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SEP 2 2
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Final
In 2 Sections-Section
YEARS
OVER 100
ESTABLISHED
1
ommetciGL an
Reg. U.
Volume
New
Number 4318
160
S. Pat. Office
Bietton Woods
the
of
Because
*
WRIGHT*
Brooklyn College
.
.
Post-War Loss Of Gold By The
In Excess Bank Reserves
Economist Predicts A
United States With A Reduction
Board of Directors
Chairman,
By DR. IVAN
Professor of Economics,
>
ALDRICH *
The Chase National Bank of the
•*:
$
Copy
Outlook For Post-War Interest Rates
Some Aspects Of American
Aldrich Views On
Foreign Economic Policy
Tait Agrees With
By WINTHROP W.
Price 60 Cents a
September 21, 1944
York, N. Y., Thursday,
Banks To Sell Securities And
Incidental Thereto Causing
City of New York
widespread at¬
being given to
Asserts A Period Of
Leading Bank Executive Calls Bretton Woods Agreements Basically Charge Higher Rates On Loans.
the Chicago address of Winthroo
Contradictory And Inadequate To Accomplish Their Purposes. As An Rapid Business Expansion Accompanied By Rising
w;W. Aldrich, in which the noted
Alternative, He Proposes The Implementation ! Of The Solemn Commit¬ Prices Would Boost Interest Rates Sharply And There¬
banker severeV
ments Contained In The Atlantic Charter And Lend-Lease Agreements
ly criticized
fore Recommends That Savings Banks Hold Surplus
the B r e 11 o n
To Eliminate Trade Barriers And Give Free Access To Raw Materials.
Funds In Short Term Investments.
Holds Government
Woods propoUrges U. S. And British Enter Into Conversations To Fix A Parity Be¬
posals and adtween Their Currencies And Recommends That Export-Import Bank Cannot Keep Interest Rates Down When Rates Do Not
vocated an
which
tention
is
,
a
11
achieve
to
rush
with
us
upon
ex-
f
I
d.
e r r e
n
these
the
finding
solutions,
"Chronicle"
States
United
Senator
Robert A.
must
Taft,
play
a
role.
leading
Ohio Republi¬
Our
economic
for com-
..and
e n
Al¬
t.
though
truce
election
J is said to exist on
of
discussion
the
Woods
if
even
permitted
KEMMERER* and T. EUGENE
The DanOver-Issue, The ' —' " ^^
died, They Point Out
Its
Of
gers
Redemp¬
And The Ease Of Counter-
Uncertainties About Its
tion
/
we
;
Money Issued To
\
„
'J
r/v
i
Recommend That
feiting. They
'
«#***'!
Our
would.
Cuiiency In Italy
BEATTIE
Writers Describe Allied Military Currency Issued To American Soldiers
In Italy And Although Admitting Its Issue Has Been Fairly Well HanBy DONALD L.
responsibility,
Congressional
Bretton
plans, the Ohio Senator
money
have
rates
Allied Military
position will
not permit us
to evade this
Robert A. Taft
pre¬
a
low
long
lasted
*..
m
oe>
—
^
^
financial
can,
For many years
abundance of loanable funds. The
have provided an
excess reserves
cannot be de-
change stabil¬
ity and finan¬
cial
readjustm e n t,
the
asked
solutions#
and
Conditions.
function of money reserves.
Interest rates are a
of peace
solutions
of the Axis crumbles, problems
compelling speed.
They press for
As the military power
inter¬
national
Comply With Economic
I—Introduction
de-
i signed
r
Grant Stabilization Loans.
rnative
e
program
that
many
people are be¬
ginning to ac¬
cept them as
permanent or
normal.
,
Our last ex¬
perience with
high
interest
money
or
rates was dur¬
p§ my
Soldiers Should
so
-
ing the specu¬
lative and fi¬
infla¬
nancial
-
^
for
an
Monetary Fund and
program :A
Interna¬
tional
Bank for Reconstruction
and
Development.
I think we
shall have to make an entirely
new
start on this subject." (Mr.
Aldrich's address in full text is
al¬
upon,
Aldrich
W.
been seriously
depleted. Our industrial plant, al¬
though now dedicated to the win¬
ning of the war, will, once the in¬
ternal
problem of reconversion
given in these columns,- starting has been solved, be greater and
on this page.—Editor.)'
more
efficient than ever before.
We have been saved
from the
Features'
Index
on devastation which has visited a
:' Regular
page
The
before
Aldrich
of
Club
delivered
address
'•An
by
Mr.
Interstate
nations
T.
'
;x'
Buy War Bonds
'V
York Stock Exchange
Exchanges
other
for
2-0600
Geneva Rep. ^
Teletype NY 1-210
Cleveland
Donald
L. Kemmerer
'
(Continued on page 1252)
soldier wants to send some
The four smaller
University
State and
SECURITIES
New York 5
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PHILADELPHIA
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Buffalo
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OF
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Manufacturing Co.
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>
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DEALERS
t
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48
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Service
BE
from
;or
Markets, always
ELECTRONICS
BROKERS
Bond Brokerage
FROM
OBTAINED
BOSTON
Actual
BOND
MAY
AUTHORIZED
Established 1927
>
.
New York 4, N. Y.
Chicago
20, 1944.
10, 50, 100,
INVESTORS - INC-
R. H. Johnson & Co.
INVESTMENT
HAnover
of Massa¬
Sept.
and is con¬
(Continued on page 1268)
PROSPECTUS
:
25 Broad St.,
Dr. Wright be¬
Convention of the Sav¬
the
ings Banks Association
is Assistant Professor of Economics,
Kemmerer
iffl FUNDAMENTAL
Hirsch, Liiienthal & Co.
-
1, 2, 5,
Wright
chusetts, Swampscott, Mass.,
home, at the rate of one cent to the lira.
of Illinois.
VICTORY
London
fore
special kind issued
1.000 lire
Ivan
*An address by
pay
into American exchange, if the
of his pay
*Dr.
of
and
500
or.
Municipal
v't-f
and
Beattie
Eugene
boom
(Continued on page 1262)
Aircraft & Eng. Co.
Members New
a
is
on
r
by the army for use in that war
theatre. It is in eight denomi¬
Chicago,
Sept. 15, 1944.
soldier
this
brought a liq¬
uidation of bank loans and invest¬
by the
day
received
money
in Italy
Executives'
111.,
the
Chicago,
;
American
vertible
1272.
_
Circulation."
collapse
The
of
20's.
late
the
Congressional Approval And Be
Counted As Part Of "Money In
have not
of
tion : boom
Dollars, And Should Have
can
though heavi 1 y
drawn
W.
Backing As Ameri¬
jjave same
raw
sources
International
an
of
materials,
the following quotation:
"I agree with all of Mr. Aldrich's
criticisms of the Bretton Woods
HART SMITH & CO.
REYNOLDS & CO.
Members New York
120 Broadway,
Telephone:
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•
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We
Maintain Active Markets in U. S. FUNDS for
Appl.
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kingTking
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' f
Teletype NY
Warehouse
Receipts
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Weighing & Vending
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Exchange
Baltimore Stock
Members
120 Broadway, N.
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At
International
the
Bretton
Keynes made his
few
d
Traded
on
Y.
N.
New
York
.
Telephone COrtlandt 7-4070^
.
Bell
System Teletype NY
* "i
"
as¬
T
o
Bay way Terminal
will meet at the Bowlmor Al¬
Edward A. Pureed & Co.
Members New York Stock Exchange
Arthur "
Burian, Strauss Bros..
Chairman; John Ohlandt, J. Ar¬
thur Warner &
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&
C.
Frank
Members New York Curb Exchange
65
Co.; Otto Berwald,
Co.;
George
Masterson
&
Broadway
might
seem
Leone,
Co.;
Wil¬
Kumm, Dunne & Co.; Duke
Central States Elec.
*5%
Phillips & Wellington,
50n>
s
t
made
ts
dif¬
on
Employment, Flexible
article
an
&
(Va.)
Debentures
Preferreds
published
Common
.
Berkeley-Carteret
sy2s,
the "Chronicle"* of Aug. 10, 1944,
Flexible. Costs and Profits," Elisha
M. Friedman, Consulting Economist, contended that full employment
cannot/ be maintained at all times qnder a rigid wage system and
presehted1 a series of recommendations designed to make it possible
for both, capital and labor to achieve their respective objectives.
These included the adoption of a«>—
*—
JOHN J. ROWE,
flexible wage structure and ap¬
plication
of the
profit-sharing President, The Fifth Third Union
principle between industry and
Trust Co., Cincinnati, Ohio.
to
emen
5y2 %
American-LaFrance
Post-War
In
'
other
t
a
&
in
-
.
,
.
-
.....
*Dealt in
...
-
.
New
on
.
'51
•/
York Curb Exchange
entitled "Post-War Employment,
be inconsistent
with
WHitehall 4-8120
Bell System Teletype NY 1-1919
Hunter, Hunter & Co.; Jack Man-
|
Plain
6s
ejvery
Bowl¬
.
which
ments
1-1548
Thursday.
on
continue
Costs And Profits77
reporters elici t i n g
state¬
1
York
will
g a-
possibilities of
New York 5
and
Producing
N.E. Public Service
Common
the newspaper
Curb Exchange
Southwest Gas
open
of the Committee.
financial conference Lore
and only appearance at a press conference a
minimize the
Vanderhoef & Robinson
Members
e
had
sembled.
Curb Exchange
31 Nassau Street
1
e
tions
6l/2s, '55
7s,
'52
7s,
'57
New
5,
liam
Woods monetary and
will
season
days after
the
Power Securities
of
ers
Them.
one
branch offices
our
Southwest Nat'l Gas
leys, 12th Street and University
Place, New York City. Arrange¬
ments may be made with any one
Currencies Due To Unbalanced International Trade But
Cannot Remedy
N. Y.
NY 1-15S7
La.-Birmingham, Ala.
Direct wires to
2-7815
Thursday except holidays.
Exports.—He Also Maintains That International
Fund Can Alleviate Disruptions Arising From Scarce
-
bowling
tion
Met By
Y. 5-
REctor
Oct.
International Fund May Control Capital Movements, And
That Britain's Blocked Balances Are A War Debt To Be
Milcliclh-Comptuiij
HAnover 2-0700
New Orleans,
for the Security Traders Associa¬
~
Preferred
&
Common
The
Correspondent Furnishes Excerpts From Press Confer¬
ence In Which Lord Keynes, Leading British Delegate,
Explains That Bretton Woods Agreement Does Not
Restore The Gold Standard, But Creates "A Currency
Standard Based On Gold."
Keynes Also States That
Rayon, "A"
Exchange
Bowling Season
Opens October 5lh
By HERBERT M. BRATTER
& Pfd.
Members New York Stock Exchange
STANY
Consolidated Machine Tool Units
Elk Horn Coal, Com.
*
25 Broad St., New York 4,
120 BROADWAY, NEW YORK
1-672
Keynes At Bretton Woods
Axton-Fisher Tob., "B"
Stock
New York Curb Exchange
NEW YORK 6, N. Y.
Telephone BArclay .7-0100
York
New
BEZiZi TEZ.ETYPE NY 1-423
and
Quoted
—
Steiner, Rouse & Co.
Members
Members N. Y. Stock Exchange and Other Principal Exchanges
Dealers Ass'n
Security
Sold
—
Bought—Sold—Quoted
CANADIAN UTILITIES
:
York
Bought
Pref.
request
on
CANADIAN MINES
Amer. Furniture Co. Com.
New
Mallory & Co. Inc.
Analysis
CANADIAN BANKS
Mid-Continent Airlines
Members
P. R.
CARRIER
CANADIAN INDUSTRIALS
Airlines
National
Thursday, September 2i, 1944
Frank C. Masterson & Co.
Members New
64
WALL
YQrk fiurb Exchange .1.
ST.
NEW
Teletype NY 1-1140
YORK
5
HAnover 2-9470
'
ferent
s
Indiana Limestone
Income 6s, 1952
1
St. Louis-San Francisco
-
-
■
'
•
6s,
1936
■
•
■
Struthers Wells
Common & Preferred
■
.
i
o
occa-
American
the
d
20 Pine Street, New York 5
Telephone: WHitehall 3-1223
Bell Teletype NY 1-1843
Engineering
Lord Keynes
record,
this
correspondent has excerpted
representative passages, re¬
printed below. The first question
some
touched
on
fundamental
a
point,
the relationship of the United Na¬
tions monetary fund plan to the
standard,
inasmuch
as
viduals
sentiment in the United
Central States Electric
considerable
feel
expressions from indi¬
in
various
fields
of
en¬
setting forth their views
respect to the thesis pro¬
pounded by Mr. Friedman. Some
of these expressions can be ac¬
commodated in today's columns
and are given herewith; others
will appear in a subsequent issue.
v
Macfadden
•*
Publications
All
Issues
Marion, Steam Shovel, Pfd.
whereas to sell the plan at home
Lord Keynes has had to describe
it
the exact opposite of the gold
standard. Naturally, the press con¬
as
ference
United Piece Dye Works
.'
Common
&
Preferred
oreenecmiGompanu
Members N. Y. Security Dealer* Assn.
37 Wall
Bell
St., N. Y. 5
Hanover 2-4850
Teletypes—NY 1-1126 & 1127
not
debating forum.
Everything was very dignifed and
respectful. How well Lord Keynes
answered the question the reader
may judge for himself.
Press:
was
Lord
a
Keynes,
I
believe
that in 1923, in your book "Mone¬
tary Reform",
you
wrote—I quote:
"In truth the gold standard is al-
(Continued
on page
1256)
Pfd.
&
Common
Cleveland-Cliffs Iron
$5
FASHION PARK, Inc.
be
Common
in
New
Interstate Bakeries
packed into
several
short
Employ¬
paragr
that
that you could
Detailed
*Circular
upon
request
umn,
manner.
G. A Sax ton & Co., Inc.
V
74
PINE
/
ST., N. Y. 5
Teleytpe NY
WHitehall 4-497#
1-609
25 Broad
St., New York 4, N. Y.
HAnover 2-0600
Tele. NY 1-210
,
New
John
J.
Rowe
a:
,
i
R
on page
WALL
SUGAR SECURITIES
Quotations Upon Request
TEL. HANOVER 2-9612
Teletype N. Y. 1-2123
Henry Holt & Co.
5% due 1969
Tennessee Products
'!
Corporation
'
Common & Preferred
Boston & Maine Railroad
n
ST., NEW YORK
1260)
$1.60 Preferred
I
<
York Stock Exchange
New York Coffee & Sugar Exchange
120
Buffalo, Niagara & Eastern
L
CO.
&
Members {
.
-
and sug¬
(Continued
A, B, C, & D Preferreds
ES
BOUGHT
Diamond Alkali Co.
—
SOLD
—
QUOTED
Memorandum on Request
WM.J.MERICKAG'CO.
v
Troster,Curries Summers
Members New York Stock Exchange
col-
"
report on request
Simons, Unborn & Co.
FARR
own'1"
your
.
uncertain
NY 1-1026
me
•
its post-war outlook of¬
Common
oc¬
to
editorial
;
Broadway, New York 6, N. Y.
A
aphs
it
;
curred
in
fers tremendous possibilities.
$5 Pfd.
United Utilities
Ill
BArclay 7-0570
Mr.
Friedman's discussion on. gest that corporations ask for re¬
"Post-War, E/nploymentr Flexible prints for their junior officials to
read.
Costs and Profits," is .indeea an
interesting presentation, in which
he has refreshingly simplified a f GUSTAVE HENRY GLUCK,
Palisade, N. J.
complex subject, the keynote of
which is in this sentence: "A free
| I have read with great interest
economic system cannot be rigid." Mr. Elisha M. Friedman's article
And this, of course, applies not in the
Aug. 10 issue of the "Com¬
only to costs, selling prices, and mercial and Financial Chronicle"
prifts, but to wages, as well — and his courageous plea for flexno
request
much meat
so
.
and in
on
F. H. Holler & Co., inc.
v
Orleans
y'p
r
Memoranda
to read. It has
Vice-President, The Hibernia Na¬
cated reconversion problems
...
■fV
I wish it
quote from it
An industry without compli¬
*
Indiana Limestone 6s, 1952
in a form,
employees.
ten
for
W. ELLSWORTH,
tional Bank
Clay Products
Great American Industries
could be writ¬
,
FRED
Company
col¬
cers.
ment, Flexible Costs and Profits""
by Elisha M. Friedman, is a very
able article.
(Men's clothing)
Pfd.
Detroit & Canada Tunnel
on
must
American States Utilities
*
Laclede Christy
by cor¬
poration offi¬
Chairman of the Board, Wilming¬
ton Trust Co., Wilmington, Del.
'stabilization" characteristic
-
The Cross
read
S. D. TOWNSEND,
I think that "Post-War
it
go
umn'; to
the
deavor
impressed
article, and
Friedman's
that
should
States, emphasize the Fund's
Preferred
a
enormously
was
with Mr.
with
the
American proponents of the Fund,
aware
of the strength of goldstandard
received
number of
was
held jointly
by Lord
Keynes and Dr. Harry White, and
of the highlights of the
international meeting, so far as
the press were concerned.
voluminous
I
publication of the article,
have
we
V V
ence
the
.
Since
so was one
gold
Aetna Standard
labor.
legation,
this particular
press
confere
From
H. G. BRDNS & CO.
by
s
n
spokesmen for
Members N.
74
Y.
Wires to Buffalo
Detroit
*
Pittsburgh
-
-
5t. Louis
-
v
■
Exchange
CMC
14
MEMBERS NEW
One
->
Cleveland
Stock
Bldg., Cleveland
Telephone MAin 8500
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COMMERCIAL
The
CHRONICLE
FINANCIAL
Our latest Bulletin
1243
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4318
.Volume 160
We
llCHTinSTfld
"
interested in offerings of
are
Beg. U. S. Patent Office
AND COMPANY
RECONVERSION
^
William B. nana Company
Publishers
MYTHS
25 Spruce Street, New
'
'
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Monday
135
Offices:
Other
Estate
1944
William
by
United
In
of
Canada,
CERTIFICATES
Australia and Africa,
for quotes
Newburger, Loeb & Co.
Stock Exchange
f
WHitehall 4-6330
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1
Record—Mth. $20 yr.
fluctuations
remittances fdr
NOTE—On account of the
in the rate of exchange,
foreign subscriptions and advertisements
must be made in New York funds.
I :
Dewey To Preserve Collective
Bargaining And Labor's Rights
Lays Blame For War Strikes To
Administration, And Claims National Labor Act "Has
In Address At Seattle, He
Accounting System, By Evaluating Poten¬
tial Markets, And By Wide Publicity Of Offerings He
Predicts An Orderly Marketing Of Surpluses "In A Way
That Will Do The Country And The Business Com¬
munity Good."
V
f"
i
t
"•**
■,
t
a
*
» .t
jBeen Smothered Under A Welter Of Agencies, Boards,
Commissions And Bureaus"—Hits Indispensable Man
most of you
„
Theory In Portland Campaign Speech And Says Roose¬
velt's Record Belies Assumption That He Alone Is Capa¬
Either In Domestic Or Interna¬
candidate for President,
E. Dewey, Republican
Sept. 18 delivered an
address at Seattle, Wash., in
which he set
forth his pro¬
of
Gov.
Dewey's
fol¬
remarks
lows:?4
•
Senator Arthur H.
.
the
Within
I have renew¬
ed what is for
every
'
can
have
co me
broad
this
coun¬
of
try
many
Thomas
times
time
it
a
new
again to the
of Washington and to have
more
the thrill of seeing
at hand this vital, pulsating,
the State
Administration in
of your construc¬
forthright Republican
the able hands
tive
and
Governor, my good
friend Arthur
Langlie.
of
your
are
fected.
second
place,
ference
Ernest L. Olrich
be¬
lieve that there may be an oppor¬
Let
Today, the first thoughts of all
us are on the war—the war in
the
in
est
of
was
inter¬
A.
(Continued on page 1259)
REctor 2-5288
Bell
System
Teletype.
NY 1-2480
of
v
Assistant to the
Treasury
Secretary, U. S.
Bartgis Bros.
Haloid Corp.
Laclede-Christy Clay Pr.
Miller
Mfg. Co.
Segal Lock & Hdw. Pfd.
Bought—Sold
Decision On 5% Spread
yardstick"
of
Exchange Commission at
-
Gisholt Machine Co.
Department.
(Continued on page 1258)
,
Federal Screw Works
,
Hmwo&Cfcm
Members New
York Security
Dealers Ass'n.
COrtlandt 7-6190
System Teletype NY 1-84
170 Broadway
Bell
Philadelphia
.
the subject were in by July 5,1944.
half months have passed and as yet there
on
a
is
Haytian Corp.
whether this interim of time
test to see
is reason¬
Merchants Distilling
numerous,
they
Tappan Stove
important and complex.
are
verbatim, as set forth in their petition:
illegal upon the following grounds,
others:
r
DUNNE & CO.
Members New York
25
Security Dealers Assn.
Broad St., New
York U, N. Y.
Tel. WHitehall 3-0272
Vandenberg
H.
after
line with com¬
ments of Chairman Ganson Purcell of the SEC made public last
in
which
should
be
PANAMA COCA-COLA
Dividends paid 1944 to
,
deemed by
lax
the
policy to re¬
registration provisions of
the
Act
in
■
-
i 1942
-
$2.25
*3.65
.
■
»
Circular
effort to stimulate
.
& Trust Co.
on
request
C. E. Unterberg
HOIlRQSE&TReSTER
Established 1914.
_
Members New
Trinity Place, New York 6, N.
Assn.
New York 6, N. Y.
Telephone BOwling Green 9-356S
Y.
1
Telephone: BOwling Green 9-7400
& Co.
York Security Dealers
.
61 Broadway,
74
<
Second quarter analysis
available on request
30
the flow of capital into
generally."
Public National Bank
$4.50
Approximate selling price
Congress to be sound
an
date
Dividends 1943
Chairman
the
"it
if
small bus¬
iness
enterprises, we believe it
year will see the end of the war would be preferable to do so by
in Europe.
Then as we have so raising to $300,000 the exemption
provided * * * rather than by re¬
long wanted to do, we shall' be
laxing the disclosure requirements
able to throw all of our energies
Europe and the war in the Pacific.
It seems already clear that this
Dealers Assn.
(Continued on page 1251)
enter¬
The bill was in
said
Security
Broadway, New York, N. Y.
Mr. Ol¬
Controllers Con¬
the National Retail
1
•
•
' - :. ■"
(a) It was not submitted to the vote of the NASD
membership as required by Article VII, Section 1 of
the by-laws of said NASD.
the war.
week,
us
among
lating flow of
capital
into
prises
Ill
the
"The said rule is
stimu¬
small
Members
York
New
whether it constitutes an inordinate delay.
The issues raised by the Securities Dealers' Committee
Here
this
said his
proposal
Sold
or
were
said:
He
—
J.F.Reilly&Co.
favorable or
a
Association, Chicago,
111., Sept. 14, .1944. Mr. Olrich is
President of Munsingwear, Inc.,
Minneapolis, and now on leave as
this
be¬
you
Bought
Goods
Dry
inter¬
subject
Triumph Explosives;
address made by
before
rich
In the
in
to1 be
likely
*An
af¬
adversely
National Airlines
t|> judge for yourself whether we
1
be
businesses
able
from
reporting
growing West Coast which sym¬
bolizes the magnificent future of
the United States.
It is good to
find
will
Two and
As¬
and rich
Airlines
ho decision.
Washington
is
It is good to come
close
hurt
All briefs
t o
advices
problems face to face.
once
is
from
E. Dewey
experience to talk with the people
who are America, to learn their
State
econ¬
u a
of
Oral argument on whether the "5% spread
on constitutes a rule, took place before the • Commissioners
sociated Press
ours
before but
each
national
i d
Office
of Surplus
the Treasury Pro¬
the
Vandenberg
Exchange
$100,000
$300,000,
sweep
'
posal activities nor with the profit
possibilities which our program
may offer to you. I hope, however,
tfafet my remarks may enable you
a
As the
Securities
Act
the
across
of
the
and
J
experience.
econ-
whole.
registration
provisions o f
Ameri¬
a
great
#
•
talk today does not deal
with the probable eco¬
nomic consequences of our dis¬
(Republican), of Michigan,
Sept. 19, introduced legislation to
the Securities and
change the
on June 13, 1944.
level under
ten days
past
\
*
directly
as
cause
Liberty Aircraft
My
"that
Issues Up
To $300,000 From
SEC Delays
SEC Registration
to labor.
text
a
o m y
v
N. Y.
Teletype NY 1-1203
curement Division.
harm
do
in d i
f
.
ization,
tunity for you to participate in
the marketing of the merchandise
Bill Exempts
policies
with.refer¬
posed
The
in
manner"-
ested
Governor Thomas
ence
out
you are
tional Affairs.
on
ried
omy
^
Property
car¬
the
HAnover 2-8970
which will be sold by my organ¬
disposal
be
will
39 Broadway
New York 6,
co-
anxiety
that
Information
Members New York Security Dealers Assn.
disposal probably interests
chief points of view. In the first place, you
from two
may
so
QUOTED
-
Mid-Continent
'
I;
Statistical
topic of surplus war property
This
to
SOLD
•
L J. GOLDWATER & CO.
lent Inventory
some
ble Of Guiding Nation
WHitehall 4-6551
CERTIFICATES
Complete
Made
Of Merchandise In A Manner And At A
The National Economy.
entertain
I
under.
Dept.
STREET, NEW YORK
BOUGHT
Says Aim Is To Sell Through Regular Channels And To
Insure Small Store Participation.
By Use Of An Excel¬
Record—Mth* .$20 yr.
Monthly Earnings
wry
they
TITLE COMPANY
.
Rate That Will Not Undermine
Other Publications
Bank and Quotation
York
anu
$31.00 per year.
from
By E. L. OLRICH*
To Dispose
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Central
New
States and
in Dominion
$26.00 per year;
$27.50 per year; Soutn
America,
Spain,
Mexico
Possessions,
out
the
thought
Securities
Telephone:
Treasury Official States That Every Effort Is Being
25, 1942, at the post office at New
N. Y., under the Act of March
3, 1879.
TITLE COMPANY
Members
Company
'
York,
Subscriptions
40Wall St., N.Y. 5
St.,
ruary
Specializes in
us
Dana
B.
WALL
99
-
Progress In Surplus Property
Disposal
Reentered as second-class matter Feb¬
Securities Department
Call
Salle
La
S.
Exchange
who
get
never
;
Chicago 3, 111. (Telephone: State 0613);
1 Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith.
Copyright
Our Real
Members New York Stock
brokers
Obsolete
Teletype NY 1-9
Telephone HAnover 2-4300
.
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
cleavings, state and city news, etc.)
CHICAGO 4
NEW YORK 4
week
a
obsolete stocks and bonds
on
of
would
25 Broad Street* New York
Thursday
and every
Dealers Ass'n
Board of Trade Bldg.
Broadway
Spencer Trask & Co.
1944
21,
re¬
every
Security
faces
President
September
Thursday,
tries, will be
sent
Our bids
bring smiles right through
William D. Riggs, Business Manager.
favorably sit¬
York
THE WRY
PREFERRED STOCKS
Editor and Publisher
various
uated
e
Herbert D. Seibert,
securities
in
New
COMING THROUGH
Public Utility and Industrial
,
'i '•
'-V
V'-.'V-
: ■"
Members
York 8
BEekman 3-3341
•
listing selected
High Grade
.
Teletype: NY 1-375
w
i_i
THE COMMERCIAL & FINANCIAL CHRONICLE
1244
Thursday, September 21, 1944
BOSTON, MASS.
American Hardware
Oxford Paper Com.^ Pfd.
Crowell Collier Com.
Phillip Carey Mfg.
-
Outstanding Cement
With
a
Stock
We
Warren Bros. B.& C.
Sold
■
Trading Markets in:
Central Illinois Electric & Gas'
Central Vermont Public Service
Class A
Derby Gas & Electric
$1.25 Cumulative Participating
Quoted
-
Maintain
Dividend Arrearage pp-
Riverside Cement
Missouri, Kans. Pipe Line
Bought
An
PHILADELPHIA
Southwestern Public Service
Stock
Goodbody & Co.
American Hardware
Members Al.Y. Stock
Amer. Win.
115 BROADWAY
Glass, Com. & Pfd.
TELEPHONE
Axton-Fisher "B" & Whse Rec.
Bendix Home
'
105 WEST ADAMS ST.
a
TELETYPE
7-0100
NY
Bell
Teletype BS 69
York, Philadelphia and
St.,
Philadelphia 2, Pa.
Teletype
Phila. RIT 4488
—-
PH 265
N. Y. WH 3-7253
PUBLIC UTILITY COMMON STOCKS
Com. & Pfd.
Pfd.*
H. & B. Amer. Machine,
Magazine Repeating Razor
Merchants
Public Service
Wholesale Distributors
Middle West
Michigan Public Service Company
Missouri Utilities Company
Northern Natural Gas Company
Liberty Aircraft
Distilling*
Nu-Enamel
^
Riley Stoker*
Scovill Mfg.*
}■
Company: of Colorado
Bought
Triumph Explosives
Wickwire Spencer
—
Sold
—
Standard
New York
Chicago
i
SECONDARY
CHICAGO 3
%
Randolph 3002
\
Penn. &
Consolidated
Collier P. Com.
Corporation
Federal
Machine
Bak.
Com.
-
^
.
giy 11.1:3111
COMSTOCK & CO.
"Fiduciary fyloney," It Would Have Been
More Advantageous And Would Have Avoided Budget¬
ary Deficits. V Predicts European Nations Will Adopt
(i-
,
,
231 So. La Salle St.
Pfd.
United
& Pump
& "B"
"A"
Social
Go Into Effect More Gold Will Flow To The United
Oil Tank
Stove
American
Mid-Continent Airlines
the most prominent economist of our
National
and
Sugar 6s
,' i
j
,
Countries.
AIR LINES
Export Airlines
Chicago & Southern Airlines
Continental Airlines:p
Airlines
Amer.
Gas
American
Conn.
Power
&
Wrnts.
&
Power
Cons.
Elec.
&
&
But let
Electric
Arr. and
Iowa Southern Util. Com.
&
Mass, Power
Lt. $2
Com.
...
•
Pfd.*
t
I
Y; Water Service
jn, m
M,t
A
•'
tr
T
4*
'
.
JSL
r
Peoples Lt. & Pwr.
Puget Sound Pr. & Lt.
Queensboro Gas & Elec. Pfd.
Springbrook Water Pfd.,
Southwest Natural Gas
■■{■>■■■
Scranton
Southwest
Pub.' Serv.
us
settlement
1 Nassau & Suffolk Ltg. Pfd.
Pfd.I
'U
Because of its brilliance, dura¬
bility and rarity, gold had an ex¬
ceptional enchantment for men of
primitive societies—a fascination
which has extended to our time.
consider
whether the
4
T
New Eng. Pub. Serv. 6% & 7% Pfd.
N.
of
to have been settled by
the proposed plans of the Inter¬
national " Monetary
Conference.
Gas Pfd.
Gas
Illinois Power Div.
United States in the famous vaults
appears
-Com.XX';fe;
Derby
<$>
news.
Its role in International finance
Gas
&
into the
came
Utilities Service Pfd.
Light
It was Lord Keynes,
time, who used it in his sarcastic
witty arguments against the gold standard in 1923.
Discussions for and against gold in monetary systems have been
frequent and heated, particularly since leading nations Suspended
the gold standard.
With the Bretton Woods Conference, gold again
utilities
Birmingham
Believes This
The adjectivation of this title is not ours.
is
likely
to be final.
What part has gold played in his¬
tory, :particularly
during
the
Fort
Knox, Kentucky.
At first it
was
used for adornment
period since the last World War, and decoration but by reason of
in the v; throe
great nations, the its prestige and the demand for a
United Stated Great Britain and limited supply, it also came to be
the Soviet Union? Is gold a bar¬ used for the acquisition of goods
barous relic destined for eventual
i-
abandonment?
and
services, thus evolving into
the most valuable, form of money.
-
electronics
Du Mont
If
Lab. "A"*
Emerson
I
Radio
General
cially
Instrument*
International
P. R. Mallory
Stromberg Carlson
Submarine Signal ' ?
Circular
*
.*?
>
; j
:
Requett
on
'i »-fu
Chicago Tractions
the
stocks
existent
in
,v: V-
Ever
of
gold offi¬
central banks
since, by force of the ex¬
traordinary value given to it by
human fantasy, the yellow metal
treasuries
of
the
nations
of
has been the arbiter of
President, Chamber fof
EST, 1926
Members N. Y. Security Dealers Assn. j
120
BROADWAY, NEW YORK 5
REctor 2-8700
Direct
wires
to
NY
Boston
1-12881
«fe
Phila.
ENTERPRISE 'PHONES
Hartford
6111
—
Buffalo
6024
of this institution.—Editor.
(Continued
on
page
1266)
S.
Broad
St.,
Philadelphia 9, Pa.
New
-
Pennypacker 7700
CoWnercq[o|(|jhie
York* Phone
Hanover 2-0310
•
United States
.
Though Defending Social Security^Ai7 "A Public Neces¬
sity In Our Kind Of Economy"'3And As "A ShockAbsorbing Cushion To Our Dynamic Capitalism/' Mr.
Johnston Maintains That Complete Economic Stability
Can Be Obtained Only At The Price Of Complete Regi¬
mentation.
Holds It Is Not A Question Whether We
Shall Meet Social Security Costs, But How We Shall
Meet Them, And He Advocates A More Eqpitable Divi¬
sion Of The Expense Between Employees < And Em¬
ployees, As Well As State And Local As' Opposed To
U
Federal Control.
?
| tf
Social security is a public necessity in our kind of economy.
fulfills
To
a
vital need which
make
can
be met in
it
must
step
It
other way.
substitute for productive employ¬
ment.
We must, for the postwar
keep
with
no
it
fully effective,
period,
an
useful
ever-changing
than
economy.
v
fill
Penington, Colkei & Co.
AilioHNSTON*
By ERIC
•
destiny for From time to
the world were melted down, they peoples and continents. Man has time it
must
launched himself upon epic ad¬
would fill a cube measuring 38
be
extended
ventures and struggles, crossing
feet on side. The geometric image
and improved.
oceans
with i but ;, rudimentary
gives us an idea of the physical
? There is one
means
of
navigation, exploring
quantity of the so-called rare
job that busi¬
metal which lies idle in under¬ and settling new lands, braving ness-. can
do. U
danger and death in the hope of
ground
strongholds
supposedly
That job is to
discovering gold. The tale of the
exercising a collateral function in
guide
social
monetary ; systems.
Valued
at Argonaut and the Golden Fleece
security
into
about 31 billion dollars; weighing symbolize its fascination. The con¬
workable
and
development of the
around 29 thousand tons, it rep¬ quest
channels and
resents the accumulated produc¬ American continents are examples
tion of gold from the most remote of the history-making movements keep it on a
realistic basis.
epochs
until
the
present
day. it set going.
V ;
Eric A. Johnston
It i will
be
a
As money,- gold was coined in
Sixty-seven per cent of it, 21 bil¬
lion dollars worth, is stored in the small discs of prescribed values constant job, a difficult job.
and weights. With the develop¬
However important social se¬
*While Mr. Fernandes is a mem¬ ment of trade and banking insti¬ curity
may be, it can never be a
ber of the staff of the Banco do
tutions, the use of gold coins as
Brasil the views expressed in this a medium of exchange was largely
*An address made by Mr. John¬
article are his own and not those replaced by pacer notes, the issu- ston before the Executives'
Club,
and
"
'
Detrola
Magnavox Corp.*
/
Majestic Radio & Tel.*
*
all
*
;
Security And A Dynamic S
Capitalism
States To The Exclusive Benefit Of The Gold
Producing
Country Will Discontinue Its
Monetary Policy "Which Results In Giving Away Goods
And Services And Burying Gold Received In Exchange"
Vicana
^
/
Alan Wood Steel
Phila. Phone
Dearborn 1501
p>pPp
Teletype PH 180
Managed Currencies And If The Bretton Woods Plans
Talon
Drill
;
p'P^p^p-^SpPreferred
CHICAGO 4
And Issued
Manufacturing
Punta Alegre Sugar
Remington Arms
United
i
Common.& Preferred
123
.<
,
Pollak
Textron
y
John Irving Shoe
...
Pfd.
&
Johnson
1
R.R.
&
•
Ann..4%s & 6s
Brazilian Economist Criticizes Gold Standard And Asserts
Com.
&
Herrington
Paper
«
5s
Harris Seybolt Potter
That If The United States Had Abandoned It In 1933
Interstate
Pfd.
Brownhoist
Pierce Butler
&
Lehigh Valley R.R.
Coal
Chicago Aurora & Elgin
j
By SANTIAGO FERN ANDES*
Welding
&
Industrial
Candy
4%s
4s,
.
National Terminals Corp.
Gold—A Barbarous Relic
Textile
Crowell
Tokheim
-
Common
Eastern
Oxford
Franklin County
Minneapolis
N. Y. Canal
'
'
.
&
COrtlandt 7-1202
Trinity 3908
Old Ben Coal (Com.)
Milwaukee
PH 30
Private Phone to N. Y. C.
650 S. Spring St.
CG 362
St., Philadelphia 3
Pennypacker 8200
"B"
Axton-Fisher
Marmon
LOS ANGELES 14
Bayway Terminal
Brockway Motor*
Loft
BOENNING & CO.
1606 Walnut
^
Quoted
MARKET
DISTRIBUTION
'
Buda Co.
Johnson
Boston
Paper Co.
Common Stock
Engineering
Car
Auto
&
\P\Pr-Tv-v
A.C.AIXYN«®COMEANY
industrials
Southern Advance Bag
Pacific Coast
For ,* >■'
Incorporated
Aetna
—
135 La Salle St.
Title Guar. & Trust
continuing interest in:
a
UNDERWRITERS
Public Service Company of Indiana
Sioux City Gas and Electric Company
Southwestern Public Service Company
Moxie
have
CARTER H.C0RBREY& CO.
Central Illinois Electric and Gas^Company
Iowa Public Service Company
Great American Industries*
Howard Stores,
We
American Railways Corporation
Black Hills Power and Light Company
Electrolux*
I
SQUARE
MASS.
9,
1990
New
Angeles Stock Exchanges
CHICAGO
Me., Prior.& Stpd Pfds.J
Light & Powe'k Com.
Cons. Cement "A"*
a
OFFICE
BOSTON
Tel. HUB
Boston &
,
POST
10
1-672
Appl.
Los
1529 Walnut
Bird & Son*
Conn.
I
BUCKLEY BROTHERS
Members
LERNER & CO.
CHICAGO
BARCLAY
United Light & Rwy. Com. W. I.
12M
-
Circular sent upon request^> f-
Exchange and Other Principal Exchanges
NEW YORK
Auto Car
Market 12
Chicago, 111, September 8, 1944.
■
emphasize production of
goods and services more
We
ever.
have
must
em-
ployment, not unemployment; If
we
fail to encourage labor, tax
and other policies which will pro¬
mote
high levels of output,, and.
employment, we may find the
social security burdens becoming
unbearable.
i We must reduce the heed for
security benefit payments.
social
At best, social security constitutes
only half rations.
Organized society always has
provided v for1; its less fortunate
members.
marks
of
That is
one
of the
civilization.
Our
ear¬
own
forefathers, following the English
pattern, set up poor farms and
almshouses.
Like them, the peo¬
ple of the United States today
,
to
want
who
are
Our
care
for
their
citizens
in need.
mode
of
(Continued
,
life
grows
on page
more
1270)
-
.
THE COMMERCIAL & FINANCIAL
Number 4318
160
Volume
Girdler Corporation
1245
/
CHRONICLE
Dealers Only:
Stock
<7
Engineering
Interstate Aircraft &
Bought—Sold—Quoted
Abitibi Power & Paper J
'
M
Corporation
BANKERS BOND £
UYtSf 1967
latest developments
INCORPORATED
and
Brochure
LOUISVILLE 2, KENTUCKY
soft drink
Bell Teletype LS 186
Brown Company V"
;
;:
1st FLOOR, KENTUCKY HOME LIFE BLDG.
Long Distance 238-9
..5s, 1953
.
Aldred Investment Trust
x
5s, 1959
photographs in color of the new
-
Canadian InternatT Paper
dispenser available on request,
6s, 1949
Montreal Lt., Ht. & Pr.
3y2s, 1956/1973
TRADING MARKETS
American
?
FRED W. FAIRMAN &
Federal Water & Gas
208 SOUTH LA SALLE
Bantam Car
Buffalo, Niagara & East.
S1.60 Preferred
Members
Chicago
inc.
52 William St., New
Teletype NY 1-395 -"
Montreal
New York
Bell System Teletype
CG 537
1975;
5s,
East Coast Public Service
Outstanding New;Developments i
Teletype:
NY 1-375
'
•
1946:;
6s,
Telephone:
; ;
Community Water Service
Trinity Place, New York 6, N. Y.
BOwling Green 9-7400
4s,
1948D
concerning
Eastern Minnesota Power
Interstate Aircraft & Engineering Corporation
National Public Service
management has been fully demonstrated in
First the complete conversion to war —
then the complete planning for the postwar period.
On July 24,
1B44, Interstate signed contracts with one of the largest soft drink
dispensing machine organizations iri the United States for. full rights
Tyler Building (N. Y.)
5>/2s,
2 TRADERS
.WE buy
BONDS
The importance of
this engineering company.
opportunity for
one
experienced
over-thecounter trader to locate in
our New York office -r- and
Exceptional
WITH
r
'■
-
"
'•
one
Coupons Missing
for
office.
'phone Mr.
Salary. Write or
Further
Members New York Stock
1 Wall
1. Arthur Warner & Co.
Y.
St., New York 5, N.
120
York
Broadway, New
COrtlandt 7-9400
Telephone
Teletype NY 1-955
DIgby 4-7060
either
vestment
and
field
desires
background
TRADER WANTED
in the in¬
years
nect with a New
a
to
good
con¬
York :Stock
Exchange or an old line un¬
listed
Controlb' gome
firm.
listed and unlisted
iness.
Box, (S
Financial
&
bond bus- 1
14, Commercial ]
Chroniple,
Spruce St., New
York'
25
'
w
;
»
It
r
r
■
for
•
'' ' *
•
'
*
plus
Excellent
'
,
"
'
the
•'
'
J;-'
Firm,
commission
opportunity.
Box
20,
W
Financial
Financial Chronicle)
CHICAGO, £LLA-Louis E. Corrington
is,;C£0w- .connected .with
to
servicing of
the
phenomenal growth of the
drink dispensing machine is
and
favorably
known
to
The
soft
well
every
Machines are seen
day in theatres, clubs, office
one.
buildings and manufacturing con¬
cerns;
War conditions prohibited
Chronicle,
25
manufacture,
Spruce St., New York 8, N.
(Special
and
&
Y.
riod.
will accrue
of the
from the in¬
Profits to Interstate
machines
George
associated
with Coburn & Middlebrook, 465
—
W. Hawkes has become
only 128,000 shares
to
Pacific Coast Stock i
—
and
—
certain
Quotations and executioni for
In
the
switch-over
to
war
In¬
immediately
became a
factor in the manufacture of pre¬
terstate
Elected
for Dietz
Members
Chamberlain & Co.
interesting
circular
:i
,i ;V»-' V
may
• •
/
be hadj problems of tooling up.
And then too, the financial cap-
a.
I i; i
r i
1
Z
hi I V i
e*;
/
,t.
York Stock Exchange
Exchange
Stock
commodity exchanges
14 WALL STREET
BArclay 7-4300
Provosty,. well
known in banking circles in the
Northeast, has been elected ViceLt.
Olivier
O.
Treasurer
President* and
York
New
Los
Francisco
San
<
Angeles
; Honolulu
,.J
,
ofuthe
Federal Inter¬
Products Co.
American Maize
General Tin Investment
Tokheim Oil Tank & Pump
Co.
resigned to
Ohio Match
enter the field
of commercial
banking.
Universal Match
Lt.
on
VI
military
Frederic H. Hatch & Col
leave from the
bank,
has
served
Sec¬
as
as
ifi
,i
Incorporated
63 Wall
with the bank since 1933 and who
has served
\
is* a
Provosty, who
cision actuating
request.
New
Francisco
San
Admit
from the firm upon
:
and other security and
Edward D. Jones Co.
manager
eastern'markets.
Dean Witter & Co.,
,
trading
brokers,
Pacific
on
including those
Direct wires
-
vas
institutions
securities,
Coast
units in the air¬ retary of the
Otis & Co., Field Building. In the
Congress Street. Mr. Hawkes was craft industry. Careful planning
organization
past
Mr. Corrington was with previously with F. L. Putnam & developed exceptional volume and
since 1934.
A
Co. for many years.
even though this company was in
Straus Securities Corp. and A. G.
graduate of
the top tax bracket for the fiscal
V Becker & Co.
Tulane Uni¬
(Special to The Financial Chronicle)
Olivier O. Provosty
period ending April 30, 1944, the
versity in New
SEATTLE, WASH.—Donald H. net earnings per share exceeded
(Special to The Financial Chronicle)
Brazier as
now
affiliated with $5.70
per
share.
The ratio of Orleans, he has seen active service
PORTLAND, MAINE—Morgan
in the Pacific and is now attached
John R. Lewis, Inc., 1006 Second profit was under 4V2%, which in
to the Naval Air Station at New
P. Hunter has joined the staff of Avenue.. Mr. Brazier was former¬ conjunction
with the high tax
Orleans, La. - >>•
•
<
Bond & Goodwin, Inc., Union Mu¬ ly connected with Dean Witter & bracket makes the likelihood of
The promotion of Lt. Provosty
Co. *
'
'
;
renegotiation unimportant. As of
tual Building.
was one of three promotions which
July 31, 1944, the net current as¬
became effective Aug. 21.
Percy
sets equalled approximately $11.00
W. Pickard of Northampton was
per
share and the book value
Gyrus Lawrence To
made secretary of the bank to take
about $13.50. •' v,
<
•
Cyrus J. Lawrence & Sons, 115
Lt. Provosty's place, and will also
This excellent financial position
Broadway, New York City, mem¬
serve,; as
acting Vice-President
bers of the New York Stock Ex¬ builds for the successful recon¬
Mr. Pickard
version to peace without the wor¬ during his absence.
(Special to The Financial Chronicle)
change, will admit Paul C. Ander¬
is
a
graduate of Massachusetts
ries of the inadequate capital for
sen; to partnership on Oct. 1. Mr.
ST. LOUIS, MO.—John E. LamState College and served as sales
expansion. In selecting its peace¬
bick has become associated with
Apdersen r; has
been associated
time venture, Interstate not only manager for the Bowker Chem¬
Edward D. Jones & Co., 300 North with the firm for some time.
ical Co. for 10 years. In 1934 he
picked for manufacture an item
entered the employ of the bank
Fourth Street, members of the
having exceptional profit-making
as a credit examiner. In
1942 he
Mew York and St. Louis Stock
Bottling Co. Attractive
possibilities, but one that could be
was
made Assistant Secretary, a
Hoit, Rose & Troster, 74 Trinity built with a minimum of recon¬
Exchanges and other leading ex¬
The facilities position he has held since that
Place, New York City, have pre¬ version problems.
changes.
Mr. Lambick was for
time.
7/;
pared a circular discussing the sit¬ of Interstate are such as to lend
Montague W. DeWolfe of Longto
the
immediate
nany years with Friedman, Brouation in Panama Coca-Cola Bot¬ themselves
meadow, who has been connected
*aw
& Samish and prior thereto tling Company.
Copies of this switch-over with practically no
J. E.Lambick Joins
and
dealers
By Fed. Intermediate
is
selected localities.
Exchaiiges 5 ; ;•
//
Open to 5:30 P. M. (e.w.t.)
which also have
Lf. Provosly
has
stallation and operation in
to The Financial Chronicle)
PORTLAND, MAINE
italization of Interstate is
creating a
mediate Credit
tremendous pent-up demand.
A
Bank to take
survey
indicates
that
literally
the
place
of
thousands of good locations for
George
M.
profitable operation will require
Stebbins, who,
capacity operations for a long pe¬
thereby
from both the manufacture
If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
T^e
all of
in
the
Commercial
8, N. Y.
'
referred
States
placement
every
Replies treated in confidence.
Bell Teletype
indirectly as a
or
machines.
with
preferred.
clientele
Salary,
-
^
Unlisted
Street
basis.
'
••' -7-
Broker-Dealer Personnel Items
(Special to
directly,
service company in any or
TRADER
With many
Incorporated
-.
•]
7
New York 5, N. Y.
NY 1-897 r
;
63 Wall Street
confined
of common,
of Washington, Oregon, California, stock, there are no i bonds or pre¬
ferred
stock
outstanding.
This
Nevada; Idaho,
Montana, Wyo¬
ming, Utah, Arizona, New Mexico, single common stock capitaliza¬
tion builds for unusual earning
Colorado, Nebraska, South Da¬
kota, North Dakota, Kansas, Okla¬ leverage; Interstate appears des¬
homa and Texas.
w
\ tined to become an outstanding
Under this phase of the con¬ factor in the modern method of
sdft drink dispensihg. '' ; ?'' •
tracts,
Interstate
can
operate
and the sales agency
Exchange
Frederic H. Hatch & Co.
signed^--
were
the distributor
in the States
making Interstate
Joseph H. Young.
Gude, Winmill & Co.
contracts
1951
6s, > 1953
V--
of manufacture.
Boston
our
*'•'
■
Toronto
,
American Water Wks. & Elec.
Established 1914
York 5
WHitehali 4-3990
Bell
HoiiRsseSTrsster
74
HAnover 2-0980
St., N. Y, 5
WILLIAM
Board of Trade
Stock Exchange-—'Chicago
Telephone RANdoIph 4068
George R. Cooley & Co.
52
STREET
ILLINOIS
CHICAGO 4,
Common and Preferred
HART SMITH & CO
CO.
a
-
•
junior officer for
:ii
...
u'.,
•,.
/
Street
New York 5,
Teletype NY .1-897
the
past 10 years, has been named
Secretary to take Mr.
Assistant
Pickard's place.
Mr. DeWolfe
will
Assistant Treas¬
urer of the bank. !: A graduate of
the Bentley School of Accounting
and Finance, Mr. DeWolfe has had
many years of experience in the
commercial banking: field both in
the United States and in Canada.
retain his jpost aS
Jenks, Kirkland To
Admit Donald Lovejoy
member of
Exchange,
Donald M. Lovejoy,
the
New
York
Stock
partnership in
Will be admitted to
Jenks,'Kirkland & Co., on Oct: 1.
Mr. Lovejoy, formerly a partner
in Foster, Brown & Co., will make
his headquarters at the firm's New
Street.
Estabrook Brown, who
York office at 30 Pine
•
■
George
has
New
in
Kirkland &
will (retire from the firm as
been
resident
manager
York for Jenks,
Co.,
of Sept. 30.
?•
.
N. Y.
Bell
i
i
•;
.
:
,;v*
X1
THE COMMERCIAL & FINANCIAL CHRONICLE
1246
Thursday, September 21, 1944
SPECIALISTS
in
MARKETS IN
TRADING
J
REAL ESTATE
I
ARNOLD BERNHARD & COMPANY
Real Estate Securities
Investment Advisers
SECURITIES
the removal of their offices
announce
to
Incorporated
Members New York Stock Exchange
Members New York Curb Exchange
40 EXCHANGE PL., N .Y.
Members
Dlgby 4-4950
Teletype NY 1-953
Bell
%
larger quarters
Seligman, Lubetkin & Co.
SHASKAN & CO.
York Security Dealers
New
Association
Broad Street, New York 4
41
350 Madison Avenue
.
HAnover 2-2100
(24fh Floor)
'
;
NEW YORK
Real Estate Securities
We Are Interested In
*
1929
Since
New
17, N. Y.
Telephone: VAnderbilf 6-3965
Buying
By JOHN WEST
ALL
PUBLISHERS
Commercial Rent Ceilings Important To
FRED F. FRENCH Stocks
AND
The
TUDOR CITY UNITS
to take
The VALUE LINE INVESTMENT SURVEY
thousands of real estate bondholders might do well
many
cognizance of the current agitation for
ceiling
a
OF
Bondholders
on commer¬
building rents in the City of New York.
%
>
calling of landlords has always had a popular appeal by
cial
Name
C. H. TIPTON
SECURITIES
politicians.
are
BROADWAY
ill
bondholders collectively^
relegated to the position quiring long leases
Many
Y. Security Dealers Ass'n
Members N.
landlord's vote lost there is
for each single
After all
always the possibility of securing a hundred tenants' votes.
CORP.
now
Their income is de¬
of landlords.
NEW YORK 6, N. Y.
pendent
WOrth 2-05IO
many
ity of their investment is not only
dependent on sufficient income to
business
them interest, but also
of
plus
TITLE CO.
was
and
made
BENJAMIN, HILL & CO.
Exchange
1 WALL STREET, N. Y.
amortized
forced
article
will
we
East River Savs. Bank
fact that landlords, in
re¬
a
fuss
these
lower
rents
bond
ado
is
issue
received
rental
which
of
with
the
about
made
in
decline
did
in
not
Eliminate
And Presents A Ten Point Program For Reconversion,
And Tax
Recom¬
mends A System Of Technical Assistance And A Method
Exemptions For Small Business Are A Part.
To Make New Products Available To Small Business.
It is
the
Outside
proportion
of rental
income necessary to pay taxes.
the
blooded
Income
Rent
Required
Real
to Pay
Rate Per
Percent
Sq. Foot
Rented
Rent Roll
Estate Tax
Assessment
Estate Taxes
S4.454
100
$2,008,936
$307,360 '
$11,300,000
14.7
11,300,000
13.0
10,500.000
17.3
9,800,000
'20.4
1,897,744
302,840
255,150
1933
3.619
73.64
1,201,837
1934
3.953
65.11
v
Real
1,160,628
266,560
54.08
903,087
266,490
9,450,000
1936_
eco¬
65.71
.948,000
255,150
§,450,000
n ess
Well,
the
73.78
1,007,220
260,820
9,450,000
2.935
76.80
1,016,622
276,884
9,450,000
1939_^____.
2.685
77.83
941.946
278,775
9.450,000
1940__
2.515
73.33
832,423
268,200
9,000,000
33.2
67.08
771,041
253,820
8,575,000
65.72
663,311
255,535
8,075,000
man.
because
little
34.3
1941
1942
...
foot from 1935 to 1939
per square
decreased
'•*
V
ize rents
William
from
The
White
or
$3,703
1935 and the second in
■;
29.7
his
Mr.
White
is
President
of
to the life and
The
bankruptcy resulted in cut¬
ting the first mortgage bonds 50%
to
was
two
these
bankrupt¬
holders
National
York.■
Bank
of
-v7
.
/
Buffalo,
On:;
Proceeds
OregofrWashihgtbii
preferred
tions
Iron
and Interstate
offer
according
$5
pre¬
attractive
situa¬
circulars
to
issued by G. A. Saxton & Co.,
70 Pine Street, New York
Copies
upon
may
just
Inc.,
City.
be had from the firm
request.
Trend Of Rail
McLaughlin,
Baird
Earnings
&
Reuss,
1
Wall Street, New York City, have
prepared
entitled
rowing
an
interesting discussion
"Interpretation
Trend
Decline."
may
of
Rail
of
Nar¬
Earnings
Copies of this discus¬
be
had
from
the
upon request.
firm
town
banking syndicate, headed by
Kuhn, Loeb & Co., on Sept. 18
awarded $5 4,7 5 0,0 0 0 refunding
cific.
mortgage 3%
the
bonds, series A, of
$17,444,000 owned
The
Oregon-Washington Railroad
Navigation Co., on a bid of
102.089%. The bonds guaranteed
&
bonds
option
the
whole
any
on
of
Union
Pa¬
redeemable
are
any
by
the
date
company
or
as
at
a
in part on
interest payment date
on
40
regulations
he
pleases.
Be¬
he knows his business will
America
enterprises
These
young
their
make
'round from the
their home town.
people resolve to
go
in
own
mark—to
be
dependent, whether in a trade
a profession.
in¬
or
The company will also
to
the
Union
issue and
Pacific, simul¬
taneously with the sale of the
ries
A
bonds,
$17,440,000
of
!4%
or
before Oct. 1, 1958.
se¬
princi¬
are
for redemptions made
also redeemable for the sink¬
pal amount of refunding mortgage
ing fund
bonds, series B, at the
terest date.
bid
same price
by the bankers for the series
A bonds.
tion
on
The bonds
on
any
premiums
the regular
semi-annual in¬
Sinking fund redemp¬
will
be
one-half
redemption premiums.
Then
clamped
more
the giants, saying it
on
which time
at
The very nearly 3,000,000 small
of our country repre¬
sent the foundation of local and
businesses
taxation.
state
The
taxes
they
support the schools, along with
the local and county governments
pay
business in the main is small bus¬
The
giant industries of to¬
day began as small enterprises.
However, when a concern becomes
huge and strongly established, it
i
*An
address
before
the
America,
New
1944.
by
Mr.
Research
Maverick
Institute
Waldorf-Astoria
York
City,
of
Hotel,
September
gone
economic
freedom
for the bigs as well as
Economic
freedom
littles.
period.
Any schoolboy knows that eco-.
was gone,
nomic liberty
march
side
and human freedom
side, or neither
Therefore, if w0
by
marches at all.
iness.
premium
leaders
Nazi
be better if the
I960.
a
prevalent. Small
eliminated.
was necessary for national safety.
community grows, Soon only "Ayrans" were allowed
work
in
the 'government
if its schools, churches, parks, and to
or
concerns:
charitable organizations are ac¬ government-dominated
rights of racial, religious, or eco¬
tive and well supported.
Townsmen point with pride to nomic minorities were wiped out.
Labor organizations disappeared.
the independent business estab¬
lishments within their community. Then the Nazis took over the bigs,
cause
throughout the nation.
•'« II4'*'
Independent
business, big
or
little,
means
expansion. • New
ing scale downward to
encouraged more than-
was
pretty much
unconditionally by the Union Pa¬ days' published notice, at the prin¬
RR., are being reoffered to cipal amount
plus a premium of
the public at 102%% and accrued
5% for redemptions made on or
interest.
They will be dated Oct.
before Oct. 1, 1945, and on a slid¬
1, 1944, and mature on Oct. 1,
cific
sell
business
the
as
cartels and mon¬
on,
were
and became
Because he builds, puts money in
the home town bank, and talks
of
and
1932
opolies
ever
was
Jan. 1,
in Germany during the;
the Nazis rose to power.
pened
period
From
the
on
significance of small busi¬
terms of civil liberty is
in
probably its most important fea¬
ture.
The best example of loss of
freedom is indicated by what hap¬
cept of how the economic wheels
to redeem
approximately
$54,750,000
refunding
mortgage
bonds due Jan. 1, 1961, outstand¬
ing in the hands of the public, and
A
Bakeries $5
the sale of both
1945,
By Kuhn, Loeb & Go.
Cleveland-Cliffs
from
The
ness
Their children get their first con¬
first
conserva-;
or
.capture his share of the market.
will be used
New
become
to
static. Thus in a healthy
economy
there must always be
little businesses.
The, real com-;
petitive urge to try something
completely
new
and
different
series, together with other funds,
-'v
Attractive Situations
ferred
bond¬
ask for their prop¬
may
the first in erty?
Delaware, Lackawanna and West¬
sion
1942.
the
ern R.
R. Co., and its
subsidiary
companies. He is also a Director
of the Manufacturers and Traders
f
obligation
welfare of his
Maury Maverick
last
reduce taxes.
result
cies of the property,
!
s
o
conscious
$2,685,
while assessed value of property —from $1,000 bond to a $500 bond.
remained the same—yet. no agita¬ Can
you see any justification now
tion from the politicians to stabil¬
to restrict the rents
"I';
i
27.5
>
home
You will note that rent received
nv m
en¬
35.3
2.23
ana
terpriser
26.5
3.027
1938
tends
tive,
you
business
27.7
....
1937
often
the little busi-
26.6
3.199
1935
1
x
it, J comes from the man with a rep¬
He must out¬
to utation to build.
know
older conqern; he
why 1 produce the
am
for
little must do a better job if he is to
want
cw of Rental
94.46
o
1 d-
o
c
force in America. t<Two, it is an
nomics of
White to the Board of Trustees.
1932
free
enterprise and
civil liberty.
Record of 61 Broadway
1931
of
wark
Savings Bank
the election of William
One,
quite elementary—but important—to say two things.
small business is a great economic
essential bul-<S>
up
and
Which Adequate Financial Opportunity
Of
per
keep
income)
Holds Government Controls
Big Business.
Essential In Post-War Period To Protect Small Business
increasing
addition to
raising commercial rents, are re¬
That
Little Business Has Been Coddled Or That Aim Is To
was
estate
tion
percentage has increased.
Much
Government Small Business Agency Chief Denies
foot, the decline in occu¬
pancy
of the property, the in¬
evitable real estate taxes (reduc¬
required to pay
this
River
time
No
Chairman, Smaller War Plants Corporation
on
insisted
square
through the years
Win. While Trustee Of
East
each
made.
real
decline
how
illustrate
much of income is
taxes and how
The
insisted
and
Society
By MAURY MAVERICK*
period
a
of saving taxes. Later in the
pose
DIgby 4-0964 ;
over
A Democratic!
was
of after bond issue into default and
years, the investment will
ulti¬ bankruptcy. No cry was made by
our politicians at that time to reg¬
mately be lost.
In a radio broadcast this past ulate rents.
The history of 61 Broadway and
Sunday, the Mayor of the City of
New York placed much empha¬ the figures of that building made
sis on the fact that some land¬ public
by Harry Forsyth, Esq.,
in
lords were raising rents and at the trustee
bankruptcy of that
same time trying to get a reduc¬
property,
are
very
interesting.
tion in assessments for the pur¬ They illustrate the sharp continual
be
Bought—Sold—Quoted
:
leases
when
can
depreciate,
fuss
No
tenants
rents
newal
unless the investment in them
MORTGAGES
announces
when
lower
on
to
After
investment.
do
buildings
all,
CERTIFICATES &
Members New York Stock
their
which
with
income
amortize
made
declines.
year-to-year
a sur¬
is claimed
It
long leases will force
firms into bankruptcy if
their properties.
pay
The Place Of Small Business In
induce¬
an
these
that
rentals derived from
The very secur¬
on
as
for renewals.
ment
14,
want
to
freedom,
unlimited op-;
portunity for small business and,
free enterprise.
Recently I have seen articles
we
and
must
have
preserve
true
preserve
read
statements
urging
They
that business "be let alone."
say:
"Let's
business
says
politics out of'
industry."
Another
keep
and
business will take care of the
man
who takes care of
business
his business.
What does this real¬
There seems to be an
implication that when war is over,
we should do away with all laws
ly mean?
relating to business and let some
magic Dame Fortune wave a wand
and bring back Prosperity by a
miracle or something.
(Continued
on page
1265)
porting to show fundamental
Tomorrow's Markets
Walter
value
seldom the basis for
are
Minneapolis, St. Paul & Sault Ste. Marie
public participation. In fact,
these analyses are quoted only
when a particular stock is hit.
Whyte
Says—-
New
potential
ance.
By WALTER WHYTE
t-
Just
as
to
went
press
tries
the market
wobbly and
once
of
moval
war
a
The
•without
1
cance.
obvious
is that the sellers
answer
take that
nical fundamentals.
First of
in the
study of conversion fig¬
post-war hopes or aca¬
ures,
all, most of the selling on the demic surveys.
It is to be
first drive, during the latter found
right in the market it¬
portion of it, anyway, came self.
*
*
*
from outsiders, or the board¬
room crowd.
I grant the pos¬
On
Sept. 7 the familiar in¬
sibility that such selling may dustrials
made
a
low
of
be well informed.
At best, 142.53; the rails, 38.75.
On
possibility
and not a probability.
The
large mass of public in the
market is seldom guided in its
buying and selling by motives
however, that is a
secondary reaction the in¬
dustrials went to 142.65; rails,
the
The latter lows were
38.58.
made
on
(i
(Common)
••
•
during the Sept. 14
industrials did
the
reaction
not
Issued)
the I lows of
According to Dow,
under
go
Sept. 7.
exponent,
Hamilton, ".
when
and his best known
Bought—Sold—Quoted
Peter
.
one
an
old
other
•oi t an
almost
That
Josephthal&Co.
York 5
Boston 9
have
secondary reaction
On the contrary,
bullishness
by specific developments
such as system refunding opera¬
speculative enthusiasm can not be
tions or prospects, and company
supported under such prospective
earnings conditions. This is par¬ purchases in the open market.
ticularly true of lower grade bonds
Considering
that
there
have
which have reaped the greatest been no sustained significant mar¬
the
market
(Continued on page
BUY WAR BONDS
thought, even though ex¬
trend of
bullish
tremely
outlook
reconversion
trend of the market.
"Interpretation of Narrowing Trend
is
so,
it is claimed that
background for any
no
vor
of
a
tunity to release obsolete
pensive
and
a
pro¬
and ex¬
equipment from service,
in
decline
should
on
other
and
Exchange
York 5, N. Y.
120 Broadway, New
LaSalle
So.
231
St.,
Chicago 4, 111.
SEABOARD AIR LINE
for
us
some
RAILWAY COMPANY
*
TRADING MARKETS
Old and Neu)
I|C
time, and
Securities
that where bonds of
ciation
in
a
Van Tuyl & Abbe
WALL STREET
72
5
YORK
NEW
short period.
decline as
have been experiencing it is
In
we
such
orderly
an
bonds
paying
interest
such
as
Southern Pacific Debentures, New
Baltimore & Ohio
K
•-
of
continuation
Stock
leading Security and Commodity Exchs.
there diifipult at times to realize that
longed decline in prices for rail¬
road securities. Arguments in fa¬
overtime
pay¬
ments, are expected to facilitate
the reduction of costs more rapid¬
ly to a reduced level of traffic.
The arguments can go on end¬
interest payments. Missouri
Pacific
system
obligations are
down ten points or more and New
Havens as much as thirteen, al¬
'
'
Conv.
'
*>\V,
".v
",:V
•'
'•••
-
<
.
''
4,/2«, I960
Pollak Manufacturing
148 State
St., Boston 9, Mass.
Tel. CAP. 0425
:
:
Teletype BS 259
any
though in these two instances the
declines were compensated for in
N. Y. Telephone HAnover
Situations
2-7914
Of Interest
V
H.; Roller & Co., Inc., Ill
Broadway, New York City, have
F.
part by cash payments on account
will tell which of past due interest. If this trend prepared a memoranda on Great
school of thought is correct.
So continues
even
those
railroad American Industries,' Laclede
far, however, those looking for analysts with a gloomy outlook Christy Clay Products and In¬
lower prices have had all the best
diana Limestone which the firm
may begin to feel that the pros¬
of it so far as actual market per¬
pects have been adequately dis- believes appear attractive at cur¬
formance is concerned. The action £ountech
rent levels.
Copies of these in¬
of railroad securities as a whole
teresting .circulars may be had
lessly but only time
..
has
been
inspiring, ex¬
from
far
Public National Attractive
cept for special
year's high.
Second grade bonds
have, on the average,
done some-*
price was
applica- approximately five points below
the high and some eleven points
1265)
are
now
trading
request from F.
H. Koller
& Co.
•
the
of
possibilities for
offers interesting
investment, according to a memo¬
randum issued by
&
Co., 61
C. E. Unterberg
Broadway, New York
Mohawk & Malone
City. Copies of this memorandum
outlining the situation may be had
upon
Railway
request from C. E. Unter¬
berg & Co.
3Yzs, 2002
;
brokers and dealers in the new "when
as
upon
Public National
Bank & Trust Co. of New York
Stock
Guaranteed principal and
SEABOARD RAILWAY COMPANY.
by New York
SEABOARD 50 year 1st 4s
SEABOARD 70 year income
interest
Central R. R.
(Unlisted)
4V2S
SEABOARD Non-Cumulative
Pfd.
SEABOARD common
request
A
Members New York Stock
WALL STREET
YORK
TELETYPE
NY
exchange name is given
by
us
1. h. rothchild & co.
Exchange
NEW
stock
required
Mclaughlin, baird & reuss
The gradual nature
been with
-
of the fence
and if the outlook for
civilian production after comple¬
tion of reconversion remains fa¬
this
of Rail Earnings Decline"
HANOVER 2-1355
has
heavy selling developed,
declines in prices for individual
issues have been quite substantial.
MEMBERS
York
New
really
questionable
there have been the exponents of investment caliber are held for in¬
the
theory
thatv rail
earnings come the income potential for
would be well sustained through¬ two or more years can quite read¬
out the reconversion period.
If ily be offset by principal depre¬
other side
the
On
We
TEL.
longer
the
over
when
ket breaks and that at no time
of the reces¬
has been completed and a normal sion has apparently obscured in
economy
reattained, have been many quarters the fact that at
highly suspicious of the interim least a moderate bear market has
term
issued" securities of the new
Discussion of
ONE
fected
Followers of this
boom.
war
what better—the recent
replaced it.
Practical
LAfayette 4620
Copy
vidual issues which have been af¬
by this group,
which further has contended that
situations and bet¬
dissipated)
is
ter grade bonds. As measured by
granted. Yet, according to the the Dow-Jones averages defaulted
classical theory there was no bonds have recently been selling
basis in market action for this closer to their 1944 low than the
cautious
St.
the
had been
taken for
REctor 2-5000
Telephone:
;
invariably deceptive."
bearishness
returned
bearishness.
19 Congress
without
the inference is
.
(assuming that it
and other Exchanges
Telephone:
.
the
with
York Stock Exchange
120 Broadway, New
level
.
.
breaks through
average
•;?rsfcbo-
Members New
sudden.
and
sharp
therefore expected
is
~'fi
'f
United Lt. & Rwys.
(Common When
is
decline
the
when
traffic,
traffic
York
Central junior mortgages,
good Northern Pacific junior mortgages
earnings are many and varied. It (except the 6s which have been
(on
the first rally)
were is pointed out that inasmuch as
fairly heavily bought by the com¬
145.09 and 39.61.
On the next virtually all of the railroads are
pany), etc., have fallen off eleven
in the excess profits tax bracket or twelve
points from their 1944
upward move the averages ad¬
the impact of at least any initial
peaks. In the defaulted section
vanced to 144.58 and 39.28,
decline in gross will have little Frisco and Rock Island liens have
respectively. A casual glance influence on net after taxes. declined eight or nine points and
at these figures shows little. Continued
lend-lease shipments the St. Paul's nine to 13 points de¬
But a second look will dis¬ are expected to support traffic to spite favorable reorganization
a considerable degree.
The oppor¬ progress and without even making
close that
O'ls.
Delaware Pwr. & Lt.
in above the 1944'low. This section
A has been supported to some extent
period of unduly low earnings is by the favorable action of indi¬
of
vorable,
Sept. 14.
hope and
On
the rallies, following
Erudite analyses pur- each
break, figures reached
other than those of
Tear.
cutback in war
No, the answer to "what of benefits, at least marketwise, from
the market" is not to be found
/would be to disregard all tech¬
traffic accompanying the
production, and lasting perhaps a year or more. Rail¬
roads traditionally have been relatively slow to bring their expenses
into line with the reduced levels
—------——-
%
#
the basic reason
as
5y2s
considerable difference of
time past there has been
some
thought has visualized a sharp decline in
ingly.
plished their liquidation and
'were
standing pat.
But to
as,
opinion among rail men as to the probable effect upon the market
for rail securities of the end of the European war.
One school of
bilities and has acted accord-
had accom¬
4s, 4.%s,
Railroad Securities
For
signifi- body has evaluated the possi¬
particular
The
Bell Teletype—NY 1-310
Telephone—DIgby 4-4933
of
Sept. 7.
predecessor, the current
ing fact that makes for pes¬
downswing of market prices simism.
Yet, this fact, if it is
didn't bring out the confused
a
fact,
has
already been
selling that characterized the
weighed by the market. For
".first breakdown.
long
before columnists or
$
❖
#
market analysts begin "view¬
On the surface, this failure,
ing with alarm'' it is axio¬
if it can be called that, is matic that somewhere, some¬
•"
Alberta
New York 6
61 Broadway
re¬
stimulus
anywhere from $7 "billion to
But, unlike
$8 billion is cited as a sober¬
tion of
York Stock Exchange
Membirt New
news¬
post-war conversion
hits them in the eye.
'threatened to emulate its ac¬
Y;its
Province of
print have been devoted to
the difficulties facing indus¬
last week's column
became
again
of
reams
Optioned V. T. C.
pflugfelder, bampton & rust
stocks.
of
buyer
and
Reams
1991
Ger. Inc. 4s,
4V2s, 1971
Bought & Sold
tion of either the holder or the
by technical market perform¬
Arden Farms
and if issued Securities
as
Free Common V. T. C.
Reading newspapers quoting
Sept. 7 lows indicates nearby people in authority offers
rally. Bearishness unjustified very little to fire the imagina¬
confirm
to
When,
Common & Preferred
1st Inc.
market
of
Lack
1247
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4318
.Volume 160
S
1-1310
Members
National Association
of Securities
Dealers, Inc.
on
all
and
Adams & Peck
transactions.
63 Wall Street,
specialists in rails
52
wall
street
HAnover 2-9072
n. y. c.
5
tele. NY 1-1293
New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
THE COMMERCIAL & FINANCIAL CHRONICLE
1248
Thursday, September 21, 1944
SINCE 1889
Halsey, Stuart Offering
Two Equipment Issues
Headquarters For
Halsey, Stuart & Co., Inc., were
the successful bidders Sept. 14 for
Quality Cutlery
Northern States Power
(Del.)
ADVERTISING
6% & 7% Preferreds
All
In
,
Branches
Its
Sextoblade Razors and
Bought
Sold
—
Plans
Quoted
—
Prepared—Conference Invited
Albert Frank
Blades.
Cutlery Repair¬
ing of Every Description.
Guenther Law
-
Incorporated
Paine, Webber, Jackson & Curtis
commercial
cago
138 Fulton St.
bankers
45 Nassau St.
CO. 7-1176
RE.
for
2-9192
&
North
same
Effects On
equal
Utility Securities
Ayres Sees Difficulties
Utility Earnings If Excess Profits
ning
Beardsley Ruml, Treasurer of Macy's and Chairman of the Fed¬
York, recently proposed that corporation
Rapid Military Advances Make Plans For Gradual
altogether, except for a 5% franchise tax
Reconversion Of Industry To Civilian Production Begin
and a 16% tax on undistributed earnings—and the proposal was
echoed by Leon Henderson, former OPA head.
However, the war To Look Sadly Theoretical.
with Japan is expected to continue for some time after the end of the
In the Sept. 15 issue of the Cleveland Trust Company's "Busi¬
European war and it is unlikely
ness Bulletin," Brig. Gen. Leonard P. Ayres, Vice-President of that
that
Congress will "go all the companies, for example). Where
sinstitution
way" when a German armistice is figures are available, it is not
Each termination will cause some
signed. It seems more likely that always clear whether the postwar predicts that
unemployment, at least tempo¬
the excess profits tax, which now tax credit has been deducted or because of the
rarily.
Most cut-backs will not
"dazzling ra¬
amounts to 95% less a 10% post¬
not.
Then, of course, there is a pidity" with
immediately cause unemployment
war
credit, will be substantially
mixture of tax rates' due to the which the war
because the manufacturer whose
reduced—possibly
cut
in
half.
contracts are reduced in amount
is
being
Even if it were discarded alto¬ fact that interim statements in¬
will keep his employees at work,
in
gether, the income on which it is clude parts of two calendar years. fought
and even increase their number
Europe,
the
paid would automatically become The
accompanying table, there¬ plans
if he can, in the attempt to com¬
pro¬
subject (under the present law)
rule-of- posed for
plete his war orders just as fast
to
the 40%
normal and surtax fore, reflects merely a
as
possible. Probably there will
repayments; hence the result would thumb attempt to adjust recent gradual
only slightly more favorable
than halving the E. P. T.
Utility companies have borne
a heavy
burden of taxes as
compared with other industries
(largely
for
technical ; reasons
rather than congressional intent)
that they should be among the
principal beneficiaries of any such
tax reduction.
Of course, on the
other hand,
gross
revenues
are
expected to decline; but the huge
such
s
amount of power sold
to
in¬
war
dustries has not been very profit¬
able and its loss may be offset,
in the
ness.
tax
the
among
year
by
busi¬
or
so,
calculations
related
ratio.
Gas
the
to
taining
figures
intricate
most
which
attempt.
do
not
not
Also
segregate
show
utilities
many
total
income
taxes,
and
or
excess
tion
come
Hudson
are
not
panies here listed.
There are,
panies
of
course, some com¬
from
(omitted
table)
our
instance
conspicuous
dated
Edison,
ago
year
is
which
have
to
profits taxes separately (the Elec¬
E. P. T.
A
Consoli¬
expected
to
pay
sub-holding
this year, but has staved
.
Ratio
Adj.
12
Holding
Company
Half of
Recent
Earn.
Recent
price to
Months
Systems
EPT per
Share
per
Price
Adjusted
Share
Earnings
Share
About
Earn.
$1.35
$2.27
$3.62
31
8.6
.64
.42
1.06
(Consol.):
American
Period
Gas
*Coltimbia
Gas
&
Electric_______-
June
Engineers Public Service.__
Federal
Niagara
.North
Hudson
__
Power
"■Standard Gas &
Central
111.
E.
Delaware
Detroit
P.
G.
_______
L
_
Edison
of
Indiana_______
tEmpire District Electric
Community Public
Newport Electric
Missouri Utilities
Gas
6.3
.70
1.21
1.91
11
5.8
5.3
.28
.53
.88
June
7.75
.29
.57
3
2.38
18
7.6
1.10
1.98
16%
8.4
12.70
20.45
67
3.3
1.85
,
*
1.00
1.88
19
6.6
June
.20
1.78
1.98
28
14.2
July
.62
2.59
3.21
44
June
.45
1.07
1.52
15 '/a
June
2.88
10.2
in
creases
would
fit
civilian
in
production
war,
the kind of warfare that General
is
waging in Europe.
During the past month great de¬
velopments have followed one an¬
engaged in producing muni¬
tions
the
conversion
back
to
ci¬
production is going to be
good deal more difficult than
a
the
conversion
8.8
was
4.9
1.68
19 &
peacetime
11.6
3.32
18
5.4
1.56
2.10
2.84
3.47
.57
2.07
2.64
23>/a
8.9
June
.45
1.33
1.78
13
7.3
14%
f
7.1
A 6.1
21
from
making
goods to making war
goods. It is much simpler to have
one wealthy customer who knows
to
34.8%
decline
to
figures
may
32.7%
These
above.
bring up
to date any of the long diagrams
of business activity published by
this
be used
bank,
•
have
we
taken into
much
so
larger
factory work
proportion
a
population that it
our
evitable
that
large
them must turn to
of
in¬
seems
ing
6.6
.10
1.77
1.87
15%
widely
diversified
views
of
"During the months of 1944
had
in
this
country
business insolvencies than
we
fewer
in any
previous period of similar length
in our history.
The demand for
goods and services has been so
'
Crescent Public Service 6s 1954
Portland Electric Power 6s 1950
great
and
become
so
general
almost
impossible
what
similar
period
of
of
price
some¬
business
inflation
ordinarily low
but
imme¬
At that time
the number of failures
Co.
a
for
immunity from failures during
the first;World War, and in the
diately following it.
&
that it has
businesses to fail. We had
months
Gilbert J. Postley
was
now
extra¬
there
are
still fewer of them.
BROADWAY, NEW YORK 6, N. Y.
Direct
Wire
to
Chicago
with
on
Halsey,
the reoffer-
Otis & Co.; L. F. Roth¬
Co.; First of Michigan
Corp.;
Gregory
&
Son,
Inc.;
Schwabacher & Co.; First Cleve¬
were
schild
&
land
Corp.; Hirsch, Lilienthal &
Singer, Deane & Scribner;
S. Yantis & Co., Inc.; Bioren &
Co.;
F.
Co.; Hill & Co.; Mason, Moran &
Co.; Wm. J. Mericka & Co.; Mullaney, Ross & Co., and Alfred
O'Gara & Co.
Halsey,
& Co., Inc.,
Stuart
ceived also the award of
an
re¬
issue
of
$2,500,000 Chesapeake & Ohio
equipments, maturing from 1945
to 1954, on a bid of 99.75 for a
1%%
interest rate.
icates
were
These certif¬
reoffered at
prices to
yield from 0.85 to 1.925%, accord¬
ing to maturity. Other members
of
the
offering group included
Hornblower & Weeks; Otis & Co.,
Writer
&
Christensen,
Inc.;
Singer, Deane
Schwabacher & Co.;
&
Scribner;
Stein
Brothers
&
Boyce; the First Cleveland Corp.;
Hill & Co.; Mason, Moran & Co.;
William J. Mericka & Co., Inc.;
Mullaney, Ross & Co.; F. S. Yantis
&
Co.,
&
Co.
Inc.,
and
Alfred
O'Gara
Allen & Co.
Opening
Jersey City Office
Allen
Co.
opening
are
an
of¬
ing much discussion of cut-backs
and terminations of
war
contracts,
Greenberger & Co., New York
Exchange
member
firm,
Stock
will
as
of Oct. 1 by
Greenberger, j Exchange
formed
be
Eugene
member,
general
partner,
and
Gar¬
field,
limited
partners.
Offices
will
be at
120 Broadway, New
York City.
Mr. Greenberger has
Julius Garfield and George
as
an
individual floor
occupations.
"During the past
been
a
there has
year
shrinkage of
the
almost
been
more
than
number
of
one
wage
equally divided
those
tween
durable
workers
the
Value
offices
to
York
in
been
Within
indus¬
Probably
this
indicates
is
Investment
Sur¬
the removal of their
larger quarters on the
of 350 Madison Ave.,
New
City.
telephone
VAnderbilt 6-3965.
Available On Request
copqqnof
They have been widely dis¬
tributed.
number
th£ shrinkages
notably
few classes
a
these
Line
vey, announce
New
goods.
Co., invest¬
advisers, and publishers of
goods, and those making
not
tries.
Arnold Bernhard &
ment
j
Quarters
floor
broad subdivisions
trated
In New
24th
nondurable
have
be¬
Arnold Bernhard & Co.
producing
Schenley Distillers Corporation
have prepared an
let
containing
attractive book¬
the
first
articles
that the decreases in the numbers
in the series they
of workers in
manufacturing have
ning in the "Financial Chronicle."
been caused by
Copies of this booklet may be had
in
large
measure
the taking of many
,
"Before long we shall be hear-
Forming Greenberger & Co.
broker.
ing industries. This shrinkage has
8.4
have
Associated Gas & Electric Issues
ing
Co. Inc.
been active
their wants.
American Gas & Power 3-5s & 3.6s 1953
Stuart &
of
in
5.3
63
financing
Associated
1954.
of
numbers
other sorts
employed in manufactur¬
26
9.54
recent
cer¬
0.90%
industrial
"Total
million
4.93
■v.; 4.87
on
from
obligations maturing in 1945
for obligations maturing
in
-
earners
2.82
4.67
/v
scaled
were
to
compete for the patronage of
large numbers of customers hav¬
June
to
normal, and preliminary
figures for July show a further
exactly what he wants than it is
2.11
figures based
for
above
vilian
1.35
.54
declined
•
.33
.63
had
it
tion equally well tnis time in the
in most large in¬
corporations have been first 12 months following the de¬
reexamining their own postwar feat of Germany.
Our industry
plans in recent weeks,., and in has been much more
fully con¬
many instances these reviews have
verted to war production this time
increased their worries. The plain
fact is that for most industries than it was in the last war, and
18'/a
May
June
"Executives
20
1.94
and run¬
On reoffer-
coupon
to 15 years.
tificates
an
certificates
Inc.; L. F. Rothschild & Co., Bio¬
ren
& Co.; Gregory & Son, Inc.;
Moore, Leonard & Lynch; Peters,
dustrial
2.29
1.38
2*4%
a
one
for
100.183
of
fice at 15 Exchange Place, Jersey
production in
City, N. j. Murray R. Lavin, who
the first year following the last war
other with continuous and daz¬
has been associated with the New
was only about 3% less than it was
zling rapidity, and there is every
York office of the firm for the
in the final year of war. It seems
likelihood that they will continue
past eighteen years, will be in
improbable that we shall be able
to do so right up to
the final
charge.
to sustain the volume of produc¬
climax.
3.81
tPro-forma
29
be¬
Ayres
nicely with a grad¬
but that is not
ually fought
June
Gas______
P.
reconversion, gradual release of
war
controls,
and
gradual
in¬
July
Natural
will
have
1.34
Companies:
Southern
Leonard
ing."
1.84
June
_______________
islands
numerous.
Industrial Production
hower is wag¬
: 1.97
1
June
of
the
more
Gen¬
.95
-
June
________
Service,
kind
:
period
Eisen¬
eral
13.7
.
p r o-
warfare
now
I
June'
___________
Service
3.5
16
July
Indianapolis P. & L.____
Philadelphia Electric
Public
14 &
2.56
June
Edison
Light & Power______
&
4.10
1.62
June
Elec., $7 pr. pfd.
&
1.99
.94
f
Dec.
Operating Companies (Elec.-Gas)
Connecticut
2.11
,
June
_____
Co.__________
Corp. of N. J.._
Commonwealth
4.3
Dec.
American
Public Serv.
41/2
June
July
Light & Traction____
Middle West Corp.
*
i
July
'
Electric___
&
civilian
Eisenhower
a
some
it off thus far.
Share
and
war
"Outputs of factories and mines
been declining
in volume
since
last
October according
to
"Now that our armies are fight¬
perhaps of much value for com¬
the index of the physical volume
parative purposes because of ing on German soil," states the of industrial
production compiled
"Business Bulletin," "the plans for
pending reorganization plans; and
by this bank. In October the com¬
gradual reconversion of industry
bined production was 40.8% above
in lesser degree this may be true to
civilian
production begin to
the computed normal level.
By
for most of the other holding com¬ look
sadly theoretical. Gradual
tric
Bond
of
"The
which do not pay any E. P. T.
on
islands
ob¬
Standard
Electric, Niagara
numerous
to
areas
not fit in with
price,
for
from
industrial
our
duction does
price-earnings
revised
a
The
&
recent
be in most of
then
The
are
Power and Columbia Gas
are
security analyst is called
to
do
a
adjusted share earnings,
conversion
unemploy¬
ment surrounded by still prevail¬
ing labor shortages. In the transi¬
profits taxes.
excess
,
.Federal
the
of
course
profitable residential
more
share earnings for cancellation of
half the
of
to 2.10%
Holds
taxes should be Eliminated
be
bid
ing by the winning group the
Ahead In Reconversion
Taxes Are Decreased
eral Reserve Bank of New
one
amount
carrying
the
to ten years.
group submitted an al¬
ternative
Public
Ry.
with matur¬
coupon,
running
The
$5,180,000 Chi¬
Western
associates bid 99.229
and
1%%
a
ities
riiiiiiiiiiiiiiiiiiiiiiii'iiii'iiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiii'iiiiiiiiiiiiir'iiiinHiniiiiiHiiiiiiiiitl
banks.
issue of
an
WECK CUTLERY, Inc.
Philadelphia San Francisco
Boston Chicago
aggregating $7,680,000.
The sales were marked
by unusually close bidding on the
part of several investment firms
For
Telephone COrtlandt 7'5060
ESTABLISHED 1879
indebtedness
and
New York 6, N.Y.
131 Cedar Street
certificates
issues of railroad
two
of
.
men
into the
i workers."
run¬
request by writing to Mark
,
arme(^ services, and the difficulty
replacing
upon
have been
them
with
other
Merit, in
ers
care
of Schenley Distill¬
Corporation,
350 Fifth Ave.,
New York 1, N. Y.
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4318
160
Volume
ADVERTISEMENT
Investment Trusts
NOTE—From time to time, in this space,
INTERESTING
Babson Advises Against Switches
Roger W.
divide $500
can
get
ery
the
same
re¬
up
sults
Established
Co.
&
Members New
1926
Phone:
Bell
REctor
York Security Dealers
V
2-8700
Teletype NY 1-128
,
Association
Enterprise
'Phones
Hartford 6111—Buffalo 6024
buys an in¬
good invest¬
ment
trust vestment trust stock and it goes
up in price, or some other stock
stock.
By JOHN DUTTON
goes
down, the
salesman will
'j /'
•'!
1
|,
'
: \-.A
•
^
J \
come
around and want you to
Advantages
Investment switch in order for him to get an¬
Nearly Every Salesman Has
other commission.
There are a
trust stocks,
Sometimes you can like a security TOO MUCH!
hundred
different good invest¬
There comes
like
every¬
ment trusts and
these salesmen a time when even the best of securities should be sold; There is a
thing else .in
watch them all with the eye of a time when accounts should liquidate even the most attractive situ¬
this
world,
hawk.
If
they
find
one
that ations—general economic conditions at times demand it. Then there
have their ad¬
are securities that have an attractive outlook one year and,
due to
vantages and yields a trifle more or shows a
little
more
rapid
appreciation, extraneous or other unavoidable circumstances which make their
their disad¬
As
a
soon
as a
person
The Securities Salesman's Cornei
,r
,
>
.
v
,
,
.
Made This Mistake
advise you to sell what
you
have and switch into this
other investment trust stock. They
fail to tell you that the slight in¬
vantages.
addition
Babson
W.
Roger
I n they
t
of
tage
outlined,
o
advan¬
their
diversification already
there is the advantage of
Every investment
who takes con¬
siderable pride in securing for his
supervision.
trust has a manager
possible rate of
combined with fair safety.
the highest
trust
interest
I
those
like
ferreds
pre-
any
be
may
yield
in
crease
THAT
YOU
GONE
THAN
or
appreciation
temporary.
ALSO
WHAT
THEY SWITCH
but
PROBABLY
UP AS MUCH OR MORE
WHAT THEY WANT YOU
INTO
HAS
a
first lien on the
assets.
Although these managers make
mistakes at times, yet you should
be much better
off in having your
watched in this way.
you should employ a
personal investment advisor.
Stocks and bonds cannot be put
away in a safe deposit box and for¬
gotten any more than can eggs,
holdings
Otherwise,
barges. Such
We stood
business.
Halsey, Stuart Offers
$30,000,600 Brooklyn
Onion Gas Bonds
do this. Some¬
thorough job of selling the client
it then becomes a difficult procedure to
such
a
situation that it is impossible to persuade
the customer to sell regardless of all the evidence that can be placed
before him-which should prompt him to take such action.
This
condition can be avoided if the salesman himself takes the time
and trouble to do a little missionary work himself.
His clients should
the merits of a particular
on
that
the
will
of their investments AFTER THEY
policies of his firm are such that they
be
informed
be
advised regarding the status
This is nothing more than an opportunity
Co., Inc., to sell a service and do a bit of intelligent educational work regard¬
headed a large group of invest¬ ing sound investment procedure that every salesman can accomplish
ment bankers
that publicly of¬ day after day as he makes his regular calls on his customers and
fered Sept. 20 $30,000,000 Brook¬ prospects.
fruit, or even clothing. Remem¬
There are times when securities should be sold at a loss—better
ber
what the Bible says about lyn Union Gas Co. general mort¬
a
small loss than a large one.
It would be a great world if every
"where moth and rust doth cor¬ gage sinking fund bonds 3l/2 % se¬
ries due 1969 at 102 \'2. The com¬ security you sell your clients over a period of years should make
rupt and thieves break through
pany plans to refinance its entire profits for them—but this is an impossible accomplishment.
The
and steal."
outstanding funded debt by the best results that any security dealer can procure for his clients is
issuance and sale of the bonds and
to do better for them than the average investors can do for them¬
The SEC Is Helpful
This is the proper approach in soliciting retail accounts.
$12,000,000 of debentures which selves.
Many bankers and corporation are being offered by a syndicate If
you don't promise the impossible you'll never be placed in the
officials like to throw mud at the headed
by Harriman Ripley & Co., unfortunate position of fulfilling the impossible. V,Securities and Exchange Commis¬ Inc.
So it all boils down to selling a service—sell sincere intentionssion who at times are very slow
Net proceeds from the sale of sell the desire to help and assist the investor in doing a good job
and
provoking.
On the other the new securities, together with for himself. Don't be afraid to go back and face a client if a
hand, I am certain that they are general funds of the company, security you have sold begins to look sour.
Lay the facts on the
honest and that their intentions will be applied and deposited as
table—be frank about it—show that customer that you and youi
are of the best;
Their difficulty follows; $14,000,000,' plus interest firm have his interest foremost in mind by facing the facts. He'll
is that they are "biting off more to May 1, 1945, to provide for the
appreciate it more if you do this when it is right and necessary tc
than they can chew'' and are per¬
payment at maturity on that date do so. If you don't call the turn when a security begins to go sour
haps suffering from a bad case of of the first consolidated mortgage
you'll find that it will be much more difficult to do so after it has
indigestion.
The cure for this is 5% bonds; $6,000,000 in U. S. curdled.
for them to trust more details to Treasury notes to provide funds
And don't oversell anything—no matter how much you like itthe judgment of those needing for the payment at maturity of
it isn't necessary to marry people to securities to get them to buy
their approvals.
$6,000,000 principal amount of them in the first instance... There may be a time when a divorce is
The
Securities and Exchange first lien and refunding mortgage
too difficult to procure.
Commission
is certainly doing bonds, series A, 6%, due May 1,
y
.X..■
;:v- V: v'-;
A'-'iWVV*i-vf
much for investors in connection 1947; $10,000,000, plus a premium
with
investment
trusts.
Some of $300,000 and interest, for the
years ago some of the investment redemption on Nov. 1, 1944 of the
trusts did very wicked things. In¬ first lien and refunding mortgage
S. M.
siders loaded them up with secur¬ bonds, series B, 5%, due May 1,
ities which they knew were no 1957; and $18,000,000, plus a pre¬
"A general decline, affecting most branches of manufacturing
good, and purchased from them mium of $360,000 and interest, for is recorded by our index of industrial activity, which fell from 224
for themselves securities which the redemption on or before Nov.
at mid-July to 221 at mid-August (1937 — 100), while the percentage
they felt were valuable and would 1, 1944, of the 20-year 5% deben¬ of
factory capacity utilized fell from 125 to 123.
The food and
go up in price
Of course, this was tures.
clothing groups were both slightly lower; many textile mills, among
very wrong but it has all been
The
funded debt and capital others, were closed altogether for a period to allow all employees
stopped by the Securities and Ex¬ stock of the company outstanding to take their summer vacation at<3>
change Commission.
Investment after completion of the proposed one time. The wood products and in July, compared with 226 in
trusts are now watched almost as
financing,
will
consist of the pulp and paper groups were again July, 1943 (1937=100). The de¬
carefully as are State banks.
bonds, $12,000,000 of sinking fund more active, although less so than cline extended to almost all ma¬
Stuart
HAVE BOUGHT THEM.
&
V
•••'
•<
'
*■■■•■ r
Canadian Manufacturing Lower
In Aug. States
Wedd of Canadian Bank of Commerce
In order to
tion
and
must pay
sponsors
get this
diversifica¬
management, investor!
a "loading charge." The
of an
investment trust—
"manufacturers" so-called
—usually take a commission of
% of 1% plus the cost of super¬
the
or
vision.
They, in turn, usually al¬
to the wholesalers plus
low
2%
5%
to
you
stock.
the retailers from
buy the investment
This means that
whom
trust
there
is a loading charge of
about 7V2%, equivalent to about
usually
$75 per $1,000,
in the price of
which is included
the stock.
will be content to buy
the stock and hold it, this load¬
ing charge is not unreasonable;
but if you—say once a yearIf
you
switch into some
other
investment
the docks at Law-
an
of
distilleries is
Ohio,
important inland waterway,
is a
prime factor in speeding the flow of
essential war alcohol to the syn¬
thetic rubber and
other
And
explosive plants.
distilleries
important
principally in sections of
Kentucky, Indiana, and Pennsyl¬
situated
vania
which
are
are
close to the waterways
making history again.
riverboats
Great fleets of modern
smashing bottlenecks in
are
wartime
transportation.
There they go,
downstream
vital
.
these steamboats,
the busy liquid
over
highways, carrying, besides,
coal,
grain, flour,
machinery—from Pittsburgh, Chi¬
cago, St. Louis, Cincinnati, and
Minneapolis. From Wisconsin,
Michigan, Illinois, and Indiana
coke, finished steel,
come
minelayers, destroyer escorts,
patrol vessels, landing craft, hard¬
hitting PT boats. Down the Ohio
and Illinois rivers they go into the
Father of Waters and out to sea
and action. The Ohio, Illinois,
Monongahela, Allegheny, Kana¬
wha, and Tennessee rivers reach
into areas rich in natural resources.
Industrial centers such as Pitts¬
burgh, Cincinnati,
Chicago, Louis¬
ville, Minneapolis, St. Louis, and
New Orleans are all linked by these
precious waterways
which have
taken much of
the transportation
load from the
ever-whirring and
overburdened wheels of our
rail"
roads and trucks.
What
a
thrill to this
who stood and
landlubber
watched the river
activity at its all-time
we
high! We
while
thinking of VICTORY,
hummed that beloved,
were
jes keeps rollin'
..
he
along."
MARK MERIT
of SCHENLEY DISTILLERS
CORP.
postcard or letter
to Schenley Distillers Corp., 350
Fifth Ave., N.Y. 1, N. Y. and you
FRFF—Send
a
will receive a booklet
containing
reprints of earlier articles on
ous subjects in this series.
Missouri Pacific
vari¬
Analysis
Of Interest To Investors
A. W. Benkert & Co., Inc., 70
The automotive and jor branches of industrial employ¬ Pine Street, New York City, has
ment. Part of this was due to the made an original investment an¬
steel groups receded, heavy in¬
in the previous alysis of thq reorganized Missouri
Operating revenues for the year dustries recording a net decline pre - payment
The month of wages to cover holidays Pacific Lines, in which holders of
ended June 30, 1944, unaudited, for the first time this year.
non-ferrous
metal
trades
also taken in July, but it is obvious securities of any kind should be
were $25,843,449, and gross income
that for some
months past the interested. A copy of this study is
before interest and other deduc¬ were less active.
"Our wage payroll index fell trend of payrolls has been down¬ available to private investors on
tions, was $4,423,813. Correspond¬
application to the firm's statistical
ing audited figures for the year from 222 (revised) in June to 212 ward."
ended Dec. 31, 1943, were $25,510,department.
328, and $4,375,172; and for 1942, manufacturing facilities have an
NYSE Firm Changes**
aggregate estimated daily capacity
$24,948,753 and $3,975,084.
Reconversion Myths
Transfer of the New York Stock
The Brooklyn Union Gas Co. of 110,000,000 cubic feet for units
Strauss
Bros.' latest bulletin,
Exchange membershio of Francis
serves
30
of the 32 wards
in in- active service and 14,000,000
Myths," lists se¬
cubic feet for units maintained X. Deery to Edward H. White, Jr. "Reconversion
Brooklyn, and two of the five
will be considered by the Ex¬
lected securities in various indus¬
wards in Queens, in New York principally for standby purposes.
Purchases of refinery gas, based change on Sept. 28. Both are oartCity. It serves a territory with
tries, which the firm believes are
ners in Deery & White, New York
on figures for the past five years,
an area of about 105 square miles,
favorably situated. Copies of this
and a total estimated population have the effect of increasing the City, which is being dissolved as
interesting bulletin may be had
of 2,800,000.
For 1943, approxi¬ company's total estimated daily of Sept. 30, 1944. Mr. White will
mately 79% of its operating reve¬
act as an individual floor broker, upon request from Strauss Bros.,
capacity by 10,000,000 tc 12,000,000
nues were derived
from residen¬
debentures, and
Loading Charges
chug¬
located—on the Ohio. The
However, their clients at times, have to be unsold on a security
wh'ich the salesman sold so well when the original offering was
times the salesman has done
on
Schenley's principal
running checkup constantly behind every security they have recom¬
mended and sold to their clients—this is the way to keep clients
made and
incidentally, is
renceburg, Indiana, where one
a
TO SELL.
Halsey,
of eight or ten
tow,
boats and showboats.
arise, wherein prudent investment procedure indicates that
Most progressive retail organizations keep
a
a
ged along in her heyday, in the
glamorous old days of river steam¬
securities should be sold.
and build
it is twelve
could have carried when she
few years later, should also be sold.
No firm should-, neglect to notify its customers when these con¬
ditions
Tom
Twain,
twenty-four times as great a load
as the famous
"Robert E. Lee"
appearance a
bond issues so that you
or
will have
without
may
.
thousand tons of mixed war cargo
handled by a tow
Avoid Switches
ting $500 into
Mark
of
Shades
Sawyer, and Huck Finn! Is that the
"Robert E. Lee" comin' round the
bend? No, dear reader,
Direct Wires to Boston & Phila.
all of your investment.
put¬
by
Steamboat!
120 Broadway, New York
and it finally could eat
year
PUROLATER
Wabd
trust then you will be
one
SCHENLEY DISTILLERS CORP., HEW YORK
MOHAWK RUBBER
Special Circulars
paying this
but | loading charge unconsciously ev¬
stocks;
This is number fifty-one
Send for
up^>
ten
among
will be of interest to our fellow
SITUATIONS
MASS.
After one buys a
article which we hope
Americans.
of a series.
there will appear an
Com. & Pfd. v;
Investment trusts are useful for small
home and some life insurance and has
a small savings account, I now advise him to divide the balance betweent War Bonds (Series "E") and some good investment trust
stocks.
When one has his first $500 to put into securities, it is very
necessary to get diversification.
It is considerable of a bother to
BABSON PARK,
investors.
DOUGLAS SHOE
no
par common
tial
745,364 shares of
stock.
customers.
The
company's
a
year
ago.
cubic feet.
i it is understood.
32 Broadway,
New York
City.
I
THE COMMERCIAL & FINANCIAL CHRONICLE
1250
Thursday, September 21, 1944
R. G, Horn President
Acme Wire Co.
Mfg. Co.
Markets and memoranda
;
on
available
i
Danbury
Connecticut Brevities
Craigmyle,
offered to
on
Chas. W. Scranton & Co. of New Haven
the public $10,000,000 The
Connecticut Light and Power
Company, First and Refunding Mortgage 3% bonds, Series I, due
Sept. 1, 1974. .Priced at 105% and accrued interest, the bonds yield
2.72%
to maturity.
used
refund
to
the
$7,000,000
first and refunding 3V2S of Sept. 1,
increase
of
$20.43
over
the
past
#
#
*
The annual report of
year
showed
of
the Torfiscal
1944,
Company for the
ended
June
30,
income
net
after
taxes
which
vision
.
Federal
,
Elec^ic
Products recently purchased from
Colt's Patent Fire Arms Manufac¬
turing Company.
a
year ago
North
(both figures ex¬
elected for
was
one-year
a
&
Judd
Manufacturing
DE 167
Board of Directors of the Standard
of Detroit has announced that it will call
and
by-laws
were also amended at the meeting
to enable the membership to set
|
Accident Insurance Co.
special meeting in Octo¬
the fire insurance field
fire insurance company to be formed
Mr.
insurance plan.
group
a
Horn announced that
intensive
an
1.
through the medium of
for that purpose.
a
move
new
the
com¬
Interest
plans to issue 175,938 ad¬
pany
ditional
capital stock
3%
with
which will be offered to present
fee
on
shares
of
will
be
the
at
rate
of
Va of 1% commitment
a
the
unused
portion.
stockholders for $10 a share for
each share
CIO Electrical Workers
Planned
To Meet In New York City
A week's convention
ing workers in
represent¬
industry pro¬
ducing one-fifth of all metal war
materials
war
this
in
made
country
will open on
Monday Sept. 25, at
Manhattan Center, 34 Street and
8th Avenue, New York, at 10 a.m.
convention
United
a
!
•
To finance the
is
that
of
the
Electrical, Radio and Ma¬
dividend
increased
The State Administrative Board*
held.
now
rate
number
of
the
on
shares
is
transferred
$2,151,000 in payment
by the Grand Trunk Western RR.
the Wider Woodward construc¬
on
$1.45
share.
a
❖
%
tion
£
Highlight in banking circles was
the election of William A. Fisher,
one of the famous Fisher Brothers,
as
director of the Wabeek State
a
settlement to
the
highway
sinking fund to permit final pay¬
ment of $4,536,000 of the 17-yearold Michigan highway bonds, due
Sept. 15, 1944.
"
*
Bank.
Detroit
financial
trying. to
of
cance
circles
determine
the
the
were
signifi¬
inasmuch
move
as
June 30,
provision for contingen¬
Earnings per share of
$1.66 compare with $1.80 last
year.
Total
Federal
income
taxes and excess profits taxes
Phone
Cherry 6700
:
Michigan Brevities
The
Company for the fiscal year ended
cies).
MICH.
Teletype
chine Workers of America, third
another brother, Charles T., is a
1944, showed net income largest CIO affiliate, representing director of the General Motors
of $307,646 which "compares with 700,000 men and women in war controlled National Bank of De¬
$413,483 for the preceding fiscal industry.
troit, and a nephew, Charles T.,
The union has 161,000 men and
year.
Earnings per share were
Jr., a President and director of
women in the Armed. Forces and
that bank.
were $6,756,181.62. This is $965,$3.19 against $4.29 a share (before
#
if
$
*
renegotiation) for the correspond¬ itself has earned the special com¬
;«"■ 391.56 more than for the pre¬
First local stock offering in
ceding fiscal year—an increase
ing period a year ago. After rene¬ mendation of Under Secretary of
War
Patterson
and
the
Army
many
weeks was the offering
equivalent to 600 a share.
gotiation,
last
year's
earnings
of 50,000 shares of $1 par com¬
were equal to $3.29 a share.
publication "Stars and Stripes,"
,
The balance sheet as of June 30,
for
its record of
mon stock of Lincoln Park In¬
uninterrupted
More than $100,000 was added
1944, shows that current assets
production of war goods.
dustries, Inc., of Lincoln Park,
to surplus.
were $18,132,575 and net working
Mich.,
for
$1.75 a share by
The convention, to be attended
capital, $8,859,815. The volume of
Baker Simonds & Co.
The Bank Commissioner of the by more than 1,000 delegates, is
sales and net income before taxes
State
of
Lincoln Park industries has been
Connecticut
has
pub¬ regarded as particularly impor¬
exceeded any previous year.
lished the following list of addi¬ tant because it will formulate a engaged for the last 16 years in
Torrington will not be contions to the list of legal invest¬ program on such vital questions the manufacture of high-precision
>
fronted by many complicated
ments for Connecticut:
as jobs and employment now and
inspection and production equip¬
reconversion problems due: to
Discussion is ex¬ ment.
Connecticut Light & Power Co., after victory.
clude
DETROIT 26,
ber in order to permit the company to enter
constitution
The
Oct.
BUHL BUILDING
812
-
DE 206
Committee;
term.
The
$2,706,992.27 against $2,933,-
749
:
Co.,
membership drive would start on
year.
1966, which were called for re¬
On Sept. 7, it was announced
demption on Sept. 1, 1944, at 106
and interest, and to reimburse the that the fuse division of the Fed¬
company's treasury for the recent eral Electric Products Co. of New¬
purchase of $3,336,000 first and ark, N J., had been sold to the
refunding 7% bonds, due May 1, Royal Electric Co., Inc., of Pawtucket, R. I. This division is a sec¬
1951, at 125 and interest.
tion of the electrical products di¬
ington
& Co.
Members New York Stock Exchange
Teletype
Telephone
Randolph 5625
■
Frank Saline of James M. Leopold
up
Proceeds^ from the sale will be^
Executive
f the
&
Pinney
Wm. C. Roney & Co.
DETROIT 26, MICH.
for four year terms
elected
were
banking group of twenty-one firms headed by Put¬
& Co. of Hartford and
nam
Detrola
639 Penobscot Building
Co.; Spencer Phillips,
Tucker, Anthony & Co.; Richard
Ross, Dean Witter & Co., and John
Duff,
On Sept. 12, a
International
"
•
Michigan Markets
&
stock
■
■
Buying
were
lon &
New Haven
Waterbury
Established 1919
Members Detroit Stock Exchange
C.
Blanke, Eastman, Dil¬
Co., Vice-President; Archie
F. Harris, Merrill Lynch, Pierce,
Fenner & Beane, Secretary; John
A. Hevey, Ira Haupt & Co., Treas¬
urer.
Robert J. Davidson, Fahne-
Chas. W. Scranton & Co.
in
elected Presi¬
was
Other officers chosen
dent.
Members N. Y. Stock Exchange
-
of the
Richard G. Horn of Peter P. Mc-
Dermott & Co.
request
Donald
New London
meeting
Association of Customers' Brokers,
companies
these Connecticut
on
'
annual
the
At
Are Interested
Charles A. Parcells & Co.
Of Customers Brokers
Landers, Frary & Clark
United Illuminating Co.
Veeder-Root, Inc.
Scovill
We
Arrow-Hart & Hegeman Elec. Co.
■
Bond Club Of BeSroii
Elects New Officers
William M. Adams, Vice-Presi¬
dent, Braun Bosworth & Co. was
elected 29th President of the Bond
Club of Detroit for the year 194445
at
has
Jjpecial
a
Board
of
meeting
Directors.
been
of
Mr.
the
Adams
engaged in the security
business in Detroit since he grad¬
uated from Ohio State
with
degree
a
Science
tion
in
in
of
1927.
his business
Mr.
University
Bachelor
Business
of
Administra¬
Adams
started
in Detroit with
career
the Guardian Detroit Co., became
associated with Braun Bosworth
&
Co.
in
1932, and
elected
was
Vice-President in 1941. In 1929 to
*
the
that
fact
products
are
purposes;
their
peacetime
being used for
The
war
changeover
of
First and
Refunding, Series I, 3s,
Sept. 1, 1974. Mm
engaged in the production
type bearings, will
Chesapeake
Ohio Railway
Co., Second Equipment Trust l%s,
due serially to July 15, 1954. ' 1
probably require the most time,
although it is estimated that the
Chicago Union Station Co., First
(Guar.) Series G, 27/8S, due July 1,
cost will not be substantial.
1963.
the
plant at South Bend, Ind.,
now
of
heavy
pected to take place
on
questions
The
financing represented
involving the welfare of returning
tion of the holdings of certain in¬
servicemen,
dividuals
of
women
in indus¬
try, breaking down undemocratic
racial
and
prejudice in
developing domestic
nation,
our
and world markets
as
full employment in
a
means
to
America, etc.
Cincinnati Union Terminal Co.,
net
income
totalling
$167,416
which compares with $140,477 a
year ago/ The company paid out
$127,845 in dividends during the
past year against $71,025 for the
period ended June 30, 1943. Con¬
sequently, a smaller balance was
transferred
to
surplus — $39,571
against $69,452 in 1943.
First
(Guar.)
Aug.
1,
Series G 2%s, due
1974.
Union
Pacific
Railroad
Co.,
Equipment Trust, Series H, l%s,
due serially to Aug. 1, 1954.
Wheeling & Lake Erie Railway
Co., Equipment Trust Series J,
2%s to Is, due serially to Aug. 1,
1954, and Series^ 2V2S to l%s,
due
serially toSept. 1, 1954.
formerly identified with
the company..
Beneficial
Management Corp. of
Delaware, whose public relations
counsel is under indictment by the
that
Osier Resident
Mgr.
Of First Of Michigan
GRAND
grand
it
was
business in
RAPIDS, MICH.—The
Indicted
was
30, the equity per due May 1, 1971.
share of prior preference stock
was $129.49, which represents an
As
of
June
Tifft Brothers
Members New York and Boston Stock
Announcement
Associate Members New York Curb
Exchange
Primary Markets in
Hartford and
Connecticut Securities
Hartford 7-3191
of the election of
v
accounting
with 75 chapters and
from
Mr. Fiske
BOwling Green 9-2211
Bell System Teletype: HF 365
on
made
association
over 15,000
comes
leave
Massachusetts
the
War
Production
Board
at
was
of
1942.
in
elected to
Directors
of
the
Bond
the
Club in 1942, and has served as
Secretary & Treasurer, and as
Vice-President.
^
officers
elected
»
were:
ley & Co., Vice-President; Doug¬
R.
Campbell, First of Michi¬
Corp., Secretary and Treas¬
gan
urer.
■
recently purchased by Conti¬
•
other
are:
Chairman
of
-
of
members
H.
■
the
Russell
the
Hastings,
Program Com¬
mittee: Joseph J. Getz of McDonold Moore & Co., Chairman of the
Entertainment
Committee;
and
Ralf A. Crookston of Hornblower
& Weeks, Chairman of the
Publi¬
city Committee.
Shader Wmckler Co. Is 23
DETROIT, MICH.—The firm of
Shader, Winckler Co., Penobscot
Building, members of the Detroit
Stock
23rd
:
stood that S. R. Livingstone & Co.
National Stamping
Exchange,
birthday
on
celebrated
its
Sept. 3.
f
Howell EleclrirMotors
Co;
Mich. Off. & Theatre, L T. C.
Report furnished on request
Ind. Brownhoist, Issues
contemplating re-opening
their investment
troit.
of
America
was
Livingstone Go,
DETROIT, MICH.—It is under¬
are
of
He
business
Associated
with
in
De¬
L. A.
Darling Co.
Seabourn
to the
absence
Institute
of
where he has been
Professor of Accounting and Di¬
rector of tljie Sponsored Fellow¬
ship Prograpi.
He was National
President of the Association in
1942-43.
*
*
Washington, D. C. Prior to join¬
nental Motors, announced that his
ing the WPB he was representa¬
tive of Crouse, Bennett, Smith & firm has made arrangements with
Company in Grand Rapids and a group of banks for the regula¬
before that was with the Michigan
tion V-loan of $12,000,000.
The
Trust Company.
'
,
agreement was prepared by The
Wyman P. Fiske
industrial
Association
*
nicipal bond business for nearly
John W. Mulford, President of
except for the past two
years with the Salvage Division the Gray Marine Motor Co.,. which
20 years,
To Resume Business
been
Secretary of the National Asso¬
ciation of Cost Accountants, an
members.
of
of the Grand
S. R.
as
Technology
New York:
has
Board
appointed resident manager
His return to Michigan was or¬
Rapids office in the
dered after an extradition hear¬
Michigan Trust Building. '
Mr. Osier has been in the mu¬ ing in New Jersey.
in
Detroit Bank.
Cost Accountants
Exchanges
1943.
The
law
:
Fiske Nat'l See. Of
and
Board
tax
in
American
mittee of the Investment Bankers*
1939.
intangibles
the
Institute of Banking, was acting
Chairman of the Education Com¬
lass
Armand Robichaud
in connection with the passage
the
instructor
as
with
Howard L. Parker of M. A. Man-
been
of
served
Investments
Other
Michigan.
move.
-
Three
issues,
called for re¬
Earnings per share on the $4
prior preference stock were $11.79 demption, are withdrawn:
against $9.89 for the period ended
Providence Gas Co., First Series
June 30, 1943. Earnings on the $3 B, 4s of Feb.
1, 1963, Chicago
preference
stock
and
common Union Station Co., First
(Guar.)
stock for the same periods were Series
E, 3%s, due July 1, 1963,
$7.79 against $5.89 and 320 against and Cincinnati Union Terminal
190, respectively.
Co., First (Guar.) Series D 3y2s,
jury,
announced
withdrawing from
The corporation gave no reason
for the
First of Michigan Corporation an¬
nounces
that John T. Osier has
he
1931,
Association
religious
State
The midyear statement of Hartvnan
Tobacco
Company showed
a por¬
R.
Livingstone
O'Brien, who
bond
will
was
George
Manager of the
department of
the past.
be
the
firm
in
Mr. O'Brien has recent¬
Mercier, McDowell
Ulman, Moreland & Co.
Member
& Dolphyn
.
ly been with Straus Securities Co.
and
Allman,
which he
was
Everham &
Co.
Vice-President.
of
Buhl Bldg.
Cadillac 5752
DETROIT
26
Detroit Stock
Exchange
1051 Penobscot Building
Members Detroit Stock Exchange
DETROIT 26, MICH.
Teletype DE
Battle Creek
75
Lansing
THE COMMERCIAL & FINANCIAL
Number 4318
[V olume 160
1251
CHRONICLE
:
SEC Delays Decision On
5% Spread
(
(Continued from page 1243)
r
'
>
.
(b) Neither it nor the manner of its passage
has been
tom
STIFEL, NICOLAUS & CO.
common
INCORPORATED
v
common
St.
Louis
To Kansas
Stock Distributed
ciation.
of
investment
Merrill
impairment of
commerce.
considerably limited by the
which in ef¬
posed the following two simple, very simple issues:
Is the 4'5% spread" principle a rule?
about it?
BASED UPON THE LIMITED AND SIMPLE ISSUES
FIXED BY THE COMMISSION, WE ARE OF THE OPIN¬
ION THAT TWO AND A HALF MONTHS WITHOUT DE¬
CISION, CONSTITUTES AN UNREASONABLE DELAY,
AND THERE IS NO TELLING HOW MUCH MORE TIME
If it is, what shall the SEC do
WILL BE WASTED.
of this case to the public arid to the
securities field should have urged the necessity of a prompt
The importance
-
the Commission finds itself in an
by<§
headed
Bernheimer Co. and
Stern Brothers & Co., of Kansas
and
Baum,
City.;
anomalous
{position. During the hearing the suggestion was made
that its representatives may have had a hand in the promul¬
gation of the "5% spread."
The hearing panel avoided
any declaration on this subject.
If the suggestion is true
in fact, the Commission is sitting on an appeal involving
its own product.
It is to be hoped the Commissioners will
jiave the courage, in their opinion, to make a clean breast
pi this situation.
Delays of the type here involved cause general dissatis¬
faction with administrative bodies and make us feel that our
rights are safest with the courts.
THERE SHOULD BE AN IMMEDIATE DECISION.
;
,
stock
common
reached
a
new
Ward & Co.,
120 Broadway, New
prepared circu¬
lars on several situations which
currently offer attractive possi-
York
If
City, have
these circulars, on
the follow¬
rjbilities, the firm believes. Copies
ing issues, may be had
Co. upon
from Ward
request.
Attractive
Direct Private Wire
American
Hardware
offer
Stove
and
Per¬
1944, total resources
The
$387,063,755.
recently
amounted to
capital stock
split five for
one,
Missouri
dealers
of
Several
the 50 largest banks
members
On June 30,
in the United States.
dend
payments,
memorandum
according
issued
by
to
Mont
Laboratories
Airlines.
Members
••
York
New
Stock
Locust
503
and
Exchanges
Exchange
Other Principal
Street
ST. LOUIS 1, MISSOURI
t
^
.
Tel. Central 0838
Teletype SL 84
were
We Are Interested In:
headed by Halsey,' Stuart
& Co., Inc., which purchased the
$100,000,000 Great Northern Rail¬
group,
;
Bank
Louis
St.
Stocks
and
way Company General Mortgage
value being reduced to $20
Bonds.
Included
wereM Baum,
share from $100. A dividend Bernheimer Company of Kansas
of 600 per share has been de¬
City, Metropolitan St. Louis Com¬
clared, payable Oct. 2, 1944, to
pany, Reinholdt & Gardner, I. M.
stock of record Sept. 25. Net cur¬
Simon & Co., Stifel, Nicolaus &
rent
operating
earnings
were
Co., Inc., and Stix & Co., all of
equal to $5.24 per share in 1943
St. Louis.
and net profit was $6.01 per share
The First Boston Corporation of
including recoveries.
New York and G. H. Walker &
Kansas City Public Service
Co. of St. Louis were joint man¬
;
par
assents
Sufficient
were
Pickering Common
Lasalle
Metropolitan St. Louis
COMPANY
INVESTMENT SECURITIES
of the underwriting groups
tained
by
Kansas City Public
which purchased $10,600,000 Em¬
Service Company at the recent
pire District Electric
Company
stockholders' meeting to change
First Mortgage 3^s, due 1969 and
the Articles of Incorporation in
350,000 shares of common stock.
line with the new Missouri Cor¬
Other
Missouri dealers in the
poration Code. Irwin R. Harris,
common stock underwriting group
partner in the St. Louis invest¬
were Metropolitan St Louis Com¬
ment
firm
of Scherck, Richter
pany and Stifel, Nicolaus & Co.,
Company was elected a director,
The company serves a com¬
Inc.
replacing D. B. Eyer. In view of
pact area in Missouri, Oklahoma
the
greatly - improved financial
and Kansas centering around Jopposition of the company and con¬
lin, Missouri.
tinuation of the recent high level
A.
G.
Edwards &
Sons and
of earnings, interests close to the
company
a
Street
1, Mo.
Central 8250
L. D. 208
St. L. 499
.
Howard F. Defmer Go.
Formed In Ghicago
F.
ILL. —Howard
CHICAGO,
Detmer and John F. Detmer
formed Howard F. Detmer
have
& Co.
with offices at 105 South La Salle
Street, to act as distributors
and
preferred and common
stocks, utility and railroad bonds.
Howard F. Detmer was former¬
dealers in
expect the directors to Taussig Day & Company, Inc., St.
full year's dividend on
ly .with Dempsey-Detmer & Co.
dealers,
Louis
were
among
the
preferred stock at the Novem¬
and to also give con¬ underwriters of a 90,000 share of¬
sideration to the question of some fering
of
Solar Manufacturing
the
ber meeting
Corporation Convertible
Laclede-Christy Preferred To Be
Stock.
Redeemed ■;;
Clay Products
notified holders of its 6% pre-
Laclede-Christy
has
Locust
718
Saint Louis
agers
declare
Hotel, Beaumont, Texas
ob¬
by
The
Preferred
syndicate was headed
Noel & Co. of
Van Alstyne,
New
York.
Hare Has Two For Show
E. Walri Hare,
Rector Street,
of Hare's, Ltd., 19
New York City, is
proud daddy of a son, Nixon
Hare, born Aug. 31, 1944.
This makes two for him.
the
Wain
a
Co., Inc., 150 Broadway,.
New York City.
Copies of this
memorandum may be had from
*'
Baker &
Mid
-
Continent
si
Stix & Co
Airlines
request.
0. H. WIBBING & CO.
"
INVESTMENT
SECURITIES
Members
St. Louis
Circular on request
509 OLIVE
WHITE & COMPANY
Stock Exchange
STREET
-
American Export
Offices
G. H. Walker & Co.
underwriting
the
Amott,
"A" the firm
upon request.
Merchants
Distilling;
CrowellCollier Publishing; P. R. Mallory;
(General Instrument: Long
Bell Mid-Continent Airlines
Lumber Cp.; Great American In¬
Situation Of Interest
dustries; Mid-Continent Airlines;
Mid-Continent Airlines offers
Massachusetts Power & Light $2
an attractive
situation, according
preferred; Majestic Radio; Mag- to a memorandum issued by
pavox Corp.; Electrolux; Purola- White
&
Company,
Mississippi
tor; Brockway Motors; Mohawk
Valley Trust Building, St. Louis,
Rubber,
Moxie, Scoville Mfg.; Mo.
Copies of this memorandum
Douglas Shoe; Bird & Son;'Cons.
may be had from the firm upon
Cement "A"; Riley Stoker; and
Du
to
and Providence
per
interesting
possibilities for a prospective in¬
crease in earning power and divi¬
r
,
■
fection
York
New
corporated
payment on the common.
Prospects
ST. LOUIS
'
high recently of 9V4 largely re¬
flecting out-of-town buying in¬
terest and is currently selling in
Trust Company, in¬
the 8V2-9 range.
It is understood
in
1906, traces its
that William P. Hemphill, Presi¬
original formation back to 1865
dent, has acquired 8,000 shares of
when
the Kansas City Savings
common under his option agreeAssociation was established.
To¬
mMt.
•
'
day it ranks as the largest bank¬
ing institution in the Tenth Fed¬
Other
Underwriting Activities
eral Reserve District and is num¬
Commerce
in all
SECURITIES
•
Attractive Situations
L. D. 240
>■.:
Fast and accurate Markets
ierred stock that it is calling the
entire issue as of Oct. 1, 1944, at
following
100 and accrued dividend. A long
Missouri houses:
A. G. Edwards
term bank loan with
the First
&
Sons, Metropolitan St. Louis
National Bank in St. Louis will
Co., Newhard, Cook & Co., Inc.,
provide the necessary funds. The
and Stix & Co., all of St. Louis;
was
(1)
Of course,
firms
Lynch, Pierce, Fenner &
bered among
determination.
Teletype—SL 486
Missouri,
Beane and included the
law."
(2)
City,
Bldg.
by Transamerica Corporation,
owned
pany
Kansas
Landreth
803
ST. LOUIS 2, MO.
capital stock.
This stock was
Pacific Coast Mortgage Com¬
and Premier Insurance Co.,'and was underwritten by a group
Company,
(j) It is contrary to the common law and to trade
practices and usage by inferring fraud merely from the
spread between purchase and sales price of securities
despite the fact that no representations of any kind
accompanied such purchases and sales.
(k) It tends to limit and destroy the markets for
securities of the smaller corporations of the country
and is therefore against public interest and against
public policy.
(1) It is unconstitutional because it deprives securi¬
ties dealers of property rights without Jdue process of
j
Chicago
Peltason, Tenenbaum Co.
City and St. Louis dealers one of the more interest¬
ing pieces of business during the recent period of increased under¬
writing activity was the 37,315 share offering of Commerce Trust
fect
1944
.
L. D. 123
Commerce Trust Company
v
^Hearing Order of the SEC dated June 1, 1944,
.
Missouri Brevities
a
However, those issues were
.
,
St. Louis
Garfield 0225
2, Mo.
(g) It is unconstitutional because confiscatory, since
it disregards the profit motif in business.
(h) It constitutes an illegal exercise of legislative
powers and governmental functions by a private asso¬
"
.
St. Louis
Quoted
«—
SL 456
delegated.
modification of the law and of trade cus¬
and usage, which the NASD is without legal right
interstate
Louis
of St.
,
Landreth Building
Bell Teletype
never so
(i) It constitutes a burden upon and
Com.
SCHERCK/RIOflTEIl COMPANY
legally constituted and is therefore without
to effect.
Sold
"A"
St. Louis Bank Stocks
City Public Service pfd. &
Bought
Bonds
Class
5s
1st
1890
rule-making power.
(e) It constitutes the exercise of a legislative function
which the Congress had neither the intention nor the
power to delegate to NASD, and which the Congress in
(f)'.It is
&
4s
St. Louis Public Service Class "A"
Kansas
-
Line *
Southwestern Public Service
.
Preferred
Seven Up Bottling Co.
Midcontinent Airlines
any
fact
Income
Chicago & Southern Airlines
Missouri Kansas Pipe
-
St. Louis Public Service
.
amongst them that of having its members participate in
certain financial advantages and dealings to the exclu-sion of non-members; as a result, the NASD is a body
i,
Common
Marathon Corporation
Universal Match Company
cripple competition.
\ (d) It was promulgated by an organization,, to wit,
NASD, created under an illegal statute, to wit, the
Maloney Act, which contravenes the law of the land,
because it is special legislation in effect giving to the
NASD certain exclusive and monopolistic privileges
j
\ 1 Fulton Iron Works
Steel Products Engineering
/
approved by the Securities and Exchange Commission.
(c) It is monopolistic in its operation, contravenes
the anti-monopoly statutes in that it tends and will tend
to eliminate the small dealer in securities and thus
which is not
Anheuser-Busch, Inc. Capital
Berkshire Fine Spinning Assoc.
ST.Lomsl.Mo,
;
319 North Fourth Street
Mississippi Valley Trust Bldg.
saint louis 2
ST. LOUIS 1, MO.
Members St.
Coast to Coast Wire System
Louis Stock Exchange
Teletype
SL
158
L.D.
71
1252
THE COMMERCIAL & FINANCIAL CHRONICLE
?
Outlook For Post-War Interest Rates
Insurance & Bank Stocks
Bought
ANALYZED
Sold
—
REVIEWED
-
ments
COMPARED
-
a.
which
are
BUTLER-HUFF & CO.
Chicago
-
TELETYPE
A.
279
L.
-
Seattle
«
Bank and Insurance Stocks
declared
Company last week
holders of record
jshare. This action is significant, in that it represents the first in¬
crease in dividend rates made by a New York City Bank during the
jcourse of the war.
It will be recollected that- in 1937 Bank of Man¬
hattan paid
quarterly dividends oiv
———
—
119944320
194320
reduced to 20 cents, while in
was
1939
year-end extra of 10 cents
added, making the annual
share. Since this
bank's
net
operating
earnings,
exclusive
of
security
profits,
Situation
Growth
the
York
New
amounted
1942
and
to
$1.81
$2.01 in
per
1943,
share
and
City Banks
BANK & TRUST CO.
urally arouses some speculation as
to whether other banks, whose di¬
simi¬
restore
even
them
to
Laird, Bissell & Meeds
Members
New
York
Stock
Exchsnfe
120 BROADWAY, NEW YORK 5,
N. Y.
Telephone: BArclay 7-3500
Bell
Teletype—NY
It will
be noted that dividends
were not entirely earned
by soprominent New York City banks called operating profits in either
1940
or
1941.
Corn
reduced their dividends, viz: Corn
Exchange,
Exchange Bank Trust
National
Bank
Company, however,
and
New
Trust
York
Company, while in
1942 Bankers Trust Company cut
Its dividend. It may be of interest
to
review recent operations of
these banks and see how they
stand
with regard to
dividend
coverage by net operating earn¬
ings.
more
heavily
ity profits to make
earnings than have
other
Wall
curity
have leaned
appears to
somewhat
Street
profits
up
on
most
added
are
secur¬
total net
banks.
of
the
If
se¬
the
to
above
figures we find that the
bank earned $4.95 in 1940, $5.60 in
1941, and $3.55 in 1942, with no
In general, the
£
Banker's Trust reduced its quar¬ margin of earnings beyond divi¬
terly dividend payments in 1942 dends is considerably less than
from 50 cents per share to 35 that of Banker's Trust and con¬
cents per share, thus making its sequently the outlook for a re¬
rate
annual
$1.40
compared
with the former $2.
Its net
oper¬
ating earnings exclusive of secur¬
ity profits, have covered dividends
by generous margins, as the fol¬
lowing figures show:
Times
Net Operating
Year—
Dividends
Earnings
Earned
difference in 1943;
sumption
of the former rate of
dividends does not appear as fa¬
First National Bank reduced its
long-maintained $100 rate to $80
idend
1940-..-
3.36
2.00
1.68
1941—..
3.20
2.00
3.40
1.40
2.43
1943
3.80
1.40
2.71
Corn
Exchange
Bank
Trust
paid three quarterly dividends of
75 cents per share in 1941, but
as
60
thus reducing
cents,
nual
rate
from
$3
per
the an¬
share to
by net operating
years has been
recent
*
Net
Operating
Earnings
Dividends
Year-
Times'
Year-
$
Dividends
3.00
0.48
2.85
3.30
2.40
1.38
2.40
1.48
cumulated
is
Company paid
in
quarterly
per
1941
in
instalments
share, but in 1942 it
reduced the quarterly rate to 87%
cents,
This vast
gold.
surplus of gold increased the ex¬
bank
cess
during
reserves
the
or
$3.50
per
Jersey
Municipal Bonds
years
is
Its
annum.
as
follows:
Net
Year—
Operating
Earnings
Dividends
Times
Earned
s
$
5.11
5.00
1.02
5.36
5.00
1.07
1942—,.
6.06
3.50
1.73
1943—_
6.51
3.50
1.85
Bank Stocks
Earnings and dividends
J. S. Rippel & Co.
Established 1801
18 Clinton St., Newark 2, N. J.
MArket 3-3430
N. Y, Phone—REctor 2-4383 '
circulation
on
TOTAL
now
held by the
depositors. The present
position of the bank reserves from
the standpoint of maintaining low
tors
Associated Banks:
Williams
rates
reasonably
seems
This supply of
funds made money
safe borrowers.
rates very low to
the
Since
these
coming
reserves
excess
of the war
have been
While bank
private business have de¬
put to work rapidly.
loans to
clined
loans
to
Government,
the
Bank, Ltd.
BANK~OF
■
within another year.
(ESTABLISHED
Paid-Up
1817)
Capital
£8,780,000
6,150,000
Reserve
The
Outlook
for
Fund
Reserve
serves
Liability of Prop._ 8,780,000
i
Post-War
Bank Reserves
:
^23,710,000
Aggregate
Assets
Sept., 1943
the Government bonds offered
long
the
as
and
war
deficit financing continues.
purchases
bank
{further
will
ratio.
Just
increase
what
re¬
be
can
done to return the hoarded money
the bank
to
an
is
a
amount of money reserves
be far
wduld
unset¬
useful
more
large
expected
are
economic
Zealand,
There
of
amount
refugee
returned
be
is
countries of its
as
Street, E. C.
Berkeley Square, W. 1
Agency arrangements with Banks
throughout the V. S. A.
NATIONAL BANK
of
large
of EGYPT
•••.■ i
i
v
.
■
\
'•
•.
Head
Commercial
'
Office
•.
"V-
,
Cairo
Register No.
soon
as
economic conditions provide rea¬
FULLY PAID CAPITAL
RESERVE
FUND
.
£3,000,000
£3,000,000
sonable
safety.
Then there will
be the natural tendency for Amerr
icans
and
others
with
surplus
...
6
LONDON AGENCY,
,
.
and 7
*
A
•'.*
in
Towns
than
eign countries where prices and
crease
the
and
end
of this in¬
in bank purchases of
ernment
Gov¬
bank deposit
bonds and
liabilities is not in sight. Currency
has
circulation
in
risen
than 22 billion dollars.
to
more
Since the
peak of gold imports more than
2 billion dollars have been lost
which
paid an extra of 50
in 1941. Its recent
Times
Reported
Earnings
Year—
Dividends
Earned
rehabilitation
for
ican
travelers
war
years as
years
work
and
tourists
they did in
the
United
States
3.29
2.00
-1.65
1942__.
2.85
1.50
1.95
to
1943
3.30
1.50
2.20
national
the economic systems of
is generous and
earnings would
appear to justify a more liberal
dividend policy.
will
will
banks discussed above, or by any
other
banks, the necessity for
must
not
be
overlooked.
York Trust recently
New
increased its
capital funds through the issuance
pf 100,000
new
shares.
Other
banks are augmenting surplus and
undivided profits, and thus capi¬
tal funds, through the retention of
a high proportion of net operating
of INDIA, LIMITED
,
Bankers
torn countries.
the
war-
This is in addition
Head
Branches
the
International
construction
and
.
Fund
and
for
a
reasonable
estimate
out
the
This loss of gold will wipe
reserves
excess
doubt require a
'and
no
large reduction in
bank
deposit liabilities and note
circulation.
Unhappily this tran¬
sition may come at exactly the
time
when
called upon
the
for
a
banks
will
la
Uganda
26, Bishopsgate,
London, E. C.
India,
<
Subscribed Capital.
£4,000,000
£2,000,000
£2,200,000
Paid-Up Capital
Reserve
The
Bank
Fund
conducts
every
description
banking and exchange business ~
Trusteeships ' and
of
Executorships
also undertaken
premium
we are
be
large expansion
of their loans to private business
willing to
pay
for
loanable funds in all money mar¬
kets. ■; ;: ■ _; ■V ■& ;Ai' ' '
; ;^
.
Vanishing Excess Reserves Raises
•
Interest Rates
to
expect our gold reserve to shrink
50% within five years after hos¬
tilities.
and
;
It would be quite
seems
Government
Office:
in
Re¬
Bank
Development.'
the
Colony
Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
the contributions to the Inter¬
Stabilization
to
Kenya
be
impossible to
say with accuracy how much gold
or bank reserves this country will
In considering the possibilities be called upon to deliver in the
immediate post-war years. But it
of increased dividends by the five
of
NATIONAL BANK
pre-war
called upon to make contributions
and loans for the reconstruction of
1941—
rate
the SUDAN
new
bank reserves or
purchase of our
goods and services by foreigners.
2.06
the
EGYPT and
paid from the
offset by the
$
dividend coverage
and
and these expenses must be
1.50
it will be noted that
for¬
spend billions abroad in the post¬
3.09
case
in
■,
,
in
where there
enterprises. In addition the Amer¬
1940
In this
and
the
will be constructive opportunities
Then
follows:
as
opportunities
lower
are
all
J t
' j.
-
principal
costs
,
King William Street, E. C.
Branches
more
Cairo
...
investment
have
1
home
the
owners
Threadneedle
47
which
gold
to
and
Islands,
LONDON OFFICES:
29
stable
a
Pacific
countries.
On
restored
are
the
seem
exports
as soon as
conditions
Europe.
will
New
it offers the most complete and
efficient
banking
service
to
investors,
traders and travellers interested in thest
to the
large imports of gold
improbable for the present.
hand
George Street, SYDNEY
London,
as
other
Office:
The Bank of New South Wales is the oldest
and largest bank in Australasia. With over
800 branches in all States of
Australia, in
large
which
ther
in
Head
bank reserves than as
money in circulation.
Fur¬
country
excess
DAVIDSON, K.B.E.,
General Manager
But in this surplus
circulation
in
money
is
reserves
tled question.
ALFRED
These
deposits and reduce the
serve
£187,413,762
.
SIR
as
post-war
30th
funds in the United States to seek
deposits
..
NEW SOUTH WALES
But the trend of all fac¬
through the purchase of Govern¬
ment bonds have increased until
bank
J
Australia and New Zealand
as¬
upon bank reserves
easily deplete the excess re¬
gold
uncertainty.
business
of
result
Deacon's
Glyn Mills & Co.
bearing
may
ASSETS
£115,681,681
or
in 1943
in this country.
With these de¬
600,000 shares, compared earnings, plus all security profits. mands for money and assuming a
with 500,000 shares in
previous Nevertheless, it does not seem too reasonable
period
of post-war
year..
unreasonable to expect some mod¬ business activity in the United
It is also of interest to refer
to erate dividend improvement be¬ States the probabilities are that
the record
of
Public National fore
long, in a number of in¬ we will scrape the bottom of the
Bank & Trust Co., whose
regular stances, now that Bank of Man¬ barrel on bank reserves and rising
dividend rate is $1.50 per
annum, hattan has broken the ice.
interest rates will indicate the
are
64 New Bond Street, W. I
by
or
v;
Burlington Gardens, W. /
bonds
ernment
able funds were in excess because
operating earnings, building up the banks' capital
exclusive of security profits, and funds, in
order to protect the
of dividend payments during the present
high level of deposits,
past four
of
Smithfield, E. C. /
Charing Cross, S. W. /
Federal
banks to
the
record of net
New
8 West
49
by reducing bank
deposits through the sale of Gov¬
decade of the Thirties when loan¬
of the slack demand for loans as a
Bishopsgate, E. C. 2
be increased through
of taking the excess
out
$
some¬
so
$5 dividend
equal
$1.25
than 75% of the
more
world's monetary
record is
usual
four
of
of gold to
the United States until we had ac¬
that
0.90
3.56
justifiable
the
was
1.22
New York Trust
its
$
1.44
2.58
country
rising fear of war in Europe and
Asia.
Both economic and social
1.33
Here again, the margin of earn¬
Earned
the world.
only the working of a
known economic law that
was
80
rate.
Earnings
a
gold flows where it will buy most
with the largest degree of safety.
Another force which sent gold to
but
dividends
against
Undoubtedly the banks will of
80
,
was
necessity purchase large blocks of
As
gold.
cents per share
97.66
ratio
result foreign
who had
1.01
Times
Net Operating
at
bonds
The prices of all other Amer¬
commodities and
property
were
reduced in proportion to
that of bonds for the foreigner
1.02
that, though the
$2.40. This bank's net operating $80 rate
appears adequately pro¬
earnings," exclusive of security
tected, the figures lend little en¬
profits, and the calculated divi¬ couragement to the
hope of an
dend
coverage,
have been
as
early resumption of the
$1.00
follows:
same
Goverment
100
106.16
this
3
reserves.
The legal minimum
40%
is
may
suring.
100
what moderate
1920
plan
money
100 ounces
gold would buy $3,500 worth of
the
an ounce
102.41
beyond
serves
money
100.58
ings
required
been raised to
Earned
$
1940____
cut the fourth quarter dividend to
1942. Div¬
follows:
1.60
1942
quarter of
coverage
profits in
$
gold.
of gold had
doubled
vorable.
in the first
States
with a
After the
forces directed the flow
levels. For example, in 1941 three
First
of
ounces
this
1-1248-49
(L. A. Gibbs, Manager Trading Department)
former
100
value
well
lar action and increase their rates
or
United
of
Government bonds at par
This
vidend rates have been reduced in
recent years, may not take
foreigner could buy
a
worth
than any place else in
probably
Bank of Manhattan's action nat¬
March,
down to 40.6.
OFFICES:
very spe¬
gold was sent to this country be¬
cause
it would
buy more here
are
running moderately
higher this year, the new dividend
rate of $1 appears conservative.
devaluation
$2,000
Scotland
throughout
LONDON
a
excess
ican
COMMERCIAL NATIONAL
in
gilt-edged
on
par.
Among
was
rate 90 cents per
In
gold imports
of
A
a
ratio is
reserve
cific indicator of
purchasing power of gold in the
American markets.
Prior to this
American
second
the
borrowers
OFFICE—Edinburgh
has already declined to below 55.
some
$35
cents per share, but that in
half of 1938 this rate
37%
low
HEAD
Branches
above 90 in 1942
was
The subsequent devalu¬
ation of the dollar increased the
quarterly dividend of $0.25 per share, payable Oct. 2, to
Sept. 21, thus bringing the annual rate to $1 per
a
as
security.
By E. A. VAN DEUSEN
Directors of the Bank of the Manhattan
System's
ratio fell
reserve
to
rates
This Week—Bank Stocks
f
ratio, which
This
Reserve
Incorporated by Royal Charter 1727
through gold exports.
The Fed¬
eral
Reserve
System's
reserve
pression
conditions
with
the Reserve notes and 35% against
steady liquidation of bank loans'the reserve deposits of member
and lack of confidence in, and the banks.
The present reserve posi¬
uncertainty of the business outlook tion may be improved by reducing
released reserves, and the surplus the reserve requirements or by
of funds available further reduced
increasing the reserves.
The re¬
280
A.
of
significant
usually
during the bank holiday
of 1933.
The continuation of de¬
WIRES
San Francisco
•
L.
rates
money
51.3
as
St., Los Angeles
PRIVATE
New York
over-all
CALIFORNIA
210 West 7th
of available
low
Federal
The
OF
the
re¬
depression conditions.
Orders solicited.
Inquiries invited.
with
reserves
excess
an
funds
(P. C. T.)
to 5 p. m.
m.
released
and
sulting in
Special Bulletin and Booklet Service to Dealers & Brokers
Trading daily 7
Royal Bank of Scotland
(Continued from first page)
Quoted
—
Thursday, September 21, 1944
As
used
these
excess
reserves
are
banks
will
seek
to
strengthen their reserve position
by selling securities and by charg¬
up
ing higher rates on loans. These
rising interest rates will discour¬
age some borrowers and drive the
price
of
high
down until
grade
depositors
securities
are
tempted
to become investors because of the
attractive
scarcity
yields.
This growing
of available funds will
increase the rates in all
money
markets. Even depositors will find
that their time deposits and sav¬
ings bank deposits
will
yield
higher returns at other uses and
draw
they
down
are
these
available.
deposits when
The rates
on
1253
THE
Number 4318
Volume
160
time and
saving deposits will then
be increased to attract
have
to
tical to assume
will tend to
ratio
these funds.:
a
;
'■■■■'[r/-
If
of
excess reserves
our
time
for interest rates
because of the necessary
delay in reconversion and
excitement' of
movements
the
table
and
the
market
money
fluctuations
transactions
interest
rates
rates
probably
can
light of the
conditions of bank
in
the
will
with it.
not
considered
foreshadowed
reserves and
be
A time table of.
stantly under
may
interest
in interest rates
time his
review based upon
economic trends
affecting interest
times.
Fred W. Fairman &
La
Salle
of
bers
'
change,
will
have an attractive illus¬
discussing the
developments in Interstate
Aircraft and Engineering Corpo¬
latest
ration and
containing photographs
in color of
the new soft drink dis¬
penser.
Copies are available on
i-equest
from
& Co..
of his funds.
instate of business activity and con¬
fidence. ' A rising- period of re¬
covery
and business prosperity
will bring rising interest rates*
,The rapidity with which interest
rates will rise will be,governed
by the level of bank reserves, the
demand for loanable funds, and
feold. A period of rapid business
expansion accompanied by gen¬
would boost
rising prices
erally
sharply in all money
Interest rates on loan-
interest rates
markets.
<
governed by the
the prices of
tools of production. If loan¬
funds
able
are
laws
same
other
interest
rates will rise and investments in
less liquid markets, and at less
profitable rates, will be liquidated
funds
able
and
funds used where
profitable rates can be
V'
«
scarce
are
the
most
DOLLARS BEHIND
are
as
y*
'1
-
.
*
t
;
-
* /v
'r '
•'*
•'
'
'
*
,
'
>
;
,
*
<
v ' . '_t
I . ,
' '
r ,
. _
/
i
'
'
1
7'
•*
"
THE
the
ob¬
tained.
for Savings
The Outlook
Banks
that the
post-war
outlook for interest rates is as in¬
Assuming
MAN BEHIND THE
declining bank re¬
serves and
the expected demand
from
business activity it would
seem
wise for savings banks to
hold surplus funds in short-term
investments so that they will be
BUSINESS
dicated by the
able to adjust
rates
terest
The
to the increased in¬
and improve their
earnings.
surprise to see
interest rates within three to five
years after the war back to the
level of the early Twenties when
on
which the whole structure
It would be no
Government
long-term'
yielded from 4 to
5%.
bonds
Monetary
which
would bring
this adjustment in interest
of
one man.
whole cycle
readjustments in the financial
secures
a
flourishing
personality
death, readjustment would be a long
of his
Life insurance for the benefit of the
continuity and
business
critical time
safety, protecting credit at a
would force a
rates
of
case
and costly process.
conditions
about
In
of
often the brain power, influence, and
business rests is
r
•
basis
markets.
and bridging
the
gap
until
a successor
competent to take
.>,?
Interest Rates
Hear it said that the
Permanent Low
You will
will keep interest
rates low in order to keep the
costs of servicing the Government
debt low.
No doubt the Govern¬
ment would like to keep interest
rates low for these reasons.
But
the Government will ultimately
have
to comply with
economic
conditions as they are rather than
is
found.®^J|Si^Slfe^;l&
•tr
i
of in ('■ '.Aii:
his place
kf>r:
>
conditions of the
money market complying with the
Government wishes.
I am, of
course, assuming that we are go¬
economic
the
j
times
life
insurance
safeguards and extends
that is protected by insurance is one
and business men trust. It has come to be
credit, for a business
that bankers
of a modern
will gladly
life insurance would
regarded as an essential part of the equipment
commercial corporation or partnership.
We
demonstrate how
be to your
valuable business
company.
and pri¬
business.
vate
There
is
the shortage
way
a
democracy
to keep
ing
all
of
another way out of
of reserves or'rather
replenishing the gold re¬
for a long-time to come.
example, the Government
Your inquiry
serves
For
-
toil! receive prompt attention
gold by
quickly
raise the reserve ratio from 50 to
100%.' Prices would not adjust to
coul(^ increase the price of
100%
and that would
depreciation of the currency
long time and gold might
again flow to this country from
this
for
a
every
corner
Any such
ily
of the world to
buy
half their cost.
ooeration is to be heart¬
useful goods at
our
LIFE
condemned. Such a devalua¬
will probably not take place
in which
the great majority of voters will
approve anything that seems to
promise relief.
This method of
calling 50 cents a dollar in order
to replenish the bank reserves is
a
fraud
saves
crisis develops
insurance or
To
everyone who
in credit invest¬
kind, bank deposits,
bonds.
against
and invests
ments of any
make
a
blueprint of the
trend of
interest rates
three to
five years,
for the next
it seems prac¬
COM PA NY
Massachusetts;
Bertrand J. Perry, President
tion
unless a
INSURANCE
Springfield,
i
i, +
'
••
J?:
;■ :t
Government
At
Co., 208 So.
St., Chicago, 111., mem¬
the Chicago Stock Ex¬
brochure
trated
transactions according to
the purposes
1
at
extreme
be
Developments In
Interstate Aircraft
cast their
of actual hap¬
rapidly changing gold
harmonize
to
In
penings.
lay
and construct an
policy
inflexible
shadows far ahead
The
rates and investment management practical manager of funds will
change much during this i year.
these conditions and
Each year thereafter the trend of policy must be flexible and con¬ anticipate
interest
as
such working time
down any
year
foolhardy to
be
would
affecting interest rates
V'
Latest
after the end of the
be determined by the
place
•war
reserves
large
How soon this will
jjpointed out.
"take
the
from
gold
It
For the
Y'i■'!i\'•
*■'.•
',?■
year.
after the war the de¬
mand for bank credit may not be
first
with reasonable
six- months to a
from
accuracy
Coming economic events
vance.
forecast the rates
the
from
until the end of the war.
Rates
hold out
through the war financing and en¬
able the Government to keep in¬
terest rates low an increase in
rates
can
be expected witn the
general improvement of private
business conditions, a rising de¬
mand for bank loans and the loss
I
further
present level. The present struc¬
ture of rates will probably be held
Conditions and Interest
Business
student of the money
months to a year in ad¬
rates six
; An able
market can
demand for loans.
the
that interest rates
harden as the reserve
declines
CHRONICLE
COMMERCIAL & FINANCIAL
,
Fred
W. Fairman
1254
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, September 21, 1944
Stocks Most
TAKE
WE
PLEASURE
IN ANNOUNCING
Investment companies on the
average were in a slightly higher
cash position on June 30 this
year than at the end of 1943, a study
THE ELECTION OF
issued
yesterday
panies indicates.
New
EUGENE
J. HABAS
England
'
by 86 member
/
INVESTORS
vidual
TRUST
INVESTMENT ADVISOR TO
Prospectus
&
e
"In August the securities markets continued the
sideways move¬
ment, without significant change, that has persisted for
is,
indicated that most investors
dealer
months.
some
waiting for sbme tangible development which
major trend.
Current
will
"What
for
;
is
is
the
not
being
now
(for that is
end
handle
the
^
Priced
war
we
going
are
intelligently
Sales
the
Prospectus
Group
more
Securities,
gradual and hence less unsettling.
controls and wage controls
of
past
was
of
£3 wall st.
to
now
hesitation
our
proportions.
We
be
experiencing
and
uncertainty.
Unless political stalemate
or
gross
point of its research organization
with respect to the relative at¬
tractiveness
of
high-grade
second-grade bonds.
and
Union Bond
Fund
our
intervene,
curities markets should
on
a
rising
the
soon
enter
trend."—From
monthly
Investment
Distributors
Group's
or
se¬
the
Report
of
Investment
Research Department.
■
Selected Investments Co., in the
current issue of Selections devotes
seven
14
pages to an itemized
major "cushions" for
version.
ties,
which is
45%' among
currently di¬
rails
and
5%
among.industrials, is suggested
a
a
more
as
listing
in
the
second-
recon¬
They lead to the follow¬
ing succinct conclusion:
"All these
cushions will not prevent the re¬
conversion blow from
being struck.
They should, however, tend to
modify the shock and produce a
prompt and vigorous rebound for
the economic structure."
/;
Which Bonds?
By means of a chart and tables,
Lord Abbett, in the current issue
of Abstracts, emphasizes the view-
of
Manhat¬
shows
cur¬
fund
This
with
compares
$13,631,453
splendid
net
assets
of
1,
1943;
a
July
on
record
for
a
fund
Maryland Fund, Inc., reports net
assets of $6,372,632 at the close of
business Aug. 31, 1944,
compared
with $5,769,989 a year earlier.
Mailbag
Calvin Bullock—A revised edi¬
tion of the
folder, "A Brief De¬
scription of Dividend Shares."
Securities
ries
and
on
&
6
in
National
Industrial
the
Stocks
Se¬
Series.
,
NATIONAL
in Bonds
S-l, 2, 3, 4
in Common
Stocks
The Keystone Corp.
5® CONGRESS
STREET,
of
Boston
BOSTON, MASS.
North
American
>
"
*
du
34
Dr.
BROADWAY, NEW YORK,
(5)
LOS
ANGELES, 634 S. Spring
St., (14)
BOSTON, 10 Post Office Square (9)
CHICAGO, 208
So. La
Salle
St.
(4)
Nickel
Investment
Electric
140,400
7,371,000
8.0
American
S.
Rubber.
167,700
Great
Youngstown
Guaranty
National
Steel,—
1.1
5,443,000
6.1
3,608,000
5.3
7,306,000
2.4
196,790
4,723.000
3.1
Trust
Products
...
245,124
Standard
Atchison,
24
Philip
24
Pan
24
Borg
O'l
of
-
& Santa
3.1
1.0
American
Phillips
24
Standard
6,123,000
8.7
3,957.000
Auto
&
3,643.000
1.7
92,850
——
3.840,000
2,809,000
2.9
4.5
_
78.500
2,728,000
10.2
6.847,000
2,272,000
—
_
.
/ 4
Scranton
&
Co.
Light pfds
Electric
Lite__i
49,600
in almost reluctant recognition of
changes already accomplished."
regard to
tors
for
wage
ship
post-war rail¬
operations, earnings and fi¬
is reassuring, according to
study of the
industry just re¬
by Baker, Weeks & Har¬
den, which says that "in light of
this prospect the market position
of many railroad securities
seems
entire
improving
railroad
operations, none but the
exceptional railroad security (in¬
cluding defaulted and' reorgan¬
advanced, except
developments, and
other competi¬
freight,
the
costs of
operators
study
have
says
steam¬
ocean
risen
far
more
than for any other major
transportation agency; the truck¬
ing industry has been a major
-v!
8.7
,
2,213,000
1.1
4.1
casualty
of
war-time
"Evidence
that
railroads
need
not fear
competition from freight
cargo planes comes from officials
of
> the
airplane transport com¬
panies themselves." According to
the
present
says
that
estimates, the report
the
difference
in
rail
and air costs is too great, with rail
costs less than a cent per ton-
in¬
mile, against 17 cents for airplanes
creases, and of material and man¬
now, which may not be reducible
for many years below five cents
power
cost
shortages, and "competition
with motor carriers will probably
be
more
favorable to
railroads
after the
war
period";
and
doubtedly
inroads
by
than in the pre-war
pipelines
make
into
further
gross
transporting
will
gradual
after the
more
un¬
and
refined petroleum products.
war
more
per
A
.
10.5
11,358,000
73,630
,
.
170.80(1
68,848
_
__
&
r
—,
Supply
Power
4.2
A
81,700
82.800
_
,
6.8
5,482,000
pfds
Light
Brands
Auto
3.7
97,700
&
Power
Gas
6.2
■
67,662
Petroleum
Western
1.4
5,159,000
6,205,000
1.68,685
Airways
Warner
24
24
6,010,000
53,120
89,930
-
Fe
Morris
American
)
6.2
7,291,000
4,096.000
159,748
-
Topeka
4,106,000
189,380
136,530
California
Manville
Electric
>
be had
Reassuring
has
5,673,000
89,100
Oil
Johns
2.4
153,320
....
Tube
City Bank
Pennsylvania Railroad
25
Copies
95,555
1.5
2.4
3.612,000
21,238
&
National
24
9,957,000
•
114,684
—
pfd.
Ry.
Sheet
Dairy
24
9.4
.
8,161,000
103,300
.
Northern
25
f
Harvester
Oil
U.
Pure
6.7
7,262,000
6,046,000
International
)
3.6
4,252,000
252,600
_
Kennecott,
S.
3.4
>
•'
Pictures
Continental
26
■
_
Radiator
Paramount
27
>'
.
'
Greyhound
that
rails)
2.0
U.
26
Post-War Rail Outlook
ized
6,635,000
10.8
27
request.
in the wake of
2.5 $ J,;.-;
8.2
4,125,000
23,
of
63,195
J
3.7
*
7,380,000
tractive at current levels.
period
8,213,000
141,250
Pacific
war-time
6,288,000
14,186,000
168,900
.
226,014
23
the
...
...
Oil
Loew's
Throughout
133,440
.'45,500
.
2.5
Ohio
Electric
curious.
Trust
.
Westinghouse
23
nances
—
Goodrich
23
outlook for
pfd
Roebuck
United Illuminating Co., Connec¬
ticut situations which
appear at¬
The
$6
Goodyear
29
memo¬
)
9.4
Southern.
30
Companies
'A
.6
11,447,000
Sears
30
members of the New York Stock
road
2.2
139.170
&
30
Chas. W. Scranton & Co., 209
Church Street, New Haven, Conn.,
Seen
11,594,000
242,804
10,931,000
27
W.
2.0
10,921,000
29
Chas.
1.4
9,258,000
68,685
29
from
10,251,000
32
dress.
may
8.3
228,924
31
Nadler's topic will be "The
Outlook" and a ques¬
period will follow his ad¬
of these memoranda
_i—
_
10,844,000
291,600
v
.7
373,950
126,555
Electric
8.5
Oil
31
\ -:ny
on Acme Wire
Co.; VeederRoot, Inc.; Scovill Mfg. Co.; Ar¬
row-Hart
&
Hegeman Electric
Co.; Landers, Frary & Clark, and
2.3
11,524.000
32
institutions,
Exchange, have prepared
&
9,794.000
8,005,000
256,800
33
Economic
tion
725,512
210,660
_
32
Hanover Bank & Trust Company,
speaker.
4.0
16.6
Pont
Commercial
33
.5
16,499.000
_
Gas
Common.
33
6.1
26,302,000
Company
Gulf
1.1
15,071,000
15,206,000
1,421,680
_
Co..
International
35
$16,824,000
318.125
Co
Electric
&
Texas
-33
as
295,163
Jersey)—.
.
Union* Carbide
Economists, Doctor Marcus
Nadler, Professor of Finance at
financial
Stock Held
174.595
Deere
39,
p.m.
(New
Outstanding
235,750
American
General
40
c'c Of
of
Socony-Vacuum
39
ing
other
Co.
40
New
M
following:
Shares Held
Chrysler
v
,
34
has been secured
the
were
Shares Held
Ward
40
Fall
leased
National Securities &
Research Corporation
120
Prospectus may be obtained from
your local investment dealer or
the
Oil
47
Thurs¬
on
popular with investment company
managements as of June 30, 1944,
issues
Motors
43
country's outstand¬
a
y
Prospectuses upon request
Series
Exchange
much
a
No. of
With
\
Securities Series
in Preferred Stocks
One of
upon
Series
K-l, 2
.
cur¬
Stock
Certificates of Participation in
B-l, 2, 3 and 4
.
Research
r
Series
Curb
the
value of which accounts for only
30% of the total assets of the
funds
Name of Stock
42
randa
In the
Custodian Funds
follows:
York
of
day, Sept. 28, 1944 at 4:30
In Conn.
Corp.—Letters No.
as
47
Situations Interesting
Quarterly Report
rent series
Trust Funds
the
Forum to be held in the Board of
Rooms
widely held by investment com¬
panies,
the
combined
market
Funds
Holding
48
first
addition, the study
based upon the 50 stocks most
was
Market Value
General
of
Association
the
mentioned. In
Ho. of
Montgomery
for
do
not necessarily indicate
opinion regarding the in¬
dustries
or
specific
securities
decreased
Other
Standard
Governors
and
extent.
54
arranged
they
current
those widely held in which
among
only
six years old.
National
investing their capital
has
individual
balance, though to
on
49
Committee
Traders
took
since the statistics cover the pe¬
riod of six months ended June 30,
most
also
were
50,000 shares in
Considerable buying
place
in
Standard
over
analyzed. Many purchases
a good many investment com¬
and sales were of the less wellpanies,
combined
holdings
of known issues.
Paramount alone being reduced
Based upon the number of in¬
nearly one-third during the six dividual funds which hold the
months period.
Loew's was also issues, the 50 common stocks most
sold
Speak
liqui¬
Oil, Standard Oil of
Texas Company and
shares
of
in¬
by
Abbe, and Sub-Chairman John
Kassebaum, of Ingalls & Snyder,
net
assets as of Sept.
1, 1944, amounting to $19,886,940.
.
Keystone
Sept. 30.
also
holdings
common
Brands, Greyhound and du Pont,
The Association points out that,,
(New Jersey).
Holdings of motion picture com¬
York University and Con¬
sulting Economist of the Central
i;
C
a
to
sin¬
the
California,
by
period.
the
accounted
50
were
combined
American
creased
any
con¬
Standard Oil Co.
New
tan Bond Fund is
given in the
rent portfolio folder of
that
and
man
attractive investment than
concentration
grade rail- group.'alone.
The growth record
'!•
of
"C "
Getting Bigger 1
"Cushions for Reconversion"
80
1944,
which
York under General Chair¬
Richard Abbe of Van Tuyl &
New
versified 50%
among public utili¬
leaders—political, business
of
of the
54
Forum
Security
economic stupidity on the part of
labor—should
record
14,
of
group
still
year,
out
of
The
new york 5. n. y.
•
uncertainty
'replacement boom'
considerable
appear
Oct.
those
This
concentrated
this
at
pany
dividend
payable
of
accessory companies, bank$V
utilities were the principal
though
company holding
of the year, and de¬
Continental
At First STADY Forum
GROUP, Incorporated
major wars in the
followed by a brief pe¬
a
Street Letter.
bal¬
on
widely
mid-year.
Among
these issues, the largest decreases
in holdings occurred in Pure
Oil,
Street
mid-Sqptember
Dr. Mar To
DISTRIBUTORS
our
by
Broad
.
Low
1
riod of hesitation and
and then
.
and
than
fairly
smaller
1920.
"Each of
>
.
extra
an
stock
Request
Inc.
prevent
both
runaway
of 1919 and the collapse
prices
Shares.
share,
on
Price
should
Shares
Corp.—The
spite
held
fold¬
sold
were
the most substantial
start
stocks
Shares,
Dividends
and
A Class of
by that experience what not to do.
be
"Advan¬
portfolio
a-v
year
groups
heavily during the first North
1944
for nine
Income."
were
investment
dation
the
Affiliated Fund, Inc.—A regular
quarterly dividend of 30 a share
"There is good reason to expect
that the transition will be smoother
than last time.
We have learned
should
Bond
on
of
(Bond)
issue of the Broad
'
Demobilization
folder
Distributors
.
edition
monthly
Low Priced Shares
re-
conversion to peace.
•
.
Railroad
on
General
in plain sight)
now
but evidence that
to
of
waited
ers
.
revised
mailing leaflet,
of Profits Over
tages
reveal. unmistakably the next
portfolio
Series.
shares
industry.
the
at
revised
Group—A
reserving judg¬
were
of
other
gle
Income
predominated this
cash
stituted
A
that
and
half
Mutual Funds
ment,
bile
ance more
E
E
BOSTON, MASS.
Such movement
managements
company
CO., Inc. |
lit DEVONSHIRE STREET
Reconversion To Peace
com-,
»——■
in which purchases ex¬
position, in the case of one ceeded sales by a good margin in
of the largest
companies, of ap¬ the first half of the year. Holding
proximately 35 %.
company
preferred
issues
pre¬
Oil
producing
and
refining dominated in the utility group,
E
DISTRIBUTORS:
A. W. SMITH &
sales have
shown
a
NEW YORK STOCKS, INC.
—
by variations ranging from virtu¬
ally full investment in equities to
request
on
AND
NEW YORK. 5
policy of^
a
$124,000,000, or about 9V2% of include U. S. Steel, Montgomery
combined total assets of
$1,298,- Ward, International Nickel and
000,000, compared with aggregate Commonwealth Edison. Some re¬
cash and Governments of
$101,- duction in holdings of defaulted
600,000 at the 1943 year-end. Dif¬ rail bonds was also noted.
ferences of opinion
Rubber manufacturers, automo¬
among indi¬
GENERAL
Manhattan Foundation, inc. I
INC.
which follow
broad diversification amounted to
Prospectus
MANHATTAN BOND FUND,
National Association of Investment Com¬
The majority of
companies, however, were found
substantially invested at the mid-year.
.p
Cash and U. S. Government securities held
panies
AS VICE PRESIDENT
request
by the
be
to
Fund
"
48 WALL STREET
Widely Held By Investment
Companies On June 30,1 §44
ton-mile.
special compilation of the fi¬
nancial
changes in 41 leading rail¬
roads since 1938 is included in the
report.
Copies
are
available from
Baker, Weeks & Harden, 52 Wall
St., New York City, members of
the New York Stock
Exchange.
».
125S
THE
Number 4318.
.Volume 160
CHRONICLE
COMMERCIAL & FINANCIAL
Legion Pest
Celebration Sept. 25
Wall St.
will be celebrated
of Rights
Bill
of the
anniversary
155th
The
v
■■
•
Legion with a
during the noon hour,
Monday, Sept. 25, on the steps of
the Sub-Treasury Building in Wall
Street, historic site of the Bill's
by the American
program
YOU AKE
M
IF
0
0
'enactment.
Commander Clement
r
D. Asbury
that the
Street Post says
of Wall
is expected
American Legion
the
of
Commander
National
from
Convention,
the
and 125 uni¬
Commanders of New York
Posts with Color Guards
Chicago
-the
County Commander
formed
County
commands are appear¬
from their
ing. and music will4 be provided
by John Phillip Sousa Post Band.
Department is sending
The War
i
add
will
form
from
a
armies of every
A flag from a
the
Nation,
United
every
the United War
soldier in uni¬
fighting front and
Fund
from
hero
decorated
a
Japanese battleship will be shown
the public for the first time,
of celebrating our
Importance
v.
proposed for extension to an
ternational bill of rights to end
ceramics
glass
shoes:
Rights' birthday has grown
annually during a war for funda¬
mental rights of human beings
until today the American Bill is
•Bill of
^s|\
in¬
all
,MV
Wars;.
Legion
American
The
with sponsorship
one's mind
GI Bill of Rights,
of a
the Legionnaries
in
warriors
as
protests
linked in every¬
that, whereas it is
two
wars,
feel
deeply that they were defending
our Bill of Rights above all other
proclaimed reasons for those wars.
Membership of Wall Street Post
'
veterans, mostly
bankers, from World
160
of
consists
brokers and
from World War II and
both wars. Vet¬
War II are in¬
War I, 40
10-who fought in
out of World
erans
joining—most members
in the con¬
flict—and it is easy to see a trend
to youth and vigor in the ranks
of the Legion, now approaching
a membership of two million Le¬
creasingly
have one or more sons
clothing
furniture
electrical appliances
gionnaries.
Post meets in Fed¬
of the Nation's first
Wall Street's
eral Hall, site
Commanders of the Post
capitol.
of office by
oath
take
the stone
which George Washington took
oath as First President.
The Le¬
on
PLANT the Future in
gion Commanders' hands rest on
Patrick Henry's own Bible. Com¬
Asbury's ancestors have
mander
in Wall Street
held posts
years.
for 287
GEORGIA
One of them was Dutch
in 1673, the one
the city was New Orange.
Schout or Mayor
year
during the Leisler Re¬
bellion in 1693, held the Broadway
Another,
blockhouse
on
the
Wall; Street
Looking ahead to the tremendous postwar industrial expansion clearly
for Georgia, our staff of competent, experienced engineers has been at
...or process foods
Wall.
outstanding citizenship will be
during Monday's cele¬
bration. The recipients are Carl
Gerdau of 770 Park Avenue for
for
awarded
his work in
initiating blood dona¬
the Financial District,
and Mr. Gardner Osborn, Exec¬
utive Director of Federal Hall
Museum for his patriotic public
rallies on the steps from which
Wall Street has drawn enjoyment,
tions from
throbbing
and
color
ism.
;
.
American¬
Georgia's war industries are creat¬
friendly people
GEORGIA'Sbusiness-minded government
.
,
and her
believe in business
Investment
>wa
Bankers
Meet At Des Moines
The Iowa Investment Bankers
ssociation will hold its annual
11 party at the Wakonda Club,
o
Iowa, on Sept. 28.
lis party will consist of lunch,
nner, golf and all the forms of
es
Moines,
nusement that
constitute such a
the members of the
ivestment Banking Business are
All
irty.
vi/ted.
NY Analysts To Hear
Sept. 26, the New
On Tuesday,
of Security Analysts
Joseph Bowlby, presi-
irk Society
ill
hear
of
>nt
le
Eagle-Picher Lead Co.
will be held at 56
meeting
road
welcome
finances
tax structure
In
Street, New
York City, at
:30 p.m.
in sound
condition—the
is fair.
Georgia
the rich and
enterprise and
industry. The state's
new
are
you are
in the center of
growing South. Georgia's
'round, mild climate contributes
to savings in plant investment, pro¬
duction costs, and in living cost of
year
workers.
-
work for
gathering and compiling accurate industrial data on those in¬
Georgia has outstanding attractions.
Our studies have uncovered especially promising opportunities for manufac¬
turers in the lines shown above. For accurate, comprehensive facts and figures as
they apply to your industry, write Industrial Development Division, Georgia
Power Company, Atlanta, Georgia.
the past two years
dustries for which
Legion medals
American
Two
indicated
ing
a great
WRITE INDUSTRIAL
,
precision-trained,
skilled craftsmen.In many
excellent, small towns
of Georgia's
where there are
will find in¬
telligent, willing, adaptable, nativeborn, English-speaking workers.
In Georgia, you will find, close at
hand, a plentiful supply of raw mate¬
no
large industries, you
rials
.
.
.
and
«
pool of
...
an
abundance of soft water
splendid rail, highway, airway
ocean port facilities.
DEVELOPMENT DIVISION •
Electric power,
ample and depend¬
which are
among the lowest in the nation.
A large number of nationally
able, is available at rates
known
manufacturing firms have
indicated their
plans for postwar
expansion in Georgia to serve the
South.The industrial march to Georgia
awaits
only the day of Victory!
Special
specific industries will be
undertaken without obligation—in
studies for
confidence.
GEORGIA POWER COMPANY • ATLANTA,
GEORGIA
i
i
1256
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, September 21, 1944
out of London and see
We offert subject:
Keynes At Bretfon Woods
$250,000
Canadian National
(Continued from page 1242)
Railways
ready
no prospect
for the indefinite fu¬
so
After the
the blocked-
war
currency problem will not be lim¬
ited to sterling and other "friend¬
,
.
you
can
Bonds, Due February 1, 1956
Non-callable
Price 116% and interest, yielding 2.83%
Wood, Gundy & Co.
Incorporated
14 Wall
doing
a barbarous relic .
." If and a great many people do, we
still hold those views how have to have this vital backing ly" currencies, but will include
they be reconciled with the of gold together with certain rea¬ notably funds blocked in Ger¬
views of the United States?
sonable and agreed arrangements many. To return to the press con¬
ference;
Lord Keynes: I was bold enough for
;
making it work. The old sys¬
Press: I would like to ask Lord
a
few weeks ago in speaking to tem was so
rigid it ceased to work
the House of Lords to requote my in
Keynes if he could explain some
every country of the world,
of the discrepancies on the
former statement on gold, and the and then came a
points.
period in which
It is thought here the purpose of
fact that it was the view I had
every one did what seemed best,
the Fund is to eliminate
taken. The difficulty about this and when we had
foreign
exchange dis¬
discussion is that it is like infla¬ order and
depreciation. One of the exchange restrictions, but in your
tion; that the term "gold stand¬ signal purposes of this Fund is to speech—a great point was made '
that the Fund
ard" is capable of more than one return to
will
allow
each
good order and disci¬
interpretation, just as inflation is. pline, to bring back gold as the country to control all capital and *
its domestic rateNow at that time, when I wrote fundamental
reserve
money
and
Lord Keynes: There was no dis¬
that book, the gold standard meant make it clear that we are all
going
a
rigid link with gold, which to trade together, and not indulge crepancy. The object of the Fund
is to remove exchange restrictions
there was no attempt to alter, and in
arbitrary or unreasonable
as soon
as
in which there was hign moral
possible.
It provides
changes, and in any case to act in
obligation not to make a change ex¬ conjunction. So that the only con¬ that capital movement must be
controlled, and indeed that is an
cept under force majeure.—In that fusion,
I
think, arises between
sense
of
the
gold standard—I these two senses, the rigid gold essential c o n d i t i o n—with the
countries who have any large gold
should be bold to claim that I had standard and a
currency standard
resources.—I think you will find
made some
efforts to take the based
on
gold—based
on
gold
there is no possible doubt about
^view that it was an out of date without the
rigidity.
that in the provisions of the Fund.
system. People who want to create
Dr. White: I would like to add
prejudice against our present pro¬
Dr. White: I want to make cer¬
something here. You who are at
posals try to make out that they all familiar
tain what Lord Keynes has in
with
Dominion of Canada Guaranteed
4 Vz %
of
ture.
Street, New York 5
Direct Private Wires to Toronto & Montreal
,
Canadian Securities
By BRUCE WILLIAMS
At last the limelight of publicity is beginning to play on the
long-ignored Canadian situation.
For the second time Quebec was chosen for the
meeting-place
of the President and the British Prime
Minister, and public attention
first plenary session of the
UNRRA is being held at Montreal, and "Mike"
Pearson, the head
of the Canadian
delegation, who<3>—X"
has proved his worth at previous
international conferences, was ap¬
pointed
Chairman, f During the
week also considerable
publicity
has
been
directed
northwards.
The
.
has
been
given
to
the
development in the
Far
the
North
situation
dispels
in
taining
PROVINCIAL
modern
machinery but,
are
aid to
an
Power is
CORPORATION
Norman
Wells
oil
fields
Basin,
and
from the Yellowknife
ore
short, hot
shines
sun
crops
grow
ously
and
vides
<
24
season,
quickly
the long
natural
and
more
Arid
in
book
INCORPORATED
the
TWO WALL STREET
so
NEW YORK
R ECTOR 2-7231
day,
refrigeration.
gold
dition
to
known
many-
coal
to
and
It
are
:
timately with
will surpass the Canadian North
the
in the production of gold and oil.
developments,
there
was
again
but the undertone
mainly steady. As anticipated,
the
was
National
1949, which
5s
was
of
October
better
1969-
weak
hard to satisfy.
2
the report of the relin¬
quishment of the office of Pro¬
by
Solon
at
10%%.
Now
bul^ positions have
that
the
narrow
market
an
un¬
til
offerings in connection with the
called and maturing issues on Oct.
15 exert their influence.
Low, the foremost advocate of an
early* refund of the Alberta debt.
However, it is possible that this
points, There is likely to be
indeterminate
E.
of
The
link
which
Meanwhile the greater problem
general exchange stabilization
maintenance
is
64 WALL
Company
STREET, NEW YORK 5
WHitehall
V
foolish
of
the
to
from a prac¬
viewpoint. The great holders
of gold are the United States and
cert
propose,
a
in
countries
in
four
Western
The
great producers of
the British Common¬
gold are
wealth. and Russia.
While these
between
groups
prehend—and
of
them
com¬
Canada
sourse
should be added to South
Africa
gold producer;—they cover a
very great part of the world. No
as
a
one
that
in their
senses
would suggest
they wish to make the gold
of the world, the re¬
resources
worthless.
serves,
On
the
con¬
trary, it is absolutely essential for
the
working of this scheme that
gold should play a predominant
available
small
to be made
resources
for
the
compared
fund
to
would
the
gold
be
re¬
sources, and those resources would
be
having
year
ple
a
of
still
more
Great
gold
looks
spite of
problem
our
Britain
the
no * nearer
the Bretton
do
regard
fundamental
we
want,
solution
Woods
in
con¬
With regard to possible future
developments, it is
market
will
and selective.
likely
continue
that
quiet
However, there is
still scope for movement in Al¬
bertas
and
Montreals, and it
Government
•
Provincial
♦
Municipal
♦
Corporate
intense
and
and
though
depression
a
un¬
not
steady
for
to
point out that the
that
was
an
one,
Lord Keynes was among
first
of gold
adjustment of
which
United
choose
States
does
them—the
not
wish
to
have them and they do not exist.
Press:
the
reason
the rigidity
which prevented
that these restrictions on
capital movements exist in coun¬
tries
But
can
have
you
con¬
trol of capital movements without
of foreign
exchange trad¬
control
an
their
0f
that
that
situation
would
never
arise
again, and when the rigid
gold standard, the rigid link that
tries will be
said "we
are
never
going to weld
a chain that is so
rigid and will
again break." Now, look at the
United States; we here in the 20's
complete than
come
others.
he speaks of and which continued
until the late 20's and
early 30's
Blocked
Balances
Form
a
of
War Debt
Press: Say something about the
question of blocked balances.
Lord Keynes:
subject;
I
It is rather
don't
know
big
how
a
just
should
soon
fared
were
In the United States it
mined that that would
was
deter¬
never
hap¬
be possible
to take
advantage of the period of tech¬
nical weakness in the Canadian
exchange by the purchase of
internal issues at interesting dis-
cdtfntsl* .**' ■ U4 '!"•*' *v •-K-f * ' *■ '•.
.
striking is that
very large pro¬
a
portion of that has been incurred
again; that that kind of de¬
preciation, competitive deprecia¬
to other Allied and associated
tion of currencies which
an
pen
resulted
tions—some
neutrals, but not
important part. In the case of
the United States, and in the
must be avoided.
of
Now
comes
the
Fund
new
na¬
to
only in lower trade for everybody
case
Canada, the lend-lease system
the
and
mutual
aid
by which we hope to
repetition of the 30's. The
British, and others, are looking
from arising—Great
to
Dunkirk,
avoid
a
avoid
depression from rigid
exchanges. Along comes the Fund,
and
we
a
going to avoid
depression from
say we are
both
things, the
rigidity and the depression from
chaotic exchange conditions, and
the
Fund
but
we
is
the
prevented
with
too
us
we
system have
of affairs
state
Britain, after
fight this war
disregard for the
had
to
reckless
future;
and
that
could not stop to argue
make
terms; we were only
pleased if anyone would help
at all, and we therefore ac¬
cepted without hesitation arrange¬
signed to accomplish both things, ments which in any other situa¬
look
at
points
of
view.
had
in
the
it
joint
it
effort
from
On
de¬
different
this
side
we
30's, and the other
side of the water in the 20's.
In¬
formed
people on both sides are
determined that it should oe—
Lord Keynes: We also disliked
the 30s as much as the-other.
tion
would
Exchange and Capital Controls
Under the "Fund"
for
eign exchange and capital
ments
was
lives
our
been
terested the press, because one of
stated purposes of the Fund
the
left
in
from
Do¬
the
field
apart
minions, and
ure
to
must be
the
the
we
entirely subordinated
needs
we
of
started
method
we
of
the
at
time
so
on
resources
could without wast¬
ing precious time in trying to get
really favorable terms.
indebtedness
was
charged
assets;
—the
by
we
our
had
Now
partly
parting
certain
that
dis¬
with
securities
proceeds of earlier foreign
investments—which
the disposition of present blocked
took more explaining,
present,
that
getting
available
of
our
felt that the fu-
the
subject
at
few allies
is to do away with such controls.
Here again, Dr. White assisted in
clarification. ' The
fighting
decided
we
move¬
another matter that in¬
extremely
we were
and
that time—we had
wherever
The question of countries, mem¬
bers of the Fund, controlling for¬
have
improvident, but
that
difficult. The peo¬
ference.
the
canadian securities
considerable degree of
a
employment,
handsome increment
by year; if not,
would be
-
OD3
ing
pub¬ broke, the British people naturally
that—any departure
money as essential. What
&
I
tical
making
Taylor, Deale
com¬
from the gold link would be most
been liq¬ part. But the
uidated and the rate has declined
Albertas weakened slightly fol¬
Treasurer
credit of
slightly
lowing
vincial
history, namely,
Internal issues were
again in the
doldrums and the Canadian dollar
in the "free market"
was
selective demand for
a
great event ifi
Alberta.
little activity
there
Province's
a
the restoration of the
Turning to last week's market
was
is
also gained something in the na¬
ture
of
a
personal
triumph,
would wish to be associated in¬
in the world
no area
the
twenty years ago,
opposing the rigid
then made definite
was
Europe.
natural, therefore, that
Mr. Manning, who
incidentally
but
already
believed
that,
experts
eventually,
iron,
by the Premier, Mr.
who
led
the
Social
election.
metals, in ad-/
exist,
been
Credit Party to a
sweeping vic¬
tory Over the C. C. F. in the recent
gold, platinum, radium and oil.
rare
over
Manning,
yielded rich prizes in
Many other
is • not as bearish a
it appears at first
glance.
Treasury portfolio has
taken
this dis¬
I
tices.
The
west Territories has so far been
has
N Y-M045
factor
pro¬
nearly
when
development
as
that in the 20's England was hav¬
much: you would like, me to say
very well.
And though we
about it.
sympathetic with England's
sent—it was a very long time ago—
Press: Go right ahead.
troubles, they were not ours. Now
I sdid what we were
making of
Lord
then, we get into the 30's and
Keynes:
Great Britain
gold was a constitutional monarch. what do
you find? The gold stand¬ alone of the Allied nations has in¬
That is to say, a monarch which
ard broke down in
curred during the war a
every country
very
was subject to constitutional
prac¬ and we had disorder
and chaos. large external war debt. What is
5, N. Y.
when
luxuri¬
that
values,
standards, I
proposals for retaining the link
with gold. I think in that
book,
which again does not quite repre¬
yield
a
lished
A. E.AMES & CO.
Only about 5% of the North¬
trict
barbarous stand¬
metal of tne world.
winter
surveyed, but already
was a
themselves
of
bodies
hours
it
pledge
the
wants
reserve
Strangely enough, the area can
agriculturally self-supporting,
for in the
to
fund
denominator
far discovered has been far above
the
re¬
ard, that is, the link with gold by
which gold becomes the common
the
the average of the older fields in
Ontario and Quebec.' ' '
be
for
is
mon
in
the
claimed
CANADIAN STOCKS
easily and cheaply available fol¬
lowing the development of the
Mackenzie
The scheme
and
on
sled
now
entirely different
an
a
countries
prospecting has been less rigorous
gold districts of north¬
ern Quebec and Ontario.
air transport.
the
American
history of the 20's and 30's know mind,
ing?
exchange rate. The par value
Lord Keynes: It depends on how
sterling to the level which was strict you want to be. You can do
not to suggest changes except for
appropriate to the circumstances, a certain amount on
capital con¬
very grave cause; but an impor¬
which had changed so
drastically trols by market controls.—How
tant part of the scheme is to pro¬
during the war, and for a num¬ any country will do it is not laid
vide a machinery, through consul¬
ber of years in the 20's—and be¬ down
by the Fund; I think dif¬
tation' and agreement, by which
cause of that
feeling the people of ferent countries will have differ¬
changes can be made. Now, I have
England became—were insistent ent
techniques, and some coun¬
MUNICIPAL
than in the
contrary,
that
out
This stabilization
Precipitation near the Arctic
Circle is very slight, and the hardfrozen surfaces prove no obstacle
link,
link with gold but one
which is changed from time to
time
to
changed
circumstances.
the
working conditions in this region.
For example, at the highly prom¬
ising new gold camp at Yellowknife, on the Great Slave Lake,
rigid
except under
and I am then
character.
GOVERNMENT
fallacies with regard to living and
to
that
altered
scheme is of
popular
many
be
majeure,
forced
to
point
,
with
to
force
CANADIAN BONDS
immediate post-war era.
.* •
As previously mentioned, famil¬
iarity
reinstituting
not
Canadian
Northwest with its vast potentiali¬
ties for rapid
the
are
of this.
to
were
liquidate
We also lost
a
easily
some
part
great quan¬
currencies
tity of our gold, but after we had
original used
these tangible reserves there
provision for
still remained a very large amount
their liquidation by the Fund.
At
British request, the present Fund which could not be covered.
I
plan makes no provision for liq¬ think
by the end of this year our
uidating the blocked balances, to
aggregate—that part we have not
the outspoken disappointment of
the British Indians and certain discharged, will be in the 'neigh¬
particularly
because
White
made
plan
the
others who cannot get their funds
borhood of 1*2* billion.*- £
r"~ «
* - •>
1257
THE
Number 4318
iVclume 160
12 billion
Press:
would
pounds?
have
to
be
COMMERCIAL & FINANCIAL
CHRONICLE
won't be drawing on the I| that seems to me from the point
of view of the United States per¬
balance, so that in that
porters asked Lord Keynes. We
haps the major contribution that
contingency the situation whicn
quote:' '
x^'/v
the Fund can make towards the
we fear has not arisen and a rem¬
were
about ten or
brought out in questions re¬
then you
Fund on
twenty times as large for that.
Dollars. No, thank God,
not pounds; it's bad enough. That's Is Quota Our Total Contribution
Press: ' Lord Keynes, the pre¬ edy is not required, and if is the stability of your economy.
To Fund?
a war debt, and we shall be great¬
Just one other thing that arises
dominant
criticism
of a large same.- ;>V:\/f f.-fy yl/rfyfout of that question and I think it
ly strained in dealing with it.
It
Press: In the experts' published group of bankers in the United
Now take the other hypothesis,
is perfectly evident that it can't
arises out of a great many of the
plan you don't state the matter of States of this plan is that it is in which there is a tendency for
be dealt with in a short time.
It liability of the United States. You simply a disguised method of
questions, and that is that you
your position to be an unbalanced
can't justify this fund purely on
is no
good anybody suggesting state a quota and you also, as I
creating after this war the same one. Without the Fund a crisis is
otherwise. Moreover, we take the
remember, say that the Fund can situation that existed after the last produced almost immediately ow¬ the ground of its own extraordi¬
view that this is our own obliga¬
borrow additional dollars from the war. That is, as long as America ing to the inability of the rest of nary beauty. It must be by com¬
tion which we can't put on any¬
United States.
was willing to make dollars avail¬
the world to pay 'for your exf parison with the alternatives. And
body else and we are going to
my own advocacy of the Fund is
Lord Keynes: That is entirely able to other countries „we had
ports. They have to start depre¬
deal with it as time and oppor¬
at the option of the United States. prosperity
because the dollars ciating their exchanges, prohibit¬ primarily based on how very,
much worse, indeed how dread¬
tunity offers. If it is regarded as If the Fund would wish at some were
spent here; as long as we ing trading—heaven knows what.
liquid money we should say that time in the future to borrow and were willing to make loans, pros¬
ful, nearly all the alternatives that
Well, now, if you go on forever
I have ever seen put down in a
great confusion has arisen. It is if it would wish to borrow from
perity kept up. They criticize this and ever exporting more than you
true we have not yet funded it,
the United States, that is not suf
further on the basis that as long are buying, of course, there is ho sufficiently precise form to criti¬
but anybody can see that there is ficient. The United States has
there are dollars in the Fund remedy, and in relation to your cize them are. I think if I was to
no means whatever by
which we be willing to lend. There is no or the dollars that were originally
set myself to criticize this Fund
exports the amount you would be
can make 12 billions available in
I should do quite a good job of it,
into the Fund are exhausted
obligation for her to lend.
putting into the Fund is not very
but I should be doing no one a
cash; we have no cash. We can
we lend additional dollars to
Press; It is a moral, contingent
large. It wouldn't enable you to
make it available in the form of
service
unless I could produce
the Fund, you will precipitate the keep an unbalanced position on a
liability, I assume.
something
materially better. I
gocds in the course of time. Our
same sort of situation if some day
large scale for more than a short
Dr. White: You are using terms
think in the course of the last two
problem is whether in our future
the American people would refuse time, but what it does is to give
I am not able to apply.
course we can attain an honorable
to put more dollars in the Fund.
everybody a breather when they years that we have all been work¬
Lord Keynes:! don't think there
settlement
of this.
If anyone
-Then prosperity will cease. There can sit back and say, "We lose ing very hard and a great number
have been working on it and we
makes the suggestion that pernaps is any moral obligation at all. If will be no more dollars to spend.
nothing," the situations which
have been constantly improving.
we
have borpe a very large and at any time the
United States
anyhow would have to be solved,
Lord Keynes: Isn't the best way
The
Fund
is quite a different
disproportionate share—we should doesn't think it to be in her own
instead of depreciating their ex¬
to
answer
that to compare the
thing in many respects from how
greatly appreciate it, but our stand interest—we think it will be and
changes forthwith, of interrupting
it started and that is the. result of
is that this is an obligation which I think that it will but it depends situation with the Fund and with¬
dollar remittances and throwing
a
tremendous clash of brains of
we
have taken on and which in on
circumstances.
If it is not out the Fund? The United States
will have a certain amount of im¬ your export trade into difficulty.
the course of time we have to thought to be in her own inter¬
many, many countries.
You are
For the moment all is peaceful
If you are successful in
meet and that it is our responsi¬ est I think there is no moral obli¬ ports.
and provided it is only a tempo¬ brought up against different an¬
keeping up employment that may
gles. You have to have something
bility. It will be a great mistake, gation whatever.
rary situation it remains peaceful.
be large. You will be wanting—
that is suited to different condi¬
We think, to mix up this issue,
Dr. White: And, I assure you,
If, on the other hand, it gets
you Will be willing to lend the
which is an important one, with
tions, and I will say this, still as
if she deems it not to be in her
worse and you continue to export
world a certain amount.
On the
it is today I could make a prettyprovisions for the normal func¬ interest she will not do it, and if
on a very much larger scale than
other hand, you will also want tq
tioning of world trade. This is a she does it it will be because she
you
are
importing or lending, good job of criticizing it. I could
have a large volume of exports.
make a better job of criticizing
burden
which we perhaps im- deems it to be in her own interest.
then everybody is up against ar¬
providently took on and which But that is looking/ pretty far into Well, now in the long run, there riving at a place where everybody anything else, and that is really
must clearly be a balance between
what one must depend on.
we
have got to see how we can
the future.
those two.
After the last wa* joins together at a concerted solu¬
carry ourselves, but I think it is
tion and without having had a
there was stBl p very coosid*inh\e
Stability Or Mobility?
Prosperity Through Fund
important that we have waged
premature, forthwith crisis con¬
quantity
of
gold outside the nected. That is all the Fund can
Artificial?
this war on a different basis from
Press: Will the Fund favor the
United States, so that it could be
efforts of a government to appre¬
anyone else, on unlimited liabil¬
do. The Fund can't solve continu¬
Supporters of the Bretton Woods
ity. I think I can say there is no program regard the cost to the bridged for a time by gold. Well, ing problems of this sort. It can ciate, increase the value, of its
now, the amount of leeway that
other country which owes any¬ United
States as insignificant—
just give the opportunity for set¬ currency, a certain currency at a
exists on this occasion is very
thing materially as we owe to citing our quotas in the Fund and
tling it in an orderly way. And depressed time or will it prefer to
small in relation to what your ex¬
those Allies and associates who
Bank—when compared with the
if you don't run into this position have it remain unchanged, the ex¬
ports might be. Suppose that you
have helped us with this quite
after the war, then the Fund is change?
cost of waging the present war.
are balancing your position fairly
prodigious sum. That is the back¬ Some persons have been wonder¬
Lord Keynes: I think the whole
entirely harmless so far as you are
accurately. Then no trouble arises
ground. If anyone would j like to ing, therefore, whether the con¬
concerned because all your dollars bias of the Fund is stabilization.
with the Fund and' no trouble
develop it I should be glad to see tribution the United States makes
remain there intact. On the other
arises without the Fund. All your
That is to say,
that you stick
what I can dp about it.
hand, if you do fun into this situa¬
under its quotas is all that this
dollars remain intact in the Fund
where you
are unless there is
It is a simple proposition—here country will be
called upon to because, you see, because it is not tion then you are given an organi¬
is the large war debt which can¬ make. A related point is whether
real, serious necessity calling for
balanced with a single, individual zation to find a rational approach,
not be available in free cash, and
change.
I am hot quite sure
the program does not depend on country. If you balance with the a friendly way out of it and a lit¬
a
good many of the suggestions
whether I caught your question.
world as a whole, if you ' buy
an endless stream of dollar credits
tle time to think it all over, and
one sees seem to be that there is
Keynes:
prepared
| debt
be
this big war
device by which we can
some
to
repay
over
points
These two
the years.
goods from
anywhere in the
world,
out of some small number of
Other arrangements have
>
l
years.
As soon as you see
think the relationship
that with the problems here
close.
The only closeness is
be made.
to
that I don't
of
is
he construed as an offering of these Securities for
offer to buy, any of such Securities. The offer is made only
This is under no circumstances to
solicitation of an
that the discussions here
successful if world trade is
sale^ or as an offer to buy, or as a
by means of the Prospectus.
this—is
are
carry
to
to
on our
which we
shoulders, and
alone have taken
load—I think leads to a
the fact that we
this
of misunderstanding.
not say any more at
deal
great
But let
this
•
this terrific load
have taken
on
I
'• '
000,000-,0,1$
"
stabilized. And getting back
convertible—it will enable us
me
ZVi% Series due ; 1969 • •••
;.v'
'''
'I -.T41f -
September 15, 1944
Due September 15, 1969
©ItI';. -V v" ■ A.;:y:
V;,:;7';
point.
Press:
Does that mean
Union Gas Company
The Brooklyn
Sinking Fundf >0 •; - ■' '■ vv
Bonds,
;v
General Mortgage
that the
■,T.'v
which have these credits
will have to spend the full amount
with Great Britain or do you hope
■
■-
.
,
.
nations
of the credits avail¬
in the form of foreign ex¬
to make some
able
Dated
W-fm
change—
Price 102)4,%
Keynes: We can only make it
available by exports. How far
and accrued interest*
-
•
exports can be triangular
trade and how far direct depends
these
upon
creditors over¬
natural markets. It
made available by
how far our
lap with our
can
only be
T
goods.
Press:
Is it clear,
then,, that the
point you are making—it is
Great Britain's wish to have
,r
1
this
,'
legally offer these Securities
problem injected into the stabili¬
zation fund machinery from the
British point of view—the aim is
to keep this thing separate and
handle it
M &&}■+ <: t
Yes. I think the pur¬
of the Fund is different; it
is not to take care of this past in¬
debtedness but to be an averaging
out or smoothing out organization
to enable future current opera¬
OTIS & CO.
y LADENBURG, THALMANN & CO.
(INCORPORATED)
*■'•'•.
v,;::is/it-'ry.irL.-.
^
;
'v
■
,HALSEY, STUART &
yourselves?
Keynes:
be obtained from only such of the undersigned as may
in compliance with the securities laws ofthe respective States.
CO. Inc.
to
countries
with
not a
go
CENTRAL
(INCORPORATED)
E. M.
smoothly so that
average bad years
NEWTON &.
on
can
good, and so on. But it is
Fund that any country can
expect to live off of. It does not
cover
all
the indebtedness;* it
BURR & COMPANY,
REPUBLIC COMPANY
•
September 21, 1944.
"
.
"
'
;
INC.
INCORPORATED
/.'<■%>:
;
!
.
"
F.
v
r
*■
,
'"V;" V .V: V'
'
INC.
FIELD, RICHARDS & CO.
GREGORY & SON
COMPANY
;
<•,
r
SCHOELLKOPF, HUTTON & POMEROY,
,1 ■'
pose
tions
♦ 4
Copies of the Prospectus may
.
not
1258
THE COMMERCIAL & FINANCIAL CHRONICLE
best
Progress In Surplus Disposal
(Continued from
interests
small dealers by
making
of
attracted
to
should offer
for sale, when, and at what price,
ing results in distribution
few
from
small
be
whether
and
years
worthwhile
a
for
of
stores.
your
of supply
departments in
In instances where
Composed
quantities,
of
Undoubtedly the most
thing I
outset is
tell
can
that
reassur¬
the
at
you
of
aware
the
high
rank
business
men
Administrator.
In
test the market
The
in
solved
let
be
probably
the industries involved.
has
been
initiated
in
of
attempt
to ascertain what the effect of
various
regular
highly
men
fields.
has
with
months in
and
respected
One of your
been
in
their
for
lator
some
operating
our
division.
ever,
In
experienced in solving them.
In
words, you need have no
worry
that
the
important de¬
which
this
v/ill
have
to
concerns
too small
be
property disposal will be made by
men
unacquainted
with
com¬
Next I want to
you
that
every
effort is being and will
con¬
tinue
to
assure
made
to
dispose of
surplus merchandise in
a
a
manner
rate that will not under¬
mine in any degree the health of
the national economy.
We are
conducting
continuous
studies
19534
In
which
be sympathetic with
ties.
We
cannot
prospective
that
will
insure
the
you
will
a
manner
an
opportunity
stores to buy.
This we
accomplish by giving attention to
lot sizes, to our
price differentials,
for small
and
to
We
by
our
no
advertising methods.
means attempt to sell
to
cases.
Rather
small
retailers
we
believe
in
all
we
can
$>5,189,000
have
buyers
is
a
list
two
gun
a
for
To
mature
annually $518,000
To be guaranteed
on
to
of
secured
by
$6,913.000.
Agreement
to
tractors,
be dated
bolo
MATURITIES AND YIELDS
1945.
.0.90%
1948
1.45%
1946.
.1.10
''
1949
World
.1.30
7
1950
1.80
1951
1.90
Issuance and sale of these
Certificates
HALSEY, STUART
OTIS A, CO.
'INCORPORATE
& CO. Inc.
THE FIRST CLEVELAND
SINGER, DEANE
CORPORATION
4 SCRIBNER
MASON, MORAN
MULIANEY, ROSS
4 CO,
& COMPANY
be
a,
oTlS date.
° and W,"'e "0t *»«»"«>
must
know
what
Second, we must
determine who is likely to be in¬
terested
in
the
various
these inventories.
must
ing
in
Third,
we
information regard¬
convey
stocks
our
items
hand
on
the
to
potential buyers.
smoke
I
position to take The three fore¬
a
going steps.
lished
First,
have estab¬
we
excellent
an
inventory ac¬
counting system in each regional
office
and
master
a
Washington.
operating
We
with
control
have
the
been
Army
and
of obtaining
purpose
them
Our
appraisers
own
impressed
(with
have
the
im¬
portance of basing their decisions
recommendations on careful
and
inspection
regards
as
specifica¬
tions and
conditions.
Secondly, we have placed
selves
in
a
be
approximately
of
men
long familiar with
markets, as I have previ¬
pointed out, and through
establishment
its
should
we
of
which
attention
a
research
will
concen¬
largely
the
on
At this point I
also mention the fact thai
are
continually obtaining ad¬
vice from
business
groups,
ad¬
visory committees, trade associa¬
tions, and others—and from indi¬
vidual business
in
erous
to
...2.05
men
their
who
offers
are
of
gen¬
counsel
us.
Thirdly,
2.10
are
we
making
releases and
press
use
of
direct mail
to
information about offerings
to prospective purchasers.
Plans
carry
The
are
being laid looking forward to
the
use
just
as
of
in
display
paid-space advertising
soon
penditure
also
this
as
process
rooms
A CO.
BIOREN A CO.
ALFRED O'GARA & CO.
h^s
or accuracy we
Ldv fof
c?reful?i
belteve%
kind
in
of
ex¬
We
justified.
seems
the
are
of setting up
our
and our regional
buyers will have
A CO.
Washington
offices
where
an opportunity
inspect items in our inventory.
My remarks thus far give you, I
hope, an adequate idea of our phi¬
losophy and thinking as we pro¬
to
ceed. to establish the policies and
procedures governing the disposal
of surplus property.
I hope also
that you accept out
philosophy
and
thinking
shall make
any
to
as
being sound.
some
business does, but
do
all
them at
a
in
our
We
mistakes just as
we
power
intend
to
keep
minimum.
September 21, 1944
bidders
when
at
Methods of Sale
Before closing there are two or
three more points I want to touch
there
are
more-
prices
ceiling
than.
there is property to be distributed.
Recently there has been greater
emphasis
on
the negotiated-sale
because, if carefully em¬
ployed, it can result in distribu¬
method
tion as equitable as the sealed-bid
method, and because it may bring
a
higher price and involve less
Finally,
expense.
has
it
the
marked
advantage of speed at a
time when every effort is
being
dise
in
to it that merchan¬
see
short
supply reaches the
hands of consumers as quickly as
possible.
Not
only
does
this
speedy movement of property at
present time
ing
the
serve
very
of satisfy¬
purpose
urgent
consumer needs,
but
probably results in a higher
also it
return to the Government.
Fur-'
ther, it decreases the amounts of
property which may hang heavy
the
over
market
in
the
years
ahead.
Size of Surpluses
There
is
universal
interest in,
guessing about, the
size of the surplus which we and
the other disposal agencies will be
and much wild
called upon to take over and sell.
It is
policy to make no predic¬
regarding the quantity of
future surpluses for the very good
our
tions
that
reason
large
we
have
will be.
factors which
many
the
most
of
rounded
today.
size
of
these
idea how
no
they
mine
our¬
positiop to locate and
study of markets.
to
allocation
in
co¬
opportunity
Actually,
this;
an
buyers, and it does not
problem of equitable
the
commendable
During the past few months we
have been working day and
night
in an endeavor to
put ourselves in
trate
of October 1, 1944,
potential
ease
the
Recent Progress
the
to insure all
use
buyers
be
to
seems
participate.
exerted to
We must know
;
potential market.
our
department
WM. J. MERICKA 4
CO., INC.
'» completeness
We
in¬
our
have to sell.
the
Definitive certificates
coim
ventories.
we
ously
1954, inclusive
Par value and semi-annual
dividends (April 1 and October 1)
pavabie !n Chicago
in coupon form m
the denomination of
$1,000 registerable as to pa" value
redeemable prior to maturity. It is
Not
expected that Certificates
jn temporary or definitive form
delivery in Chicago, Illinois on or about October
wi
be
2, 1944. The information
contained herein
been
fo
accurateJ knowledge—a
complete description—of
ices
To be dated Cclober >.1944.
Illinois.
an
evaluate potential piarkets for our
goods, through acquiring the serv¬
HIRSCH, LILIENTHAL
INCORPORATED
•nwnrwnMiLV
^
HILL & CO.
ownership of
to. such buy¬
First, we must
us
and
method is not attractive to many
operating
in
it
interested
to
management
yourself.
as
those
as
F. S. YANTIS 4 CO.
transfer
a
been
SCHWABACHER
INCORPORATED
ers
us.
FIRST OF MICHIGAN CORPORATION
GREGORY & SON
be
about
we
adequate descriptions
of the property they turn over to
L. F. ROTHSCHILD &
CO.
D
me
military
War
concern
modern
Navy for the
subject to approval by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is
circulated
from only such
of the undersigned and other dealers as may
lawfully
offer these securities in such State.
are
business
merchandise from
from
1952..2.00%
1.65
1947.
to
However,
This method has
appealing element of fairness
"safe" method to
general approach
same
a
rubber-tired
scabbards,
and
$5,180,000 principal amount of Certificates
standard-gauge railroad equipment estimated to cost
new
is
Let
grousers
special
unconditionally as to payment 0} par value and dividends by endorsement
by Chicago and North Western Railway
Company
These Certificates are to be issued under an
which' will
provide for the issuance of
mer¬
and
there is
high-speed
generators,
any
have
This'
than the other two up
more
the present.
an
surrounded by dif¬
are
conditions.
the
market,
which
carriages, ice
treads
to
an
few examples in the latter
categories—disc wheels for
attached
each October 1, 1945
we
which
there
Equipment Trust Certificates
(PHILADELPHIA PLAN)
for
market at all.
no
of
market,
doubtful
merchandise
regular
a
tomorrow.
none
which
by
to
them is
patience if
your
use
effect
what
items, for
quantities
ready
for
or
simply
as
Chicago and North .Western Railway Company
Equipment Trust of 1944
1/4%
over
My
We recognize that we must take
three broad steps before we can
guide
regarded
merchandise
chandise
small
be
for specific
have large
item today and
there
in
policy of
our
offering merchandise in
direct
to how
control
no
we
under
gross
a
used
methods.
Office of Surplus Prop¬
have
we
solicit
ferent
net
be slow, cumber¬
uneconomical.
The sealed-bid method has been
nature
presenting
do
moves
types of merchandise we are re¬
quired to sell nor over the quanti¬
you represent
classed
are
which will put us in a position to
as
the
erty
in
to
cause
and
method will be limited to similar
regu¬
problems.
our
as
even
methods would
some
we do not always seem to conduct
ourselves exactly like your other
sources of supply.
We cannot be¬
over
no
as
of
purpose
in.
are
Insuring Small Store Participation
exercise good
judgment
is
may
stores
Goal
And
un¬
wiil not infer that I
you
size
rather
merchandising activities!
exactly the position we
resource
"large" category, I know
and at
your
We
the
store!
Government
complaining about the
and
your
control
no
in the case of property cus¬
tomarily sold by this method, such
as horses, and
of property avail¬
able in heterogeneous lots where
sale by either of the other two
I
not
am
The
auction.
to
and then you, too,
now
and
situations in the future.
hope
am
reserve.
And no
the amount of mer¬
And
your
That
unduly large profits to
Although most of
Disposal
be
to
means
the purchaser.
mercial practices.
Orderly
price which
a
I
in
over
figures, nor
profit figures, to use
return to the Govern¬
a
ment and
of surplus
program
at
on
that I
answer
auction method has been resorted
lations.
in forward
profit
which will pay as
concern
stocked
counters,
restrictions.
heed
must
the kind
over
the time when merchandise
into
specu¬
Our real aim is to avoid
selling to
other
in
a
the resale to be equal.
Nor does
this policy necessarily mean that
we will not sell to new concerns.
lems of distribution and which is
cisions
a
as
and
chandise!
a price for merchandise as a
regular dealer in that merchan¬
dise, assuming service rendered in
regional offices, too, we are fast
acquiring
personnel
which
is
thoroughly familiar with the prob¬
made
do not class
control
no
merchandise
control
through
high
11
our
sell
trade
we
having
shelves and
channels, and to
avoid selling to speculators. How¬
number
own
me
charge of
control
divisions
to
or
that
aware
than
stock
endeavor
manufacturer,
retailer.
However,
any
me
of
re¬
rates will be.
We
Government
hasten to add
they
three—sealed-bid,
are
negotiation
On top of all this we have
to act within the limits of certain
solve
think
have
you
using, there
as
however, which no amount of in¬
genuity can move out of our
must
I
on your mind.
As to the methods of sale we are
for example
as
hands.
ordinarily
difficult
and at the same
time, I must con¬
fess, more than ordinarily inter¬
esting.
Imagine yourself in the position
Research
an
by
more
leasing these surpluses at various
organization in Washington I have
brought together to head up our
merchandise
among
point out some of the
aspects of this job which make it
In
will
from
questions
premium on a kid's radio pro¬
gram.
Numerous are the items,
Unique
we
classification,
because
on
mar¬
in the sale of the spurs for use
to you to be po differ¬
those which must be
wholesaler
declared in amounts equal to two
or three years' normal
output of
own
problems
may seem
ent
erty surpluses
among
of Will
my
we
prop¬
Clayton, the Surplus War Prop¬
erty
Our Problems
then
now and
item out of the "no
an
a
retail outlets.
have in¬
we
ties of the industries involved.
the case of some types of
with consider¬
men
posal of the merchandise in which
you are interested.
You are all
American
market
absorbing our offerings without
inflicting undue injury on the
producing and distributing activi¬
business experience are and
be responsible for the dis¬
will
of
order to ascertain its capacity for
Business Men
able
standpoint
ventories of merchandise in large
Organization
ing
the
wholesaler
we
are
effects.
source
the
any
shall
we
property
takes
ket"
Thursday, September 21, 1944
Ingenuity
spurs.
i
that
our offerings.
Wide
participation in buy¬
unfavorable factor in the general
business picture during the next
much
these
sure
wholesalers, large and small,
1243)
page
the
serve
There
will
are
deter¬
surpluses,
factors
and
are
sur¬
by large question marks
Regardless of the size of
the
surpluses, we are confident
their disposal can be man¬
aged in a way that will do the
country and the business com¬
that
munity
good.
the
worries
see
great
dise
We
of
do
these
quantities
of
literally dumped
share
not
people who.
merchan¬
the
on
mar¬
ket without regard for the inter¬
est of the taxpayer, the manufac¬
turer, the merchant, and the em¬
This is not said in a spirit
ployee.
of
boasting, but rather one of
plain common sense.
The
dis¬
posal
of
these
surpluses
be
can
controlled for the good
of
every¬
body if those in charge
are
deter¬
mined
to
establish
maintain
and
the control.
In
closing
there
who
to
a
do
will
not yet
very
to do
I
still
may
be
that
assume
of
some
have the
you
answer
practical question: "How
business with the
Office of
Surplus Property." The answer is
simple.
Write
to
one
of
our
regional
the
offices—the
one
serving
in which you are located
—and ask to be put on the mailing
area
list to receive notices of offerings
of the kinds of merchandise you
are interested in.
We have offices
at
present in Boston, New York,
Washington,
Atlanta,
Chicago, ,f;
Cincinnati, Fort Worth. Kansas
City, Denver, Seattle and San,
Francisco.
We
hope
Which
ice to
our
you!
we
source
stores.
shall do
stores
customers
means
profitable
your
your
good
come
will
-
intend
of
of
be¬
ours.
be
to
supply
Be assured that
utmost to be of
Thank
you.
a
for
we
serv¬
1259
THE
Number 4318
160
Volume
COMMERCIAL & FINANCIAL
Is it any
any
might into the war
of this country have
and women
felt
Manpower
War
the
their
impossible? Is it
wonder that the workingmen
organized labor have found
(Continued from page 1243)
There's
has supreme power over
jobs very nearly
Bargaining And Labor's Rights
With
they
more
had
grievances?
just
I refuse to believe that workers
board
in this country will play the role
the vital
of supplicants to any throne. I re- v
matters of wages and conditions
fuse to believe that any man or
of employment/ Whether by de¬
group of men can deliver any sec¬
sign or sheer incompetence,, its
tion of our people by holding the
practice has been to stall weeks,
power of government over their
months, sometimes years before
heads as a club.
issuing decisions. For that reason,
I do believe the American peo¬
too, thex working man and work¬
ple when they go into the secrecy
ing woman and their families
That
Board.
Labor
War
wonder, in the face of
that the leaders of
record,
that
Dewey To Preserve Collective
CHRONICLE
than 25 Federal agen¬
cies pulling in opposite directions,
Labor
we have been yanked from crisis
of the voting booth will insist on
Pro¬ to crisis in the field of labor.
have had to suffer.
This year, also, we are called
One month ago today, on Aug. government by law and not by
duction, the Wage-Hour and Pub¬
So,
Democratic
Congressman
upon to hold a national election.
special favor and political extor¬
lic Contracts Division, the Na¬
Does that mean that there must
Smith
and
Democratic Senator 18, The War Labor Board had tion.
tional Labor Relations Board, the
be the slightest hesitation in our
Connally produced The Smith- pending before it, still undecided,
I propose that we shall have
Conciliation
Service,
the
Fair
forward
march
to
victory? It
Connally Act which they prom¬ 22,381 cases. One of the oldest of
Employment Practice Committee,
these
involves
the
rights and government by law after Jan. 20,
means exactly the contrary.
ised
would solve all problems.
1945. Here is the first thing to be
the Retraining and Reemployment
wages of 600,000 workers. Another
Our military leadership in this
Honest men were willing to be¬
done. We
must have, from the
Administration, the War Produc¬
one directly affected half a mil¬
war has been superb. I have made
lieve that nothing could make the
ranks of labor,
an
active, able
tion Drive Division, the National
lion wage-earners. The other 22,it plain and I cannot emphasize it
situation worse.
So the statute
Mediation Board, the Shipbuild¬
379 cases involved literally mil¬ Secretary of the Department of
too strongly that a change in the
was passed.
Labor.
lions of working people living in
National Administration next Jan¬ ing, Lumber, and other special
It has not solved the problem.
Second, the functions of the
industry commissions.
every
industrial center of this
In the 12 months prior to the pas¬
uary will involve no change in the
nation. That's why it's time for a Department of Labor must be put
In addition, there are labor sec¬
military,leadership of the war.
sage of The Smith-Connally Act
back into the Department of La¬
In the change.
What this campaign will do is tions of OPA, WPB, OES, QWI, there were 3,359 strikes.
bor. It will not be necessary for
Now who gains by this planned
The
War Shipping Administra¬
12 months following the passage
prove to our enemies that we can
confusion?
The
workers
don't the workingmen and women of
tion,
Selective Service, and a of that
act
there
were
4,448
fight total war and speed final
America to knock on door after
gain. The public is always in the
victory by changing and strength¬ jumble of others too numerous strikes. In other words, the num¬
door and sit in waiting room after
middle. The war effort has been
to mention.
J
ber of strikes after The Smithening our administration.
This
towering
confusion
of Connally Act was passed increased constantly hampered. Who does waiting room to find out what
It will drive home to Japan—
their rights are.
agencies has marked a serious by one-third. That law — The gain? There can be no doubt of
and to Germany also if that coun¬
Third, we shall abolish many
backward step for the working Smith-Connally Act—will expire the answer. This policy of delay,
try should still be in the war on
of these wasteful, competing bu¬
people of the country. A Republi¬ with the termination of the war, delay and more delay serves only
Nov.
7—the
bitter lesson that
the New Deal and its political reaus filled with men quarreling
can, President Taft, was the first
as
it should.
The provisions of
every day they delay their sur¬
for jurisdiction while American
ends. It puts the leaders of labor
to recognize that labor's problems
this law and the other New Deal
render will make more onerous
citizens stand and wait. We shall
were of cabinet importance.
Un¬ interferences with free collective on the spot. It makes them come
by just that much the terms of
hat in hand to the White House. put their powers and their duties
der him the Department of Labor
bargaining should never be re¬
their defeat.
into
the one place where they
It makes political loyalty the test
That new depart¬ newed.
1
This election will also bring an was created.
belong,
in
the Department of
of a man getting his rights. Per¬
ment was
soundly administered
The right of workers to leave
end to the quarreling and bicker¬
Labor.
' sonal government instead of gov¬
under four national administra¬
their jobs individually or together
ing and confusion in the Nation's
Finally, just as we shall abolish
tions. Neither labor nor the nation —the right to strike—is one of ernment by law, politics instead
Capital which has hampered our
unnecessary bureaus, and agencies,
had any quarrel with its opera¬
the fundamental
rights of free of justice prevails in the labor
war effort from the beginning to
we shall abolish privilege for one
field in this country and I am
tion. But for 12 straight years of men.
It
has
sometimes been
the end.
group over any other group. We
New Deal bungling ihe Depart¬ abused. But what has caused that against that kind of administra¬
Among the things which have
shall see that every working man
tion and always will be.
ment of Labor has been left in the abuse?
been
holding us back here at
This strategy of delay sets the and woman stands equally in that
hands of an estimable lady who
Let's get the answer to this one
home is an Administration Labor
department created to serve them,
has been Secretary of Labor in
straight for the record, too. The stage for a great gesture—a big not to rule them. And there will
Policy which has bred class divi¬
favor to labor before election day
name only. For all practical pur¬
New Deal is exclusively respon¬
sion, hate and insecurity. I can
be no back door entrance to spe¬
—a gesture carefully designed to
poses we have neither a Secretary
sible for most of the serious war¬
say without qualification that the
believe that some¬ cial privilege by one group over
of Labor nor- a Department of La¬ time strikes. The chief blame goes make labor
labor policy of this administration
any other group of Americans.
bor today.
We need a Secretary directly into the White House and thing it is justly entitled to is a
has been one of delays, bungling
There is no question where we
of Labor. We need a Department to its agency created at the top special gift from on high from
and incompetence. It has put un¬
(Continued on page 1264)
>
of Labor. Twelve years is too long of all this chaos of agencies—The the New Deal.
told obstacles in the way of la¬
to go without them. Sixteen years
bor's
effort
to
avoid wartime
would be intolerable.
.strikes, It has fostered strife be¬
Let me give you a concrete ex¬
tween one labor group and an¬
other, between labor and business ample of what has been going on
and between both and govern¬ in every part1 of the country. A
ment. It has affronted the wage while ago an election was held to
,
earner
by
reducing his basic decide the collective bargaining
rights to the level of political re¬ agency in an important industry
ward. It has made the wage earn¬ engaged wholly in critical war¬
er's pay envelope and his hours time production. A dispute arose
and conditions of work a football and both workers and employer
and all of our
in the Pacific.
War
the
Commission,
the Office of Labor
Board,
*
,
•
,
,
$2,500,000
of
7
administration
it
why
reason
change,
policies of
another
time for a
The labor
politics.
this
is
no
chart, not even a
move, when we
all, to the shifting winds
sion
no
at
•move
We
of one man. Is that
of the law—of the Na¬
tional Labor Relations Act? Not
for
one
minute.
The National
•Labor Relations Act was the work
of the caprice
the fault
of
bi-partisan majority
a
of both
Concilia¬
lican
It
acknowledges the
law
trend of our
the
has
badly. It has failed
will continue to be
of the land. But that law
'times and
working
to secure the industrial harmony
we sought.
It has failed because
been
present administration,
the whims of bureaucrats take the
place of government by law. Why,
under the
the railroads where
orderly system of mediation
even
on
an
has
painstakingly created, we
December on the brink
of a paralyzing strike. That was
only because one-man
govern¬
ment could not keep its hands off
established, previously successful
been
stood last
legal processes.
There
is
another reason
why
National Labor Relations Act
has not worked as it should. Our
Labor Relations right down the
line have been smothered under
a welter of agencies, boards, com¬
missions and bureaus.
the
Let
.v
some
me
list of just
give you a
of them:
.
_
'
r
,
•
.
Board.
Regional Office of The
Labor Divisibn of The War Pro¬
5. The
duction Board.
These
by
new
standard-gauge railroad equipment
.0.85%
Headquar¬
Agency
Washington
Regional Office of
9. The
.1.05
The
Ten different
1947.
.1.20
had
file seven
to
briefs and I may add,
ies of each.
Finally,
Issuance and
was
War
things
was
sale of these Certificates are
1.90
1.925
Commission. The
is circulated
subject to approval by the Interstate Commerce
HALSEY, STUART A
INCORPORATED
clear
and the
the printer.
printer's proof
received, both sides were no¬
The" National Labor Re¬
lations Board that a new
had been
So
MOORE, LEONARD A LYNCH
SCHWABACHER A CO.
THE FIRST
PETERS, WRITER A
SINGER, DEANE A SCRIBNER
CLEVELAND CORPORATION
WM. J. MERICKA A
final order issued by
Board. At last
the
petition
granted for a new
they
were
where they started.
right
v
elec¬
back
A CO.
GREGORY A SON
BIOREN A CO.
CO., INC.
F. S. YANTIS A CO.
CHRISTENSEN, INC.
f
HILL A CO.
STEIN BROS. A BOYCE
:
MASON, MORAN A CO.
MULLANEY, ROSS A COMPANY
ALFRED O'GARA A CO.
*: •!
'
-
INCORPORATED
Labor
seemed
L. F. ROTHSCHILD
INCORPORATED
different
fifteen cop¬
and five days
certified by The
Labor Relations Board,
a
CO. INC.
OTIS A CO.
HORNBLOWER A WEEKS
was
before
tified by
tion.
Both
one year
agreement was sent to
But
1.85%
1952,
Offering Circular may be obtained in any State in which this announcement
from only such of the undersigned and other dealers as may lawfully
offer these securities in such State.
/
union
National
The
"
The
government offices
-Washington.
in
hearings
there
,
.1.80
1951
presuming to settle one labor
There were four formal
a
by endorsement
1953.
1954.
.1.55
1950.........1.70
dispute.
after
. .
estimated to cost approximately $3,221,950.
1949
Relations Board.
National Labor Rela¬
tions Board.
sides
-I .
....1.40%
1948
1946.
National Labor
all
'
are to be issued under an Agreement to be dated as of September 15,1944,
provide for the issuance of $2,500,000 par value of Certificates to be secured
1945.
States Maritime
Commission, Labor Division.
10.
,
MATURITIES AND YIELDS
United
The
of
,J
-
^
Certificates
which will
of The Procurement
ters
'
Commission.
8. The
National
'Act is a
guaranteed unconditionally as to payment oj par value and dividends
by The Chesapeake and Ohio Railway Company.
:
Maritime
Labor Relations
good and necessary law.
To be
Labor
War
National
The
4.
each September 15, 1945 101954, inclusive
^To mature annually $250,000 on
Office of The
Board.
Regional
National War Labor
of Congress.
Administration.
The
(PHILADELPHIA1 ^IAN)
Board.
3. The
Certificates
Equipment Trust
Shipbuilding Commis¬
of The National War Labor
2. The
6. The
Washington Headquar¬
A majority
ters of The Labor Division of The
of the members of my party voted
for it.
That act was modeled on War Production Board.
7. The Labor Division of The
The Railway Labor Act of 192-3,
a
measure
which was written, Regional Office of The Procure¬
ment Agency :of The United States
passed and approved by a Repub¬
Houses
%%Serial
1
Servicef
tion
course,
compass.
dispute:
United States
one
1. The
the field
There is
Where are we today in
of labor? We are adrift.
f
following
the
with
that
to deal
agencies in
themselves forced
found
are
Chesapeake and Ohio Railway
Fourth Equipment Trust of 1944
To be dated
September 15,1944, Par value and semi-annual dividends
certificates in coupon form in the denomination of
N. Y. Definitive
from
sources
correct as
considered reliable
of this date.
September 21. 1944
(Mar. 15 and Sept. 15) payable in New York.
$1,000 registerable as to par value. Not re¬
Certificates in temporary or definitive form will be ready for
The information" contained herein has been carefully compiled
and while not guaranteed as to completeness or accuracy we believe it to be
.
"
deemable prior to maturity. It is expected that
delivery in New Y~rk on or about October 2, 1944.
i
f
1260
THE COMMERCIAL & FINANCIAL. CHRONICLE
In
u
Post-War
Employment/ Flexible
I:'-To Holders of
able.
workers.
Apart
from
obtainable for the products of in¬
Re:
1V\,
As
a
*. '•*
•
,
>\ -'<#
'•
■
(
,;
"#
1
v
equally-to
will be made.
HALSEY, STUART & CO. Inc.
CHICAGO
90,123 So. La Salle Street • NEW YORK 5, 35 Wall Street
OTHER
AND
PRINCIPAL
11
how
difficult
problem will be to maintain
business activity and employment
on high levels in the years ahead.
Yet that problem has to be solved
—-for the material well-being of
our nation, and also because our
huge public debt makes it a ne¬
cessity.
Where we are concerned with
.New York offices where immediate
or
That
CITIES
interest
in
the
bor's
a
pas¬
remuneration
automatically
rigidity in
expenditures
our
price and wage structure. Sooner
or
later it breaks down anyhow
or
causes
the whole system to
jam.
It has to be enforced by
bureaucratic control while it lasts.
advanced industrial nations
The
bordering on the North Atlantic
are
guided by sound instinct in
finding unattractive the idea of a
procedure which might also be
sales of radio sets,
washing
machines,
agricultural
equipment, and furniture.
Fur¬
thermore, private industry could
be advised to keep their capital
flexible.
We do not want
time, the
same
applicable to
successful
operation of the enterprise, profitsharing would make a part of la¬
our
maturing October 1, 1944 may be presented
Chicago
payment
under
are
they
headings,
point.
indicate
to
serves
'
at our
the
listed
are
,
convenience to holders of the above bonds, interest
*
coupons
added
His other recommendations
Payment of October 191944 Interest Coupons,
*'
>.
employer-labor relations gener¬
ally and giving the workers an
•
At the
figures by a more or less drastic
increase of the down-payment re¬
quirements on instalment sales —
benefiting
dustry.
Highway Refunding Bonds of 1941:
prosperity,
great
senger motor car output could be
held
down
to
moderately high
(Continued from page 1242)
ible wage rates which would allow
the adjustment of costs to prices
of
years
these projects would be postponed
to
the extent considered advis¬
Costs And Profits'7
|-f $130,662,000
State of Arkansas
|
Thursday, September 21, 1944
within
moderate
limits.
If all this should
cient
to
keep
not be suffi¬
business
from
ex¬
panding to. dangerous levels, the
income
by,
tax
rates
1%
say,
could
and
be
the
raised
additional
amount thus collected could be
re¬
funded in years of recession, after
the index of industrial activity
maintaining
or
restoring
the
fairly well balanced function of national economy run or ruled by had remained for some time be¬
low a certain stipulated level.
our
economy on adequate levels,
the civil service.
In times of receding business,
it is not merely the type of rem¬
The size of our
public
debt
the procedure would necessarily
edies or preventives we choose leaves
hardly any scope for fur¬
be
reversed.
The
that matters; their dosing in ap¬ ther
catalogued1
deficit financing of
public
prosperity
reserve
would
be
At its recent annual meeting tion, announces that the report of plication is of equal importance. works
programs
in
the
years
drawn upon to a greater extent
in
Chicago the American
Bar the statutory Board of Adminis¬ All business cycle correctives and ahead. We shall probably be com¬
than would have been done dur¬
devices
Association recorded its intention tration of Florida, for the three- control
might bear the pelled to operate on balance bud¬
to
advocate
before
the
proper month
period ending Dec. 31, warning label: "Use sparingly." gets, yet shall have to achieve a ing the period in question had
business remained stable. Instal¬
Like any delicately balanced or¬ high level of
committees of Congress, adoption 1942,
and Of the constitutional
employment and na¬
sales would be facilitated
of Congressman Lyle H. Boren's State Board of Administration for ganism, the industrial economies tional income and have to main¬ ment
bill (H. R. 1502), which is de¬ the year ending Dec. 31, 1943, is of free nations are highly allergic tain it by means of that fair state by down-payment reduction, more
of balance of production and con¬ liberal credit allowed for home
signed to specifically exempt mu- available in limited supply at a to harsh interference.
and business concerns
In the field of business cycle sumption, labor demand and sup¬ building,
nicipal bonds from the regulatory cost of $5 per copy.
The report
activities of the
Securities
and contains operations of the respec¬ control, cause and effect have a
ply, costs and prices, which makes encouraged to raise their annual
Exchange Commission, also legis¬ tive State agencies, is arranged disconcerting way of interacting. for stability and allows gradual capital expenditure by a certain
lation which would perpetuate the alphabetically and gives compre¬ By measures to restore balance,
wholesome expansion. Our rapid¬ proportion, say 25%.
We might prevail upon friendly
Municipal Bankruptcy Act.
The hensive information relative to we may cause disequilibrium or ly but unevenly increasing pro¬
Association also announced its in¬ the several hundred county and contraction elsewhere. It is partly ductive efficiency, usually coin¬ nations to work along the same
tention to sponsor a series of nine special road and bridge district for this reason that, as in war¬ ciding with declining man-hour lines of control within their terri¬
Municipal News & Notes
5
amendments
the
to
bankruptcy
experience
has demonstrated are necessary to
strengthen the law. The municipal
bill
time
which
and
law section of the ABA is headed
.by John D. McCall, Dallas, Texas,
attorney and also includes Charles
D. Frierson, drainage district law
all of time price control, so in peace¬
jurisdic¬ time business cycle control many
tion of the SBA.
The data given remedies applied gently are more
includes the following:
likely to serve the desired pur¬
Name,
date,
interest ' rate, pose than would the drastic ap¬
original amount of each bond is¬ plication of a few. As in effective
sue, and balance principal, inter¬ price control, so in business cycle
in
bond
issues
which
are now
est and total
Florida,
under the
each
New
for the interest and
York
City;
Stephen
W.
Downey,- irrigation district-,,law
specialist, Sacramento, Calif., and
J. Bowers Campbell, litigation at¬
torney of the Reconstruction Fi¬
Corp.
nance
The
Cash
balance
Total
Among
amendments
advanced is
out the
one
expire June
McCall
of
30,
1946.
attitude
law
This,
said, indicated
the
on
^lawyers since original
the
which
a
re¬
part of
enactment
tend the
r
certain
ex-
coverage of the law to
types of
revenue
bonds
[not specifically included
\ and also to bring in certain
J divisions of governments
presently
named
such
now
and
bridge
due
by
bonded
each of the
gasoline tax money
Chapter .15391, known as
Bill^.including
par
jpric^ paid.
comparative
statements
data,
and
similar information.
final
sues
to
of the
pages
several
report
bridge bond is¬
administered
under
Chapter
21853, Acts of 1943, which do not
participate directly in the second
gasoline tax.
"in-
corporated authorities."
FIG Banks Place Dabs.
A successful offering of an issue
are:/Simple definition of debentures
for the Federal In¬
■of insolvency as,
essentially in¬ termediate Credit
Banks was con¬
adequate assets available to pay
cluded
Sept. 18 by Charles R.
interest
and
principal > due
on'
Dunn, New York fiscal agent for
bonds; elimination of requirement
the banks. The financing consisted
yfor notice ,to real estate owners of
$30,010,000 0.85% consolidated
Others
^unless directly affected through
assessments; clarification of the
atrial court's duty as to findings
to
be
made
in
bankrupt.
If the Gov¬
operation
plant, the losses would con¬
goes
were
tinue and
to assume
would
have to
ered out of taxation
—
a
be
cov¬
solution
hardly available in times of busi¬
contraction when public rev¬
enues decline.
And, as Mr. Fried¬
ness
further
man
points
is
slightly
reduced
better
the
out,
off
with
he
would be^on a dole, not only fi¬
nancially but also because in most
cases an
unemployed worker is
unhappy
an
man.
On the other hand, salaries and
constitute the bulk of
national income.
A
our
general price
under
municipal
bankruptcy
another
Mr.
amendment.
McCall
said,
was
the
possibility of 48
different bankruptcy laws if at
future
time
there
was
ILL.
to
prevent
some
CHICAGO,
ment is made of the
a
i; wave of municipal insolvencies.
name
to
Of
—
Announce-
change in the
Dempsey-Detmer & Co.
Dempsey
&
firm, which is
Company.
a
member
The
of
the
power,
namely,
pockets
of
in the
in
money
the
spending public,
unavoidably arouse
our people those
economic
insecurity
masses
of
around,
flexible
■
of
retrenchment
cause
prices
cause
—
so
all
—
far
altogether 'different matter,
of course,, is the adjustment of
war-time
wages
to
peace-time
conditions, which in the foregoing
and
below
plished.
tion
an
•Debt Data Available
Street.
to
I
assume
t
J.
the
Edwin
State
Larson, Treasurer ofr
Board
of
Administra¬
in
Branches
Cedar
Iowa.
are
La
Salle
maintained
Rapids ar.d Muscatine,
as
accom¬
Incidentally, this transi¬
peace-time
a
regime of
seems to offer
hours
So.
constant
consultation
committees
of
both
management and labor.
Fortunately,
els
for
things
more
It
cannot
be
emphasized too
strongly that much depends on
expert planning and execution of
the
It could, therefore,
altogether amaffair of the
civil service or, still less, of poli¬
program.
not be
ticians subject to machine control
and wages
excellent opportunity
for
our
industry to follow where Messrs.
Procter
more
&
the
committed to
or
prospects
a
are
high lev¬
following the
on
That will be
uses.
our
Gamble
than half
a
pioneered
century ago, by
instituting profit-sharing for their
fanciful
election
promises. Throughout the
try, business leaders with
ord
of
coun¬
a
rec¬
high ability and integrity
have
be
to
asked and
won
to
over
seriously pondered
opportunity to devise simple, in¬
expensive machinery for genuine
progress in business cycle control
for important decisions.
"at
have
the
source/' as
chiefly by means of
it
were
■—
:
(1)
the inventory
expenditure policies
and
of
capital
corpora¬
(2)
of the
ipal
the public works programs
Federal, State and munic¬
(3) improved diversification in
agriculture where there has been
unreasonable
certain
dependence on
staple crops like
weak
cotton;
(4) guidance
in
the
general
and
'
.
,
and
sav-
Where
taxation
policies
to
fit
inventories
be
kept
Thus the post-war boom can
be restrained
and
"prosperity
serves" established for
use
re¬
in later
the
for
best
is
us.
need
great
very
ex¬
reversing a downward trend,
enterprise
might
even
private
encouraged
to venture
fields at substantial risk.
new
Responsible
business
managers
be
cannot
expected to do so un¬
feel sure of a fair
deal, of conditions in which en¬
less they can
ahead confidently,
disagreeable sur¬
prises from the government side.
can
go
without fear of
avoidance
tuations
would
and
During the period of post-war
prosperity, certain public and pri¬
vate projects can be held up and
secured
there
have to be
The
credit manipula¬
prosperity and depression.
merchandise
be
terprise
of
consumption
consumer
to
possible results, as pre-war
perience
may "have
taught
into
authorities;
tion
Beyond mere advice, the active
cooperation
of
business
would
for
tions;
low.
as
to decline
An
main
135
in
who
the
would almost
^Florida Road And Bridge
at
the
administration
expert
ing;
(5)
Chicago Stock Exchange, has its
office
with
public
,,
This,
keeps
decline would be aggravated by a
•
;
able
widespread downward movement
of wages. : Such contraction of the
most active
type - of purchasing
,
on
need
.
and?
an
'
laws
will
leadership and support of an un¬
prejudiced, impartially friendly
a
than
wage
further, and
used to retire $44,025,000 of de¬ so on. We should, therefore, not
Utation of the court's
authority bentures due Oct.
2, 1944. "As of rely too much on wage rate flex¬
,to appoint special masters and
Oct. 2, 1944, the total amount of ibility, necessary though it is to
also limitation of court's
responsi-1 debentures
have this
means
of adjustment
outstanding will be
ability for detecting potential fraud
available for isolated cases here
$271,700,000.
in proposed debt settlement
;
,
V:
plans.
and there, say for conditions in¬
The Federal statute would be
volving part of an industry or one
Now Dempsey & Co.
factory.
!; made
to supersede all State
;•
cooperation
makes
elsewhere.
peace-time
nally,
ernment
which
par.
Such
which
difficult
would
fears
at
man¬
loyal support. Their advice should
debentures dated Oct. 2, 1944, due
proceedings for with cash funds of
$14,015,000, will
municipal debt compositions; limbe
of the
countries
be
loses his working capital and, fi¬
July 2, 1945.
The issue was placed
The proceeds, together-
ance
cooperation
over
few years
of the European war and the
reconversion of our economy to
wages
not
hearted
agement and workers of industry,
agriculture
and
the
transports.
area
end
worker
The
through the good will and whole¬
maintained, the better for all the
comprised in it, because
depression areas radiate disturb¬
the
that business will be
re¬
capitulations,
following
very
closely the style and arrangement
of prior reports, and containing
Only by sharp vigilance can the
equilibrium' be
maintained,
wider
which moderate prosperity can be
facturer has to close his plant and
dismiss his workers, or else he
of the
Consolidated,. statistical
tories.
points out, if the cost
of a product exceeds the price at
which it can be sold, the manu¬
sub-
as
consider wage rate flex¬
us
and ibility, for instance; The need for
it can hardly be disputed. As Mr.
of all securities pur¬
Kapne^:
relate
Other amendments would
<
hand,
on
with
amount
they had gen¬
erally opposed.
j
Schedule
that would strike
law
of
currently
Let
67 counties for each year.
the
present provision that the
Mr.
versal
u
the
as
Friedman
road
indebtedness
under
*
well
revenue money. In short, we must be cir¬
sinking fund cumspect.
sinking funds.
chased
.
services
and
as
itemized list of investments Of the
have
McCall said.
goods
have to be watched
principal source of
bankruptcy act presented to Con¬
gress by this group during the last
six
years
that it has operated
invariably been adopted, Mr.
from
of each bond issue.
Previous proposals
for amendments to the municipal
received
amounts
the
control
outstanding.
specialist, Jonesboro, Ark.; David
M.
Wood,
municipal
attorney,
The
needs per unit of output; forever
tends
to
disturb
that
balance.
in
•
be
of
freat
a
violent
business
fluc¬
activity
boon
to
labor
might induce them to enforce
strict
discipline
ranks.
within
their
Being the group likely to
benefit
most
operation
from.
successful
of the
arrangements to
stabilize business, they would for
their
own
if
were
it
sake have
wrecked
to
regret it,
through
ill-
when the problem may be
reversed, namely,, to .check a sub¬
sequent downward movement.
considered action on their part
and the experiment should end in
that most deplorable of failures
•Careful, planning is required,
equally careful dosing in ex¬
ecution. The planning would in¬
clude the preparation of complete,
well analyzed lists of
where
years
and
is
and
municipal
requirements to arise
within
three
The
sion
and
a
or
certain
period,
say,
five years ahead;
replacement and
requirements
ocean
of
-
expan¬
v
.
*
move
insuf¬
the
v.
v:
JOSEPH OBERGFELL,
General President and Secretiry-
Treasurer,
of
International
Brewerv,
and
Flour,
Union
Cereal,
Soft Drink Workers of
American, Cincinnati.
Mr. Friedman's article
Fairly well matured develooment projects such as
canals,
roads, pipelines, slum^clearance,
-•river regulation, power projects,
reforestation, etc.
promising
through
ficiency of those concerned with
railroads
shipping;
sound,
its execution.
Government
building
a
discredited
war
and
employment,
profits offers
startling
theories,
deeper, study
on
post¬
flexible
some
and
before
I
new
costs
and
merits
can
a
say
1261
THE
^Volume 160
Number 4318 j
whether or not
I agree with it
'.V '
general.
-
>;/• V
r'
-
in
"
thoughts on the sub¬
maintaining a steady eco¬
nomic
balance for the worker
based on equitable returns for the
employer incline toward a guar¬
My own
ject of
COMMERCIAL &
Commonwealth Edison Co. calling
for the sale of a total of $155,000,000
of new' mortgage bonds to
OUR
advices received from Gordon Jones of Gordon
Toronto, there is a movement on foot in Toronto
to form a new Stock Exchange to be known as The International
Stock Exchange.
It is proposed to deal mainly in Canadian mining
According
Only slightly
smaller in pro¬
portions is the refunding oper¬
ation projected by the Philadel¬
straight business
to
Jones & Company,
subsidiary.
point
of view, the investment banking
RENO ODLIN,
fraternity is in a cheerful mood
President, The Puget Sound Na¬ these days, encouraged by the
tional Bank, Tacoma, Wash.
splendid performance of the mar¬
I have read with much interest ket in the test it has undergone
during the last fortnight.
the
article
a
'
Mining Shares Exchange
Being Launched En Toronto
for
REPORT
From
New Canadian
provide the bulk of funds needed
retirement
of
outstanding
bonds of that company' and its
REPORTER'S
anteed annual wage.
FINANCIAL CHRONICLE
phia Electric Co. which
registered for a new
shares.
•:
■■■
"United States
recently
issue of
v: ':■'}■'(
.
"for a great many
investors," Mr. Jones reports,
and sold Can-^
adian mining securities but the
Newman,
$130,000,000.
promoters behind the new Ex¬
Among the other potentials are
change feel that by adopting cer¬
& Hollander
?
Chicago, Burlington & Quincy's
tain policies this trend could not
All told, an aggregate of ap¬
by Elisha M.
$40,000,000 V refunders; Arkansas
The New York Stock Exchange
only be increased but likewise
Power
& Light's $30,000,000;
Fr i e d m a n
a
proximately $250,000,000 of new
could be made more attractive for firm of Newman, Baum, Rand &
called
"Postsimilar program slated by Ohio
securities have been brought on
United
States brokers and
the Hollander will be formed on Oct.
War Employ¬
Edison and Western Union's $24,the market in the interval with
public. Under present conditions, 2 with offices at 120 Broadway,
underwriters and
dealers re¬
ment,
Flex¬
603,000 of new debentures which
the Toronto Stock Exchange more New York City. Partners will be
are now destined for the auction
ible Costs and
porting a remarkably good in-,
Charles
M.
Newman,
formerly
or less has a monopoly and they
Profits" which
block.
vestment demand.
>
refuse to give any part of com¬ with Newborg & Co.; Abbott L.
appeared
in
A late addition to the
list
In some instances there are un¬
missions to an outside broker with Baum, previously with Ira Haupt
the August 1,0
would put Pacific Gas & Elec¬
sold portions still to be distrib¬
the result that frequently the pub¬ & Co.; Alvin L. Hollander, in the
"Chronicle."
tric Co. well up on the roster ,
uted but, by and large, the bulk
lic has to pay double brokerage. past with Leopold Spingarn & Co.;
It
was
an
from a standpoint of size, since
of the new material has been
This, we feel, is detrimental not William Rand, member of the Ex¬
extremely in¬
this company is reported plan¬
moving out in a manner which not
only to the industry but also to change, heretofore active as an
teresting
and
ning for a refinancing program
only pleases the investment dis¬
the
public. The new Exchange individual, and James M. C. New¬
s t i m u lating
which would run to approxi¬
; /" tributing industry but makes it
would
encourage United
States man.
article which
mately $115,000,000.
hopeful of ability to complete a
brokers to become members and
I have passed
goodly portion of the large calen¬
receive the full commission. At
to
several of
Easing Up on Small Issues
dar which
is ahead before the
the same time it is proposed to
my
friends,
The
One
of the most encouraging
Treasury enters upon its Sixth
have a lower scale of commissions
knowing it
moves
in the direction of assur¬
War Loan Drive.
Reno P. Odlin
than the Toronto Stock Exchange
would interest
ing small industry of necessary
There are still bonds to be
which should be another induce¬
them.
capital in the post-war period de¬
had in the Great Northern set¬
ment to encourage the public to
Control of Germany and Japan,
veloped this week when Senator
up, namely, the 3%s of 1970 and
trade more.
H. C. MATZKE,
The
Harold G.-Moulton and
Vandenberg (Rep., Mich.) offered
the
3i/2s of 1980 and Empire
"Without going into too much Louis Marlio—The Brookings In¬
a bill designed to modify the pro¬
President, The City National Bank
District Electric ^As are around
vision of the Securities and Ex¬ detail, I have tried to give you the stitution, Washington 6, D. C.—
of Duluth, Minnesota.
while Oregon and Washington
highlights here, and in using the cloth—$2.00.
change Act.
Railroad and Navigation bonds
I read with a great deal of in¬
Under his proposal new issues word promoter I did not wish to
terest the article written by Elisha
could be had.
It was the con¬
Economic Almanac for 1944-45
up to $300,000 would be exempt give the impression that there is
M. Friedman entitled "Post-War
sensus, however, that judging by
from the registration provisions of any one group promoting it. That —The National Industrial Confer¬
the steady absorption indicated
Employment, Flexible Costs and
Park* Avenue,
the act which now require the is one of the things it is proposed ence Board, 247
for such issues, the. cleaning-up
Profits." I thoroughly agree with
registration of all issues above to avoid. There is no one who will New York 17, N. Y.—cloth—$5.00.
the conclusions of Mr. Friedman.
process would not require any
receive
any
promotion cut or
$100,000.
great amount of time.
The proposal
is in line with favours, the idea being that the
Europe's Uprooted People, The
W. A. FAIRBURN,
Meanwhile it was indicated that
seats should be sold at a minimum
suggestions recently made by GanRelocation of Displaced Popula¬
President, The Diamond Match recent omissions, such as Missis¬ son Purcell, Chairman of the Se¬ of expense and made as attractive
tion—National Planning Associa¬
sippi Power & Light 3%s, the curities and Exchange Commis¬ as possible for those joining."
Company, New York
tion, 800 21st Street, N. W., Wash¬
Armours, Chicago Union Station sion.
He urged that should such
I have read Mr. Friedman's re¬
ington 6, D. C.—paper—25c.
27/g§ and the Northern Indiana relaxation be considered by Con¬
cent article with a great deal of
Bright Possibilities
Public Service Co.'s 5% preferred
interest and find it most excel¬
Inflation And The Post-Wargress that it do so by raising the
Giant
Portland Cement is a
had been well placed with those
exemption rather than "by relax¬
No. 10 in a series on Post-War Re¬
lent, courageous, and productive
issues
ruling at their offering
low-priced stock in an industry
of thought in the right direction.
ing the disclosure requirements
adjustments — Chamber of Com¬
with a bright future and offers in¬
prices or at slight premiums.
merce
of
the
United States—
generally."
teresting
possibilities, according
Washington, D. C.—paper—5c.
Brooklyn Union Gas
to a circular prepared by Lerner
WILLIAM A. ROBERTSON,
Montgomery Scott Partner & Co., 10 Post Office Square,
Brooklyn Union Gas Co.'s refi¬
National Board of Fire Under¬
PHILADELPHIA, PA. —Mont¬
nancing program went through in
Boston, Mass.
Copies of this cir¬ Paine & O'Connor With
writers, New York
a
manner
destined to stimulate gomery, Scott & Co., 123 South
cular may be,had from Lerner &
Mr. Friedman's fine article is
Cohu & Torrey In Fla.
Street,
members of the
interest of bankers in other utility Broad
above praise. It comes at a time
Co. upon request and; also a cir¬
MIAMI, FLA.—Leon. A. Paine,
issues which are on the future New York and Philadelphia Stock
when
such
teaching is badly
cular on Riversi<y Cement xlass A
books.
Jr., and Bernard Francis O'Con¬
Exchanges and other leading Ex¬
needed, and it speaks the truth
which the firm believes is an out¬ nor have become associated with
Demand for the $30,000,000 of
changes, will admit Herman K.
p 1 a i n 1 y and
new 3lA% first mortgage bonds
standing cemerit stock 1 With a •••■/ ' ••-;••••
div- Cohu & Torrey, Alfred I. du Pont
if. ii
t
/•;
forcibly. I am
Grange to partnership in the firm
Building.
VJ
was
of such proportions that
*dend arrearage.
....•... ;
■
in
accord
as of Oct. 1.
bankers reportedly found it necwith its teach¬
cessary to scale down on allot¬
years
have bought
Baunt, Rand
To Open
r
Business
Mail's Bookshelf
—
0
'
.
.
through¬
ing
ments.
The no¬
out.
Meanwhile it was
by
some
clever
a r r angement
on the part of
that
tion
ment,
kept
Ahead
Between now and the time for
the next War Loan Drive, and
provided
nothing happens to
change the picture, it is now in¬
dicated that something well in ex¬
cess of a half billion
of new se¬
curities could reach market.
Largest undertaking on the for¬
ward list, of course, is that of the
Huge
be
employed
ntinuously,
at some agree¬
able and
prof¬
line of
industry or
activity, is one
itable
•'
,
of
those
false
debentures
This
advertisement is not, and
Bonds for
without important
is under no
sale or as a
The
circumstances to be
construed as, an offering of these
solicitation of an offer to buy any of such
only by the Offering Circular,
r
A.
Wm.
NEW ISSUE
'H*
Oregon-Washington
$54,750,000
Robertson
in behalf
his views
could be spread as widely as pos¬
sible throughout the land.
In my judgment there are no
substitutes for hard work,, con¬
stant forethought, vigilant scru¬
constantly advanced
the notion. I wish
conditions and
changing forces and
currents in the world of com¬
merce and business. It is the ex¬
ercise of such qualities that make
some
men so successful in life,
while so many others fall by the
wayside because, they will not
tiny
of
business
especially of
President,
3% Bonds, Series
use
of their own
brains.
to think. I can not help
remembering a story of the great
They hate
who
and
and who gave in-
English artist, Mr. Opie,
flourished about a hundred
fifty years ago,
dated October 1,
102%% AND ACCRUED
PRICE
Copies of the
will be
'
helpful.
GEORGE M.
J
CRAIG,
President, Merchants
Bank, Port
National
Arthur, Texas
"Post-War Employ¬
ment, Flexible Costs and Profits"
by Elisha M. Friedman is very
much to the point, but the trouble
is that the people who need to
The article,
read it most will never see
read it.
it or
October 1,
1960
1944
INTEREST
describing these Bonds and giving information
State from only such dealers participating
under the securities law of such State.
Circular dated September 18, 1944,
may be obtained in any
as may legally offer these Bonds
regarding the Company
in this issue
Kuhn, Loeb &
article on
^
make
To be
Beech-Nut Packing
New York
"Post-War Emoloyment,
Flexible
Costs and
Profits" is interesting but only
common sense.
I do think, how¬
ever, that the clear presentation
A
To be due
Company,
The
:
-,
Railroad & Navigation Company
Refunding Mortgage
i-.
struction,
as
well as actually
will-ofthe-wisps, wandering fires that painting pictures himself. One day
ovehang
bogs and marshes of a young student came to him and
thought,; which
are
numerous said, "Pray, Mr. Opie, how do you
The great
enough at all times, but especially mix these colors?"
so in
times of great disturbance painter is said to have made this
and unrest.
Mr. Friedman has famous reply: "With brains, sir."
punctured more effectually than
I can, the arguments which are
;
' W. C. ARKELL,
of
:A?.
1
Job Still
lights,
so
Bonds,
offering is made
delay.
every
can
one
indicated that
$12,000,000 of 4%
would clean up
Govern¬
the
c o
the
A. G. Becker
Blyth & Co., Inc.
& Co.
Incorporated
Co.
^The First Boston Corporation
1
Kidder, Peabody & Co.
Lazard Freres & Co.
Lee Higginson Corporation Salomon Bros. & Hutzler
Shields & Company Stone & Webster and Blodget Union Securities Corporation
Glore, Forgan &
Co.
;
Goldman, Sachs & Co. :
Incorporated
White, Weld &
New
York, September 19,
1944.
Co.
%
1262
THE COMMERCIAL & FINANCIAL CHRONICLE
—
gave rise
Some Aspects Of American
the
The
in the world
create
to
decent po¬
a
consider
proach.
will
litical and economic environment
plied, of
in
of
which
the
of
arts
peace
can
flourish.
all
alternative
course, to the
the
other
As
I
Woods, New Hampshire,
during July, we witnessed an ef¬
for
fort to find
solution for certain
ment
international financial problems—
those
concerned
with
currency
etary
a
plan
has
for
the
and
Develop¬
to proposals for mon¬
stabilization. In both the
White and Keynes
plans, state¬
long-term for¬ ments were made that an invest¬
eign investment. Important though ment institution
would
be
re¬
these problems are, they logically
quired to provide credit for longstabilization
and
second
come
in
point of time to
a political and
other questions of
economic
character
the world.
Such
which
beset
other questions
include the political reconstruc¬
;
tion
of
the
nations
which
have
vfeeen occupied by the Axis pow¬
ers, the redrawing of the maps of
term
economic
development.
It
November 24, 1943
that the United States
Treasury
released the
preliminary draft of
not
was
its
until
proposals
tution.
for
such
insti¬
an
British experts issued
comparable plan.
no
The American
delegation to the Bretton Woods
was given no freedom
to develop
independently a plan
Europe and Asia, the resettlement
of populations, and the establish¬
conference
ment
for
of
tional
form
some
political
preserve peace.
these problems
of
interna¬
organization
to
Closely allied to
are
such basic
nomic questions as trade
eco¬
barriers,
the reconversion of
industry from
war
to peace, a reasonably full
utilization of the labor supply by
peace-time production, and the
adoption of sound domestic mone¬
tary, credit and fiscal policies.
Less urgent in their claim upon
our consideration are
problems of
international currency stabiliza¬
tion and
The
met
Bretton
Woods
'
conference
the initiative of the
States and, in extending
upon
United
the
foreign investment.,
invitation, President Roosevelt
made
it
clear
that
proposals
adopted by the conference would
be binding either
morally or
legally on the governments repre¬
not
sented.
Any agreement reached
would have to be referred to the
governments
of
the
powers for
Prior
adoption
or
signatory
rejection.
to
the convening of the
conference, the problem of inter¬
national currency stabilization—
I
the
concern
Monetary
much
of
the
Fund
—
International
had " received
consideration
than
that of international investment—
more
the concern of the
International
Bank for Reconstruction and De¬
velopment.
Active discussion of
monetary questions was initiated
early- in April,
1943 with the
simultaneous release of two draft
plans by British and1 American
experts, commonly termed the
Keynes and White plans.
/ Through the latter half of 1943
and the first half of 1944
the sta¬
bilization proposals of the Treas¬
experts were widely discussed
ury
and
subjected
cism
and
to
searching criti¬
analysis.
Innumerable
articles
investment
an
the
of
case
the
bank.
Fund,
to
governed by the principles
agreed upon by the American
Technical Committee.
Monetary Fund
The stated
purposes, of the
Monetary Fund, which
engaged primarily in the
is to be
purchase
reveal
and
that
sale
of
delegated to it that
yond
not
only with the duty of pro¬
moting
international
monetary
cooperation and exchange stabil¬
but ulso with the duty of
ity,
facilitating the expansion and
balanced growth of international
trade, and, of contributing thereby
to the, promotion and
mainten¬
of
real
high levels of employment
income
and
•
of
an,
Fund
International
Monetary
was
given endorsement
by
representatives of certain of the
United and. Associated
Nations.
Although in structure the Joint
Statement resembled the White
more
than the Keynes
plan, in
actual
substance
it
showed close
affinity to the British nroposal.
Prior to the
meeting at Bretton
Woods, the American delegates to
the conference
were instructed
by
President to adhere to the
Joint Statement in
formulating
definite proposals for an interna¬
the
to
the
de¬
velopment ' of the j productive
sources
re¬
of; all member nations. In
these
respects the powers of the
Fund seem to be indirect and of
doubtful economic
validity.
The
Fund is also
charged with the
duty of helping to correct mal¬
of
A few of the local
tional balance of payments.
The objectives of the Fund lack
the focus essential to its
success.
The
it
objectives
are
broad
so
arid
all-inclusive that the Fund, if
so
were
established, would prob¬
ably become enmeshed in its own
contradictions of policy.
For ex¬
ample, are the credit operations
to be short- or
long-term in char¬
acter?
poses
Are they to be for
pur¬
of currency stabilization or
economic
to be of
development?
a
the
Are they
commercial Or
diverse
is
to
in¬
an
accom¬
set
purposes
forth in the
monetary agreement,
is to have assets that will
consist
in small part of
gold and in large
part of non-negotiable, non-in¬
terest bearing demand
obligations
and currencies of member
nations.
These assets are to be
supplied by
each member nation in
an
amount
equal to its quota, which varies
from $500,000 in the case of Li¬
beria and Panama to
000
in
States.
$2,750,000,-
the
case
of
Total quotas
the
United
come
to
800,000,000.
As
a
$8,-
practical matter, it should
be noted that the size
of the quo¬
tas is not so much a
measure of
each nation's
contribution to the
Fund
the
was
as a measure
Fund's
of its
benefits.
fully recognized
debates
at
Bretton
access
This
to
point
during the
Woods
and
Fund
cision
either
may
within
72
tional
changes
Fund is given
The
concur
or
render its de¬
hours.
If
addi¬
In
access
on
poor
automatic
an
good
curren¬
currencies.
poor
Experts' Proposals, Lord Keynes
that "it is the
duty of the
j Fund to alter the gold value of
holdings of the Fund
plus its holdings of those curren¬
cies
likely to be in greatest de¬
will, it is estimated, ap¬
mand
proximate $4,000,000,000.
Of this
the United States will
amount,
relative
lendable
contribution
assets
than
more
of
the
twice
contribution
sets
to
to
Fund
will
large
as
the
the
total
as
as¬
all
credit
purposes,
transactions
to
are
practical
of
the
the
Fund
take
place on a purely
basis.
Credit transac¬
occur
when
nation
a
offers
its currency in return for another
in
currency
member will
each year
tions
greater
demand.
A
normally be allowed
to sell its
own
obliga¬
or
that
exchange de¬
preciation would undoubtedly be¬
an
accepted and
normal
procedure in international finan¬
cial affairs. Nations could
exchange depreciation
stitute
for
for
and
•
The
financial
contribution
of
this country to the Fund will con¬
sist not only of our quota of
$2,750,000,000 but also of any addi¬
tional
advances
that
we
may
internal
employ
as
sub¬
a
fiscal
adjustments of
prices. Proposals for ex¬
change depreciation from one na¬
at
the
present
This will
depend
upon
the
demand
American dollars, which it is
for
gen¬
erally assumed will be heavy and
which, in the course of time,
may
exhaust
our
quota contribution
require the supplying of ad¬
ditional American
currency to the
and
Fund.
-
.
/>
If the demand for
dollars proves
sufficiently strong, the Fund wilji
eventually be confronted with the
necessity of invoking Article VIJ
of the agreement and of
declaring
the dollar a scarce
currency. Now
this section has
particular
perti¬
the United States,
for.,
London "Economist" de¬
clared, the term "scarce currency"
to
nence
the
as
must be taken to
mean the Amer^
ican dollar since "there is no
cur¬
rency in the world where the risk
of scarcity is so
great." If the dol¬
lar is declared a scarce
member nations
currency,
permitted to
are
impose general exchange restric¬
tions
reform
internal
cannot
moment be determined.
conr-
dollar
on
referring
to
transactions.
somewhat
a
In
similar
costs and
provision
tion
posals, Lord Keynes declared, in
effect, that this action would re¬
tion
would be quickly followed
by similar proposals from others.
proposals could be made in
the
of the Fund.
For
liberal
so
current
on
be nullified.
All
supply about 70%. In other words,
our
Kingdom.
The provisions of the
plan per¬
mitting changes in exchange rates
are
ac¬
controls
tribution
stated
come
The gold
change
count may
make. Our ultimate financial
the
House
of
similar provisions in the
ex¬
any
ex¬
a
requested, the
longer period in
addressing
on
continued,
are
are
which to state its attitude. Should
Fund not
concur, is it likely
that
a
sovereign power would
continue its
membership?
Lords
they
effort towards the removal of
re¬
the
uni¬
of
name
disequilibrium to
which the Fund and the member
nations
would
doubtless
give
an
elastic definition.
Proposals for
ciation
the
would
plan
rather
exchange
be
attacks
than
the
the
since
symptoms
basic
causes
exchange instability. True
change stability presupposes
absence
of
internal
of
ex¬
the
inflation
and
the^.*Experts'
countries
from
the
Pro¬
obliga¬
of taking American
exports
if taken, of paying for them.
The economic sanctions are of
such a character that Lord
Keynes
doubted whether any nation would
or,
.
permit them to be put into effect;
He concluded that a creditor na¬
depre¬
inevitable
lease
in
tion
the
on
"imperative grounds
self-interest" would al-±
of its
own
ways
find
account."
"a
way
To
to
avoid
the
square
to
recourse
these provisions the United
States,
currency to the Fund in
an amount not
exceeding 25% of
the
its
do
tive forces: Budgets must be bal¬
loans to the
by year until the Fund's
of its currency equal
anced, commercial banking sys¬
tems divorced from deficit financ¬
might tend towards domestic in¬
flation. This result, .Lord
ing, floating
implied,
quota
so
year
holdings
200%
and
to
continue to
of
its quota.
Sales are to
be consistent with the
objectives
of the plan, but these are so
broad
that few transactions would
to be excluded.
seem
essential feature of the
proposals
of the
without reference
to
the
ternal
existence
of
freely
competi¬
debts refunded, in¬
terest rates unpegged, and- price
and rationing controls removed.
Then and only then can exchange
rates
Automatic borrowing provisions
have from the
beginning been an
Treasury experts.
In the
Bretton Woods
proposal, as in
former versions of the
plan, the
adjustments and of shortening the
exchange of one currency for an¬
duration and
lessening the degree other is to be permitted on an
of disequilibrium in the
interna¬ automatic basis
plish
Commission
of
the
American
Bankers Association.
About a year after the
publica¬
tion of the
original White and
Keynes plans, a Joint Statement
by Experts on the
Establishment
be¬
be
cies, the good currencies may be
pulled down to the level of the
tions
reach far
not
relatively
automatic
been
problem of currency
stabilization. The Fund is charged
and
to
currencies,
the
ance
currencies
basis
have
functions
will
manner
objection.
no
object, but it must
press, and
relatively
In¬
ternational
the
lacks the
course,
and, to the
tent that
Fund
vertible into gold, at least for for- '
any currency if it is shown that
eign transactions.
The majority this
will be serviceable to
equili¬
will probably not be convertible
brium." He added that these
prointo gold, and some may not even
Visions made the plan the exact
be convertible into goods because
opposite of the gold standard and
of the controls over
export trade confirmed and
approved the de¬
which will persist in many mem¬
thronement of gold as the fixed
ber nations. Inasmuch as the Fund
standard of value in the United
gives nations with
our
The International
total,
currencies,
including, we hope,
the American dollar, may be con-
be
II
issued
approach, was
Economic Policy
re¬
be
vestment character?
The Fund, which
the
they
in
ceived instructions that
they were
appeared
in
scientific
journals and in the daily
press. A
carefully prepared brochure on
the subject,
giving emphasis to
the "key-nation"
by
As
the
probability consist of
form quality.
given to the
International Bank
than
of
the
Obviously the assets created in
con¬
been
Reconstruction
all
of
assets
the
currency,
change must be granted
forthwith. If the proposed
change
does not exceed a further
10%,
tries.
repre¬
indicated, less
the
of
a
raise
may
the second, by
the simple expedient of book en¬
this
have
sideration
Bretton
in
printing
ap¬
sented at this conference.
At the United Nations Monetary
and Financial Conference held at
bulk
of
quested
If the member country so
decided,
the first could be created by the
delegations
nations
value
the
ap¬
situation
same
Fund's
becomes
Fund, of
to effect the removal of
trade controls. These
may be conr
tinued indefinitely
power
a
proposed change, inclusive
of all previous
changes, does not
exceed
10%
of the
initial par
obligations of member gov¬
ernments and of deposits with the
central banks of member nations.
the problem and
an
The
the
use
position
Fund, perhaps 80%
they did not fundamentally alter
participate in the difficult the proposals. Thus from the out¬
task of world reconstruction, but set the American
delegation was
we must bring to this task a lead¬
committed to a particular mone¬
ership
commensurate
with
our
tary plan and was not free to
novo on
to
our
If
mainly that of a contributor, and
by far the largest contributor.
only
work de
least need
The
change.
}
larger
resources,
tional monetary fund.
Modifica¬
tions were to be permitted only if
material power.
Our best efforts
will be called for in helping to
the member nation to request the
competing to oband
larger quotas.
Since the United States will have
(Continued from first page)
from which Great Britain has suf¬
fered so heavily.
We must not
to the unedifying spec-
tacle of nations
tain
Foreign Economic Policy
large part of Europe and Asia and
Thursday, September 21, 1944
»
reflect basic
true
exchange
conditions and
stability
achieved. If these
be
measures are
not
taken, a spurious exchange stabil¬
ity may exist, which for its main¬
tenance will require recurrent re¬
to the Fund
course
or
trade controls not less
those
enforced
in
reliance
severe
Nazi
on
than
Germany
prior to the outbreak of
war.
credit
worthiness, the in¬
Another stated objective of the
budgetary situation, or the monetary plan is to
bring about
monetary or financial position of
the applicant nation.
There is no
assurance
that
the
currency
the removal of exchange controls
current account.
on
ac¬
this
quired will be used
intelligently,
productively, or in such a way
that foreign
exchange will be pro¬
will
vided for repayment.
One of the stated
purposes
the International
of
Monetary Fund
stability.
objective and
which must
eventually be at¬
tained if international trade is to
one
be
given greatest encouragement
and if international
capital moveents
are
emphasis
to be promoted.
Despite
particular
this
on
is,
doubtful whether
be
able
to
Laudable
it is
the Fund
succeed
itself
in
this
By the provisions of the
exchange controls on cur¬
rent
account
are
permitted
through the transitional period, a
purpose.
term
which
fined.
that
is
not
The plan
a
precisely de¬
simply requires
member nation consult with
the Fund, beginning the fifth year
following its organization, con¬
cerning the retention of such re¬
strictions, In exceptional circum¬
objective, however, the plan in¬
stances the Fund may make rep¬
resentations that conditions are
cludes liberal provisions for alter¬
favorable
ations in
sequence,
to
their
removal.
In
exchange rates. In con¬ making such representations, how¬
the Fund in all prob¬ ever, the Fund must give the
ability will become
a
mechanism
for
member nation the benefit of any
instability rather than for reasonable doubt.
stability.
Member nations ;;are
Not only are nations permitted
free to propose changes in the in¬ to maintain
exchange controls on
itial par value of their
if these are to correct
mental
must
a
"funda¬
disequilibrium."
They
consult
proposed
may
the
raise
social
with
the
Fund
on
changes, but the Fund
no
or
objection based
on
political policies of
th§ member nation,
such policies
may
the
currencies,
even
though
have provoked
current account
through the tran¬
period, but they are also
permitted to impose restrictions
sitional
on
current account which did not
previously exist, provided that a
particular currency is declared
"scarce."
Moreover, member na¬
tions
permanently maintain
controls
on
capital
transactions, which are often not
easily distinguishable from curmay
exchange
disequilibrium which induced rent
transactions.
is
Keynes
undesirable, ap¬
not
parently because credit expansion
and
inflation
in
creditor
nations
prevent
deflation in debtor na¬
Just why inflation in credi¬
tions.
tor nations is preferable to
defla¬
tion in debtor nations has never
been made clear.
One cannot study the Bretton
proposal for an Interna¬
Woods
tional
Monetary Fund without
coming to the conclusion that
many of its provisions and pur¬
poses are basically
contradictory.
The Fund
jectives
between the ob¬
wavers
of
currency stabilization
and economic
development. Em¬
phasis
is
given
as
extremely
plan,
is to promote
exchange
This is a laudable
the
objective
therefore, might hasten to extend
Fund, an action which
to
the
need
currency
stabilization,
depreciation is
rency
yet
made
easy and normal process.
for
cur¬
an
In Eng¬
land
the proposal is termed the
opposite of the gold standard; in
States, a further appli¬
the United
cation of the gold standard. Credit
extensions by the Fund are to be
made
for
on
an
automatic
basis
and
great diversity of purposes.
In consequence, the Fund's
assets
a
may
eventually take the form of
term, non - self-liquidating
long
-
credit
will
grants.
have
Good
currencies
been
depleted in sup¬
port of the poor. I am convinced
that the plan in the course of time
will
supply another illustration of
the
operation of Gresham's Law,"
which,
as you
familiar
know, is simply the
rule
that
drives out good.
the
currencies
bad
money
But, in this
of
case,
all
the world
would be weakened, and the sta¬
bilization
attained through this
means
would
seek
the
lowest;
level.
Ill
The
International Bank for Re¬
construction and Development
According to a statement
Keynes, the idea of the
Lord
by
In¬
ternational Bank for Reconstruc¬
tion and Development
originated
in the United States
Treasury. As
1263
Volume
160
THE
Number 4318
CHRONICLE
many of
these essential imports
foundations of the liberty and
creation of credits, the counter¬
by utilizing the return on her for¬
scale are not
welfare of all peoples; to the elim¬
part of the creation of debts, will,
eign investments, or, if need be; ■„
required under present circum¬
ination of all forms of discrimina¬
in the absence of appropriate fis¬
by selling part of them. But those
stances and will be detrimental to
tory treatment in international
cal, credit and commercial poli¬
foreignr investments
are
now
debtor as well as to creditor na¬
commerce, and to the reduction of
laid on each objective at Bretton
cies in each member nation, solve
greatly reduced. Lend-Lease did
tions. Most df the capital for do¬
Woods in order to meet the dethose
complicated
international tariffs and mother trade barriers; not come into effect until Britain
mestic reconstruction and devel¬
sires
both
of those delegates
monetary problems that beset the and, in general, to the attainment had already been serving as the
opment should come from local
of all the economic objectives set
whose countries had been devas¬
world.- ; Their technical provisions
bastion of democracy through a
sources.
Local labor and local
forth in the Joint Declaration (the
are
needlessly complex, a defect
tated by the enemy and those
period of about a year and a half.
materials should be relied upon to
Atlantic Charter) made on Aug.
•whose countries had not been in¬
which stems in part from , the
During that time she spent a very
the greatest;. possible
extent in
14, 1941, by the President of the
fact that more fundamental prob¬
vaded.
large sum of money in this coun¬
rebuilding devastated areas and
United States of America and the
Once it has been organized, the
lems remain unsolved..
try, converting the resources of
in the industrialization of unde¬
The
all - important
economic Prime Minister of the United her citizens into dollars to support
Bank is permitted to make direct
veloped regions.
Foreign funds
Kingdom." r; Identical or similar
loans out of its own funds, to
problem of the post-war world is
her armies and her people.
If
should be used sparingly and only
Lend-Lease agreements have been
the removal of trade barriers. One
'make or to participate in direct
Lend-Lease had then been in ef¬
where their use will create for¬
of the general resolutions of the signed with practically all of the fect,
•loans from borrowed funds, and to
we
would have provided
United Nations.
'
■:
•;
eign exchange for the repayment
guarantee in whole or in part of the loan. If foreign funds are Bretton Woods conference gave
many of the things she was forced
The time has come to imple¬
recognition to the problem but
loans made by private investors.
to buy.
Without attempting to
used when local capital is avail¬
ment
the solemn commitments
detailed consideration, even if the
The limit placed on total loans
calculate the benefits she would
contained in the Atlantic Charter
able, a needlessly heavy burden
delegates had been so inclined,
and guarantees is 100% of unimhave thereby obtained, I propose
is placed on the debtor's balance
and in
the Lend-Lease Agree¬
was
precluded by the fact that
that in lieu of a retroactive appli¬
paired subscribed capital, reserves of
Unless tariffs are sub¬
payments. Capital accumula¬ the conference was called to for¬ ments.
and surplus. Apparently, it is con¬
cation of Lend-Lease, and as an
stantially reduced and other trade
tion, like currency stability, is mulate
plans for a Fund and
essential element in world eco¬
templated that the major part of
barriers eliminated now and un¬
largely a product of domestic Bank.
the Bank's operations will consist
nomic reconstruction, the United
less all nations are given equal
policy.
Prior to this war, international
States
in the guaranteeing of securities.
provide England with a
access to the trade and raw ma¬
Unless capital exports are kept
trade was hampered not only by
In its credit operations, the In¬
terials of the world, the economic grant-in-aid sufficiently large to
at a minimum and are limited to
various tariffs but also by arbi¬
establish
stability between the
ternational Bank for Reconstruc¬
basis for currency stabilization or
projects which produce foreign trary
import
quotas, regional
dollar and the pound.
The sum
tion and Development must re¬
international investment will not
exchange, debtor nations may re¬
needed may be a large one—but
quire that loans be guaranteed by sort to the International Monetary preferences, linked utilization ar¬ exist.
rangements, bilateral barter agree¬
the problem is large and we must
a member nation or by an accept¬
I suggest that the plans ad¬
Fund to meet interest and perhaps
ments, import monopolies, export
show courage in its solution.
It
able agency, must be convinced
vanced by the Bretton Woods con¬
even a portion of the amortizatibn
subsidies and arbitrary customs
should be borne in mind that my
that the funds cannot be obtained
ference should not be adopted by
payments due on foreign borrow¬ procedure. Unless the channels of
proposal rests upon the assump¬
at reasonable rates in the private
ings.
In this, event we may find international trade can be re¬ the United States. I propose in¬ tion that the trade conference has
investment market and must give
ourselves supplying dollars to the opened, currency stabilization and stead, that the United States, the
proved successful, that both Eng¬
due consideration to the ability
International. Monetary Fund in foreign investment will rest on an United Kingdom and other mem¬ land and the United States shun
of the borrower or guarantor to
bers of the British Commonwealth
order to enable borrowing nations ephemeral basis.
The
will
repay the loan.
Credits are to be to service their dollar debts to have been lulled into a worldsense of Nations enter into immediate totalitarian tactics in international
false
trade, and that both give full sup-* (
extended for specific purposes the International Bank for Re¬
conversations on such problems as
of security.
We shall have the
tariff barriers,
imperial prefer¬ port to the principles of economic
;and only after a competent com¬ construction and Development.
shadow of stability without the
liberalism.
mittee has rendered a favorable
ence, export subsidies, bulk pur¬
We shall eventually
A second question of a less gen¬ substance.
Once the dollar-pound rate is
report. If the safeguards inherent
chasing
and regional currency
realize that the solution of our
eral nature, concerns the relation¬
stabilized, attention can and
in these provisions were strictly
arrangements.
Our own delega¬
basic economic problems has be¬
should
be directed immediately
observed,
the
question arises ship of the proposed Bank to ex¬
tion to this conference should in¬
come
infinitely more difficult.
to the problem of stabilizing other
whether the subscribed capital of isting governmental institutions.
clude leaders of the majority and
Perhaps the most dangerous as¬
currencies.
The prerequisites for
the Bank
($9,100,000,000) might What, for example, is to be its
minority parties in Congress so
not be too large.
This same point relationship to the Export-Import pect of the Bretton Woods propos¬ that the decisions reached will be such stabilization are internal po¬
als is that they serve as an ob¬
litical
stability,
a
constructive
was
mentioned by the London Bank? The suggestion has been
assured of Congressional support.
stacle to the immediate consider¬
solution of the problem of trade
The success of such a confer¬
"Economist"
when it inquired made that the facilities of the
Bank with ex¬ ation and solution of these basic ence will depend in no small barriers, a reasonable measure of
whether there were many loans Export-Import
economic well-being and the ab¬
panded borrowing power, could problems.
measure upon the attitude of the
.',safe enough to meet these stand¬
In
two
important documents,
sence of inflation.
Once the po¬
still be employed.
If this new
United States.
We must be pre¬
ards and yet not safe enough to
litical and economic prerequisites
institution is established, is the the United Nations have solemnly
float in the private market.
pared to effect substantial reduc¬
Export-Import Bank
required? committed themselves to the im¬ tions in our tariff rates. We must are attained, the financial prob¬
The scope of the Bank's operaExactly
what function will it mediate removal of trade barriers. convince the world of our sincer¬ lem of currency stabilization be¬
tions will doubtless depend upon serve? And if both institutions The first was the Atlantic Charter
comes
relatively simple. Many
the interpretation given to the function, what will be the aggre¬ and the second, the Master Lend- ity of purpose. The quality of our nations possess sufficient assets in
leadership may easily determine
provisions which I have cited and, gate volume of foreign credits Lease Agreement. President Roose¬
the form of gold and dollar "or
whether the world will move to¬
in particular^, upon the definition which this nation may find itself velt and Prime Minister Church¬
sterling exchange to stabilize their
wards free enterprise or towards
of "reasonableness of charge" as extending either directly or in¬ ill agreed in the fourth article
currencies without external fi¬
collectivism. Never shall we have
of the Atlantic Charter that they
nancial aid—a fact which seems
applied to" interest rates prevail¬ directly?
a
better opportunity to reduce
ing in private capital markets.
to be widely overlooked.
Only a
A final question has to do with would endeavor "with due respect
trade barriers than in the period
The American proponents of the a fundamental point in interna¬ for their existing obligations, to
few nations will have to seek out¬
of transition from war to peace,
the
enjoyment by all
side financial assistance.
plan apparently are of the opin¬ tional policy, namely, whether in further
when the markets of the world,
Certain of the nations, which
ion that the facilities of the Bank the post-war
period the United States, great or small, victor or including our own, will be short
will have to borrow for purposes of
will be used, especially in the im¬ States Government should extend vanquished, of access, on equal
of goods, and the exportable prod¬
mediate post-war period.
Surely long-term dollar loans indirectly terms, to the trade and to the ucts of every country will be in currency stabilization, will prob¬
if Treasury experts were of the through an international bank, or raw materials of the world which
ably not be able to do so in the
great demand;
Under: such con¬
belief that the Bank would not be directly through one of its own are needed for their economic
private market. I suggest,: there¬
ditions tariff k-eduction&rshduld be
used
extensively, they
would agencies. This question is based prosperity". It is interesting to feasible, not only ^because protec¬ fore, that the Export-Import Bank
note that Sumner Welles in his
be
never have originated and given on the premise, which I accept,
given
increased borrowing
tion for domestic markets becomes
volume, "The Time for
that our Government will itself recent
powers, so that it will be in a
support to the proposal.
less necessary, but because pay¬
Decision", states that the wellThe International Bank for Re¬ be called upon to make a moder¬
ment for exports in the long run position to grant long-term sta¬
known reservation, "with due re¬
bilization loans of a meritorious
construction and Development has ate volume of foreign loans in ad¬
must be made in imports. Credits,
character. Along with these in¬
gard for their existing obliga¬
however generously given, must
particular pertinence to the dition to our contributions to the
tions", was inserted at the in¬
creased responsibilities, the Ex¬
United States. To the extent that United Nations Relief and Re¬
in the end be balanced in terms of
Ac¬ sistence of Mr. Churchill in order goods received or in losses taken. port-Import Bank in accordance
its facilities are used, both direct habilitation Administration.
to take care of "what was hoped
and guaranteed loans, certainly in cording to its advocates, the ad¬
If
the
proposed
conference with my earlier suggestion could
would be merely temporary im¬
be given the power to extend in¬
the beginning, will be extended vantage of an international in¬
proves successful, and it will if
pediments to the more far-reach¬
termediate and long-term recon¬
there is a readiness to make recip¬
mainly in the form of dollars. stitution is that risks are shared.
ing commitment originally envis¬
struction and development loans
While the approval of the Ameri¬ But it is difficult to see how this
rocal adjustments and to seek in¬
aged in that article". Mr. Welles
to foreign borrowers where funds
can
Executive Director must be advantage can exist inasmuch as
ternational solutions for interna¬
quotes Mr. Churchill as stating
for productive purposes cannot be
obtained before the Bank may the bulk of the free assets of the
that while he himself
opposed tional problems, then I propose obtained privately.
use the
dollars initially paid in, proposed Bank are provided in¬
that the United States go as far
itially by the United States and imperial preference and favored
Moreover,
once
the dollarbefore the Bank may make dollar
as
possible in making common
inasmuch as the majority of the the liberal trade principles of the
loans from funds borrowed in this
cause with Great Britain and the
pound rate has been stabilized,
latter half of the nineteenth cen¬
loans will be floated in this mar¬
British Commmonweath of Na¬ consideration could be given to
country and before the Bank may
tury,
"he was not empowered
ket.
V
tions in 'meeting their financial the desirability of organizing an
guarantee loans floated privately
constitutionally to enter into any
I am convinced that to the ex¬
needs arising from the war.
Fi¬ international institution, where
in this market, it is obvious that
commitments
of this character
refusal would be difficult.
Fail¬ tent our Government feels called without the consent of the other nancial assistance would thus fol¬ central bankers could meet regu¬
ure
to
grant such permission upon to extend foreign loans, members of the British Common¬ low the joint modification of trade larly to discuss monetary and
these should be granted through
barriers, both of which are essen¬ credit problems of mutual inter¬
would cramp, perhaps even sus¬
the Export-Import Bank, which wealth of Nations".
tial to the stabilization of the dol¬ est.
The initiative in the organi¬
pend, the Bank's operations and
The Master Lend-Lease Agree¬
has accumulated valuable experir
lar-pound rate and to the subse¬ zation of such an institution could
would, in addition, provoke bitter
ment signed by the Governments
ence in foreign credit operations.
quent stabilization of world cur- ■ be taken by our own Federal Re¬
international recrimination and
The loans extended should not be of the United States and the United
rencies.
serve
Banks.
Its capital stock,
dissension.
large and need not be large in Kingdom provided in Article VII,
There
are
many
questions
England's
post-war financial owned by central banks and paid
view of the size of dollar assets that in the final determination of
for entirely in gold, would not
which must be answered before
the benefits to be provided, "the situation is complicated by two
held by many .foreign nations.
this country can decide to become
problems, the one associated with have to exceed $500,000,000. This
terms and conditions thereof shall
IV
seem ? a
modest figure in
her balance of payments and the may
a stockholder
in the Bank. The
be such as not to burden com¬
other with the wartime accumula¬ terms of the Bretton Woods pro¬
merce between the two countries,
first concerns the general and yet
An Alternative Approach
We can posals, but if international trade
but to promote mutually advan¬ tion of blocked balances.
very fundamental question of the
In my opening remarks I sug¬
is
moving freely,
the amount
effect of a large volume of loans
tageous
economic relations be¬ assist in the solution of the first
gested that political and economic
problem; England plans to solve need be no larger than this to ac¬
granted
to foreign borrowers problems take precedence over tween them and the betterment
the second by direct negotiation complish the purpose of the insti¬
upon the international balance of those of an international financial of world-wide economic, relations.
tution.
International trade will
with the creditor nations, i) I?
payments. I raise this question character. International financial To that end, they shall include
England's difficulties in connec¬ move freely if the proposed trade
because the advocates of the plan
provisions for agreed action by
questions are extremely important
tion with her balance of payments conference with the United King¬
apparently are of the opinion that and must eventually be solved, but the United States of America and
will persist until she has been dom and the other members of
the
establishment of the Bank to attack them first may cause the United Kingdom, open to par¬
able to reconvert her industries the British Commonwealth of Na¬
will lead to large capital exports us to lose sight of the more basic ticipation by all other countries
to
re-establish connections tions/-proves successful and if
of like mind, directed to the ex¬ and
from the United States and that
problems.
n
with foreign - purchasers of her other
nations follow our joint
large capital exports are an in¬
pansion, by appropriate interna¬
The Bretton Woods proposals
-1
products.
In the meantime, she leadership.
dispensable means of maintaining are no substitute for the real job tional and domestic measures, of
will need foreign funds in order
The objectives of this new in¬
employment in this country and of economic reconstruction. They
production, employment, and the to import food and essential raw stitution would be simple and
implies, the purpose of the
Bank is to finance reconstruction
and development.
Emphasis was
its title
'
COMMERCIAL 8c FINANCIAL
exports on a large
;
;
.
'
'
'
.
„
of
the
reconstructing and developing
economic systems of other
nations.
My own
.
opinion is that
,
capital
are
unnecessarily
unrealistic in
implied/;assumption that the
unrealistic and
They are
complex.
their
exchange
goods,
and
which
consumption
are
of
the material
materials.
Before the war
would have been
Britain
able to pay for
(Continued on page
1264)
-
1264
THE COMMERCIAL & FINANCIAL CHRONICLE
Some
sibility
Aspects of
Dewey To Preseive Collective
Bargaining And Labor's Rights
American
Foreign
Economic Poiicy
term
to
It
would
seasonal
extend
stabilization
central
banks, serve as a gen¬
clearing house for central
banks, advise nations on mone¬
tary and credit problems, collect
j
and distribute pertinent statistics,
largely
further
world
reconstruction
If
must
stand¬
our
who
of collective
course
they
doomed
are
disappointment. We
back to anything,
lines,
not
to
not
are
not
leaf
to
debts
a
in
our
nations
other
which
in
can
conditions,
have
will
they
be
willing
in
their possession of
of the good
more
We
going to establish fair,
are
and
the objectives of
the
United
cannot
That
States
get
his
is
the
and
along without
claim
through
lips of his
own
nominee
for
Vice-President,
Mr.
Truman.
He
has chosen that
the issue of the
as
campaign. I accept the issue, and
I challenge it.
Let's find out what
prosperity
all
we
We know that
the
are
seek.
they will have their greatest
opportunity to build better and
ing defeat of the Japanese. If
stronger free labor unions.
helping to make
will
to
differ from
the gold content of the dollar. We
must be prepared to reintroduce
gold redemption.
We must un¬
to
block the dollar assets of foreign¬
as
ers
rapidly as political con¬
permit.
The dollar
siderations
must
be
free
of
all
foreign
ex¬
change controls. We must balance
federal budget and refinance
the
the
federal
out
these
establish
floating debt.
measures,
the
dollar
With¬
cannot
we
as
inter¬
an
national currency.
To promote well-being
abroad
as
well as at home, the United
States also has the responsibility
of achieving a reasonably high
level
national
of
income
and
of
avoiding the excesses of boom
and, in consequence, the dangers
of depression. The attainment of
a
high level of national income
will depend to a considerable ex¬
tent upon governmental policies
have
tunity
the
such
the
both
in
products and will not prove
a
dis¬
the
That is why the
and
communists
are/
change of administra¬
why
reason
to encourage
business, both large
and small, to create
jobs and op¬
portunity. We shall establish
ditions
only
which
will
possible
for
but
management
of
ment
to
it
not
join
hands
move¬
this
full
country in bringing
at high
employment
Those
who
home
come
from
and those who have
pro¬
for war—all our
people—
war
earned
a
future
with
jobs
for
all. Nothing less can be con¬
sidered victory at home to match
our
victory
build
must
and
abroad.
We
a
just and lasting
go
forward,
must
peace.
We
courageous
united people, determined to
good the limitless promise
make
of America.
V,*
•
Mr.
serve
substitute for the adoption of
appropriate
For
this
that
so
were
commercial
it
reason
much
is
time
policies.
energy
given to the Bretton Woods
proposals rather than to the main
of
economic
Currency
reconstruction.
manipulation
solve the basic economic
war-ridden
world,
will
not
problems
Once
a
solution of fundamental
problems
has been effected, the stabilization
currencies
and
Dewey
land, Oregon,
'
the
extension
of international loans will become
integral parts of the over-all pat¬
tern of world reconstruction.
speaking
on
at
Sept. 19:
Port¬
Governor Snell, fellow Ameri¬
cans:
/, ;
We
unfortunate
and
are
very
thankful to be with
tonight, to be able to be here,
and we thank you
very much for
your cordial
reception,
It is good to
you
friendship
come
in
your
person
for
the
people have shown
to me in the
past, and
it is grati¬
fying to have been welcomed so
cordially by your
friendly and
able
Governor, Earl
Snell.
It's
gratifying also to know
from him that
you will return to
the
United States
Senate
senior
must be
we
unity
and
among
strength
and
Is
people.
our
a
fourth term indispensable to that?
The plain fact is that for 12
straight
years
the
New
Deal
has
given this country a continuous
demonstration of quarreling, dis¬
and
disunity.
It
has
set
group against group, race against
race, and class against class. Un¬
der
this
and
labor
administration, business
have
been
set
against
each other and labor's own house
became divided.
to the
cease
sur¬
shrill, abusive tirades
of Mr. Ickes. We have heard Vice-
President
Wallace
nouncing
unspecified
recklessly de¬
Americans
fascists. We have been treated
daily to blow-by-blow accounts of
innumerable
New
Deal
relation¬
had
feuds
itself.
within
You
will
the
matter of
President
and
the Secretary of
Commerce in which they
publicly
called each other
"obstructionist"
and "liar."
"
**
the long series
of quarrels within
the War Pro¬
duction Board—quarrels we now
know
to
your
Senator, Guy Cordon, and
was
have been
promoted by
the New
Dealers who have at
length succeeded in taking it over.
This running feud
recently cul¬
minated
in
the
resignation
of
top officials of the WPB,
while the head of the board
shipped
off
to
China
was
by
Mr.
Roosevelt himself.
do
not
believe
in
that quar¬
reling, bickering kind of govern¬
ment—-an
administration which
cannot
in
war
for
unite its
can
the
own
tremendous
ahead of
house
even
unite the nation
never
tasks
peace
us.
We must have the
strength and
unity within
among
to
peace.
that end
government and
people
our
contribute
lasting
our
the
As
if
we
are
building
a
first
of
step
to
a
to
must UBVC.n SUVcmhave a government in which the lines of
responwe
lliUOt
in
States
into
result,
bill
ministration
gress is
thing
con¬
can
fruit
is
of
ward
propose
than
now
to Con¬
reaping
elected
the bitter
to¬
arrogance
representatives
people.
when
the
Mr.
Roosevelt
bill.
tax
On
ve¬
Washing¬
ton's Birthday he sent to the Con¬
gress
and
veto
a
unjust
message
that
so
savage
the
even
long-
suffering and subservient Senator
Barkley,
Democratic
majority
leader, rebelled. You remember
the
moving
and
impassioned
speech
that
Senator
Barkley
made. You remember how, pro¬
voked beyond
in
the
endurance, he
Senate
to
rose
denounce
the
words of the veto message of Mr.
Roosevelt
"more
as
honest" and
"a
as
deliberate assault
tive
integrity of
Congress." You
the
other
party,
this
than
the
on
and
legisla¬
member of
every
remember
how
Senators, regardless of
rose
as
one
declaration
by
clever
calculated
cheer
to
man
of
independence
Barkley,
and
the
Senator
members of the
House, regardless
new
years?
episode
example of
an
long
a
was
con¬
tinued
trend. There exists today
hopeless division amounting to
open warfare between the Con¬
gress and the President. We can¬
this
enter
ahead
with
critical
chief
a
period
executive
at
It
is
a
part
of
the
job
of a
President to work in harmony
with Congress just as it is part of
the job of a governor to work in
harmony with the legislature. I
speak with feeling on that
point. I have worked closely with
the Legislature of my own state.
We have had many difficult prob¬
lems to work out. But we have
found
not
it
impossible to reach
agreement when
we
sat down to¬
gether to discuss these problems.
If we cannot agree at the first
meeting
sit
meet again, and often
we
together
far
into
the
night
talking the whole thing over and
eventually reaching a meeting of
this
have
we
from
learned
watching
the
lesson
of Fas¬
any
rise
cism elsewhere in the world, sure¬
ly
should
we
have
learned
the
for
need
strengthening, not un¬
dermining representative govern¬
ment.
:iC,.
My opponent has demonstrated
that
he
cannot
work
with
the
present Democratic Congress. How
in the
the
for
whole
a
government
I
week.
achieve
can
for
of
the
shall
the
present
two
our
we
great godls
America, freedom
and
security
for all.
Meanwhile
that
it
need
we
the
problem
is
a
entirely
new
of
clear
approach to
the
operation
our government.
We need to
vise and radically reduce the
of
re¬
un¬
burdens and handicaps
by government upon the
necessary
placed
job-making
machinery
of
our
economic system. We need to
vise
our
which
present
deter
now
business
government
incite
tax
re¬
policies
kind
every
of
enterprise, which makes
jobs. We need
handicaps
drastic
a
policies
labor
disputes
and
now
place
responsible labor
upon
in
change in
which
their
work.
Some
changes I outlined
of
at Seattle
We need above all, a govern¬
ment which believes in the future
of the American
people.
These, then,
essential
name
country
can
of the future of
our
he be expected to get
along with the Republican
Con¬
to
three elements
are
achieving
our agreed
objective of peace and prosperity"
in America and in the world: if
we are
to have
a
unity
we
obviously
Administration
new
to
bring it about, if we are to have
harmony between the President
and
a
Congress, if we are to have
strong and vigorous America
with
a
jobs
for all, then we need
Administration to bring it
new
about.
Let's have
tense
no
more
of this pre¬
about
indispensable men.
There are no indispensible men.
If our Republic after 150
years
of self-government is
dependent
the
upon
one
endless
continuance
of
in office then the hopes
animated
the
men
who
man
which
fought for the Declaration of In¬
dependence and the Constitution
have
indeed
The
minds.
If
need
philosophy by which I believe
need
with Congress.
war
We
United States and its people.
I
will introduce the new
ap¬
proach on the radio from San
Francisco on Thursday night of
a
not
going back
last night.
hand.
only
of
approach to the relationship
chamber
Barkley's
jobs.
use
completely
seven
leaders
Mr.
the
the methods of the New Deal
which failed so
these
shake
My
succeeded
to
of party, crowded into the Senate
to
were
unemployed.
to get
a war
What is
between
We need only recall the recent
episode
have
any¬
The
un¬
spent
pression in the previous century.
Under the New Deal, we had to
Ad¬
suspicion.
executive
the
of the
this
today received with
less
nation
which
it had
power,
only in
accomplishment of
making a depression last nearly
11
years, twice as long as any de¬
popular disrepute. As
no
full
a
enjoyed
billion dollars, and there
opponent had
the incredible
tinuously sought for 12 years to
bring the Congress of the United
a
office
had
it
precedented
knowl¬
common
edge that the New Deal has
recall
the long quarrel between the
Vice
Then, there
been
years,
still ten million
a
But this dramatic
We have listened without
I
again to the
great state of Oregon. It is a
priv¬
ilege to have the opportunity to
thank
share in
the peace
strong and united people.
The first requirements lor
peace
and prosperity are
unity in our
several
v,';.-
you
i
our
secure
we
a
government
Can any such joint
harmonious
then 12 mil-<
were
unemployed in the United
By 1940, after the New
can
a
emphasis to the fundamental truth
that credit extension cannot
shall be
as
wages.
the
to do
are
Germany and Japan,
business
great, free labor
with the
about
make
good
con¬
we
full strength in¬
our
that will follow victory over both
sension
change.
The all-out peacetime effort of
your next administration will be
>
turbing factor in other economies.
In closing I wish again to
give
the
communists
tion. That is another
it's time for a
have
ofj boom and of subsequent
a
labor
workingmen
of power,
labor movement.
against
the
drive
and
positions
corporate regulation.
ance
the
will
racketeers
racketeers
of
They know that with
freedom,
duced
depression is largely a matter of
preventing post-war inflation. If
we
succeed
in
achieving these
objectives, the United States will
offer a good market for foreign
members
themselves
from
oppor¬
bring genuine freedom
movement.
in the fields of taxation, labor and
The avoid¬
unprecedented
to
in America
lion
58
toed
dom
They
and
of American his¬
States.
Deal
action
took
other in the pre¬
any
years
tory .Yet, there
the
seven
es¬
victory in Europe
is close at hand. Soon
able to throw
100
the President.
It is
both
to the Pacific for the total crush¬
ing price of gold
of
world
him.
vious
joint support of the Congress and
are,
that with the restoration of free¬
American working people know
1934,
which allow the buying and sell¬
a
prosperity
perity. In other words, he claims
the
longer than
and Congress. Is a
indispensable to that?
ahead must have
years
record.
administration
office in 1933, the
depression was
already more than three years old.
By 1934 that depression had lasted
and
peace
the
at
this
ship be achieved under this Ad¬
oarties. My opponent claims to be
indispensable to peace and pros¬
that
When
ministration?
peace and
course,
indispensable to that? Once again
thing
achieving our
of
a
*■
third
a
This absolute essential is
let's look
President
ical
in
competent, orderly administration.
9 of the Gold Reserve Act of
of
of
re-election
The road back to sound cur¬
is difficult economically
popular politically.
We must be willing to repeal all
silver purchase legislation, to re¬
peal the Thomas Amendment of
1933 and to repeal Sections 8 and
task
Now,
his
so essen¬
prosperity of
The steps we take in these crit¬
his
depends upon
November."
with
government
the
fourth term
and prosperity of the world
peace
objective
ad¬
an
getting
strong and vigorous America
with jobs for all. Is a fourth term
second
a
by
a
prosperity. That essential thing is
joint, harmonious action between
indispensable
of
is
that is essential to
agreed
as
seldom
easy.
rencies
as a
years
sential elements of that peace and
even-handed
This will not prove
16
of
there
is
perity.
will achieve the
people
only
essential to
the
our
get such
can
thing that is
achieving our agreed
objective of world peace and pros¬
lacked, is a
indispensable
With that new unity in our
Now
the claim that he
to
the
entire
upon
There
America and of the world.
carefully supervised
own
running mate,
Mr.
Truman, and I quote his
words, "The very future of the
things
of life.
conduct
to
and
more
confidence and in terms of which
their trade.
the size of their pay envelope,
the improvement of working
in
what I have said
responsibility to establish
currency in the post-war period
Also implicit in
is
total
a
elected representatives
people and that knows how
chief executive.
new
long
so
from
unity among
of America. Now,
later, he seeks a fourth
for
the
to do it. We
government
we
world. In the
to
raking,
not to settling labor disputes with
gun fire and gas bombs, not to
wholesale farm foreclosures, not
to
term,
unity in
tial to the peace and
government
peace
words
would
cancel the inter-gov¬
remaining from
World War I, to repeal the John¬
son Act of
1934, and to follow a to another New Deal depression
liberal and even generous policy with 10,000,000 unemployed. We
in connection with the settlement are going forward. The American
of the Lend-Lease obligations due workingman and his family can
to us in World War II.
go forward. They will go forward
willing
ernment
the
to
have
man.
At that time Mr. Roosevelt rep¬
resented himself as indispensable
is
those
be
bargaining,
bread
a
President,
there
bitter
of one-man
free country.
with
ministration
this
be
certainly
We need in this country an ad¬
ministration that wants to work
we
government,
has
become apparent to all—the
four years
we
believe
that
propose
will
elected this fall?
The one indispensable thing to
achieving this teamwork and de¬
change
I
I
which
gress
ad¬
team¬
of the
relations,
which
of
install that kind of administration
next Jan. 20.
we
ago,
Portland,
framework of
free—collective
these
turn back the
going
in
danger
goals
the
mean
living. We must increase,
decrease our production.
not
in
the in¬
of
must be
we
within
reach
to
therefore,
We
own.
of
increase, not decrease,
reconstruction
impetus,
protection
power
against the hazards of
We must have
these
age.
ard
muddy political waters. As
and to
have
To
intergovernmental
war
debts. These debts serve only to
economic
earning
bargaining.
of
retard
his
fault of his
no
free—and I
soring the reduction of trade bar¬
riers, but also by lifting from the
international economy the bur¬
a
now
of
loss
here
the
years
kind
inspires
and devotion to the service
when I spoke
I pointed out
danger
only by initiating and spon¬
den
Four
agriculture, we\ must
have full employment. It must be
at a high wage level. We must
have protection of the individual
things
devolve
exercise
not
work
the
that
of the country.
votion,
labor
good
Wayne Morse.
and
dividual
the United States.
We can
constructive
leadership
upon
labor
of
cause
es¬
tablish equality between business,
old
of
reconstruction
will
ministration
that you will elect to the Senate
the distinguished leader of the
peace¬
President. We must
a new
must
Implied in what I have said is
the thought that the problem of
economic
ing
through
suasion, not coercion.
world
these
from
and make research studies. Its in¬
fluence would be exerted by per¬
the
during
go
time years for which we are elect¬
loans
uine
the
to
want
short-
clearly laid down.
are
We must have
(Continued from page 1259)
(Continued from page 1263)
definite.
Thursday, September 21, 1944
America
never
that
of
peace
the
world
for
a
world
of
can
on one man.
will
many
nothing.
prosperity
American
many,
build
and
and
depend
The
to
come
peace
people
be
the
people all
many
structure
years.
know
work
over
of
the
We must
of peace
which
our
people and all people will
support not merely this year or
the next four years, but for twen¬
ty-five, fifty, and many more
years
it
to
is
come.
for
these
reasons
that
I
1265
don't
Business In
Democratic Society
The Place 01 Small
A
want
for America based on our exper¬
ience in small business.
instance—immediate repeal of the
"Contract
Settlement Act"—the
dropping of all Surplus Property
and
Demobilization
legislation
is worse than
suggestion
ridiculous.
Affirm¬
atively, I suggest these unhappy
circumstances ^in order to bring
ourselves to thinking about laws
which will be of a fair nature,
be passed, and all
and promote free enterprise, little
with transition from
and big business, competition, and
war to peace.
whatever it is we want in Amer¬
Also there are those who ex¬
might
laws dealing
that
theory
the
pound
need to do to help
all you
"let
to
Acts,
ness
and
of the Smaller
Corporation, I want
Chairman
As
little business
it alone." This would
include abolition of the Anti-Trust
is
ica.
Plants
War
that our interest
not based on
to make it plain
and permitting little busi¬
to be snuffed out by cartels
in
little business is
hostility toward,
It would leave big business, as such. We have nc>
situation where quarrel with honest, efficient, big
—and competitive—organizations.
monopolies.
little business in a
any
fear of,
or
couldn't
We don't want to destroy mass
get any money.
It would leave
We don't want any¬
them in a predatory society where production.
the big predatory animals would thing to happen to big business,
because, if it falls, it will pull
eat them up like rabbits and sheep
it
and
compete
couldn't
and cattle who had no one
protection.
them any
All
to give
of these
dream
suggestions
others.
down
But
big
to
X-Day
be
should
and
and get z'd into chaos because
we have not planned
^head. We,
z,
Now what will come
Tentative
conferences?
ments will be
ment
agree¬
reached. Then
of the members of
will go
after these
each
the conferences
back to his own govern¬
discussion of-points of
for
the solution ii<xf,
points of disagreement
g j
Then we hope that the * other]
nations of the world wjil be in-i
vited to conferences at the earliest
agreement
and
Small Business Has
Hit During:
therefore, offer ten points
mediate action.
for im¬
a
war
time.
same
cess
Been Hard
War
into the
jobs in
Regardless of the fact that some
closures were not hardship cases,
half a
million
small
businesses.
This
trend must be reversed.
We must
not only bring back the 500,000
possible moment. F6r there will
which have gone out, but plan
be no peace unless it is a just
for a net gain of a million new
peace in which the small and the
businesses.
weak participate as well as the
In the metal trades industry the
great and the mighty.
The diplomats of these nations bigs got the bulk of war produc¬
tion.
From 1939 to 1944, the pro¬
also will work long and hard.
portion of the total dollar value
Then they, too, will report to their
of shipments produced in plants
governments. Through that proc¬
of less than 500 employees was cut
ess will come the sound, common
factually we have lost one
which we move
stropg, a just and a last¬
toward
a
ing peace., 4 * ;
That is the 1 way to
in half.
Congress
The danger
be
Opportunity
1; To
Acts in 1942
of losing the values
by recent and
come.
■
;
^*'v"
specific stocks those
ward to
recommended here in the past
capital.
taking.
VIII. For small and all
risk
Hold.
More
' ■
will mean
That
Civilian Production Can
U. S.
be
cutbacks. But
now,
in the meantime, civilian
production must get under way
defeated, there will
30%, and more, in
aid and encourage¬
given fp veterans
there
are
tion
for
not enough to
was
Steel, advice is to
position.
i'fi '■
Sic
More next
•
_
:'fi
Thursday.
—Walter
Whyte
expressed in this
article do not necessarily at any
time coincide with those of the
Chronicle.
They are presented as
those of the author only.]
[The
views
of sur¬
plus labor. In certain areas there
is labor which is not adaptable
independent busi¬
to war production.
In some cases,
the men and women are not free
unemployment must to move to tight labor areas; they
not be allowed to weaken con¬
may not be physically suitable for
fidence
and
curtail expansion. factory production.
There are
Reasonable unemployment com¬ surpluses
in
many
materials.
up
call
So, if you still
disposal.
hold Big
talk-talk.
Only
to insure un¬ keep your
pockets
crept
it
lot when it went to
But this minor viola¬
543/4.
interrupted flow of war goods to
the Pacific should be continued.
areas
Every
ment should be
setting
been stopped at
week
Last
necessary
Speed into reconversion of little
business,
usiness, which should have
technical advisory
assistance, and a method to make started yesterday, is imperative so
new
products available to small as to prevent a dangerous lag in
business must be established. De¬ production.
velopments from government fi¬
So I emphasize, let small busi¬
nanced
war
plants, and
latest ness start in civilian production
methods should be accessible to immediately.
Right now in some
IX.
Steel, bought at 58 y2,
to have
through the latter figure on a
admitted that when Ger¬
further
i'fi
*
single
Begin At Once
controls
17,
at
Hold.
stop at 15.
55.
without
Sic
bought
Lockheed,
opportunities
Relaxation Of Controls So
is
Hold.
sjs
•
III.
many
*
stop at 17.
Sis
was
is
38Va,
at
Zellerbach, bought
Crown
at 18,
for small business.
,
Hold.
*
*
production will mean more
jobs, more purchasing power, and
more comforts of life for all peo¬
And it
bought
Bendix,
stop at 38.
'» :
;
ple.:-.:
s<e
*
%
into these and dozens
of other industries if competition
is free.
bought at 30,
still looks good.
at 28,
stop
flow
will
sjs
s-c
Allied Mills,
of
all.
than average
still show better
LAMBORN & CO.
ness.
X. Possible
pensation, with no discrimination
against government workers, and
a
program of necessary, public
Bring the labor
99
WALL STREET
NEW YORK 5,
N. Y.
blH/.
;{j (<)*/•'
S.«
<*!?..'•
and materials to¬
I.
represented the interests
been labored over by trained ex¬
version, and, for that matter, all
of small business in all govern¬
Private Enterprise Built America.
perts of all the nations who will ment boards and agencies.
policies.
In any event, this im¬
It Must Rebuild a War-Torn
be involved in it.
Much of this experience will be
portant legislation is being put
Economy
We want, most of all a peace
valuable in
the future.
I am
into operation. No expense should
We Americans want capitalism.
which all freedom-loving peoples
frank to say that our know-how
of the world have had a part in
However, merely saying over be spared in making it possible
should not be thrown away.
and over again Hhat we want free for the machinery of this Act to
creating, a peace they have la¬
One thing is sure: the SWPC
bored for,, and believe in, a peace has not coddled, nor attempted enterprise and parroting catch¬ move with the utmost speed.
they will be willing to sacrifice to coddle, little business, whatever words is not going to solve all
^ (Continued on page 1269)
our problems:
The point I want
and work for in all the years to that is.
And another thing is, we
ices and
current market
this for¬
Carrying
action.
build a last¬ of small business was recognized
gether.
this method there is by Congress when it unanimously
The more production which can
no indispensable
man. The peace created the Smaller War Plants works to be put into operation.
be begun now, the more it will
we
seek must not hang by the Corporation. The House and Sen¬
cushion the shock of reconversion.
slender thread of personal ac¬ ate
Small Business Committees Optimism, Boldness, And Courage
IV.
Are Essential
quaintance of any two or three spoke the voice of the people in
men. The pages of history are lit¬
taking steps to help small busi¬
In discussing the ten-point pro¬
Business Can't Afford To Have
tered with treaties proclaiming ness.
Funds Held Up Awaiting Settle¬
gram, I plead for courage and ag¬
permanent peace made privately
ment Of Contracts.
Long
gressiveness to face the new prob¬
SWPC Fights For Little Business
lems.
This is vital, for we must
by rulers of nations and quickly
Waiting Will Squeeze Out
The Smaller War Plants Corpor¬ now be ready to act quickly in
and publicly broken. This case is
Small Concerns
too important to be trusted to dis¬ ation has brought about a much many new ways.
Unless we meet
The
Contract Settlement Act
wider spreading of war work. It the first months of reconversion
credited methods or to be de¬
of 1944 was a magnificent piece
pendent upon the life span and has urged subcontracting, and in successfully, we may face serious of legislation, one of the most in¬
some few cases has taken prime
continued friendship of two or
political and economic convulsions. telligent jobs Congress ever did.
contracts in order to spread the
Although we are not unmindful Without it all business, big and
three individuals.
work among the little concerns. of the lessons of the past, never¬
I want to see a people's peace
little, would face confusion and
More business has gone to small
theless, our main reliance must be
come
at the end of this war. 1
widespread bankruptcies.
producers than-would have other¬ upon the future, for total war has
want to see a peace which has
This Act illustrates the absolute
wise u been
possible. We have totally changed the world.
But
been worked out in the full light
made loans for war production, here are the ten points.
necessity of governmental action
of day before all the world. We
furnished technical advisory serv¬
in settling the policy for recon¬
all want to see a peace which has
ing peace. In
the signals are plain
is warranted
me,
that bullishness
ing, television, air transportation,
and many others, we have only
scratched
the
surface.
Capital
It
t'fi
*
action.
long-term
system
the
,
large one.
dustries, in the fields of plastics,
air conditioning,
low-cost hous¬
which will encourage ven¬
For small, new bus¬
iness,
exemptions to encourage
ture
for
lot
thousand-share
plore new fields of economic ac¬
tivity.
}
V •'
To mention only a very few in¬
gram
in
disturbing to a
the loss in a
equally
small trader as
OUt.
hardships
which now exist in
field of equity capital, intermedi¬
a
ten-share lot cafl}
A loss in a
If
Expansion
No
In
ate and
1247)
(Continued from page
ation of WPB
ness
i
M
I
connection with relax¬
Now we look ahead to full pro¬
controls little busi¬ duction, high wages, and low costs.
must gain full and fair ac¬ We want expansion so that ALL
to materials.
If not, the im¬ business can move ahead and ex¬
S III.
Whyte
Savs
of the De¬
Reconversion to Save
partment of Justice in prosecuting
Us From Economic Collapse
illegal restraints of trade should
I. The principle of free enter¬ be
broadened
and
expanded.
prise and private initiative must Honest big business wants this.
be accepted as the basis of our Small business must be assured
future
society.
This
initiative this freedom from unlawful com¬
must be shown through the Amer¬ binations and restraints.
ican worker, farmer and business
The war has revealed that our
man, * but
all accepting govern¬ national safety was threatened by
mental responsibility.
the existence of German cartel
II. Monopolies and cartels must
arrangements with American con¬
be
wiped out and kept out, as cerns. Let us have nothing to do
free enterprise cannot exist at the with cartels except to wipe them
■
understanding on
Be
Business
Program for
business
the owners went
services or took
industries.
cases,
Walter
t
The present program
million small concerns
armed
Tomorrow's Markets
Monopolies, Or Cartels Restrict
Production And Stifle
financing. Be¬
cause
of recent relaxations it is
have gone out of business during
imperative that Congress legislate
the war.
Many were forced out at once to grant guaranty and
because of shortage of materials. financial
power
to
SWPC for
Others were forced to close be¬ small business. '
cause of labor shortages.
In other
VII. There must be a tax pro¬
Half
economic
II.
Can
There
letting
It is my hope—my
as
is
collapsing.
quit talk-talking about V
X-Days before its y, then
Germany
obviously needs the little concerns.
Now one thing makes me posi¬
earnest
hope—that in this we have laid
the sound ground-work for a fu¬
ture American policy which will
always be non-partisan regardless
of the party in or out of power.
basis.
our
have said, this tion doesn't permit of "cau¬
must be supplemented by public
tious
bullishness."
One is
We works, which I shall later discuss. either in or out of the market,
Moreover,
tively sick—that is the non-sense position of controls and quotas
business alone
about the little business man get¬ will and should be inevitable.
with a vengeance.
My idea is die
ting "coddled." Without going into
IV. There must be full speed
result would not be entirely de¬
details, one single big business ahead in matter of contract term¬
sirable—that is, it would mean the
had its cr edit guaranteed to a bil¬ ination.
Business men, both large
destruction of all competitive bus¬
lion dollars in the beginning of and small, must not be made to
iness as we know it.
Then we
the war.
There were other bil¬ wait unduly for settlement of
would fall to pieces.
There would lions and billions loaned out. And
claims.
be financial chaos and unemploy¬
this was absolutely all right. But
V. Policies concerning disposal
ment.
Then economic collectiv¬
—for the sake of comparisons— of all types of surplus properties
ism in the form of some type of
the
entire
capitalization of the should be established and put into
totalitarianism. Then war.
Smaller War Plants Corporation operation at the earliest possible
Of course, I carry all these con¬
for all little business was a hun¬ moment.
These policies must in¬
clusions to the ridiculous.
But
dred
and .fifty million
dollars! clude wide distribution of goods,
to actually "let alone"
anything Little business distinctly never
broken down in small lots.
has been coddled.
All the little
VI. Small business must get ad¬
have taken unprecedented steps business man asks is a fair chance
equate financial opportunity. This
to put the present conferences at —where he can work freely and includes interim financing, recon¬
Dumbarton Oaks on a nonpartisan will not be discriminated against. version
loans,
and removal of
would
that
is
make
problems are going to be tough.'
Further, we must do whatever
it takes to strengthen this system,
and this must include as many
reasonable laws as are necessary.
Ahead.
We Look
economic order
such
and
anarchy,
and wouldn't get
Approaches
is to abandon our
to
to,
CHRONICLE
to, even if we wanted to.
What
we want to do is to offer a plan
(Continued from page 1246)
philosophy were actually
followed, it would mean—just for
If this
which
& FINANCIAL
THE COMMERCIAL
Number 4 318
160
Volume
SUGAR
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& Co.
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Exchange
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1265
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, September 21, 1944
"Monetary Reform" published in
1923. Opposing the resumption of
time, he
said, on page 187:
Gold—A Bai barons Relic
I
of
ance
i
4 (Continued fr*
which
conditioned
by
banks
being
of the
deposit
metal. This practice, overcoming
the disadvantage of weight and
risk of robbery, gave the holder
tof notes the right of conversion
into specie in the issuing instituupon
tions at any time.
k
forward
in
science
ancl
the
gold
later
This was a step
empiric monetary
the
formed
the
basis
of
on.
standard,
nations. Nowhere in the world
convertible
there
are
circulation.
in
notes
still
are
countries, like
the United States, which create
notes
or
bank
credit, in other
words, money, at the rate at which
gold is received by the treasuries
central
metal
is
banks.
The
then
stored
where
yellow
in
vaults
ranean
it
subter¬
remains
idle, securing, it is said, the'cur¬
rency and credit outstanding.
It is
puzzling in this scientificworld, that man, after the
minded
strenuous
task
of
extracting gold
from the entrails of the earth,
processing
it
and
shipping
it
across the seas, should reach the
irrational
it
conclusion
again for
It
is
gruous
in
view
burying
particularly
of
since
gold
from
circulation,
has
advanced
of
of monetary
reasons
order.
the
been
incon¬
fact
that
withdrawn
few
countries
people
have
in
kept
track of its movements
or
about
When
its
realize
an
useful
a
existence.
that
of
more
in
we
the economies
which
stick
principle
without
worried
gold may become
upsetting factor than
one
countries
thodox
limit
in
of
the
to
of
or¬
acquiring
it
creation
of
the
money, we see its demonetization
looming. In fact a survey of the
changes and reforms lately intro¬
duced
in
the
field
of
money
by
leading countries, indicates that
gold as a monetary necessity is
being abandoned. Although it is
not
openly
tions
declared, certain na¬
have already ceased to link
their
currencies to the metal. An
the
was
gold
Great Britain
bulwark of the
until 1931 when
standard
credits abroad with which
real
to ob¬
goods
and
II
The gold standard was unwit¬
tingly introduced when bank re¬
ceipts and notes issued against
deposits of gold began to circulate
medium
a
born
of
exchange.
principles, however,
in Great Britain. In
Its
were
1797, in
the face of the threat of invasion
of, England
by
the
armies
of
Napoleon,
gold
great
were
England,
reduced
lish
withdrawals
for
hoarding.
the
at such
to
specie.
The
institution
a
suspend
re¬
were
rate that Eng¬
authorities found
forced
of
made from the Bank of
of
serves
themselves
payments
in
The
suspension,
which
1821,
provoked
a
great rise in the price of gold
and
a
depreciation in Bank of
England notes.
This caused so
lasted
from
spirit and
the requirement of the age.
A regulated non-metallic stand¬
1929, at the beginning of the
world depression, foreign owners
balances
sterling
in
ard
It
British
als in
gold, transferring it to other
This drainage, which
to reduce the supply
gold in the Bank of England
such
that
extent
have been
unable to
bilities
the
at
it
meet its
lia¬
gold in September
1931. A depreciation of the pound
sterling in terms of other curren¬
cies followed, stimulating the ex¬
port of British goods until other
nations,
depreciated
too,
their
gown,
In
his
however,
Lord
Keynes does not dispense
with gold entirely but speaks of
its utility in regulating the un¬
trade.
balances
of
foreign
expressing his
post-war international
Recently,
views
on
stabilization
in
his
plan
for
an
International
until
The
in
1821
notes
were
enunciated.
of England resumed
full
redemption of its
Bank
in
gold,
assuming
well
as
the obligation to
acquire at
termined
a
price all the metal
de¬
standard,
the
of
British
the
were
It
does
not
understand
ing policy which accompanied the
does
devaluation of the dollar in 1934,
particularly during the five years
preceding
the
passage
of
the
Lend-Lease
Act
in
examination
March
of
gold
1941.
move¬
ments to the United States shows
that from 1934 to 1941 the United
Kingdom
of gold
remitted
$8,175,544,000
to this country, if we in¬
pletely the
ish
of
permanent
as
and
the currency of the
Kingdom was practically
without gold backing.
According
to the last figures made
public,
the gold reserves of Great
Britain,
the
largest
metal,
through
com¬
has
of
value
in it
income
is
its
pro¬
a
as
maintained
remittance
to
other nations may meet the large
liabilities
incurred
during
this
It is
war.
obvious, therefore, that
statements favoring the com¬
plete
1941
eliminate
source
its
long
open
United
to
Keynes
of gold. The Brit¬
as
that
Lord
to
use
Empire,
ducer
from Canada in
$2,633,330,000 that came
1940, which prob¬
ably had a similar origin.1
difficult
seem
why
wish
not
clude the
pre¬
Charles
etization
because
the
United
States
Ill
never
been
made
Although
producer
Russia
of
gold
is
in
the
an
1925.
Wevjd
resulting from the first
circulated in the
ever
never
her
of
the
proletariat."
data
on
The
furnished
stocks
and
since 1935 she has maintained ab¬
solute
secrecy
as
to her
reserves
omists, in characteristic halfand production. By virtue of her
serious,
half-humorous
vein,
proposed that, in the process of strictly managed economy, it is
obvious that the circulating med¬
paying reparations and inter¬
allied debts, Europe should send ium is not conditioned upon th«e
of
her monetary gold to the United existence
gold as collateral.
States, should then turn her Why then does the USSR main¬
on
tain
the gold standard
and for all and leave this
such
gold
and
once
coun¬
try quite literally, holding the
bag. In the relatively tranquil
period that followed, this sug¬
gestion, even as an economist's
whimsy, fell into the limbo of
forgotten things. Today, how¬
ever, the suggestion is becoming
altogether too real. In conse'quence the United States is con¬
which
creased
has
over
Professor
W.
since
billion
one
A.
that
"if
in
of
his
Finance
Wis¬
recent
1930-40"
wished
one
in¬
pounds.
Morton
University
"British
been
to
em¬
War.
England's prestige as the finan¬
cial center of the world
caused
other nations to follow her mone.
official
end
of
the
the
adoption
currency."
■
.
present
British
Maynard
Keynes,
disbelief
in
gold-backed
a
March
wrote
secrecy
the
concerning her
policy,
the
John
expressed
necessity
currency
in
of
his
a
his
Mr.
ring
"Since my arrival I have been
line
effort
every
to
get
is
a
on
of
with
propaganda
best
of
their
and
care
to
when
project
the
vis-a-vis
These data
come
from
Union is
of
of
the
a
the Soviet Union
the second
as
largest gold producer had
a very
real interest in the world
price
of gold and that it was to their
interest to cooperate with Sec¬
of maintaining
the stability of world trade and
as
a means
exchange. The point was that .it
was
alleged that Russia had
been forcing very large
gold
shipments on the New York
market
this
spring. It was, in
fact, enough to depress the mar¬
ket. I told Maisky that I had
spoken to Litvinov about it and
had
stressed
that
it
dently to Russian interest
'break the market
evi¬
was
not to
price' of
one
of their most valuable
products.
I did not tell him
did I tell
Litvinov
that
isolation. Her exports were cut off
in the tremendous effort to
nor
Morgenthau
about
their
was
ship¬
Bingham made a fine
a persuasive one.
was,
I
think,
im¬
statement and
Maisky
and
consolidate
orable
internally, her unfav¬
balance
between
of
trade
reached
1920 and
On
Aug. 12, 1937^ en route to
Riga, Mr. Davies wrote to Mr.
Morgenthau:
"When in London
in June,
Bingham and I had lunch with
the
Russian
Maisky,
Ambassador,
who
is £< very able,
and fwe deliber¬
ately set out to emphasize un¬
der the appearance of casualshrewd
man,
the
great inferest which
Union | had in the
protection of the price of gold,
ness
the
Soviet
I think that
from gold, it is clearly to her in¬
we go# over to him
clearly
(without direct
approach) the wisdom of the
terest to
Soviet
which
the
Soviet
see
Union
derives
its value maintained
among the capitalistic nations. To
admit
openly that she uses gold
only to obtain goods and services
abroad;, might- strengthen
the
forces
in
other
countries
already
quite
government's cooperat¬
ing with the United States, par¬
ticularly with the Treasury,,; of
the
States^ I am
that he reported ifcto the
ernment.
fe 0
United
opposing its acceptance. Thus the
advantage of secrecy, especially
quite
an
with
Litvinov
1935
when
gold standard
pended
more
and
was
the
the
automatic
generally
value
of
sus¬
gold
widely questioned, becomes
apparent.
"When
in
sure
Gov¬
extended
and
conference
discussed
with him at length the
gold sit¬
uation of the world.
I asked
him the direct question as to
...
what
the
gold'was
actual
and
production
what their
of
pres¬
of
fixed
Soviet
Varga,
an¬
tone
that
"if
be conducted with
gold
a
with
currency
a
value, then undoubtedly in¬
greatly
facilitated."
Nothing could be
more
consist¬
ent with the interest of the USSR.
Yet
the
with
statement
enthusiasm
received
was
in
some
capital¬
istic
circles, which
nial
of communist doctrine and
retreat
to
saw
in it
capitalistic
a
de¬
a
monetary
ideas.
If
take
we
the
into
consideration
important
pjart
gold
has
played in the development of Rus¬
sia, that interpretation reveals
a
certain naivete. The Soviet Union
knows
will
well
the
the
lose
day
advantage she
other nations
to believe in gold.
While,
therefore,
they
ascribe
such
extraordinary value to it, we must
not expect
any opposition
from
the USSR.
cease
IV
Some of the
measures
suggested
by President Roosevelt's advisors
,
to
the
overcome
were
in
1933
the
the
last
depression
In
monetary field.
government
suspended
conversion of notes into gold. Fol¬
lowing this, New Deal economists
proposed a devaluation of the dol¬
lar
by
reducing its gold content,
the theory that a rise in
price of gold would auto¬
matically raise
the
commodity
price level, thus stimulating busi¬
based
on
the
activity and fostering the
ness
of
turn
This
re¬
prosperity.^
monetary
pplicy aroused
•
considerable opposition from rep¬
utable
groups
of
economists,
bankers
and
business
government had
a
The
men.
its side
on
only
small number of economists, led
by
Professor
George Warren of
University
who
were
Cornell
convinced
that
the
reform would
be favorable to the whole
can
Ameri¬
community.
Outstanding
sity
world
men
in the univer¬
like
Kemmerer,
Sprague, Anderson, Nadler, and
Spahr, to mention only a few,
started a campaign in the press,
classroom,
radio
public
against
platform
the
and
government-
proposed monetary measures, pre¬
dicting a ruinous inflation if they
adopted. Some idea of the
intensity of the fight can be ob¬
by perusing the periodi¬
were
tained
cals
London I also had
the
ternational trade could be
pressed."
ments.
1943,
innocent
could
basis
The
myself to luncheon.
Both Bingham (at my
request)
and I stressed to
Maisky that
1,
foreign trade of the Soviet
Union
and runs between
200,000,000 and 250,000,000 dollars.
and
being
the
somewhat
all the
Soviet
stated
ham
of
original White and
Plans,
manifested
the
Russian point of view on them by
concluding
in
a
discreet
and
considerably in excess
amount
hereinbefore
the
Dec.
alyzing
Keynes
eral information here is that the
production
re¬
herself in the
position
Economist Professor E.
study which has been made by
the legation at Riga. The
gen¬
1936
Russia found
Class,"
.
approximately 175,000 fine kilo¬
grams.
to
Jheir in¬
tary
stabilization touching the
neuralgic point of gold. In the
magazine "War and the Working
From the
.
hard., to
invited to discuss plans of mone¬
information I can get
production of the USSR is
the
is
had
gold.
expression of So^et
was
given us recently
uncomfortable
as a matter
power
It
outsiders
Another
sagacity
is
it
that
in
terest
is
guarded
in
causes
mind the Russians about
the gold reserve here.
practically impossible to
get anything definite. It is more
or
less a military secret which
It
concerned
it
that time?
at
believe
making
it
because of the great influx occur¬
Mor¬
genthau:
plays? An
explanation can be attempted.
Following the revolution, Rus¬
sia suffered political and economic
role
pre-occupation
Were the Russians interested in
15, 1937, Mr. Davies
from Moscow to
gold
"breaking" the New York markets
or were they afraid of losing the
opportunity
of
creating
dollar
balances, suspecting that America
might change its buying policy
gold question.
after
managed
,
mentor- of
monetary
the
gold standard
of
the
included in his book is a valuable
document for the interpretation of
the
and
the
responsible circles.
correspondence
world,
the
neither gold coins nor convertible
notes have
precise
The
interesting
ket)
Soviet Union has
econ¬
a
to sustain the world gold mar¬
pletely:
and
for
The
which
the
was
second
ship
"In 1923 certain British
he
seems
retary Morgenthau in his effort
clear.
currency system of the "dictator¬
in that
and
price of gold,
it
shrewdness
was dealt give us an idea
intrigue connected with
the shiny metaLand demonstrate
of
charged to fulfill by Secretary of
the Treasury, Henry
Morgenthau.
"Maisky, the Russian Ambas¬
sador, asked Ambassador Bing¬
Great Britain.
R.
Whittlesey
of
University, criticizing disappear, has
phasize the dramatic aspect of the
Act, one might say that it was the
smoothly
the
On June 1, 1937, Mr.
Davies, in
London, wrote in his diary:
British
will
function of money is supposed to
sented to it. Thus the
automatism
of the gold standard
was
estab¬
lished and it, functioned
country until 1931, except
intemmtion between 1914
of
that
authorities, although the demon¬
domestically is already
being carried out de facto in
from
come
gold
buys it" (page 116) allude to the
said
bilization
the
with
question
the gold reserves of the USSR nor
gain her cooperation in the sta¬
mission
and
graveness
about
official
not
of
The role of gold in the Soviet
maintained secret in the Ex¬
change Equalization Fund, dwin¬ Union, a country conducting it¬
dled from $2,689,600,000 in 1937 self
according
to
an
economic
to $151,000,000 in September of philosophy totally different
fronji
that of other nations and aiming
1941,2
Professors
Frank
D.
Graham at a society in which even the
Princeton
sion
gold reserve of the State
Bank is stated to be
350,000,000
dollars."
abandonment
now
consin
information
.
benefited by America's gold buy¬
work
obtain
rather
were
The failure of Mr. Davies' mis¬
despite his penetrating powers of
Mr.
Davies
could
neither
estimates
current
exaggerated."
observation,
Germany and Japan.
abandonment
Moscow."
Moscow and
it.
With
limit
in
idea
their
1934, according
to official
figures, the amount of
fronted with a gold problem of 709,700,000 rubles.3 To cover this,
the gravest character, one that Russia resorted to the export of
much agitation and debate in the
gold which had immediate ac¬
is almost certain to
plague us
financial circles of
London, that
ceptance in the international mar¬
for many years to come."
Parliament judged it necessary to
kets^ This was the way in which
create a committee to
By the Currency and Bank Act she was able to
study the
purchase machin¬
phenomenon. It was from discus¬ of 1939, enacted in Great
Britain, ery and hire foreign experts in
sion about the famous "Bullion the
Treasury authorized the Bank the creation of her modern
pro¬
Report" of that committee that of England to issue fiduciary ductive
system.
the classic
principles of the gold money up to 580 million pounds, a
Considering the great benefits
standard
received
the
money,
in
traditional
back
to
vantage the world could make of
confidence
lose
value
"Mission
despite the absence of the
right of conversion.
not
and
he
come
On
suggestions,
favorable
book
Notwithstanding the special wel¬
available, of course,
The British people did
By
rags,
paper
his1
Jf
A
ent
gold reserves were.
He
hedged on the reply. He did say,
however, that he could state
confidentially to me that the
is given to us Mr.
Joseph
Davies,
former
United
States Ambassador to Russia, in
secrecy
Clearing Union, he
dealt vaguely with the "psycho¬
logical value" of gold and the ad¬
currencies.
An
clad in
into the real world
of the bad fairies—
isters of Finance."
was
of payments in
While the economists
crept
Significant evidence of the So¬
viet
.
unnoticed.
in
by means
always so much more potent
than the good—the wicked Min¬
parity,
largely responsible for the
suspension by British authorities
exists.
has
would
established
slipped
and
threatened
an
has
.
dozed, the academic dream of a
hundred years, doffing its cap
banks started to make withdraw¬
to
.
the
possible intention of the British to
abandon the gold standard com¬
values,
services.
as
is
now
.
gold policy of the United
of their policies shows
in
their
book
"Golden
they have been remitting States
their
gold
to
those
countries Avalanche," published in 1939, in
which they state that "gold has
which
accept
it. thus
creating
analysis
classic
it
In
gold
.
.
ard do not observe how remote
tuted.
of
standard is
barbarous relic.
a
Advocates of the ancient stand¬
she, herself, began to act contrary
to the principles she had insti¬
the
the
already
greatest
that
tain
"In truth the gold
philosophy.
countries.
Today the gold standard has
virtually abandoned by all
and
1244)
page
tary
of
elaborated
been
But
m
the gold standard at that
V-V>/.Cr?
! •./'
\v.
of the
In
time.
November,
economists
mists
1933,
founded
National
Monetary
Policy
44 leading
the
Econo¬
Committee
to
oppose
government policy. Upon its
tion
it
published
the
on
the
crea¬
following
statement (New York Herald-Tri¬
bune, Nov. 25, 1933):
1267
■Volume 160
THE
Number 4318
*
*
of
threat
the
inflation
appear.
(1) that the
This, however, has been practical¬
s* country
is
today threatened
ly checked by price control, ra¬
with serious inflation; (2) that
tioning and sale of bonds.
j i" inflation would be harmful to
Although the New Deal's ex¬
the nation; (3) that the interests
pectation that devaluation would
which would suffer most from
result in a rise of price did not
I serious inflation are our workmaterialize;^ its
ultimate
goal,
} ing people, whose wages would
which was to turn the nations tol
: •••
V'-' '.V
): rise less rapidly than their cost
believe
"We
•*:
FINANCIAL CHRONICLE
COMMERCIAL &
not
road
the
ward
to recovery,
confidence on the
pite the lack of
•
•
was
impaired by the measure, des¬
community,
part of the business
alarming pre¬
influential
The following sta¬
influenced by the
of
dictions
•
many
so
authorities.
explanatory^
tistics are
'
v...-'
:•
of
'
life insurance
policies, our bank
hospitals, colleges
and other great scientific and
public welfare institutions, most
of whose endowment funds are
invested in bonds and mortgages; (4) that, while we recognize that the gold standard is
far
from
being the perfect
standard, as it has heretofore
'
'
■
■
'
•
'
'
;■
of 1929—
1929
1930
1931
income—
100%: 83.1%
65.5%
paid out-
ard.
.
.
livlng__«
example
of the
61.1
56.5
64.2
89.1
80.2
76.2
79.1
81.1
82.1
84.7
83.4
82.6
76.6
68.0
69.2
78.6
83.9
8%8
90.6
82.5
80.9
90.7
In Millions
1929^
1930
1931
National
1932
.
income-
82,885 68,901 54,301
cam¬
•
,
savings-
2,274
5,310
8,506
9,215
despite devaluation and the tre¬
mendous
increase
of the gold
Over
that
experimented with:
(1)
issue of fiat money; (2) infla¬
tion of credit and (3) depreciation of the external value of the
dollar. All three forms are not
'
obligations, chiefly for relief
public wofks, thus avoiding
in the public debt.
The
production
stimulated by
such an expansion would have
and
increase
with danger but gone to American consumers, in¬
fail to at- stead of abroad, as did much of
objectives."
the production paid for with the
So
overwhelming
were
the expansion of the money supply
forces opposing the administra¬ arising from ..the huge influx of
tion's policy that, looking back, it gold..-■ ■•
,:
is hard to understand how the re¬
This remark' is not intended as
forms were put into effect.
Had an apology for limitless rolling of
not a wave of desire for reform
the printing presses as a panacea
and experiment been passing over for economic ills.
But could not
the nation, had not the depression
the saturation point of money be
made the people lose faith in tra¬
determined
by
such inflationditional names and procedures,
measuring devices as indices of
had not the President, backed by
price levels,, cost of living, pro¬
Congress, possessed enormous po¬ duction, employment, etc? Would
litical prestige, the reforms cer¬
they not furnish a more scientific
tainly
would
not
have been basis for maintaining an optimum
adopted.
feupply of money than uncon¬
In 1934 the Gold Reserve Act trolled movements of gold?
yvas passed. It embodied the de¬
Perhaps America's gold policy
valuation of the dollar.
The Act can be justified on the basis of
stipulated that the monetary gold international political considera¬
stock of the nation should be es¬ tions. It resulted in aiding for¬
timated at the rate of $35 an
eign nations in their struggle
ounce,
instead of the former
against the Axis. It is the duty
are
almost certain to
'
tain
their major
With
simple
democracies to
and bookkeeping the
provide such help, but should it
value of the gold stock, which was
not be given directly rather than
§4,033,300,000, increased to $6,- through unsound monetary prac¬
828,800,000. The "profits" of about tices?
§20.67
an
arithmetic
ounce.
and
necessity of
1,397
910
69,378
778
Available For 1944
•
Most
New
York
State
farmers
who borrow use banks as a source
credit, according to George J.
Chairman of the Com¬
on Agriculture of the New
York State Bankers Association,
who is also President of the First
National Bank of Herkimer. "Re¬
of
Sluyter,
mittee
ports made by 377 of the agricul¬
Re¬ tural banks of the State indicate
construction and Development is that they have $123,815,000 avail¬
destined to make loans to devas¬ able for farm production loans in
tated countries and to those hav¬ 1944," Mr. Sluyter said. "This is
The
International Bank for
potential resources undevel¬
Such loans will be made
primarily by borrowing funds in
the
money
markets of member
countries, the Bank guaranteeing
amount needed to
ing
four times the
oped.
take care of the
their settlements.
devalue the dollar
estimated finan¬
all New York State
farmers in 1944." In making this
announcement the State Bankers
Association on Sept. 17 stated:
"Non-real
estate
farm
loans
cial needs of
present opposition
"The figures on farm borrow¬
and Wall Street to the
Bretton Woods plans be success¬ ing were developed in a national
survey made by the Agricultural
ful in preventing their adoption
Commission
of
the
American
by this country, the flow of gold
American Congress last year re¬
Bankers Association to determine
to American shores may be ex¬
fused to extend the President's
'1,000 plus' service ratings of ag-:
pected to resume sooner.
ricultural banks on a state-bypower to the effect this, and that
If a continued influx increases
the nation has a monetary sup¬
state basis. New York banks have
the ifioney supply of this country
ply considered sufficient by au¬
just been awarded this rating for
to
an
inflationary level beyond
thorized circles.
the fifth consecutive year.
Latin American countries prob¬ the power of the Federal Reserve
"According to Mr. Sluyter, all
ably will give up the intention, if System to control, Treasury au¬ of the 377
agricultural banks
indeed they have it, of retaining thorities may be obliged to reduce which responded to the ABA sur¬
the price of gold in order to stem
their recently acquired gold to
vey indicated that they are pro¬
the inflow and check the infla¬
bac% up their currencies when tionary process. Should this be viding services to agriculture over
and above normal banking rou¬
they are faced with the possibil¬
unsuccessful, America might even
tine. These services include help¬
ity of utilizing it for purchase of
Should
the war.
ary
an
1,014
1939
Farm Production Loans
again.
Through the operations of the
Up to the moment these con¬ Fund and the Bank, the imme¬ held by the New York State com¬
versions have reduced the mone¬
diate necessity of foreign coun¬ mercial banks at the beginning of
tary gold stock of the United tries to remit gold to the United 1944 totaled $45,005,000, Mr. Sluy¬
States from 22 billion dollars to States in payment for their im¬ ter pointed out. Of this amount,
21 billion dollars. Financial and
ports may be overcome. But the $22,342,000 represented loans cov¬
banking circles, worried by the flow of gold to America will only ered by Commodity Credit Corpo¬
enormous stockpile in Kentucky,
be permanently stemmed if the ration purchase agreements, while
have shown satisfaction with this
United States imports enough to $22,663,000 represented direct
reduction, believing that it marks offset her exports. If she does not, loans to finance crops, livestock,
a
reversal of the past inflow, the
supply of dollars in the Fund production, machinery, and equip¬
Examination of the political and will be exhausted and member ment. For the same period, New
economic situation in the United countries and the Fund will have York State loans by the Produc¬
States and other countries, how¬ to resort to shipping, gold to ob¬ tion Credit Association, a Feder¬
ever, indicates that the phenome¬ tain dollars for settlement of their ally
subsidized
credit
agency
non
is temporary and that the
imports and loans made through making loans on conditions and
stream
of gold to the United the International Bank.
terms
comparable to banks, to¬
States may be reestablished after
talled about $8,200,000.
only fraught
-
•
26
ment will
flationary measures. . . . Three have achieved an expansion with
main forms of inflation are now
fiduciary money. With it the gov¬
being proposed, or are already ernment could have met budget¬
being
1938
,
1,441
3,085
the widespread pres¬
huge influx of foreign gold in ex¬
is being brought to
change for American goods,
it
bear on the United States Gov¬
seems
it would have been more
ernment in favor of drastic inadvantageous for this country to
;
1937
55,870 65,165 71,172 63,410
40,074 42,430 50,347
undersigned members of
expansion to help recovery. But
and business facul¬ when we take into account the
ties
of
Columbia University fact that the expansion which oc¬
wish to express their deep con¬
curred resulted largely from the
'
1936
Business
"The
sure
1934
1933
economics
cern
of $
1935
for
Fund
and the International Bank, for
Reconstruction and Development
are carried out, foreign countries
will
be
assisted
in obtaining
American
goods
and
capital.
Through the Fund they will be
entitled to buy dollars with their
own currencies, just as the United
States will be entitled to obtain
the currencies of other countries.
International Monetary
the
85.1
77.9
100
price.,
'
92.1
money supply, refuting prevailing
paign is the statement which ap¬
theories, it is obvious that follow¬
peared in the New York press,
ing the bank credit contraction of
Nov. 28, 1933, sighed by 38 pro¬
1929, the money supply of the
fessors of Columbia University:
United States was in need of an
■
80.6
100 i 97.5
100
Wholesale
."
Another
.
87.2
Cost of
extended experience and is
If, according to the general con¬
the only standard which offers cepts of inflation, the above fig¬
any immediate hope of becom- ures show that inflation did not
ing
the
international stand- occur in this country after 1934,
.
79.6
83.7%
69.3
any
•
'
1939
1938
1937
67.4% 78.6% 85.9% 76.7%
48.3% 51.2% 60.7%
"
Income
1936
1935
1934
1933
1932
National
existed, it is the best standard
with which the world has had
;
•.
Percentages
depositors,
■
.
beneficiaries of
the
living;
•
change for credit and goods.
If the Bretton Woods plan
will
again devalue the dollar seems
unlikely
considering
that the
That
States
United
the
the
in Congress
suspend the acquisi¬
ing build up livestock, working
gold. Such a for erosion control, assisting 4-H
step would be the greatest blow
clubs, Future Farmers and other
gold could receive. It would put farm youth organizations, encour¬
the United States on the same
aging farmers to build financial
path which United Kingdom arid reserves in War Bonds, working
Russia already appear to have
be forced to
products which they need, such as
consumer's goods, tools and heavy tion of additional
for
equipment
developing their
roads and ex¬
industries, building
ploiting their resources.
After the war, the United States
will be the only highly industrial¬
ized
country
whose
resources
not been
have
The
war.
destroyed by the
extraordinary capacity
for fast conversion
she has shown
from peace
production in¬
to war
try in a position to
only Latin American
tions,
As
needs but
of the European na¬
Russia and China.
the arsenal of democracy,
those
also
supply not
demonetization
Present-day
prob¬
economics,
ably hardly more advanced
science than were alchemy
achieved
will
the
yellow metal.
when
as a
and
with
Nobody can foresee
gold will be completely
reconversion can also
without delay. She astrology,
be, therefore, the main coun¬ precision.
dicates that
be
taken towards
of the
cannot
predict
abandoned in favor of a more
scientific monetary systern which
does not leave the development
of countries' economy so largely
out
farm
receipt
and
budgets, promoting the
farm
credit statements,
.
expense
use
of
and at¬
tending and sponsoring agricul¬
tural meetings.
"The banks,
according to the
report, are also carrying on a
campaign against wartime specu¬
lation in farm land.
Banks have
cautioned
farmers
about rapidly
rising land prices in many
of the state and have urged
not to
create
parts
them
inflation and
hard-to-pay-back debts by
contribute to
at the mercy of the production
will come out and uncontrolled movements of a | paying too much for land
of this conflict with a tremendous
somewhat useless metal. Gold still j
"That the effort to prevent
internal debt. If the public today
v
■
$2,795,500,000 was transferred to
is disturbed about indebtedness
sanctity which makes Us
j
the Treasury Fund.
taxation, further increases
The stream of gold to American and
tenacious. To shatter and destroy far™ lands
Under the new price, a stream
date," Mr. Sluyter said, "is evi¬
certainly will not be favored after
/Url mvtVi rtf ifc intrinsic vnlup
Hnfp " Mr. filiivfpr said, "is evishores was stopped in 1941, after
the old myth of its intrinsic value,
of gold to the United States was
the
passage of the Lend-Lease the war. Comments to the effect it would be necessary for a coun¬ denced by the fact that farm real
established which grew greater
that
Uncle Sam cannot indefi¬
Act. On Dec. 7, 1941, the Japa¬
try in the position of the United estate values in New York rose
and greater with the increasing
nese
atacked Pearl Harbor and nitely play Santa Claus to the States to refuse further accept¬
only 4%
during the past year
political instability of Europe. the United States entered the war. world at the expense of the
ances of the metal.
The gold inflow to this country
compared to a 15% average in¬
American taxpayer
are already
Although the cash export trade
If this
country approves the
from 1934 to 1939, the year of the
was
virtually
suspended, this being heard. To avoid greater Bretton Woods plans, decides to crease for all farm land prices in
outbreak of war, was $11,120,970,debt, Congress probably will first
the
United States.
During the
country continued to import large
abolish certain tariffs and starts
000 and by 1941, when Lendquantities of strategic materials discontinue the Lend-Lease pro¬ buying more from abroad, the five-year war period, New York
Lease was enacted, the total had
The UNRRA, which is at¬
and foodstuffs from nations not gram..
reached $16,847,000,000. Between
gold question may remain in sus¬ farm land prices have risen about
dominated by the enemy, chiefly tempting to create a relief fund,
1934 and 1939, with the domestic
pension.
This would leave gold 18% while those over the nation
Latin America.
These purchases even if it succeeds in putting
production, the gold money supply and the expenditures incurred in through its program, will certain¬ on its present senseless footing. have risen 42%."
On the other hand, this country's
of the country increased from $4,the construction of military bases ly not be able to meet all'the de¬
In helping farmers with their
economic
capacity
033,000,000 to $17,644,000,000 or
Under astounding
throughout "the Western Hemi¬ mands of needy nations.
financial affairs, New York State
330%! By Pearl Harbor it had in¬
conditions of international finance coupled with modern devices of
sphere, at a time when Latin
credit and money control, may
creased to $22,737,000,000, more
banks, it is indicated, carried on
American
countries, because of that have existed up to the pres¬
than 430%.4
ent.
devastated
countries will make it possible for her to add 29,290 projects, making contacts
shipping shortages and war prior¬
to her money supply all the gold
Analyzing the period from the ities,were unable to buy the prod¬ find it difficult to get credits
existing in the world plus the new with more than 100,000 farmers
devaluation to the outbreak of the ucts they needed from the United from America, because of the bit¬
and their families.
In 1943, the
experience
with European production for years to come, just
war, we see that notwithstanding
States, contributed toward a con¬ ter
as in
the brief course of seven banks made 54,676 farm loans.
the tremendous increase in
the siderable growth of their dollar loans after the last war.
years the increase from 4 billion
How, then, might they get the
gold supply, neither the prophe¬ balances here.
to 22 billion dollars in its gold
funds to reestablish their econo¬
cies of the New Deal group ndr
goods and services fand burying
Some of the Latin American
money supply did not cause any
mies?
It is a general conviction
those of its opponents were found
the gold received in exchange.
countries, since they cannot use
real disturbance.
The gold pro¬
that they will emerge from the
to be correct. The domestic pur¬
their balances, are converting part
ducing countries would continue
1 Federal
Reserve Bulletin, May, 1944,
war with regimes of strictly con¬
chasing power of the dollar con¬
of them into gold. These conver¬
to benefit by such an unintention¬
511.
tinued practically the same.
The sions are interpreted by some as trolled economies and managed al altruistic of the United States. pageBanking and Monetary Statistics. Fed¬
2
_
price lqvel did not go up as much measures intended to "strength¬ currencies, in which gold will be But it does not seem possible that eral Reserve Board, pages 553 and 526.
3 Arthur F. Arnold—"Banks, Credit and
of secondary importance.
Those
as expected. There was no real in¬
en" the currencies which tradi¬
• .
the United States will continue in¬ Money in Soviet Russia," page 415.
who possess gold, therefore, may
flation. Not until the entry of this
Banking and Monetary Statistics.
4
tionally lacked sufficient gold col¬
definitely
a
monetary practice
have recourse to shipping it to
country into the war with the
lateral. Others see in them a sus¬
countries which accept it in ex- which
results in giving away 5 "Statistical
subsequent shift of the economy
picion that the American govern¬
the
now,,"
United States
prestige
;eulati™in New York Sfte
has been successful to
+
,
•
Abstract of the u. s. 1940."
from peace
to war
production did
1268
THE COMMERCIAL & FINANCIAL CHRONICLE
Allied
Military Currency In Italy
lire
note to the cumbersome
ican
of
1,
2, 5
and
10
and
can
money.
dollar bill and have, respec¬
18, 1943,
(N. Y. "Times," Dec.
black
surrounding
borders
(brownish
picture of what
is
a
i
Military Currency has been
parently a wheat field. The four
ilarger denominations of 50, 100, questioned several times. For ex¬
ample, Professor Walter E. Spahr
are the size of
'the
American
dollar
and
also of New York University, who is
[have, respectively, blue, lavender, Secretary of the Economists' Na¬
tional
;green and black borders around a
Committee
.
The money is marked
Allied Military Currency although
'it is issued by the United States
Army. The British Army has its
own
military currency marked
British Military Currency.
No¬
where do the American notes give
any exact information as to who
them
where
they
or
how
will
or
be
when
sulted.
that
and has
is
it
in
series date and
a
Court
or
cupied
of the four
of the back of
corners
Only
note.
every
the
value
of
each note is printed in both Ital¬
ian and English.
Allied Military Currency is pre¬
by
United
the
States,
Manual
on
Military Government
(FM 27-5) states that military oc¬
cupation of a foreign nation sus¬
pends the enemy's civil govern¬
ment therein and makes
left this country in two
plants on
To keep transpor¬
July 19, 1943.
tation
costs
soldiers
to
largest
a
minimum
our
generally paid, in the
are
possible.
tq
denominations
For example, a soldier entitled
$46.50 on pay day will get four
1,000 lire notes, one 500 lire note,
100 and
one
50.
one
Because of
this practice making change in
dealing with Italians is often dif¬
Treasury
Department j obviously
was
experienced
more
in
issuing
currency,; the
War Department
sought its cooperation.
In short,
supporters
of
program point
out,that the currency was not is¬
sued, indeed is not current, in the
United
States
in
or
pwned by us, but in
whose
civil
a
territory
foreign land
is
government
not
functioning fully during the war.
ficult and incidentally stakes in Furthermore,
say
Treasury of¬
ficials, according to international
crap games are kept high.
Allied Military Currency has law, a country occupied by invad¬
been made legal tender in Italy. ing forces must pay the costs of
Indeed possession of real Ameri¬
can
by soldiers is unau¬
and
at
staging 'points
money
thorized
they
encouraged to convert
their American currency into Al¬
are
lied
Military
Currency.
Many
post
exchanges
and
other centers refuse to accept Ital¬
American
ian money.
occupation
normal
are
some
areas.
When tjie war is
Italy will get a large bill
from us.
("N. Y. Times " Oct. 25,
1943, p. 4. See also May 14, 1944,
p. 8).
In short, it is for Italy to
about, not for
worry
critics
reply
sound
the
basic
overlooked
Department had
Congress'
reasons
issuing the Allied Military
Currency. First, it is said to sim¬
plify the countless dealings of
American military authorities and
soldiers with Italian civilians if
a
can
fact
that
the
type
new
tainly the propagandizing of the
that
the
largely to Ameri¬
soldiers, and th&t if the Ital¬
ians
should
full
our
fail
to
redeem
Government
honor-bound to do so.
it
would
in
Thinks
public "(confidence
in
a
currency is essential if it is to cir¬
culate successfully and maintain
its value, we should
inquire what
Military
ian
facts, but if enough people think
the same way,
right or wrong, it
is important.
The very war itself
against the false Nazi philosophies
.they have
how
accurate records of
no
much
withdrawn
because
has
[been issued
fleeing armies
by
or
or
might appear in the future from
German-held areas to the north.
Since pur authorities have to re¬
deem
whatever. money they pay
American
soldiers,
they
must
know the amount issued and be in
a
position to control it.
Third,
they do not wish to issue Ameri¬
can
it
money
would
age
and
because easy
simplify
sabotage
this connection,
a
espion¬
activities.
In
basic
reason
for
rushing through the first issues of
Allied Military Currency, accord¬
ing to Under Secretary of War
Patterson,
the
was
Germans
our
had
discovery that
floodea Sicily
use
Currency
the
Allied
of it.
think
What they think and
say may or
may not be in keeping with the
is
proof
of
the authors
of
been tin
>
months
in
that
principle.
of
One
this article has
Italy
in the past few
position to observe
and investigate the
public's reac¬
tion; to Allied Military
Currency.
a
simplify deal¬
ings with Italians. Accepting Ital¬
ian
at
money
following * conclusions
based largely on his
findings:
The
who
average
is
American
paid
Allied
in
Currency trusts it but is
are
<•
soldier
Military
curious
about it. The G.I. finds the
money
convenient for it is in lire at the
easily understood rate of one cent
to
one
lira and so^simplifies deal¬
ings with Italians,
■=,
Furthermore,
it is cleaner and easier to
handle
to redeem, then we have
we are
ment
is
run
hard
Suppose Congress decides at this
point that too much has been is¬
to
number
are a
What
through the Treasury must
sued.
There will be rather little
in being told that a
satisfaction
beautiful
are
accounting
Foremost,
what
of
limit.
the
It
is
has
And if
Congress
ested
published
persons
opinion.
metallic
has
may
exploited
set
no
is
not
bled
defeated
an
and
Attitude of the Italian
The Finance authorities
Government
apparently issue whatever amount
A
is needed to pay
third
and
lesser
troops and to buy
supplies locally.
They insist that
they keep a strict account of the
tion is that the
amounts issued and
sion of its
ernment
redeemed but
current
nations
them
by means of special
currency issued for the purpose.
inter¬
so
express
will
we
put ourselves in exactly the posi¬
tion of the Germans and
Japs who
Military
issued
do not redeem in full
we
prevent
no
The amount
periodically
to
Allied
has
system
been set up and the
army knows
exactly how much is out.
J
Currency.
the
redeem to preserve its
good name.
Dangers of Over-issue
over-issue
au¬
redeem
might
considera¬
Italian Gov¬
new
the
resent
money-issuing
inva¬
preroga¬
exchange that is not exactly the
point. Per¬ tive as the De Gaullist regime did
rates, they argue, would seem a
haps an analogy will explain mat¬ a few weeks ago in France. So far
reasonable corollary to the army's
ters.
Suppose our War and Navy there has been littlg if any com¬
simplification program. Some col¬
Departments
in
th i s
The Italian
country plaint on this score.
lege graduates nod wisely and
bought all supplies and paid for Government knows
it
exists
venture the opinion that the
army
all services by
printing money. largely on the sufferance of the
is trying out a "managed
currency We would have scores of
billions United Nations, feels just strong
experiment."
The
probabilities of,dollars in circulation—the
cost enough to stay alive and has no
are, however, that many of these
of the war and the total
extra strength to
expend in use¬
money
rules are the product of the
army's in circulation would be
approxi¬ less resentments. However, there
red tape mill and are
chiefly in¬ mately the same. At
would seem to be
tended to simplify matters for the
army's administration officers.
The
not
seem
fear
to
their
use
Allied Military Currency as the
Germans and Japanese used their
invasion
money,
as
of confiscating
prefer
the
number
of
easy
Military
own
Cur¬
for a
money
Their
reasons.
own
is
mutilated, cumber¬
has a background of de¬
currency
and
some
Allied
their
to
an
property
In fact, the
themselves
by seeming to buy it.
majority of Italians
rency
preciation.
Currency
The
Allied
Military
and
the
is easy to trade with
soldiers have lots of it
and
are
lavish
spenders.
It has
introduced under pleasant
circumstances
the departure of
the Nazis and
the approach of
been
—
peace.
Italians doubt if their own
Government will back up their
own
issues but they have every
confidence
wealthy
that
the
American
fabulously
Government
will back up its
army currency.
There
of course* a few dis¬
are,
According to
Red
Cross
blame
the
promi¬
one
director, some
Americans for
exchange rate of 1 lira
to the
talk
good old
days when the lira
worth
war.
gold
a
nostalgically of the
was
more—5
cents before the
They think they should have
silver
or
written
money
guarantee
on
at
least
the
or
note
of
the'United States' intention to
redeem them after the war.
They
doubt if Italy "will be able to
dig
up enough money to redeem."
In
Naples, suspicious people are
offering 200 to 300 lire for real
American "blue-seal" dollars. Our
silver certificates,
bill, have
they
are
nremium
they
answer
for
want to
use
the $1
evasively, - "We
souvenir," or "We
.
n
it after the
America."/
suspect
the
as
Asked "why
willing to pay such a
for; "blue-seal" mo^v
want it
to
such
blue seal.
a
it
is
German
Some
being
or
war
to go
Americans
gathered
Fascist
by
under¬
ground for
esoionage purposes. It
seems more
likely, however, that
the Italians offering this
premium
have greater confidence in
genu¬
ine American money than in dol¬
lars which are not legal tender
in America like the
"yellow-seal"
..
■'/.
lions,
present our
is $22 bil¬
circulation
national
our
Prices
debt
is
would
■■■*:*,£ Is a-
$200
soar,
they did under such
Italians
that the Americans will
method
in
money
billions.
What the Italians Think of It
i
The
access to
enemy
trouble to
long
it is set up.
backing.
this
of
cent and
Since
effective if stated in Italian.
Second, the United States Army
authorities could hardly use Ital¬
exclusively
$5,000
know
much
so
the
of It
Just how would
us.
count
of the fact that the army went to
natives
Soldier
the_ people who
money
to
senters.
the American
ac¬
why the Allied
Military Financial Agency won't
accept the Italian money in view
be
Four Freedoms would have been
more
want
nent
What
is
strange that more of
the writing on the notes is not in
Italian as well as English—cer¬
approval,
money is issued
payments can be made in lire
which the Italian already under¬
stands.
In this connection, how¬
it
be
that
To this
us.
of money issued without
securing
for
ever,
in the
occupied
War
Currency
There
the costs of
as
over
cannot
-Reasons for Allied Military
well
as
domestic functions
But Finance won't
to
is
(waving several tattered and
bulky 100 lire notes)." A few men
the
-
you,
to
which the United States Govern¬
some?
in
it's
is it?
currency
the
as
If the American
intend
dangerous precedent of the
War Department
issuing money
without Congressional authority
Military
dangers inherent in the whole
so
stuff
The
Field
like
for
Italian
cept it from
you
(Treasury
of Aug. 17, 1943),
Department's
Basic
of
reau
still good.
the powers nec¬
Release
War
native
in
discount
Who is to
the
Allied
Certainly there
system
paid
get
Currency
inconvenience
no
true
explanations as
offered
by
one
fellows
Military
Sure,
his
functions."
such
"You
Allied
oc¬
under
Forces
areas
of
with
following
clerk:
the
it neces¬
Washington at the Bu¬
sary for the occupying army to
Printing and Engraving
take over schools, sanitation and
and shipped over in sealed
[and:
coded boxes.
The first consign¬ many other civil functions includ¬
Since the
ment of seven tons of the money, ing that of coinage.
pared in
isfied
for the carrying out of gov¬
essary
ernmental
One of the four freedoms is
ber.
the
command has all
num¬
propagandized in English in each
of
say.
the
by-passing
Military Commander in
Italy"
a
for
excuse
if
of
far to have been fairly well han¬
dled.
Whether this will remain
exchanges and other
offices are refusing to accept Ital¬
ian currency. Not everyone is sat¬
for
a
profit.
a
full
eventually, why not say so
Why all the mystery? But
now?
Currency
post
many
Congress is that "under interna¬
tional law, the Hague Conventions
and the decisions of the Supreme
redeemed.
"Issued
The
thorities
The issuance of the Allied Mili¬
tary Currency in Italy appears so
to why so
as
.
in utmost secrecy."
Although in
session, Congress was never con¬
Each note bears the obvious state¬
ment
particularly curious
Currency at
game?
crap
,
Criticisms
suspicious regularly convert their
large bills into money orders and
send them home.
The men are
currency were made "in a series
of extraordinary conferences held
[currency.
issued
.
7).
in
money
making
money
20, 1944,
P.
If it is attempted
say that a G.I. turning up with a
wad of bills did not win them at a
($5,000) in April for
demonstrating
their
greater
"faith" in the real American dol¬
lar. (N.Y, "Times," April
money, whether it will be¬
inflated, how easy it is to
counterfeit, etc. Some of the more
Policy, has pointed out that under
middle. All look the Constitution of the United
coupons.
Because the States Congress alone is empow¬
[money originally had to be pre¬ ered "to coin money, regulate the
." (Allied Mili¬
pared in a short time it is only value thereof
lithographed. The special but me¬ tary Currency—Some Queries and
diocre-appearing grade of paper Observations, 1943, p. 4). Yet ac¬
[used does not have long wearing cording to a press release by the
Equalities but it is more attrac¬ War and Treasury Departments of
tive and durable than the Italian Aug. 2, 1943 plans for issuing this
design in
(like cigar
and
500,000 lire
so
redeem
Military
this
premium
the
American authorities don't like it.
Five
Neapolitans
were
fined
ian
the
;
to
come
\powder blue center with an ornate
themselves
soldiers buying native-held Allied
for
reasons
deem, whether Italy could redeem
it, if it is intended to replace Ital¬
Monetary
on
feel
day refuse to redeem them
Italians.
But whatever the
some
from
after the war, whether
the United States or Italy will re¬
[500 and 1,000 lire
will
American soldiers there arise pos¬
sibilities, difficult to deal with, of
"backing," whether it will all be
The legal authority for the Al¬
lied
Americans
cruelly cheated.
the latter have to be redeemed by
American authorities who might
our
tent "bull
many
used
redeemed
Legal Basis
ap¬
are
first
we
invading
or
the
Allied
Military Currency, since both of
sessions" about the army's money.
Soldiers are concerned about its
tively, blue,* lavender, green and
;
there
But
10).
p.
money
when
large de¬
nominations twice the size of
dollar.
Italy with counterfeit Ameri¬
half the size of the Amer¬
are
spearhead
quickly
size from
(Continued from first page)
denominations
and
worn
Italian notes which range in
the 2 x 3 inch one lire
torn
Thursday, September 21, 1944
1
than the much
a
Revolutionary
as
days
taxes and
War
tle
revenue.
on
a
system in
when
loans produced lit¬
war
Just such
a
by ' the
over-issuing of Allied
Military Currency in Italy. Once
money
into
gets
circulation
and
over
it
is
again and
competes for goods with any new
currency
the
army
may
have
ordered printed.
War and Treas-:
ury authorities are not blind tc
such
will
over
possibilities,
lieved
to
and if pressec
inflation is be¬
that
answer
be
unavoidable
in
war,
but
perhaps can be controlled
somewhat by price regulation and
rationing (N. Y. "Times," May 14,
1944, p. 8).
Presumably the currency has
not yet gotten out of hand because
so
far
really large amounts have
not
been issued, because the sol¬
diers redeem the large bills in or¬
der to send home their pay—in¬
deed the almost calculated mys¬
tery about the money's eventual
redemption may be intended to
encourage that—and because the
natives apparently prefer the Al¬
lied
Military
of
inflation
One
Currency
But certain
own.
is
a
in
rency
be
may
discount
terms
to their
danger signals
looked
of
of
native
handicapping
peo¬
Counterfeiting
A
fourth
'
danger is the
counterfeiting. The bills
graphed
grade of
threads.
sue
on
a
Soon after
it
black
ink
It into1
no
to
zero
to
the
10,
a
1
lira note
better, do
or
50 lire note and turn
a
'a,500/
Most
persons were
Welt enough acquainted with
the different colored borders
to
not
detect
the
fraud.
authorities
had
series
new
The
to
American
introduce
However, it would appear
that the chief danger is not so
much the raising of note values as
it is the wholesale
counterfeiting
of the notes
themselves either by
the Germans. Thi^*
is not difficult and can: be
annoy¬
the Italians
or
ing and embarrasip£;1J Recently a
of about
$340,000 in 1000
value
lire notes was found»'tlo have been
counterfeited. Since much was in
circulation in the hands of inno¬
cent
parties, it was decided to
a
large part of them.
cur¬
A
the
Possible
By this time
Solution
few persons may
themselves if any¬
a
asked
can or
danger signal is the discount of
Italian and Military Currency in
terms
of
American
"blue-seal"
money.
That signal has already
about
the
Allied
Military
rency.
We
submit
that
been
hoisted in
exchanges,
post
hasten
that.
Naples.
/
:
that
A second
ter
of
danger is in the mat¬
redemption of the Allied
Military Currency.
Although the
authorities are strangely silent
.qn
this point it seems obviou^ ffrat
the,
will eventually 'he 're¬
deemed but whether at the exist¬
money
ing rate and by whom is not
our
the
is eventually shifted to the
Italian
the
Government, it is
such
ques¬
tionable if redemption will be in
full. Even Treasurv officials have
admitted this.
(N. Y. "Times."
Oct. 25. 1943, p. 4). If it is not in
full,, then many Italians and some
:
■
■
.hifif.'
/a;
pro¬
successful,
dangers. We agree
fighting on for-?
soldiers
lution than the cheap Allied Mili¬
tary Currency. The bills paid the
soldiers, we insist should have
can
least
far
currency, American dollars dis¬
tinguished only by a special yel*
low seal, constituted a better so¬
cer¬
at
so
Cur¬
the
eign soil should be paid in marked
American bills-but believe that
the money first used as
spearhead
If the burden of
redemption
tain.
should really be done
gram, although
is fraught with
...
Doubts About Redemption
x
re¬
deem
have
may
a
(1943A) harder to al¬
ter.
thing
at
currency
silk
the first is¬
simple
ahd/turn it into
same
litho¬
brought
out
Italians
to add a heat
found
the
are
of
mediocre-appearing
paper and contain
was
!
ease
Another
lian
etc-.,
on
gov¬
a
ple.
for.
Military
Refusal to accept Ital-
Currency.
part in
ernment we want to see
succeed,
and to succeed
any government
must retain the respect of its
condition
small scale could be created
used
little point
our
same
backing
as
other Ameri¬
dollars and be redeemable in
same
as
way.
Where
smaller
new
issues,
denominations in
require Congressional ap¬
proval, it should be obtained. The
money
should be ^ issued by the
paper,
,
Treasurv
of
the
and
be
counted
as
part
"Money in Circulation"
:/,Tr
u.-:-
t.
as
v
-•'
1 ,Volume 160
THE COMMERCIAL &
Number 4318
FINANCIAL CHRONICLE
VIII.
Business In
A Democratic Society
The Place Of Small
Advances
Properties Must Be Wide¬
ly Disposed Of In Broken Lots.
Otherwise Big Business Gets
Surplus
All
The
it
V
Of Money.
Should
Be Available To The Small
Concern As It Is To Big
It
Advantages
Is
Now. "?■ Money
goods which be¬
Business
'
come surplus should be disposed
Interim
and
reconversion fi¬
of through normal types of busi¬
nancing are necessary NOW, not
ness channels-—wherever possible.
three months from now.
Recent
In public sales, such sales should
events and quite recently adopted
be widely advertised, goods of¬
fered in small lots, and under fi¬ policies of the War Production
Board make it imperative that
nancial arrangements which allow
money be available to little busi¬
small and lafrge to buy.
ness
without delay.
If controls
Billions were poured into gov¬
are to be relaxed, little business
ernment financed war plants. Now
has to have two things even be¬
we face the question of what to
fore the relaxations actually go
All consumer
into effect:
dominant or monopoly
prices, to
of
type concerns.
Likewise, steps should be taken
making plants available to
small business through the mul¬
for
here.
•
'
•
the ma¬
yellow-seal dollars were re¬
ported to have been. If it is desired to prevent their circulation
in America,..well and good, but the
fact that they will be redeemed
should be made abundantly clear.
The army's excuse that a special Allied Military Currency is
needed to facilitate trade with the
legislates. Since
it has legislated on most other
reconversion problems, it should
do so without delay in reference
should
■
Furthermore, one of the
authors
knows from experience
and considerable travel that peo¬
money
World
War I
eral
there yvas for sevf
in Warsay/, -Poland, a
years
bank which did
business.$nd kept
accounts only in American
dollars.
In
currencies" (N. Y.
"Times", Sept
20, 1943, p. 29). Italian
for the real American
preference
is
right now in Naples from
premium placed upon the
money
evident
^blue-seal^(fypjars.
govern¬
available as
•
should
any
be
New
Enacted
over
a
variety of military cur¬ stricted to corporations with exrencies was being prepared
net
—
against the days when our troops
exemption—-of not over $50,000.
entered other countries now oc¬
the enemy (N. Y.
16, 1944, p. 4). It is
a
dangerous precedent to let the
American
army
issue ; its own
by
cupied
Times, Feb.
'
without Congress' permis¬
centuries Anglo-Saxon
peoples have kept the military in
> money
sion.
For
income
This would encourage
before
thousands
to plow earn¬
There is one
thing certain: The
their control of the purse needs of small business in the fi¬
strings. That is a sound philosophy nancial field and field of taxation
a
should
people
abandoned.
peace-loving
not be
:
and
services, the purpose
is to
get the great new knowledges in
technology down into the hands
of small business men so that they
products in their sub¬
All
will
of these
technical services
and
people.
greater production
mean
more
goods for all our
Give
the
IX.
Go Into
Opportunity.
Businesses Succeed,
Veterans Who
Business
If Their
Every
They Will Be
are
urgent.
of
September 19, 1944.
business
M.
Treasurer.
KEMP.
of
Tens
will
go
selves.
thousands
of veterans
business for them¬
Many may never have op¬
into
their own
1, 1949
they have had a
Trustee:
■
GIVEN that, pursuant to the provisions of the
above mentioned Indenture, National Distillers Products Corporation
has elected to, and will, pay off and redeem in lawful money of the United
States of America on October 20, 1944, all of its outstanding .Ten-Year
Convertible 3*4% Debentures, due March 1, 1949, at 102% of the prin¬
together with accrued interest at the rate of 3*4%
The Corporation will deposit on or prior
National Bank of the City of New York,
as Fiscal Agent under said Indenture, a sum of money sufficient to redeem
all such debentures, and payment of the redemption price, including
interest to October 20, 1944, will be made at any time on or after said date
at the principal office of The Chase National Bank of the City of New
York, as such .Fiscal Agent, at its Corporate Trust Department, 11 Broad
Street, Borough of Manhattan, City and State of New York, upon sur¬
render of said debentures with all coupons appertaining thereto maturing
on and after March
1, 1945. From and after October 20, 1944, interest
on said debentures will cease to accrue.
'
'
- "i '
Debentures registered as to principal must be accompanied by prdpfyr"
cipal amount thereof,
to October 20. 1944.
said date with The Chase
per year
to
executed in blank.
This is certain.
veterans
told that there will
be many
veterans who
and
BUT, even
high losses, the
technical advice.
if there are fairly
aggregate
gain
in our
will be sure to be more
money
loaned out.
right to convert the debentures, at
national distillers products
^
corporation
By Thos. A. Clark ;
.
Dated, New York, N. Y.,
Thus
care
AH
Unemployment
One
our
It
Plans.
Must
Upset
Can
of the
positive action to take
first days of unem¬
of the
ployment is essential. This is the
responsibility of Congress. The is¬
sue must not be clouded by smear
Pre¬
Be
Public Works Is
vented.
j
Secretary-Treasurer
September 19, 1944.
yff
Mass
'
„
Answers
words intended to
divert the real
such as "doles," "relief,"
of initiative,";
We simply
repeat, private enterprise is issues,
first reliance.
.
*
"loss
.
unemployment can't afford nation-wide unem¬
set in because of the suddenness ployment.
' :
of victory, with its resultant flood
There must be provision for un¬
of terminations, then
we spiral employment
compensation as a
down to the bottom.
It will then check against the growth of fear
be hard to get out of the hole.
> and panic which develops when
Transition from war to peace unemployment begins.
And this brings us to a consid¬
will, of course, create l^gs in pro¬
Public
duction. If unemployment on any eration of public works.
big scale begins, people will be¬ works must be considered for va¬
But should mass
come
afraid.
When fear spreads,
economy purchasing power always drops.
than the This will bring on additional un¬
.
pu<i
.
the option of the bearer'^>r
registered owner of the debentures, into shares of common stock bf'
National Distillers Products Corporation upon the terms and conditions
and as provided in said Indenture shall terminate at the close of business
on October 20, 1944.
■
1
'
<
By Order of the Board of Directors.
:
To
The more small
begin, the
better will be our economy, and
the more certain we will main¬
tain a free enterprise economy. I
v
businesses
"
V"
NOTICE IS HEREBY
reasonable
started,
.
;y
out.
fore
,
3*4% Debentures, due 'March I,'
National Distillers Products Corporation issued under an Indenture
of March 1, 1939, between National Distillers Products Corporation
that is not a reason to
chance to get
v
ZVi% Debentures
The New York Trust Companyfas
The
businesses—but
keep them
Therefore, we must not let
widespread failures ruin the hope
of our
soldiers and sailors* for
economic independencce. Special
consideration should be given to
favorable but careful methods of
financing. Technical advisory ser¬
vices should be established for
veterans so that lack of "knowhow" will not wipe them out be¬
erated
ana
CORPORATION3
Redemption of ail
the Ten-Year Convertible
instruments of transfer duly
Self-Support¬
ing, and Our Economy
Will Be Strengthened
will'go broke—that
ings back into business or create the losses will be high. I doubt
this, if we are careful in making
reserve against a downward spiral
the loans, in giving management
of business.
•/"
r
■
hand by
for
non-confidential tech¬
As to the
am
of small businesses
close
WALLACE
Due March
To the Holders of
as
with better
a
ceWj profits
•
a
Treasurer.
Ten-Year Convertible
of
contracts.
fears
that
the
HUNTINGTON,
Notice of
1949,
a
exemptions
Directors
NATIONAL DISTILLERS PRODUCTS
dated
nical
plan.
plans
CORPORATION
this Corporation have de¬
MACHINERY
REDEMPTION NOTICE
would pay a
compete more effectively, as
well as to provide big business
conspicuous difficulties,
concerning the experiment period of years with carry-overs
and carry-backs for losses and
should not be dismissed lightly.
The gain to be made from easier gains. This would help new busi¬
ness to get started.
business dealings between Italian
2. Exemptions under the excess
civilians and the American army
Is less than the possible loss of profits tax should be increased
beyond the present amount of
prestige if the monetary experiW tnent
fails. The President ad¬ $10,000—to something like $50,000. This exemption might be re¬
mitted to reporters in February
out
reasonable fee
Primarily the
aim here is to give the small man
a
chance to develop new tech¬
for
can
three day
Conclusion
hearing.
Then Congress should
The
arrity 'has attempted, to give tax relief to little business.
As to exactly what should be
solve its currency problem in a
complicated and somewhat ob¬ done, I have no final answers.
But I do believe that at least the
jectionable way when a simpler
method would have done better. following are true:
1, Tax exemptions for new bus¬
Although Allied Military Curiness should be allowed so as to
rency has so far been issued on a
risk taking.
There
relatively small scale and with¬ encourage
three
K.
1944.
these services.
man
So has
Congress should
together and give each of
these
been declared,
stockholders 01
on September
1944.
cannot
for his own lab¬
oratories. And if the government
renders any other than ordinary
laboratory services, it should be
understood that the small business
corporation taxes.
The
Committee for Economic Devel¬
get
12,
Treasurer.
DUNCAN,
Preferred
business
patents for
for acquisition
The small business man
To Encourage
opment
has a
Beardsley Ruml.
1944,
of
close
September
NO
be
has
to
company
16,
the
afford large sums
When we get to taxation, no¬
carried out on a body but a miracle man could
present a plan in a few words.
English and American
Leon Henderson says there should
of
basis
.
S.
of
dividend of 37Vzc per share on the*
capital stock.
They have also de¬
clared a dividend of 62
per share on the
Common capital stock.
The dividends on both
Preferred
and
Common
stock
are
payable
October 5,
1944, to stockholders of voCOrd at
The
clared
share on the Class
G.
22,
,
fiij.
Business Should Be
cents
American
VIL.
Taxation
this
October
at
record
niques.
u-
50
SHOE
of the largest companiescartels—which I have
the lap
brief, there must be loans to
big' business.
a
270
No.
of
payable September 30,
closed.
be
have
inventions
time been
some
the
the
bank—not
of
stock
payable
conditions,
long-term ajready mentioned. This must not
not available for small
be allowed to happen again.
■
have, money as easily
reported from
was
DIVIDEND
for
1944 of 50£ a
of Underwood
In the past European
fallen only into
alty basis.
sound, enterprising business. Now
and hereafter small business must
Switzerland
a
year ago that in Italy "large
business
transactions have for
It
Telegraph Co.
dividend
their
sale in this country
not
UNITED
A
year
stock
by small businesses here on a roy¬
ment.
of the ^yorld are
with American
and glad to accept ,it. Aftef
ple in most parts
well, acquainted
'
the
with
offer
the
Company,
COMPANY
held
dividend
stockholders of record at the close of
September 21, 1944.
Transfer books
to
business
The Western Union
A
can
Fisher
a
of
i
meeting
a
common
C.
should also be es¬
tablished whereby inventors and
small businesses in post-war Eur¬
ope
Elliott
1944,
the
at
declared
Directors
1944,
quarter
on
v':\ '
FISHER
ELLIOTT
of
14,
third
the
share
will
of all the
use
Board
The
Common Stock
of business on
HANSON, Treasurer,
L. G.
September
BROWN, Treasurer. *
ROBERT B.
'
V
UNDERWOOD
of
business
1944.
A mechanism
position of small concerns are not
widely known.
Banks must be
vigilant in their use of depositors'
money, and if conditions are un¬
certain, banks may not be able to
make loans.
Also, under present
full.
financed
not be¬
people.
Generally speaking, small busi¬
ness is handicapped in investment
markets because the name and
of the facts that: (a)
the
for
1944 to Stockholders
September 19,
1944.
The stock record
books will br closed
for the purpose of transfer of stock at 'the close
of business September 19, 1944, until October 1,
licenses.
people have financed
be
1944 to holders of
record at the close
October 2, 1944.
Manufacturing Company has declared the regu¬
lar
quarterly dividend, of $1.25 per chare on
the Preferred Stock and a dividend of 50c per
share of the Common Stock of the Company.
Both payable October 1,
Record at the close of
Stock, payable October
the Common
of
V.4
\
of 75c per share
quarterly dividend
14,
COMPANY
1
,
been declared a regu¬
There also has
Directors of the American
of
Board
The
,
non-exclusive
the
What
r
West Streets
New York
and
Brooklyn,
possession of any
sole
through
October 16, 1944.
on
Noble
the respective series
of business on
at the close
record
of
'
MANUFACTURING
AMERICAN
be
overdone in view
loans are
the bills are
business.
largely in English; (b) the sol¬
The answer lies, in the establish¬
diers are paid in large denomina¬
ment of a system of credit insur¬
tion bills and the frequent lack of
ance similar to the plan used by
small bills makes it difficult to do
FHA in which the banks make
business; (c) barriers are put in
the loans and the loans are in¬
the way of using and accepting
sured through small, individual
Italian money; and (d) the public
fee.
This brings the 15,000 banks
is
allowed to
believe that the
directly into the program with the
money may not be redeemed in
business
man
dealing
directly
Italians appears
Philadelphia 32, September 8,1944
single concern. Rather they should
made available to all business
will not be available
able
Preferred Stock of
developed
ing the war and in plants
by public funds should
Congress
banking
have
Series, have been declared pay¬
November 1, 1944 to holders of
<LVa%
Secretary and Treasurer
lar
products, thus benefit¬
the
quarterly dividend of $1.12 V2 per share
the Cumulative Preferred Stock,
on
-
-
products
come
,
H. C. ALLAN,
ing everyone.
New techniques developed dur¬
to money.
the
';
greatly in this war. These should
be made available to small busi¬
ness.
The Department of Agricul¬
ture informs farmers of new ag¬
ricultural
Checks will be mailed.',
to
'
New
the
18, 1944.
money
no
Stock,
stockholders of record
close of business on September
ber 30,1944, to
at
share on the Cumulative Preferred
4 V4 %
Series, and a regular
per
payable Septem¬
the Common Stock,
quarterly dividend of $1.06 V*
A regular
dividend of fifty cents ($.50) per share
perfect the ideas.
Good business suggests assistance
manpower.
unless
often
too
which
with
held up because
But money
but
ideas,
Philip Morris & Co. Ltd. inc.
Accumulated Surplus of the Company a
on
York, N. Y.
September 15, 1944.
declared from the
The Directors have
the service its name
implies.
This or some agency
should expand this activity. We
have
found small business has
Many
of the
available now, and
are
Quarterly Dividend
which gives
production can only be
of the absence of
civilian
ership.
•
keep
New
Depart¬
Agriculture now gives to
the American farmer. The SWPC
has a Technical Advisory Service
available.
materials
tiple-rental plan.
Further, every effort must be
made to get properties into the
hands of local and regional own¬
•
will
176th Consecutive
;
ment of
»
relaxation
terials
company
I propose
business com¬
parable to that which the
PHILIP MORRIS"
The Electric Storage Battery
development.
service for small
a
presumed that the policy
is
It
to
comes
technical
do with them.
Certainly, it is agreed that they
should not all, be scrapped. Nei¬
ther should they go, at bargain
Call for
always la¬
differential
research and
when
Shackled By Lack
*
-:
has
business
under a heavy
VI.
Business Must Not Be
Benefit
Technological
From
Small
V :
Have
Should
bored
V.
Small
•,
•!
I'
.
Business
Every Opportunity to
(Continued from page 1265)
I
*
Small
DIVIDEND NOTICES
DIVIDEND NOTICES
"
s-t
employment.
*
0
rious reasons.
resources
the full
must be
One is that
of the nation
(Continued on page
1271)
1270
THE COMMERCIAL & FINANCIAL CHRONICLE
Social
if the worker must finance per¬
iodic unemployment, it is more
complex. Society therefore recog-
new
the expense of the old.
the
need
of
new
forms
of
businesses
protection. Moreover, the trend is
road
toward
automobile
increasing social
an
con¬
sciousness. Thinking people recog¬
nise, too, that
tection
ciety
are
The
forms of pro¬
to keep so¬
Isolated cases of
new
consumer
may
York
1911
the
State
of
be
pioneered in recognizing in
curves
law the fact that
workers
inevitably suffered tem¬ upon
or
permanent disability. alike.
porary
Those
demand
industrial
some
obtained only at the price of
complete regimentation.
their
and
men
needed
master
a
producer
The
It would
plan imposed
and
consumer
remedy
would
The deny
be
financial
diseases
well. Workmen's
as
something to this argument.
whatever stability monopoly
establish
But
may
easily be offset by
the
stagnation which generally
ensues.
This encourages under¬
employment. We must understand
can
from—we
com¬
petitive
that
preserve
means
must be
willing to endure
the risks of that competition.
we
We
are
accustomed to view
production
fluctuations
our
terms
in
ft****"
V
of business graphs alone; we ihust
Yet, workmen's compensation is not forget that they also are meas¬
only one aspect of social security. ured in numbers of jobs.
If it is safe to extend it to combat
this industrial hazard, has it been
The
find
easiness and
phrase
among"
some
Doubts
be summed up
can
social
security?
1
of
cost
broad social
a
security program?
3. Does social
security
remove
the incentive to work and turn
-
into
a
:'striving
nation of drones, each
to live at the expense
can
be
no
categorical
an¬
e The
term "social security" is
relative, not absolute.
The an¬
be phrased
not
can
in the
simple "Yes", or the definite "No",
rather
in
the
uncertain
what degree?"
A
in business admit the
we
and
necessity of insurance
for our own protection, should we
not grant its value as a protection
for
employees?
Let us move quickly to the next
question: What kind of a social
security system should we have
our
and what about its cost?
degree
be greatly multiplied and
risky enterprises could not
"To
;
^
of
therefore,
of
uncertainty and,
insecurity, is the
price that
we
in .the United States
Business
social
our
should
by
be
in
and
state
roll
taxes
do not
it is by far the lesser of two evils.
It should not unduly
discourage
employment
investment,
or
es¬
pecially if any rate increases are
imposed slowly and spread over
period of time.
a
How to divide the cost of social
security between employer and
employee is a puzzler.
If we in¬
toward social security totals about
Such
5V2%
should
programs
be
kept
of his payroll, in addition
to
minimize
the
bureaucracy and
ington control.
evil
effect
of
Wash¬
remote
Too
used
as an excuse
assume
the
As to the cost.
it?
This is
serves
a
responsibility.
Can
fair answer.
a
under
It de¬
increase
The overall
of money
required for
nationwide
social
security
plan is sure to run into big figures.
amount
any
In
these
days
of
staggering
national debt, the first instinctive
reaction
to any social security
proposal is that it will be too
pensive.
I
am
all for governmental
and
omy
the elimination
ex¬
penditure is inaccurate.
costs
we
for
of
As
overhead
convert
profits
costs
into
will
losses.
a na¬
have been paying such
human
These
losses will bankrupt the
enterprise if persisted in long
enough.
Overhead costs are the
hit-or-miss private charity, local
poor relief, the federal boondog¬
gling of an earlier day.
To me,
makes
We
sense.
consideration
will
get
far more for
money invested in
social security than from the bil*
lions spread for relief
during the
proposes
to
the
employer's tax rate
present federal levy of
the
4% (1% for old age annuities and
3% for unemployment compensa¬
tion) to
a total of 6%, an increase
50%, while the employee con¬
tribution would jump from the
present 1% to 6%, a rise of 500%.
of
Business
and
the
country
to
assert
jority
of
that
he
would
dole than* a job. : I
that the vast ma¬
a
the
American
people
employment and
they will produce better
when their haunting fears of un¬
employment have been alleviate# !
Of course, there may be a few I
individuals who prefer mere ex*
want productive
that
istence at the expense of others to
the greater satisfactions to be
won
through productive work, but
our
cannot be
course
governed by this
negligible minority. No one pro¬
poses to suspend operations on the
railroads
because
hobo
a
some¬
times gets a free ride.
No society could possibly
vide
good
as
pro¬
standard of living
a
for its needy as they themselves
could
attain
by exerting their
efforts.
own
and
work
Incentives for thrift
be
maintained.
must
Business
men and other groups in
society, by taking an interest in
social security,. can help to keep
the social security program real¬
istic and thus safeguard the in¬
centive
system.
The utmost that
we
can
than to accept this
worse
Why don't
careful
vise
business
a
attention
and
de¬
taking
into consideration the desirability
for preserving our most valued
resourceT-rthe human one.
mi
j
Thus
far
!
program
have
said
nothing
about
voluntary group insurance
insurance policies taken out
and
on
of
individual basis
an
to have gone as far
in
expect
as
a
far¬
or
the
promise of adequate
social security
than the Demo¬
cratic party.
'
rf
Under
these
circumstances, do
really believe
security will be' re¬
business
any
that
social
men
pealed?
-'i
Business is
the
of
costs
now
social
the credit is
give the whole
we
matter
pens
ther
could
50-50 arrangement.
un¬
years; we will continue
to pay them so
long as the Amer¬
ican people are
this
from
do much
econ¬
of
the
be¬
of social security is a minimum
ployer pays 84% of the total, as, level of basic
protection.
compared with only 16% con-,
Social security is here to stay.
tributed by the worker.
I think
The principal countries of the
this proportion is out of balance world
have it. All polls of pub¬
and I am happy that
many labor lic opinion show the vast
majority
people agree.
of the American
people demand
The adjustment of this propor¬
it.
The recent Chicago platform
tion has aroused much discussion
of both political parties endorse
in and out of Congress.
I would it. The Republican
party, to which
like to point out that one plan
many business men belong, hap¬
afford
we
fair question.
level
to
insult to the American
an
convinced
am
Pay¬
development clude workmen's
compensation,
security system unemployment compensation, and
far as possible, old-age
annuities, the present con¬
local governments tribution of the typical
employer
unwilling to ig¬
Therefore, when his bus¬
into a tailspin, he
goes
knows that
It is
worker
rather have
under the
come
protection
low the subsistence level.
world, we must provide every
possible incentive to our 2,000,000 job-making employers to
put
their payrolls.
only purpose is
minimum
a
prevent
plane of living from falling
a
more men on
provide
basic
deterrent to greater employ¬
ment.
Certainly in the postwar
as
rather than at the national levels.
nore
iness
to
necessary check against excesses.
As for payroll taxes,
they serve
so
misfortune.
Any business man has an over¬
The decision is not whether we
whelming interest in the continu¬
shall meet social security
costs,
ity of his production, and thereby
but how we shall meet them.
jobs and wage payments.
He
Social security substitutes an
knows he has certain inescapable
overhead costs regardless of the orderly, systematized setup for the
volume.
Social security's
pay¬
I think that further
in
tion,
soon
swer to these three questions,
but
value
risks, how¬
are some
undertaken at all.
believes in insurance.
of the others?
^-There
most
initiative, his
own
be
2. Can the United States afford the
swers
eco¬
necessary expenditures.
But to
think of the cost of social security
as a new and unprecedented ex¬
some
questions:
Why does the United States
need
tween benefit payments and
modern
would
un¬
"
us
of
ever,
which he lets insurance
companies underwrite, such as the
hazards of fire, flood or fraud.
Without these insurance carriers,
the worries of the business man
alarm, whenever the
security" is men¬
in three broad
his
relies
man
resourcefulness and his individual
"social
tioned.
on
effort* There
#
I
business
heavily
dangerous to apply it to alleviate
other forms of insecurity so in¬
herently a part of modern life
such as unemployment and old
age?
/
this is to deny the
hazards
Since
com¬
This
conception of what can be pro¬
vided by even the most liberal
system of benefits.
life, Classification of incentives.
to deny the vulnerability of the
But a payroll tax affects
all
wage-earner to unpredictable mis¬ employers more or less
equally,
fortune, and to deny the validity and can be absorbed into the* cost
of the principle of insurance.
structure.
On the
whole, I say
states
must
business.
tiori
Yet
the
than the disease.
worse
pensation is accepted as an order¬
ly way of meeting one of the
great economic hazards inherent
in modern society.
Show me an
employer who advocates its aboli-
1.
nomic
frequently States' Rights is
for a do-nothing
policy.
If we really believe in
States' Rights and really want to
that if we really want to pre¬
industrial
accidents.
In serve free enterprise—and all the keep this program close to the
cases it takes in occupational individual benefits that flow there¬ people, then we must see that the
cover
Furthermore, gen¬
financing would des¬
direct relationship be¬
close to. the people, to the em¬ to the cost of
any voluntary plans
he may have adopted.
In con¬
Monopoly and cartels are fre¬ ployers, the employees and the
taxpayers. Locakahd administra¬ trast, the worker himself now
quently praised for the stability
tive interest is of the essence of has a
compulsory deduction of
which they are alleged to bring
the democratic process.
It helps only 1%. This means that the em¬
to an economy.
There may be
families
help.
So, a
system of compulsory insurance
was set
up to provide cash for
medical expenses and living costs
for the injured workers from a
fund built up by assessments on
all employers.
The cost of dis¬
ability became a part of the cost
of production.
Now every state but one has
adopted this same principle to
many
levies.
revenue
age, illness
ing cushion of a practical, work¬
ing social security system.
rise and fall by
his collective decisions.
We sold
New
old
as
ism must have the shock-absorb¬
that,
or
these
provide for
So, what should we do about it?
Adopt a policy of laissez-faire?
canal; the
Let George do it?
I say, NO!
the horse.
I say that our dynamic capital¬
spend
his
can safely be left to
a
million motor cars in 1932—
charity, but mass misery requires five million in 1937.. People gen¬
organized protection or else the erally—and perhaps unconsciously
pressure of discontent may build —may decide that new housing is
too expensive; then we have a
up to explosive proportions.
Hastily improvised measures are construction collapse. The inves¬
tor may lend his savings to one
rarely satisfactory.
As an ex¬
ample, look at the WPA of de¬ company or to another, or he may
choose to hoard.
The investment
pression days.
The development of workmen's of new capital, whether producers'
compensation laws illustrates this capital in the form of new plant
process of evolution.
At the turn and
equipment,
or
consumers'
of the century, a worker crippled capital in the form of
housing,
in the course of his normal em¬ automobiles, and refrigerators, al¬
ployment could sue his employer ways has moved by fits and starts.
or look only to private charity for
Complete economic stability can
In
to
dustrial life?
misfortune
aid.
him
and dis¬ roll deductions. This relationship,
ability.
Isn't there some way of inherent in the insurance concept
avoiding these evils of modern in¬ of social security, serves as a
up at
The rail¬
for this product
money
and sales
necessary
stable.
the
displaces
supplants
for
the other economic hazards of life
built
are
troy
such
(Continued from page 1244)
nizes
eral
difficult
Security And A Dynamic
Capitalism fllllll
Thursday, September 21, 1944
paying most of
security.
But
going to the welfare
worker, the social uplifter and the
politician.
I want American bus-
ihesi? to receive its sharef pf the
credit;
But in order to do this,
business!
must
providing
take
the
lead
sound, workable
a
jn
pro¬
gram.
^
Business
means
must
recognize that
a
against misfortune dynamic capitalism is a risky cap¬
and old age.
I would be remiss if italism both for the investor and
1 failed to pay a tribute to the
the worker.
To preserve and ad¬
insurance industry. We have 68,vance this dynamic
capitalism, we
000,000 persons with private life
providing
insurance.
some
Twenty million
hospital insurance.
surance
fronts.
are
carry
form of voluntary or group
protects
Casualty in¬
us
on
should do all
risks,
we
without
to reduce its
can
providing
we
destroying
do
so
drive,
its
can
its
many
Other insurance programs
energy
and
its
expansion.
Un¬
avoidable risks shoUld be insured.
doing their part.
Despite the growth of govern¬ In 'many cases private insurance
ment-sponsored
social
security, or group effort is the best remedy;
Social security is not
I like to ccimpare the situation
solely an the bulk of the load is still being
in other
cases
public action is
of the business man with that of expenditure.
Properly set up, it carried by individuals through
is
an
actuarial
Business men should
the workingman.
proposition
in their own decisions and savings. desirable.
I am convinced
which the out-go shopld be sub¬
that they have common interests
I hope this always will be the case. use their experience and knowl¬
and that these common interests stantially balanced by the income. We should never
attempt to do edge to assist in the formulation
Carried to extremes, it can de¬
outweigh conflicting ones.
collectively, by law and coercion, of social
security policies and in
generate into a governmental dole what we can do as well or
better
For instance, in modern society
and
the administration of adequate
those
who
advocate
such
a worker also has an
by voluntary effort. - Freedom of
overhead.
heavy-handed largess at govern¬ decision and self-reliance in ac¬ programs.
It
is his constant worry. Pre¬
ment
expense
are
doing social tion have made America.
The
As
business
men
we
viously under an agricultural so¬
know
security a disservice.
achievements of our great private
ciety, the individual could rely
that a chain is no stronger than
on
Broadly speaking, there are only insurance carriers have been great.
his garden, his
orchard, his
its weakest link.
Always remem¬
flock or his woodlot for minimum two ways of financing social se¬ The success of private health and
needs.
But in a 20th Century in¬ curity: from general revenues, or hospitalization group
operations, ber, therefore, that society is no
Each has its privately conducted, proves that stronger
dustrial system, the worker's sole by pay-roll taxes.
than its
least
secure
business man's constant worry.
late depression.
-
deliberately*
for
pay
Historians tell
progress.
that the Middle
us
Ages
were characterized
by great
stability and security but showed
little
progress.
been
characterized
progress
system
by
has
enormous
coupled,
however, with
insecurity.
There
considerable
always
Our
is
conflict
between
progress and security.
But this
conflict need not be
irreconcil¬
able.
I say that we can
provide
finds he also has
greater economic security for the
individual without
sacrificing our
avoidable
a
characteristic march forward. The
preservation of
pends
A
upon
our
economy
that solution.
competitive
enterprise
tem, coupled with freedom of
sumer
de¬
sys¬
con¬
choice and freedom of in¬
income
is his wage.
head
which
is
or
on
a
The worker
minimum
persists
whether
off the payroll.
expenses
such
or
His
he
un¬
rent,
install¬
as
mortgage- payments,
contracts, grocery, light, gas
telephone bills must be paid
monthly.
If
he
is
idle
long
enough, he also goes bankrupt—
ment
or
even
process
worse—on
destroys his
relief. ; This
way
of life;
group
Take the first.
If you rely upon
revenues to
meet social
general
security payments,
you
additional
on
corporate
income
taxes, the
and
burden
individual
chief
and
vestment, decisions, is an unstable disorganizes his
family and its re¬
system precisely because it is free.
lationships; destroys his commun¬
New inventions, new
techniques, ity credit
disadvantages.
over¬
sources
of those
place
an
revenues.
Our national debt and fiscal
re¬
medicine
can
through private
be
provided
and
patient.
However,
this
we
problem
standpoint.
'
:
considering
are
from
We
are
the
looking at the
threaten to
tection for all of
have
driven
heights which
destroy the incentives
to
invest, /or to undertake risky
enterprise, or to launch new ven¬
curity
tures.
more
What
we
must have is re¬
standing.Furthermore,' duction, not further, increases in
c-j
Some
work.
may
will
our
people.
that
say
make
attractive
:,
..
social
an
to
interesting situation, according
analysis prepared by Steiner,
an
Rouse
York
&
Co., 25 Broad St., New
City, members of the New
York Stock Exchange.
se¬
unemployment
than
P. R. Mallory & Co., Inc., offers
broad
income tax rates to
already
-
Mallory Interesting
lt'Jw,
necessity, in a risk-taking econ¬
omy, of providing minimum pro¬
quirements
members.
initiative, under
the guidance of private physicians
and with free choice of physician
productive
That is based upon a mis¬
this
analysis
Steiner,
quest.
may,
Rouse
&
be
Co.
Copies of
had
from
upon
re¬
1271
Volume
Number 4318
160
non-cumulative series 2
4%
Calendar Of New Security
-■t:
Underwriting—To be supplied
OFFERINGS
registration
common stock
and
issued
new
sent
12,500
WHEEL CO. has
(par $4).
The shares are
not repre¬
company.
outstanding and do
financing
by the
shares may
be reoffered at
private
26,323 shares are
to be offered to public. The balance, 32,767
shares are to be retained for investment
br resold to /certain family trusts for in¬
vestment at S5.25 per share*.
Braiisford
sale at $6 per
&
Edwin
O. Kalman, Paul R.
White are considered
Doels
to be
principal underwriters'. Piled July 27, 1944.
Details in. "Chronicle," Aug.. 3, 1944.
Braiisford & Co. and Kalman & Co., Inc.
offered1 26,323 shares on Sept. 20, 1944
it $7 per share.
29,
for
$12,000,000 25-year sinking fund deben¬
tures due Aug. 1, 1969.
Company planned
to refinance its entire outstanding debt by
the issuance and Sale to the publip of
$12,000,000 debentures and the concurrent
issuance and private
sale of $30,000,000
general mortgage. sinking fund
bonds;
BROOKLYN
filed
1941
a
UNION GAS CO. June
registration statement
will
by amend¬
applied
be
,
to
organization expenses, acquisition of motor
trucks,' real estate, buildings, machinery,
etc.
?
Registration Statement No. 2-5468. Form
S-l. (9-13-44).
Filed May 19, 1944.
INSURANCE CO. OF AMERICA
registration statement for 48,981
shares
of capital stock
(par $5).
Shares are to be offered for subscription to
filed
RESISTOFLEJC CORP. has filed a regis¬
statement for 100,000 shares of
common stoclC*T$l par).
,
Address—39,; Plansoen Road, Belleville,
tration
N.
stockholders
on
a
capital
shares
record
May 31,
and
surplus funds.
Unsubscribed
to Lumbermens Mutual
will be sold
Casualty
29,
of
rata basis at $8 per share.
will be added to company's
pro
proceeds
1944.
Filed May
Details in "Chronicle," June 8,
Co.
for
investment.
1944.
Business—Manufacturing products from
chemical composition called Compar.
tration
lative
York|
Inc., New
Offering—Price to the public $4 a share.
Proceeds—For additional working capital.
2,5469. Form
Registration Statement No.
(9-16-44)._
S-2.
FLORIDA POWER
CORP. filed a regis¬
statement for 40,000 shares cumu¬
preferred stock (par $100).
The
dividend rate will be supplied by amend¬
ment.
Net proceds from the sale of the
with addi¬
to the ex¬
follows:
cumula¬
tive preferred at $110 per share $3,163,820;
redemption of 5,940 shares of 7% cumula¬
tive preferred at $52.50 per share $311,850;
donation to Georgia Power & Light Co. to
be used for redemption of certain of its
securities as provided in recap plan of that
company $1,400,000;
payment to General
Gas & Electric Corp. for 4,200 shares of
$6 preferred of Georgia Power & Light Co.
$75,600, and expenses $80,000, total $5.031,270.
Stock is to be offered for sale by
the
company
pursuant to Commission's
competitive bidding Rule U-50, and names
of underwriters will be filed by post-effec¬
tive amendment. The succesful bidder will
name
the
dividend rate on the stock
Filed July 21, 1944. Details in "Chronicle,*
new
preferred stock, together
funds from the treasury
tional
required, are to be applied as
Redemption of 28,762 shares 7%
tent
PRODUCTS CORP.
registration statement for 80,cumulative convertible
preferred stock: (par $20) and 160,000
shares of common stock
(par 50 cents).
The common shares will be reserved for
LIBERTY AIRCRAFT
has filed a
(Continued from page 1269)
ployed at home in civilian or gov¬
ernment occupations, that proba¬
bly 20 more million are now gain¬
fully employed than ever in our
production, and
private
capital can flow into
projects which are for widespread
public use, such as airports, sewer
developed. Labor,
systems,
schools,
hydro - electric
and all types
projects, highways,
of
irrigation
and
reclamation
works, con¬
are a part of
projects. Thus, public
J.
Underwritingi-Herrick, Waddell & Co.,
a
A
a
present
Net
THURSDAY, OCT. 5
Details in "Chronicle,"
,
.
Small Business In
Democratic Society
The Place Of
EXCESS
nas
1944,
share and
and C
Co.,
ind
warehouse
\ May 25.
Proceeds—Proceeds
preferred, par
$100 per share.
acquisition of factory and
buildings and additional trucks.
for
Proceeds
ment.
filed a
statement for 71,590 shares of
ATHEY TRUSS
Flotations
Price to the public
$100.
(
structive in nature,
modern
the
free
enterprise sys¬
>0
history.
When
ceases,
military
7.
■' '
production
and there is nothing
in its
place, it would be possible to have
a great many million unemployed.
Therefore, besides civilian pro¬
duction, we must have the public
works program.
This should in¬
that clude all the obvious necessities
reconversion must be accomplish¬
of the
local, state and Federal
ed immediately the war is com¬
governments. Specifically, how¬
pleted by "free enterprise" as ever, the present bill in Congress
though there must be no public for three billion dollars in high¬
tem.
I
hear reasonable men say
believe people
ways should be adopted without
this, or even want delay.
this, because public works are an
Mr. Chairman, the presentation
3%% series, due Aug. 1,1969.
essential part of any kind of so¬ of these ten points is a program
issuance
with respect to the exercise of
In amendment filed with SEC Aug. 10
the
conversion$rights of the preferred
ciety, capitalistic or otherwise.
not only for little business, but
company proposes the issuance of $30,000,Stock.
:
As to public financing, or pub¬ for the United States.' These ten
000. general mortgage sinking fund bonds
Address
Motor Avenue, Farmingdale,
due
1969 and $12,000,000 25-year sinking
N. Y.
;f
■
lic spending, which may or may points naturally don't cover every¬
fund debentures due 1969, to be sold pur¬
Business—Engaged in the manufacture
not be the same thing, I will give thing.
suant to Commission's competitive bidding
and processing qjt parts and equipment for
But implicit in this plan is the
no
answers.
But I ask, can we
rule U-50.
aircraft to customer's specification, upon
Offered—The $30,000,000 general mort¬ .order. '
'
suddenly stop spending eight bill¬ idea of "go ahead"—and go ahead
Underwriting-—«. H. Rollins & Sons, Inc.,
gage sinking fund bonds, 3(6% series due
We talk about D, X, V, VE
ion a month, as we are now doing NOW.
1969 were offered Sept. 20 at 102 Vz and
and Van Alstynd^ Noel & Co., both of New
for war?
Will private enterprise and other days, as though when
interest by Halsey, Stuart & Co., Inc. and
York, are name| principal underwriters. July 27, 1944.
assaciates.
The issue was awarded Sept. Others will be named by amendment.
suddenly jump up and take up all some letter has flashed in the sky, a
18 at 101.10.
Offering—The A shares
of new $1.25
GERMANTOWN FIRE INSURANCE CO
we
will do certain things.
The
the slack at once?
The $12,000,000 25-year 4% sinking fund
cumulative convertible preferred stock will
has filed a registration statement for 50,
debentures due 1969 were offered Sept. 20
be first offered to the company's common
000 shares of common stock, $20 par, and
Roughly speaking, our economy point is that without benefit of
at
102.875
and interest by Harriman, stockholders at the rate, of one share of voting trust certificates for said stock
the alphabet or any abacadabra,
Ripley & Co., Inc. and associates.
The preferred for each 3(6 shares of common Policyholders of Mutual Fire Insurance of is double; you know the figures. that we must wait no longer on
issue was awarded Sept. 18 at 101.0796,
stock.
The record date and the sub¬ Germantown
are
to have
pre-emptive It may be said that then with men
these ten points—we must move
scription price will be filed by amend¬ rights to subscribe for the common stock in the service, and the people em¬
; THE UTAH RADIO PRODUCTS CO, has
in now.
Everybody talks about
ment.
r
*
; ■ at $20 per share in proportion to the
filed a registration statement for $1,175.Proceeds—Net proceeds will be applied respective premiums paid by them upon
reconverting little business first,
000, 10-year, 4 Vz %. convertible debentures
Insurance policies issued by Mutual.
Vot¬ shares of $5 preferred stock at $105. Both
to the reduction of a bank loan of $1,but we keep waiting on the alpha¬
issues are to be sold at compttitive bidding.
and-146,875 shares ($1 par) common stock
000,000, and excess proceeds, if any, will
ing trust certificates representing shares
for issuance upon conversion of the deben¬
be added to working capital.
A portion not subscribed will be offered to the gen¬ Interest, dividend rate and offering price bet, or is it big business?
Filed
tures at any time prior to Sept. 16, 1954 of the excess net proceeds might be used eral public at the game price. All stock¬ will be supplied by amendment.
Two more points must be em¬
Aug.
26, 1944.
Details in "Chronicle,"
at rate of 12(6 shares of common for each
holders will be asked to deposit shares in
for the acquisition of part or all of the
phasized: One, governmental ser¬
$100
in
debentures.
Underwriters are manufacturing facilities presently being the voting trust for a period of 10 years Sept. 7, 1944.
Written proposals for the purchase of
Cruttenden & Co., $200,000; Bankamerica
vice, and the other, the idea of
Filed
leased from a governmental agency.
The Bioren & Co, are underwriters.
$30,962,000 1st mortgage bonds and 180,Company, $200,000; Mackubin, Legg & Co.,
Detailjs in "Chronicle,'
prospectus stated the company anticipates May 29, 1944.
expansion.
000 shares of preferred stock will be re¬
$200,000; Paine, Webber, Jackson & Curtis,
June 8, 1944.
that its volume of business after the war
About government service. A1J.
ceived at 20 Pine St., N. Y. City before
$100,000; A. G. Edwards & Co., $100,000;
will be in excess of its peacetime business
12 noon EWT on Sept. 25, 1944.
Success¬ citizens should honor it. The rush,
Dempsey-Detmer & Co., $100,000;
The prior to the waf, requiring working capital
GULF STATES UTILITIES CO. has filed
ful bidders are to name the interest rate
First Trust Company of Lincoln, $100,000;
a registration statement for 120,000 shares
in exces of that required for its former
both psychological and physical,
Kneeland & Co., $100,000; First Securities
Stock on the bonds and dividend rate on the
peacetime business.
As of July 31, 1944, of $4.60 dividend preferred stock.
stock.
away from government service as
Co. of Chicago, $75,000.
Common stock¬ unfilled orders of Liberty Aircraft Products is to be offered in exchange for old
dividend
preferred stock and old $5.50
holders of record Aug. 24 are offered right
though it were endured as .a
Corp. amounted to approximately $13,200,THE
OLD
STAR DISTILLING CORP.
to subscribe to the debentures in ratio of
dividend preferred stock plus an amount
000.* Liberty owns 41% of the outstanding
one $100 debenture
for each 25 shares of common 6tock.of the Autocar Co., and'as of cash (to be named by amendment) and has filed a registration statement for 5,000 plague during the war, must be
Stock at 103 plus interest from Sept. 14,
Net proceeds from sale shares of $100 preferred stock, non-cumu¬ stopped. Government service was
of June 30,
1944, unfilled orders of the accrued dividends.
non-participating.
Price to honorable before the war, during
1944.
Rights expire Sept. 24. / Unsub¬ Autocar Co. were approximately $30,126,- of any new preferred not exchanged and lative and
public will be $110 per share; proceeds to
scribed- debentures will be offered to the
from sale of 20,006 additional shares to
000.
As of June 30, 1944, unfilled orders
the war, is now, and always will
public at the same price.
Net proceeds, of the Highway Trailer Co., another sub¬ be used (1) to provide cash required for company $100. Proceds will be used for
be.
It should not be regarded as
construction of distillery, $250,000; working
estimated at $1,159,029, are to be used for
exchange offer; (2) to retire $1,000,000 in
sidiary,
amounted to approximately $9,
capital. $250,000.
No underwriter named. either fashionable, cute or clever
expansion purposes and as an addition to 500,000,
bank loans; (3) for other corporate pur¬
;t M
Filed Aug. 14, 1944. Details in "Chronicle,"
working
capital.
Piled Aug. 18. 1944.
Preferred not taken in exchange
Registration Statement No. 2-5470. Form poses.
to look down on service to one's
Aug. 24, 1944.
offer to
be sold at .competitive bidding.
Details in "Chronicle," Aug. 24, 1944.
A-2.
(9-16-44);
country.
Filed Aug. 22, 1944. Details in "Chronicle,"
TEXTRON, INC., has filed a registra¬
Aug. 31, 1944.
This is important because if
Company will receive bids up to 11 a.m.
tion statement for $2,000,000, 15-year, 5 %,
NEW FILINGS
DATES fF OFFERING
EWT Sept. 22 for sale of 20,006 shares of
convertible
debentures.
Debentures will good people run. out on the gov¬
List
of
issues
whose registration
preferred stock.
The bidder to name the carry ( detachable stock purchase warrants ernment, and the "let business
statements were filed less than twenty
UNDETERMINED
dividend rate.
entitling bearer to purchase 40 shares of
alone" idea really takes root—
;We present
J below a list of Issues
days ago, grouped according to (dates
The exchange offer is to be made Sept;
common
stock for each $1,000 deben¬
whose registration statements were filed
which registration statements will
business and the entire economy
23 and is to expire Oct. 4, unless further
tures at $12.50 to Oct. 1, 1945, $15 to Oct.
twenty days 015 more ago, but whose
in normal course become effective) un¬
have not bees deterextended.
1, 1946 and $17.50 to Oct. 1, 1947.
De¬ of the nation, will get the worst
offering date#
less accelerated at the discretion of the
nknown
to as.
bentures will be convertible into common
deal
they ever got.
What iwe
mined or are;
SEC.
:
■
■; " .
stock on basis of 50 shares of common for
HANCHETT MANUFACTURING CO. has
ought to develop is that intelli¬
each $1,000 debenture of the proceeds $1,filed a registration statement for $450,000
bonds, 500,000 will be used to purchase U. S. gent and" patriotic men of all
ALVA
PUBLICS TERMINAL ELEVATOR first mortgage convertible 5Vz %
THURSDAY, SEPT. 21
Government tax anticipation notes making
faiths and walks of life should
veries A, maturing serially from 1945 to
CO. has filed a :'||gistration statement for
general funds of company available for attempt to build a government
ARKANSAS POWER & LIGHT CO. has $250,000 10-year>« % subordinated sinking 1964, and 45.000 shares of common stock
expansion of consumer products business
The shares are reserved for
filed a registration statement for $30,000,fund
note.
Proceeds will be used for ($1 par).
which
is
reasonable, workable,
issue
upon
conversion of $450,000 first and other corporate needs. In event stock
000 first mortgage bonds series due 1974.
the purchase of She real estate and the
mortgage convertible bonds.
Underwriter purchase warrants are exercised, proceeds fair, with a minimum of re¬
Proceeds together with cash from general
construction of *al one million i-bushel ele¬
will also be placed in company's general
is P. W. Brooks & Co.. Inc.. New York
straints but which acts with a
funds, if necessary, will be used to re¬ vator, with a th^ee million bushel head
funds.
Blair & Co., Inc. and Maxwell,
deem company's first and refunding mort¬
house.
No underwriter named.
Piled Aug. Proceeds will be applied to the reduction Marshall & Co. are named underwriters. firm hand when it involves piping
of bank loans.
Filed July 20, 1944. De
gage gold bonds as follows: $30,800,000 5s
8, 1944,
Details in "Chronicle," Aug. \7,
the right things.
Filed Aug. 24, 1944. Details in "Chronicle,"
tails in "Chronicle," July 27, 1944.
series due 1956 at 102%; $276,000 of 2.88%
1944.
Aug. 31, 1944.
Now about expansion.
Cartels,
series due
1956 at 100, and $185,000 of
2.73% series due 1959 at 100.
Bonds will
MIDLAND COOPERATIVE WHOLESALE
BIRMINGHAM>ELECTRIC CO. has filed
VERTIENTES-CAMAGUEY SUGAR CO
monopolies,
unreasonable !; re¬
be offered for salp at competitive bidding.
registration Statement for $10,000,000 has filed a registration statement for OF CUBA.—696,702 shares
of common straints means contraction ; and
Names of underwriters, interest rate and
first mortgage bonds, series due 1974. In¬
$250,000
subordinated debenture notes, stock ($6.50 par), U. S. currency. Of shrs
therefore less opportunities. They
price to public jfpi .be filed by amendment.
terest rate will bfe supplied by post-effec¬
bearing interest at rate of 4% per annum
registered, 443,850 are outstanding and
Filed Sept. 2, 1944. Details in "Chronicle,"
and maturing in five and ten years from
tive amendment.! Price to the public will
mean concentration of power and
owned by the National City Bank, N. Y
be
filed
by
pbst-effective amendment. date of issue. Notes are to be sola at their Several underwriters have agreed to pur¬
Sept. 7, 1944.
wealth in the hands of a few.
face value, only to members of the issuing
Company is a subsidiary of National Powi
chase ,$1,663,500
of first mortgage (col¬
Therefore we favor expansion—
& Light Co. whiqh is the sole owner of the
TUESDAY, SEPT. 26
corporation and individual members of its lateral) 5% convertible bonds of company
545,610 shares of; its outstanding common
corporate stockholders.
Proceeds will be due Oct. 1, 1951, owned by National City that is, new ideas, new products,
CENTRAL VERMONT PUBLIC SERVICE
used to increase working capital and re¬
stock.
The netf proceeds, together with
Bank, N„ Y. Underwriters propose to con¬
always the idea of more, not less,
CORP. has filed a registration statement
Filed June 12, 1944. vert these bonds at or prior to closing anc
such
additionaif/cash frpm its general duce bank loans.
for 37,856 shares of 4 V* % dividend series
and all this spread around.
Some
funds as may be'tequired, will be used for
Details in "Chronicle." June 22. 1944.
the 252.852 shares of common stock which
preferred stock, ($100 pari.
Company is the redemption, $t 101 and accrued inter¬
are received by the underwriters on
such people fear that too much will
offering to holders of its 37,856 shares of
THE MUTUAL TELEPHONE €01, HONO¬
est, of all of th$ company's first and re¬
conversion, together with the 443,850 shrs
be built and made for the people.
$6 dividend series preferred the opportunity
LULU, HAWAII, has filed a registration
funding mortgage, gold bonds, 4(4% series
to exchange their stock on a share for
statement for 100,000 shares
($10 par) previously mentioned, will make up th« But the answer is you can never
due
1968,
outstanding in
share
basis for the new 4%%
dividend amount of $10,009,000. The the principal capital stock. Stock will be offered to total stock to be offered. Harriman Riple) build or manufacture too much if >
bonds will be
preferred stock, with a cash payment and offered by the^ompany for competitive holders of presently outstanding 500,000 & Co., Inc., N. Y., principal underwriter
Filed Mar 29, 1944. Details in "Chronicle.'
the people do it themselves and
accrued dividends on the $6 preferred to
sale
pursuant
the Commission's com¬ shares of capital stock at par on basis of April 6, 1944.
the date of exchange.
The cash payment
get wide distribution themselves.
petitive bidding\$ule U-50.
The names of one share for each five held. Any stock not
which is to be filed by amendment is equal
taken by stockholders will be sold at pub¬
On top of thifc there will be just
the
underwriters, will be filed by postWESTERN UNION TELEGRAPH CO. has
to the difference between the initial public
effective amendment.
Filed July 22, 1944. lic auction. Proceeds for working capital. filed a registration statement for $24,603,- as many, and I believe more, risk
offering price of the 4(4% preferred stock
Filed Aug. 16, 1944. Details in "Chronicle,"
Details in "Chronicle," July 27, 1944.
000 convertible
debentures and an inde¬
and the redemption price of $107.50 per
people than before,
Company is inviting bids to be opened
Aug. 24, 1944.
terminate number of shares of class A
share of the $6 preferred.
All shares of $6 at noon Sept. 25%on the offering of $10,This nation has done a mighty
stock to be available for conversion.
Sub¬
preferred stock not surrendered in ex¬
000,000 bonds.
THE NARRAGANSETT ELECTRIC CO,
scription warrants will be issued to present
change will be called for redemption at
good job in this war. In fact, the
1J
A ' '?
has filed a registration statement for $31,holders of company's class A and class B
$107.50 per share plus accrued dividends.
ELECTRONIC
LABORATORIES,
INC., 500,000, first mortgage bonds, series A,
stock
entitling them to purchase $100 joint efforts of labor, industry and
Any shares of 4(4 % preferred which stock¬
has filed a registration statement for 150,3%, due 1974.
Bonds will be offered at principal amount of the new debentures the professions over the nation
holders do not take under the exchange
000 shares of cojbmon stock (par $1).
Of competitive bidding. Proceeds will be ap¬ for each 5 shares of class A stock or each
and of the leaders in Washington
offer are to be sold to underwriters at a
the jtptal 100,00(1? shares are to be offered
plied to redemption of outstanding series 8(6 shares of class B stock held on a
price to be filed by amendment for resale for the account yof the company and 50,in the legislative and executive
record date to be supplied by amendment.
A, 3(6% first mortgage bonds, due 1966.
to the public.
Offering price to the public 000 shares
fe£;| the account of stock¬ Filed Aug. 17, 1944. Details in "Chronicle," Proceeds plus whatever general funds are branches, have produced results
will* be filed by amendment. Filed Sept. 7, holders.
The proceeds from the sale of
necessary will be applied to the redemp¬
Aug. 24, 194*.
.
the like of which were never ac¬
1944.
Details in "Chronicle," Sept, 14, 100,000 share Will be used for additional
tion on Dec. 1, 1944 of $25,000,000 25-year
1944.
.
.
complished in any nation in the
working capital;^ Proceeds of the sale of
OHIO EDISON CO. has filed a registra¬
5% bonds at 105% plus accrued interest.
the remaining/59,000 shares will accrue to
tion statement for $30,962,000 first mort¬
Names
of underwriters and interest rate
history of the world.
MONDAY, OCT. 2
Norman>-Rr "KeVers
as oWiner of 27,000
to be supplied by amendments.
Filed Ang.
gage bonds, series of 1944, due 1974 and
What I want to see is that we
shares
and to.^illiam W. Garstang as
THE EUGENE FREEMAN CO. has filed
180,000
shares of cumulative preferred 18, 1944.
Details in® "Chronicle," Aug. 24.
find a substitute for war both
Proceeds together with
The directors Sept. 5 voted to direct the
registration statement for $300,000 trade owner of 23,000 shares. Braiisford & Co., stock (par $100).
and Shiilinglaw, Crowder & Co., Inc., Chi¬
$10,000,000 in bank loans, and $17,000,000 officers to formulate plans to invite com¬
acceptances.
psychologically and actually, and
1 Address —1009
West Harrison Street, cago, are principal underwriters. Offering of treasury funds will be used to retire petitive bids for the new bond issue.
go on and win the peace.
Let's
price to the public is $5 per share.
Regis¬ $43,962,000 4% series of 1935 first mort¬
Due to a decision of the N. Y. Public
Chicago.
Business—A
new corporation.
Eugene tration Statement No. 2-5463. Form S-2 gage bonds due 1965 at 103%%; $8,484,000 Service Commission that it has jurisdiction not give up after we've won.
(8-29-44).
4%
series of 1937 first mortgage bonds
Freeman,
according to the registration
over the proposed issue, the company has
Let's keep fighting!
due 1967 at 106%; 197,585 shares of $6
statement,
perfected
a
revolutionary
decided to defer the issue temporarily.
equipment Finance corp. nied a
series preferred stock at $110, and 1,367
method of dry separation and concentra¬ 1
registration statement for 14,000 shares
000
shares of $1.25
*
■■
—
■
....
,
.
works.
really
I
cannot
mean
J
■'
•
-
on
•
a
,
V. '
"
>,
r
.
?
a
t
tion
of ores.
THE COMMERCIAL & FINANCIAL CHRONICLE
1272
Teletype
NY
Firm
Carrier
Trading Markets
1-971
REMEMBER
...
New
Corp. Conv. Pfd.
England Pub. Serv.
Pfd. Plain
BRAZILIAN BONDS
IT is important to
Telephone
HAnover
Thursday, September 21, 1944
you, that as we
general'public,
with the
all Issues
do
Empire District Electric Com.
business
no
Micromatic Hone Pfd.
2-0500
Majestic Radio & Tel.
OIK whole attention is
OVEII
FOREIGN SECURITIES
50 Broad Street
THE
-
SPECIALISTS
-
yours, in making
firm trading markets in
and
accurate
P.ARL MARKS & P.O. INC.
Bendix Home
COUNTER SECURITIES
M. S. WlEN & Co.
(Actual Trading Markets, Always)
Members
New York 4, N. Y.
•
App.
40
N.
Y.
Security Dealers Ass'n
Exchange PI., N. Y. 5
AFFILIATES CARL MARKS & CO. Inc. CHICAGO
Teletype
X.
Y.
HA. 2-8780
1-1397
Kobbe, Gearhart & Company
"Our Reporter On Governments"
j
,#
«,
A
By DONALD MacKINNON
s
»
INCORPORATED
Members
L«'.
1
j
*
4
«''
.
'
heightened interest in the
price performance of partially-exempts, which interest has been
induced by the several plans which propose
especially excess profits taxes. ... We doubt
any reduction of excess profits taxes until the
our two wars have ended.
If the present
reductions in taxes—
that one will witness
excesses produced by
Administration is
...
re¬
believe it reasonable to assume that all forms of present
taxes will continue virtually unchanged for some time after Japan
elected,
TELEPHONE
a
we
York
NASSAU
45
--.J'; ~1
'',i
1
«■/
.
Of late, observers have manifested
New
STREET,
philadelphia
R Ector 2-3600
whatever
levels
that time.
►
EPT
.
then
if such a rally does not start prior to
exist,
As
yet,
York,
profits
of
day
the
the
in the
war
immediate
future.
.
.
The
.
realistic analyses.
such
of
loss
Vice-President
of
Trust Co.
is
.
cessively
Deputy
.
.
years
Not only recently,
as
he
period of the past two years, we
have had the opportunity to talk with many owners of partiallyexempts, some of whom are subject to excess profits taxes, and
others who expect to be this year and in 1945.
a
over
At
Loans,
Governor,
Mr.
in
suc¬
-
Large,
Assistant
Assistant
and
In 1936
appointed Vice-President,
was
which office he
now
holds.
Ridgewood, N.rJ., where he is
in Ridgewood;
President
President.
Gidney, who was born in
Santa Barbara, Calif., began his
banking career at the age of 16 as
budget
and
Associates.
of
the
the
of
Com¬
of Ridgewood,
past President
messenger in the Commercial
Bank of Santa Barbara, where he
Chairman
committee
munity Fund
Second Vice-
and
of Robert Morris
He will take up
Most
of
them,
have
an
prices, and
having
average
bought
partially-exempts
somewhat
cost
amortization have
through
materially below current levels.
.
.
below
for
present
established
collections three
values
pre-war
.
happen to be familiar.
To these men the thought of
prices in partially-exempts is considered academically.
Believing that the market is not going to disintegrate, the prospect
of dower prices induced by a reduction of taxes leaves them indif¬
...
lower
.
ferent.
are
may
prove
TAX
.
them wrong, but an increasing number
beginning to wonder whether the present time
another opportunity
2%s
.
.
L'LL' Events
or
not offer
to buy moderate additional amounts of the
the three longer 2%s.
REDUCTION
may
.
.
...
A
ury
day
Tax
or
excess
profits tax, but not until after
...
two prior to this announcement, Roy Blough, Treas¬
Research
Director,
wartime
period."
peak of
That
of
tax
told the
National
Tax
official duties
as
same
the
.
.
Association
meeting in St. Louis that "Without getting into detailed esti¬
mates, it is clear that post-war needs will call for Federal tax
as
large
as
the
for
Ways
the
purpose
ness
forward
most
that
taken,
ever
and
the
I
step
eco¬
country v has
am
proud
to
its inception."
Mr.
Fleming, who was born at
Ind., began his busi¬
New Albany,
of ago
when
career
years
on
not quite 18
Jan. 22,1898, when
he entered the service of the Third
National
Bank
of
resigned
from
post
1903.
Pittsburgh; he
of
dicated
as
in
teller
His later activities
are
in¬
follows:
.
and
.
.
purpose
.
.
Means
We cannot afford to make tax
.
of reducing the
of removing
a
any
may
service
Bank
of
tax
any
reductions
taxpayers,
taxpayer from the tax rolls.
be made in
our
or
.
.
.
tax system prior to
balanced budget, should be solely for the
was
of
Federal
Cleveland
of
as
Reserve
Auditor;
promoted to position of As¬
sistant Cashier, Jan.
1, 1916; As¬
Governor, Jan. 15, 1919;
Deputy Governor, Sept. 28, 1920;
Governor, Jan. 19, 1935; President,
March 1, 1936 to Sept. 16, 1944.
Organized Cleveland Loan Agency
sistant to
of
the
Reconstruction
Finance
Corporation and served as Man¬
ager from Feb. 2, 1932, to Dec. 1,
1932."
Mr.
XL.',
Fleming is
now
at St. Peters¬
burg, Fla.
of increasing
our national income, providing for busi¬
expansion and employment, and making, if possible, a more
purpose
the
was
nomically
tered
"
.
which will possibly reach their wartime
billion during the current fiscal year.
meeting heard a message read from Chairman Doughton
than it collects.
merely
my life.
As
know, I have lived with the
System continuously for about 30
years.
I believe its inauguration
you
Pittsburgh—resigned from post of
Nov. 16, 1914, en¬
those of the immediate
Committee which stated, in part:
"No business, not even the business of the great Government of
the United States, can long pursue a continued policy of spending
more
Bank of Cleveland will always re¬
main in my memory as one of the
Farmers Deposit National Bank of
than $43
House
that my
say
you
gentlemen
Federal Reserve
the
President of the
collections,
more
with
auditor in 1914.
times
or more
reaching the goal of
Returning to the possibility of any early tax reductions, let us
follow the suggestion of one of our contemporaries and ''look at the
record."
On Sept. 11, Mobilization Director James F. Byrnes
made public a reconversion outline which, among other things, prom¬
Japan is defeated.
attended
Adjustments, which
PROSPECTS
ises business freedom from the
He
Mr. Blough explained that the Treasury does not anticipate that
he amount of revenue needed after the war will be as great as
or
.
1908.
market
book
be specific, X, after amortization carries a block of
at
105.8—and he is not completely isolated among those investors with
we
until
and
to
with
"In 1903, entered service of the
some
To
whom
worked
Cleve¬
of
his
...
years
"I should like
association
ness
tion
Bank
shortly after Sept. 25.
President Fleming, in tendering
his
resignation, which was ac¬
cepted reluctantly by the board of
directors, said:
on
have been associated with it since
Gidney has been residing
President of the Board of Educa¬
Mr.
but
Teletype BS 69
happiest periods in
-
Federal Reserve Agent.
.
PERFORMANCE
of
Board,
ap¬
He became
Controller
Controller
.
.
PAST
Citizens
the
Gidney returned to the New York
Gidney
the
Controller-
brief period as
Buffalo, N. Y., Mr.
chosen by
with
Assistant
as
and
a
Federal Reserve.
the
known
New
of
Agent, Manager,
of
Mr.
exemptions
.
of
of
Cleveland
value to X than to Y. ... X is in the high excess
proval of the
profits brackets—Y is subject only to 16% surtax; but X may pay
Board of Gov¬
some excess profits taxes for an indefinite time, while both X and Y
ernors
of the
will continue tq enjoy exemption from normal tax.
Even with
of the Federal
a reduction
Ray Millard Gidney
of .excess, profits taxes there are at least four factors,
Reserve
Sys¬
among others, to be considered when one starts to think about selling
tem, to succeed President M. J.
partially-exempts.
These are: (1) When were the partiallyFleming, retired Sept. 15 after 30
exempts originally purchased? (2) What is the cost?
(3) What is
years as an officer of the Reserve
present amortized book value? (4) What will amortized book value
Bank of Cleveland, the last nine
be in one year, two years?
.
After
was
...
to be of greater
.
Branch,
Reserve Bank.
that excess profits taxes are reduced within
assume
Buffalo
of
the
Bank
successively
Federal Reserve
Chairman
Directors
1990
191?
Reserve
At-Large.
Board
HUB
the
of
From
or
C.
n a r
Tel.
SQUARE
MASS.
9,
land
Reserve
d.
i
a
OFFICE
BOSTON
Federal
York,
by
r
POST
10
to 1923 he was associated with the
on
B
European
member
a
Governors.
1914
LERNER & CO.
Re¬
Secretary to A. C.
as
then
of
Federal
-
Circular Available-—Send for Copies
Two years
the
ZYs
-
Div. Arrears Ctfs. 1814
B. S.
Federal
an¬
Sept.
11
George
joined
the
of wishful thinking rather than
However, let's
was
System
Board
Cleveland,
16,
he
Miller,
Bank
nounced
Bakersfield, Calif.
serve
New
of
effective Sept.
...
taxes
a
Following his graduation.
Gidney became general as¬
later
President of the Federal
as
Bank
theatre ends—and feel that estimates of reduction are the result
the
of
the
of
Reserve
have not heard or read of any proposal to "elim-
we
excess
graduated in 1912 with
Stocks Z7/s
University of California and
Mr.
Millard
Federal
valqe to all owners of partially-exempts, the exemption from
inate"
Giant Portland Cement
1-57G
york
sistant of the First National Bank
Appointment of Ray
Gidney,
Vice-President
possible that the decline in partially-exempts, which started
about July 10, unduly stresses the value of exemptions from excess
profits taxes? We believe this may be true, and know that it is true in
many instances; but hasten to add that we are not familiar with any
process or method which will permit one to compute or estimate the
„
new
degree.
Of Cleveland Reserve
Reserve
profits taxes alone.
5
Bell Teletype
was
Ray Gidney New Head
OVEREMPHASIZED?
excess
YORK
telephone
Industry
an
Bright Future
a
(Pa.)
Is it
total
NEW
With
the
.
.
A Low-Priced Stock in
Association
Enterprise 6015
is
completely defeated; that while intermediate and long partiallyexempts may continue present declines, a Democratic victory in
November might mark the start of an advance in such issues from
.
Dealers
Security
equitable distribution of the- tax burden."
.
.
Fashion Park Attractive
.
A
So
believe
we
that
taxes
will
be
reduced
when
our
wars
are
ended, when the problems of reconversion are being solved system¬
atically and satisfactorily, when the millions of men and women in
he Armed Services are being absorbed into the plans of reconversion
practically and sympathetically, when the national income remains
ligher than pre-war years, and when a determined attempt is made
to balance the budget.
detailed
study of Fashion
Park,
Inc.,
is contained
in
a
special circular prepared by Si¬
mons, Linburn & Co., 25 Broad
St., New York.- Copies of this in¬
teresting study
the
be had from
may
firm upon request.
INDEX
Eastern States Pfd.
Page
Bank
Pressurelube, Inc.
and
Business
Giant Port. Cement Arrears
Man's
III. Power Div. Arrears
Telephone
Bell
7-0744
Teletype NY 1-888
ST. LOUIS
6s
CLEVELAND
American
SAN FRANCISCO
1260
Funds
Governments
Our Renorter's
Report.
Utility Securities
Securities
Fstate
Securities
—Facilitate the
1272
1261
1248
—
Com.
Dept. Stores
Markets—Walter
Says
Sq. "A"
Pacific Coast
Cement
-
Pfd.
&
Com.
CRUTTENDEN & CO.
Whyte
Members New
1247
Connecticut, Michigan and Mis¬
souri Regional Sections on pages
1250 and 1251.
15 Manhattan
■■
1246
Salesman's Corner (The). 1249
Tomorrow's
Rapid Execution of Orders
in Over-the-Counter Securities
...1247
..
Securities
New York 5
COrtlandt
Empire Sheet & Tin Plate
LOS ANGELES
1254
Real
Broadway
NEW YORK
1256
Municipal News and Notes
Our Reporter on
Railroad
120
1261
Security Flotations 1271
Securities
Mutual
Public
W. T. BONN & CO.
1245
Offerings Wanted
Our Direct Private Wires To—
125?.
Items
Bookshelf
Calendar of New
Canadian
Douglas Shoe Pfd.
Insurance Stocks.
Broker-Dealer Personnel
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cg 35
•
York and
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Kill, Thompson & Co., Inc.
Chicago Stock Exchanges
L
209 South LaSalle Street
4, ILLINOIS
Telephone
Trinity 6345
Markets
120
and
Situations
for Dealers
Broadway, New York 5
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@FedFRASER