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Final
Edition
ESTABLISHED OVER 100 YEARS
In 2 Sections-Section
.;'
158
Number 4216
New
-i'
'
Reg. U.
Volume
S.
Pat.
Office
York, N. Y., Thursday, September 30, 1943
Price 60 Cents
Post-War Tax Program
Advanced By Magill
Hawkes Says Federal Planners' Goal Is Destruction Of
Free
Enterprise System And Unhampered
Individual Initiative
Says
Declaring that the Federal planners appear to have as their ob¬
jective "the assumption of greater power and control over individual
life," U. S. Senator Albert W. Hawkes (Rep., N. J.) warned last week
*
Former Under Secretary of Treasury Predicts
Federal Budget of $20 Billions
?
ail
of
20 billion dollars
the
lives
our<$>
of
I
Taxes
Will
an
address before the annual
„,
dinner of the Controllers Institute
of
f————
<S>
Waldorf-
Doctor Saxon
York
S
n
e
City,
t
a
American
businessmen
"to
in
take
part
the Ameri¬
system of
can
government,
by acting now
to
the
reverse
trend
in
gov¬
af-
ernmental
fairs."
Urges Return to Economic and Fiscal
Spending and Taxation
In
Billion Post-War Debt Is
or
Hawkes called
on
Sanity
be
In
address
an
before
the
He
and
"will
lead ultimate¬
economic
Pointing out
that
the
found
for
comes
returning
workers
war
jobs
(Continued
must
through the
He
in
work,
of
fac¬
tor in produc¬
tion,
re-
Doctor
that
'.■
year.
Ickes'
statement
States
are
'
•,
Secretary of the
recent
that
"astound¬
the
United
worth
and
of
said
our
"it belittles the gravity
skyrocketing national debt"
sacrifices
the
wage
$300,000,000,000
Rwy.
''
With respect to
$1
a
were
hour,
annual
worker
said
"if
average
of
the
("already," he noted, "the largest
all history"), and "poohpoohs
possibility of national bank¬
ruptcy." He stated that "our peo¬
ple will gladly make all necessary
Saxon
1308)
that
added
$12,023,000,000,000, Doctor Saxon termed the
is statement, quite
"irresponsible"
work
major
a
workers
alone, at 3%, would re¬
quire 9,000,000,000 work-hours per
na¬
be
Amer¬
interest
Interior
since
be
Dr. O. Glenn Saxon
United Lt. &
debt."
an
in
the
in
lives
(Continued
debt
Sys¬
the
M Ml
Buy
WAR BONDS
and
dollars
to
page 1306)
on
FUNDAMENTAL
■BBjiBiiiii
Hirsch, Lilienthal & Co.
other
Exchange
Exchanges
PROSPECTUS
R. H. Johnson & Co.
Established
London
NEW YORK
Geneva
-
4, N.Y.
25 Broad St.
HAnover
Rep.
INVESTMENT
CHICAGO 3, ILL.
135 So. LaSalle St.
2-0600
State
Teletype NY 1-210
—
second
P h i
ladelphia
stand
—now
at
an
all-time
that
at
the
first
for
business
on
rates would be
gradually re¬
duced;
that
taxes would
la This Issie
abolished;
general
a
sales
would
a
b
1
8770
Teletype CG 1219
64 Wall
OBTAINED
y
OHIO SECURITIES section con¬
tax
taining information and comment
Roswell
probbe
Magill
•
to
pertinent
page
dealer
activities
SECURITIES
or
taxes
a
would
be
coordinated
into
single transfer tax.
Special editorial material per¬
SAVINGS and LOAN
on page 1318.
taining to
The necessary 20 billions of an¬
nual Federal
revenue
could be
raised, he stated, from individual
ASSOCIATIONS
For index
see
Albany
Buffalo
Pittsburgh
Williamsport
lions, estate and gift taxes of $1
billion, liquor taxes of $1.5 bil(Continued on page 1310)
Bond
CHASE
THE
Actual
BANK
OF THE CITY OF NEW YORK
Service
Broaden your customer
for Banks, Brokers
service with Chase
correspondent
Hardy & Co,
facilities
Members New York Stock Exchange
York Curb Exchange
Members New
INCOKFORATIB
30 Broad St.
634 S®. SPRING ST.
JERSEY CITY
New York 4
Member Federal
Deposit Insurance
LOS ANGELES
Tel. DIgby 4-8400
Dallas
A'*
BROKERS and. DEALERS
Brokerage
FROM
from,
IS EXCHANGE PLACE
Syracuse
1324.
page
income taxes of $8 billions, corpo¬
ration income taxes of $4.4 bil¬
and Dealers
HUGH W. LONG and COMPANY
PHILADELPHIA
Troy
on
1298.
adopted; and that gift and estate
BE
AUTHORIZEDDEALERS
1927
Street, New York 5
BOSTON
MAY
Williams
profits
excess
be
E.
Sept. 23, 1858, as a State institu¬
tion, it had a paid-in capital of
$130,000.
However, five
years
later, when the institution was
placed under the National Bank¬
ing Act, the capital was increased
(Continued on page 1320)
rates;
that corporate
income tax
that
David
opened
would
1942
less
1858.
bank
income
ual
of
$200,000
When
individ¬
taxes
original
e
in
probable
was
t h
NATIONAL
■
and
the
than
system,
Mr.
Magill said it
Preferred
Members New York Stock
of the
institution
figure
tax
Common, W. I.
United Light
anni¬
contrasts with
necessary
be maintained
of
would
6,000 hours or
150 weeks of 40 hours, or about
three work-years, to pay off the
ing"
thought
servicemen
on page
Controllers
one
every
50,000,000
taxes must
The Senator also cautioned that
peace
ica's
tional debt and
indus¬
terms of
after
to
sense
do it.
try."
and
fibre
Phila¬
85th
tem," delivered at the 12th annual high — being
meeting of the Controller's Insti¬ well in excess
tute of America at the Waldorf- of
$200,000,Astoria in New York City.
000,
which
post-war
have to contribute
paid if the American peo¬
ple have the
that
Federal Tax
In
outlining
changes in the
——
will be
good
and
the
of
means
moral
business
meeting
City, Doctor Saxon expressed the
belief that this huge debt can and
medicine, of the legal profes¬
of
annual
Institute of America in New York**1
ly to the de¬
struction of states' rights, the so¬
cialization of the school system,
and
$300
was asserted on Sept. 20 by Olin
Saxon, President of the Pennsylvania Economy League and
Professor of Economics at Yale University.
"
trend
sion
If
Repaid
repaid in honest dollars, it
that,
otherwise, the
of
Be
Glenn
added
Sen, A. W. Hawkes
to
A return to economic and fiscal sanity in spending and taxation
will be required if the post-war national debt of
$300,000,000,000 is
to
National
of
Co.
the
versary of its founding on Sept. 23.
The total re¬
sources
about
formerly Under-Secretary of the
U. S. Treasury, in an address on
"The Post-War
Oui Post-Wai National Debt
Astoria in New
but
Exchange
Trust
marked
na¬
was predicted on Sept. 22~hy Roswell Magill, member of the largest
Cravath, de Gersdorff, Swaine & Wood, and tional bank in
America, at
the
„
Corn
and
delphia
following the
years
_
run
Now 85 Years Old
The
1942
Copy
New York law firm of
?—
:
at
annually, during the first ten
citizens."
In
Remain
Average expenditures of the Federal Government will
unham-(war, it
control
Income
a
Corn Exchange Bank
Of Philadelphia
Bank
Levels,
Corporate Taxes Will Be Lower—Would Repeal
Profits Tax to Foster Business
,
I
that if the policies of the past 10
years, are continued they "can only
lead to the destruction of the system of free
enterprise and
pered private initiative and the substitution of*state direction and
Personal
v
1943
OCT!
ommatcia
1
Tele. NY 1-733
Corporation
>.
i
*
Trading Markets, always
Purolator
Peoples Light &
Products, Inc.
thru finest
Power Co.
contacts in
in
Qver-The - Counter
BONDS
Basic Report
Securities
sent upon
Preferred
request
Analysis upon request
Bull, holden & ce
MEMBERS NEW
YORK
STOCK
Members
TELEPHONE-RECTOR 2-6300
REYNOLDS & CO.
INCORPORATED
EXCHANGE
14 WALL ST., NEW YORK 5. N.Y.
HART SMITH & CO.
Kobbe, Gearhart & Co,
N.
Y,
Security Dealers
45 Nassau Street
Tel. REctor 2-3600
Ass'n
New York 5
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015
Members
120
.
New
York
Stock
Exchange
Broadway, New York 5, N. Y,
Telephone:
Bell
Members
New
York Security
52 WILLIAM ST., N. Y. 5
Bell
REctor 2-7400
Teletype
NY
1-635
New York
Dealers Assn.
HAnover 2-0980
Teletype NY 1-395
Montreal
Toronto
ira haupt & co.
Members New
York Stock Exchange
111 Broadway
REctor 2-3100
Teletype NY 1-1920
Trading Markets in:
,
..
We Maintain Active
Emerson Radio
Markets in U. S. FUNDS for
v
Braniff Airways
Botany Pfd. & Common
CANAD1AN4JTILITIES
Bendix Home Appl.
'
^
Warren Bros. Class "B" &
CANADIAN RAILS :;WK'
United Gas Improv.
J
40
Members N.
Ass'n
5 HA 2-2772
Exchange PI., N.Y.
Members
BArclay 7-0100
Telephone
,
'
In
LET'S GO
OVER THE TOPI
bond in, the few re¬
maining
days.
Hurry!
Hurry!
Hurry!
.
.
.
Exchange
Baltimore Stock
Broadway, N. Y. 5, N.
Y.
Organizing Peace?
Senator. Harold H. Burton of Ohio at theNtwo day Forum on
"Our Future World" held at Christ Church* New York City spoke op
can
we
We give below -the
Peace?"
in Organizing
address of Senator Burton:
far
"How
go
can
!;'<*
;
Cited For Work In
:
Third War Loan Drive
f NEW
will be vital not only to
there¬
fore, break the
question
into
three parts.
First, how far
*lnterst4te Power
6s 1952
we
c a n
far
United Cigar Whelan
Preferred
on
N. Y. Curb
Exchange
Western
Members
New
York
Curb Exchange
New York 5
31 Nassau Street
isphere?
COrtlandt 7-4010
System Teletype NY 1-1518
Telephone
we
can
We must
In each
basis?
H.
Hon.
H.
at
SEE OUR LISTINGS
pf .the Third War
New, Orleans
'
IN "THE SHEETS"
C. E. de Wiilers & Co.
;•
take these burdens in
tion is how far can we go
These bonds are held
church, insurance- com(Continued on page 1312) ^
toward
A Plan for the
Stock
W. L.
Common & Preferred
6s,
1952
Deduction of
that industry needs reserves
Declaring
,
.
i
Common & Preferred
H. G. BRUNS & CO.
20 Pine Street, New
York 5
Telephone: WHitehall 3-1223
4 Bell Teletype NY l-ia43
presented a
six-point plan
when
a
to
lish
ccomp
Mr.
Electrof, Inc.
post-war
Idaho Power
or¬
tion
HAnover
2-4850
Teletypes—NY 1-1126
&
1127
a
meet
Trading Markets in
1
a
the
Railroad
Public
STOCKS & BONDS
(70 PINE ST., N. Y. 5
Teletype
NY
TVHitehaU 4-4970 I
1-fiOS
A.
Cooper
'
which
will
re¬
of a plan
"The six basic features
which
conversion and
FASHION
ment
develop
would
are as
this require¬
meet
follows:
(Continued
on page
1307)
' -
PARK, Inc.
counted for more
total sales made during the cam¬
are Ernest C. Villere,
Denis J./Villere & Co.; Irving
paign;
FASHION PARK, Inc.
ProforrAd
St.
f
Gas
Natural
Candy
.t
;
.
Utilities Common
K.
Edward A. Purcell & Co.
& Co.;
Walter D.
Lamar,
Kingston
&
Labouisse; and Albert J. Wolf,
Merrill Lynch, Pierce, Fenner &
Beane.
r
' /'
Members New York Stock Exchange
*
Members New York Curb Exchange
65 Broadway
•
WHitehall 4-8126
Teletype NY 1^1919
Bell System
—
nual meeting of the
•
Preferred
Mfg. Co. Inc.
&
Common
Prior Preferred
Bought—Sold—Quoted
St., New York 4, N. Y.
Tele.
NY 1-210
Robert
Stock
67
WALL ST., NEW YORK 5, N. Y.
Telephone-—BOwling
Green
9-3000
Geyer
George
C. Hecht announce
the
.
Schirmer, Atherton & Co., Treas¬
urer, .^Elected
to the governing
committee with terms expiring in
Louis Curtis, ; Brown
19,45 were:
Brothers
Harriman
stan.ting
&
Hutchins,
-.
Co.;
iel
& Co.
v
;
&
Waller Collins Now
-
With
;
'
-
J. H. Hunt Nob With
A, M. Kidder S Go.
;
1939 a
Collins, until
T.
has become associated
with Tobey
Wall Street, New York
& Kirk, 52
York
Collins'
City, members of the New
Stock '
(Special to The Financial
TobeyS Kirk
tWalter
Dan¬ partner of Hemphill, Noyes & Co.,
Ray E.-.Southgate;
Watson, Hayden, Stone
Pingree;
and Lester
Con-
Hutchins
Parkinson; William R. Long;
Mr.
Exchange.
-
original connection with the
business
vestment
was
in¬
with Lee
Higginson in Chicago.
Chronicle)
DETROIT,': MICH. —James H.
associated with !
Hunt has become
A.
M.
Kidder
&
Co.,
Penobscot
Mr. Hunt was formerly
manager of the trading depart¬
ment of L. LT. Hood & Co.* and
Building.
prior thereto served in a similar
capacity with S. R. Livingstone &
Co. In the past he was with Pal¬
Pittsburgh
Railways
ANALYSIS
...
with
particular
reference
& Co. and Alison
to:
Pgh., Canon. & Washington
1st 5s, 1937
Seaboard Air Line Ry.
& Co., 120
Broadway, New York City, have
prepared a biuef study on the pro¬
posal to retire the receivers' cer¬
L.
bonds
such
Washington & Canonsburg
1st 5s. 1932
HJ. Rothchild
other
and
the
of
Railway,
CORPORATION
Huff,
H.
and John
Stearns
,
tificates
ATLANTIC INVESTING
Members New York Stock Exchange
2-0600
Boston
Poor
was
formation of the co-partnership 6f
elected President.
He had been
Huff, Geyer & Hecht, to specialize
Acting President since -June 3,
in wholesale distribution of in¬
succeeding Archibald R. Giroux,
surance and bank', stocks.
/, ;
who resigned to enter - military
The firm's main office is located
service. V;,
a. ?
at 67 Wall Street, New York City.
Horace
O. Bright, ■;« Elmer H.
Branches are maintained in Bos¬
Bright & Co., was' elected Viceton and Chicago.
President and Mark R. Hodges,
Exchange,'
Situation Interesting
Ludlow Valve
W. L. DOUGLAS SHOE CO.
HAnover
Loft
Citizens
Weil
Weil;
South Shore Oil
Southwest
activities ac¬
than 16% of the
Macfadden Publications, Inc.
Preferred & Common
25 Broad
;
1% Pfd.
Federal Water Service
dealers'
whose
committee,
very
.
Walter
SIMONS, UNBURN & CO.
G. A. Saxton & Co., Inc.
Other members' of the
mer, Everham
& Co.
Utility
!
a
,
flexible formula, with a
safeguard in the form of a
r.ecapture clause. '
;•"* ! r:
problems
■
have
must
We
brqad,
11
relocation
relief will be af¬
proper
Common
Industrial
,
forded.
and
habilitation
1
be
that inadequate
w a r
overcome
of
•*
&
-•v■■
investors."
P. S. Plain v*
New England
to small
open
improper tax avoidance will
possible ahd, in other cases,
ers,
swing
Y. Security Dealers Assn.
Wall Street, New York 5,. N. Y.
Tel.
a
against unem¬
ployment and
to
I
to
that "" one
always
is
objection that, under- the
circumstances of certain tax-pay¬
financial posi¬
into
and
Bell
in
been
has
formula
the
to
immediately
Time, Inc.
37
narrow
jplace
to
industry
SeibeHing Rubber Pfd.
experience
re¬
in
der
Long Bell Lumber
privilege or improper loss of rev¬
enue
to the Treasury.
My own
need
serves
cease.
safeguards and controls, that
accomplish substantial justice
without permitting abuse of the
part:,
"We
activities
will
fol¬
remarks
Eagle Lock
made mostly
sary
Cooper's
low in
war
crying need now is for the devel¬
opment of a formula, with neces¬
i g ned
e s
~~
The
"
this end.
Members N.
to meet post-war re¬
Cooper, New York certified public account¬
ant, on Sept. 22 called for the development of a "broad, flexible
formula with a proper safeguard in the form of a recapture clause."
In an address before the meeting of the Controllers Institute in New
York City, Mr. Cooper, a partner in Peat, Marwick, Mitchell & Co.,
d
expected,
have
been
sales
these
might, be
...
quirements, Walter A.
Struthers Wells
bonds, the larger majority
Contrary to what
war
in small bonds.
Exchange Huff, Geyer & Hecht T.
Elects Hew Officers
g BOSTON, MASS. At the an¬ Now Go-Partnership
Regards Equity In Tax Important
Walter A. Cooper
Indiana Limestone
of sales
turned in. show hundreds
Boston Stock
Post-war Reserves
C
Dougras Shoe
'
been
have
reports V that.
.
Teletype NY 1-236L
by every
Amer. Gas & Power
Common
"The
of
5, N. Y.
120 Broadway, N.Y.
REctnr 2-7634
time Kingston,
any
stride.
our
Burton
the ques¬
case
than
before the war.
world-wide
a
freer
heavier
times
on
go
first total war .to
privately ; financed
peace-time production of useful
goods, she will do so under the
heaviest taxes in her history and
under a national bonded debt ten
Third, how far
Vanderhoef & Robinson
far
the
go
the
within
from the gov-
tion during her
..
Hem
*Traded
As America turns
ernmentally financed war produc¬
how
we
can
element in world-wide
outstand¬
ing example of the practice of the
principles we preach.
United States?
Second,
Preferred
as one
ourselves
stability, but also as an
the
within
Taggart Corporation
and
go
.
States, for years to come,
United
tical answer. I
Y. 1-1227
Teletype N.
Rails and Industrials i
;
ORLEANS, LA,—Officials
Loan drive in
cited the work of
Actual Markets in
we,
shall,
•!
branch offices
our
DEALERS
investment dealers and brok¬
the people of^
ers.- group, headed by William
the United States, go in organizing establishing and organizing a just,
and lasting peace that will live Perry Brown of Newman, Brown
peace?
> •
& Co.,. which with a goal of $2,and grow with us?.
•':!
The question is timely and prac¬
000,000,
has sold $8,241,968 in
tical.
It de1.
Within the United States :
bonds, Mr. Brown, in explaining
serves
a- spe¬
Our internal stability within the the work done by his unit, declared
How far
cific and prac¬
WOrfh 2-4230
Bell
Bell
La.-Birmingham, Ala.
Direct wires to
.
Mitchell & Company
120
NY 1-1557
HAnover 2-0700
New Orleans,
'
New Orleans Dealers I
;
for at least
calls
part
extra
Members
St., New York 4, N. Y.
25 Broad
:
York Curb Exchange
BROADWAY, NEW YORK
Tel.. REctor 2-7815
120
How Far Can We Go
Your
York Stack Exchange
Member* New
"V
York Stock Exchange
New
•
NEW YORK 6, N. Y.
Teletype NY 1-672
v.
TELETYPE NY 1-423
BELL
an
New
Other Principal Exchanges
Y. Stock Exchange and
BROADWAY
115
Steiner,Rouse&Co
'
;
Established. 1920
Security Dealers
Walworth Pfd.
-
TvfcDONNELL & CO.
'
Goodbody &. Co.
KING & KING
York
Saltex Looms 6s, 1954
"C"
CANADIAN BANKS
Residuals
New
Birmingham Gas.
Remington Arms
,
CANADIAN MINES
Common
Alabama Mills
American Cyanamid Pfd.
CANADIAN INDUSTRIALS
Members
Thursday, September 30. 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
1294
outstanding
on
various outstand¬
ing issues. Copies of this interest¬
ing analysis may be had from the
firm upon
1st 5s,
Copies
of
1927
Analysis on request
Seaboard Air Line
analyzing the result of
action
Washington Elec: Street
request.
T. I. FEIBLEMAN
Members
New
41 Broad
Street
BOwling Green
& CO.
Orleans Stock Exchange
9-4433
New York 4
Tele. NY 1-493
Volume
158
The
Number 4216
COMMERCIAL
FINANCIAL
•'
25
'
'
Patent Office
B.'; Dana
Company
Kentucky Utilities
Editor and Publisher
f
William
D.
Seibert,
Eigga,
Business
Published twice
;
:
.
•
(general news
week
a
Chicago—In charge of
Fred H. Gray, Western Representative,
Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
E.C.
London,
1943
'"Reentered
by
ruary 25, 1942, at the post office at New
York,
N.
Y.,
under
the; Act
March
of
3,1879.. y
''v>
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain, Mexico
and
Cuba, $29.50 per year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
■
,
;/!
Bank and Quotation Record—MthV $20 yr.
Monthly Earnings Record—Mth.. $20 yr.
State & Municipal Compendium—
-;
Semi-Annual
$20 yr.
.
NOTE—On account of the fluctuations
in the rate of exchange, remittances for
foreign subscriptions and advertisements
be made in
must
New
York
funds.
PRUDENCE
.York .Security
Dealers
NEW YORK 4
;
DIgby 4-8640
Teletype NY 1-832, 834
Harrison 2075 '■/
•
'••('•V;;
House
Group Against
Ending Renegotiation
repeal
of
motion, offered by. Repre¬
(Rep., N. Y.), per¬
sentative Cole
tained to the recovery of "exces¬
sive"
war
profits Von - contracts
made after Jan. 1, 1944. The Naval
Committee
has
now
under
con¬
sideration various proposals -for
renegotiation law changes, includ¬
ing the question of authorizing
.',V
Ways
The House
Committee voted
.•:.VVVViVVf;^
and
Electronic
been
to
Means
PRUDENCE
full
on
subcommittee has
directed
the
to
make
committee
a
as
report
as' an
employee of the investment
What Is Security Analysis
C In '" order
to
on
;to pos¬
Bought—Sold—-Quoted
issue
our
of Sept. 23, page 1193.
V'..VV;
Newburger, Loeb & Co Warns OPfi To Alter'
'
40 Wall
York
New
Stock
St., N. Y. 5
Bell
NY
1-2033
OUR
REPORTER'S
close
at
midnight
Saturday investment banking in¬
terests, who have virtually sus¬
their '" regular
pended
business
order
ninth
the
since
of
of
the
month, are beginning to look for¬
ward to
a
suits for
■
a
return to
normal
pur¬
spell.
Naturally the main interest, at
pective resumption of
new corpo¬
rate
financing and
refundings.
And just now discussion lends it¬
self chiefly
to/ the business of
seeking to figure which of the
several issues, recently placed in
registration with the Securities
and Exchange Commission, will
be the first to reach market./;
OPA
the honors probably
will go to
respect, although it recognized
that
Atlanta
pany's
; first
mortgage
been
ago,
Light
Com¬
$7,500,000
bonds,
registered
month
as a
Gas
proposed
more
V
"I cannot believe that your ad¬
ministration desires to make the
of
a t
First: There
:
is
does
not
come
under
Rule U-50 providing for competi¬
a
idea
times
as
to
the
people
revolt
almost
cause
to
was
Oklahoma,
and
there
the
is
wave
almost
of
uni¬
versal
against the practices which
are
considered entirely unneces¬
sary and contrary to the Ameri¬
life."
way of
"No
some
doubt
of
you
the
-
,
know
states
the.
that
and
in
have already practically repealed
the Price Control Law, and act
exactly
if
as
no
such law existed."
Patrick
the
appraise
investment
on
the
and
ELECTRONICS
elements.
emphasize
are
Wednesday, Oct. 6,
subject:
"What
About
We
unreasonableness
of
seen
Copies
1299)"
Request
on
J.F.Reilly&Co.
it,
Ill
(Continued
on page
Members
-
,
York
New
Security
KEctor 2-5288
Bell
System
Teletype,
adequate basis for
an
time
I
a
just and lasting
kind
Stromberg-Carlson
Haloid Co.
Memoranda
on
to
matic
case
*
United
assume
we
I
of
had
th
are
go
t
all
for
a
just'and lasting
the
tion of
war
Bell
COrildndt 7-6190
System Teletype NY 1-84
.
Central States Elec. Corp.
V
to
war
declara¬
far mote remote from
from
.
peace.
I hope
us
now
war
than
Allies, victory of itself
(Continued on page 1309)
we
our
1S47
Savoy Plaza 3-6s, 1956 w. s.
against us. We did not
for the four freedoms.
Apparently we are fighting
"victory" but, since the
was
Tybor Stores Common
Industrial Office Bldg. Ss,
Japanese attack at Pearl
war
Common, 6% & 1% Pfd.
Great American Industries
no
all the way because
for
Norman Thomas
united by our
desire
of America has
Harbor and 'the German
I
a
States
into the
the
time.
170 Broadway
There are, how¬
adequate basis for a just and last¬
ing peace. .America finally went
more
than
if
Est. 1926
•
radio
be
believing that such
possible-even though
wide divisions of opinion
us/which
ought to be
frankly faced./
•
I think, however, that there will
be fairly general, although reluc¬
tant agreement that officially the
blunt and dog¬
would
Jf '
ntmati\
united in
among
.lecture
seem
Bartgis Brothers
ever,
talk
common
the
on
and
Request
Federal Screw Works
1
*
a
peace is
difficult to win.
; s a y
.
of
The ad¬
peace.
V-» i
are
which
oppose
the
most
1-24G#
Gisholt Machine Co.
is
and
shall
ST.. Y.
1307)
Adequate Basis For a
lust and Lasting Peace
dress of Dr. Thomas follows in full:
things
Assn.
World
asked for
My
Dealers
Broadway, New York, N, Y.
but
supply and de¬
by reasoning when the de-
Thomas, Chairman of the Executive Committee, of the
Council, and a four time Socialist candidate for
President, in an address earlier this month at a two-day forum on
('Our Future World" held at the Christ Church in New York City,
limited
it
was
Norman
Post-War
v;
"HIGHLIGHTS"
Frank C.Maslerson & Co.
'Members
New
York
Curb
Exchange
NEW YORK 5
64 WALL ST.
Teletype NY 1-1140
HAnover-2-9470
road Securities Now?"
Governors'
11
3:45
Wall
Room
of
Secwutici.
National Radiator
STOCKS
Company
on
Analysis
Wyeth &Co.
The meet¬
Established -1914
York,
at
LOS ANGELES
Members N.
Y.
Members Los Angeles Stock Exchange
p.m.
X
request
Members New York Security Dealers Assn.
Security Dealers Assn.
74
,'
upon
C. E. Unterberg & Co.
'Since 1893'
the. New
Exchange, 6th Floor,
New
bank
Pacific
NEW YORK
St.,
Bank & Trust Co.
Rail¬
York Stock
on page
■
OCTOBER ISSUE OF
some¬
divergent.
you cannot control
"
In
/'.;
growth stock and the entire
mand
Wanted:
Customers'
of
ditional
(Continued
Teletype NY 1-1203
FARNSWORTH
these
thing, rationally could have
second
ing will be held in the Board of
provide the company with funds
Security Dealers Assn.
Public National
financing involves $20.000,000 of twenty-year deben¬
tures, and 374,391 shares of ad¬
stock and will
Information
Broadway, New York 6, N. Y.
HAnover 2-8970
kept his head and looked at the
i
"
completely
a
point is familiarity with the status
McGinnis, of Pflugfelwill address
Association
the
common
QUOTED
-
INC.
39
by no means least,
the factor of how
for
prog¬
dei\ Bampton & Rust,
issues
This
4-6551
Minnis To Address ;
tive, bidding,
as utility company
do, is favored to start the
rolling.
SOLD
-
Statistical
a^etf
discounting
the
growth of the country and profits
25 years ahead.
Anyone who
round
what-
in
more
citizens
WHitehall
they fit'into the
market
market
e
platform.
I
■v..V■:> VV'-'-V:VV;. shall
there¬
"I have just spent two months
fore be forced
resentment
Securities Dept.
L. J. GOLDWATER & CO.
remember, for example, the
prices of 1929 when every stock
what
solidly at the election to be-held
in
BOUGHT
Complete
all
■'
clear
■
'in 1944."
Brokers
ball
unpopular, oppressive and
country
for
and
Street, New York
Members New Yoi-k
~
It is not necessary to
that values and market
economics
makes >t h
Customer Brokers
possibility.
and
the
stocks
1
"
Manager,
wrote,
ridiculous
cars
of ALL COMPANIES and
REAL ESTATE SECURITIES
must be considered
The P. Lorrillard financing, a ne¬
gotiated deal, since it is an indus¬
trial
abandoned
Senator
according to the
Associated
Press, in the - New
York World Telegram":
so
used
prices
certificates
Market Irrational
of
having
than
officials
General
Thomas
can
P. Lorillard & Company in that
/
OPA
un¬
.
Consensus appears to be that
;
"revolt"
is
the
various
Sept.
on
a
and
headings.
The
practices "contrary to the Ameri¬
can way of life."
..
In a letter to Chester
Bowles,
OPA
the moment, centers around pros¬
Last,
important
der three main
Senator
(Dem.,* Okla.)
25 that there would be
less
With the Third War Loan Drive
to
Thomas
warned;■' by
against the Democrats in 1944
REPORT
scheduled
was
etc.. and how
un¬
The Office of Price Administra¬
,
.V
,
—gement
does
this work
ress.
Practices Or People
Will'Revolt'at'44 Elec.
tion
.
PJ~rs°nabty, so to speak, of
.
Exchange
WHitehall 4-6331
Teletype
Wall
larSer Pattern of economic struc-
•
changes, and
developments
referred to in
'
;/•
secur¬
world go
were
Too—Urges
.•.
iS Wel' t0 lay
*
ity analysis.
We can divide—
are
Members
Work?^~
perspective,
gain
dow'JfV'dVV
basi? prinui-
tee
CORP.
traded)
His remarks follow:
company.
da«|er:o£Pbefng ^
evrn .:at the
sible revisions in
the measure.
The hearings before this commit¬
r
SECURITIES
Over-priced
Analysts pertaining to over-priced growth situations is given below.
it clear that' he spoke as an individual and not
have
A
Securities
Mr.-, Popovic made
of
law.
for
highest
TITLE Co.
Thht portion - of the address made last week by M. D. Popovic.
Blue Ridge Corp. before the New York Society of Security
in; general.
It
is necessary <to
the
prices
pay
(little
Telephone:
"Caution;in Buying Into Growth Industries
V/
the statute providing for
renego¬
tiation of war contracts.- - The
99
of the
The House Naval Affairs Com*
mittee voted 17 to 5 on
Sept. 28
recommending
Teletype NY 1-5
Contends Aircraft Manufacturing Stocks Are Reasonably
Priced While Airline Equities Are Selling at Twice Their Worth—
Believes'
against
we
bonds.
Analyst
Teletype CG 129
-
high
used
By M. D. POPOVIC
CHICAGO 4
.
September 27
against recbmmending termination
BONDS CORP.
IRISHMAN
Over-Priced Growth Stocks
Ass'n
Boar j of Trade Bldg.
,
before—taxes.':
COMPANY
THE SMILING
Obsolete
the renegotiation after—instead of
All'.Tssues
AND COMPANY
Members New York Stock Exchange
.
■'■■)' 'Other Publications -' •J;
:• ,'v
Hew
Broadway
LlCHTEnSTEin
.
25 Broad Street, New York
Company
Dana
B.
sedond-class matter Feb¬
as
32
V'-*'
William
B. S.
Telephone HAnover 2-4300 j;
STRAUSS BROS.
Members
Offices:
Copyright
•;
Spencer Trask & Co.
and every Monday
(complete statistical issue—market quo¬
records,
corporation,
banking,
clearings, state and city news, etc.)
Gardens,
'
but
^
tation
Other
v
t
pays
Cons. Elec. & Gas
>
advertising issue)
and
..."
PREFERRED STOCKS
Amer. Util. Serv.
1
|
-/
;
Northern Utilities
Manager
Thursday
every
; •
.'
offerings of
Public Utility and Industrial
*
.«
President
Thursday, Sept. 30, 1943
-
*
;
.u-.
High Grade
.
:
Dana
♦
•.
interested in
are
Assoc. Gas & Elec.
Spruce .Street, New York 8
William
.V,
»
We
■>
Herbert D. Seibert,
t
{1
Amer. Gas & Power
•'
.
Publishers
BEekvian 3-3341
1295
•
CHRONICLE
Reg. U. S.
William
and
THE COMMERCIAL & FINANCIAL CHRONICLE
Trinity Place, New York 6, N. Y.
Telephone:
Teletype:
BOwling Green 9-7400
NY 1-375
.
61
Broadway, New York 6„ N. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
Thursday, September 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
1296
UTILITY
PUBLIC
CROWELL-COLLIER PUB. CO.
RAILROAD
MERCK & CO. INC.
Bought
Sold
-
INDUSTRIAL
.
It's
Quoted
-
BONDS
Goodbody & Co.
Members N. Y. Stock Exchange
PERSPECTIVE
and Other Principal Exchanges
CJUUXN«®COMESNY
INCORPORATED
105 WEST ADAMS ST.
115 BROADWAY
CHICAGO
CHICAGO
NEW YORK
that
TELETYPE NY 1-672
BARCLAY 7-0100
TELEPHONE
MUNICIPAL
New York
counts
Milwaukee
Boston
DALLAS
job is interpreting news or dealing in in¬
whether the
—
Grande Western R. R. Co.
Denver & Rio
Railway Co.
Rio Grande Junction
objective of
our
of bonds of the above
Holders
urged to send their
are
we
and issues held
to
the undersigned.
This information is desired for com¬
pilation of list of bondholders requested by I.C.C. in con¬
nection with the proposed reorganization plan.
and addresses, together with amounts
and economic situation, with a
financial
judgment.
-
and
McCarthy
Wilson
Trustees,
Swan,
Ilcnry
Railroad Co.
The Denver & Rio Grande Western
DENVER
STOUT STREET
1531
and in
1,
our
dealer
Dallas Ry. &
financial
-
;
,
Check
us
Southwestern Securities
on
RAUSCHER, PIERCE & CO.
.;..
.
„
Terminal 6% 1951
All Texas Utility Preferred Stocks
view to maintaining a rounded
DALLAS, TEXAS
Houston
San Antonio
-
relationship. Dealers with whom we have
done business.realize the truth
COLORADO
So'western Pub. Serv. Com. & Pfd.
perspective is reflected in our analyses
This balance and
Pepper
Southern Union Gas Common
each. Because
examine all aspects of the existing
do so, we
Quoted
—
Republic Insurance
organization. We deal in all types of bonds,
maintaining close contacts with the markets in
Sold
—
Dr.
Co.
Denver & Rio Grande R. R.
names
Bought
Maintaining investment perspective is a constant
vestments.
Co.
Rio Grande Western Railway
of these statements; you are
PHILADELPHIA
cordially invited to test them for yourself.
HEARST
AUTO CAR
Walter Whyte
CONSOLIDATED
PUBLICATIONS
COMMON
R. W.
Says—-
Troster,Currie & Summers
other
Teletype NY 1-376-377
Wires
Private
Detroit
Buffalo
to
Pittsburgh
-
»
point
sion
.arrangement.
New York 8,
Financial
N. Y.
the
"spot"
Stock
in the
fice,
to
let
at
Letters
num.
1
of
area
to
Drapers
$1,250
per
Chronicle
Gardens,
an¬
Of¬
Lon¬
don, E. C. 2.
Denver
news
ket itself.
& Rio Grande
Pfugfelder,
bers
New
York,
teresting circular
on
a
But
Rust,
mem¬
of the New York Stock Ex¬
change, have prepared
most in¬
the Denver,
if
indicate
the
as
*
5i«
certain
such
action
of
did not concur.
Grande, Western Railroad,
ages
which
is
a
stocks
securities.
Copies pf this circular discussing
the situation in
detail,
the
upon
from
firm
may
be had
written
quest.
re¬
did
possibility,
the
market,
These
aver¬
up of
last week's
new
PH 265
Exchange
We
at best showed a dry¬
buying power at
highs or a gradual
retreat
of approximately 2
points or so. Of the two, last
ing
(Continued on page 1319)
have
interest
continuing
a
in
Southern Advance
Bag & Paper Co.
SEC To Begin Hearings Today On
NASD Right To Discipline
Case Arose On Alleged
Common
Stock
:
Members
Violations On Public Service Co.
BOENNING & CO.
1606 Walnut
Indiana Bond Sale
Of
St., Philadelphia 3
PH 30
Pennypacker 8200
Securities
The
will
Commission
Exchange
and
begin
today,
Private Phone
old case involving the right
Dealers, Inc., to punish its
members for violation of underwriting agreements under its rules
of fair practice and whether underwriting agreements are valid and
enforceable by disciplinary action of the Association. ;
Thursday, oral arguments, in a four-year
of the National Association of Security
The
case
arose
COrtlandt
Service Co. of Indiana
Public
has been
bonds in 1939 by a syndicate
headed by Halsey, Stuart & Co.,
Inc.
and comprising
67 under¬
writers
and
396 selling group
members.
The syndicate agree¬
ments set the selling price of the
bonds at 102 with certain excep¬
fair
curities
the
six
John
Doe
practice in selling the se¬
involved at prices below
agreement to which
they originally subscribed.
The NASD
also will contend
the
that
selling
the
sole
question
presented
practices
"inconsistent
is whether the acts and
under
review
are
standards of com¬
mercial honor and just and equit¬
with the high
according
to
Associated Electric
briefs already sub¬
mitted, that the conduct of none
of the members was inconsistent
with the standards of commercial
honor
nor
prohibited
by
Company
4V28 & 5s
the
that, such underwrit¬
agreements are in unlawful
restraint of trade in securities and
therefore
a
violation
of
the
NASD rules,
ing
as
Bought—Sold—Quoted
'eltason, Tenenbaum, Inc.
803
Landreth
BIdg.
ST. LOUIS 2,
MO.
L. D. 240
Teletype—SL 486
defined by the Sherman Act.
Western Pacific Railroad
x5r/x
Situation Attractive
Du
Wall
Bosque
&
Company,
&
Co.
SAINT LOUIS
72
Street, New York City have
509 OLIVE ST.
Bell
System
Teletype—SL 80
an interesting analysis
of Western Pacific Railroad with
prepared
special reference to new income
bonds. Copies of this
interesting circular discussing the
situation in detail may.be- had
mortgage
principles of trade," and that
from Du Bosque & Company upon
jurisdiction to apply or enforce the Sherman Anti-Trust Act request.
able
no
7-1202
violated Rule 1 of its rules
cases
of
Y. C.
ST. LOUIS
.
of
N.
granted the SEC.
Counsel for the SEC will argue,
first mort¬
gage
each
to
from the public^
$38,000,000
of
offering
that
reflected in the averages,
& Rio
creating
—-
N. Y. DI 4-1527
Phila. RIT 4488
week, for example, tions, but almost from the first
you saw the familiar aver¬ day of the offering, sales at prices
below
those
permitted by the Miller-Tydings amendment of the
ages nibbling away at the 142
Sherman Anti-Trust Act.
agreements began to occur. The
The
validity of underwriting
figure after they had moved NASD investigated, found viola¬
up from 138. It was possible tions and levied fines against 70 agreements is said never to have
been tested and it is understood
then
to
envisage a break of its members. The SEC then that both sides would like an ap¬
ordered a review of the disciplin¬
through on the upside with
peal carried to the Supreme Court
ary action and six typical cases
certain stocks going on up to
to determine whether such agree¬
were
selected for the purpose.
ments were in restraint of trade
new and
higher prices.
The Association will
contend
*
&
Bampton
Broadway,
BONDS
Philadelphia 2, Pa.
St.,
Teletype
STOCKS
Members New York Stock
V
Last
Western Interesting
61
but in the mar¬
Exchange, Financial,
City of London-—furnished
Offices
No, the answer to
the market will not be found
in the centre of
Banking and Insurance
the
add to your
the next.
in LONDON >?
On the
upon
collection of
trivia; certain ''dope" stories
analyzing the problems of
contract renegotiations, may
come
your way. But the sum
total of your knowledge will
be of little help in discover¬
ing just why a market which
acts so well one day suddenly
goes down and acts miserably
can
commis-
Office Space Available
/*
come
even
may
other bits of information you
Spruce Street,
Chronicle, 25
Congress is scheduled to
You
Box S 27,
The Commercial &
Bell
finding any plausible
Yes, you will discover
discuss the new tax program.
experience
and
INDUSTRIAL
AND
INVESTMENT
-
excuse.
acquainted in the Street.
salary
RAILROAD,
MUNICIPAL,
UTILITY
PUBLIC
look into the news
for a reason to explain the
current
dragging
reaction,
you will search and search
\
■k
Philadelphia Stock Exchange
Members New York Stock Exchange
If you
Available
Desires
Members
r
Cleveland
-
St. Louis
that
years
NEWARK
GOVERNMENT,
By WALTER WHYTE
;
Trader
Twenty
or so.
Request
on
BUCKLEY BROTHERS
744 Broad Street
BOSTON
1529 Walnut
without
Well
201 Devonshire Street
resump¬
within an¬
or
advance
of
HA 2-2400
Trinity Place, N. Y. 6
74
about over.
reaction
Expect' dullness
tion
Memo,
STREET, NEW YORK
Dealers Ass'n
Security
Y.
N.
Members
Pressprich 8C Go.
68 WILLIAM
Class A ,'v-:/'v
Market
'
MARKETS
TRADING
Tomorrow's Markets
Members St. Louis Stock
Exchange
Volume 158
Number 4216
THE COMMERCIAL & FINANCIAL
CHRONICLF
"Rail Securities in Peace Time"
A Basic
Change in the Making
\
Copies
1297
Denver and Rio Grande Western R. R.
r
CANADIAN
Creating the New Securities
-
on request
Circular
on
request
on
your
^SECURITIES'
letterhead
own
Aunor Gold
VlLAS & HlCKEY
Members
Stock
York
New
Exchange
.
Electrolux
,
(
*
49 Wall Street
PFLUGFELDER, BAMPTON & RUST
New York 5, N. Y.
.
Telephone: IlAnover 2-7900
Teletype:
'
r
■■
NY 1-911
economic
problems of transition from war to
What will be the effect of the transition period on
income, 'on business volume, on<^ —
business
profits,
prices of
common
market
look
finally
and
verted to
on
V
been
"■
■•••-:
>>•>:> V,:'
Grande
present
Western
securities.
The
new
which
will
government deficit spending after
the Armistice; but to a greater ex¬
contingent, started trading
will
come
to appear much less hopeful in
'the light of the problems that will
arise during the transition period?
Possibly aggravating and increas¬
ing the apprehensions and uncer¬
tainties that
will
with
come
tent it
the result
was
boom
that
interest
points
of business
Will
come
un¬
the
about this time with
initial
employment, the demobilization of
the armed forces, and the .conr
War
disturbance
I?
as
in
as
and
tional income, may be uncertain¬
when peace arrives.
production
and
regarding the peace settle¬
ment,
international, trade
rela¬
tions, tariff policies, and domestic
and
.
In
the
4,000,000
forces
foreign politics.
to
last
war
-
Although
conditions
after
pared
this
have
date
were
so
soldiers; in the armed
be
demobilized, com¬
with
about
80
to
but
a
have
current
bid—78%
as
the
auto¬
greater.
mobile industry were never con-
It is apparent
(Continued
on
page
that
1311)
can-
of the
accrues on
securities from
of the
case
well
below
the
value
of
tRGW
1,
Obligations
:
;
PHILADELPHIA
Teletype
PH
296
9
120
;>
and 297
v
Broadway
NEW
YORK
the
se-
4
recommend
the
purchase
of War Bonds
on
Circular
request
Mclaughlin, baird & reuss
WALL
STREET
TEL., HANOVER 2-1355
NEW
Minneapolis
Minneapolis
Minneapolis
Minneapolis
& St. Louis 6s
1934
& St. Louis 4s
Copy
du
1938
1951
Moines
&
Fort
Dodge 4s
WALL
New
Frederic H. Hatch & Co.
York
ST.
S, N.
Y.
Telephone HAnover 2-0360
Incorporated
63 Wall
Street
Bell
New York
5, N. Y.
Grande
Western
marked
Teletype NY 1-897
change in recent
is
based
on
the
in
territory served,
and the equally marked
change
for the better in
operating con¬
ditions
resulting from the im-r
provement in physical plant. Vir¬
tually the entire main line has
years
the nature of the
curities
they are to receive, and
plan is to be consummated
speedily this arbitrage spread will
if the
have
to
quent
close
up, with a conse¬
rapid enhancement in
more
the old than in the
The
lines
new
following
the
securities.
new
proposed
out¬
allocation
of
securities to the old bonds.
New Secu-
Preferred
Common
rities
been
rebuilt
With
tabulation
Market
Price old
Securities
a
ment
during
trusteeship.
improve¬
similar physical
in
the
connecting Western
Pacific, this route will finally be
in a position to
compete perma¬
nently for the profitable transcon¬
tinental traffic.
It is notable that
266.00
$970.90
48'/a
321.60
4.824
53 y2.
44
that the full benefits of
223.97
331.80
4.977
55 y4
45
250.01
159.61
sero
310.75
6,921
50 >/2
40
1.461
2%
89 Vz
.931 Sh.
1955_
on
bid
when-issued quotations.
tAlso distributive share of
the
exception
Western
of the Rio
collateral
bid
value
are
securities
to
do
of
the
receive.
no
securities
If
more
the
new
than
stay
80
143 '/2
5'/a
Cutoff had
never
the Dot-
up'to that
time been realized.
The
road
directly serves the
important Provo, Utah steel center
be this much appreciation left in which is considered
by competent
the Utah Fuel
4s,
1949, a portion of whose value is
represented by* the Utah Fuel
they
Bosque & Co.
72
1935
217.08
& RGW 5s,
ent
>>
1962
Iowa Central 4s
Des
Request
on
1949
& St. Louis 5»
Mortgage
Bonds
1932
& St. Louis 5s
Iowa Central 5s
stock.
the
old
bonds
between
consummation
of
now
and
(Continued
on
the
page
plan, plus
the income accruing on the new
securities
new
in
the interim.
securities
recent
prices,
move
as
If
the
is believed likely,
necessarily
participate in the rise.
Optimism towards the
outlook
for the reorganized Denver & Rio
Back the Attack
i
BUY
We
believe that the recent
hearing, at which it was re¬
quested of the Court to retire the Receivers' Certificates
outstanding bonds, of the
-
'ti,
1321)
forward from
the old securities must
;
WAR BONDS
.
makes
more pertinent than ever our
brief study on the
subject in which we attempt to analyze the result of
such action on various
outstanding issues.
Copy
upon request.
NY
1-1310
co.
63 Wall
specialists in rails
YORK 5
120
TELETYPE
New Income
(in reorganization)
1. h. rothchild &
Members New York Stock Exchange
ONE
with special reference to
SEABOARD AIR LINE RAILWAY
Post-War Prospects
on
MINNEAPOLIS &
ST. LOUIS RAILROAD
329.03
RAILROADS
Thoughts
Analysis of
318.92
and other
Some
Teletype: NY 1-2050
»/2%
stable at recent levels there would
We
3-8450
Western Pacific Railroad
the
In
and the general 5s, 1955,
the system bonds range
approxi¬
mately'10 points below the pres¬
South Broad Street
,(T WALL STREET, NEW YORK 5
WHitchall
new
stock,
INCORPORATED
123
r
Teletype BS 259
1936—
Grande
STROUD & CO.
Boston, Mass.
: :
GOi
LEROY A. STRASBURGER &
$349.60
1949—'
4s,
4s,
With
'34
request
upon
during the reorganization proceed¬
ings the Commission commented
♦Based
Serial
CAP. 0425
1943,
Incomes
1939—~ $970.20
1978^
Stocks
the
1936—
4s,
D
v
Tel.
♦Value of
DRG
Special
4s,
sent
148 State St.,
Bought—Sold—Quoted
'
D & RGW. 5s,
and
Refunding
1st
to
'88
Copy
a
-
DRG 4y2S,
Guaranteed
reference
Gold 5s, 1975
The
the
that date.
3-4%
Mortgage Bonds
particular
General 4s,
& St. Paul
first mortgage
Firsts
Equipment Trust Certificates
with
Milwaukee
since
forward
plan is Jan.
that income
ROW
Railroad Securiti
Chicago,
market
asked.
since moved
11,000,000 ex¬
the Army and
-
industries such
Rock Island
1%
bonds,
however, only the 1% contingent
pected to be in
war will differ in many important
portion accrues to the when-issued
respects from* those which; pre¬ Navy at the end. of this war. It is
buyer. ■
;>fV.;;
vailed after World War I, an an¬ also estimated that 12,-15,000,000
Present indications are that ob¬
alysis of business and market de¬ employees now in war work will
jections to the plan will be no
have to find jobs in
peace-time
velopments following the Arm-;
more than
perfunctory, in which
istice on November 11, 1918, is work.- In this war new industries
event reasonably early consumma¬
in new locations have been ere-1
•worth-while ir> any effort to gain
tion of the plan may be expected.
ated for the
building of tanks,
some prespective on the character
Certainly Judgq Symes has given
other
and dimensions of the problems airplanes,"., and
types
of
every indication of his own de¬
with which business and inves¬ armaments;,; The -: relocation >of;
sires to expedite the
proceedings.
tors will be faced. Detailed studies population ;in established peace-;
Nevertheless, unexpected delays
time industrial regions
may in-:
made by the research group show
have had a habit of
popping up
that the transition from war to crease the difficulties of readjust-/
in Section 77 actions and
delivery
ment. The unemployment
problem of
peace after the Armistice in 1918
the new securities within the
is likely to be
substantially more next
occurred with very slight .disturb¬
year - would
appear as too
severe after this war than after
ance
to
production, ■ commodity
optimistic- an expectation. With
the last one, at least for a
period -this
prices, or stock prices. In,the first
background, most rail men
of several months,
World War, however, only 25% of
have been advocating against the
the total output of goods and ser¬
Outstanding contracts j; will: of purchase of the when-issued
con¬
vices was devoted to military pur¬ course be much larger at the end
tracts, recommending instead the
poses, compared with 50% of the of this war : than last time, and
purchase of the old securities.
therefore the problems connected
gross national product that is now
These old bonds, with the excep¬
directed to the war. Some impor¬ with this will be
proportionately tion of the general 5s, 1955, sell
tant
■f
Toronto
Discussion of the Reorganization Plan
.
>
.; there
1-395
Montreal
—
few
a
are
contasts will
na¬
above
77
additional
an
points. -The income bonds
currently quoted 42% bid—
43%asked, the preferred 33 bid—
33% asked and the common 19
bid—19%
asked., The
effective
J
Some
ties
of
...
few
comparisons and
help to highlight the
situation that we are going to face
traction
*
junior securities were more real¬
istically priced in initial trading
little
World
and
around
demand for goods;
transition :V to
peace
consumer
This*>
first, mortgage bonds,
bear only 3% fixed
settled back
spending for inventory and for
machinery and of the high level
of
HAnover 2-0980
Bell Teletype NY
will
started immediately on
approval of the ICC plan by the
District Court on Sept. 15.
as
as now seen
WILLIAM St., N. Y. 5
New York
trading
developed after the last war was
partly the C result of continued
outlook
52
eventually be cancelled, it comes as somewhat of a surprise to find
trading already instituted in the new Denver & Rio
as
and pofits will probably be
high levels, or is it likely that
the change-over may prove suffi¬
ciently difficult so that the post¬
business
HART SMITH & CO
when-issued
—
at
The
Mines, Ltd.
Noranda Mines, Ltd.
::>"l
roads
national
war;
now.
Teletype—NY 1-310
Missouri Pacific and St. Paul, and the belief in
many quarters that
when-issued contracts for the new securities of those
peace.
in .the
!(err Addison Gold
New York 6
Considering the record of delays and uncertainties that have
characterized
arbitrage
in
such
operations
reorganizations
as
umes
war
Exchange
Railroad Securities
hence the physical conver¬
sion problem was not as great then
era
Stock
.>
;
Bell
beyond it to the
when business vol-*
post-war
York
•
Corp.
Fanny Farmer, Ltd.
Stssp Rock Iron Mines, Ltd.
work last time
war
they- have
stocks? Will the
Members New
Broadway
Telephone—DIgby 4-4933'
Recent military victories in the Mediterranean theatre and in
Russia indicate perhaps mor£ decisively than previous ones that the
tide of battle has turned strongly in favor of the United Nations.
-These developments are bringing; forcefully into the minds of in¬
the
61
>
The Transition From War To Peace
vestors
Mines, Ltd.
Brazil Trac., Lt. & Pr.
Go., Ltd.
broadway
COrtXandt 7-0136
n.
y. o. 5
Tele. NY1-1293
Street, New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
ports of the Ohio Municipal Advisory Council.
A few words here
about this Council, generally known as the O. M. A. C., would be
appropriate.
&
financial
! It
is an organization composed
(Incorporated)
of, and supported
1899
ESTABLISHED
Phone
Bell Teletype
CHERRY 0260
CV 496-497
OFFERINGS WANTED
the
of
entirely by the
and
dealers,
active
more
Cleveland 13, O.
v
The following information is taken from re¬
burden.
of their debt
OTIS & CO.
Tower
YxXV'f
/
War
paid
made by Ohio communities in the reduction
enviable record
to the
Certificates
Capital Stock
Prospectus on Request
Terminal
By J. A. WHITE
Assuming
Yz% Debentures '57
for
•
During this lull in municipal activity, while the Third
Loan is being made successful, some attention might well be
Voting Trust
*
; '
V'"'
Iron Mines Ltd.
5
Surplus Of STflNY Committee To
$35,015,000 Expected Receive Nominations
Ohio Stale
Ohio Municipal Comment
Steep Rock
a
investors; in
larger
few
ten
'' ■
'
■ "
■
1 '
available
information
political subdivi¬
Ohio
about
all
sions.
Reports are made continu¬
Ohio ously, both for individual subdivi¬
During and since
the depression of the early thir¬
ties, it has given sound and valu¬
able advice to many municipali¬
ties.
In addition, for more than
muicipal bonds.
in
and
sions
only
Kentucky
-
West Va.
-
complete
OP REDUCTION IN ACTUAL BONDED
FOR ALL OHIO SUBDIVISIONS
HISTORY
tion, it was indicated in figures
released last week by William S.
meetings
:
\
THE
WEIL, ROTH & IRVING
Jan.
1,
COMPANY
Jan.
1,
1933
1934__
1935
Jan.
1
1936-
Jan.
1
1937_:
Jan.
1,
1938
Jan.
1
1939
Member Cincinnati
Stock Exchange
: bonds
"
municipal-corporation
TERMIN AL
DIXIE
Jan.
Armstrong Rubber
York
L J. Schultz & Co.
York
Tele. NY 1-1541
District and the Mahoning
6.1%
.
-;
; 5.8
$941,744,841 on Jan. 1,
1, 1931.
y,,,:.
-
taxes
in
100% of the levy.
tax
levies,
assessed
severe
severe
a
valuations
reduction in
reduction in
and
a
severe
direct reduction in tax collections.;, At
combined was the same time heavy relief costs
only 0.7 of 1% of the assessed were added to the cost of
operatf
valuation of all the counties com¬
ing many communities. -;XA >
i
bined. As of Jan. 1, 1933, this ratio
Relief from this critical ■ situa¬
was
1.4%, showing that the net tion came from several sources.
As of Jan.
1, 1943, the net
Bldg.
I.
CV-255
Cincinnati
Tele. CI-574
debt
direct
as
a
burden of the coun¬
whole has been cut
1933.
in
half since Jan. 1,
As" of Jan.
1, 1943; the net
debt of all the cities
Markets in
Marathon Paper Mills
Philip Carey
In 1934 the sales tax was
direct tatiop from
in the state
(5,000 or more population) was
3.9% of the assessed valuation of
levied to
replace revenues lost by the re¬
daction in the real estate tax limi-
to 10 mills. In
Court rendered
famous Hudson Case de¬
15
.
1938 the Supreme
the
now
incurred
all such cities. As of Jan. 1, 1933, prior to the Jan. 1, 1931, and Jan.
this ratio was 4.9% and as of Jan. 1, 1934, tax limitations were not
1, 1934, 5.5%.
;
subject to such limitations and
could be paid from taxes levied
cision, holding that debts
.
U. S.
Printing & Lithographing
Cincinnati Bank Stocks
Clair S. Hall & Co.
Union Trust
Bldg.
CINCINNATI 2, OHIO
Phone:
Main
Tele. CI 156
1433
Hickok Oil
Toledo Edison Pfds.
Ohio P. S. Pfds.
Collin, Norton & Co.
1933-43 In
Retrospect
reduction in debt
has been accomplished during de¬
pression and prosperity, and de¬
This enviable
a severe
same
Stock
Tolddo
Cleveland Trust Co.
BOwling Green
Nat'l City
9-2432
Tele. TO 190
rate
The people of
prosperous
Bank
approximately the
at
in subsequent, more
as
years.
membered,
New York
Adams 6131
this, however, must come
contingent appropriation of $6,-
000,000 for post-war highway con¬
struction.
Thus
the prospective
be
could
therefore
Ohio
OHIO
.
,
the
only
such
before it at one of these
meetings and make his wishes and
the reasons therefore known.
of
Members
Committee
are
the
Nominating
William K. Porter,
Hemphill, Noyes & Co., Chairman;
Philip H. Ackert, Freeman & Co.;
Frank H. Blair, Allen & Co.; Wil¬
liam T. Mellin, Bond & Goodwin,
Grade
Grade
Bonds
Bonds
1.22%
1.60%
for
20 bonds
Date-
Sept, 29.
X > 1.41%
19
Sept.
221
15——
1.43
Sept, ; 8——
1.22
1.41
Sept.
1.42
Le
Sept. v.Y—
-I.
1.24
X-
i.62
1.24
1.61
1.45
-
1.26
1.64 '
1.45
X
1.27
1.64
the
1.29
1.67
1.32
1.68
•"
1.63
1.44..
1.25
1.45
1.26
1.64
Aug.
..
-
X
4—11
-
_
28—
July
21—X
1927, and due
1961, and 6% external sink¬
ing fund gold bonds of 1928 dated
April 1, 1928, and due Oct. 1,1961,
being notified of the extension
of time within which to exchange
1.25
1.44
Aug.
July
Republic of Colom¬
gold
bia 6% external sinking fund
Jan. 1,
4,1.61 %
"i 1.23
1.42
Holders of
-
bonds dated July 1,
1.60
Aug,
25J—
18—
Aug.- 111—.
Colombian Bond Offer
Lower
High ;
Index
•
v
Extension Of Time On
Ten
:■
—
X
'%
%X
1.48
%
•.
1.63
are
the
and
bonds
appurtenant
designated in the offer,
July
15—
dated June 5, 1941, for Republic
1.97
1.55
1.76 '
Mai","' 16—__
of Colombia, 3% external sinking
Foregoing tabulation was compiled by
J. A. White,
fund dollar bonds due Oct. 1,1970,
is extended from Oct. 1, 1943, to
takes precedence over payment of
April 1, 1944.
—1.50 ■'
coupons
—
operating expenses.
;
Issues After the War
,
During the 11-year period cov¬
ered by the above figures, the only
in which there was an in¬
in the total debt in the
year
crease
in
was
exchanges are being ef¬
through the National City
Bank of New York, as agent.
,%;•
The
Prospects for New Municipal
Be it ever re¬
moreover,
the
that
••
into 1939, but
during that year the
Ohio were
outstanding in
bonds
fected
0. Parr
Ayers With
Field, Richards Co.
(Special to The Financial Chronicle)
OHIO
COLUMBUS,
—
George
actually
wonder
by
reduced
One
$12,000;000.
' huw
much %
total municipals
hold uniformly that,
made
available
SECURITIES
,-X
upon
Municipals
Investment Securities
Tel.
Main 6S00
Teletype CV 07
J.A.White&Co.
Union
Carew Tower
CINCINNATI
Tel.
Main
0138
Central Bldg.
Cincinnati 2,
2
Tele. CI
<
\
Copies of the re¬
request from Vilas & Hickey.
Mayfair House Bonds'
Investment Securities
14, OHIO
■
the
Situation Interesting
For Our Own Account
Katz & O'Brien
CLEVELAND
that
print of his address discussing the
situation in detail may be had
General Market
Union Commerce Bldg.
believes
Knies
Mr.
most attractive.
Ohio
And
Merrill, Turben & Co.
Union Cent. Bldg.
CINCINNATI
■'
Los
peace-time future of rail securi¬
ties has been more than under¬
rated .and the outlook for them is
We Buy
OHIO
Joseph Feiss Co.
reprint of the address of
Arthur C. Knies on "Railroad Se¬
will actually be brokers and dealers at the
during another Angeles Stock Exchange.
of debt requirements public works program.
Manufacturing Co.
tractive
in Peace Time—a Basic
than
forced to Change in the Making," given be¬
Los
Angeles
security
increase in fore the
more
is
-
curities
-
Perfection Stove Co.
be
Inc.; Eugene Stark, Merrill Lynch,
Ten
Composite
and the court deci¬
National Screw
Tele. CI 150
to appear
Index
/
Tele. CV 174
will
meetings held, and the com¬
mittee invites and urges members
open
Municipal Price
sions of Ohio,
of Cleveland
Common
CLEVELAND
alternates.
These
Pierce, Fenner & Beane. y
M. A. Hanna Co.
Fied, Richards & Co.
five
xx%
laws of Ohio,
the payment
Union Com. Bldg.
Vice-President, Secretary,
Treasurer,"three members of the
Board of Directors, two trustees of
the Gratuity Fund, three delegates
to the National Convention, and
$35,-
around
be
-
Second
deducted.
000,000." ;, ;
be
President, First Vice-President,
program and should
The
net surplus
foundation
Committee will
the
December:
surplus would be reduced to about
$39,815,000, from which $4,000,000
will have accrued for the school
1938.; During that
many, and perhaps most commuities have voted tax levies outside year subdivisions throughout Ohio
were issuing many bonds-in con¬
such limitations for both operat¬
ing expenses and debt5; service. junction with grants and loans
from
the
Federal
Government.
(Some comunities, for example
Some talk has been heaM lately
Hamilton County, voted permis¬
of the prospects for the issuance
sion, to levy outside the limitation
maintained
Exchange (Associate)
Chicago Board o/ Trade
Associate Members New York Curb
"Out of
a
1943,
6,
At these
ation, recommendations and sug¬
gestions from the membership, in
respect to the following offices to
be filled at the annual election in
1944,"
31,
Dec.
said.;,yA ■%-'iv%;
Mr. Evatt
state
New York Stock Exchange
Clei eland
$45,815,000 above budgetary
by
and
reduction in the tax
Parr Ayers has become associated
limitation. Effective Jan. 1, 1931,
with Field, Richards & Co., whose
the voters of Ohio wrote into the
main
office
is
located
in
the
state constitution a tax limit of
Union Commerce Building, Cleve¬
15 mills, unless levies be yoed the taxes necessary to pay all the of a considerable amount of muni¬
land. Mr. Ayres for the past ten
outside
such limitation by the debt outstanding at the time.) Of cipal bonds after this war, pos¬
years has conducted his own in¬
people of the community. Effec¬ course, the passing of the bank sibly in conjunction with Federal vestment business in Columbus.
tive Jan. 1, 1934, this limitation holiday and the debacle of the aid in another vast public works
Prior thereto he was with Hunt¬
was reduced to 10 mills.
thirties, has brought increasing program. On can hardly deny that ington Securities Company.
were
Furthermore, as the above table property values and increasing tax grants for suchf purposes
made on a vast scale in 1938, but
shows, the assessed valuation of collections, y' '
yf/ ; •
'■>
it is interesting to note from the Railroad Securities
But' even
during the
trying
taxable property in the state took
above
figures that during that
a, tumble in 1933 from which, de¬ years of 1933-35, the subdivisions
Good For Peace Time
year the total amount of bonds
spite gradual increases each year, of Ohio as a whole reduced their
Vilas & Hickey, 49 Wall Street,
outstanding in Ohio increased only
it did not recover fully until 1943. total.debt by $100,000,000. In fact,
New York City, members of the
Finally, one need not be reminded the annual reduction in debt dur¬ $2,115,000, or 0.3% of 1%. More¬
over^ to a certain extent this pro¬ New York Stock Exchange, have
that the depression of the early ing
the
depression
years ; was
gram of public works carried over prepared for distribution an at¬
spite
MEMBERS
..
outside the limits.
rev¬
accumulate
would
levels—Ohio5
;.v%XX;;x.i
Thus, in 1934, the subdivisions of
Ohio were faced, all at the same
time, with a
basis—assuming
will remain at present 1943
well below
areas
many
this
"On
enues
of
reduced the collection.
thirties
debt of all counties
Exchange
ties
Trading
9,089,802
9,162,336
9,174,832
9,276,151
9,526,386
10,020,343
m /.
Valley Sanitary District.
of the
state has been reduced $362,559,000, or 37%, since the peak on
Jan.
New
7.5
7.1
.
Thus, this total debt
1932.
Youngstown Steel Car
Teletype
'
peak total debt in the state
on Jan. 1, 1931, $976,901,771,
reduced to
CLEVELAND 14, OHIO
.
-
The
M. A. Hanna
Union Commerce
—
.—
Conservancy
was
Members Cleveland Stock
$9,985,252
8,782,658
8,683,853
8,702,584
8,710,268
'
7.7
580,930
581,804
" 559,869
540,124
511,398
471,130
$264,313
—-
1,
Preferred
Wire to New
7.4%
8.0
650,408
617,529
714,292
716,307
1940__ _XX-~- ~-704,059
1
.—799,823
765,388
>
1941_—
—
1,.1942_--—
:
Jan.
1
1943—
—
^X
Actual Reduction __'X---~-—
Per
Cent Reduction—.—---.-—
Consolidated Elec. & Gas
Private
—
Jan.
O.
2,
„<X
to Assd. V.
$735,443
702,553.
667,123
$898,600
864,205
835,233
—
$68,673,334 for the same period.
Valuation
679,573
5.4
643,842
4.7
614,343
$284,257 ...
32%
36%
;
^
•/;•<
V". "Figures for Total Debt and Net Debt dp not'include debts of Conservancy; arid
Sanitary Districts, State Bridge Commission, or State Universities, -except
\N.et
Debt figures since 1935 include
an allowance for most of the, debt of the Miami
BUILDING
cincinnati
Jan.
1,
an
compilation totaled $83,945,249, exceeding by $15,271,915
the State's budgetary estimate of
requirements
-Assessed'
of 1943,
listed in
as
Tuesday" and
5
glad to receive for their consider¬
official
about
% of Net
"Net Debt:
"Total Debt "
Date—
Jan.
eral fund revenues
on
Oct
from 5 P. M. to 7 P. M.
one-third of the biennium, gen¬
or
/
'
close
In the first eight months
DEBT AND IN DEBT BURDEN
Thousands of Dollars)
(In
the
at
Evatt, State Tax Commissioner.
The; Council
AS A GROUP
Club
Luncheon
Wednesday,
available to its members
Ohio
of
surplus
of Governor
John Brickner's third administra¬
the Council has made maintains permanent offices in the
the most
Cuyahoga Building, Cleveland.
and the most reliable
years,
net
a
fund
of
communities.
Ohio
approxi¬
mately $35,815,000 in its general
information
overlapping r debt of
the
about
of New York, Inc., will hold open
meetings at the Produce Exchange
biennium, the State of Ohio will
have
These reports are
source
hold steadily % The Nominating Committee of
the Security Traders Association
revenues
during the balance of the 1943-44
form for
summary
all subdivisions.
the
Thursday, September 30, 1943
financial chronicle
the commercial &
1298
Teletype
489
CI
163
Seligman, Lubetkin & Co., Inc.,
Broad Street, New York City,
have
prepared a new descriptive
report
Ohio
on
the bonds securing the
Mayfair House, 60 East 65th
^Telephone
Parkway
41
7340
New
York.
from
the
Copies
firm
upon
are
St.,
available
request.
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4216
"Let The Dealer Beware!" Interprets
SEC Decisions
In "Let the
•
380,000
Recent
i
question of the rights and obligations of the
York Bar discusses the
acting as^ principal and interprets recent important deci¬
sions of the Securities and Exchange Commission revoking the regis¬
trations of certain over-the-counter dealers because of their, failure
to disclose to customers what the Commission felt were "excessive
dealer when
mark-ups."
vV' "
| The book does not go into the
question of the rights and duties
when
the
dealer
is
acting as
.
broker
Oar
the
is
discussed,
will
increase
-
funds.
stantly during the years, of re¬
construction
which will follow
J
of
-
(at
Securities
shall do any
anything dis¬
and
Florida
pany
shall take advantage of every op¬
Power
Light
currently
are
a
of
range
107
com¬
bid
on
bid
the
side,
while
Io>va Power 314s of 1973 are bid
at the public offering price of
10814, with 109 fixed as the
.asking figure.,
Lj
•
paraging about his fellow-dealer.
It does mean, however, that he
i04!4,
higher
•
.$■.
'
■•5'
v;
&
Light
Com-;
financing which embraces
Illinois Iowa Power
v*
$45,000,000 of bonds, $10,000,000
Another Big One
ported
;;
completing
Co.
is
re¬
extensive
debentures and 140,000 -shares
refunding program which may be
portunity to enhance the prestige
of preferred stock. This project - ready; for
of the business from which he has
registration within a
decided to earn.his livelihood and Us subject to a delaying amend-1 fortnight, calling for the sale of
some $70,000,000 of new issues.
build and maintain his good repu¬
ment. "
.
an
,
tation.
i
;
4;;.
"v.■
{.
business under existing laws
is nothing covered that
shall not be revealed" and that
"There
entire
business life—are as opep as the
sky. This, however, does not
actions, .records
his
—
.
that
mean
his
when
tongue
vyants to speak
—
of
of law
the
of
administration.
the ! author
who
has
To the
declares,
this
of
manner
the
of
cpnviction is the one who will
to perpetuate the security
business for all reputable dealers.
help
Cooperation between the deal¬
and the SEC, between one
,
ers
3%s
year
,
-
and
preferred stock.
Rochester Telephone
ing the
ing oil
Co.
holdings of 48,140 shares of
of
lar
sec¬
preferred and 120,000; shares
of
Rochester Tele¬
fire.^
to
•.
a. group
is
.
on
4
of
the
■
to
reference
to
Continental
Moore With
.
Glaybaugh
(Special to The Financial Chronicle)
,
MIAMI
BEACH,
FLA.—Victor
.
Claybaugh
&
Lincoln Road. Mr. Moore
is
merly
reported scheduled
handle public offering of some
an.
officer
of
Co.,
420
was
for¬
United
Se¬
as
point
of
view, "more
tention is paid to
neces¬
per
copy,
profitable
the
shortage, etc;,
change the mode
of both city and sub¬
gas.
reacted to
of, living
urban .dwellers.-
The
answer
these problems seems to be solved
offer
the
the
a family
today in maintaining a house or
larger city apartment.
A
survey
erties
that
1st
as
renting
has shown
a
increase and what is
of
season,
considerable
more
annual basis than
erties.
\
■
We
ever
■
are
using;
the
Mayfair
this
period
alone shows
of .about $87,0001
equal to
STANY Presents Ambulances To
Army & Navy
was
treated to-an; impressive ceremony
Security Traders Association of New York, Inc.,
presented four ambulances to the U. S. Navy and four to the U. S.
Army 011 the steps of the Sub-Treasury Building. The funds that
made the presentation possible were raised in the financial district
by a committee headed by Walter F. Saunders of Dominion Securities
Corporation, with a total of 305 individuals and firms taking part
The
Co.
offer
attractive
providing,
however, that while
dny accumulated interest remains
unpaid, the portion of the net in¬
come
allocated to
poses
shall be deposited with'the
corporate pur¬
Trustee to be applied and distrib¬
uted to bondholders to
liquidate
any unpaid accumulations. At the
present time these accumulations
unpaid for the. 1938 through 1940
mortgage
years amount in total to
$21.55
per $1,000 bond.
y :
The first mortgage fee bonds 011
the Mayfair House at current level
t
-
under
40 seem considerably underpriced in relation to the facts.
>
TRADING
MARKETS
REAL
IN
ESTATE1
SECURITIES
3%
an
annual in¬
over
SHASKAN & CO.
which is
on
<
Members New York Stock
i.
many
financial
district
in
the
drive.
Photo
•
,
shows, left to right, in foreground: B. Winthrop Pizzini,
Association, making presentation; Capt. E. R. Eaton,
for the Navy; George E. Price, well known Wall Street and Broadway
impresario; Capt. H. G. Lewis, for the Army; and Mr. Saunders.
President of the
new
own
July
tenants!
furniture.
1943,
being
month, produced
profit of
a
summer
over
son; at which time occupancy
be close to capacity.
tions will
will
existing condi¬
prevail for this type of
property for some time to come
as the trust mortgage provi¬
and
sions
are
1-953
using
The month
a rooms
We believe that
Bell Teletype NY
Dlgby 4-4950
are
depart¬
$15,000, which
in itself was considerably more
tpan the same 1942 period." It fol¬
lows, however, that the real in¬
crease
in profits will cumulate
from tpe October 1st renting sea¬
ment
Exchange
Members Nevy York Curb Exchange
40 EXCHANGE PL., N .Y.
as
request,
Haloid
for sinking
"purposes
Maintenance costs will be reduced
last Friday when the
and
surplus
ently outstanding pn the property.
of
situations, according to memo¬
randa prepared by Herzog & Co.,
170 Broadway, New York
City.
Copies of these interesting memo¬
randa may be obtained upon re¬
quest from Herzog & Co.
such
fund purposes
25% of such surplus for corporate
the $2,574,500
First Mortgage: Fee, bonds pres¬
their
berg-Carlson,
of
surplus for participating interest
50%
yearly leases
crease
War
Co., StromDictaphone Corp.,
before.
man¬
such
October
circular entitled "Rail¬
roads—Some Thoughts on Post-
Machine
prom¬
of
only $172,compared to yearly leases, as
1, 1943 amounting to
$259,000.
Rent roll from this
&: Reuss,
Attractive Situations
oc¬
This condition will naturally pro¬
duce larger earnings for the prop¬
of
teresting
Gisholt
new
ising is the fact that a larger pro¬
portion of leased space is now on
an
25%
000-
Exchange, have just issued an in¬
;
the
following
ner:
made of these prop¬
shows
cupancy
to be used in the
in effect amounted to;
Wall
upon
est, totaling up to 5% per annum,
the indenture makes
provision for
can participating interest from avail¬
surroundings able remaining net income, such
inconveniences and. surplus above 5% on the bonds
problems which confront
during
V.
Prospects." Copies of this
circular may be had from the firm
extent that net
In addition
to the fixed and additional inter¬
ended Juqe 30, 1943 was 80% but
St., New York City,
members of the New York Stock
■;<
to The
homelike
source
One
annum
The average occupancy Of the
Mayfair House for; the (fiscal year
Broadway, New
cost of two dollars
Baird
per
income is-available.
comparison and $700.00 under the
next lowest property.
;
'
-
32
McLaughlin,
with additional interest
payable Aug. 1 at the rate of 2%
annum
800 per room/ lower than one of
other properties used in the
Post-War Rail Prospects
(-
to
gage Indenture provides for fixed
interest at the rate of 3%
per
four
the importance
1
problems,
has
changed conditions as its
funded
debt
capitalization
per
room of only $6,300 is about $2,-
Particular at¬
y-
were
from the
I' Copies of "Let the Dealer Be¬
ware!" which was prepared with
the collaboration of C. P. Keane
may
be. obtained from Keane's
Publications,
charges
4.V4/:/• 4;4
The effect of the war, changing
economic
conditions, servant
it seems to be in a
position to derive the most benefit
certain'other dealer cases.
York City; at a
yearly.. basis
.
earned.
properties,
Leeby cases and
the Lee and
of
a
Park
Avenue
at,:65th
Street, New York City to illus¬
trate this type of property, as in
comparison to other comparable
into safer and, from a
fields of business.,
reduction of the mortgage
through
sinking fund operation. The mort¬
ran at a very low occu¬
during the summer, usual¬
ly operating at a sizable loss in
House,
guide for the dealer
longer term
a
earn¬
ings
this slack period, even though on
year
period,
curities Corporation.
in too many cases.;
' /
" "Let the Dealer Beware!" is not
a
book of reformation, but is in¬
tended
bondholders, the increased
pancy
Oil
;.'■»•
Moore has become associated with
One of the Street's .leading un¬
derwriters
stocks of 12 lead¬
companies, with particu¬
common
Blair:; F.
* ./•;
Exchange,
sary
:
aver¬
full
should
produce
sufficient
funds to pay in excess of 5% an¬
nual interest and to
provide for
October
common
Company
Stock
Company.
■
ond
York
have prepared a pamphlet analyz¬
; A large stock operation, grow¬
ing out of the sale by .the New
York Telephone Company of its
,
so
fair
the
in
occupancy
without
twenty-five
40,000 shares of
sonable.
now
age
properties, $>a
the. New
of
Rochester business men,
to the extent
such
many
although maintaining
by the apartment hotel which
phone
sion
sequence,
Wood, Walker & Co., 63 Wall
St., New York City, members of
of honest
profitsand compensation
,fbr intelligent service ..are
the
things which will make for a
steady enhancement of the, deal¬
er's franchise and the" gradual
lessening of government supervi¬
Oil Situations Interesting
Apartment hotel properties have for many years been extremely
occupancy has been subject to considerable fluctua¬
as many of the leases have been for
only fall, winter and spring
months. -Many suburbanites have closed their houses in the
country
during the late fall and winter months as living in the city dufing
such periods proved more convenient and
comfortable.
As a con¬
tion
follows with $16,000,000
dealer
and another,- the nurturing
concepts, fair and prac¬
tical treatment of customers, rea¬
70,000;
Appear
popular but their
Power
their
dealer
honest
Reacting to Benefit of This Type of Real Estate
First Mortgage Fee Bonds On Mayfair House
To Be Attractively Priced
f
contrary,
courage
and
HAnover 2-2100
Bright Future For Apartment Hotel Securities—Changes
Brought About By War and Economic Conditions
of convertible
preferred
stock, while California Electric;
regulation thereunder—
or
even
or
bonds
Security Dealer& Association
New York 4
shares
provision
existing
any
is listed for $25,000,000 of ?
refunding
he
when he has
what he believes to be a just .crit¬
icism
&
with
next
pany
dealer is to sit back
a
hold
and
Power
Light Company
$37,000,000; first
mortgage bonds, due for competi¬
tive bidding and $7,000,000 gen¬
eral mortgage bonds to be sold
is
his
his
■/• Funds from this
operation, with
$15,200,000 from the recent sale
of properties, would be applied to
retirement of approximately $87,000,000 of 5 and 6 ?er cent debts
how .outstanding. The new issues
without
competition.: • ,1 ";r
may be available for competitive
Central Power & Light Com-,
bidding before Thanksgiving time.
Utah
•
The dealer must realize that in
York
Real Estate Securities
/,
Power &
prospective"
the
is
44
Sound
/Indiana 314s of 1975 brought out
at
102% are: selling a point
are
Largest
Broad Street,
41
10714 offered. Public Service of
$133,000,000
that any dealer
or say
the
Incorporated
Members New
broad way.
a
the performance
over
manding
listed for a total of
in -mortgage / bonds
and debentures, plus some 250^)00
shares of preferred stocks. ~
projects
Commission to eliminate from the
malicious act
with
Seligman, Lubetkin & Co.
has
such
4lis, for example, brought out
;
Utility; Possibilities -y
Large
upon request
five such issues it de¬
or
Puget
;
Exchange Commission. Four such
and with the
security business the "under-thecounter dealers."
This does not
mean
attention to
Offering prices.
4.. 4444' v1 'U:MU4 ivZ■'4
tration
cooperate
must
dealers
themselves
among
over-the-
the
that
is
pressed
counter
■
drive
loan
war
velops that, without
exception,
they are ruling at or above their
per ;
Refinancing
plans of several
•" v
/'Vy.
utility companies still bulk larg¬
the main thoughts ex¬
est in the list of Issues in regis¬
war.
One
of four
working capital
add to its
and
con¬
Complete reports sent
mar¬
of the more recent
investor
Looking
>
short7
Hotel Bonds
issues indicates
respite growing out of the
Treasury's
cent bonds due Oct. 1 next year
the
which
value
a
feels
liquidate
to
term bank loans, redeem
franchise
Federal
dealer's
of
the
that the
(Continued from page 1295)
necessary
City
corporate
new
Reporter's
some
available material in
legislation. The value
applicable
author
kets for
turned
they are, the author believes, too
well known and too. well estab¬
lished and defined under existing
Attractive New York
Recent Issues Behave Well
agent for his client, for
or
common
A sampling of prevailing
>,
.
~
~~
'
'
new
Details have not yet been made
public, but it is assumed that the
program for this shift of the com¬
pany's ownership to the public
will1 be announced shortly.
Robert Spies of the New
Beware!" Murray
of
stock of the company.
Revoking Dealer Registrations
Dealer
shares
1299
particularly favorable to
Pittsburgh Rys.
Look Good
The
current
situation
in
Pitts¬
burgh i Railways System, particu¬
larly
certain
of
the
underlying
bonds, offers attractive possibili¬
according to
ties for appreciation
a
study prepared by T. J. Feible&
Company, 41 Broad Street,
City.
Copies of this
interesting study, which is avail¬
able to dealers only, may be had
man
New
upon
man
York
request
& Co
from
T.
J.
Feible-
THE COMMERCIAL & FINANCIAL CHRONICLE
1300
Thursday, September 30, 1943
Active
First Boston issues
We
Public
pleased to announce formation of
are
the
specializing in the wholesale distribution of
Insurance Stocks and Bank Stocks
Stocks
The
First
Boston
Corporation,
100
Broadway, New York City, has
just been published providing a
ready reference medium for in¬
Huff, Geyer & Hecht
stitutional
■
Robert H. Huff
Boston
New York
10 Post Office
V:
WHitehall 3-0782
HUBbard
Chicago
FRAnklin
0650
CONNECTING:'
SYSTEM
WIRE
PRIVATE
basis
NEW
YORK,
BOSTON,
Enterprise 7008
This Week—Insurance Stocks
By E. A. VAN DEUSEN
;■
for
a
in
editions
previous
1
Utility Securities
company's reorganization plans having become effective
Puget Sound Power & Light moved from its previous
issued, over-counter" market to unlisted trading on the New
York Curb (where it should not be confused with Puget Sound
Pulp & Timber).
It has been one of the most active issues on
13,
"when
both
new
Board of Directors
elected.
formerly a
subsidiary of Engineers Public
Service.
It was, however, over¬
capitalized and had substantial
dividend arrears on the $5 prior
(
The
877,162
350,065
Loss
245,279
273,272
reserves
206,476
Net premiums
written.
Net premiums earned.
215,861
47.5%
45,9 %
41.8%
38.9%
89.3%
84.8%
profit—
9,998
27,628
income—__
8,923
•
Combined
ratio
und.
Stat.
inv.
Net
A--./-*;'
ratio
Dividends declared
<-Not
available.
655,000.
For
Available upon request
1942
Members
6,983
120
$26,-
year:
Stock
York
Exchange
Telephone: BArclay 7-8500
Bell
These 60
companies show a de¬
cline in
net
premiums writtep
off less than 5%, in spite of an
estimated
New
BROADWAY, NEW YORK 5, N. Y
;
.
around
of
cut
L.
Teletype—NY
1-1248-49
Gtbbs, Manager Trading Department
Loss reserves,
it should be noted,
automobile
are
cluding workmen's compensation.
Turning now to individual com¬
panies. Two tables are presented,
writings. Most" other
casualty lines have expanded, in¬
The tabulation also shows that loss
some
and expense
11% above June, 1942.
follows:
as
I
Table
shows
the
ratios are both sub¬
stantially lower than a year ago,
premiums written, unearned pre¬
mium reserves'' and surplus, for
that statutory underwriting
profits,
before
adjustment
for
change in premium reserve equity,
14
also
as
well
companies, as of 6-30-43 com¬
pared with 6-30-42.
Table
II
ihows
statutory underwriting
profits and net investment income,
net investment income,
as
considerably higher.
are
oefore Federal taxes, also
Offset¬
ting this, however, is the fact that
Federal taxes are at the highest
writing loss
:or
the
level in the history of insurance.
the
same
TABLE
Unearned Premium
(First Six Months)
Reserves
1943
6-30-42
($000)
Am.
Casualty
Fid.
Am.
Cont.
3,008
2,484
2,489
.711
1,425
2,082
2,113
216
220
1,371
1,699
15,542
15,969
11,959
11,618
11,845
Cas.
15,015
S.
B.
—.
Bonding
Nat.
Cas.
New
Amsterdam
Cas,
Surety
Acc.
6,822
12,446
3,037
4,083
10,279
11,984
6,613
8,264
able
8,681
6,974
6,998
5,911
8,685
2,329
1,131
1,140
1,542
1,837
six months of last year,
8,721
8,996
; 7,536
7,530
8,775
896
3,022
4,369
9,621
8,931
7,719
9,396
20,241
19,331
23,465
U.
S.
Guarantee-
3,482
2,631
4,303
3,478
8,743
10,728
$105,972 V $99,240
$98,113
$103,831
$134,881
$108,425
TABLE
Stat. Und. Profit
II
Net Inv. Inc.
Loss Ratio
Expense Ratio
-(First Six
1942
Cas.
Excess
Ins.
Fid,
Cas.
&
Mass,
1942
1943
$0.65
$0.39
$0.38
$53.6
$53.8
$36.0
0.40
$38.4
0.65
0.23
0.24
67.8
68.4
28.6
26.3
2.63
0.83
0.89
50.5
49.7
38.7
38.4
S.
and
Cas.
Amsterdam
Cas..
Surety
0.15
0.14
51.1
54.6
38.7
39.0
3.03
3.62
45.0
44.8'
42.1
37.4
11.41
2.45
2.62
20.8
23.5"
63.5
—1.11
0.97
1.20
31.9
27.1
74.9
61.6
such
2.13
;
Nat.
New
8.02
2.52
2.69
47.9
42.6
38.8
38.1
54.6
the
48.2
42.0
43.9
41.5
41.4
1.11
1.93
0.65
0.67
0.04
0.21
0.82
0.90
51.4
2.46
6.98
0.70
0.71
52.3
While
health."
1941).
After the
in the
tries
may
fishing and shipping indus¬
(curtailed by war activities)
help sustain operations. The
northwestern
territory,
with
taxes.
Un¬
the first
over
except in
of Hartford Steam Boiler.
Deposit,
Coulee, has excellent possibilities
both agriculture
and industry.
Is
there any danger that the
for expansion in
company
will suffer from Govern¬
may-
formed,
in
Speculation
Board of
men
from
ton.
The
a
slate of nine business
the
State of Washing¬
principal officials of the
already local men.
Missouri
Pacific
general
4s of
1975 at current levels represent an
equity in the speculative poten¬
tialities inherent in the
new
con¬
solidated Missouri Pacific system,
which
constitutes
an
important
link
in
the
network
of
national
company are
Earnings have been on the up¬
Steam
Hartford
ratios. The explanation for
diversity is to be found in
differing types of premium
pense
business
written.
Public
Utility Preferreds
instance,
For
25.2
17.7
43.2
30.6
2.16
7.15
1.10
Fidelity and Deposit writes mainly
1.29
47.9
49.3
38.8
37.2
U.
S.
Fid.
Guar....
1.36
1.63
0.82
0.83
45.3
48.0
41.8
40.7
U.
S.
Guarantee.—
2.99
6.02
1.10
1.28
29.0
29.4
54.6
36.5
fidelity and surety business, while
New Amsterdam Casualty writes
Stand.
Acc.
&
that, whereas net premiums writ¬
other liability,
workmen's compensation and auto
earned premium are 1.1%
lower, property damage, and very little
but
here
again
six companies fidelity and surety.- ' :
ten
show
Note—Figures in this table
will
It
be
observed
in
are
before Federal taxes.
Table
I
by the group are down 2.3%,
moderate gains. All 14 of
companies show considerable
largely
auto
Figures used in the tabulations
the
show
expansion in surplus, aggregating Best Co.'s
reports.
moderate
increase.
Un¬
were
Bought
—-
Sold
—
Quoted
and
nevertheless six of the companies
a
its
fertile farm land and huge power
reserved in Bonneville and Grand
Boiler, Seaboard Surety and U. S.
Cuarantee have exceptionally low
loss ratios but relatively high ex¬
11.85
55.1
Federal
improvement
case
—0.47
-
of
over
continued growth in this ter¬
ritory is anticipated, and recovery
transportation, according to an in¬
teresting memorandum prepared
Net investment income, in most
grade this year, and for the 12 by Otto Hirschmann on the situa¬
instances, also
shows improve¬
months ended July 31 the amount
tion.
Copies of this interesting
ment.
Underwriting ratios, both
applicable to the new common memorandum may be obtained
loss and expense, are better than
stock
(after adjustment to the
upon, request from Mr. .Hirsch¬
last year in some instances and
new
capitalization, and with al¬
not so good in others. The record
lowance
for
increased
income mann, care of Halle & Stieglitz, 25
is quite mixed.
It will be noted
taxes against interest savings) is Broad St., New York City.
that such companies as Fidelity
the
-0.30
B.__
before
derwriting profits show consider¬
4.63
Bonding
Seaboard
1943
riods
4.63
i.
Dep
Hartford
1942
—0.66
—
1943
2.16
Cas..—..
1942
$0.10
&
1943
question
accordance with the
ing profits and net investment reorganization plan, to recommend
income are given for the two pe¬
nomination and election to the
5,585
20,178
bill
two-thirds
war,
stockholders' committee has been
underwrit¬
1,114
11,001
&
In Table II statutory
22,982
14,754
22,604
Fid,
credited to surplus.
were
818
1,246
1.13
—
company's cus¬
ment
power
competition?
This
remain re¬
seems unlikely since rates are al¬
29.9% for the group.
This sub¬
garding the balance of a property
stantial gain results from higher
ready very low—residential revewrite-off to adjust to original cost,
market values for the companies'
(Continued on page 1319)
such adjustment should not sub¬
portfolios of stocks, plus undis¬ stantially affect the present satis¬
tributed earnings in 1942 which
factory balance sheet set-up.
A
Attractive
14,984
11,574
to$3.03% and the 65,000-odd
"clean
some
924
11,148
one
Engineers' equity interest was re¬
duced
a
14,501
23,400
Cas.
St.
received
shares,
share for each 20 old shares.
-
846
Guar...
—.
new
be
well-staffed
15,451
6,821
Fid.
Cont.
a
1,352
S.
Totals
qualifying
will
trading shares which it now holds will
department department, specializ¬ probably be liquidated, according
ing
in
orders
for
banks
and to press reports.
Puget Sound completed a bond
brokers. Also maintained will be
refunding program last April, sub¬
one of the best financial libraries
in the United States containing stantially reducing fixed charges,
records that have been preserved writing-down plant value, etc. The
since an early date. (Whitaker & refunding, together with the re¬
capitalization, gives the company
Co. was established in 1871.)
and
men
16,724
1,441
1937—
;
;
1.01
■
Edward
Fourth
1,016
U.
&
1938——
stock.
The firm will have about 27 sales¬
1,210
Dep..—
Fid.
North
300
at
as
Offices
Co.
2,556
&
Am.
located
&
9,369
Fid.
Am.
will be known
Jones
D.
5,945
Cas.
:
Co. &
Edw. D. Jones
17,526
:
&
Stand.
6-30-43
($000)
2,965
Excess' Ins.
Seaboard
6-30-42
—
.
Fid.
Mass.
Surplus
.6-30-43
($000)
Cas.—
&
Hartford
expense ratios,
companies, and
comparable periods.
14
I
Net Prems. Written
1942
under¬
and
same
,98
1939—-— '1.24
:
pref. stock and $6 (second) pfd.
tomers live in rural areas outside
The reorganization plan, as
of incorporated cities and towns,
amended by the SEC, provided for
and this portion of the business is
a special payment of $2.50 a share
on
the
prior preference
stock probably not affected to any great
extent by war-time industrial ac¬
(the" regular dividend has been
tivity.
In 194£ only 17 Mi % of
paid for the past two or three
electric revenues was from indus¬
years) and a "stock dividend" of
trial plants, and the gain in in¬
25%, the combination equalling
dustrial
revenues
amounted
to
ST. LOUIS,
MO.—In the "Fi¬ the $27.50 arrears which had ac¬
only about 2% of total revenues.
nancial Chronicle" of Sept. 16 the cumulated prior to 1940.
The $6
While the war has therefore not
proposed merger of Edward D. preferred received eight shares of
been a big factor in the electric
Jones & Co. and Whitaker & Co. new common stock for each share
operations, Puget Sound has ben¬
was
reported. At that time the of preferred (including arrears).
efited by increased bus business
common
name of the new organization was The
stock, formerly all
owned by Engineers Public Ser¬ (which last year contributed 17%
given as Jones, Whitaker & Co.,
of revenues, and increased about
but we have since been informed vice with exception of directors'
that it
in
25%
A.
1.28.
—
•
Laird, Bissel! & Meeds
16,228
5,960
...
Quarter ended September 30
9,763
»
incurred
taxes
Federal
.
1940
Firm To Be Known As
STOCKS
223,469
210,923
Loss ratio
Expense
BANK
198,787
234,048
premiums—
Unearned
U
NEW YORK CITY
1941————
/About half the
•
772,876
276,621
v 1942.-—
'
1
was
company
,
Policyholders' surplus..
g
The
Sept.
since the
■
Total admitted assets-
Teletype N.Y, 1-344
have not yet been
the
This week comparable figures are shown for a list of
booklet is divided into three sec¬
casualty insurance companies, whose stocks are more or less actively
tions, covering, respectively, bonds
traded.
';
of major utility companies, mort¬
Alfred M. Best Company, in its September "Insurance News,"
gage and debenture issues of tele¬
shows
combined
figures
for a<8>——
phone
companies, and actively
group of 60 stock casualty com¬
traded utility preferred stocks as
panies as follows:
well as many of the less active
6-30-42
6-30-43
Analytical Comparison •
-($000)
issues.-.-''■
v
figures.
!;H
Puget Sound Power & Light
permit of the inclusion of data on
that much discussed subject
As
;
-
Boards recently, with volume averaging over 10,000 shares a
day—eclipsing the old-time Curb^leader, Electric Bond and Share. estimated at $2.03 per snare. On
Trading interest was stimulated the same basis, but without ad¬
recently by declaration of a 60- justment for taxes, share earnings
cent dividend, action being some¬ in recent calendar years are esti¬
to
what
earlier
than
anticipated, mated as follows:
detail
and
number
sufficient
this column presented 1943 semi-annual figures
list of fire insurance stocks, compared with 1942 mid-year
Two weeks ago
Public
sheet
impact
the
-
Street, New York 5, New York
Telephone HAnover 2-9500
influ¬
Balance
of increased
Federal taxes upon earnings re¬
ceives attention, especially with
respect to the "Tax Cushion Ra¬
tio" as a supplement to the usual
yardsticks for measuring dividend
Also for the first time
safety.
Original Cost studies as to Prop¬
erty Values are now available in
Bank and Insurance Stocks
./■
49 Wall
are
stance,
6011
PORTLAND,
PROVIDENCE, Enterprise 7008
non-recurring
adjusted to reflect the
latest reported accounting studies
and commission rulings.
For in¬
TO
Enterprise
HARTFORD,
eliminated.
items
CHICAGO, ST. LOUIS, LOS ANGELES, SAN FRANCISCO and SEATTLE
TELEPHONES
with
cosip
&
Members New York Stock Exchange
on
ences
7535
CG-105
1-2875
NY
;
135 S. La Salle St.
Square
Laurence M. Marks
.
published
reports.
However, reported figures not be¬
ing comparable as between com¬
panies, certain adjustments have
been
made, whereby incopie is
shown
on
an
"earning power"
George Geyer
;
Public Service of Indiana Common
>
of
holders
other
and
Peoples Light & Power $3 Preferred
The statistical material is based
largely
John C. Hecht
by
prepared
utility securities.
67 Wall Street
Massachusetts Utilities Associates 5% Preferred
ity Bonds and Public Utility Pre¬
ferred
.
General Gas & Electric $5 Prior Preferred
Utility Survey
The 1943 edition of Public Util¬
co-partnership of
Trading Markets in
compiled
Alfred
from
'"
*
•
M.
Paine, Webber, Jackson & Curtis
ESTABLISHED 1879
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4216
158
in
A-B.A. Economic
form
but
Policy
When
on
the
us
shall
we
plans
peace
that
Stability
And
Checking Inflationary Influences
Monetary
Budget
Its
Balancing
be. better off with
BUY WAR BONDS!
have
with
no
second
throw
Stabilization Plans Discussed-r—Asserts U. S. Cannot
Back
the Attack!
rushing
comes
to be changed
plans.
suggestion is that
groups
of citizens accept these
broader problems as their own,
study them now, and be ready to
than
A
International
same
problems of nations getting
along together. The fashions in
thinking about them change more
than
the " problems
themselves.
Stabilization Machinery
Without
the
essence
old
Commission Sees Need For
Promote
in
1301
their
influence
for
a
Wood, Gundy & Co.
con¬
Incorporated
tinuing sane foreign policy. Bank¬
ers especially
have such respond
The need for post-war economic planning: now, "while the spirit sibility. HBy the nature of their
is on us," is urged by the Economic Policy Commission of the Amer¬ occupations they have some un¬
ican Bankers Association in a preliminary report issued on Sept.. 13 derstanding of these subjects and
on "The Place of the United States in the Post-War Economy."
The unusual - opportunity for leader¬
Commission, of which the .chairman is W. Randolph Burgess, Vice- ship in their communities. It is
Chairman of the Board of the National City Bank of New York, is the the- informed
opinion
of such
within
the ^ Association •>
speaks for it on economic forts. In this process the presence
of an institution as a mechanism
questions
-'•/ f
j
- NV The report, which is offered as to encourage consultation would
group
ernment
Bell
-
......
.
.
_
"a
■
.
nary,,
s u r v
.
1 i mibrief
e y
'of
pr e
practical
ob¬
jectives
for
the ■ ■'.post-war
e c o
mic
n o
be
useful,
lender
its function
but
of
as
a
only prop¬
can
money
erly begin when a sound economic
program has been put into effect.
"Furthermore, it should again
be
emphasized that the United
States
cannot
successfully pro¬
of wise gov¬
action which may make
it possible to avoid in future
of
the
for
errors
tears."--
some
we
are
This
•
report
brief,
survey
tives
for
world,
in
which
paying in "blood, sweat and
now
and
it.
1
is
of
the
preliminary
a
practical
post-war
this
objec¬
By BRUCE WILLIAMS
country's
bility without making determined
efforts to put its own affairs in
Releasing the Forces of Recovery
different
order by
the
approaches-to
checking
in
it," reviews
the
world
econ¬
balancing its budget and
inflationary influences.
Confidence in the dollar would be
omic recovery
and set's forth
enhanced
further
In the avalanche of literature
subject of world economic
covery two
reveal
by a clear cut
be
may
called
which
no
says
may
covery
key
It
to
initiative and enterprise, and sug¬
gests that "the more realistic ap¬
proach
assumes
forces
each
exist
even
that
potential
today within
its reconstruc¬
country for
tion and that what is most needed
is
to
these
release
firmative forces.
there
powerful
af¬
In every country
of able and ener¬
ready to
restore the normal ways of life
and add to its richness," it says.
"What they need is not philan¬
thropy but opportunity. No people
are
getic
and
groups
and
men
women
nation
no
handed
be
can
a
better life.
They have to work it
out for themselves."
The
report
also
"real
the
analyzes
various proposals for the currency
the opinion
that some kind of ap¬
paratus should be worked out to
help nations to stabilize their cur¬
rencies. But it raises a question
of
institution
a new
tion of existing
be
establishment
whether the
to
as
more
the adapta¬
or
machinery would
effective
and
observes
that "there is much to be said for
building
upon
machinery
already exists."
which
must be founded
regenerative efforts of
the
"Basically,"' , the
Commission
concludes, "stable money is pos¬
sible only with stable national
economies. Towards this goal the
and
initiative
at times
and
enter¬
by government par¬
Post-War
>Economy
Spokesmen for all parties, all
faiths, and all parts of this country
are
today saying in chorus that
after
this
war
international responsi¬
away from
bilities as
War
did
we
after
Both Houses of
I.
back
cannot
we
genuine
dollar in which the
world has full confidence. Regard¬
less of the standards adopted, or
restrictions,
the
a
organization
set up, some
strong currency must in fact be
the main steadying influence.
So
far
can
as
foundation
now
foreseen
be
currency
the
must be the
giving
The
expression
this
to
Administration
thesis.
it
states
second step
"The
establish
definite
the dollar and the
should fee to
rates
pound sterling
major
part
of
has
trade
world
been conducted for the
past
cen¬
Once the values of the dol¬
pound are determined
tury.
lar and the
will
others
cial
aid
is
follow.
needed
Where finan¬
it
should
be
granted only after due considera¬
tion
of
vidual
the
case.
merits
in
each
indi¬
Each country must of
work out its monetary
salvation largely by its own ef¬
necessity
be
surpluses.
reason¬
some
the latter
use
Canada, unlike
other
At the
present time the export
of Dominion internal securities is
potent factor in the building up
a
of
U.
S.
dollar
balances, and it
logical that this flow will
seems
continue while the Canadian dol¬
lar
maintained
is
level.
its
at
vy-.
.
little
a
heavy.
British
wicks
were
The
supply of
New Bruns-
Columbias,
Manitobas, which had
and
previously weighed
ket,
-
and
was
term
Saskatchewans
easily
more
the
on
mar¬
largely reduced. Shorter
also
were
and
placed
Nova
Scotias continued in demand.
With regard to
Nova Scotia,
holders of its securities would do
well
of
to consider the advisability
switching into comparable New
Brunswick
issues.
The
latter
province has recently handled its
finances in an excellent' fashion
and
if, for example, Nova Scotia
are sold in
exchange for
New Brunswick 5s of 1959, it is
5s of 1959
possible to obtain
ferential
present
of 40
Internal
From the
favorable dif¬
a
basic
issues
points.
continued
in
point of view of
steady demand and, between now
the
Dominion,
balances
thus
and the end of October it should
created are undesirable, and how¬
be
possible to make attractive
ever unwilling the Canadian auth¬
purchases as there should be a
orities might be at this stage to
good supply of free exchange re¬
consider
reversing the wartime
sulting from internal bonds called
expedient \ of establishing their
for payment on Oct. 15.
currency
at
a
10%
discount,
nevertheless,
might
As
due reflection, it
on
be
to
prove
beneficial
a
expected, the market
ap¬
pears now to have lost its heavi¬
in preparation
period, and with
wartime restrictions still in force
tion of the upward trend, espe¬
the
cially
had
simplified.
possession, where we have
reasonably free hand for
nearly half a century, the stand¬
a,
ard
of
living
is shockingly low,
because the progress of
partly
civilization has cut the death rate
while the high birth rate goes on
of
as
old.
Perhaps, after all,
we
not
are
yet
strong
enough
nor
wise
enough to reform the world im¬
mediately.
and
programs.
principles
that
the
Even
=
will
and
less
We
the
tion
and
normal
step
for the post-war
adjustment process would be
(2) Restoration to parity
would be
sign of strength and
a
would be more
in
and
attraction
capital
permanent
The other kind
of approach to
problem, and one that seems
be more realistic, assumes that
sirable
influx
of
an
based
the
unde¬
on
ex¬
change speculation.
(3)
Canada since the
become
war
leading creditor
a
tion, and if the normal
has
process
rise eventually in the Dominion
cannot safely
principle
will
of
survive
assume
collabora¬
this
testing
powerful affirmative forces.
farmer
wants
to
till
the
soil, the
artisan wants to fashion shoes
clothes
or
machines,
wants to trade.
there
getic
are
restore
and
the
trader
In every country
groups of
men
the
or
able and
ener¬
ready to
ways of life
women
normal
there should
be
a
standard of living; imports from
this country should increase and
with the Canadian dollar at par
(4)
tute
a
the"step would consti¬
virtual export bonus to this
country, it is reasonable to sup¬
pose that Canada would obtain a
quid pro quo in the shape of an
certain
to
in
the
price ceilings of
staple exports
Canadian
this
for
country.
(5) In conjunction with a fur¬
ther lowering of tariffs in the
post-war period envisioned in the
exchange of notes between the
Secretary of State and the Cana¬
point of view, the
key to post-war economic revival
in Washington on
1942, this step would
stimulate the flow of goods be¬
should make plans now, while the
is
tween the two
spirit
the •
initiative
and
enterprise
through which alone the better
life people everywhere desire can
period.
We
V
indeed
may
the mistakes of the
'20s
repeat
and
'30s,
The normal human emotional
action
leads
makes
that
capital
re¬
and poli¬
way,
of
such
re¬
first
suggestion for avoiding
tragic blunder is that we
this
is
on
for
us,
putting
into
effect the principles for which we
fight.
do
It
net
war
of
is
course
how
end,
will
to
easy
know
will
world
not
portunity.
tion
can
They
What
they
philanthropy but
No people and
be
have
handed
to
a
work
no
better
it
op¬
na¬
life.
out
themselves.
actions.
A
and add to its richness.
need is
be
know
do in substance.
or
that
We
we
kind
do
of
no
detail but
we
The problems in
the main will be like those
after
World War I—problems of secur¬
to
-
be
not
dian
this
the elimination of obstacles
the
when
what
left.
in
say
or
From
achieved.
Such
a
program
is
denial
of longer term ideals
objectives. It is, in fact, the
most effective step towards them.
Any list of these obstacles is
and
more
or
proposed
less; arbitrary
here
to
but it is
discuss seven
Nov.
30,
ity, of trade, of money, changed
-
(Continued
on page
1302)
American Flyers
Downed In Siberia
The
we
and
crews
aircraft
can
Kamchatka
Siberia
terms
turn
to
the
market
for the past week, from the angle
of price movement there was very
previous week was still in evi¬
dence, and it seemed clearer that
the downward trend of the past
come
to
an
end.
International
cording to
by
patch from
inactive
the
on
Eastern/
under
Law,
ac¬
broadcast from Mos¬
a
heard
Reuters,
News
London
said
Service
on
an
dis¬
Sept.
25,
which added:
It
possible that the planes,
report is true, had com¬
pleted a raid against Japanese in¬
if
was
the
stallations
in
the
Kurile
Islands,
the northernmost of which virtu¬
ally touch the
lower end of the
Kamchatka Peninsula.
We
specialize in
CANADIAN
Government
and
virtually
un¬
-
Municipal
Corporation Securities
•
H. E. SCOTT CO.
49 Wall
Direct Dominions and Nationals
were
in
interned
were
of
down
Peninsula
little to record. However, the bet¬
ter tone that manifested itself the
month had
planes of Ameri¬
forced
countries.
•
•
Russia Said to Intern
Minister
When
anticipated
offerings in con¬
large volume.
International
As
increase
any
cow
their cost would be lower.
The
usual
;a
not
nection with the loan will be in
na¬
is
followed,
is
likely to result
retention
the
of
it
as
that the
to
*
peace.
following reasons:
It would be a constructive
(1)
this
—
ferent
solution for the
right kind rather than
But
principles
mean
many potential forces exist even today
things to many people. Differences within each country for its re¬
deep ;v cleavages — arise
when construction, and that what is
they are embodied in definite most needed is to release these
between
—the two currencies in which the
as
heavy
to
'
•
/
.
ness;
bonds
are
no
longer
pressed for sale; after the close
of the Canadian Victory Loan
drive there should be a resump-
in
The principle is ac¬
forms.
many
tics
dollar.
coun¬
placed under what we
democratic government,
are
regard
World
Congress
have been considering resolutions
seem
quite dif¬
compelling when
the war is over, when we*turn
with
relief to
the
pursuits of
any
tries
to it that other
see
Fund
~'
changed, as were Ontarios
Quebecs, although the latter
insular
Place of the United States in the
The first
requisite for
example, it is suggested that
must
off
might
billion
the
Aid
belligerent countries,
does not accept lend-lease aid.
it is our task to put it
together again piece by piece, but
on
a
greatly improved pattern.
we
from
Mutual
expedient since
believe
For
country
all
whereby
year
able reluctance to
pieces and
"
plans
towards stabilization is a
-stable dollar free of all exchange
thousand
a
but the primary task and that the standard of living of
is one of releasing the natural all peoples is raised and the dif¬
forces of recovery."
ferentials between theirs and ours
As the report comments on the reduced.
several
These are appealing objectives,
currency
stabilization
plans it may be noted here that but one may question their help¬
the U. S. (White) proposal was fulness as practical directives for
referred to at length in these col¬ our post-war efforts. Apart from
umns April 8,'pages 1300-05; ref¬
the, enormously complicated proberence
tou the
British (Keynes) lerris of human relations, even the
plan appeared in our April 15 vast resources of the United States,
issue, page 1388, while the Can¬ the British Empire, the Soviet
adian
proposals were given at Union, and China, which would
length in our .issue of July 15, presumably share this duty with
page 201.
us, are inadequate for these pur¬
The report of the Economic Pol¬ poses. Recent
reports from Puerto
Rico indicate that in this our own
icy Commission follows in full: ;
United States must lead the way.
progress
into
reach¬
lend-lease goods to
There
who
ticipation,
cepted.
-
2
that
states
prise. These efforts can be aided
through government cooperation
.
stabilization, including the Keynes
and White plans, and expresses
tered
'
,
progress
individual
ofobstacles
elimination
-
Commission
The
upon
economic revival is to be found in
the
.
as¬
post-war
to
'
di¬
be
rected."
the
value."
Those
2}4s
solution,
the somewhat
this
can
siphon
consciously or unconsciously hold
this viewpoint see the world shat¬
and
arrangement
earlier
Canada
this
payment
partial
a
there is also
ed
the
idealistic • approach.
gold, in foreign trade, with
deviation
from the present
was
dollar
first
able in
well
Burgess
and
for
call
Dominion
1945
®
■;
recent
of the
of
themselves.
The
policy making the dollar redeem¬
"the
strategy of re¬
that
The
re¬
points
it
serts
dollar balances.
general points of view
around
R.
necessary
exchange to service her U. S. dollar obligations.
Today the position appears to be entirely reversed.
Now it would
seem
the problem is to avoid the undue accumulation of U. S.
anomalous
on
;■
seven
W.
the
place
country's place
.
only a little over two years ago when holders and pros¬
pective purchasers here of Canadian external securities were con¬
siderably exercised with regard to the ability of Canada to raise
~::•'■■■■
international monetary sta¬
mote
System Teletype NY 1-920
It is
economic
world and this
Street, New York 5
Canadian Securities
groups in the support
which
14 Wall
St., New York 5, N. Y.
WHi'tehall 3-4784
Tele. NY 1-267F
THE COMMERCIAL & FINANCIAL CHRONICLE
1302
ABA
Economic-Policy Commission Sees
Heed For Stabilization Machinery
(Continued from
1301)
page
points
at
which the
strategy of recovery may well be
I
directed.
United
V
Relief
the
not
from
is coming
from.
funds
have
countries
abroad
the United
to
be
months after the
for
perplex¬
ing one. Wrong rates would in¬
vite, serious difficulties as proved
after
true
The rate question cannot be set¬
peace
questions
which
cannot
be
re¬
basic
terms
of
peace,
includ¬
be
needed
farm
tools
lated and put into force promptly.
to;
From the point of view of eco¬
ing boundaries, should be formu¬
replace those destroyed and some'
nomic recovery the point is that
minimum
of
simple
industrial'
machinery ; and
raw
materials. the men and women trying to re¬
the
League
work:
-
.
with
its
decisions,,
together
inherent defects in the
some
here,
No
maintain
store
their
countries'
can
industry,
better produce many things with; agriculture, and trade would be
her own-resources and thus start' retarded by uncertainties—if peace
•terms, were unsettled. Their task
the wheels of trade moving. As to
will, be hard enough
and they
removal of this first obstacle to
.
the United Nations Food Confer¬
it
was generally agreed that
period immediately after
the
be
areas
of
freedom
from
hunger
in
aided
by
reducing
the
uncertainty—
doubt and
and
increasing the number of
verities pn which they can count,
and on which they can base acV;"
tion.
control, its price
stable, and its
payments and receipts
were too great
external
/.;
v
is general agree-, well balanced. A stable currency
ment in this country • that there is a logical result of a sound econ¬
must be, at the conclusion of the omy and cannot exist
long in its
overcome.
•
-
,
mechanisms and guarantees
to prevent war. As yet this senti¬
absence,1'
ment has not
bilization
war,
cific
forms.
crystallized in spe¬
The principal move
The basic requirements for sta¬
from
of
Peace
easy.
this
terms
far
is
must
be
twofold in charac¬
are
It
was
lasted there should be coordinated
action by governments both ta se¬
increased production and to
cure
prevent
speculative
and
violent
fluctuations in prices.
;;
»•'•
Already a United Nations re¬
lief organization is
being, created.
Herbert H. Lehman, former Gov¬
of the
ernor
State of New
York,
who heads the
American partici¬
pation,
stated
the
follows:
■
objectives
:■':%'T'TT•-
as":
"The idea behind the Office of
Foreign Relief and Rehabilitation
is to help people to
help them¬
selves.
When
people of
a
we
have assisted the
freed country to get
into the ground we have
crop
taken the most
important forward
■ jT
"We will supply seeds and farm
implements and in
some cases raw
materials to get factories
again.
When that has been done
will be ready in
short
a
their
running
countries
many
time, we expeqt, to solve
long-range problems."
own
2.
Some
chiefs of state of the United
Nations whose energies are ab¬
Prompt Peace
months
the sugges¬
tion was made for a long armis¬
tice or cooling-off period before
peace terms were finally settled,
ago
and
definite
more
form
and
is essential
to
peace.
■
3.
Collective
It is in the second
proposals
this year
Czechoslovakia
British
.
and; Jugoslavia.
national
institution.
tentative
stabilization
.' Two
things
there
tional
tions
clear;
seem
must
be
organization
of
sideration
of
organiza¬
or
sort .for
some
First,
interna¬
an
the,
international
con¬
prob¬
and
20
inter¬
April, of
both the American and
made
public
While these agreements lay down
aid in the prosecution of peace as
well as war, they provide no
spe¬
cific commitments or mechanisms.
an
In
re¬
made
been
Treasuries
the
principles applying to mutual
more
that
area
have
for the establishment of
Kingdom,
China,
Russia,
Belgium, A Poland,,, the
Netherlands,; ':j Greece, ,:-Norway,
for
programs
known
as
currency
the White
On August
Treasury made
Keynes ; plans.*
American
the
public a revised version of its ex¬
perts': plan.
Both Governments
have wisely refrained from rigid
and premature adherence to any
particular formula
vited discussion.
and
have
in¬
AC:.'
are
rightly concerned lest settlements
made
of
under
lead
war
edy of
ful
an
the
to
emotional
stress
the terrible
peace is an
better
a
such
shadow, enter¬
prise does not flourish; the stand¬
ard of living is held back.
Na¬
has
exposed
the
spend
great.
•
for
and
war
terms
external
and
internal
will
The world lias known
riods of peace.
long
pe¬
The Pax-Romana
the
Pax
sweeping
Britannica.
a
It
termed
is
phrase, for there
serious wars.
But
even
so
a
too
were
bal¬
of great,
which the lot of the
was., one
progress,
in
average man
be
The idea of established and
cure
peace, not
se¬
tally concerned. No one can go
forward courageously with enter-:
through the domi¬
nance of a
single power, or a bal¬
ance of
power, but an association
prise until at least the basic out¬
of
lines of the peace are settled.
many
disorganized, dormant,- or
as in Germany and Cen¬
gold value and
•
in Europe and America
cooling-off pe
improved
Until the principal peace more than in many earlier cenare determined trade both
turies.
stagnant in the countries most vi¬
feverish,
arma¬
weaknesses of the
riod.
is
troubles of the '20s and '30s. Espe¬
cially is the advance planning on
ments what might
go for the peo¬ which a high level of employment
ple's comfort and, enlightenment. so largely depends blocked by
Enterprise must confine itself to doubt of the value of money, The
short run transactions and can¬ depression of the middle /30s cer¬
not boldly plan and venture the
tainly owed some of its severity
long term project. The risk is too to fears about money—about its
tions
ance of power in
Europe, the Brit¬
ish-fleet, and the persistence in
A sound and just neutrality by small countries, did
indispensable first step give the term some
justification.
post-war world.
We know that this second
discussion
there
tral Europe after the last war and
in France' during the, monetary
In
war.
trag¬
Notwithstanding all this, pub-
When
money.
history
Europe has lived in the shadow
period
lie
of
of
^
to
Ranking close to the hazard of governing board, except by small
as an obstacle to human ma¬
changes
under certain
circum¬
progress
is the changing stances.' ,• v.;,;;
trade is
its
unworkable and venge-
peace.
,
Both plans
war
of
years
been
people
lems, and, second, that the United
question about the value of money,
many
powers lias
minds.
been
nurtured
conclusions
ness
of bank
enterprise
good¬
Money and
deposits.
grew
into hiding
about the
timid
;
and
went
-V;
together.
time
the
which will surround
it
is
us
after the
been
before, to reduce the areas
of doubt, to fix the points 'of the
compass.
Only so can the people
who want to plan, who want to
trade, who want to provide work,
war
essential,
as
has
said
go
ahead
rency
with
value is
assurance.
one
Cur¬
of the factors
basic to decisions in business and
by government transactions.
The necessity for currency sta¬
Tennyson wrote of
provide
discus¬
monetary questions; 1 to
information which is; a
-
necessary
basis
for
sions; and to make
sound
deci¬
some
arrange¬
credits in
for stabilization
ments
stabiliz¬
to
the
for
where they are
cases
justified, or
temporary seasonal or emer¬
for
credits with provisions for
gency
early liquidation.
with
the
Bank
The experience
International
of
Settlements showed to those who
studied its operations the value of
such an institution.
On a moremodest scale the
ment
Tripartite Agree¬
encouraging
the
possibility and
another
was
example
value
of
of
the needs of the
be
met
.
consultation.
best
Whether
situation
would
by modifications
in
the structure of the Bank for In¬
ternational Settlements
establishment of
is ia
question
a
fully explored;;
by the
institution
or
new
which
should
Speaking
be
gener¬
ally, there is much to be said for
building upon machinery.'which
already exists.
;;
.
.The
that
no
second
essential
institutions
of
point
.
this, sort
is
are
substitute for the
hard, patient
reestablishing the eco¬
nomic soundness of participating
countries, of the balancing of
budgets,
and. readjustments
to
post-war
conditions.
Especially
labor
of
important is the economic condi¬
tion
of
the
key
countries,. the
economic
established
and
sort
England.
of
credit
To
before
programs
would
invite
are
failure
of specified and loss. In their present form
limitations would be required to neither of these
plans gives ade¬
parry out measures recommended quate ; recognition,; to{ this
truth.
by the board, to faring their ex¬ Clearly there must be a, sharper
changes into balance. Such meas¬ distinction between operations in
ures, it is stated specifically by the period when economic adjust¬
the Keynes plan, might include a ments are in
process and the later
devaluation of currency, control
period of more nearly normal
the agency in excess
capital movements, or even
over
such
domestic
measures
board deems appropriate.
as
the
;;
White
The
purchase and liqui¬
dation of the large volume of in¬
ternational balances frozen by the
.
essentially
a
long-term oper¬
plan would provide .for
the compilation and exchange of
information as to foreign balances
and the flow of funds and trade.
Each
,
•The
Keynes
proposal
ambitious
more
of
the
is
two,
conditions.
ing
an
plan in its original
form would charge the exchange
,
uncertainties
of
of
place
sound
the
welter
currencies;
meeting
this
rates.
In
help nations in
extend
pound, and for most of
ation.; In the, re vised plan there
dollar, were firmly
remains
a, provision
for taking
anchored to and freely exchange¬
over a part of these balances.
The
able for a given amount of gold.
plan apparently would
It was one of the- sources; of the Keynes
permit large credit extensions for
great material progress of that
indefinite, periods
at ' nominal
period.
*
\. "
~
;
the
to
their
in their balance of
payments could borrow: other cur¬
rencies. Countries borrowing from
war,
when the
able:
States
ning behind
them.
These are, first, that some in¬
ternational - institution
is
desir¬
Under both plans countries run¬
fund with the
The period bf "Pax Britannica"
was also a period of stable money
about
however, certain prin¬
United
(-
repre¬
govern¬
ciples which have been clarified
by
the
discussions
up
to
this
cent
Security
For
final
There are,
cluded by the .United States with
United
between
different
have been going on. While
are under discussion
be premature to draw
collect
the
of
plans
monetary;arrangements.
value
was one, enforced
by the legions
danger of embodying of. Rome. More
recently the pe¬
passion in those terms. riod from the fall of
Napoleon to
logic of this suggestion is the-World War has
and
in
sums
central
a
Conversations
1942, has been the Mutual Aid
Agreements which have been con¬
the
terial
to avoid the
understandable,
the
for
sentatives
sion
second is
-
agreement, which
winning a prompt
more
technical question of international
January,
The
.
hate and
The
ap¬
danger
that
fund, and pro¬
lending appear to be
safeguarded,
a
ter.
-
tail
to
ground.
beyond the At¬
-
a
Step.
4
the
tions
visions
lantic Charter and the United Na¬
tions'
Declaration
of
direction
contemplate the set¬
Nations must commit themselves ting up of an international agency
sorbed in the direct war effort to placing their force back of the —the White plan, an actual fund
essential decisions, for peace. V
of gold, foreign exchange and se¬
But agreement on the
kind of
•It is not proposed here to make curities;
peace may help to win the war,
the
Keynes
plan,
a
as it affects the attitude and mor¬
a detailed recommendation on this
"clearing union," to begin at least
ale of all the belligerents. Polit¬ point
Manage¬
but simply to emphasize without capital assets.
ical decisions -made during
the that, such a, guarantee of peace in ment of the credit agency would
war are not merely
preparatory our time is a necessary basis for be vested by both plans in a gov¬
but are part of both the war and full economic
recovery. The risks erning board with broad powers.
the peace.
Already the declara¬ of war block long term economic Under both plans member coun¬
tions of the Atlantic Charter and planning and enterprise. Peace is tries would
be encouraged and
the
North
African
conference even more essential for prosperity aided in fixing their currencies.
Once values are fixed, members
have
begun
the
definition
of than prosperity is. for peace. .•
:
could
not
alter
their
exchange
peace.
This is.the:kind of prep¬
rates without the approval of the
7;
4. Monetary Stability
aration, carried into greater de¬
and satisfy hunger.
agreed that while shortages
peo¬
available would be much smaller
and based on member
contribu¬
ing
this
negotiated in the last analysis by
energy
own
would
,
less
in
respect
The first concerns the gen¬
eral political and economic back¬
in
emphasis at first
man
plan
involve
point.
areas
devastated by the war," with
upon cereals and
other foods which maintain hu¬
this
assuredly
can
stable currency unless
Today there
>
that
Admittedly i all
"the first call will be to
war
reach
ojust
country
a
reasonably
.
ence,
White
parently
to
the
to
will
in. the
'The
main
present
addition
itself
official summary of the results of
to meet the wants of its
ple.
leaders.
the
little serious difference
of opinion seems likely.
In the
I. >■,/
and the country is trying
scarce,
it :would
>
recovery
War
World
dollars, -■> and
by creating large demands for our
products at a time when'goods are
ments
In
war.
Beyond this minimum Europe
a
be
countries. borrowed
these
food to ship.
With
the food
and
be
will
in the United States both
by caus¬
ing an expansion of Federal Re¬
credit to the extent other
its budget under
solved I immediately, such as., as¬
this, however, will require
control of consumption and stim¬ certaining the true ownership of
ulation of production.-. The prob-i property,.forms of restitution, etc.
These can perhaps best, be dealt
lem of food relief is not. merely
with later by commissions.
But
one of finance but of having the
seed
ent currencies will
.
serve
level
To do
>
.
support
their
essentials there will remain many
some
end of the
lack
loans
trying to
counteract the inflationary influ¬
ences created
by war.-, The effect
would be particularly
inflationary
League structure,
reason¬
.
countries,, will
continued
will
which
throw
.
need
disrupted.
Many
adequate re¬
serves
of gold and foreign ex¬
change.
For practically all, the
problem of finding rates of ex¬
change that' truly reflect the in¬
ternal purchasing power-of differ¬
Some great statesmen strove to
make
Old trade chan¬
will** be
countries
world
its internal economy is in order-
The
cease.
peace essentials
may
have
the added advantage of telling the
another. For that purpose
lend-lease by the United States,
by England and the British do¬
minions, perhaps shared in by
American
luctantly, by the other allied na¬
tions but just failed of ratifica¬
tion by the United States Senate
together with the treaty of Ver¬
sailles and the pledge of joint se-.
curity with France and England.
nels
making
highly incredit.1 facilities-in• a
flationary
Axis peoples what to expect and
thus encouraging them to over¬
imposed
able
way or
Latin
League of Na¬
a
with the support
foreign payments.
Many al¬
ready are far along the road of
internal inflation.
provisions' for
would set up vast and
tled alone,,; It goes along with all
the: other problems of peace and
war and trade
barriers reviewed
and
advance determination of
food
that
so
of
the
Briand,
Stresemann, Smuts, Cecil, Benes
and Litvinoff.
The handicap of
non-participation by the* United
States, the failure of others to
Nations
immediately hostilities
to
But the first essential
be supplied in one
buy food.
.
is
m-owi
Today there is growing a con¬
viction that the general terms of
peace should be agreed upon by
long, for even the next
not stolen by the Axis, will
substantial
relief.
Some
crop,
bring
7
despair and Hitlerism.
Todav there
^
did
group of able and respected
1922, and then only half
reparations question Americans. The charter was drawn
partly settled by the before the .war was won. It was
Plan ; jn
1924:; and not accepted, perhaps somewhat re¬
^
,
last
not
is
^
he
a
The
in 1929.
greatest obstacle to progress on
every front.
The shortage need
proposal for
tions
only
wholly settled by the Young Plan
Meantime in a depressed
Europe were sown the seeds of
When
mu.
treaty
a
,
.
When President Wilson launched
his
of
Dawes
fighting ceases, the first need will
be food; lack of it will be The
oe
l'OOu,
iacK
oi
n win
ue nio
x
States- ratified
one.
was
but food—where the
war
next meal
illustrated
only in
a
Europe report
that the most discussed subject is
Refugees
,
peace.
after World War
this difficulty.
The
bility is again being widely rec¬
the Fed¬
John Fiske,
ognized,-but it will be hard to
the great American historian, of achieve. Many countries will be
the "American Political idea," the impoverished; and
in
disorder,
federation. of
states
to
secure With seriously disturbed balances
The experience
essential
1.
the "Parliament of- Man,
eration of the World."
Thursday, September 30, 1943
Hon.
9
the
James1
Canadian
L.
Iisey,
required
•
1
for
are
early
not
for
such
the
kind
post-war
construction.
.
i
.
re¬
V
A third point relates to the gen¬
eral scale and scope of the opera¬
tions of such an institution. Presi¬
dent
Dodds of Princeton has re¬
cently suggested
that any inter¬
organization "must not
attempt to frame a super-govern¬
national
ment
so
new
and
unfamiliar that
will not be prepared to par¬
men
ticipate in Jt." The-Keynes plan
clearly violates this principle; the
White plan also is open to that
objection in its present form both
with
respect
the
money
to
the
amount
United, States
of
would
the be asked to put in and the extent
and to which we and other countries
Finance
likewise
of Ca¬
made
public tentative proposals
nadian experts
for a post-war currency
'stabilization plan which incorporated many
of the features oi the White and Keynes
plans.
appropriate
institution
would
June
*On
Minister,
The short term, bank¬
credits
tion
surrender
in
freedom
monetary
of
principal of limitation of
is especially applicable to:
ac¬
The
policy.
power
an
in¬
stitution whose board might rep-
(Continued
on page
1314)
•
and
than
a
before
year
Pearl Harbor—U. S. Army
Air Corps officials notified
of the urgent
us
need for
v.„
and
program,
studies of anti-aircraft gun manufacture.
was
at
another
urgent*
job that had
to
be
Without
waiting to learn what aircraft job
assigned to us, we provided 600,000 sq.
ft. of additional plant space and, from our own
personnel, began to select engineering, metallurgi¬
would be
cal
and
manufacturing specialists
It
for
They would need to be forged, cast, stamped,
machined, cut and fitted without the slightest error
in their dimensions
once.
work.
this
or
Our
behind it
space,
w
relationship.
could look within these sections as the
work of assembly goes on, you would see a be¬
wildering network of wires and tubing as well
as the structural skeleton of the
ship. Every one
of these 1,963 separate wires and over 1,000 feet
production and purchasing specialists de-
IF YOU
H
LOOK
just three months after our first meeting
Corps officials that we were officially
notified our job was to build the
complete nose
and center fuselage sections for medium
bombers,
including installation of their complete me¬
provides the bomb carrying
If you
Many of the metal parts presented entirely new
working characteristics. They required elaborate
heat treating processes for the extreme stresses
demanded of them. They also presented new prob¬
lems in the design and use of the dies required to
shape them.
new
Bombardier, Pilot, Co-Pilot, Navigator and Radio
Operator is often called the "brain" of the ship.
Nearly all the mechanical and electrical controls
are
here, while the center section immediately
COULD
WITHIN
was
with
Air
OVER
TO
14,000 PARTS
BE
FORGED, CAST,
of tubes—to say
STAMPED, MACHINED AND
—
chanical and control systems.
a
The big nose of the
bomber, which houses the
r
a
Already we were making Army trucks in great
number, completing a huge tank arsenal, building
field ranges and tent heaters, and
making our first
Here
shown
were
tion of bomber parts.
*
x-.
-
vastly increased aircraft production
invited us to participate.
tackled
to
apply their skill and
experience to the produc¬
N OCTOBER 25, 1940-
more
trimmers
how
a
'\
\
We immediately sent forty of our technicians to
producing aircraft plant where these men did
NOSES
AND
FOR
BODIES
BOMBERS'
(INSIDE
AND
nothing of all the control mecha¬
nisms—must operate
PRECISION-FITTED
faultlessly.
/
"
:
In the
new
termined
production of "bodies" for bombers — a
field to Chrysler
Corporation—again is dem¬
onstrated how
which
could subcontract to
other companies. As the work progressed, orders
for parts and materials were given to 2,255 sub¬
contractors
parts
we
truck
duction of
on
time.
experience in peacetime
our
production
war
car
and
is being applied to the pro¬
now
equipment in quantity
.
and
.
.
■/.,
:
in 309 towns, in 29 states.
•
Aluminum forgings would be needed in large
V
OUT)
numbers by us
regular production work and observed, at first
hand, the production methods then in use. Our
long background in building automobiles and
trucks, plus the experience these men gained work¬
ing with
aircraft
manufacturer, enabled us
quickly to get under way with the necessary tools
and equipment to turn out "bodies" for bombers
by quantity production methods.
V
To
kinds
an
help acquaint
of
material
in advance with the
us
and other manufacturers participat¬
ing in the expanded aircraft production program.
Therefore, we were given the job of building an
aluminum forge plant to take care of these require¬
ments.
We also
Thousands of
I
for this
new
men
type
and
women
had
to
Marine
H
more
The materials
to
be used included aluminum,
steel, brass, bronze, plastics, plywood and fabrics.
Pontoons
Landing
Industrial
•
•
Harbor
Anti-Tank Vehicles
the
training of workers. Women were employed in
large numbers and carefully taught drilling, rivet¬
ing, machining and assembling of aircraft parts.
Gears
Automobile
sheet
metal
workers, body builders
assisted
Tune in
BACK
☆
It's the Talk of the Town!—FREE EXHIBIT of Modern
•
a.m.
to 6
over
Tugs
and
•
•
Wide Variety of Ammu¬
Furnaces
Tractors
•
Important
•
every
a.m.
to 7 p.m.
•
•
•
Raid
Navy
Bomb
Aircraft
•
Equipment.
towns
in 39 stotei
Thursday, CBS, 9 P. M., E. W. T.
—
WITH
WAR
m
fftfuelAr RsiiMlnn
Can¬
Motor
Air
•
Bomb Racks
V
Weapons and War Equipment—FREE Movies
p.m.—Sundays, II
Com¬
equipment Chrysler Corporation it
9,800 subcontractors in 956
ATTACK
•
Weapon Carrier^
Compressors
War
•
Troop
Powdered Metal Parts
Refrigeration
war
•
•
Gyro-Compasses
•
Field Kitchens
Other
Major Bowes
THE
☆
Fascinating Display***'*'* Arranged li« ritrvebp rnmArnliAM unit tl SI Army ftrfttfintorA Department —International (nlnn
ArfftSUfifcff by Chrysler Corporation,and U.S. Apsmu Ordnance
[MlArHnllnnrt!
SalonOpen Weekdays 9
by
Marine
Engines
Heaters
Aircraft
Reconnaissance Cars
Fighting Equipment
Tent
•
•
In the production of thk
☆
Visit thlS
and
Shackles
Army Air Corps sent
engineers and master mechanics made .inten¬
analyses of aircraft blueprints covering
Ambulances
•
Sirens and Fire
WORKERS
•
nition
Transports
FOR
Wings
•
tonment
'
Bomber Fuselage Sec¬
Bomber
•
i
Anti-Air¬
•
mand
of work. We opened schools for
operations involved, the
us a bomber nose section.
•
Engines
Engines
be trained
and
than fourteen thousand structural
parts.
tions
CORPORATION
Tank
•
craft Guns
prepared at our foundry to produce
required for plane manufacture.
Our
sive
Tanks
aluminum castings
TRAINING SCHOOLS
many
WAR PRODUCTS OF CHRYSLER
Aua
Chrysler Building, fi avinnlAn Ave. «# A9nrl (#.
Lexington
at 42nd St-
BONDS
S
&
THE COMMERCIAL & FINANCIAL CHRONICLE
ISO!
-
'
-
'
'
International Bimetallism Advocated By Brownell
Chairman Of American Smelting &
Refining Co.
Contends It Is The Most Suitable Monetary Standard
For The Post-War World. Comments On White
•'
'■
■
version and abandon the standard.
metal would
possible a last¬
ing return to the gold standard
by the peoples of the world after
.the war?.
-p.
.
The amount of
for
depend
upon
reserve
country
j
Mr. Brownell's remarks follow in full:
its
currency
depreciates
sharply;and fluctuates erratically
valup from day to day.
We
in
of the
[economic
the
of
precious metals
money is one insti¬
which
has
through the ages.
worked
well
Gold and silver
in An¬
Mediaeval
and
Modern
Peoples have learned to
cient,
as
money
people
to
gold
and
silver
into
these
metals.
must
confi-
have
! money,
they
use
if indus¬
Francis
and agri¬
H.
Brownell
hi
earth
have
culture ,are to
function normally
Civil War of the 1860s,
United States paper currency fell
ment
to
and employ¬
provided the people.
If the purchasing power of a
nation's
our own
substantial
a
when
peace
discount
there
came,
and,
was
an
Insistent demand to '-'resume spe¬
cie payment."
vi.ife'.;
be it the dollar,
pound Qr' any other unit, is de¬
clining rapidly, so that prices of
goods soar skyward, an economic
History abounds in examples of
paper;
moneys
deteriorating
in
collapse*
value
money,
unemployment
and
so¬
and
times
at
becoming
When the foreign exchange value
worthless, as the result of wars,
revolutions and other vicissitudes
of
of
cial unrest will
a
currency
national
ducted
inevitably follow.
depreciates, inter¬
trade ' cannot
along
orderly
be
con¬
lines
and
[high trade barriers that choke
[commerce
are
the result.
.
At the end of the present
i
[war, what will be the
[power
global
purchasing
of the moneys of France,
Belgium, the Netherlands,
Po¬
land,
Norway,
Czechoslovakia,
Denmark and Yugoslavia, inflated
las they have been under German
| occupation?
[buying
What
power
will
the
be
of the currencies of
[the defeated Axis nations, Ger¬
Italy,
Hungary, Rumania
Bulgaria?J Can the internal
many,
[and
economies of these nations and of
[while their peoples
use highly in¬
flated moneys of doubtful value?
'an international commerce with
these
Countries,
and
between
them, be! resumed
on a large scale
dthout monetary stability?
Every business man knows that
in
early, effective stabilization of
their moneys is an urgent and ab¬
solute pre-requisite to both inter-lal
recovery and the revival of
the foreign trade of these coun¬
tries.
stabilization has been
to
turn
But
do
we
to
history for
examples of the unhappy conse¬
quences
of inconvertible paper
money issues.
We have only to
look at the nations of
Europe and
China today to see the tragic con¬
sequences when they are flooded
with huge issues of paper money
rapidly depreciating in value to¬
wards the point of worthlessness.
Is
There Enough Gold?
Extended
periods of monetary
stability in the past have been in¬
variably associated with the use
of the precious metals, gold and
silver,
monetary
as
standards.
The international gold standard
dominant in the leading coun¬
tries
of
the
world
urge
return to
a
But
war.
broken
World
that
War
it
I.
after
standard
had
.long before the
began. Gold had dis¬
appeared from circulation and the
present
price
war
had
$20.67
been
$35 an
increasing
to
effect
available.
increased
ounce,
the
from
thus
in
volume
This failed to solve the
difficulty, however.
ceed
Nations,, representa¬
whose
treasuries
have
conferring continuously dur¬
ing recent months to evolve a plan
to
assure
the
earliest
possible
>een
Stabilization of currencies through
International agreement.
$30,000,000,000, at the pre¬
vailing price of $35 an ounce for
the yellow metal.
The monetary
gold stock of the United States
amounts
to
$22,000,000,000, which
is more than, 70% of the world
stock. Obviously, the $8,000,000,000
or
ization is clear. International col¬
of monetary gold owned
outside the United States is very
laboration
far
from
The
ft.
need
for
is
monetary stabil¬
required to achieve
We must make
however,
that the standard adopted to as¬
sure
sucn -stability
is sound and
idequate, so that stabilization will
>e lasting.
sure,
j
We
Must
Return
to
a
Metallic Standard
We
all
know
that
the
lational
down
gold
standard
broke
during the thirties.
This
largely resulted from the unsound
>rovisions
following
of
the
World
peace
War
I,
treaties
which
jade :th4 monetary gold stock of
the
world
inadequate.
Economic
adequate to permit the
turn to any
re¬
type of workable gold
level
in
60% higher than it
was
1939.
will
Similar
probably
tc follow the
was
considerations
this country
cause
same course
and seek
to maintain the
and
financial
with other
metallic
transactions
nations, the greater the
required for these
reserve
It is essential for the welfare of
the peoples of the i world that for¬
eign trade after the war should
be far larger than in the pre-war
period.
The general determina¬
Furthermore, it is not enough
that each nation have
make
the
a
some
international
standard workable.
have
gold
gold
gold
Each country
reserve
that is
large enough to take care of ad¬
verse contingencies as they arise.
A nation should be in position to
export a considerable quantity of
the yellow metal, to cover a tem¬
porary
its
balance
siderable
calls for
expansion of
nations.
commerce
be¬
The-
larger the
trade, the greater
the disequilibrium that may de¬
velop in the balance of interna¬
tional payments in any one
year,
and so the larger the amount of
gold needed in
turn to
any
attempted
re¬
exclusive gold standard.
an
Hence, regardless of the fact that
deficit in its balance of in¬
ternational payments without be¬
ing forced to suspend
gold con¬
pay¬
a con¬
time.
This
expansion of the vol¬
an
media
beyond
gold available.
■-■-v
1
Asia
and
Africa
than
more
the 'single gold standard
the White and Keynes plans
and
25%
in
humble
the
gold
stocks
coinage
needs.
be minted
can
into coins of small denominations
adequate to the
ane'es before 1914, and for a few
in the 1920s seemed ade¬
modest
require¬
myriads of farmers and
tradesmen who, from one yearend
to
mechanism
known
the
as
•
Exchange Standard," plus
large foreign loans by the United
States, .there is every reason to
believe that
gold
for
ahead.
even
a
serious shortage of
needs looms
shortage
will
arise
apart from the fact that the
metal
supply of; the yellow
so unequally distributed
the nations of the earth.
is
among
evidently required, there¬
is the
expansion
of
the
fore,
gold
stock
through the addition to it of the
other' great monetary metal, silver.
The White and Keynes Plans
Recognizing that the inadequacy
of the present
gold supply, and the
holdings outside of the
States, bar a general re¬
small gold
United
turn
the
to
gold standard after
the American and British
Governments
preparing plans
economizing on the amount of
gold required to achieve monetary
stability.
These plans, and the
are
for
American White Plan in particu¬
lar,
are
efforts
nothing
to
more or
return
to
less than
partial in¬
a
ternational gold standard with a
smaller
amount
of
gold.
The
Keynes Plan does not .necessarily
require any gold.
The Interna¬
tional Stabilization Fund, under
the White Plan, would give each
nation
its
a
considerable
credit
on
books
against which only a
deposit of gold need be
Both plans are, in effect,
types of managed currency.
the
other,
seldom
which
China.
not
is
The
the
aspire
to
many rea¬
if the latest,
the
of
Asiatic does
of
possession
gold, which is beyond his reach.
Silver is what he
silver is the
wants, because
gold of the
these
plans,
have
pointed out, however, that when a
country's maximum credit on the
books
of
the
on
exception,
proposed
Interna¬
tional Stabilization Fund has
come
exhausted, the-
lem will arise
ings
are
all
international
inadequacy
as
same
when
exported
these
people, who constitute ap¬
proximately one billion human
beings or nearly one-half of the
estimated population of the earth.
The importance of this section of
world
L»
in
International Bimetallism
Silver
has
been
monetary metal
and
and
surface
it
1
gold.
the
has
for
been
1816
the
silver
to
1
of
ounce
that year.
in
Advantages of International
Bimetallism
all
1870s
a
preferred to
countries,
all
established
and
countries
identical
The
allism
of
ex¬
be¬
ratios
International
an
melted
down
or
ex¬
ported, and silver became the sole
money in use.
When silver was
overvalued, it
circulation
driven out of
was
by gold.
Economists
have
pointed out
right along that this basic dif¬
ficulty encountered by bimetal¬
lism
would not arise if the
ratio
adopted by the lead¬
commercial nations of the
ing
same
were
world
by agreement at the
time.
The
same
English econo¬
Marshall, probably
the outstanding social scientist in
the English speaking world of the
past century, said in his great
mist
great
Alfred
work
Money Credit and Com¬
"An agreement entered
into by all the commercial coun¬
tries of the world to keep their
mints open to gold and silver at
on
merce,
almost any reasonable ratio would
the
tie
that
values
ratio,
be
of
the
metals
to
long as the agree¬
He urged that cur¬
so
made
convertible
into
gold and silver together, with an
ounce of silver considered equiva¬
lent to one-twentieth of
of
an
ounce
The world's monetary
is
less
ounces,
of
States owns
than
which
more
monetary
over
gold stock
1.000,000,000
the
United
than 70%.
silver
The
stock
is
5.000,000,000 ounces, of
which the United States holds ap¬
proximately half.
Were the na¬
■
would be immediately in-7
creased, particularly outside of the
United States, to meet the larger
needs of the post-war world. This
would enable nations to maintain
the
stability
if
even
an
should
ments
currencies
their
of
adverse balance of pay¬
substantial
compel
shipments of gold and silver for
a time to other nations, or to the
International Stabilization Fund.
The
addition
yearly
would be
the
to
of standard money
stock
world's
expanded, for the nor¬
output of some 40,-
annual
mal
000,000 ounces of gold would be
supplemented by production of
some 270,000,000 ounces of silver.
3. The stock of monetary metal
could
expanded further, if
through drawing
be
found necessary,
considerable quantities of silver
in
the
from
arts.
Nations
4.
would
whose", populations
be able to restore
of standard money
scale.
This has be¬
cointage
large
a
on
progressively less possible
gold shortage has caused
all
governments, including the
United. States, to withdraw the
yellow metal from circulation.
come
the
as
If
5.
world-wide shortage of
a
should
again
could be corrected
through stimulating silver produc¬
tion and lowering the ratio of
silver to
gold by international
agreement.
v'
6. The adoption of International
standard
money
threaten,
it
,
Bimetallism would not
International
make the
Fund
Stabilization
would
rather help assure the success of
any such plan by facilitating each
nation's ability to replenish its
Plan
but
unnecessary,
credit
the books of the Inter¬
on
national
Fund through its power
deposit silver, as well as gold, for
the
purpose.
7.
This
is
\
•
the
only
monetary
world at
adequate
stock of monetary metals, no mat¬
ter how large domestic and exter¬
nal trade becomes, and no matter
at what points world prices are
plan
large
that
will
assures
possess
the
an
stabilized.
gold.
today
of
standard
of
volume
The
the
overvalued, gold
was
use
money
ference in ratios led to arbitrage.
gold
the
would have the
far-reaching
advan¬
following
tages:
desire
were
Stabilization
on
national balances,
gold and silver.
When
transportation improved, this dif¬
coins
economize
monetary
monetary metals in settling inter-
tween
When
world's
the
as
Fund to
2.
as
cept England, had a bimetallic
monetary system. But. they never
well
medium
use
as
"
Before
until
under
the
in
long as gold,
over
a large part of history
a large portion of the earth's
world's
The
of
ounces
gold
1.
Any post-war monetary system
must recognize
the situation of
gold hold¬
gold standard.
of
be¬
prob¬
connection, it is inter¬
note that in 1940, the
year for which full statistics
were
made available, the world
produced about 41,000,000 ounces
of
gold
and
about
273,000,000
ounces of silver.
The production
ratio was thus approximately 7
esting to
last
masses.
.
rencies
without
production at various price
this
earn
experience
average
ment lasted."
Commentators
desired
increased
standard, with or without the use
they distrust for
not the least,
made.
almost
of
which
post-war
This
silver
possibility
adoption by international
agreement of International Bimet¬
quate with the help of the artifi¬
"Gold
the
through hard labor more than
$100 in our money. Nor will they
willingly accept paper currency,
years
cial
They
consider the
amount of metallic money
In
their
for
involved.
ments of
the
sufficed
particularly
levels.
for
needs
factors
should
of
of exchange and as their store of
wealth, makes silver the most de¬
gold, silver
But the actual ratio
omists, bankers, geologists, mining
engineers and others qualified—
after
full
investigation of
the
of
banking facilities or without need
them, who use the rupee, the
yuan or the tael as their medium
sirable
alone, their
determined by a Com¬
mission advised by experts—econ¬
status
of
Unlike
States
should be
devoid
the future from a
- for
the
commercial
standpoint
will
be
a
monetary
much greater than in the past.
metal to settle international bal-'
the
worjd's
percentages.
Africa.
individuals
United
countries
money would
be increased by some 50%! A ratio
of 10 to 1 would double the above
and
The
the
holdings of standard
ignore the preferences of the sil¬
ver-using peoples of Asia! and
countless
take
many
Both
of
volume of such
of
on
the limit imposed by the amount
riers, develop economically back¬
ward
regions and cooperate in
global reconstruction all point to
tween
period
of settlement
ume
of
tion of nations to lower trade bar¬
vast
international
ments turns unfavorable for
sons,
a
of
fractional
standard.
must
inter-
so
other nations of the world to
to
Why
Commons, is to retain the then
price level after the war, and this
the war,
The monetary gold stocks of the
the
of
higher
than
conflict, since a drastic
deflation would not help recon¬
struction. The expressed policy of
the British Government, as stated
by Sir Kingsley Wood, Chancellor
of
the
Exchequer, in his 1943
budget speech before the House of
down
world, according to the best avail¬
able estimates, do not greatly ex¬
tives
be
present [ monetary
to
recognized by the governments of
Uni ;ed
will
period
Many
silver
immediate in¬
an
the
What is
the
of
a
20
Marshall suggested,
as
there would be
crease
between
of
of
through most
of the nineteenth century and the
down
gold,
ratio
bilization Fund, and thus the sta¬
bility of its currency, even though
existing
was
The need for such immedi-
ite currency
issuing nation.
have
not
the
countries
of the Far
East,
Ihina, the Dutch Indies, the MaLay Peninsula and Japan, revive
the
nation
established
1
and
permanent
outside
purposes.
hand, the nations
had repeated
unhappy experiences with paper
money.
Hence mankind has al¬
ways
preferred "hard money."
the
a
balance
and
to
money.
On the other
of
| dence in the
try
convertible
are
of
credit
fixed
we
trade
anchored
are
and
ability
the
maintain its
to
upon
If
coins, and in monetary units that
to
realize that
taken
to agree
bimetallism, with
aggregate stock of standard
level
price
have confidence in gold and silver
*
be
international
the books of the International Sta¬
its
existing wage and
price levels in the post-war era.
The larger a nation's foreign
times.
War,
bilized,
the nations
among
that survival
have been used
first
World
of
of the
use
tution
after
[before currenjcies were sta-
gold
standard
as
[that spread
[over the con[tinent
of
the
maldistribution
a
world
The
misery
[ Europe
of
consequences
gold standard became impossible.
[chaos and tol¬
lman
marked
existing
[remember the
war
these peace treaties finally caused
so
[have oftly to
other
increase
to
practi¬
every
should
measure
tions of the world
at
probably
nationalism, reparations and
and
adopted, therefore,
de¬
will
before the
debts
the White or
is
ultimately
a
home and the volume of trade and
A nation can never be healthy £
when
Thursday, September 30, 1943
-t
plan like
Keynes
schemes
cal
Adoption of International Bimetallism by agreement of the other transactions that it carries
with
other
countries.
The
leading commercial nations of the world, in order to retain every on
advantage of the international gold standard and yet assure an ade¬ higher the price level, the larger
quate supply of monetary metals for the post-war period, was pro¬ the gold reserve required for do¬
posed by Francis H. Brownell, Chairman of the American Smelting mestic purposes.
land Refining Company, in a statement released in New York on
After the war, commodity prices
Sept. 27.
If
:;v:.
gold
each
'
settling international balances will
thus again become apparent. -
much yellow
How
be needed to make
sirable
And Keynes Stabilization Plans
J
'v
'■
'
8.
A
much
larger
number
of
nations would be themselves pro¬
ducers of standard money under
International
and
Bimetallism,
thus would be aided in maintain-*
ing the stability of their
cies
through the
monetary
metals
curren¬
production
within
of
their
Volume
THE COMMERCIAL & FINANCIAL
Number 4216
158
principles than the farmers who
bought their products.
'
The following table illustrates
how' far
this development had
gone at that time:
Says Deminalion Of Industry By Few
riskes
Questions Whether Laissez Faire System Can Be Re¬
stored Without Lowering Standard of Living ■ >
Relation
of
Price
for
Drop
to
Drop
Major
Ten
1923
the
and
Production
Industries
I
cause
friends; ;4;;y 44,;^
Dr. Clyde William Phelps, in his interesting article "Planned
Economy and Free Enterprise," in The Chronicle of Sept. 16, admits
as
much when he speaks of "a'»
great and widespread retreat from cial considerations rather than by
abandoned by its
competition." But the examples
he gives of this retreat are minor
comparison with the
major breakdown iri the free en¬
terprise system which is respon1 sible for the effort to restore the
balance by governmental interindeed
by
the
broad, general welfare of the
whole community..
The traditional economic theory
*
-
,
is built around the law
men
of-supply
It is assumed that if
and demand.
„
ically by the rise and fall of
prices in the open market. But if
a little group of men can sit down
around a table and fix prices or
control the volume of production,
If it is true, as
Dr. Phelps says,
that
"competition is the major
force which we rely upon in our
.
free
enterprise system to make
the
system ' work ■ effectively,"
then any business practice which
hampers competition is a blow at
•
1
obviously there is no longer a free
market:
And
this ; holds ' good
whether, the little; group of men
are
bureaucrats administering a
.
free enterprise, more deadly be-
;
1
cause
•
that
•
■
•
;
anything
be done by the Waslu
may
-monopolistic devices
'•
were, with
us
long before the
bureaucrats began their career of
-regulation;
It is the simple truth
that the various anti-trust laws;
•
and
•set
the
boards
;
and
commissions
to enforce them, were at?
up
tempts to restore competition, and
-> not to destroy it. There has prob?
•
/
ably
been
never
a
time
-
when
American business could not have
•
regained its freedom if it was
willing, to use Dr. Phelps' phrase,
; to "accept the
responsibility-to
compete more fully and freely." ;
i
It
is
questionable,
however,
whether free enterprise can be re¬
stored
without
abandoning the
industrial techniques which have
made a high standard of living
<" possible, and that is the problem
-
•
•
-
'
which
to
•
;
the
economists
should
address themselves...
The" breakdown
of
,
free
enter?
has , resulted not so - much
monopolistic practices, and
£ the government regulation result¬
prise
,
'
from
ing
therefrom,
in
crease
from
as
size
and
the
in¬
in
decrease
number of industrial units which
-
has accompanied technological de-
'•':
•
When an industry is
by one or a few giant
corporations, business policy, ineluding competition and prices, is
no longer made solely by the op¬
eration of the open market, but
in part by the administrative ac¬
tion of corporate officials, who
are necessarily governed by finanvelopment.
i dominated
f
The western hemisphere,
borders.
chiefly
America, produces
Latin
about three-fourths of the world's
while
•silver,
the
eastern
out about
fourths of the gold.
turns
sphere
United
The
:
port
States
international
hemi¬
three-
should
sup¬
bimetallism
because, without lessening or im¬
pairing the use of gold or dam¬
aging 'the monetary situation in
country, such a system would
-any
serve
.
;
best
its
economic
interests
and those of the western hemi¬
sphere.
.
-
■
International
■'.escape
all
that, arise
of
bimetallism
the
when
will
disadvantages
any
one
nation
.resorts, to-the use of two standard
monetary metals, instead of gold
alone.
..
■ ■
.
bimetallism
International
re¬
gains every advantage of the gold
standard, but possesses a number
of
additional
advantages
over
gold.
The
end
of
the
war
and
the
•launching of a cooperative effort
by all nations to restore monetary
stability with the return of peace
an unparalleled oppor¬
tunity to bring this superior in.ternational
monetary
standard
provides
assuring a more
.effective- andlasting
monetary
■into effect, thus
stability in the post-war world.
.
farms
who
83
was
33
70
ened
45
30
and steel-
Food
;
.
products
New Deal is
the
business
with
Dr.
14
50
20
special taxes
56
20
was
Agricultural commodities— 63
they will show us how this
problem —the wholesale retreat
from
on
chain
merchants and
stores.
free
impact
de¬
can
■; 6
products
brilliant
if
It
manded the "fair trade laws" and
49
Leather
Petroleum
his
and
among the economists
render a truly great service
will
AAA
who
Phelps
confreres
threat¬
men
extinction
step
The,
symptom and not a
a
cause.
the loss of their
demanded
small
20
Auto tires
Iron
been abandoned,
each
making the next inevitable.
farmers
was
and the Milk Control Boards.
"Industrial
■'Source:
Relative
Means,
74th
Prices
It
enterprise
of
modern
the
be solved.
WILLIAM
shippers suf¬
under
technology-
LIGHTBOWNE.
G.
Bogota, N. J., Sept. 29, 1943.
Their
and
Inflexibility,"
by
Gardner
as Senate Document
C.
published
13,
Congress.
Effects
"Administered"
of
Observe
Prices
the economic
now
con¬
of this difference in op¬
erating practices.*' If a bushel of
wheat sells for $1 and a mowing
sequences
machine
for
sells
$100,
then
a
hundred bushels of wheat will pay
for one mowing machine. If the
price of wheat drops to 50 cents a
bushel and that :of mowing ma¬
business
or
men
chines to $50, a hundred
of wheat will still pay
adt
'
tion
:.We speak of "the American sys¬
of free enterprise," but as a
matter
of
system
but two—one
the
fact
we
have
not
"free"
.
one
and
"controlled"—and
other
for
there has been a
steady shift from the; "free"; area
years
many
to the "controlled"
been
area.
.
quires
persons seeking members for a union to hold a license from
Secretary of State said an Associated Press dispatch from Pelly,
Texas, on Sept. 23, which added:
I
s
the
,
The
by
made in;
in
This has
first, to the rapid in¬
municipal ownership;
second, to the .extension of: public
control over more and more pri?
in
/vately : owned . industries;
and
third, to the substitution of "con¬
trolled production" with "admin¬
prices" for business pfac4
commonly associated' with
istered
tices
or
:
market in which prices
a
varying degrees, were "fixed"
"administered."
/ And
there
of ^regulation.
The AAA waS
•
industry
was
.
-
duction.
and
The killing of little pigs
plowing under of crops
different in principle than
no
deliberate
attention
duction
it
deserves
from
professional writers on economics,
although
it; has furnished the
there
were
some
AAA,
six million inde¬
pendent farmers producing for the
market. There was no means by
which
these
millions
of: entre¬
could correlate their ef¬
forts, and no one of them had any
significant control over prices or
volume of production. Each farmer
produced as much as he could and
preneurs
of
pro¬
X 4";
Worse Than the
workers'
■
achieve any fundamental solution
through this policy was not due
to its -bungling ineptitude, but to
the fact pointed out by Dr. Means
in the brochure quoted above, that
any policy of restricting output,
whether by governmental or cor¬
porate action, breeds more evils
than it
Restriction of out¬
cures.
labor, which still further re¬
buying power, and so ad infin¬
itum. An initial decline in price
too
people could not
did, go broke, but the com¬
munity as a whole was not im¬
or
poverished. Society continued to
enjoy full production and maxi¬
tion
of human and material
use
resources.
Union of the CIO.
Three
Contrast this situation with that
If
doors.
their
.wholesale
e,
would have ensued.
essary,
it
purpose
When confronted
with
There' is
such
lem
as
in
lessened
ousted
by
restricting
the volume of production.
onstrates
not
a
fact that they had the
that
choice
dem¬
the
industry was
"free enterprise" in the tra-
ditionalsense of the term, that it
operated
on
radically
different
a
not
organizers
They
arrested.
were
W. Livingston
of Kan¬
City, regional director of the
southwestern
region for UAWCIO; C. M. Massengale of Kilgore,
sas
assistant
national
director
of the
Oil Workers
Organizing Commit¬
tee,
and
John
Crossland
of
Houston, sub-regional director of
the CIO.
,
;
Criticizing the Texas law, Mr.
Thomas said:
:
.
"We'rev not
selfish
—in
interests
Texas
sneak
on
going
our
the people of
same
kind
that Hitler
man
back
else—
and
put
Harris
Gardner
Court and
in
con¬
sentenced to three
was
days in jail with
$100 fine. Jus¬
a
tice Alexander said
Mr;
Thomas'
53d •" District
a
hearing
had
case
run
its
bankruptcy
;Judge
was
had
no
asserted
Gardner
there
question that Mr. Thomas
violated
temporary
a
put
"
:
going
to
d
and
the Ger¬
on
preventing the
from
soliciting
membership in a union without a
license as required by Texas law.
Following his ruling on the con¬
tempt issue, the jurist made per¬
manent the temporary
order.
restraining
■
fight
;
it
As of Oct. 11, 1943, Richard A.
Garfield, Edward V. Goerz, arid
pens, because we know if it can
J. Victor Onativia, member cf the
happen
in; the Legislatures of New York Stock
Exchange, will
Texas and several other States, it
form the Exchange firm of Gar¬
can
happen in Michigan, ..and if.
field, Goerz & Co. with offices
it can happen in the States, then
at 120 Broadway, New York City.
it can happen, in Congress—and
Mr. Goerz in the past held mem¬
even
if we lick Hitler, we will
bership on the Stock Exchange
have lost the very things we are
and conducted his own brokerage
fighting for."
: :
;:;
firm in New York. Mr. Onativia
tooth and nail, wherever that.hap?
t
Mr. Thomas asserted that Colo¬
ida had laws similar to the Texas
regulatory statute.
Further
Associated
has
recently
been
active
thereto
was
a
partner in Elliott,
Crawford & Co.
Press
was
•' L
ad¬
vices from
25
Austin, Texas, on Sept.
that an appeal had
made
indicating
this
as
revealed
been
follows:
Chief
N. Y. Hanseatic Elects
Otto
H,
treasurer,
Justice
James
P.
Alex¬
assistant
ander of the Texas Supreme Court
elected
granted tonight a writ of habeas
corpus for the
release of R. J.
of the
Steindecker,
'assistant
and
Maurice
secretary,
have
assistant
Hart,
been
vice-presidents
Cor¬
New York Hanseatic
poration,
120;
New
Broadway,
Thomas, President of the United York City.
||i"
Available for the Duration
...in Moderation!
the
an
SCHENLEY
attempt to meet
acute- situation.
very
Inept,
un-American — call it
will—if the New Deal is
bungling,
what you
the
at
ROYAL RESERVE
•
1
next
election, the
original problem will still have to
be faced.
If
ket
we
cannot restore
and,
whole of
-
flexible
a
free
prices
to
mar¬
the
then those
sectors where free prices threaten
bankruptcy will continue to seek
our
economy,
an
as
individual floor broker and prior
letter
a
!\y.
York
»»&««
in
■
Garfield, Goerz & Co.,
NYSE Firm, In New
•
.
space
re¬
straining order
union y official
Government
at
on
set
been
for Oct. 20.
this country the
people.
we're
any
America
restrictions
of
bans
"And
let
in
anywhere
or
behind
to
here
point out that the
is to
New Deal
to make this
CIO
this to discuss this prob¬
detail.
The writer's sole
falling demand in the early
days of the depression, this indus¬
try elected to hold its prices firm
and
made
the
adjustment
to
mere
spoke
John
are
found in
was
defla¬
welcomed
was
the entire field.
The
the
had been allowed to
e o ur s
time by-all classes.
power
their debts
pay
taxes, and thousands of banks
closed
prevailing in the agricultural ma¬
chinery industry. Here is a typi¬
cal large-scale industry, in which
a
few giant corporations control
demand
who
other
Mr. Thomas
tempt of court today by Judge J.
intervention not only became nec¬
.4
....
an
sponsored by
International
•
Workers, Congress of
Industrial Workers affiliate, from
Travis County jail.
'
of
catastrophe. ! During the recent
depression
production
declined,
the
national
income
dwindled,
mum
rally
Workers
Automobile
duces
thus tends to grow into a national
farmers might, and
County
.
—
put results in the disemployment
This
genuine "free enterprise," in
which supply and demand were
equated by price. If prices went
sgme
Oil
labor
Disease
was
low,
Miller,: Harris
oil
The failure of the New Deal to
sold it for what he could get.
many
arrested^
was
deputy; sheriff, at the end of
by industrial corporations.
v: The Remedy
Deal attempts at
Before the intrusion of the
restriction
leader
rado, Kansas, Alabama and Flor¬
raison d'etre for most of the New
regulation.
A comparison of two industries,
each typical in its own field, will
illustrate the point.
—
the
the
than
doing
already
maintain nrices bv restricting pro¬
was
.
an
attempt to ; organize farmers so
that they could, do what corporate
enterprise.
•*'/4;-"J
The
latter, while by far the
most significant, has received less
free
New
B.
the
•
have the basic
Deal policy
you
;for1 the
reason:
union
W.
.
due
crease :
off 80%.
was
V Under
these
conditions
the
bankruptcy of the farmer was in¬
evitable. The prices he received
for
his \ products
were
"free"
prices, but his purchases were
tem
F. J. Thomas, President of the United Automobile Workers and
V
Vice-President of the Congress of Industrial
Organizations, was ar¬
rested on Sept. 23 and charged with
violating the State law which re¬
.
other
*
65
It
out.
threatened with
Textile
,
Federal law
ingtoh -bureaucrats. "Gentlemen's
agreements,": collusive; bids, in?
terlocking
directorates, ' cartels*
and
80
18
Cement
80
bushels
for one
mowing machine. - But if wheat
ministering the affairs of a great
corporation,
'1 drops; to 5.0 cents while mowing
machines remain* at $100, then it
Either, you have industry autof
will take 200 bushels of wheat to
matically iyegulated by the imper-f
sonal forces of competition, or you pay for one mowing machine. And
that is substantially what hap¬
have it controlled by the adminis?
At the depth of the de¬
trative ' action of individuals. * In pened.
prices, as
the first case you have free enter? pression * agricultural
shown by the foregoing table, had
prise; in the latter,. you have
declined: 63%
while production
planned economy, no matter who
had fallen barely 6%.
For agri¬
does the planning.
V.:;
cultural machinery, however, the
Not
One
System of Enterprise reverse
was; true;
prices
had
Two
! dropped
only 6%, while produc¬
secret than
more
Product'*!
6
16
vehicles
kicked
Step by step "free enterprise"
has
were
are
Drop in
Prices
Motor
Nothing.is gained, it seems to
by talking as if the New Deal
the gratuitous invention of
Meddlesome Matties, and that free
enterprise would be restored ipso
me,
PerCent
Drop in
Agricultural implements.^-
fering from secret rebates who
demanded the ICC, and so on and
on.
left free to follow their
are
self-interest, supply and de¬
mand will be regulated automat¬
own
-
:
h ;4 ' '.v
refuge from competition in gov¬
ernment; regulation.
: •
facto if and when the New Dealers
'
./
1305
.
'
vention.
From
Spring of 1933*
Percent
Commercial and Financial Chronicle:
have heard it said that free enterprise is in danger, not be¬
it has been attacked by its enemies, but because it has been
Editor, The
C
CHRONICLE
BLENDED WHISKEY
from fruit and
86 proof. 60% neutral
spirits distille.d
grains. Schenley Distillers Corp.,
N. Y. C.
,
.
1306
.THE COMMERCIAL & FINANCIAL CHRONICLE
when science will tap
gies directly from the sun?
(Continued from first page)
win
the
national debt,
in all history,
already the largest
in honest dollars,
and estimated, in a long war, to
approximate between three and
"but," he added,
"they will demand accountings of
those who, through ill-conceived
fiscal policies, load on, the nation
any
unnecessary
debt burden."
Doctor Saxon, in telling the gath¬
ering, "we can help the world
most by remaining free and pros¬
perous," reminded those he ad¬
dressed that "our job is to keep
our
own
house in order, while
encouraging peace and revival of
international markets, trade and
war,"
five
,
May
Mr.
iss*ue of May 13, page 1753).
following is part of his
our
three ways by
Government
It
be
can
inflated
be
can
directly repudiated.
with
out
adds 11 %
disaster
trillions
redeemed
in
honest
'
through taxes.:
Debt
be
can
through
when
bounds
retired
'
.
prices.
honestly
with
tional income and wealth.
in
He
ignores
the
hundreds,
There
1
worth.
took
wealth.
the
Fish
in the
forest,- the
some
are
to
not
wealth
possession
until
dians.
through
toil
sweat and made useful to
more?
that
In
>.
over.
cheated. Napoleon
when
bought
we
mainly 'the product of
cumulated
in
assets, such
sayings
labor
think
ac¬
physical
tools of production.
as
The value of wealth is
of yard-sticks.
it in dollars of
Today
a
value and a practical
power, <
These
a
for
cents
in
the- tools
indict
them
per
while
ton
that
not
you
could get
worthless)
think
of
$1
national
our
>
;
means
50,000,000
have
would
cents, you
good bargain.
contribute
to
etc., may alone, at 3%, would require 9,and produce 000,000,000 work-hours per year!
Lord Keynes' Theory
\
;
give $5
as
the
prices sound absurd to-
.
women as
highly civil¬
spend without limit,
regardless of its income, wealth,
Keynes,
ap¬
proximate value of those territo¬
are,
resources."
:
can
debt;
or
-
China
great
■
.
and. Russia
owe
long as we merely
the debt internally, to our¬
natural
resources
selves,
.
off
have
as,
the process
involves
only
pocket into another.
we.
This entirely
evaluating wealth, whether it ries undeveloped at that time. Their peoples
have : ingenuity, disregards the fact that the pock¬
a
horse, farm, mine, factory, The tremendous increase in value genius
and
spiritual
qualities ets are in different pants and are
■
of
those areas is due to labor and
States, the value is
simply the price, which the com¬ capital savings expended by a free
ponent items will bring on a free people in developing the useful¬
the United
or
of
marketMhe price at which
buy¬
ness
are' willing and able to
buy.
(Mere desire means nothing.)
their
making
ers
National Wealth
Based
this
on
present
value
of
our
and
their
"wealth''
Ickes'
because 97%
in
is
about
national
not
of.it cannot
$388,000,000,000.
from
production,
consumption and the price level.
With
97%
of
birds "still
his
the
in
most
said
astounding
that
worth
the
or,
United
than
more
dollars,
statement.
bush, Mr. Ickes counts them
all as in the hand, ready for sale
at present prices to willing and
States
twelve
able buyers.
He
fered -its
are
000,000.'
;x
..
its
-
This statement is quite
All economists
sible.
the
name)
wealth
at
is
sum
estimate
irrespon¬
(worthy of
our
national
$388,000,000,000.
only
3%
of
Mr.
That
Ickes'
figure.
Has Mr. Ickes' good nature been
capitalized
in
by
the
Washington
day-dreamers
to
justify their
post-war world-wide WPAs,
PWAs, FHAs, etc? Perhaps the'
Secretary has been covering the
North
Woods
recently
(legendary) Paul Bunyan.
with
Yet
false blow has been struck at
fiscal sanity.
The
many
the
a
our
Secretary's statement quiets
honest
gravity
fears.
of
our
It
belittles
officials
fraud
would
Securities Act.
this
on
be
with
respectable.
one
elect and elect." X
"backward"
climate
of
area, but in
free economy
a
in
all
And
history.
have only just begun! '
we
annual
;'
convicted
in)
About
Mr. Ickes is prob¬
America's
50%
of
Capital
our
iX-r?-
and
cost
ernment
man-made
;';x •/
ignores the
disconcerting
a
of
in.
the
the
•
Federal
30's
and
Gov¬
three
times that of the 20's. This annual
physical
assets
produce
useful
goods and services. Our; industrial
ably not deliberately deceiving us,
need truth in high office
today as much as truth in securi¬
but we
y
demanding interest. An¬
nual interest on a $100,000,000,000
debt will approximate $9,000,000,000, v a sum equal to the entire
.
income
.\.X.
habit of
basis,
(Truth
worth
are
over
a
billions, or even
four
trillions,
12
trillions?
Secretary, with his "blitz,"
is softening us up for a post-war
spending spree. Under his theory,
the New Deal
cradle
ery,
,
rubber
plantations.
interest
alone
will
amount
to
about $68 for every man, woman
and child in the United States!
ued
natural
engine.
Who
plants,
machin-.
living standards would be
they were 100 years- ago.
be Yet through ever-new technolog¬
knows
our
what
would
without the
resource,
worthless
commercial
railroads, the means by which
"convert undeveloped resour¬
Without
it,
Crude oil, the world's most val¬
relatively
V
guarantee full
can
X;y.
to
grave, and Vice-Presi¬
Wallace's bottle of milk a
dent
day for every child in the world.
We
feed
can
the
world
P&t'v
indeft-:;
nitely, write off billions advanced
under
"Lease-Lend," police the
post-war world, and indulge in
thousands
of
post-war projects,
domestic and foreign, now being
dreamed up by hundreds of com¬
missions and committees—all this
(and Heaven too) and still remain
!•:
:.Xv.
solvent!
The United States Are Very Rich
The
United
rich.
States
They
are
very,
if they will, \
they must
produce their riches through toil
very
be
can,
richer.
even
But
and sweat from Nature.
In
1940, with
world's
population,
an
income of
of
the
"
total
Our
only
?
-
6%:" of the
we
produced
$72,000,000,000, 36% txxxy
world
income.
x
capita income in 1940
about $550.
That of the rest
was
per
the world was only $70.
By
equalizing incomes throughout the
world, we would add about $30
per year, 8 cents per day, to the
of
incomes
outside
of
the
2,015,000,000
United
people
States.
our
own
XX:X"
But
stand¬
•/ These
figures
reduce / all
current international reform
world-wide
the
and
encourage ' increased
everywhere,
to distribute among us all.
more
,
Less
huge
oped
resources,
climate
nomic
men
of
-
and
women
accumulate
ical devices,
■
tap
our
we
can
undeveloped
progressively
resources
at
Yet
national1 income
that
they
secure
XX'
to
savings,
eco¬
stimulates
work
assume
hard,
risks,
and
acquire power tools that mul¬
tiply productivity.
>:
)
was
billions per
:
•y'M'*'
•y; ;x
/
and ;; undevel¬
can
do ; what
political and
freedom
-
with
nations,
prosperous
populations
America has done, if
the
production
that there will be
so
year.
$85,000,000,000 in 1929, the
Assuming this total cost after
largest in history until this war.
(It is estimated at $135,000,000,- the war for ordinary functions of
000 for 1943.)
government, if we add 20 billions
Another fly was found in this annually for policing the world
only
'
xXX:.
projects
to
sheer absurdity. Nothing real can
be gained by redistribution of ex¬
isting wealth, - We can, however,
Even- these
000.
X;X'X.
relief
We can help the world most by
remaining free and prosperous.
astounding, figures
ties!
vA-V;"i'' i, '
we
Our job is to keep, our own house
do not upset the "spenders." Re¬
Time was when whale oil was ces, constitute the
in order, while encouraging peace
greatest stock
cently Seymour Harris of Har¬
a vital product.
Almost over night of tools the World has ever known.
and revival of international mar¬
vard;; currently
with
OPA,
a
kerosene put it out of
business, They are, in economic vernacular, disciple of Lord Keynes' Amer¬ kets, trade, and finance.
r:
only to be challenged by natural "capital," The millions of Amef
ican counterpart, Professor Han¬
We Must Keep Our Own House
gas, which in turn was put out of icans, whose savings made them
sen, also of Harvard, stated that
the illuminating business by the
in Order \
possible, are "capitalists." " ;
we
can conceivably stand a debt
incandescent electric light. Nylon
Keeping our own house in order
By use of this "capital" Amer¬ of $4,000,000,000,000. This would,
will probably,
will itself be quite a challenge.
ruip the Japanese ican workers have increased the at a rate of
2V2%, require annual
silk industry.
Synthetic rubber earning power of their
Total government in the United
muscles interest payments of $100,000,000,can
destroy the billions invested about 300% since 1870,'
States in the 3Q's cost about 16
in- Eastern
y. .y
...
V'::',
employment, social security from
This political opiate
fact that debt has
chil¬
dren have-built the world's great¬
est accumulation of wealth and
corporation of¬
under "the
skyrocketing automotive
a
securities
of
trillion
in figures, $12,023,000,-
If
a
dismisses
"the disinherited" and their
the
However, Harold Ickes, Secre¬
tary of Interior, recently made a
500
Harris'
we
wealth is
our
worry
this would flatten
'Governments could
word: "enterprise."
Yet private borrow and squander endlessly to
enterprise, with its profit motives, satisfy all; pressure groups with
"
regulated by government to pre¬ Treasury handouts.
^
:
vent abuse; stimulates economic :' Harry Hopkins, close adviser to
the White House, on the eve of a
energy far more effectively than
recent
election, said:; "We will
any other social device. Virtually
every American immigrant came spend and spend, tax and tax, and
Mr. .'. Ickes
been expended on it and ready
It necessarily varies from time to markets created.
Nor can it be
used to pay GUI' national debt.
time, depending on
;
wealth
not owned by the same person.
-
*,
•
be utilized until tremendous quan¬
tities of labor and capital have
the
ours.
Why
or
Under this magic wand debt ard
of living to 1/6 of its present
lacking in their
equation, the key to all prosperity, becomes, if not virtuous, at least level. ; / yy;'x x;vAyxx
prod¬
is
to
another
mysterious
The chief factor
1
Mr.
wealth
yard-stick,
for
ucts.
■
!
resources
markets
equal
extracts
1
-
who
The
So
of paying it
siphoning of
more-labor than; and probably, y money, through taxation, from one
Yet
when
'V ;
Ickes,
of the
New
Deal
hat,
itself, after 12 long years,
be pretty nearly bankrupt.
Professor
.
by our enterprise,
amounting to almost genius, we
shall add greatly to the value of
we
Mr.
comes
debt of 300
fertilizer,
sapling,
and
men
ized
Keynes
"
Ilis thesis is that
debt
hour, a: $300 billion
that every
one
of
an
which
in production, we
•
of
the
'
unlimited.?.
workers
6,000
hours, or 150 weeks of 40 hours,
or about three work-years, to pay
off the debt," The annual interest
50
tree
demolishes
Now
resources
.
in
pletely
theory.
than
more
If the average wage of a worker
probably get lessj?■
An orange sapling, with proper
a
;
recently issued a
study entitled, "The New Philos¬
ophy of Public Debt," which com¬
must
America's
into
*
.
research agency,
(without which natural
1
debt
labor,
'
15 to 20% goes to profits, interest
and rents and royalties. ; •
Since work is a major factor
he
were
a
get
can
Unfortunately for the? "deficit
spenders," the Brookings Institu¬
tion, an authoritative; impartial
depths
you
ton
expenses,.
that
you
it.
and
nice
it $ and
It's -
;
r
employed,
pay
The payroll
of
if
keep
taxes
budgets..
white rabbit from the
each
„
posthu¬
,
work
thumb /
now
at
noses
dramatically
ground.'
If
official
unbalanced
phenomenal
our
for it today. • -4 The vital necessity of main¬
like a coal de¬ taining our national solvency is
posit, is merely a permit to work; appreciated by all thinking peo¬
worry and invest money with only ple, except the emotional plan¬
a
chance of!, selling the product ners and self-seeking bureaucrats.
at a profit commensurate with the They, of late
years, have
been
risks of loss.
■
•
fervently practicing the "deficitBut
even. Mr.. Ickes
finally spending" theory (imported from
hedges.
He says:
England) ; to' perpetuate
them¬
"If pur coal and oil and; vast selves -in
power.
This theory,
timberlands lay ,at
the feet of sired by Lord Keynes, would jus¬
primitive people, they would still tify a permanently unbalanced
add up to such figures and
yet, budget. (It has been unbalanced
in fact, they would be worth al¬ Since
1930.) X
most nothing.
But in the hands v A nation," according to Lord
1803
Russia
their
too
seem
i
*
wel¬
so
Washington. Borrowing
painless, compared to taxing,
is
The bureaucrats could
income goes to labor and the self-
In
be
for
pay
,
in
come
Between
and taxes in-terms- of work.
That
for
tricked
No wonder his ideas are
,,
present
.
must
wouldn't
the
purchasing day, but they represent the
.
assumed.
possible
v ; :
removes
fly, changing the slogan to
and spend, borrow and
deposit to
their
leased
to
proved
borrow, and elect and elect,"
Pay
;
hundreds of dollars worth of fruit
in
its
lifetime.
But Mr. Ickes
mously for fraud!
we measure
theoretical gold
in
;:
of the
shipment.
grow
bought Alaska for
Perhaps he thinks the
should
25
care,
.
-
this
production.
xvY:,
In fact, over a period of years
about. 89^ to 85% of our national
are
;
we
$7,200,000.
SEC
matter
a
Seward
1863 when
only, worth
are
You would
the
or
make
would have made
$11,250,000
Territory of Louisiana, which
now covers all Louisiana, Arkan¬
on natural
resources-production.
There are only three factors in sas, Oklahoma, Kansas, Missouri,
production—land (all natural re¬ Nebraska, Iowa, North -Dakota,
sources), labor and capital. Rough¬ South Dakota, Montana, most of
ly speaking, there are only two- Minnesota, and portions of Colo¬
land
and
He must
labor, for capital is rado and Wyoming.
Wealth, therefore, is mainly the
product of man's labor, expended
much
\
today
one-half
fact,
before
was
spenders took
ferson
We
That: doesn't
taxes and. profit.
was
Mr. Ickes must think that Jef¬
and
man.
But
States and its pos¬
.
deposits
out
1932.
machinery main¬
tenance and repair, depreciation,
many years ago (1933) cer¬
deficit
reduced
risks
then
"Spend
for this is about $1.50. This leaves
about 50 cents to cover all over
people 'in Washington were
wondering whether we shouldn't
breathe, give tlie country back? id the Ih^
we
in
deposits
for
tain
the untold riches in and under the
sea
so
coal
He must sell the coal for about
deer in
sea,
air
not
worth
then
was
though
instrumental
in
producing wealth, are not wealth.
Things not owned by man are not
i
the
$2.00 per ton, after it has.been
mined, graded,, cleaned and loaded
thousands of years
Manhattan Island
unde¬
the
known
If you
about
key and some trinkets. The In¬
useful, and owned by man.
In¬ dians probably thought they had
tangibles,
such
as
accumulated fleeced their white buyers.
Who can say that Manhattan
knowledge, imagination, will¬
power,
of
x
1
•
,
operator, he would,
any
sold for $24 worth of whis¬
once
Econpmists define wealth as
only things which are material,
the
all
form.
interesting examples
undeveloped resources
what
for
energies .of the
«
_
the United
ground
are
of
our
head
even
are
What Is Wealth?
on
our
resources.
The Price
what you can get for them under
in the future
na¬
capital
Taxes
somewhat unpopular.
Lord Keynes' theory
"
He should include
trillion
These
obvious
are
-
sessions.
resources
fact that their markets
taxes,
however,
only
kept
within
reasonable
commensurate
buy
were all
developed into useful things with
ready and able buyers at current
dollars
"piker" to stop
product of
citizen.
age
Secretary's manufacturing capital was only
"wealth" is in our coal deposits, 3.02%
on
the
investment.
The
mostly "soft" coal. Yet with only peak figure was 6.4% in 1929; the
11 billion dollars you could today valley figure was a loss of 3.79%'
the value at
as
i
Ten
Ten tril¬
our
and
veloped
the
be
■
became necessary to tap the aver¬
1924 and 1936, a mixture of good
and bad years, net earnings of all
undevel¬
people and destruction of which our undeveloped
their savings.
It can be gradually might be sold, if they
to
will
labor
f
we
sun.
(83% of his estimate)
is credited to our coal deposits..
In other words, he arbitrarily
It
maximum
political
ointment.
When
the
higher income groups had? been
clipped to the skin by taxes, it
:.;;.Yet, according to Treasury De¬
partment reports, our capitalists
are satisfied
with only a chance
of a small profit to compensate
"valua¬
our
we
even
and the unlimited
lion dollars
which
rid itself of debt.
can
his
oped natural resources."
speech! before the Controllers:
are
obtains
beling it "value of
The
There
Ickes
air
a
work-week;
or
breathe,' the fish in
the seas,'the birds in the brush;
the fast-multiplying jack-rabbits
of the Western plains, the possi¬
bilities of gold from the ocean,
merely by adding to our true
wealth the incomprehensible ?um
of 11 trillion, 635 billion dollars
(97% of his entire estimate), la¬
in
(given
the
tion"
along the lines of a
special, article Xhe wrdte for the
he is
12 trillion.
at
,
discussing the growth of the
last
is correct,
Wealth
somewhat
Piker
a
until
costs
:uniform 30-
a
employment, real social security
for all, and a standard of living
beyond our wildest- dreams. All
If Mr. Ickes' formula for value
It
Secretary ickes Evaluates Our
national debt, Doctor Saxon dealt
"Chronicle"
billions.
20-hour
this
poohpoohs the possibility of national
bankruptcy, which, after World
War I, paved the way in
Europe,
through inflation and repudiation
of
national
debts, for dictator¬
ships as the only alternative to
anarchy.
.
/
\
finance."
In
hundred
have
may
.
dollars?
Secretary Ickes Is
lower
lower, and
untold ener¬
What
will happen then to our undevel¬
oped oil and coal deposits which
Mr. Ickes values at 11 % trillion
Our Post-War National Debt
Thursday, September 30, 1943
•
.
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4216
(Mr. Wallace's estimate), 15 to 20
for cradle-to-grave so¬
.
■
security, 7 to 9 billions for in-
on the post-war debt, 1 bil¬
lion annually, for additional bene¬
terest
fits
and their
veterans
to
dents, and,
retirement,
say,
depen¬
3 billions for debt
total
annual
of
cost
government would be between 62
and 70 billions per year.
That is
more
than our entire national in¬
come
averaged during the 30's!
•
-Merely
these
tabulate
to
fig¬
of
the -impossibility
shows
ures
J",/'-...
that
the
country
'
when he
disservice
great
a
interference for fis¬
runs
cal
great to
so
volved.
offset com-
the. basic factors
in
This
is
turn
in¬
lesson
a
the
against
cannot' go
you
market, if you want to make
money.o.There must be a healthy
have to agree
All
the
with it.
time
.
~.p
.
securities
certain
pushed up or down to levels
obviously too low or too high.
Sometimes this; appraisal ;,is not
are
complimentary to the level
of intelligence in the Street. Just
taking a glaring •• example:
Int.
very
.
they
who, through ill-conceived fiscal
policies, load on the nation any
debt burden.
unnecessary
4
It
seems
challenge
—
to
anyone—who
makes light of the prospect ahead
of' us.
We must face up realis¬
tically to the price
for
paying
we are
victory.'
4
.
.
In the final analysis, every ven¬
ture on the road of deficit spend¬
,
ing
(other
than
for
emergency
periods),
has ended in national
bankruptcy at some time, some
sooner, some later, depending on
peculiar conditions of time and
place.
Regardless of what white
rabbit
used
is
to
hypnotize the
people, national insolvency is al¬
ways • followed
by inflation
or
dictatorship.
•<
V
Inflation,
of course, can
be
avoided by complete government
control
all
of
production, con¬
sumption, wages, prices, and all
economic life.
;
•
This, of course, is dictatorship.
can
prevent prices
rising, if it uses the concentration
camp, the bayonet, and the1 firing
squad to enforce the controls.
v
Government
,
is,
There
;
maintain
and
however,
pay
free
men
eco¬
That
requires
a
nation, willing and able
its obligations through
and
taxes
to
way
except through
nomic freedom.
to
of
nation
a
women
solvent
no
the
sweat
their labor.
and
toil
of
•*''V
■
'
three-hundred-billion-dollar
A
debt
be repaid in honest dol¬
if we have the moral fibre
and political courage of our fore¬
fathers. But it will require return
can
lars,
economic
to
fiscal
and
sanity in
spending and taxation.
\
,
bearish factors.
were
There is
no
other explanation for it but that
we
all
the
same
the
think
things at
same
time. ; A little iconoclas¬
tic vision
therefore,
proper,
anyone
"
-
a
been, very
ago would have
year
profitable in that
investment
trust
United
the Federal debt of the
World
first
had
War
raised
this
will
be
ket
made
as
whatever
whole
a
case.
mar¬
In
other
words, the business of running
into cash and out of it in anticipation of market moves requires
of
sense
the
market
which
only
sensitive
and
fast-thinking :and
acting ticker watchers can accom¬
plish successfully, and they are
very
reasons
asms
That
rare.
is
of
one
the
why the market enthusi¬
for growth industries or com¬
the
time
to
run
away
them,
bidding you
be almost certain that the
prices are too high.
" '
^ ;
may
r
It
is
sufficient
record of the
review
to
the
"growth industries"
1920's,
the
debt
was
reduced
steadily, falling to $16,185,000,000
correct this View is.
1930.
Then the depression
of the 1930's raised the debt
to
.;,,v
$43,000,000,000 in 1940.
On June, 1943, the costs of the
World
second
War. had
the
past
15
to
years
already
lifted the debt to $137,000,000,000.
It-is
conservatively estimated that,
at-the present rate of Federal ex¬
penditures—$2,000,000,000 weekly
—the debt will reach $300,000,000,000 in 1945.
By the end of
that year, the debt may* well reach
or even exceed our entire national
Wealth, estimated at about $388,-
in
the
air-conditioning
ing
field
,„
of
the
prob¬
lems raised by this situation can¬
The
be
per
too
emphasized.
Federal debt in
greatly
capita
1910 did not exceed $12.
By 1920
it had increased to $220.
By 1940
itrhad risen to $326.
A national debt
000 in 1945
debt
will
of $300,000,000,-
mean a per
of approximately
capita
$2,222 for
and child in
the country.
In brief, in the span
of 35 years our per capita debt
every
man,
woman
will have risen from $12
to $2,222
its
tically cost-plus basis in tremen¬
dous volume
have
ket
estimates, such as, for instance, that the
company / will
nearly treble its capital by sale
of preferred and common stocks,
and by issuing low interest rate
equipment trust certificates; that
petitive
the volume of operations
be
my
vested.'
they lost
is
not
1
because volume
money
necessarily • profit..
must realize that in
a
that
different
be too
may
gregate.
ag¬
000.
In view
the
first
two
the
years
of
the fact that
three
or
aircraft
average
000,000,
industry
volume
a
in
are
post-war
Conversely, there
conditioning
these levels.
pany
have, had
waiting
a
had the volume but
and
.rather
period. / The
only about
now
com¬
prof¬
no
it is be¬
ginning to capitalize on the hard
a decade, and
despite that
work of
the stock
be
means
the poorhouse."
"Chronicle"
views
any
expressed
related
discussion.
dressed
York.
y
comments
on
by Doctor Saxon,
phases
of
the
Comments
to
Financial
New
myites
*'•
Editor,
Chronicle,"
or
subject
should
be
"Commercial
25
Spruce
on
ad¬
and
funds
should
be
-
ment bonds.
M 4. The
within
'
-'
•
■
•
,
course, is to
appraisal of
*
fund should be expended
period
a
after the
of
three
years
!
ends.
war
5. It should be expended for any
of specified post-war
require¬
I
one
ments—such
location
as
costs
and
severance
or
re¬
costs of
wages;
reconverting, moving or adjusting
plant facilities; deferred mainten¬
not otherwise covered; in¬
ventory losses; deferred research
expenses; losses due to. cohtract
ance
cancellations,"
reemployment
i
service men, etc.
6. If not
'
of
'
.
'
expended, the fund
or unexpended
portion should be
subject to recapture by the Treas¬
ury by taxing it at the rates in
so
effect when the fund
"Many of the post-war
,
ditures will
.
;
created.
was
expen¬
the
be
outgrowth of
all-out activities for war production. They may be made iri later
when
years
that
loss
it
be
may
somewhat
will be in
lower
•
expected
tax
rates
force, and if there is
no
unused credit the post-war
or
will
expenses
*
taxes at such
save
lower rates; yet the profit growing
out of the activities which neces-
-
sitated the expenditures will have
been subjected to the highest tax
"We
history.
our
should
•
'
overlook, the
not
fact that equity in taxation is im-
portant.
;
Our policy of permitting
only in the yegr. ac¬
deductions
tually incurred will result in these
costs being deductible in the years
that follow the coming of peace. I 1
think
we
look for
can
a
,
reduction
No doubt
some
companies
can
tion
Yet
levels, but certainly we
reasonably hope for a reduc¬
in
the
The
90%
top tax bracket.
which resulted
profits
from, the activities that make the
post-war expenditures necpssary
will
rate.
have
been
taxed
If there is to be
distribution
of.'- the
at
an
tfye top
equitable .*
burden
that grows
a killing in
However, I doubt that
a
growth situation;. I believe that
tax
out of this war, such
expenditures should result ip tax
'
reduction at the
;
applied
the
to
rate
same
as was
.which
income
That will be
vitamins,
tremendous,
plished only if the deduction is
allowed in the year in which the
and you
will
come
20%
when all those
the
on
instead of giving the
profit, margins that
they have been in the recent past,
make your selection
of your opinion of
can
basis
,
buy.
the
until
than
the
cause
•
the
current
trends
the risks
,
;
of
expense
prices
wait,
paying
are
are
a
of
my
the
too large.
of
most
com¬
are
entirely out of sight.
any
company
the
expected
'
;
v
Summary
A good general rule
cepted in principle;
■
now
the ingredients
in
,
profit is earned, regardless of the
fact that the expenditures may not
"
can
never
be
ac¬
to buy
fairly definite
indications that strong background
exists for exploitation.
For that
reason
I believe that most of the
so-called
"electronics"
issues
be made until
a
year
Public Utility
later.",
,
;
Pfds.
Situation of Interest
;
Public Utility preferred istocks
merit, investment
consideration,
;
untried issue when it discounts
the future without
„
Street,
panies
,
are
capitalizing
growth.
an
-
an affiliated group; the
transportation
industry,
humble opinion the values
securities
before
be¬
Taking
in
change
higher
Airline Stocks Over-priced
airline
what
any
at ; IV
1
reasonable
accom¬
short, it is always well to know
of
market,
clearer
a
tooling
for production enter the field.
exactly
good
even
to
In
if you feel
It may be
down
up
choose the winners
can
may.
and
idea, however,- to
the
under
per¬
management, assets,
and
other
Characteristics of each concern,
despite an increase of 47% "in "our
you
population in this period.5 V y ;•£>
than it earns, but you and I know
that a continuation "of that habit
a
caused them.
that you,
government,' like any fa¬
mily, can spend for a while more
may
profits can be projected
into the future arid capitalized as
the -are,companies that will give profit
In 1932 Franklin Roosevelt said:
An uninterest¬
reverse.
these'
[ them. Summarizing, it is evident
The ..stockholder-ty3*-among aircraft stocks there
"Any
"flash in
entire
that field.
sells only at one-fourth
on,
means
exceed
required to be invested' in govern¬
have recently made
will
be /cheap at
by
The
not
15%. of net income.
say
p,re-war
mins."
That, of
determined
3.
'i
two
have a prod¬
uct
which
temporarily is very
successful and brings great profits
and publicity to it.
Then when
competitors wake up the thing
collapses. I am thinking of "vita¬
the< group
may
It should
in tax rates at that time—pot to
ing enterprise
industry,
in
2.
centage,
-
...
erate, in
course,
-
and
are
page 1294)
the pan" developments which op¬
average.
There is no doubt
that many companies will fail to
match the. growth of the
others
no
with
There¬
:
rates in
com¬
or
■
the
better
year
teresting industry is by
is,, which individual compa¬
are going to
do better than
certain
last
sufficient for optimistic appraisal
of the entire venture.
: :
this over-all picture does not con¬
sider the most important
element,
nies
the
a new department in that
field.. So just because a company
is engaged fractionally in an in¬
because of the long-term growth
factor of the industry. From an
of
classified
started
high, since it really means that
the market, is
roughly 15 times
possible earnings at 6% of poten¬
tial sales/ which is not exorbitant
viewpoint,
in
pany
up
valuation of the issues is not too
investment
be
may
risks.
1. The deduction should be elec-
tive.
usually is
for in¬
with electronics because the
may
to $300,opinion the total
my
derived,
conditions
investment
(Continued from
%
most
it
of
set
will
entirely
an
expectation
field most of the sales and profits
in
industry and stockholders and will probably fall by the way¬
chased
CarrierCompany side, while, on the other hand,
drab
discussed,
workers
under
of volume. '•
dex,
do
The
the
metal'
that field apart from the element
of reasonableness of
classified in all fields, so,
stock up to $67 in 1937 in
expec¬
tation of a great future for air
'■*
in
new
who
its
low
•
mar¬
com¬
work¬
fore, it is extremely optimistic to
visions of great profits in
Using just a rough in¬
the total market value of stance, a / concern in a durable
aircraft 'manufacturing companies consumer field with relatively un¬
now
is
which
approximately $350,000,- interesting future/from
.
Metal
have
:
is
pany
and
operating
terrific
opti¬
calculation, the conclusion
was that the stock today sells at
12 times these Utopian earnings.
On a purely actuarial basis, if
economy
conditions.
makers
mistic
competitive
and trying to
product under
new
the end of this war, will be plent i f u 1.
All
these
instrument
■
On the basis of this
We
a
ing and' assembling ability and
plant capacity of this country at
will go
up better than proportionately to
Another glaring example is radio
additional capital employed which
industry., We all remember the would
bring them up to more
rise of Radio Corp. stock and what
than 7 times that of the last peace
great things were expected from
year
(1939); that the rate of
it? The interesting point is that
charges will be stabilized at cur¬
they were right in terms of vol¬
rent levels; and that the efficiency
ume.
There are, I think, 40,000,will be high, profit before taxes
000 sets in this country now which
in percentage of gross revenue to
nobody thought possible in 1929.
be nearly 3 times that of 1939-1941
Obviously all those hopefuls who and that return on
capital after
bought the radio stock at above taxes will be
permitted to rise to
100 were right' and even conserv¬
above
6%
on
the
capital
in¬
ative in their expectations, but
from these levels
seriousness
:The
not
in
was a com¬
resources.
our
"I
future.
basis for
as
is rank
a
used' most optimistic premises for
houses. Everybody was in it and
nobody, made any money on it.
that
high.
000,000,000 today. In effect, it will of the
constitute a
100% mortgage on who, .instead of jumping
all
how
see
We all remember the great ex¬
pectations and valuations of stocks
the 1930's because that
;
some
in <• projecting
the
at levels
the
does.
of
by
com¬
,
debt to $24,298,000,000. During the
years
into
trends
.
because when there is
was
only $1,470,By 1920, the costs of the
crystal-gazing
bandwagon when it started rolling, waited to purchase the stock
when the hullabaloo subsided, was
the one who made the profits, not
the one who anticipated the de¬
velopment by buying before the
buying
is
■
panies is
States
000,000.
major transport
panies and have indulged in
work,
from them rather than buy
In 1910,
the
nobody can make money
easily. .It is literally a matter of
decades to develop and market a
having a longer view in our ap¬
there were a way of evaluating
new product.
Wall Street; is in¬
proach to investments, naturally
clined to jump to the end of the the risks involved, it is evident
are less concerned with the mar¬
that the stock should now be sell¬
rainbow and consider a thing done
ket phase of security analysis than
ing not at 12 times this impossible
those who
are
associated
with just because it was started.
estimate, but probably 5 or 6
brokerage firms which have to
times.
In other words, I believe
;;
Aircraft Manufacturing
consider shorter term trading. On
that
the
airline
transportation
Speaking more specifically and
the other hand, we are not mar¬
in terms of the future of another stocks are too high. That is one
ried to the past record as trust
group of stocks that serious7 in¬
growth
industry,
the '/aircraft
companies are, which, I believe,
vestors
are
hardly justified in
makes the conditions of our work manufacturing group, at the start
of the war we pushed these stocks buying today. '■%
practically ideal.
up to prices
too high from the
Misnaming of Growth Companies
This leisurely approach is prob¬
viewpoint of long-range values
ably the reason why I have de¬ because
Manuals that we use for ap¬
apparently many of us
veloped the fixed belief that con-, believed that we
would be able praisal of securities have a major
sideration of values, or the first
to unload before the
day of post¬ shortcoming which confuses the
two points of security analysis, in
war
reckoning
comes.
Sadly analysis of individual securities.
the long run is more profitable
enough, some of us still hold Listing the operations of indi¬
than thinking in terms of the mar¬
Boeing or Lockheed at costs twice vidual companies very slight dis¬
ket trends.
Once one develops a
the current market. The unload¬ tinction is made in description of
good sense of values of individual
ing started rather early, so that operations as to size and profit¬
issues, which takes years and a
only some took the profits, the ableness of each division. In other
lot of effort, it is sufficient to
others guessed right on the
length words, a company may be engaged
watch their action, and as soon
of the war and volume of busi¬ in three or four industrial fields
as some one is
patently out of line ness but did not
but only one of them may con¬
anticipate E. P. T.
up or down, sell or buy.
If judg¬ and ultimate market
reappraisal tribute the lion's share of the sales
ment involved is reasonably good,
of prospects at lower levels.
Now and profits to the consolidated
^ steady accumulation of profits aircraft stocks are
picture. However, when a com¬
down
We' in
,
Growth of Federal Debt
optimism. There
great difference between pro¬
ducing for government on prac¬
of
one
respect for the opinion of the ma-, chickens were hatched. Then, af¬
jority even, though you do not ter,; that, we, had prefabricated
crystal-gazers who are plan-'
T. & T. a year ago was available
ning global reform; despite their
at 3, now it is over 14. There was
twelve-year failure at home.
•Our people will gladly make all absolutely no change in opera¬
tions or prospects of that com¬
necessary sacrifices' in lives and
pany.
A year ago* all we saw
dollars to win the war.
But
will demand accountings of those;
profits in that field
[a little study of the prbspects pf
•
(Continued from page 1295)
.
all
pletely
the
/Secretary Ickes, therefore, does
;
•
mand is
-
program.
Yet, they include
nothing for many favorite New
Deal projects at home and abroad:
1 Specifically, I have made recently
,
Over-Priced Growth Stocks
billions
cial
1307!
is
according to a circular being dis¬
Stifel, Nicolaus & Co.,
tributed by
Inc., 105 West Adams Street, Chi¬
cago,
tions
111.,
of
discussing
these
this circular
of
issues.
the
attrac¬
Copies
together with
a
of
list
preferred stocks which the firm
believes
appear
particularly
at¬
There is no doubt tractive at current levels rpay be
that "there "is growth there, but! had
upon request from .Stifel,
to
take
current
operations and 'Nicolaus & Co., Inc.
overpriced
.
now.
.
THE COMMERCIAL & FINANCIAL CHRONICLE
1308
please
than
Facts, Figures
the
British
OPA's
do
cause
every
gestions
field
Here is. another set of facts and
anil Promises
;
American institutions at home so
that you may have the benefits of
the system you defended on the
people, better
here.
figures which should
Thursday, September 30, 1943
sentatives in
of battle."
-
:
American to stop, look and listen.
What are we doing to make that
Ohio, which has 25,000 State em¬ welcome possible? Think, when
ployes, has 90,000 Federal em¬ the wars in Europe and Asia end,
(Continued from first page)
ployes.
Within
the
borders, of our economy will lose the cus¬
sources
and ingenuity of busi¬ essary, but there is no reliable Pennsylvania
there .are
44,000 tomer who now buys half its out¬
ness—or the government will
be leadership to coordinate the work State employes, as compared with put—the
government:
Many of
forced to take over in a major of these planning agencies.
215,000 who are on the Federal the 10,800,000 then members of the
Some of the Federal planners
way.
To avoid such a disaster,
payroll. Wyoming, with only 1,100 armed forces, plus nearly all of
Senator Hawkes urged that the are drafting their proposals along State
employes, fjnds 6,200 Fed¬ the millions in war work, will be
following steps be taken: (1) Re¬ the line of a "planned economy" eral employes in the State. With returning to peacetime
pursuits,
would
establish the independence of the which
revolutionize
our
all due allowance for the fact that
eager for jobs.
They will insist
three
branches
of
government; economic and social system, in a the conduct of the Federal system on getting them—useful jobs at
(2) get rid of excess bureaucracy manner that is alien to our Amer¬ requires a substantial number of decent pay, and with ample op¬
and man-made directives; (3) see ican way of life. Their plans re¬ Federal employes in each
State, portunity for advancement Never
that the States are protected in pudiate all our traditional concep¬ there is an odious comparison be¬
again will doles and subsistence
tions of public finance, and our tween the records of the present
their rights;
(4) eliminate sub¬
levels be tolerated. Jobs for these
American pattern of governmental and the records of the past.
sidies; (') have intelligent men
returning soldiers and sailors and
I could go on adinfinitum citing war
administering government agen¬ relationships with industry, busi¬
workers must be
provided
ness and agriculture.
These plan- figures of this sort. But I simply through the resources and inge¬
cies, and (6) protect the right of
lers minimize the
citizens to criticize. He also said
dangers of an wish to call attention to the fact nuity of business—or the govern¬
mbalanced Federal budget and an that the cost to the taxpayer is in¬ ment. will be
that business must fight for the
forced to take over
foundation of all freedoms—the 2ver-increasing Federal "debt. creased almost directly in propor¬ in a major way.. And that is what
of
freedom
a
or
man
woman
to
They
call
she
public
chooses, union member or
no
union member—and asserted that
before
work
when
where
or
he
or
for
funds
an
on
expenditure of
a
level never
tion
the
to
Federal
of
number,
the Federal planners are counting
All of them have ex¬
employes.
on!
v:,<'Y-'V,
,
the
mainspring of American life—
fair reward for work and
accom¬
plishment and the development of
genius—must not be broken.
Following is the text of Senator
Hawkes' address:
Your
■
-;p;
■
organization, the Control¬
lers Institute of
America, is com¬
posed of men whose careers have
led them to cultivate a passion
for facts and figures. You appre¬
the
ciate
of
value
You have learned
facts and the
how
factual
to
figures.
data.
dig. out the
You know
evaluate
to
them, and how
separate the truly factual from
to
the
fictitious.
And
you
have the
considered
or
dreamed of.
Not
accounts—including travel,
pense
only do these "planners"
regard cost as a secondary mat¬
ter; they propose changes in our
The bill for travel and communi¬
political system which they admit
cations
—and
servatively
They know that if
even
boast—will
curb
our
traditional liberties. Their "plans"
ignore the fact that individual op¬
telephoning and the like—and the
total
much unemployment for too long
a time after peace
comes, our free
into millions of dollars.
runs
fiscal
this
for
society
can easily be supplanted
dictatorial regime. It is lack
of jobs on a grand scale that gives
con¬
year,
by
estimated, will reach
does
this,
$100,000,000—and
single
a
portunity,
properly
established
protected, would make it un¬ Navy. ; v'~:
u¥'-\
The joint Economy Committee
necessary for the government to
do most of these
headed by Senator Harry F. Byrd,
things.
They
overlook the truth that our people has done an outstanding. job in
do not wish to be serfs or wards the interest of the taxpayer. Sen¬
of the state—and that men, stand¬ ator Byrd's Committee has pointed
ing on their own feet, made Amer¬ out practical ways in which Gov¬
ica great.
ernment expenditures may be re¬
and
.
1
These
planners of
maintain
that
we
alien breed
an
in
the
United
the
without
duced
ciency.
dath,
which
or
lack
solid
a
Yet this
itself
its
today.
condition
is
the
Congress finds
In order to perform
legislative function, the Con¬
must have ready
gress
an
upon
which
foundation.
latter
in which your
one
based
are
regulations
States -iare
the
wars.
enormous
access
to
amount of statistical
and factual information which will
give its members
an
accurate pic¬
ture of the conditions
confronting
industry, commerce, finance, labor
and foreign trade.
But Congress
is often handicapped in securing
the facts, and its members fre¬
quently are forced to rely on in¬
formation procured from adminis¬
trative agencies which—either be¬
cause
erate
of
incompetence
intent—is
give essential in¬
formation to Congressional com¬
mittees, however much they may
it
in
order to
decisions
make.
facts
they
they
And
more
arrive
are
never
at the
expected
were
the
to
true
urgently needed than
today.
are
shall
retain the ownership
plans after the war—and
hey plan to use them as an in¬
of these
strument
trol of
England, all the
Middle Atlantic States—including
Maryland and West Virginia,; as
well
is one of the most important
problems in front of each of us.
not
for
post-war planning
one
the entire State of Penn¬
as
sylvania—the
as
an
businessmen
must
single moment
over¬
look your vital stake in whatever
southern
States
of
hdiana.
Twenty-one states—with
•nough left
rict
of
over
to make 32 Dis-
Columbia!
■
■
area
One-fifth
of
of the United
••
Federal
are
fbr
American
trip across the
United States, I found in every
section that the people are be¬
ginning to recognize the impor¬
tance of preserving private enter¬
prise in this country. This recog¬
people!
In
my
nition is not confined to the
of business;
it also
comes
own¬
from
part of the revolutionaries.
can be avoid that disaster?
in the
protected
are
rights which belong to them
of
individuals and tries to divide
property—we must get rid of sub¬
go—except
we
to
would be
statism,
a
com¬
pletely regimented people, sub¬
ject to the orders of a single indi¬
of
allies—and
financed
—the
majority of the members of
Congress still have a wholesome
respect for the opinions, judg¬
ments and facts presented to them
by business men. This has become
increasingly true during the past
two years, as the result of the
remarkable job done by American
industry in the war effort. That
is why business men should get
together as much as they can,
themselves and with other
to develop recommenda¬
taxation,
government
spending, labor legislation, post¬
war
planning1 and other related
problems.
y Yr
In advancing their suggestions
on
these matters, however, busi¬
ness men should be sure that they
among
groups,
tions
on
do not
.
repeat the mistakes which
they made in years gone by. They
moment.
>^vV-v'X\v
must
work
fight
of
all
a
man
of
when
or
the
to
woman
where
or
for
freedoms—the
he
she
or
security and
the
United
the
States
solvency of.
Government.
The
mainspring, which is a fairaccomplish¬
ment, and the development of
genius, produces the only fruit
fcrom which taxation can be col¬
reward for work and
.
lected.
.
Labor is entitled to the right to
organize, the right of collective
bargaining,, the right to strike
line of business.
lawfully in
peacetime,
and
to
Furthermore, we must see that
legislation which is necessary to
intelligent men
administer the
prevent unjust exploitation. Laws
necessary agencies of government
governing labor and capital must
—men who recognize that cost of
be just if they are to be effec¬
production must bear a fair re¬
tive.
They must contain equity
help
our
own
lationship
to
price.
ceiling
any
duty of American citizens to
for
all
free
erty,
itiative
enterprise, private in¬
the
or
America
Under
regulations
is
free
controls of the in¬
dividual life issued
by
bureau¬
a
never
realm
of
lawful
property ownership.
criticize honestly and openly any
or
and should
groups,
unfairly invade the constitutional
guaranteed rights of personal lib¬
the
labor
and
American
capital.
system
of
men,
every
should have the
working man
opportunity to
and save, so that he
of
cratic
>,
asked
in
Gentlemen, the people of Amer¬
ica want to get back to the rule
of laws, instead of the rule of men.
They crave to be rid of these ill-
effort
not
which involves not only the lives
and health of our civilian popu¬
America, and anything which in¬
informed Janizaries who tell them
lation
system
fighting forces.
^But when our
right to criticize ceases, then the
lifeblood of ;a free people will
vidual
or
power-crazy
a
small
man
administration
sidies, even those subsidies which
and
to
its
business
by the
largely with the taxpayers' money
ual
the states
that
see
of
us
American
,
intelligent labor leaders and
intelligent workers in every State.
They are beginning to realize that
if we destroy the American sys¬
tem there is no place left for any
the
under which
which
chooses, union member or
no
Well,; we must do a number of union
member. This is the basic
things. We must reestablish the
freedom—individual initiative, and,
independence of the three great
it' is the foundation upon which
branches of government. We must
depends individual enterprise, in¬
get rid of excess bureaucracy and
dividual accomplishment, individ¬
man-made
directives.
We must
High cost of production and low
ceiling prices which permit no
legitimate and fair profit consti¬
tute the pincer-jaws which can
crush free enterprise to death.
We must also protect the right
coterie
men.
and where they can go.
YOUR Federal government—has They are tired of seeing govern¬
•rganized a vast and overwhelm- ment set up rules for private busi¬
ness which government itself does
ng bureaucracy. The Farm SeThey are beginning
urity Administration, to cite one not follow.
xample (although it is a com¬ to see that government can cover
paratively small bureau) has 15,- up its losses, while private indus¬
000 employes.
It occupies 2,700 try cannot. They are beginningseperate local offices, for which even the plainest people—to dis¬
the government is paying rent and trust a "yardstick" which is elas¬
■urnishing personnel—largely for tic when applied to government
the
purpose
of controlling the projects and rigid when applied
■
tarmer's life and (some say) to to business.
^
government—
proposed and decided
redeveloping our na¬
control the farmer's vote.
tional economy in the post-war
period.
Government, as well as
Think of the difference between
business, is engaged in post-war our Office of Price Administra¬
planning. Did you know that 30 tion and its British counterpart.
of the 245 agencies now engaged
OPA has 2,700 lawyers—500
of
in post-war planning are Federal
lhem in Washington and 2,200 dis¬
bureaus?
They
are
financed tributed throughout the country
through taxation—and much of to regulate and to see that the
their work involves duplication, people are regulated. In Britain,
overlapping and the employment the legal staff for the same oper¬
of unnecessary manpower. Some ation totals only 10—with accom¬
duplication is desirable, even nec¬ plishments
which
apparently
plans
upon
of v the
desire
the
not
Federal
gentlemen,. it is
But,
problems
nation.
what they can eat, what they can
Virginia, North and South Caro¬
lina, Georgia, Florida and Ala¬
bama, PLUS Ohio, Illinois and
The
You
New
of
planners.
and
How
private
That is the goal of the
ers
owns land aggregatalmost 300,000,000 acres. That
an area equal to the combined
tates!
zens
con¬
Already the Federal
he total land
propaganda is the most
enemy
of free men.
The
importance of gaining the
true facts and pushing aside state¬
ments made to mislead or to gain
the support of unsuspecting citi¬
Federal
ng
False
Take
secure
key industries.
;cvernment
dangerous
instance.
to
our
And land?
ireas
ment refuses to
need
ment
found
govern¬
owns
Federal planners of whom I speak
intend that the Federal govern¬
sometimes
of
collectivism
If
•
$16,000,000,000
worth of manufacturing plants and
equipment—much of it built dur¬
ing this war emergency. These
s
branch
of our transpor¬
-shipping facilities; of
and
ernment
delib¬
be inadequate, inaccurate and
conflicting.
Oftentimes the ad¬
ministrative
pered
or
to
idleness.
tem of free enterprise and
tation
the
on
unham¬ and which under the Constitution
initiative and the were never ceded to the Federal
our
investments
and—even—of substitution of state direction and' Government.'
And, unless we wish
control of all the lives of our. citi¬
Our land. Nor are they blueprints
state socialism—the kind of Gov¬
only! Already the Federal gov¬ zens..
L'/.
ernment which controls the lives
public utilities;
of
conducted
freedom
.
administrative
he
repre¬
Despite a
ten-year campaign of villification
America, it will be by
¥', Business
the part of the good
foundation
citizens rather than by design on
After careful examination of the
really
fighting two
One, they say, is abroad— records made by the Administra¬
igainst the Axis.
The other is tion and Congress during the past
here, at home—and they call it 10 years, one can only conclude
of action. Conversely, you—above
"the People's Revolution!"
that they have as their objective
all men—can appreciate the helpI am not crying "Wolf!" These the assumption of greater power
S lessness of any enterprise, be it are
and control by the Government
facts, not fancies. The blue¬
private or public, which is com¬ prints are already
published for over individual life. If these pol¬
pelled to make decisions which all to see. They call for the Fed¬ icies are continued they can only
are
not predicated upon factual
eral ownership and control of our lead to the destruction of the sys¬
ability to utilize this information
so
that it will present a valid
picture upon which to base a plan
his
Washington to solve
the
to
comes
default
V.:'^
.
a
wanted
effi¬
of
loss
help
may
momentous
confront
sug¬
should keep first in
mind the
their
opportunity. common
good. , And
whatever
Unemployment in Italy gave Mus¬
they do must be done within the
solini
his
big chance.
Hitler's bounds of sound economics. After
gangsters
were
recruited
from
you decide your course, you must
among the unemployed.
It isn't
fight
courageously
for
it,
but
plotters on the left who consti¬ never
fight for what seems pop¬
tute the real hazard to our free
ular when in your heart and soul
society, but rather the pressures
you believe in another thing that
stemming out of widespread, un¬ is
right—but unpopular at the
for
penny
the
his
whatever. facts
not regimentors
the
expenditures of the Army and: the
include
and
which
.
have too
we
Congressmen his ideas,
has
wear,
.
The
American
people
don't
mind hardship. They are willing
to sacrifice in every way, to what¬
ever degree is necessary, in order
to
win
the
war.
But
they want
the
hardship spread honestly and
evenly among them.
They don't
want to
cheat at home while
boys
serving honorably abroad.
are
the
They want to be able to look those
boys in the eye when they return,
and
say,
"We have preserved
administration.
the
authority
to
We
are
the
,
of
war
criticize; those
for
but
bungling
also
the
lives
the
of
in
job
our
fairly
earn
become
may
and
part
of
a
property
of
owner
holder
business, ^and
management.
That
;
a
is
terferes with the operation of this
will help to destroy free
enterprise.
"Justice
The
to
all
watchword
and
lege to none."
is
special privi¬
If labor
and cap¬
to understand
flow."./'\Y:;;;„7:'':<z;-o ital, through failure
to
cease
name
people must be each other and to voluntarily co¬
unpleasant truths operate, destroy the system of free
in the most pleasant way possible. enterprise and
initiative, then each
They must know the truth as to should now recognize that both
•
The
American
told-a .lot
what the
,
of
last: 11
years
have done
to this
nation, and then decide if
that is the road they wish to con¬
tinue travelling.
; Of course, citizens in wartime
recognize that the temporary sur¬
render
of
certain
rights and the
of temporary regula¬
acceptance
tion and
restriction, are necessary
But they still must
criticize, to the end that such
to
victory.
regulations
not
and
interfere
of
conduct
It
is.
restrictions
with
the
the
will
successful
war.
especially
must
become
state.,
We
mainspring
of
honest profit
slaves
not
of
the
break
the
American
for
,
life-
hard
work, for
accomplishment, and for the use
of genius
in
experimentation, re¬
development of the
things required for the
sustenance,
recreation and
happiness of the
search and the
human family.
American business
more
part
than
in
this.
the
government,
important that
the
must
reverse
,
men
You
American
by
acting
must do
must
take
system
of
NOW
to
the trend in
governmental
That trend
today, as out¬
the business
affairs.
shell
lined by the, Federal administra¬
tion—and up until now
approved
of
criticize,
man emerge from his
timidity and feel free to
and
to
present
to
his
Volume
Number 4216
158
THE COMMERCIAL & FINANCIAL CHRONICLE
by the Congress—will: lead ulti¬
mately to the destruction of states'
Wanted:
rights,
Adequate Basis For
—Ed.)
on
Sunday night made
things
a
little
better
by
his
thoughtful speech, most of whose
a
the socialization of "the
school system, of medicine, of the
legal profession and of business
and industry.
This is not a job
for once a year or every four
(Continued from page 1295)
years.
It is a job every year—
will
mean
something far
less bitions between the Allies.
365 days a year—and it requires
tangible to us than to them who
Walter Lippmann in his over¬
the same kind of efficient organi¬
have
borne
the
burden,
the praised book, The United States
zation which you devote to the
tragedy
and
the
bitterness
of Foreign Policy, in which pontifconduct
of
your
own
business.
blitzkriegs and invasions. At the ically he does much violence to
Recognize your duty NOW to see
end of the war there is bound to history advocates a "nuclear al¬
that the men who take high office
be a rather confused reaction. Our liance" of the United
States, Great
in" Washington and in your slate
soldiers will have no desire in¬ Britain
and
Russia
which,
he
capitals, in the executive branch
definitely to polic^ the world. thinks, in its own interest, will
or as legislators, be they Repub¬
Nevertheless
there
will
add other nations to it and insti¬
be
a
licans or Democrats, believe in the
strong urge to imperialism.
We tute a world order of justice which
things you are trying to save. And
shall emerge from the war the he
nowhere
defines.
In
other
have the facts to support every
strongest nation in the world with words, his book stops at its most
effort that you undertake.
You
no
very obvious ; and immediate
important point which is showing
cannot expect to save the Ameri¬
gain from victory, with a huge that his alliance, once a common
can
system of free men unless
debt and a tremendous problem
enemy has been conquered, will
your representatives in the Fed¬
of transfer from a war to a
peace develop on any other lines than
eral, State and local governments
economy. All these circumstances have attended the development of
sincerely believe in and will fol¬
contribute to a growth of imperial¬ all alliances from the times of the
low through in saving the things
ism and militarism, partly as
Greek city states down through
pro¬
you wish and I wish saved.
viders of jobs. We shall
probably the Napoleonic period and the
Always we come back to facts want
to dress up that naked im¬ First and Second World Wars.
and figures,
and sometimes we
perialism with a few fig leaves of
Prime Minister
Churchill and
stack them up against the prom¬
internationalism.
We shall want Governor
Dewey of New York put
ises which distinguish the New
"to
do
others
good" • and
that their trust in an Anglo American
Deal from the "American Deal"
phrase may mean two very differ¬ alliance. This would be valid as
where the cards are really on the
ent things which, however,
easily a road to peace or a basis for
table. Facts are usually strangers
pass from the better to the worse. peace
only on two
conditions,
to the extreme internationalists in
We, or some of us, shall be very which these notable personages
our country but they are willing
optimistic about our ability to ignore. First, that at the time of
to
be
long on promises.
They
general
But the
Just and Lasting Peace
"re-educate" the German and the
place theddeal ahead of the prac¬
tical, and would substantially sac¬
rifice the national identity, char¬
acter
and
independence of the
United States Government in
Japanese people at the
that
we are
the
more
ex¬
super-state or United
a
of the World.
They do
explain how that super-state
would avoid intrigue and coalition
which
people demanded.
own
not tell
lems
do
man
avoid
international
competition..
and
objectives
world
cannot
are
solve
democratic
dedicated
are
poor
her
if
prob¬
fashion.
We
problems if
our
to
universal
recent weeks the discussion
among
us
really turns
nothing but the
imperialism; shall it be
imperialism, especially in
hemisphere,-or shall it be in
kind
com¬
the formation of the
alliance, it be
solemnly announced that all peo¬
ples honestly desirous of peace
and
willing to meet the conditions
of peace, will be admitted to the
confederation
liance is
military conscription, great arma¬
and imperialism.
Yet, of
Their
are
racial
ments
beings, or how they plan to
the problems arising from
desires
the
in
we
how they would over¬
us
own
problems.
cannot thus solve
the innate selfishness of hu¬
come
in
America
their
They
our
the successful survival of democ¬
racy
groups within itself, if ;and
when certain nations had to be
tof
something
impor¬
^ It is certain that the chances of
not
denied
to deal with
as
and
reeducating ourselves
and economic
Nations
pessimistic about
immediate
tant task of
so
change for
very
time
same
on
of
faith, immediately
and
America
Rico
and
sions
outside
power.
with
Great
Britain,
or
independence,
we
afford
can
definite
to
into
enter
agreement with Allied
nations for the purpose
ing
of enforc¬
middle group,
This
peace.
mean imperialism. Never
history of the world have
the
liances
preserved
have
will break
broken
on
Al¬
peace.
and
those
the
nations which
acknowledge
sanctity of contracts and the
obligation
to
fulfill
sentment of excluded
Americans
trade
treaties,
believe
and
wish
change
on
to
ex¬
one
for
fair
the wares of
those of another
nation
a
basis
which does not
needlessly disturb
the markets for
our own
products.
This basis of
exchange, they hold,
must consider cost of production
and the established living stand¬
ards of the people in the various
.countries involved. And they know
that we must maintain peace and
economic
tranquility
borders
own
if
.
within
our
would
we
be
strong enough to render real lead¬
ership
V
service
This
the
to
ii\:
world.
midway group»leaves the
United States
justified in. main¬
taining an Army and Navy of suf¬
as
ficient size • and strength to help
keep the peace by force if necessaryv This group feels this is like
paying a small premium on an in¬
policy
surance
of
peace/
and
in
facts
and
must
figures,
not
cannot
They
keep.
are
must
am-
Let not
be
words outdistance
our
the
iln
will be
to
vote
make
the
cannot
a
win
either
hoping.
This is
or
nation
people
a
world, and it behooves
we
are
ognize
•
that
the
on
the vote of
great
our
alliance
would be correctly considered
by
our
the rest of the world
as
a
invite new wars; it would tend to
consolidate Asia against us.
It is
no basis of
peace at all.
Indeed,
of
any
peace.
a
police force alliance
no
sort is a proper basis of
There may be a place for
genuine
force
in
international
the world,
but
service, nobody
to
pays any
the
force
to
necessary
What
sort
control
which
he
thinks
exercised?
peace
of
it?
organization would
Who
would
be
ad¬
police
no
com¬
attention
scale
for
the
us a
warmed-up
watered-down and
version
Fourteen Points.
agree
their
the
on
Wilson's
they do not
interpretation of
document.
own
of
And
Witness Mr.
Our
a
tide in the
:
Own" speech, which -applies
regions like Burma and Malaya,
which by no moral right were
ever England's own and which are
to
affairs of
..
Which, taken at the flood, leads not her own today even by right
on to
of possession, but will require for
fortune;
Omitted, all the voyage of their their recovery the blood of thou¬
life
sands
ing but
miseries;
'•
.
we
when
Or lose
must
take
the
current
it serves,
our
,
ventures."
<
of
Americans.
Churchill has
in shallows and in
k
a
Yet
Mr.
offered them noth¬
return to the status quo.
Secretary Hull (Secretary Hull's
speech appeared in the Sept. 16 is¬
sue
of the
"Chronicle,"
page
1086
fulfillment
of
a
about
our
Puerto
world,
what
What
Rico?
but
about
racial problems here at home?
What about
prin¬
the causes
■■
cooperation.
That
cooperation
should be inclusive of all
peoples
who will honestly
accept its terms.
The test of the value of the co¬
operation will be not the degree
a mighty
police force is
erected, but the degree to which
disarmament and the end of uni¬
'
to which
war
the
these
of
the establishment of
just and lasting peace, require
ample
to
of
the war,
possible.
versal
military
if
we
service is made
We shall have lost thC
have to continue uni-
*
versal
military service after it.
There may, indeed, be a taste for
our failure to abolish
the insult of Asiatic unilateral ex¬
clusion? How shall our humanity
which
toward the world be
generally ac¬
we have tried harder
than we have to bring some relief
ordinate to positive cooperation to
cepted until
to the children of
occupied Europe
and her
cruelly-oppressed refu¬
international
an
police
force
'
to
the
Ely Culbertson quota
principle might be applied, but
such a force must always be subget things done. Already that co- 1
operation exists in a great many
individual instances, like the In-
gees? What have the Italian peo¬
ple to hope for the future?
I ad¬
ternation Postal
mit that the immediate task is to
increasing them to deal, for 1
instance, with the problem of food.
get rid of the Germans.
what?
Do Messrs.
Roosevelt
But then
It would be well to have the
sort of
freeze
the bureaucracies which
cist
until
bad
fascism?
which
produce
Will not the
do
fas¬
overtook
forces
same
produced fascism before
it again, under another
changes
I
in
were
weather
unless
name
substantial
more
made?
are
not
suggest that it is the
business of the British and Ameri¬
cans
to make any
tion
in
Italy.
sort of revolu¬
I do suggest it is
give the people
their business to
who
are our real friends, the
ple whose opposition to the
peo¬
us so comparatively easy a
victory, their chance to work out
And this
principle
will apply everywhere in Europe.
It
certainly should
apply in
preached
in
for
quarters
some
must
tain
powers,
highly
or
the
on
centralized
other,
world
That confederation
a
state.;
best pro¬
can
machinery for
settling disputes
and
It
be, on the one hand, a
police force alliance, of cer¬
mere
vide
right
inclusive confederation.
not
preventing
among
'
na-
tions and for positive controls of
certain'
economic
processes
on
which
J
increasingly the well being
of all depend.
\
.
To work out this matter in de-.
tail requires conferences and not
merely secret conferences.
I
,
am
war. still of the
gave
their salvation.
as we
Churchill and
Badoglio, the King and all
power
Union and those
examples must be increased
are
to
intend
Stalin. It is not necessary, in order
to give due credit to the immense
opinion that the cause
of peace and a just peace would
be
furthered by
establishing a
standing American commission
..
V
on
representing the State De¬
peace
partment, both Houses of Congress, and of course, both parties,
and
,
,.
representatives
of
various
sections of the public: labor, farm¬
ers, educators, etc.
Similar com¬
missions might be encouraged in
other lands..
•
bravery of the Russians, utterly to
condone in an ally a totalitarian¬
!v" .Now is the time to adopt
ism we condemn so
,v
utterly in an
But Stalin's approach to
enemy.
Germany, is far more sane and
hopeful than is the apparent ap¬
proach
of
the
English-speaking
He has already made it
completely
plain
that
he
dis¬
powers.
tinguishes between the Nazis and
the
German
will
people and that he
with a government of
the
deal
German
people without in¬
fantastic notion of
an indefinite policing and reedu¬
cation of the people through for¬
eign gauleiters.
V
All these problems are certainly
not covered by
the endless re¬
iteration of the phrase "Uncon¬
ditional i: Surrender";
not
even
when that phrase is qualified by
such a thoughtful speech as Sec¬
retary Hull has made or by Vice-
dulging
the
,
President Wallace's uncritical
en-
thusiasm for President Roosevelt
and the "common man."
The
thing
time
more
has
already
The
United
later
States
some¬
think.
we
should
all
use
its power and its influence to get
its
from
Allies
a
concerted
and
solemn announcement to the peo¬
ples of
the world
that
we
tion,
want
matter who may be the
no
final victor.
We want
peoples'
proclaim
that it shall be a peace without,
vengeance against any people and
without our attempt, through pup¬
pets or gauleiters of our choosing,
to prevent the people of any land
from solving their own problems.
peace.
With
state
To that end
purpose
shall not be
antee
for
a
a
peace
few
that the peace
to try to guar¬
uneasy
years
white supremacy in the Far East;
that throughout the world we seek
principle than imperialism
for the organization of nations and
a
new
that every people
self-government.
is
in
The
later, but
the. whole business is left to
what is sometimes called a "cool¬
ing off" period, it will be
a dis¬
The cooling off period will
aster.
merely mean a let-down of such
hope for the future and such a co¬
operation as now exists; the rer
vival of animosities and suspicion.
The time'for agreement on the
general outline of cooperation in
behalf
of
lasting
a
is
peace
now
while
the hopes of men turn to¬
ward peace.
These are the things
that lovers of peace should be
say-
ing to their government in
land.
■
"r'
::...
^
every"Vt*
■
.
....
i
Sen. Heeler Blames
Bureaucrats for Man¬
power
At
entitled
to
a
press
Wheeler
what
the
conference
spoke
he
called
general
said
about
bungling
also
Press
advices
on
Sept. 25, ;
gives other comments ;
of Mr. Wheeler
"The
as
follows:
bureaucrats
cannot
escape
in
J
Washing- V,f:
the blame for'.
the chaos that exists in the
"The
incompetence
these
the
more
and
man¬
situation today."
power
of
of
situation,
manpower
Washington
.
which
ton
Senator
bitterly
the
Associated
from
a
we
equal solemnity we must
our
be filled
can
if
more per¬
Indeed it
than
a gen- •/
eral framework of the future.
details
'
,
for
come
definite and
tinent to world peace.
is
■
the
They gave
The
ciples, the removal
mitted to it? And on what terms?
It is all very well to cite our treat¬
ment of the Philippines as an ex¬
means
maintaining disproportionate
power and advantage.
It would
co¬
■'
*
And
a
men
gen¬
our
or
.
"There is
by
rec¬
people in
Quoting Shakespeare:
by ideal¬
practical
of
we
have
development and perpetuation of
Churchill's famous "We Must Hold
you
solution
suggested,
have
except by our
No other coun¬
to remain friends and
Is bound
tlemen and all Americans to
our
people except through their ex¬
ample at home. This is vital, if
war
battle
never
sound.
were
Atlantic Charter.
Its au¬ the earliest possible end of the
thors, ' Messrs.
Roosevelt
and war, which by its continuation
Churchill, wrote a document of threatens
European
civilization
try must try to influence the will
pious hopes, not positive pledges. with something close to destruc¬
of our
and the post-war vic¬
magic wand
I
or
the will of the
or
other
any
by standing
on
facts, figures and promises.
waving
istic
analysis,
what
promises
keep
example at home.
achieved
tory
sound
We
last
won
did
the
cost is
.
we
more
Whatever
power.
said, unless
would
commitments
our
our
alliance
An
which we munity of nations can be born
which—worse yet simply on the police principle. The
police in every civilized
com¬
—we do not intend
to-keep.
munity are subordinate to com¬
It is my tirm conviction that
munity cooperation and are con¬
every nation should scrupulously
trolled by law.
That is the only
avoid doing anything that can in
way in which you can talk of a
any
way
leave the impression
police force in the world.
^
%
with the people of one
country,
I
have spoken so long about
that those of another
country are
various
proposals
for
alliances
interfering with the election pro¬
rather than the Atlantic Charter
cesses of that particular
country.
because, except for occasional lip
We must not try to influence
is
cannot
peace.
upon
American
proved.
*,
made by words*
fulfilled by acts.
The easiest way to lose.our
friends and to make new enemies
dollars
being spent for this war,,
a justified taxation
the people.
.
true
on
and
acts.
operate
a
have
suggested but what Mr. Churchill
that we
promises which
make
Promises
the light of the human lives lost,
and the hundreds of billions of
such
Wars
has
re¬
peoples and
problem depends entirely
even
in
World
of
when conditions become difficult.
These
ex¬
British
power.
always
the differences of interest and
we
them
past,
did
tjie
the rocks of
which
our
contains the great body of
citizens—would recognize only
the
ev^n more
truly,,
British power as two
exceeded
alliances
that
exceed
commitments,
than
a
In
principles
time has come for high
officials to go beyond these gen¬
eralities.
How would Mr.* Hull
Germany. I am far from feeling
Lipp¬ the
indiscriminate enthusiasm now
not
commitments
increase
maintaining our
but who also feel
English
Walter
should
American
;n
in
•
the free
of
American
alliances
believe
few
ma¬
has truly said that American
pure, unadulterated isolationists,
are
those millions of Americans
•
Britain
up
posses¬
American
who
relatively
set
imperial
nations.
commitments
Anglo
the
and
other
speaking
mann
with Russia and maybe China?
Let me stress the fact that these
tionalists
sec¬
of good
Great
will
al¬
chinery to guarantee true freedom
to India,
Burma, Malaya, Puerto
ceed
alliance
Midway between these interna¬
the
evidence
an
this
.
which
beginning; and
as
our own
mendable, but their knowledge is
far from convincing.
.
the
ond, that
of
1309
War
to
on
bureaus—and
the* part
I
Department—is
include
,
doing
;
sabotage the war effort
:
break
down
morale
of
the
people than all the fifth column¬
ists in the United States.
"They're
asking
the
American
people to make sacrifices. They're
willing to compel mothers to go
to work in industry and put their
children
on
themselves
the streets while they
sit complacently back
in
their soft jobs handing out
propaganda trying to
discredit
anybody who dares to criticize
them for their incompetence and
lack of intelligence."
.
"
capacity, and a multitude
and developments
ductive
Magill Advances
Post-War Tax Program
(Continued from first page)
.
of this address were com¬
parable with one on how and
when we will win the war with
scope
general sales tax
in place of the latter. In addition,
he
said, Social Security taxes
would run from $1.2 billions to
$11 billions, or a
Japan,
Both are addressed to
problems which lie very much in
the future.
Both will be affected
$2.4 billions annually.
Although questioning whether
the total levy on personal incomes
gill .said;'
"Individual
r '•
income
great imponderables, as well
as
by numerous events that can¬
not be foreseen in detail today.
But if it is not too soon to discuss
by
Ma-
much reduced, Mr.
could be
ternational monetary
sions and credits must be devised
provide
individuals to
for their own
and
the flow
courage
for
which
of
capital
High surtaxes and high
rates have made the
going to be, and how best to meet
estate of any
them.
It is still
We
to our economy that
encouraged to carry
life insurance and to
fiscal
accumulation of
size almost
important
be
citizens
own
an
impossible.
their
build up
mands,;
their
will take
deaths
care
of
exploited.
be
to
enormous
an
army
workers, more than we have
employed in peace times. We
ever
will
have, at home and abroad, a
for new
houses,
automobiles,
airplanes,
shoes,
clothing,
food.
Even
a
Treasury fiscal expert will aspire
to
devise a
tax
system which,
while producing the very large
which
amounts
the
Government
will
require, will also encourage
expanding economy, with the
an
full
employment
and
general
well-being which are its fruits.
Now
do
what fiscal conclusions
to
considerations
these
with
Even
this
us?
lead
ground¬
general
work, it may seem pure crystalgazing to attempt to state specif¬
ically what the Federal tax system
will be after the war.
However,
we can put down the inescapable
Federal expenditures, in each case
allowing a little leeway up and
down. Again, we know what taxes
we have been accustomed to, how
they have worked, and what the
other
make
and
business
on
will have
We
of life, our de¬
ways
our
pleading
fairly
ideals and
govern-
ment are pretty well established,
Most of us would like to see continue the civiliization we knew
their lives will prolife-blood for business, and
after
considerable
a
now
history, and, though the na¬
ideas,
savings funds,
own
have
tion may be young, our
which during
vide
domes¬
policy ought to ba The
first step in securing a tax system
that
is
bearable is to consider
what the nation's fiscal needs are
tax
estate
to consider what our
tic fiscal
security,
new
certainly not too
it is
war,
soon
to
save,
expanding economy will
an
require.
their
the
will enable and en¬
that they
so
organization and in¬
affairs after
international
provi¬
tax
character and
the
inventions
great consumer demand
.
that
seemed
lions, tobacco taxes of $1 billion
and miscellaneous excise taxes of
of
possibilities are.
We can
reasonably accurate fore¬
cast of the tax components of our
post-war system. Moreover, even
though our table of receipts and
expenditures
proves
to
be
all
awry, we will gain something in
thinking
through
the
various
dependents."
emphasizing' the need for
lower corporate income tax rates
in the post-war period, Mr. MaIn
,
vote, much
to
h'ave
we
attention
more
the
on which our tax system, as
well as our Government, is built,
will remain. At least, this is the
effect
of
than
taxes
taxes
on
business
activate
the
and
"To
chine
convert
to
formulation of our
after the war?
the
govern
I
Federal tax system
could
Here
war
the basic attributes of a
we
each
consider
ma-
the
of
good tax
plants to peace-time production, a system normally cited by fiscal
great deal of new investment will, student's: simplicity and economy
be needed.
Some of the
great in administration, adequacy and
corporations have surplus and re¬ diversity of taxes levied^ fairness
serves
adequate for the purpose. and equity, For our purposes, two
It is clear that,
Many have not..
meet
to
obligations
our
to
abroad,
our
mind.
mar-
people and to develop
own
kets
factors
ments
additional
large
in
the require-
enough
are
First, what are
Federal
the
of
keep
to
Treasury
capital, but much should and
will
come
To
vestor.
the
is
attract
,
essential
that
investment
corporate
items of Federal expenditure, and how much must we
allow for them?
What kinds of
in- j functions
private
in
corporations which conduct
major business enterprises, it
our
be
the
from
taxes
citizens want
since,
in
general,
the
to
be
less
heavily burdened than
its young and growing competi¬
tor," he added that "corporations
exploting new inventions and de¬
velopments are particularly hard
hit.- Hence the first step in fos¬
tering sound business activity and
development after the war is the
repeal of the excess profits tax."
Continuing, Mr. Magill said:
*'As
a
nation,
served
would be bet¬
we
well
with
experiment,
high level of
a
however,
with
rates much reduced from present
heights/ More important, perhaps,
legislative
assurance that we are no longer
involved in a spiral of increasing
would be executive and
taxes
and
of
administrative
pro¬
some
of
you,
it must have
income taxes, special excises on
liquor, tobacco, gasoline and other
commodities regarded as luxuries,
estate and gift taxes, and social
security taxes, and possibly a gen¬
eral sales tax.
These
upon
tem
A
general
assumptions:
(1)
that major United States military
operations in Europe will end by
third
quarter of 1944, and
the
those in the
Pacific by the
third
of
during
the
the
major
Federal
is
tax
sys¬
decade.
pre-war
sales
general
the
were
likely
pealed.
about
$20,000,000,000 will be raised without its
It
will, no doubt, be modified
in various particulars briefly out¬
use.
lined
in the next section, but in
probability it will still be used
all
to raise
cises
Liquor and tobacco
have
major
than half the needed
more
so
items
will
line
tax
a
unlikely that their
continue.
not
ex¬
history as
Federal taxation
of
that it is very
use
long
The
gaso¬
might be yielded to the
will
price level will
that of 1942.
United
close to
average
V
call
tax
that
of
we
in
to
a
and
exist
settlements
Some useful
trusts,
war.
after
the
Citizens and voters will not
of business
indi¬
and
tain
the levels of expen¬
reached during the war.
hand, we have cer¬
inescapable expenses, which,
as
still total
much
possible, will
as
materially
more
than be¬
fore the
of
these
the Federal Gov¬
tion
States.
The Federal
give
them
up
Govern¬
have been out¬
Before
1914,
the
the
last
war,
Federal
in
fiscal
Government
settled
Federal
over
National
Federal tax system should be re¬
viewed after the war. But funda¬
mentally Congress must consider
whether the post-war tax system
fosters those incentives to busi¬
activity which a
healthy
requires.
Can business
economy
terprises?
Can
new en¬
Or does the tax system
load the dice in favor of 3% bonds
and safety?
After the war, we will have in
hands a vastly increased pro¬
our
World
expenditures
taxation, as compared with indi¬
or
from
down
vidual
risks?
A normal tax
particulars.
would be collected at
20-25%
source
and salaries.
wages
on
Limited credits would be allowed
for
savings in the form of insur¬
premiums, debt repayment,
ance
individual
The
etc.
taxes
receive
also
would
stockholder
credit
the
for
paid by the corporation
on
the dividends he received.
(b) A corporation tax of 24-40%
be
The aim would
levied.
be
to
the
levy
imately the
tax at approx¬
same rate as the nor¬
individual income
tax, but
mal
since for years
to be general agree¬
seems
that substantial reductions should
The
after the
war.
individual
of
rates
income
corporate
taxes
and
will
be
materially affected, of course, by
the level of business activity.
In
view
the
of
and
savings
excess
unsatisfied demands of
consumers
during the war period, and the
generally increasing trend in the
national product,
gross
sonable
to
it is rea¬
comparatively
assume
If corporate earn¬
sufficiently
high,
a
20-30% tax rate might prevail. A
good business.
ings
were
40% rate is perhaps a little higher
than the average will be for the
post-war decade.
to
(c) Estate and gift'taxes ciught
be coordinated into
a
single
transfer tax. No tax should be laid
transfers between husband and
entirely.
changes in the taxes em¬
ployed to finance the Social Se¬
structure;
are
current
discus¬
of rates and of the scope
of the program.
The
wife.
excess
World War I
profits tax used in
was
materially
re¬
duced in rates in 1919 and repealed
in 1921, three years after its close.
Not much change in present
exemptions
or
is
likely.
cated.
to be no demand for
war.
Interest on the pub¬
debt, the cost of the military The present excess profits tax, a
establishment, veterans' much more complicated affair, is
pensions, aids to agriculture, and certainly no more popular with
social security are principal, items.
taxpayers, at least, than its prede¬
The latter may bulk large, unless cessor. It has numerous demon¬
business activity provides a high strable
failings; its discriminatory
degree of employment.
operation in cases of competing
here?
major fac¬
and arrange¬
devices, like
take
of
(d) and (e) Liquor and tobacco
ment, having utilized estate taxes
for 27 *years and gift taxes and taxes will probably be levied more
gasoline taxes for 11 to raise very or less at present rates. The return
substantial
sums,
is not at all may be somewhat more than indi¬
expenditures
a
Doing business in corporate form
is discouraged by a form of double
to
several
mental
be
undoubtedly
spent about $1,000,000,000.
In fis¬
cal 1924, after we had thoroughly
afford
but the law would be modified in
rates
■
lawed; others, like insurance, are
both encouraged and discouraged.
ness
(a) Individual income tax rates
approximating those imposed on
1942 income would be. required,
(f) No important change is con¬
in presently imposed
templated
excises.
As
indicated
previously,
elimination of the
gasoline tax would reduce collec¬
tions. A general retail sales tax
at a 5% rate might be levied in
the
sharing
addition to
or
in substitution
or
for
the particular sales taxes to which
we are accustomed.
and civil
investment, of busi¬
family
revocable
outline, the tax struc¬
lic
transactions generally, and of
ments.
In broad
ture would be as follows:
the
social
determining the form and
character of
ness
our
business
want
best en¬
tax system
excises and/or
powerful drive to reduce govern¬
reduced
we
become
have
Taxes
tor
through
kind
life
can
miscellaneous
on
j
-
will
sions
how
(f)
general sales, $4.1—total, $20. So¬
cial security $1.2 to $2.4.
ernment, followed by a distribu¬
of part of the collections to
There
On the other
Second,
$4.4; (c) estate and gift, $1;
liquor, $1.5; (e) tobacco, $1;
coordination
collection
for
taxes entirely by
ditures
State activities or not?
(d)
come,
be made
of
revenues
State-Federal
the
lowing proportions: (a) individual
income, $8p (b) corporation in¬
that
States
that
Twenty- billions of revenue
these principal
taxes in approximately the fol¬
ment, however, that present cor¬
porate tax rates are at a peak, and
has
occur;
enterpriese will not
3.
could be raised by
There
tax
owned
(3)
.
steadily
grown in importance in the Fed¬
eral
system.
It is ^unthinkable
income
The
States, in whole or in part, as
might some greater portion of the
field of estate and gift taxation;
or
it may be that a system of
and
a
part of the post-war Federal rev¬
enue system.
v
r.v,v'
v.- - ;y
the rate has been
addition, and the war-time excess higher, the change would probably
be
profits tax will probably be re¬ not
accomplished - at
once.
a
of 1945; (2)
that new
large-scale shifts from privatelyowned
enterprise
to
publicly-
quarter
considerable variety
a
or
particular excises Will form
would
taxes
components
various levels of government? For
they afford to undertakes
To
based
is
of
the
principal Federal, taxes
of the post-war decade will prob¬
ably be individual and corporate
revenue.
conclusion
"
'-v.-
.
The
2.
example, is the Federal Govern-
business
full:
decade.
to
visions of
increasing severity; that
plan on the basis of
rates < and provisions established
for a reasonable term of years."
Mr., Magill's address follows in
This
of $20,-
000,000,000 is a good working ap¬
proximation
of : total
Federal
expenditures
for
the
post-war
seems
men
can
$20,-
figure
average
There
partnership business,
business activity and lower tax i Corporate financing by means of
rates than with moderate business equity securities is similarly dis¬
activity and high rates.
Perhaps couraged, while debt financing is
neither corporate nor individual sanctioned—though the SEC takes
rates can ever be brought down a contrary position. Certainly all
particular impacts of the
to pre-war levels. Congress might these
ter
about
run
the
curity
courage
operation,
that
reduction in
the
well-established corporation is apt
forces, several students of the sub¬
ject have reached the conclusion
basic
discriminatory
its
ditures, and to balance the budget.
possible evaluation
of. the
innumerable -conflicting
sales tax
After the best
vidual earnings. Hence thoughtful
students expect a very material
tax." Stating that "it is frequently
in
general pressure, however, to re¬
duce taxes, to reduce total expen¬
likely
willing to pay for them? A related
question is, what functions are the
ment to subsidize municipal and
unfair
(and some might be
diminished). There will be strong
lion's share
we
2The greatest present brake on'
and
increased
longer than necessary in the role
of a senior partner who takes the
are
States to perform, and what are to
be the relationships between the
corporate enterprise," Mr. Magill
pointed out, "is the excess profits
Of course, each of
items of expenditure
is and will be the subject of dis¬
cussion and political controversy.
Any of them might be materially
current rates.
these major
Government to
our
do
fair; that they j
permit a resonable return to pri-j
vate investors; that they provide
adequate deductions for losses."
I
demonstrably
will
establishment,
at-, somewhat over
ity provisions
want to continue Government any
and how much
perform,
Federal budgetary
for the first post¬
military
veterans' pensions, and agri¬
cultural benefits and social secur¬
more
we
activities
and
decade
several
likely to be? What are the ines-
amounts will need to be invested. I capable
No doubt government will supply.
some
war
will
What major factors, then,
various kinds of business
and social activities.
Average
expenditures
000,000,000.
basic premise of this address,
the economy, and the imof the individual forms of
upon
pact
1.
ophy
We must de-
made after the war.
creased
a
| before the war. It is certain that
governmental modifications affecting the budget will occur, like items and the considerations back
social security; and changes in the of them.. As citizens we will have
to have an opinion on these fiscal
gill had the following to say:
j relations of business and govern"There
seems
to
be
general ment, like the establishment of problems, and it might as well be
an informed opinion.
y
agreement that present corporate the Securities and Exchange Corntax rates are at a peak, and that mission.
But it is still a reasonI.substantial reductions should be able assumption that the philosof their
Thursday, September 30, 1943
& FINANCIAL CHRONICLE
THE COMMERCIAL
1310
$4,000,000,000.
War
just
were
In
I,
the
1939,
Government
spent $8,707,000,000. Increased interest and
military expenditures alone after
World War II may exceed this
ure.
Total
expenditures
fig¬
at
an
of
$20,000,000,000
are
therefore reasonably to be antici¬
average
pated.
-
On the other hand, there seems
a
reasonable
probability that,
the average, Federal
during
the
post-war
be held to about this
fair to
assume
on
expenditures
decade
figure.
can
It is
that the States and
localities
will
wish
to
play a
larger part than their recent de¬
clining role, and that taxpayers'
organizations
will
seek
corre¬
sponding reductions in
eral
the
Fed¬
budget. The projected figure
provides for a considerably in¬
businesses; its -failure to distin¬
guish adequately between exces¬
sive profits and normal profits; the
enormous difficulty
of determin¬
ing invested capital—to name only
a few.
The recognized inequities
in
the basic structure
have
led
to
the
of
the law
enactment
of
II.,
remains
It
consider
to
what
in the. tax system will
foster an expanding economy after
the war.
I have
already men¬
tioned various desirable changes
in the present program of taxes,
changes
but
of them need more
some
During the
phasis.
em¬
when our
civilization is at stake, individuals
war.
and the corporations they own are
willing to make any sacrifice to
provide the Treasury with the
sinews of war. Hence, there has
serious opposition during
sweeping relief provisions, which,
been
in
the past three years to the collec¬
tion of the amount of taxes the
turn, will make administration
almost
impossible job.
Ah
though the idea of a special tax
an
on
excessive profits has many
ad¬
agreed
herents, tax experts are
upon the great difficulty of con¬
structing a fair and workable
law.
Few would fight to retain
the present tax. The chances are,
therefore,
that
the
tax
will
be
no
and the
President
wished.
When
however,
we
war
than
we
omy;
ous
forms
kinds
of taxes upon vari¬
and social
are
leaving the income tax the sole
major Federal impost on corpora¬
tions generally.
stances
which
our
wide variety
There
of particular sales
pre-war decade.
during the
seems
to
be
a
reasonable
probability that either a
general
to
of business
There
taxes
have
and'the impact of the indi¬
vidual
activities.
The' Federal Government levied
over,
much
the effect of taxes upon the econ¬
abandoned not long after the war,
a
is
devote
must
attention
more
Treasury have
the
in
many
tax
in¬
struc¬
ture, which, like Topsy. has just
growed, opposes accepted govern¬
mental policy as manifested by
other regulatory
«
is
The
full
dustry
devices.
major need
after
employment.
or
the
Private
government must
war
in¬
pro-
Volume
Number 4216
158
vide activities and
livelihood for
a
citizens who want to work.1
of
THE COMMERCIAL & FINANCIAL CHRONICLE
The Transition From War To Peace
Most
would prefer to see private
us
(Continued from
industry do the job.
'
;
Since there
will
be
many
more
individuals
seeking employment than in any
peace-time year, industry must
operate at
high level of activity
On the asset side,
we
will have
greatly increased
productive capacity—many newly
a
to absorb them.
•
•
•
built
plants
more
•convertible
facturing.
.«
i
log
r
peace-time
There is
great back-
a
unsatisfied
manu-
mand for
,
of
to
less readily
or
de-
consumer
houses, for automobiles,
for helicopters, and for an infinity
of smaller objects like fountain
pens,
typewriters
and
radios,
which have been unavailable. We
.
,
•
<
told
are
terial
.
that
the war,
for all its
terrific waste of human
has
resources,
accelerated
and
ma-
enormously
invention
and
devel¬
opment in a thousand fields, from
/plasties to chemicals and from
planes to radios. Hence, there will
: be great human need for business
.activity, both because men want
■»
.to
work
the
and
because
the old
and
new
"
want
men
products of
industry,
To
:
and
the
to
business
convert
the
war
deal of
great
investment
new
will be needed.
Some of the great
corporations have surplus and re-
adequate for the purpose.
Many have not. It is clear that,
serves
to meet
obligations to our own
people and to develop markets
abroad, large additional amounts
our
will need to be invested. No doubt
government will supply some cap-
•
ital,
•
much
but
from
come
To attract
,
the
should and will
private investor.
investment in the
porations which conduct
•.
ma¬
jor business enterprises,- it is
that corporate taxes
es-
sential
demonstrably fair; that they
.
cor¬
our
mit
be
per¬
reasonable return to private
a
investors; that they provide ade-
•
quate deductions for losses.
,
The
greatest
present brake on
corporate enterprise is the excess
profits tax; It is frequently dis¬
criminatory
operation,
and
unfair,
to
•
its
since, in
general, the
corporation
is
well-established
apt
in
be
heavily burdened
less
contract
■
'
•
•
for
relief
will
be
enor-
cancellation
is
ante¬
an
war
output, it also raises many other
problems which will be pressing
for
solution.
Working capital of
companies will be tied up
many
and
be
settlement of contracts must
made before these
companies
can
their
use
to resume
resources
peace-time operations. The prob¬
lem is much bigger than
before,
but there is
it and
more
understanding of
a
great deal of thought has
already been given to plans for
the liquidation of these contracts
and the
of
freeing of working capital
corporations
work.
engaged
While there is
confusion
in
in
war
chance of
a
instances, in
many
the main it is likely that this
problem will be handled without
major disturbance to 1 reconver¬
sion.
When
the
/A,;' ,.;^-/C:
in Europe ends,
war
contraction in production will be
sharp.
The extent of the decline
in
FRB
the
index, however, will
depend in part
of
war
and
pan
of
the amount
upon
production
that
tained to finish the
is
main¬
with Ja¬
war
for
military occupation
If all military produc¬
discontinued at one time
Europe.
tion
is
and will not be completed
for years. Moreover, it will still be
true that the excess profits tax in
its general operation is compli-
'
f
we
used prior
to
1936, whereby dividends were
subject to normal tax to indi¬
vidual
shareholders.
Subject
corporations and individuals to a
not
like
normal
tax;
let
dividends
bear the usual individual surtaxes
don't subject dividends to a
but
second normal
tax, when individ¬
uals receive them.
Corporate tax rates are at a
high point in our fiscal history.
They ought to be reduced as soon
as they
can be to a much lower
level.
As
a
nation,
better served with
business
activity
would be
we
a
high level of
and
lower
tax
rates than with moderate business
activity and high rates,
corporate
can
nor
Perhaps
individual
be
ever
brought down
Congress might
experiment, however, with
to pre-war levels.
well
rates much,reduced from present
heights. More important, perhaps,
would
tive
be
executive
that
assurance
longer involved in
a
and
we
legisla¬
are
no
spiral of in*
Creasing taxes and of administra¬
tive
provisions
of
increasing
verity; that business
the basis of rates
established for
a
can
and
se¬
plan
on
provisions
reasonable term
'
cated,
cumbersome
'Hence
:
the
sound
first
business
and
unfair.
step in fostering
activity and de¬
of'years.
,
which need to be
made in the individual tax struc¬
ture.
One which is pertinent to
of credit
sions
The
second
corporate
,
,
major
taxation
;
■
inequity
is
the
in
double
taxation of corporate distributions
■;—once to the corporation as its in¬
come,
and again to the stockholder
when
he
receives
dividend.
the
There is no similar, double taxa¬
tion of the income of a business
by an, individual
run
ship,
of
nor
salaries
of the interest
nor
'individual notes
■
attempted to discuss
changes
velopment after the war is the re¬
peal of ■ the excess profits tax,
Fortunately, a number of congressional leaders have come to
>
rate
rates
of
on
or
partner¬
and wages,
or a
corporate
bonds.
taxation
or
Corpo-
are
now,
conversion
FRB
period
a
present
level
this discussion is the formulation
provisions and tax provL
which will enable and en¬
courage-individuals to save, to
provide for their own security, and
incidentally for that flow
capital which
of
new
an
expanding econ¬
will require.
High surtaxes
omy
and
high
made
estate
estate
the
of
tax
rates
accumulation
have
of
an
size almost impos¬
sible. It is still important to our
economy that citizens be encour¬
aged to carry their own insurance
any
and to build up their own
savings
funds that during their lives will
crowded
of
205
to
around
115-120.
No
such
pattern
of
events, however, seems likely, and
the level of production during the
conversion period appears more
likely to be in the range of 125150.
Just
after
as
the
last
war,
growth of small corporations par¬
expensive
uneco¬
After the war, -we want
nomical.
to
and
encourage
the
establishment
and
growth of new enterprises.
Both in theory and in practice the
present
tax arrangement is un¬
inequitable. We need to
wise and
day transactions in business and
family life. But as taxes ihay veto
transactions
and
destroy
incen¬
tive, they can also be used to fos¬
ter the business activity we desire.
To impose them
intelligently
this
the
end
is
the
to
great problem of
post-war decade.
Handicaps In lanpower Situation.
Drafting of fathers is required in order to prevent curtailing the
size of the armed forces and essential
activities, Brig.-Gen. William
C. Rose, Chief of Executive Services of the War
Manpower Com¬
mission, told the annual meeting of the Controllers Institute of
America at New York City on Sept. 21.
He also warned that the
situation will become
manpower
Excerpts from Gen. Rose's talk
follow;
curtail the size of the armed forces
cushion the shock of transition.
—which
Supplies of goods owned by the
"I say to you in all
is
not
or
must curtal essential activities
by
government
of
will be huge and much
equipment obviously can
no
peace-time use. Inven¬
war
the
have
or by i n d u s t
operating under government
i
es
con¬
likewise have very
peace'-time uses. Some of
tracts
may
limited
the
r
material
raw
industries
will
be
plagued with surplus supplies.
will be particularly true of
copper and 'aluminum and some
This
of the
other
metals, where scrap
likely be available in great
quantities.
There will be work
will
for producers of copper and alum¬
inum bars, rods, shapes, and sheets
after the war, but little for pro¬
ducers of virgin metals.
These factors
are
the
on
nega¬
tive side; but on the favorable side
and
tions
has been longer
has involved greater restric¬
of
civilian
consumption,
there
has
been
accumulation
mands
much
a
of
greater
de¬
consumer
tion of them in many lines.
The
accumulations of p u r c has i n g
have also been greater with
which to purchase goods after the
power
is
These deficiencies
over.
ficiencies
in
run
from de¬
economy,
durable
consumers
goods, including housing,
creasing
deficiencies in
to in¬
inven¬
tories and to
growing deficiencies
in machinery and equipment in
many peace-time industries; and
funds are being accumulated by
business
with
and
which
deficits.
individuals
to
Not
cumulations
make
only
of
nearly to the
ing
prices
the
are
ac¬
large,
being dissipated
same
as
alike
good these
funds
but they are not
very
extent by ris¬
they
in
were
the
last war, so that present accumula¬
tions of funds will go further in
buying goods
than
war
would
at the
of this
end
similar* accumulations
at the end of the
last
war.
Consequently, the continuation of
government
spending after the
European war will not
likely be
as important relative to
private spending in the transition
period as it was after the last war.
In spite of the relatively greater
magnitude of the conversion prob¬
lem, it is not so serious as it
sounds
when
stated
in
terms
of
either total dollars of expenditure
for war or in terms of percentage
eral
and that must be converted
war
to
It
peace.
has
been
that the conversion
estimated
problem
as
a
technical matter probably applies
to only about 20%
of industry.
Some
for
companies engaged
and
war
civilian
ent to
and
automobiles will be affected most,
and it is generally estimated that
are
to be conveni¬
as
the
factory or activity
quiring their services.
"Most conservative estimates in¬
dicate
2,000,000
employment
in
vital
increase by
must
the
next
in
6
months.
This is in addition to the workers
who
be
must
hired
to
replace
those leaving for the armed forces
lost to these industries for other
reasons.
Other
industries
and
less
have
will
essential
to
furnish
most of the manpower needed by
these industries which are vital
the
to
a
problem.
war
"Since the national problem is
composite of the local problems
have classified all labor
we
As of Sept. 1, 1943,
areas
in Group I,
Group II, 78 in Group III,
Group IV.
"In
Group
pated
I
areas
requirements of
manpower, both military and civ¬
ilian, for the period ending Dec.
I of this year is
1,010,000, Our
anticipated supply is 530,000, leav¬
ing a deficit of 480,000. In Group
II
areas our
anticipated additional
requirements for the
same period
1,217,000 with an anticipated
supply of 1,028,000, leaving a de¬
ficit of 189,000. In Group III areas
anticipated
additional
require¬
is
ments are 543,000. Our anticipated
supply is 843,000, leaving a surplus
of 300,000. In Group IV areas we
will
need
483,000.
We
anticipate
1,154,000, leaving a surplus of 671,000.
Balancing the requirements
and
the available supply shows
302,000 surplus—but the joker! .is
in getting the
669,000 needed in
Groups I and II from Groups III
and IV.
"There
those
are
who
want to go:
They have
good job, live in their
long-time
have
a
disinclination
to change.
Others
willing to go, provided their
families can go with them. Still
others will go for a short time, but
mar¬
ket
areas in which there is a city
25,000 or more, or in which at
least 5,000 additional workers will
be needed before peak war pro¬
not
are
from
an
satisfied
their
to
home
be
and
indefinite period.
separated
family for
Many make
no
conditions, and are perfectly
willing to follow our suggestions.
Even then there is grief, for we
still
are
ficulties
with the dif¬
confronted
of
lack
of
housing, lack
feeding establishments, lack of
transportation at the place of need;
of
lack
of
that
assurance
fied to remain.
of
duction! is reached.
such.
of
In Group I
There
are
340
those
areas are
current
acute labor shortage.
Group II are those of labor
stringency and those anticipating
a labor shortage within 6 months.
In Group III are those in which
a
general labor shortage may be
anticipated after six months. In
Group IV are those in which labor
supply is, and will continue to be,
In
"Our progress may be briefly
summarized. There are now well
over
9,000,000 in the armed forces.
were little more than 2,000,-
There
at the
000
There
time
of
Pearl
time
of
crease
now
Pearl
over
The
Harbor.
of workers
is almost 300%; in
shipbuilding it is more than 300%.
In productive agriculture, work¬
dustry alone
ers
in 1942
were
some
28% above
the
duction
of
goods and to produc¬
tion problems with which they
have long been familiar, whereas
the transition to
war
involved the
production
of many goods
industrial
managers
which
little
with
had
familiarity.
Will the deflationary effects of
no
or
reconversion
after
the
war
in
industries
some
outweigh
the
forces making for a rapid recon¬
version of other industrial plants
and a relatively prompt revival
of their normal business activity?
is
possible
the
for
the difficulties
transition
period to pro¬
depression through
gross mismanagement. But it ap¬
pears more likely that, by reason
duce
of
serious
the
considerable
thought and
the subject, they will
be well enough handled so that
the pressure of demand for goods
planning
on
1935-39 average, and greater
than for any other period. Finally,
we
able
to
assert
themselves
and
shape the course of business activ¬
ity. Meanwhile the action of the
market
and
its various groups of
maintaining the civilian
at the highest level of
country engaged in the war
effort, and the American stand¬
any
ard
of
living has not been cur¬
tailed in any essential degree.
easily ac¬
complished, on the technical side
at
least,
because
agers will be
more
industrial
man¬
returning to the
pro-
to
some
degree
minds of investors.
Broad
—
in
From
the
"The
*
"Notwithstanding our achieve¬
ments, an even more difficult jub
lies ahead. Our readily available
resources are gone.
Further, cer¬
tain industries that are most crit¬
ical, and in which the work re¬
quires extreme physical stamina,
such as lumber, mining, etc., are
far
from
removed
pulation,
and
for
them
is
the
more
so
centers
of po¬
recruiting workers
at
difficult—all
best
dif¬
because of wage
ferentials which
are
as
old asithe
industries themselves."
Form New
and the accumulation of funds will
be
are
economy
A
Partnership
partnership formed un¬
der
the name
of Coggeshall &
Hicks will become active on Oct.
1
new
with
to the
the admission
Marshall, Campbell & Co.
industry should be
in¬
aircraft in¬
in
already
much
Harbor.
9,500,000 in
munitions industries, as compared
with no more than 6,500,000 at the
are
relatively short time. The
peace
indi¬
the
vidual, if and when transported to
a
pew environment will be satis¬
of
to
and
natural and understandable
a
culties of the transition period are
relatively
homes
own
associates
securities indicates that the diffi¬
sion
don't
perfectly
nitude of the conversion problem
that we converted to war in a
conver¬
antici-
our
additional
are
that
industries
war
in
among
re¬
59
were
and 91 in
com¬
if living in the community
not so domiciled
of
tank
Among the larger industries
up.
essential
or,
manufacture will simply be wound
as
sev¬
munities in which the need exists,
It
such
It is made up of
hundred
needs, either these particular in¬
in war
airplane
work
,
through
community prob¬
lems, each of which must be solved
in the light of local conditions. For
example, at this moment our allover
requirements and our allover supply are pretty well in bal¬
ance.
In fact, there is even a little
surplus on the supply side—yet
of total production that is devoted
to
supply.
over
or
throughout the
people
"The national manpower prob¬
lem cannot be considered in terms
of all-over requirement and all-
for
goods in the face of
declining inventories or elimina¬
war
American
their duly elected representatives
in Congress.
dividuals do not live in the
the following:
war
the
112
must
we
tories of machinery owned by the
the
there
decision—or
our
taking non-fathers from key
jobs, which latter is a responsibil¬
ity that we in the War Manpower
Commission will not accept unless
instructed to do so by the mandate
of
adequate to meet all known labor
sincerity that
must draft fathers
we
especially in certain
requirements.
spending will con¬
tinue for some time, but for dif¬
ferent
reasons,
and > will help
government at the termination of
on
<*>-—1——
r
we
later
worse
critical industries.
government
life-blood for business,
and may continue to be, so high provide
and after their deaths will take
(that this tax provision is seriously
the time required to get out new
This is
objectionable. For one thing, it care of their dependents.
cars will be about six months. In
'tips the scales much too heavily certainly one of the freedoms that
general other industries will pre¬
in favor of debt financing rather we are fighting for.
sent less difficulty and many of
It is fortunate • that
{than equity financing, - since a
legislators them,
including
the
railroads,
corporation receives a deduction and laymen alike recognize the
utilities, raw materials, will have
for the interest it pays, but not leading role the tax
system plays, practically no conversion
prob¬
'for the dividends it distributes. not only in draining our
pocket- lems at all. It should also be borne
It makes the establishment and books, but in
regulating day-by- in mind in considering the
mag¬
ticularly
For Further
into
possible, the
decline from its
as
index may
end of the
I have not
the
this conclusion already.
.
the
brief
Since this
get back to the plan
'
mous,
and
as
are
rates
cations
•
very
connection with retraction of
neither
Corporations exploiting
inventions and developments
are particularly hard hit. The
general relief provisions, if intelli¬
gently and generously administered, can assist greatly in eliminating hardships, but the task of
passing upon thousands of appli-
be
step to reducing production
and in part may be
thought of in
petitor.
'
to
cedent
than its young and growing com¬
•?; new
likely
are
high and that the dollar volume
involved will be very great. While
ma-
plants to peace-time production,
a
•
activate
chine
•
]
'
',\V-
cellations
firig.-0en. Rose In Defending Fathers Draft Looks
page 1297)
several
former
firm
partners
of
It was
previously reported that the new
Street
Letter," /published
by the Broad Street Sales Corpo¬
ration, distributors of shares of
Broad Street Investing Corp.
be
known1 as
Hicks,
Marshall,
partnership
would
Coggeshall
&
Campbell & Co.
THE COMMERCIAL & FINANCIAL
1312
and that
rials
How Fai Can We Co
CHRONICLE
the,manpower and mate¬
for their production
needed
Bondholders' Protective Committee Claims
will be taken from the
production
articles needed not only to raise
of
the standards of life but
Realty Associates Securities Corporation
Extension P|an | Failure Because Inequitahle
to
even
supply essential human needs for
food, clothing and shelter. >
'7 ■':
•
l
.
(Continued from page 1294)
trustee, and prac¬
tically every family in America.
We must pay the interest on them.
We must pay enough of their ma¬
turities to enable us to refund the
restv
These bonds are evidence
of
national
our
on, we
credit.
To
carry
must produce a larger na¬
tional income in real wealth than
at
In
time before the war.
any
have discov¬
ered new strength within us. Our
stability now depends on our use
of this new productive strength.
this
we
emergency
This in turn depends upon cooper¬
ation
between
labor,
industry,
agriculture and government in a
spirit of mutual helpfulness cou¬
pled with increased development
of the resources and markets of
the world..1
;
" " '/
:
'
■
such post-
To fail to develop
J
prosperity will mean a short-
War
of food, clothing, shelter and
of all sorts of goods in the midst
; age
of
much
J the
more
Such
shortage.
would
,
capable of producing
than enough to meet
world
a
make
disaster
a
prosperity.It would
force upon us such regimentation
like
! look
'
would make
as
had
we
us
won
This brings
wonder whether
lost
or
the
fight
against totalitarianism.
•
lasting
is
Peace
peace.
like
a
building; it must have firm foun¬
dations, well thought out plans,
practical
specifications,
skillful
workmanship and, after it is built,
First
maintenance.
careful
the foundations.
come
:/:;777-'- 7;7>77'
must
foundations
The
be
so
placed that every part contributes
to the support of the rest and all
must rest upon the rock of human
understanding and goodwill to¬
ward
men.
Mutual
(
support
This
Nations.
Value
Special
of Aviation
examine further into the
we
feasibility of maintaining military
stability through the unity of the
military forces of the United Na¬
tions,
we
find
encouragement
springing again from the recent
in
advances
The
aviation.
in¬
became
dangerous headway.
This speed of
military aviation tomorrow means
as much to the prevention of war
in
the world of
tomorrow
the
as
speed of modern fire departments
to the prevention of con¬
flagrations in the cities of today.
If
fire
modern
a
reaches
fire at its start,
a
it can
fire with a
a
single fire
danger spot until after the danger
sault of
had started
of
the
in their
world,
ex¬
tremity,
united their forces, the
enemy was stopped and the tide
of battle turned. Today the United
Nations
winning in
are
of the globe.
To develop this post-war pros¬
perity, we must have peace, sta¬
bility,
reasonable assurance of
stability and a readiness to de¬
velop new discoveries and oppor¬
tunities. I speak in terms of avia¬
tion, radio, electric power, diesel
power, automotive, possibly atomicpower, electric welding, light
metals, improved housing, chemis¬
try,- chemurgy,
plastics,
wood,
glass, soy-beans, "sulfa" drugs,
part
On the day of final
of
bucket
any
water
extinguisher.
possible until
or
Never; has it been
now for the forces
civiliaztion
reach
to
distant
a
international
an
con¬
great that generally
to let it run
Today, the interna¬
flagration
so
it became
necessary
its
course.
tional air force could reach pracf
monds" available close at hand.
7
Using aviation as a specific ex¬
ample, we find that three years
ago America produced $280,000,-
the
victory,
the situation
was
military
stability in the world for the cause
of freedom and justice. Likewise,
will
it
be
that
clear
long
as
as
that
winning combination of the
United Nations remains intact, at
least that long
will the the mili¬
tary stability of the world remain
With
Stability-
this
unity of the United
Nations as a foundation, how far
can our nation go now in organ¬
izing peace? First, to develop our
own
internal stability as a local
foundation
for
lasting
peace,
our
government should initiate meet/
ings
at
industry,
between
once
At least, that long there labor, agriculture and government.
peace from military ag¬ Those
attending these meetings
devote
themselves
not
gression.
On the other hand, at should
any moment that that champion¬
merely to planning such post-war
ship team might disband, then policies as public construction and
be
there will end the demonstrated public relief. They should devote
certainty of military stability es¬ themselves primarily to the en¬
$1,tablished
by ;. the war.
While; couragement of such type and vol¬
800,000,000; one year ago $6,400,thank God, it would not neces¬ ume of industry and employment
000,000.
This year it will be
sarily mean immediate war among as will prevent the coming of the
$20,100,000,000.
Our automobile
the
Allies, it would end that depression and thereby eliminate
industry
at
its
peak produced
demonstrated certainty of peace or reduce the number of its vic¬
only $4,000,000 of automobiles a
which otherwise would have ex¬ tims before they become its vic¬
year. I cite this not because I ex¬
isted. Any relaxation of the mili¬ tims.
The prevention of disaster
pect us to continue to produce
tary unity of the United Nations is far better than the relief of its
'four-engine bomber planes at this
introduces a new uncertainty that victims.
rate in time of peace, but because
calls for military measures to off¬
for a short time following the day
Likewise, in our Western Hemi¬
set it.
In practical terms, every
of military victory we shall have
sphere, our nation should initiate
relaxation in the assured unity of
available
a
meetings between industry, labor,
capacity in plants,
the United Nations means corre¬
agriculture and government. The
tools,
skilled workmen,
skilled
spondingly increased armaments
opportunity for the development
supervision, pilots, ground crews
or other means of defense against
of production and prosperity
and air bases sufficient to revolu¬
is
000 of planes; two years ago
.
.
an
the
tionize
and
communication system of civiliza¬
tion.
transportation
This capacity can make sav¬
can
one
of many
mendous
noted
that
new
opportunity
be
equally immeasur¬
This industry is but
can
develop tre¬
values if it has the
to
also
It should
do so.
that
its
value lies in its longest
greatest
trips.
Its
internal value to America depends
in large part upon
success.
the
This is
its world-wide
characteristic of
opportunities of today when
a neighborhood.
all the world is
of
the
United
very
Of extreme value to
us
is the de¬
velopment of stability in the West¬
ern
Hemisphere.
In this Hemi¬
sphere, all the nations are at peace
and most of them
are
allies in the
then
the
is
first
founda¬
tion structure to be built for last¬
It is the arch of unity
ing peace?
between
exists
some
the
United
Nations.
It
We must
continue, in
form, this assurance that the
now.
United Nations will remain united
in peace as well as
can
have
this
in
war.
assurance
of
If
we
peace
the United Nations and also
among
the
assurance of their unity in re¬
sisting attacks from without, then
will have retained at least that
of
degree
military
will have been
fields
pf this
won
on
the battle¬
The form
war.
responsibility
of
tions is to make
Improved transportation and new
industrial production will increase
the prosperity of the people of
North, Central and South America
in a way that will benefit both
nations
and
the
sure
their
direct
we
our
efforts
to¬
and
point where
seek to
'
it
In
we
lose the
freedom for which we fight
reduce the very disease we
cure.
.
7 "7:
seeking world-wide stability
is
quite
do not do
as
now
that should
important that we
those many things
not
be
done
implements of
it
shall
bring forth its
in its season."
fruit
formal conclusion at this time. On
the
other
hand,
much
is
be
to
gained
by establishing a method
or
orderly procedure in dealing
even with
these questions which
will
of
United
that
Na¬
they
people
that in
as
as
in¬
war,
we
will find
far
go as
as we
immediate issues and that
can
on
the
gate is open and
cleared
moment of disorder in
with the rest.
i
way
there shall
that
so
the
be
n
proceedin
The declared inten
of the United Nations
to travel
a
and cooperation wili
strength to their conduct of
road of peace
lend
the
war
world
and confidence to all the
that
the
fruits
of
victory
this time shall be fully worth the
price paid for them.
1
'
7
Decentralization
j
i
reason
bondholders
should
insist
on
full
payment of principal and interest,
when due; otherwise the company
should
be
liquidated.
In
our
procedure would
yield to bondholders the full prin¬
cipal and accrued interest." 77 fr,
opinion; such
a
the
expresses
interest
rate
should not be reduced to
4%%, as
proposed, but that the former 6 %
rate should be restored, particu¬
larly since the company has stated
that it earned an average of
computed on a- current basis; for
the years of 1941; 1942 and 1943
that an appropriate sinking fund :
should be provided; that all ar- rears of interest should be paid at once; that the/extended maturity
date of the bonds should be 1948,
or
thereafter
soon
as
ticable '■< before
.
is
prac¬
and
that
as
1953;
bondholders should have
broad->
a
er representation on the board of
rec-i
directors; • >' • >'•
\
ft /■,.■/. •"[ ■■ ■ A* ■"
changes havd'
The
committee
further
urges
taken place even within the past
that the bonds be guaranteed by
twenty
years
emphasizing
the
ognize
that
of; the
value
.
many
decentralization
of
international
questions
among groups of nations especially
many
■
concerned
with
them.
The Pan-
American
Union, for example, is
peculiarly fitted to the needs of
the Western Hemisphere. Its
fornj
probably
would not
meet' the
needs of Central Europe.
On the
other hand, some form of asso¬
ciation among nations of Central
Europe, far closer than that, among
members
the
of
Pan-American
Union; might prove to be ol great
permanent value in separating the
internal
problems of that area
from
those
whole.
the
of
world
as
a
it is
eration would be reduced in
ber and
num¬
in
difficulty and the or¬
ganization of the United Nations
of the world
might be simplified,
Action Needed
In the House of
V
Representatives,
the point of view that I have rec¬
ommended is
expressed in general
terms
The
bright
passed by the
House last week.—Editor). In the
measure was
Senate, this point of view is ex¬
pressed in general terms by the
Vandenberg-White resolution, and
more clearly and fully in Senate
Resolution
Individual
114.
sup¬
port of action by the Senate and
these lines will be helpful.
The
development of popular interest in
troduced by
these
Hill
and
Senators Ball, Hatch,
myself advises that the
Government of
the United States
initiate meetings among represen¬
propose a
form of organization to
deal with the utiliaztion of all re¬
sources
in
the prosecution
of the
the establishment of tempo¬
rary administrations for the gov¬
ernment, relief and rehabilitation
of occupied territories; the estab¬
war;
and that need not be included
handicap
these
final
in
treaty.
Such of
questions as will directly
peace
Cor¬
Finance
the
the
of
owner
stock,
common
the bond¬
holders should receive a substan¬
tial share of the equity of the
that in
and
any -event
company/ 7 Theodore
Room
Wechsler,
Broadway, New
1010,; 71
York,- is Secretary of the Bond¬
holders'' Protective Committee.
Seih
DowneyPredicIs
Collapse Of Germany
■
i
■
Within Four Months
the problems 7 The
collapse of Germany with¬
remaining for world-wide consid¬ in four months was predicted by
several
do now those
do
Reconstruction
the
poration, which it believes to be
In this way
that should be done.
To
this end Senate Resolution 114, in¬
we
the
industrial recovery,
says
no
wait until a later date for
The
committee
their formal conclusion.' The im-.
opinion; that; the
things
that
that the cost of them in taxes will
our
by/two-third of our
not be
brought to
need
particularly by its Committee on
Foreign Relations along any of
as
dividuals, realize
unity lishment of procedures and ma¬
there is strength and promise of
chinery for peaceful settlement of
peace,
but in disunity there is disagreements
between
nations
weakness and danger of war.
and
the provision for a United
This unity is important also to Nations military force to suppress
them and us if the Western Hemi¬
sphere can have peace, stability the economic and social stability any future attempt at military ag¬
and reasonable assurance of sta¬ and development of each of the gression by any nation.
Similar
bility for many years ahead. Un¬ nations of the world, including our meetings might also deal with such
Unless each of us is freed subjects as international aviation
der such conditions private in¬ own.
from
the
burden
of
producing anc| international currency that
dustry will prosper "like a tree
great quantities of non-productive should^be acted upon immediately
planted beside a river of water
and
treaty subject to constitutional
ratification
Senate
of
is
measures
importance
now
Senator Downey
of California on
Sept. 25, who said that many of
the married men scheduled for
fall
this
induction
would
according to
Press
dispatch
combat,
see
sociated
never
an
As¬
from
Washington, that also gave other
remarks of Senator Downey as
follows:;
He
,;;.77 v/, 777 /' -7.7 7^7
/
possible exception
one
saw
—development by Adolf Hitler's
ordnance
experts of some new
anti-aircraft weapons to thwart
the Allies' aerial blasting of the
Reich.
■
•''7;/T,;7;777'v';' .7'..
7v7
•
Declaring enormous damage al¬
ready had been dealt German's
munition- works,
refineries and
synthetic rubber plants, Mr. Dow¬
ney maintained that it was a cold
mathematical fact that Berlin and
Nazi
other
cities
could
be
lev¬
eled by our bombers.
substantial
and becomes in¬
creasingly important as the issues
become more specific.
7 A. ,,-7 ;
be used in the interest of people
from whom it is derived.
One of
.,
the
stability that tatives of the United Nations to
this unity is not nearly as impor¬
tant as the fact of it.
The first
figbt against totalitarian slavery.
the committee, "there
for any concession
by bondholders, nor for the sur¬
render
of
any
of their
legal
rights. We therefore believe that
is
by the Fulbright resolution.
early passage of this by the
it rather than toward the House would be
helpful. (The Ful¬
the
to
Nations
What
we
2. In the Western Hemisphere
if
ours
restriction of individual initiative
Strength
open new resources
and markets of
able worth.
self-created
wards
United
ings in time and money of infinite
value and
and
unnecessary
risk.
^debts,"
In the field of international re-;
out of control.
Internal and Regional
their
when united, to establish
seriously affect nations whose
lations it is important also to
Nations will
ability,
United
demonstrated
have
and
tically any local explosion within
less than 60 hours and long before
secure,
will
every
nearly
out
fail¬
a
because the plan is inequitable."
\
7
"So long as the company does not assert that it cannot meet its
department portant thing is to
of
But when the last few free na¬
untary extension of the maturity date of the bonds has "been
ure
a
pendence and freedom as they at¬
tempted separately to face the as¬
tions
Corporation, due Oct. 1, 1943, as¬
advertisement that the company's campaign to obtain vol¬
an
governments are now in exile and
such of these questions as call for
of travel by air will
possible for an interna¬
tional air force to reach any out¬
break of trouble before it can gain
it
put
\-
serts in
creased speed
tragically clear when the sov¬
ereign, independent and freedomloving nations of Europe one by
one
lost their sovereignty inde¬
the "enemy.
of the Realty Associates Securities
make
means
is essential to
strength and survival of the
the
and countless other "acres of dia¬
;
to consideration
us
of the foundations for world-wide
last. depression
our
-
v
If
Foundations
.
United
/•
■
The Bondholders' Protective Committee for the 5% income bonds
The
Stability—Its
World-Wide
3.
bank,
pany,
Thursday, September 30, 1943
Senate
Resolution
most
important
uses
of sov¬
114
ereignty is in the making of treat¬
ies of mutual advantage to the
is not its serial number, its spon¬ parties to them. It is only through
the international meeting of minds
sors or its form that is important;
The important thing is the taking that the principle of "Peace on
of the steps it recommends.
The Earth and Goodwill Toward Men"
As
to
Senate
Resolution
114, it
be
important thing is that meetings
can
of
that
representatives of the United
Nations shall take place to pre¬
pare
and to submit to the United
States
Senate
United Nations
and
an
to
the
other
applied
is
on
the heroic scale
both
necessary and
possible since God has given men
now
voices to speak, ears to hear and
wings to fly around the world., By
agreement pre-r virtue of these
new
powers,
men
practical program' have, for the first time, means
that will preserve the unity of the adequate to organize the peace of
United Nations in peace.
; \ the world.
It is for us to prove
that we are deserving of these
Sovereignty
new
talents which are the evi¬
As to the sovereignty of the dence of God's increasing faith in
senting
United
some
States
of America
and of
Man.
The
have
opportunity is ours, let
the
faith
each nation of the United Nations,
us -
this sovereignty exists in order to
fathers to develop it.
of
our
fore-
Volume
158
Number 4216
THE COMMERCIAL & FINANCIAL
CHRONICLE
tial
in
point is that credit, whether
the
form
of
ment
ments
or
Guaranty Trust Company of New York announced the
points of its own basic program for international exchange
stabilization and world trade recovery
in the Sept. 28 issue of "The
Guaranty Survey," its monthly review of business and financial con¬
ditions in the United States and abroad.
This proposal is offered in
lieu of the tentative plans for the same purpose made public by the
British,
Canadian,
and
United S>
States governments, the adoption labor, when individuals or groups
of any one of which or any com¬ took it upon themselves to
spe¬
bination
of
the
undesirable, the
Company states.
"It is
;
would
same
Guaranty
Trust
1
-.
be
1
-
belief,"
our
vey," "that
says "The Sur¬
method of stabili¬
no
zation yet'devised or suggested is
so sound or so easily operated as
the
international gold standard—
free coinage of gold, free
with
markets and private
gold,
and
currencies
vertible into
tic
ownership of
freely
con¬
gold, both for domes¬
and for shipment abroad."
use
The
Guaranty Trust presents its
plan
as
follows:
There
■
is
cialize
in
disagree¬
ment as to the desirability of in¬
ternational trade,
or
as
to the
need
for
exchange stability if
and
ures
stores
is
method
of
vised
suggested is
or
belief
that
stabilization
no
de¬
yet
sound
so
or
easily
so
operated as the inter¬
national gold standard—with free
coinage of gold, free markets and
the
fact
that
immediate
an
return
make
to
the
free
gold standard by some nations im¬
possible, it
may be necessary
such nations to resort
for
temporarily
gold exchange standard,
Whereby countries with inade¬
quate gold reserves "tie" their
to
the
currencies to those based
on
gold
by using their bank balances in
gold-standard
countries
as
re¬
in lieu of actual
serves
gold hold¬
ings. Restoration of the free gold
standard, however, should be the
universal objective.
T,
or
on
desired
this or any other
must depend finally on
the adoption and general pursu¬
success of
program
ance
of
and
political
sound
internal
economic
policies—balanced
them
use
Of
the
the
values
of
other
' '
'
'
in
~"
articles used as
various
times
and
money
at
places,
the
and
ver
standards
as
many
precious
metals—sil¬
especially gold—
finally emerged as the most ac¬
ceptable.
There
are ; numerous
more
for the
reasons
superiority of gold
Its
money.
usefulness
in
the
its rarity and its
arts,
high value have,
over a period of
centuries, given it a unique
quality as a symbol of wealth
and riches, and have made it uni¬
versally desired. Because of its
high value, it is not too bulky for
many
hand-to-hand
Though com¬
it is nevertheless
use.
gold standard and, in
general,
governmental
policies
that promote business confidence
instead
of
destroying
it.
Every
individual knows that his
ises
to
prom¬
will not be accepted
by his neighbors unless he keeps
pay
ilarly,
country
no
can
expect
its
less
fiscal
affairs
control, its price level is reason¬
ably stable and its internal econ¬
omy is functioning smoothly and
productively. Internal stability is
prerequisite
a
international
to
stability.
sound governmental
directed toward this end
If
policies
are
fol¬
lowed, the gold standard can work
successfully in the future, as it
did in the past.
If such policies
not
are
followed,
international
It
coin and melt down.
is easy to
And its rela¬
tive stability of,fvalpe makes it
especially suitable as a yardstick
by
which
of
other
to
the
measure
commodities
values
and
other
:-y;
■
ing
and
testing,
practice
it
became
the
for
known and trusted
individuals—and later the sover¬
eign power—to stamp
into
metal
coin the
easily
or
convenient
units.
and
or
Finally,
metals
were
the
made
legal tender for the payment of
Other
kinds of money, of
have also been given the
legal-tender power.
In the last
analysis,
however, the value of
well as that of the
money metal itself, as a medium
of exchange rests upon the fact
that it is, or represents, a com¬
modity with all intrinsic value.
this money, as
Growth of Credit
>
Along with the development of
has gone that of banking
and
credit, which depends
on
money.
The
early
custodians
money
with
whom precious metal was
deposited by its owners issued re¬
ceipts for the amounts deposited;
large
part
receipts, instead of the
actual metal, were exchanged by
the
holders
for
commodities.
Later the
receipts were issued in
multiples of the money unit
and were made payable to the
bearer, and thus became in effect,
even
bank
notes.
of the
There
confusion
with
exists
regard to the
problem of exchange stabilization
and trade recovery is probably
due to the fact that the simple
fundamentals have been lost sight
of in the maze of complications
and
up
artificialities that has
around them.
attained
and
its
vital
Trade
present
importance
grown
has
not
complexity
suddenly,
of evo¬
but through a slow process
lution.
With the first division of
and
to
there
liquidate
Post-War
readjustment
to
a
peacetime
basis.
Stores of many consumable
commodities will have been near¬
ly
exhausted,
stances
the
and
in
of
means
in¬
many
production
and
credit, anddt should
undue strain
short-term
on
not place an
the international
on
necessity
States than to any other
country,
since the position of the dollar
will be a determining factor in
the
failure of any inter¬
post-war
stabilization
Our failure to adapt our
success or
national
plan.
trade policies to our creditor posi¬
tion was an important contribut¬
ing
of the worldwide break¬
cause
down
in
1929
and
the
fol¬
years
lowing.
The devaluation of the
dollar aggravated the maldistribu¬
tion of gold and became an obsta¬
to
international trade recov¬
The unbalanced condition of
our
national
exchanges.
It
should
be
dealt
through sufficiently longterm credit to make final
liquida¬
budget,
persisted without
the dur&tion of the
is
yet
as
be
has
for
13
period
within
after
and there
war;
that it will
no assurance
corrected
the
reasonable
a
of
restoration
Other governmental poli¬
peace.
have interfered
cies
which
break
a
will certainly continue for
years,
revival.
credit; but the task
done
This
will, in fact, be perhaps more ur¬
gent with reference to the United
and rebuilt
on
well.
as
economic
be
fidence
with
normal
reactions, impaired con¬
hampered business
and
Weaknesses
like
these
must be removed before the world
hope for the reestablishment
can
of
sound
conditions
in
interna¬
tional trade.
with
these mistakes and their unfortu¬
eign trade structure,
nate
States
well afford to contrib¬
can
I must not be
results
repeated. Although
exaggerated
are
in
the
viding
The
note-issuing
same
was
developing
over
at
the
time another form of credit
instrument, namely, the check—
an
order
by the depositor
banker—which
is
on
now
his
more
largely
used in some countries
than either hard money or
paper
And the practice adopted
by the depositaries of keeping a
money;
reserve
of metal
remainder
has
and
lending the
grown
into
the
most
important of all modern,
banking functions—that of financing trade and industry. The essen¬
long-term
credit,
partly
because it is good business to
pro¬
mote
such
rehabilitation,
partly
humanitarian considera¬
tions require it and
partly becausq
the' distribution of certain sur¬
pluses that will exist
of the
of
at
unemployment
■/..
the. second problem—
as
that of normal
the
end
problems
that may arise.
As far
the
will aid in the solution
war
the
foreign trade and
stabilization
of
international
exchanges—is concerned, the sta¬
bility of only a few currencies,
which
well
in fact international
are
as
as
national,, is of primary
importance. Those countries with
international
return
to
currencies
the
gold
should
standard—or,
porarily beneficial to the borrow¬
be sufficient in many instances to
permit the reestablishment of
an
adequate gold. base. Other coun¬
tries, which may not have suffi¬
cient claims
on
the United
States,
large gold producers. For still
others, less fortunately situated,
are
a
quick return to the gold stand¬
in
ers,
ability
to
debts.
increased
way
no
service
their
their
Sound long-term loans are
course
be
can
of
the
loans.
It
is
to
be
hoped
that
our
experience in the past,
together with helpful cooperation
from
the
other
the
State
Department
Government
recognition
and
agencies
however,
even
under
on
,
long-term credit.
International
carried
trade
must
be
through the medium
of credit, but credit can be ex¬
on
tended
pnly where creditors
are
assured
of
ultimate
repayment.
This repayment must be made not
merely in such commodities
debtor
in
wishes
goods
to
that
dispose
as
most
favorable
conditions, will
probably be slow and difficult. It
cannot
be
by
easy
the
for
loans
can
permanently achieved
expedient of loans,
be
have
to
be
repaid.
It
accomplished only by the
repatriation
of
foreign
capital
of
but
find
can
final
the
credit
with
the
world
worldwide
the
structure
failure
of
that
the
of
began
Austrian
German
moratorium
and
departure of Great Britain
the
will
bal¬
re¬
quire time, steadfast purpose and
intelligent
cooperation
by
this
country as well as by those en¬
deavoring to accumulate gold. If
never
for
to
a
any other; and it is
only standard upon which
private and governmental credit
can
permanently exist, witn xne
possible
exception
of
credit
granted on very short term. The
basic
underlying
the
monetary and credit sys¬
a commodity with an
intrinsic
value,
and
time' has
shown that gold is preeminently
the
commodity best suited
to
the
failure
of
was
of
the
the
com¬
unwill¬
debtor
coun¬
tries
left
balances
to
be
paid,
these would be settled not in gold
or
tor
in the currencies of the
countries
but
in
credi¬
"blocked"
adapt¬
balances of debtor currencies that
ed to the realities of the situation
could not be disposed of or made
available for the use of creditors.
We
necessities by establishing stabili¬
zation funds and clearing unions
nium.
is
in the
a
natural one,
but such schemes
money
world's
tem must be
serve
as
world.
in
money
the
modern
;
.
*
As for credit, the world cannot
be rebuilt, on short-term credit
•
alone.
on
It cannot safely be rebuilt
government credit, which i's too
likely to be political and uneco¬
nomic.
Credit
eventual
liquidate
the
debt
demonstrated
the
of
must
rest
to
lender;
reasonable
in
the
and
but
the
money, as
satisfaction
there
of the
measure
point to which credit
The
thb
on
ability of the debtor to
no
be
can
ex-*
base.
money
straightest,
is
safety*
quickest
and
safest path to exchange stabiliza¬
tion
and
those
trade
are
character
and
world
of
at
least,
an
international
of
foreign
which the
the financing
trade
to
currencies
standard
reestablish
the
on
promptly
as
whose
upon
depends for
their
is ,i for
recovery
countries,
currencies
gold
possible.
as
Exchange ^
Weekly Firm Changes
The New York Stock Exchange
do
not
The
expect
credit
the millen¬
system
break down in the future
as
announced
.
the
following
weekly firm changes:
;
Transfer of the Exchange mem¬
bership of Christopher K. Coates
William
to
V.
considered
Stockdale
Harold
pointed
Mayer has been
C.
ap¬
of the Board
member
of Arbitration to fill the
caused
vacancy
by the retirement of Jacob
Stone.
C.
may
it has
past, but if the morality of
be
are
on
a
will
Both
Sept. 30.
partners in Beer & Co.
.
Proposed transfer of the Ex¬
change membership of Earl E; T.
Smith to
Andrew
be
considered
on
Oct.
tinue
7.
as
S.
by
Mr.
will
Exchange
in
partner
a
Lockie
the
Lockie will
corn
Spear
&
Leeds.
Transfer of the Exchange mem¬
bership
of Sylvan E. Weil-'to
Harry A. Silvey will be consid¬
ered
on
that
Mr.
Oct.
7.
It
Silvey
is
understood
will
act
as
individual floor broker.
late
C.
Hyland
ered
Oct. 7.
on
continue
Ash &
as
a
an
^
Transfer of the membership
the
bf
Jonesto
consid¬
Mr. Melniker will'
partner in Mervin
Co.
J. Denison
Sawyer, a partner, in
Dillon & Co., died on
7
Sept. 18.
blow from which it
revive
transactions
it is to succeed, both international
than they were after the last war.
desire to escape from these
more
tions, than
from
fully recovered. Among the
reasons
trade policies and internal politi¬
cal policies must be better
The
is
the
The firm of T.
Co.
dissolved
Sloan
as
Sloan
of
Young &
Sept. 20.. T.,
oh active
duty with the U. S. Navy was heported lost at sea.
ingness to extend private credit,
due to the knowledge on the
part
of potential lenders
that, if the
trade
-.v.:-'1,
v
,
standard
easily managed and less compli¬
cated, and requires fewer restric¬
gold standard, dealt interna¬
tional trade
by
program
1
■
metallic
Eastman,
and
a
■
The
the
merce
merchandise
gold
interna¬
system can offer
substitute for this basic require¬
a
Creditanstalt in 1931, followed by
he
invested in the United States
Such
the
other
any
Jerome Melniker will be
over.
breakdown
now
ances.
Neither
nor
financial
ment.
the
foreign
markets in free competition with
other goods, either in the creditor
country or elsewhere—or, in the
The
the
as
private
any
respected and to restore
credit.
tional
and
the part of the
borrowers themselves
that only
this type of loan is desirable, will
prevent another era of misguided
of time.
The process of gold redistribu¬
tion,
and
has
increasing the amount of foreign
exchange available for the service
commodities
in
sacrifices
by
debtor who wishes to remain hon¬
est
ing countries,
thus
stimulating
exports, diminishing imports and
jective
followed, gold
such
made
N. Y. Stock
that help expand the pro¬
ductive capacities of the borrow¬
reckoning, by the shipment
of hard money,
the commodity
that can be exchanged for other
are
make
be
external
ard may be
impracticable; but, if
sound policies aimed at this ob¬
accumulated
to
those
where
gold reserves are insuffi¬
cient, to the gold exchange stand¬
ard.
Foreign claims on United
States gold stocks, if used for the
purpose of obtaining metal, would
which, while tem¬
re¬
Much
will
depend
on
political courage and the willing¬
tended
long-term credit after World War
will
interrup¬
tions.
The mistakes made in extending
tion possible without
unnecessary
interference with the normal for¬
The United
only temporary
standard
transportation will have been
destroyed or badly impaired. In
large part, these must be replaced
cannot
in
creditors
ery.
Problems
the world will be
war
sult
his
cle
Two
After the
,
and these
largely by governments and gov¬
ernment-sponsored banks.
A
down
gold
outstanding obligations.
To avoid the necessity of weigh¬
function has since been taken
that
breaks
enough
■
credit, these breakdowns
economic conditions and practices
applies not only to debtors but to
because
indestructible.
under any conceivable system.
The Simple Fundamentals
not
debtor is high and a real ef¬
is made to
reestablish' his
must
national
most
sufficient
trade and finance will break down
1
structure
sound
social purposes
to
under
are
overex-
for
ute with other nations toward the
in
to
his financial affairs in order. Sim¬
have its currency acceptable at a
stable value in world markets un¬
been
need
rehabilitation of the world by pro¬
rare,
available
course,
of the
has
a
the
fort
ness
The
quantities
serve as a general medium of
exchange. It is easily recogniza¬
ble, uniform in quality and al¬
paratively
debts.
tion
base and is sensitive to any event
that shakes the confidence of the
credit
economic
requirements. Resump¬
Obligations of Creditors
of
comparatively small hard-money
panded to
from
escape
■
ing currency stabilization.
the
on
value
the money metal.
In the most advanced countries
the credit structure is built on a
because
no
and
tion of the gold
standard, difficult
as it
may be, holds out the only
reasonable hope of sound and last¬
popular mind, it is true that
too many loans were made for
reactions
opera¬
turn
of
to
tions that interfere with the price
the
in
and
recognizable
money metal
to
rests
usefulness and
faced with two distinct and
sepa¬
rate problems.
One will be that
budgets, reasonable tariffs and
trade
regulations, avoidance of
central bank and Treasury opera¬
essential
seen,
de¬
to
offer
facts
has just
as
gradually became customary to
accept them in payment of debts
kinds of money.
V. The
been
intrinsic
and
,
Need for Sound Public Policies
money—which,
commodities
some
it
industrial
war
ability of the credit-taker
liver
convenient for the purpose that
so
as
If the abnormal conditions that
must
no
universally
so
private
exist at the close of the
ultimate
is
upon
currencies
ownership of gold, and
freely convertible into
gold, both for domestic use and
for shipment abroad.
value
legal sanction
formal agreement but merely
all-important prob¬
our
the
rested
commodities.
It
in
point where for some
reason, political or economic, the
possibilities. How to achieve sta¬
lem.
outright loans, depends
developed rather quickly.
The* early use of such commodity
money or "hard" money probably
measuring
the
of
have
stich trade is to reach its greatest
bility is
cer¬
instru¬
articles, trade became neces¬ community. It has become fash¬
and, although barter was ionable to
speak of "the failure
(and still is) practiced to some of the
gold standard" when the
extent, the use of certain gener¬ real failure has been that of
the
ally ,! acceptable commodities as credit
structure, either because of
media of exchange and as meas¬
unsound governmental policies or
were
serious
production of
govern¬
sary;
,
no
the
tain
or
confidence
on
salient
bank
negotiable
notes,
1313
Young, who
was
Frank H. Davis Dies
Frank H.
Davis, partner in Riter
Co., 40 Wall Street, New York
City, died at his home at the age
of 65. During the first World War
&
he
was
League,
financial
a
the
for
Civil
recruiting aollar-a-year
government
service.
the
war
ciated with
1933
worker
Reform
Tor
men
After
of
field
Service
he
became
asso¬
Dillon, Read & CoMn
he helped in the organization
Riter
&
Co.
Thursday, September 30, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
1314
well
Economic
Policy Commission Sees
WORLD TRADE
Meed For Stabiiization machinery
countries
creditor
few
a
and many debtor
countries.
of such an insti¬
tution
will
depend not on the
extent of its legal powers, but on
..The
success
the support
tries.
It
given it by key coun¬
not
was
lack
much
so
of power
that crippled the League
Nations, but lack of support.
of
The British Commonwealth of
has
tions
Na¬
constitution and no
no
legal powers. It is tied together
by enlightened loyalty. Implica¬
tions
of compulsion and broad
sponsibility.
presence of
mechanism
function
trade barriers
rrt
X
conditions
1926=100
an
to encourage
ports
OF TRADE
of
A.
useful,
lender of
be
STERLING >
40
~
VALUE"
'I
»
OF TRADE
fully veiled they may be, are not
suitably unifying factors in inter¬
national monetary matters.
Free
collaboration based on mutual ad¬
ing inflationary influences. If our
fiscal policies in time of peace
continue to rest on the principle
0
vantages and built up by persua¬
maintain
relationships
promising ap¬
friendly
and
sion
most
the
tion of oil and certain other min¬
Credits granted by such
Fourth.
agency
should be extended in
standards,
the merits of the indi¬
accordance with proven
based
on
vidual
should
They
tempo¬
be
in nature and made at a fair
of
interest.
A system
of
rary
quotas or shares in a pool which
gives debtor countries the impres¬
sion that they have a right to
amount is un¬
sound
in
principle, and raises
hopes that cannot be realized.
Such a system would encourage
the impression that credits re¬
ceived may not have to be liqui¬
credits up to some
,
dated, and would invite abuses of
the; facilities.
Any formula which
attempts to determine in advance
the credit needs and credit worth¬
each
of
iness
ticable. "%■
It
is
country is imprac¬
' ' -v
;
be
to
.
hoped that general
public discussion of the two plans
1926 '27
all efforts to
I
'28
'30
'29
latter
I
'31
I
I.
*
SOURCE: League of Nations, German Yearbook
by
clear cut
a
The
United
stantial
had
States
share
in
trade
this
order, since the value of
value.
were
'
often
is
the
■
Lower Trade
5.
It
i
States
United
realize
to
is
us
less
of the
10%
than
But over¬
misleading as to
country's total output.
all
figures
are
to cer¬
the influence with respect
tain commodities in certain areas.
Southern
States have often made the dif¬
ference between prosperity and
depression in those states.
For
Cotton
from
exports
industries
sewing
certain
manufacturing
such
office appliances,
as
machines, and agricultural imple¬
ments, foreign markets have like¬
important outlets.
wise furnished
Imports, on the other hand, sup¬
plied us with many necessities as
well as luxuries. In some cases—
greatly,
For
dis¬
illustrations
are
tion, and
place which
"The
of which
cies of the United States.
moted
the
complex
trade
the
like
States
We
s
of
of
of trade disorders.
changes which re¬
sult from swings of the business
cycle, such as those of 1932. These
of
Principal
United
Commodities
States in
millions
(In
concluding
the
to
wise
seems
fact
that
institution
no
well
how
matter
this section it
emphasize again
designed
can
illusion
too
miracles—an
work
no
cherished.
often
Basically stable
is possible only with stable
money
national economies.
Towards this
goal the United States must lead
the
way.
any
genuine progress towards sta¬
The first requisite for
is
bilization
of
all
dollar
stable
a
exchange
high protective duties.
In these
specific ways we feel changes in
trade and trade barriers.
free
restrictions,
But
for
much larger role.
a
indicates
table
ined
Imported
of
lation
Regardless
of
set
strong cur¬
rency must in fact be the main
steadying influence. So far as can
now
the
foreseen
be
foundation
must be the dollar,
second step should be
i
The
definite
to
between
rates
Per Cent
Silk,
Relation
of
.of
Exports to Total Production
Countries
Different
millions of dollars)
(In
Per
Produc
Exports Cent
6.9
3,190
20.1
2,380
tion
1
United
States—
45,630
2
Great Britain-
11,800
1,040
38.5
520
230
44.2
1,380
505
36.5
1.740
2,700
Canada
3
4
New Zealand-
5
Argentina
427
114
137
33
97
163
94
22
84
103
52
50
95
22
77
92
16
83
.87
6
93
pulp & pulp woods
Burlap and jute
Tin
Wool,
raw
Oilseeds
tures
47
palm oil.
most
riers
7,700
4,750
is
75,0
one
14
790
110
conducted for the past cen¬
Hungary
15
France
9,000
940
10.4
This step involves the whole
16
Denmark
1,100
330
30.0
the
on
one
position
on
basis.
sound
a
We
must assist in the solution of this
of
13.9
'
limitation
these
sources.
countries
largely dependent on the ex¬
port of a few commodities: Ar¬
gentina on grains and meat prod¬
and
in
Brazil, Belgium and Luxembourg,
Haiti, Sweden, Colombia, Canada,
Honduras, the Netherlands, Switz¬
erland,
Nicaragua,*
Guatemala,
France, Finland, Costa Rica, El
It
which
side may be
a
high
grew
apace
new
was
in
a
order
of
About 65%
ried
of
directly with this question rather
merging and partly conceal¬
ing it in a general international
plan.
the
Once
and
values
of
the
dollar
the
pound are determined
otherswill follow, for certain cur¬
rencies
to
are
now
dollar
the
stable in relation
the
pound, and
other
countries could gradually
make the necessary adjustments.
Where
or
financial
aid
is
needed it
should be granted only after due
consideration of the merits in each
individual
must
of
case.
necessity
Each
work
country
out
its
monetary salvation largely by its
own
efforts.
It cannot shift re¬
on
changes
and
imported goods.
can
war—they
Certainly
the
be
causes
are so
one
These
of peace
vital.
of the
vicious
circle
to
point of view for freeing trade
from these shackles has been ef¬
with
of the total foreign
countries
the
with
reciprocal trade agreements
:■
has thus
mechanism
been
thoroughly tried. No revolution¬
ary changes in this country's tar¬
iffs have been produced, but in
important respects the in¬
many
.
terchange
of
commodities
countries .has
other
with
been. made
easier, and—perhaps more impor¬
trend towards
tant still—the long
and higher
more
stopped."
tariffs has been
^
dealing with tariffs one point
remember
is that particular
In
to
can
on
The
others.
The argument from the Ameri¬
fectively stated by Secretary Hull:
disordered internal
of
condition
of many countries in the '30s was
the
disorder
of
world
trade, re¬
flected in the accompanying
gram:
of
production cannot prosper
unless they have adequate foreign
markets for their surplus output.
our
them
Deprive
causes
dia¬
where
In
cycle.
coun-;
single export is
a
and
their
who feel themselves pen¬
articulate than the
consumers
who reap the broad
benefits of tariff easements, or
groups
alized
are more
clines.
of such markets,
purchasing
power
of every opportunity to
use
effects of such variations
vere.
-
se-.
are
It is difficult for any coun¬
try to adjust itself to such blows,>
especially when the prices fall as;
diminishes, and
credit becomes less freely avail¬
volume of export
able.
\
t
The trade
or
business cycle is a
long-familiar
phenomenon.
swings have recently been
in
the United
more,
States than
and
countries
other
most
Its
,
.
experience of the two
which elapsed between
the end of the World War and the
.
in;
lems
both
for
domestic
and
for-;
eign policy. The point to be made
here is simply that huge swing's
of
the
cycle, with their great
booms and great
as
of
depressions, are;
damaging to the maintenance
sound
a
trade
they
as
are
of
world;
to any domestic
When aggravated they.'
of the obstacles which;
economy.
become
structure
one
the world.
progress
all.
For where there
is great measure of
unemployment;
and uncertainty, countries are farmore
likely to shirk political obli-/
gations—no matter how wise and
essential—and
to
be
shortsighted;
and indifferent in their economic
dealings with other countries. On
the other hand, if men and women"
find
it
relatively easy
relatively
work and feel
to
have:
in;
secure
their employment, it
is easier to;
negotiate the necessary interna-;
tional political arrangements and,
bring
countries
together in
a,
many-sided cooperative economic;
effort.
/)■
Although
these
trade
cycle
swings may lie so deep in the:
vagaries of human
psychology,
that they can never be eradicated,
it
should
not
genuity to
be
beyond
our
in-*
temper their destruc-
tiveness.
7.
Making Credit and Capital
Available
Enterprise is held back in many;
parts of the worltf by lack of
funds.
The record makes it clear
that improvement in the standard
of
living has taken place where*,
and when
capital, in the "form of
machinery and equipment, multi-.
reduction in impedi¬ plies the fruits of man's labors.!
to trade.
These impedi¬ But—and here is the great ques¬
may of course exist in the tion
mark—capital to be produc-.
of monopolies and other tive must be wisely used, and
negotiate
ments
ments
form
agreements as
reciprocal duty concessions and
certain
provisions
of this agreement
ceased to be effective March 10, 1938.
*
.
"The
decades
the
and with it the whole private regulatory
purchasing power
de¬
shrinks,
nation's
a
large part of their livelihood the;
over
v
Cuba on sugar, Chile on
>"There is a direct and unmis¬
even than the producer who gains
and nitrates, New Zealand takable connection between busi¬
through the relaxation of trade
on wool and dairy products. Fluc¬
ness
activity and the volume of barriers abroad.
tuations in these exports or in exports. Our Cotton Belt, our To¬
Apart from the Hull reciprocal
their prices may spell the differ¬ bacco Belt, our Wheat Belt, our trade agreement policy there is no
corn-hog industry, our fruit and outstanding single movement here
ence
between
distress or pros¬
vegetable growers, our lumber or abroad towards freer trade. It
perity. Similarly many countries producers, our machine manufac¬
is rather
a
matter of constant
rely largely for their standard/of turers and many other branches
study, of constant alertness, and
living
business
the
tries
copper
than
States of certain:
materials at different periods'
Peru, impede enterprise and
have been concluded.
currency
ucts,
ably wiser to grapple frankly and
Cuba,
: key .Venezuela,
safeguard
its own production each country
sought protection from the goods
are
very
problem if currency stability is to
be achieved promptly. It is prob¬
.
period
Each
others.
in
worst
imposing
36.0
Some
69
duty. The number of devices
wars.
Compiled from various official
665
between the two
restriction by
country led to new action by
19.1
23.5
of
fluctuations
the
in
7.8
910
480
-A "
agree¬
are:
Salvador, Czechoslovakia,** Ecu¬
ador, the United Kingdom of Great
Britain and Northern Ireland, Tur¬
57
arbitrary of these trade bar¬
trade
600
810
One
values which
Japan
2,040
problem of the reestablishment of
the British monetary and trade
97
2,115
—_
the equivalent of
India '
2,250
tury.
70
1
signed,
which
9
Malaya
been
14
were
straints.
10
Belgium
has
order in which the
trade of the United States is car¬
for
Sweden
trade
no
undue hardships.
'
tariff
13
the United
into
swings bring depressions like 1921;
and 1932 they become major prob-,
is
20.0 V:'
12
world
V
\,
21
35
and
or
Argentina,
Source: Statistical Abstract of the U. S. Uruguay, Mexico, and Iran,
50.7
11
of
80
59
.V'
Nitrate
34.0
the dollar and the pound sterling
part
16
20
49
_
Cocoanut
160
—the two currencies in which the
major
79
Flax, hemp & manufac-
160
240
by
previous section figures;
general more severe since World
War I than before.
When such,
ments
49
..
beans
Cocoa
350
320
detail
the
given showing the wide va¬
riation in the volume of imports:
in
in the
42
137
skins
and
Wood
470
_■
ne¬
the
of
were
severe
73%
Hides
316
„
mechanism tariff
and
studies
The United States has concluded
54
crude
Paper and manufactures.
Chile
Ly1
the
barriers, in the form
trade agreements.
considerable
in
such
agreements
with
twenty-seven
foreign countries. These countries,
86
—209
Sugar
Cuba
Brazil
this
injustices
55
241
__
Rubber,
8
6
pro¬
legal
restrictions of tariffs,
quotas, and clearing arrangements
or
other
prohibitions
and
re¬
■
figures)
(Based on 1937-38-39
has also
by. which
1932 Decline
302
raw_.
Coflee
7
currency
establish
total
to
V In
Congress with a view to satisfy¬
1932
dollars)
1929
-
.
Total
the
some
up,
trade
export
conducting
assisting in negotiations would be
found feasible and helpfuL
1
i
'
tries:
a
standards adopted, or the organi¬
zation
The following
the estimated re¬
for
ing itself that there have been
1929 and
production of a number of coun¬
dollar in which the world has full
confidence,,
if not for most
fills
many
other countries foreign trade
of
Hull
means
usually mean steadily rising tar¬
iffs, but the administration of the
The other Act has been periodically exam¬
will be discussed later.
Into The
economic
gotiations are removed one step
from the political bargains which
One
is cyclical—the
Value
solid
reciprocal
Under
distinguish two kinds
may
causes
a
indispensable part
mutually
trade among the na¬
ficult trade
freeing of trade and there-*
increasing its volume can be
greatly aided by consistent effort
by men of good will. It is possible
that
international
organizations*
by
raw
a
types of trade between
a peaceful
6. Reducing
the Swings
only when there ■■■&:
r'- Trade Cycle
active and
Secretary
;
.
a
country- may play its part in a
gradual reduction of the most dif¬
lumbers
structive giant,
only in
tions."
well-meaning but often de¬
a
United
na¬
an
is
beneficial
Through
of world
structure
it
foundation,
prosperity and
in peace between nations.
They
exemplify also what may be the
effect of trade changes and poli¬
from
example, certain specialties
Japan—imports have spelled
to
conform
with the
trouble for a limited number of
The
American
principles or will result in some manufacturers.
alternative procedure for attain¬ consumer pays a higher price for
ing the results so desirable for all. a number of articles because of
for
and
The
is that
second
exists
broad flow of trade
a
prosperity
world is possible
the
our
nation,- can enjoy
which is at peace.
world
take in world
can
in
new war
every
sustained
our
of
a
will-
there
other shifts in the chan¬
markets.
The first of these is that
the next
changes
as
these
us
For the exporting
they were often dis¬
■'". V;
.v ' ';' '
These
for
cations
In
nels
^
Europe,
has brought out in sharp relief the
validity of two basic propositions.
our pur¬
fractional in relation to
astrous.
the
meaning of foreign trade for the
as a whole.
Export trade
for
fell
countries
citizens of
world
will lead to fundamental modifi¬
in order
foregoing
J*
*-.•
'37 1938
'36
'35
iA*.
outbreak of
total business.
Barriers
hard for
chases
table shows.
sub¬
a
•
of the proposals
'34
and
categories,
be many
'33
'32
monetary
policy making the dollar redeem¬
able in gold, in foreign trade, with
no
deviation
from
the present
and conditioned on
commitments by the
debtor.
rate
enhanced
imports in these
lead to increased
stability will inevitably fail. Con¬
fidence
in the dollar would be
case,
adequate
eral resources in this country may
>
further
proach.
an
put
international
production
in
changes
greatly affect the picture. For
example, the United States may
import less rubber and silk after
the war, but a threatened exhaus-*
20
offers
export products can be found.'
will
out making determined efforts to
of deficit financing,
somewhere
can
for the products of
countries.
It may be
War-time
Furthermore, it should again be
emphasized that the United States
cannot successfully promote inter¬
national monetary stability with¬
r -
sound balance
a
up
such
some
im¬
supplies
and so be
It may be that ad¬
markets
opened
new
put into effect.
some
<
their
their
exchange,
payments.
ditional
money
only properly begin when a
sound economic program has been
can
which
restrict
conserve-
foreign
of
its own affairs in order by
balancing its budget and check¬
controls, regardless of how care¬
to
shall encounter
under
must
down
break
to
we
able to maintain
consul¬
but its
be
a
-VOLUME-
this process the
institution as a
In
as
effort
the
countries
would
tation
In
140
(Continued from page 1302)
recent
in the field of government
as
controls'.''
The
**The
operation of this
Knsnpnded
Anril
22.
1939.'
agreement was
investment
as
well
as
calls
an
for
an
investor
opportunity for in-.
vestment
The hasty answer that many are
making
today—"let
the
govern-
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
it"—needs consideration
do
merit
Number 4216
158
foreign investment and to control
The conclusions reached
the
and analysis. There is grave doubt
whether
the
American
people
men
flow, giving preference to real
investment
loans."
over
the
must
also
chiefs
of
be
By these
discussed
state
by
All
after this war,;' saddled with a
A
significant development of selves, just as Mr. Roosevelt and
huge debt, will be ready to, ap-. recent months in a flow of private Mr, Churchill have discussed mil¬
prove government lending of large capital from this country to Mex¬ itary plans. Some discussions have
sums
of money in various parts
ico and to other Latin American already
begun in the areas of re¬
oi the.world to improve backward
countries where the political at¬ lief, of
agriculture, of money. This
areas.
A
is sound procedure. ;
•;
/;v!
mosphere of late has been more
A/AAA AA <
Thus we should examine also
favorable.
Capital is by nature
Second, there must be estab¬
the private resources available for adventurous and will wander far
lished organizations engaged con¬
such use.
Despite all the uncer¬ if given promising opportunities.
tinuously in analyzing these dif¬
tainties
A.
which
for
and
.
reaching
wars a
the
period
substantial amount of
very
trade has been financed privately.
British and American banks have
been
prepared
finance
to
term credit has been
where
the
buyer
nearby future huge foreign loans
losses
well
as
"how to."
freely avail¬
assurance
of
and
well
as
as
as
be
if
v.v,
/-AAa/Aa^A-/
be
Another kind of funds-has also
in
fair
amounts.
American and other business
cerns,
con¬
during
this difficult
have
put
substantial
of capital into foreign
even
period,
amounts
countries
where
the
opportunity
was
promising and where they
stay-with their undertak¬
ings and see that the capital was
could
productively
used.
If
the
steps
outlined previously in this report
are taken more funds of this soft
AAA.
will be available/
There
dangers that attend
are
the flow of business funds abroad
arise
that
from
litical reactions.
deep-seated
A
po¬
powerful for¬
eign interest in any country is a
natural target for the politician
who
finds
popular response to
that the foreign corpor
the cry
ration is
a
exploiting the country.
The
consequences
are
discrim¬
inatory taxes and regulations and
restrictions
to who
as
be
can
em¬
ployed and how, how much profits
Can be exported, etc., etc.
Occa¬
sionally the political feeling goes
to the point of expropriation as
in the case of the oil companies
in
Mexico.
Such
does
treatment
not encourage
On
the
have
favors
foreign investment.
side, corporations
times, obtained
special
other
at
and
privileged status
which in the long run: is bound
to arouse hostility.
a
.
V
The
of
net
it
is
that
much
a
larger flow of American, British
and other capital will go to all
parts of the world if conditions
are
A made
business
be
can
attractive.
American
the
economy
are
minimum
assurances
Recent movements
Exchange
that not all venture
disappeared.
a
money
;
favoring
.
will
money
foreign se¬
not impossible
some
given.
Given
:
world
the New York Stock
on
,
the
even
can
But
issues
curity
has
promptly and in'ample
available
Europe
to the general
as
the
to the way
used.
available
been
for
America'
both
condition
genuine trade
of the goods
show
A
Latin
'20s
floated im-New York and London.
This kind of short-term
,
the
There will have to be much better
private credit will continue to be
amounts/
of
essen¬
to"
not
for
and
profits, and have
as
"how
those
like
could pay when the goods reached
his hands. The banks have made
learned
that in any
mean
Such short-
tial trade movements.
able for the needs of
This does not
between
atmosphere,
private capital will be ready to do
much of the work which needs to
be done.
We should not, however,
of government
use
will
credit.
in
situations
be
There
some
coun¬
tries where the conditions cannot
be
made
wholly
private capital
favorablev for
where funds
and
reconstruction
for
tion
badly needed and likely
used wisely.
Then some
are
be
to
construc¬
or
form of government
desirable
political
may
be
economic1 and
One pattern for
might be the loans
reasons.
loans
such
jointly
both
for
credit
guaranteed
under'
the
League of Nations after the last
war.
The experience of the Ex¬
port-Import Bank illustrates an¬
other method of meeting this sit¬
That
uation.
has
Bank
the
commitments/ since
.
made
start
of
With the Tide
Lest
.
be
we
discouraged by the
an
method,
ownership
important share of the
capital is raised locally.
v /
The -problem is not so much
supplying a new mechanism as
removing obstacles which hold
back foreign investment.
"It is
often argued," states a report on
the Transition from War to Peace
,,
.
Economy, recently
k
will.be\ignored. To
quent effects
pump
by
capital into stricken areas
most perfect., pumping
the
benefit no
one
in the
long run if the strain
im¬
posed
by the
mechanisms
will
reverse
in¬
lend¬
terest
payments exceed new
ing, leads to a breakdown similar
to that of 1929.
It is far wiser
to open every
possible channel of
the
of
and
years' opera¬
League of Nations,
the
World
Court.
banks have been
cies
for
Central
important
agen¬
collabora¬
international
tion, both directly and through the
Bank
for
ments
over
are
International
which
has
Settle¬
accumulated
12 years of experience. There
other organizations like the
International
Chamber
of
Com¬
merce, the International
of Agriculture, and the
tional
Labor
tangible
given encouragement and
reasonable freedom to operate, of
bringing about' the
which
not
Office.
All
achievements
their credit.
to
:
we
the
tating
,.
A/- : A:. A
The world demonstrated in the
century of comparative peace be¬
tween
what
Waterloo
are
been
have
to inter-American
loans have been for
ing projects.
related
trade, and most
self-liquidat¬
In most cases pri¬
*
vate funds have been used under
the '
of
the
ExportImport Bank and available bank¬
ing facilities have been utilized.
guaranty
Its loans have been made on the
whole sparingly and carefully and
with- every
effort to strike a
Utilized in this
modest amounts of govern¬
proper
way
bargain.
credit
ment
may
be
valuable
a
ernment-loans
are
gov¬
private loans
they should be good loans, with
reasonable promise of repayment;
or
and not too much.
ditions
of
'
are
private
fulfilled-
credit
available.
If these
a
will
There is
con¬
good : deal
be found
no
mak¬
use
ing bad loans; such loans benefit
no
one.v::':;
V-'-'
>;A
-
the United Nations,
all nations, there
representing
and
should
of
day
some
into
come
Europe and
It
,
.,.
a
would
being a Council
Council of Asia.
therefore
seem
to
me at any rate
worthy of patient
study that side by side with the
great powers there should be a
number of groupings of states or
confederations which would ex¬
start but
continuous
and
fective support for a long
We can agree on some
tions.
First, these
problems must be
business.
ef¬
period.
sugges¬
men
meet
from
them.
of
mankind
world
can
my earnest hope, though
hardly expect to see it ful¬
filled in my
lifetime, that we shall
achieve the largest common meas¬
ure
of
the
integrated
life
of
Europe that is possible without
destroying the individual charac¬
teristics and traditions of its many
ancient and historic races."
of
such
different nations must
together and discuss them.
armament
compe¬
tition.
4.
Monetary Stability—Collabo¬
ration between nations to restore
currency stability, so that ,trade
and enterprise can count
upon the
value of the money they use,
5. Lower Trade Barriers—With
all
nations
pendent
some
extent
de¬
foreign trade and
nations largely so, efforts
many
to
to
upon
broaden
merce
international
com¬
are
necessarily part of any
for revival of internal
program
economies.
6.
Reducing the Swings of the
Cycle—Because of the
damaging effects of alternating
booms
during this
the
western
period, is not
America,
After Europe and
.
set
in
motion by
the war, the
speeding of commu¬
nications, ;;; the opening of new
areas
to transportation, the de¬
velopment of new contacts,, other
countries little changed in eco¬
nomic
Ages
status
since
the
like
the
Middle
United
its
on,
and
accelerated by
pace
of
scientific
Some
new
discqvery
and processes
for destructive pur¬
betterment
time
of
AA■■A A;/:';,
peace., y y, :■
the
Thus
in
is
current
The
natural
Our
task
and
set
impulse
is
the
A
the
pent-up
gates
forces
of
enterprise, the restless urge of
the people for a better life.
i
'
government
amounts
and
Summary
/A/AA /AAA:'-. b/A 'A.
For
carrying out the program
no
single simple formula cari be
laid down, nor will
any compli¬
elaborate
scheme
With sentiment of the American
overwhelmingly for the
principle of collaboration with
suffice.
problem is primarily one of
understanding and of acceptance
of the need for
agreement among
many peoples; of moving forward
and
whenever
oppor¬
tunity offers, of tempering ideal¬
ism with realism, and of
adapting
plans and organizations to the
practical difficulties.
The
world
of political
learned
in
the
rise
democracy and the de¬
velopment of the free enterprise'
system
the
what
natural
be
can
done
when
energies of mankind
unchained.
are
achievements
Great
have
these
as
been,
still
greater opportunities lie ahead.
The boundaries of human inven¬
tiveness and aspirations for prog¬
ress
are
is
task
yet unchartered.
as
to
call
energies that
people
credit
with expectation of
/A/A";
repayment.
us,
forward.
unlock
to
free
with
is
of
use
necessary; but interna-:
tional credits should be made for
sound
in
reasonable
purposes,
methods
they will be available for
poses,
Capital
reasonable
be
may
technological advance. Though
now
and
a
international short-term financing
and long-term investment needed.
wherever
States
the industrial revolution marches
miracles
Credit
Given
—
degree of security, private capital
is ready to supply much of the
cated
catching the contagion.
in
highly
industrialized
countries
Making
The
are
Even
7.
Available
ductive
the
in
forth
have
the
Our
those
anew
been
so
pro¬
United States
past.
Success
requires
program
that
assume
in
the
its full share
dealing with post¬ of leadership with other great
problems, we need to be powers in creating the conditions
making plans now for putting this that will bring about the desired
pear the two essential principles
A. "/
'AA/AA ■. ■
The coming results.
of adaptation of international or¬ principle into effect.
The following are the members
of peace must not find us unpre¬
ganizations to each purpose and
the
ABA
Economic
pared.
Bankers, A in particular, of
Policy
the corresponding principle of re¬
A
have responsibility for studying Commission:
;
specting the rights, traditions, and
W.
these
Randolph
problems
and
Burgess,
Viceequipping
nationalism of the
participating themselves for
leadership in their Chairman of Board of National
states.
communities in support of wise City
Bank, A' New /York, ■ N:; t>Y.,
Such discussions
In
-
these
ap¬
suggest the de¬
too ambi¬
sirability of avoiding
grams,
but of moving forward
wherever and whenever oppor¬
tunity serves, of adapting organi¬
zations to all the very human dif¬
ficulties
which such
enterprises
will encounter.
be
The solutions
absolute
can
and
global.
"commission"
and
words
are
better
descriptions
of the nature of organization than
the word "authority."
The nature of the problem was
discussed recently
other nations in
war/
quotations there
tious and too comprehensive
pro¬
by Sir Norman
policies,
be
adopted—reminds
that
us
our
test
of a
'good' plan must not be
merely that which would be best
for
the
welfare
of
mankind
if
only nations had the political wis¬
dom to accept it and to work it.
It is well to remember the remark
of Henri IV of
France, who, when
a
certain
blueprint
for
peace was submitted to
is
perfect, without
kind
so
far
as
world
him, said,
a
I
blemish
can
see,
except perhaps one—namely, that
no
earthly prince
would
ever
agree to it.' Democracies are just
->s
difficult to persuade
and,
unhappily, just
as
as
too
-
-
Ayres, Vice-Presi¬
dent Cleveland Trust Co., Cleve¬
land, Ohio, Vice-Chairman.
r
Winthrop W. Aldrich, Chairman
tion
of
or
execution.
Real
must be founded upon
progress
the
regen¬
erative efforts of individual initi¬
ative and enterprise. These efforts
can be aided through government
cooperation and
even
the
natural
People
forces
must
be
themselves.
remove
of
recovery.
helped
to
help
>;■ -yvAy ;; obstacles
and
set
Board
of
The
Chase
National
Bank, New York, N. Y.
F.. M. Farris, President
National Bank in
A.
P.
A'
'
Giannini,
Chairman
Board Bank of America
S.
N. T.
Mass.
Richard
'
—iA/'jA/A::
Hawes, Vice-Presi¬
S.
forces of enter¬
dent
action
Louis, Mo.
towards
essential objectives:
Relief—Temporary aid in the
form of food and
of
materials
raw
some
minimum
and
tools
First
Rudolf
seven
1.
&
San Francisco, Cal.
A.
George Gilman, President
Maiden
Savings Bank, Maiden,
free the pent-up
for
of
A.,
prise
calls
Third
Nashville, Nash¬
ville, Tenn.
at times by
government participation, but the
primary task is one of releasing
Board
New
National A Bank,
S.
Hecht,
Hibernia
Chairman
National
Orleans, La.
Harold II.
for
St.
A-' AA'ji
of
Bank,
/A:\. A'-A-A
Helm, Vice-President
Chemical Bank & Trust Co., New
ravaged nations to avert' starva¬
tion and help restart industry; to
be supplied through some form of
York, N. Y.
lend-lease.
ident
'
2.
Prompt Peace—Early deter¬
mination
of
3.
war,
new
as
Collective
lishment of
or
thus
A
A'-A.:;
William A. Mitchell, Vice-Pres¬
J: P. Morgan &
Conine.,
New York, N. Y.
E. S. Woosley,
-
possible
of the main peace conditions so
that governments and private in¬
dividuals can make plans.
princes, zation
unstable
at times in their convictions."
A A.- A A^ :hs
Leonard P.
A
ambitious or attempt too
much; grandiose plans are not
likely to succeed, either of adop¬
To
"This fact—that many different
nations have to agree to any plan
Chairman..
t
The program we seek must not
Angel in -the following terms:
of any
some¬
in
Japan discovered it—then Russia
and China.
Now, with the tre¬
preserva¬
the
"It is
I
made
Able men, quali¬
Groups
subject of the
-
sovereignty of states
along with this joint organization:
'It
by understanding and by ex¬
perience in affairs, must be set to
on
tion
international
fied
work
delicate
"council"
The size and scope and almost
infinite ramifications of the prob¬
the
themselves
press
The
,
en¬
released. The industrial
mendous forces
hardly
A> Carrying Out the Program
1914
He
of
very
disbursements
July
over.
lot
and
commitments
and
be done when these
can
European Council and an Asiatic
Council and for sub-organizations
for smaller groups of countries.
follows in his
March 21, 1943, address:
"One can imagine that under a
world
institution
embodying or
in
resources
choosing/
ergies
as
extreme -nation¬
the abun¬
revolution, which transformed the
this
towards
and depressions upon all
countries, particularly those de¬
dant energies of able men and pendent upon a few primary prod¬
women in all countries that each
ucts, A, efforts
to
modify /such
group may build in its own areas swings are essential to an endur¬
and
with
patterns of its own ing post-war recovery.
release
Something- of the flexibility of
possible organizations is suggested
in Mr.; Churchill's
proposal for a
stated
centive
alism, and avoiding thq waste, of
Business
dic¬
reshaping of the affairs
human
these
of
one
world; it is rather to strike
states and groups of states."
He further discusses; the
of
strive.
off shackles to
new
bulk
for
The problem is
recovery
paternalistic
a
of the
of these
have
able,
Institute
Interna¬
ex¬
ist in the world natural and
pow¬
erful regenerative impulses
cap¬
used
movement body's
later, when amortization and
tions
20
some
conclude
ning of this report—that there
are
financial mech¬
anisms > will
be
required, and lems we have been discussing
this indeed may be true." "But," must be evident from the fore¬
continues the report: "new finan¬ going.
They involve politics, eco¬
cial mechanisms may well increase nomics, psychology in all sorts of
the intensity of depressions later combinations and degrees.
How
if they involve the substitution make progress in such a maze?
No single simple formula- will
of government lending for equity
or direct inyestment.
There is a do. Nor will any complicated and
real danger, in our opinion, of elaborate scheme.
For the first
attention being so concentrated on essential is the understanding and
the satisfaction of immediate and agreement of many peoples. There,
pressing capital needs that subse¬ must not only be acceptance at
radical change in
are
Fortu¬
not wholly without
experience in such organizations.
to
the
issued by the
League of Nations Delegation on
Economic Depressions, "that some
There
them.
we are
obstacles, we
by returning
the point made at the begin¬
well
may
through their
own
chosen representatives, the
whole making a council of
great
is
joint
about
nately
all-too-formidable
operations in- February, 1934 ; to
1, 1943 amounting to $1,143,000,000; total disbursements have
been $396,000,000 of which $205,000,000 have been repaid.
The
June
But whether the loans
the
something
seeking to do
dismiss wholly the need for some
prepared to go with
supplement to private investment.
its capital, to provide know-how
The danger to be guarded against
as well as funds, and as fully as
is that excessive government lend¬
possible to work with the people
ing will drive out the private en¬
of other countries. One method of
terprise which is the best hope
financing that has been notably for
continuing progress.
successful in certain instances is
where
ficult questions and
agreements
some
among the United Nations before
the day of peace arrives.
\
.
of
emphasizes the
now the dis¬
beginning
cussion of plans and organizations
them¬
among
of
need
>1315
many
as
Security
some
—
Estab¬
form of organi¬
guarantee
to
prevent
of
conflicts, diminishing the in¬
lessening
the
fear
Louisville
Ky.
Dr.
v-
A
Wright, Vice-President
Cashier
American
Bank & Trust
40th
<A'
Vice-President
Co., Louisville,
,
John C.
and
Trust
Paul
Street,
Secretary.
F.
National
Co., Chicago, J11.
Cadman, 22 A East
New
York,
N.'; Y.,
THE COMMERCIAL & FINANCIAL CHRONICLE
1316
Thursday, September 30, 1943
amendment to the rene¬
gotiation law. In -amending the
law, the following principles are
suggested:
«■»
:'-.t
V,
:
1. Renegotiation on the basis of
profits before taxes should be
abandoned. Agreements should be
made wholly in the light of profits
after taxes. Any other approach
brings disagreement and demands
that are inequitable and unjust.
gress an
VOur Reporter On Governments"
-J-.;
By S. F. PORTER
Stockholders
is a field where extensive public rela¬
according to Verne Burnett, Vice-President
in charge of public and stockholders relations for General Foods
now that the drive is closing Sunday night. . . . Say around Octo¬
Corporation.
''.-p/yber 4 or 5.
The books on the bank drive should be closed in
Probably 12 to 14 million men, women, and children in the
two days, indicating a market will be quoted on the 2s of 1953/51
United States today own stock in some business enterprise.
This
and the 2x/2S by the end of next week.
Opening price looked is a large gain since 1929, when<*>
for at 100.8 or thereabouts.
Premium of % to .% on the 2s only about 9,000,000 Americans products for checking.) Do stock¬
looked for toward the end of October.
Premium of as high owned stock.
holders recommend the products
as
% forecast before 1943 is over and some dealers even are
This rapid growth in stock own¬ to friends, dealers, or others?
"Other
talking 101 for the new 2s.
Surely, this is guesswork! . . . It ership, Mr. Burnett believes, pre¬
questions could bring
probably doesn't even deserve this much space at this stage of the sents many and new problems for out answers to the attitude of
game.
But it is important, if not as an accurate barometer of company management, problems stockholders regarding the man¬
prices, then as a sign to the psychology of experts these days. . . . that must be solved by public re¬ agement, its policies and prac¬
Which is, you can see, exceedingly optimistic. . . .
;v;
tices; regarding prices, advertis¬
S i lations.
"Let the stockholders speak!" ing and employee relations. You
The best information remains consistent with predictions
learn
what
questions the
made here during the last several weeks.
urges Mr. Burnett in his latest can
An oversubscrip¬
tion of two billions or so.
book, "You ana Your Public," re¬ stockholder would like to bring
Maybe a total around $18,000,000cently published by Harper & up if he were present at the next
000.
No more loan drives this year, to the public or the
Brothers. And to get stockholders annual meeting.
banks, with the exception, of course, of the minor technical flota¬
"Once a year a questionnaire
to tell what they like and do not
tions now and then..
Bills and refundings of certificates.. . .
like about a company, Mr. Burnett should be included in a mailing
A good, healthy market in an advancing trend after the technical.
all stockholders.
Old griev¬
would make a survey of stock¬ to
problems of initial trading in the new issues have been solved..
The way the bond dealers in Wall Street are figuring it now,
the offering to commercial banks will be made early next week,
tions work
relations
is needed,
•
....
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
'
J 2. The extent to which
pany's
the
product is
effort
war
a com¬
expendable in
should
be
taken
into consideration in determining
the
amount
of
the
company's
earnings to be recovered by the
Government
through renegotia¬
tion.
In
short, due allowance
should, be
made
for
the
peace¬
the
equip¬
...
.
.
ances die down and new ones crop
i.'• y.■ '■
questions," he writes, "will up rather suddenly. Watch shift¬
vary widely with different com¬ ing opinion with an eagle eye.::
If you're a banker, you're waiting now for your chance and you
"It isn't advisable for a man¬
panies. But here are some things
have your cash position all set for subscribing. . . . And if you're
those charged with stockholders agement to yield to every whim
a
trader, you're eagerly anticipating one of the best markets in
its
stockholders.
Sometimes
relations would want to know im¬ of
many a month. .
you find there is a complete lack
mediately about the company:
So the story of the drive is almost over. .
All that remains
"Are the company's reports to of understanding, and it is your
to be done may be placed under the statistical classification and that stockholders too
long, too short, job to present the facts so that
can be told in a few sentences.
or about right?
proper conclusions will be drawn.
It has been a successful financing—marvelously so.
often
there
are
executive
"Should there be more, less, or But
And as
for the lagging of individual subscriptions, well, that too was fore¬ about
the
present
volume of policies and practices which need
told in this space and was explained.
Somehow, the voluntary charts,
tables,
pictures,
infor¬ revision, or you find that unnec¬
method of financing works best only with the people who need the mation on products, labor policies, essary irritants can and should be
lesson least....
The war worker whose spending is the most danger¬ research, inventories, relations of removed.
"stockholders own your com¬
the company with the Govern¬
ous factor in our economy today seems to slip by under a voluntary
system..
But as for forced lending, that is a subject better written ment and national and world af¬ pany, and if they are sufficiently
fairs?
Is there enough told about angered they will use their power
about a few weeks or months from now.
to hamper the enterprise. If they
the outlook?
NEXT SPRING?
"Are the usual reports suffi¬ are thoroughly sold on the com¬
The story is around that we may get no more bond drives until ciently clear? Is the type legible? pany, they can become crusaders
next April!
The Treasury will have the cash it needs for this What kind of material should be or at least useful voluntary sales¬
By
year in another few days.
No question about its going beyond stressed, reduced, or eliminated? men, with telling benefits.
its money balance between now and the end of 1943 unless spending How much should be spent on understanding your stockholders
each copy of an annual report— all the time, you are in a position
reaches a level not even dreamed of at this time....
(Stock¬ to frame an intelligent program
So that leads us into 1944.
And the gossip on this point is 5, 10, 15 or 25 cents?
holders often think the booklets which will more than justify your
that if a new tax bill is put through Congress before January 1, as is
indicated despite the Washington reports of considerable confusion cost more than they actually do.) salary.
"More and more the feeling of
"Are
dividends
as
much
as
and bickering, the Treasury may get enough from its pay-as-you-go
could reasonably be expected in social consciousness has developed
collections to keep it in funds until the spring.
^ ;
view of the company's current among
stockholders
in
recent
April does sound tremendously optimistic when we're finish¬
needs or hazards? Or should divi¬ years.
Many stockholders now¬
ing up September. > \ . But there's no doubt in the minds of any
dends be increased and, if so, by adays pay much attention to fac¬
observer that we'll have a higher tax burden to carry during
what percentage?
You could ask tors other than sales, earnings and
1944.
And if the Treasury does get another $5,000,000,000 to
whether dividends should be re¬ dividends. They want sound labor
$7,000,000,000 through taxes, in addition to its present recordduced under certain
conditions, relations; an able, ethical man¬
high collections, borrowing in the amounts we've seen in 1943
and you might get some interest¬ agement; honest products; up-tojust won't be necessary.
And probably won't be possible,
ing reactions, although most in¬ date research laboratories; good
.either,;. /,>/\^ v.'i•'^v
^• vestors naturally want to keep the relations with customers, dealers
So while April may be too far off, if you think in terms of a dividends as
and
government.
Stockholders
high as possible.
"free market" for four to five jnonths, you'll have the idea.
"Which of the company's prod¬ know that such factors are right
And
—and profitable..
you don't need any elaboration to recognize the probable influence ucts are stockholders using? (List
of that on the market's level.
.: Especially when bankers and large
investors around the country begin to think the same way.
You've
bought
bonds,
your
we assume.
.
.
holders.
You've picked
.
up
"The
.
.
.
.
.
.
.
.
.
.
.
,.
.
.
.
.
.
.
.
.
.
,
.
.
,
...
..
.
.
.
.
.,
.
.
.
.
.
.
Scott Of Tool
Industry Urges Changes In
Renegotiation Law
FREE RIDING
around the banks reveals that virtually all of them—if
not all—are sticking close to the Federal Reserve Banks' request
Check
that they discourage
heavy borrowing by individuals out to take a
free ride on this loan..
Margins of 10% are the rule.
Meaning
a would-be subscriber has had to put up $1,000 for every $10,000
.
.
.
purchase—which eliminates
of them.
many
.
.
.
charging same rate for borrowing as bonds bear.
.
Also
...
.
banks
2%
on a
are
2%
An
amendment to the
renegotiation law
so
as
to abandon the
present basis for profits and its administrative features is being
urged upon Congress by the machine tool industry.
This was brought
out on Sept. 20 by James V. Scott, President of the Van Norman
Machine Tool Co., Springfield, Mass., in a talk before the meeting
issue, 2i/2% on the 2V2S, eliminating gamblers who thought in terms in New York of the Controllers Institute of America.
of borrowing at 1% to hold 2% bonds and make 1% for the length
The following are excerpts from^
pf their holding. .
Brokerage houses also have been extremely Mr. Scott's address:
No matter how sincere the men
careful on speculators and New York Stock Exchange member
"Taxes are based on a mathe¬ administering the law may be, it
firms have been following regulation on purchase to discourage any matical formula.
But under re¬ places in their hands the power to
speculator without a large cash balance.
negotiation the additional amount pronounce a sentence of life or
Surely, some have gotten by.
And those who have obtained to be returned to the Government death over a company or an in¬
better-than-customary terms are among the informed...
So unwise is purely and solely a matter of dustry. This is not the kind of a
selling at an uncomfortable time may not be looked for from them.... the judgment of the Price Adjust¬ law which we should have in a
.
.
.
.
This observer continues
as
.
ment Boards.
always to defend speculation to
extent in Government bonds.
,
.
is
men,
rather than taxation by law.
democracy.
dustry is
despite fears of bankers to the contrary.
tween the 2s and certificates.,
.
.
,
$4,000,000,000 mark,
Divided equally be¬
The way things shape up now this
.
.
.
$4,000,000,000 may not be nearly enough for the banks, especially the
large ones, and they'll be in the market during October for more
...
,
Excess reserves position of the banks easier today than in al¬
must
year. . .
Banks have been losing deposits against which they
keep reserves, have been gaining deposits against which they
.
.
Result is they'll be more than willing to
a
.
.
build up their positions through subscribing to the 2s and
through
entering the open market.
.
.
tyfoney situation of banks
enough now
.
urated their post-war markets by
reason
of their wartime produc¬
tion
should
be
permitted
tain out of their
to
earnings the
re¬
re¬
serves
necessary to maintain their
service to the industries depend¬
ent upon machines
already in¬
stalled; to finance the engineering
research that leads to
new
devel¬
opments, and to finance those de¬
velopments through the stages of
experiment to production and use.
Only by this
machine
means can
tool
builders
American
maintain
employment
and
restore
their
market position in the post-war
period.
[f"T
"The
of
the
post-war
machine
market
picture
industry, is,
tool
without
question,
one
of
the
toughest in the country. The law
that has hurt
our industry today
hurt any industry tomorrow,
depending on the opinions and the
judgment of the men on Price Ad¬
justment Boards. I believe that
they are sincerely trying to do
may
the
best job
the light of
they know how, in
the policies laid down
by the Government.
But it is
mighty bad law, it seems to me,
to
create
a
set-up under which
just administration of a law
depends upon the character and
intelligence of the men who ad¬
the
minister it,
itself.
rather than the law
"There have been times in the
history of this country when men
have used positions of power for
political purposes or personal ad¬
vantage.
Imagine
what
might
happen if the power granted the
personnel of the Price Adjustment,
Boards should fall into the hands
of unprincipled people!
"May I
do
you
suggest therefore that
all you can to convince
Congressmen and Senators of the
dangerous nature of this law, and
to urge its amendment?"
V
Balkan Peace Offers
may
Reports, some clearly of Ger¬
origin, circulated in Madridi
Spain, that representatives of the
man
Rumanian Government
are
nego¬
tighten
up
a
bit at the end
down
bright.
on
...
tiating with Allied representatives
at Ankara, Turkey, for an armis¬
tice, said an Associated Press News
account from Madrid
on Sept. 25
appearing in the New York "Jour¬
nal
American," : which had the
following to say regarding the re¬
ported peace movements:
of
his
The Rumanians first attempted,
the reports said, to omit the Rus¬
sians and negotiate only with the
Western Powers, but failed in
this.
however. . * > They're high
and their rises in the future will be dependent on a
strong Government market.
There's one major-switch in the Government market these days
which is so far ahead of all other technical suggestions that there's
V
'
■
,
(CBS
recorded
a
London
broadcast of la report from Is¬
...
no
comparison..
.
,
And that switch is—out of the shorter-term tax-
exempts and into the long-terms or out of the shorter-term exempts
and into the longer; taxables. ... No question about the better value
of the long-term exempts. ...
You might consider switching from the shorts to the longs on
a
temporary basis and then returning to your original position later
in
the
of
funds
.
the year when Secretary Morgenthau starts
drawing
war loan accounts but until then, way seems clear and
urging upon Con-
Shorter-term tax-exempts are in line,
the bank offering will reach the
need keep no reserves.
now
so
demand over the coming months.
most
■:
Companies which have sat¬
.
INSIDE THE MARKET
of the 2s.
-
"Therefore the machine tool in¬
matter
beautifully it almost is frightening.
Long-term issues—the 2%s at 112.15, the 2%s of 1959 at
112.6, the 2%s of 1963 at 112.2 and the 2%s of 1965 at 112.14—
are among the most attractive securities on the board. . .. These
are not yet in line with prices of taxables and with indicated
.»
...
a
Tax-exempts acting
moment by heavy selling, free riding or its many variations will
remain the property of the bigger investors.
The "little fel¬
low" just can't get in on a large enough scale to attract him.
.
In short* renegotia¬
of taxation by
tion
/ It does add color to the
market, it does bring in investors who otherwise might not be
aware of the values of these securities, it does
give a life and
activity to the market which is helpful and not harmful.... But
since the Treasury is afraid of being embarrassed at some future
are
3.
r
.
.
Guesses
;
v.
.
.
some
needs
war
have been met.
.
the 2s of the" 2% si or perhaps some certificates if those fit your needs.
<
inherent- in
use
ment after the nation's
.
.
.
time
.
..
000.
new
year.
,
.
.
During August, the Treasury sold bonds again for the
under its supervision. ...
Sales amounted to
And beyond
...
loan.
.
.
,
accounts
$15,813-
doubt, funds have been put back into the
•
tanbul "that a Bulgarian envoy,
is expected there soon to seek
a
basis
tion
for
with
Turkish
the
Allies
interven¬
Bul¬
on
garia's behalf.)
The reports said further that
near-panic was aroused among
Budapest * Government and mili^
tary leaders when they heard of
.
the
Rumanian,
and that
United
may
armistice
feelers
Hungarian contacts with
Nations'
representatives
have been made also.
,
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4216
Volume 158
The Future Of Interest Mates
Royal Bank of Scotland
With
OFFICE—Edinburgh
Branches' throughout
Scotland
49 Charing
E. C. 2
Cross, S. W. I
of the fundamental factors which
inevitably must govern the
ment of interest rates.
£108,171,956
Sept. 2, Sept. 9
Sept. 16; more are given be¬
and
low:
on
y/-;■]; ■7
7; .;';7.
;
bank~of
L. EDMUND ZACIIER,
NEW SOUTH WALES'
6,150,000
8,780,000
Reserve Liability of Prop.
President, The Travelers Insur-
:;77.:."
■
£8,780,000
*
£23*710,006
crease
,
SIR ALFRED
.
^
DAVIDSON, K.B.E.,
General Manager,
-
;
SYDNEY
Head Offices George Street,
.The Bank of Nee South Wales Is the
oldest
'and largest bank in Australasia.
With over
.;670< branches in all Btates of Australia, to
Zealand, FIJI, Papua and New Guinea,
London, it; offers the most complete
efficient banking service to Linvestors,.
-New
end
and
and
traders
interested
travellers
these
In
countries.
OFFICES?
LONDON
CHICAGO
I agree with Dr. Anderson that
the long-term rate should be more
liberal
Government securities,
on
requires,
for
the
present at least, a rate of interest
low enough to offer every reason¬
Government
able
assurance
that the debt
can
Since the
with which to service the
be serviced and carried.
Co.
ance
JERSEY CITY
revenue
debt and pay the interest must be
derived from taxes, it is obviously
There's A Great Day Coming L
AH signs in the investment
_
that
managements
Threadneedle'Street,-E. C.
•29
W. 1
47 Berkeley Square,
"
'
Agency arrangements with Banks
"
>
'
U*. 8.
throughout the
A,
NATIONAL BANK
of EGYPT
Head
Commercial
Office
Cairo
Register No.
FULLY PAID CAPITAL
RESERVE FUND V
LONDON
6' and
,
j
.
.
1
Cairo
t
£3,000,000
£3,000,000
King William Street, E.
7
Governor of Pennsylvania
Branches in all the
principal Towns in
and
:
v
Investors who have placed their
capital in any of the leading
can be assured of
alert, full-time, professional invest¬
ment management working in their behalf
through the difficult
period of transition to a normal^-—-—
—-————-—
peace-time economy.
The
are
mutual
,
fund
managers
scrutinizing the whole field
I
heartily in accord with Dr.
thought that the ac¬
cumulation of capital by individ¬
ual, by corporate and by public
thrift
NATIONAL BANK
of INDIA. LIMITED
Bankers
the
to
Government
Colony and Uganda
Kenya
Head Office:
fn
26, Bishopsgate,
in India, Burma, Ceylon, Kenya,
Colony and Aden and Zanzibar
Bank conducts every description
banking and exchange business
Trusteeships
'
and
on
in
gency
Executorships
as
also undertaken
a
the
Industry Offers V Today'?;
Gold Stocks For Peace.
.
An. interesting circular entitled
Petroleum
the
"What
Offers
the
Investor
Industry
Today" has
prepared by Distributors
Group, Inc., >63 Wall Street, New
York City, discussing the effects
of the war upon the petroleum in¬
dustry as well as the future of
the industry as a producer of a
been
,
basic
raw
material for the chemi¬
cal industry. Copies of this circu¬
lar may be had upon request from
<
Distributors Group, Inc.
Also available: is a memoran¬
dum
the
"peace" outlook for
gold shares which Distributors
Group, Inc., believes offer attrac¬
tive possibilities.
Copies of; this
on
memorandum
tained
quest.
from
may
the
also
firm
be. ob¬
upon
•
re¬
and
carried
of
the
out
Gov¬
An
ernment off ers
Our
a
terest
no
stone unturned
Hon.
Edw.
Martin
to win it.
This,
of course, includes the necessary fi¬
nancing of the war. Consequently,
while Dr. Anderson's argument in
r a
what
must
would
and
F
all
are
able
on
interest
fact
I
whether
William L, De Bosl
demand.
As
a
always
matter of
the
wondered
Shares
Government
is
not
investments
nearly determine what the size of
trouble.
investment
effect
be.
It
that
we
until
we
an
increase
can
more
debt will ultimately
seems
reasonably
shall have
a
debt
where between two hundred bil¬
lion
and'
three
hundred
billion
dollars.
(
A large majority of our citizens
have purchased Government se¬
curities
to
help finance the
war
Loewi
Co., 225 East Mason
Street, Milwaukee, Wis, have is¬
sued
a
circular; discussing
situations
interesting
which
they
feel
possibilities
at
four
offer
the
this
lar may be obtained from the firm
that
they
is
can
the
safest
make.
Re-'
tangible
tive
Prospectus
on
DISTRIBUTORS
GROUP,
Incorporated
63 WALL STREET—NEW
YORK
past decade, to go back no fur¬
ther, has been one of trial and
test for the investing profession.
"These
years
of
experience,
during which organizations have
been welded together and methods
of operation developed, are clear¬
ly benefiting investors in the
funds—and the: benefit
be
seems
taken
company
by
upon
request.
s&
after year.
"This benefit
is not something
intangible; it is
a matter of dol¬
and figures, Over
March 31-August 31,
lars
and cents
the
period
1943
the
Dow-Jones
Industrial
Average made practically no net
gain or loss, beginning the period
at 136.57 and ending it at 136.62.
"In the same 'neutral' periods
out of 40 mutual funds tabulated,
35
showed plus gains, ranging
from a nominal amount to as high
as 15.7%,
In contrast to this high
gain
figure, the
greatest
loss
shown by any of the 40 funds was
only 4.7%. Twenty of the 40 funds
showed a gain equal to, or more
than 4.7%.
"The
UNION
funds
made
ing for the mutual fund indus¬
furnishing three of the
try,
first four funds."
Walter L. Morgan, President of
Wellington Fund, has announced
the following portfolio changes in
the Fund.
New Purchasesi—Tide
Water Associated Oil, Philadel¬
phia
Electric,
.
Bendix,
Additions
(Continued
to
on page
Standard
Present
1320)
one
manage¬
#
The following excerpts are from
Lord, Abbett's Union Dealer en¬
titled, "Mutual Funds Are Deliv¬
,
have
behind
decade
of
them
more
than
experience—and
a
the
a
Useful contribution to this show¬
Brands.
ering."
"Open-end mutual funds have
been in operation a long time
now. Most sponsors active today
to
increasingly pronounced year
23, 1943,
Mining
of
'■
Request
gold stocks. Here is
evidence of the posi¬
steps being
$
&
present time.-Copies of this circu¬
investment
.
Day."
Interesting Situations
and they have been given the as¬
surance
•
ment to prepare for that "Great
certain
some¬
7
wholly in leading American and
the national
attempt to put such
:
A Class of Group Securities, Inc.
concentrated
were
building up by the sale of so many
of these demand loans something
that may later on cause serious
to
SHARES
70 7v:;
'Peace* Investments," the folder
Canadian
into
pre¬
by
Distributors
the Mining Shares of
on
reveals that as of Sept.
pay¬
the
striking
Group Securities, Inc. Entitled,
"Why Gold Stocks Are Good
G
have
more
folder
new
Group
which
bonds
favor of an increase in the rate of
seems convincing, it is a
question whether it would be wise
t e,
happen to all
the billions of
E
even
sentation of the outlook for the
Gold Stocks is embodied in a
in¬
higher
of Investment
Position," pointing out that: "The
stocks of major gold mining com¬
panies now derive a strong appeal
from the prospect of peace, which
should permit the resumption of
profitable operations—encouraged
by the possibility of an increase
in the price of gold."
\
are won¬
practical
and
issue
con¬
has a convincing article
"Gold Stocks
in Distinctive
on
very
son's ideas are
if
latest
and
Timing
dering wheth¬
er Dr. Ander¬
arising
eration
so
have
it
which careful selection
The
do
we
We
a pe¬
be to leave
with
•
invest-
found
first consid¬
"What the Petroleum
Interest
interesting.
emer¬
war.
a
tinuous
supervision of
invest¬
ments will "pay dividends."
and
a
result
the "Outlook for Industrial
cusses
Production" and concludes that
;;7.,'i;'';;'\'''7777v;
permanently
riod of
.
Keystone Corp.'s Keynotes dis¬
gradual transition from war to
peace will occur—a transition in
of
ture
ments,
re-estab¬
ever,
of
■
.
I have read the article "The Fu¬
our
Govern¬
lished
"Post-War
Backlogs and Business" which ap¬
peared
serially
in
Investment
Timing.
■;77v7.;:77,/;\7;7"
President, Union Dime Savings
Bank, New York City
familiar
We are, how¬
£2,000,000
£2,200,000
Fund-—.-
Reserve
,
sound basis.
Subscribed Capital—..*.£4,000,000
The
again bethe pri¬
policy of
our
be
Branches
Paid-Up Capital.—
come
mary
if
our
finances are to
7:77>,7W London, E. C.
;
once
on
Rates," by Dr.
Benjamin M. Anderson and have
had one of my associates who is
must
ment
.
articles
am
STEEL
of securities for favorable post¬
war
opportunities.
They are
•
WILLIAM L, DEBOST
Anderson's
SUDAN
the
'
HON. EDWARD MARTIN,
C.
'
EGYPT
me.
now
mutual funds
to the taxpayers' advantage that
accomplish this with a
the interest charges be not in¬
carefully
large volume
reviewing
present
creased at the present time.
^
portfolios and revising them to
outstanding at
It may well be that following
lower rates, I
conform with realistic apprais¬
the war a refunding of the present
haven't
als of the outlook. Taxes, post¬
had
particularly
the
war backlogs, new products, in¬
time to study. indebtedness,
short-term floating
debt, on a
;
In his dis¬
flation and a host of other fac¬
cussion he long-term basis and at a some¬
tors are being carefully weighed
does not men¬ what higher interest rate may be
in the light of their influence on
not only advisable but necessary.
tion the fact
particular industries and par¬
-I am particularly interested in
that there
is
ticular companies.
Dr.
Anderson's
suggestion
that
hardly
any
All this activity is making itself
banks holding long dated govern¬
^
*4 private lend- ments be permitted to subscribe evident in both the publications
:
ing going on
and the portfolios of the invest¬
to
new
higher
yield
issues
in
long term
which may be issued at some time ment companies. This week, for
sec urities.
in the future by turning their old example, Calvin Bullock's Bulle¬
Most of these
tin is devoted to a discussion of
Such a step
loans go to the bonds in exchange.
would tend to prevent the situa¬ post-war cushions in the earning
Government at
tion which prevailed at the end of power of various "war stocks" as
rates that in¬
the first World War, where long- a result of the carry-back provi¬
vestors would
sions of the 1942 Revenue Act.
L. Edmund Zacher
be glad to re¬ term Government issues depreci¬
National Securities &
Research
ated materially in value.
ceive, but they
Corp. has q letter out on. Interna¬
Because of the effort my Adare obliged to furnish the Govern¬
in tional Series pointing to the fa¬
ment with money with which to ministration is making here
vorable outlook for selected South
make this investment.
In other Pennsylvania to practice thrift in
American and European invest¬
our State Government and to set
words, it * monopolizes the longments. Also, in attractive booklet
term investment values as well as an example to our people, Dr. An¬
the short term banking operations. derson's presentation is of partic¬ form, is a reprint of this sponsor's
series of
ular interest to
AGENCY
field point to the fact
for the victory and
company
actively preparing
are
the peace that lie ahead.
'1
•
LOS" ANGELES
the Government debt of only
on
but how to
30th
-£150,939,354
Aggregate
Assets
Sept., 1941
INCORPORATED
63 Wall Street, New York
dollars and an in¬
in the average interest rate
yearly interest charges of one bil¬
lion, two hundred and fifty mil¬
lion dollars.
Therefore, it seems
to me that the solvency of our
these columns
(ESTABLISHED 1817>
Lord, Abbett & Co.
7.77'7 77; fifty billion
eminent authority on the subject.
Some of the letters were given in-
Australia and New Zealand
—
union fund special
Prospectus covering all classes
of stock on request
one-half of 1%, that would mean
an increase in the Government's
Bank, Ltd.
——
union common stock fund "b"
pudiation is unthinkable and our
Government must keep faith with
its citizens. If we assume a na¬
tional debt of two hundred and
been received regarding the views
and conclusions
drawn by this
Glyn Mills St Co.
Reserve Fund
move¬
Since publication of the article,
large number of comments have
a
Associated Banks:
Paid-Up Capital
union preferred stock fund
as
matters, discussed this important
subject objectively and in light
TOTAL ASSETS
Deacon's
union bond fund "c"
_
union common stock fund "a"
National Bank of the City of New York, presented an ex¬
tremely profound analysis of the probable future trend of interest
rates.
The author, who is recognized as a leading international
authority on fiscal and monetary^
—._*■
64 New Bond Street, W, I
Williams
jlpjil
Chase
Burlington Gardens, W". 1
e
union bond fund "a*
the "Chronicle" of Aug. 26, cap¬
above, Benjamin M. Anderson, Ph.D., Professor of Eco¬
nomics at the University of California and former economist of the
8 West Smtthfield, E. C I
\
p|bj|
Special Reference To The Treasury's
Borrowing Policy
In his article which appeared in
tioned
LONDON OFFICES*
3 Bishopsgaie,
\0
union bond fund
Incorporated by Royal Charter 1721
HEAD
1317
Prospectus may be obtained
dealers, or
from authorized
The PARKER CORPORATION
ONE COURT ST.,
BOSTON
1318
cials have been and still
Mortgage Bankers Association Of America
Elects Hew Officers
Yield
3%
„
0
On All Kinds
H. G. Woodruff, Inc., Detroit,
Bankers Association of America
organization's annual business meeting at the Drake Hotel,
in Chicago, in connection with a Conference of Post-War Planning
held Sept. 23, 24 and 25. Mr. Woodruff succeeds Charles A. Mullenix,
Herold
at
INVESTMENT ACCOUNTS
G.
the
renamed
treasurer
&
Mahan
E.
Co., St. Louis,
elected
was
WE DO THE REST—
viceAll Accounts Insured To $5000
C. E. Bagley, Pres.
a
presi¬
dent.
Six
new
re¬
gional
vicepreside nts
were
elected,
Savings and Loan Associations
i
And The Post-War Eia
n
1
c
d i ng
u
George B. Un¬
derwood, Irv-
ington,
Meeting in Chicago last week
old savings and loan system of the country, dis¬
cussing everything from probable effects of prefabricated housing on
the methods of home financing in this country, to the possibilities of
of
the
112-year
developing
standard
a
as
rent control,
given fuller rein after
business,
sav¬
would
ings and loan
such
be
plan of meet¬
the
war.
ing each of the
set
the
principal types
of needs which
develop
gram
of
the citizens
leave
source
meeting
W.
a n
of
experience in
t h e business,
both
in
Ralph H.
Cake
tion and small
and
thur
also
G.
.
savings
Ar¬
and
Chicago,
in
of
Erdmann
of two decades
veteran
a
operation,
of
type
Vice-Chairman was
the
the
home
the
institution
of
report
complete pre¬
any subcom¬
by Fermor
that given
was
Reports from
loan.
which
subcommittees
had
been
working for the past three months
on
different angles of the post¬
problem pointed to the con¬
private financing will
have its chance to prove its abil¬
war
viction that
of
a
(2) the builder
purchaser;
for
home
F.
Detroit, north¬
Ward
northwest
central region; R. O. Deming, Jr.,
Oswego, Kan., south central re¬
gion; J. C. McGee, Jackson, Miss.,
southeast central region, and C.
W. Mead, Omaha, Rocky Moun¬
tain
region.
Governors of the
region;
J.
Chicago,
Gauntlett,
of
Governors
the
to
elect
regional vice-president
Miller
a
for the Pacific coast region.
B.
Cleveland,
Pennell,
George H. Patterson, Chicago, was
by
-
some
of
the
whether
or
committeemen
socialized
not
housing and various controls over
BARBED-WIRE
Is Gone
And National
Washington bureaucrats
when
Congress
delegates
to
the
President
the
supreme
cessary
study
ester,
New
York,
after
endeavors to ascertain the
was
consensus
that
such
General Manager Oscar
R. Kreutz of the Federal
on page
Savings
1321)
Fluctuation
Insured Investment
use
in most States
Assets Over
$3,000,000
735
lot
South
ASSOCIATION
Olive
Angeles
.
Street
MI-2331
Trading with the En¬
LOAN ASSOCIATION
WICHITA, KANSAS
Financial and operative statements
sent on
request
the
istic-minded
Bankers Association
\
who
set
radical
of
type
up
in financing and
housing, by social¬
public housing in¬
both
endeavor,
construction of
Acf.::;-'V ;%y
emy
used for the domination of private
I cannot believe that the
bureaucrats
administrative section of NHA is
private-business-minded except
its activities.
It has, however, ap¬
parently done a good job in meet¬
ing the war emergency, especially
since its apparent change of policy
in March of this year. The social¬
istic
"public housers' within the *
however, are working i
overtime on plans for tremendous
public housing following the war." i
A contributing reason, he cited, i
was
that if public housing were \
turned over to private manage-1
ment organizations, the "overhead
agency,
cost could
tions to Washington to this effect
have met with evasive replies.
"Administration
been
Commit¬
lieve
regard
He
reviewed the
to
Smith
be reduced by an esti¬
mated two-thirds. He said sugges- *
the regulations with
equitable control."
no
a
of
FHA
good," he said,
it
have
could
"But
been
not
been
dominated
He said mortgage
men
weren't
by
'public houser' influence.
use
every
the
National
the
ours
from!
earliest possible
permitted
Housing Agency at
date and be
to
same
its
resume
action
should
role
I
;
for
The
owners.
be
i
We;
at
means
the benefit of home
happened!"
be-i
better;
command to have it removed
it
has \
I
should
au¬
as
it has been forced by public sen¬
timent and Congress to moderate
the
this
or
future
possible
taken
re¬
with present opera¬ garding the Federal Home Loan|
promulgating tions of the RFC and subsidiary Bank system. These two agencies
their
pet corporations, particularly the Fed¬ have to do with private enterprise
schemes
and eral National Mortgage Associa¬ and should not be dominated by i
a tion and RFC Mortgage Company. influences which have prevailed j
developing
type of total¬ The former recently sold, about during the war and which," if al- j
Chas. E. Mullenix
itarian rule in $130,000,000 of its mortgages and lowed to prevail, will result in
matters which retains about $65,000,000, which, complete
demoralization of two
J
have nothing to do with the war he said, "could have been sold at valuable public agencies."
effort—such as the definite at¬ a fair price to investors, but the
these
of
tempt
for
socialistic forces
control and the
which set up rent
undemocratic manner in which
administered," he said.
was
address
Mullenix'
t
it
too
pleased
best of these
mortgages should be
refinanced and taken out of Fed¬
eral
ownership."
Regarding
the
y,.:; $13.0,000,000 sale,;Mullenix pointed
at the open¬
out that
"we did not expect that
agency would profi¬
preceded
by
teer at the - expense of those ser¬
Green,
vicing agents and investors who
President,; Chicago Mor t g age
have' been: so loyal Jn supporting
Bankers Association, and Herold
FHA's efforts for home owners.
G. Woodruff, Detroit, Association
session
ing
any;
was
brief talks by
Vice President.
Government
ance
Mortgage bankers,
officials,
executives
of the largest life, insur¬
companies, aryd real: estate
but
few
men
from
were
States
there for the meeting,
cqt
because
all
to
of
ture of
a
affecting
the
a
which
half days
two and a
wartime
conditions.
was
in the na¬
review of developments
real
government
taxes, and
activities in
with recommenda¬
estate,
agency
past year
Federal
Howard E.
Mullenix' address
FEDERAL SAVINGS AND
more
the
thority
was
MID KANSAS
and
economic
reasonable
a
hoped that a change in adminis¬
trative personnel resulting from
of many
Legal for Trust Funds
instances houses have !
some
above
observed
for the
reaucrats who
prefabricated
in this
IOAN
the
investigation: will lead to a
correction
of
prevailing tactics
of the activity and rulings—but the honeymoon
of certain bu¬ is almost over and nothing has
present
housing
possibilities that it was too early
yet to formulate financing plans
for such
types of housing.
It
asked, however, that the business
of savings and loan provide itself
with a clearing house of informa¬
tion following every step in the
merchandising plans for prefabri¬
cated housing and the legal devel¬
opments in connection with it.
of
and
had
war,
first
its
that in
about1
concerned
trend
present
tee's findings and said that "it is
but we
must complain
to
the
ne¬
authority
conduct of the
No Market
AND
in the country, taken over
Housing Agency
the
(Continued
STANDARD
gages-
are
of prefabricated
and
engineered housing, headed by
Arhtur P. Bartholomew,
Roch¬
subcommittee
A
activity.
sir
P.
Says He Expects Investigation of RFC At Some
Future Date.
Calls for Separation of FHA
J
em¬
housing could be financed by sav¬
ings and loan institutions and that
it was a natural field for their
t
C.
under
of Mortgage
Retiring President
financing
The
*Wh,
include
-
value."
He de¬
clared that a few representatives
Kennedy, Cincinnati;
Allyn R. of a certain
type of mortgage
Cline, Houston; C. Armel Nutter,
lending institution are being ac¬
Camden, N. J.; Hugo Porth, Mil¬
cused
of
lending on homes in
waukee; Aksel Nielsen, Denver; amounts
greater than FHA will
Norman
R.
Lloyd,
Cleveland; commit for
and, in some cases, for
Wallace Moir, Los Angeles, and
amounts
higher than FHA ap¬
G.
Calvert
Bowie, Washington,
praisals. He said Washington of-j
D. C.
*' %
ficials who exercise supervisory
The Association's new president
control are cooperating to end the
for the 1943-44 term is a native of
practice and have showed that;
Michigan, i served
in
the
First
they do not approve.^ He added
World War and is a member of
that the practice has been limited:
the State bar.
He was formerly
to only a few such lenders.
The
with the Union Guardian Trust
trend
is inflationary, he added,
Company and formed his own and leads to
instability. He told
firm ten years ago, which repre¬
the mortgage men that something
sents many leading life insurance
must be done to secure a better
companies. Mr. Mahan, the new
application-of property tax re¬
vice-president, is an Association
sponsibility to remove the chaotic
member for nearly 20 years and
system which has prevailed and
two years ago organized its affil¬
still
does.
He
commended
the
iated group, the Legion of Mort¬
Federal
Housing Administration
gage Bankers.
He was formerly for its
survey to determine future
with the Mississippi Valley Trust
construction possibilities. He said
Company in St. Louis and organ¬ the
National
Housing
Agency,
ized his own company in 1931.
however, has become a pyramided
During the last war, he was in bureau which
might be justified
charge of all real estate and mojt-. in wartime but that "it has been
Governors
Baps Influence Of Bureaucrats lit Federal Govt.
economical basis.
status
After the
named
term.
using the war to perpetuate excess
corporations
building
multiple Federal jobs, for the evasion of military responsibility and to fur¬
residential units; *and
(5) oper¬ ther crackpot ideas in their underground development of revolu¬
ative builders of housing.
The tionary schemes of government, Charles A. Mullenix, Cleveland,
tentative
outline of such
plans President, Mortgage Bankers Association of America, charged last
dealt with competitive loan rates,
week in an address at the opening session of the Association's 30th
the term of the loan, percentage annual meeting and Conference on ^
of value to be loaned in each case, Post-War Planning at the Drake men favor rent control as provided
monthly payment of taxes and Hotel, Chicago.
by the Price Control Act, but that
There can be no "complaint or they are utterly opposed to the
assessments, prompt commitment,
service and disbursement, provi¬
objection "autocratic administration of it by
an
somewhat
was
terests.
ployment requires him to move,
and provision in the mortgage for
additional
advances for repairs,
alterations and modernization on
was
was re¬
counsel and
Association
elected
(3) the property owner improving
(4) individuals and
ing situation when the brave new
world after the war comes into
The question raised
Association,
meeting Sept. 25, were expected
his dwelling;
sion for the borrower whose
the meeting.
central
east
Herold G. Woodruff
owner-occupancy;
ity to cope with the home financ¬
being.
A frank discussion of the
prospective economic directions
which the affairs of the nation
will
take
after Victory opened
re¬
twelfth
group
,
institu¬
large
method.
assigned to study
possibilities of a standard plan
for savings and loan financing of
each of the following:
(1) the
years'
20
can
Cannon, Indianapolis, Chairman
S.
d
loan executive
of
or
mittee
York
savings
private capital
of housing more effi¬
than
any
other
credit
liminary
Taylor,
New
that
The most nearly
Gardner
was
decided to
to
business
home financing pro¬
the type which would
doubt to the people of
no
ciently
Chairman of
the
the job
do
gage money.
group
of
a
America
have for mort¬
the
The
goal
J.,
r n
gion; Edward
Lambrecht,
(Sept. 22 and 23) the Post-War
Savings and Loan Program Committee of the United States Savings
and Loan League looked at the post-war directions and dimensions
N.
easte
By RALPH II. CAKE
his
for
work-
on
sold for from 15 to 25%
executive secretary and
n,
L.
h
a
president,
—JUST MAIL CHECK
HAMMOND, INDIANA
M
E.
2Vi Million Institution
t
L/»-
Cleveland.
by this
5272 HOHMAN AVE.
president,
Woodruff,
elected president of the Mortgage
was
of TRUST and
are
plans which it hopes will
prove workable so that the HOLC
can jbe
speedily liquidated with
the least possible loss to the Gov-'
ernment.
Turning
to
current
prices for real estate, he said he
ing
tions for change.
He reiteriated that all mortgage
"Some
day
Senator is
Congressman
or
going to start an
investigation of the RFC to de¬
termine what its activities might
lead
time,
us
it
some
into
if, at some future
might come into hands
imbued with the idea of State So¬
cialism—a possible significant de¬
velopment because^ of
its tre¬
holdings and the influ¬
ence which
this federally-owned
mendous
exert because of
its widespread control of indus¬
tries and other property holdings."
super-bank
can
Mullenix
said
Association
offi¬
Ralph E. Crawford Dead
,E.
Ralph
Crawford,
.
of. the
tary
First
,
Federal
Secre-,
Sav~(
ings & Loan Association, Green-'
wood, Indiana, died Sept. 19. of an,
illness of
inent
week's duration. Prom¬
a
in
the
Indiana
Savings
&
Loan League, he was on the Mem-:
bership Committee of the United'.
States Savings & Loan League,
and had previously been a mem-'
ber of. the national
Committee
on
Insurance.- He
the
organization's'.
Fidelity Bonds and
was
also active in1
Republican party in Indiana.
Jas. Roberts In Seattle
(Special
to The Financial
SEATTLE,
Roberts has
.
Chronicle)
WASH.—James
W.-
opened offices at 4014
Brooklyn Avenue to engage in a
general securities business.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4216
158
FINANCIAL NOTICE
DIVIDEND NOTICES
Tomorrow's Markets
Walter
CITY INVESTING COMPANY I
Street,
Broad
;
York ',
New
September 23,
This Notice is not
1943
The
Board
cf
Directors
has
this
day de¬
clared, out of earned surplus of tqe Company,
a
dividend for the three months ending Sep¬
tember- 30,
1943, of one and three quarters
(l%'/6> pev centum upon the issued and out¬
standing Preferred Capital stock cf the Com¬
pany;
other
than Preferred
stock
owned
by
the Company, payable Oct. 1, 1943, to ho'ders
♦other
than
the Company),
of the Preferred
Capital stock of record on the books of the
Company at the close of business on Septem¬
Whyte
24,
1943.
Checks
G.
will
P.
be
Holders
the
Secretary
$1.25
share
per
the
of
the
v','.T;yA.'
holders
and
Ah
ket
;
^'A.-AhAA;; .'AT^AT/A/'Aj
A,;
.
at, the
1943.
-v-a1.".".;
'
the
NOTICE OF
a •''■1
'a
of Fundamental
Directors
1970,
Investors,
2.0
cents
share payable on
per
poration's capital stock
to holders
of
October
15,
record September 30,
V.A> Incorporated
National
t
of
may
be accepted is hereby extended from October 1, 1943 to
Copies of the Offer
1943,
1943.
may
be obtained
Exchange Place, New York 15, N. Y.
20
./
•
reaction.
w
Alberto Lleras
Distributors
■■
Extraordinary and Plenipotentiary of the
Republic of Colombia to the United States of America.
September 29, 1943,
That
Bond
Board
Directors
of
of
21
of
share"payable
per
holders
of
record
October
ness
October1:,15,
as
of
the close
i943.
5,
1943,
The Securities Salesman's Corner
'•
'
Incorporated
;
'
'
;
'
v
15 Exchange Place, Jersey City 2, N. J.
PACIFIC GAS AND ELECTRIC CO,
Common Stock eDividend No. Ill
A cash dividend declared
v
by the Board
September .15, 1943,
ending September 30,
1943, equal to 2% of its par value,
will be paid upon the Common Capital
Stock of this Company by check on
October 15, 1943, to shareholders of
record at 12:00 o'clock noon, Pacific
of Directors
on
for the quarter
i
,
f
'
-
.
,
who
have
never
sold
a
substantial
and downs that come to all human
the lessons that life itself teaches, is
instinctively discern the proper things
to say them.'
"
a a a
Output
Attains Record High
As
production was found to be
attaining a peak figure on a scale
of $55,000,000 worth of armaments
'and munitions per week, the Bank
war
of Montreal states in its "Business
/
review goes on to state:
"For
the year ended Sept. 1,
.1943, the expenditure on contracts
for war production and construc¬
tion under departmental contracts
was
placed at $3,094,000,000, as
compared with $1,957,000,000 for
the year
ending on the corre¬
sponding date in 1942, while the
number
of
persons
employed
'directly or indirectly on war work
on Sept. l was estimated at 1,100,.000, as compared with 940,000 on,
same
the
last
four-year
date
new
an
just
may
final
not know
tax
decision
words.
analyst the
so many
swer
all the
be
to
seems
that
shouting is
tain stocks will go
if.
From
'.
who had also been through
some
material
nearly $300,000,000."
week.
*
a.;■ v:-
*
was
was
It
true until last
then that~cer-
a "''a
■
<•'''?/''
ift
the
an¬
after
over, cer¬
higher.
*
of the
averages are about 139.
represents
a
3
from
points
highs.
This
reaction of about
last
week's
If the market
it
■
is
saying
means
the Tow
a
gradual
But
impractical. No
or
this
to
recovery
playing the
sells them.'
will
142.
is
averages
one ever
buys
So
the action of the
averages
has chosen
lieves
a
will
list which it be¬
advance
the
an¬
be
is
if
even
the market itself marks
time,
and
should do
appreciably
shows
,
as
unit
a
tendency
any
to
advance.
*
Last
vised
w e e
the
stocks at
these
*
the
available:
#.
k's column ad¬
purchase
of eight
specific prices. Of
following
Atlantic
became
Refining,
something the market has yet bought at 27, with a stop at
There are weeks 26.
U. S. Pipe &
Foundry,
when its interpretations
point bought at 34, with a stop at
one
White Motors, bought at
way, to be followed by 32.
market actions in
subsequent 21, with a stop at 19, and
weeks that point still another
Youngstown Sheet & Tube,
way. / y ~
• a1:;':;.'
bought at 36, with a stop at
to indicate.
experiences and had
same
all
to
'1
*
■
being typed the
better if the market
front
war
post-war world. What the
swer
* a.
*
As this is
'AAAAv'i. ;A
A;
,
A;'A
35, I advise
The London
market, for ex¬ until
foretold a post-war here.
ample,
settlement that would be kind
are
holding the above
instructions
appear
The other four stocks
(see
to industries whose securities
new
last
week's Chronicle)
anywhere from frac¬
are traded in that
Exchange. tion to full points away from
standing can be when it is based upon realistic experiences. The The American market,
did the buying levels. If they get
salesman/ who has this faculty of understanding people knows in¬ the
contrary. Whether it was down, the advice to buy still
stinctively when he is overstaying during a call—he knows how to
because of domestic problems applies.
,y
pick up little things his prospect is saying so as to lead the con¬
$
;A
v' " *
A
AAA/versation into channels that are INTERESTING TO THE PERSON or
international, is hard to
Of
this
of prospects is not
aiways possible, but it does show how important a common under¬
course
specialization
in
class
one
still
'
.
WITH
WHOM
because
HE
IS
it is based, upon an
IMPORTANT in the
by every
but it is
TALKING.
one—some
always
an
is
almost
instinctive
tell.
appreciation of the things THAT ARE
This faculty can be acquired
was
His
tact
But whatever it was, it
sufficient for this column
lives of others.
of
us
have it in a greater degree than others—
to
ignore the London market
essential ingredient of successful salesmanship. /■
More next
totalled
over
$22,000,000
or
[The
article
Established
1856
(Continued from page 1300)
averaged only 1.90 per kwh.
1942, not much over half the
S. average.
If the Federal
in
the
properties
the
At
the
stock
times
the
were
recent
worth.
price
of 11%>
selling at about six
adjusted earnings per
coincide
expressed
in
necessarily at
with
They
those
are
this
any
of
H. Hentz & Co.
clearly
formulated
initial
dividend
about
5%
but
New
New
1
Stock
Exchange
Curb
Exchange
Cotton
Orleans
And
LAMBORN & CO.
Exchange
York.,
York
Chicago
New
alone is equal to
the
York
Commodity
the
price
of the stock.
It appears likely
that the annual rate might be in
the neighborhood of 750 a share,
which would equal the dividends
A por¬
have not been able to buy any on the old preferred stock.
parts of -the Puget Sound prop-, tion of net earnings is to be used
erty.
Jury condemnation awards to reduce funded debt.
on
Members
New
Exchange,
Board
Cotton
other
of
Inc.
99
WALL
STREET
NEW YORK
5, N. Y.
Trade
Exchange
Exchanges
StJGAR
present
N.
Y.
Cotton
Exchange Bldg.
'
NEW
CHICAGO
YORK
DETROIT
GENEVA,
4,
Exports—I mports—Futures
N. Y.
PITTSBURGH
SWITZERLAND
the
presented
is
share, as compared with an aver¬
age of about 14 or 15 times for
leading utility stocks listed on the
Big Board. Dividend policy is not
yet
not
those of the author only.]
double what the districts claimed
nue
views
do
Chronicle.
about
Thursday.
—Walter Whyte
(
time
ships and Canadian plants will U.
.have produced 10,000 aircraft, 35,- Government finally obtains an ap¬
000 armored fighting vehicles, 600,- propriation from Congress to buy
000 other military vehicles, 100,- up
local distributing companies
thus
000 guns, barrels and mountings and
obtain a
market
for
and 1,000,000 small arms. ..There Bonneville
power
(now largely
will also have been manufactured used in war industries), it seems
.1,000,000 tons of explosives and unlikely that the company could
be forced to sell at a price which
war
chemicals,
60,000,000
com¬
plete rounds of heavy ammuni¬ would injure common stockhold¬
ers.
Some local utility districts
tion; 3,000,000,000 rounds of Small
have been formed, but thus far
arms ammunition, and instruments
communications
*
....
All this
converting
into
But individual stocks, this column
verings aimed at shaping the
'. -,:,;'':a a-
feelings and sympathies in common with his own.
His knowledge
of the various countries in Europe and of several languages also
made it possible for him to get closer to these people.
As his clientele
developed he stayed in this same group—one told another and today
he has a very lucrative investment business,
-/
By
750
valued at
I
and
to the market
example of how one salesman capitalized upon this gift
During
more than
machines.
on
American
should be 138 or so,
followed by either dullnes or
year.
the close of 1943, Canadian yards
will have launched approximately
and
'a
;
:
antici¬ what
a
point
already
f
the
the
knowledge isn't displayed
in
understanding people we are reminded of how a well-educated
young fellow began his sales career a few years ago by calling upon
pople with whom he had a very close tie and relationship to the
past.
On account of the war he had been compelled to leave occu¬
pied Europe and, although his family were still there, he was for¬
tunate to be in the U. S. A.
He built his clientele among people
period,
:$800,000,000 jvas spent on the con¬
struction of new plants and the
installation of
its
of
-1 In entering the fifth year of its
participation in the war, Canadian
the
has
known
But you can be sure
that the market does.
True,
beings and who has learned
the ^fellow who can almost
to say and the right time
.
Canadian War
The
well
is
almost
of the ^first requisites necessary in order to acquire the. news
uniformly
sympathetic relationship that, eventually leads to confidence" good.
But here too the news
and sales is to be genuinely interested in people.
This has been of battles
play a secondary
repeated many times, in hundreds of selling courses, but it is worth
role to the political maneustating again.
The salesman who has lived and observed the many
ups
,
the front pages
over
One
'
the
SO.
•'. '■
will be.
relationship.
business
,
i
what
sympathetic understanding of other people.
As we progress
through life our understanding usually quickens and we acquire
more
experience in dealing with others.
The successful salesman
of intangibles uses this ability to GAIN A SYMPATHETIC UNDER¬
STANDING with his prospects.
It is the basis upon which he erects
a foundation of confidence
in himself that eventually leads to the
of
of
exchanges.
sort of
on September 30,
1943.
The Transfer Books will not be closed.
E. J. Beckett, Treasurer
Summary" dated Sept. 22.
You
intangibles often discover that
although they may have been successful selling automobiles, houses,
or other tangible articles, that there is an entirely different technique
to selling something that cannot be seen, felt, tasted or handled.
Some people find the answer quickly—others have the greatest dif¬
ficulty in acquiring the knack of selling intangibles.
'.-A'A^'.AA-.-Aa
For it is a "knack."
Most people are born with a certain amount
creation
War Time,
San Francisco, California
a
.;aa.,;a..a
pated it.
of
DIVIDEND NOTICE
,
Salesmen
'.
Distributors
'
•
market
Selling Intangibles Requires A Sympathetic
Understanding Of People
-' A
; HUGH W. LONG and COMPANY
National
was
action
a
it's
cause
to
of busi¬
.3
this
a
and base recommendations
you
argues new taxes next
week is well known. But be¬
Manhattan
has
Inc.,
No.
reaction
it
as
declared Ordinary
10 cents: per share
-and Extraordinary Distribution of 15 cents
Fund,
Distribution
request.
the
Congress will be plas¬
tered all
MANHATTAN BOND FUND, INC.
The
Co., 61 Broadway, New York City.
Copies of these interesting memo¬
ex¬
/AiA'AA,^' ';AA&;:'AA/V, &•'>,
Ambassador
15 Exchange Place, Jersey City 2, N. J.
,
possibilities,
to memoranda
being
distributed by C, E. Unterberg &
ready been seen. It may go
only individual stocks but the further, but I doubt if any
averages do not in my opinion further decline will extend
indicate any extension of the more than another
point or
application to The
upon
National City Bank of New York, Corporate Trust Department,
-
and ;
Trust
but the current action of not
the Cor¬
HUGH W. LONG and COMPANY
•,
5, 1941, to exchange
April 1, 1944.
Inc., have declared quarterly dividend No. 39
and
sharp wide open tain stocks began acting in
crack, I don't agree. I have such a manner that new and
made errors in the past, and
higher prices seemed to be
being human, will undoubt¬ foreshadowed after a minor
edly make them in the future, setback. This setback has al¬
Colombia, 3% External Sinking Fund Dollar Bonds, due October 1,
FUNDAMENTAL INVESTORS, INC.
-The
prelude to
Bonds and the appurtenant coupons for Republic
above
this
some
made
would think that
EXTENSION.'
The time within which the Offer, dated June
Treasurer.
statements
plaining
designated in the Offer,
To hear
139.
Bank
attractive
mar¬
already retreated
point and is now
about
business
■-
WIEGERS,
B.
of
close
has
The
.
randa .may be had from the firm
from the 142
of
tlie appurtenant coupons
the
;
,
at
have been declared for
1, • 1943, to the stock¬
record
of
L.
of
and
Dated April 1, 1928, Due October 1, 1961,
a
November
October' 6,
:
• ;y.
6% External Sinking Fund Gold Bonds of 1928
.a
.
Stock
keeping with
As this is written the
'U;ADated July 1, 1927, Due January 1,1961,
/
the $5 Preferred Stock
on
Company
payment
Preferred
$6
in
more
as
National
in
Company
according
market behavior.
regular quarterly dividends of $1.50
on
1296)
page
situations
Radiator
offer
upon
$6 and $5 Preferred Stock Dividends
per-share
Co.
week's column chose the lat¬
6% External Sinking Fund Gold Bonds
Electric Bond and Share Company
The
T''r'yA
of
Republic of Colombia
■AAAAv.-
•
Says
ter
mailed.
GUNTHER,
;
current
National
Public
(Continued from
To
.
ber
Offer 'v
an
Situations of Interest
The
'
30
1319
DIgby 4-2727
as
the
A decline in passenger car reg¬
In
year-to less than
the total recorded at the begin¬
way
ning of the war in 1939 is indi¬
cated by registration data from
39 States for the first half of 1943,
26%;
this
istrations
Roads Administration
Public
water
Wire Bids
street rail¬
and
VIRGINIA—WEST VIRGINIA
50%;
(c)
earnings
street railway
of approximately
Net
CAROLINA
to
Substantial margin of
meet debt service
nounced Sept. 20.
ating costs.
1943
that
25,500,000 auto¬
be registered in
will
'
would be
This
1939.
in
de¬
a
value in a broad¬
ened
peacetime production, the
29,500,000 of 1941, peak year in
First of Michigan Corp. explains.
the 43-year history of automo¬
The backlog of potential orders
bile registrations.
It would be
being created in automobile and
a greater decline than the only
other expendable products manu¬
previous large reduction in reg¬
factured
in
Detroit, and plans
istrations which took place durmade for a rapid reconversion,
ihg the depression when the
when peace is declared, are re¬
number dropped from 23,100,000
assuring.
in 1929 to 20,600,000 in 1933.
Detroit bonds, the bond house
Registrations in 39 States for
the first six months of 1943 were concludes, are still obtainable at
current
market
levels, yielding
down 10.7% compared with the
substantially more than bonds of
same period in 1941.
Registrations
most of the other large cities in
in these States in 1942 increased
verely gasoline rationed eastern
area during the first half of 1943
was nearly double that of the 24
"western"
in the
The
area.
declines
rationed
and
country.
„
Copies of the complete analysis,
of which a few highlights have
15 and 8%, respec¬
area.
reductions
1943
in
Hampshire
in
in
occurred
with
New York
Florida
-
26%
a
the
New
drop,
23%, Vermont 18%,
17%,
Delaware
Maine
16%
and
Massachusetts
and
15%.
In the "West" in
1943, Montana
led with an 18% decline, followed
by Michigan with 17%, Oklahoma
with 15%. Idaho 14%, New Mex¬
ico 13%, Illinois 12% and Minne¬
sota
The smallest decrease,
11%.
2%, was in the State of Wash¬
ington. Registrations increased in
Alabama, Arkansas and Nevada,
1, 2 and 7%; respectively.
of
have
migrated westward
portion of the
country, the Public Roads Admin¬
istration pointed out.
cars
Trom
the
eastern
On the other
(26), Mich. 7
:
and
tax rates from 3 to 2M>% to
period in 1941—considerably less
4.2%
decrease
in
the
western area.
tions in
down
39
truck
registra¬
States this year were
2.9%
compared
with
the
first half of 1941.
A table
comparing the 1941 and
use
high¬
Virginia's action fell in
the general trend this
year of extending sales tax ex¬
emptions to transactions formerly
subject to the tax, the Federation
said,1 although
several
States
West
line
broadened their sales tax laws to
include transactions and commod¬
strong
California
duce sales taxes,
was
Ore¬
gon's Legislature, on the other
hand, will submit to voters at
the next general election a pro¬
posal to levy a 3% sales tax
on
gross
income of retailers,
only
do so.
State to
with 60%
of
anticipated an¬
an
$20,000,000 sched¬
offset reduced yields
nual yield of
to
materials
the States broadening
exemptions from sales and use
taxes
or
otherwise
liberalizing
laws
zona,
Colorado,
supplies to State
and local governments, repealed
exemptions formerly granted in¬
dustrial materials, capital assets
and equipment not readily obtain¬
lature
Survey 3
$48 Million
Utah levied
domestic
reviews the details of the various
factors
which
have
brought the
standing
to
its
present high level. Among these
city's
credit
,'
are:
A
net debt
reduction of
over
$48,000,000 which is equivalent
to approximately 17% in amount,
4%
in
percentage
valuation,
$35
per
of
assessed
and South Dakota both
from
the
materials
sales
of
and
supplies to the
governments; Ok¬
lahoma exempted from the State
use tax all tangible,personal prop¬
erty stored in the State pending
shipment for use in another State;
Washington made tax-exempt the
an
erty of a
or
sale
of
entire operating
section
of the
prop¬
erty.
capita.
the
States
broadening
The highest percentage of tax
on
record.
their sales tax structures to cover
Complete
commodities were Alabama,
collections
$21,000,000
elimination
carry-over
of
the
deficit.
a
wider
nois,
range
of transactions or
Oklahoma,
South
structures in several
by amendment to the gen¬
Certain improvements to
lands and buildings were declared
retail sales, and sales or charges
made
for
dered
in
labor
and
service
ren¬
real
to
respect
per¬
Illi¬
or
sonal
property, which are not sales
retail, were made sales at
at
wholesale.
Gifts
were
made sub¬
tax, and persons
engaged
in
improving
roads,
streets and bridges were made
liable
for
use
the
business
privilege
.•yz-.T
y-
tax.
West
sales
Virginia
tax
property
or
extended
to
law
selling
sons
include
tangible
its
per¬
personal
furnishing services
to retail dealers for resale only;
wholesalers
retail
sales
classified
were
dealers
for
when
personal
as
they make
emption formerly
paying
sons
tax
granted
ex¬
per¬
personal income
a
income
on
the
from
rentals,
royalties, fees and interest.
Delaware, Iowa, Oklahoma and
Wisconsin
made
changes regard¬
ing imposition of sales taxes
special
commodities;
made dealers in feed
to
bags subject
tax of 20 cents per
a
on
Delaware
$1,000 of
the cost value of goods purchased
repealed its oleomargerine
poundage
tax
Wisconsin
imposed
of
or
7
cents
1
and
fees;
pound
an
excise tax
of
an
on
on
natural
excise
use
gas;
tax
butterfat
of
pro¬
duced between June 1 and June 15
each year to finance the advertis¬
Dakota, ing of Iowa dairy products.
in the midst of an attack
was
the' Germans
on
Nov;
on
1918,
11,
firing ceased.
Now he is
fighting wholeheartedly on the
Chairman of the
home front.
As
recent
Chest
War
in
Campaign
Philadelphia he brought the drive
well over its $7,300,000 goal with
his untiring efforts night and day
leadership.
his outstanding
and
Investment Trusts
industries in
war
(Continued from page 1317)
Holdings
Atchison, Phelps Dodge, Caterpil¬
lar, Celanese, Bank of America,
also is
sale of
bonds, and to date
$22,000,000, in addi¬
savings
United
—
Pfd.>
Corp.
Simmons, Sperry, Commercial In¬
Trust, New York, Chi. &
St. L. 4y2s, 1978, Associated Elec.
Government issues.:K:u
.7f$'\ 41/2S, 1953. Eliminations—Ameri¬
The bank has long been identi¬ can
Loco.? Pfd., Lehman ^ Corp.,
fied closely with every movement
Anaconda, Briggs, Reliance Insur¬
of a constructive nature in the
ance, U. S. Tobacco, Burroughs,
city of
Philadelphia—the most Underwood-Elliot-Fisher, Boston
notable being its efforts in the
Edison, Southern California Edi¬
development of the Port of Phila¬ son, Wash. Railway & Elec. units,
delphia, helping to obtain the Amer.■„< Lt. & Traction, Illinois
Federal
Building for
the new Central 4s, 1955.
'
Custom House,
its interest also /? •"■■'/r--vF''
#
■'.....
V•
extending to the Philadlephia air¬
If there is-anything new in the
port and the erection of the Art
way of investment company liter¬
Museum and the Franklin Insti¬
ature,
the
new
prospectus
on
has sold over
vestment
tion to millions of dollars of other
,•
tute.
The first President of the Corn
Exchange
Alexander G. Cat-
was
tell, who served until 1871. David
E. Williams, the present head of
institution
the
has
served
since
January, 1941.
f-GAW
It was on Sept. 23, 1858, that
the Corn Exchange National Bank
with
first opened
was
for
Selective
paid-in capital of $130,000.
The five clerks. transacted busi¬
ness in modest rented quarters in
the hall of the "Corn Exchange"
building at the corner of Second
and Gold, near Dock Street in old
Philadelphia. Later that year the
bank moved to its permanent lo¬
cation
at
ceeds
stands. \
In
history, which has been made
available, the following informa¬
tion is also supplied.
;
:
Originally,
rectors met at
to
the Board of Di¬
night to guide and
continu¬
chart the bank's course,
ing to do so until 1859 when meet¬
ings were held during the day.
By their diligent efforts the bank
accumulated
quickly
resources
of
in
making
like
$500,000.
In 1864, the institu¬
was
placed under the Na¬
tional Banking Act with a capital
resources
a
Today the bank's
over $200,000,000—
$500,000.
are
growth which perhaps even the
sanguine of the founders
most
could not have foreseen.
expansion of the bank
thing
we
about
the
the
of
turn
building
is
»
F.
ter to
for
the
as
pace
ment trusts.
Copies
long life of the Corn Ex¬
bank * financed
the
Govern¬
ment to its utmost in
carrying
on
response
to
In
War.
President Lincoln's urgent call for
volunteers,
President
the
Mr.
of
Cattell,
At the close of business
1943
The
formation
of
a
sponsored
regiment al¬
Within a mat¬
approximately a thou¬
men, known as the "Corn
Exchange Ttegiment," went forth
most
immediately.
ter of days
sand
Aug. 31,
Fund, Inc.
Maryland
had
net assets amounting to $5,769,989.23, equivalent to $5.19 per
on
1,112,302 shares out¬
standing. This compared with net
assets on Feb. 27, 1943 of $5,467,065.42, equivalent to $4.88 per
share
share
on
standing,
1,119,922
and
shares
with
net
out¬
assets
a
of $4,349,580.92, equiva¬
lent to $3.88 per share on 1,119,922
year ago
shares outstanding.
Dividends
Fundamental
Investors,
Inc.—
Quarterly
dividend
No.
39
amounting to $.20 per share pay¬
able
Oct.
record
15, 1943, to holders
Sept. 30.
Manhattan
Ordinary
Bond
an
extra
Fund,
distribution
of
Inc.—
No.
21
share
amounting.to $.15
per
amounting to $.10
share 0 payable
per
Oct.
15,
1943
holders of record Oct. 5.
to
V
1
Aviation Group Shares—A semi¬
annual dividend of $.50 per share
1943 to holders
'
;
,
"News & Views"
current
Views"
issue
'
of "News
Co. of
California, 210
West Seventh Street, Los
Angeles,
Calif;, contains interesting data
a
&
being distributed by But¬
ler-Huff &
on
number of fire and casualty in¬
surance
the first
the bank,
available
are
Investment Company Reports
The
change Bank has spanned several
wars.
During its inceptive years
the
,
from Mr; G. M. Loeb of that firm.
its many customers.
serve
V,.
& Co. has prepared a
study of the principal port¬
folio changes in the common stock
holdings of the ' leading invest¬
payable Nov. 30,
kept
.
Hutton
of record Oct. 30.
since
seen."'
new
with Phila¬
delphia's growing population by
acquiring 10 branch offices lo¬
cated at strategic points, the bet¬
has
nearly
;The Stock Exchange firm of E.
century.
known
now
office"
"main
more
' »ss' ■' ?}<: *., r,/ ;•
ijt
bank
the
revered
the
have hitherto
.
was
steady and rapid.
It outgrew its
quarters
several times, making
repeated additions necessary to
the originally occupied building.
Other properties were bought and
a
modern building was erected
This
usual
sales presentation than any¬
a
tion
of
the
resemble
offering is made look
its main office still
sketch of the bank's
a
it.
document through which "officiar
Chestnut
and
Second
set
cover
is
Shares
colors, with the front
"new offering" prospectus, it suc¬
a
Street where
American
Done in two
institution
State
a
the' Civil
imposed
a
license
1,000 feet
per
consumption
cent
and
victory.
The bank
in promoting the
The
during the preceding year; Okla¬
homa
in
captain
Philadelphia own 315th Infantry
during the last World War, he
consumption
was
A
of
active
The
Repealed
use.
Iowa
Among
tax
prop¬
publicly-owned utility,
a
commercial consump¬
or
eral act.
State and local
sale of
sale of
rural electric cooperatives
exempted however.
' •
use
or
sale
on
•'•••
ways
without
exempted
the
tax
2% tax
a
•
Washington tightened its sales
and
terials bought for use in
city's
financial statement of Aug.
31,
1943. The survey, prepared
by the
First of Michigan Corp.,
Detroit,
v-Vi^-v
coal, fuel oil and other fuels for
from paying the sales tax on ma¬
interesting analysis of the
'
■.
of
President
been
institution.
the all-out production of weapons
as
G
;
has
Williams
the
fifth dollar of Corn
deposits are financing
Co.
sales - tax,
their con¬
tract projects; Colorado exempted
Net Debt Reduction
all fuel oil, coke, newsprint and
The
substantial
improvement printer's ink used by publishers
effected in the credit position of
and commercial printers and also
the Gity of Detroit, Mich., in the
exempted sales of animals to be
past ten years is reflected in an used for
breeding purposes; North
Reveals
on
ma¬
fortunate
been
its leaders some of
Philadelphia's most Outstanding
citizens to uphold this tradition.
Since
January,
1941, David E.
every
America's vital
business
contractors
exempted
tax
has
as
prac¬
& Trust
Washington. Alabama,
for example, exempted gross pro¬
of agricultural
ceeds from sale
supplies and materials
payment of sales tax.;
securities
Government
tically
de¬
$113,U. S.
chines and similar mechanical de-
and
the
2%
a
of its
55%
Over
vices.
North
Missouri,
from
levied
receipts from pin-ball
gross
Dakota, Oklahoma, South Dakota,
Utah
also
The Legis¬
Ari¬
Alabama,
were
of
of
or
500,000,
find
ject to the
Among
apply
South Dakota, though exempt¬
ing from the sales tax the sale of
States to abolish or re¬
several
Arizona
Detroit Debt
shall
contracts
renegotiated contracts.
or
In
pressure
covered
rV
contracts
bona-fide
were
Despite
for
this type, and not to lump sum
and allowed manufacturers to buy
•.
of
tion;
ities formerly exempt.
publications
ministration.
exemptions
cost-plus-a-fixed-fee
to
with
1943 registrations in the 39 States
by the survey has been
compiled by the Public Roads Ad¬
tax
sales
able in South Dakota.
these
January-June
orders by
or
in Illinois.
type
light State legislative action this
year
in the sales and use tax
field, the Federation of Tax Ad¬
ministrators reported Sept. 13.. v:
uled
the
through solicitations
salesmen
retailer's
its
to include sales
foreign, corporations
tax
only
from property taxes.
same
amended
effort in
the; present
every
approximateliy
are
invested in
posits,
war
Illinois
occupation
made
by
that
sales
its
cut
area
the
himself
making himself lia¬
consumer,
ble for the sales tax.
West
year
than
as
effort.
war
construction contract Exchange
a
the manufacturer,. to
by
Legislative Action In
Sales Tax Field Reported
during the first half of this
from
as
Federal
hand, truck regis¬
0.4%
personal
is to be considered as a retail sale
;
trations in the eastern ration
decreased
himself
performing
Bldg., Detroit
Corporation, Buhl
the
The automobile registration fig¬
ures
show that a large number
tangible
the
manufacturer
building material in
by
Oklahoma enacted legislation
California
in
of
use
property
applying to tax exemption of
"cost-plus" contracts, providing
3.5%. in the eastern and 2.7%
Greatest
lation
Alabama legis¬
new
of
times
again exercising
the
prosecution
,
.
Under the
given, are available on re¬
been
Virginia
exempted
all
food
purchases up to 50 -' cents
from the State's 2% sales tax and
East
Utah, Washington and West-Virv
ginia.
having
served
stress, is
previously
in
having
when
Exchange,
times
nation
the
corn.
Corn
The
•
the
retained
and always has been
guided by its symbol
of
ear
several
quest from the First of Michigan
tively, compared with JanuaryJune registrations in 1941.
The
decline in 1942 registrations from
the 1941 totals amounted to only
the western
-
System Teletype: RH 83 & 84
Telephone 3-1)137
western
eastern
were
the
growth
of its existence
rapid during
has
it
name
—the
VIRGINIA
RICHMOND,
Bell
time
known and
much permanent
of four million from the
only 3% from the 1941 total.
The percentage drop in regis¬
trations in 15 States in the se¬
States
the 85 years
which
CRAIGIE&CO.
capacity is now devoted primarily
to war production. Conversion to
war work has given the city new
facilities which should prove of
26,100,000
with
compared
crease
-F. W.-
industrial
tremendous
Detroit's
Administration
bank's
The
$500,000.
over
same
Roads
mobiles
-:
has been steady and
notwithstanding increased oper¬
estimates
'
MUNICIPAL BONDS
bank
The
in
(Continued from first page)
to
of the Federal Works Agency an¬
The
in some of the war's
important battles, including
Antietam and Gettysburg.
engage
most
How 85 Years Old
NORTH and SOUTH
debVreduction of approximately
debt reduction
to
Exchange Bank
Of Philadelphia
on
departments: (a) Net water
(b)
Thursday, September 30, 1943
Corn
Mnnieipai Mews & Notes
the
CHRONICLE
THE COMMERCIAL & FINANCIAL
1320
companies.
interesting
Copies of this
circular
may
available
to
interesting.
bank
and
-
dealers
quotation
had
be
from the firm upon request.
only
Also
is
sheet
insurance, stocks:
an
of
.....
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4216
158
1321
«J
f
Savings And Loan Associations And
Broker-Dealer Personnel Items
The Post-War Era
If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
-
(Continued from page 1318)
Loan Insurance
and
Corporation,
who spoke to the committee, said
he believed that changes in meth¬
ods
of
building houses in this
country after the war would be
evolutionary rather than revolu¬
tionary, ■ i ;.:,v
Consideration
financial
offered
additional
of
:
which
services
can
to savings and loan
be
cus¬
tomers, along with the financing
of
brought to dis¬
possibility of a "pack¬
age" loan, designed to cover not
only the financing of the house
decent
and
sani¬
(Special to The Financial Chronicle)
ings and loan men on local hous¬
ing authorities and boards would
be valuable in shaping the post¬
developments
war
Perrin, West & Winslow, Inc., 24
rehousing
in
JOPLIN,
Sublett
parture from traditional mort¬
gage financing, the subcommittee
headed by W. W. McAllister, San
Antonio, Texas,
the
to
home
payment
one
all
of
his
saw
'• V
(Special to The Financial Chronicle)
the lower-income groups, as well
as
in
removing
present
slum
II.
buildings. ■>'.
staff
of making
month cover
each
commitmentss for the
home, and also sthe advantage to
the lender, who would then be
aware of practically the full ex¬
tent of the home borrower's obli¬
gations and consequently be able
collection
to build a more realistic
policy.
v'.\Viewing the wartime increases
in the inflow of savings into the
thrift and home financing insti¬
tutions, and visualizing the prob¬
ability that the overall accumu¬
lation of savings in the country
will be greater than the outlet
through mortgage loans, which
have always been the chief in¬
vestment for savings in America,
one
subcommittee set ijtself to
CINCINNATI,
Bell
has
of
OHIO—William
been
added
L.
J.
the
methods
on
the
to
Barth
Co.,
of
ualized the need for maintenance
this
of
after
position
the
war
in
the
business
and its correlation
with the dividend policies of the
Another
angle
of
subcommittee
A
.
with
the
re¬
sponsibility of pointing the way to
participation of savings and loan
associations in the slum clearance
redevelopment
programs
of
cities after the war, pointed to the
successful
precedent
for
local
handling of such problems which
now
exist in the functioning of
local draft and rationing boards,
and in the proposed decentraliza¬
of
tion
some
of
the
other
war¬
Mulkey
MICH.—Claude
joined the staff
MIAMI, FLA.—Bernard Simott-
has
Merrill
H.
Carlson
Ideas which have
F.
arms
of government.
John
Scott,
St. Paul, Minnesota, is
Chairman.
Seeing the demolition
of slum properties as one prob¬
lem
and
the
housing of slum
The
scene on
G.
connected
The Administration further said:.
Mr. Ingersoll was previ¬
ously with Riter & Co.
Tower.
PORTLAND,
banks increased their recordings by 4%
from
Except for individuals, whose totals gained 5%, recordings by
of lenders declined for the month.
all other-types
the first seven months of this year, the aggregate of all
recordings was 13% below the total for 1942 and 23% less than in the
same months of 1941.
Only individual lenders increased their activ¬
"For
ity over the January-: July period of 1942, scoring a gain of more than
5%, The greatest declines were shown for insurance companies
,
27%, and commercial banks .25%. Mutual savings banks dropped
20%, while the figures for savings and loan associations were off 7%,
"The number and amount of mortgages of $20,000 and less
recorded for July 1943, by type of lender, follow:
1
Mutual savings
Amount
Per Cent
33%
39,168
$116,406,000
25,586,000
7
18,914
64,766,000
15,329,000
19
78,594,000
22
13,687
50,835,000
15
-
Other mortgagees
*
Number
*
—
banks
Individuals
.
3,823
companies
Banks and trust companies
Totals
Fire
Losses
Herbert
A.
Exchange
Gratuity Fund.
'
Fronting the Exchange in Broad
Street
was
a war
the U.
by
sisted
of
S.
a;
exhibit installed
Army which
con¬
bullet-riddled
B-17
Fire
and
Risks—
Simon,
Ronald W,
Shephard,
and
Frederick
W.
Sharp—Bureau of Public Admin¬
MAINE —Albert
B. Collins, Philip H. Hansen and
Frank II. Miller have become con¬
Free China's" New Deal—Hhbert
Freyn—The Macmillan Company,
nected with R. II. Johnson & Co., 60 Fifth Avenue, New York City
31 State St., Boston, Mass.
All —cloth, $2.50—to be published
previously were with J. Arthur Oct. 19, 1943.
Warner & Co.
and as the natural source for the
return to
area's
a
the
war
new
needs
peace economy.
Denver
the
steel
should
in
a
from
with ' important
traffic sources to compensate
of
war
German
-v
Arciniegias
Translated by Angel Flores—The
Macmillan
Company, 60 Fifth
Avenue, New
cloth—$2.50.
York
N. •VY.—
11,
.
Labor Legislation of New Jer¬
sey,
The—Philip Charles Newman,
a
foreword by Charles A.
with
Beard
American
—
Council
on
Public Affairs, 2153 Florida Ave¬
Washington,
nue,
C.—paper,
D.
$2.00.
H
of Agriculture and1 Min¬
Maps
eral
in
Industries
the
Territory
Served by the Nickel Plate Road
—Nickel Plate
Railroad, Terminal
Tower, Cleveland, O.
;
,
Pension,
Sharing
Bonus
tional Bank
of the
Profit-
and
Plans—The
Chase
Na¬
City of New
•paper.
Post-War
Backlogs
Busi¬
and
ness—L. Scudder Mott— Econom¬
ics
and
Investment
National
Department,
Securities
&
Research
Corporation, 120 Broadway, New
York
on
City—paper—$1.00
quantity orders on
(prices
request^,
Price Control and Subsidy Pro¬
gram
in Canada, The—Jules Back-
man—The
Brookings
Jackson
722
Institution,
Place, N. W., Wash¬
ington, D. C.—paper—50c.
7/^:7*'■
Public Utility Bonds and
Public
Preferred
Utility
1943
Stocks,
Edition—The First Boston Corpo¬
Thus ration, 100 Broadway, New York
emerge
period
for the, loss
the Conquest of
Sixteenth
Century,
A
Venture
" ■'
western
In
America,
Exchange War Bond Rally
the
in¬
istration, University of California,
Berkeley, Calif.—paper—$1.00".
(Special- to The Financial Chronicle)
Gap! Callus Honored
of
an
City—paper. ■ 7/■/j J, ">■ -;T 777,1'77; /7
'
,
,
A'
.
Renegotiation
—
protest
(A
business and
fuselage,' anti-aircraft guns and
against renegotiation as it relates
crews, amphibious jeeps, a 105- with a stake in heavy industry
to the machine tool industry)—
field piece, 2 beach search¬ unusual for a property operating
primarily in a traditionally agri¬ National Machine Tool Builders'
lights, 2 tanks and 6 jeeps armed
cultural territory.
It is. felt that Association, 10525 Carnegie Aye.,
with machine
guns,
and, also, these
long-term
considerations, Cleveland
6, O.—paper.
German and Japanese war imple¬ which were not reflected in any
mm.
June to July, while the activity oft savings and loan associations rose
Savings and loan associations
Lynch,
Rand
Railroad Securities
theless, recordings were within 1% of the volume for July of 1942,
Insurance
Beane,
■
Federal Home Loan Bank Administration reported on Sept. 4. ,Never¬
..
&
,
month-by-month rise in-' the volume of non-farm
mortgage recordings leveled off during July, when the total of $351,516,000 was only a fraction of 1% greater than the June figure, the
3%.
Fenner
the
Trustees
Taxation—Ken¬
Curran, with
become
,
recent
"Mutual savings
Ingersoll has
with
Merrill
■■
—
Profits
James
fairs, 2153 Florida Ave., Wash¬
ington, D. C.—cloth, $3.50; paper,
MINNEAPOLIS, MINN.—Arch¬ $3.00.
Under a 50-foot American Flag suspended from
lofty ceiling of its trading floor, about 7,000 people crowded
among the trading posts to witness a rally marking New York Stock
Exchange War Bond Day. The rally climaxed a day of extraordinary
War Bond sales effort by the en-#
tire Stock Exchange membership.'
Participating in the rally as
speakers were Secretary of the
Treasury Henry Morgenthau, Jr.;
Vice-Admiral Adolphus Andrews,
Captain John C. Cattus of Kean,
Commander of the Eastern Sea
Taylor & Co., 14 Wall Street, New
Frontier; W. Randolph Burgess,
York City, was guest of honor of
Chairman of the New York State
the Queens Own Guards, the free
War
Finance
Committee,
and
military training academy, at its
Kate Smith. Emil Schram, Presi¬
drillhall, the gymnasium of the
dent of the Exchange, presided.
Jamaica High School, on Friday
Mr. Schram reported that, up
evening, Sept. 24. This unit, or¬
to 4 p.m. $778,458,286 of Third
ganized Sept. 2-3, 1941, is celebrat¬
War Loan Bonds had been sold by
this basic American financial sys¬
ing its second anniversary. Cap¬
the Stock Exchange community
tain Cattus has just been commis¬
tem as were the beginning days for the
period of the Drive to
sioned Master of a Class B ship in
of the institution in January, 1831,T
date. The total sales for the day,
the Army Transport Service and
or the year, 1932, when the Fed¬
also up to 4 p.m., amounted to
will report for duty in the Pacific
eral Home Loan Bank system was
$55,338,870. Mr. Schram pointed
created, giving these diverse units out that the total for the Third area early in October.
He has been an active member
for the first time a central reserve War Loan Drive to date
compared
of the Colonel George Chase Lewis
system. 7. 7.
with Second War Loan sales by
which
the community in the amount of Military Training Group
meets Tuesdays for luncheon lec¬
$500,000,000, and that in the cur¬
New York Bank Stocks
tures and discussions at Au Coq
rent Drive the goal of the Stock
Compared For 3rd Quarter Exchange membership was not D'Or, 129 Maiden Lane, New York
Laird, Bissell & Meeds, 120 only a larger dollar volume, but City. Numerous other prominent
financial district men are attend¬
Broadway, New York City, mem¬ also the aim has been to reach a
ing these meetings while awaiting
bers of the New York Stock Ex¬ greater number of individuals.
their commissions.
Mr. Schram handed to Mr. Bur¬
change, have prepared an inter¬
' ' :im—■■«
"
" '—— •/'
esting analytical comparison of gess the Stock Exchange's check
New York City Bank Stocks for representing
completion of the
the quarter ended Sept. 30. Copies purchase
of $2,000,000 of War
of this comparison may be had Bonds in the Third War Loan
(Continued from page 1297)
from the firm upon request.
:: Drive to date by the Exchange steel men as a permanent accre¬
tion to the territory's
industry
and its subsidiary companies and
i
Excess
(Special to The Financial Chronicle)
of the institution.
■
,
troduction by Alfred G. Buehler—
American Council on Public Af¬
was
trading floor of the New York Stock Exchange was the
Sept. 23 of a War Bond rally unique in the 151-year history
the major
July Mosnis Mortgage Recordings tip Slightly
The
Central
Germans
N, Y, Slock
the
'
with
now
formerly with
Standard & Poors Corporation.
■
time
is
Carlson
Pierce,
come
and
press, International Docu¬
Service, 2960 Broadway,
New York 27, N. Y,-—paper—50c.
Mr.
in the past was with
out of four days of discussion of
June
sity
neth
ibald
ings and Loan League meeting in
Chicago, November 30 ;and De¬
Publication,
Republic Company, Rand Tower.
ference of the United States Sav¬
cember 1.
of National
1943. II. A, 6—Columbia Univer¬
MINNEAPOLIS, MINN.—Carl
Lynch, Pierce, Fenner &
Beane, Buhl Building. Mr, Mulkey
Smith, Hague
& Co., American Industries Corp.
League
ments
Beane, 169 East Flagrer Street.
E.
of
the liquidity
question was ex¬
plored in an inquiry by Philip and Alison & Co.
^
Klein, Newark, N. J., as to the
(Special to The Financial Chronicle)
feasibility of harnessing the assets
of the savings and loan business
GREENVILLE, S. C.—Darrell
in a system which would insure Wade Swope has become asso¬
the
mortgagor's payments and ciated with R. S. Dickson & Co.,
thus approach some degree of true Inc. Mr. Swope was formerly with
liquidity in a mortgage.
McAlister, Smith & Pate, Inc. in
The post-war group will make charge of their Asheville, N. C.
a progress report at the War Con¬
office.
:
and
DETROIT,
States Government Printing
( Of¬
fice, Washington, D. C.—paper.
1920 and How They Were Met—
etti has been added to the staff of
Merrill Lynch, Pierce, Fenner &
T. Taylor, Salt Lake Dixie Terminal Bldg,
Mr. Bell
Chairman of the subcom¬ was previously with the Research
problem, two days in
two
in
September,
presage the far-reaching possi¬
bilities of the final post-war pro¬
gram which grows out of these
devise additional outlets for the conversations around a table, and
funds of saving and loan.
The t the exchange of ideas among the
Chairman,
E.
C.
Duncanson, committeemen and the men who
Spring Valley, Minnesota, stressed operate the other 3,700 savings
that such outlets must be in keep¬ and loan associations in the coun¬
ing with the type of funds they try which the national organiza¬
are receiving from the public and
tion comprises.;!',r
from
The entire field of savings and
institutions,
estates
and
loan ramifications and possibili¬
other organizations.
ties will be explored, under the
George L. Bliss, New York
City, Chairman of the subcom¬ leadership of the committee. As
mittee on Public Relations sug¬ a result, the summer and fall of
1943 may well prove to be as
gested simplification of the termi¬
momentous in the development of
nology applied to the business,
along with other preliminary sug¬
gestions on a, nationwide public
relations program for the busi¬
ness.
,7
7.7/'' ,-;.7 -*
A.
the
to
Thomas
City,
mittee
the advantage associations.
owners
Hubbard
added
C, Christopher & Co.,
118 West Fourth Street.
:
de¬
—
been
- Action
for Post¬
war Jobs and Profits—U. S. De¬
partment of Commerce—United
Europe's Overseas Needs 1919-
expanding Institute of America and prior
savings volume, pointed out that thereto was in business for him¬
the savings and loan system now self as tax consultant.
but of the furniture and
other houseshold effects,
Recog- has the best liquidity it has en¬
Re vis¬ 77 (Special to The Financial Chronicle)
nizing the legal changes which joyed in all its history.
a
MO.
has
staff of B.
(Special to The Financial Chronicle)
itself
would be involved in such
Man's Bookshelf
Federal Street.
BOSTON, MASS. — Russell L.
previously
with
Trust
Funds, Inc., is now connected with
The Business
Community
(Special to The Financial Chronicle)
Davis,
homes
their
cussion the
under
dwellers
tary shelter as another distinct and
separate problem, his subcommit¬
tee held that the service of sav¬
*
$351,516,000
ments.
thau
talk, Secretary Morgen¬
paid
tribute
to
the
Stock
in the bond drive. He also recalled
that he
was
a
strong advocate of
keeping the Stock Exchange
when
in
the
European
war
open
started
September, 1939 and had ad¬
so.
4
100%
Chicago Surface Lines
investment and
Situation of Interest
Purolator Products
Chicago Surface Lines offers at¬
The
Exchange community for its part
vised President Roosevelt to do
1
earnings, should eventu¬
ally find recognition in a wider
speculative regard
for the new company's securities.
pre-war
In his
Mr.
_
Morgenthau praised the Stock
_
,
.
Exchange for having taken
war
in stride.
,
this
Situation of Interest
Purolator Products, Inc., offers
attractive possibilities, according
current situation
affecting
tractive possibilities according to a
memorandum prepared by
ford
& Co., 208
111.,
members
to
Chicago,
New
Chicago Stock Exchange.
interesting basic report upon the
may be had from Rey-
may
Reynolds & Co., 120 Broadway,
York City, members of the
New York Stock Exchange. An
i company
nolds
& Co.
upon
request.
of
this
Brails-
So. La Salle St.,
of
the
Copies
interesting memorandum
be had from the firm upon
request.
price
Offering—Offering
will
be
supplied
by
CALIFORNIA
public
A new
the
to
amendment/.
Following is
list of issues whose registration state¬
a
filed less than twenty
days ago. These issues
are grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
ments
were
will be
with
days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days.
y//y'''.;y
These dates, unless otherwise specified, are as of 4:30
P.M. Eastern War Time as per rule 930 (b).
Offerings will rarely be made before the day follow¬
ing.
delivery
plied to
to
proposed
tion
used
be
of
reduc¬
present bank loans; for working
or other corporate purposes.
capital
Registration Statement No. 2-5220. Form
S-2.
(9-27-43).
1
.
-
-
ment.
.
CHICAGO
filed
received
certain
Address
GAS &
DERBY
ELECTRIC
of its common stock without par
and
stock
This
SEC.
outstanding,
is
the
and
value with
already
shares
issued
They
Corp.,
be sold by Ogden
part of its plan to dispose of its
as
the
of
Act
investments in accordance
Utility Holding Company
utility
public
with
to
are
Public
1935.
Address
City, N.
One
—
J.
Exchange
Place,
Jersey
v.
^ The
Business
is
engaged
primarily in the generation, distribution
and sale of electric energy and manufac¬
tured
company
gas.
■
.
Underwriting—Ogden
Corp.,
after
the
registration becomes effective, will publicly
invite sealed proposals for the purchase or
y
underwriting
of
the
bid
these
of
shaires.
The
result
opening will be filed by amend¬
later.
ment
Offering—Terms will be filed by amend¬
ment
later.
Registration Statement No. 2-5213. Form
S-l. (9-15-43).
;
Co.,: Inc.,
&
Mayer
1958.
,
.
Sedgwick Street, Chicago.
Business—Engaged in the meat packing
Address-—1241
not
are
being offered by or for the account of the
companyv
has filed a
registration statement for $3,000,000 fif¬
teen
year
314%
debentures, due Oct. 1,
Oscar
provision business.
.::.v''%■
Underwriting—A. G. Becker & Co., Inc.,
Chicago, head the group of underwriters.
Others will be supplied by amendment.
and
Offering—Offering price to the public
will be supplied by amendment.
Proceeds—-Net proceeds will be used to
the 2%% notes, maturing serially
to
1951, of the company, in the principal
amount of $2,025,000,
held by the First
National Bank of Chicago and First Wis¬
consin National
Bank of Milwaukee,
re¬
prepay
exclusive of interest, the sum of
The remainder of net pro¬
will
be used by
the company to
quiring,
$2,050,312.
ceeds
receivables and inven¬
tories and larger bank balances, to reduce
the necessity for current borrowings, and
to pay current liabilities.
%
Registration Statement No. 2-5217. Form
additional
carry
A-2.
(9-22-43).
Garfinckel
Julius
/'//'■- '■
.
$25
filed
Inc.,
a
the SEC covering 60,000
preferred stock, par value
5% %
share, and
a
Co.,
WEDNESDAY, OCT.
with
registration
shares of
&
CO., INC.
19,990 shares of
common
Address—Washington, D. C.
The
—
operates
company
a
department store at 14th and F
Streets, N. W., Washington, D. C.; dealing
primarily in women's wear and accessories,
specialty
various
includes
but
other
retail
and
ser¬
departments, the more important being
men's and boys' furnishings and clothing,
semi-precious and precious jewelry, linens
and blankets, glassware, china and lamps,
stationery and luggage, and fur storage
vaults.
"
;
■
.
certificates
trust
shown
-Proceeds
number
of
vertible
6%
tion
To
<•—<
the
company's cumulative
at
8,
dividends
accrued
unspecified
am
con¬
preferred stock on its redemp¬
6ct.
date
redeem
$27.50
from
share
a
The
stock
to
deposit -stock
ment
will
Oct.
plus
1.
"
1
Underwriting—J. G. White &
for the 5V2% preferred stock.
Co.,
.
Offering—The
be sold only to
holders
of
the
F-l.
before
Sept.
1, 1944, an aggregate
of 19,990 shares of $1 par common stock,
fully paid and non-assessable.
Registration Statement No. 2-5214. Form
or
S-l.
(9-15-43).
BOND
First
The
MORTGAGE
&
Bond
&
CO.
Mortgage
filed
Co.
a
registration statement with the SEC cover¬
ing
shares of
certificates
trust
voting
stock
common
for
1,400
par value.
O.
no
sale trustee.
Office—Glendale, Calif.
presently
outstanding
$651,100
amount of 6%
first mortgage
bonds due Oct. 1, 1944 on
Jan.
1, 1944.
Registration Statement No. 2-5218. Form
fund
THURSDAY, OCT.
POWER
DELAWARE
Delaware
Company has filed a regis¬
for $20,000,000 20-year
due Oct. 1, 1963, and 374,391
statement
shares of common stock,
The
share.
tures
interest
be
will
Address—119
York
City."
by
West
deben¬
40th
Street;
is
smoking and
New
In
.
Underwriting—The
stock
will
new
be
the
selling
chewing tobaccos,
cigars.
common
the
engaged
manufacturing
and
of
cigarettes,
and
on
amendment.
.
Business—Company
business
par value $10 per
rate
supplied
is offered
issue
be
debentures
underwritten
and
by a
supplied by amendment,
Offering—Offering
tures
to
the public
of the deben*
will be supplied by
amendment.
The 374,391 shares of com¬
mon
stock are
being offered to present
business
close, of
rate
of
price
stockholders
common
of
at
record
the
on Oct. 4, 1943, at the
of a share for each share
of one-fifth
held
stock
common
at
a
to
price
be
supplied by amendment.
The subscription
warrants will expire at 3 p.m. on Oct. 15,
1943.
New
debentures
scheduled
fund
to
will have
retire
50%
sinking
a
of the
issue
maturity.
by
'
the
from
be
to
are
the sale
applied
to
bid¬
/:'
utility
public
a
of
State
operating
offered
be
bonds and stock are
company for sale at
and the names of the
be supplied by amend¬
the
by
bidding
will
Offering—Offering price of the bonds
preferred stock to the public will be
furnished by post-effective amendment.
Proceeds—Net
proceeds from
the sale
of
bonds
and
preferred stock,
together
with
a
portion, to the extent necessary,
of
$6,287,063
cash
received; from
the
United Gas
Improvement Co., parent of
the company, in connection with the issue
and
sale
and
of
be received
by the
of the debentures
the
payment
at
or
the sooner purchasing,
of
company's 7% gold bonds due Oct. 1,
1944, presently outstanding in the aggre¬
gate principal amount of $5,209,600.
Bal¬
common
stock of
Delaware
to
be applied to redeem in¬
preferred stocks of Dela¬
ware
Power & Light Co.,
Eastern Shore
Public Service Co. to be merged into Dela¬
ware
and Maryland Light & Power Co.
U.
G.
and
aggregating $24,822,913.
.
Registration Statement No, 2-5219. Form
S-l.
(9-25-43).
SATURDAY, OCT.
CHICAGO
Air Lines, Inc.,
has
filed
a
registration
statement
for
107,989 shares of common stock, no par
Chicago
Southern
&
the
Of
registered,
shares
60,000
be evidenced by voting trust
certificates
registered
under
a
separate
shares,
to
registration
to
statement—see
be
at
derwriters
a
offered
by
proposed
statement
be¬
or through un¬
maximum public
offering price not exceeding $16 per share
and not exceeding in the aggregate $960,000;
the
pursuant to options, at $8 per
share, being an aggregate public offering
price of $383,912.
Address
Municipal Airport, Memphis,
of
ceived
.
be
the
the
such
from
proceeds
of
sale
and
common
proceeds
stock
are
re¬
to
applied to the payment or reduction of
company's short term loans payable to
banks
aggregating
$19,000,000, and
after
will
payment
be
capital,
added
of
to
expenses,
the
any
company's
balance
working
(9-21-43).
■,
shares
are
registered for
—
Tenn.
Business—Operates as an
Chicago,
oetween
air carrier of
between
La., and
mail
and
express
111., and New Orleans,
Memphis,
Tenn.,
and
passengers,
Houston,
Texas.
Principal
underwriters
Kebbon,
McCormick &
Co.,
named
are
'.
more
have
but
ago,
to
'•
<
of Boston;
an
investment company,
Trust*
shares which are
public at the liqudateffect," plus a loading
the
then
in
Street,
principal
marketable,
to
EXPORT
of
of
the
AIRLINES,
par; value
Address—25
Business—Is
tween
tary
shares
share.
York.
654,000
certain
mili¬
Inc.,
underwriters.
in
the
to
date of
the prospectus
stock
of
titled
to
of
$18
the
5
5/9
shares
share
for
each
receive
per
at
are
en¬
the price
share
of
the
steamship company preferred stock.
the
to
surrender
steamship
H.
M.
all
company
of
the
fications
of
-maturity
5Vu%
Oct.
10,000
with
the
steamship company.
sold privately in
its preferred stock
company
shares
Of
warrants
attached
of
to the
company
of
the
airlines
advanced the
and
gross
&
the
tion Statement No.
rants
of
the
See
attached
,
'
(8-19-43).
effective
becom*
■
to defer
date.
Gas
au¬
S-2.
Light
Co.,
&
subsidiary
a
Gas
registration statement with
$7,500,000 of first mortgage
due 1963, and 20,000 shares
lative preferred stock,1 par
share, on which sealed bids
filed
Co.,
Address—243 Peachtree
of
a
*
-
St., Atlanta, Ga.
primarily
in the
distributing and
municipalities in
Georgia, and manufacturing, distributing
arid selling artificial gas in five munici¬
palities in Georgia and two in South Caro¬
lina.
Incidental to the promotion of its
ity
company
engaged
business
of* purchasing,
selling natural gas in 20
business, the company also engages in the
merchandising of gas appliances.
It has
been
continu¬
ously since 1856, except when its plant
was damaged
during the Civil War. '■»"
engaged
in the
sale
-
$1
Crowley, Milner & Co. have filed
istration
sinking
statement
fund
and
1962.
for
.
a
$996,500
debentures
$1,245,600
reg¬
debentures
,*
.
to
debenture adjustment
ital
stock
bentures
issued
tures
extended
as
through
holders
of
general
mortgage
bonds,
1955, 4%%, at 104, and $2,150,-
principal amount of general mortgage
bonds, 3'/2%, series due 1961, at 104y2,
and to the redemption of 13,000 shares of
6% cumulative preferred stock at $110 a
share,
,y
added
the
of
the
to
;
,
,
be
present
company
1943,
to defer
/
.
John P. Hooker, E.
A.
Wheeler and F. Hampden
of
old
due
to
under
trustees
as
1952
are
to
soon
Chicago.
Oct.
becomes
after,
effective,
are
presently
agreement which
trust
.1943%
1,
the
l,
y'
.
practicable
aa
securities
stock
a
Oct.
extend
.It
agreement,
1953.
is
proposed
to
amended,
as
to
:/
•
Registration Statement No. 2-5204, Form
,(8-20-43).
;/
Registration
statement
effective
3:15
F-l.
,
EWT
p.m.
debenture
of
plan
Drive,
statement
Purpose—The
of
adjustment; extending maturity
modifying indenture provisions.
registra¬
.
Shore
Lake
subject
expires
be
to
a
Address—Principal office Room 1730, 23^
Clark Street, Chicago.
;
/
Business—Apartment building located at
Offering—As
plan of cap¬
5%% de¬
a
filed
have
statement for voting trust certificates
28,209 shares of common stock, pari
per share, of Drake Towers, Inc.,' '»•
registration
deposit to
sinking fund deben¬
5%%
1946
T.
Underwriting—Non*.
-.
Farmer
The
certificates
and
The 4%
Sept.
on
4,
1943.
date
FIDUCIARY
exchange for
31,140 shares of $50 par prior preference
stock-on basis of $40 face amount of de¬
COUNSEL, S. A., INC.
Fiduciary Counsel, S. A., Inc., has regis¬
tered 20,000 shares of 4% non-cumulativa
preferred/stock, par $100 per share; 20,-
bentures
000
debentures
will
be
issued
in
plus $10 in cash for
stock under plan of
share
one
of
(6-30-1943).
■
.*
•;,
,
Washington,
■
Stop order proceedings discontinued and
regikration
statement
withdrawn
Aug.
3,
1943.
,
Business
26,
1943,
MILLING
&
ELEVATOR
CO.
their
It
and
Connecticut
oumulative
without
reserved
convertible
value,
par
for
par
issuance
the
cumulative
The
i
dividend
filed
by
Address
and
stock;
shares
of
conversion -of
upon
convertible
rate
preferred
269,231
$1, representing shares
"on
preferred stock;
Equitable
stock
will
Building,
Denver,
Business—Engaged
in
the
turing
Registration Statement No. 2-5211. Form
(8-31-43).
wheat, other grains,
the
is
laws
of! following
In
the
to
directly
business
and
of
through
manufac¬
June
State
of
engage,
activities:
in
As¬
enterprises to expand
South
advisors
to
American
North
coun¬
American
American
ing solve
financial, engineering, production and
marketing problems; handle for North and
can
South
American
tribution of
manufacturers
and
Central America
North
ties
and
sell
American
and
Central
invest
products
in
dis¬
real
of
estate,
enterprises
South
America
South
as-agent
manufacturers
in
business
and
the
their goods in South America;
manufacture
selling flour, meal, feed and elsewhere.
related products and of buying, and selling 1#
Underwriting—The
■
of
proposed
on
companies In helpT
their Central and South AmerlZ
products;
|
subsidiaries
as
Avenue,
incorporated
America
preferred
amendment.
—
act
and
C.
American
South
common
Class B common.,
par
Was
activities
tries;
registration statement for 70,000 shares
D.
more
or
Colorado Milling■& Elevator Co. has filed
be
Class A
par
no
1025
under
sist North
COLORADO
Col.
no
—
Delaware.
one
i
a
of
—
.
Registration Statement No. 2-5176. Form
S-l J
shares
v
20,000 shares of
capital stock readjust¬
Address
ment.
Underwriting—To be filed by amendment.
S-l.
and
readjustment.
cominon stock,
amount
reserved for issue
common
Cohrs,
John
171-179
due
..
.
and
,
of gas
the
series due
In,
South
5%:%
extended
as
4%
Address—Monroe Avenue
Street, Detroit,"Mich.
of
cipal
L.
Winston
CROWLEY, MILNER & CO.
extent that funds are avail¬
able to the redemption of $5,875,000 prin¬
to
ex-,
(8-3-43).
W.
'
Proceeds—Net proceeds, exclusive of ac¬
crued interest and dividends,
will be ap¬
plied
are
1943.
31,
exercise.
DRAKE TOWERS, INC.
y::.-/"/'.1 iy-y
■,
Business—Department store and general
business,- at retail.
y
Purpose—Company proposes a plan of
the SEC, for
bonds, series
of 5% cumu¬
value $100 a
will be asked.
\
■
.
warrants
Aug.
presentation of war-;
company is registering
/ Amendment filed Sept. 4,
effective date.
Registra¬
for
v
Electric
in'
Each
and used
for general corporate purposes.
:
:
Registration Statement No. 2-5194. Form
mercantile
Atlanta
to
shares
tion
ATLANTA GAS LIGHT CO.
Consolidated
,
2-5176.
(7-5-43).
1952
1943,
The
the
balances
cash
1943.
'
Sept. 4,
113,004
subscriptions.
before
Proceeds—Will
proceeds
\
filed
v
delivered
were
the
or
exercise
such
upon
company
Registration Statement No. 2-5203. Form
Amendment
for
Tittle,
shares
these
to
stock
of
of
36,000 shares of
Registration Statement No. 2-5175. Form
D-i.
y
.
aggregate of 36,000 shares
share.
on
anticipation
1,
various modi¬
indenture.
-
y
CORP.
TOOL
their
to
per
erasable
from, May
and
$4
at
Co., Chicago,
date
debentures
31, .1952
1
.
warrant gives the holder the right to pur¬
chase the number of shares named therein'
,
sale,
void.
S-l.
...
Stop order proceedings discontinued and
registration statement withdrawn Aug. 3,
$1,000,000,
to
the airlines
company. The steamship company through
the sinking fund provision is retiring 2,100
shares of the preferred stock So that war¬
rants
%;■•
J"
its readjustment manager.
Offering—Call for deposit of bonds un¬
of debenture adjustment.
Purpose—Purpose of requesting deposits
is to ask depositors to consent to an ex¬
tension
;
-
.
16, 1943, to defer
.
&
common
underwriters
proportion
Farmer
as
1946, to
steamship
and
Avenue
Preston
'
'
MACHINE
such
the
Business—Character of business done by
original issuer is a department store and
general mercantile business, at retail.
Underwriting—Company has engaged the
of
/
date...
warrants for an
of
'
thorized
1940
reg¬
de¬
preferred stock of the steamship
company
lines
a
de¬
services
com-'
f
CO.
certificates
Street, Detroit, Mich.
the
—
of
it may acquire, and each share
of preferred is to be paid for by cancelling
$100 of the indebtedness owed by the air¬
of
as
$996,500 5^% .sinking fund
due 1946. >
Address—Monroe
funds of
Doyle Machine & Tool Corp. has regis¬
36,000 shares of common stock, $t
par value.:
■
.
..
'<
»
Address
320-6. West
Taylor
Street,'
Syracuse, N. Y.
•••*:
v••
Business—Engaged ; in the manufacture
of machinery, tools and parts.
*
Underwriting—None stated.
Offering—In connection With public of-',
fering of 113,004 shares of common'Stock'
in October, 1940, .common stock purchas©
,
&
of the balance due
from a finance com¬
(8-18*43).
DOYLE
Sept. 10, 1943, to defer
for
be
tered
der plan
Purpose—Upon the exercise of any war¬
rants the airlines company is required to
shares
same
statement
bentures,
warrants
At the
company
(8-27-43).
shares;
prices to
amounted to $35,000 on July,
Balance of proceeds
will be
Amendment filed Sept.
effective
:
.<
at
repayment
procured
which
1943.
S-l.
if
posit for
holders of preferred
steamship
1943.
and 6,900
B
Class
of
shares
Crowley, Milner & Co. have filed
company.'.
payment of the purchase price.
of. these
liquidating value remained the
CROWLEY, MILNER
5% cumulative pre¬
parent, American Export
attached
stock
preferred
the. Sale
•
-)>■<"
Registration Statement No. 2-5202. Form
$5,-
istration
of
steamship
a
value
the
loan
a
31,
'■%»/-„■
receive
Class A
stock
placed in the general
pany.%5 *■;/,"
Inc., from
liquidating
Trust .would
Amendment filed
of
shares
& Co.,
for
subsidiaries to'
or
personal
loan
amendment.
by
pany,
effective date. %
shares are issuable upon
capital
stock
purchase
warrants of the airlines company attached
7,900
from
July 20,
S-5.
in, the Caribbean 'and South
contract with the Navy.
exercise
on
trust
Registration Statement No. 2-5208. Form
Offering—The
to
the
on
under
Underwriting—No
the
time to time at the
outstandingshares. ;
operations be¬
States and
to Harriman Ripley
Proceeds—The
in. air . trans¬
the United States
conducts
United
the
bases
America
cash
engaged
now
and
and
• 'r',;» ;.,v;--v
•' •
Underwriting—Harrimian Ripley & Co.,
principal underwriter,
A
Offering—The
present
offering
com¬
prises 200,000 shares authorized by
the
Tru$tees on July 20, 1943, for sale for
INC.
per
Broadway/ New
port operations between
Europe,
$3
an
shares
of
banks
Wil-i
2, -1942,
Jan.
on
small
"
>
to effect the sale of 250,000 shares'
toward
represent
list
diversified
a
companies,
:
Street,
'
.
Hodson & Co., Inc.,;
is not obligated to purchase any part of*
the stock.
■
/• y
Proceeds—Corporation intends to apply
the net proceeds. from the sale of stocky
Inc.-
Export Airlines, Inc., has filed
stock,
capital
in
insurance
B.
.
organizing
the
common
filed
companies. /.
us.
registration statement for 43,888
of
which will
and
investment
in
of comihon stock
Boston."
object
of
purpose
ration,
.
Federal
:
*
'
*
200,000.
Address—30
of
whose
deter¬
been
not
'
business.■' %
./,/%-/v.*.'.>
Underwriting—Hodson & Co., Inc., New;
York, is riamed principal underwriter, " y;
Offering—Company has entered into an;
agreement with Hodson & Co., Inc., pur-'
suant to which
the latter has agreed to;
use its best efforts, as agent of the corpo-.
,
"
*
Class
West/ Tenth
Del.
Business—Formed
the
is
to
enable
investors
to
acquire
through purchase of its shares, a security
moderate
price which will be readily
—
Chicago, and I. M. Simon & Co., St. Louis,
•'
stock,
common
engage
"finance
of
Issues
i
CORPORATION
CAPITAL
Address—100
of 7% of the offering price (ap¬
proximately 7.5% of the liquidating value).
-
000
Underwriting
v
Registration Statement No. 2-5216. Form
S-l.
and 47,989
issuance,
value
• - '
^
Shares
charge
of
20,
pre¬
-
Capital Corporation has filed a
statement for 250.000 shares;
of common stock, Class A, and 6,900 shares-
•;
■
TRUST
diversified
be offered
to
Business—Company is an operating util¬
16
SOUTHERN AIR LINES, INC.
&
maturity,
ance
a
will
I.,
value.
list
a
$3.
Crown
Sept. 11, 1943, to defer
*
'
registered
jjBg
statements were filed
unknown
are
AMERICAN
The
Delaware.
Underwriting—The
low—are
Proceeds—Proceeds to
company
competitive
for
ding, but is not to exceed 4.4%.
Address—600 Market Street, Wilmington,
debtedness
\
.
banking group headed by Lehman Brothers
and Smith, Barney & Co.
Other members
will
has
ment.
LOrillard
debentures,
■»
Delaware,
Co.,
series
3%
competitive
COMPANY
as
first
bonds
underwriters
LORILLARD
mei-ger
Co.
statement
covering
mortgage and collateral
to be dated Oct. 1,
1943,
and due Oct.
1, 1973, and 40,000
shares of preferred stock, cumulative, par
$100 per share.
The dividend rate on the
preferred stock is to be named by bidders
to
P.
14
registration
$15,000,000
in
has
The
warrants are
exercisable by the transfer
to
the airlines company of the shares of
consti¬
into it of Eastern
Light
Service
Public
a
when
or
dates
or
ferred stock of its
CO.
LIGHT
&
&
Power
the
after
Business—Is
(filed
Statement
SUNDAY, OCT. 10
tration
"'//J;'///";/
(9-24-43).
filed
below
.
Sept.
have'
postponed subject to call by the trial
mington,
:
'
SHARES
Century
open-end
OF OFFERINQ
days
mined
Lines,
'
In San
Francisco) No. 2-5215. Form F-l (9-20-43).
P.
company, to retire in
(6-29-43).
CENTURY
unless
,.
,
-
.
hearings scheduled for
stop order proceedings
on
CROWN
cancellation.
for
effective date.
agree¬
%'
present
offering
the
Shore
the
1944,
1; 1968.
examiner.
held
security for such note will
as
Amendment filed
ex¬
at
SEC
1943,
been
trust
and
from issue and sale
used, together with
be
the
of
be
principal
Del.
C.. Logan,
Registration
will
bonds
will
public
to
the
amendment.
funds
tuted
1,
face
Registration Statement No. 2-5172. Form
common
(9-27-43).
DATES
underwriter.
named
is
Proceeds—Proceeds
trust
SATURDAY, OCT. 9 '.%■
FIRST
fur¬
company
Business—The
registra¬
first
office
of
Installment'note
surrended
S-l.
by the voting trustee.
American
Offering—Price
(Com¬
pany's outstanding bearer warrants which
entitle them to purchase at $12.50 a share
on
Cincinnati
supplied by
S-2.
of
The
14,
/
.
the
stock
ferred
Balance of proceeds
the balance then due
pay
$3,000,000 of
amendment filed Aug.
dividend rate on the
in
fixes
of
the
be
Registration Statement No.' 2-5221. Form
4%%
stock shares will
common
the
Inc.,
under
Oct.
to
of
registration
aggre¬
persons
holders
to
terminate
extended
..
sinking
offer
the 3%
in the
certain bonds
$641,300.
(8-6-43).
Company
1943,
$641,000 face amount of the company's
first mortgage trust gold bonds pledged by
ercising stock purchase options and acquir¬
ing shares
of
common
stock
pursuant
thereto.
of
used
voting trust
to
A-2.
trust
first
sale
.
to
Registration Statement No. 2-5196. Form
by Bank
of America National Trust & Savings As¬
sociation.
Upon the payment of such note,
UNDETERMINED
filing equipment,; stationers goods
filing supplies. /■
V
'•/ ../•
Underwriting—W. E. Hutton & Co., of
full
offered
be
the
of
the
from
proceeds
net
debenttires due June
vertible
gold bonds, 5% series of 1956
outstanding after giving effect to
be
oil
bonds
Business—Manufacturer
the
will
all
surrender of
will
stock as
common
in statement above and
certificates
Ohio.
other
an
electric
redeem
amount
vot¬
a
Representing
60,000 shares of
gate of
twenty
and
of
president and
to
be
to
;the
state¬
/
sole
director of
the company.
v.
.'■■ ■
Offering—As soon as practicable after
the effective date of the registration state¬
ment.
Under
the
terms
of
the
voting
trust
agreement there may be deposited
thereunder any authorized shares of the
capital stock of the corporation.
It is
also proposed to offer to the public voting
is
whose registration
niture,
vice
Carleton
trustee,
ing
•
to be dated Oct. 1, 1943
and due Oct. 1, 1953.
;
Address—5025
Carthage
Avenue,
Nor¬
wood,
trust.
Putnam,
above.
its
the
with
public
,/
.
sale of the,
the
from
15-year 4% sinking, fund debentures, pro-'
posed to be sold privately, are to be used;
to redeem on or before Oct. 15, 1943, the
presently outstanding $6,500,000 5% con-;
by the company from the sale
of
together
received
be
mortgage
'
•.
registration
13
a
$650,000
for
statement
Memphis,
Airport,
•/-/■
ment
CO.
Globe-Wernicke Co. has filed
mortgage
stock, $1 par value.
Business
GLOBE-WERNICKE
tion
used
i'iUnderwriting— See
We
JULIUS GARFINCKEL &
%
-
Inc.
Lines,
Municipal
—
-
Air
Business—Voting
CO., INC.,
&
MAYER
OSCAR
CORP.
Derby Gas & Electric Corp., a subsidiary
of Ogden
Corp., registered 91,577 shares
1, 1943, for 500,000 shares
stock, no par value, of Chicago
Southern
stock,
together with funds
of
properties, will be
Proceeds—Proceeds,
.
ment dated Oct.
of
and
Proceeds—Proceeds
preferred stock will be supplied by amend-'
ment.
% ;'yV. v
registration statement for voting
trust certificates under voting trust agree¬
common
Offering—Offering price ito the
be supplied by amendment..
'"/V
has
Principal
—
will
Offering—Price of both bonds and prior
trustee,
voting
Putnam,
•"
LINES, INC.
a
Tenn.
MONDAY, OCT. 11
MONDAY, OCT. 4
SOUTHERN AIR
&
Carleton
com¬
others.
and
underwriters
are Union Securities Co., n. Y.;
Boettcher
&
Co.,
Denver;
Bosworth,
Chanute,
Loughridge & Co., Denver; Paul H. Davis
& Co., Chicago, and Hornblower & Weeks,.
n. Y.y."%
•'
>■
Eighth Street, Riverside,
V/ '::.*■■■■ •%'-^//V
•:
other
and
grains
farmers
for
Underwriting
.
present
or
modities
Business—Engaged
in
the generation,
transmission, distribution and sale of elec¬
tric energy.
;
%-/'
-ft /•'
Underwriting—Principal underwriter for
the bonds is Dillon, Read & Co., New York,
and for the preferred stock Stone & Web¬
ster
and
Blodget,
Inc.,
and
Bosworth,
Chanute, Loughridge & Co., Denver. Other
underwriters
will
be
named
by amend¬
of the following
additional equip¬
routes or on
of
on
routes/ payment
new
be ap¬
may
more
or
Purchase
purposes:
Address—3771
Cal.
proceeds
cleaning/ beans,
Series due 1968, and 40,000 shares
5VV% convertible prior preferred stock, par
value $100 per share. ;
' •••
•; ;• %>
concurrently
stock to the
or
common
net
one
any
prior to
of
Electric Power Co. has, 'regis¬
$16,000,000
first mortgage 'bonds,
33/i%
/,
■
Proceeds—The
ment
is twenty
terminated
the
underwriters.'
Thursday, September 30, 1943
cellaneous-merchandise.
Also engaged:1 in
business of.-storing, grinding, saqking and
ELECTRIC POWER CO.
California
tered
voting
trust
under
which
the
common
shares, registered will be offered will be
dated Oct. 1> 1943.
The old voting trust
the
<•'
THE COMMERCIAL & FINANCIAL CHRONICLE
1322
of
such
commodi¬
in
or
North,
perhaps
and
beans,
coal and mis¬
made
offering
through underwriters
or
will
not
be
dealers but
■
158
Volume
Business—Is
will
be made directly by the company. % 4
Offering—The preferred stock is to', be
its par value of $100
per share
'ahd the 'shares of Class.' A and;,Class,;B
common
are
to be sold at SI per share
sold-at
and
respectively.
Shares of Class A and B
can
only be purchased as part of and
together with the purchase of an equal
number of shares of preferred stock.
Proceeds—For working capital.
Registration Statement No. 2-5193. Form
.
(8-2-43), u"...
FUNDV
transmission
its
and
wholesale
Nebraska.;"'
Beecroft;
Wood
United
Trust
Co.,
&
Pierce
625
Minneapolis,
Fund,'
Industrial
Bigelow-We'ob;' 'Inc., '
•Shares.'/ • /
•"•
INC.
Inc.
4-
V
.
MUTUAL
will be made
.44..
S-l.
C,
Balch,
Waggener
F.
July 17,
of
5%
$20
under
registration statement with the SEC
voting trust certificates for 508,200
shares
of
common
stock,
par
$1
per
share, of Pacific Mutual Life Insurance
Sept^;:13,,.'1943.':i';v-'^VV>^ :?4
Spring
St.; 'Los
office,
523 "West Sixth St.j Los Angeles, Cal.
Financial Industrial Fund, Inc.;
has filed
a
registration statement for 600 cumulatlve
(full-paid)
investment
certificates
i calling for' the purchase of Financial In-'
Fund
shares
Amount 'of
the
in
$600,000;
950
systematic
(periodic- payfmenti investment certificates providing for
[ total payment of $1,140,000, and 50 sys-*1
'
tematic
certificates
investment
(with
iil-
<
p.m.
CUSTODIAN
Address--50
Underwriting—None.
Offering—Proposed
trust.
offering
Um.
price to the public of the securities being
registered is $1,800,000.
Approximate date
(of proposed public offering is Aug. 17,
p.m.
1
1943.
4"
?;44-"Z":''*'
/'/>//.
;
4;V,
'
:
Proceeds—For
investment.f
Registration Statement No; 2-5189; Form
,
• i 4/4444 4>4/
statement
effective
5:30
Sept.' 13, 1943;-'/Z:;/4:;:44;4:/
;S-6.. (7-26-43).)
i
1
Registration.,
•
EWT on
p.m.
^
^
i
'
\
'
''
FLORIDA
'
Power
SEC
with
•*." "
POWER
Florida
',
'
*
V
'
""
r
•'
CO.
Co. reglstereo
Light
First
$45,000,000
,
Fund
ing
i and
140.000
Stock,
;
1
$100
Bonds
-
and
rate
on
Mortgage
shares
plied by amendment
Address—25
S.
;
E.
Second
'
.
&
Preferred
stock, will
'
the preferred
Business—This
,
Cumulative
Par.
Interest rates on the
Debentures, and the dividend
; Fia.
Power
Light
■
Ave.,
V
Miami
American
Bond
&
Share
: the
Underwriting ana Offering—-The securli ties registered are to be sold by company
under
the competitive bidding Rule U-50
I of the SEC's Public Utility Holding Com¬
Act.
Names of underwriters and
to public, will be supplied by postamendment to registration state-
pany
price
effective
ment 44' 4
f". Proceeds
i
:
i
i
.
will
be
■.
4'
applied
follows:
as
stock, no par.
Further de: tails
to
be
supplied
by
post-effective
/ amendment
4.
:
Registration Statement No. 2-4845.
Form
!
'
preferred
A2.
j"
5:30
4;
;
Congress Street,
:'•'.: Offering—At
/
.
/ ;•..
4. '
statement
effective
4, 1943, as of
EWT July 18, 1943.
,4.;;
p.m.
KEYSTONE CUSTODIAN FUNDS,
shares,
(9-17-4D
ings
certificates
of
Address—50
INC.
Business—Investment
also
the
Steel
Indiana
Products
par
to
the
notes
trusst.
.
(6-29-43).4
EWT
effective
4, * 1943,
Aug.
on
EWT July
p.m.
;4;44-44;-i4/v,-.4,:^4
■■ ::
statement
Registration
p.m.
due
/. /,
1943.".
18,
4
KEYSTONE
CUSTODIAN
Address—50
Street,
Congress
to
war
program,
and
in
the
market,
stock so con¬
verted, and after that date, at the rate
of two shares of common for each share of
for-each
(8-25-43).
11, 1943. to defer
effective date.
<
•
statement
has
.r
effective
5:30
been
Natural
Gas
GAS
CO.,
Co.,
Inc.,
registration statement for 12,of
$5
cumulative
preferred
par value.
Address—Phillipsburg, Kan.
has
500
filed
a
shares
stock,
without
4; ,4:/'4".' 4''4;\". 444 4v'/' '.44
4
Registration Statement NO. 2-5212. Form
(9-3-43)..: ,,>44" '.
S-l.
,/•
RESEARCH
&
,.
'.:44-4; •''
Registration
statement
effective
p.m. EWT on Sept. 23, 1942.
TRANS-OCEANIC
Trans-Oceanic
AIR
Air
LINES,
Corpora¬
Address—120
Broadway,'New York City.
Business—Investhieht trust. '.4/4/;/-. '
be
to
of
stock
without
par
; •
Building, Wilmington,
.
4.4
■■•/',
.
value.
Pont
Address—Du
Lines,
Helen
Securities
&
Re¬
tion
HOTEL
sold
applied
will
land
by
be
National
York,
and
commercial
water
air
lines
all
.'444.4 444< 444
statement
filed
$564,000
for
a
registra¬
first
mortgage income bonds of the Netherlands
1'
Hotel.
located
City,
10-year
off and
Bank
at
Hotel
Main
3831-39
property is
Street, Kansas
three
Offering—First
originally
Canles
issued
Building
$600,000.
$564,000
in
new
and
apartments.
mortgage
bonds
were
Nov. 1, 1927, by McCompany in the amount
on
aggregate
amount has been paid, leaving
face
amount
of
bonds
unpaid
$36,000
default.
It
is
of
the
proposed
that
the
bonds
aggregating
$564,000
face
•imount will be exchanged for the present
bonds
now
terest
coupons
to
the
outstanding together with in¬
attached or
appertaining
same.
In
effecting
its
$100,000
in¬
May, 1944,
flight
the
of
the
will be limited to 250,000
bf
if
paid
$1.10
a
$1
and
exchange
United States currency
if paid in Canadian
in
share
.
—
For
organization expenses,
capital and Investments.
Registration Statement No. 2-5192. Form
Proceeds
(7-31-43).
Russ
is
fleet
in
business
ships
cargo
as
coastwise
of
of the
Witter
&
&
Inc.,
Co.,
4,
Co.
and
:
)
Offering—Of the authorized 800,000 com¬
mon
stock shares, 799,969 are held by a
number of individuals.
The 200,000 being
offered will be sold by,Some of these/and
their
identity
will
be
disclosed
in
an
to "be
amendment
filed
and
shares
$100
par
Business
—
underwriter
Columbia
—
•*
Senator
electric
utilitj
&
Electrl'
costs
filed Sept.
9,
1943, to defer
date.
incomplete this week)
(ThiS list is
Mills
has
registered
$639,000
5Vifo first mortgage bonds, dated Feb. 15,
1943, due Feb. 15, 1963.
Address—Augusta, Ga.
44,J:
"../'
Business—Company devotes its activity
almost entir'ely to cotton textile by-prod¬
ucts
waste.
or
Underwriting—No
agreement has been
formal
underwriting
covering
entered Into
the exchange
offered.
Offering—Under a plan
tion
Riverside
Its preferred
preferred
amount
der
1,
stock,
the
cash
stock
1943
Dec. 31,
in
issued
(but
1943).
of the Peoples
Light & Power Co. offers an in¬
teresting situation according to a
memorandum
being
distributed
New
York
reorganiza¬
way,
of the New York Stock
each
for
and
that
75%
on
and
or
extended by the board
The bonds of this issue
Wyeth Visiting N. Y.
Wyeth, Jr., president
Harry B.
of
Street, Los Angeles, Calif., mem¬
be
retire and shall not
disposed
of
for
any
other purpose.
acquire an
amount of
exceeding $120,000 through the
exchange of preferred stock purchased by
it, Johnson, Lane, Space & Co., Inc. has
Should
bonds
company
not
agreed to buy
erside
Mills
any
such bonds which Riv¬
desires
to
sell
at
not
less
bers
of
(Dem.,
N.
member of the
a
lacks
definite
a
military force
aggression.
The
two-
M.)
com-
^
pledge to use
future
to
prevent
Fulbright
proposal would
record merely as
favoring United States participa¬
put Congress
on
tion in
"appropriate international
machinery" with power adequate
to maintain peace.
The
to
proposal
force
use
is the keynote
of
a
military
resolu¬
tion offered by Senator Hatch and
Senators
Hill (Dem., Ala.), Ball
(Rep., Minn.) and Burton (Rep.,
Ohio) which the subcommittee is
c o ns i d e r in g
.T heirr c
Fulbright
other
and
measure,
pending proposals appear likely to
give way in the committee to a
compromise statement expected
to
be offered later by Senator
Tex.)
(Dem.,
Connally
chairman
of the full committee.
Passage of the Fulbright resolu¬
was noted in these columns
tion
1192.
Further Newsprint Cut
Board on
Production
War
Sept. 28 ordered a further cut in
consumption
of
newsprint by
newpapers
ter
this
of
during the fourth quar¬
year said Associated
Washingto'4 on
*
Press advices from
Sept. 28, and from which we also
take the following:
H.
M. Bitner,
director of W. P.
printing and publishing divi¬
sion, said the reductions in per¬
missible total usage would be¬
B.'s
effective Oct.
come
reductions
will
be
1.
Required
figured on a
scale
in
combination
previously ordered slashes.
Smaller users Will hot be so dras¬
with
tically
curtailed
as
publishers
using 500 toii$ or more a quarter,
who will be required to cut a full
10% from the base total calcu¬
lated on 103% of net paid circula¬
tion.
The
new
order
again
exempts users of less
a
&
the
than 25 tons
quarter.
The
for
sliding
reductions
users
users
The
Wyeth
a
of 50
of
scale for calculat¬
ranges from 5%
tons to a full 10%
500
tons
or more
a
quarter.
request.
tire
preferred stock or to reimburse the
company for preferred stock which it may
purchase before
plan
becomes
effective,
by
mittee, told reporters he regarded
the
House-approved
Fulbright
measure as unsatisfactory because
for
H. B.
Hatch
who is not
Copies of this memorandum may
had from Ira Haupt & Co.
be
ten¬
before
ratified
until
thirds vote of the Senate.
ing
shall only be exchanged for preferred stock
or sold to raise money to purchase and re¬
and which it does not
treaties, which cannot become ef¬
Exchange.
upon
The Senate holds the
own.
fective
outstanding
same
exchange
share
Senate
constitutional authority to advise
the President in the negotiation of
Broad¬
City, members
the
holders
reporters
the
desire to pass a resolution
of its
by Ira Haupt & Co., Ill
to
provided
stock accept the
their
Sept.
of
in
Preferred stock
of
offers
stock in exchange therefor
in first mortgage 5 V2 %
plus $2,625
its
in
value
par
bonds,
of
Mills
Irtteiresting Situation
r
told
believed
sliding
(3-30-40)
RIVERSIDE MILLS
Riverside
he
The
Registration Statement No. 2-4379. Forn
Amendment
Gillette
that while he welcomed the House
of Sept. 23, page
"
Offering—Stockholders will receive ol
fer to subscribe to 25/94ths of one com
tnon share in units of
5/94ths of a sharf
for each 5/94ths of a share held at $5.31
for each unit.
On a share basis, stock
holders may
subscribe to 5 new share.1
for each share held at $100,016 per share
Substantially all outstanding stock is heir
by Columbia Gas & Electric Corp.
,
Proceeds—To
repay
current debt anC
$2,835,000 first mortgage bonds held b}
parent and associated companies, aim foj
effective
passing
the Fulbright measure.
Cincinnati
Gas
feel¬
re
company
1943, to defer
date.:.44i444/;•/.''■■ ' 444';/ 4;
St.,
Main
4
Operating
some
commoi
Corp.
A-2.
(8-28-43).
&
four
own.
had gone out of bounds in
■
construction
later.
Amendment filed Sept. 15,
effective
o444 4;/
Power Co.
.444
Heat
25,000
Ohio
Registration Statement No. 2-5210. Form
A-2,
PANY
Light,
Union
a
and
selling cut over timber
land owned by it in the Pacific Northwest.
4 Proceeds—Will go to the
present owners
Dean
/.
Address—4th
the
The company also is in
200,000 shares.
Underwriting—Blyth
to defer
or
ing in the Senate that the House
Fran¬
of
business
Pacific
1943,
''three
resolution of its
on a
He said that there was
date.
gistered
■/ 44 4
of--steam
carrier
intercoastal trade.
the
San
Bldg.,
'4,
primary
Sept. 4,
ONION LIGHT, HEAT AND POWER COM
this
stock.
manufacturing and marketing
lumber products, and operat¬
and
a
of
owners
outstanding
/
Calif.
common
present
and
filed
4
within
act
weeks"
in
officials
and
department
corporation.
Initial offering
shares, at a price
crews,
heads
effective
INC.
the
by
Business—The
to
Mo.
Business—Hotel
of
$200,000
sum,
currency.
issued
preferred
.
Address—Netherlands
services
and
as
equipment
this
Of
.
Address—2700
$120
has
Harrington
would
it
4.,:..;
and partly by air of
passengers, mails and freight and express
of
every
kind
through
maintenance
of
New
and
plant.
TALBOT,
already
of
NETHERLANDS
reported.
Senator
4
INC.
com¬
1946.
&
lumber
40,716'shares in First Mutual -.Trust1 Fund.
;
5:30
Inc., has reg¬
istered 300,000 shares of Class "A" voting
S-2.
.' ing
~
-
plant
Corporation.
Commercial
Co.,
paid
and
cisco,
has filed a; registration statement, for;
tion
and
Kansas-Nebraska
the
at
1943.
Oct. 1,
working
</-4/V../..
SECURITIES
CORPORATION
of
INC.
stock
of
Stokely
Inc.* which has been de¬
1943, to holders of
close of business Sept. 30,
Co.,
Amendment
v4
>;
EWT on Aug. 4,
principal
KANSAS-NEBRASKA NATURAL
preference
&
payable
record
cumula¬
The
silico-man-
.
National Securities & Research
.
share of preferred
Amendment filed Sept.
prior
clared
the 5%
on
of Delaware
by ten promissory notes, to finance
POPE
investment.
Registration
p.m.
1943,
proposals.
Washington
Sept. 23, the following
Senator Guy M. Gillette (Dem.,
Iowa)
predicted the committee
would
receive the dividend
effective date.
Registration Statement No. 2-5170. Form
C-l.
(6-29-43).
-4; i1 ''>'4
preferred.
■
Registration Statement No. 2-5206. Form
S-2.
Niagara
.
Custodian
Pope & Talbot, Inc., San Francisco, have
/•/
4 :4 •
registered with the SEC 200,000 shares of
4 common stock, $10 par value, which are
<
,
was
action
Boston.
Underwriting — / Keystone
Funds, Inc., sponsor.". 4
'-;44
Proceeds—For
1,
various
In Associated Press
exchanged
after
the
close
of
business Sept. 30, 1943, will not be entitled
Del.
Registration Statement No, 2-5209. Form
(8-27-43).
; '
44,: 4/4 4444: •'
Amendment filed Sept. 10, 1943, to defer
an¬
at
their option convert such shares from date
of issue to and including Dec. 31, 1946, at
the rate of 2(4 shares of common stock
Foods,
S-2..
Business—Investment trust.
Offering—At
Sept..
preferred stock of Stokely
Inc., has not been declared.
Any
of
such
preferred stock of that
Charleston
the
,
proceeds
construction
1945
INC.
FUNDS,
Keystone Custodian Funds, Inc., has filed
registration statement for 500,000 shares
of full certificates of participation, Key¬
stone Custodian Fund, Series "S-2".
..
ticipated expanded peace time business.
Holders of the preferred stock may
The
value.
the
Business—Organized under laws of State
on Feb. 9,
1943, under leader¬
ship of Captain Thomas G. Smith, by d
group of Air Force Ferry Command pilots*
now
engaged In trans-Atlantic operations
of a strictly military
nature.
The con¬
templated activities bf the corporation are
essentially of a peacetime nature, and will
include the transportation by air or partlv
v
stallments are due on the 1st of
Underwriter—National
cidental
the
Charleston
44
'
sented
the
5:30
5:30
»,
of
as
the
.
cumulative prior preference
par
on
parts of (he world.
they
Underwriting—NO underwriters.
4mature, or may* in the discretion of the.
Offering—To accomplish that objective
board of directors, be applied to the pre¬
subscriptions to the stock initially offered
payment of the principal prior to maturity. will be limited to the active operating
The
company
borrowed $500,000, repre¬ personnel of the corporation consisting of
Proceeds—For investment.
C-l.
of
ex¬
five shares of the
each
,
an
tween
dividend
of
-
payment of the principal of certain
Trust
and
agreement dated July 9, 1943, be¬
search Corporation, sponsor.
.44
company and the underwriters,
Offering—Will be continuous and
the
the company has agreed
to sell the pre¬
ferred stock to'them at $18 a-share.',- ") : Offering pricfe will vary with the value of
a share, which value In turn will-vary, with
Address — 6 ". North
Michigan
Avenue,
•the value of the underlying securities in
Chicago:';:'' 1
444/4;.;4Z
the trust fund.' 4-.>/.4\'\.4:.44
'•
The company is 'the largest
exclusive
Proceeds—For investment., /.■ ■' :
./4. '/-4
manufacturer of permanent magnets in thfe
;.
Registration Statement Nm 2-5163. Form
United States and distributes* its product
C-l. (6-28-43)..
" '•;/.••
4 , . 444/,
directly, to manufacturers of products in
Registration
statement ' effective
5:30
which permanent magnets are a component
p.m. EWT on Aug. 4, 1943.
>
-,/,•.;
part.
Among such products are; radio and
sound
equipment,
electrical instruments,
NATIONAL SECURITIES & RESEARCH
temperature and pressure controls, polar¬
CORPORATION
ized
relays Arc back indicators;,voltage
National Securities & Research Corpora¬
regulators, traffic signal controls,. mag¬
tion has filed, a registration statement for
netos, generators, etc.
-4
:*■ ■'.-*
Undcrwritefs-^-Brailsford & Co., Chicago,
16,631 shares of National Securities Series.
Address—120 Broadway,-New York City.
and Kalmah & Co., St. Paul; Minn. ■•■44
Business—Investment trust.
Offering price to the public of the pre¬
ferred stock, $20.00 a share.
Offering—Effective date of registration
statement.
Proceeds—Net proceeds from the sale of
Proceeds—-For investment. 4
4
the preferred stock, estimated at $531,230
after expenses, will be
Registration Statement No. 2-5164. Forril
used for working
C-l. (6-28-43).
capital.
In the opinion of the manage¬
ment,
additional capital is required in
Registration
statement
effective
5:30
connection with expanded production in¬ p.m. EWT on Aug. 4, 1943.
By
lieu
./•
steel, alloy cast¬
metal.
Such alloys
Plant
Proceeds—Net
4
.
Underwriting — Keystone
Custodian
Funds, Inc.,--, sponsor.
:4; : .4
Offering—At market.
44,'.4V'/-
a
value, and '75j000 shares of com¬
mon stock; $1 par value
(reserved for con¬
version of 6'.v convertible preferred stock).
$20
in
Underwriting—None.
'
has5 filed
Co.,
share
-'4.4
,
manages
Defense
company
registration
statement
covering
30,000
shares of 6'>'convertible preferred stock,
whole
:4. 4-"
magnesium
and
pany
of
participation,
Street,/ Boston.
Congress
stockhold¬
a
principally
ferro-silicon,
ganese,
and ferro-chromium.
Kdystone Custodian Fund, Series "S-l".
NATIONAL
INDIANA STEEL PRODUCTS CO.
case
the production of alloy
in
.
Amendment; filed Sept. 13, 1943, to defer
44
4'/.4/':. '1 44
effective aate.
In
one
Y.' " '■•"■
N.
of
in the production in
electric furnaces of alloys which are used
Custodian
Fundsr Inc;, : has
statement for 25,000
full
compromising
accounts of
each
for
Business—Engaged
registration
a
share
one
stock
by each stockholder
or includes,
share, he will be entitled to
a
to,
of
1943,
this basis is,
on
fraction. '<
■Falls,
5:30
5:30
Aug.
basis
common
Address—3801 Highland Avenue,
-
.
the
on
5,
Aug.
are
filed
$20
stock,
without
offering,
business
of
such record date.
subscribe
Forni
'4,;4//;.;
on,
close
additional
such
.
(6-29-43).
EWT
for
company's 5%
Brothers
its stockholders of record
to
a.fraction of
■■'"44 .-i;1. :
is
company
er's, allotment
Registration
p.m.
such shares
tive
,
./
shares of stock held
on
Registration Statement No.,2-5168.
C-l.
The
these shares
-4
Proceeds—For' investment.
CO
'
..
the
such
4
Custodian
44-4 •//'.' /
market.
METALLURGICAL
INC;
at
Keystone
—
sponsor.
'4
underwriting,
Boston.
Business—Investment trust,
Inc.,
preferred stock
In
company
li, 1943, to defer
4-4/;/ 1
■ „/ 4
■...Pittsburgh Metallurgical Co., Inc., has
filed
a
registration statement for 25,07$
shares of common stock, par value $10 a
CUSTODIAN FUNDS, INC.
Underwriting
Funds,
dividend
of
shares
PITTSBURGH
effective
-,
stock
$1.50 cumulative
of Stokely Foods,
the
Inc., are given the right to exchange four
,
...:
a
.".>'4
-i
$53,170,000 to redeem at 102V*, the $52,000,000 of company's First Mortgage 5s of
1954; $15,693,370 to redeem at $110 per
share,
the
142.667 shares of company's
i $7
/a
-
■
Registration Statement No. 2-5169. Form
f
so-
of
share
one
common
Holders
reso¬
the
House-approved
Fulbright resolution, but has post¬
poned
actiori
pending
further
study. It is reported that the Sen¬
.y4
•.
share,
a
value
par
several
including
to
4-;
Statement
Address—50
and other portion!
Jacksonville area),
by
said
filed Sept.
effective date.
•; ; Vjt.:,
Custodian
Funds,
Inc.,
has
filed a registration statement for 100,000
shares
full
certificates
of
participation,
Keystone Custodial Fund, Series "K-2'-\
Florida
of
w
-
EWT on Aug.- 4, 1943.
jtveystone
-'"r
of
subsidiary
(Electric
be sup¬
:
System) is an operating public utility engaged principally in generating, transmit¬
ting, distributing and selling electric en¬
ergy
(also manufacture and sale of gas))
serving most of the territory along the
east coast of Florida
(with exception of
'
Custodian
4 Keystone
due Oct.
1, 1971; $10,000,000 SinkDebentures, due Oct. 1, 1956;
(6-29-43).
KEYSTONE
'
bonds,
the
value
par
$1
Senate
ate will pass a measure of its own
offers to hold¬
stock of Stokely Foods, Inc.,
change.
Registration Statement No. 2-5098. Form
(2-19-43), :
,44 4v,4
-44
share.-
•' N
•
LIGHT
&
&
•
Registration-
;
v
held
securities
with
com¬
F-l.
^Registration Statement No. 2-5167. Form-
<•
maximum
-
the
vote
connection
the
of
Amendment
.
> ;vv;
investment.1-*
Proceeds—For
investment" fund.-'"'
Business—Diversified
1
L
>•
Congress Street,' Boston.
Businessr-Investment
•;
for
l1
to
in
objectives
called plan and agreement of rehabilita¬
1 Custodian :Funds,- Inc^ has
-filed a' registration. statement for 100,000* tion
and reinsurance and mutualization
shares of /full certificates: of participation,
affecting the Pacific Mutual Life Insur¬
ance Co. of California.
Keystone custodian Fund, Series "B-2". -
Underwriting
Keystone ''
total payments of
$60,000. 1
". '•
:" Funds, Inc., is nained sponsor,
4 Offering—At market, .-t".
;'. Address—-650 Seventeenth Street, Denver)
providing
- "'v
,is
them
INC.
FUNDS,
main
Ke'ystone
-
tsurance)
its
the
sub¬
India¬
//.,
of common
ers
50-cent
of
its
St,,
Underwriting—None.
Offering—The company
,
Purpose—The agreement places no lim¬
upon the powers of the committee
vote the shares held by it.
However,
mittee
KEYSTONE
insurance;
to
one
of
Meridian
vegetables which are processed and packed
for it by its subsidiaries.
:
4 :
itation
statement', effective " 5:30
EWT on'; Aug; 16; 1943. Vr '. •
/
: /'
Registration
'
dUstrial
Business—Life
the
lutions regarding post-war policy,
Business—Selling fruits, fruit juices and
issuer, ,626 South
Angeles, Cal.
Executive
'"-/:•/;••: .&*'■>.■'/.■
S-l. '(7-24-43).
j FINANCIAL INDUSTRIAL FUND, INC.
N.
Inc.
Ind.
napolis,
California.
of
to the holders of
stocks
preferred
Stokely Foods,
Address—941
Address —Of
"
'
sidiary,
Co.
and 42,925 shares
prior preference stock,
which are being offered
exchange plan
and
common
for
of
under consideration
regis¬
106,050 shares of com¬
par value,
Proposals
subcommittee
Foreign Relations Committee has
has
Inc.,
Co.,
A
.
CO., INC.
&
value,
an
a
-
|
Post-War
p.m.
cumulative
par
,
■
ac¬
p.m.
as
4
&
the SEC
stock, $1
mon
Leslie
and
Mutual Share¬
Committee have filed
1943
1943.
Bros.
with
tered
Pacific
Protective
holders
1,
STOKELY BROS.
Rand
E.
the
as
and
effective 3
of 5:30
statement
Sept.
on
EWT
INSURANCE
LIFE
value
par
(6-2R-43).
Registration
EWT
'
;
$100
per
Interest.
reorganization.
Registration Statement No, 2-5165. Form
no
/,
1323
Purpose—For
CALIFORNIA
OF
CO.
A.
/
•<"
Offering—Offering
has■
,
(7-31-43).
$83.50
crued
or
Stokely
price to public $105
per .share plus accrued dividends.'
"
registered- 300,000 fund shares.
'.
•> 1
Proceeds—of the net proceeds, estimated
A! Address—650 Seventeenth Street, Denver.
'■» Business—Diversified investment: fund.'1 4 at $1,275,000, the retirement of the com¬
Underwriters—None.vv4/''4'4 //\ 4 pany's outstanding 9,824 shares' of $6
at $105
per
i
Offering—At market.- Approximate date cumulative preferred stock
share will /require; > $1,031,520,
of proposed' public offering Aug, 17, 1943.
All of the
; Proceeds—For investment//,
:
444'':4: $6 preferred stock has bsen called for re¬
demption on Sept. 15, 1943."
Balance of
Registration Statement Ncf. 2"-5188. Form
net
proceeds;- estimated at $243,000, will
S-5. 1(7-28-43). ■
Registration
statement
effective
5:30 be added to the company's working capital,
; Registration Statement No. 2-5186; Form
[ p:m." EWT on*
Financial
cash
of
any
PACIFIC
and
625
Dallas,
Co.,
for
underwrit¬
the bonds.
Purpose—To effect exchange of bonds.
Registration Statement No. 2-5191. Form
of
S-l.
Co.,
-
exchange
other bond¬
sold
only 'with bondholders.
Underwriting—There are
ers
Topeka, Kan.,. 2,250;
St. Paul, 1,875;
Abilene, Kan.,
1,500;
&
than
the
every
be
,,
T
& Co.,
Cole
E.
make
as
will
None
other property and exchange
Underwriting — Underwriters
are
First
Trust Co. of Lincoln/Neb., 5,625 shares;
Harold
will
basis
same
holder.
and
'f -':':V4'44
the
on
the States of Kansas
'
Rauscher,
^4"/'.ZW/4'4
FINANCIAL INDUSTRIAL
:
in
retait distribution in
and
bondholder
each
public utility
operating
an
Company engaged in the purchase, primari¬
ly, of natural gas in the State of Kansas,
i
S-l.
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4216
•
Co.,
Los
647
S.
Angeles
Spring
Stock
newsprint reduction or¬
is the third limitation
dered today
on
allowable
uary,
to
quarterly
100%
usage.
Last
Jan¬
restricted
allotments equal to
publishers were
of
print the
the
tonnage
needed to
1941 net paid
circula¬
for spoil¬
Exchange, is visiting in New York
age.
This 103% of 1941 net paid
City where he will remain for
circulation requirements remains
about one week; He is making his
tion, plus 3% allowance
headquarters at the firm's
at 40 Wall Street.
office
the
base
on
strictions are
which the new re¬
calculated.
t
THE COMMERCIAL & FINANCIAL CHRONICLE
1324
Merrimac
For Dealers
Teletype—N. Y. 1-971
HAnover 2-0050
Thursday, September 30, 1943
Markets
Firm Trading
Bendix Home
CORP.
HAYTIAN
Shares
Bonds
Mfg. Co.
Appliances, Inc.
Common
Allen B. DuMont Laboratories, Inc.
Harvill
Lake Sulphur
Corporation
Common
Majestic Radio & Television Corp. "
FOREIGN SECURITIES
New York 4, N. Y.
50 Broad Street
stocks
common
with
post-war prospects,
Members N. Y. Security Dealers Ass'n
25 Broad St., N.Y.
selling between $2.25 and $7.
Teletype
Trading markets and Information
Sill In
Congress To Retain Stale Control
Members
of Underwriters announced on Sept. 27 the
The National Board
efforts
Sept. 28, which also said:
.
Among other data, the board has distributed a bill introduced in
the United States Senate a week'^ago today "affirming the intent of Supreme Court has done for 75
that the business of insur¬
Congress. that the regulation
of the business of insurance re¬
main within the control of the
years,
several States" and that the anti¬
Sherman
the
bills were introduced
Identical
the
of Representatives
House
the
on
and both
day,
preceding
referred the bills to their
houses
committees on the
The
judiciary.
bills note that the several States,
"each
it deems for the best in¬
as
terest of its
all
actsj of
citizens, do regulate
insurance companies
performed within their respective
borders" and that "it has not been,
is
nor
it
the intent or the
now,
desire of the Congress to invade
the
rights of the States or to as¬
which
functions
itself
to
sume
have
long been accepted as best
by the States.":
"This
proposed legislation is
performed
being supported openly and whole¬
heartedly by fire insurance com«gor\to, brokers, and others
connected
business
is
with
the
insurance
," the board declares.
believed
to
in
be
the
"It
interest
of the established American prin¬
ciple of maintaining the rights of
regulate and govern
the States to
their
affairs.
own
"There
is
these bills.
nothing
States
held, during
that the
not
unusual
in
The Supreme Court of
the United
has repeatedly
period of 75 years,
a
business
of insurance
Hence
commerce.
it
is
is
not
subject to Federal anti-trust laws.
For
over
90
and that the
insurance has
years,
Employee Pension Plan
Advantages Outlined
.
The
authors
of
book
the
are
Esmond B.
Gardner, Second VicePresident of the bank, and C. Jer¬
ome Weber, Trust Administrator,
both of whom
are
Their study is de¬
New York Bar.
signed
members of the
assist business execu¬
tives and other employers, attor¬
neys, accountants, insurance brok¬
to
and industrial relations
ers,
sellors and others who
are
Case
for
Congress to af¬
firm its intention that regulation
of insurance remain a matter for
States
mentals
of
nancing
pension
formulating
and
arises
out
a
trustee.
Their book tells how
a
anti-trust
laws
the fire insurance business."
to
charging
sum¬
marizes possible provisions cover¬
ing employee membership in
pen¬
them
Commerce
the
sensed
gradual
decrease or
cessation of advertising either by
companies
that
had
converted
wholly to war production or by
danger of
a
those
whose
been
curtailed.
carefully
trade
civilian
built
marks
had
output
In
either
case
brand
names,
goodwill would
and
suffer.
"And
so
liaison
as
business
tween
officer
be¬
and
Report Canadian Crop
Harvesting Advanced
In its
in
Sept. 23
of
Bank
the
report, the
that
reported
Prairie Provinces, harves-
ing has
areas
crop
Montreal
now
been resumed in most
following
mittent
a
rains.
period of inter¬
Operations
are
farthest advanced in Manitoba and
operating
costs
and
in¬
vestment considerations. Deferred
compensation plans of the bonus
profit-sharing type also are
or
re¬
chewan and Alberta.
turns
was
Federal
anti-trust
dismissed by the United
"The
Copies of the study
request
upon
from
estimate
of
the
Do¬
may
as
Explosives
.
vesting
:
Page
Bank
Insurance
and
Stocks
,..1300
Broker-Dealer Personnel Items
1321
Calendar of New Security Flotations. 1322
Canadian
Securities.
Sold
Investment
——
Quoted
1301
1317
Trusts........
Municipal News and Notes..........1320
Our
Reporter's
Report.....,........1295
Our Reporter on Governments
Public
HAY, FALES & CO.
Members New York Stock Exchanar
Broadway N. Y. BOwling Green 9-7027
Ball
Dealers
Ass'n:
Phone
Dlgby
4-4832
Teletype N.
Y.
1-X779
Tolotype JTY 1-61
Utility Securities
Railroad
Real
1316
1300
1297
Securities
Estate Securities—........... 1299
Securities Salesman's Corner..
Tomorrow's
Says
Markets—Walter
on
Food
War
asked
Congress
to
Administrator,
increase the
of
authorization
$500,000,000,
make
would
$1,000,000,-
which
operations,
ing completion.
...
Ontario, sugar beets, turnips
and other roots are making good
although the yield of
potatoes will be down from earlier
forecasts
.
due "to
late
vesting
in
of
grain
prospects
Prince
30
Pine
Y. Security
Dealers Ass'n
Street, New York 5
Tel. WHitehall 4-7970 Tele. NY 1-2218
reporting this, United Press
Washington advices further said:
"He said at a House Banking
and
Currency Committee hearing
farm
production costs are
and that the Government
should stand ready to absorb what¬
that
rising
Mr. Jones would
give the WFA authority to spend
more
than $1,000,000,000, includ¬
ing present CCC funds, for sub¬
sidies and price supports during
an indefinite period starting Jan.
testified
the
was
of
life
on
a
bill
CCC
the
to
be¬
yond the present Dec. 31 expira¬
date."
tion
4V*-41
by
1, 1944. The hearing at which Mr.
Jones
"Consolidated Dearborn Com.
Great Lakes S. S. Common
Oneida Ltd., Com. & Pfd.
Rochester Transit Common
*Circular
.
Rock Island
Valley Ry
authorization
additional
"The
requested
Ry.4/91 and Common
"Utica & Mohawk
loss may be necessary.
ever
"Ft. Dodge, Des Moines &
Southern
Blair F.
Interesting
148 State St.,
Boston, Mass., have prepared an
interesting discussion of the re¬
organization plan proposed for the
Rock Island with particular refer¬
Raymond & Co.,
Member
available
on
request
Claybaugh & Co.
Philadelphia
Whitehall 3-0550
Stock
Exchange
Tele. NY
New York
[■■■ ■:
Syracuse,
Harrlsburg,
Miami
1-2178
-./v-/:'
Pittsburgh
.
Beach
railroad's general 4s
of 1988 and the first refunding 4s
to this
ence
of 1934.
Copies of this memoran¬
dum may be had upon request.
Farnsworth & Electronics
lights"
J.
Reilly
F.
"High¬
Co., Ill
&
Broadway, New York City, have
an
interesting
discussion
of
Farnsworth and electronics. Cop¬
ies
of
upon
"Highlights"
request from
be had
F. Reilly
may
J.
Co.
&
Win. S. Thompson
Is
Ralph Carr Partner
BOSTON, MASS. —William S.
Thompson has been admitted to
partnership with Ralph F. Carr
in Ralph F. Carr & Co., 10 Post
Office Square.
Mr. Thompson has
been with the firm for some time
specializing in industrial,
and street railway stocks.
textile
Situation
Buckley Brothers, 1529 Walnut
St., Philadelphia, Pa., members of
the New York and Philadelphia
blight
and
an
the
interesting
common
which
tion
have
Exchanges,
offers
at
prepared
memorandum
stock
an
current
of
Auto
attractive
levels,
Merck & Co. Inc.
on
Common Stock
Car,
situa¬
the
of
Edward
Provinces, har¬
is under way,
a
heavy yield
Island
and
believes.
Copies
randum may
Brothers
on
of
this
firm
memo¬
be had from Buckley
request.
Hill, Thompson & Co., Inc.
Markets and Situations
an
120
average
1298
L. D. SHERMAN & CO.
Members N.
.
"In the Maritime
with
Great Amer. industries
In
Stock
"In
.
-
Copper Canyon Mining
BUY WAR BONDS
000 available for the' program.
Attractive
har¬
have
been retarded by rains, are Hear¬
rot.
subsidy
and
price-support
which
for
1319
Whyte
Electrol
Southwestern P. S.
farm
subsidies
was
Sept. 29 when Marvin
Jones,
.
progress,
71
Security
compared with 778,700,000
"In the Province of Quebec,
INDEX
—
Y.
Reiter Foster
In their October issue of
first
the
els,
Triumph
opened
WFA
drive
Administration
The
expanded
continued:
bushels.
Bought
N.
Exchange PI., N. Y. 5, N. Y.
Tybor Stores
Subsidy
Funds Asked By Jones
been of satis¬
date have
to
factory quality. The bank's report
viewed.
with
While wide¬
spread frosts have occurred, out¬
be had minion Bureau of Statistics places
Pension wheat production in the prairies
at
279,000,000 bushels, as com¬
States District Court at Atlanta. Trust Division of the Chase Na¬
pared with the final estimate of
The Court, according to the Board tional Bank, 11 Broad St., New
565,000,000 bushels in 1942, and
of
Underwriters, "held, as the' York City.
coarse grains at 642,600,000 bush¬
laws,
of
40
increased
extend
in the southern sections of Saskat¬
factors,
:
In August of this year the in¬
dictment brought against 198 fire
insurance companies and some. 27
individuals
It
methods.
ministration. It discusses actuarial
of the
anti-trust
these
division
the
Department of Justice to
violation
Members
viewpoint.
this
shared
has
or
at¬
of
of
apply Federal
Inquiries invited -!
.
Companies continued to advertise.^
And they keyed their messages
fi¬
with
plans,
sion plans, benefits accruing from
such plans, and methods of ad¬
tempts
the
);/.>..
S. H. dUNGER CO.
advices from Washington:
business
that
shows
record
"The
Government,
ested in employee
benefit pro¬ this Department has continually
grams.
reminded both of the necessity of
From years of practical experi¬
advertising, not only as a means
ence in handling these matters in
of maintaining markets but as a
the trust department of a large
mighty force for social good.
It
bank and from extensive research, is evident in the
eyes of Govern¬
Mr. Gardner and Mr. Weber have ment that
advertising has a right¬
developed an objective and im¬ ful role in wartime and that it is
partial presentation of the funda¬ filling that role successfully."
tween
Recalled
follows in Associated Press
as
coun¬
inter¬
securities, and the differences be¬
the
■
Department in a 96-page booklet just issued. Some of the
observations in the booklet issued by the Department were noted
,
acting to meet local conditions in
the way it deems best for its cit¬
izens.
V•
need
Advertising A Constructive Contribution
To War Effort Says Commerce Department
Reflecting the keen public in¬
in "plans providing retire¬
to aiding the Government in its
benefits for employed per¬
prosecution of the war,"
;
sons, the Pension Trust Division
"People had to be informed.
of the Chase National Bank has
Talents used so effectively in cre¬
published a 92-page book written
ating a desire for goods could with
by two members of its staff, con¬
equal effectiveness show how to
taining comprehensive informahelp win the war.
iton about pension, bonus, and
"At the same time, the Depart¬
profit-sharing systems.
ment
of
terest
pension
plan may be financed by invest¬
ment in annuity contracts or in
"The
OR
1-576
yore
new
MUTILATED
ment
without
Anti-Trust
1
<
COUPONS MISSING
5
teletype
bell
Advertising schedules should be maintained by American business
firms as a constructive contribution to the,, war effort, said the
Act.''
been regulated by the States, each
;
YORK
telephone
Commerce
that business."
in
commerce
companies have not violated the
applicable to
not
"be
laws
trust
is not
ance
BIDS MADE ON BONDS WITH
Association
NEW
Enterprise 6015
2-3GOO
R Ector
Dealers
Security
STREET,
philadelphia
telephone
said the New York "Times" of
the business,
anti-trust laws to
the
York
New
NASSAU
45
of the nation's fire insurance companies with respect to
of the anti-trust division of the Department of Justice to apply
position
1-1397
'
'
INCORPORATED
HAnover 2-8780
Y.
N.
request
on
Kobbe, Gearhart & Company
Companies Backed By Underwriters
Of Fire Ins.
Preferred
&
M. S. WIEN & Co.
SPECIALISTS
Four
Preferred
Jefferson
;
r.ARL MARKS & r.O. INC.
&
yield elsewhere.
"In British
Columbia,
...
crops are
being garnered satisfactorily de-
spite some labor shortages."
for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER