

range as

demand

into

and

higher

result of

new

Leduc

fend

reports

oil-field

source

crossroads

stands

war

strength

esprit de

and

corps of the
organizations."

labor
in 1882.

was

abor

Since

has,

kings,

trade
That

then, American

among

obtained

other

many

shorter

the

Alberta

hours,

Canada has

unemployment compensation and
other

replace

the

Valley field as the
principal producer.

benefits

measured in

that

cannot

dollars.

Turner

a
result, the working man
today is achieving the status

Dominion's

our

country which he deserves

sits

labor-management

committees.

His

representatives

serve on

CANADIAN STOCKS

William L. Johnsen Is

With Farwell, Chapman
(Special
to

The

CHICAGO,

v;.

Johnsen

A. E. AMES & CO.
INCORPORATED

TWO WALL STREET
NEW YORK 5,

with

Financial

Chronicle)

ILL. —William L.
become associated

has

Farwell,

Chapman

Government boards, have
recognized in the councils
of the United
Nations, and sit as

RECTOR 2-7231

Johnsen &

Co., Inc.

Taylor, deale
&
64

company

Wall Str/ it, New
York 5

WHitenall 3-1874

issue

$85,000,000

one-year consolidated notes of
the
Federal Home Loan Banks
were
sold at par
September 3 by Eve¬

rett Smith, fiscal
agent. The issue
is dated Sept.
15, 1947 and matures

Sept. 15, 1948.

The proceeds wil
be used largely for the
financing
of
home
construction

3,700

through

member

associations

savings
over

Government
Provincial

Municipal
Corporate

and

the

months.

CANADIAN
SECURITIES

iy4%

loan

coming

age of 59

after

head

of-

Labor

has

Organization

made

progress

substantia

obtaining

long illness.

also

are

American

continued

farmers—and

tion

during the

While I speak

war.

of the resolutions to be made

by labor, the same applies equaly to all other groups of our coun¬
try.

(1) High production and pro¬
ductivity must be maintained if
we-

are

have

maximum

em¬

ployment and prosperity at home.
They are also essential if we are

food

An impoverished world
cannot
buy American goods. An impov¬

erished

world

cannot

Let

mocracy.

ports,

must

production
ailed

that

ployment.

for

our

ex¬

own

purchasing

Cur-

results

It
to

for

particularly

turft results

production

goods
mate¬

raw

countries.

and

makes

import

essential

rials—from other
in

also

This

curtailment

tome

unem¬

ployment in those nations.
At

the

present

time the

world

badly needs American goods. Most
countries

sufficient

dollar

buy

not,

however, have

as much of

gold reserves
American prod¬

ucts and food as
they need. Loans
to these countries
have served as

stop-gap.

years.

for

prepare

Consequently

seven

not

have

over ex¬

lean

seven

American
greatest stake

workers

have

production

high

first—

during

the

and

produc¬

tivity.
(2)

High

value to

are
of little
American worker if

wages

the

prices

are still beyond his reach.
The average person is more
vital¬

ly concerned with what his wages
buy than in the number of

will

dollars
cause

receives.

high wages

illusion

That

be¬

merely an
economy plagued

are

by soaring prices.
Yet prices and
wages are direct¬
ly related. High labor costs make
high prices just as high prices re¬
quire high wages. Therefore there
must be maintenance of
able balance between

reason¬

prices and

wages

one

other up in an

not

chase

the

inflationary spiral.

They have permitted

purchase of American
products of
farm and
factory. This in turn has
helped us maintain our own
pro¬
duction and imports at
high levels
—thus
benefiting them and us.
It

effects

Even

workers

years,

penses

power

home. This necessitates
additional
reduction of production and
difficult

adverse

enough margin of income

unem¬

Unemployment

workers

the

longest.

extent.

diminished

and

fat

this.

means

American

feels

our

curtail

production

de¬

clear

about

market

know how to
here

sustain

supply America and the world
the products, machines and
they need.; When producion is curtailed, it is labor
which

with

this

interdependence

world

universa

These

points

side of the
is

much

well

year

and
are

all

the

asse;

be done—and i

reflect

past but also

this

not

day

only

the

respon¬

sibilities and objective's which lie
The improvement in la¬
bor's position has
brought serious
responsibilities
which
must
be
ahead.

met.

Yet

labor's present position

neither

strong enough nor se
enough
for
complacency.
Many difficult problems still ex¬
cure

ist;

many
unsatisfactory
tions still require

condi

correction.

Labor

can

thinking
our own

longer confine its

the

four

country.

must

take

corners

Labor's policies

embrace

into

the

worlc

consideration

the

problems of our fellow men in
all parts of the earth.
That is the
*An address by Mr.
Mors&

Broadcasting

Sept. 1,1947.

employment and pro¬
long periods unless

over

other countries who
are; our cus
tomers are also
prosperous.
We
cannot remain an
oasis of
plenty
in a desert of

Objectives

ledger. However, there

for

high

destitution.

Responsibilities

Company,
Tex., died at the Columbia

They
the

for the recovery of our allies who
suffered devastation and destruc¬

General

Interest

First

It is in recognition of
these facts
that business,

labor, and agricul¬
ture, must put the general interest
before
cise

personal gain and exer¬
self-restraint
in
seeking

nomic

and

Marshfield Steele Dead

and

men

levels

today

Marshfield
Steele,
Marshfield
Steele
&
Inc., Fort Worth,

well-being

for-

prosperity of American business¬

duction

the

FKLB Issue Placed

price-wage

only essential for

American workers.

prerequisites

ternational

each
NY-l-1 045

not

are

continued

voting partners in the
Governing
Body and Conferences of the In¬

N. Y.

higher

Johnsen

formerly president of Behel,

economic

political and

These
he

economics which makes it
impossible for us to maintain

208 South La Salle
Street, mem¬
bers of the New York and
Chicago
Stock
Exchanges.
Mr.
was

the

us.

of balance

enance

relationships; and (3) stability in
abor-management relations.

been

Co., recognition.

affect

Impoverished World Spells
U. S. Unemployment

of oil that will

in the

unemployment.

civilization.

Labor Day was first celebrated
with a street
parade to demon¬
strate to the public "the

buying

from

confirm that
a

total

higher wages, safer and healthier
strengthened working conditions, welfare funds

and Western oils also

and

;he

world which after

years

and

active

type than has
evident.
Papers

been

eventually

for

solid

noticeably

of internal

six

effect

military fields.

unprece¬

duction.

true
is

turn

during

the coming year: (1) high producion and productivity; (2) main-

lere

Our domesdirect

programs

This

the machines and materials which
will build the homes and
plant and
harvest the crops.
They must re¬
solve to continue to assist in
cur¬

investment demand.
Free
funds continued to ease
partly as

tic

field

for

market continued to follow
the
dull and declining trenH of recent
months.
There was little
activity
:n
the
external
section, but at
their new low level internal Do¬

tional

have

self-in¬

greatly

well-being of
countries; and their domes¬

other

force

achieved

and

upon the health and

minimum

social

actions

conse¬

national

our

conditioned

economic

con¬

Today
agriculture

developments.

peace.

sterling could conceivably

that

world

They have reconverted an indus¬
trial arsenal to production of
con¬

industry,

was a

ment in

discovered

CORPORATION

the

operating

arena,

return good dividends.
Moreover,
the resources of the
British Com¬
monwealth .as a whole still are

hitherto

MUNICIPAL

penetrate

abor,
realize

military

ican labor and American
manage¬
ment are rising to the occasion.

Canadian currency.
Stocks were more

PROVINCIAL

recent

oc¬

actions.

our

Day,
begun to

the

quences

terest

In the two years since V-J
this
same
spirit has

ren¬

wiljiout

sidering the international

the

victory.

self-interest

world.

productivity
our

same

ional

Na¬

ish economy could be
restored to
Its former strength this invest¬

the

This margin of
vital factor in

marked the

few years ago.
Formerly
were able to
pursue our na-

out¬

An impoverished, sick and
hungry world has turned to us
for assistance. Once
again Amer¬

securities and

GOVERNMENT

Morse

our

period as a result of
temporary official support by the
U. S. currency stabilization
fund.
If thereby the war-stricken
Brit¬

casion

en¬

tion

entire

emergency

cbne

CANADIAN BONDS

David

gifts

during

produce

the

dollar

in which

ican

Labor Day 1947 is celebrated in
world far different from that

industrial

abled

sub¬

loans, sterling could be

dered

the

principles at least of a free system
of foreign trade and
democracy.
It

and

men

and

which

can

democracy

three resolutions which Amer¬
workers must make

are

future.

hope to maintain
and insure that
everywhere will be free.

our

management

other

most

com¬

American

war, a
"Hyde Park" agreement
with Canada would
constitute the

other

extent

capa¬

know-how

practical plan to assist this coun¬
try's best customers during the

exhaustion of the

and

pro¬

workers

perspec¬

the -immediate

Only if labor, and all other Amer¬
icans, .raise their sights to' this

petence of
American

dollars and theoretical glo¬
schemes for world rehabilita¬

uation.

the

city and

outpourings of

responsibiltiy—the
for

ductive

have
Lavish

new

tive

was

this

foreign-held fund of U. S. dollars,
Canada has now to give consider¬

With the

maintain

present period of
emergency.
Although more difficult to put
into execution than

sterling

rencies.

state

far from

tion have

offsetting U. S. dollar deficits by

bal

finance

far

country

arsenal

democracy.

ex¬

unemployment

severe

»>1

Canada and the rest of the British

Efforts

of earth, asserts impoverishment

corners

production and entail

our

was

Commonwealth has constantly
panded.

The Canadian situation well il¬
lustrates this point. Prior to the
world U. S. dollar crisis

drastically lower

created to give recognition to what its founder called "the industrial
spfrit, the great vital force of every nation."
"•l-lnr-. i M/-lllfif
ol
+VlQ
It was "the industrial drvilClf "
spirit"—the TlTlll of free Americans to work under a free
will n'f
systemwhich made <$>

In the

relationships

stand

abroad will

American
and

ers,

businessmen,

farmers

are

erally cognizant of
They
realize
that
world to get back
help us to stay on

realize

that

gen¬

these

facts.

helping

the

its feet will

feet.

our

helping

work¬

now

our

They
neigh¬

bors is not
only a good deed but
is of mutual
interest and ^concern.
It is for these
reasons that there
has been such

universal

ance

of this

which

was

Secretary
Europe is
out

Government's policy
aptly interpreted by

Marshall
now

greater

Harvard.

attempting to

plan of self-help
organization so that we
a

with

accept¬

and

work

long-term program for world sta¬
bility. Europe, faced with
chaos,
has drawn new
hope and inspira¬
tion

from

America's

deeds. This is
we

cannot

words

anc

front from which

morally retreat.

Necessary

over

Resolutions

domestic and internation
al policies are to
succeed, there
our

statesmanship

ment controls

government

are

govern¬

inflation.

controls

Since
the

over

price system have been
removed*
we must
exercise self-restraint in
the maintenance of a
balance be¬
tween prices and
wages
"boom and bust"

suffer

inflation.

imperative

that

and

businessmen, workers, and

farm¬
recognize and operate by this

ers

principle.
(3)

Stability in labor

relations

is esseiitial to the
maintenance of

high production. Strikes
outs

could

fect

have

this

interrupt the
America's

vital

world

It is

They

ef¬

would

momentum of

industrial machine.

abroad which
for

and lock¬

disastrous

time.

They would also

cut off

are so

shipments
badly needed

recovery.

gratifying to report that in

recent

months

management

substantial

both

have

labor
often

concessions

and
made

avoid

work

stoppages. Such statesman¬
ship will be needed to^ an even

greater

degree

the

months

ahead.
On

System*

prices and higher wages.
only alternatives to such eco¬

self-

may assis;

effectiveness

The

this

Labor

Day

also appropriate for
attention to the

1 less fortunate

1947

plight

than

we.

to turn

our

those

Two years

after

dreds

THE

Number 4628

166

Volume

Pay Rises Are the Workers' Right

who have no homes to
which it is safe to return. ■ These
too
are workers — mechanics,
laborers,
farmers.

»t

Labor

"displaced

persons."

Americans

"displaced

drawn strength from
the varied nature of our popula¬
tion.
The various nationalities,
faces, and religions which have
come to our shores have all made
significant contributions to the
cultural, scientific, and political
life of the Nation; and all gave
their blood in our recent fight
Nation has

Secretary asserts

rate of

are descendants of
persons." We should
realize what it is to have to leave
a land because of political or re¬
ligious beliefs. We know that our

savings

among

corporations to nest
Two years ago

low income
egg

only to our own econ¬
but as a protection of our
position in the international field:

;

•

groups,

cause

of price rises.

Citing relatively small

Mr. Schwellenbach declares workers have

For

how false
that

<♦>

labor and

was

that

hope.

its employers.

particular

any

Road blocks

which I

have been

other, neither I

cre¬

the future with hope

one

nor

side

effectively work in that case once
a
position of impartiality had been
abandoned. It has been the policy
of the Administration, definitely

the

ress.

despite
that

fact

1946

adhered

side,
the

cratic

for American

highest peace¬
time
produc¬
tion
in
the

production

wheat

time

any

got

bushels,

million

750

over

started to worry about a surplusv
The farmers of the country met

the needs of the nation, both here

abroad, and they gave us an

and

possible

production almost im¬
understand. Yet the

remains

fact

the

that

price

largely by
I cannot restrain my own ten¬
unorganized workers has increased
sions when I think of the faltering
72%, and those produced very
praise which has been given to largely
by organized workers have
the American Worker for his ac¬ increased 48%.
products produced very

complishments
peace.

the

both

war

and

Particularly

widespread

do • I resent
effort that has

been made to shoulder the respon¬

President Tru¬ sibility for increased prices exclu¬
man in his Labor Day message of
sively upon the backs -of those
this year. He said, "The bargain¬ who work. Hardly a day passes

was

the

was

to, that the only demo¬
to handle labor dis¬

way

putes was through the medium of
free collective bargaining.
That

our

Praise

Worker

Service could

wheat production this year is
1,400,000,000 bushels. I remember
that when I was a member of the
Senate Committee on Agriculture,

increase in

Insufficient

the members

to prevent any
speedy inter¬

domestic

the fruits and goods of

the

the Conciliation

are

peace.

ated and used

production for

Labor Day American
workers can look to the past with
this

rebuked

tions

I knew
case

example, wheat. The estimate

much right

Great
last month the unconditional surrender of Japan occurred,
The belief was strong that within a few
both the international and domestic scenes.

We now know

start.

pride and to

sential not

celebrations occurred in all parts of America.
months reconversion to peace would ensue in

against aggression.
I know that labor will be the
last to disregard the needs of
those homeless refugees who ask
only the opportunity for a new
On

•

omy

for future.

national prog¬

boosts have not been sole

wage

magnificent job in

time when the pro¬
duction of farm products was es¬

Secretary of Labor

done

producing, at

By LEWIS B. SCHWELLENBACH*

carpenters, machinists,
We call them

CHRONICLE

have

V-J Day there are still hun¬
of thousands of the victims

war

COMMERCIAL & FINANCIAL

made clear by

L. B. Schwellenbach

clear that I
increases
have not been a factor in price
increases. It is obvious that they
I want to make it

do not contend

have.
not

That

justify

that

however,

fact,

any

wage

effort

of those who have

does

the part

increased prices

ing table at which labor and man¬ but some statement is issued hav¬ to place the whole blame for them
There is still
agement sit to work out their ing as its purpose the acceptance upon increases in wages.
accomplished. There history of our
are
still substandard wages and nation, we still are not producing common problems is indispensable of this doctrine by the American
Wages and Profits
unsatisfactory working conditions enough to permit the ordinary to our democracy, and must be people. Particularly frequent now
For example, there has been a
in some occupations which need laws of supply and demand to safeguarded against any attempts are those protestations. The rea¬
correction.
There; are
other come into play. One thing I be¬ by misguided or ill-intentioned son for it is the hope that the phenomenal increase in profits
knotty problems requiring solu¬ lieve all of us failed to envisage groups or individuals to weaken American people will forget state¬ during this last year.
For the
tion. Most American workers are on VJ-Day was the impossibility ©r replace it." I know that many ments that the same individuals first quarter of 1947 corporation
made in June of last year when
profits were $875,000,000, com-today working for better wages of our casting aside the nervous people in this country without
and under better shop conditions tensions which had developed in lealizing the results which must they promised that with the lifting pared with $323,000,000 for the
of price, controls within a few same period a year ago. Corpora¬
inevitably flow from such action
than ever before. The vigilance of almost four years of active war
workers and their representatives Out of those tensions grew dis¬ believe that labor problems might months prices would be lowered. tions manufacturing automobiles
and the recognition on the part trust, fear and antagonisms which quickly be Solved by instituting a I know that they must shudder earned almost half as much for
of industry that it has a stake in had developed during the wartime system of compulsory arbitration. when they see the monthly re¬ the first quarter of 1947 as they
The fact is that in those countries ports showing how prices are in¬ did for the entire year of 1939.
its workers' welfare alone can as¬ years.
The shadows of distrust
which have tried compulsory ar¬ creasing, but they should not be
I do not contend that any manu¬
sure continued progress.
<
the fears and antagonisms, hung
permitted to justify their dismay facturer or that any corporation
V In certain situations cooperative like clouds over every meeting bitration, the results have been
Furthermore, such by attempting to shift responsi¬ is not entitled to make profits.
endeavor by labor and industry between industry and labor. These total failures.
will not suffice to assure solution clouds, in many instances, made action here would go contrary to bility entirely to the organized The profit system is the basis of
our
economy.
I would no more
of problems facing many work¬ impossible the securing of agree¬ the system of democracy which workers of America.
we cherish and for which we have
favor a general regulation of prof¬
ments through the ordinary pro¬
ers. In those cases legislation will
There is one simple answer to
its than I would compulsory arbi¬
foe needed. It is for that reason cedure - of collective bargaining". fought two wars. It would be the their protests.
That is, that the
tration. I know full well the right
ihat President Truman in his La¬ Many strikes resulted. Despite the direst tragedy for us should we
prices of food products have in¬
bor
Day
Statement called for work stoppages thus resulting, we take this first step toward dicta¬ creased 72% over prewar prices, and need of a corporation to set
aside a portion of its profits for
early Congressional action to in¬ did produce more goods and serv¬ torship. How could we then look and the prices of manufactured
crease
mimimum
wage
rates, ices than we have produced in at the graves in every part of the products have increased 48% over future use. Again my objection
world where men are buried be¬
goes to the effort being made to
foroaden the socal security system many previous peacetime years
the same period. Very largely the
cause
they were willing to give
place full responsibility on labor
4'by extending its benefits to a and during the six-months' period
people who grew and processed
for price increases. These profits
their lives in order that freedom
the food
greater number," and establish from Dec. 23, 1946, to June 23,

determination.

and

much to be

Insurance."
and

system

"adequate

san

that labor

sure

health

number of stoppages
among the
lowest in any
the

1947,
was

hail peacetime year since 1921, with
of this the exception of the years of the
deep depression in the early 1930's.

at large will

the public

America

be not destroyed by

ized

totalitarian dictators who so
much hated it?
the

into

products are not organ¬
unions. Almost univer¬

sally the people who produced
manufactured products were or¬

are

crease

part made because of in¬

Let me reiterate
recognize fully the

in prices.

the fact that I

right of a corporation to set up
into unions. I have no reserves
against future losses or
quarrel with the farmers, nor do future disasters. What I do object
I am confident that labor, con¬ It is .my considered opinion that The
I intend to pick one by pointing
to is that many of the same people
scious of its strength, senses the the prime reason for the decrease that resulted from tneir labor is out those facts. The farmers do
who contend for that right to
not fix the prices for which their
importance of its responsibilities, in strikes was that by that time
make their corporations secure,
proof that they too took part when
and will work and build for an tension had been lessened and the
products sell. They are fixed by
also contend that the wage earners
they made of America the ar¬ the
operations of the wheat ex¬
always better America and a de¬ nerves of our people had been
of America should seek no adjust¬
senal of democracy for the world. change, the corn 'exchange, and
cent peaceful world. To labor all relaxed.
ment of their wages because of
Americans can say: Best wishes
other similar exchanges. Further¬
still the arsenal of
I am not unaware of the criti¬ America is
(Continued on page 28)
for the tasks that lie ahead!
more, the farmers in the country
cisms that have been made of the democracy. Our peacetime muni¬
Administration and of me during

and

enactment

support

yital legislation.

the

Finance Institute Offers

Fall:

Josephthal &
Co.—"Analysis of Public Utility
Holding Company Securities."
V

W. Truslow Hyde,

Patrick B.

McGinnis,

McGinnis,
De¬

Bampton & Sellger—"Current
velopments in Railroads.".

Eastman, Dil¬
Develop¬

Harold H. Young,

lon

Co.

"Current

—

labor unrest. The
of the Administra¬
been that it relaxed wage

period of

tion has

much sooner than

controls so

—

repealed price controls.
is unwarranted and
contrary to the facts.
It is true
that operations of the National
War Labor Board concerning dis¬

Congress

That criticism

upon

which passed
increases insofar as
might have affected our
Board,

wage

they
national economy, was
in

investment

Sept.
analysis and

brokerage procedure courses are
included in the
istrations
York

are

curriculum.

Reg¬

accepted at the New
of Finance,
20

Institute

1947.

Criticisms

associated with
registered representa¬

Seiniger is now
tive

at-57th

(Marketing products under name
a

of NATIONAL TOBACCO

wholly owned subsidiary

corporation)

93,000 Shares Class

Per Share)

didn't

publicly rebuke
whichever side of the labor dis¬
pute I felt was in the wrong dur¬
ing collective bargaining sessions.
A doctor doesn't attempt to cure
a
nervous patient by denouncing
crack

branch office
Street and 6th Avenue,

the firm's

New York City.

him

down and

the

Mutual

Aug. 31,

Offering Price $2,625 per

Orders will be

press.

*A
radio
address by
Schwellenbach over Station
and

Mr.

WOL
Broadcasting System,

1947.

COMPANYf

"A" Common Stock*

(Par Value $1.00

Answered

criticized because I

Furthermore,
York 5, N. Y.
the statute under which I oper¬
ated in the conciliation of disputes,
With Newburger, Loeb
as construed by regulation by the
Newburge'r, Loeb & CO., mem¬ first Secretary of Labor in 1913,
bers of the New York Stock Ex¬
required impartiality as between
change,
announce
that Samuel

Broad Street, New

them

Corporation)

(A New Jersey

continued

operation until February,

I was

The Fall Term commences

Basic

Export Corporation

Pan-American

'of

bilization

sell or as an offer

NEW ISSUE

pute cases between employers and
employees were eliminated as
Dec. 31, 1945, but the Wage Sta¬

Affecting

Security Values."
15.

is, not to be construed as an offer to
buy the securities herein mentioned.

"Current Eco¬

Developments

nomic

This announcement

the

Congressional action which gen¬
erally lifted the lid on prices was
Whitehead, Louis H.
taken in June, 1946.

"Whitehead Co.

ganized

ments in Utilities."

Louis

and unorgan¬

participated in that war.
high measure of production

chief criticism

New Fall Courses
The New York Institute of Fi¬
nance, successor to the New York
Stock Exchange Institute, is of¬
fering the following advanced lec¬
ture courses this

'Labor, organized

ized, also

executed by

Underwriter
(As defined

pursuant to the

HENRY P.

Securities Act of 1933 as

amended.)

ROSENFELD CO.

79 Wall Street,

New York, N. Y.

Telephone—HAnover 2-0217

THE

(1018)

COMMERCIAL

FINANCIAL

CHRONICLE

against the natural human tend¬
to

ency

act

spasmodically when

it doesn't 'hurt to act.'

how well

one

It's curious

know a given
principle of this sort and yet fail
in its application unless one keeps
may

Thursday, September
11,1947

sult, there

were 9,000 more cars
Aug. 1 than on July 1.
Furthermore, it is officially stated

Reports Marked Decline

order

that such retirement of
cars

was

In Rate of

out

worn

running steadily ahead

of deliveries.

remembering it. Probably that's
"With
'on
hand'
orders
for
why our homespun ancestors used freight cars more than four times
to hang mottoes on their walls; in the total
delivered in the first
By HENRY HUNT
this case it might read 'Where seven months
of this year, and
The past month was
unusually hot and humid, even for August, emotion prevails reason departs.' orders for
locomotives close to
and the sales indices of shares in mutual funds
followed an opposite
"It may be that part time in¬ double the
total delivered in the
course to
temperature readings. Unquestionably the weather had an vesting very often leads to invest¬ same
period, there is no question
enervating -effect on salesmen
ing at those times when 'it makes of the
and^
continuing capacity de¬
many potential buyers were on today, it is
interesting to note that one feel good' to act.
That's mand for railroad
equipment for
vacation.
Financial activity,
as during nine of the past ten years,
probably true of many activities years."
measured by the volume of trad¬
monthly volume on the Stock Ex¬ which are incidental to one's busi¬
ing on the New York Stock Ex¬ change
during
the
last
four ness—emotional factors play too
Replacement Values Higher
change, was the smallest in more months of the year has been sub¬
Than Book Values
large a part. Investing should be
than three years,
only 14.2 mil¬ stantially in excess of the August based upon matured convictions
"Selections," published by
lion shares
changing hands—off volume
averaging 56% higher of long run value which are acted Selected Investment
Company of
72%% from the 1946 peak month. for the decade.
upon when it 'hurts to act.'
It is

this year less than
one-third for
same month in
1946.

Deposit figures for the
month

Volume*

1946-

Volume*

20.8

reveal

1945

21.7

33.3

20.8

20.7

1943

follows:

"It

other

—

rupted

—

16.7

radic

14.5

Therefore,

10.9

19.5

pany

7.6

15.9

109

17.4

29.5

1940
1939
1938

20.7

30.2

17.2

35.7

"108

15.9

Avg.
24.8
>!'In millions of shares.

101/2% under the average of
preceding ten Augusts and

the

little

from your investment dealer

63 Wall

than half the

volume
of

Distributors Group, Incorporated

for

the

year

decade.

Let

last

average

four months

during
us
hope

the

past

that

last

month
is

exemplifies the adage, "It
always darkest just before the

dawn."

Street, New York 5, N, Y.

letter to

part

Johnson, II, President

follows:

that there

NATIONAL

RESEARCH
UO

who

particular
man

SECURITIES

CORPORATION

BROADWAY, NEW

"It

would

seem

too -many investors
only want to buy or sell at

emo¬

times.

Thus

the

same

who

therefore

are

continually

emphasizing to ourselves that one
of the greatest
advantages of full
;ime investment
its

management

continuity

record

organization
posed

application

and

can

sell

fund

speculative

value declined 34%

carried

com¬

common

from $6.77 to

during

the

same

Total assets of Series S-4

$19,715,000 of the
$169,000,000 in Keystone's

Equipment Orders Pile Up

Distributors Group
bulletin

states

that

the

even

their books.

been

las

pened

owned

"Actually, -it begins

"Stocks

seven

riers

to
mount.
In
the
first
months of the year the car¬
were
forced to retire 8,000

freight

ceived

cars

from

than

were

manufacturers;

re¬

Preferred

same

pared

eystone

not

are

needed
until

Custodian

s'y

:ry" ..Vt

New

Hampshire Secur. Co*

MANCHESTER,

:i|'' $ $5 :»■

| .R ■■

\ \^ ^

firm

name

Elmes

were

sharply reduced,

for

the

—

The

one

month

conclusive," Mr. Catharine
out.

"Since

funds

the

riod.

banks

July 1,

the part of

end

wherever
of

the

Consequently,

possible
interest pe¬

withdrawals

are
generally abnormally high in
January and July. The experience
during the next few months will

indicate

just how seriously the
ability to save is being affected
by
rising costs and increasing avail¬
ability of consumer goods.
If

name

people do not continue to add to
their

savings regulqrly,

able,

have

or are un¬

x6, do

so, it can very
easily
serious effect on our entire

economy.
Not
lack of new

only would the
savings give further

impetus

the
tendency toward
inflation, but also, the withdrawal

savings
of

would

represent

re¬

reserves

and

security

consequent future
dividual families."

hardship to in¬

Company,

875 Elm Street,
has
changed to New Hampshire

been

Lord, Abbett & Co.
INCORPORATED

New York

—

Certificates of Participation in

Chicago

Los Angeles

Securities Company. Earl S. Dud¬
ley, Jr. is manager of the

trading
department and customers
depart¬

ment.

With Carter H.
Corbrey Co.
.(Special

LOS

650

The

Financial

ANGELES,

Carter
South

Marcell

SHARES OF CAPITAL STOCK
OF

First

BONDS

Chronicle)

CAL.—Chester

Marcell, Jr., has become affiliated
with

INVESTMENT FUNDS

was

H. Corbrey &
Spring Street.

Co.,

California

Company.

Fundamental

(Series B1-B2-B3-B4)

Investors Inc.

(Series K.1-K2)

COMMON STOCKS
(Series S1-S2-S3-S4)

AMERICAN

Prosftectns from

Tke

local investment dealer

ITVC.

Keystone Company
of Boston
50

Congress Street

Prospectus
your

Boston 9, MassachusettA

THE

may be obtained from
local investment
dealer, or

PARKER

Prospectus
Prospectus from your Investment Oeoter

HUGHW. LONG

CORPORATION

& CO.

iNto»»6>Aua

ONE COURT STREET.
BOSTON 8, MASS.

48 WALL
ioi

STREET, NEW YORK 5, N Y

ancius
chicago

.Jtll

tfoi

Mr.

previously with the

PREFERRED STOCKS

your

for
this

depositors to delay withdrawal of

& Co.

Sheridan arid Ellwood S.
Rob
inson have retired
from partner
ship in the firm, the latter form
ing Aspden, Robinson & Co. in

months of 1946.

most
credit interest
dividends on
there is a

PA. —The firm

accounts

months

120,221, or 1.7%, as com¬
181,414, or 2.&% for

seven

pointed

upon request

seven

during July
the
figures

duction

Prospectus

gain

"While the net gain in
savings

one

the
Pittsburgh Stock
Exchange, has been changed to
Phillips, Schmertz
Co. George
W.

in¬

with

the first

appear

of
Phillips, Schmertz &
Robinson, Union Trust Company,

net

similar period
during

tendency

Philhps, Schmertz

The

$335,300,075, or 3.7%,
to
$447,590,964, or

The

year was

property,

Philadelphia.

Stock Fund

1946.

why they have
usually
been good inflation
hedges."

members

this* year.

5.7%, for

reason

PITTSBURGH,

$20,902,300
$62,340,070 for
$50,007,485 for

and

compared

the

tinues

Union

investing their capital

that

That is

of New York

During the first.seven months
savings bank deposits

represent

other things,

of this
year,
have risen

more.

usually
tangible

quite

new
savings accounts for
July was 7,621 as compared with
24,686 for July of 1946 and
15,268
for June, 1947.

plant and property account
may be worth not
only the figure
at which it is
carried, but pro.bvery much

seems

gain for July of

compared with

June

public

Rat

among

bargain.
"In the railroad
equipment busi¬
ness, the backlog of orders con¬

utility.

continue

continuing rise

savings banks

crease

enough.
case

State

increase, it

July of 1946

the

investment

they

Stated

skipped over or
plant and property
account
as
being of somewhat
questionable value, unless it
hap¬
landled

equity

amazing

The

show

depressed 1930's, and
considerable emphasis

certainly sound
But it has often been
the
;he analyst has

and

savings banks

living is very defi¬
nitely affecting people's
ability to
save," Mr. Catharine stated.

balance

York

Catharine,

deposits

131

by security an¬
alysts to 'liquid assets' and 'work¬
ing capital' in balance sheets.
hat

New

show

given

Industry today offers

Equipment

the

savings

apparent that the
in the cost of

representative
great many in¬

■J'

the
now,

ably

recent
R.

YORK 5, N. Y.

Fund

"Though

accounts in the

the

Association and
Savings Bank, reported

;he Dollar

the

today.

another way: True book
values of
good many stocks are
probably

"In

ten funds.

quite

part
probable

Robert

year,

President

are

ment at the values at
which
are

amount to

total

case

marked

"ast

companies in a
dustries that they couldn't
begin
;o replace their
plant and equip¬

Keystone's

stocks even in a
declining market.
During the
12
months
ended
July 31, the number of shares out¬
standing rose 53% from 2,875,000
to
4,407,000 although net asset

RR.

the

higher than
sheets indicate.

S-4
Series during the past 12 months
shows that an
aggressive sales

are

eagerly buys General
Motors at 75
may have no inter-*
est at all when it is
offered at 50.
"We

upon request from,
investment dealer, or from

service

Outstanding Up 53%
34%

The

now

stockholders, Ed¬

Fidelity Fund of Boston writes in

your

factor

com¬

plants

comments

much

period.

Against the Crowd

ward

Prospectus

the

real

Asset Value Down

$4.47
Sell

iTIOl
£RJt0S

perform

decision."

It will also be noticed from
the

wis

request

investment

necessarily present
degree in every invest¬

some

ment

above tabulation that the
August,
1947 volume of 14.2 million
shares

can

involved.

are

that

which

prosfectus

any

Group Securities, inc.

emotions

lessening

tion

1937

than

needs
uninter¬
application because1 spo¬

7.4

10-Yr.

carried.

investing,
activity,

14.3

1942
1941

EQUIPMENT

bd%

lag in rate of gain
previous months of this
year
over
comparative periods

over

Chicago, calls attention to the
fact that the cost of
building new
slants today is far in excess of
the
figures at which old

that

Incr.

31.9

1944

ELECTRICAL

altogether too easy to buy and
sell with, not against, the crowd.
"It might be a fair conclusion

Sept. to Dec.
Average
August
Monthly

July, released by the New
York
State Savings Bank
Association

—

For the benefit of Wall Streetwho wish they were farmers

Savings Bank Associa¬
announces
July deposits

tion

August—A Bad Month

ers

Savings

New York

may be obtained
from authorized
dealers,

SELECTED INVESTMENTS
COM!
135 South La Saile
Street

CHICAGO 3, ILLINOIS

Number 4628

166

Volume

THE

COMMERCIAL & FINANCIAL CHRONICLE

Peace-Making Must Not Be Defened
Our

By IION. WALTER F. GEORGE*
U. S. Senator from Georgia

Senator George declares we cannot await cooperation from Russia.

pared for

States U. S. will help those

war.

Doubts Soviet wants

countries who try to

The

eral Marshall made his speech at
Harvard on June 5, much has been

mitted.

actual

With

hostilities,
end

said

about

such.

realize and

ready to
that
certain mis¬

gested

are

admit

Walter

decision to

George

tarism as such, but our insistence

strangulation of the eco¬
nomic life of both Germany and
the

Japan. It now seems clear that it
was a mistake to attempt to de¬

prive the world of the construc¬
tive capacity of these highly pro¬
ductive countries.
The second mistake was based
upon

misconception of Russia

and Russian aims. United in com¬

military

mon

Russia

accepted

cause,

democratic

with aims similar to our

country
own and

join

desire

the

with

the

making of peace and the enforce¬

against aggressors.

ment of peace

and

Imperialism

have

Events

Russia's

Expansionism

purposes

that

shown

now

controlled

are

by traditional Russian imperialism
the

and

Communist

new

expan¬

sionism; that from Marx to Stalin
of the

Socialism

the

Communism of

one

and the

the other call for

the destruction of all other social

systems, especially

economic

and

Capitalism.

things

These

understood

little

were

our

desire to accept Russia
democratic ally. Plainly we

generous
as

were

justified by the historic
the record in reaching any

not

facts of

conclusion and subse¬
quent events, have demonstrated
such

easy

that Russia has hot departed

has

from

and

purpose presently to depart
doctrine

traditional

the

imperialism hnd the new expan¬
sionism of which she has become

the foremost
war

exponent in the post¬

world.

mistakes

These

are

least responsible for

phy
the

part

the philoso¬

which found expression in
Quebec, Yalta and Potsdam

Agreements and led to the quad¬
ripartite division of Germany into
four

zones.

As realists

must accept the

partition of Germany as
accomplished fact,"at least for
the time being. We must also ac¬
cept as a fact for the time being
the present position of Russia in
Manchuria, North
China and
present

Korea, down to the 38th parallel.
Perseverance

Russian

Whether Russia will change her
attitude is anyone's guess.
ful study of the history of

A care¬

Russia

that

able

are

some

crisis.

help themselves
at

measure

this time

Completely implicit in his

recommendation is the making of
an
accurate inventory of present
and

resources

tries

who

needs

all

coun¬

willing to partici¬

are

pate in the recovery program to
be ultimately announced. General
Marshall's

proposal

not

was

ad¬

dressed

merely to the peoples of
Western Europe. Russia not only
declined to participate in the con¬
ference

able

adjust herself to conditions which
she cannot control; that she has

ply

the

goods, be able to

balance

clothing,

the

whole

sup¬

said

that

the

acter.

self-liquidating
Through
the
of

the

soil

tions.

in
char¬
centuries

this

purpose

able to convert the

farm into

loan,

money

the

exist.

must

secure

aid

did

break

not

definitely with
the
Western
powers
in her rejection of the
Marshall
proposal but she ap¬

it must be as¬
the basis of all known

powers;

sumed upon

she

that

facts

present time

against

first

final

able

class

breech

must

America

from

they

be¬

While

states

limits of

will be forced to

make the supreme

military effort

of all time. The cost to

would

will

;

help within the

capacity those people
themselves, we

who wish to help
cannot

carry

entire

the

burden.

European nations must share the
The
World
Bank
and

burden.

cost which we Monetary Fund where these can
not assist must also share the burden.
with any country and The United States has always re¬

great but it is

have

wish

make

war

Russia's political, social and

upon

economic institutions. By the same
token

ask that

our own

social,

sponded to the cry of those free
men who were seeking to preserve
places

where

their freedom.

might

they

retain

What Europe needs

economic and political systems be

at this time is not an

preserved inviolate against direct,
open, or secret attack or infiltra¬

gent creditor but a wise creditor
who will aid in restoring the pro¬

tion.

Not

Marshall

war

Grants

to
develop into a plan carrying with
it
a
substantial
hope for the
the

proposal

devastated

that

they

may

over-indul¬

the people of
the end

ductive capacity of
Loans

lands to

take care of them¬

selves.

■

■■

■:■

will serve the

the

general purpose of

they must provide for
rehabilitation of war devas¬

tated

but

areas

and for the restoration

East

not

will

entirely

to her

We cannot too long defer
in Europe

liking.

the conclusion of peace

and in Asia; and

finally, regardless
Russia, we must

of the effect upon

to create an
productive capacity of the
peoples of Western Europe. It is adequate peace force under United
Nations control. If Russia should
poses, and finally, that Russia can of first importance that all of Ger¬
conform her ideology to her na¬ many now in the hands of France, one day abandon the joint effort
and
the
United
States to preserve peace it will be nec¬
tional interest in both foreign and Britain
domestic
affairs. The only safe should be rehabilitated and the essary for the United States to
course
is to assume that Russia productive
capacity of Western redouble its efforts to make the

time, ample time, in which to ac¬
complish her objectives and pur¬

will

abandon

not

jectives.
What then
we

main

;
is the course

ob¬

which

in the interest
and security? Since Gen¬

must

of peace

her

*Speech

pursue

Senator

George

make

of the

side¬

non-bank

hold

the

with

investment in
they

seeking

commitments

the

non-marketable

the market should reverse its
need to rush commitments.

opinion

that

out, in

Hence they see

investors

balance

the

issue

case

-'y^:

/■

the longer-term eligibles,

Prices In most instances have

quoted down than from the
On

the

other

hand,

gone

pressure

of the

some

down

of selling.

...

shrewdest

from being

money

market fol¬

lowers

are inclined to be on the defensive
side, which probably means
they will await clarification of expected developments before there
is much change.in attitude.
: ;
; j;

THE NEW

...

^V:

2i/oS

;//:'■•■/

The non-marketable 2V2% bonds, due in 18 years, will no doubt
fill a sizeable amount of the existing demand with estimates of the
amounts that will be taken ranging all the way from $1,250,000,000
to

if
a

$2,000,000,000.
The latter figure will most likely be reached
government trust accounts should be buyers.
Mopping up of
part of the demand should relieve the Treasury of much of the
.

desired limits.

...
t

short-term

^between
rities

of selling outstanding issues in order to keep prices within

pressure

for

(

the

new

about

new

issue

and

1954, there is

appeal

the break-even

the

some

obligation indicate

point in yield,
outstanding marketable secu¬

buyers, but with

attraction for those that would
This,

hold the non-marketable obligation eight years or more.

buying by )
commercial banks with savings deposits has been going on, so
the new non-marketable issue should
supply a part of this
is

the

maturity

demand.

in which

range

good

part of the

\S.\y--

)V;

SWITCHING UNATTRACTIVE

real

effort

/V.;

tliembn-marketaljle issue,

surrender values of

as they
comparable maturi¬
ties of the restricted bonds.
However, the appeal of the new
issue is not so marked when one looks upon the ineligible issues
from 1962/67 through 1966/71 as obligations coming due between
1952 and 1954, which is when they become bank-eligible obliga¬
tions.
There seems to be no reason why there should be liquida¬
tion of the outstanding marketable issues in order to take on the

The cash

approach maturity,

are

higher than the yields
.

non-marketable obligation.

7/:

The short- and intermediate-term redemption values are

not

selling of corresponding maturities;*
of the outstanding securities.
This is the bracket in which f
selling might have taken place if the new offering terms had;
favorable enough to warrant

advantageous.

been more

;

...

Although the return on the nqn-marketable issue is more attraefive'than theVyields on outstanding securities, if held to maturity,
this feature is not likely to bring about liquidation of the longerterm marketable obligations. ...
>
BUYERS

PROBABLE

Considerable talk is being

beard about minimum subscriptions

only, but not too much stock is being put in this kind of thinking
because it is believed that most investors will go in for as many
bonds as they will be allowed to buy. . . . Commercial banks with

will be among the important
despite their apparent distaste of a nonThis should take away some of the funds
that have been going into the 2 Vis due 1956/59 and the 2V2S due
1956/58 and Sept. 15, 1967/72. . . . Trust accounts, according to
reports, will be among the sizeable buyers, with corporate obligations
likely to be affected more by these purchases than Treasury issues. .*.
savings deposits according to reports,
buyers of the new issue,
marketable obligation.

CREDIT CURBS POSSIBLE

be have set a definite
financing in the non-marketable issue and this has
taken many sellers of the marketable obligations out of the market
despite prevailing high prices and good-sized profits that could be
realized.
Marketability means more to them at this time. . . .
The earlv redemption values of the new issue give no clues as to the
United Nations organization func¬
tion.
With the solidarity of the extent of the rise in short-term rates, other than to indicate ft will
There is

feeling that the powers that

pattern for future

adequate to full peace
time economy be restored. Some
be a slow, gradual process. . . . While the Treasuiy states that tpe
48
million
people live
within Western Hemisphere assured is it
funds raised from the sale of the new non-marketable obligation will
Western Germany. The areas now too much to hope that wise lead¬
be used in the financing operation of September and October, there
under control of France, Britain ership upon our part at this time
is some question as to what is likely to take place.
and ourselves, will, not produce may lead to the rehabilitation and
In some quarters, the opinion is held that in addition to cash
more than 50%
of the food sup¬ restoration of Western Europe? In
Germany

prepared for delivery at Summer
Commencement,
University
of

plies necessary to the maintenance

Georgia, Aug. 30,1947.

therefore, through the production

the

do in the face

What will Rusia

plan of ac¬
peoples of Europe and for the of a constructive
peace-minded nations of the world tion for the reconstruction of
it must be understood, from t^ie Western ^Europe?
Rusia did not
beginning that loans — self-liqui¬ declare war when we came to the
dating loans—not grants, are pro¬ assistance of Greece and Turkey
posed; that the initiative in han¬ although the question of relief was
dling the loans upon this basis not the primary consideration mo¬
must be accepted by Great Britain tivating our action. I have already
and other European nations and indicated that in my opinion she
tMht
the
opportunity
shall
be will not go to war although the
available at all times to the United adoption of a constructive plan
States to follow all Advances made of action for the reconstruction of
for the rehabilitation of Western Western Europe and for the Far

relief

the up side for

would bear. Of course, we do

desire w$r

Redemption values for the

our

move

slightiy below their highs on not
activity.
Likewise the intermediates have given some
ground, as the buying wave seems to have petered out.
.
The
ineligible? have receded somewhat but the demand appears to be
fairly good for the issues that become bank eligible in 1952.
;

obligations.
Europe Must Share Burden

meeting its obligations since V-J
Day. We will continue to meet our

power.

come

about in

now

too much

war

Russia and the Western

democracies

the

Communist

the

headed by

not

to prosecute

any

Should

tween

funds

are

Prices of Treasury issues, particularly

willing
to dig
poal.
Austerity is not a substitute for
production. Objection to the min¬
proached
dangerously
near
an
ing of coal in the Ruhr must not
open and final breech. Again it be
accepted as valid, except upon
must
be
concluded that Russia the clearest
reasoning. The United
does not want war with any of the
States has
not been remiss in
Western

cases

aid

expect

inclined

are

continue to back and fill at levels,

she

Russia

that

note

result

MARKET ACTION

by
General countries of Europe to supply raw
effectively material, necessary machinery and
vetoed participation by any of her
coal are certainly self-liquidating
satellite states.
It is worthy of in
chaacter. If the British people
but

belief

trend.

assist

and

The

Others

manufacturer

bonds gives them

raw

Advances

being and

that

un¬

material, ma¬
chinery and/tools and supplies of
coal.

inflationary
prices of Treasury obliga¬

upon

want to make.

products of the
and to pay the
of the country

The

by the authorities to retard

the

production loans will

cease

cautious

feeling of this group,» which seems to be taking a
longer-range viewpoint of the situation, is attributed tb

many

people
will have the advantage of the
crops produced and the necessity
for further

the

somewhat

essen¬

advance is made

inclined to believe that the foreign situ¬

disturbing effect

be somewhat

appears

are

action

rumored

time

lines.

tially a self-liquidating loan; even
though
the particular
state
to
which

...

bring the marketable securities in
offering had already taken place.
The govern¬

nevertheless

have

bond.

new

Some believe that the bloom is off the market
the

needed

fertilizer, tools ? and ma¬
chinery for the planting and for
the harvesting of crops. An ad¬
for

rise

WAITING

seed,

vance

and

trends may

advance

have

announcement

attractive than the

part of the

market

ation

in loans should be made for pur¬
poses

still appear to be

side, because investors

Germany.
No
further
reparations in kind should be paid
by either Germany or Japan.
have

the

ment

Western

took

line with the new

actually
population
of

the

considerable

food,

medicine

and

needed

markets

much in stride, indicating
pretty well anticipated and rather fully discounted"
marketwise.
Prices of Treasury issues firmed slightly following
the disclosure of the terms
because the outstanding obligations as a

suggested

Marshall

Russian Europe. Undoubtedly, such loans

Communism for the last 30 years
discloses

who
in

mili¬

and sale of

tillers

Completely implicit in the sug¬
gestion is that it applies only to
those European nations who are
willing to help themselves and

these was not

wholly constructive

act upon his recommendations.

The first of

destroy

idea

and gave expres¬

if the devasted nations of Europe
have the capacity and the will to

policy and
strategy
dur¬
ing the
war
and thereafter.

our

approach to the solution
pressing economic prob¬

the

sion to

both

Plan."

Marshall Plan,
Marshall sug¬

General

lems of Europe

were

made

"Marshall

In truth there is

takes

the

securities

had been

they

com¬
com-

government

the terms of the non-marketable
issue very

are

stand

Governments

By JOHN T. CHIPPENDALE, JR.

is pre-

help themselves.

striving to maintain the Great Power unity which enabled us to win World
War II but which has not yet achieved peace nor security against aggressors to which we
We

Reporter

48 million

people. They must,

all

events it is our

keep open

best hope, to

the possibility

that a

better world may dawn tomorrow.

payment of

notes not refunded, there will probably be
instituted, with the proceeds of the new

credit restrictions

issue.

some

bond

THE

(1020)

COMMERCIAL

FINANCIAL

A
I)

Securities

CHRONICLE

Challenge to Labor

Salesma

By PHILIP MURRAY*
President CIO

Labor leader charges profit-hungry capitalists took
advantage of postwar confusion to further their
sel¬
fish interests at expense of country's welfare.
Predicts we are headed for severe
depression, which
can be
prevented only by reduction in profits and increase in

By JOHN DUTTON

IF SECURITIES DEALERS WEREN'T BUMPING

purchasing

speak bluntly .this<$>Day of 1947 on a subject di-1 adjust themselves to levels
that CIO knew that
something even
rectly connected with the welfare consumers are
stronger than the Wagner Act
willing to pay."
was
of millions of persons throughout
The Congress of Industrial Or¬ needed—and needed
badly.
-

•

the

(Continued from page 3)

:ounted"

[lowing
A

...

ities

jovernautious

situ-

longer

tionary

members

obliga-

the Transit issue?

Here

was a

demonstration

for

ng
id

tt>

cousins

they

the

across

done
iligibles,
not

some

*n
.

The

being

ly means
ire there

fhen
then

if the

function

ary powers

doubt
of the

,000, U00
reached

are
are

two
two

securities

able

was

catch

demand.

OPA

Should Have

Remained

ing proof that
that

our

want

say

most

say

nation is

people

that

nomic
I

who

of conflict and eager

and better things
owners alike.

were

for

peace

wrong.

depression

the

make

only

last

minor

that

this, millions of war-weary
in

lands turned to us for

philosophy which still prevails in the

and

executive

department of our government is determined to
play into the hands of the radicals and all those who do not
our

children

and

women

But the New Deal

guidance.
that

sure

produce

free

eco¬

setback.
not

and

These

gnation

such

men,

that

another

many

people felt

which

got

not :■

destroy

labor

■;

Act, hailed by
spokesmen
special interests
a cure-all

some*

our

for

labors

management ills, was
designed to
;ake away many of the
had

gains labor

secured

over

the

hrough free collective
Here

years

bargaining,

again is revealed

the hy-«

pocrisy of those who fight the
na|
tion's

working

law

men

and

women'

Taft-Hartley

The

Act

became

direct result of

political action

designed

and executed

and

heavily

program

by business

industry.

Yet the Act itself
is

designed to
pro-i
of the Congress of
Industrial

curtail
gram

the

political

action

Organizations and all of
organized
labor.

even

goes

far

attempt to silence the labor

press

matters relating to
politics.
|:
Let me draw the
picture a little
clearer.
on

;

Those responsible for
the Taft«

Hartley
"Through
will

Act

our

said

effect:

political action

own

democracy, grew
rapidly and performed efficiently
during
the
war.
Immediately

inspiration

efficient

The organized labor movement,
bulwark

get?

financed

saying

us.

if
_

thing of

one

depression is just around the cor¬
ner, I am saying that the present
trend of higher and higher profits
and smaller and smaller purchas-

weary

savings so or not—assumed the role of
be had by I worid leadership. As a result of |

can

weaken

right here—and

—a

easily

appear

Philip Murray

were

emphatically—that the
heading toward another

depression
could

right and

were

opponents

Act, a stronglegislation, designed to

piece;of

:!or the

affoinct

our

what did

Taft-Hartley

unions.

The high prices and enormous
profits of today provide convinc¬

smashing
smasninto examtiles oi what can be traPTmi.ty h?ped that,01?f costly
examples of wnat can oe|and
tragic mistakes of the past

all of us, both workers and

This

the

r^e

that the
continued until

industry is given an opportunity to would not be repeated when we hng p0Wer must be halted and re¬
versed if we are to avoid economic
it should. Over regulation—unsound discretion- tackled the
job of building order chaos in the future.
Of this you
of regulatory bodies—NASD monopolistic provi- out of world chaos.
can be certain!

have faith in

with

But

entirely dif¬

We said

mpmLoM
on#l
sions against non-members
Between the beginning and the
Now let us look at another part
and rirnLiLiiii^ inYnlinn nnnn
prohibitive taxation upon
end q£ the lagt war> the United of the distorted
bond interest and equity income are the reasons
picture that the
why Amer- states—whether it intended to do special
interests are painting for
ica's production plant finds it difficult to attract the

fol¬

'ket

ATTRACTIVE YIELD

-THANKS TO TAX EXEMPTION.
Here
liere

lead

should

production

^ped—that^a

INDIVIDUAL INVESTORS COULD

sea

BUY A BOND THAT OFFERED AN
etable ;
rse its t

3 on

OP A

forcefully present the salient features of an issue so new and betthat the public could GET IT instead of the usual
gibberish ter civilization
we have had to mail out ever since the SEC has had a
whip
j0U¥hb? bu1^
over our necks. And last, but not
least, for the first time since deavorwe exRoosevelt flipped a coin with Morgenthau to establish the
p e c t e d
the
price of that yellow stuff which is now so popular with our United States

side-

took

ferent position.

necessary

how to

;

ganizations

world,

that only retail organizations
when
the
which have been properly vaccinated with NASD serum te r r i b 1 e
should be invited to get on the band wagon and
go to work,
^orfd War°II
On the Chicago Transits this freedom of action allowed L
a m e, to
an
EVERYBODY to get in there and push. And did.
you read end, many of
the selling literature that was distributed
by the syndicate us thought

was

entire

power.

Labor

WHAT WOULD HAPPEN?

icating

intend

THEIR HEADS AGAINST A STONE WALL,
ient

Thursday, September
11,1947

could

machines

thereafter it became the target of
a campaign of destruction.
Those
who : led the
drive
against the
unions were in the main those who

ing their political activity."
This obviously is so unfair and
undemocratic that further com¬

and

make

the

ineffective.

them

that way

unions

weak

will

keep

by sharply limit*

enterprise system—either because they of destruction would also be able
ment is not needed.
r
don't understand the
dangerous long-term implications of to chart a true course to prosper- are responsible for our unhealthy
It is because of
things such as
ity and peace.
such a policy or don't
I have mentioned that
price-profit situation.
give a damn as long as expediency
American
Our conception of political deworking men and women cele*
brings in the votes.
Hypocrisy About Wagner Act
.

•

g up of
of the

within

ippeai

against the

yield,

wall will

secu-

never

solve this vital

about that.

tvould

mocracy and economic capitalism
was thus put on trial.
The world
was little interested in what our

For those in the financial world who should
know better
to say YAH to these heresies is not
only unsound procedure
for the securities
industry but is bad morals and bad Americanism as well.
Bumping our heads

problem—you

same

can

Speechmakers

off

interested

old

sure
as

this

new

issues

between

obliga-

liquidathe

not

are

turities

had;

its

jointly
Council

by
of

the

Com¬

and

merce

which
ins

sponsored

Production, which has
headquarters in Montevideo,

Uruguay, and the American wing
of
e

attrae-

maturity,
longer-

the

American

inking
many

with

>ortant
non-

funds

due

ing to
nations
ies.

Council

the

InterUnited

the

States. The plenary sessions of the
conference will.be held at the
Plaza Hotel, while other confer¬
ence

ptions

organization,

New

activities will be held at the
York Stock

Exchange,

New York

Curb

the

Market, and the

Chamber
of
Commerce
State of New York.

the

The

conference, which has been
described as exploratory, will deal
with matters of mutual interest
to
stock exchanges

throughout the
Western Hemisphere.
Among the
topics in its agenda are "Stock
Exchanges and Free Private En¬

terprise"; the "Position

Stock

Exchanges in the Economy of the
United States," and technical
and
has

irket

the

financial aspects of
exchange op¬
erations

various countries
of the South American
Continent.

JLatin American Exchanges to

tfie
will

here

Among

the

who

will

cussion

Francis Adams TrusPresident o£ the New York

cash

—

T?,!"er,£lt

f.a~u~a~U
w,HWo S
^
J? ]told tbe pub bc
Ser®
A g, r X?® a
ner Act. They said i0rjje Wagthat business
t

industry had learned its lesson—that they were now willing

Postwar Maladjustments

It could not have been

oray.

acP^pMbf ^dea
g

oth-1

We had been producing
for destruction. Ordinary civilian

free
y sc°ffed at

employers

erwise.

supplies
were

were

The

low.

returning

millions I

Labor

mood.

They

their

eaeer

ened

United
in
the

for

n}enj eaS i* 19

sentative
Social
Council

Repre¬
Economic and

the

United

Nations.
The

conference

obseryers from
agencies, such
al Bank for

Development,
ment of the

will

fired outright because

ioined

unions

the

Reconstruction
U.

and

Depart-

Treasury,U.S.Depart-

Export-Import
the

th4 S

effective

interesting today to read

statements

was
t\ /r

that

were

of that date.

State

African UnSn:

Taft-Hartley law from the

determination is
being
translated into action—into demo¬
action—into political action.

cratic

When I say this I

ing alone about
members.
great

women

who

vinced

not

CIO

talk¬

and

its

mass

the

talking about the
working men and

have

become

con¬

that

they
are
being
squeezed
economically and pushed
around politically.
They are tired of having pur
a

poor

example for the

T-.i

They want better homes, better
working

And
have

things they shall
they will, use their full

economic

wisely.

and

political

American
greater

labor

could

challenge—and

opportunity—on
of

strength
V
.

this

face

greater

Labor

Day

1947.

Jersey Newspapers
announced

that

cents

"The increase is made
necessary

steadily

costs.

The

layed

action

rising

publishing

decision has

long

taken in

been

order

de-

The

possible.
that

will * warrant

the
ouf

Co., Board of Trade

members of the Chicago

q+nnt

tviv

r»ow

Ptock Exchange. Mr. Daly
conducted

ment business

patronage and confidence of

past
*An address by Mr.
IVJurray over
ABC network, Sept. 1, 1947.

these

may continue to
of
paper
that

will Building,

auicklv

improved

care,
adequate
educa¬
tional facilities and real
opportu¬
nities for advancement.

Kneeland

through free

will

conditions,

medical

UH1CAGO, ILL. John B. Daly
has become associated with

industry and

"If OPA is promptly discontinand
prices

Chronicle)

high margin of profit

for the few.

a
copy, would be 5 cents
The announcement said:

Bank of Wash¬

Department

Congress.
They
wipe the in¬

Their

previously 4

John B. Daly Now With
Kneeland & Co. in Chicago
As-I
:
.5
(Special to The Financial

spokesman for

comnetition

weak¬

statute books.

made

business, which said:,

rapidly

Commission,

not

J., "Evening News"

of the paper,

just before Congress brought price
control prematurely to an end." For I

examPle> it

determined

famous

Dvnamitp

the National
Internation- sociatlon of Manufacturers, leadr

the price

democracy.

°l C£miT£e' Fe.(5er?1 Re~ UGd) prodac1tion oi g°ods
Bank of New
York, the mount

ington,
and

have

several important

Securities Exchange
the

also

our

will

complexion
are

many—not

demoted

thev

bfkP^ngf Sfheena^ °Ur tragic

protect

determined that

are

charges simply rest of the world. They want a
Drofit and rie \because.they were union organiz- high standard
of* living for the
protit and de ers/ Hundreds of workers were

termmed to obtain undue benelits
special interests started re-

States

fighting

I?" unconstitutional

nnwor

Economic Af¬

and

destroyed. They are de¬
termined to change the anti-labor

Increase in Price of New

fairs

Day

unions

nation set
at this noint. that

fill
tul

S. Kemper,

ir}terested in unionism.
J^b*le tbif. waf fomg on^™"

§ ,?eif assi&ned to the CIO s
I Southern membership drive were

war-wparv

nait'0waq
men

would

w0^keFs wtl°

who had been in the armed forces

brated

•

are:

some

mls" charges were set off in two towns
taKes ot tne p st.
hn an efforj.
break up uni0n
deliver talks on the
operation of
They began leading the nation
meetings.
stock
exchanges in Latin America I along the path that two decades I
Twenty-one of our representainclude Senor Jose P.
Hernandez, ago carried us to a boom and then tives connected with
the memberPresident of the Bolsa de Comer- into a terrible
depression.
And ship drive
have been physically
cio of Buenos
Aires, and Senor they hypocritically attempted to assaulted.
Two were shot at and
Tomas Eduardo
Rodriguez, Presi- justify their actions by telling the their car set afire,
dent of the Bolsa de
Comercio of | public that "this is the American
The 21 who were
beaten, the
Santiajm. Chile.
way/' They talked about "threats hundreds
who were fired or deto
Guest
democracy"- and about the moted, and the millions
speakers
during
the
who were
course -of
the meeting
will be "plots to destroy capitalism."
associated with them through the
James
And while
they made pretty
Wright, director of' the
American Republics Division of speeches their spokesmen in Con¬
the State
gress
started chopping away at
Department, and Hon.
measures which had been
William L. Thorp, Assistant
enacted
Sec¬
On Sept. 2 the
to
safeguard our economy and
retary of State for
Newark, N.

serve

speakers

participate in the conference dis¬

low,
to

before

country came out of the
with a badly adjusted econ-

war

President of the Inter-American
Council of Commerce and Produc¬
tion. Latin Americans who
will

Described

will
,

the

Exchange; and James

I
I

hinntiv

Our

the New York Stock

being

said

!<Lg,ej

Our

Delegates from nine Latin American
countries, Canada and the
United States will meet in N. Y.
City beginning Monday, Sept. 15, in
the First Hemispheric Stock Ex-<^
change Conference. The four-day Curb
Exchange; Emil Schram,
conference of financial leaders is President of
Inter-American

politics

was

individuals and

and

Delegates from Latin America, Canada, and United States meeting
in First Hemispheric Stock
Exchange Conference in New York on
Sept. 15.

they
maturias

the

Knpav

North and South American Stock
Exchange
Activities to Be Compared

—

b(e
k
wh
1 am somewhat bitter about the
hyP°crisy that accompanied the

nation performed?
It is about this that I want to

and

greatly
performances.

our

we as

speak,

How have

by.

»n,

about

and economics. But it

This

said

tjie firm

name

his

own

Chicago

of J. B.

readers."
The "Herald News"

,*«

in the

invest-

under

Daly & Co:

piroduce the kindl

J.,

similarly

Passaic,

announced

Sept. 4 that beginning
Sept. 8 the
price of the daily would be in*
creased from 4 to 5
cents per

issue*

bond

Number 4626

Volume 166

THE

COMMERCIAL & FINANCIAL CHRONICLE

Argentina Reflects Prosperity oi War Years
JQSEP$VW.
By

Radio

ROWE*

With trade balance in 1946 most favorable

Mr. Babson discusses

consumer reaction to "commercials" on radio
and concludes
newspaper advertising as "visual teaching" is more
effective than auditory. Sees buyers' market
developing, along
with more and better

record, Argentina is enjoying a period of inflation¬
ary prosperity, with ineffective price controls and deficient internal
transport system. Banks have
now become agencies of the Government central bank and no
change in official exchange rates is
Jn sight. Present Government's policy is to acquire foreign-owned utilities and railroads, but foreign
capital is welcome in concerns partly Government owned.
Present

advertising.

that

conditions in

Argentina reflect the prosperity of the war years. Activity
f^ntihues high and there is so far no sign of a tapering off. The long-range economic
pdsitioii is much improved with a more balanced economy than ever before resulting from
'

the

;

r o a

velopment

the war-years.
There is al¬
most

—;——

industrial; de¬

for¬

.■

provides that air deposits

are re¬

ceived for the account and risk of
the central bank; that a bank can¬
not loan in excess of its capital

the

fact' that

commercial banks. As far

the

average

and

surplus without the permis¬

sion Of the central bank although
all loans are at the risk of the
as

the

public is concerned in its dealings
new
life in¬ with banks, no change of any kind
has taken place. The new system
surance policy
has increased seems to be working smoothly. As
from 7,000 to the central bank grants satisfac¬
Joseph W; Rowe
11,000 pesos. tory compensation for the services
} As in most other/parts of the which its agents perform, profits
world, inflationary
forces,
in¬ are good. Banks are strong. Com¬
for
money
is
fluenced by high circulation and mercial demand
brisk.

scarcities, are at work.

Commercial

interest

rates

from 5% to 6% per annum.
No change in the official exchange
/v.'
General .
The favorable trade balance for rates is in sight.
A point of strength in the fi¬
1940 was the highest on record,
nancial field which is worthy of
There is general expectancy that
this favorable balance will con- mention is that during the infla¬
tinue, Generally speaking, pro- tionary war years no mushroom
duction of basic products is nor¬ development of small banks and
mal.
A
corn
crop
roughly financing companies occurred
estimated at. 8 to 9 million tons such as happened in many other
range

■/f

will shortly/be harvested. Inven¬

tories not

only

not heavy but
In- most imported goods are said
to be under normal./ Collections
are

vertising

countries.
-

One

concern

the

market

lower

that the pub¬
lic fully be¬

lieves in dis¬

Roger Babson

large profit from their

estimated

by the government at

2 billion pesos. One of the weak¬
nesses

of the Five Year

pointed out in
that

year

some

two

Plan, as
quarters, is
of

normal

cereal production in Europe may
cause these profits to fade
quickly.

"Iapi" is
commited
abroad

said to have already
itself
for
purchases

long

list

articles

must be imported through it) to
the extent of about U. S. $350

millions
that

new

although it is reported
orders

are

presented
think good taste fre¬

50%

quently is lacking. Only a minor¬
ity feel it worth their time to

hides, vegetable oils and seeds— listen

resale abroad. Profits for 1947 are

the

product
but
often dislikes

Over

•

shall

full

mgtlil

to alleviate this situation.
-• \
-

that

internal

equipment

•

;sary

hing
de-

The
we

:ind
the
our

ale,

the

in*
sue.

transport

time to come.

panies. Naturally, I would prefer
a company
which both owned a
good
newspaper
and
a
good
broadcasting station.
A newspaper

to radio commercials. Even

available

all of

the

tain

station—or

lost

forever.

In order to compare the amount of
time an ad is available to the pub¬
lic

take

the

fields

two

example

might

weekly

news¬

cesses."

The radio

station

which

to its readers (say 10

put on over twenty-two hundred for
"commercials" in one week (of

a seven

hours a day
day week) by the 3,000

circulation and you get 21,000,000
minutes. Along the same line of

19-hour days) is an unusual ex¬
ample. It shows, however, why a
reasoning, a one minute radio
public might well become "fed
commercial would need to have a
up" with the trend.
possible audience of 21,000,000
people to equal the pulling power
Consumer Reaction
' '
of the little weekly of only 5,000
Sometimes, consumer distaste is circulation. Yet a good sized
revealed in the purchase of some
radio-network may claim no more
gadget, such as I read about not than a maximum potential listen¬
long ago. By pressing one of two

buttons

remote

control

switch it will eliminate all sound
from your radio for a portion of

minute, a minute or thereabouts.
Just long enouugh to avoid the
a

commercial.
900

these

were

said that

over

sold the

first

week they were on the market!
Sometimes the representatives
of the people have to go to work
to

protect

them.

Federal

Trade
usually
upheld by the U. S. Circuit Court
of Appeals to protect the public
from products and services which
Commission decisions

are

not

what

advertising.

they

Some

are

seem

people

from
think

that the Federal Communications

Commission should become active

ing audience of 10,000,000.
Conclusion

Visual teaching is more effec¬
tive than auditory. At least, this
seems

movie

industry

claim. Newspapers have the vis¬
ual

appeal.* They are especially
good for presenting "name" trade¬
mark products. One suggestion I
would

make

that

advertisers

larger type and fewer words.
The use of color is especially pro¬
use

mising.

Almost

400 newspapers
printing two-color ad¬
vertisements. Over 150 are print¬
ing three-color ads, Color ads in
newspapers
"stop"
the
reader
many advertising experts think.
are

now

For the past three months a
quality of radio
Others feel that a prod¬ "buyers market" has been de¬
uct's radio commercials might be veloping. More
adyertising and
changed for the better by a sort better advertising are again be¬
of boycott or refusal to buy on coming necessary to interest the
the part of large women's clubs customer. But, with a U. S. popu¬
or organized
groups of business lation increase amounting to over
women. Unpleasant publicity from
9,000,000 since 1940, business also
in improving the

programs.

a group representing the largest has an enormous new market to
buyers
of
home
commodities sell. It should be able to meet the
challenge of good old American
might bring drastic action.

competition with bounce and with
Comparisons
I

ing

not

but

pleasure provided the newspapers,
both large and small, aire fully

expert on advertis¬
do know something utilized.

Australia Sells Sold to Britain
United Kingdom.
that during
the depression Australia had to part with practically all her gold
reserves
to meet overseas obligations,. During recent years the
Commonwealth Bank had begun rebuilding the gold reserves by pur¬
chasing and holding current production. The government and the
Australia has sold 150,000 ounces of gold to the

announcing this Prime Minister Joseph B. Chifley said

deficient and exchange availabilities may, of equipment, chemicals and certain
Commonwealth Bank would like<^badly worn, with strong efforts course; ' shrink sharply, which consumer goods.
to have continued the policy of countries. Officials say that most
being made, to secure new equip- might make necessary restricted
gradually rebuilding Australia's of the goods affected can be either
ment abroad. Port congestion is
imports and/or sale of gold. There
gold reserves, but the current dol¬ manufactured in Australia or im¬
causing many headaches as it now is a broad general control, not McNear & Willard Formed
lar situation was so serious that ported from "soft" currency
takes
merchandise
about
two
(Special to The Financial Chronicle)
only of imports, but also of ex¬
it had been decided, for the time sources. One of the principal ef¬
months to clear after arrival of
ports and exchange.
SAN FRANCISCO,
CALIF.— being, to sell current gold produc¬ fects of the ban is likely to be an
the steamer. The general feeling
McNear
&
Willard
has
been tion to the United Kingdom as a intensification of the labor de¬
;
is that this situation will only
Five Year Plan
formed with offices in the Russ special measure of help in her mand in local production. Most
alowly
right
itself,
it
being
contracts already made for the
desire to Building. Partners are Fred W. present difficulties.
With the declared
;
thought that real improvement
McNear,
Edward
H.
McNear,
supply of goods on the banned list
; depends basically on additional strengthen her own economy to
member
of
the San Francisco
Large Savings From Import Cuts will be allowed to be fulfilled,
permit her to play her full part
port facilities.
Stock Exchange, and Robert H.
In the field of finance, the most with the rest of the Americas in
A saving of $10,500,000 in the Some clothing trade men say that
Willard. Mr. Willard has recently
the event of another world war,
been with J. Barth & Co. and current trade year is expected by huge imports of Britain's cotton
*This is one of a series of re¬ Argentina has embarked on an
Commonwealth officials following
piece goods and other textiles will
prior thereto was a partner in
ports
on
conditions
in
South ambitious Five Year Han for pub¬
Wm. Cavalier & Co. and H. R. the announcement of a long list be essential to meet the shortages
America prepared by Mr. Rowe, lic works, transport, power plants,
of import embargos and quantity
Baker & Co.
The others were
who visited Argentina earlier in public health, immigration, etc. to
restrictions on goods from dollar caused by cuts of dollar imports.
cost 6,790 millions of pesos. It! is partners in McNear & Hoelscher.
-the year.
.

;ents

The

and

exports at favorable prices assure types of goods most likely to be
ample foreign exchange for some in demand from the United States
If grain production are machinery, raw materials for
system in
Europe becomes normal, foreign manufacturing, transportation

Financial Developments

the stock of al¬

official has paper with a circulation of
5,000.
admitted that radio broadcasters
Multiply the number of minutes
had permitted
"advertising ex¬ which the advertising is available

Personally, I had

most any newspaper than in the
stock of most broadcasting com¬

high broadcasting

overestimated.

rather invest in

advertisement is
several, days toy
family reader, On the other
hand, the radio "spot" must be
the
way
in caught on the fly at a certain
which it is minute of a certain
day on a cer¬

playing

It is the announced purpose of the
government to finance this plan
with the profits of the Instituto

realizing

this

survey,
it
seems
clear

only be realized slowly due
chiefly to difficulty in obtaining
equipment) will be scaled down.

in fact the major exportable prod¬
ucts other than wool — and is

prices.

From

can

Argentino de Promotion del Intercambio, otherwise known as
"Iapi". This government owned
entity is purchasing all of the ex¬
portable surplus of grains, meats,

can

result

pert advice has been called in and
it is reported that the plan (which

now being
today is the perpendicular- rise of
common stocks, it being reported placed sparingly. It is too early
even to guess how this program
,•/ are good. Failures are not ab- that in recent years the general
?. normally.. high.
Profits, except, average of stocks has risen several may be implemented or what the
results will be.
perhaps for the farmer and stock- hundred percent. The market is
I raiser who sell at fixed prices to still going up; The most common
;
the government purchasing- and explanation of this phenomenon
Government In Business
; v exporting agency which will be
is high, profits and plethora of
It is the declared policy of the
/> described later, continue high. stock dividends.
^m.
government to acquire foreign^
"While prices of real i estate are
owned utilities and railways on a
c very
Exchange Position
high, the market reports
basis of fair payment for the
relatively little speculation and no
The gold and exchange position properties purchased. Other ac¬
?•. undue - amount • of
construction,
totals around 5 billion pesos, there tivities of the government in the
i
There are no rent ceilings on new
having been some shrinkage since field of private enterprise are pur¬
buildings and new space is said the
high point of September, 1946 chases and sales of exportable
to cost about double the price of
when it was approximately 6 bil¬ surpluses such as those described
that under ceilings.
Office and lion
pesos. This is said to be due above, control of importation of
living quarters £re extremely difto heavy spending, mostly for gov¬ certain
products, banking
and
\ ficult to obtain.
ernment
account,
to
pay
for petroleum, It is not known that
Notwithstanding efforts taken needed
imports and the purchase the government contemplates en¬
to make price controls effective,
of the telephone system. After the tering any other field of business
the results have been mostly nega¬
payment in June of £ 150 million activity.
tive. As a consequence, a fairly
for
the British-owned railways
Foreign capital is welcome but
broad
black
market
obtains.
and after allowing for anticipated
emphasis today is placed on the
.Drastic legislation has just been
exchange receipts and disburse¬ creation of new industries involv¬
/» adopted to punish price offenders
ments, the best guess is that the ing a mixed
company
owned
and speculators. A composite estiremaining total gold and exchange partly by the government and
c
mate is that the cost 6f living
holdings may then be about 3 partly by private capital, foreign
during recent years has increased billion
pesos. Although holdings and domestic.
./ about 85% and is running ahead
of dollar exchange are believed
of real wages. For this reason,
to be shrinking and it is expected
Composition of Imports
there is more or less continuous
that the trade balance with the
labor unrest and frequent strikes.
So far as imports are concerned,
United States will in all likeli¬
Xiabor looks for shorter hours and
hood continue to be unfavorable, the broad development of indus¬
Increased real wages. There seems -there is reason to believe that
try during recent years, and con¬
to be a labor shortage in .most
there will be no hesitation in sell¬ templated by the Five Year Plan,
lines of endeavor but it is hoped
ing gold if necessary to meet com¬ is swinging the demand away
that
the
immigration program mercial'needs. It is the opinion of from consumer goods to machin¬
which is now under way will help
the market that continued high ery and industrial equipment. The

a majority of the consumers feel
advertising, in general, is better than it was five years ago.
They
aIso$>
agree that about statistics. My studies lead4
higher sales me to believe that the pulling
through
ad¬ power
of radio advertising is

":—

eign debt, and
gold holdings
are
heavy,
Suggestive of
the .general
well-being is

A recent survey shows that

interesting development has been1 hardly beyond
the
blue-print
the new banking law under which stage
yet, although colonization
commercial banks became agen¬ efforts have
already begun. Ex¬
cies of the central bank. The law

Advertising

By ROGER W. BABSON

Vice-President, Irving Trust Co., New York

are

COMMERCIAL

THE

(1022)

FINANCIAL

CHRONICLE

when

times

are

In the

good.

past, as you well know, it was
possible to get too much credit

Keep Up Selling Activity to Avoid Depression!

when you didn't
little when you

By PAUL G. HOFFMAN*
Chairman, Committee for Economic Development

need it and very
did.
There are

also opportunities to promote sta¬

President, The Studebaker Corporation

record.

This

11,1947

should be

provided businessmen are
prepared to spend some of the
money
they are saving now when
the
going gets tough.
One

factor

which

has

contrib¬

bility in the management of the uted to
under-spending for sales
public debt, through timing in the and
advertising in periods
when
construction of public works, the business
is hard to get and
over¬
administration of social security,
spending in good times is the em¬
and the regularizing of employ¬
phasis sales executives

of economic instability to fluctuations in market demand, Mr. Hoffman stresses im¬
of maintaining and expanding sales activity as a means of moderating any future depres¬
sion.
Says continued willingness to spend and invest, combined with application of power and ma¬
chinery to increase production, can moderate a depression, but denies there is any magic formula
to prevent peaks and valleys in business activity.
Laying

Thursday, September

cause

portance

ment,

well

in various other

controlled by govern¬
ment, some by businessmen, and

areas, some

by others.

some

However, if

have

placed

fixed

ratio

and

sales

themselves
maintaining a
advertising

between

expense

and

sales vol¬

Early in 1943, Scott Fletcher, speaking for the Committee for Economic Develop¬ are to win our battle against de¬ ume. Whether it is 3% or 30%
that is the criterion, the
figure
ment, addressed the New York Sales Executives' Club and urged you as members to join pression, there is one part of the takes
on
mystical
importance.
CED in challenging a notion which then prevailed that immediately following V-J Day, program
the
responsibility for
Actually, we do not move mer¬
which

there was cer-

tions were

being

proposal sounds vide the values and services which

freely

would

depression

great

made

quite

Such

there would

create—

be hazards from the

outside

as well.
Russia today is
eagerly awaiting signs of collapse,
They know that their ideology

ital.

But businessmen will make

squarely

upon

sales

chandise with

Theoretically, if
volume,

wish to stabilize sales
it is dollar

Intensive Use of Power and

expenditures,

Machinery
productiveness and

conse¬

quent high standard of living are
dependent upon the large-scale,

not

ex¬

ratios,

pense

Our

percentages—we do

it with dollars.

that should remain
There are

constant.
course,

but I

times,

when this is

urge

that

impractical,

get away

intensive use of power and ma¬
from the
tyranny of percentages.
It is obvious that we I
there is promise of a chinery.
suggest instead that profit con¬
reasonable profit; so these pur- cannot have more goods for more
siderations should form the
basis
gains adherence only when chaos chases
are
postponable.
When people by reverting to horses and for our
judgment as to appropria¬
prevails—when people are con- chances of profit are dreary, they to hand tools. Yet, we fought the
war
workers
tions for selling and
fused and desperate.
advertising
are
often put off even though last depression in part by setting
would
be
expenditures. We should allocate
ample cash reserves are on hand millions of men at unproductive that
walking
the
amount which will
Cause of Economic Instability
produce
It is against the background of work—WPA leaf raking—and by
streets
look¬
the most net
profit.
That might
Before we can intelligently corJ- these various factors which inspreading the work in factories so well be 1% in
ing
for
em¬
one period and
Paul
G.
Hoffman
sider measures aimed at moderat- fluence market demand that we that a
5%
larger number .of workmen in
ployment.
I
another.
ing
the
boom-bust
cycle,
we must develop a program to mod- would produce a smaller amount
spoke at one forum at that time should
The time to prepare to
try to determine what erate its fluctuations.
The pro- of merchandise.
fight a
at which a very prominent labor
makes
our
economy
unstable, gram must recognize, of course,
The steam and electric power depression is before it starts, so
leader predicted
a
minimum of
The answer is simple.
Instability the necessity of maintaining ade- and the machines of production right now is the time for you to
19,000.000 unemployed. This idea, in our
sell top management and
economy results from in- quate purchasing power, but it have
boards
their counterparts
in the
that large scale postwar unem¬
stability in effective market de- must also take into full account advertising power and mass sell¬ of directors on the soundness of a
ployment was unavoidable, was mand.
But the answer to why the importance of
giving individ- ing essential to the distribution of reasonably stable program of sales
exceedingly dangerous.
Of and market demand
and
is unstable is not uals confidence in the
advertising expenditures. It
continuity billions of dollars worth of mer¬
by itself, it tended to create un¬
will be too late when some unsimple.
It is very complex in- of their incomes, and business- chandise.
We know that we can¬
employment by promoting a do- deed.
forseen incident
Market demand for goods men, confidence in the
precipitates the
prospects not distribute the products of mass
nothing attitude and it also pro¬ and services
is, of course, made for continued profitable operaproduction by reverting to ped¬ type of hysteria we experienced
vided
the collectivists with
an

when

that

came,
from eight to
10
m i 1110 n
peace

excuse

proposing

for

government con¬

fying peacetime
trols

economy.

our

over

that instead

Mr. Fletcher urged

notion of un¬

this

accepting

of
intensi¬

group

radical measures aimed at

unemployment,
at once and
for the quick
reconversion of
our
enterprises
from wartime to peacetime activi¬
avoidable pastwar

should get busy
make plans not only
we

the

combined

demands

market

time

levels previously

peacetime

reached.

He urged

that the Sales

Executives' Clubs in the country,
in

addition to their general

sup¬

port of courageous postwar plan¬

demand

de-

gratification

activities

were

you

the sales field

matched by similar activities

tions.

seeking for meast0 minimize the instability of

ures

arg

economic system and thus

our

cor-

results—employment

the

know

today is at a level that none of us
wouid have dared predict even
two years ago.

going

I'm

Today,

ask

members of the New York
Executives'

Club

the

Sales

join CED

combating another dangerous no¬
tion—that, a great depression in

early" '50's

the

When you

plications

is
think it
such

unavoidable,
the im¬
notion are

over,
a

terrifying.
Who can doubt that a
great depression would put our
free economy

•position!
omy

with

goes,

it.

without

part
of

in a most hazardous
if our free econ¬
our basic freedoms go
All this could happen
And

any

of the

freedom

direct

vote on the
people on the issue
dictatorship.

versus

We would slip into a dictatorship

by voting for measures that would
have great appeal during a period
of

unemployment. For ex¬
ample, with millions out of work,
there would surely be pressure on
the government to guarantee jobs
mass

available to
ness

firms

ters

customers

and

busi¬

such "minor"

are

mat¬

income

distribution, tax
credit policies, and the

policies,

status of international trade.
_r
_
—

In-

Willingness to ^.pend and Invest

Complex as are the problems
dealing with the matter of availability of cash and credit, they

credit

"address

Mr.

Hoffman

New

York,
Sept. 9, 1947.

New

York

City,

have'enough cash or
keep market demand
are not
willing to spend

stable but

this cash

handbills.

Yet

advertising

and by firing sales¬
example of how dras-

No Magic Formula

Now

the

comes

What kind

$64

Here

after

the

1929.

stock

You

market

must

crash

convince

•

them

in advance of the need, that
it is not smart to
try to fight a
fire by rationing water and send¬
now,

credit.

Paradoxically-,

and

question.

program

can

get under motion that will yield
us
dynamic stability?
Perhaps
you will agree with me that the
complexities of the problem are
such that (1) it will take

is what we must not for¬

consumers
and
businesses
have
vast needs and money to pay for
much of what they need.
But, as

I, have pointed out, a large pro-;
portion of those purchasesare

postponable.
And they will be
postponed if selling and advertis¬
ing support is curtailed.
Then

work our way toward our
goal;

^2) there is

one

formula,

money

one

magic,

cure

there will be

shrinkage in will¬

for

ingness to buy far in advance of
the boom-bust cycle.
Neverthe- and far exceeding the
shrinkage
iess, if we fail to check a climactic in
ability to buy. This should not
boom or if we have a disastrous
happen. When depression threat¬
depression, it will not be because ens, it is up to the sales executives

mep
we

like you.

can

sions

Looking backward,

that

see

were

depresby things men

did

America

intensify—not

re¬

duce—market pressures and thus

keep the will to buy alive in the
hearts of American business and

iivmg.

When you give
thought to it, the
teason is obvious.
If most of us

It will take courage for you and
associates to continue your

your

just barely
minimum living,
are

tle

choice

when

able

earn

we will have litwhat we buy or

we buy it.
Our money will
for food, clothing and shelter
that we have to have
regularly,

told that in order to maintain

oeing so, if men act
in the future than

sensibly profits

they have in

the past, fluctuations in
the business

cycle
There is no
lent booms

can

moderated,

excuse for

either vio-

busts. By adopting
appropriate measures,
the drop
between the peaks and
or

valleys
can, I believe, be held to fluctuathe more tions of
20%, or perhaps 15%.
money we have beyond what we
We can live with
that; we cannot
must use for basic
needs, the more live with a
fluctuation
On

the

chance

other

have

hand,

choose

what

buy and the larger the number
purchases which

post-

can

pone—and aften do, even
have
money in the bank.
What is true of the

individual

buyer is true of business.
Business
can
also postpone its
purchases.
makes

Modern

business
of

its

and

inventories

store
—

into

money

goods—buildings
office

competition

put

and

capital

such

that

which

1929 and
ume

took place between
1932, when business vol-

dropped

achieve

this

than 50%.
goal of reduc-

ing the range in fluctuations from
50% to

action

15%,

will have to have

many fronts.
We will
have to recast our tax
structure
so that it tends to
promote stabil-

ity rather than instability,
now

does.

and

should also

give

machinery, thought to
stabilizing the availequipment and ability of credit
so that those
who

make

'ow-cost production

and

possible
to

pro-

are

entitled to it

times

are

can

get it when

somewhat tough, as well

scores

who

used

that that

the quickest and

use of a sharp pencil.
It should
always be remembered
that
one
man's
expenditure
is

man's

income,

vice
Every cut in expenditures

cut

in income—and

cut

money paid out do not receive it.
Second, and more important, cer¬

the

It is
we

years

believe that
they will do

are

never

selling

made because

pressure

their

full part.

With Martin, Burns, Corbett
(Special to The Financial

CHICAGO,

Chronicle)

James
T.
Doyle has become associated with
Martin, Burns & Corbett, Inc., 135
•

ILL.

—

South La Salle Street.
the past with the

He was in

Chicago office
Stifel, Nicolaus & Co., Inc.
I:

With Continental Sees.
(Special to The Financial

Chronicle)

GRRAND
RAPIDS, MICH. —*
Donald J. Frans has been added
to the staff of Continental Securi¬

National

Herrick, Waddel! Adds

(Special to The Financial Chronicle)

ST.

Martin

LOUIS,
is

now

MO.—Harry

L»

with

connected

Herrick, Waddell & Co., Inc., 413

Locust Street.

that

Joins Newhard, Cook

was

ST.

Staff

MO. —Roland J#
Jones has become affiliated with
Newhard, Cook & Co., Fourth &

LOUIS,

Olive
Streets, members
New York, St.
Louis, and
Stock Exchanges.

the

Chicago

applied.
a

are

gantly

cabhelp

depression—and

(Special to The Financial Chronicle)
a

double cut in income.
First, those
who would receive as income the

never

prevent the next

and

selling expenditures results in

tain sales

guarantees z&t* other

socialistic! expedients,

eas¬

by such

versa.

government-

sharp pencil must be ties Co.,
Inc., People's
advertising schedules— Bank
Building.
is

iest way to save 10, 50 ;or one
hundred thousand dollars.
I sug¬
gest that you reply that many a
business has been stabbed to death

another

000,000 soldiers, and who hqjped
60,000,000 j 0 b
without

create

consumers.

all past

caused

The

executives

During the first stages of planned and worked to take up
depression there is ample the slack of demobilization
of
purchasing power.
Individual
20,000,000 war workers and 10,*

ernment, business, labor, agriculture and the educators—to
help
an(j

get.

the col-!
lective wisdom of all of
us—gov-

high water.

thousands

every

(things which they could have
this question of
advertising and to maintain your
willingness of cus- refrained
from
doing)
and
bv sales
tomers to spend becomes a
forces
when
the
storm
more
things they failed to do (which clouds
significant factor with
begin to gather. You will
every in- they
palll rl
v,
j
11
r"1
have
done).
This be

*An

before the Sales Executives' Club

and

many businessmen started fighting
the last depression by
cancelling

Keep Up Selling Activity

thousands of other
production, engi¬ are
nothing as compared with
neering and finance,
Many na¬ those which determine
the willingtional organizations
in addition ness. of customers
and business0f an act of God or a
to
CED, and hundreds of local men to
convulsion
spend and invest.
Here 0f
nature.
It will be because of
organizations also, gave their full we run
directly into psychological the acts
of men—American
support to the campaign to com¬ factors. I n
men,
dividual customers
American leaders—you, and other
bat postwar unemployment.
You quite often
the part of

businessmen

carts

dlers'

Whije

utives' Clubs should be a source of
Your

•in¬

wijjv.ii

iuv.u.o

vec^
weaknesses, we must Con¬ men. As an
ing half the fire company back to
stantly keep in mind that its tice were those cuts in advertising
the station because we are "con¬
bus^essmen anc*,
government, strength lies in the natural lusty expenditures, I call your attention
and (2) how much of
that.cash or vitality.
serving" half the available water.
,o these two bound volumes of the
That we must not lose,
the proceeds of that credit
they
Make your plans now and
otherwise, we may end up with 'Saturday Evening Post," one for
get
are
willing to spend for goods or a
he last quarter of 1929, the other
stabilized poverty so characteran agreement on
sustained adver¬
in kusiness assets..
istic of the tired, regimented, old- for the last quarter of 1930.
tising and selling in splite of hell
jS cAear .ei}ou&h, but in- world economics.

ning take.on the particular assign¬ volved in the
determination of
ment {of training1 sales executives
how
much
cash
and
credit is
for their enlarged responsibilies
available to the Federal GovernThe
magnificent
perform¬ ment are decisions
of the execuance turned in by the Sales Exec¬
tive branch and of Congress.
continuing

only

pends upon (1) how much cash
or credit is available to
customers,

ties, but also for a substantial volved in the determination
expansion of business far beyond how much cash
and
credit
any

individual customers, business
firms and governments.
At any
given

investments in such capital goods

•

the stream of active, creative cap-

rests

executives.

plausible, but only a totalitarian buyers demand. If businesses do
government controlling all enter- not make such purchases, the savprise could make good on it. It is ings of both individuals and businot only internal hazards that a nesses cannot find their way into

ntial
unemploy¬
ment. Predicb s t a

s u

all.

for

good
not

and

sign that at present
spending extrava¬
that during recent

selling and advertising

ex¬

penditures in relation to national
income have been the lowest on

Two With Slay ton & Co.
(Special to The Financial Chronicle)

ST.

LOUIS, MO.—Charles J.
MacKeen and Edward M. Ziemba
have joined the staff of
Slay ton &

Co., Inc., 408 Olive Street.

Number 4628

Volume 166

THE

COMMERCIAL

says cost

and sacrifice will

implement the program
initiated by Mr. Marshall.
' 1
There are urgent humanitarian
considerations as well, which ap¬

not be too

fend off disaster of extension of Soviet power in Western
Europe.
Denies that we cannot afford it, that it will give new
impetus to domestic inflation, or that it will strengthen Socialist
government throughout Western Europe.
great to

The Committee

FINANCIAL CHRONICLE

Holds Marshall Plan Essential Curb to Russia
NPA International Committee

peal

the

vast

see

women

::ault

generous

numbers of

condemned,

their

malnutrition

idleness.

wish insofar as possible to extend
i;hem a helping hand. In this we
Investors Company, has issued^a
statement on "America's Vital sustaining influence on our econ¬ should be influenced by a con¬
sideration of paramount impor¬
Interest in European Recovery," omy.
tance.
Advances
made
for
the
in which full support is given to
The answer to the third
argu¬
destructive purposes of war were
the Marshall Plan. After discuss¬ ment is that the Socialist
experi¬
not and, in the
very nature of
ing considerations taken up in the ment in Western Europe, unlike
hings, could not be repaid. Ad¬
forthcoming report of Committee Communism in
practice, has in¬
vances made for the constructive
appointed by the Paris Confer¬ volved no infringement upon the
ence to draw up a plan for Eu¬
civil liberties of the individual. purposes of peace, on the other
land, can in the normal course of
ropean recovery, the report states: This, from the American point of
events be repaid. For they release
When the delegates to the Paris view, is of supreme importance.
the very productive forces which
Conference have submitted their Our primary concern should be
make
repayment
possible.
The
report, it will be our turn to act. whether individual liberty is in
greater our success in restoring
What conclusions will be reached fact protected, and not whether it
European productivity, the more
it is not yet possible to predict. finds expression under .any par¬
secure

extent

the

Euro¬

pean effort, nor the character or
quantities of goods or services we
may be asked to supply, can be
more than vaguely surmised.

Yet

even now a

servations

few general ob¬

safely be made.

can

ticular

that

pattern

economic

protected in

nation

falls

the

The

area

which, for the preser¬
vation of our own liberties, we
are
called upon more insistently

(1) Any plan wisely conceived
be on a scale adequate to
assure the greatest possible chance

before

ever

impelling

Congress

our

J.™ havTe listened to
times.
Important

enlightened

discussion of

they

solved,
is

vastly

urgent

and vital task

the

years

ahead.

will

not,

faced
the

are

with

task

leading
world.

defend.

order based

the

peace,
law. This

domination

Asia.

ascism at

prevented

defeating

domination

terrible cost of lives

know

render

that

Western

cannot

Europe

control of the Russians.

Marshall's proposal
pean

i.hat

sur¬

into

the

Secretary

the

Euro¬

nations, including Russia,
joint effort be made to put

Europe

is to maintain

success

on
its
feet,
was
the
duty highest
kind of statesmanship.
that1 That Russia has refused to
partici¬
leaderpate in that plan
is full con¬
firmation of the necessity for its
ship brings

primary
that

Sen. Brien McMahon

self-in¬

well.

that

the

and

urope

The

strike out

accomplish

and treasure.

Whether
we

some of the vital issues of
important as it is that they be

are,

there V-

for deci¬

reason

Scores Russians for

bomb-production.

a
just peace.
boldly on
How we discharge that responsi¬
the course charted by Secretary
bility will determine not only our
Marshall, we may yet succeed in
fate, but that of civilization as
laying the foundation for a world

terest. If

Gap Between East And West

must

necessitating
our

reveals great progress in
produc¬

bombs and atomic energy in
general.

investment

sive action at the next session of

of freedom

than

our

tion of

in world peace.

nation,

any,

within

will become

life.

Congressional committee member

can

the

U. S. Senator from
Connecticut

and

through no
to suffering,

own,
and

men

Superiority Increasing

By BRIEN McMAHON*

spirit of
America. It goes against our grain

International Policy of the National
Planning
Association, headed by Frank Altschul, Chairman of General Ameri¬

Neither

U. S. Atom

justice and

without her.

predict

that

the

countries

of Western

Europe fulfill the obigation which we have placed
upon them—namely, of coming up
with a fair and workable
plan for

I know that some of our people, their salvation
that the people
after the war years, long for re¬ of America will be
behind this
differ¬ preme objective; yet, it is not one lief from the
responsibility that Administration, regardless of
(2) The net deficit which the ent order. They detect in recent to be attained as long as tyranny
leadership brings with it; but we party, in the measures necessary
United States will be asked to
developments a tendency to accept anywhere dominates the actions of
to make the plan a success.
meet will extend over a period of as
nations or of men. Our unique mus.t realize that normalcy, sounbridgeable the gap between
I have confidence that we will,
called, is not just around the cor¬
years but will diminish from year East and West—a
tendency which position in world affairs imposes ner and that we cannot
go back. surmount our difficulties and lead,
to year.
uninterrupted
would
inevitably upon us the obligation of leader¬ It is axiomatic that
power and the world into a just peace.
All
(3) The amount of this net defi¬ undermine the United Nations. At ship. If we will but lead, countless
prestige wither and die if they are human things are ephemeral, I
cit in the early years of the plan the
recent meeting of the three millions in other lands will gladly
not used wisely and well, but out suppose. It
may be that this gov¬
will in any event be considerable.
Foreign Ministers, they point out, follow.
of their proper use can come true ernment in whose future
destiny
Nowhere have we a greater op¬
Ignorance of the precise nature lines
of
division
were
more
satisfaction in the realization that we
believe
so
deeply will be
of the
obligations we shall be vividly drawn than ever before. portunity for democratic leader¬
we are successfully
found at the sunset of some
matching our
called upon to
day
assume
has not In connection with the program of ship
than
in
Western
Europe
talents with our tasks—-that we to
have
disappeared.
But
the
deterred
certain
elements from aid to Greece
where
hunger and hopelessness
and Turkey, the
have a faith in our destiny and principles of Justice are eternal
are
laying
the
groundwork
for
a
hacking away at the great
Security Council was by-passed.
and that government which ad¬
are determined to achieve it.
violent attack on whatever pro¬ The
Economic
Commission
for principles for which the war was
heres to them will last foreverWe
should
congratulate
our¬
gram our government may decide
Europe
was
by-passed
by the fought. If these twin evils can be
forever
progressive, ever freer,
to
recommend.
Opposition
has Paris Economic Conference.
removed, one of the chief causes selves that we have been success¬
ever
stronger, ever more durable.
reached the ridiculous extreme of
for the spread of Communism will ful in achieving ai unity of purpose
These facts cannot be denied
I believe that with each new de¬
in foreign policy matters under Mr.
be removed as well. Then free
attempting to frustrate any effort Affairs have
taken
a
turn
for
velopment
of
science,
creating
enterprise within a democratic Truman. The achievement of that
by
the
State
Departments- to
which
vast additions to our
possibly
no
government
wealth, our
framework
will
once
awaken the public to the critical
again be unity in. foreign affairs has non
bears " the
entire
responsibility. able to demonstrate that it can do been accidental: It has come about American system will be found
nature of the choice which lies
Conscious of this dangerous drift,
adaptable enough to include them,
more
than any other system yet because your government has de¬
ahead. It is urgently necessary,
however, we should do all that devised to meet the needs and vised and advanced sound pro¬ strong enough to regulate them,
therefore, that those who hold the lies within our
and that here will ever flourish
power to arrest it.
grams on matters essential to the
desires of men.
conviction that the security and
the strongest and truest
With this in mind we should, on
way of
To
peace;
policies
welfare of the United States is at
bring about conditions in keeping of the
every
appropirate occasion, em¬ which this
maintaining
institutions
which have inevitably, because of life,
stake should speak out with no
system may have a fair
which
will stimulate patriotism
phasize as forcibly as possible
further delay.
chance, the arsenal of democracy, their worth, attracted the sup¬
and stand as a beacon
that:
light for
which furnished so liberally the port of statesmen, irrespective of
For this is not a casual matter.
the oppressed of every land.
(1) The United States, desirous sinews of war, must continue for party.

success.

before

the

♦ingress since
occupied
Peace

or,

people

we were

with

the

and the

last

pre¬

question

War.

Arguments in Opposition
The

opponents

substantial

any

participation

further
by

the

three

main arguments:
(1) That we cannot afford it.
(2) That it would give a new
impetus to domestic inflation.

(3) That it would strengthen
Socialist governments throughout
Western Europe.,.
The

answer

first

the

argu¬

ment, briefly stated, is that we can
afford anything better than to al¬
low Western Europe, in deepening

distress, to fall

prey to Commu¬
dictatorship.
Such a
catastrophic development would
plunge the world into economic
and political turmoil and would
threaten the well-being of our
people and the integrity of our
institutions.

nism

and

The
ment

to the second argu¬

answer

that

however

great may
»be the demands made upon us by
r

the nations

Western Europe,
the amounts finally agreed upon
can
scarcely be materially greater
than our current exports to these
nations.-Purchases of this order
of

of magnitude for Eurpean account
have already had their impact on
the domestic price level. With the

exception

certain

items

mo¬

in short supply, it is
unlikely that the program in pros¬

mentarily
pect

will

cause, any

considerable

further increase in the American
f

cost of living. It
Probable

goodwill

that

seems far more
will exercise a

submitting to

the United Na¬

should

that

the

troubled

rule

our

—

su¬

very

determination

tions for
sue

are

consideration of

every

properly

is¬

come

before

it, is prepared to do' what¬
ever lies within its power to place
that organization in a position to

time to carry the

Permit

burden of fur¬

illustrate.

nishing in adequate measure the kne\y that our achievement of the
sinews of peace. Food, raw ma¬ use of atomic energy raised a new
terials,
manufactured
products problem of tremendous magni¬
technical

and

skills

will

re¬

The control of that energy,

tude.

internationally,
heart of the main¬
tenance of peace.
We have acted
spirit envisaged when the Charter
was adopted at San Francisco.
intelligently in a way to com¬
mand the unanimous support of
(2) The invitation extended by we fought shall survive. In this
our
people. A control Act was
the United States to the nations manner, we shall make of Western
a
secure
bastion from passed a year ago, setting up a
of Europe through our Secretary Europe
Civilian Commission to operate
of State was opened to the Sovie'; which freedom may gradually re¬
atomic matters here. It is a trib¬
Union and to its satellites. It re¬ gain in other areas the ascendancy
ute to the worth of that Act that
mains
open
in
the
continuing lost in the aftermath of war.

function in the

United States in European recon¬
struction have
so
far
advanced

It is the most momentous issue to

come

Men

manner

and in the

quired. In meeting these require¬

domestically

ments, we shall give practical ex¬
pression to our determination that
the ideals and beliefs for which

lies at the very

hope that the Soviet Union may
yet

decide
in

nations

European

join the

the peaceful task
reconstruction.
❖

o::

policy,

pre¬

viously pointed out, can no longer

based on so fragile
foundation as hope alone. Storm
warnings
are
flying,
which
would be perilous to ignore. Peace
and security may be the true ob¬
safely

jectives of Soviet policy. But lack¬
ing further evidence, we cannot
prudently act on the assumption
that this is the

case.

There

are

too

signs that Russian imperial¬
ism is again on the march. And no
many

one can

state with assurance what

if any, the Soviet Union
placed upon its dominion.

limits,
has

Can We

What

This
fication

the

for

above that

tion

statement

made

afford anything

in deepening distress, to fall
easy prey to Communism. This is
the fundamental reason why we
rope,

promptly

take

steps may be required

is hardly an exaggera¬

say

that

might

whatever

even

of Western

such disaster,
sacrifice is too great. The alter¬

justi¬

the

through

States.

Afford?

fundamental

we can

the con¬

hestitation, through
vision, we fail
to accept the challenge, we shall
give substance to the charge so
widely circulated by the anti¬
democratic forces that we cannot
be relied upon to back up our
words with deeds. In this event,
we may witness the extension of
Soviet power to the Atlantic Sea¬
board
as
the
democracies
of
Western Europe, in an atmosphere
of
growing despair,
yield in¬
creasingly to the pressure and
propaganda of a despotic police
state. This would present a formi¬
dable and imminent threat to the
welfare and security of the United

presage the destruction
civilization.

better than to allow Western Eu¬

must

This is the challenging,

structive task which beckons us.
lack of courage or

national

But

Western

fend

off any

overstated
and they point to only one ra¬
tional conclusion:
We must do
whatever
may
be necessary to
make our cause prevail. We can¬
not afford safely or wisely to do
natives have not been

effectivelyoless.
: if

L-rv;
nt

received

and

unanimous

the

achievement

the

superiority in atomic
energy production, including the
making of atomic bombs—bombs,
incidentally, which we wish we
did not have to continue to make

agreed to by Russia. That those
proposals were right and decent
and just is testified to by the fact
that every nation except Russia

the

destruction;
that

seen

because
we
have
Russia
is
pursuing

aggressive

policy
we

rill

Lynch,
Pierce,
Fenner
Beane, 523 West Sixth Street.

■EB**

With E. F. Hut ton & Co.
(Special

SAN

to The Financial

FRANCISCO,

ward F.

Rottman

Chronicle)

CAL.—Ed¬

has become

sociated with E. F. Hutton &
160

as¬

Co.,

Montgomery Street.

Joins Daniel F. Rice & Co.
(Special

to The Financial

MIAMI

Sullivan

Chronicle)

BEACH, FLA.—Michael
is

now

with

Daniel

F. Rice &
He

was

Co., Roney Plaza Hotel.
formerly connected with

Florida Securities Co.

With E. M. Adams & Co.
(Special

to The

Chronicle)

Financial

PORTLAND, ORE.—Verling W.
Pierson

has

been

added

the

staff of E. M. Adams & Co., Amer¬
ican Bank Building.

every
that the

have

not either by

"Iron

ever

become

determination

expansionist
front; because
Curtain"
rigid,

in our
Russia shall

unified

that

intrigue or by force

McMahon
over American
Broadcasting Co,
network, Sept. 2, 1947.
*A

talk

With Graham, Parsons Co.
A.

Allyn

Bernard

Graham, Parsons & Co.,

is
with
14 Wall

Street, New York City.

and

see

becoming

Chronicle)

have failed to suc¬

securing .agreement on
control of weapons of mass
in

ceed

Financial

supported them.

Because we

an "

The

would not be

making if the American proposals
for International Control had been

has

ANGELES, CAL.—William

H. Leach and Raymond R. Pritchard have joined the staff of Mer¬

ever

greater

—bombs which

(Special

LOS

ap¬

proval of the Senate.
We are now making real prog¬
ress

Two With Merrill Lynch

Senator

F. W. Dyer in Denver
DENVER,

COLO.

—

Fred

Dyer has formed Fred W. Dyer
Co. with offices at 1835 Champa
Street

conduct

securities

business. Mr. Dyer in the past was
head of the Denver Bond & Share

Co., but has not recently been en¬

gaged in the investment business.

THE

(1024)

COMMERCIAL

R.
16

REVISED

Lamm, for the past
Vice-President of the

ident
of
the
Southern
County
Bank, Anaheim, with branch of¬
fices in Artesia, Buena Park and
El Monte, according to the Los
Angeles "Times" of Sept. 3.

CAPITALIZATIONS

Corn

Exchange

Company of New York
the election

announces

Horace

field

Donald

and

Elliman

■

The

Day

board

Trust

Mass.,

Company

the

announces

Franklin Thomas Bigelow as VicePresident and of Francis Blake
William

and

Officers

Harold
Trust

and

Paulson

the

promotion

Austin

Officer.

^eSto's

been President

The

construction

since 1940, when he

company,

suc¬

foregoing is
from the Boston "Herald" of Sept. ceeded the late Wilbert J. Austin.
From
the
item
in
the
"Plain
5, which further said:
"Mr. Bigelow was formerly a Dealer" we also quote:
general partner in the firm of
"Previously
Mr.
Bryant
had
Sweetser" Sheppard & Deakin and I been
Executive
Vice-President
during the second World War was and General Manager since 1930.
Lieutenant-Colonel

General Staff Corps.

with

"He

the

1913

for-

was

merly with the Old Colony Trust
Company and the First National

was

Bank of Boston."

for

Y., while

vacation.

on a

74 years of age.

was

Co.

New

tb®

England
later

and

operations

that

openqd

year

W°rld War Ithe■company_ ope

placed

offices in New York and Washing-

The New Haven

was

an<*

£h?rg®0± b0

made

was

1Q1Q

"Evening Register" reports that he Sa*e.s Manager in 1918 and elected
served as the City Court
Judge I * director in 1922 assuming the
in Ansonia from 1899 to
1911, that
was named director of the Far-'

rel-Birmingham Company in 1904,
and in 1918 was made
Secretary,
a position
which he resigned in
1943.

The

same

President

was

sonia Red

The

the

nine

Jr.,

years."

name

the

which
vious

the North Philadelphia Trust
Company
of Philadelphia has been
elected a director of the Commonwealth Title
Company of Phila¬

delphia,

Philadelphia

learned

^'Evening

from

"Plain

that

Dealer"

after

pre¬

experience,

Mr.

ton jias keen

the bank since

194^

Central

I Chicago

National

announced

Bank

and

Cashier.

the

The Chicago "Tribune"
Sept. 4, from which we quote,

Bulletin"

added:

Kuehnle

retains

his

sub-

The directors of the Industrial
Trust Co. of Philadelphia have

stantial stock interest in the

bank

elected Robert W.

the

and

Godfrey Assist¬

will

continue

banfc said.

director,

An illness of

sev¬

ant

eral months led to Mr.
Kuehnle's

urer

resignation, associates said.

ning Bulletin" of Sept. 5.

~anK ann°unced the election as
Ca^iier of G. L. Nelson who also
is
Senior

Secretary and Assistant Treas¬
of
the
institution, it was
stated in the
Philadelphia "Eve'

Vice-President.

ney

,Cieciwa

„

Stamper, until

for

has

Inc.,

effective

Cleveland, Ohio,

immediately,

President

John K. Thompson
announced on
Sept. 8.
Mr.
Stamper will be
primarily concerned with render¬

ing corporate trust services to the
bank's commercial

customers'

?la!;e bank, the Bank of
CJ11^0' IU" wiU °Pen

Sept. 27 at Wilson

| ^5fa^ The
Commerce"

and BroadChicago "Journal of
of Sept. 3 in
making

this known said:
"It has

Iserves of $50,000.

Phillips

Academy in 1917, Harvard
College in 1921, and Harvard Law
bcb°olm

the

Ohio

1924, being admitted
bar

that

year.

After

practicing law for two
years, he
lie

later

^nlon Trust Co.
was

union Trust

liquidation and since

♦

The

First

the

Bank

America,

connected

head

with

office

the

has

and

bank

years.

the

been

for

Bank

increased

$100,000 to $150,000 by a stock dividend of
$50,000,
according to advices from the Ofof the

rency.
came

"the

Comptroller of the CurThe enlarged capital beeffective August 19.

subsequently

suggestion"

Carvel C. Linden, who resigned

recently
ond

Bank

N. J., to become

post

noted in these

was

340.

page

Clarke,

recently

the

assumes

post left

by the retirement on Tune
George H. Greenwood, "ac¬
cording to the Seattle "Times" of
Aug. 28 which states that " Mr.
Clarke joined the staff of the Pa
of

cific National Bank

Vice-Pres¬

ident
in
1931
and
was
named
Executive Vice-President in 1936.
The "Times" added:

"Seven years after
entering the
banking field here in 1915 as a

messenger

Assistant

Cashier'

named

was

the

Union

Savings and Trust Co. In 1924 he
became Cashier of the National
Bank of Commerce."

The

his

election

new

post

issue of

discussion

the

"al-

Cabinet

nor

further at present."

Secretary of rthe
Treasury
Snyder really went to the heart
of

the
matter
when
he
said:
"That's United States gold!" Fur¬
ther comment can be of advan¬

tage

only

fully

aware

with

the

not

ment

those, who

Bevin

Small
"Free"

the

government

it.

Clarke

noted

was

Sept. 4,

Mr.

iri

our

534,115,000

held

certificates.

claims

form

the

$1,027,783,071.17

since it is

the

gold

the

Reserve

learned

from

"Times"

Vancouver

sold to Seattle
First and would be
operated after
September 2 as a branch.
"The

by Lawrence
man,

made

was

Arnold, Chair¬
and Thomas F. Gleed, Pres¬

ident,
E.

stated:.

paper

announcement

the

Seattle

bank,

Sammons, President

Oregon

bank.

and

of the

County

Branch of Seattle First National.
"Mr. Sammons said
ownership
of the Vancouver

dollars

goods

our

would
of

United

sound

and

(market)

trade,

Our

would

money

then

something
like
that
Chinese, for example.
Of

the devastated

course

tries would have

powrir if they had
is

our

free,
the

bilateral

free,

OJ:

trade,

purchasing
gold; there

out

volves
but

not

laws, the National Bank could
establish branches outside

t": Such

gold

Arnold

said

plans to make the
one

tions.

Seattle

First

Clark

County

largest

its

opera¬

Coincident with the
acqui¬

sition of the bank

Horace

suggests,

Secretary Bevin understood what

Oregon, he said.
"Mr.

proposal

election of

was

Daniels, its President, to

saying,

was

that

there

known limit to the extent of the

requests
ernment

United

which

the

British

gov¬

is. willing to make of the

Stated

natural

settle

down

feature of

which

increased

of the existing

pie*

in¬

production

with

the

conse-

that iri time
all, including

really productive, may soon
hungry and unproductive.
Unprecedented Proposal by
Friendly Nation

Any
a

re¬

coun¬

tries?

not

our

favor

so on.

program

carving

the" devastated

must

charity

the

distributing

international

restoration

social

de¬

enterprise,

further, the people of such

as.

some

indirectly into

serves

markets,

hard work and
stop trying to live
off the
earnings of others doled

coun

money equal to gold in pur¬
chasing power unless it is con¬
vertible directly or

credit by

return to

obstructions

private

country

and

Under Federal and Ore¬

anchored
unless the

agreements

the

Still
a

fine its operations to the State
of

interest rates, and

the

our money

rate

competitive

stroy | the valued

con¬

matter

the abandonment of international

him to suggest that
Congress

pol¬

competitive

quence

An in¬

purchasing

long and

removal

Secretary think it appropriate for I

transferred pursuant to

With

currency can be

things such

open,

ated with the Portland

icy of the Portland bank to

gold at

country balances
budget and does other related

its

economic

institution,

and

government of

gold. But by what process of rea¬
soning
does
a
British
Foreign

bank, which has

investment

should follow

to take hold.

income

to gold at a fixed

the value of money,
deposits, and
other forms of credit in this coun¬

try.

recovery.
to be sta¬

value.

and

power

States

destruction

need

tend

sensible

Our Taxpayers' Sacrifices Wasted

that

economist

should

know

Socialism.is destructive—eco¬

nomically, socially, and individu¬
ally. It may be doubted, however,,
that any Socialist has
ever pro¬
posed

for

friendly

destructive
nation

course

than

that

suggested to the United States
by
Secretary Bevin on Sept. 3. '■*,
,•

Vice-Presidency in

and his

the

designation

new

Seattle First

Manager of

Vancouver branch."

The

taxpayers

States

help

have

the

sacrificed

Britain, but the

United

much

effort

ap¬

Lenin

was

have

subtler,

said
no

who

that

surer

supposed

"There

means

over¬

parently Iras been largely wasted

Norris &

Hirshberg Adds

(Special to The Financial

ATLANTA,
Weyman

has

Chronicle)

turning the existing basis of soci¬

ety

far

beneficial

England, under

GA. — George
F.
become associated
-

results

Socialist

gov¬

over, the reward of the

was

been blame rather than apprecia¬

previously

with

Hancock,

That

debauch
is

the

precisely

cur¬

what

ernment can be measured. More¬ Secretary

with Norris &
Hirshberg, Inc., C
& S. National Bank
Building. He

Blackstock & Co.

than

rency."

taxpayers

Bevin proposed that the
United States do to itself
"to in¬
.

this

tion

country

apparently

has

the part of Socialist Brit-

crease

the

purchasing

power

(the people of the^ devastated
tries of

currencies established pro¬

duction,

than

anchored

would

reserves

result

answer.

need

crease

against their
notes and deposits and the Treas¬
ury of. its gold assets against its
other
liabilities.
Such
a
step
would

services.

road

currencies
real

been controlled
by interests affili¬

was

the

bilized
their

deprive the Reserve banks

their

purchas¬

which

proper

countries

But

the

with

and

the

not

for

the

simpler, and much less

of course.

world

supply

low taxes

mean

increase

stabilized

the

need be

gold

power of

236,215,000 of deposits—a total of

The

officials said
the present staff of the
Vancouver
bank would be retained for
its
operation as the
Clark

small

"to

started

$18,-

that
between

gold could be distributed

our

Their

the

Portland, Oregon,

same

that

assumption

connection

Perhaps all that

Those

that

any

Needed

Sept.

and

be¬

Stabilization at Real Values

Reserve

notes

connection

gold

her.

that

certificates

Federal

dangerous, to give these countries
$21,765,000,000 of goods. But even

twice the gold stock of the United
Seattle, States.
officials of
i; Therefore, the Bevin proposal is
the Seattle-First National
Bank of
to the effect that
it would be
Seattle, and the United States Na¬
helpful to the devastated areas of
tional Bank of
It

Wash.,

for

buy

banks, the latter, on Sept. 3, had
outstanding
$24,622,738,000
o f
Federal

large

would be

helping to
offset in part other liabilities of
the Treasury.
Against
held
by

fantastic that

simply send the gold back to

asset item

the

was

for

United

•

this still would not be the
proper
The recipients would

this is really not free

even

caused

little but ♦'
speculate-as to what he
may have

in the general fund of the Treas¬

3, but

States

and

form of aid.

States and Treasury notes of 1890.
The so-called "free" gold, carried
ury, was

Secretary

people in devastated
countries," without disaster for us,

the

form

was

commentators could

ing

difference,
$1,230,885,000, is not "free" gold
at the disposal of
Congress, since
there are some specific
offsetting
liabilities

•

Fort

Knox gold"

gold

the

and

high taxation in her own
country
by failure to redistribute the

abroad

$20,-

Even

that

United

in Britain did not

Sept. 3, the Federal Re¬

banks

'handicapped herself

$42,858,953,000 which is

926." '""**

page

States
serve

argument
that
the

Bevin

for

already; has
Treasury
liabilities,
Against the $21,765,-

The

the two.

Treasury

claims,

proposal

monetary
aid Britain

countries!

there

Gold

States

our

credit structure to
other devastated

said, is

United

ingratitude,

supply and
high taxes.
The most
generous
type of surmise could produce no

has little so-called "free" gold at
its disposal. Most of the
gold held
in

destroy

:>asis

Amount

comes

reaching beyond
we

hought'

adequate.

Our

Now

ain.

tween

proposal or who
the Snyder com¬

regard

The

not

are

of just what is wrong

000,000 gold stock of the United

vacant
30

for

been

now

suggestion

against

elected Chairman of the board of
the Pacific National Bank of Seat¬

tle, Wash.,

has

that

was

Mr. Bevin himself has any inten¬
sion
of pressing the

Vice-President

columns July 24,

Caspar

neither

Paterson,

of the United States National Bank
of Portland, Ore., took
up his new
duties on Sept. 2. His election to
new

;hough

President of the Sec¬

National

his

open

National

North Platte, Neb., has
its capital from

in 1926. fice

associated with the

ment

Thompson said.

Exeter

supervisor of lorin develop¬

branch

capitalization of $200,surplus of $50,000 and re-

000,

say

gon

The bank anWhile the Union nounced that Raymond G. Schmidt,
Bank of Commerce was
chartered President of George T. Schmidt,
with trust powers in
1938 it did Inc*» has been ®lected to replace
not begin to offer
corporate trust Marshall Corns who headed the
services
until
last
year.
Mr. bank in its organization stages."
Stamper graduated from
Mr

been

„

new

could

Oregon.

Adam

elected Auditor.

was

been
appointed
Assistant
Trust Officer of the Union
Bank

of Commerce

The

attor¬

Properties,

Union

now

which

Sept. 3 that

1 Administrative Vice-President

"Mr.

....

"Chronicle"; of Sept. 5,
reports that Mir. Nardi has

The

Carl F. Kuehnle had resigned as
President and had been succeeded
by J. Ross Humphreys, former

of Aug. 29.

Oliver

real

Francisco

Lindstrom has been in the bank's National
Bank
service since 1944, while Mr. Hoi-'
Wash., has been

|
of

indicates

banking

The

McNelis, President

Cleveland

the

said on Aug. 26 in a
joint an¬
major operating departments. Mr. nouncement that the
Clark County

services the bank now offers
individuals and industry
complete

head

Minter entered the National City
in 1924, servmg in all its

mer

John

Bank

Savings and Trust

banking facilities.

Aug. 26 by Sidney
Congdon, President, according

broadening of
the

from

announced

In addition to its for-

commercial

Minter

Cashier
to
Assistant
Vice-President of the bank was

of directors of The
Savings Institution of
Paterson,
N.
J.,
announces
a
change in the bank's name and

Company.

Cal.,

department, is an¬
by President Dunlap C.
Clark, it is learned from the San

GleveJan^> Ohio, and C. R. Holton,

An¬

board

Paterson

Paul

dents of the National City Bank of

Paterson

The

and R. M. Lindstrom from Assist¬

untii

loan

bank

Promotion

charter to permit a
its services, under

ant Vice-Presidents to Vice-Presi¬

Bank

Cross for

Manager

Naugatuck

the

Valley Morris Plan
1932, and Chairman

General
iadU*

"He

paper added:

estate

glass

COmpa^Z«Tnc^hpW

Pj113, a®

J. Nardi

in western Canada.
He
named District Superintendent

1916

Of the Ansonia National Bank of
Ansonia, Conn., died on Aug. 28 at
the Lake Placid Club, Lake
Placid,
N.

the Austin
field engineer of

factory

George Clarke Bryant, President
V

joined

nounced

| natl0nally_i„k?®^

Assistant

the

tor, Guy T. Rockwell, stated ine
ltem said that Mr Bryant has

Trust

^earlatter on Sept. 4 an item appear
lng
«5nt i hv its Financial Edi
of Sept. 5 by its Fmancml Edi-

Boston,

election

George

occurred

Ohio,

of!

meeting

the

President of the Austin
Company as a director of the
Cleveland
Trust
Company
of
Cleveland,

directors

election

Oakland,

Bryant,

election

The

Vice-Presidents; also the appoint-

(Continued from first page)
"authoritative sources" in Britain

Vice-President of Central Bank of

Brom-

ment of Franklin A. McWilliam

Assistant Secretary.

The

erties, Inc.
«

Secretary Bevin's
Proposal

hrown

Trust. 1938 has been with Union Prop-

Bank

Sept.

2 assumed his new duties as Pres¬

Bankers

and

ETC.

Thursday, September
11,1947

Foster

years

Bank of Los Angeles, Cal. on

CONSOLIDATIONS

NEW OFFICERS,

CHRONICLE

Citizens National Trust & Savings

News About Banks
NEW BRANCHES

FINANCIAL

Europe."

coun¬
.

Volume 166

Number 4628

THE

COMMERCIAL

As We See It
(Continued from first page)

Marshall Plan," and the
thoughtful observer
begins to wonder if the campaign is not
beginning to
show results which
may presently prove about as farof

use

injurious

similar

tactics

already arrived when
taking place in the

Gap" (reminiscent of that powerful but

now

ping

nonsensical

slogan,

which, according to

popular ideas, will naturally be adopted and
given effect
so
soon as small-time
politicians can be placated and ap¬
peased.
Yet,
Plan"?

what
Echo

name

"What?"

answers

the

Some

months

certain

very

ago

vague

from

international

estimate

their

"requirements" from the United
send

something akin

covering the

area

Unofficial
authorities

are

found

their

European conferees know
the

the

effect

European countries find
ability to take

these

dispatches

warned

States

rather
not

are

care

that

they

are

that

they

same

can

the

—

where

European

notion

Plan"—i.e.
tool

to lend very

seem

among

inner

our

own

so-called economists!

Had the

must in its

own

defense continue

incredible scale to buy western Europe out
clutches of Soviet Russia and Communism.
It
to

(Continued from

the

Additional pacific
chinery it to be developed at
quences.

other

inter-American

hasten

ma¬
an¬

conference

Bogota next January.

that

the

Coun¬
will be

and the jurisdic¬
"region" will cease
but not until

—

Council

—

"the

has taken the
to maintain

measures

necessary

international peace and

security,"

required by its Charter.
I
"necessary" measures.

underscore

all

for these impoverished people to buy in this country in large quantities
provide

the wherewithal

that

hope

the

new

maximum
peace

empty

there

was

flowed

prophetic

reliable

from

because

free meeting

of free minds.
T

Summary
Let
lics

sum

it up.

The Repub¬
a id South

North, Central

America

have

upon

one

When

the

united

within

pledge

attack

hard

When

home

"region."

immediate

action—all for

and
and

one

all.

upon

comes

our

they

effective
for all.

one

originates outside our
"region," they pledge immediate
consultation looking toward united

solely

and

pledge.

exclusively

peace

At all times it recognizes
I

quote from

the

treaty—'

international

and

protection

and

recogni¬
human

freedoms,

and

the

in¬

the

peo¬

effectiveness
the

for

international

tack

made it plain
treaty thus throws

protections around the

and security of the

from

any

source

"region."

inter-American

other

inter-

whatever

outside the
words,

"region"

submit, my friends, that such
"regional arrangement'Vfaith-

fiilly reflecting the
cheerful,

this
the

purposes

aggression.

encouraging

news

world

cloudy,

which

and

toward

live.

the

and
war-

groping,

amid constant and multiple

alarms,

hopes by which

It is good for us.

for all

thus

mea

Is is good

for the world.

alien

the

offer

will

and

following

who,

pattern, would "divide

conquer."
is not

But that
ers

hospitality

aggressors

usual

all.

The fram-

this treaty were not

fied

and

co-operative

rest

against

content

satis¬

mutual

with

protection
attack

armed

our

"regional"

gates. They took the
view,
consistent
with
history and repeated ex¬

broader

perience,

have

originating insid$ or
>

thus

—is

circumstances

bitter
Maximum Protections

must

the

weary

that

aggression

far

"region"—even on
other continents
may potenti¬
beyond

our

—

ally threaten our own "regional"
peace.

They lifted their sights to

horizons

the

meant what they

evidence

times

action

the formula of the United Nations

beneficiary of special regional co¬
operation at all times and under

"region" is menaced by armed at¬

further

happy

the

considered

formality.

These two co-ordinated continents

the Security

course,

Security

appears

outside of Europe) have forbidden or
ume

conference

dispensable well-being of the

12)

page

American "region" if peace of the

parently

reduced

the shallow status of

rights

A Milestone

whenever

as some

ly,

Treaty

others

of these countries (as well

which

was

plan

Inter - American

tion

that these peoples can be so bought

some

tion from any source. There
no
cut and dried advance

ple,

reduced the vol¬
permissible imports from this country, is ap¬

fact that

debate.

developments

indefi¬
nitely with funds (or rather goods) which do not exceed
our
ability or willingness to give.
It appears further
to concede that unless such
goods are given in large
quantities, we shall presently find large numbers of
Mr. Roosevelt's favorite apple sellers on the streets
again.
The wails of anguish that now daily arise from
Europe about their lack of and need of dollars, and the
assume

general

semblance of dicta¬

democracy

immediately notified of all such

almost

was

realization of justice and security."

full, free and

There

tion

to become committed to it?

ask: "What is the 'Marshall Plan'?"

with it the assumption that the United States of

America

war

that "peace is founded on justice
and moral order and, consequent¬

really is and upon
what assumptions it rests before permitting themselves

cil of the United Nations

;

condone

occur.

—and

people of the United States not better wait

meaning of the "Marshall

Whatever it turns out ultimately to be, it appears
to carry

slightest supposi¬

acceptance of aid from this country carries any

political leaders else¬

country.

outside

peace

nor

and fast agreement that an attack

to find out what the "Marshall Plan"

idea which appears

instrument for getting many more billions from this

Again

Europe any sense of grati¬
sign of appreciation of our generosity.

considerable support to the original

the

and

Again: "What is the 'Marshall Plan'?"

conception of it which makes it primarily

Yet despite all this, it must be said

outgivings there and

our

it is important to make
it plain that all these agreements
were hammered out on the anvils

ently, for the insidious propaganda of Mr. Stalin and of

United

that, by and large, the steps taken in Washington and the
various

world

lack of

Current reports carry the
strong suggestion that the action—again, all for one, and one
cynical European is convinced simply that we must sup¬ for all.
In both instances, the pledge is
port him in substantial part or go broke.
So much,.appar¬

been

likely to sanction further aid to Europe
Europe.

any

that

It is also said in

We were

creation

I think

similar

tion

American

have

"region,"

hey

do to increase

Europeans

pointedly that the people

the scale of lend-lease
shipments
to die hard in

Neither does there
appear to be the

letting

crimes against humanity wherever

There is evident nowhere in
tude

interested in what

of themselves.

these

living
The apathy

MEANWHILE:

some

their

interest

pockets of French citizens and, in many cases,
only to remain
there) and whose leanings
appear to be toward Russia and
Russian communism in
any event.

necessity

that

means

that the

region" should imply

political responsibility of any kind.rr

own

that

atitudes and longitudes.

the British
economy were not faced with threatened death
and as if the British
people were not at this moment

then

not

was particuurging this idea

earnest

anxious

lethargy seems to pervade France whose
borrowed dollars have
already about disappeared (into the

Reports, but

reports

have

States, and

certificate

This is all-inclu¬

could

hat crimes against peace and
jus¬
cannot
be
confined
within

already undermanned, and already
only five days a week, have been suffering from
as
calmly announced and as calmly accepted as if

strikes

tice

British coal
mines,

worked

ill-will

"needs"

the

the United States

arly

MEANWHILE:

whole.

Unofficial

own

action.

There

eloquent and the

Many European leaders appeared to take
the Secretary's words to mean that the
nations of Europe
and

order

round.

fear.

assemble

ship¬

consumer

MEANWHILE:

hope that the Secretary
mind, partly at least, the need for far greater
effort on the part of
Europeans to help themselves, and,
in
particular, an amelioration of those production im¬

should

Europe

should be

thus illustrated

had in

stemmed

inviolability

the sovereignty or the

part upon international charity!
vigorous argument, but always
is said by reliable witnesses to
permeate among friends. The ultimate and
the British
people who from some accounts at least much manifest enthusiasm which greeted
the finished
prefer the beaches to the shops.
treaty is the morn

"Marshall

remarks about. international coordination
in Europe
and the need for it before the
United States could go
much further in the extension of aid.
Many observers
in this country were moved to

pediments which

told

in substantial

Heaven's

Secretary of State Marshall made

and

Europe while the politicians and
—

are

simply cannot obtain what he
wants and has the
capacity to pay for at any reasonable
price.
With some not overly important
exceptions, of
course, the current supply is simply not
great enough

"Inflationary Gap" of anything but sainted memory)
apparently referring to the alleged necessity of
pouring
further untold billions into

impoverished

American

the

others debate the "Marshall Plan"

keep our
economy on an even keel are soaring in
price. Export
demand added to domestic demand has
already resulted
in
skyrocketing prices and a condition in which the

"Marshall

the
or

complete comprehension.
I may
say, in passing, that the delegation,

The goods which

name

eyebrows.
It has, for all appearances, now become a
faux pas to begin any discussion of our
relationship, with
Europe, or for that matter, with any other part of the
globe,
without first
saluting the "Marshall Plan." Indeed the
There is

"if

integrity

sive.

ask: "What is the 'Marshall Plan'?"

MEANWHILE:

of the "Marshall Plan" is met in most
quarters with raised

matter has gone even further..

"too little and too late" have been

common

doubt

to be

seems

Again

Already Becoming Sacrosanct
about all this which

against all of them, and they pro¬
ceeded to spell it out. They said

storage and pressed into service.
"It is independence of any American
think," shout the apparently carefully schooled state should be affected by an ag¬
propagandists.
We must hasten along with the "Marshall gression," even though it not be
an armed
attack, or "by an intraPlan," and we must lose no time in
filling the "Marshall continental or extra-continental
Gap." Should we fail in either we could not
hope to stand conflict, or by any other fact or
erect before the bar of world
opinion, and we might as well situation that might endanger
the peace of America," they wilL
reconcile ourselves to that
collapse that Stalin appears to
consult immediately in respect tobe waiting for.

support of such things as
"social insurance," most of the
labor legislation of the
New Deal era, and much else
which was taken to the
statute books of the nation from
1933 onwards.

has

;(1025) ' 25.

that

slogans such

later than

Apparently, the time

CHRONICLE

shall be in grave
danger of suffocation in

taken out of cold

those which followed the

FINANCIAL

riches.

own

Old

term "the

reaching and

else

—or

our

damental

earth.

They

said in that fun¬

which

obligation

quoted—namely, that any armed
attack

shall

against
be

American state

considered

neighbors.

our

and

Yes;

It is good

good

the

for

United Nations. We give them new

strength. We give them a useful
and
impressive model how big
and little states can work together
a

basis of absolute equality of

both

obligation and power in the

pursuit of international peace and
security. We also make plain how
member nations, despite all ob¬
stacles,

can

persist in perpetuating
peace and security

international
and

justice among friendly, peace-

loving nations which think alike
about these precious aspirations
and who are determined to make
them live.

What

important.
tant

have put on paper

is the spiritual unity

thus makes common cause
swer

the

attack humankind.

But far more impor¬

dearest

which
in

prayers

an¬

k**

(1026)

THE

COMMERCIAL & FINANCIAL CHRONICLE
have been somewhat reduced this
fiscal year but it is
legitimate to
raise ths Question to wiiut extent

Exports and Our National Economy

(Continued from first page)
were hungry tor our
products and so it was thought
that
once
having
become
ac¬
quainted with American quality

will send

products,

turn, this

cept to
hat

Europe, all

the

markets

world would turn
for

their

That
But

with

the

rude,

the

was

rude

very

next
decline to
very

peak year.

year

saw

little

our

liquidated,

The

pay

for

of the 1920
figure. After a
short. revival which brought our
exports up to $5,240,000,000 in

will be

1929,

is,

our

exports

once

clined until in 1932
they reached
the low point of
$1,611,000,000, or
less than they had been
at

gone

decidedly

mag¬

abounded
how

methods

German

that

articles

been

exporters,

the

began to spend large

our

of money to establish

information

govern¬
sums

efficient

with

repre¬

every
important
center of the world. But

trading
all

service

could

stem

Arid

the

used

ment

sentatives

ex¬

adopting

had

tide.

these attempts proved
unable

stop the downward trend.
We had not yet learned
to rec¬
ognize the inescapable
fact that
exports are not unrelated to
basic
economic
situations, that they do
not occur in an
economic vacuum,
and that more
is required than
the mere
determination

part

goods

the

We heard

force

foreign

great

the

his

market.

deal about the
the short

Europe, about

age

seller

upon * the

needs of

food

and

manufactured
goods,
about
the
opportunities
open to American
business since
the German and
Austrian export¬
's

were

temporarily

market.

out

the

tle if

anything

difference

overlooked.

Lit¬

was said about the

between

customer

who

wants to buy and
one who
r able to
buy. The decline need
rot have caused
surprise if this

Mementary distinction
ealized.

sure

had

been

during and

ortly after the first world
e

were

able

sell

war

abroad

was

largely due to the fac.
vat we first
lent the
money with
hich customers
could pay for
eir

purchases.
Loans are not
iked for because
the foreign na"ms want our
money. They have
m
use
for it.
They borrow in
"der to be able
to buy the goods

M-ey

need.

The

money does not
country, the goods do.
matter of simple

1oave the
is

Ahat
r^r

arithmetic

exports

will

government

r-ts

are

7'ad

willing
been

increase when
private inter-

even

grant

^-v^orts from

the peak of

r'0,000 to
$16,000,000,000
f

32,000,000,000.

"What

loans.

Goes

with

ports.

But by the
rs

were

fxports

increasing

same

token

less willing
bound to

were

these
roods

open

even

our

ex-

soon

lend,

Must

value

Ttates

where their
American
market

them

find

the
sale

convincing

manding
worries

may

American

seem

economy.
rather

strange

This
con¬

tQ gell

can

and

fir^d

buy for

much

about

exports

lo^g

continue, then the
"what goes out must

ciple

back in" must be

and

Development
t

the

•

made
I11UUO

i
the United States u„°ni s?Pcf
has the largest
stake in that bank and

ap¬

raised

import

our

duties in 1921 just about the time

borrowers

our

were

getting ready
to pay us back and
when they
insisted we
raised
our
import
duties

again

the

this

lending

can

...

ports.
small

alongside

nual

exports

whom

being

credits,

our

were

buying

and

into

our

skidded

unable to
customers

the

protid

export

quit
trade

cellar.

sure we were

willing to take gold
in payment. The world still ad¬
hered to the curious notion that
gold somehow was
desirable, not
that we could use it
except in lim¬
ited quantities by the arts and
by
our dentists.
But it looks good to
see gold.
And so we received
and

buried

the

fear that someone

for

ground

might walk off

with it.
And

farmers to work overtime in
pro¬
ducing goods we could use to be
sent abroad
urn ever

and

larger quantities of gold

which

burying

receiving in
had

the

and

use

hills

Ken¬

tucky.
reached

insanity

such

are

our
in

twenties

we are

tives

are

nomic

now

repeating

had

never

heights.
of the 1920s

the

process

experience

aggravated

the

form.

lending. The objec¬
They are eco¬

sound.

economic
are

that

nancial

But

from

large

war

upon

about

that

coun¬

pour

huge

>ve ex¬

they will

aid
No

the

with

our

fi¬

stop the Russian ad¬

one

total

be spent for

that

will

this purpose.
I for
do not see the
possible limits
this program.

the

1914

level

$5,278,000,000.

though

this

increase
an excess

imports of nearly

$3,000,000,000,

times the total

nearly

three

The

Being

implication

clear.

were

not

this

was

000.

to less

than

This leaves

ports

imports have

our

aid

other

has

soned

countries.

also used to
this aid

And

different motive.

It is

rea

correctly
that
continued
1 prosperity in the
United States

the

large

The
aye

high prices and high taxes
leaving much for travel

not

to this latter

since the

group,

especially not

fares have

ocean

than doubled.

excess of

Again,

we are not

sufficient
the

get-

lending.

because

stop
shall

were

rapidly being exhausted.. As

The

the

problem

accounts

this

iri

unable to

their
opportunities
and
built
plants that coulcLat least in
part
supply them with the goods
they

prices continue to rise our
loans will be used
up that much
The loan

States.

import the prodthey
had
obtained
from
abroad during
peace time. So they
set
about to make the most of

grant more loans
loans already made

rapidly.

United

markets

ucts

our

some

made
Great Britain of
$3,750,000,000
has
already been almost completely spent. How much
longer
can we
continue to lend?
we

formerly

plants

imported.

were

built

Large

steel

Brazil

and

Australia, the textile, automobile
tires, electrical, and pharmaceutical

industries expanded - as by
magic and plants were built to
Produce products never before
government's capacity to lend
is Produced in these countries. The
well
nigh
inexhaustible.
But hi§h prices these countries were
There

be some Who hold
to the comfortable
notion that our
may

surely there
the

must

ability of

lein

the

year

our

come

end to

government
so-called

less

than

able to

Government
4
iM

pos-

rap-

the United

States rather

dissipate, them

upon con-

sumer goods obtainable
r

Europe,

pnP01ie Liauidate Loans'

n
Under the most f
cumstances ttie European

favorabie^

duce enough exportable
enable

them

loans and

same

pro-

goods to

liquidate

at the

comi-

tries will find it difficult to

their

time pro-

vide ^sufficient dollar accounts to
"

•v--—

enable

them

v».ww

continue

buying.

The loans are for reconstruction and are being used for; that
purpose
mainly.
Railroads,

bridges,

sewer

essential

systems, and other

rebuilding is

now

taking

place. All this is

a legitimate and
productive use of the funds,provided. But although such rebuild-

ing will contribute
welfare

the

tries, it will

to the general

borrowing

not in

of time provide

coun-

short period

adequate; vol?

of exportable goods. In the
a good railroad
production but it will do aid
so

ume

long
in

run

wijl

only indirectly.' And we are not
now interested in what will
jhappen in the far distant future but

what

will

purchasing

the

take

place

the

of the loans is

power
we

stop lending in

future

near

Reduction of Import Restrictions
There

course

can

obvious

though partial solution

for all this.

get all nations to agree

to reduce their

trade

will

lated

import restrictions,

and

once

again

stimu-

triangular, trade will
again begin to play the important
role

once

did.

And
in

international

called

Geneva

But it

was

finance

conference

bring

this

and is rather

about,
forlorn

hope.

The newly
industrialized
countries have no stomach for it

and

raw

bring about substantial reduc-

tions in their

contribute

nomie
that

capital for

in-

dustrial development and in
many
cases we
supplied not only the
fmnds but technical

assistance to

speed ^

Process.

on a program of

these
y

countries

eco-

strict foreign exchange
import controls. We in the

means

and

United States
to

imports that

directly to their

reconstruction.
Imports
be carefully selected • and

must

reduce

are

they.
ing the virtues

trade,
what

freer

supply

world

needed at this time was

increase in duties
not

willing

Congress decided that

our
was

import restrictions
In fact, while preach-

our

than

Britain provided

only for those

pay

amPle

import controls be-

the limited amopnt of fareign exchange they have at their
disposal must be carefully used to
cause

ma-

them Wlth

the

expenditures 1

demand for the

«ates and Great

national income.
Today our national income is far
greater than
m 1929 and
yet Federal expenditures today represent
not 4% but
almost 25% of our
national income.

need

than to

terials they exported to the
United

pros-

though

are
willing to make reduc¬
America, in Australia, in tions in
their import restrictions
India, and in South Africa, only if
others do likewise.
The
new
industries have developed.
European countries cannot afford
During the war these countries to

the

sell
other

industri-

still

British

Latin

accounts

And

time.

upon

cus-

country could then in part be met.
But such a desirable
development is not
likely to occur. In

support our exports
rate if and when

some

then

products
the

Our

trade.

triangular trade
building dollar

present

stop

called

are

bank

could

vol-

newly
are

idly dwindling dollar balances and
are using these while
they last to
buy the industrial equipment
they

could

total

developing in this country.
Through such

ting paid for our exports.
But
that is not the most
serious aspect
of the situation.
It also means that
the
borrowing countries are falling far short of
.being able to
American

world

liberated could then be
translated into raw materials for
which a growing need is

imports of about $9,or more than our total
exports during the boom

1920.

tomers

funds

ex-

over

year

besides

000,000,000,
gross

ume

the

these

countries

exhausted and

suddenly increase

their

$6,000,000,-

are

from

magic wand

being

represented

funds

experiencing

i
Increase Volume of World
Trade
The picture would be less
black
if as by a

Paid

paid
currently. Today the situation is
even
worse; with exports of
nearly

$15,000,000,000

the

imports of 1914.

Not

perity, 1929, Federal expenditures

our

and

was

are

Are

one

But

once

number of small
expense budgets
of school teachers and
other white
collar workers of moderate
means,

„

would dare to esti¬
amount

our.

was, it nevertheless left
of exports over

must

odf

and

try and

pect

imports

rose

$1,789,000,000

political.
Driven by
fear of Russia we
have declared
an

and

Repeating Errors
We

peak,

lines owned in the United
States,
expenditures : in prewar
days were sizable but the amount
spent abroad was less the result
of a few well
advertised and lavish spenders than of the

exports
unheard of
increased as well

Tourist

an-

increasing competition

approximately

In
1920
when
reached what was

build

Economic

present

merchant

ILUIIO

space

1920 looks

year
our

$15,000,000,000.

increased
the world

began to pre¬
sent the grotesque
picture of the
people of the United States pay¬
ing
their
manufacturers
and

for

The peak

countries abroad

inevitable has happened,
loans have resulted in ex-

The

J. A. J. 11

what

fantastic

purchases,

Ameri-

K/ y

aspect.

The

heights of the 1930 tariff. This
certainly was good business. We
accomplished
our
purpose:
we
were
not paid.
But being unable to
pay for
past

assumes

their

But these sources of indo not hold out much
promise. The world's merchant
fleet is
as yet far below that of
prewar
days fhe demand for cargo

private

„

that

session of substantial

below

through expenditures
Americans
tllllft
traveling

abroad.

investors have now purchased t*
i
bonds floated by this
bank, even
,

was

fall

come

As it

services

marine and

has

•

prin¬

scrupulously

•

fact

countries
may pay their bms abroad
through

Export-Import Bank. Recently

struction

wen

may

gince

further

alized

our

tured products
depends upon some
of the raw
materials they now se<;ure 011 credit in this
country. To
be sure some of these

the International Bank for
Recon-

come

plied.

the purchasing
poWer of

triangu-

Their problem will be
complicated by the

still

sub3tantial part
tbeir production of manufac-

q£
.

through such instrumentality

the

counts in this
country by

artificial

within

.import li-

course.

lar trade.

them through

and

But to the European
countries
means less
opportunities to
sell in these markets, and
less
opportunities to build dollar ac-

Our

$6>06o,o6o,o6o.

approximately

f^j.

directly

Thus far these loans have
been
provided largely by the United
States Government either

losses

the

through

through foreign

period of time
from tbe present $15000 000
000 to

^ £.

larger loa

industries
or

this

short

cust'omei£

and

this

reason

increase this.

then

and

They have already
chosen

censes.

our

$6 000,000,000,

mVen

reiatiVely

of the Marshall
plan, the
remains
that it will mean

loans,

good

robbed

diversity

exchange controls

they will suddenly

qilTmort'

fact

persons, they would have no dif¬
ficulty in understanding that if
exports are to be profitable and
are

end

made

are

these

import duties

CQuld Qnly do so
of

may be

one

the

suppose

not yet in sight.
Whatever the
virtue
Political
and
wonomic

de¬

and

program

tecting

^ in the United states.

there

economic

greater

fe.

place grad-

dollars

Ud tQ date th
thg amount

pendent upon exports to
pay fot
necessary
imports.
This means
that
will find
ways o£

E0W

coun-

customers will have to depend almost entirely upon their
capacity

from this

stable, prosperous and friend]y world. We shall not have peace

for

case

protection

no more

sources

more effU

the*

not take

available^™means

apart

this

ana

therefore of greater
stability be.
cause they will become
less

ually but comparatively suddenly,

untried

yet

PtaceJgiBe orders

us a

Suffered by the government or
by
private lenders. Were all these
activities carried out by the same

mate

reated

the

life

^ naUons which

loreign

production.
They see ia
the industrialization an
opportunity to build a national

necessary to
the purchasing

justment will

$300,000,000,000 in winning
a war.
It certainly would be bad
business to be unwilling to
spend
a fraction of that sum
if such ad-

manufacturers who see com¬
peting products enter the market

other

fending

nave

Sureiy

from

experienced

cient

orders

about

others;

the

find

power q£

mes-

economic

satisfied

vance.

the

tne

country in

secondary
objective, the main objective is
sound business policy.
We spent

Come

since they are
of funds made available
by

United

would
have
the dollar
accounts necs^ary for continued
purchases.
But this means
imports into the
TTnited States.
And imports are
regarded by
many as detrimental

But

quite
paid out

decline.

means was of
course to send

;

some

in a sou

al¬

sums
into
Txoorts could have been
Greece, Italy, and
sustained heaven knows
f
what other coun¬
nly if the countries
abroad had tries in
order to
'ound other
strengthen gov¬
means of
paying for ernments for which
f e
we have no
goods they needed.
The prin¬
admiration but from which
cipal

way

believe

The explanation is found in the
fact that the exporters are

$8,000,-?
or

Out

rehabilitatiorit

When

bank

world

u ^

until the entire job is done.
We
have undertaken a most
generous

our

American efficiency, had
very litt1+o

brace

tractor

profitable

are

Once

hiStrf.Snon^anftaHsmVn0d tonem^
c P

Back In"

Salesmanship, Again

■

there

petition
more

^rever

backyupon

businessmen

dream

return payment can be

generous

reckless in our lending,
could easily have
increased

his

the

exports

secure new

Must Have Customers
Able to Buy
But one important
matter was

almost,entirely

from

prosper-

and

ditional expenditure

It took most businessmen

azines

reason

that

made.

by surprise. They were of the
opinion that more intensive sell¬
ing was the answer. Export

plaining

good

American

live

though

any

Something had
wrong.

the

still

which

told

are

sage,

exported
holding the bag.

many

returned, either

Simple though this proposition

again de¬

time since 1905.

loans.

borrowed

one-

half

has

,\hl: M^etg'CmC
wholly absent trorn these

are

bought foreign bonds

chaos,

economic

Not that

tions

the American inves¬

tor who has

exports

than

ity.

the American Government
suffers
the loss, since the loan cannot be

awakening.
1920

attractive.

allowed to

are

11,1947

allow their newly
established in,
dustries to die because
of
com-

further reduction will be possible
continue to pour billions
billionsMnto the project of

npan
hoped for if p
European

peace is mdivisible

The alternative

the tractor is not

dream.

remain

hardly be the road

can

and other countries

re¬

surely is not

beautiful

had

cannot

foreigner is able
another tractor in

that

to economic ruin.

increasingly to

reason

tractor abroad

understanding

the

They would

send

the

soon

requirements.

was

some.

Thursday, September

produce
our

wool. We

enough wool to

domestic:

never

will. Australia

large

extent

upon

needs-

anj

depends to a

wool

exports

for

her foreign purchasing power,
Australia will not be able to make

Having started

reductions in her import controls

industrialization,

if she meets with
increased diffi¬

are

not

going to

culties

disposing of her wool

Number 4628

Volume 166

THE

COMMERCIAL

FINANCIAL

CHRONICLE

The Geneva Conference was declines, the purchasing power of problem is
an increase in the
price
a. noble effort but no real the farmers
drops and tnis decline paid for gold in the United States.1
solution of the world trade prob¬ is reflected in a decline in the
"his, so it is argued, would en¬
demand for manufactured
lem can result from it.
prod¬ able the countries abroad to buy

crop.

indeed

ucts.

•

The Impending Export Slump

This

that

means

once

The

farmers will begin to
increased government

ask for

stop

port.

lending tnere will be no way of

They have

accustomed

government

supporting; out export trade and sidies in one form or
very serious slump in exports manufacturers
will

will be inevitable.

A drop in

ex¬

/from . $15,000,000^000
around
$6*000,000,000 may

ports

not

serious matter if these fig¬

seem a

such

aid.

increased

receive

would

subsidies to meet their
With

are

compared with the total

industrial and agri¬
output. But such com¬
our

cultural

parisons are deceptive.
of

•value

The total,

productive

our

output

'includes many articles that

never

•enter into foreign trade.
More than

•

trated

upon

concen-'

relatively

of industries.

$9,000,000,000

small

decline

their

sales

effect them disastrously. We
ship abroad 23% of all our wheat.
30% of our tobacco, 21% of our
trucks and busses, 39% of our colton,
53%' of our freight cars,
may

and

'These

income

payments

comparatively

few

other

products will feel the brunt
decline in foreign sales.
Many factors have been at work
'to raise prices in this country. It
•is not possible to measure
exactly
;the
effect upon
our
domestic
prices1 of the purchases made by

result

individuals

pect

balanced

pros¬

with

of which no less than $9,4
.000,000,000 annually is created by
-pump priming on the part of the
a

year,

-American

Government, has played
.important /part in keeping

jan.

prices

high

and

increasing

;them.~ Our present prices cannot
;be maintained once this foreign
.demand drops off.

To be

sure

.first only the comparatively few
;selected export industries will be

immediately
jwill face

affected

but

this

reduction of foreign loans. Thus
downward spiral once it is
started will be accelerated.

metal

further

price

The

recession,

moderate,

starts

reduction

though

even

the

chances

import duties be¬

less.

come

The experience of 1921

and

1930

tors

yield readily to

shows that

increased
mestic

demand for

import duties

business

decrease

legisla¬

our

do¬

once

begins to face

demand

"evel

have

effect upon in*
production in this

its

for.

Should

administration

new

yield to this

pressure

would

make purchases from abroad still

difficult and would

see

our

exports decline still further. Thus
the

spiral

downward

well

may

start in earnest.

they

sudden decline which
-will result in shutdowns and un-!

Reserve

the American taxpayers.

reduce,

not

ket

needs

The domestic

lower

consumers

buy at least
An

part

mar

that

the

com¬

abroad.

sent

now

also

gold

cause

for
for

addi¬

countries.

for

the

would have

inflationary effect there, the

very situation which they have
tried desperately to control. The
only cure for the effect upon our

national

economy of
finances is twofold.

foreign

our

the first

place, foreign loans should be
tapered off gradually to soften
A gloomy picture. But the con¬
.employment. The domestic mar¬
the effect and to allow for grad¬
clusions
seem
inescapable.
We ual readjustment. Payment of in¬
ket cannot at once take the place
have built an economy on a
of the foreign
price terest and principal
demanded
demand, not at
a

From these industries the effect
'will snowball to involve other in¬

dustries;. The high fever

of prices

in part created by successive shots
•in the arm by our
lending policy

.will suddenly
tion will

always
full

farmers

our

effect

the

will

to feel

ones

dollar

rapidly

are

accounts

going

dwindle

for

ways of becoming self-sufficient.
•Expansion and intensification of

agriculture is at least
of

During

the

partial

an-:

shortages

war

manpower, almost total lack of

•fertilizer, the
tle

destruction

cat¬

herds, the decline in the num¬
poultry and hogs, -created

ber of
an

ever

•

serious food

short-i

It takes time to rehabilitate

age.

Cattle

herds and

build

the

fertility

of the soil. • But these
countries; have had; almost three
years in: which to
accomplish this

•and farm

'This

output is

the increase*

means a smaller demand

•the farm
*<*n

it.

productive

gradual

could stave off

of the abil¬

adjustment

disaster,

change is bound

sudden

have serious

consequences. •

products now
the .United States.

for

obtained
-

some

abroad will

time to

come

con¬

to be

desperate need of dollars.

the

loans are used up and their
exports fail to meet their impor

thev

will

resort to other
Thus far the liquidation

measures.

foreign-held American securi¬

ties has
an

proceeded slowly and in
orderly fashion. Private hold¬
have been reluctant to

ers

of them.
as

dispose

They looked upon them
against a possible

insurance

inflation at home and
investment

sounc

The recent action of the Nether

is typical o::
be expected to be the

government
other

countries.

The

present value of United States
curities

owned

tors

the

portion

the

created by their
in making

dollar

accounts

exports to be used

purchases in this

coun¬

by private inves

Netherlands

mated at about $561,000,000.

esti

The

Netherlands government

rate.

Thus

these

exports will be deter¬

our

mined by what we are
receive in payment.
This

not

does

willing to
that

mean

should enter upon a period of free
trade.
It does mean that a de¬
termined effort must be made, anc

crop

record

high of

000,000 /bushels.
present
a

sudden

cannot

drop

fail

prices, at

$2.45

bushel,

foreign

affect

seriously. It does
drop in

With

at around

1,435,-

the

sales

market

not take

large

the total demand for such

Products

bring

the

income

depend
tion.

farmers

this

will

the
always

upon

But

the effect will be

Raising Value of Gold

that

has

crease

volume of

forth

depress prices seriously

been

one way

suggested by some

to meet this difficult

world

Credit

district.

The

which

the

Adminis-

reason

There

associations

ous

are

for

numer¬

this

district

lend mostly to large live¬
Gen¬

stock ranchers and farmers.

erally they deal in large amounts
of

their

and

money

membership
relatively

instances

many
small.

anc

general in

trade.

large

nations

can

safely

large financial burden

adjustment
the

world

bold initiative

sequences.

associations

per¬

forming their jobs.

1
the year ended June 30, the
13
banks
for
cooperatives
ex¬
tended credit
totaling $531 million
In

to 1,271 cooperatives
lion

to 248

$155 mil¬

than the previous
year

cooperatives.

The banks for cooperatives have

developed staffs trained in

coop¬

erative operations. Their analysts
and fieldmen study a cooperative's
program to see whether it is built
around a sound

development of
cooperation for the community. In
this work, they endeavor to assist

As you know, the kind of serv¬
ices required of production credit
associations varies rather widely

the co-op in

throughout the country.

some

sound

small

has been

the

areas

loans

associations

rather

are

cial

improving its finan¬
The
revolving
plan, long recognized as
in financing cooperatives,

structure.

capital

adopted

many

asso¬

constituted to roll

the

United

banker

and

lender must take

suffer the con¬

The service the banks offer and

the

advice

reserves as quickly as the as¬
sociations with a few large bor¬
rowers
who obtain their money

they give is often as
the money they lend.
At the present time, they may be

for

However, the

able to assist cooperatives consid¬

service in'one instance is just as

erably by cautioning them in re¬
gard to future operations, princi¬
pally in regard to inventories.
Signs are becoming more and

longer periods.

important

it is in the other.

By the end of the present year,
hopeful that a considerable
number of the production credit

valuable

plentiful in manufacturing
processing businesses, that
output is catching up with de¬

associations will have repaid Gov¬
ernment capital to a point where

and

the

mand. Some cooperatives have al¬

the

capital of their associations
and are dependent upon the Gov¬

ready found they need to make
adjustments in some of their in¬

ernment

ventories. If these

members

almost

own

all

for a minority of their
By June 30 of this year.
74 of the associations had paid
government capital down to $25,-

capital.

000

ice

are

the

504

field

farmer.

headquarters

addition

the

850

other

rendered

either

and

service

part-time or

on a

offices,

maintain 650 full-time

now

offices

towns

set-back

1921

and

1938

which

widening their serv¬
by bringing it as close as pos¬

sible

adjustments are
put off cooperatives may run the
risk of having to sell slow moving
items at lower prices.
The

less.

PCA's

seasonal basis.

Farmer-ownership of the PCA's
being accomplished. But what
the

ownership of the pro¬

accompanied heavy inven¬
tory losses could occur again if
stocks become large and consumer
demand is insufficient to keep up
the demand. It is important at the
present time for any bus'ness to
watch

carefully the frequency of

turn-over.
The rate of

varies

turn-over, of course,

widely

with

the

kind

business, the location, and the vol¬
business

ume

done.

However,

credit

corporations?
No the difference between a satisfac¬
been taken toward tory rate and a slow one may
making these organizations any¬ mean the difference between a
thing but wholly-owned govern¬ successful business and an unsuc¬
ment corporations. This is one of cessful
one, whether it be owned
the problems to which we can well
by members of a cooperative or
be giving considerable thought.
other interests. Generally speak¬
duction

has

step

yet

the bigger the business the
frequent the turn-over.
If marketing cooperatives en¬
counter
a
falling market they
should not try to bolster prices
by trying to hold back stocks be¬
cause they may soon find
them¬
selves holding
large inventories
ing,

have

that

sold

lower

prices.
That's just what - the^r
competitors would thrive on. The!"

job

to
into

moves

flow.

even

see that the product
trade channels at in

Marketing and

proc¬

know are much better essing cooperatives should realize
expect them to
off than they were in this earlier their members
lower marketing costs rather than
period; yet some of the > lessons
learned then may well be heeded to remove the risks they ordi¬

general,

at this time.. In that

period, short- narily have to bear themselves.

Of course, purchasing coopera¬
expanded
greatly.
Later
it
caused
much distress. tives must maintain sufficient in¬
Farmers who owned land changed ventories at all times to give sat¬
their
short-term debts over to isfactory service to their patrons.
farm mortgages; those who didn't They cannot avoid the risks <f
some price decline. However, they
own land or who had bought land
in the boom and had a big mort¬ should reduce this risk to a mini¬

term

gage

the world money
a

for

hope

goods flowing back and

between

this

States
i

located

are

Farm

our

for the world lies in

the rate of liquida
the possibility is no-: support

upon

remote that

New York market will as

sizable

drop in prices.
When

becomes
effect

increase

ultimate

The

may

rapidly

cooperative
found

year

The PCA's, as I have said, made
the import
customers a much larger volume of loans
The example set by this country last year than previously.
The
will have a salutary effect upon larger number of borrowers, how¬
other countries.
Unless we take ever, does indicate that the in¬
the initiative, and boldly, they crease was not entirely in thb
of
loans.
The amount of
cannot contemplate reducing their size
import controls. Even under the short-term credit going to farm¬
most favorable circumstances the ers has increased with all lenders
channels of
trade and
finance making a larger volume of loans.
would have become choked as a Here I would like to give a word
result of the almost entirely one¬ of caution. In many respects, we
sided trade we have started with are in a period similar to that
our loans.
Trade continues to be after World War I. Farmers, in

once,

private

well take place more
as the need for dollars
more pressing. What the

the

this is obvious.

about

unduly,

tion

xation

back in and that the ultimate vol¬

The prices of these products are holdings will largely pass into the tinue for long to pipe its products
to the world through a'six-inch
extremely high today, another bands of the government.
A1
reason why the foreign customers
though even under these condi
pipeline and to receive in return
will reduce their
purchases in this tions. liquidation will take place the dribble that drips from a
country when it becomes at * all carefully so as not to depress the
one-inch pipeline.
Possible. The Department of Ag¬ New York market
liquida
forecast this year's wheat

seven

Berkeley

riculture

ions

We must realize the fundamental

ume

end

production credit associations op¬
erating entirely without govern¬
ment capital. Of these 12 associa-

fact that what goes out must come

has now
started a .campaign of exchanging
these holdings for domestic gov
and always will be a two-way
ernment bonds at the prevailing
proposition. No country can con
dollar

Private Capital
The

PCA's

Most important of all is a sys¬
tematic, gradual, but substantial
readjustment of our import tariff.

market.

what may
action
of

period of time so as to lighten the
burden upon the borrowing coun¬
tries and to leave to them a larger

especially in view oil opportunities

the strength of the American stock

lands

should be spread over a very long

try.

The countries

shrinking needs,

ther loans, unable to
export for
adequate
amounts,
and
seeing

swer.

sorb

power
abroad.
The
countries abroad, deprived of fur¬

their

and

excess

ity of the domestic market to ab¬

tinue for

Farm Prices

;purchasing

world

capacity far in

patient weak

our

probably be the first
the

reac¬

the

Effect

and the

pass

leave

•indeed.

Inescapable Conclusions

level far out of line with the rest

.present prices.

by these banks pro¬
security in the field of co¬
operative finance. They encourage

price

embarrassment

poorer
an

increased

tional

taxes

ices offered

vide

Operating

be in the hands and made for rather short periods. ciations through the work of the
that they may Obviously, it is more difficult for banks.

money will

modities

We must

increase, government

expenditures.

would

ing lower prices.

The gold reserve rate of

Federal

system is
now 48% against 25% as the min¬
imum requirement. The purchase
price comes out of the pockets of

with result¬

PCA's

coun¬

country. An increase in the gold
purchase price above the present

previous year.

in¬

country.

creased costs of

the

Will Tariff Be Reduced?

(Continued from page 7)
the year ended June
30, 1947, service, and
they have built up
lung up a new record in loan 'heir
reserves.
\
volume with a total of
$680 milIf we were to study the reasons
Ton which was nearly $120 milfor this improved condition we
ion more than the previous
year. might find that the banks for coi
"here
were
15,545 more loans operatives could
well be credited
made
in the year than in the
with a substantial part. The serv¬
n

in¬

imported raw materials
purchased at world prices

use

Once

High, but Vulnerable

upon

the

•

But it is obvious
that this demand of $15,000,000,000

borrowers.

the

$35 an ounce would en¬
reduced taxes grows dim.
The courage gold production and would
principal savings to be made in increase the flow of gold to this
Federal spending and those most country. We already have more
attractive politically will be in of this metal than we have any

budget

of any

our

crease

would

received

$117,285,000,000, then the

sell

But

still

by individuals decline to say the 1942 level
of

try

possible, but should

are

income

creasing dependence of this

remain at the record
high, a bal¬
anced budget and
moderate tax

the

able

domestic situation since it would

As long as the national

before, the for¬ reductions

ever

eign purchases are today
number

slightly reduced national income
though
substantially

reduced.

high prices.

;he United States or a devaluation
of the dollar would aggravate the

even

the present tax
level, high
it may be, cannot be

ures

with

they would
ie
the only ones to benefit.
A
ligher purchase price for gold in

falling .prices, the Federal budget

value of

States

answer.

the farmers receive

will bear the burden.

United

holdings they have. This,

lowever, does not seem to be the
It would benefit some
countries. Those that produce gold

sub¬

another. The

the

;he gold

become fully

now

sup¬

Farm Cash Income at All-Time

credit

often had to give up their
their collateral had
taken to repay the loan.

farms because
to be

Farmer

cooperation in purchas¬

ing farm supplies, marketing farm
products, and providing services,
has shown a substantial gain in
the
ness

past decade. Farmers' busi¬
cooperatives are on a sounder

basis;

they

are

providing

better

mum

see

constantly watching to

that inventories are no

marketing

often

eratives

necessary.

risks by "hedging
their necessary inven¬

their

reduce
some

and

larger

Bot i
purchasing coop¬
find it possible to

absolutely

than

tories.
Some

cooperatives also face

(Continued on page 28)

the

(1028)

THE

COMMERCIAL

FINANCIAL

CHRONICLE

Thursday, September 11,1947
V

with full

way

Farm Cash Income at All-Time

pendable

assurance

credit.

source

terms of

de¬
The

agricultural loans

farmers,

whether

they

extending

too

credit to the1 r members.

become
times

much I position,

This

can

particularly hazardous in

high

prices.

Only

cently, I have been told that

resev-

eral small

cooperatives have failed
because of inadequate credit control.

Marketing

cooperatives

and

must

purchasing

recognize

that

they aren't primarily in the business of
extending credit. Therefore, they should get as near to a
cash
'

bas

their

members

possible

finance

and

let

their

op-

erations through production credit

associations,

commercial banks,

which specialize in that field. Cooperatives that extend too much
credit
own

easily

may

dry

able to bring to
the system changes that are occurring that may bring about

of funds for
carrying
on their normal
operations.
The capital owned
by cooperatives in the 13 banks for

with $6,482,000 a year
ago.
Earned net worth of the 13
banks on that date was
$40,135,555
which was 17.7% of the
total
compares

expenses of the

percentage of the
While

smaller

gross

have made
progress in
coordination at the local level
still

many farmers might well ask this
question: Why can't I get all
my
credit at

office and make all

one"

there?

This is logical and if the
Farm Credit Administration is to function to the
best interests of
agriculture, its
various services should be
coordinated wherever
possible. Out of
991 national
farm loan association
offices and 504
production credit
association offices, we
have on
June 30, 243
locations where the
headquarters offices of both asso-

ciations

were
joint or adjacent, a
slight decrease over Dec.
31, 1946.
During these same six
months, the
locations where we
have a joint
secretary-treasurer for the na-

tional

farm

production

loan

association

credit

and

association

in-

creased

from 52 to 54. Wherever
action is practical
and feasible we should
make every effort

such

work

out

joint housmg or
joint representation:
And I need
hardly mention that representatives of each of our
services should
foe able to
discuss the credit services

the

represent,

you

chosen to take

wide

system.

have

you

part in

You

and

are

cooperatives

cooperative credit
various districts and thus
miliar not only with

in
be

your

ooooerative institution, the

Farm

Credit

Administration

charged with the
responsibility of
getting credit to farmers at cost,
As I have
are

ees.

already mentioned, we
onerating with fewer employ-

Expenses have been cut. Of
we cannot
eliminate employees and cut
expenses

course,
point

where

service

impaired,

Yet, while these material

tiors have been
made,
make more

tion.

reduc-

still

progress in this direcin
doing this we must

But

keep in mind a high
standard
service. to our

farmer-members

but at the lowest
possible cost.

Sometimes it is
said that what
our Farm
Credit System

needs is
to be let alone.
To those who feel
that way I
like to ask two
questions: Who is
going to let us alone?
Do we
really want to stop progress'ng? We need a
healthy competition to
keep us alert; otherwise we
might stop growing and

situations

[of

and problems involved will be helpful in
solving
the problems of your own district,

During this meeting
least

have at

three major subjects which

I think

shall wish

discuss:

(1) Coordination of the service
rendered by the FCA.
(2) Better service to farmers at
reduced costs,

(3)

Methods

whereby

farmer-ownership
the

users

Farm

of the

credit

can

greater
be had by

system,

credit

service

agriculture. It includes
longterm, short-term, and credit for
farmers' cooperatives. After

all it

is credit available to the
industry
agriculture and it should be
obtainable easily
of

the

eligible

every

farmer and farmers'

cooperative

country.

In other words,
should be available
locally,
To

the

assure

credit

availability

in
it

farmers and their busicooperatives the credit insti-

ness

tutions

and

associations

must

business

cooperatives than the
officials in
the district
offices or those of us
who are in the
You also

lenders

Central

are

nearer

the

to the other
In this

country.

Office.

benefits

the

have
t* •

■

1938, that this procedure is workand profitable for all
con¬

It safeguards
millions of
unorganized workers from

—i.

on
a
sound
basis; the
credit must be sound
and kept so
at all times.
Operations must be
efficient and economical. Farmers
must acquire

greater
ship in the various units.
I

think

who

feel

there

are

owner-

some

that

the

has

people
Credit

Farm

Administration

been

ex-

pensive operation in
consideration
of

its

accomplishments, primarily

because
the

the

benefits

units

have

all

had

varying amounts
of Government
capital without
charge, and the units have

statutory privileges
taxation.

feel that

,had
regard to

There

now

Worthy Accomplishments of
FCA
I disagree with
those points of

view. I think all the
Farm Credit
units have
demonstrated that they
are of
financial value to the farmers and
to the
economy of this

country;
way

that

use

any privileges
of capital,

counsel,

supervision, or taxation benefits
that have been
supplied have been
justified in terms of benefits to
the general public as well

the future

take

of itself.

care

Worker Entitled to Nest
I

power

—

think

much

the

insurance

wage

entitled

earner

get

for

corporation.

nest

the

ing less important

ing this period since the

that

has

gone

insurance

banks,

companies, and other
lines of business
to pay debts and

increase

erally unavailable.

The

production credit
associations under the

farming enterprises

business

basis. The banks for
cooperatives
have encouraged
farmers'

erative

their

associations to
own
business in

coop¬

carry
a

sensible

-1

from

by the

decreased 45%

earners

1945

and

1946.

lower-income

ing

these

our

population.

families

the

for

country in the

families

the

of the

savings in 1946.
I

have

presented

these f-gures

unfair for those who predicted in
June, 1946 that the lifting of price
controls would result in a lower¬

ing of prices

now

attempt to

force the American
people to be¬
lieve that labor unions

exclusively

are

responsible for price increases.

My second

purpose is to call atten¬
tion to those who work
that wage

increases
an

themselves

not

are

to their problem.

find workers

likened to the
to put

who

crudely, like

chases his

tail

and

dog

never

quite able to reach it.
I do not propose at this time
to
discuss the recent events in Con¬

which culminated in enact¬

gress
ment

the

Relations

Labor-Management

Act

1947.

The

nomic
o

prosperity as rem mechanics and
physics,
develops the facts necessary tc

search
It

sensible

management of factories
We know, and the

unions.

people^ who
that

use our facts know,

statistics, even though they
seem dull, often provide the

may

green-go-ahead
red

lutely necessary
lg

the law of the land.

are

The

Administration has
minister
has
to

it.

duty to ad¬
Administration

The

acted, quickly and sincerely

insure

trial

provided

through prompt administration

sion

the

discuss

Labor's

new

laws

now

the

The

ses¬

The long history of the
Depart¬
has proved that there
is

economy,

sources, to increase
improve

ment

by
established

purpose
and

the

working

well-said

was

which

Labor
was

develop

partment
out

that

prove

and

the

develop re¬
production, to
conditions.
It
the Congress
the

Depart¬

1913

foster,

the

that

And

its

new

qualify in

Labor

certain

Relations

The,

Na-

Board

President

has

consideration' of

stated

his

program

unify the related operations of
the U. S. Employment Service
and
tile
unemployment compensation
operations, designed to develop

closer

cooperation between those
important activities.
Under the

present

law,

the

Employment

Service next year will take
up
again the job of farm labor
placeso

necessary to aid
its great task.

agri-

These facts mean that the Department of Labor's job is as
big
it

ever

have

was—bigger, in fact, be-

cause
a

people

the

fact

that

the

We shall continue to advise and

velop information to aid them in

meeting their problems,
The

Department of Labor has
big job. It is to see that
interest in world prob}ems bg given its full significance,
another

labor>s

Qur international relations

are

greater

importance to American
workers than they ever have been
before.

The

pated in
an(j

our

unions have particiefforts as a people,

government, to achieve
cooperation,

international
The

Department of, Labor has
i1.1"5".1'

Put }ts facilities into the job of
providing a connecting link of in¬
formation and contact. American

l?bo^Th^s Jbt?rl brouglli ?,loser b

the .Umted Nations and its coop-

gating and specialized agencies.
The strong support of labor is be¬
hind > us
in 4this task,, ^because
labor
else

knows
that

bors'

this( country

responsible

are

welfare.

as* ahyone

well

for

neigh-

our

Economically and
_nH

politically, nationally
nationally, we must he
and we Pnusf act, to

infer¬

e(j
anvwhere

Pfople do not starve> anywhere,

that Pe°Ple
We

are

free

can conquer

problems

the compiicai; a

economics,

natu

politics and nationaii y,
facing the world, if we organize
to
cooperate,
and
n

resources,
now

now

Nation in which 60 million
have jobs.
,

the

of
De¬

consistently has carried
mandate

services

whqje

providing
help im¬

economy,-— the

well-being of eyery persom who
works for a
living.
u
,

I take this

ment

and

for

Labor,

sound

common

strong

Department

merely, for self-service. Labor nas
long recognized that the lndiviaual workman was helpless to improve
ers

his lot alone.

oul7wor.d

organized to promote the wei-

adequately

sense

staffed,

bringing together
of

the labor func¬
government.
By labor

functions,
I
mean
foster, promote

which

the welfare

the

the
and

wage

things
develop
earners,

improve their

working conditions,
opportunity fpr
profitable employment.
and advance their

The President has
to a strong

pledged himDepartment of

self

Labor,
my
to

and

propose

opportunity to( chal-r

broadened.
To

and

devote

energies and those of my staff
carrying out his proposal.
I

promote

well-being

wage-earners.

facts

economic

of Labor has
functions by the
Congress, to safeguard -the reempayment rights of veterans and
to receive financial and
organizational reports from unions which

tions

ment

free

abso-

counsel with unions and managements on their problems, to de-

Department

been given

call

program
and appro¬

enacted by the first
the 80th Congress.

the

or
are

and woman

man

The principles of
good govern-

propose

under

that

way.

culture

acted

signals

warning flags

ment,

en¬

vital

peace and

lationships

been

workers

activities, which is

our

changes in government activities
regulating labor-management re¬
that' have

oppressive child labor.
Our Department carries on the
function of research into our eco-

might be

will-o'-the-wisp,

for jobs,
We study

country.

millions

cases.

carry

working

these, last two

that the

amounts to .only $16 in a normal
workweek, and only $800 a year J

tional

years

cannot

sioners, to develop better working conditions through better ad-

It is

wage increases

country,

worker

and welfare where local legislation and local enforcement are of
paramount importance to every

pretty well demonstrated during
curing of

of the

organized

desire

answer

parts

normal

unions,
managements,
governments, and all who

operations

—

jobs for workers.

and

in order to demonstrate
two things.
First, that it is inaccurate and

fnrtc

and

in'

income

upper

bracket and who had 59%
income accounted for 93%

all

the

than

That fact becomes

30%

many

low-paid and unorganized industries,
and
prohibits
dangerous

startling when it is realized

that

and

Uv;
industries,

studies o£

our

ing standards in

prentice-training agreements. We
administer the Fair Labor StandAct which safeguards more

of the personal savings

that year.

for

nroviHp

provide facts,

ards

than one-third of the total
income.

only 4%

and

During

Nevertheless, they accounted

adequate protection.

ministration of present laws and
improvement of their own laws
develop standards of work, and regulations. This applies to
industrial safety
programs, ap- the great area of safety and health
and

earn¬

earned

hoon

the

State

ings of all employed members is
less than $3,000 a
year make up
1946

for

The Department of Labor will
on its work of advising
with the State authorities, especially the State labor commis-

work.

our

future, have been the hardest hit.

65%

has

society

who are
nest-egg for the

Families in which the total

low

too

We know from

support his family in decency and

a staff of several thoustrained public
servants, who
have specialized duties of assist-

families,
a

us to a point where
the
minimum wage level is

prewar

to Provide Facts

We have

wage

Furthermore,

brought

that

and

between

increases in prices of
the
end postwar years have
now

war

useful.

not force.

the

war

cially the Federal land banks and need in peace as well
as in war
the Federal
intermediate credit for government services which
banks, have loaned millions of help labor and
management, in a
dollars

start

of America have not
been able to keep abreast of the
cost of living. This is
proved by
the fact that savings

through subsidies priations

espe-

The Department's job from the

egg

future

The fact is that dur¬

Department

to banks, industrial
concerns, and
o^er lines of business,

Job

wage earners

less in dollar
amounts, than
the aid, in
taxpayers' money, that
has been given
are

lending units,

■

inadequate for decent

tects
higher-paid workers
sub-standard competition.

partment of Labor's job is becom¬

Egg

the law.

the

It bulwarks
purchasingand helps business. It
pro

The

agriculture: and that the costs of
these benefits to the
Government

All of

are

living.

fied its continued existence.
—

wages

which

economy which I

highlighted has fully justi-

wage

know

cerned.

able

to aid agriculture.

Pay Rises Are the Workers' Right

operated

guidance of the
corporations have
helped to teach farmers
how to
manage their own credit
sources,
and
how to handle
their
own

and his

All of these units, working to¬
gether, have served to stabilize
agricultural interest rates and the

cents.

our

tablished under the law
passed in

credit system with
of operation and the

responsible for the
policies of the
district
units.
You
are
closer
to
the

farmer-borrower

than

Credit system was
created by Con-

Certainly

experience with
the
present lower mmimiim
wage, es*

Farm

the .record

this

buying
power,
when
credit for such
purposes was gen-

are

the

least

from

financing
basis

before

raising the minimum

not,

times.

most in need of

vegetate.
You men who are
meeting here,
the boards
of directors of
the 12
Farm Credit

Districts,

get

gress

fa-

can

possible

was

elude

borrowed

unit

credit, adapted to their needs, in
depressions as well as in normal

own

units
Farm Credit and
to send persons
dinary commercial channels, the
in
getting loans to the 1 Farm Credit services
to agriculcorrect office.
I ture ought to be
curtailed.

Expenses Low

reasonable

the

interested

FCA

able

Credit

been

nation-

are
others who
while credit is relawithin 1 lively
easy to obtain through or-

other

been

Farm

making a
notable
contribution. By coming
(Continued from page 17)
together in meetings of this kind,
increased prices, but should in¬
lenge the comment of some of my
you are able to gain a
knowledge stead dip into their savings and
short-sighted friends that the De¬
of the problems of

earnings.

my repayment

As leaders in
your communities
and in the section of the
country

net

Operating

credit

our

them.

coopera-

tives totaled $8,811,200 on June
30,
1947, the, highest amount at any
time since their organization. This

banks continue to take

adapting

individual district but other FCA
their I districts. This nation-wide vision

source

worth.

for

need

are

you

have

C.C. have helped to round out the
Farm Credit system so that farmers-can be assured of dependable

(Continued from page 27)
of

from

Credit, the F.F.M.C. and the R.A.

High, but Vulnerable
danger

Farm

agencies

emergency

that

confident that the
Congress
will support
prudent measures to

those

who

take

may

with this last statement I say

History
tator

proves

movement

ceded

that
has

issue

every

this:
'die*

been

pre¬

by a movement to destroy
free trade unions. The first step
~

...

to elimination of a free democratic system is the elimination of
a

system

of free

trade

unionism

and free collective bargaining,
Dictators have taken this first
steP
destroy free trade unionism because they recognize in free
trade unions the real bulwark ot

democracy.

I am happy to have had this opportunity of joining the workers
of our country in observance of
HijrhAr
Labor Day. I know that each of
k
limum Wage 1*7
Workable
yOU j0jns with me in dedicating
One of the
major parts of the this day with the resolution in
President's program is to
expand his heart that together we will
the coverage of the Fair
Labor tread the path which will lead
standards
Act,
the
so-called the peoples of the world to
peace
Wage-Hour Act. This would in- and
prosperity.

develop a sufficient and
ent Department.

effici-

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4628

166

Volume

Not Being
Priced Out of Market

Houses Are

just ended.

The State oi Trade and
(Continued from

page

Industiy

rubber factories

rose as production was
scheduled at a lower level
(Continued from page 9)
than in previous weeks.
toy higher labor rates and de¬
Engineering construction in the week ended September 5
creased labor productivity.
From this analysis, it appears amounted to $122,766,000, a decrease of 10% from the level of the
that only slight and gradual re¬ preceding week, while private construction rose 7% to $90,272,000.
ductions in new housing costs can -.umber production declined about 1% to 202,778,000 from 205,099,000
joard feet. Lumber shipments for the week
be expected in. the foreseeable
were seriously hampered
jy the shortage of box cars and dropped almost 13% below
future. The stronger factors op¬
producerate to increase costs.
ion, while new orders rose 8% and were 3% below production.
The only factor existing today
The manufacture of furniture and
bedding continued at a high
which can operate to cause sub¬ evel with output rising slightly in the week, Woolen and worsted
stantial reduction in the price of mills maintained high production and reflected some
improvement in
bouses is propaganda encouraging clothing output.
In the shoe trade manufacturers had substantial
tear among buyers..
order backlogs although the number of hew
orders declined some¬

This is an artificial factor but

what during the week.

stop buyers from buying
and builders from building.
It can force a halt of the con¬

STEEL PRODUCTION DROPS SHARPLY ON RAIL STRIKE

struction industry.
This
can
only

Pittsburgh resulted in

can

precipitate

unauthorized

strike

ations the current week

the Carnegie-Illinois Steel

it is better to have rela¬

lieves

tively high priced housing with
full employment and higher earn¬

ings with which to buy it than
to have lower prices and even
lower earnings with which vet¬
erans and others will be unable

it.
Compared

to buy

with

other things,

the

price

and compared with

purchasing power, today's houses
do not cost too much.
In

fact

buy.

they

represent a good

■

They are better built than ever
before. They have better equip¬
ment—they have more pleasing
exteriors and surroundings—they

they have
they are
easier to maintain — they provide
more light and air —- they are in
better
planned
neighborhoods
with access to shopping and com¬
munity centers i— and they are
priced fairly.
are

better planned

—

better arranged rooms

—

That's why, if you need a
it's

good
today.

sense

Corporation

buy

house,
house

total of

current

steel

shortage

measured

may

become far

have
that

assurance

you

can

obtain
i

•

Florida Pwr. Preferred
•■■■■•

The*

First

Boston

Corp.

Grain markets

were

strong under the leadership of wheat and

Cash wheat averaged around 10
cents per bushel higher than
week ago, while the September contract reached a new record
high
for that delivery. The rise was attributed
largely to extensive Gov¬
ernment purchases of both wheat and "flour for
export
a

two

during the past
months, equal to about 94,000,000 bushels of wheat.

While interest in wheat broadened, trading in corn declined
prices trended easier after breaking all records for both
cash and futures in the preceding week. The decline reflected

and

liberal profit-taking and reports of more favorable weather
ditions over the corn belt* Domestic defaand for flour was

con¬

very

quiet with buyers holding to the sidelines except to fill actual
needs.

serious before real relief is

Most serious shortage involves flat-rolled steel products
by automobile makers and other manufacturers of consumer
goods with pipe runs a close second.
Automobile producers want more steel but the chances are that
they will not be successful in their insistent demand that they obtain
17.3% of total steel output which they got in 1929 rather than the
15% which they are now getting, the magazine states.
Steel executives will not yield the additional steel.which the
auto industry wants so desperately.
The existence of new con¬
sumers, which has assumed greater importance since 1929, will

used

force steel mills to deliver at about the

same

rate next year as

Foreign demand for cash lard

was only fair last week.
Domestic
quite active and prices moved over a fairlywide range closing slightly up from last week. Hog
prices were
slightly easier with market receipts about the same as in the previous

demand

for

lard

was

week.
In

comparatively light trading, cotton values continued to decline
The New York spot quotation closed at 33.51 cents per
pound, a drop of 62 points for the week. The current level repre¬

last Week.

a loss of 6.67 cents since August 16 when the
staple sold at
40.18 cents, and is 3.61 cents less than the comparative 1946 figure
of 37.12. One of the chief influences in the decline has been the

sents

they did during 1947.

increasingly unfavorable outlook for exports of cotton from this
The crop was reported making average progress in central
and eastern sections of the belt* Heavy rains> occurred in parts of
Texas and Oklahoma but damage to the new crop was said to be
relatively insignificant. Mill stocks of cotton as well as stocks in
despite the fact that every steel company is bending over backwards public storage as of July
31, 1947 were the smallest for that date
to see that automakers get their fair share of available finished steel
for many years, according to the Census Bureau.
products.
j
Activity in domestic wools in the Boston market picked up con¬
Wholly unlooked for by some steel officials has been the sub¬
siderably last week. Demand was good and some houses reported
stantial increase in demand for flat-rolled material from consum¬
having sold all offerings of fine wools of average staple or better.
ers who are now starting up operations at a high level after vaca¬

It is expected that with automobile companies actually setting
up their production schedules on the basis of far more steel than
they can possibly obtain, periodic shutdowns at manufacturing plants
will occur and the reason will be given as "a shortage of steel."
This
,

tion and inventory

Some products such as plates,

shutdowns.

market

shapes and structural are approaching a normal

con¬

The American

Iron and Steel

Institute announced

Monday

operating rate of steel companies having 94% of
the steel capacity of the industry will be 84.3% of capacity for the
of this week the

beginning Sept. 8, 1947, as compared with 92.4% one week ago
93.2% one month ago and 88.5% one year ago. This represents a
decrease of 8.1 points, or 9.1% from the preceeding week.
The week's operating rate is equivalent to 1,475,200 tons of stee
ingots

and

castings

compared

1,616,900

tons

week

one

ago,

1,630,900 tons one month ago, and 1,559,700 tons one year ago.

and

f,,'

•

Smith, Barney & Co; headed
ELECTRIC OUTPUT 12.8% AHEAD OF A YEAR AGO
group
of
investment
banking
The amount of electric energy distributed by the electric light
firms which offered to the public
and power industry for the week ended Sept. 6, 1947 was 4,720,659,Sept. 9 a new issue of 100,00(1
000 kwh., according to the Edison Electric Institute.
This compares
shares of Florida Power & Light
with 4,939,801,000 kwh. in the preceding week and was 12.8% in ex¬
Co. 4.50%
cumulative prefqrrec
cess of the 4,184,404,000 kwh. produced in the corresponding period
stock, $100 par value, at $100 per of last
year.

share and accrued dividends.

RAILROAD FREIGHT LOADINGS CONTINUE
WEEK AND YEAR

Net proceeds from the sale o::
the new preferred, estimated a

$9,710,000, will be used to pay of:!
at par promissory notes in the
amount of $4,750,000 and due Dec
31, 1947, to American Power &
Light Co., which owns all of the
company's common stock.
The
remainder of the proceeds will be
used to provide additional elec¬
trical
production,
transmission
and distribution facilities, as wel
as gas production and distribution

rise of 7 cents which lifted the

oats.

country.

Woolen

ADVANCE FOR

Loadings of revenue freight for the week ended?

Aug. 30, 1947,

totaled 925;732 cars, the Association of American Railroads announced.
This was an increase of 24,837 cars, or 2.8% above the preceding week.

This represented an increase of 17,292 cars, or

1.9% above the cor¬

responding week in 1946, and an increase of 65,390 cars, or
week in 1945.

Unless

unexpected

active

and

increased

interest

was

;
many

areas

encouraged con¬

buying last week with volume moderately above that of the
preceding week and slightly higher than that of the corresponding
Week a year ago.
Fall merchandising campaigns were generally
successful in stimulating buying. Back-to-school apparel and novelty
items were emphasized. Some consumer resistance to high prices
sumer

continued to be evident.
The demand for food continued
meats and fish sold well with large

to be substantial.

Canned

quantities of fresh fish and

poultry also in demand.
Some discrimination against highpriced fresh meats continued, resulting in a steady call for
cheeses and meat substitutes.
Extensive advertising and promotions

of Fall apparel were in¬
interest. .The demand for Fall
dresses, increased and coat and Suit volume was steady. Response
strumental
to

furs

buying

and

attracting

consumer

high-priced garments

of beach

considerable.

was

generally slow. Consumer
Day holiday was

and sportswear for the Labor

Promotions of men's wear increased with men's shoes

selling well.

7.6%

Bedding and household supplies continued to sell in large
some furniture items was

volume. Response to clearance sales of

good, and the demand for high quality dining
furniture remained substantial. The volume of

ABOUT 20 %

and bedroom
linoleum and

increased, and nationally advertised washing machines,
ranges and refrigerators were much-wanted items.
The supply
of plumbing and electrical goods also improved in some areas,
and general lines of hardware, building supplies and paints re¬
mained in good demand.
rugs

mark, according to Wards Automotive

Even on the basis of present daily schedules a five-day
week would bring the total above that level and it is expected
The securities are being offeree
that both General Motors and Ford output will continue to increase.
as part of a general plan of re¬
On the basis of a four-day week, output in the period just ended
financing under which the com¬ increased nearly 20%.
pany recently sold $10,000,000 0:
Output in the United States and Canada during the past week
1977 series bonds and $10,000,000
totaled 83,816 units, compared with a revised figure of 87,998
of debentures. In connection with
units for the previous week and 72,535 units in the comparable
this
plan, American Power &
period of last year, according to Ward's.
•
..
...
Light Co. has agreed to purchase
Last week's output comprised 79,146 vehicles made in this
100,000 additional shares of the
country and 4,670 in Canada. The U. S. total included 59,451 cars
company's
common
stock
for
and 19,695 trucks, while the Dominion figure showed 2,980 cars
$2,500,000 on or before Oct. 31
and 1,690 trucks.
_

COOLER WEATHER

Reports.

facilities.

also

The:advent of cooler weather hi

difficulties develop, production next week

should easily exceed the 100,000

were

RETAIL AND WHOLESALE TRADE STIMULATED BY

above the same

AUTOMOTIVE DAILY OUTPUT INCREASES
IN LATEST WEEK

wools

shown in territory wools. There was good demand for foreign wools
but business in such wools remained very slow due to a continued
lack of offerings of such types.

week

First Boston Offers

The daily wholesale
commodity price index, compiled by Dun &
Broadstreet, Inc., continued to move slightly upward last week, rising*
to a new post-war
high of 276.26 on September 2, comparing with
273.70 a week ago, and with 222.24 on the.
corresponding date a

urgent

effected.

what¬

"better buy" by waiting."

This resulted in

DAILY WHOLESALE COMMODITY PRICE INDEX TOUCHES
NEW POSTWAR PEAK

demand is expected to last several months at least,
Iron Age," national metalworking
steel trade.

group

September 2 figure to $6.71, or less than 1% under the all-time
peak of $6.77 recorded on March 4. The current index represents
a gain of 1.1%
over the $6.64 for the preceding week, and is 37.5%
above a year ago when the index
dropped sharply to $4.88 due to the
reimposition of ceiling prices on livestock and meat products.

customer
according to "The
weekly, in its current survey of the

trade

index, compiled by Dun & Bradstreet, Inc., moved upward

the past week.

district mills.
The

More than half of the commodities entering into the wholesale
:ood price

17,000 mill hands at the corporation's four Pittsburgh

dition.

You

soever

idle

the only industry

year ago.

economic
recession
in plants. The Union, Railroad and the
Carnegie-Illinois plants are
which labpr would be unemployed subsidiaries
of the United States Steel
Corporation. The wildcat
and the whole economy slowed
walkout of the rail employees, members of the Brotherhoods of
down badly.
Operating Railroad Workers, which began late last week, has made
The home building industry be¬
major

was

WHOLESALE FOOD PRICE INDEX NEARS ALL-TIME
PEAK LEVEL
(

1,800 Union Railroad employees at
sharp decline in scheduled steel mill oper¬

Manufacturing

in which failures increased this week.

(1029)

of the
although the

Wholesale volume rose moderately above the level
preceding week despite Labor Day market closing,
,

increase as compared with the corresponding
slight.

week

a year ago

was very

Department store sales on a country-wide basis, as

taken from

ended Aug. 30, 1947,
decreased 2% below the same period of last year. This compared
with a decrease of 5% (revised figure) in the preceding week. For
the four weeks'ended Aug, 30, 1947, sales decreased by 4% and for
the Federal Reserve Board's index for the week

the year

to date encreased by 8%,

trade here in New York last
week as department storei volume from estimates given, experi¬
SLIGHTLY IN HOLIDAY WEEK
enced a decline from the similar week of last year, which was
Upon completion of the financ
A small decline occurred in commercial and industrial failures
an active
sales period.
Price resistance too, was particularly
ing the company will have out
in the work week ended September 4 which was shortened by Labor
noticeable in foods, causing a decline in unit sales at retail.
standing a total funded debt of
$65,000,000; 100,000 of 4.50% cu¬ Day. Dun & Bradstreet, Inc., reports 60 concerns failing as compared
According to the Federal Reserve Board's index, department
mulative preferred, and 2,000,000 with 64 in the preceding week and 14 in the corresponding week of store sales in New York City for the weekly period to Aug, 30, 1947,
1946. Although failures this week were almost fouf timers as numerous
shares of common stock.(not,in
decreased 3% below the same period last year. This compared with
as a year ago, they were onl$* ione-thiird as high^ as in the
same a decrease of 1% in the preceding week, For the four weeks ended
eluding the 100,000 shares of ad
" .',
ditional common to be purchasec week of pre-war 1939.
Aug 30, 1947 sales declined 4% and for the year to date rose by 7%,
Both large and small failures fell'off a little in the week
by American).
1947.

BUSINESS FAILURES OFF

Softness characterized retail

(1030)

THE

couple of

coal.

ical

Says—

week

the

British

one

American

miner

does

miner.

This

enough tonnage for
mestic

even

them

was

loans

will

❖

get
do¬

[The

use.

article
lime

Chronicle.

They

led

against buy¬
ing, maintaining close stops,
popped up again. It was this
possibility that led to last
week's
general
column.
I

this
any

the market

wrote

was

available. But, naturally,
they will

presented

be subject to considerable
modification as time goes on.

going

Speeches by the Prime Minister
and
the Chancellor of the Ex¬
chequer in the House of Commons

specify indi¬
Looking at the

stay that during

the
of

sources

back

now

the

prices

about

are

174-176

support

range of last June. If they're
going to make any stand, this
is the place for them to do
it.
Obviously I don't know if
they will or won't. So I'll

The

easy to

Yet,

imaginary
rent"

Whyte

counts.

effort

this

they

have

main

45%.

not

always

for

used

total

get

out

not

steep

Everybody

has

li:

this

gested

country

Government.

blames

and

blame the British coal miners.
So far

much

can

see

the fault

deep rooted.

It's a question of the
entire
British
economy
and
not
whether the British are 25
small

Total

population.
pended on free markets.

countries

Pacific Coast
Exchanges

the

Dollar payments
ond half of 1946

against

Members
New York Stock

Exchange
Ctyrb Exchange
(Associate)

San Francisco
Stock

Exchange
Chicago Board 0} Trade

14 Wall Street

New York
5, N. Y.

COrtlandt 7-4150

Teletype NY 1-928

Private Wires to
8an Francisco

Monterey

—m

Principal Off ices

Santa Barbara
Oakland
—>

•—»

Fresno

Sacrament#

*■

163

Western

Hemi¬

472

during the
in

the

was

169

1,044

nished

these

Dr.

Dalton

fur¬

Australia

...

South Africa..-..

of 1947, an increase of some
230%. The total for the 12 months

Total

Sterling Area_L—

follows:

260
135

Many will be surprised at the
large amount of dollar payments
Canada

view

the

con¬

free
balance
of
that
Dominion's loan to Britain. As a
matter of
fact, almost one-third
of

the

British

ing

the

settled

trade

deficit

with

650

million

dur¬

month

period)

was

(about
12

currency rather
than drawn
against the Canadian
loan in order to alleviate
Canada's
shortage of U. S. dollars.

figures for the sterling
more
startling. The
dollar deficit
during the first-half
area are

1947

even

amounted

according

Attlee
gave
amount of 272
in

the

million

Dalton

the

even

(Mr.
larger

million). However,

second-half

sterling

205

Dr.

1946

the

produced an inflow
of 155 million to the
dollar pool.
This indicates a virtual
of

the

built
and

area

collapse

structure

which had been

up during the war to collect
distribute dollars within the

(800

count for

such

million

L_1

deficit—.,

205

only the "unwilling" members of

sterling bloc

India

and

Egypt drew on the dollar
poo
(they are included in the "rest"
caption) but the faithful Domin¬
.

ions

well. The British
has made much of
the
of

the

plexing

Treasury

voluntary

cooperation

continue
and

even

to forgive
voluntarily part of their
sterling claims but failed to re¬
veal the

large amounts they with¬

drew from the American
loan.
In

1946, the Bank of England
apparently, was still able to man¬
the dollar pool
tional manner
age

in the tradi¬

and

outflow of dollars in
balance

by keeping income

and, in addition, saving the
inflow
from Malaya for British
expen¬
ditures. But the system
did
not

work in 1947
any longer and the
Dominions tried to
participate in
the distribution of the
remaining
part of the American loan."""

There

sumption
countries
have

American loan was
placed
hands of foreign central

the

With

that

the

were

future

less. concerned
of

sterling

rather

with *tfte
acquisition
much needed dollars.
In

the
"

surprise
amount

fat

hardly any
after July 15 the

"transferable" sterling
by leaps and bounds

beyond expectation of the ex¬
perts. No reliable estimate
is avail¬
able ht>w
many
converted

were

sterling
in

fashion
re¬
was

sufficient to force
immediate

Businessmen

all

over

duce

all

and

increase

in¬

rather

their balances. They

along that Britain would

•bo finable

to maintain

bility

converti¬

for any length of
time arid
they made their decisions
accord¬

ingly.

the

end, they proved
right and the "experts"
wrong.

"Current" and ^Capital"
Transfers
How
2 The

term

accordance
article

was

19,

agreement
Fund.

possible

'Swlrreat"

with

the

section

the

was

that

fair

that

Commonwealth
including Canada might

received

dollars during

some

500 ^million

the fir&t„ semester

See

laid down
of the articles

ijv

the

British

Information Servicer "The
Significance
July

15—iSterling Convertibility
Relation to

and. its

detailed

World

discussion..
3

Post-mortem
1^47.

Trade for

and

financial

practical

not to

blown away
by hard facts.

of
the
statement5

;

Treasury
that

the

convertibility on the under¬
standing that it was to be restored
quickly as possible should be

considered with
ties.

As:

long

succeeded

view

reali¬

Britain' has not

consolidating
its
foreign
debts
on - a
long-term
basis, there is no practical possi¬
bility
to
restore
convertibility
without

inviting the same troubles
unavoidably to its repeal'

that led

after only a few weeks.

For, the

optimists:

„

"Sterling and July 15," monthly letter

of the

National City Bank of New

July, 1947

issue.

York,

'
.

"Transferability
review

the

New York,

'"After

July

19,

of Sterling", monthly
Federal, Reserve Bank of

August,. 1947 issue.
Jitly 15", London. "Economist",
«

1947,
^
the pessimists:

For

"Stabilization
Key

Britain's

Dollar-Sterling Rate-—

Recovery", Commercial
and Financial
"Chronicle", April 10, 1947,
Paul
Einzig's weekly columns in the
"Chronicle."
5 At

the

Press

1947.

V..

Conference

August

•

Dean Witter & Co. Adds
Brown in N. Y. Office
De^n,Witter &Co., members of
the

New

York

Stock

and

Curb

Exchanges and other leading

se¬

curity and commqdity exchanges,
announce

haS

that

become

firm

Samuel

associated

registered

tive in the New York

Brown

with

the

representa¬

City office,

Wall Street.

White, Noble Adds

Dollars, August 16,

Two

(Special to; The Financial Chronicle)

international Monetary

pamphlet issued by

the

defined

rule

(i)

the world

attractive

holders

than reduce
felt

notation

card.

Snyder's

27,

did not share the
official optimism
that
^convertibility would" make

sterlingi

con¬

United States agreed to
suspension

re¬

convertibility.

merely

-'Secretary

accounts

this

(in addition to those
officially
leased by the British). But it
peal of

there

been

when
of

there prevails any

difference

policies to
business opinion
rely too heavily upon
theoretical distinctions which
may
and

circumstances,

have

but

•

watch

seems

tary

wa£ Obvious that the
Bank of Eng¬
land
could
not
cope
with the

that

The experience made
during the
short-lived period of
sterling con¬
vertibility should remind those
responsible in
determining mone¬

per¬

should

truth

ac¬

count,

which

account

distinction
between
"transferable"
and
"blocked"
sterling in individual cases after
resumption of

and

instance

age-old

in price or
usefulness between the two.
After
all, there is no genuine distinction
between a blocked and a free

should

"blocked". Thus the fate

long

siderable

the

of the

another

the

rency
can
exist "half free and
half controlled." There
has always
been an almost
irresistible trend
from "blocked" to "free"
balances

un¬

variety of situations that would
develop all over the world and

re¬

the inter-war
period has provided
proof time and again that no
cur¬

convertibility?

disaster!

quickly forget what hap¬
pened only a short while
ago. Foi*

during the

Who

they
according to

out

people

dollars).3

another

problem.

make

willingness

Dominions

still

was

confirm

substantial portion of

unfortunately,

work

experiences.

This

individuals,

the

increased

The breakdown
shows that not
the

615

more on us.

calls

manpower

the

only

handle 10

can

million.

that

and

work of the

of 1947

England is trying to bor¬
its way out and
leaning

row

even

fifth of the

for

market

lems

apply.
inefficient that

the

June range must hold.
Last

doesn't

Mining is

Market back to June
support
area. If
rally is to come this

mechan¬

CHRONICLE

many

is needed.

improvements, the word

obsolete

==By WALTER WHYTE=

means

This industry is

far behind

Whyte

FINANCIAL

deficit of the period
foresee
looms as does
British counterpart. This which, according to Mr. Attlee, clearly
amounted to 1620

his

changed that. The coun¬
try has only one natural re¬
source,

Walter

times

industry

has

Markets

and competi¬ mechanization,

wars

tion from American

Tomorrow's

COMMERCIAL

GRAND RAPIDS, MICH.—Wil¬
liam F. Floyd .and, Hudson
Jr.

have

White,
been; added to the staff

White,
Noble
&
Company,
Michigan Trust. Building, mem¬
bers

change.

the
~

Detroit

Stock

Ex¬
j,

Number 4628

166

Volume

THE

COMMERCIAL
than

Meditations

Foreign Trade

they

Hence we

must see that all our

plans to break down trade bar¬
riers and to expand international

profit.
has

progress and

Smith

out, "Scientific

technological inven¬

will come to naught, tion which used to lend support
to a free trade
policy are now
definite education¬
the
most «powerful
of
al program into action, which will among
forces encouraging economic na¬
teach our people to think clearly
tionalism.
Standardization
of
and without emotional blocking,
about our foreign trade. For as processes and of output, develop¬
ment of intricate machine tools
long as we are a democracy, in
which can be operated by com¬
the long run,; the legislators in
Washington will have to listen to paratively unskilled labor after a
their constituents, even if the vot¬ brief period of training, wide dis¬
ers
think in the most muddled tribution of electrical power and
fashion. And that means the man the growth of technical education
in every branch of industry en¬
in the street as well as the stu¬
dent within the classroom must able new factories to be set up
learn about tariffs, tariff prefer¬ with equal prospects of success
almost anywhere throughout the
ences, quotas and embargoes, sub¬
sidies,
state
trading, exchange world."
In our post-war period manu¬
controls,
credit
international
cartels, and restrictive business facturers have realized that with
practices as well as a knowledge products made in this country, we
of many other fundamental eco¬ can produce substitutes to equal
until we gfit a

trade,

Foreign

its

proper

his¬
tory. Even in the period of Neo¬
lithic Barbarism, the Danubians
imported into central Germany
and the Rhineland the shells of a
Mediterraneans * mussel,
which

meaning, antedates recorded

amulets.
ited

ornaments

for

used

they

Trade was

and

always lim¬

by the factor of transporta¬

tion because the

carried

burden

over

goods had to be

humans
poor

beasts of

roads,

across

through mountain
passes.
Moats were frail and de¬
pendent upon 'muscle power at
the oars or rude sails. Hence the
deserts,

and

commodities

foreign

trade

which there was

necessity

sisted of articles of high
small bulk.

trade

such

con¬

value and

We find in this early

commodities

gold,

precious stones,
copper,
tin, iron, amber, spices, gums, in¬
cense, fine fabrics, dyes, camel's
hair,
ivory,
furs, '"alt,
honey,
ebony, dried fish a,A barley.
silver,

commodities

rival

formerly

imported in large quantities from
abroad. Nylon and synthetic rub¬
ber

two

are

illustrations

will

the

trend

years

to come as more and more
to our research labora¬

probably follow in

turn

tories
the

produce

resultant

are

aches.

though

goods,

economic

als in the former

tries

upheav¬

"exporting coun¬

going to give us head¬
the plans to help Ja¬

get on her feet, will it be
economically sound to have her
silk industry rebuilt, if in
the
pan

market

world

silk

must

meet

competitor? And what
will be donq..about the economy
of
Ceylon,
French Indo-China,
Malaya, and the Netherlands In¬
dies with their product of natural

nylon

as a

rubber

saw

whether

very

the

the cost
normal

Professor J. G.

ably pointed

commerce

nomic concepts.

out.

the work of the Italian and Low¬

though we were willing to pay
of production "plus a

commerce" as
were un-American.

national

took

FINANCIAL CHRONICLE

clearly
that
goods
and
trade
brought prosperity as he analyzed

(Continued from first page)

which

now

has

serious

land

Centuries

water

ex-President

nations.

knife

and

him.

save

But

kill

and

significance of
foreign trade when he said in a

your wife, burn
factory, and even de¬
stroy you, it would be perfectly
moral for you to either let him

trend of

drown

Herbert

Hoover

ognition

"The

showed

his

thought similar to Mun,
structure

vancing civilization would
ple and the great mass of
kind
the

would

trade

to cease.

crum¬

man¬

backward

travel

foreign

were

ad¬

our

the

world

make

arrangements to

protect yourself.
in

son

brain

are

this

that

There is
has

cells

many

Some

ple.

the

les¬

the

escaped

our

peo¬

countries

and

and commodities from

the

their

The people of the
with keen

United States

followed

and

interest

progress of the
Inter-American Conference which

high

the

hopes

has just ended.

sult attained
of deep

The splendid re¬
brings to us a sense

satisfaction.

that

crying aloud for credit, cash,

World trade has

the lives and liberty of so
millions
of
disillusioned
discouraged people.

many

We Can Submerge Individual

Aims

also

to "save"

have
taking demonstrated to the world that
pool into which all na¬ measures that will either hamper right-thinking men can submerge
tions pour goods and credit and or threaten to ruin part of our
their
individual
prejudices and
from which
they retake
goods foreign
trade.
It
certainly
is their individual aims in the ac¬

become

nature

countries,

are

this

hemisphere

common

credit.

and

sense

not

is vital mutual
ume

in its true

Trade

commercial

The vol¬

service.

of world trade

war;

depends

upon

prosperity.

In fact it grows from

prosperity.

Every nation loses by

the

another.

poverty

nation gains

Every

by the prosperity of

another."
much

about

world

which will be free of the fear of
war.

ahead
the

reach

can

the

that

where

civilization

look

stage
can

man

morrow

with¬

destruction on
the battlefield, his energies and

out

worry

productive capacities
the

channels

ities for

buyer.

has

can

world that is

into

commod¬
an

eager

this country
bill of goods that

Somehow

has been sold
it

time

statesmen
we

the

world and

mission
so

save

the

most generously

give of credit and goods to other
nations.
Every religious minded
individual will accept the thesis
that there is a moral obligation to

give charity and aid to the needy,

The U. S. Will

that

some

our

awoke to the fact

plain suckers

are

that

this

along

line.
tially

Marco

was

Polo, who
trader, went

essen¬
on

epoch making trip, the world
divided

was

complishment
will

that

into

areas.

looking

route
when

to
he

World.

"known"

the

And

for

riches

and

discovered

was

"un¬

Columbus

short
of

his

the
the

trade
East
New

But the world of today is

bring

agreement
to

great benefit

the world.

will

Rio

conference

The

When

known"

talk

about

in history
as
a
important
milestone in our progress toward
the outlawing of force in inter¬

Janeiro

down
tremendously
go

relations

national

lishment

the

the estab¬

and

rule

law

and

order.
In

hears

quarters today. one
expressions of disappoint¬
in
the
accomplishments

some

small, it has actually shrunk ment
we are now beginning to
thus far of the United Nations.
realize the true significance of the This must not deter us in our
airplane. It has changed the con¬ constant effort to build the or¬
cept of time-distance to miles- ganization that the world needs
distance. Any place in the world so badly.
is not more than 60 hours of time,
Furthermore,
we
must keep
flying, from any other place. We ever in mind that the United Na¬
are
tions was not intended to settle
living in
this new small
world, and in it we have to do a the problems arising immediately
lot of clear thinking about our out of the war, but to provide
foreign trade. Seems to me that the means for maintaining inter¬
the future belongs, to those who national peace after just settle¬
ments have been made.
can do the best thinking and put
The
United
Nations was not
the resultant plans into effect.
born fully developed by the sign¬
ing of its charter in San Fran¬

very

because

Help Hei Friends

cisco.
of

will

take

steadfastness

unremitting toil and
patience to achieve our

purpose,

infinite

line of syn¬
(Continued from page 10)
goal.
of which can
upon
international relations as mon problems with an assurance
perform functions which the nat¬
of agreement upon the ways and
governed by the same standards
The
ural product can not do.
of moral conduct by which indi¬ means of solving those problems.

competitor

and

confident that Brazil

pend

down your

rec¬

the

whole

man

knew he would later take

you

later,

saw

would

merchants.

individuals

drowning, you the United States will be faith¬
not hesitate to jump into ful to a great trust on which de¬

you

the

thetic rubbers, some

U. N. Permanent

United

Nations

not

It is a'perviduals are governed.
manent partnership — a partner¬
is that it is always wise to buy
In
short, the declarations of vincing proof of our friendship.
ship among the peoples of the
in
the
cheapest
market.
The Sept. 7 and July 4 demonstrate The mutual trust and confidence
Foreign Trade a Two-Sided
world for their common peace and
theory may be best understood j?y that we have the same concept of that exist between us manifested common well-being.
Affair
itself at an early date in the im¬
freedom and democracy.
the • words
of
Adam
The difficulties that we have
Essentially foreign trade is /a quoting
One of your great statesmen, mediate response of your govern¬
two-sided affair in its simplest Smith, "It is the maxim of every
encountered
in this early phase
ment to our need for air bases
prudent master of a family, never Ruy Barbosa, whose name has
in the life of the United Nations
aspect. If one country wants to
for
supplies
of
strategic
to attempt to make at home what left an imperishable memory, once and
sell
have not discouraged us. On the
to
another, that can only
it will cost him more to make said that the nations of the world materials.
take place in the long run, if the
contrary, they have increased our
When both our countries were
than buy. The tailor does not at¬ constituted a single society and
determination that it shall suc¬
second country can also sell its
tempt to make his own shoes, but that the principles which formed attacked, our people fought side ceed.
The United States is re¬
commodities. This, we often say,
buys them of the shoemaker. The the basis of stability and justice by side until victory was attained. solved to support the United Na¬
should be evident to even a baby,
The
bravery of your fighting tions with all
shoemaker does not attempt to within each state should be ap¬
the resources at
but; you still have the type of
to make his own clothes, but em¬ plied equally to nations.
He felt men, against an experienced and our command.
mentality with us that would like
The farmer at¬ that this was the only hope of resourceful enemy, cemented our
Brazil and
the United States
to see a high tariff wall around ploys a tailor.
tempts to make neither, the one maintaining civilized relations be¬ comradeship and gave us another have advanced side by side in
our
country, and a low tariff wall
reason
to feel a deep sense of
nor the
other, but employs these tween them.
developing progressive concepts
in the other country.
Benjamin
The idea was not new.
It was pride in our friendship.
different artificers.
All of them
of the democratic way of life. We
Franklin was annoyed at the in¬
I am here to say that we are not have
find it for their interest to em¬ part of Brazil's
inheritance, as
proved to ourselves that
ability of his compatriots to see
it is part of the inheritance of a people who forget our friends
policies founded firmly on bel-ef
this bit of reasoning and in a let¬ ploy their whole industry in a
when they are friends in need.
every other Christian nation. But
in the dignity of man and his
ter dated London, 7 July, 1767, he way in which they have some ad¬
The memory of those days of
vantage over their neighbors, and Ruy Barbosa's eloquence has made
possession of certain inalienable
wrote:
it a living principle of the for¬ struggle
and sacrifice
together rights inspire us to greater en¬
to purchase with a part of its
"Suppose a country, X, with
eign policy of Brazil.
His decla¬ will always be a sacred bond deavor and lead us to new heights
or what is
the same
three manufactures, as cloth,'silk, produce,
between us.
of achievement.
thing, with the price of part of it, ration that there can be no neu¬
iron, supply three other countries,
But
I shall leave Brazil with the
whatever else they have occasion trality between right and wrong
today
the problems
of
A, B, C, but is desirous of increas¬
for. What is prudence in the con¬ will remain forever part of the peace still lie ahead of us. They conviction that here flourishes a
ing the vent, and raising the
duct of every private family can moral tradition of your country. are more difficult than we could people dedicated to the firm ideals
price of cloth in favor of her own
They will re¬ upon which my countrymen and
In a recent exchange of corre¬ have anticipated.
scarce be folly in that of a great
clothiers. In order to do this, she
It is difficult
If a foreign country spondence with Pope Pius XII, I quire the closest collaboration be¬ I were nurtured.
forbids the importation of foreign kingdom.
can
supply us with a commod¬ said that I desired to do every¬ tween us. But I am confident that for me to tell you how deeply I
cloth from A. A, in return, for¬
than we ourselves thing in my power to support and we can solve them with mutual appreciate the wonderful recep¬
bids silks from X. Then the silk- ity cheaper
to contribute to a concert of all
goodwill and forbearance.
The tion I have been accorded in your
can make it, better buy it of them
workers complain of a decay of
with some part of the produce of the forces striving for a moral one essential is that we maintain country.
trade.
And X, to content them,
Because this Congress consists
world.
I believe in making that our common ideals and our com¬
our own industry, employed in a
forbids silks from B. B, in return,
statement I spoke the thought not mon principles of morality and of the chosen representatives of
forbids iron ware from X.
Then way in which we have some ad¬
In a recent Depart¬ only of my own country but of justice. With these to guide us we the people, and because you men,
the iron-workers complain of de¬ vantage."
can go forward together, and we
through
the operation
of the
ment of State publication in its Brazil as well.
cay. And X forbids the importa¬
commercial
policy
series
en¬
The United States has been for¬ shall not permit any minor differ¬ democratic process, are so closely
tion of iron from C. C, in return,
ences to divert us from the pur¬
identified with the people, I wish
forbids cloth from X. What is got titled," "Building a New World tunate in having Brazilian friends
Economy" the common sense of who have been wise counselors suit of our common objectives. to express my heartfelt thanks,
by all these prohibitions? Answer
We are in a period in which through you, to all the people of
Adam Smith was paraphrased.
when joint action was called for.
-r-All
four
find
their common
Brazil and the United States must
The name of Ambassador Joaquim
stock of the enjoyments and con¬
Fallacy of Isolationism
As I passed through your beau¬
Nabuco, who served in the spirit continue to cooperate with their
veniences of life diminished."
There is a feeling that interna¬
nations
of
the
Western tiful capital city on the day of
of your great Foreign Minister, sister
In its extreme form, we have tional trade deprives a country
Rio Branco, will always be asso¬ Hemisphere
in the development my arrival, the warm expressions
what may be called economic iso¬ of its wealth and that it would be
ciated with the maintenance of of a strong and concerted force of friendship on the faces of hun¬
a much better and richer place of
lationism or the desire for selfthe Monroe
Doctrine within its for the good of mankind. One of dreds of thousands of your people
sufficiency.
Before World War it kept the products at home for proper limitations. He is but one the great lessons we have learned deeply moved me and left with
its own people.
In one form or
me
an
impression I shall never
II, there was a
well
defined
of a long line of your distinguished in recent generations is that we
movement aimed at getting us to another this fallacy has plagued
countrymen
who have contrib¬ do not dwell alone.j Destruction, forget.
and
politicians for uted so
When the time comes for me
make or raise every product we economists
greatly to the understand¬ suffering and confusion in other
to depart I shall carry away in
imported from abroad. Economic centuries. Back in 1621, Thomas ing that exists between us.
parts of the world confront us
Mun wrote "A Discourse of Trade,
heart
strengthened confi¬
self-sufficiency is no pew phe¬
now as never before.
Our nations my
Through the years we have
England unto the
Eastnomenon
and
the
tendency to from
dence in the enduring friendship
learned
that
because
there is made great sacrifices throughout of our two countries and in the
which was in effect a
national exclusiveness is as old as Indies"
the war, but we have been spared
agreement between us upon the
goodness and generosity of the
human
nature.
We
could, of brief for the East India Company.
fundamental principles of justice the wanton destruction and dis¬
people of Brazil.
location suffered by many.
course, raise bananas and even He took the position the trade
and equity, we can face our comcoffee in this country, provided brought more money to England
•

The basis of international

trade

The recent

war

again gave con¬

temporary expedient.

32 ' (1032)

THE

COMMERCIAL

The So-Called Dollar
11

(Continued from
what they

page

can

determine

themselves

what

and

they need,
the United

group,
from
But determination of their

States.

wants and how they will use

gifts

our

loans is not enough. They
should also include in their state¬

what

these countries
(di¬
indirectly) propose to re¬
turn to us in exchange. Are they
going to give us goods and serv¬
ment
rect

ices

for

return

services,

goods

our

and

they going to give
exchange only some pretty
promises that they will be good
boys, may pay us some day, and

»*

(„

or are

these

inflated

prices,

ship to
America, and get back through an
arbitrary official exchange rate
only half or less of the real value
of

what

has

sold.

result

of these

arbitrary exchange rates,
foreign countries cannot export to
the

are

the

merely give

termine

before

dollars

sound

dollars that

the

and

lend

away -or

unsound basis.

should de¬

out

pass

products

our

farms, forests, mines, and factories
what
If

to receive in return.

are

leave this to the

future, ac¬
cepting in the
meantime
only
promises, the promises will be all
we shall ever get.
/ i
* Dollar

Shortage

The so-called dollar shortage is
delusion.
The real shortage is

deficiency in most foreign coun¬
of production, of faith
in
their own government and its cur¬
rency,* and a shortage of people
who are willing to sell an Amer¬
ican dollar for fifty cents. British
exchange regulations say the Brit¬
ish exporter must accept from his
government oi\ly one pound ster¬
ling for every four dollars worth
of products he sells in New York.
But the
market
place says his
pound is" worth only two dollars.
law

tells

French

the

for

his

francs

when

ex¬

120 francs

takes

250

a dollar's worth in
place. So—whenever
foreigner gets a dollar he keeps

the
a

dollar

buy

market

hides

it, directly

indirect¬
ly, and then he says "there's a
dollar shortage."
So long as for¬
eign governments force legitimate
businessmen

treat

dollars

our

though they were half dollars,
the so-called shortage will con¬

tinue

unless

—

undertake

supply every Englishman,* every
Frenchman, every Italian, Greek,
and

Chinese'with

valued dollars
never

the

of billions

so-called

shortage by passing out
ber

under¬

he wants.

the

cure

all

long

conditions remain

The

governments

dollar

present
The

are.

demand is insatiable.

seeking
our
aid, gifts, grants, and loans
have misused and mismanaged the
resources
they now have. Their
politicians hope to continue in
control of these countries

suading

to pour

our

Management

Monetary

war

has been

over

Yet

for

allotted

her

the

millions

purchase

the

coffee

tions in her
of

Central

handling of

dollars

(6) We
be

than

economic

Those who

want

rupt

foreign

been

operating

give

the

Brazilian

the

French

own

planta¬
Colonies

remained

un¬

services.

plausible,
26

incompetence of her colonial ad¬

ministration.

pose

shortage;
that

trial
or

her

nationalized

war.

all

indus¬

Government

tell

now

men

before the

labor

workmen

featherbed four
in jobs that one did

plants

five

-SheV claims

but

Extravagance

these

difficulties

countries,

these

the

governments

find themselves in arise

primarily

but

countries

picked and wasted because of the

This

stimulants

only

causes

lie

When
a

that
all

made the loan to Brit¬

ago

the

would

for two

The difficulties of our for¬
eign friends are not merely the
inescapable
aftermath
of
war.
They grow out of mismanagement
and incompetence in high places,
years.

bureaucratic interference with all

assured

were

enable

her

buy

raw

materials, machinery,
equipment needed to cover

and

all of her requirements for a five

period. But instead of utiliz¬
ing these dollars for the purposes
year

for

which

they

Britain- has

borrowed,

were

squandered

the

bulk

them on tobacco, fancy foods,
gasoline, unnecessary local im¬
provements, and consumer goods
which her people could have very
well done without, produced for

themselves,'

obtained

countries that do not

damage.
it

economic

All these

easier

and

countries

simply is not true.

can

use

the countries
upon

that seek

one

re¬

sources in

minerals, raw materials,
agricultural
commodities,
man¬
productive capacity, serv¬
ices, present or future, that can
be exchanged with us for what
they ask us to give them. Natu¬
rally, foreign governments would
power,

rather have

give them

furnish

raw

materials

for

processing

and

the

for

been

dishon¬

past.

That is much
than sending us

them

give

us.

■

from

require dol¬

their

national

face

the

results

folly and allow inter¬

own

exchange

goods

services at realistic market

and

rates.

labor.
as

But if

realistic

factories, farms,
they realize we

and

It is time we put a little realistic
thinking into our Foreign Aid
Program. How can we do this?

■

pay!

(whatever it is) in the baU'i
Why should we loan
foreigners of our substance and'
ance

at once?

then

them

pay

addition?

Let

coupons

three

them

covering

billions in '

give

ers'

credits

for

paid

transportation,

living expense, and other
which

travel¬

they

can

that have

pre¬

real

dollars

same

credit to

foreigner for his imports?
Give

Americans

Shares in

Foreign Industry

are

Besides
which

the

goods and services
foreign countries may?

all

well

give us in exchange for the
goods and services they require of

they can also offer us in ex¬
change for our goods and services
us,

value.
_

ver,

Government

the

hard-headed

are and we make this

exchange with

which

are

relatively useless,

could pile up tremendous stock
piles of tin, lead,

chromium, wolf¬

ram,

and

Recommendations

country

ment

the present or future
products of
their mines,

Minerals, particularly strategic
sources
available.
They find it minerals, are available in almost
easier to set ridiculously inade¬ endless
supply and can be stock¬
quate
official
exchange
rates, piled in this country in almost
which make exports
impossible, any amount. Besides gold and sil¬

than

the fin¬

ored

requisite, they will find things

pro!

pay their own people in their
own
currency and for which our tour¬
ists can reimburse our

bureaucrats, than it is to set

adequate tax system to bring
in the money and then limit ex¬
penditures to the income and re¬

own

interest

food,
coal, machinery, and equipment in
exchange for the same worthless
our

they

an.

Tourism furnishes another
large
potential
source
of
repayment;
Senator Brewster estimates
$3 bil¬
lion can be obtained in
this way,
Why not throw this potential

im¬

generosity has

our

use

ours to

fourth

that

Every

print
paper
money in huge quantities to pay
the extravangant
obligations of

Squandered Loan

year

war

find

much deeper.

ain

foreign factories,

can

sound

brief visits to

business affairs rather than from

Britain

goods

our

may

indicate

easier

dollar

they

uranium

manganese,

other

any

ores,

useful

minerals.
Minerals retain their value indefi¬
nitely and cost relatively little
to store for as
long time as neces¬
sary.

the

future

industries

our

production
dollars ere-1

ate.
a

They can do this by giving us
participating interest in the in¬

dividual

enterprises

help

establish.
It is much better for
all concerned if Americans
receive
a share of the stock
of a manufac¬

turing plant in Manchester
basis

same

receives

when

equipment and machin¬

our

goes into that

ery

for

the

the English investor
share of
that stock

plant than it is

American investor

tax¬

exchange. Instead of uti¬ We cannot change the inefficien¬
Timber, pulpwood, and other payer to receive indirectly in the
lizing her manufacturing abilities cies, the Utopianism, the monetary products of forest and
tropical ag¬ name of his government a piece
to modernize and develop her in¬ mismanagement, or the cheap pol¬ riculture
now
so
short
in
this of paper of doubtful value
speci¬
itics of foreign governments; but
dustrial
capacity, * she
has
ex¬
country are much needed for our fying the obligation of the British
ported to all the soft-money coun¬ we can refuse to go on paying for housing and industrial construc¬ labor
government to repay hint
tries of the world the machinery these policies with our own tax tion.
Moreover, the bringing into some specified amount of currency
and equipment she needs to pro¬ money.
As specialists in inter¬ production of the timber
at some future time.
resources
duce effectively in her own in¬ national trade, those of us in this of other countries
would
develop
dustrial plants.
those
Because Britain assemblage can do six things:
lars

has

bought

luxuries

sentials from

and

with

dollars and

has sold her industrial

and

machinery

equipment

(even

her

seed

stock) to countries who could not

her

pay

her

dollars,

dollars

and

her

lar

year

five

asks

After

nonessentials

reconstruction,

socialist

government
to release them from

what they agreed to do in the last
loan
agreement.
Mr.
Herbert

can

urge

our

starry-

eyed international check-writers
to stop giving away our
goods and
services in the form of
credits,

grants, lump-sum loans, and gifts,
except—and this is important—
in
exchange for the foreigners'
goods and services.

(2) We

power we lent her

years

Britain's
now

more,

lost

seven-eighths of the dol¬

purchasing

for

has

wants

now

some

squandering

she

(1)

nones¬

tance
of

can

the

point out the impor¬
American

continuing exports

manufactures

basing

our

program

and

exports

gifts

economy
of American

the

fallacy of

on a

temporary

and

lump-sum

loans that will later be repudiated
(3) We can insist that the offi¬
cially operated and inspired dis¬

countries, create markets for
machinery and equip¬

Improve Our Foreign Sales
Management

American
ment

used

cutting, transport¬
ing, and developing these foreign

resources, and it would create op¬
portunities for American' techni¬
cians and workers as
well as na¬

tionals of the countries concerned.

European
ucts

could

volume

manufactured
be

prod¬

imported in large
international markets
"

were

freed from the burdensome
and unrealistic official
exchange
rates that now make such

practically impossible.
ropean

imports
Many Eur

manufactured products

needed

greater

variety

are

than

Besides
exert

the

influence

citizens

trade

specialists,

thing

and

ourselves

we can

can

foreign

do some¬

improve the
effectiveness of our foreign sales
management.
Except in certain
lines where Americans have long
had specialized
foreign sales or¬
ganizations such as in automobiles
or

films,

the

other countries

doing

manufacturers

in many cases
effective foreign

are

a
more
sales job than we

are

too many of our
facturers are
cause

simply be¬
own manu¬

trying to run their
American mass production tech¬
foreign operations without a prac¬
niques
can
efficiently produce tical
knowledge of marketing con¬
on
our part shall be
them, and the smaller manufac¬
a
socialistic experiments,
extrava¬
ditions in the individual foreign
gift called "mutual aid"; and Mr.
turing units customary in
Europe markets of the world.
gance, ruinous exchange, regula¬
even
Bevin wants us to send them
can produce some
Every mar¬
remotely controlled by the
our
products more ket
tions set up in attempts to cover
has its own peculiarities, and'
gold in addition to all the other governments now seeking our fi¬ efficiently
or
more
artistically the only
up
the results of governmental
nancial help shall be terminated than our
way to
discover these
things so he can redistribute it.
large-scale specialized
extravagance, pampering of com¬
at once.
practical factors and keep up with
/
mass
production industries can.
Before
the
munistic
labor
leaders
for
war,
the
United
the
changes constantly occurring is to»
(4) Wherever long-term proj¬ What American
consumers
lose
sake of the votes
they control, Kingdom used to provide all her ects are to be
visit these markets and see what
developed in foreign by shipment of our
own coal needs and
food, coal, and the
undue multiplication
export enough countries
of jobs in
situation is on the ground. As
with our financial
coal in addition to
aid, other products to Europe could be
.government
pay for the we can
regulatory
bodies,
your Chairman has pointed out,
insist that American man¬ made
up
by European products I have
and political management of th& wheat she needed.. Now her gov¬
agement and supervision shall be received
just returned from a trip
in return
ernment
if European
is
so
obsessed
with
increasing
number
of
business
that covered by plane, train, and
proportional to the American fi¬ governments
would permit it.
'enterprises these socialistic gov¬ utcpian schemes for socialization nancial
automobile, 26 countries of Eu¬
contribution; and we can
and
Some
of

the

normal

duction and

processes

pro¬

exchange, theoretical

Morrison has

even

had the auda

city to suggest that the next

con¬

tribution

crimination

against American
manufactured products that now
characterizes every area that is

ernments

now

amount

operate

control.

free-spending and

giving on our part will correct the
general inefficiency, the political
favoritism and

chicanery, and the
maladministration
that
characterizes most European gov¬
general

ernments

today.

The British Government has
put
into
circulation
twice
as
much

before

money

French

Government

the

war,

eight

the

times

much, and other countries still

sion

nationalization to the exclu¬
of efficient production
that
.

tie-in the installments of
tribution to specific

our con¬

may

American manufacturers
object to such importations

rope,

Asia, and Africa.

Last year

every
country in thek Western
European manufactures in spite
Hemisphere was covered similarly
goals. It has of present
ahead to take care of
home and been proved over and
shortages and the obvi¬ In every one of those areas I found!
over again
ous
factory heating; and when they
advantage to American con¬ some
that political loans to
very inept American foreign
foreign gov¬ sumers. But if
have a storm
they have to shut ernments cannot
this is so, it is trade practices and methods.
be counted upon
down
better for us to recognize this
industrial production en¬
for repayment if we turn
po¬
Foreign trade under the com¬
over the
litical fact and pressure
tirely for some weeks—this two
now while
petitive conditions ahead is not
money or credits on a lump-sum wide
years
after a war that did not
shortages exist than to post¬ for
basis
amateurs.
A manufacturer
and
they handle matters pone the
injure the coal mines.
question of what we will must know the
Despite the without reference to
practical condi¬
American
critical

they cannot

even

get enough coal

projects and

specific

production

the

position which coal bears

the

present

British

would

rather

■rffl'fSWrr.

British

Labor

economy,

Government

pamper

commu¬

technical assistance or
supervision.
(5) We can see to it that the

foreign business policies of the in
dividual manufacturers

repre

accept to

later time.

It is wiser

to face

such facts

need of

foreign purchasing

now

while the
power

is' Obvious to everyone than it
is
to postpone
consideration of what

hav'

countries

ished goods can then be
returned
to
us
or
exchanged with some
other country for
something that
the third or even a

aid do not have any¬

our

countries

they wish

have

need

that

the

fallacious

that

the

foreign

ail

vide goods and services
for them
If it is
necessary, we can

away

governments
on

commodities

manpower to work in our

assumption

government

disease whose

rather

hard-earned dollars to bank¬

promises that have

Aided Nations Can Furnish Goods

our

these

reopi„A

shipped

goods or services
useful
they are forced t0
under!
stand that they must use
their

con¬

charity basis.

from overspending, extravagance,
and excessive interference by the

our

tribution to foreign reconstruction
shall

willing to
have

abroad.

addition to

manpower

11,194;

provide

insist that

can

billions of dollars might make the
symptoms look better temporarily,
conceal

are
we

products

foreign trade op¬

our

after

own

erations is terminated.

un¬
ma¬

govern¬

Africa

resources

not
cure
Europe's
sickness by
merely writing more checks. Our

one

The

industrial

provide her with

dollars.

per¬

indefinitely down the rat-holes of
their own incompetence. We can¬

give
European

chine unless

claims to

imports
until

busi-

characterizes

her

real¬
com¬

not

are

now

can

any num¬

they

France

build

amateurish

and

Naturally, there

porter he must accept

normal

that

and

while

tries

French

France.
able

all

with

procedure

ness

world

but

Delusion

terference

the

thing to exchange for

communists, and bureaucratic in¬

soundly based

approach to, the actual

coffee, to be paid for in dollars,

very

domestic economy on

istic

petitive market situation in each
important foreign market area in

ment

maintenance

sound export program

Shortage

Thursday, September

goods to pay for what we
export to them, and they can pay
for all their imports only with
us

enough dollars abroad to do this.
important factor Hence, the monetary mismanage¬
and develop¬
ment of France,
England, Greece,
ment of our national prosperity.
or China is
disguised as a "dollar
But we cannot build up either a
'Shortage."''. 'Vv"v >.• • *"' -\* • ;
in

sent are

production has not' nist-led coal miners' union for
increased, prices in each country the sake .of staying in power than
have increased in proportion to take
steps necessary to secure
this monetary inflation. It is im¬ maximum
production from British
possible for a foreign exporter to coal mines.
export anything to us if he must
The same governmental incom¬
buy English om French products petence, political pampering of

Exports of American manufac¬

tures

CHRONICLE

dollars.

will not go communistic?
1

FINANCIAL

Since

more.

for

tions in every
of

the

world

products.

one

of the markets

that

can

use

his

Either he should appro¬

priate enough money to enable his
export manager to travel person-

166 " Number: 4628

Volume

THE "COMMERCIAL" & FINANCIAL*
CHRONICLE

1947
Jo receive

ally to every market of the
and see for himself what is

^Ped our

on,

)dities,
r*s
nJ

under*.

interest
to pro,

them.
furnish
>rocessing

the fin,

.returner!
some

been rushed from

large

pay*

paid

ortation,
hey

can

tour*

ernment

:redit to.
orts?

ports

the

are

the

belief

downgrade' al¬

that

large

appropriations

would be made immediately. Con¬

they

giving

checks

any

the

tax

but

this

will

are

each of which carries within itself

offset

hardly

the

decline in British imports. Mean¬
while, the crisis in Europe affect¬

their constituents, but
likely to approve any ing other

money

Washington to

object

blank

number

and their trade
with the United States will be de¬
areas,

the assurance that Americans will

whole has

in and built

come

which there

are many new busi¬
using sheet steel. This situ¬
two seasons.
This has ation
may prove similar to that of
caused an exceedingly high level some
types of electric motors,
of activity in
primary markets, where delivery schedules have de¬
but about three-quarters of this
clined
from
a
2V* year to a 3
merely represents the transfer of months'
basis within the past five
wools from
producing countries to or six months. Even the non-fer¬
consuming countries. The scarcity rous metals trades seem to recog¬

its war-depleted stocks during

nesses

last

receive

individual

projects,

1930

Type

be localized

in two

three im¬

Depression

categories,
rather
than
being general. Record high prices
have been paid for print
cloths,

Not

Imminent

trend
in carry-over.
Moreover,
shortages of cotton goods seem tc

portant

pressed further.

att least as much as they

give.

sumption and prospective exports
as well as
reversing the downward

but

spot

cotton

prices

have

al¬

other specific amount. I say
It is very interesting to note ready declined
We have the largest internal
by 6 or 7 cents a
let's give them all of our resources
It should be plain that
debt in the world and one of the that the optimism of 30 to 60 days pound.
they want—up to the very limit heaviest
some the cloth market will experience
tax rates. Let us leave ago is being replaced in
of what they can show they can
quarters by a new wave of pessi¬ an important test when an attempt
our
charity for cases where char- mism. One
earn and pay for.
is

'
1

lty is required.

foreign reconstruction is
basis, we need not be

If our

r
travel*

ieir own

pened, however,, is that the" world above prewar
levels, in addition to

any

loan
and

naturally
more

avoid scaring Congress.
I don't think we ought to limit
them to 15 billions, 30 billions, or

the bal*
mce

arc.

requirements

Paris to urge them to reduce their
to 15 billions or less to

way,

Hions in

their

business

ready. Calling of an emergency
they session might temporarily stimu¬
how late speculative
psychology, in the

instead of
unfortunate they

have

immediate

people of

what

"needs"

Payment
se
$3 fail*

t
we

will

and

poor

Let

country

dial

to how much we ought to con¬
tribute to European reconstruc¬

didn't go over so well so they tried
billions. Now the papers tell
us
that frantic emissaries have

hl«g that
1

this

and

From

viewpoint, however, there is not
much ground for optimism. Ex¬

Europeans are struggling in terms of what they are going
gress, however, has refused to vote
to set up a budget of requirements to give us in tangible goods and such funds without
thorough dis¬ of fine wool has been a scarcity nize that
general shortages at cur¬
under the Marshall Plan. Osten¬ services, what, how, and when.
cussion.
Actual
appropriations of market supply at the tail end rent prices are a
thing of the past,
Let them submit their
sibly this is to be a budget of ab¬
require¬ that would influence foreign buy¬ of the season, and not a general
although special products are still
solute needs, but their practical ments on a project basis,
showing ing, therefore, are not likely until shortage in the hands of most in scarce supply.
problem is to determine how much project by project how and what some time in the first ^alf of next consumers.
In the field of building mate¬
of a hand-out they can get away they propose to exchange with us year.
There is no shortage of cotton.
Occupation
expenditures
rials, there has been in most cases
with from the American Congress. in return for our contribution. will be increased
sharply if Great This year's crop, at almost 12 mil¬
a
steady increase in production.
They tried 30 billions. c That Our much-maligned
Congressmen Britain withdraws from Germany, lion bales, will meet domestic con¬

for

her

self-respecting

these countries tell
can

tion; and

htJ

he should employ an or¬

tneir own

Away

with the poisonous
atmosphere of
supplication' and 'charity loans!
Let the

Debates are now about to begin

;es useful
to

going

ganization that specializes in for¬
eign sales management to do that
for him.

have

use

I suggest an
entirely different
basis for these
negotiations.

world

sound

concerned with whether the total
is 15 billion, or 30 billion.
The

Europe and Asia

category. We
,

longer afford
i_

c<r,

back to

older role of Yan-

our

paper

^ of ?c0J?01?*!v Advisers.
theory

„<->

the role of Uncle ^ap. Let

p ay

„

are

can no

larger the trade between us the
better, so long as it is trade and
not gifts disguised as loans.

of the prominent newscolumnists attributes this
not in that oessimism to the President's Coun-

The governments

that

is
jn

creases

last

the

steei

and

cost

The
m-

automobiles

could have been absorbed at cur-

kee trader.

rent
ers

operating rates: that produc¬
much;

in these fields admit as

made to pass on these highpriced goods in the form of fin¬

ished items to the
There

consumer.

apparent

shortage

of hides and leather.

Shoe stocks
have been increased steadily, re¬
sistance to high prices has gained,

production has declined somewhat,
but shoe prices are nevertheless

Lumber mill

high

rate

activity has been at
and the so-called

of
of
supply. Even the
and pulp markets seem to

shortage is more a question
transportation facilities than
actual
paper

lumber

have reached their peak.
Conclusions
The

big difference between con¬
ditions now and two yeais ago,
and

one

even

year .ago,

that

single element of demand
was
expanding at that time on
both a dollar and unit basis. At

every

the present time dollar measures
still make favorable reading in

in exports
downward.
But unit demand, which is the
basis of employment and income,
shows a different picture. We are
some

the

cases,

trend

although

already

at the point, I believe, where dol¬
they expected a setback scheduled for a further advance
lar measures will begin to follow
production which made it nec¬ in the fourth quarter.
This is
he downward trend of unit meas¬
essary to build ud reserves.. Fur¬
hardly a sound foundation on ures within the next 30 to 60 days.
thermore, it is believed that they which increased unit volume can
That will mean that the present
based current prices not so much be based.
recession in business activity has
on current operations as on the
There is a relative shortage of passed its first gradual and con¬
prospect of reduced operations
corn, at least in comparison with
fusing stage, and that readjust¬
later.
estimated requirements. The sharp ments will be more general and
This
policy, the theory goes, advance in prices, however, will much more disturbing.
may lead to a depression of the
reduce demand.
The short corn
In
relation
to
1929-1932, the
1929-1932 variety.
crop may also cause a more than coming readjustment will be of
This possibility, of course, can¬ seasonal increase in
slaughter and minor proportions.
In fact, it
not
be
completely
eliminated. in slaughter by-products such as
seems
impossible that wholesale
However, it seems to imply that hides and lard.
prices will drop as much within
steel
and
automobile producers
Canned foods provide another the next 12 months as they did in
and other businessmen will make
example of a market where excess 1920-1921.
Government supports
no price reductions as demand beu<j pnue icuutuuus as ucmrniu uesupplies still exist. There has been under agricultural prices alone
sins to fall off. Such a policy, if
some liquidation; but the anxiety
should be enough to prevent this.
followed generally, would throw
with which the trade has appealed
On the other hand, although the
the entire burden of readjustment
to the government to increase its price
correction will be more
0n
production. If prices shared
exports of canned goods is a good gradual, it will probably take
n0ne of the burden, then the de¬ indication that
supplies of many longer
before it is completed.
cline in output and employment
canned foods are more than ample What seems to be ahead is a re¬
would be very sharp.
at present price levels.
adjustment of values that may
j
wonder,
however,
whether
In the field of metals, shortages take two years to complete, and
this is a realistic appraisal.
It are also local rather than general. that will depend in the long run
seems to forget that businessmen
on
what the new Congress does
Even in the case of rolled steel
jn general have made record high
products, most consumers, with a about the Government program
but that
in

Business Slow-Up Ahead!
(Continued from page 15)
to 40%

level,

above the second quarter

that

and

unfilled

both

orders

will

stocks
be

anything else.

A decline of 5% in
expenditures for goods and serv-

and

ices

sub¬

stantially at the end of September
or

This

for

suggests

ing;

Fourth

two

Quarter

alternatives

for the fourth quarter:

equivalent, in fact, to:
in foreign buy¬
decline of 29% in govern¬

decline of 79%

Alternatives

by the United States' public

would

October.

ment

spending,

27%

(1) Either the recent rate of
distributors'
purchases
will
be
maintained, in which case busi¬

Foreign
,

price average will not show much
decline.
In that case, however,

that

retailers would be not only overcommitted but over-stocked at the
end of the year, and the outlook

Reports

for

the

and

first

half

year

would be very poor indeed.

the

drop

that actual

the most direct

case

would

Congress

abroad.

imnnrtnnf

much

likely to- me.
Cashing of terminal leave bonds
more

should provide some stimulus for
sales during September and Oc¬

tober, in addition

to which

that

£ 5? we**e

seems

made when

for

need

is only

Although of-

were

adjourned

wholesale markets is bound to de¬

Frankly, the second alternative

exoorts

indication of do-

ncial statements

velop.

fol-

was

export sales indicate
shipments in the letter

ing will be followed by a decline
in the fourth
quarter, in which
many

June

part of the year will decline even
further.

terioration

,—

—

lowed by another decline in July,

the third quarter increase in buy¬

pressure

all-time

May. Official figures show

This decline in

(2) The other alternative is that

some

Shrinking

reached

high

activity

decline

Market

Exports
,

wholesale

ness

in expenditures of business¬

men.

there
special

not

very

situation

business

activity

relation

outcome of

todomesUc

than

the calling or
special session.

the

vember,

showing in 1946. Reports

people believe that the problems

have

received

the

But

year.

pickup

it will be under
A great

emer-

conditions.

many

has

not

with

the

consider

there

gencv

political
problems of
the United States. They had hoped
that it would be possible to get
away from emergency actions; to

so far on September busi¬
ness, however, are not too encour¬
aging. There has been a pickup,
as there
always is at this season

been

line

of Europe, under present

conditions,

the

are

the

European

area

payments to veterans, and
the movement of many
important

whole; and to provide any further
aid on a sounder and less wasteful

appliances and home furnishings
items has slowed down. Resistance

basis.

cash

At the
same
time, there has
high prices has become more been a feeling in some sections ot
evident, which is not surprising Congress that a serious crisis in

view

the

advance

food

prices, and the beginning of rent
increases. Too many people seem
to have
forgotten that about 35%
of the nation's families
still have

$2,000 a year or less.
90% that have $5,000
less, are. not too
ated

costs.

Even
a

the

year

comfortably situ¬
today's living
matter of fact, real

view

get

costs

production

urope

could not be prevented in

any case, and

that additional large

expenditures should be put off until this had run its course.

Other-

wise, they believe that the money
would

wasted.

The fact that

new

emergency

than

the public

has

d™n d?f]f

come

sooner

\h°*\

^age rates- J* seems *9
tht
^ mere volume of new
chinery purchases indicates that
The latter course will be the one
to be followed. If it is, then substantial price reductions for finished products will be possible
during

the

These wl11 retlect n0
of

also

raw

material

two.

year

ni rpflGct not onlv a

level

J*ve c°nddions return. Or wl
do what they have alway
done in the past, make strenuous

com¬

a year ago will have
the advantage of an unfavorable

plant and

new

the

lower

costs,

but

higher level of efficiency
part

labor

both

and consider a

expected—although it can hardly

stop

creased

living costs, has been be¬

primary raw materials,

low

year ago

for

many

months

and unit volume has been declin¬

ing

for

some

time, according to

official estimates.
I

have

talking

spent

this

much

time

about the position of dis¬

tributors

because

market is far

the

domestic

important than j

ably well

any

informed

one reason-

about Euro-

There is no shortage of wool,

real shortage of
strengthen this last type of senti- fine wool. Total world stocks are
ment. The least that can be ex- enough to take care of one year's
pean

conditions—may

pected is that
sion

may

defer

emergency

discussion

ong-terni European
juiui

may

al^influence

tend

ses-

aid Riaii,
plan.

diU

its outcome.

support for farm prices.

Wall Street Is Misunderstood
(Continued from page 6)
to

the

insurance

banks,

etc.

These

but

companies,

articles would

also contain interesting

biographi¬

cal sketches of the leading invest¬
bankers.

ment

figures

While, in general,

avoided, some

would

attempt should be made to show

graphically the dollar amount of
the issues sold and the relatively
small dollar amount of securities
sold to the public which have
declined
substantially in value
since offering.

(a) The New York Society
Security Analysts.
(b) The Odd-lot
(c) The

(e) The Operation

<New

of the Securi¬
Commission.

ties Exchange

(g)

the

Stock Exchange.

(d) The * operation of the
York Curb Exchange.

(f)

brokers.

Self-Regulation

New York

The Commodity

Exchanges.'

Investment Trusts.

The

These

(4:) The Functions of the Com¬
mission Broker Should
be De¬

are

simply

few

sug¬

gestions of what might be done to
sell the public WALL STREET.

and not even a

consumption even without the
new clip wool, which is now mov-

It ing mvu the IAIWAm
into wv market in

xi 1 U15

era

the South-

Hemisphere. What has

scribed—These might include

and present efforts

few of the

after adjustments for in¬

surprise to

exceptions, are operating far

the Others could be developed. But
the part of the the point which should be em¬
brokers to give, not tips, but ac¬ phasized
is that the bankers,
management.
dealers and employees
curate statistical information on brokers,
Scarcities Rare
sound companies. The machanics too long have allowed politicians
It is true that all scarcities have of the brokerage transactions on and rabble rousers to use them as
the stock exchange, should be il¬ whipping boys. Even now it is
not been completely eliminated,
lustrated. As mentioned above the rumored that the Administration
It is also true that many scarcities stock exchange is making at¬ is planning an investigation into
have been exaggerated, particucertain activities of the financial
tempts to do this. These efforts
community. In short, it is believed
larly during the past few months,
should be increased. In some way
that
the bankers, brokers
and
I think it might be worthwhile to
it should be brought home to the dealers should, by concerted ac¬
on

income,

few

^y and see only
small part of this capital invest"?ei«
Twul

efforts

parisons with

for

machinery in the last few years.

speculate

expenditures

of stock tion, stand up and fight for their
failed during rights and reputations.

public that the number
exchange firms that
the

number
rela¬
small compared with the

depression,

and in

tively

both in

percentage, has been

number of banks

that failed.

Other activities
which

hap-[public include—

the

Firm Adds

(Special to Th* Financial

the

Chronicle)

I. —Geroge
Bishop, Jr., has been added to
staff of Merrill Lynch, Pierce, <:w

PROVIDENCE,
W:

of Wall Street

might be explained to

Merrill Lynch

Fenner &

Building.

Beane,

Industrial Trust

(1034)

THE

COMMERCIAL

Securities
•

A. B. C.

Vending Corp., New York (9/17-19)
165,134 shares ($1) par) common. Under¬
writer—Reynolds & Co., New York. Price by amend¬
ment, Proceeds—Of the total, 120,000 shares are being
sold by stockholders; 20,124 are
being issued to A. J.
Morris for services; 25,000 are being sold
by the com¬

filed

the

an aggregate
Net proceeds will be used to pay current
bank loans and for working capital.

Farm

Bureau

Mutual

Insurance

Casualty

common

ferred.

pre¬

ratio of

one

held.

common

will

received
up

company's office,
to noon Sept. 25.

•

ond

bids

were

offered

com¬

Bell Finance
Co., Red Bank, N. J. (9/15)
Sept. 3 (letter of notification)
$225,000 6% cumulative
deferred debentures.
bor¬

•

Co., Pittsburgh, Pa.
(letter of notification) 30,877
shares (no par)
capital stock.
To be offered to
shareholders at $5 a
share.
Underwriter—Pioneer Land
Co., Pittsburgh For
improvement of hotel properties.
A/r

Bur"Srt°"» fly,ng Service,

Inc., Robertson. Mo,
notification) 50,000 shares ($1
par)
cumulative, convertible preferred
and 50.006

March 24 (letter of

27^

cent

shares (10c par) common.
Price—$5 per unit, consisting
of one share of
each.
Underwriter—White and Co., St
Loins Mo.
For expansion of
operating facilities and for

working capital.

nolds

Hardwood' Lumber Co.,
Augusta, Ga
(letter* of notification) 3,000 shares ($1 par'
To be sold at market.
Underwriters—Rey
Co., New York; and Clement A. Evans & Co.
-

Augusta.

For de¬

—

Sachs

The shares

Great Eastern

Denver

sec¬

are

being sold by R. B..Pamplin
•

Mutual
,

Life-insurance Co.,
..."
.

The shares will be

officers of the company,

Conlon-Moore Corp.,
Chicago (10/1)
July 25 filed $800,000 10-year first
mortgage 4%% sink¬
ing fund bonds. Underwriters
Illinois Securities
Co.,
Joliet, 111., and Mullaney, Ross &
Co., Chicago. Price—
Par.
Proceeds—To pay off indebtedness and

Aug.

one

11 filed
Underwriter

—

the ratio of

pro¬

advertise

for

bids

Sept. 12, to be opened Sept. 23 at 20
Pine Street, New
York.

loans.

Continental Casualty Co.#
Chicago (9/18)
Aug. 15 filed 100,000 shares ($10
par) capital stock.

Co., both of Chicago.

($1

capital stock.
Offering y
$2 a share in
share for each two now held. Un¬
par)

one

new

■

Gum

Products, Inc., Boston (9/25)
Aug. 29 filed 175,000 shares class A ($5
par) 60 cent cu¬
stock; 273,500 shares ($1 par) com-

& Co., and William Blair

Offering—Shares are offered
stockholders of record Sept. 3 on
share for each five shares
held.
Un¬
subscribed shares will be
offered to the public.
Rights
expire Sept. 17.
Price—$40 per share.
Proceeds—For
its capital stock and

Grolier Society,
Inc., New York
April 2, 1947 (by amendment) 170,000 shares of $1 Par
common stock.
Underwriters—Riter & Co. and Hemphill,
Noyes & Co. Offering—Underwriters will
purchase from
the company 70,000 shares and
from Fred P. Murphy
and J. C. Graham,
Jr., 100,000 shares of issued and out¬
standing common.
Proceeds—For reduction of bank

determined

expects

subscribed shares will be offered
publicily at $2 a share.
The underwriters will receive
a commission
of .25 cents
a share.
Proceeds—For business expansion and to reduc
short term indebtedness. =•■*'■•

Registration statement effective

Bids—Company

249,972

Co., Los Angeles

Fewel & Co., Los
Angeles.
Shares will be offered to
stockholders at

by competitive bid¬
ding. Probable bidders include: Morgan
Stanley & Co;
Halsey, Stuart & Co. Inc.; White, Weld &
Co.; W. C.
Langley & Co.
Proceeds—To finance expansion

gram.

cash and

Consumers Power Co.,
Jackson, Mich. (9/23)
Aug. 22 filed $25,000,000 30-year first
mortgage bonds.

Underwriting—To

for

Great Western Biscuit

to finance

August 29.

sold

—

for

mulative convertible

subscription to

basis of

one

new

surplus accounts.
Continental Potash
Co., Kansas City,
Sept. 4 (letter of
notification) 31,250 shares

l
\

^Vv'
<

•

-v

The

common.

FIRST BOSTON
Boston

potash.

^
New York
Chicago and other

Price—$4.20

construct

plant

New

share.

Mexico

underwriting.

for

Mo.

($1

par)
To

manufacture

Co.,

Inc.,

Underwriter

—

iiiill

G. Becker &

Chicago.
Price by amendment.
Proceeds—
are
being sold by six stockholders who will

Business—Manufacture
parts.

dcJ

Me*

BROKERS

high-speed

Bnd

DEALERS

The shares

receive proceeds.
diesel engines and

foot*

York

•
Cummins Engine
Co., Inc., Columbus, Ind.
Sept. 8 filed 21,678 shares
($100 par) 4^% cumulative

first series preferred.

Pittsburgh
cities

Of the total 13,250 shares will
32,000 will be issued in exchange
for 32,000 shares of capital stock
of Western Agency Co¬
in order to acquire all of the
latter's assets.

the basis of

CORPORATION

Sept. 2 (letter of notification)
45,250 shares ($1 par)
capital stock.
Price—$2 a share.
To be sold throug"

Co.,

common

Underwriters—Glore, Forgan

Corporate and Public
Financing

Georgia

common.

stock

share.

($100 par) cumulative

Inc.#

(letter of notification) $000 scares ($50 par'
Price—$50 a share.
No. underwriting. 'T
equip and stock a department store in
Arlington,9

Inc., New York

Underwriters—Goldman,

expansion of business.

Bellefield

Sept. 44

Sept. 3

Sept.

capital.

Price—$100. Underwriters—None.
exchange short-term indebtedness, reduce cost of

• —

Cooperative of Virginia,

of record on Sept. 24
share of preferred for each six shares
he^d. Unsubscribed shares will be offered
publicly.
Price by amendment.
Proceeds—To redeem
outstanding notes and for working
on

rejected.

rowed money,
expansion of operation.

preferred.

Filene

secretary of the company.

Peabody & Co.,

•

Co., Spokane, Wash.

Lehman Brothers.
Offering
offered to common stockholders

Price—$20.07Vz

year but

Sept. 4 filed 112,974 shares

1,150,000

share flat (ex-dividend).

Cluett,

and

of Atlantic City. The
shares remain¬
ing after the public offering will be
distributed as div¬
idends on American's common
stock.

petitively earlier this

per

working capital.

.common.

Ciro Twins

Underwriter—Lavigne

Arlington, Va.
-

Price based on market
price. Pro¬
investment.
Business—Investment business.

velopment of property.

Union

per

to add to

shares of the Fund.

Mining Co.# Orogrande, Idaho
Sept. 4 (letter of notification)
$100,000 of class A
and $200,000 of class B
stock.
Price—25 cents

.....

Fund, Inc., Cincinnati, Ohio
Sept. 4 filed 99,050 shares ($1 par)
capital stock.: Un¬
derwriter—Cartwright & Co. is general distributor for

for the account

Products# Inc. (9 29-10 3)
Aug. 1 (letter of notification) 109,000 shares ($1 par)
class A common.
Price—$3 a share. Underwriter—Bat
kin, Jacobs & Co., New York. To purchase new machine
and equipment, to
pay off some current liabilities an

Cineinnati

ceeds—For

Thomas R. Heyward, Jr

common

Florida Rami

a share.

9
-

($1 par)

behalf

common on

working capital.
9

account

of the
company, and 15,000 shares ($1
par) commori on behalf of officers and stockholders. The
80,000 shares will be sold at $3 a share. The 15,000 share
will be sold to L. D. Sherman &
Co., New York, th
principal underwriter, at 60 cents a share. The under
writing discount for 80,000 shares will be 50 cents
share.
The company will use its
proceeds to increase
working capital.
>•

Under¬

par)

Price—$2

the

Empire Projector Corp., New York
(9/22-30)
Aug. 21 (letter of notification) 80,000 shares
($1 par)

Toroata,

To be sold through offi¬
cers and directors.
Names of any brokers or dealers en-,
gaged to help in distribution will be
supplied by amend¬
ment.
Underwriting discount: 30 cents a share.. For
payment Of indebtedness, purchase of
equipment and

Atlantic City (N. J.) Electric
Co. (9/17)
March 19 filed 522,416 shares
($10 par) common, being
offered by American Gas &
Electric Co. Underwriters-

outstanding shares

con¬

program.

common.

Broad

Securities Corp.
Proceeds—Offering is part
American's plan to dispose of its
holdings of

construction

Challenger Airlines Co.# Salt Lake City# Utah
Aug. 26 (letter of notification) 150,000 shares ($1

share Of preferred for each five
shares
Unsubscribed shares will be offered

American Water Works
CO., I new, N. Y. (9/25)
March 30, 1946 filed
2,343,105 shs. of common (par $5)
plus an additional number determinable
only after the
results of competitive
bidding are known. Underwriters
-*-TO be filed by amendment.
Probable bidders include
Dillon, Read & Co. Inc., White, Weld &
Co., and Shields
& Co.
(jointly), and W. C. Langley & Co. and The
First Boston
Corp. (jointly). Offering—Price to public
by amendment,
Bids—Bids for the purchase of the
stock

•.

Hayward, Jr.
Price—At market (r
proximately $3.25 per share).
Underwriter—Johnso
& Johnson,
Pittsburgh, Pa., and The First Clevelan
Corp., Cleveland. The company will use its proce
for working capital.

Offering —To the public at
share in Canadian funds. •- Proceeds—For a
variety
of purposes in connection witti
exploration, sinking of
shafts, diamond drilling and working capital.

publicly through the underwriter. Price by
amendment.
Proceeds—To pay off $12,250,000 short-term bank
loan
and for general funds.
Business—Manufacture of brake
shoes, miscellaneous castings and allied
products.

Street, New York,

for

writer—No underwriters.

Preferred stock is convertible into common
any
1, 1957.
Underwriters —The First

Corp., New York, and Harris, Hall & Co.
(Inc.),
Chicago.. Offering—Preferred shares will be offered for
subscription to common stockholders of record on Oct.
1,
in the
of

financing

common.

prior to Oct.

Boston

the

construction.

new

and 12,500 shares
Mrs. Thomas R.

on the basis of two new shares for
shares held of record Oct.
1, 1947.
Price—at

with

under

Procefc

Duraloy Co., Scottdale, Pa.
March 12 (letter of
notification) 25,060 shares ($1 par
common on behalf of the
issuer, 12,500 shares ($1 par)
common

stockholders

Cartcor Porcupine Gold
Mlnoa, Ltd.# of
Ontario
June 24, 1946, filed 400,000 shares of

•

time

Tarboro,

Proceeds—To repay short-term bank loans in

par.

nection

the stock was sold in violation of
the Securities Act.

American Brake Shoe
Co., New York.
Sept. 8 filed 190,101 shares ($100 par) cumulative

Telephone & Telegraph Co.,

each five

constructio

Sept. 3 filed 21,250 shares ($100 par) common. Under¬
writers—No underwriting.
Offering—To be offered to

(J. J.) & Co., Inc., Buffalo, N. Y.
(letter of notification) 1,727 shares of common
stock (par $20). Price
$20 per share. The securities are
being reoffered in conjunction with an offer of recission

Unsubscribed shax

Business—Public utility holding
company^
Duquesne Light Co., Pittsburgh, Pa.
Aug. 1 filed $75,000,000 30-year first mortgage
bond
Underwriting—To be determined by competitive
bid¬
ding.
Probable bidders include: Kuhn, Loeb &
Co. an
Smith, Barney & Co. (jointly); Halsey, Stuart &
Co.Inc..
The First Boston.Corp.
Proceeds—To redeem
$70,000
000 of first mortgage 3^2% bonds at 103
The balanc
will be added to general funds to
pay part of the co

65,000 shares of common, will receive warrants to purchase 90,394 shares of the offering. It also will
purchase

Carolina

Allen

held.

purposes.

shares not acquired by other stockholders. Proceeds
—Washington Railway will use proceeds to redeem $2,800,000 of bank loan notes.

Sept. 3

any

Co., Inc., Montgomery, Ala.
Sept. 4 (letter of notification) $75,000 of "advancement
certificates." Not less than $100
per certificate.
To be
sold through own officers and
agents.
For investment
in legal investments.
9

Price—$35

Railway's outstanding

rants for common stock to underwriters at

price of $2,000.
Alabama

for preferred in 1945.

common

its common stockholders at $20 a share in the ratio of
two shares for each share held. The North American
Co.,
holder of 50,197 of Washington

shares and four selling stockholders
sale of 64,366 shares.
Company
also will receive proceeds from the sale of
20,000 war¬

privately or publicly through
Price to be supplied by amendment.

writer.

Capital Transit Co., Washington
Aug. 11 filed 120,000 shares ($100 par) common. Under¬
writing — No underwriting. Offering — The shares are
being offered by Washington Railway & Electric C.o. to

($1 par) common stock.
& Co., Inc., and First

sale of 58,880

five

sold

—Proceeds from the sale of stock and from
the sale o
new
debentures will be used to make
advances to th
company's three operating subsidiaries for

Proceeds—For corporate purposes.

(9/15-19)

proceeds from the

each

for

may

offered only to those stockholders who exchanged their

Underwriters—Herrick, Waddell

the

For payment of

Callaway Mills, LaGrange, Ga.
Aug. 28 filed 123,306 shares (no par) common.
Under¬
writing—No underwriting.
Offering — Shares will be

share.

123,246 shares

Co., Nashville, Tenn.

Colony Corp.
Offering—To be offered publicly at $5
t share.
Proceeds—Company will receive proceeds from

•

—

holdings of

June

Derby Gas & Electric Corp., New York
Sept. 4 filed 43,610 shares (no par) common.
Under
writing—If a public sale is made the
underwriter w'
be supplied by amendment. - Offering—The
shares wi
be offered to common stockholders on the
basis of

bank indebtedness and other corporate purposes.

Vending Machine

Corp., Cuba, N. Y.

.Thursday, September
11, }g<

Registration

(letter of notification) 17,000 shares ($1 par)
Price
$8.25 a share.
Underwriter—Mid-

common.

Corp.
Acme Electric

CHRONICLE

Brown Radio Productions, Inc., Nashville, Tenn.

South Securities

The company will use proceeds for organizational
purposes, which includes the merger of Berlo Vending
Co., Philadelphia, and Sanitary Automatic Candy Corp.,
Name formerly American

Now

Aug. 29

pany.

New York.

FINANCIAL

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

•

June 30 filed

BoiSTon
mwmmrnw*®

Bo510"

Stock
GO

C*xcS

Number 4628

yolume 166

THE

£®nt; T^e ™ef?ing companies are Toccoa Manufacturing
Co
and
Stickley Brothers, Inc., both Illinois
rations, and the Luce Corp. and
Stickley Bros. Institu¬
tional Furniture
Co., both Michigan
corporations.

NEW ISSUE CALENDAR

determined

Interstate Power Co

Noon

National Union Fire Ins. Co

common

Conlon-Moore

construction

•

1, 1947

and 350,000 shares of

Inc., New York.
.

reserved for

common

class A shares will be offered in units of

V 18,500 shares of
employees and

will be offered to

underwriters

and

unspecified fiumber of
to

certain

one

common

their

customers.

The

•

Built-in-Arch Shoe, Inc., Highland, III.
(letter of notification) 22,000 shares ($1 par)
and 17,800 shares ($10 par) preferred.
Pre¬
ferred will be offered publicly at $10 a share while the
22,000 shares of common are to be sold to Calvin C.
for

July 22

Plant-Choate

Manufacturing Co.,

Inc.,

($25 par) 5% cumul. con¬
preferred. Underwriter—Paul H. Davis & Co.,
Chicago. Price—$25 per share. Proceeds—To be added
to working capital and will be used in part to reduce
vertible

(9/17)

current bank

loans.

Legend Gold Mines, Ltd., Toronto, Canada
June 27 filed 300,000 shares ($1 par) common treasury
stock.
Underwriting — To be supplied by amendment.
Price—50 cents a share. Proceeds—To develop mining

—

Rights expire Sept. 17. Price—$21.50
share.' Proceeds—For general corporate purposes
including the financing of a portion of the company's

Falco
II

per

(letter of notification)

common.

baum &

sold

•

5,000 shares ($2 par)

market.

Co., New York.

Underwriter—Birn-

Shares being sold on behalf of

•

Ice-Flo Corp., New York
4 (letter of notification)
75,000 shares ($2.40 par)
olass A stock and
210,000 shares (50 par) common.
Of
the common
15,000 shares were sold to Alexander D„

unit.

Underwriter—Gillen & Co., New

fork.

For payment of obligations and development of
manufacture of refrigerating machines and ice-making
hays. Issue will be placed privately.
'

HHnois-Rockford Corp., Chicago
July 24 filed 120,000 shares

($1 par)

common.

Under¬

writers—Brailsford & Co.,
i!?e—$9-25
sold

share.

and Straus & Blosser, Chicago.
Proceeds—The shares are being

by four stockholders and represent part of the stock
me
sellers will receive in
exchange for their holdings
01 four
furniture companies to be merged with the regis-

and Telegraph

Co.

Aug. 29 filed $40,000,000 of 35-year debentures.

Under¬
by Competitive bidding.
Probable bidders: Morgan Stanley & Co.; Halsey, Stuart
& Co. Inc.
Proceeds—To repay money advanced by its
parent, American Telephone & Telegraph Co., as a tem¬
porary financing measure toward construction costs; and
to finance further construction costs.
Bids
Company
writing

.*■

—

determined

—

intends to invite sealed bids to be delivered to company
at 195

Broadway, New York, by Sept, 30.

Orient-Eureka Gold Mines

Pasco

Loomis-Sayles Mutual Fund, Boston, Mass.
Sept. 4 filed 10,000 shares (no par) capital stock.
Un¬
derwriter—Loomis, Sayles & Co., Inc., Boston, is investment manager for the fund.
Price—Based on market.
Proceeds—For investment.

Manhattan Coil Corp.,

Atlanta, Ga.

purchase of machinery and other

Hicks

Underwriter—Mercer

Quebec,

& Co.,
funds.

New

York.

The under¬
writer receives a discount of 7V& cents a share, Canadian
funds.
Proceeds—For exploration of mining property.
Price—30

cents

Canadian

share,

Brooklyn, N. Y.
14,000 shares of common
(par 50c).
Price—$1,875 per share. Offered on behalf
of or for benefit of Greenfield, Lax & Co., Inc., who is
Payne

Cutlery Corp.,

named underwriter.

Effective Sept. 10.

Pennsylvania & Southern Gas Co.
Sept. 3 (letter of notification) $20,000 first lien and
collateral trust bonds, series B, due Sept. 1, 1965. Price—
Par.
Underwriter—Bioren & Co., Philadelphia.
Pay¬
•

ment of corporate

obligations and general corporate pur¬

poses.

Hampshire

(by amendment) 387,428 common shares (par
$10), now owned by New England Public Service Cr
Offering—Shares will be offered in exchange for 118,747
2

Sept.

$7 prior lien preferred and 60,000 shares
preferred of NEPSCO.
If unexchanged

chares

lien

$6 prior
publicly

tiled by post effective amendment.
Peabody & Co. and Blyth & Co., Inc., have been

selected managers

by NEPSCO to

solicit exchanges of

prior lien stocks.
Quebec Gold Rocks Exploration Ltd., ^ntr®*1
13 1946, filed 100,000 shs. (500 par) capital stock.
Underwriter—Robert B. Soden, Montreal, director of

Nov

Price—50# a share. Proceeds—For
development of mining property.
Revere Racing Association, Inc.

explors-

shares .(no par) common.

Under-

tlon end

July 29 filed 130,000

writer—Bonner & Bonner

Explorations, Ltd., Toronto, Can.
April 10 filed 300,000 shares ($1 par) common,
under¬
writer—F. H. Winter & Co.
Price—40 cents a share.

Inc.,

Proceeds—The shares are being sold bv' sto<*
holders who will receive all net proceeds.
Registrat
statement became effective Sept. 5.
a

share.

plant equip¬

ment.

Manontqueb

Montreal,

Ltd.,

Corp.

company.

May 20 filed $500,000 5% serial debentures, due 19491957; 12,000 shares ($25 par) 5Vz% cumulative converti¬
ble preferred and 85,000 shares ($1 par) common.
Underwriter—Kirchofer & Arnold, Inc., Raleigh, N. C. Price
—The debentures at 102.507, while the preferred shares
will be offered at par and the common shares at $4
each.
Proceeds—To retire bank indebtedness and to
finance

Mining

Canada

Kidder

Co., Spokane, Wash.

Sept. 3 (letter of notification)

offered terms will be

two stockholders.

Sept.

com¬

England Telephone
(9/30)

Public Service Co. of New

Manufacturing Co., Inc., Little Falls,

July 31

share of A stoek and two shares of

New

properties. Business—Mining.

share for each

five shares held.

one

funds for investment in securities.

Sept. 2 (letter of notification)

April 30 filed 60,000 shares

(by amendment) filed 134,034 shares ($5 par)
Common replacing original program (filed June 26) to
sell 110,000 shares of
cumulative, Series A (no par)
preferred stock.
Underwriter
Smith, Barney & Co.
will be
principal underwriter for purchase of common
not subscribed for
by the company's common stockhold¬
ers.
Offering—Shares are offered to common stockhold¬

units of

at rate of nine shares for each 11 shares
Rights expire at 10 a.m. Sept. 29.
Unsubscribed
shares will be offered publicly through the underwriters.
Price $25 per share.
Proceeds—To be added to cash

$1.

60,000 shares ($1 par)
Underwriter—H. P. Carver

(letter of notification)

Cedar Rapids, Iowa

Aug. 20

mon at S2.50
per

held.

Aug. 8 filed 333,333 shares of common, nominal value of

Price—$5 a share.
Corp., Boston.
To retire debt and for working capital.

(Eugene D.), East Cleveland, Ohio
Sept. 4 (letter of notification) Preorganization subscrip¬
tions for 250 shares of $100 par common.
Price—$100 a
share. No underwriting. For purchase of mining equip¬
ment and
machinery.
"

a director at 5 cents each and 45,000 shares were
sold to Gillen &
Co., New York, at 5 cents each for in¬
vestment
The balance, 160,000 shares will be offered

Aug. 5 filed 180,000 shares ($5 par) capital stock. Un¬
derwriter—The First Boston Corp., New York.
Offer¬
ing—Stockholders of record Aug. 25 are given the right

patent rights valued at $22,000.
No
For acquisition of plant machinery and

working capital.

common.

Harvey,

National Union Fire Insurance Co. of Pittsburgh,
Pa. (9/29)

certain

Koch Chemical Co., Winona, Minn.

Mobeck

planf expansion program.

Underwriter—East¬
man, Dillon & Co., New York. Price by amendment.
Proceeds—To retire outstanding bank loans.

490,000 shares (100 par)
common.
Price—10 cents a share.
To be sold through
officers and directors of the company. To develop mines.

Klaus

copters and- equipment and for working capital.

one

Morris Plan Corp. of America, N. Y.
Mar. 31 filed $3,000,000 debentures.

•

for

the basis of

by the company at Room 901, 50 Broad Street,
up to noon (EDT) Sept. 16.

York,

common

writer—Strauss Bros., Inc., New York. Underwriters may
"... Withdraw as such. Price—$3.50 a share. Proceeds—Net
proceeds will be used to pay obligations, purchase heli¬

New

new

Klaus

underwriting.

share of

Proceeds—For construc¬
Bids—Bids for purchase of securities will be re¬

tion.

Aug. 28

Helicopter Air Transport, Inc., Camden, N. J.

Sept. 2

one

(9/16)

White, Weld & Co. (jointly).
ceived

pre¬

Proceeds—Proceeds from the sale
preferred will be used to redeem unexchanged

new

(March 14 filed 270,000 shares of capital stock. Under¬

ers of record

preferred and

Co.

$7,000,000 30-year first

Inc.; (bonds only). Blyth & Co. and Gold¬
Sachs & Co. (jointly); Merrill Lynch, Pierce, Fen& Beane (bonds
only); Kidder, Peabody & Co., and

ner

automobile

shares ©I old preferred. Bids—Bids for purchase of stock
advertised for July 14 postponed.
Expected that offer¬
ing will be made end of September.

Working capital, acquisition of additional
capital equipment, payment of $35,000 funded debt and
expenses of projected sales campaign.

Co.

competitive bidding.

Philadelphia.

Electrochemical

Business—Manufacture

filed

man,

new^preferred not issued in exchange will be sold at

"of

(par 50c).' Price—$25 per unit, consist¬
ing of one preferred and two common, plus dividends
on
preferred.
Underwriter—Coffin, Betz & Sullivan,

Sept. 29.

Stuart & Co.

a.m.

preferred for each two shares of junior preferred. Shares
of

stock

Hooker

Brothers

for each share of 6%

Reed

•

until

underwriting the stock. Offering—Preferred stock ini¬
tially will be offered in exchange for outstanding ($100
par) 6% preferred and ($50 par) junior preferred. The
basis of exchange will be one share of new
preferred

Corp., Philadelphia
(letter of notification) 8,000 shares of $1.50
'cumulative preferred stock (no par) and 16,000 shares of

•

received

conversations with The First Boston
Corp.,
Lehman Brothers and Lazard Freres Co.
(jointly) toward

share each.

common

instituted

subsidiary, H. & H. Candy Corp., and to redeem its out¬
standing 5% preferred stock. '
Harmonic

will

Underwriters—To be determined by competitive
It was announced July 25 that the company has

bidding.

shares and

balance will be sold at public or private sale.
Price—By
amendment.- Proceeds—To purchase capital stock of its

Aug.

Bids—Bids for

bonds

proceeds.

ferred.

officers, directors and partners of the
.

Unsub¬

expansion of system.

the

purchase or
Bids—Expected bids will

mortgage bonds
40,000 shares ($100 par) cumulative preferred stock.
Underwriters—To be determined by competitive bidding.
Probable bidders include W. C. Langley & Co. and The
First Boston Corp.
(jointly); Lehman Brothers; Harri¬
man Ripley &
Co. and Lazard Freres & Co. (jointly)
(bonds only); Glore, Forgan & Co. (bonds only); Halsey

Proceeds—For

Kentucky Utilities Co., Lexington, Ky.
May -9 filed 130,000 shares ($100 par) cumulative

con¬

will be offered to officers and

common

Aug.

company's stockholders

City Gas & Electric Co.

and

(9/29)|

and

tools.

Underwriter—Blair & Co.;

Offering—175,000

Kable

ceive

1947
Debentures

version of the class A stock.

the

facilities.

new

Monongahela Power

•

Pacific Tel. & Tel. Co...

mon,

share for each five held.

equipment and for
is being sold by

stock

McPhail, President.

be advertised for

Kent-Moore Organization Inc., Detroit
Sept. 10 filed 32,000 shares of common. Underwriting—
No underwriting.
Price—$16.50 a share.
ProceedsShares are
being sold by two stockholders who will re¬

7, 1947
.....^-....Bonds

October 21,

new

Metropolitan Edison Co., Reading, Pa.
Aug. 29 filed $4,500,000 of first mortgage bonds.

construction of

ing capital.

Bonds

October

one

common

Under¬
writing — To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.; Drexel & Co.
Proceeds—For

Bids

Co., Mount Morris, III.
Sept. 3 (letter of notification) 253 shares ($10
par) com¬
mon.
Price—$10 a share. No underwriting. For work¬

Bonds

Corp

The

Sept. 16 by the company at 30 Broad
Street, New York.

.......Capital Stock

...

purcnase

.Bonds

Pacifie Gas & Electric Co...

;

will be offered

1947
__L_-_____Common

September 30, 1947 *
England Tel. & Tel. Co
(.....Debentures
October

Allyn & Co.; Harriman Ripley
Co., and Equitable Securities Corp.
(jointly).
The

scribed to Sioux

Texas Electric Service Co

working capital.
Russell

bonds. Probable bidders:
Halsey, Stuart & Co. Inc.; KidPeabody & Co. and Blyth & Co., Inc. (jointly); The
First Boston
Corp.; A. C.

at the rate of

.....

loans, buy

bid¬

Lehman

—

Bonds

__C1. A Convertible

Florida Rami Products Inc

and $6 a common share.
Proceeds — Company will re¬
ceive proceeds from the sale of
preferred only and will
use it to
pay off bank

(9/16)

.Equip. Trust Ctfs.

Metropolitan Edison Co..

competitive

com¬

Underwriters—Brailsford & Co., and Shillinglaw,
Bolger & Co., Chicago. Price — $10 a preferred share

*3>500>000 of lst mtge. bonds, due 1977, and
109,866 shs. ($15 par) common. Underwriters
To be
determined by competitive
bidding for the sale of the

Rio Grande Western RR.

September 29,

($1 par)

mon.

Co.

construction and for working
capital.
expected about Sept. 12 for submission
Sept. 24.
Iowa Public Service Co.

Bonds and Common

Gem Products. Inc

New

new

1947

(MST).'.—

convertible preferred and
200,000 shares

Brothers, Goldman.
and The First Boston
Corp. (jointly);
Halsey, Stuart & Co. Inc. (bond
only); Harriman Ripley
& Co. (stock
only). Proceeds—For debt retirement, fi¬
nance

September 25, 1947
American Water Works Co., Inc. (noon) ..Common
Denver &

Probable bidders:

Sachs

Common

„

McPhail Candy Corp.,
Chicago
»
July 25 filed 100,000 shares ($10 par) 5^% cumulative

*?ower Co'' D"buque» Iowa (9/24)
fHed $19,400,000 of first mortgage bonds, due
r?JjLan^ 3,000,000 shares ($3.50 par) capital stock,
underwriters—To be

September 18, 1947
Continental Casualty Co._...,
Capital Stock
Revere Racing Association, Inc..
(.Common
September 22, 1947

September 24,

($1 par)

share. To be offered to stock¬

iQ77

ding.

Business—Mining.

McCormick & Co., Inc., Baltimore, Md.
Aug. 13 (letter of notification) 1,400 shares ($100 par)
5% cumulative preferred.
Price—$100 a share. No un¬
derwriting, For additional working capital.
•

-™

^.Preferred

Consumers Power Co

claims.

Unsubscribed shares to be offered
publicly
through Bennett & Co., Hollywood. To
purchase equip¬
ment, liquidate indebtedness, and for
working capital.
amended application
may be filed in near future.

Providence & Worcester RR., noon (EDT)
Bonds
Standard-Thomson Corp..—„__Debs. and Common

Empire Projector Corp........
September 23, 1947

Price—$1

holders.

:______..j_Common

Hooker Electrochemical Co.......

'"Slewood Gasoline Co., Beverly Hills
\ <let*er of notification) 100,414.8 shares

capita! stock.

..Common

Atlantic City Electric Co.i

Proceeds—For exploration and development of
mining

corpo*

September 15, 1947
Acme Electric Corp._„——
„—Common
Bell Finance Co
;
.Debentures
Tobin Packing Co
Common
September 16, 1947
Iowa Public Service Co
—Bonds and Common
Monongahela Power Co.
Noon (EDT)~~.—
Bonds and Preferred
San Diego Gas & Oil Co., 8 a.m. (PST)
Common
September 17, 1947
A. B. C. Vending Corp..

COMMERCIAL & FINANCIAL
CHRONICLE

Russell
Aug

20 filed

Co., Cleveland
113,678 shares ($1 par)

(F. C.)

wriler-Mconald

& Co..

Cleveland.

common.

Unde

Pricc-By amend-

(Continued on page 36)

?6
1

(1036)

THE

(Continued from page 35)

ment.

Proceeds—Shares

Who will receive
•

St.

Louis

•

proceeds.

common,"

Wholesale

Drug Co., St. Louis, Mo.
Aug. 28 (letter of notification) 4,039 shares ($10 par)
common.
Price—$10 a share.
Sales to be handled by
O.J. Cloughly, executive vice-president of
company,
arid R. L. Stoil, an employee.
For additional working
capital.
Salant &

March

share.

240,000

The

writing—To

by competitive bidding.
Probable bidders included
Blyth & Co., Inc.; White,
Weld & Co., and Shields & Co.
(jointly); The First Bos¬
ton Corp.
Proceeds—To reimburse
treasury funds for
capital expenditures heretofore made.
It plans to use

Francisco,

to 8

Santa

(PST)

a.m.

Maria

Mines,

(Canadian funds).

capital stock.
Price—50

Un¬

pur¬

share and

share.

Aug.

Mining Corp., Idaho Springs, Colo.
notification) $27,000 capital stock. Price

(letter of notification) 1,000 shares
($100 par)
6% preferred and 100 shares
($100 par) common.
To
be sold at
par.
No
Slocan

Charleston

British

Mining

re-equip

Co.,

Ltd.,

kaslo,

.Wash.

Price

—

cents

share.

mining equipment, development work
capital.

Snyder Chemical

Sept. 2 (letter

Proceeds
and

—

stock

for working

•

Offered to

held.

Rights

one

per

Johnson, Lane, Space
Co., both of Savannah,

Hartford, Conn.

bonds.

1, 1948, to Nov. 1,

certificates

mature

1962.

•

will

semi-annually

Probable bidders:
&

Hutzler.

Paso Natural Gas Co.

Sept, 6 reported company contemplates sale of
bonds and
possibly sale of stock, besides a bank
loan, in
connection

pipe line.

White, Weld & Co.

and

Webster Securities
Corp.
•

Tra¬

Stone &

Equitable Office Building
Corp.

Sept. 10 two

new

reorganization plans filed with Federal
plan is a compromise filed on behalf

One

Wertheim & Co. and
Manufacturers Trust Co.

plan is proposed by
The

underwriting

Carl M.
®

share.

The other

group headed by Louis J. Horowitz.

group of the latter plan

is headed by

Loeb, Rhoades & Co.

Hickok

Sept. 3 reported
common

[

Manufacturing Co.

from

undetermined number of shares of

estates

Rae

Hickok

and

Lowell

for public sale

Shields, deceased, will be offered

through

Wertheim & Co. and E. H.
Rollins &

Pacific

Gas

Electric Co.

Sons, Inc.

(10/7)

registration statement

an
early date with SEC
covering the offering of $75,000,000 2%% bonds, due Dec.
1, 1980, the proceeds to be

used

for

construction needs.

Probable

bidders

include

Blyth & Co, Inc.; Halsey, Stuart & Co.
Inc.; The First
Boston Corp.
Bids for purchase of bonds
tentatively
expected Oct. 7.

than

$50

per4,share.

Dolphyn,

Detroit.

Inc.,

75,000

($10

par)

Telegraph Co.
Commission

(10/21)

authorized

petitive basis.

Probable bidders:

com¬

Morgan Stanley & Co.;

Halsey, Stuart

Cincinnati

& Co. Inc.
The proceeds will be used
to repay advances from
the American Telephone & Tele¬
graph Co. and help meet plant construction

No under¬

expenditures.

Registration

•

due Oct. 21.

•.

Specialty Corp., Boston

to sell $100,000,000 40-year
debentures

pany

Advertising,

filed

Pacific Telephone &

Aug. 26 California

cumulative

Price—Debentures 98; common $3.75
Proceeds—For plant construction,
purchase
equipment and for working
capital.
Registration

Ltd., Toronto, Canada

•

with SEC
expected about
'

"•

Providence-Washington

Oct. 3 stockholders will vote
of

100,000

for

three

held.

deter¬

Prob¬

the

Boston

Corp.

Worcester RR.

purchase

(9/17)

$1,500,000

bonds, series A, due Oct. 1,
to

Price

Providence
for

Co.

Proceeds to increase
capital funds.

underwriter, The First

Bids

Insurance

increasing stock by sale
stockholders on basis of one new

shares to
each

mined later.
able

Sept. 20 with bids

first

mortgage

1967, will be received

noon

(EDT) Sept.' 17 at office of Walter
A- Edwards,
President, Room 491, South Station, Boston.
Probable
bidder: Adams & Peck.
•

Springfield Fire

Oct.

Marine

stockholders will vote

Insurance

Co.

splitup of

approving

2V2 shares for 1 with reduction in
par from $25 to $10 a

500,000 shares ($1 par) common. Underto be filed by amendment.
Price—50 cent#
Proceeds—For general
operating expenses.

share.
U.

Gold

(letter

Corp., Seattle, Wash.
of

notification)

Price—50 cents
of

the

share.

For

140,000 shares of
To be sold

an
increasing stock from $5,000,000 to $7,000,C00. The 200,000
shares will be offered pro-rata to .stock¬
holders in ratio of one
$25 share for one $10 share.
Is¬
sue

com¬

through of¬

will be underwritten

by The First Boston Corp. and

Kidder, Peabody & Co.

exploring and developing

Weber Showcase &
Fixture Co.,

and

reduce

bank

present plans will be

Montreal,

•

Wiard

Plow Co.,

loans.

Inc.

United States

Government,
■'

...

State, Municipal

subscription to Weber's
comm<>n stockholders. Certain shareholders have waived
subscription rights,
subscription rights. Proceeds—To retire preferred stock

•

May

The

are

Halsey, Stuart & Co. Inc.; Salomon Bros.

Mar. 31 filed
108,763 shares ($5 par) common.
Under¬
writers—Blair & Co, Inc. and Wm.
R. Staats Co. Offering—Shares will be offered for

A,„^ww.st Lumber

working capital

from

certificates.

1947, and

units consisting of
6% cumulative
preferred and one

Mills, Inc., McNary, Ariz.
mtuLi
f
„°, notation) 40,000 shares ($1 par)
KtookhnirWc^* A
iT~
° a S^are- To be offered to
?I?ir be bought uy Thares.
Purchased by stockholders
will
by. Imperial Trlist Pn
T trt
7^ 7 ,
Can. To

Price—Not

company.
mining claims.
"

notification) 8,000

share.

ficers

($lpaf2 co™mon- Price—$12.50 per unit. Underworkii^ cap\tafS
Securities Corp, Jacksonville. For

restore

mon.

by competitive bidding.
Halsey, Stuart & Co.
Inc.; The First

($10 par)

(no par).

Aug. 29

Southeastern Development
Corp., Jacksonville,
ll9i|
July 29 (letter of
share

share and

•

filed

Boston Corp.
Proceeds—To redeem
outstanding securi¬
ties of Atlantic
City Gas Co, and Peoples Gas
Co, which
were
merged to form South
Jersey Gas Co.

one

trust

Nov.

(MST) Sept. 25 at office

company,
Bldg, Denver, Colo, for $2,220,000
of

Grande

equipment
dated

noon

received

Ma.r- 31 *iled
a

program.

Jersey Gas Co., Newark, N. J.
$4,000,000 30-year first
mortgage
Underwriters—To be determined

(9/25)

writer—Name

For

South

Probable bidders:

common.

facilities

Packing Co., Inc., Rochester, N, Y. (9/15)
(letter of notification) 2,000 shares of
.common

Vauze Dufault
Mines,

payment of
indebtedness and to
defray part of the cost of its
expan¬
sion

improvement

production

statement became effective June
28.

Hiisman & Co., all of
Atlanta, Ga.;

Varnadoe-Chisholm

purchase

Co., Inc., Boston.

share for each five

Sept. 12.
UnderwritersClement A. Evans &
Co., Inc.; Courts & Co.; The Robin¬
son-Humphrey Co.: Milhous, Martin &
Co., and J. H.
and

Rio

Sept. 4 company expects to file

state¬
ment also covers
112,000 shares of commoh reserved
for
conversion of the
debentures.
Underwriter—Carver &

expire

and Putnam & Co., of

ex¬

ceeds—For additional
working capital.
Utah Chemical &
Carbon Co.
Dec. 20 filed
$700,000 5% 15-year convertible
debentures
due 1962, and
225,000 shares ($1 par) common. The

Co., Savannah, Ga.
r
notification) 22,400 shares ($5 par)
common stockholders
of record
Aug.

RR.

convertible preferred.
& Co., Inc., New York. Underwriter—Herrick, Waddell
Price—$10 a share. The under¬
writers will receive a commission of
$1.50 per share. In
addition, they will be granted warrants to
purchase 50,000 shares of the
issuer's common at
$5 a share.
Pro¬

Gas

7 at $8.50
per unit on the basis of

before

201

Court.

(9/30)

expected

United Utilities &

July

—

preferred share and $100 a common
share.
writing.
For additional working capital.
-

Stores Co., San Antonio
Sept. 5 filed 100,000 shares
($5 par) 300 cumulative pre¬
ferred and 67,500 shares
($1 par) common.
Underwriter
—Alex. Brown &
Sons, Baltimore, Md. Price to be sup¬
plied by amendment.
Proceeds—To acquire control of
two other
drug companies—Somners
Drug Stores in San
Antonio and the Thames
Drug Co., Inc., Beaumont, Tex.
These two
companies will be liquidated
upon transfer of
their assets to the
registrant.
Business
Operation of
drug store chain. '
5
•
(letter

Turner

building.

Atlantic

Proceeds—To be added to general

Sept. 2 (letter of notification) 300 shares
($100 par) pre¬
and 64 shares (no
par) common.
Price—$100 a

Somners Drug

South

Sept.

Offering—Shares will be
price for subscription to
17. Rights expire Oct. 8.

ferred

record

;

Topeka, Kans.
notification) 250,000 shares (100 par)

common,and 10,000 shares ($5
par) 5% cumulative pre¬
ferred.
Price—10
cents, a .common share and $5 a pre¬
ferred share.
No
underwriting. : For working capital,
purchase oi equipment and a
building site and for con¬
struction
Of

market

Underwriter—Mercier, McDowell
Proceeds to Frederick M. Tobin.

Co.,

Western

Tobin

Sept. 8

For

Grande

ditional underwriters:

•

Rio

Un¬

and
for
working capital.
The SEC Sept 3 announced it had in¬
stituted proceedings to determine
whether a stop order
should be issued
suspending the effectiveness of the
registration statement.

plant

purposes.

Columbia

shares).

Proceeds—To finance construction
Bids—Bids for purchase of bonds

Proceeds—To

•Aug. 13 filed 200,000 shares ($1
par) common.
Under¬
writers—Elmer J. Edwards and Van
Tine, both of Seat¬
tle.

Sept. 3

Denver

with construction of another
natural gas

Thomascolor Inc., Los
Angeles
July 9 filed 1,000,000 shares ($5 par) class A
Underwriter—No underwriting.
Price—$10

Sept. 4

the

Rights

•

(par

Sept. 30.

Arkansas

and

•

common

(jointly).

penditures.

through directors of the com¬
pany.
For mine repairs and
development. !
•
Sleepy Valley Development
Co., Hot Springs,

except

15.

•

are

27 filed

& Co.

To be sold

underwriting.

Subscriptions

$7,000,000 30-year first mortgage bonds.
Underwriting—To be determined by competitive bid¬
ding.
Probable bidders include:
Blyth & Co., Inc.,
Smith, Barney & Co. and Kidder, Peabody & Co.
(joint¬
ly); The First Boston Corp.; Halsey, Stuart & Co.
Inc.;
Hemphill, Noyes & Co. and Drexel & Co.
(jointlyl;
Glore, Forgan & Co. and W. C. Langley & Co.
(jointly);
Harriman, Ripley & Co. and Stone & Webster Securities
Corp. (jointly); White, Weld & Co. and Lazard Freres

pre¬

Ltd.

all SEC
and
N. Y. Stock Exchange
requirements have been
complied
with.
*

conversion" of

Texas Electric Service
Co., Fort Worth

Albion, Mich.

Co., Chicago. Price—$25

buildings and for other corporate

below

purposes.

Silver Plume

Sept. 5 (letter of

Breweries,

U. S. residents, may be exercised
up to Oct.
will be distributed to U. S.
residents after

publicly.

Co., New York

Price by amendment.
funds for corporate

$10 a common share.
Proceeds—Pro¬
ceeds, together with funds to be provided
by a term bank
loan, will be used to
discharge indebtedness to Domestic
Credit Corp.

& Co

for

Canadian

Company has issued invitations for bids to be

stockholders of

(Wash.) Gas Co.
(letter of notification) $300,000

writer—Smith, Burris

offered

be reserved

derwriters—No underwriting.
offered

common.

shares will

will

Aug. 14 filed an unspecified number of
$25) shares (maximum number, 2,248,932

Seattle

Aug. 22

attached

Chilkoot Motorship Lines.

Texas

cents

Proceeds—For corporate

Service Caster & Truck
Corp.,

for

of company which intends to engage in
shipping
and trucking operations
serving the Alaska trade.
'

April 10 tiled 32,000 shares ($25
par) $1.40 convertible
preferred and 53,962 shares ($1
par) common.
Under¬

•

proceeds

•

Sept. 2 it was announced that stockholders
of
record
Sept. 12 will receive rights to subscribe at
$20 per share
to one new share for each 10 common
shares held.
Rights
which will be distributed to all
holders Sept. 17

poses

($50 par) pre¬
ferred.
Price—$50 a share. Underwriter—Shea &
Co.,
Boston; and Smith, Landeryou & Co.,
Omaha, Neb. For
payment of loan and current obligations.

Price—$12 a
Mason, Inc.,

per unit, con¬
sisting of two shares of preferred and one share of com¬
mon.
No
underwriting.
For general corporate pur¬

poses.

'and

Horner

320 shares of $25 par 5% cumulative
preferred and
160 shares of $25 par common.
Price—$75

111, Sutter Street, San
Sept. 16.

4 filed 250,000 shares ($1 par)
derwriter—Mark Daniel, Toronto.

Scott

Steve

Ltd., Toronto, Canada

'Aug.

—$1

warrants

common

known

proceeds to finance, in part,
its 1947 construction
program.
Bids—Bids for purchase

•

four stockholders.

—

for

amount equal to such net

ferred

behalf of

Larsson Homer & Co., Seatle, Wash.
•Aug. 28 (letter of notification). Pre-organization sub¬
scriptions for stock in corporation to be formed to be

determined

of stock will be received at Room

11,19^

Lynchburg, Va.

debentures.

Diego Gas & Electric Co. (9/16)
Aug. 21 fiied 300,000 shares ($10 par) common. Under¬

Sept. 4

Underwriter

stock

mon

San

.•

Thursday, September

Standard-Thomson Corp., Dayton, O. (9/17-19)
Aug. 27 filed $1,750,000 5% sinking fund debentures, due
1967, and 272,500 shares of common (par $1). Under¬
writers—Lee Higginson Corp., and P. W. Brooks &
Co.,
Inc., New York. Offering—The debentures with com¬

stockholders who will receive proceeds.

Bakery Inc.,

CHRONICLE

Va.
Company will use its
working capital and expansion purposes.

($2 par) capital stock.
Underwriter—Eastman, Dillon & Co., New York. Price
by amendment. Proceeds—Shares are being sold by 13

FINANCIAL

Lynchburg,

Salant, Inc.. New York

filed

Sta-Kleen

Sept, 8 (letter of notification) 1,621 shares ($1 par) com¬
mon, on oehalf of company and 8,000 shares ($1 par)

being sold by stockholders

are

COMMERCIAL

and
\

Corporate Securities

Reported July 16 that the

entirely changed.

•

Blair

Batavia, N. Y.

Sept. 3 (letter of
notification) 100,000 shares of common
stock (par $1) with
rights to purchase up to
10,000 addi¬
tional shares.
Price—$2.90 per share; rights 30. Under¬
writer—E. F. Gillespie &
writer-a. *. Gillespie & Co, Inc., New York. Pay bank
loan, acquisition of small implement company and workin§ cspitsl,

8- Co.

INC.,

NEW
BOSTON

•

"BUFFALO

PHILADELPHIA

T?'q '

"TTTTT

•

YORK/

•

PITTSBURGH

CHICAGO

•

ST. LOUIS

'hA k

•

SAN

CLEVELAND
FRANCISCO

•

;

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4628

166

Volume

astute

The Business Outlook

proach to

merchandising

our

thinking

ap¬

opportunities. Smart

must

always

proceed
Both are re¬

Our peacetime production has
(Continued from page 6)
\
downward trend that began in the smart
merchandising.
for the very high also been supported by record ex¬ middle of last year. It reaffirms sponsibilities of trade leadership.
ports. In recent months, much has belief in the
In more practical
peacetime ; production
that we
stabilizing effect of
terms, better
Deen said and written on this sub¬
have witnessed. The war left us
voluntary price readjustments. It balanced
inventories,
improved
with enormous unfilled demands ject. Nearly three-fifths of these states that: "Price adjustments in turnover and restricted forward
for goods. We have
been very exports have been bought by each case, as it emerges, can commitments are still imperative
busy filling
up the pipe lines. countries not in the war-damaged smooth the progress to a sound requirements for safe merchan¬
Between the end of 1945 and May, areas of Europe and Asia. Deep and vigorous peacetime economy. dising under present conditions.
1947, we added about $12 billions inroads have been made into the As
backlogs
of
demand
are
to the value of business "inven¬ dollar exchange supplies of these worked off, as shortages are over¬
The
other
tories. At the end of May, total countries.
countries come by increased production and
business inventories were about lave been financing their imports as demand is less supported by

porate
the

large as at the end of "argely from our loans and grants1939. Much of the increase repre¬ in-aid. Regarding the English sit¬
sents price appreciation. Prices uation, the London "Economist"
have nearly doubled since 1939. remarks: "The nation is heading at
While there may be further in¬ breakneck speed towards a crisis
ventory building, it is clear that of dollar insolvency; its prospec¬
it will not be the important sus¬ tive deficit on external account
taining factor that it was in 1946 during the next twelve months is
of the order of £ 450
and early 1947.
:
million; it is
This inventory expansion has "iving, quite plainly and obviousbeen
accompanied by
a
large y, beyond its income." What addi¬
movement of goods into consump¬ tional props to our export trade
tion. Large and small businesses will be furnished by our govern¬
have purchased new equipment, ment remains to be seen. There
built new plants and made up seems to be quite general agree¬
as

much deferred maintenance. Buy¬

ment that substantial

ing for

these purposes has been
powerful force in making gen¬
eral
business
good.
Mounting
costs,
however,
have
already

come

substantial

caused

curtailment in

this

Much

await

favorable conditions for increased

will

phenomenal busi¬

our

1946

and

1947

has

guesses

physical

have
of

about

the

volumes

change

because

really adequate measure
the price change. It is estimated
no

expenditures of this type. While that total retail trade in 1946 was
the total expenditures will remain about
26% higher in dollar vol¬
large for some years to come, it ume than in 1945 and that the ac¬
reasonable to expect some
decline from the 1946 and 1947
seems

levels.

large

little said about

inventories.

consumer

part

Of course,

retail

our

sales

.represents goods that are prompt¬

ly consumed, but there are other
goods that are not quickly con¬
sumed and which become a part
of

gain in physical volume

about 15%.
volume

One hears very

tual

inventories.

consumer

ventories

Such in¬

much

now

are

larger

In 1947, the

retail

shrinking;

and

trade

is slowly
gains we

what

realize

this year
will probably
solely from rising prices.
During the first half of 1947, the

arise

number

been

sales

declining

check

transactions has

and

our

average

has

been rising.
This is a
disturbing trend because

highly
the

current

physical

ventory

volume

forces

take

losses

and

create

price

adjustments
are
not
promptly made, there will be dan¬
ger of

would have

toward

markets,

general

has

now

trade

They

are

there

under

some

ward

plea for
crease,

stock

magic

and

than

pressure

the
an

foot put for¬

carriers

emergency

issues

new

conse¬

their

rate in¬

and

large

were

were enlivened by the
bidding which attended the
offering of Detroit Edison Co.'s

$60,000,000 of

new

general

refunding mortgage bonds
Tuesday.
Four bids in all

1947.

for

the

issue

tender,
next

were

with

100.5779,

nearest

the

100.113,
under

out¬

iacute than it
There is

six months ago.

was

longer

a severe

short¬

age of many goods whether it be
pylons, white shirts, canned goods,
cleaning compounds, shortening
or
other products.
Many of our

customers

afford

can

await

plentiful supplies and bet¬
ter values.
Many are doing just

that.

Income

Retail

sales
normally bear
relationship to our aggregate
disposable income. In 1946, these

sales were much higher than we
would expect them to be on the

basis of their past ratios to dis¬
posable income. Sales in 1947 will
also be somewhat
high in relation
to disposable income. These ab¬

normally high sales in 1946 and
have been achieved in part

by extensive
and

large

use

past savings

consumer

credit.

"Credit sales in 1946," says the
1946 "Retail Credit

Survey," "in¬
high level

creased 38% to a record
of $22.5 billion dollars

•

Jarwise
credit

most

sales

account

the

occurred

transactions,

creased about

one

Dol-

increase

charge
which in¬

third from the

charge

count

ac¬

sales,

but remained con¬
siderably below the prewar level."
There has been further
expansion
of

credit
rate of

business

1947.

The

savings is decreasing, and
in.-

cur most recent official
survey

idicates

that

the

lower

income

families have diped into their
Jngs

price problem. This advertisement

monetary management, there now
appears to be no reason to fear

ness

stated

"Ours

make

purchases.

sav-

There

Jre limits to this kind of sales

pansion.

.v ~

ex¬

part:
is

production

mass

Prosperity

economy.

full employment.
ployment demands that
upon

units

made

depends
Full em¬
more

and

and
sold.

overwhelming evidence
that this cannot be accomplished
at the present price levels. We be¬
lieve that the present high na¬

tional

income

and

the

resultant

prosperity can be maintained in¬
definitely
at
somewhat
lower
price levels. Unless prices are

lowered,
ness

believe that a busi¬
recession is probable."
we

collapse

1920.

With

skilled

great price inflation. There have
been
repeated warnings of the
pending
readjustments.
Many
business
and

are

men

have

them

heeded

reasonably well prepared
It may well be that

to meet them.

the

readjustments now under way
yet to come will be found to
be of relatively small magnitude,
but it would be folly kto, ignore
the lessons of the past and to shut
and

eyes to the inherent dangers
replacement booms. We can¬
not throw caution to the winds

our

and

assume

that

nothing

will

transpire to interrupt our replace¬

We have since noted many price
ment prosperity. Whether the re¬
readjustments to lower levels, and
adjustments come in the last quar¬
especially, considerable improve¬ ter of 1947, or only become mark¬
ment in quality at the old prices.
ed in the first half of 1948 is far

The process of price readjustment
is

slow, however, and marked by

occasional

minor

counter

trends.

Nevertheless, what we said then
is still true, and the process must
continue
full

Unprecedented large 1 volume o::
'.1945. Installment sales
expanded
almost twice as fast as

helped to precipitate the sudden

There

Retail Sales and Disposable

1947

forthright appeal for busi¬
statesmanship in meeting the

such

are

maintain

the

peacetime production.

;

less

the

than

top,

the

100.449.

half

was

point

indicating

competing

that
were

groups

"During the first half of 1947,

the Midyear Economic Report
President,; "purchasing
power in the hands of consumers,
business buyers, government dis¬
bursing offices, and foreign takers
remained
adequate to take the
full product of American industry
and
agriculture without undue
accumulation of unsold goods or

says

the

general lowering of prices." The

Report

expresses

however,

about

deep concern,
the temporary

character of some of this extraor¬

important than to be pre¬
a change in trend. We
cannot run away from economic
storms, but we can reef our

busi¬

sails, batten our loose hatches
the price barometers and

watch

safe

one

course.

should leave this meet¬

boding

or:

apprehension/

Dollar
pretty

with some modest decline
possible in the last quarter. Prof¬
its are likely to be less than the
abnormal levels in 1946, but they
well,

can

war

spaced

sight
out

new

proj¬
rather

are

avoid

unnecessary congestion.
This

week,

market
sorb

for

example,

called

was

four

substantial

offerings.

And

shows

the

to ab^

upon

corporate

week

three

the

rather

Edison's

plans. Up for
also will be

bidding

Electric

Co.

common.

Destined

for

negotiated

134,034
of

via*.the

route, is an issue of
of common stock

Hooker

clue

market,

about

Electrochemical

Co.

mid-week.

Pacific Gas & Electric
Pacific

Gas & Electric Co. is
scheduled to register with the Se¬
curities and

Exchange Commission

shortly

cover

planned

is¬

$75,000,000 of new money
bonds to mature in 1980 and
carry
sue

2%%

coupon.

Bids

issue

to be ooened for this

are

Oct.

7, cr just a week
after the contemplated $40,000,000 of New England Telephone
on

Co. debentures

petition

sold in

are

Sept.

com¬

next.

At
least three syndicates
al¬
ready have indicated they will be
one.

First Bost. Oorp. Offers
Seaboard Finance Pfd.
An underwriting group headed
by The First Boston Corp. offered
to
the
public. Sept.
10 100,000

reoffering price of 101 Vs was
fixed for the issue giving it an
indicated
yield to maturity of
2.70%, with preliminary inquiry

Finance

Co.

holders

seemingly foreshadowing

Seaboard

ferred

brisk

demand.

Meanwhile

issue of $10,000,-

000 of Florida Power & Light

Co.
at
was reported to be moving
to investors in good fashion.

4Ms%
par,
out

preferred stock, offered

Big
of

One

the

industrial

largest

secondary undertakings in recent
months went through at the be¬

ginning of the week after having
"hung-fire" for several days.
Bankers brought out a block of

120,000

Harvester
close
a

Co.

International

common

after

Monday, priced

the

$83

share.
The

day it was an¬
operation had
been terminated. But according to
discussion in dealer circles the

following
that

nounced

entire block

the

has

Report

not disposed of.

was

that

approxi¬

mately 100,000 shares of the fore¬
going total were placed and the
deal closed out on that basis.
Tennessee

Public
Gas

Gas

& Transmission

offering of Tennessee
Transmission Co.'s $40,-

000,000 of first mortgage pipe line
bonds,
due
1967, plus 100,000
shares of $100 par preferred, was
evidently

assured of

good re¬

ception.

-dealers appeared
anxious to get hold of those se¬
At any rate

curities

for

distribution,

pre¬

finding
a
wide
customer interest in both issues.
Proceeds
from
the
sale will

convertible

preferred

stock, subject in part to exchange
rights tendered by the company to
of outstanding old pre¬

stock.
The
offering Js
being made at $53 per share plus
accrued dividends to yield 4.91%.
Each

new

.preferred is

convertible,

on the ;basis of its
value of $50, at any time,

stated

into

stock

common

pany

Closed

Secondary

$2.60

new

price of $18.18
the

initial

the

per

the

com¬

conversion

share.

preferred

shares,
being offered by the
company in exchange for its out- 1
standing series A and series B
cumulative
preferred stocks on
56,184

new

are

of 63/100 share of

the basis

new

preferred for each share of series
A preferred and 40/100 share of
new
preferred for each share of
series
with

B
a

dends.
offer

preferred,

cash
The

company's

expires

The

each

case

divi¬
exchange

adjustment of
on

cash

Sept. 19, 1947.

to the
issue of the
100,000 shares of new convertible
preferred stock together with the
proceeds from the proposed sale
net

from

company

proceeds

the

to The Mutual Life Insurance Co.

of New York of

$1,250,000 aggre¬

gate amount of 4% subordinated
notes will be used to retire any

unexchanged old preferred stock
and for addition to working capi¬
tal.

The company

is engaged in the

personal- finance business, pri¬
marily making small loans to in¬
dividual borrowers and to a les¬

purchasing retail in¬
contracts originat¬
ing with dealers in automobiles,
place the company in funds to be refrigerators and other appliances.
still be better than any pre¬ used
in liquidating
loans con¬
Giving effect to the sale of the
standard if we work hard to tracted earlier
to finance • con¬ new convertible preferred stock

make

them

so.

Our fundamental

here is neither to under¬
state nor to overstate the adjust¬
ments that lie ahead. It is rather

purpose

It points out to stress the need for a more in¬
that the per capita real incomes
of congfffflers is
continuing the formed, a more cautious and a

dinary ' demand.

well

ing with any feeling of deep fore¬
sales will doubtless hold up

lines.

same

less

steer

now

in the field for this

thinking pretty much along the

pared for

ness

ects

winning

topping

offer

interesting

received

The lowest of the four bids

factors

the

2%%

new

and

factors and
formula that

change

it is

glance at the

calendar, that such

market

brisk

in advance just when

know what

per¬

Things

been said

1946

powerful

no
us

appear

may

the

quence of the poor

they will have spent their force,
nor

lull,
itself

well taken.

temporary factors have had a
large part in sustaining produc¬

will tell

secondary equity offering

portray the uncertain foundations
of our current prosperity. Purely

and

summer

account

mark time and, if anything, ease
a bit more, with railroad bonds

impor¬

Temporary Factors

tion

good

Although

published.

Enough

of the

continued to do little

today" than it was last Janu¬
when the first Report was

ary

market, getting
gradually rising tempo

formance of the seasoned markets
this week.

reces¬

look for better or for worse. In
they have been in several
peacetime production cannot be
years.
The large extra demands maintained if we continue to sell a sorely troubled economic and
created by restocking the pantry
lesser quantities at higher prices. political world, long range guess¬
ing is hazardous. All judgments
shelves, rebuilding depleted ward¬
are
The "Lower Price" Appeal
necessarily qualified by the
robes and replenishing household
unknowable and the unknown.
"supplies have been fairly well met
Early in April, 1947, my com¬
by many months of high produc¬ pany, in a bold dramatic adver¬
We do know that vast markets
tion and record sales. While there
tisement, launched a broad appeal still remain. They will open up
are
still
large unsatisfied
de¬ for more reasonable
prices. Per¬ as, if and when prices and other
mands, the urgency to buy many haps never before had a great conditions are favorable. As yet
types of goods is now far less corporation in our
we face no credit strain,
such as
industry made

than

gave

quarter, the Report
emphasizes that restraint in pric¬
tant

issue

despite none-too-encouraging

second

ing policies is "even

new

away to a
in the wake

which

business

into

300,000 shares of San Diego Gas &
The

sion." While prices levelled off in
the

issue

competitive

cumlative influence

At all events

to note, from

Detroit

simultaneous collapse of

number

crowded

given period of time.

control.

worsening economic situation
through curtailed production. If

was

physical

market

over

contemplated

Biggest* is the $75,000,000 of
Duquesne Light Co. first mortgage
bonds, originally scheduled this
week, but held off in deference to

competition reappears, sellers
who
overstay
the
market
are
likely both to suffer serious in¬

gotten

all

large offerings in the making.

markets, it is necessary to make
substantial price reductions be¬
fore

have

that

calendar

use

liquid assets and credit,
sellers'
markets
begin to fade.
Such
adjustments then become
imperative. To avoid a price col¬
lapse and the demoralization of

solely from the rise in prices.
Unfortunately, we can only make

gent need has been met and busi¬
afford

trade

future.

come

crude

can

export

near

gains in

ness

plans for increased spending of
this type. Much of the most ur¬
ness

record

in the

curtailment

the

issuers

idea

financing must be

obvious reasons

twice

(1037)

sumably

struction and for other

corporate

purposes.

writers

and

degree,

stalment sales

the

company's outstanding

lization will consist

Adhering to Schedule

Evidently

ser

the
under¬
prospective cor¬

both
the

of funded
of new

capita¬

of $5,500,000

debt; the 100,000 shares

preferred stock and 787,687
stock.

shares of common

(1038)

THE

COMMERCIAL

FINANCIAL

CHRONICLE

Thursday, September

Indications of Current Business
The

following statistical tabulations

shown in first column
AMERICAN

IRON

Indicated

AND

steel

STEEL

operations

Equivalent to—
Steel

ingots and castings produced

AMERICAN PETROLEUM
Crude oil

Crude

(net

Week

.Sept. 14

tons)—

.Sept. 14

output

*■

that date,
Year

Ago

92.4

1,475,200

Latest

AMERICAN

88.5

1,630,900

1,559,700

—

Aug. 30

(bbls.)..

—

Aug. 30

.Aug. 30

(bbls.).

.Aug. 30
Gas oil and distillate fuel oil
output (bbls.)
.Aug. 30
Residual fuel oil output
(bbls.)
.Aug. 30
Stocks at refineries, at bulk
terminals, In transit and In pip« lines— f
Finished and unfinished
gasoline (bbls.) at
Aug. 30
Kerosine (bbls.) at—*—.
Aug. 30
Gas oil and distillate fuel
oil (bbls.) at—
--——Aug. 30
Residual fuel oil (bbls.) at
—Aug. 30
—

—

....

5,156,850

5,152,800

2,091,000

2,043,000

5,892,000

6,004,000

8,674,000

8,582,000

83,915,000

85,645,000

(M therms)
Natural gas sales
(M therms)

86,813,000

19,981,000

17,665,000

*53,018,000

48,574,000

*54,688,000

53,107,000

19,348,000
53,858,000
53,037,000

84,105,000
20,723,000
54,808,000
55,242,000

5,271.000

16,517,000

AMERICAN

sales

gas

Mixed gas sales

Total

PETROLEUM

domestic

production

1,945,809
1,722,067
146,057
77,685

(bbls.

gasoline

Revenue freight loaded

CIVIL

ENGINEERING
U.

ENGINEERING

—

———
—

—
—

State and municipal

COAL

OUTPUT

(U.

BUREAU

EDISON ELECTRIC

—

(COMMERCIAL

$122,766,000

90,272,000
32,494,000
28,884,000
3,610,000

4
4

.Aug. 30

12,030,000
1,200,000
122,600

275

INDUSTRIAL)—DUN

Sept. 6

4,720,659

$136,943,000
84,413,000

$109,768,000

$86,065,000

47,943,000

58,432,000

52,530,000

61,825,000
45,245,000
16,580,000

27,633,000

32,775,000

19,755,000

(E.

59,000
8,703,000
5,625,000

169,265,000

172,944)000

refinery

11,700,000

1,194,000

12,516,000

1,126,000
131,300

1,274,000

220

281

zinc

smelter

Stock

1—

(tons
end

orders

period

end

grades

—

-Sept. 2
.Sept. 2
Sept. 2

—

*—

———

—Sept.
—Sept.
.Sept.
—Sept.
Sept.

,—

4,939,801

CIVIL

4,184,404

State
60

3.19141c

$37.10

3.19141c

Group..
Industrials Group

$36.38

$28.13

$37.83

$41.67

period

and

RECORD—Month

21.425c

Month

$413,494,000
222,772,000
190,722.000
146,324,000

(ASSOC.
July:

AMER.

—

14.150c

80.000c

21.1756
80.000c

15.000c

represented-,-,

15.000C

14.800C

8.250c

14.800c

10.500c

8.100c

10.500c

8.250c

10.500c

112.42
116.80

122.55

122.05

COAL

117.00

121.67

117.20

121.88

119.82

116.61

116.80

109.60

117.00

109.79

OUTPUT

112.19

312.37

———»—

MOODY'S COMMODITY INDEX.

112.56

118.40

120.22

118.60

120.43

118.60

120.63

1.52

1.51

2.81
2.57

114.27

1.54

2.56

2.65

.Sept. 9

ASSOCIATION—WHOLESALE

Anthracite

(net

RESERVE

3.05
2.74
2.64

—

Livestock
—*—
—

Textiles
Metals

2.80

2.79

2.81

2.76

2.55

2.64

2.66

and

;

Fertilizer materials
Fertilizers
Farm

—

drugs..

machinery

—

All groups combined

NATIONAL

PAPERBOARD

Orders received

Production

2.80

(tons).

3.04

3.06

.Aug. 30

.....

.Aug. 30
Aug. 30
Aug.30

—

226.1
187.6

261.0
303.2

277.9
256.1

2.94

Durable

2.72

2.63

2.72

Nondurable

2.62

424.8

Metal

and

-.4v_.lt

Sept. 5

Aug. 30
Aug. 30

products!
—I
J

metal

Building materials

222.0

186,6
255.8

312.7
268.9

188.3

187.8

307.0

344.4

182.4

180.1
165.8

216.2

220.5

159.1

158.8

210.9
159.1

j.—,j—1„

goods

i-ui.'

„

12,341,000

11,623,000

6,426,000
5,915,000

5,758,000

231.0

230.4

149.7

130.8

135.5

221.3

207.4

—

151.3

—

—1—

goods

135.0

127.1

manufacturing

(

-I—

——

1——
——

AND

HOURS

ESTIMATE—U.

LABOR—Month of July:

115.4

206.4

172.3

All

121.4

425,412

173,527

100

438,848

goods

140.1

139.3

154.0
181.7
172.1

,.AUg.
Aug.
Aug.
Aug.
.AUg.
—Aug.
Aug.

...

product*!!

goods

140.1

114.2

149.8

179.3
117.6

131.9

115.9

153.5
181.4

172.3

182.3
140.1

114.1

147.0
179.1
117.4

131.9

115.6

289.1

271.6

237.0

15,317,000
7,848,000
7,469,000

15,237,000

14,371,000
7,172,000

-$49.37

•

proSurtJ

commodities Sthe£ thftn J*"®
thJn
tNo

—I

Products and foods

market—previous

quotation 21.225c.

Aug.
Aug.
Aug.
Aug.
.Aug.

30
30

•'

All

7,781,000
7.456,000

149.9
148.9

147.9

137.3

167.7

1—

52.41

52.95 '

45.89

45.4T

J,
"

goods

1_,1

39.9

40.0

r—_

40.6

J7T

; •'

39.8

$123.4

goods

—J

———

1.153

—^

128.2
157.1

168.0

FACTORY EARNINGS
—Month-of July:

174.5
139.0

176.6

industries

Average

96.7

113.6

115.2

109.7
146.1

149.5
148.3

147.4
136.6

147.2

1.46.0

144.8"
134.7'

•.

1.141

140.1

1.303

(U. S. DEPT. OF
LABOR

Average weekly earnings

150.9

39.8

$1,227

goods

Nondurable

40.3'

4—j

1.310

136.1

180.8

165.6

-7j 199,000

manufacturing 1.1

(all

———

manufacturing

———

_i—

wleekly hoursw-———l——1

$49.25
-

Average houxly earnings-—

*$49.37
•

39.9

$1,234

132.8

*403
-

$1,227

98.1

114.0
101.6

MOODY'S
-,.

WEIGHTED

142 6
111.3

124.6
121.9

111.0

AVERAGE

YIELD

,200 COMMON
STOCKS—Month of August:

Industrials
Railroads

167.9

262.8

—,——————*

Hourly Earnings—

564,299

151.3

116.8

WEEKLY

manufacturing

Nondurable

Durable

131-4

312.2

353.8

DEPT. ! OF

•

—

goods

Durable goods

100

141.3

116.9

125.7

274.4

Nondurable

160,074
173,064

494,554

.162.4

365.4

.I-.

manufacturing i_„

f ' 'Durable

All
206,732

•

$49.25

Earnings—

120.7

135.5
207,1

149,464

319.4

goods

AVERAGE

127.5

127.1

177,712

129.1

...

manufacturing

FACTORY EARNINGS

177.4

129.8

208.5

167,268
176,588

141.9

178.0

129.1

5,865,060

150.6

179.5

——

Durable goods —
Nondurable goods

124.5

149.8
,

Raw materials

sure.

—

,11——

143.4

183.3

Special groups-

—,

goods

turing industries—

All

•

154.2

Miscellaneous commodities
II!

Manufactured

12,397,000
6,483,000
5,"914,000

goods. —————1—J.
Estimated, number of.
employees in manufac-v

184.7

163.4

workers

Nondurable

208.1

249.9

248.2

246.0

257.2

182.0

259.0

production

manufacturing

Durable

224.5

182.4

Aug. 30

products

Chemicals and allied

Housefumishlng

goods

Durable

327.4

LABOR—1926=100:

lighting materials
—

242

....

Farm products
Foods
Hides and leather
Textile products
Fuel and
MAf»l

DEPT.

290

*219

variation

Employment indexes—

AtERAGE=100

♦287

236

{ (FEDERAL

adjustment-'—i.—_i_i„—

number

2.73

419.7

SALES

manufacturing industries—
manufacturing •

3.03

164.2

OIL, PAINT AND DRUG
REPORTER PRICE
WHOLESALE PRICES—U.
S.
All commodities

STORE

Hours-

—

INDEX—1926-36

17,991,000
8,640,000

All

ASSOCIATION:

—

20,989,000
11,844,060

■

21,143,000

^
—

seasonal

Estimated

2.77

3.17

3.18

(tons)....

Percentage of activity
Unfilled orders (tons) at

11,849,000

4,994,000
573,200

August-

EMPLOYMENT AND
PAYROLLS—-U. S. DEPT.
•OF LABOR—Month
of June: > '.
v

COMMOD¬

-—

materials

5,428,000
539,900

tons)—Month

lint

Payroll indexes—,"

Grains

Chemical

*427,100

32,700,000

1.61

All

429.7

Building

*4,084,060'

63,029,671

SYSTEM)—(1935-39 Aver.=l60)

Nondurable

Sept. 6
Sept. 6
Sept. 6
—Sept. 6
Sept. 6
—Sept. 6
.——..Sept, 6
—-——
.Sept. 6
—Sept. 6
Sept. 6
——.mm—Sept. 6
———,
Sept. 6
Sept. 6
Sept. 6
—Sept. 6
Sept. 6

Miscellaneous commodities

80.43

$54,905,884

__j

—Month of August:
Adjusted for seasonal

All

—.—

78.93

$72,653,480
60,201,057
35,500,000

60,958,461
37,000,000

——„;

"(net tons)—Month

DEPARTMENT

GROUP—1988-89=100:

oils

Farm products

Fuels

542,219,369
'

$74,948,797

—-

(BUREAU OF MINES)—

Production, bales

Foods

Cotton

227,361

$674,111,738

282

—

112.00

118.20

Acreage

117.60

109.97

Sept. 9

Sept. 9
Sept. 9
Sept. 9

——

and

221,374
$696,908,689
550,057,087

COTTON ACREAGE AND
PRODUCTION—U. S.
DEPT. OF
AGRICULTURE—As of Sept, 1:

122.09

120.22

Sept. 9

Utilities Group

Fats

$524,238,000 $541,325,000
253,321,000
339,100,000
270,917,000
202,225,000
194,180,000.
160,991,000
76,737,000
41,234,000

78.73

Pennsylvania

117.80

122.09

120.02

2.82

_—

of August
Beehive Coke

122.14

119.82

3.19

227,361

—

52.000c

14.800c

2.66

INDEX

44,398,000

railway operating income, before
charges
income after
charges (est.)
—,

Net

16.300c

80.000c

15.000c

Sept. 9
..M.

ITY

237,613
41,595

RRS.)—

operating revenues——.
$705,361,414
operating revenues
555,361,881
Operating ratio—per 6ent___,_i„—' '
-

Net

NATIONAL FERTILIZER

44,955

—

21.225c

21.400c

——,—

51,856

Municipal—
—

RRS.

Without
*

Industrials Group

59,752

59,737
183,718

CONSTRUCTION—EN¬

Total

Bonds

Average corporate

Railroad" Group

69,128

40,028

(tons)——
w

NEWS

Number of miles

$19.17

MOODY'S BOND YIELD DAILY
AVERAGES:

Public

66,852

Federal

2.70711c

$37.10

$37.83

21.225c

Sept. 9
Sept. 9
Sept. 9
Sept. 9
Sept. 9
Sept. 9
Sept. 9
——-Sept. 9
Sept. 9

Utilities

282

2,312,058

.59,653
190,917

(tons),

Construction,,
Private Construction
Public Construction
——x_,-j.

CLASS

—

*282

——

Group

Aaa

lbs.) L_1,1__

ENGINEERING

Total

4,874,172

—-Sept. 3

corporate

Govt.

i,.1..

*243

Taxes

——1—

8,939,000

'2,555,645

—

282

2,522,689

Total

—.

Public

(tons

i_.

2,000

Railroad

"1,800,000

ASSOCIATIONS—

output, "all

2,000 lbs.)

Shipments

129,100

MOODY'S BOND PRICES DAILY
AVERAGES:
U. S. Govt. Bonds

5,557,000

AMERICAN ZINC
INSTITUTE, INC.—Month
August:

2,714,000

BRAD-

tin

Average

158,570,000

i„

of motor carriers
reporting—,
Volume of freight
transported (tons)—,

QUOTATIONS):

(New. York/ atLead (New York) at
Lead (St. Louis) at
Zinc (East St. Louis) at

4,238,000

Number

copper—

Domestic

(bbls.)

9,351,000 !
150,000
6,880,000

——„

—.

156,391,000
146,890,000

7,628,000

PRICES:

166,416,000
156,024,000
16,342,000

24,919,000

*12,000,000
*133,300

143,614
72,509

3,711,000

—

Sept. 4

Pig iron (per gross ton)——.
Scrap steel (per gross ton)

98,115

■

AND

(per lb.)

METAL PRICES

stocks

GINEERING
July:

INC

steel

Export

Sept.
Sept.
Sept.
Sept.
Sept.

INSTITUTE:

IRON AGE COMPOSITE

Straits

Increase—all

AMERICAN TRUCKING
Month of July:

—

Electrolytic

707,190

—_

Unfilled

SALES—FEDERAL RESERVE
AVERAGE=100

Electric output (in 000
kwh.)—

Finished

649,195

—

STORE

SYSTEM—1935-39

STREET,

908,440

1.'799,046
1,582,923

165,179

.Aug. 30
.Aug. 30
.Aug. 30

—

921,591

Slab

(tons)—,
Pennsylvania anthracite (tons)..
Beehive coke (tons)

FAILURES

900,895
682,753

Of>MINES):

Bituminous coal and lignite

DEPARTMENT

925,732

701,227

NEWS

construction——

Private construction
Public construction

Aug. 30
Aug. 30

(number of cars).—.

CONSTRUCTION,

RECORD:
Total

(number of cars)

freight rec'd from connections

2,110,831
1,847,537
-

163,483,000
152,978,000
10,455,000
t.
50,000.

output (bbls.)
1
Crude oil imports
(bbls.),
Refined products
imports (bbls.)
Indicated
consumption—domestic and export
(bbls.)
-

Revenue

Ago

gal¬

output (bbls.)_——
output (bbls.)

Benzol

ASSOCIATION OF AMERICAN RAILROADS:

Year

INSTITUTE—Month

lons each)
Domestic crude oil
Natural

(M therms)

therms)—

of June:,

Month

July:

Manufacturing

5,087,600

5,217,000
16,539,000

ASSOCIATION—For

Total gas sales

4,833.450
4,901,000
15*405,000
l,84u,000
5,374,000
8,357,000

5,209,000
16,753,000
1,910,000
5,919,000
8,962,000

GAS

Month

Ago

93.2

1,616,900

month available (dates
are as of that
date) :

of quotations,

cases

Month

Week

or,

INSTITUTE:

output—daily average (bbls. of 42 gallons each)
to stills—daily
average (bbls.)——

Gasoline

84.3

month ended

runs

Kerosine output

Latest

capacity).

Activity

production and other figures for the latest week

either for the week

are

INSTITUTE:

(percent of

cover

11,19^

Utilities

(125)
(25)

.(25)

Banks .(15) '

Insurance

—

'L_,
I

(200)

*Revised figure.

■

1—
1

" !

5.0

4.8

7.0

—————or—

(10)

Average yield

>,'

L—

6.7

5.6

-5 0

5.1

4.2

4.4

3.8

4.*

3.8

3.0

3.5

$.2

5.1

4.9

3.9

folume

Number 4628

166

THE

Seltsam Co. Adds Maris

COMMERCIAL & FINANCIAL
CHRONICLE

Tennessee Gas & Trans.

beaded

affiliated with Selts-

become

tan

West Sixth

& Co., Inc., 204

Stone

Corp.

Webster

and

White,

treet.

EATON

ARKANSAS WESTERN

Dividend Notice

Trustees

($.10)

Common Stock
of Directors of Arkansas
has declared a

dividend

twenty

business

cents

•

EATON

15,

HOWARD

BALANCED
The

Trustees

dividend

($.20)

BRITISH-AMERICAN

tember

have

and
over

accrued

4.12%.

securities, amounting
approximately $50,254,000, will
used

connection

with

the

pipe line system for the trans¬
portation and sale of natural gas

payable Sep¬
to
share¬

at wholesale.

distance

The

line, covering a
1,364 miles, extends

1947.

|0TICE OF DIVIDENDS TO HOLDERS

dividend notices

second

Ordinary

lie

dividend

interim

Stock

the

for

[ncome Tax,- will he payable

Dividend

The Electric Storage Battery

dividend

this

ain

Coippany off New York, 32,
Street, London, E. C. 3.,

Oust

188th Consecutive

The Directors

Searer

ave

he *

Common

September 30, 1947,

1947 to

the

clared

Stock, payable
stockholders
of business op

not

dividend

September 30, 1947,

at the close

September 15, 1947.
A. B. TUTTLE,

J
New

de¬

Stock, payable October

of business

H. C. ALLAN,

was

the $3.50 Cumulative First

1947, to holders of record

of 87V2

share, for the period July 1,

Preferred

September 15,1947. Checks will be mailed,

exchanged
for Talon Nk>. 4 hut

have

who

Talon No.

the

of- rqoprd At the close

Warrants

from

Accumulated Surplus of the Company a
dividend of seventy-five cents (J.75) per

(excluding Saturday) before

tayment is made.
Holders of Stock

cents per

examination five clear business

lays

declared

have

held today,

tors

Quarterly Dividend

ambard
or

First Preferred Slock

Guaranty

Coupon No. 200 with the

Treasurer

York, N. Y., September 5, 1947

Secretary and Treasurer

deposited Talon No. 3 with
Guaranty Trust Company of
accord-

las

arrangement which
been announced in the Press,

ire

notified

rill

with

the

Coupon No. 200
detached from the corre-

Philadelphia 32, September 5,1947

the Company in London
the

dien
ire

dividend

which

and

they

entitled is paid.

The
>f

usual

THEATRES

Saturday) before payment is made.

180th Consecutive Dividend paid

'THE'Board of Directors has declared a
A
quarterly dividend of 37*£c per share
on the
outstanding Common Stock of the
Company, payable on September 30th,
1947, to stockholders of record at the

by The Texas Company and its
predecessor.

business,., on

September

13tb,

1947. Checks will be mailed.

CHARLES

C, MOSKOWITZ, "

Vice President & Treasurer

OFFICE

LOUISVILLE
The

GAS

ELECTRIC COMPANY

AND

Board of Directors of Louisville Gas and

Company (Delaware) at a meeting held
September 5, 1947, declared a quarterly divi¬
dend of thirty-seven and one-half cents iSV/2c)

SY ORDER,

E. G. LANGFORD, Secretary.

September
the

16,

same

cents

(25c)

1947.
meeting a
per share

dividend

KNOUREK,

Treasurer.

York

Honduras

Rosario

Mining Company
120 Broadway,

CANADIAN PACIFIC

COMPANY.
The

meeting jof the. Board
cent,

cents

(fifty

of
of

per

on
the Ordinary Capital
tock in respect of the year 1947
ras declared
payable in Canadian

hare)

iinds

November

1947,

New York 5, N. Y.

DIVIDEND NO.

on par

Board of Directors of this company,

Cents ($.50) a share on
capital stock of this Com¬
September 27, 1947, to
stockholders of record at the close of busi¬
ness on September 17, 1947.
^
1947,

'•
,

«•

LANGLEY, Treasurer.

Ihe United Corporation
Board

cause
of
income
derived
from
sources other than railway oper¬
ations,
,

He added

ings from

traffic

that while gross earn¬

freight

had

and

shown

passenger

THOMAS H. STACY,
Secretary,

September 4, 1947

Wilmington, Delaware

toe

higher wage rates and ad¬
vances in prices of materials and

supplies had

net

resulted in

lower

was

company will

FINANCIAL

HELP

have

firm

name

is
of

commission
Box

Plywood
Corporation
quarter ended July 31, 1947, a cash
of 20c per share on the outstanding
stock of
this
corporation has
been

payable

the

October

record

20,

the

1947,

stock¬

business

1947.

address is

OTTINGER,

N. Y., September 3,

Secretary.

1947.

of the Cor¬

poration payable on October
close

of record

business

J. MILLER

September 10,

1947

course

some

book¬

keeping and office experience,
seeks position with securities

firm.

Compensation second¬
to

ary

opportunity.

Box

S911, Commercial & Finan¬
cial

Chronicle, 25 Park Place,

New York 8, N. Y.

the right to effect transfers on the hooks
of the presently outstanding preferred stock of

Company

for the determination of
Preferred Stock

and

holders of $7 Dividend Series

and $6 Dividend Series Preferred Stock en¬
titled to receive distribution of the new securi¬
ties to be issued
Reorganization.

pursuant

Plan pf

the

securities
to which you may be entitled unless your
stock is in proper name and your address
is correct on the records of American

SECURITY ANALYST

You will not receive the new

Bank

and

Trust

jfompany of

as of October 2,11147. You should
promptly as these securities may bo
issued on or shortly after October 8,11147.
Stockholders of record will receive, promptly

upon

the Plan

being made effective, written
mail as to the procedure to be

preferred stock
send in any stock

followed

in exchanging their

for

securities. Do not

new

certificates at this time except

of effecting
address.

for the purpose

transfer to the proper name and

INTERSTATE POWER

COMPANY

September 10, 1947j'

Experienced,

knowledge

underwriting procedure.
Good

writer.

tion

with

ganization
ices of

Seeks

connec¬

progressive

requiring

man

analytical

or¬

serv¬

possessing sales,

and

promotional

ability. Box M 94, Commer¬
cial

Financial

25 Park

Chronicle,

Place, New York 8,

N. Y.

REDEMPTION NOTICE

NOTICE OF REDEMPTION
To the Holders

given that Wentworth Manufacturing Company,
provisions of its amended Certificate of Incorporation and
pursuant to resolutions of its Board of Directors, has elected to redeem
and will redeem, on October 15, 1947, all of the outstanding shares of its

Notice

hereby

pursuant to the

Convertible Preferred Stock.

Accordingly, there will become due and payable on October 15, 1947,
teach share of the Convertible Preferred Stock of the Company called

for redemption, upon the surrender of ..certificates therefor at the office of
Chemical Bank and Trust Company, Redemption Agent, No. 165

Broadway, New York 15, New York, $17-50 per share, plus accrued and

unpaid dividends thereon to the date fixed for redemption, to wit, 1
share.
for said shares,

pany at the rate of two shares of
Convertible Preferred Stock, upon
to

Chemical

Bank

and

such Common Stock for each share of
surrender of certificates for such shares

Trust Company

(Corporate Trust Depart¬

ment), 165 Broadway, New York 15, New York, transfer agent
stock, on or before the close of business on October 6, 1947.
Wentworth

for the

Manufacturing Company will before the date of redemp¬

deposit in trust for such redemption with Chemical
Trust Company all funds necessary for such redemption.

Company
has

declared

divi¬

cents (50£) per
share
on
the
outstanding
common stock
of the Com¬

September
1947, tpr stockholders of

pany,

27,
ness

WALKER

extra

dend of fifty

record

September 20, 1947.
-

Completing night
accounting, with

tion

The Board of Directors of

the

.(he

Wentworth Manufacturing

YOUNG MAN

certain (1) that

Bank and
As provided

Incorporation, except as to (i) the above
mentioned right of conversion before the close of business on October 6,
1947, and (ii) the right to receive from Chemical Bank and Trust
Company, from the funds so deposited in trust, the redemption price for
said shares, without interest, the shares called for redemption as aforesaid
will after such deposit no longer be deemed outstanding. The right to
receive dividends thereon will cease to accrue from and after October 15,
in the amended Certificate of

THE Board of Directorsdivi¬
has
declared
quarterly

1947 to stockholders

Chronicle,

provided in the amended Certificate of Incorporation and the certifi¬
holders of the Convertible Preferred Stock called for
redemption may, at their option, at any time up to the close of business
on the tenth
day prior to the date fixed for redemption, convert their
shares into shares of Common Stock of Wentworth Manufacturing Com¬

United States

New York.

radio-keith-orpheum
corporation

the Common Stock

Financial

Place, n. Y.

SITUATIONS WANTED

in your name,
authorized agent, and (2)

correct

basis, complete facilities.

711,

NOTICE

on file with
Company
LaSalle Street, Chicago
Agent.
because the Board of
resolutions providing in
effect that if Alternative I or Alternative II
of
the Company's Plan of
Reorganization
dated August 15, 1945, as amended January
21, 1947, is declared effective, and if the effec¬
tive date of said Plan is declared to be Octo¬
ber 3, 1947, as is presently contemplated, then
5 P.M. Chicago Time on October 2, 1947,
shall be the record date for the termination
your

trader-safes-

Salary and liberal

holders

V
dend of 30 cents per

Park

over-the-counter

experienced

with clientele.

man

registered
an

WANTED

established

wants

INTERSTATE POWER COMPANY?
stock

payabl^

at4he

and terminate.
Convertible
for redemption as aforesaid will be permanently
business on the last business day preceding said

1947 and all rights of the holders
The books

the

close of

McDERMOTT,

cease

of the outstanding

redemption date.

By order of the Board of Directors
WENTWORTH MANUFACTURING COMPANY

Checks will be mailed.
JOHN E.

of said shares will

for the transfer of shares

Preferred Stock called
closed

of busi¬

September 16, 1947.

TRADER-SALESMAN
Long

ARE YOU A PREFERRED STOCKHOLDER OF

the

order

1947,

outstanding funded debt of $89,660,000, of which $74,660,000 are

cates

declared

Secretary

railway income..

financing the

expansion
program, it is contemplated that
the company will issue an addi¬
tional $15,000,000 of bank loans.

For the

30,

$6,085,634.
completion of the present

Upon

present

growing

June

the period

the

per

common

RKO

increase

compared with the previous year

The

September 15, 1947.

ness

For

Secretary

Neal, Chairman and President,
stated that the payment of this
dividend was possible solely be¬

Directors

Corix>ration has declared a
dividend of 75c per share, accrued
at July 1, 1947 upon the outstanding
$3
Cumulative Preference Stock,
payable September 23, 1947 to the
holders of record at the close pf busi¬

SIMON

Preference Stock

Cumulative

The

United

dividend

Frederick Bramley,

September 8, 1947.

complete

the company's
operating revenues
totaled $19,432,065 and
gross in¬
come for

stock.

common

Convertible Preferred Stock

October 10,

^ Following the meeting Mr. W.

ended

2,100,000 shares

Wentwortii Manufacturing Company

By order of the Board.

Montreal,

months

$15,000,000

Treasurer

Fifty

payable

hareholders of record at 3 p.rm
.September 22, 1947.

the

L. H. Lindeman

August 8, 1947

the outstanding

pany,

supply

stock transfer books will remain open.

380

meeting held this day, declared an
interim dividend for the third quarter of
at

Erectors held today a dividend
per

share or two per
value of the shares
of The Texas Company has., been dedared this day, payable on October 1,
1947, to stockholders of record as shown
by the books of the company at the close
of business on September 10, 1947. The
(2%)

September 10, 1947.
v

Dividend Notice

and

of -twenty-

was declared on
of the Company,

Egham, Surrey.
New

share oh the Class A Common Stock of the
Company for
the quarter ending August 31,
1947, payable by check October 20,
1947, to
stockholders of record as of the close of business

RAILWAY

day

per

company

demand of its customers.

per

the
Class B Common Stock
for
the quarter ending August 31, 1947, payable by
check October 20, 1947, to stockholders of record
as
of the close of business September 16, 1947.

DATED 19th August, 1947.

a dividend of 50tf per

cent

Electric

five

tusham House,

is
actively engaged in increasing the
capacity to about 600,000 MCF

instructions by

EVERYWHERE "

September 3rd, 1947

Limited, Savoy Court, Strand, Lonlon, W. C. 2., for examination five
dear
business
days
(excluding

THE TEXAS COMPANY

dividend

half-yearly

per

Chicago

Loews Incorporated

the 5% Preference
Stock' (less Income Tax) for the
fear ending 30th
September next
will also be payable on the 30th
September 1947.
Coupon No. 88 must be deposited
with the National Provincial Bank

2\/z%

the

gas

act

that

ponding Talon No. 4 and cancelled
iy

At present

National

(ew York in New York, in
mce

natural

Chicago, 33 North
90, Illinois, Transfer
This is important
Directors has adopted

At the meeting of the Board of Direc¬

deposit

must

day.

bonds

bank loans; 100,000 shares of
4.10% cumulative preferred
stock;
100,000 shares of 4.25% cumula¬
tive preferred and

American National Bank and Trust

company

|0th September 1947.
Holders of Bearer Stock to ob-

200,000 MCF

mortgage

are

OF AMERICA

system, put into
1944, was initially
deliver approximately

designed

your

CORPORATION

year

Stock, free of United Kingdom

San Salvador Field in
Grande Valley of Texas

operation

that

RADIO

hiding 30th September 1947, of
Lne shilling for each £ 1 of Ordiary

the

Hio

into West Virginia.
The company's

STOCK WARRANTS TO BEARER
A

(1039)

If so, wc urge you to make

fit federal Street, Bostoa

OF ORDINARY AND PREFERENCE

the

cents

holders of record at the close
of
business
September
15,

rOBACCO COMPANY, LIMITED

per

from

The company owns and operates

"T947,

25,

and

first mort¬

expansion of the company's pipe

declared

twenty

share,

1967,

Co.

bonds, 3% series
100,000 shares of

line system.

FUND

line

The net proceeds from the sale
the new

Eecfcnl Street, BosUmi

pipe

dividends, to yield

share-

the clost

new

$40,000,000 of Tennessee

$103

President

BAXTER,

centt

September

being offered at 102^4 and accrued
mterest, to yield 2.85% to matur¬
ity. The preferred stock is priced

declared

4.25% cumulative preferred
stock,
$100 par value.
The bonds are

1947.

per

25, *1947,

,of

due

ten

ho.ders of record

share, payable September
30, 1947, to its holders of common
stock of record September 15, 1947.
Checks will be mailed from the First
National Bank of Chicago on or about
September 30, 1947.
(20c)

issue

Gas Transmission

share, payable Sep*

briber

Western Gas Company

quarterly

have

dividend

investment

public September

gage

FUND

COMPANY
The

Board

Co.

HOWARD

STOCK

The

dividend notices

CAS

the

Securities

Weld

group

banking firms which offered

(tOPEKA, KANS.—Den Maris Bonds and Pfd. Offered
U

By Alvin A. Sopkin, President
Fall River,

Massachusetts,

Secretary.
i

September 5, 1947.

& FINANCIAL

THE COMMERCIAL

CHRONICLE

Thursday, September 11,1947
quently

What the
V

\
i'1;

from the Nation's Capital

i I

Don't be thrown off balance

in Europe.
Most of

ft V/l||

/lllvl

"If

by all this sudden alarm

over crisis

authoritatively.

call to the

divvying.
*

results

end

true

That's

not

Treasury

the

down

President

won't

completely

this

for

money

Europe from' Congress in

Department

spe¬

man's approach to

trying to make a business¬
the European
mess, want to be careful, want

-'if
'h.

.'■+

months.

tant

fact

there's

President.

Snyder

Chairman.

Secretaries

•and

Commerce and

shall

.v
A

are

council
of

heads

State
of

ratio.

market

has

remained
a

single council session,

has substituted

You
ment

can

subordinate.

a
*

howling

now

about

disaster have

objective

impending
two-pronged

view. They would ignore Treas¬

i'.

ury

caution

ancing."
won't get

and

(1)

force

piecemeal foreign fi-

They
(2).
*

Congress
cessed,
any

mood

millions

A:
I*'.'

(1),

tion

when
if

recalled,

re¬

hand Truman more
billions for haphazard

There's to

random relays of American
dol¬
lars between the
Treasury vaults

insist

Europe's needy by way of the
State
Department. Republican
staffmen know
that,

buck

the

year

■

have passed
special session

McCIoy and Garner

may

objective Con¬

one

gressional investigation — the
RFC probe by a Senate banking
subcommittee.
Republican

honestly

puck
aims

the

foundation

for

continuing

legislation. He may open public
hearings within a month.
*

RFC

the

jobs in Washington. Much cf
accounting work is to be

transferred

the

field

offices.

Another pending RFC order will
consolidate all lending operations
in one bureau under a
single ad¬
*

■

Memo

for

bankers:

the Federal Reserve Board
says
you can't accept funds for
par¬

ticipation in

was

apparently

trust

your common

not for the
sumer

bank

purchases,

these

—Robert
dent

press

con¬

trade

regulations

Can

adoption of the Marshall
plan, Mr. McCIoy further
empha¬

sized that the
terms of the Bank's

organization
operations

World

conference

confine
to
those

its

lending

tween

expressed

years

Bank,

here

have

men

pledged tenant

pro¬

tection unless the housing pinch

quits

hurting.

won't

—

know

They

•

provoked the

Re¬

ruling:

corporations

wanted

trust

weren't

because

satisfied

with

(1)

they

return

trust
won't

That's possible. The trust busters

watching

are

with

wary

appre¬

hension the advance operations of
a
House investigating committee
which will

know

accept
such
participations. The Board said no,
because such participations would
obviously be in lieu of other in¬

whether

vestments

could

and

fiduciary

would

not

Federal

and

dealing

industry

through trade practice rules is
lopsided, will stir up trouble. In
sets

such

rules

but

says

can't

already

those

granted

because of revisions
regulations. That issue
*

disregard entirely talk of

price controls. Republicans
laughed off such suggestions last
session.

Now

funny.

mirthful

the

It's
in

1948

situation
be

isn't

less

even

and

there's

first-rate chance the Administra¬
tion may embarrass the GOP
by

publicly preaching
ceilings.
*

will

consumer

surance

restrictions
This

usage.

safeguard

terests
loans

of
investors
which do not

repayment
The

the

in¬

barring

carry

the

pact

supply

country with the

Alfred S. Klauber Dead

1926,
Mt.

un¬

died

(Special to

The

7th

extended
year

from

—

Oakes has joined the

tional

avoid

trying to do

controls,

use

again.
next

by shifting for¬

eign grain demands to other
foods. The idea isn't clicking.

Bluford D.

statf

Company,

of Wes-

Third

Na¬

With Gill Associates

burg is

Old

Names

101

Domestic & Foreign
Securities

tickets

lawmakers—plus

and
33

J. Escheri-

Associates,

Rails

spots. Cost
junckets hasn't

trip

for

with Gill

Reorganization

sore

of these official
been reckoned
yet, but investiga¬
tions now under
way or planned
will
supply round

wives

now

Chronicle)

the international

some

Financial

Inc., Hotel Secor.

paying plenty to help
Congressmen make plush tours of

abroad

The

Toledo, Ohio—Frank

staff

members.

Senators

and

New Issues

House members

are on this prize
package list. Each will qualify as
an
"expert" on foreign affairs

next session.
*

authorizing

tract

fraud
aim

over-payments
not

was

evident

House

the

war con¬

which

M. S.WlEN & Co.
ESTABLISHED 1919
Members N.
40

Security Dealers Ass'n

Exchange PL, N. Y. 5

the

•

HA. 2-8780

Teletype N. Y. 1-1897

expenditures

after the

subcommittee

Already,

launched last Tuesday. Contract

election.

responsible Republican spokes¬

termination

investigation

settlements

fre-

Seaboard Fruit Co., Inc.
HAnover 2-0050

General Products Corp.

Teletype—NY 1-971
Firm Trading Markets

Susquehanna Mills

FOREIGN SECURITIES

Empire Steel Corp.

All Issues

prospects.

may possibly make
loans to France and
Italy, and for
the Ruhr's coal
production, but
only if they are made for

fjARL MARKS & HO. Inc.
FOREIGN SECURITIES

SPECIALISTS

50 Broad Street

Hill, Thompson & Co., Inc.
Markets and Situations

New York 4, N. Y.

AFFILIATE: CARL MARKS & CO. Inc. CHICAGO

120

for

Dealer*

Broadway, New York 5

Tel. REctor 2-2020

;

Chronicle)

Building.

(Special to

You're

cost

con¬

grain

officially in
yet but may be soon.
Agriculture Department would

Presidential

sound

Bank

Financial

DAYTON, OHIO
heimer

ignore.

September

Sinai Hospital.

With Westheimer & Co.

Marshall plan. He
emphasized the
to

operations, branch banks,
of transportation. Ob¬

Alfred Samter
Klauber, partner
in Lober Brothers &
Co. since

isn't

Legislation

credits for the purchase of
needed
consumer goods to fill
in for the

obligation

and

capital and preferential

exportable surpluses of the other.

sight

be positive rent
be

will

government to recover
can

issue

the prospectors

same

groups

FTC

Important

earth odors Clark can't

privileges to participat¬

groups

You

prices.

revives

Commission's

policy

business

cor¬

Don't be surprised if Congress

Trade

nation smelling out practices
within the construction industry

for

purposes.
*

shortly swing around

the

ing

which

and means

hindering home building and hik¬

Brazil

hit

bonds, and
savings banks wouldn't take
their money. The bank wanted to
(2)

and

treatment of Chilean and Brazil¬
ian
insurance
companies, rein¬

jective

with

Chile

the needs of each

Justice Department's anti¬
drive to bust high prices

today de¬

Europe

not before March.

fiduciary
The

are

agreement be¬

contemplates creation of a
poration of mixed Chilean

March—certainly until

purposes
stimulating
national production
or
leading to that are demonstrably productive
Increased productive
capacity; and Mr. Garner declared.

of the commercial

torney General Clark can't dodge.

Probably

C., Sept. 9
Vice-Presi¬

Garner,

the

supply

before
<-rz

that's

both

watching with interest that phase

national

common

cried suggestions that
the Institu¬
tion could

Lovett's indication last week that
might be used as a "tem¬
porary device" to fill in the hiatus

what

WASHINGTON,

the Bank

than

will go to Congress.

Rules,

in response to
inquiries by
Undersecretary of State Robert

other

Board

small

Garner Points Out

made

Revenue

the Board opines.

privileges

a press

Italy, France and Ruhr
Receive Credits Within

Robert L. Garner

Internal

place certain funds in the bank's

trol

McCIoy

Washington financial circles

informed the Board several

serve

new

Eng¬
member, can apply to
the Bank for credits at
any time,
Mr. McCIoy stated.

John J.

session.

organized labor unless
Congress tosses some pitches At¬

Don't

financing of food,

goods

Within

land,

violates

Here's

ing

deficits.

Such

purposes.

new

;

repeatedly of late

promulgated FTC has extended

World Bank is not in the
stop¬

%•

-%
%

for

with

national

—

definite statement

!, i

tion

broadened

business," the institution's President, John J.
McCIoy, told
conference here today. This
very*»

•

about

wage

parties would
do it—farm hands will

,•

clearly

169,

purposes,

ministrator.

reiterate regulations' confinement

gap

'*v,

hoist the

may

be exempted.
•

short-term government

reorganizing and de¬
centralizing its accounting division
and wiping out between 700 and

LONDON, ENG., Sept. 10—"The

4, ■
.it-1

Code, which prohibits participa¬

Delaware

ascertain

exact needs for RFC operations,
to report on same to Congress
as

investment

Section

of credits to productive
purposes

hourly

done—and

reported

are

cents

Brazilian

participation

fV '■

minimum

much scorn!

for

looks

now

have at least

for which she has

certain

considering?"

sibility Congress

hence will be

—

World Bank Barred from
Extending Interim
Relief, Officials Confirm

Bevin

Ernest

words

reduc¬

•

•t ■'
i-f'

the

Better not write off the
pos¬

proud Britain can not have come to
the point of begging alms — either as lend-lease or
in the form of gold to which she has no claim and

foresee
a

and

ft'*

apd

To be sure,

ade¬

loaded with "facts" in rebuttal.

800

handouts.

'ft.

get

may

wasn't

won't

Board

But

now.

special session, (2) jolt Congress
into

•si

worth

available to the

are

Chairman

bet the State Depart¬

underlings

Governors

they
Congressional clamor for

the

date, Mar¬
aloof, hasn't

The

quate funds

members. To

attended

should be impounded?

age

of the belief that this idea of Mr. Bevin is "well

as
*

Reserve

impounded

substitute

portion of the in¬
American films be
in England has im¬

portant London acquiescence.
Big
question remains
what percent¬

What of those other Britishers who

plans another look-see at margin
requirements—but not with the
thought of
lowering the
cash

Reserve Board and Export-Import

Bank

impor¬

1948.

Federal

from

come

—

these

possibility

proposal that

Foreign

—

naive

Trade sources claim the

taken at face value would indicate?

consume

❖

chilly void
between
Treasury
Secretary
Snyder and State Secretary Mar¬
shall.
Marshall has
high-hatted
the special advisory council on
foreign affairs created by the

before

vote

The

will

There'll be

dollars.

Real

debate

floor

the facts before committing the

)!
/.

and

Bevin

simple-minded

cial session. Committee hearings

are

A compromise on the
75% Brit¬
ish film tax is still a

increasing the pur¬
devastated

Mr.

the
em¬

charged

Secretary Bevin of Great Britain.

try for but

may

extort

areas

certain:

guides right now. Some, at least,

Mark

power of the
of the world."

was

off usable goods as
scrap will
be hauled in for
inspection.

of the readiest ways

chasing

fraud
look for

it's a good guess
many of the
smaller operators who
hiked in¬
ventory values, sold goods
to
Uncle Sam twice, and

gold

one

assist

President because they
*

politicians,
judge
political stand¬

motivated by politics,

ards.

•

Don't

over-pay.

suppliers, but

you,

and it is

know it.

The diplomats are
are

which

fraud,

gumshoe committeemen to
barrass the big

it would be a very
great advantage. There is a mine
where it has already been mined,

That's why the woeful diplomatic
economic deterioration can be largely discounted.
You'll find at least a partial explanation
in State DepartmentTreasury disagreement over dollar^
too—even

world which would

in the

assist

another

found

you

mine

Certainly there's trouble" in sight. But that's not news.
have known it for months. The State Department knew it,

wail of unexpected

(1)

apparent.

will be upset at what I
am about to say, but I have
always got to upset
somebody. My own conviction is that she handi¬
caps herself, causes high taxation in her own coun¬
try, by a failure to redistribute
the gold in Fort Knox.

•

Behind -the - Scene Interpretations

from

claims

"I know that America

Washington

/•

resulted

ments

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : September 11, 1947, Vol. 166, No. 4628

FRASER