Full text of Commercial and Financial Chronicle : September 30, 1943, Vol. 158, No. 4216, Section 2

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Final

Edition

In 2 Sections-Section 2.

ESTABLISHED OVER 100 YEARS

ommatcia

U.

Reg.

Volume 158

New York, N. Y.,

Number 4216

The Financial Situation

S.

Pat.

Office

Thursday, September 30, 1943

60 Cents

Price

Copy

a

Understanding Through The Annual Report

Public discussions

during the past week or 10 days in¬
Enders 1VL Voorhees Says Social Impossibility Of Many
dicate clearly that the planners of international, or even
Economic Theories Would Be Obvious If Run
global, post-war organizations for the maintenance of peace
are still active and
hopeful. < There is; however, reason to
believe that national leaders, who in the first instance must

responsibility for the formulation of peace terms
at the close of hostilities are finding it necessary at length
> to
turn away from vague generalities; and revolutionary
programs and; come to grips with the problems which this
very real world presents.
Russia, which has done so much
and is still doing so much to bring nearer the day when
^post-war international settlements must be drafted and
given effect, has obviously never been overly impressed
with the glittering buncombe
long so popular in Washing¬
ton and among ^many of the
professional reformers both
assume

here and in Great Britain.

"

•:

Stresses Fact That Wages And Taxes

grams

some

more

;

Enders

some

are

discussion that has

President's

;

four

not

enterprise
system or for
the

taken

freedoms

States."

bound*

Europe and other related subjects than he
(Continued

on

page

1326)

from

col¬

tax
the

cus¬

is

it

a

profit. We

as

the

to

and not the

public;

pay

co r p o r a

t

e

taxes "-and
Enders

into

Voorhees

M.

<V

<•

our

better

"that

if

State

I

than

we

in

al¬

though. the items of cost might be

they would all be present

the

recent tax conference which Mr. Roosevelt
had with
Congressional leaders—Chairman Doughton of House Ways and
Means, Senator George, Chairmaii of Senate Finance—and Secretary
Morgenthau, the old question of compulsory savings came up.' Ever

the war, Congress, at least1 the
been in favor of compulsory

have

that

two tax committee

savings.

Voorhees'

this basis you could go up *>
to the hilt in taking money out of ican
on

great deal about

people just don't like com¬
pay
envelopes,
individuals pulsion. Be that as it may.
At any rate, this
industry, but in the mean¬
conversation,,
time they would be building up a'
interesting, hardlyenlightening-,'
nest egg for after the war.; Mor¬ took
place at the Presidential con¬
genthau has been determinedly ference: • '
;
Mr. Roosevelt'dwelt, at
against it.
He has argued that it
length'
was un-American to force people
upon the Morgenthau theory that
to save.; Doughton, and to a more the American
people did not like
aggressive extent, George, have compulsion. He added that elec-:
reasoned, that it. couldn't be any tions were coming up next year
and

•

un-American

the

people

taxes.

to

-

Under

than

pay

to

force

tremendous

the

compulsion
scheme, George, in particular, fig¬
ured, the take from the pay en¬
velop would be fairly the same,
but

the

wage

try would

get

back after the

earned
a

and

indus¬

large part of it

war

and this would

Financial

constitute a reservoir of post-war
spending.
:
Morgenthau has steadly fought
this,
and
from
some
amazing

say."'<
thought a moment
and quipped:' •
•
•
"Well, Walter, I certainly won't

psychological quirk his idea has
prevailed.
He
has
called
for
steadily more taxes figuring that
the
American
people will wil¬
lingly pay these, but they don't
want
any
compulsory
savings,
from which they would get their
money back; because the'Amer¬

be




'

,

Editorial

<

Washington Ahead of the

you

Roosevelt

campaigning against
Georgia again."•'' '
Whereupon the whole
broke into laughter.
It's; not

esting.
Thp

revealing,
.

•

•'

and

•.

crowd

1

are

on

that

page

be

a

both

are

us

producers

There

is

no

one

independent
system
of
either to take continuously
or
supply continuously to

an

power

from

the community is absurd.

a

that business

poses

vacuum—free

possess

can

do

to

It sup¬
live in

it

as

a

pleases

about prices or any other matter.

Wages and taxes which increase

are

faster than the slack taken up by

for they
and not re¬

efficiency must be p^id by the
(Continued on page; 1332)

progressive

retrogressive,

taking

away

Of Tax Laws Recommended To Allow
'Reasonable Reserves' As Deductions In Computing
Taxable Income
Changes Proposed To Bring Computations Into Line
With Sound Business Planning

Dr.

Paul

W. Ellis, Financial Economist of the National Indus¬
trial Conference Board, suggested on
Sept. 21, that current tax laws
be amended to direct the Bureau of Internal Revenue to allow "rea¬
'>

sonable reserves"

as

deductions in the determination of taxable in¬

Dr. Ellis'

Speaking on "Federal Tax Pol-^
icy in Relation to Corporate Se¬ der this system has contributed
curity," Dr. Ellis had the following further to complicate our tax law.
to say:
"Any formula for allowing cur¬
rent

deductions

"The most
dif fic cult

serves

phase

of

historic

Trading:.......... .1338
, 1338

Trading: on. the N.. Y. Exchanges
]

%

General

-

State of Trade

•

which

post-war

would

follow

re¬

this

Review..

;.....

problem of

pattern
would
further
complicate an already over-com¬

plicated tax system without

tax
1326

,.v

of

and

the

the

gotiation laws
to

allow

for

post-war
is

serves

re¬

the

derivation

of

formula

for

a

historical

procedure and has pro¬
profits tax relief
based upon a reasonable analysis
of the economic and profits his¬
vided for

computing the
reserves,

j In¬
taxation

come

in

this

try

been
Paul W.

administered

Ellis

the

1336

thing

Reports Insured
Bank
De¬
posits, Assets on June 30.^ v.,.;. .1336

come

shall

Bankers'

Dollar

Quarter....

..1337

Acceptances

FDIC

Dept.
District

Cotton

Store

Sales

in

N.

Y.

<$.,....... . ... ,1336
Ginnings Prior ,$0 Sept. 16.. 1333

Reserve

for

August

Up^rge Living
1328) -'
Aug.

income

be

unless

assumed
a

.

otherwise.

prove

•

Sales......1334

Business

Indexes

....1334

Costs in Large Cities July 1515
.....;;...... 1332

time,

no

deductions

unless

the

strate

with

sion

both

duction

Every

taxpayer

are

the

amount

and its

attempt

if their amounts

that current tax laws be amended

direct

to

Revenue

de¬

serves'

appropriate time.
correcting the

the
to

as

-

•

Bureau

of

Internal

allow 'reasonable re¬

deductions

termination

at

un-

dependent

were

rule of reason,
"It is my suggestion, therefore,

demon¬
preci¬

inequities which have arisen

re¬

upon a

same

of the

post-war

only the most
currently
considered,
are

would likewise be successful only

be
can

allowable

can

mathematical

for

reserves

dramatic

in¬

to

taxpayer
At
the

which

adjustment

any¬

.

August Life Insurance
Federal

on

excess

tory of each corporation. Deduct¬
ible reserves for contingencies, of

coun¬

has

even

touching upon the necessity for
contingency
reserves
for other
than -wartime and post-war con¬
tingencies.; If Section 722 is suc¬
cessful at all, it will be successful
because it has departed from this

rene¬

assumption
that
remotely
resembling

changed in 2nd

Fairchild's Aug. Retail. Price Index. 1333

just, inter¬
•;

in

changing

NYSE" Odd-L'ot

August

in

live

more

who always sells and never buys.
The notion that business is or can

Yields... 1335

Items About Banks and Trust Cos.. 1340

,

f^ts

(Continued

you

of

consumers.

.1325

Prices

Bond

no

suggestion was made in an address before the annual
meeting in New York of the Controllers Institute of America.
>

Situation ....;.;........... 1325

News;,...,,

Moody's

can

Policy In Relation
To Corporate Security

use

Regular Features
From

Business

Federal Tax

come.

'

adversaries.

our

a

Amendment

Commodity Prices, Domestic Index. 1334
Weekly: Carloadings
1339
Weekly Engineering Construction... 1333
and
it was - something men
in Paperboard Industry Statistics...... 1339
political life should think about. /; Weekly Lumber Movement..........1339
Fertilizer;Association Price Index... 1338
"How about that, Walter?" he
Weekly Coal and Coke Output..... .1338
Weekly ' Steel Review.............. 1334
asked, turning to George.
Moody's Daily Commodity. Index.... 1335
: The
Georgia Senator hesitated,;
Weekly Crude Oil Production
1335
then replied, in effect:
Non-Ferrous Metals Market
1337
"Mr.
President, \ inasmuch
as
Weekly Electric Outputv............ 1337
both you and I will be
running Commercial
Paper Outstanding.v...1335
next year, there may be some¬
Individuals' Liquid Savings Un¬

thing to what

involve

pro¬

GENERAL CONTENTS

the

more

.viciously

than

•

been

labelled

ad¬

that if everyone produced at less
than cost—that is, at a loss—we

chairmen,

Their point has

and

show that many of
which are blat-

some¬

his

since

bookkeepers

as

Most

ac¬

into

a

position adverse to those it sup¬
plies than the heart can take a
position
adverse
to
the
lungs.

movements

ently

as being more de¬
production for what
is called profit.
Translating that
into a simple problem of book¬
keeping, we are asked to believe

News

loss

a

body economic." Ex¬

cerpts from Mr.
dress follow:
a

means

the

turn

in

no

are—for

shifted and given different names,
where in the

could

in

are

stepped

shoes it would be

case

the

of

We who
litigants

not

are

business

counting clarity has made it pos¬
sible
to
discuss
gravely social
theories
which, if run through
double-entry bookkeeping, would
show up
as
socially impossible
without the aid of an alchemy
which

ers

lack

meet,

capacity

thing apart.
It is simply
the same general public engaged
in its own service of supply; and

rendered

has

that

us

the sharehold¬

sirable

By CARLISLE BARGERON

to

fiction "t hat

duction for

Washington
Ahead Of

At

are

lectors, taking

We hear

From

somewhere

pliment

only

public
place in this country, from the
down, has simply; not corres¬

difficult to divine that the President and our State
Depart¬
ment is finding Mr. Stalin much more interested in

body

enterprise."

is not

happier. If we re¬
from a busi¬
ness-loss, it turns out that some¬

porations

that

obliged

lic

services without getting anything
in return.
It is scarecly a com¬

Government";

Little or nothing of an official sort is per¬
reach the public about these
matters, but it is not

aries in Eastern

also

r.i

ends

great cause, with the general pub¬

the dollar sign

move

make

imaginations.

business

should all be

said that "cor¬

Most of the

recognize it.

mitted to

M

Voorhees

of

ponded;'with the facts of world politics. ; As the time
approaches, for the formulation of the provisions of defini¬
tive peace treaties this fact; becomes clearer and clearer
until even the hopeless idealist is sometimes at last
to

United

tomers for the

far to seek.

free

for<&-

future

the

who, because they

to

only by the

You will please note that I have

*

,

reasons

limited

not yet said that we should "pre¬
sent the case for business" or "for

States

no

have

not

of their

M.

United

The Reasons
The

do

Voorhees, Chairman of the Finance Committee of
Steel Corporation, New York, addressing the
Twelfth Annual National Meeting of the Controllers' Institute of
America at the Waldorf-Astoria in New York
City, on Sept. 21,
said that "unless we secure in America an
understanding of the
components of a healthy production and distribution, there can be
the

ambitious of the pro¬

previously believed to be in favor among

; them at least.

and reformers

Must In Final

Analysis Be Paid By Customers And Views Other
Factors Necessary For Future Of Free Enterprise

It may

of the

the social field to the bureaucrats

are

well be doubted whether
the responsible leaders in
England have been much more
impressed, although for a number-of reasons they have been
less blunt in making the fact manifest,.; Word now comes
from Washington that even American officials are
growing,
lukewarm toward

placing. But so cramped has our
style become that we are leaving

Through Double Entry Bookkeeping

"

of

(Continued

in

taxable
on

page

the

de¬

income.

1329)

'

*'«r:1V

'.».>.'7i/.t-•f.iUi:^p.'v'

tr.

:••■*/.•*77 7*7

'b.jf:

THE COMMERCIAL & FINANCIAL CHRONICLE

1326

happily until Hitler's; hordes
them

{Continued from first page)

-

is in elaborate

machinery for among the various nations of
There is after all
the preservation of peace on the world.
terms which have not been no really sound reason why
disclosed, and probably not we should blink the fact—in¬

in

deed it would be much better

proponents

and much safer if we did not

precisely formulated
the minds of the

Nor is there

of such schemes.
less
that

confident

be

to

reason

even

it—that due to histor¬

blink
ical

certain

circumstances

whatever countries, notably Great Bri¬
they may say in public, are tain, the United States and
occupying
their
pragmatic Russia, had long before Hitler
minds with problems that af¬ ever started to bleat come
fect, or are believed by them into the enviable position of
the

British,

than

occa¬

one

sion made it rather clear that

such is the
turn

sire

has

good

such nations

and

France

specific
creates

Great Britain

to

number

a

of

reached
were

Quo

rather

or

millenium

in

of the

realistic

more

the nations of the

among

globe made

certain that their realism took

long look ahead. It would
very easy to permit the
passions, often well war¬
a

be

ranted,

of

'modern

obscure

to

war

fundamental

facts

of

the

world, which lie at

the very roots of the present
terrible conflict. It would be

make

at

them

in

passionately

as

world situation

it existed

least

their leaders

was

^
Eric

/

H;

-

-

■

It is difficult for any indi¬
vidual to retain his historical

i

Holding On To Our Own
Now there

are

several ways

of dealing with a situation of
perspective in times like this sort.
Most of the pro¬
these, and it is fully as hard
grams
for "organizing the
for any man or any nation to
peace' - are not to be included
ests from

its

or

own

inter¬

mind, and view the

world situation

other planet.

as

if from

It is the

that

reason

an¬

pear

more

them for the simple
they do not ap¬
even to recognize the

among

existence of the

difficult when the most des¬

problems.; It

may be possible for the vic¬
picable of all our enemies has torious United Nations so to
upon
occasion intermingled dismember or otherwise re¬
certain
merous

truths

with

his

nu¬

distortions—and used

them in support of indefens¬
ible courses of action.
Yet
such feat appears highly
desirable at the present time,
some

duce

the

powers

-to

•permanently:
third

or

of these
relegate them

potency

as

to

fourth

a
rate

second,
status

among the nations—provided

they do not fall out among

•

me

tell

-

■

units in Italy "have accounted for
so

schedules

well that production

are

likely

larged."

I

Steel

with

a

new

be

to

en¬

7

•

production in

States is at

the United

high this week',

operations

scheduled
at
of rated capacity, indicat¬

100.8%

ing

production

of
1,75-3,900 net
ingots, the American Iron

& Steel Institute announced Mon¬

day.
Last
week,
the former
peak
period, operations were at 100.6%
of capacity and
output amounted
to 1,753,000 tons. In the week be¬
ginning Sept. 28, 1942, steel ingot
was 1,664,500 tons.
decrease in construction

in

028,000

37

Eastern

in

the

year.
•

states

like

were

Valuation

month

■" \7':7

-

last

7 7/7

■

of

publicly owned
45%, but privately
29%, the re¬
port stated.
Heavy engineering
work totaled $73,410,000 in Aug.,"
an increase of 47% over
July, but
64% below August, 1942.
Retail activity registered gains
fell

projects

owned

the

off only

were

last week
a

both last week and

over

year ago,

although

did not realize

stores

many

great a seasonal

as

increase

as in previous years, ac¬
cording to the weekly review of

Dun

attributed

This
the

to

was '
cur¬

in

September but which have been
in co-operation with
the request of the War Produc¬

cut this year

Unless

now.

Bradstreet, Inc.

tailment of the sales events usual

form different

understand it

&

partially

danger is averted, the

peace of
endangered. Too much
power should never be placed in the
hands of government, and especially

A.

>

in

Johnston

our

Government.

own

tion Board.

Department

pared with the

America

ago,

What .has been called
some

"Globaloney"

appears

tendencies

are

Board.

/.Reports

froimmokt •6trtiie5;heavy industries

week ended
group

Sept. 18, sales of this
of stores increased 10% over

the like 1942 week.

MViolated
Of Home fn

Electric power ; production climbed to a new historic
Steel production continued at the recent high rate, with indi¬
in the not distant future. Carloadings.; showed a substantial. increase; ■ and retail trade continues
quite active, showing heavy gains over last yean .77/' 7 ;
7.^
The
production of * electricity;^
snapped back to a new all-time 5,023.cars .under the same period
past week.

cations of higher levels of operation

high

of,

4,358,512,000

kilowatt

4.229,262j000 distributed win the
preceding week which contained
the Labor. Day holiday—according
to

the

Edison

Electric

Institute.

The latest Output was

16% above

the year-ago figure of
000.
.77.
; '•

3,756,922,:777,

■.

Consolidated Edison Co. of New
York

of
214.800,000 kilowatt hours in the
week ended Sept. 19, an increase
of

reports

26%

over

system

the

tive of 170,500,000.

1942

output

compara¬

•

; '

Carloadings of revenue freight
for
the
week
ended
Sept.
18
totaled

902,766 cars, according ■ to

the Association of American Rail¬
roads.

This

increase of.

two years ago.

This total

United

home,"

States, District

.,

says

Judge

George A. Welsh, "is far more im¬
portant than any violation of an
OPA regulation."
•7 7
He made the comment

on

Sept.

21, said Associated Press advices
from Philadelphia, after excusing
a trial jury while the court sought
to determine whether three agents

was

116.34% of

aver¬

of the Office of Price Administra¬

loadings for the correspond¬ tion violated the constitutional
ing week of the ten preceding rights of Mrs. Margaret Guariglia
.years/" ,7. ."7 7/■//■»>1- 777 /.,
when they went to her home to
Steel production last week con¬
question her about a quantity of
tinued at the recent high rate, ac¬
missing ration stamps.
cording to "Iron Age," adding that
age

President

Roosevelt's

The advices further

promise of

The

stated:

.:

former chief
South Philadelphia ra¬

39-year-old

impending new Allied blows in
Europe and Asia helped account

clerk of

for

tion

the rush

the squeeze
of metal.

for steel

plates and

affecting other forms

The trade publication said that

the Daruch report on the critical
domestic

manpower

situation

is

"by all odds the most important
document

a

of

the

week."

a

board, who is being tried on
charge of illegal possession of

ration

stamps,

charged
earlier
her house

that the agents entered
without

a

warrant and tricked and

browbeat her into

signing

a

state¬

ment.

"The

After

is

sacredness

of

the

home

the

pointing out the gaps and weak¬
ness which industrialists long have

paramount issue here,7
Judge Welsh said. "This principle

confronted

of American

in

the

68,hap¬
ployed in reaching a reason-]-** *h?y do not presently xe- 095 cars over the preceding week hazard setup, the present urges
report
ably satisfactory and perma- -lax the pressure. Other na- this year, 333 cars fewer than the priorities on labor and other
nent set of working relations' tions
living peacefully and corresponding week in 1942 and moves* some similar to those ad¬
was an

Trial

."The sanctity of the

peak.

hours in the week ended Sept. 18,
from the relatively low'total of

;'/7(

must

favorable the

were

Sept.

responding period last year, ac¬
cording to a preliminary estimate
issued by the New York Federal
Reserve Bank.
In the previous

to

The State Of Trade f

|
..

year

6% larger than in the cor¬

were

■

.

com¬

a

;7

to continue—assum-

ing their genuineness—the American people
make it plain that they want it so.
. " > *
-

18,

week

a

17%

York City in the week ended

of its hold upon certain

saner

same

on

up

Department store sales in New.

of our high
officials—thanks, possibly; to more extended contact
with actual world problems, 77/ 7
There are those who think they see a
tendency
toward somewhat less destructive policies at home.
If these

were

according to the Federal Re¬

serve

25

have lost

sales

stores

country-wide basis

for the week ended Sept.

be

reports filed by the railroads with




•

magazine said that invasion

Totals

be

a

7

$413,791,000 last month and $721,-

-

under

come

we

-

divorce his

7 The

deductions

as

awarded
last
month,
compared with Aug., 1942, was re¬
ported
by F. W. Dodge Corp.

kept / economically free."
—Eric A. Johnston/ President of the U. S. Chamber
of Commerce.
•' 7;77-" ..'••7 77?;A •' ■. 777777/.

still

'

;

should

or

' /•/

contracts

preside
liquidation of the American

of life.

must

*

dreamed of.

renegotiations
from taxes."

A 43%

brutally frank:
there is some danger of America be¬
coming totalitarian.
Of course, it

that

re¬

verted to savagery and re¬
paint¬
sorted to barbaric absurdities
ing houses, and Mussolini had
in support of iheir claims, it
not
yet
learned to strut,
would probably do more to is not easy for the rest of us
to admit the facts of the case.
keep the peace for the next
•100 years than all the plans, But it is never wise to ignore
facts.
/
■programs,and schemes yet

•when Hitler

.

the world is

estab¬

have,

the

would

the

possible
as-

.

than

dis¬ serious world-wide repercus¬
sions.
Now that they, or at

as

originators of.the
hiring plan.
7
.<
"The
week
brough brighter
prospects that Congress might en¬
act a bill
providing for substantial
post-war reserves, "despite Army
and Navy condemnation of allow¬
ing such reserves to come out of

production

or

"Let

1

standing of conditions which
should never be lost to sight lishing themselves in many
at a time like this. A true his¬ parts of the world under their
torical perspective and a cobl own flag, and without very
determination to view

ing of these facts.

home. 7 We

.

way

-

use

before

like it

own

least) greater "lebenstraum."

done

full understand¬

'whole world that we'll not

estimation at

own

se¬

become

notably Ger¬
many and Japan, came rela¬
tively late upon the historical
scene.
They found most of
the valuable portions of the
earth's surface already pre¬
empted. They have relative¬
ly high birth rates, and need
their

be

helping others while neglecting her

popular lead¬ They, like ourselves, are en¬
ambitious,
capable
of
these ergetic,
passions to prevent the rank peoples. In an earlier era
and file from reaching any¬ they doubtless would have
thing approaching an under¬ succeeded, as others have
to

we

other countries,

(in

a

of action

should

It's like the social worker who is out

still easier for
ers

we

Now certain

own.

be the

course

it

lected with

course,

appears to

"Whether

if

so

seen

to their

a

chosen,

weakened and flabby at home.' I'm
suspicious of people who have great plans for post-war
development abroad while neglecting plans at home.

international

on

such

now

Whatever

,

is

'

not, we'll play a leading
part in post-war world development.
But we can't do

quo,

vocated by the

Buffalo

tons of

appearance
observer from another

;

although it still remains to be
whether they are al¬
together ready in present day
Far-Sighted Realism Needed circumstances to permit such
But if facts such as these matters to return to approxi¬
present a definite promise of mately their pre-war status.
disillusionment for the global At any rate, though, \ they
were and are determined, as
day dreamers, it would be a
Mr. Churchill puts it, to hold
happy circumstance if some
a

affairs.

Ac¬

Statesmanship
|
7177: Begins At Heme

less content to

of the status

advocates

nations.

*

questions. All • this let-things ride as they were.
a poor
atmosphere in They inevitably had become

which to blow bubbles about

victorious

different

which

point where they

a

more

the

of

measure

.

countries had

These

from

answers
as

Advocates of Status

to de¬

reason

definite

very

China in her

case.

build a
considerable empire. >/:

too/ had managed to

events

*

themselves

large

.

more

^toward .-which

"jus¬ companied by the practice of
tice" in it.
It would be a narrow and vigorous nation¬
course' desiged to hold on to alism on the
part of the con¬
our own.
Doubtless it would trolling powers, it would cer¬
seem
eminently right in our tainly not be; particularly
own
7
'
eyes but would have a humane.
any

their

on

one;

once

ourselves that there would be

affect, their position and owning or controlling large to an
Empire in the years to and extremely rich portions planet.
come.
Indeed, Mr. Churchill of the earth's surface. France,
Whether

to

1940

in

Thursday, September 30, 1943

point', would entail hardships
had
relatively large empires, .and human suffering more or
and were really first rate de|s comparable in the
long
powers.of their day.; Hut this run,; to some- which these
would be a long, hard task offending powers have been
requiring eternal vigilance inflicting upon their victims
and probably repeated use" of would depend
upon a number
force—and we must not tell of other policies adopted
by
overran

has

-i*Vs*&*K

•

liberty, that our boys
fighting for, is far more*
important than any violation of
an OPA regulation."
are

now

Volume

158

THE COMMERCIAL

Number 4216

Stettinius Replaces

it

Administrator

is

CHRONICLE

Hugh Gibson Warns Against Haste En

,

as may; be necessary in the per¬
formance of the functions of the

Administration

New Post For Lehman As Assistant To President

the

out

carry,

and

in

order

Establishment @f Post-War Peace Organization

to

this

of

purposes

Discusses With Seven Other Speakers Plans
:
For World Peace

order.'

President

Roosevelt

Sumner Welles

Edward

K.

,

as

V

"

Jr.,

of

the

Office

of

Lend-Lease

of

Foreign

Adminis¬

Relief

Re¬

and

Operations and Eco¬

Warfare.

The further announcement

was

likewise made by the White House

Sept. 25 that Herbert H. Leh¬

on

former

man,

Governor

of

New

York, who has headed the Office
of Foreign Relief and Rehabilita¬
tion, has been appointed special
assistant to the President to per¬
fect

plans

for

the

meeting

of

United Nations' representatives on
Nov. 9.
'
;? '■ ^I
Mr. Stettinius, the new Under-

"Governor Herbert Lehman has
been appointed special assistant to
President for

with

the

revived

Defense.

materials for
Council of National

When this organization

was

replaced in December, lain,
by the Office of Production Man¬
agement, Mr, Stettinius was ap¬
pointed Director of the Priorities
Division.

He served in the latter

post
until: August,
1941; when
President Roosevelt made him his
special assistant and appointed
Prim*
„

.

Government,
Chairman

perfecting the plans for the meet¬
ing
of
representatives
of
the
United

Nations

Nov.

on

9.

expected that Governor Lehman
will be urged by this Government
for the appontment of Director of

Executive

Order

Mr.

Stettinius

the

far

so

with

United

the

United

States,

was

States

are in
amended

are

;;v

Sept. 25, 1943.

There

ment

the

the

of

established

Executive

President

the

in

Office

of

Foreign Eco¬
(hereinafter

nomic Administration

participated

with

sibilities

of

than

League had.

the

popular

acceptance
He

sug¬

gested a board of "trustees of
peace," until finally some world
institution is set up "thereafter to
keep the peace."

::

'

plans

speakers

and

the

specific

or groups with which they
become identified were, it

indicated

was

in

the

New

York

the House of Representatives.
Senator Joseph H. Ball of Min¬

nesota, author of Senate Resolu¬

annual

tion No. 114.

the Marine

Corporation.(

Mr.

Crowley, who now becomes
Foreign Economic Administrator,

of Lend-Lease

ministration,

the

follows:

.

•

"The President today announced
the resignation of Sumner Welles
Under

as

the

the Budget shall de¬
not concerned with

Secretary of State and
appointment of his successor,
R. Stettinius, Jr., Lend-

termine

are

come

transferred to and

are

tion.'

regret.

He

said

that

Mr.

Welles had advised him of his de¬
to be relieved of his heavy

sire

governmental duties in view of his
wife's health and he could under¬
stand

and

'desire,

sympathize

with

that

"The President commended Mr.

Welles's long

service

in

the
*

The

tablish

Administra¬

•>> ■

Administrator

such

offices,

may

es¬

bureaus,

or

divisions in the Administration

as

be necessary to carry out the
provisions of this order, and may
assign to them such of the func¬
may

tions

and

duties

of

the

offices,

agencies and corporations consoli¬
dated by this order as he may
deem

;:1

r.-y."

3.

res¬

in

the

de¬

desirable in the interest of
efficient administration. -;
,

4. The

powers and functions of

partment

the Administration shall be

has

cised in conformity with the for¬

and said: 'Mr. Welles
served
the
Department of

State

and

the

Government

with

exer¬

eign policy of the United States
as
defined by the Secretary of
As soon as military
opera¬
tions permit, the Administration

unfailing devotion for many years.'
"Commenting on the Stettinius
appointment, the President said

State.

that his broad experience with our

shall

Allies, both before and after Pearl
Harbor, as Lend-Lease Adminis¬
trator, and his long experience as

control

executive in business, splen¬
didly equipped him for his new
post.
.v
7
■
an

,

"The

President also announced

the creation of the Office of For¬

eign Economic Administration to
centralize activities

formerly

car¬

ried

by the officers of Lend-Lease
Administration,
Foreign
Relief
and Rehabilitation Operations and
Economic Warfare.
"In

creating this

assume

of

United
erated

State
areas

office, the

activities

the requirements of and
procuring materials in. such areas.

"5.

All

the personnel, property,
records, funds (including all un¬

expended balances

of

appropria¬
or other funds

tions, allocations,
available), contracts, assets,
and capital stock (in¬
cluding shares of stock) of the
offices, agencies and corporations
now

liabilities

this

order

by

are

Paragraph

transferred

Administration for

T. Crowley, .Director of Economic

tion

Warfare, will become the Foreign

formance of its

Economic

and duties.

President
one
or

said: .'Leo

of the

out

great
him to

The

Crowley

is

best administrators in

of government and I find
satisfaction in promoting
a

position which will




cen-

the

Government in lib¬
with respect to sup¬

President announced that Mr. Leo

Administrator.

of

with

In the

the

case

use

in

exercise

functions,

per¬

powers
„

to such agency,

poration, office, officer
as

the

or

has

more

management,
results

more

patience than
endurance. The

that in long, drawn-out
conferences labor is likely to be
the

are

successful.

more

"And

so

cor¬

person

Administrator shall desig-

Ely

Culbertson,

author

:

the

of

World Federation Plan.

"There

sovereignty.

""""

difference of opin¬

was

as to how the in¬
ternational police should be con¬

stituted, and to what extent the
various nations might be asked, or
might be willing to limit their
sovereignty.
"Other disagreements arose as
to whether there should be

at¬

an

ceed

more

slowly and gradually
alliances,
ententes
or

through

between

agreements
States

and

Great

the

United

Britain

the

or

"Big Four" of those two countries,
Chinarwith the idea of

Russia and

eventually

expanding

rangements

into full

such ar¬
United Na¬

tions and then world-wide

organi¬

zations.

■

the

disagreements, how¬

ever, resolved themselves into one
point of agreement—i.e., that we
should begin to consider and dis¬

post-war

cuss

plans
the

of waiting until

instead

now

is over,

war

so that we will not be
caught un¬
prepared when that time comes.

thor

of

the

plan

in

her

book,

"Look Forward Warrior."
From
the
"Times"
we

quote:
"The eight speakers
in

mous

their

it is that labor should

organization

were

and
Representative Fulbright's resolutions for world co¬
operation, and for virtually all
statements urging a positive ap¬
proach.
There was also applause
for arguments in favor of giving
the smaller nations a say on the

central
committees
of
interna¬
tional institutions, instead of leav¬

ing their direction entirely'in the
hands of the "Big Four" or other
combinations of the great powers.
"As a whole, the speakers de¬
voted much time to criticisms that
.

also

„

unani¬

maintain

sovereignty,

particularly

of

international

use

force'

an-

to,

keep the

world.

of

support

to

Ball's

their plan would sacrifice national

Mrs. Ruth Bryan Owen
Rohde,
former Minister to Denmark, au¬

some

form of cooperative international

,

,

peace

>\ V,'-

in

the

'police
of

the

'■

"Representative Fulbright, who
emphasized that he did not regard
his

resolution

simply
new

as

'panacea' but

a

first step in building a
foreign policy for collective
as a

world

security, regarded -the sovereignty
and in their criticism as 'a very red herring.'
pends largely upon the contribu¬ belief that this should be
poten¬ He' said the people could delegate
tion it, makes to a constructive
tially universal in membership. their power to any agency they
economic program. When it comes Most of them
agreed that this wished, had repeatedly done so in
to labor's own interests, labor is world
body, whatever form jt local, State and national affairs,
well able to take care of itself.
might take, must be backed up by and would be very wise to do it
"A post-war program that will some form of international police for the
purpose of preventing war
'retain and carry on a proper pro¬ force to make it effective, even if and maintaining international law
feel

that

its

future

welfare

de¬

portion of American shipping' will
demand

'concessions

and

fices,', to meet international
petition

in

field."

the

com¬

cargo-carrying

Pointing

out

that

year,

increase of 140%

Admiral

Land

over

last

expressed

confidence that the goal of 19,000,000
31

If. $.

deadweight tons before Dec.
would

be

mean

surpassed, despite

A

suit

challenging the

the War Labor Board to
dues

the

check-off in

United

States

and

ing

Land

said, but he called

delegates

■

far

to

in

1943,

strive

to

Admiral
upon

raise

average

of five ships

a

ships daily, "or otherwise
have

no

we

our

a

Director
from

company's

of

compliance

Labor Board order of

31, 1943.

Eco¬

enforc¬

dispatch from

Washington, Sept. 24, further
ported:

will

schedule."

The
pany

re¬

U.

S.

on

Sept. 24 by

District

Gypsum
"it

is

Court

Company
the

not

in

order

to

directed

include

the

com¬

maintenance

of

in

its

agreement.

collective

The

the union demand

bargaining

Board
as

a

granted

matter of

a

con¬

function

of

the President to
ers

compel employ¬
to require their employees to

remain members of

membership and check-off provi¬
sions

The
tends

The News Service

or

"standard practice," but failed to
grant the company's request for
a public hearing.

May

-

the

margin of safety to insure

the maintenance of

the

with

the

the

day to six

filed

was

r

Stabilization

thus

contracts,
Co. in the
./ ■

Washington.
The suit, according to the International News Service sought
declaratory judgment to enjoin the
Board

More than 1,300 ships have been

of either President Roosevelt

labor

Gypsium

nomic

ing labor supply.

power

impose maintenance of membership and the

union

gain of only 50% in the shipbuild¬

built

and order."

Gypsum Go. Challenges f LB Order
Membership And Dues Ghock-Off

a

■;

limitation

some

On Union

shipbuilding

schedules for the current year call
an

this should

■

.

for

peace after this war,

sacri¬

production level from the current

of capital stock

(in¬
cluding shares of stock), the trans¬
fer shall be

smarter than manage¬

This is particularly true in
conferences
between
the
two.

of
the

connec¬

and

■,

2

to

experience

ment.

Labor

;

Clarence
Streit, founder and
Chairman of "Federal Union." : :,

over

are

;

fol¬

the years, I have
..to the conclusion that labor

leaders

plying

consolidated
new

responsibility, for the

all

as

J

."With what limited

and duties

Lease Administrator.
"In announcing Mr. Welles'

ignation the President stated that
he had accepted with sincere and

lows:

I have had

consolidated

deep

remarks of Admiral Land

foreign economic operations) and
their respective functions, powers,

Edward

the

,

'

Director of

constitute

John Foster Dulles, Chairman
"The audience made clear its
Shipbuilding
Workers
of
America,' a Congress of Industrial of the Commission to Study the desire for action on post-war prob-.
Organizations affiliate, on Sept. 23 Bases of a Just and Durable Peace, lems by its spontaneous and en¬
said that the welfare of the post¬ instituted by the Federal Council thusiastic applause
for Senator

arid

Ad¬ war American
the
Churches
of
Christ
in
.Merchant Marine of
Office of For¬ rests upon their wisdom because America.
v
eign
Relief
and
Rehabilitation "labor leaders are smarter than
Hugh Gibson, former Ambassa¬
has been Director of Economic Operations, the Office of Economic
management," and that the United dor to Poland, Belgium and Brazil,
Warfare (together with the cor¬
Warfare since July.
States Maritime Commission plans and
collaborator. with
He is also
former
Alien Property Custodian and has porations, agencies, and functions for a peace-time Merchant Marine President Hoover on the
volume,
transferred thereto by Executive
served without pay as Chairman
Problems
of
a
dependent upon cooperation be¬ "The
Lasting
of the Federal Deposit Insurance Order No, 9361 of July 15, 1943), tween workers and
Peace."
management.
the Office of Foreign Economic
Dr. James T.
Corporation since that agency was
Shotwell, Chair¬
The New York-"Herald Trib¬
Coordination (except such func¬
created in 1934. v; -.:;.;
man of the Commission to
une" of July 24, gave the further
Study
The White House announcement tions and personnel thereof as the
the Organization of Peace.
Steel

Telegram" that

ion, however,

"Even

Representative J. W. Fulbright
Arkansas, author of the Ful¬
bright Resolution just passed by

Emory S; Land,
the United States

of

a

■'

of national

"Times" of Sept. 25:

Admiral

convention

"World

York

of

:V,;

the

Maritime Commission, speaking at
the Hotel Commodore before the

'

Office

just

of

of

creation

League of Na¬ tempt to establish a comprehen¬
tions as a valuable lesson, said the sive world institution
immediately
"World ...Telegram,"
Mr.
Gibson after the war, as was done in the
warned against"forcing through setting up of the
League of Na¬
any plan" until it has better pos¬ tions after the last war, or to
pro¬

Leaders Smarter Than

Chairman

the

a

pe¬

successful1?*—

a

organization

—

Describing

have

administrator.
The

Peace"

The

the

Manage¬

New

other speakers in a forum
at New York Times Hall, 240 W.
44th Street.
y N:.V.'V

to

Emergency

the

seven

AdmT Land Calls Labor

Rear

is

for

to

undertake

"precipitate action" would

The former Ambassador—a col¬

ing

foreign eco¬
nomic affairs, it is hereby ordered
as follows:
";1'" v
1.

that

world

laborator with Herbert Hoover on
the book, "The Problems of Last¬

'

as

and consolidate governmental ac¬

Office

peace

in

out

warned

threat

.:

conflict here¬
accordingly.

The White House,

•

Sept. 24 that

on

;;V-\

it contributed to the failure of
the League of Nations. ;'
' i:

FRANKLIN D. ROOSEVELT,

Commander-in-Chief of the Army
and Navy, and in order to
unify

relating

they

as

the

as

exercise their respective functions
pending any, contrary < determina¬
tion by the .Administrator.

President of the United States and

tivities

•

of

nations

pointed

was

Gibson

greatest

graph 2 .hereof shall continue to

•

of

•,

the

post-war

istrator/except that the agencies
and. offices consolidated by Para¬

creating

EXECUTIVE ORDER

statutes

Mr.

This order shall take effect upon
the taking of office by the Admin¬

the Foreign Economic Administra¬
tion follows:.
-

^

Jt

except

7. All prior Executive orders in

..

United Nations V Relief
and:.; Re¬
habilitation Administration."
;
The

States

expenditure."''fr-■ v':'

It is

..

referred t0 as the Administration),
.at the head of which shall be an

a&ociation. with

of

of

United

before

permanent peace organization.

of executing gen¬
eral economic programs or policies
formally approved by a majority
of the War Mobilization Commit¬
tee in writing filed with the Sec¬
retary of State prior to any such

By virtue of the authority vested
in me by the Constitution and the

industrial

for

for the purpose

Foreign Economic Administration

charge of .procure¬

the

purpose

con¬

.

of

the

Administration

Secretary of State, has been

since the start of the defense proin May, 1940. At that time
he was put. jn
ment

indirectly by the Admin¬
the procurement of
services,; supplies, or equipment
or

istrator

outside. the

foreign economic func¬
tions ip one operating agency/

.

nected

T,

tralize all

the

riod

^

creation

Hugh Gibson proposed

"provisional peace" be established in the immediate post-war

1943, shall hereafter be used di¬

'

time also made known the

Former Ambassador

;

Public Law 139, approved July 12,

his

as

Economic. Administration, with Leo

Foreign

Lend-Lease

habilitation
nomic

part of any funds appro¬
priated or made available under

its head, "to centralize^

as

tration,

6. No

rectly

same

activities formerly carried by the
office^

Administrator,

"

>

The President at the

Crowley

Sept. 25 the resignation of

on

Under-Secretary of State and the appointment of

Stettinius,

successor.
.

announced,

1327

au¬

thorized to employ such personnel

.4*

v,

The

nate.

Welles In State Dept.
Crowley To Head Foreign Economic Activities

& FINANCIAL

It
no

charges

authority

that
to

a

union."

the

WLB

"impose"

has

main¬

tenance of membership or a dues

check-off without
gress.

an

act of Con¬

■

->:Hv

THE COMMERCIAL & FINANCIAL CHRONICLE

1328

WhatAbout Congress?
Babson

-

I

return

Says Legislators Now Waking Up
interested

been

have

to

of

what kind

see

a

Congress would

Washington after the long summer recess. I found the
than expected.
The speed and vigor with which the

to

sooner

answer

members, hardly waiting to hang up their hats, tackled the fatherdraft

controversy,

important thing.
think

itself

for

should

Citizens

a

that*>

more

once

noted

be

revelation. The issue itself is not the
It is the fact that Congress made up its mind to
was

Real Representation Ahead

applauded.

and

Congress is a sounding board for
sentiment

the

the

of

great
of vot¬

masses

Congress

ers.

has had to be the
whipping boy for what the public
thought about OPA, local draft
boards, new taxes, and, generally
speaking, "those crackpots and
bureaucrats
down
in
Washing¬
Congress

Blocs

vs.

does

not

ton;"^

Since

Congress

members

many

of

along
mould
public with some of the things the Roose¬
opinion or lead velt Administration has done, this
in our national was like
rubbing salt in a wound.
affairs.
It re¬
Congress listened to these com¬
sponds to the plaints back in the home town—
had

pressure group

and returned to

putting

fire

the

on

most heat. For

too

long

time

a

succes¬

Washington with
eye.
This is a good
thing for the country and I for
one
am optimistic
over the out¬

Congress have
acted

rub¬

as a

ber

stamp for

the

White

House and the

Babson

bureaucrats.

We have seen the farm bloc get

:

what,

wanted through highmethods. The same goes

it

pressure

A few business

double for labor.

interests

The

chiseled

have

picture—but

,

not

to

Deal

New

has

friendly to business
,

that

bloc

The

.

It

sentation.
and

made

Mr.

most

repre¬

of

up

you

citizens,

have been left out.
record.

the

proper

average

me,

been

never

needs

is

the

extent.

men.

has not had

help

into

any

at the

Look

Roosevelt

who
Con¬

told

he needed executive author¬

gress

ity to do

lot of things that could

a

mot be embodied in separate

islation

requests

subject

delays all appropriation
must
-

meet.,

sive

over

edness,

leg¬
to the

measures

Congress, apprehennational unprepar-

our

signed

lot

a

of

in

look

sive sessions of

Roger W.

gone

never

its

as

As

result. V

a

Government

born

was

count

going
"me

Congress that is not
shut its eyes and say

on

a

to
too"

time the White
House speaks. This country needs
the full powers of the three de¬
partments of government which
every

the founding fathers were wise
enough to set up—along with the
principle of "checks
and
bal¬
ances."

The

legislative and judi¬
scrapped
as
a
result
of
emergencies—first by
the depression and then by war

cial

have

been

necessities.

Our

tion

post-war

to

the

best

contribu¬

world

and

to

politically-torn Europe will be
the example which we set in our
own front yard.
Let us get back
to

representative

government.

I

delighted that Congress is be¬
ginning to show the way by re¬

am

fusing to sign blank checks
rubber

stamps.

change

of

business

Certainly

attitude

and

or

be

this

should

help

give -confidence

to

by

day of the bureaucrat who owed
his

existence

the

and

law-makers

but

the

to

loyalty not to

of

the

nation—

Administration;

in

to Mr. Roosevelt per¬

many cases

sonally.

Washington has

become
self-constituted

with

run

<:perts";: and advocates of
-

"ex-

strange

political and economic doctrines.
Not

these activities

all

were

un¬

sound.
sary

Many were both neces¬
and intelligently conceived.

It is

the swing of the

which carries
the

causes

action

of

the

us

trouble.

By the

and reaction

right is

tional

pendulum,
extremes, that

to

overdue

afairs.

law

turn

a

in

our

Even before

to

na¬

Pearl

Harbor Congress went along with

everything in connection with de¬
fense the White House requested.
With the declaration of war, Con¬

4 said

gress

President

"yes"

whenever

Army and Navy
chiefs asked for anything.
'

Today

it

is

itouse

The

different

a

and

Senate

ready served notice
dent

that

their

long discarded

story.

have

al¬

the Presi¬

on

they intend to reassert
powers.

Now

ject Mr. Collens declared that "the
immediate need is

representing
tional
ent

fated purge
compaign of 1938.
He may have had some for about
two weeks after that campaign
then

called

dismissed it

Liberal

all

as

the

press

when, after

the death of Pat Harrison of Mis¬

sissippi, he had the choice of the
Chairmanship of the Senate Fi¬
nance or

single

a

the

all

group

various

na¬

.

organizations, with suffici¬
given to the subject to

time

endeavor to reach

tical

unified, prac¬
which can be rec¬

program

ommended

a

the

to

Government."

Noting that several laws will be
before Congress this Fall .which
point to partial solutions to some
of

the

problems, he warned that
"unless industry generally parti¬
cipates in the hearings and em¬

the Senate

Foreign Rela¬

solved, * *• * industry will lose
by default."
'
.,

.

The

main

portions of Mr. Col¬

lens' remarks follow:

"Wholesale
contracts

•

termination

of

war

be compared with

may

Finance which has turned
of

tremendously

portance and maybe,

undoubtedly
tions

so,

out to

im¬

more
as

a

result,

the Foreign Rela¬

Committee

importance in the

has

played

as

order

an

are

telling

the

Navy, "We will give
thing
but

need

you

we

to

Army
you

win

must be shown."

and

every¬

the

war,
Here is

what has

happened. Congress has
summer feeling the
home pulse.
The members have
spent the past

returned' still anxious to do every¬

thing in their
conditional

liest moment.
is

no

longer

mood.: From
to

from

the

at the

un¬
ear¬

Congress, however,
in

blank-check

a

Senators and Rep¬
are

things

•homd l said

to win

here out they want

kndw why.

resentatives

power

surrender

about

still

the

smarting
folks back

some

goings-on in Washington.




of

the

the millions.
Because of manpower and the dif¬
ficulties of audit and review, the
present

trend - of.- Government
thinking is; to deal solely with the
prime contractor and make him
responsible for
tification-of
derivations
down

the mouth

dam

to

these

Liberal

young

couldn't

through

those

say

the

days

"no"
motions

that

he

and

went

of

being

But

the

way

prime

better position

no

job and properly
protect the interests of the Gov¬
than the Givernment it¬

ernment

self.
"I

have steadily been an advo¬

cate of

single over-all claim by
company or plant rendered

each

a

direct to the Government covering
all of its cancelled war
business,
matter how many

no

agencies

Government

involved.

are

recommended

where

This

is

by

as

an

the prime contractor
single over-all clam*

might be

at' the

contracts,_ subcontracts

rivers, streams and
points where they
other water course,
to cap all springs and to divert
by some superhuman means any
brooks

flow into any

that

falls.

With

half

the

of

combination of.prime

contracts

at

and

sub¬

point down the
line, depending on the pattern of
the company's war business.
any

has

"There

been

partial

a

ac¬

war

ceptance of this idea already. The

by jao
means exaggerated as to what will
happen at the time of any effort

proposed
standard
termination
clause provides that, so far as le¬
gally permissible, termination of

United

States

business,

this

in

engaged

example

is

contract may be made in

to

suddenly stop,, the flow of war
production through the usual and

any

intricate channels of trade all

of other contracts of the contractor

the country.

over

nection

with

similar

subject to the

,vY\

;'*f"There is not enough

manpower

War

con¬

settlements

provision. The

same

Department termination

contract with

ac¬

counting

each

under

contract.

separate

the

prime

Taking all the different

procurement V departments

and

agencies of the Government into
account, it is estimated that there
about

250,000 prime contracts,
and under these at least 800,000
major

subcontracts

in

the

first

manual
also
provides
that where there is more than one

mination

the

Also,

an

able

as

is

thing

is

man

now

that other counsels have got¬

ten

to

that

him

and

1944

for

ful

break

in

him

convinced

appearances

life

has

Roosevelt

given him and therefore is inter¬
ested

in

advance which will

any

help his hero, is going overboard
for what these anti-Liberal squirts
He and Jimmy Ryrnes

are

working together like two peas in
a pod.
No president of U. S. Steel
could

t

.

ten in this article about the hulla¬
around

Arthur.

Marshall

Because to do

Mac-

and
so

would

simply add to the confusion 1
truth is not

settlements

yet to be found.

The

should

be

consolidated to the greatest prac¬
tical extent, with a provision for
the

apportionment
of

amount

the

of

the

settlement

various contracts

on

some

total
to

the

ent

Government where

procurements

agencies

or

are

differ¬

of

involved.

;"A11 technicalities of final pro¬
cedure

not

clear, but a solu¬
tion both from the legal angle and
from thaLof the practical difficul¬
ties is not impossible. It will de¬
are

require

finitely
would

with

legislation.
It
if a single

desirable

be

could

claim

over-all

handled

be

single agency of the Gov¬
based on the pattern of
cancelled war business, with no
a

ernment

complicated
over-all
ac¬
and record than under
renegotiation—but when the Gov¬
ernment is paying money instead
of taking money, that may be too
much to expect.
"A program to permit of prompt
counting

liquidation of frozen assets upon
termination
at

ment and

6.

solution

A

of

the

clear

claim

against

2.

the final settlement of
any

definition

of

what

the

Government,

limitations, if any.
The development of

uniform

provisions,
policies,
accounting manuals, rules, regula¬
tions and procedures for all agen¬
cies of the Government, including
certain
mandatory requirements
for notices of termination.
The handling of

claims

and

claim,

,

should

be

local

in

character

to

permit of prompt decisions.7.

Legislation to legalize informal
legally defective contracts and

or

commitments

undertaken in good
the war effort.

faith to speed
8.

Clinics

for

the

immediate

education

of industry on all the
technicalities of termination pro¬

visions, the accounting principles
involved, the rules and regula¬
tions for

the, preparation and fil¬

ing of claims, etc. ,r:\;
"Such

a

require
will

■

program will

legislation.

be before

.

definitely

Several

laws

Congress this Fall

problems, and com¬

in

the committee
emphasizes
the

actively
and

pates

hearts

problems

which

be

must

solved,

by personal interviews with Con¬
and

gressmen

Senators, industry

will lose by default. The proposed
educational clinics can be organ¬

ized

jointly by trade associations

and

Government

just

as

representatives,

has been done in

connec¬

tion with P. R. P. and C. M. P.

"Thinking

the

on

subject

of

termination is

diverse, and many
independent groups are studying
its solution.

is

The immediate need

single

a

group representing all
various
national :' organiza¬

the

tions, with sufficient time given to
the subject to endeavor to reach

unified, practical

a

program which
be recommended to the Gov¬

ernment."

August Living Cost
Down

0.3%

Living

of

costs

wage

earners

and lower-salaried clerical work¬

in

ers

the

United

decline

the

only 0.3%

was

pared with

drop

a

according

July,

Industrial
Board

had

stated

long

in

National

under

that food

11

1.2%

of

the

to

but
com¬

Conference Board. The

also

Sept.

in Au¬

States

downward,

continued

gust

date

of

prices, which

led the upward

move¬

ment, but which declined 2.9% in
July,

off

were

while

0.9%

remained

Housing

clothing

rose

in August.
unchanged,

0.4% and sun¬

dries and fuel and light increased

advices

The

0.1%.

the

from

Board added:

"The Board's
of

living

index of the cost

(1923

—

102.8 in August as
103.1

termination

3.

r

in

100)

stood

at

compared with

1942.

constitutes war business subject to

with

v

arise

disputes

recognition of the right of appeal
to some impartial tribunal which

contracts

war
an

lems:

1.

partial

the taxpayers.

Whenever

approach to a
following prob¬

of

least

the

prescribed
by the claimant, with
equitable provisions for protect¬
ing the interests of the Govern¬

more

means

at

or

manner

reason¬

ably satisfactory basis. These pro¬
visions, however, do not contem¬
plate single over-all claims direct

the Government

j

interesting

contractor, ter*

one

settlement

Mandatory advance

payments made direct by the Gov¬
ernment of at least 75% of
any
claim
certified
in
a

can

to the

against such
George.

5.

mittee hearings will J**"held. Un¬
less
industry ^generallyj partici¬

route.

a

con¬

alternative

an

alter¬

as

small

A

as

option of
there may be

purely

company,

t

for

which point to partial solutions to
some of these

they flow into the
Mississippi; to dam in back of that
the

involved,

option of the claimant.

to undertake this

all

are

respective of the number of

procedure

are

the

claims

baloo

in

that

all

rivers

v

squirts

line.

contractor is in

,

with

claims
his

cer¬

some
companies whose situation
justifies individual, separate

complain
about
Harry's
relationship is concerned, that the thinking these days, if that is the
President never had his heart in
experience Harry could be said
the campaign to purge the Georgia
to be having.
We have said pre¬
Senator and aside from the one
viously that the Liberal young
speech he made against him, he
squirts seem still to have the
never
did
anything else when amazing knack of getting their
there were any number of other
men
in key positions, but close
things he could have done. It is
analysis indicates that they are
apparent that in that campaign
beating a slow rear-guard < re¬
the President was listening to the
treat.
:
t
insistence of the young so-called
Then, -what does it mean that
Liberal squirts around him, their
the Washington Administration is
insistence that he could not let
going Rightest or filling up its
them down, that he had to go down
Bureaucracy with Rightists? Very
the line as a Liberal, that if he
little or nothing at all.
It is just
didn't oppose George, his Liberal
a
of changing personalities
case
supporters would be terribly dis¬
to meet various unrests.
appointed, etc.
The interesting
We have intentionally not writ¬
thing is that Roosevelt was so tied
up

all
of

the

form of

some

of the Mississippi, the Ohio, the
Missouri, Arkansas, Red and other

say.

the Roosevelt and George

tier of subcon¬

sued

rain

single over-all claims rendered
direct against the
Government, ir¬

into

run

native procedure at the

-

they

will

each

no

war.

However, it might be said in¬
sofar

tracts

the situation which would develop
if the Government suddenly is¬

sake,
Committees, and this press
he has got to get rid of those Lib¬
was' insisting that he had an en¬
eral squirts.
Harry Hopkins, who
mity against the President ond
really has no philosophy on the
h i s
Chairmanship
of
Foreign
Affairs would be embarrassing. subject at all, whose whole think¬
ing turns around what a wonder¬
George took the Chairmanship of
tions

be

second and fourth

phasizes the problems which must

line

the

the

or

Washington

business of politics.
There was a
tremendous uproar in the so-

over¬

independent
groups
are
studying the solution of the sub¬

many

dual claims all the way down

(Continued from first page)
has
not
the
slightest
feeling
against the President for the ill-

and

No More Blank Checks

or

in the

Front

Exec¬

hey¬

plant rendered direct to the Government cover¬
ing all of its cancelled war business."
Mr. Collens explained that a
single over-all claim "might be'4>
a combination of prime contracts
tier; The arithmetical
progression
and
subcontracts."
Stating that when we go down the line to the
company

country to promptly handle
under present procedures indivi¬

investors.

blank

It created the

discussing the termination of war contracts before the annual
meeting of the Controllers Institute of America in New York on
Sept. 20, Clarence L. Collens, President of the Reliance Electric and
Engineering Co., Cleveland, advocated "a single over-all claim by
each

4.,Recognition of the advantages
of

tracts

In

dential campaign, we can at least

checks for the White House. Thus
utive Order.

Advocates SingSe Over-All Claim
To Cover Cancelled War Business

be

approach another Presi¬

we

Thursday, September 30, 1943

termination

the salvaging

of sur¬

inventory and property as
distinct and separate transactions,
with the gradual introduction of
all
usable
materials
into
the
plus

peacetime economy.

1

in July

"The

4.8%
ago.

and 98.1 in August,

lev^l of living costs was

higher than that of a year
Food showed the greatest ad¬

vance

over

August, 1942, with

an

increase of 10.2%. Other advances

during the twelve

sundries,

months were:

fuel

2.4%;

light,

and

3.5%; and clothing, 1.2%. Housing
remained

"The

dollar,
the

on

to

stood

.1942."

to

97.3

at

power

of the

the basis of 100 cents to

dollar

amounted
rose

unchanged.

purchasing

in
97.0
cents

101.9

which

1923,
cents

in

cents

in

July,

August.
in

It

August,

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4216

158

Volume

this

flew York

Oily Renls To Be Frozen ;///;///;/

tutional.

At March I Levels, OPA Announces

?

:

bill

each

equivalent of all the dwellings of
Buffalo or New Orleans.
Such a
condition, he said, was inflation¬
ary -and
called for OPA inter¬
vention. :V/'/'/
•••
;
For houses and apartments the
maximum
rent • will
be
that

the

•

A

„1

The House Ways and Means Committee is scheduled to opm
hearings next Monday (Oct. 4) on new general revenue legislation.
'
In a statement announcing these plans on Sept. 24, Represen¬
tative Doughton (Dem., N. C.), Chairman of the Committee, said
to disqualify three named individ¬
the hearings "will be given over to the problems of raising addi¬
uals from holding office in their
tional revenue to finance the war."
Mr. Doughton stated that "it
Government unless they are nomis extremely important that the^
?
inated by the President and contion rate is $38,000,000,000.
revenue bill be passed before the
firmed by the Senate before Nov. end of this
A tax conference was held at
year to avoid retro¬
15
js directed at named indiactive taxation." He said the Com¬ the White House on Sept. 28 and
viduals and not at specified stat- mittee would not take
it was reported that an increase
up tech¬
utory offices.
No judicial trials
nical and administrative changes in wage and salary withholdings
have been held. No impeachment
in the tax laws, adding: "It will from 20 to 30% and a possible rise
proceedings have been instituted,1
be necessary to postpone these to
from 40 to 50% in the combined
This rider is an unwarranted en¬
next year when it is contemplated
normal and surtax rate on corpo¬
croachment upon the authority of
that full tax revision will be un¬ rations
were
under
discussion.
both the executive and the judi¬
dertaken."
Among
those
conferring
with
cial branches under our Constitu¬
However, Mr. Doughton added, President Roosevelt were Secre¬
tion. It is not, in my judgment,
that "careful consideration will be tary of the Treasury Morgenthau,
binding upon them.
'
' ■ '
given to the simplification of mak¬ Randolph Paul, General Counsel
"/ FRANKLIN D. ROOSEVELT.
of the Treasury; Senator George,
ing tax returns." / I
'The White House,"/ / v /
III
With regard to revenue raising, Representative
Doughton
and
V£ept;i4, 1943/ /// //
the Treasury has asked for $12,- Representative ,, Cooper
'/
K*i '
/ 1'
(Dem.,
T 1
■
000,000,000 in additional tax reve¬ Tehn.),
member- of the House
nue.: The present annual collec¬ Ways and Means Committee.

i

)

,

(

ffLSv.
I
covering houses,

apartments and tenements are:
,
1. Even if there is a new tenant

than the former
March 1, 1943, re¬
gardless of any prior agreements,
2. As a general rule a landlord
tenant

paid

on

evict

cannot

tenant

a

long as

as

ing unit on March 1,1943, regard-1 made
less of any lease or agreement? ment

a

,

major capital.. improve¬

or

other substantial changes:

j.

.

-tween
•year. -

Rent increases

.

ment of maximum rents are

also;}

effect.'or scheduled to go into/ef-i provided- for,' ■.»Y;/'/
;////]'
'feet- on or before Oct 1/will not /^4/ ^For 'dweilingSr ' rented - "bh
;
March -1, 1943, a landlord must
be
affected by ' the /order until
be

must

rents

that time the

reduced

those

to

•charged last March. Under present

-plans evictions are not
'•■until November.';
?

The OPA-order also

<

the

stated that

at. present

•

size

head

will

be

'

Federal .fax Policy

;

Dual

In Relation To" /

Bureau

of

Internal

of taxpayers

dwell-i

may

Revenue

well.

as

dependent

would be

any

-

Its

upon

and (taxpayers.
for

in

.

the

and

rea¬

tion

basis

for

that

ing

money,

,

'

!

|

/

artificially closing accounting pe¬
riods/for tax purposes. If these

suggestion that the

no

could be

three named individuals have not

could.

charged

The three men had been

loyally

organizations.

Rep.

Tex.), head of this committee, on

.

:

them.

Sept. 15 challenged the Chief Ex^
fecutive "to take to the American

/

people the issue of whether men
of

The

provision

men

"

government should be allowed to

does

they

•who don't believe in our form

hold and

■

not

aimed

define

obtain

can

or

"Ai State .should

unquestionably
right,"
he said,
"to
charter banks, to lay down the
operating standardss for banks,
and to supervise the banking in¬

have

at these
the offices

„

does not

a

six-year

of

losses, and an in¬
definite carry forward of losses,
corporation executives would have

the.

stitutions which it considers
inhabitants.

its

nec¬

for the accommodation of

essary

A

should

State

have the right of

i

are

the

deciding whjether
independent,
chain,
group
or
branch banking is best suited to
the needs of its people." .// /
Continuing, he said: /:// - / I
"The

should

States

have

the

right to determine the types and
minimum
their
The

banks

situations

State

the

which

require.

have reserved

should

States

themselves

to

of

sizes

chartering and

supervision of savings institutions
of all types. In

short, I would rec¬
ognize clearly the paramount na¬
tional

those

in

concern

matters

/As

primarily
them¬

States

'■

•://;/;/:'

a

coordinating

of

means

State and Federal

policy in bank¬

Mr.. Bell proposed that reg¬
ular meetings be held of repre¬

ing,

sentatives of the Federal agencies
and the State Supervisors.
In his
remarks he stated: '•':/•>

"On

cies

••

■

/

occasion, the Federal agen¬
States. /. The

consult -the

do

examination

forms

are

use

we

a

effort.
State
and Federal authorities cooperate
closely to prevent a recurrence of
of ; joint

product

that

banking evil of the 1920's—

the over-chartering of banks.

The

Federal authorities discussed with

committee

a

last

fall

a

Association

this

of

with
participation in
drivess. / /i
\:
policy

common

rbspect to bank
the

loan

war

"It

-

to

seems

me

that the advan¬

tage of both the Federal and State
governments would
these consultations

served

be

if

placed on
regular rather than haphazard

a

I believe that mutual bene¬

basis.
fit

were

would

be derived from, say,
meetings between the
Federal
supervisory
authorities
and a group from the National
Association
of
Supervisors
of

quarterly

State Banks."

: v;

/

The central theme of

visors'

conference

wartime

and

;

th^ super¬

was,

the

"In

■

post-war eras, how

seek

the function
of the

relatively little reason for fearing
that-changes in tax fates would

far, and by what means, is it de¬
sirable or possible to preserve the
dual system of banking?"!
Mr. Bell said that the diial sys¬

from which all guesses have been

undermine

been employed.
They are
sought to be disqualified for Fed¬
eral employment because of po-i
litical / opinions
attributed
to

(Dem.,

Dies

carry-back

have

"subversive"

eliminated by providing

contingency reserves,

per¬

formed the duties for which they

by the House Committee on UnAmerican
Activities
of
having
been associated with

competently

and

Treasury

•

,

There is

the

money and refund its matur¬
obligations; the quantity of

new

•

for

selves."'

which

ap-

would be required, to try to uftder/
^tand.the; taxpayer's; side of each
: criticized Congressional action ordering the removal of three Federal
case /instead, of .acting; almost ex-f
employees whose political phildsophies. had been questioned by af
House Committee.
<]■
//I
/• / /:/
I/,-./
1/ Ij 'clusively .at: times, 'as prosecuting
:
The President .said that .a rider attached, to an appropriation, -w"E attorneys with taxpayers as de¬
fendants: -r • - •".'./*/
II
"an unwarranted encroachment upon the authority / of
was
the
executive and /the judicial f:
.acdbiiihiT
branches under our Constitution/ appropriations, -I should unhesi¬ ing ,is .a procedure for estimating
<
income upstead of a technique for
and in his judgment was not bind-, tatingly have done so.'}
/This rider prohibited any Gov-i obtaining
absolute truth
would
ing upon them. The group con-,
or. agency eliminate the most serious evils of
cerned were, it is stated, ordered eminent department
The danger
removed from the Federal .pay¬ from employing at any time in the all recent tax laws.
to corporate security of the undisrolls unless Mr. Roosevelt renomi¬ future, after Nov. 15, three named
individuals: who are now
em¬ tributed profits tax, or the excess
nates them and the Senate con¬
ployed by different Government profits, tax, and of renegotiation
firms them prior to Nov. 15.,
unless
they
are
ap¬ of prices, as well as other contro¬
The President reluctantly signed agencies,
the appropriation bill on July 12, pointed to office by the President versial aspects of corporation tax
and cofirmed by the Senate prior
but said in his message to Con¬
law, are very largely the result of

other functions

All

matters

the power to regulate
credit, and
the
parently. has been quite successful currency and
availability of money, or insur-j
In Canada.- • "* * V
J
ance
of deposits.
Beyond- these
^/^This. suggestion^ moreover, ha^ three spheres, said Mr. Bell, the
the advantage nbt present in cur¬
authority of the States in banking
rent' tax procedure that the Bu-should be dominant. /://://;.//;/.;
reau of Iritefnal' Revenue officials
discretion"

system, and
system

Federal

our

major part of our money supply.

in which the national interest was

simplifying

ministrative

to

StateS>-

of

clearly defined aspects of banking

future,

Congress on Septrt4|

to that date.

Supervisors

Mr. Bell said there were certain

bur entire
income tax structure by pointing
the,way.to the same type of ad¬

President Charges
'Encroachment' InRiderTo

that he would have vetoed
objectionable
rider
if he

of

everyHime .conditions change. If paramount. These were, he said,
the price of money, or the rate at
successful/ it would provide the

.

gress

without violence

Banks at Cincinnati.

without requiring new legislation

.

the

eliminated

be

can

and danger to our economic system, Elliott V. Bell,
Superintendent of Banks of New York State, declared on Sept. 18
in an address before the annual conference of the^National Associa¬

It could provide

land

role to play in the

a

of government

all necessary, contingency re--

serves,, now

•

President Roosevelt; in a special message to

neither

success

the

and national authorities have

development and regulation of the country's. banking

a

sonableness of both administrators

■

I II,

Banking System Upheld By Bell
As Responsive To Needs Of Country

Both state

;;

/

•

reorientation of the attitude of the

for

available

landlords about Nov. 1..For

•

.

:

increase in rent the ings substantially - changed since
have paid between March- 1 r or not ? rented on" that
'March 1 and Nov. 1. - The OPA date, the landlord must file a more
urged building 'owners to co¬ detailed statement,- identical with
operate by not raising rents dur-' that used in/rfull control" system
•ing October/1
y •
•
• '
^ operating in critical housing areas
!
For hotels and rooming houses; throughout the nation./ /- ? /,
5. Curtailment of services, such
-the' maximum rent will be the
as cutting off of heat,: without a
highest rent, charged in the' 30
lowering /of
the
days^ ending March ■ Tr 1943, .'for compensating
:each .term
of rental—whether; rent, will also be - prohibited to
:
daily, weekly- or monthly—and for prevent hidden rent increases/
tenant

tenant

■

.

.

occupying ;./» (Continued from first page)
premises and the other to the Such a provision would require
tenant

prohibited
• / V*' • OPA/The notice forms on letter¬

landlords' heed hot refund to any-

>

;

■

Corporate Security

.fill out two; copies* of 3::/notice of
maximum rent" and send one to
the

•

'

into effect be-; in the dwelling Since March rL
March 1 and Nov. 1 of-this, 1943> / Other grounds for -adjust-;

which may be put

"November;-but at

.

,

he pays

the maximum rent. /
3. Special provisions are made,
charged for the particular dwell-; to. cover/ cases where landlords

already in

legisla¬

without judicial trial." The rider
in this bill operates perpetually

sintole, double, or suite,

regulations

"a

as

tive act which inflicts punishment

he pays no more

,

u

whether

attainder

of

Hearings To Slarl Monday—

if If To Be Confined To Revenue Raising

The Supreme Court has defined

of

number

of the OPA, said in Washing¬
night that the action was
taken to prevent rent increases
scheduled to go into effect by next
month on more than 100,000 resi¬
dential
units
in
the
city—the

New Tax

'

•

,

a

Regional Office of Price Administration in New York City,
announced on Sept. 28 that rents for apartments,; tenements, houses,
hotels and boarding houses in the five boroughs of New York City
will be frozen on Nov. 1 at maximum levels prevailing last March.
The basic points of the order were given in the New York "Herald
Tribune" of Sept. 29, as follows:
Chester Bowles, General Man-^ton last

^

>•-;

The

ager

provision is not only unwise
discriminatory, but unconsti¬

and

1329

eliminated.

tem made banking more respon¬
sive to the needs of various parts

5

of

their

11, ,//. /

corporations.

"In view of these facts, three

changes in

to

make appointment to those offices

the. security

tial

-

our

tax; laws

to .> bring

tax

are essen¬

computations

that relate directly to
of

banking

a

as

/

source

•

"Second, provisions for carrying
back and carrying losses
are essential, at least in
tax computations, in order to cor¬

of

United

the

losses

tion

forward

our

States.

"In

a

na¬

large as the United States
individual, variations
are

as

many,"

said

"Our

Bell.

Mr.

payroll." subject to Senate approval/Asia into line with sound business plan¬ rect errors in annual estimates of country is in diverse stages of
'/:'- The President's plans for send¬ matter of fact, the clause permit/ ning:. Yrv/VZ-/-: ///vy/l:';/. '• profits. In view of the fact that financial development. IS o m e
ing the message to Congress were ting them to remain in Govern-;
First;': reserves for contingen¬ some industries suffer losses for States are exporters of capital; a
reported in these columns/July ment employment after. Nov. 15 cies must: be deductible in the five or more successive years, it is large number are importers of
115, page 204. ; ; •
1/
J
/ subject to Presidential appoints computation of taxable income. obvious that a two-year carry for¬ capital. The density of our popu¬
stay on the government

The

text

fffe/ihessage fol/

ment and Senate approvaL was inn

The- serious' effects

serted

only.after the Senate had
refused to accept a provision re-i

/'I.y/'■/.
Congress of the

'■•lows:

United
■f-./'-'k
quiring their immediate removal
I
On July 12 I reluctantly signed from;
Government, employment
,H. R. 2714, the Urgent Deficiency- and their permanent disqualifica-1
Appropriation Act, 1943,, I . felt tion for the Federal service./ The
obliged to approve it because it Senate rejected the compromise
appropriates funds which were as incorporated in this bill once,;
To

•

of

.

,

.

/

.

the

.-States:

.

and

'essential to carry on the activities
of

almost

every

agency

ernment during the recess of the

agree

vision

Congress.
If it
.

Appropriation-

-.which .has
without

no

Act,

relevancy

delaying

essential




but

to .it,
war

to

any.

bill, without

aimed

at

the

a

pro/

removal

these three named individuals.

possible, to veto

had been

the objectionable rider,; which has
been attached to this urgent De/

'.ficiency

agreed to it only after the
conferees/had refused to

House

of Gov¬

•

The

Senate-yielded,

been forced, to

as

of
•

<

I have

of "costs

must be.met in the future
no

diminished

way;

by

that the amounts of these

that

are

in

fact

the

reserves

must" be determined at

present by
process involving considerable
guesswork, postponing the alloca¬
a

tion of costs to

some

future

merely because it will be
to

determine the amount of such

costs at that

"In

deducting
from

current computations from which

I

are

omitted..

contrary, the inclusion of

yield, to avoid de/

accurate

laying our conduct of the war.: 1
f;But J cannot so yield without
placing on- record my view that1

estimate

of

v

the

an

in¬

provide an
profitsK that
more

guess
t

On

may

closely- approximates a theoret¬
ically true amount than any figure

the

unmindful

time,; does not in any
degree increase the accuracy of

/these xosts

such

er¬

The English system

of allow¬
ing a six-year carry back and an
indefinite carry forward
would
appear
to be a reasonable ap¬
proach to the solution of this
problem.

date,
easier

eliminate

doesn't

ward
rors.

third

place,

I

am

not

the

that

privilege of
contingency
reserves

current

income

abused seriously.

could

be

For this reason,

lation

differs

the
people
and institutions in one part of the
country will be different from
those in other parts of the coun¬
try. The existence of the federal
system makes it possible to avoid
the difficulty, indeed the impos¬
sibility, of administering this di¬
verse
country from one central
place."
":'■'/;
/.
widely

and

credit requirements of the

.

Mr.

.

Bell

.

said

there

was

no

that reserves re¬
maining unused after a five-year
period should be returned to net

why the nation's banking
system could not be strong and

income and that

sponsive to local needs.
dual
banking system existed, he said,
because it enjoyed the support of

would suggest

be

paid

upon

an

additional tax

the basis of the tax

law in effect at the time such re¬
serves

were

deducted."

reason

efficient and at the

the

mass

same

of the people.

time

s

re¬

THE COMMERCIAL & FINANCIAL CHRONICLE

1330

The weakness is

Senator Taft Urges Retaining Rational

tary.

"It is

Sovereignty To Preserve Democracy
Taft

Senator

McMurray

Representative

and

engaged in a debate on "Sovereignty and Peace" on
luncheon in New York City, sponsored by the Citizens

(Dem., Wis.)
Sept. 24 at

Ohio),

(Rep.,

a

for Victory Organization.

The following concerning their remarks is
"Sun" of Sept. 24:
Senator Taft declared
of

,

sovereignty

involved
nations,

was

covenants with other

by
un¬

'

in

summing

us

raise

up,

follows: "Let

as

which the

standard to

a

wise and honest may

to

and

our

country

our

citizens."

the

those na¬
"come into
give orders to

right

some

declared

He

United

success

in

States

post-war

co¬

operative organization among sov¬

ereign nations."

Secretary; Hull's

speech of Sept. 12 supports "or¬
ganized international cooperation"
between independent nations, each
nation free to decide for itself the

and'details of its

.forms

govern¬

mental
,

organization and of its internal economic and social organi¬

zation.

'

,1'y.£.V :

"-..V.;.:-" '

:■

"Only by retaining sovereignty,
can
we
retain " democracy," said
Senator Taft.
he

that

He went

questioned

to say

on

whether

the

Russia Rot To Join

War Against Japan
Earl

Browder,

willing also to

or

struggle against Japan," according
to.

Associated

an

Press

added:

dispatch

"'All

chatter

about

and

Soviets

Panama

closely
.and

would

the

to

pressure

listen

voices

of

voice of the American people.
It
is significant that the British Em¬

pire, because of its size, in order
to maintain democracy, has moved
toward

decentralization

of

gov¬

ernment, and has today no overall
legislative body, no overall execu¬
tive

and

overall

no

police force.

If Canada and Australia and New

Zealand

and

Eire,

regarded

to

are

be

South

Africa

into

and

diverse

too

as

consolidated

one

gov¬

ernment, what about China, Japan,
Russia and Ethiopia?"

.

.

to

-

see

a

:

speech
-if

and

Mr,

them,

the Russians freedom of

on

freedom

Stalin
as

of' religion

doesn't

of
apparently he doesn't."
approve

Representative McMurray, who
spoke first, began by saying that
adequate discourse on the sub¬
ject of "Sovereignty and Peace"
could not be given in the time al¬

^n

*

lowed

—

thirteen

and

one-half

minutes, and that there would be
difference of opinion between
Senatdr Taft and himself if they

no

could

agree

on

the

definition

sovereignty.

of

:•/;

He declared

that the individual

talking about sovereignty
might take it into his home and
a

rolling pin between

the ears, which was violence and
.

war.

He asserted that

what

international

form,

it

all

comes

matter

no

relations

back

to

we

the

people.

Soviet-American alliance. This

authority to an international or¬
ganization," said Mr. McMurray,
"and I hope we will."

Speqkin'g of the present United
States, foreign policy, Mr. Mc¬
was

fit events abroad—events

made to
in Ber¬

price

coalition

least to the extent

half

Mr.

Browder

Minister

25

the

y

; "

.

.

said

to

open

a

may

to

said;.:

his

■

Minister

report

past

week,
of

front

than he had

"Perhaps

for

bring

we

it

in

the
no

a

a

mistakes. Our
was

in

a

* >

.

Mr.

stub¬

own

Gen. Eisen¬

Gen.

shake him,
Ike

pleaded
for the opening of the second front
through France as the main ac¬

shake

maximum of 6 cents

where

used

prices
milk

the

-

yV

and

the

is

'; /y

v

saying

also

difference

those

■

as

will

being

now

pound

butterfat
:

considerations

a

cents

be

between

received V for

received

during

pre-war

years.

immediate

Thus, the payment will be higher
in

where

areas

the

quantityyof
purchased feed is larger and feed
costs higher, and where the ad¬
in prices received for milk
has been the least.
y. ^

vance

.

Harriet Seibert Appointed
Religious Aid To WACS
;y

Harriet Seibert has been selected

the

inational group to be assigned to
work with training., units of ythe
Women's Army Corps,1 it'was 'an¬
nounced in Washington on Sept.
22.

Miss

?the

Seibert

the immediate

opening of the

sec¬

and

Church

Methodist

Extension

Church

of

at

ter in that

city.

<

.

-

years

from

received her master's degree from

opening the second* front.
Some
persons in position to determine

Columbia University, and has fol¬

the

education




Amercian

military weakness

prevented
combined

the

Anglo-

forces

decision have been

unwilling

to have the second front opened.

To the

that

we

in

is

prepared

in

the

every

right

to

sense

of

free

men

for the maintenance of that
peace.
We must not forget our stake in

Every

they shall be liberated, and

their

the

that

release

from

bondage is at hand. 1
We

3.

reiterate

the

consideration

of

people that
the
Nazi, Fascist and Japanese lead¬
who

all

and

their

share

re¬

peace¬

the
shall be
brought to stern and unrelenting
justice. No punishment can atone
for their crimes, but prompt and
unfaltering retribution may serve
to deter any who in'years to come
shall pattern after them.
V
known,

ever

We warmly endorse the good

4.

■

has

neighbor

policies
which
have
strengthened the bonds of friend¬

ship throughout all the Americas.
We urge continued effort to break
down every difference of what¬
that

nature

ever

hereafter

may

now

of

or

na¬

in the

one

6.

Our

must

we

can

best

with

national

own

be

ever

and

that

concern,
nation

our

and protect its na¬

serve

interests,
its

interests

first

our

believe

commensurate

and

power

responsibili¬

ties, by participation in the estab¬
lishment

and

association

of

maintenance
free

of

an

and

sovereign
nations, implemented with what¬
ever
force may be necessary to
maintain world peace and prevent
a recurrence of war.
It would be

premature

to state with par¬

now

ticularity how the peace shall be
implemented and enforced, but it
be

must

world

ing and
not

obvious

that

no

secure

fully

to

now

peace

all

the

be last¬

can

for nations that

prepared

are

maintain

to

peace.

7.

We

renew

demand

our

that

the aggressor nations which seek
now

to enslave the world shall be

forever

disarmed

and

made

im¬

conflict.. We reiterate our demand
for a policy of stem and exact
justice toward them.

misunder¬

of
act
of liberty and

cause

8.

nations

the

the Americas shall speak and
as

we

of

cause

.that

that

potent to provoke another world

solidarity
of the Western Hemisphere.
We
recommend every honest effort to
so

dictates

the

threaten

all

interest

prevent recurrence of the condi¬
tions which led to this war."

tional

■

demand

American

ers

tional

peoples of the invaded
voice again the pledge

confidence

our

justice.,y%,
■•/;. ;y:y-yy
5. We repeat our declaration of

our

shall

We

commend

be

made

except on

the

policy

that

Government

with

no

of

peace

enemies

our

the basis of their

un¬

conditional surrender.

Japan Attempts To Bring About Separate Peace
Between Russia and Germany, Is Report
;/

/ A Japanese

move

to bring about a separate peace between Ger¬

and Soviet Russia "was. reported on high authority to be
way," according to Kingsbury Smith, International News
Service Staff correspondent who, in indicating this in a dispatch
many

under

from
/

Washington

"Reliable

Sept. 25, added:

on

word

reached

Washington that high Jap sources

are

spreading reports in Russian cir->v
cles
that
Germany
intends to dent Roosevelt this morning. He
make a stand along the Dnieper went to the White House immedi¬
River and then seek a separate ately after hearing a first hand
report on the Russian situation
peace with the Soviet Union or,
failing this, the United States and
Great

■

Britain.

/ "This word

/.

United

States

comes

diplomatic
and

at

as

the

meeting

Soviet ministers.

"Mr. Hull

from

Ambassador

William

H.

;, /•/>-■;>•

/■
a

Standley, who has just returned

strong

from

developed that Secre¬
tary of State Hull may go to Mos¬
cow, next month to represent the
momentous

with British
\
; - f
.

conferred with Presi¬

Moscow.

The Japs are be¬
deliberately 'feeding'
the German peace plan reports to

lieved to be

the Russians in order to

sow

dis¬

unity among the Allies and. to try
to frighten the Soviets into accept¬
ing a separate peace with Ger¬
many."
*

Tax-Free "Seed"

Money Necessary To Save
Business After Waq Miss Kellems Declares

education

at

Christ

New York City.
a

Church

Miss Seibert

graduate of Barnard College,

lowed

special studies in religious
at

Union

Seminary, New York.

Urges Repeal Of Capital Taxes
Vivien

Theological

Kellems

of

Westport,

Conn.,

told

the

,r.

Rotary

Club

of

Chicago, on Sept. 28, that if business is to be saved after the war,
Congress immediately must pass legislation to allow it to set aside
tax-free "seed" money, said a special despatch from Chicago-to
the New York "World Telegram," which also added:
Miss

y

fifteen
has been director of relig¬

phasized that interdependence re¬
quires 1 world government and "I
mean world government."
He quoted George Washington

has

2.

nations

the

Miss 'Seibert for the past
ious

"... It is not

be

fight for
and

it.

Legion re¬
affirms its faith in the foreign
policy of our Government. ?

Daytona

ond front.

that

however,

peace,-

of freedom-loving
peoples."
policy." That "we cannot escape, we will
not evade, our own
report of the
responsibility

American

Service, of the Board of Missions

He pictured an un¬
restrained sovereignty of any one
State of the Union that might up¬
set the whole country.
He em¬

lin, Tokio.

Government's

the

foreign relations com¬
follows, according to the

The

will' represent

for the second WAC training cen¬

Quebec with the
strongest military arguments for

"no

women's division of Christian

with Florida churches in activities

in

that

surrender'

of

Associated Press:

Department as the
representative of a denom¬

Staff, was unable to

a

com¬

Legion's
mittee

War

secondary

as

the

and

indication

Marshall, Amer¬

Gen.

him

minimum, of 3

Beach, Fla;, beginning Oct. 1. She
will cooperate with the Army arid

tion,'with Africa
diversion.

A

given to

■

1942

other ..pro¬

in effect, and'not

now

The WFA is indicated
that

by

move

indeed

unable to

1942

ican Chief of

where

areas

are

concerned.

first

man, with a confidence in
himself that survives many obvi¬
hower

-

than 50 cents per hundred¬

be

minute

born

ous

in

a

second

planned it.

cannot

Churchill. vHe is

in

text

remove

will

*

;y.,■

of

'unconditional

:":';The

standing,

\

that

declared
clamor

would

sooner

■:: ;,:

Churchill,

Parliament

to

shortage" of - dairy and

front, Mr. Browder

•

"Prime

the

mem¬

House

y;.,yy;-y

and

Again referring to Mr. Churchill
and the second

the

weight.

postpone
.

New

of

announcement

an

of

more

second

the second front until 1944."

that,

cept

no

"decision

the

"World-Telegram", of Sept.

grams

major share,"
force reconsideration of Mr.

Churchill's

September,
in

lent of 25 cents per hqndredweight
of the whole milk delivered,- ex¬

Asserting the war could be won
in 1943 by invading France, Mr.
Browder said the steady advance
of the Russian armies, "the pros¬
pect that it opens up a decisive
victory in which Anglo-American
will have

since

in'- the

The payments, which are to be
effective from Oct. 1 to Dec; 31.
will not be less than the equiva¬

at

>/../

nations

aggressor

mendation

ter.

Prime

•••,',

ing

beef products in the East this win¬

as

"failure

increases

stated

was

mendous

yyyyy

■

that

f

Food " Administration

re¬

warfare

.

,

eign

sponsibility for bringing to

Agriculture
Committee had predicted
a/tre¬

of the Anglo-

front" in France.

arms

K.

-yC'5y

feeds

It

bers

had
"finally
that 'military expert'
whose
opinion
prevailed
over
Gens. Eisenhower and Marshall"

in

LV

subsidy Came after ranking

Churchill

emerged

by
Father

Gerald

against

of

York

as
many of the Nazi
the Soviet Union takes

as

singlehanded

on

War

1942.:

American side in the West engag¬

ing

headed

Tribune,

and
.

farmers

war with
anything that can
properly be called victory.
"The key to this victory is the
full consolidation of the Anglo-

forces

Firsters

Sept. 25 a milk subsidy
program designed to protect dairy

for us to emerge from

full

through the
Congressional repre¬
to the whole camp of

announced

this

quires

sup¬

poll-tax sections of

Chicago

The

as¬

there is not the slight¬

est prospect

when

"We the people might give some

Murray said that it

leader

,

,,.

Announced By WFA

speech the Kan¬

the basis of equality all

....

amount

after

1 be met with

his

Communist

on

the

to

day," Mr. Brow¬

iitk Subsidies Flan

she

which

necessary."

At the

world

liance with Britain and the Soviet

tendency,

especially
"among our New Deal friends, to
make plans for the world as they
made plans for us poor Americans.
We can't crusade throughout the
world for the four freedoms, or
force milk on people who don't
like milk, without making our¬
selves thoroughly hated. We can't
force

;

.

The speaker said that he seemed

'

those

to

favoring

as

to maintain

of war—-"implemented with what¬

ful peoples the greatest agony

this, that unless we get down off
our
high horse, unless we, the
United States, consolidate the al¬

around

and

Smith."

serted: "... The cold hard truth is

Union

"Hitler

crushed

the'1 American

are

Coughlin

more

cranks

than to the

groups

sas-born

that
West

the

or summer

been

America

the

to win the war for us."'

in

in

end, to try to give

East

Earlier

spring

have

doubt"

a

continued:

the

the

of

front

second

a

sentation,

us

aim

one

possibility

Republican

'bombing bases' in Si¬
beria is harmful nonsense," Mr,
Browder continued,
"with only
giving

force may be

ever

recurrence

a

newal of the demand for disarm¬

sum¬

the Democratic party,

-

,

the

open

•*./'•//.

Wheeler

from Chicago on Sept. 27, as given
in the New York "Sun," which

in its Government.

or

time

any

to'

delay? They range all the way
from the State Department within
the Administration
through the

performed in Europe, namely

Geneva

ready

porters of Churchill's strategy of

dertake the burden of the military

and prevent

peace

1.

un¬

Far

government at

that

sure

is

offensive had "proved beyond

"Who

States to expect the Soviet Union
"will be able

Legion went on record on Sept. 23
United States' participation in an association of nations

policy, endorsement of the welcome, however promising, can
second front, he will find no ob-" "good neighbor policies, reitera¬ long endure, unless it be made
demand
that
Axis secure by the nations which have
stacles from the side of Robse- tion of the
leaders be brought to justice, re¬ won it; nations which must ever
velt."
'' •

der

rally in Chicago, on Sept. 26, that
it is an illusion for the United

has

world

feel

earth before this

of the United States Com¬
munist Party, told a second front

Cooperation For World Peace

yy ;

The American

approval of the Government's for¬

I

would

tary

y lyy

ill.

the past

Secre¬

General

Legion Favors U. S.

he was unwilling to have a
public disagreement with Church¬

the

Says Earl Browder

American

closing session of the Legion's annual convention in Omaha,
Neb., the report, presented by its Foreign Relations Committee, was
unanimously adopted. It included*>-

velt submitted to that decision be¬

with

the

"a

open the second
front and that Franklin D. Roose¬

mer

the Soviet Union similar tasks in

Senator,

to

.

United States has not reached the

the

not

Asserting that the Russian

limit of size under which people
of a nation can have a real voice

"Certainly,"; said

Churchill made the

Winston

decision

that

of any
peace depends on this nation and
other nations retaining their sov¬
ereignty as he defined it.
"The Republican conference at
Mackinac," said Mr. Taft, ap¬
proved
"participation
by
the
permanent

that

Churchill

repair."

less the covenant gives
tions

heavy responsibility to
attempt to assign this' default to
particular persons. The evidence,
however,
inescapably
indicates
a

cause

did^

he

believe that any modification

not

from the New York

moral, not mili¬

•,

Thursday, September 30, 1943

i.

repeal
stock

Kellems

also

called for

private citizens to deduct the in¬
come
tax for the previous year
in

figuring

the

repeal of

the

capital

gains

tax;

the "idiotic" capital*^
tax,
and
permission for not
of

current

their net income for

financing..

We will build anew,
better and stronger than ever be¬
fore. There will be

year.

"If this simple program

need public works, we will not
need Government interference and

is fol¬

lowed," she said, "you will see a
post-war boom in this country be¬
yond our fondest dreams. We will

jobs for every

one, man or woman,

who is willing

to

work.

And

the

world will follow us."

rest

of

the

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4216

158

Reasonable "Risk" Loans By

"When the. war is over,, ifbusi¬

Banks
llecessary By F. D. I. G

ness industry and

it-

do

it.

from

''either

credit

institutions or from governmental

agencies," according to Associated Press accounts from Washington
on Sept, 28, from which we have *
taken the following:
other Federal agencies, the report
"Urging v in its annual report continued, 'increased supervision,
that the banks increase their capi¬
regulation and control by the
from

tal

the

present earnings,
F. D. I. C. bluntly said:

prospect for survival of
present banking system . ..... .

our

depends largely upon the intelli¬
gent and resourceful leadership of
the bankers themselves in provid¬
ing sufficient capital and man¬
agerial skill to enable the banks
the

bear

to

tension

in

credit

of

risks

ex¬

owned

banking

justify the maintenance of our
private banking system.' v
"Discussing what is termed the
recent rapid growth in assets and
liabilities without a corresponding
increase in capital, the report said

'the

necessary,

of

added
able

at

the

that

for

net

sustained

"Reviewing

outlook is

1942

favor¬

activities,

$19,000,-

aggregating

deposits
Total

loss

the

to

,

26

with

question is not whether a
exceeding
the
$5,000
has enough capital for the deposits
F, D. I. C. insurance limit was
type of assets which it now holds
bank

the

and

which

risks

it

now

ap¬

to face but whether it has

estimated at $7,000.,

the

of

"Fourteen

Even

' «/*

banks

the

,

tion.

world

known

in

the

...

Associated

In

advices

Press (Buffalo)
given in the New York

as

Tribune"

"Herald

quoted

was

as

Gov.

follows:

-

Bricker

"too many people have taken the
attitude
that
government
can

era,
the Assemblyman
added, must, be "necessary, justi¬

solve every problem."

i;

post-war
and

constructive"

and

must

"Our government

only re¬
be located where they would do flect the aims, attitudes and good
the maximum good in cushioning' judgment, ultimately, of the great
bulk of its citizenship," he said.
expected unemployment.
"We don't want boondoggling," "The development of that attitude
is the responsibility of churches,
he declared.
homes, local communities, lodges
and
societies
of
every
sort.
Through them people meet, dis¬
cuss
problems, help others, de¬
velop character which ultimately
can

Losing Favor In Capital

(determines the character and the

were

Establishment of a world police course of our national life."
capital to assume the merged with the assistance of force to maintain peace after the : The Ohio Governor said that in
proper and reasonable risks of F. D. I. C. funds, the report said, War has lost favor among high- the rehabilitation
period "it will
participation in the financing of while the remaining six were ranking Washington officials, ac¬ be necessary to recapture the
business enterprise.', placed in receivership.
Of $11,- cording to Associated Press ac¬
spirit of private enterprise." - •
;
"To the extent that such risks 000,000 paid out during the year, counts from Washington Sept. 27, I "That means - a foundation of
are
not borne by the bank but it added, all but about $3,000,000 Which said:
sound tax legislation to provide
pears

versive
to

enough

we

elements

which threaten

destroy those freedoms which
at

America's inspiration

once

and the bulwark of its

strength."

II. S. Chamber Gom.

!

Approves Ulan-Power
Stabilization Plans

.

World Police Plan

firm hand

a

must root out those evil and sub¬

are

•

.

Governor Bricker asserted that

Public works undertaken in the

>.

tions, and with

'

fied

'well

quired F. D. X C. aid, adding that
all but 26 of 60,000 depositors
were were afforded full protection
000.

Enterprise Ira Pesi-War Period

approach by Gov¬

post-war problem,
said, the world of tomor¬
would be "entirely different"

from

the agency said only 20 banks re¬

of

Free

Governor John W. Bricker of Ohio called on Sept. 28 for the
"recapture of the spirit of private enterprise" and Governor Dwight
.

Twenties.

the next few years.

its

proper

row

profits' to be

over

economic structure."

a

\

other time' and

any

it,

Mr. Ives

"The F. D. I. C. said the quality
than

not,

do

ernment to the

of assets 'appears today to be bet¬
ter

or

to

,

becomes
•

like it

have

H. Green of Illinois at the same time expressed, it as his view that,
government "must withdraw from regulation of our economic sys¬
tem in the post-war world."
'
•
Government's role, he asserted,
The views of both (who are Republicans) were voiced at a dinner
must be essentially one of coop¬
in Buffalo, N. Y., of the Supreme1*eration with business, particularly
Green said, "we who remain at
with little business, which he de¬ Council,, thirty-third degree Ma-'
home must examine our social,'
scribed as "the backbone of our sons, Ancient Accepted Scottish
Rite, Northern Masonic Jurisdic¬ political and economic iristituwhole
with

privately

a

system

increasingly difficult.'.

which will

manner

a

continuation

and

'"The

become

Government

we

will

ment and the free enterprise sys¬
tem

that business and agriculture will have to borrow

competing

Gov. Bricker Galls For Restoration Of

overwhelm¬

an

and that's the end of free Govern¬

they put themselves in position to make reasonable "risk" loans in
the post-war era

And, whether

Government

Deposit Insurance Corp., released on Sept. 28, that unless

federal

can't

commerce

job, there'll be

ing demand that Government do

in the annual report of the

The nation's banks were cautioned

a

1331

Operation

of the
Commission's

power

stabilization

plans

War

Man-.

area

labor ',

have

demon¬

strated the soundness of that
ap¬

proach

lem,

to the man-power probin
the
opinion
of
the

Manufacture

Committee

Chamber

Commerce

of
to

this

a

/

the

Advices

dis-

United

effect

of

States.

contained

were

of

in

the

patch Sept. 23 to the New York
"Herald Tribune" from its Wash¬

,

r.

shifted to the F. D. I. C. and

are

will be recovered."

In

diplomatic

well

as

mili¬

as

tary quarters the view frequently
is expressed

Additional

Manpower Needs Great Despite
Continued Record Volume Of Employment

that a peace-enforc¬
organization made up from

ing

the military and naval services of
the United Nations would be un¬

wieldy and impractical.;
' ■
The counter-proposal to which
.

Maximum utilization of civilian manpower has

finally emerged

■■■p.

the primary problem on the nation's home front, according to the
National- Industrial
Conference Board.
Inductions into military

this Government is understood to

had proceeded according to plan. To date, the
flow of manpower into munitions industries, in contrast, has lagged
below schedule, as has munitions production.
The. problem of labor
supply
has
grown
so
great'*
that if production schedules are largest cities.
Nine out of every
to be met during
the next 12 10 major metropolitan -areas Will
be faced with general labor short¬
months, 1,300 workers must be

tion

as

service by. mid-1943

found for essential war industries
for

1,000 entering military

every

service.

that

fact

the

total

level

of

63,600,000, asin
the previous month.
Little relief,
it adds, was afforded' by normal
seasonal reductions of 320,000 in
record

that; each

is

the

of

United

For

January

the

first

this

of

month
year,

a

slight decrease developed in the
excess of actual employment over
the

normal labor force.

was

Reporting today to the Cham¬
money
and private ber's board of
directors, the com¬
industry, business and mittee held that national service
agriculture," he asserted. "It also legislation, such as is
proposed in
means
a
stable, careful, honest, the
Austin-Wadsworth
bill,
is
economical administration of pub¬
unnecessary, and urged that the
lic affairs. Only in this way can
present .voluntary, effort, be con¬
public confidence in the institu¬ tinued and strengthened.
"Such'
tions of government be established
legislation would stifle willing;
for

venture

jobs

in

and maintained."

:

From

the

Gov.

quote

i

"

>

-

advices

same

Green's

;
we

remarks

effort and substitute

compulsion/',

the committee said.

as

Steps Taken To Permit

land,: sea and air forces sufficient
to discourage any acts of aggres¬

ment

"must

and

other

Service Vote In'44

sion.

units the rights and powers which

;
/ •
Some officials say that in much
employment, including talk of the post-war world the
the military
forces, was about idea of a police force is used
6,500,000 greater in July than in loosely to mean any employment

since

bureau, in which it

also stated:

Nation's;
but
particularly
the follows:
United States, Britain, -Russia and i; Governor Green declared in his
China, should keep in service prepared address that Govern¬

"Total

The Board states that this need
additional
workers
exists mid-1942.

despite; the

giving most serious considera¬

by next summer.

ages

for

number of persons at work or in
uniform in July continued at the

be

ington

of

force

to

localize

international

disputes; and avoid another
eral

conflict.

stances

But

in

many

gen¬

in¬

the advocates of the idea

Civilian

return
/

local

to

the

states

governmental

were

Indicating
that
preliminary
steps to enable several million

usurped—before the begin¬
ning of the present war as well as

members of the armed services to

since."

cast

"The main issue in America to¬

day is
one

no

'liberal'
of

longer the time-worn

between
and

view,"

what

call

we

the

'conservative' points

he, added.

"Today the
issue is
between
centralization,
totalitarianism, state socialism-

definitely contemplate the organi¬
employment, because of the re¬ zation of a truly international
duction in agriculture, was about power to which all of the United call it what
you will—and free
360,000 below the corresponding Nations would contribute men and representative American govern¬
agricultural employment during June total, while civilian non- materials.
ment in which the will of the peo¬
the month, and by further reduc¬ agricultural employment fell off: i
Both 'diplomatic and military ple is law under their Constitu¬
tions of about 200,000
in con¬ by about 40,000.
The former, officials claim this would
not tion."
struction and trade.Additions to however, remained about 700,000 work because of the innumerable f
Governor Green said the people
the armed forces and to manufac¬ and
the
latter
about
1,000,000 practical difficulties, such as dif¬ of Illinois are going to insist on
turing personnel were sufficient above their corresponding 1942 ferences in language, traditions full participation in the peace that
to offset
these declines and to totals.
Nearly 90,000 additional and operational procedures of the follows the war.
maintain total employment at the workers were taken on in July in world's
"But they* are also going to in¬
existing armies and navies.
highest level ever reported.
manufacturing, raising total fac¬
According
to
the
principle sist," he continued, "that whatever
The
Conference
Board's
an-* tory employment to 16,300,000, as
post-war problems shall be pre¬
broadly stated by Mr. Hull each
14,700,000 in mid-1942^ nation
sented
by the nations
of
the
nouncement, issued Sept. 16, also agaipst
participating in some world
13,500,000 in mid-1941 and 10,.said:
organization for peace would sup- world, and whatever international
200,000 in mid-1939."
commitments America may con¬
oort peace forcefully in two ways:
/ "The primary source of the new
labor recruits needed for the cur¬
By
maintaining an
army
and sider, our Constitution must be
adhered to—not by bureaucratic
rent production program remains
navy able to cope with any pre¬
dictable outbreak and by always interpretation, but by the literal
the nation's womanpower, par¬
,

absentee ballots

State

primaries

dential

election

Congress
Press

advices

"Journal

Washington

the

Green

in

Associated
New

American"

Senator

taken

were

from

in

1944

Presi¬

the

Sept. 24.

on

appearing

in the

and

York

that*.

stated

R.

(Dem.,

I.),

Chairman of the Senate Elections

Committee,

announced
he
had
Secretary of War Stimson
and Secretary of the Navy Knox,
to give the Committee their1 views
asked

on a

pending plan to permit over¬

seas

service

As

and

men

tb

women

simplified V-mail ballot.

use a

soon

:

the statements from

as

Secretaries

and

Stimson

,

Knox

*

IBlr-

1

Free

ticularly in the age groups 20-34
years.
crease

As yet

significant in¬

no

has developed in

the

of age has been only
very moderate.
Under present
schedules, the number of women
30-34 years

work

must-:

in

civilian

increased

be

1,000,000

by

July,

industries

by

1944,

nearly

and

an

.additional 200,000 must be found

How

for the armed forces.

Enterprise

being willing to
when-necessary.

Be Preserved After

pro¬

portion of women 20-29 years of
age entering
the labor market,
while the entrance
of women

at

■"

rap¬

idly the readily available woman-*

Thus

War

Says Ives Of N.Y.

State Assembly, declared on Sept.
25 at the Northeastern Conference
the

.

Council of

.

State

ments in -.New York

Govern¬

City. //

•

.

lows:

reveal

55

areas

of

acute

labor

as

to end the threat of war.

t

Currency-r Stabilization

fol¬

■

"The programs we devise," Mr,
Ives said, "must be based on the

WiU Not'Intrude'' On

Functions Of Private Banks

with three times that firm and fundamental 'beliefthat eight New York bankers repre¬
prospect by the end of free enterprise must be preserved; senting the New York Foreign Ex¬
the
year.
These current and Without free enterprise we cannot change Committee, have been ad¬
prospective labor shortgage areas have free labor and free govern¬ vised by Treasury officials, it was
contain over 50,000,000 inhabitants ment. If we lose any one, we lose declared on Sept. 24, according to
shortage,

embrace

at

least

20




of

the

the others

as

well.

war

open

which

United Press advices from Wash-

hearings
he

on

the

pro¬

with

sponsored

Senator Lucas (Dem., 111.).

Tex.),

Chairman

Committee

1

Worley

Representative

(Dem,,

the

House

of

Elections, also

on

an¬

*

nounced

continues, Governor

"World-Telegram," which1 further
reported:* /
'
"The
bankers

which
with

Dr.

to

of the first

vance

March,

met

plans

open

hearings

similar legislation well in ad¬

on

ington appearing in the New York

said
we

primaries nextadvices

the

from,

quote, which also had

the following to say:

Harry D. White, Treasury director
of monetary research and author

"Principal

provisions

of the U. S. Government's stabili¬

zation program, and
the Treasury staff.

printed

of

the

pending legislation are:

V1qV^Tr\?aS^eriS

ing included

President

L, W. Knoke, Vice-

Federal* Reserve

Bank

of -New

Bank; C. J. "Stephenson, Canadian
of Commerce; R. M. Youngs,
Dominick & Dominick; S. Stern,
Vice-President
Chase
National

Bank

Bank, and L.'F. Loree, Vice-Presi¬
dent Guaranty Trust

MAn

members of

York; L C. R. Atkin, ViceThe Treasury Department's plan President J. P Morgan & Co., Inc.;
for post-war exchange stabiliza¬ C. E. C. Freyvdgel, Vice-President
tion "would not intrude" upon the Bankers Trust Co.; L, N. Shaw,
National
usual functions of private banks, Vice-President
City

number in

and

meaning of that

Constitution itself."

♦

/

In

Sept. 26 further quoted him

time-tested

Germany

■

work in the past three years.

reports issued by WMC

future

.

of

and

As the

Japan developed new dreams
of conquest and began to imple¬
Democracy in the United States, ment
them, one of the peaceful
will be doomed if Government
nations would move in, disarm
post-war programs interfere with
the potential aggressor and take
reemployment of persons in free
such; other measures as the coun¬
enterprise,- Irving M.; Ives, ma4. cil of
nations believed necessary
jority leader of the New. .York

reportinghis remarks as
above, the New York -"Times" <pf

"Field

some

those forces

would

posal,

or

power has already been absorbed
by industry is evident from the
60% increase in "the number at
,

if

use

received, Mr. Green said, he

are

Co.

'overseas
on

paper

processing,

mail

*

_

.

President
gress.

.

.

and

'

war

ballot,*

suitable for V-

for voting for

members

.
of

The War and Navy

Con¬■

De¬

partments would print, distribute
arid

assemble

the

ballots

with

commanding officers of all serv¬
ice

units

responsible

for 1 seeing

that any eligible service man or
woman

obtained

one. '

An oath of

eligiblity would be the only legal

requirement."

THE COMMERCIAL & FINANCIAL CHRONICLE

1332

jguage

conclusive

The Annual Report
(Continued from first page)
customer—that

is, by the very i stituting in themselves the source
people who think they are being of prosperity. In times of general
benefitted by them.
The public prosperity, it is true, the machin¬
and private provisions for old age, ery of production and distribution
accident, unemployment and other gees into high gear, and in so
liabilities are business costs. They doing requires the employment of
are paid through increased prices
so large
a number of human be¬
and decreased purchasing power. ings ihat
neany
everyone
wno
Business enterprise is not an orig¬ wishes work may find it at fairly
inal source of funds; it is only an satisfactory' wages.
This y has
intermediate paymaster — and if brought about the widespread il¬
its income from operations is less lusion that the whirring of the
than its outgo, the difference can machinery causes the prosperity
be made up only by selling off, and the employment.
From this
directly or indirectly, the facili¬ illusion is deduced the theory that
ties which must be used for

the seed

is, by dipping into

business

when

unit is becoming
of
importance in these days

so

post-war worlds
being constructed with alter¬

are

many

nate bricks of fact and

fancies—and

fancy.

vate owners, and
is
to
be
found

The

whole social fabric

a

and

distribution

that the
in

the

The

complete

facilities in

our

as:con-

,

.

;

confidence will take
This

State

answer

employment
war

of

is offered

the

If that were the case,

those of

who

us

in

are

the

man¬

now

"Food

prices are high, notwithstanding these summer declines.
They averaged about 9% above last year and nearly 47% above the
low levels prevailing just

August, 1939.

before the outbreak of

war

in Europe in

This August the sharp price declines for fresh fruits
and vegetables averaged
7%, but they were considerably greater in
some cities than in others.
Cqbbage was down nearly 25% during
the month, sweet potatoes and apples 17%, green beans
15%, onions
and white potatoes 10%, spinach 8%, and there were small reduc¬
/

"V

simply not

in the wood to
preserve—much less to increase-

.'■■■':/■

...

•'

.

we

our

accounts that

our

can produce and exchange our
products only as others produce

we

exchange with us. For
know, the only thing

all

as we

inated by a

levels.

pre-war

reduced

prices

the previous month.
The only
other important price movements in the food group were a seasonal
increase of 9% for eggs, an advance of 4.6% for tea and decline of
2.0% for canned peas and canned vegetable soup.
"Differences from city to city in food price changes were un¬
usually great from July to Auugst.
In northern areas price reduc¬

in

1

especially large, amounting on the average to 2.3% in New
York, 2.9% in Detroit and 2.8% in Bridgeport and Denver.
In many
southern cities, because of the earlier growing season, prices had al¬
ready begun to increase seasonally.
"Living costs other than food were on the whole moderately
higher from July to August.
Clothing prices rose 0.2%, the dis¬
appearance of lower price lines more than balancing clearance sales
for certain summer goods.
House furnishings and fuels and utility
rates were up 0.1%.
Miscellaneous goods and services rose 0.3%,
because of higher charges by hospitals, motion picture houses and
beauty and barber shops.
Rent costs are collected quarterly by the
were

Labor

Statistics

have

and

shown

very

little change for

time."
;

.

COST

'
;

'

'

'L

i

..

'

:

LIVING

Indexes,

IN

LARGE

Date—-

CITIES

1935-39=100*

v

Fuel

,

•'

'

House-.:

electricity

fur¬

/...

'

All Items

Food

1

Miscel¬

15

1S42: May

15——

Aug. 15
Sen. 15—

104.3

97.5

100.6

100.4

105.0

100.8

100.1

101.9

121.6

126.2

126.1

125.2

108.0

106.2

123.0

111.1

117.8

126.6

125.8

\ 108.0

106.2

123.6

111.4

123.8

15_—

Aug. 15

100.3
100.7

117.5

_

____

Rent

93.5
97.8

116.0

— —_

100.8

139.0

128.6

t

107.7

125.4

115.9

123.2

1941: Jan.

Clothing

98.6

.

1939: Aug. 15-

1943: July

OP

'

"'}y

-vV',

137.2

128.9

t

107.8

125.5

116.2

and ice

109.9

'

<

nishings

104,9

122.2

laneous

110.9

PERCENT OF CHANGE

Fuel,
■

;

,

items

Date—

July 15, 1943 to Aug. 15, 1943
Sep. 15. 1°"2 to Aug. 15, 1943

—

Aug. 35, 1949 to Aug. 15, 1943

+

+

0.5
4.6
4.9
6.2

Food

House-

elec-

-

.

All

fur-

tricity
Clothing JRent and ice

■■"

things in balance, through
money symbols.;
Bookkeeping is
not

an

end

is not

abstract

during the
is

That, we believe,
public expects us to

year.

what the

account

for.
We are answering
questions, "What did you do
With the money we paid to you?

the

Who

got

ness?"

what

The

busi¬

first; major

presentation

our

the

of

out

item in
"Total Prod¬

is

ucts and Services Sold." It is

should
with

science, and its
making the figures on

check

0.1

+

0.1

+

0.3

+

8.4

+

2.5

0

+

1.5

+

1.5

+

4.3

+

8.8

+

3.0

0

+

1.5

+

2.0

+

4.6

2.7

+

4.8

+12.8

+

2.1

—1.7

+

2.8

+

+40.3

+28.0

+2.9

+

6.9

+25.4

+14.0

+46.7

+28.5

+3.5

+10.6

+24.8

+15.7

pt

oua^erly dates,

{Changes through June 15,

1943.




March

cost

15, June

of

goods

purchased by

15, Sept. 15,. and Dec.
r

not

are

the

We

We

fifth

are

such

of management

part

without

low

that

figure is

the

to

cost

a

the

us

management

Our records
of

15.

f
is

the

facts

things

which

that

economy.

total

as

distinguished from the traditional
item

an

"Profits
in

so

of

per

Before
re- ;

many

wistful.

ers-

public

But the effect

the

on

•

'

their

and

political representatives is quite otherwise. They
believe

for.

that,

the

would

if

tax,

have

wads

of

they

for

down
and
their tax

money,

to

getting
to
these
they could be cut.

before

Both

the

stockholders

public

are,

of

porate taxes
the

and

•

the

Cor¬
simply costs, and

course, wrong.

are

method

does

been

pulling

grateful

are

not

stockholders

unearned

watchers
melons

it-had
'the

been

of

their

assessment

not

change this fact. Costs
must be paid by the public in
prices, and corporate taxes are
thus, in effect,, concealed sales
taxes.

the

We

do

not

incidence

exactly

know

of corporate

taxes,
but we do know that they have
to;:, be paid - out of the prices:
charged, for there is no other;
of funds.

source

In

closing, let me remind you,
that public opinion is formed by:
the

relatively few.
It
is not
by those who read only

formed

the

tabloids

formed

the funnies.

and

shop,

every

by

a

Inv

opinion

is

number

public
small

.

of

is

shown—we

not

economy.

present

our

the

If each of us
in under¬

segment

functions

employment.
is

This

for

spent

the

there

can

Products

be

and

used

sum

outside

purchases

of

is

repre¬

is—the cost of

wearing out of the facilities
by the workers. Instead of

"Contingent Reserve"

and

nation

"Special

or

plicable

position

to

shall be

and

arrange

in

a

govern

our

"Estimated

statement

Additional

carries

Costs

Ap¬

to. This Period Arising
Out of War." This element rep¬

ourselves

on
the facts, instead of resents: management's estimate of
present, by trial and error. the cost of repairs which must be
That is why I regard the intel¬ .deferred, and of those costs which
ligible annual report not as a duty will be incurred in the transition
but as an elementary act of self- to a .peace-time, basis.
It is not
preservation, and that is also why an. "additional profit" that has
I regard the unintelligible annual been withheld: it is a vital part
report as ;an invitation to mis¬ of present costs.
/./.'v.'r r
as

at

understanding. ; A :+'■+;
It

has

Steel

been

the

Corporation

years

•;

of

the

through

the

to present the ordinary

counting

ac¬

in considerably
required detail,
with
whatever
supporting
ac¬
counts. Seemed necessary for a full
reports

than

more

ki

the

recent
on

We still ^o that.
years it has been

us

The interest item in.

;+A+1 AAA

custom

that technical

ac¬

our

costs is

taxes—Federal, State and

local.
There

of

the

who
a

renegotiation procedure-=

consider

true

have

many in our Govern¬
witness the philosophy

are

ment—as

cost.

that

taxes

Some

contributed

to

not

are

accountants

this

of

view

that

government, thus considering in¬

did

hot- at

all

upon

income taxes

share of the net

come

stand our

real fact is that taxes are

understand

our

-

accounting

before taxes

come/of

lan-^ •: escapable

the

as

a

income: going to

the story to the considerable
audience that wanted to under¬

workings but could not

facts

as

And

unless

do

we

in

secure

understanding of the
components of a healthy produc¬
future for

tem

is

an

task

fail.

It

need

not

in

which

is

be

sys¬

States.

It

must

not

which

we

in

task

a

can

enterprise

for the United

or

a

the

we

fail.

Threaten Free Press
Washington
bureaucrats
are
threatening
the
nation's
free
press, Charles P. Manship, pub¬
lisher of the Baton Rouge (La.)
"State-Times

and

Advocate"

President of the Southern

and

News¬

Association, declared on
Sept. 25.
The job of preventing

paper

Government

petuating

bureaus

from

themselves

will

war

fall

per¬

after

the

the

Mr.
Manship asserted, according to
Hot Springs,: Ark., advices to the
New

York

which

also

on

press,

^"Journal-American,"
him

noted

saying,
there's no
If
you lose a free press, you lose all
other freedoms,
including those
four now broadly cited."
"without

such

a

thing

free

as

a

as

press,

free country.

presen¬

represents, of. course, the
payment for the use of borrowed
savings.
The final element of

looking

accounts

the

tation

counting and its language tells the
story only to those few who have
the ability to analyze them—and
the

and

and to do it in clear
language that will convey its com¬
plete understanding. ; ;

Ser¬

the

represents

Depreciation

form, the total national
will be understandable,
we

truth

are,

f

"Purchased

vices."

economy
a

the

major element of cost

Reserve"

as

for

they

Ours is

make the case

to

no

economy

a

management/for stockholders or

always the task

tion and distribution there

sented for what it

is

make

to

and salaries excludes the amounts

the

records

task

business/ for labor, for

charged to construction. We de¬
sired especially to show that only
as there is exchange of goods and
services
upon
which the whole

our} goods and services in order to do

enterprise is a
national economy.

the

not

America

Each

our

is
for

for any particular group.

have

make

up

Ours

grouped these important costs to¬
gether. The figure used for wages

our

of

—

accounting statement where such

business.

national

standable

presentation

our

represent

to

go

-.

segment of
The

the master tools

are

Economy and they provide

our

In

Another

tell
wage

habit

much

ports—which is only taxes per
share in bulk—makes sharehold¬

case

business.

vehicle would founder.

ness

borne in

+

are
based on changes in the
low.^r-salaried workers in large city.

accuracy

wheel would break and the busi¬

But

t

indexes

that

for

of business.

integral

an

them

debits and credits.

our

Miscel-

0.2

item

included

com¬

sions.

laneous

+

+
+22.2

suH'e-ed

monies: that, have been paid to us

The first cost element presented
r what
we
call*, "Employment
Costs." It comprises wages, sala¬
ries, social security taxes and pen¬

ings

1.3

+24.9

and

"profits" before this
or
that payment.
We hold that
there can be only one kind of in¬
come
and that it is the figure
obtained
by ./subtracting all the
Costs from all the receipts;
Basically, we account for all the
or

the left page exactly balance with
the figures on the right page. But

nish-

—

May 15, 1942 to Aug. 15, 1943
15, 1°41 to Aug. 15, 1943
sThe-e

word

sense, everything be¬

the

understanding.

Jnn.

tRents

the

the

The

so

economy,

■

Aug. 15, 1939 to Aug. 15, 1943

earners

"net,"

dropped out

statements

share.
Taxes"

our

as

highly intelligent workers, and
prised of sales and miscellaneous
the same is true of every com-/
although it con¬ revenues.
It is,; in terms of the
sists of things, has to be expressed
munity.
It is our job to furnish
simple account, the total amount
these people with the facts on
in money representations; and it received from
our customers.
In
which they can form their opinions.
is our job as controllers to keep an ultimate
Our

;

wheels

•

word

have

we

income

our

"income"

that

controllers

which have been rising steadily to more
Under a new OPA ceiling regulation
there was a decline during the month of 3.5%.
There were also de¬
clines for meats, amounting to 0.8% for beef and veal, 0.9% for pork
and 1.1% for lamb, representing continued adjustments to an OPA

some

and

costs,

We know from

and

with

double

of

affairs consist only of receipts and

are equally helpless
employees against the
primary power of our customers.

earnings by curtailing production,

in prices for fresh fish,

Bureau

costs.

"profit"
and
the
word
"surplus"
and
we
have dropped also the prac¬
tice
of
drawing sub-totals and
making intermediate stops to note

than

tions

and

Of

is

were

which

into, receipts

the

"Aside from fresh produce, the most important declines in August

'cutback'

phrased

it

only known method of ac¬
lettuce, beets and grapefruit.
"However, vegetables remained at comparatively high levels— counting accurately for the pro¬
about 33% above last August and more than 90% above- August 1939. duction of goods and services is
Thus, sweet potatoes cost 14 cents a pound, compared with 5V2 cents by the use of double-entry book¬
Whenever words
are
a pound just before the war.
Green beans and spinach this August keeping.
sold for 14 and 13 cents, respectively, against pre-war prices of 7 and used to arouse the emotions, we
tions for carrots,

8 cents.

en-

business

Thus, for the purpose of report¬
ing to the public, our financial

orig¬
corporation,-indepen¬
dent of exchange, is depreciation.
.{•: All of that would be wholly ap¬
parent, if we simply and intelli¬
Fresh vegetable prices continued
seasonally lower from mid-July gently presented our financial ac¬
to mid-August and resulted in the third consecutive
monthly decline counts.-Also it would be
wholly
in the cost of living for city workers—a
drop of 0;5%, Secretary of apparent that if the State
stepped
Labor Perkins reported on Sept. 14.
"Food prices as a group were into our shoes it would be in no
down 1.3% and more than balanced smaller increases
during the better case than we are—for al¬
month for other goods and services," she said.
though the items of cost might
Secretary Perkins further reports:
be
shifted
and
given different
"Since the decline in food prices began in May, the average names, they would all be present
family food bill for staples has come down by 4.1% and the entire somewhere=in. the body economic.
Statistics

are

applicable to

agement of industry know that we
are
only economic servants, that
we
possess no power to employ
except as we are employed; that

Living Costs In Large Cities Declined 0.5%
Between July I5-Aug. 15, Says Labor Bureau

The index computed by the Bureau of Labor
stands at 123.2% of its 1935-39 average.

terms of cost elements which
every

by

passing; A A expressing taxes

income account in

our

only the cupidity; of' prj-. terprise, every operation pf.govvate owners stood between us and
ernment, and even to charitable
perfect material happiness, I am organizations.
We seek to deal
sure we should all stampede, into
with
the .simple
account, with
•he arms of the perfect State. But Credits and
debits being para¬

as

living by 1.5%.

We view

>

are

we

if

and

cost of

fiction

through which

perfect
ready rand; willing to

over.

and

over.

implies; that
lies

take

selfless

competence of the perfect bureau¬
crats of the perfect state.

is being woven out of them—con¬
ceive of the paraphernalia of pro¬

duction

of the

!

.

social

obligation of the
machinery to keep
it
whirring and to preserve a
high level of employment. It thus
appears that depression and un¬
employment derive from the cu¬
pidity and incompetence of pri¬

corn.

extreme

the

owners

Exactly defining the function of
a

is

it

pro¬

proof that it- is within
and presentation. There- cost and they cannot be ignored
.the-State to provide
j fore we have been making over by management in the conduct of
complete employment in; peace. ] our formal accounts and terminol- business or the formulation of
We are told that, the State Raving ,'pgyjin order that they could not
policy.
,
/
demonstrated its ability to em- mislead,
and we have evolved
Let us make it plain that cor¬
ploy, the people will not* again from them several new presenta¬
porations are only tax collectors,
tolerate any condition which in¬ tions which we think tell 'better
taking from the customers for the
volves less than a high level of the economic story .of the year.
Government.-There is a fiction,
employment and at a high level We have*, conceived of our new
firmly planted in the public mind
of wages.
form of income account as having
It follows, so it is said;
as
a truth, that the shareholders
that if private ownership cannot one
primary function—to focus and not the
public pay corporate
justify itself by maintaining these attention upon the important cost
taxes. We in business tend to conhigh levels, the State in its riper of factors affecting the period firm the
the power of

Understanding Through

duction—that

Thursday, September 30, 1943

as

the true in¬

business.

as.any

.

other

But

-

as

item

the
in-

of

Papers Raise Price
The Toledo
nounces

a

(Ohio) "Blade"

price

/

three to four cents
effective Sept. 27.
ment cited

a

increase
a

an¬

from

single copy,

The

announce¬

16% increase in the

price of newsprint during the last
six

months

and

other

mounting-

costs, including wages.
The Altoona

(Pa.) "Mirror" has

also raised its price to four cents

instead of three.

,

The

home

de¬

livery price has been raised from
75 to 95 cents.

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4216

-

August Retail Prices Increased Slightly,
According To Fairchild Publications Index
The Fairchilcl Publications retail

price index has increased 0.1%

having remained unchanged for two consecutive months.
This increase brings the index to the same level it was in Septem¬
ber, 1942, at which time it remained constant for eight months.
It
is 27.2% higher than the period just preceding the outbreak of war

1333

$2,841,000; streets and roads, $6,802,000, and unclassified construc¬
tion, $7,716,000. VV:>- ..'■
■

t.

New capital for construction purposes for the week totals

$100,811,000. This volume is made up of $100,000,000 in Federal appro¬
priations for construction and $811,000 in State and municipal bond
sales.

1939.

,,

"

''•!

remained unchanged with the
exception of women's apparel which increased 0.3%.
Furs continue
to advance, and although there was a slight decline in hose it did
not quite offset the advance in: furs, causing the rise in women's
apparel.
Women's apparel also showed the greatest increase over
1942, 0.3%.
Compared to the same period piece goods declined
0.1%, and home furnishings remained the same.
Piece goods in¬
creased the most, and infants' wear the least over the pre-war period
of

groups

^dividual

items only furs and women's hose showed

1.2%

Furs increased

change during the month.

and women's
effects of the

The index is still showing some

hosiery by the Maximum Price Schedule 339.
Women's hose also declined from last year, 5.2%, whereas furs in¬
creased 4.7%.
The next largest rise occurred in men's clothing,
0.5%.
This advance is less than over Aug. 1, 1942 since at that time
price ceilings set

on

the

The

;;

report

census

slightly and the indications

are that it will remain comparatively stable in the near future, ac¬
cording to A. W. Zelomek, economist under whose supervision the
Index is corhpiled.
Any further fluctuations will continue to be

in 1942 and

1941.

JAN. 3,

RETAIL

'

,

States

June 1,

July 1,

1942

1943

1943

1943

113.0

Aug. 1,

Sept. 1,
1943

69.4

113,0

113.0

Piece

65.1

112.3

112.2

112.2

112.2

105.2

105.3

105.3

105.3

Women's

Apparel

Infants'
Home
Piece
.

.

Wear

113.1

V 71.8

112.7

112.6

112.7

112.7

113.0

76.4

108.0

108.1

108.1

108.1

108.1

70.2

115.5

115.5

115.5

115.5

115.5

__I

Furnishings

;

Goods

■

-

Silks

84.8

L

69.2

■

.

—

;

68-6

.

108.0

143.8

l

1

84.7

84.7

108.0

108.0

108.0

143.8

84.7

108.1
143.9

57.4

Woolens

Cotton .Wash Goods

143.8

Georgia

'<■

Blankets

126.8

126.8

126.8

126.8

135.0

135.0

135.0

135.0

135.0

94.1

91.1

89.9

89.3

&

House

&

Dresses

75.5

Under.wear;.
Shoes

Men's
->

^^-^—.

140.5

140.5

,140.5

111.2

111.2

111.2

111.2

135.4

137.9

139.3

140.0

141.7

.'■ 'V

Apparel

!

102.7 U

7

102.7.. .,.102.7,
92.4

92.4

76.5

v

"■

•102.7.

92.4

:r

92.4

102.7,

108.0

108.1

sr'-108.1

108.1

114.6

114.8

114.8

114.8

114.8

74.3

99.0

99.1

99.1

99.1

99.1

.

Hats

Neckwear—

&

69.7

Caps

Shoes

94.3

94.3

70.1

105.5

106.0

106.0

106.0

106.0

109.6

109.6

109.6

109.6

109.6

114.5

114.6

114.6

114.6

114.6

____

74.3

-—

Shoes

103.6

•

79.9

Coverings

50.6

Radios

103.7

103.7

106.0

106.0

106.0

129.2

69.4

_________

103.7

105.9

80.9

Furniture

129.2

129.2

129.2

129.2

146.9

146.9

146.9

66.8

66.8

66.8

66.8

'

t

66.8

eo.i

Household

Appliances

China

94.7

94.7

93.5

93.5

81.5

Electrical

110.6

110.6

NOTE—Compos'te Index is a weighted aggregate,
average

\

103.7
-

106.0

-

Major

95.7

95.7
93.5

110.6

110.6

!

States

the

crops

The

of

1942

group

indexes

are

arith-

In

the

has

up

68% as
77%

rise in State and municipal work, and the
The report continued as follows:

climb in Federal volume.
work

tops the 1942 week by 25%, but public construc¬

55%.

>

:

•

1943 volume to $2,437,651,000, -an average of $64,149,000 for each of the 38 weeks.
On
the weekly average basis, 1943 volume is 67% below the
$7,632,606,000 reported for the 39-week 1942 period.
Private construction,

$312,444,000,1 is 32% lower than a year ago, and public construction,
$2,125,207,000, is down 69% when adjusted for the difference in the
of weeks.

Civil

engineering construction volumes for the 1942 week, last
^
weeky and the current week are:
Sept. 24,1942 Sept. 16,1943 Sept. 23,1943
$147,699,000
$43,332,000
$71,951,000

Total U. S. construction^
Private construction

7,619,000
140,080,000
7,344,000

State and municipal..

Federal

In. the

_

________

classified

6,218,000
37,114,000

132,736,000

________

Public construction

round

no

bales

for

1943;

3,289 bales

are

until

defense, the Department of Com¬

further notice

the

publication of sta¬

tistics concerning imports and exports.

Because

of

conditions

war

30,535,000

6,579,000

construction groups, gains over

9,491,000
62,460,000
8,366,000
54,094,000

last week

are

in

and

'

"

•

the

are

difficulty in obtaining de¬
being omitted from this report

being.

Industrial Aclivily Maintained High Level
In August, Federal Reserve Board
The

Board

of

Governors of the Federal Reserve
System an¬
Sept. 22 that industrial activity and war expenditures
were
maintained in August at a high level.
Commodity prices
showed little change.
Retail trade continued in large volume.
on

The

Board's

of general business and financial condi¬

summary

tions follows:

minerals

of

showed

the

and

and

manufactures
little

and

and

was

maintained

in

member

to

the

the

Distribution

season¬

Output

continue

to

and reached the peak

ad¬

levels

"Department
tinued

large

store

sales

con¬

in

August and the
first half of September.
Increases
during
this
period
were
less
than

seasonal, however, following

maintenance

of

sales

at

a

com¬

achieved earlier this year.
There
were
further slight increases in

paratively high level during July.

activity

at

at

plants
in the
equipment indus¬

war

transportation
tries.

Output

of

other durable
products showed little change.
"Production of nondurable goods

declined in August,

reflecting fur¬

For the year to date value of sales

department

about

13%

stores

has

than

greater

Inventories

at

department

increased

in

recent

and

leather, and food products.
Cot¬
ton consumption in August was

than at the

indicating

about

period

a

lowest
of

declined

and

year ago

level

1941.

than

lower
since

the

the

at the
beginning

was

Leather output
in

same

has also

recent months

and

is

of

are

somewhat higher
beginning of this year,
that receipts of new

the value of goods

de¬

cline

from

July

and

figures

seasonal

tember.

than

Shipments
than

less

a

the
were

August

of

was

due

de¬

peak reached in
one-fifth larger

the

Treasury

in

from
It

show little change in August and
the
early
part
of
September.

Prices

Commodity Prices

of

on

iron

record

record.
ore

level.

likewise

reached

a

Production of coal

dis-'

War Loan

Drive.

reflected

in

part

decrease

in

required

stantial

sub¬

a

re¬

at the middle of the month

serves

funds

corporate
ferred to
counts

from

not

are

and

trans¬

were

Government

which

reserve

individual

deposits

loan

ac¬

subject

to

requirements.

During the
Sept. 15 the
Reserve System holdings of Govfour

weeks

rnment

about
the

ended

securities

increased

by

$1,000,000,000 in addition to

special

certificates

from

the

taken

di¬

Treasury..: Most

the

of

Treasury bills sold to the

increase

in

was

the

form
Re¬

Banks with sellers retaining
the option to repurchase.
Over
this four-week period
currency in

serve

increased

"In the last

gust

and

two

the

first

by; about
of

weeks

week

$18,-

of

of

Au¬

Sep¬

tember, reporting member banks
in 101 leading cities showed a net
in security
holdings as a

decline
result

of

the

Reserve

sale

of

System.

bills

In

ties

the

to

the

week

to

the

banks

in anticipation
during the Drive,
and bank holding also increased
through repurchase of bills from

purchases

the

Reserve

System.

"Commercial

loans, which had
expanded by $100,000,000 in July
in
August, 4 increased
by

and

$250,000,000 during the week end¬
ing

Sept.

15.

commercial

This

loans

increase

was

in

shaded

by
both New York and other
report-'
ing member banks.
In the week

ending the 15th, loans to brokers
and dealers in New York

City in¬

creased

$370,000,000,
most
of
which was for purchasing and
carrying Government securities,
and there

loans

on

also

was

an

securities to

increase in
others."

Of Comm. & Ind. Ass'ii
of

Clarence L. Law, Vice-President
the Consolidated Edison Com¬

of

pany
on

Sept.

New

commodity

of

prices

lumber

continued

and

to

newsprint

were

seasonal

Board

apples

and

fresh

prices of

vegetables

creased further from

been

de¬

mid-July to

with

and

son

of

Inc.,

was

member of

Directors

and

the

a

of

the

Industry Associa¬
Mr.

Law has

Consolidated

Edi¬

predecessor

companies
1, 1906, and for many
years
has played an important
role in employee activities.
He
has long been associated with in¬
since Nov.

dustrial
and

declines.

"In retail food markets

York,

14 elected

tion of New York.

"The general level of wholesale

ther

ume

making

was

the Third

also

Commerce

chemical production showed

the largest vol¬
Lake shipments

and

This increase

part to the fact that

special certificates in anticipation
of
tax
collections and receipts

the

a year ago.

than a year
ago.
Output of most other manu¬
factured goods declined somewhat
further. Production of petroleum,
coke and rubber products con¬
tinued to advance in August while

in August was in

Subtotals for the week in each class
of construction,arg: .waterworks, $288,000;
sewerage, $715,000; bridges,
$1,840,000; industrial, buildings,. $5,905,000; commercial buildings,
$2,403,000; public buildings, $43,441,000; earthwork and drainage,

about.

bursements out of temporary bor¬
rowing from Reserve Banks on,

grain

seasonal

about one-fifth larger

little

of

Law Elected Director

in

August, but preliminary
indicate that output was

usual

level

average

latter part of August

excess

sold.

carloadings were main¬
large volume during
August and the first half of Sep¬
tained

showed

the

rose

$2,000,000,000

"Total

showed

in

stores

now

currently close to pre-war levels.
Activity at meat-packing plants
cline

the

months

merchandise have been in

15%

been

in

corresponding period last year,
reflecting in part price increases.
have

banks

about

early in September.

of

change in

Board's

increased.

steel

metals

large volume.

and




from

Sept. 15, however, some
non-banking holders sold securi¬

increased, while prices of
fruits and vegetables showed fur¬

.

sharply

re¬

ending

'

,

Industrial Production

change.
Production
of
crude
petroleum continued to rise and

,

of

serves

excess

$560,000,000 to a total
800,000,000 outstanding.

Reports

nounced

"

mid-September

of

bridges, industrial and public buildings and earthwork and drain¬
age.
Gains over the 1942 week are in bridges, industrial buildings
earthwork and drainage.,

"In

rectly

Statistics

pendable world statistics such data
for the time

,

Bank Credit

when

national

of

2%

3,112

22,632,776,

discontinued

be

output a year ago,,
while marketings of most other
livestock products continued
in
larger volume than last year.

381,620

ther decreases in output of textile,

The current week's construction brings

number

was

interest

to

than

1,186

Cotton consumed during the month of
August, 1943, amounted to
842,260 bales.
Cotton on hand in consuming establishments on
Aug. 31 was 1,928,808 bales, and in public storages and at compresses
8,026,906 bales. The number of active consuming cotton spindles
the month

smaller

599,007

v

Consumption and Stocks—United States

of iron

lower than in the corresponding 1942 week as reported
by Engineering News-Record on Sept. 23.
Comparisons with last
week show private work 53% higher, and public work

down

report include

estimated

was

in

Sept. 1 is 1,786,313 bales.

for

crop

Milk

as

$1,100,000,000 which had prevailed

subject to revision when
the individual returns of the ginners being trans¬
The revised total of cotton ginned this season
prior

checked against
mitted by mail.

a;

28,109

for 1942 and 131 for 1941. Included in the above

vance

51%

is

-

with

94,952

American-Egyptian for 1943, 1,204 for 1942 and 2,517 for 1941; also
bales Sea-Island for 1943, 135 for 1942 and 327 for 1941.

manufactures

Civil engineering construction volume in continental U. S. totals

Private

this

Sept. 1;
compared
of
12,800,000 last
production in Au¬

11,700,000 bales

was

87,938

1941.

in

for

33,860

,

1,044

ally adjusted total index of indus¬
trial production remained at the
July level. Production c-f durable

$71,951,000 for the week.
This volume, not including the construc¬
tion by military combat engineers, American contracts outside the
country, and shipbuilding, is 66% higher than in the preceding week

tion

and

statistics

"Output

of subgroups.

result of the 27%

53,969

107,053 bales of the crop of 1943 ginned prior to Aug,
which was
counted in the supply for the season of
1942-43, compared with 48,625 and 1 969 bales

of

was

3,000,000,-

10,331

69,607
1,125,919

!

•.

The fore¬

production

149,169

214,234

____•

110.6

Engineering Construction
68% Above Week Ago

a

35

^Includes

93.5

Civil

but is

125,403

'295

57,324

26,435
£.

______________

other

41,540

5,184

^

*

Carolina

August

V

;

—

corn

prospects

100,979

95.7

93.5

de¬

other feed crops declined. Produc¬
tion of cotton indicated on

384,752

•

74,917

_

Tennessee——

146.9

146.8

72.5

Luggage

199,300
407,282

Carolina__—_iL^__

for

) 262,527

371,686

Oklahoma.

;

Wear

Socks

Underwear

metric

94.3

94.3

108.1

76.3

Overalls

___________———

Infant's

Floor

94.3

C

74.0

Clothing lncl.

•

prospects

crop

circulation

64.9
69.6

as

partly

10,889

260,330

'

Hosiery
&

22,553
284,517

9,513

r

92.4

Underwear
Shirts

250,034

5,150

39,236

Mexico___-

140.5

111.2

v-k 69.2:

.*•_—m'ri

_■

140.5

83.6

Brassieres

198,934

'

737,891

World

66.8

Corsets
Furs

;•

$>

59.2

2.091,389

104,712

Missouri-.
New

1941

*2,077,933

403,482

Mississippi

North

1942

343,112
_■■■

cast

gust

301,699

_______

89.2

—".

Aprons
j

126.9

1%

were

raised by 3% to almost
000 bushels, while

season.

9,747

;

:

Hosiery

65.0

.72.9

Comfortables

&

Women's Apparel

,v

_____

_____________

merce

'

Sheets

'

excluding linters)

*3,734,129

Louisiana

143.8

84.7

' :'v;.

Domestics

and

•

105.3

Apparel

in¬

9,936

112.2

70.7

Goods

Men's

the

*"

1943

v

._

Florida

to

Composite Index

.

bales

Arizona

113.1

1933

from

The statistics for 1943 in this report are

Sept. 1,

May 1,

compiled

>

Copyright 1943 Fairchild News Service.

■

;

,

,

half

___.

Alabama'

8

1931—100

23,

RUNNING BALES
as

Arkansas____—______

of

PRICE INDEX

Sept.

on

•

(Counting round

.

THE FAIRCHILI) PUBLICATIONS

issued

„

none

*

♦

foods

"General

'

Number of

All

,

in

Agriculture

39-week

bales of cotton ginned from the growth of 1943
prior
Sept. 1, 1943, and comparative statistics to the corresponding date

to

Texas

./'"v.

decreases

offset by small increases in retail

$3,030,-

dividual returns of the ginners is shown below:

least.

minor."

1943,

Gollon Ginned from Crop of 1943Prior to
Sept. 16

South

"The index continues to fluctuate

of.
living

clined slightly in
August, accord¬

price regulation was issued permitting a certain percentage
markup in determining the ceiling prices of men's outer coats.
In
comparison to 1939 furs increased the most and women's shoes the
■

of

-

.

United

hose declined 0.1%.

financing for the 38 weeks

299,000, is 67% below the $9,530,701,000 reported for the
period last year.
!
"■
•■" ' ' ■"

,

"Of the
any

construction

State—

1939.

I

the five major

of

"Each

Bureau

ing to official reports.

The Fairchild announcement on Sept. 15 further stated:

;

New

'

r

.

The

Labor Statistics'
cost
of
index declined one-half of

prices of other goods and services.

to 113.1 after

in

mid-August.

and

civiq,, (Organizations

is Vice-President of the Ad¬

vertising Club of New York and
a

member

agers

of

the

Board

of

Man¬

of the Engineers Club.

Indexes

Federal Reserve August Business

of industrial production, factory em¬
At the same time, the Board made
customary summary of business conditions.
The indexes
together with comparisons for a month and a year ago, responsible for

Sept. 22 its monthly indexes

on

ployment and payrolls,
available its
for August,

etc.

BUSINESS INDEXES

•'V-■

'

>■:

!

1,

..."

the

July

Aug.

203

183

+207

t215
t305
tl43
U37

215
302
145
136

193
258
140
130

t218
t307
+ 146
tl43.

217
303
147
141

196
260
144
136

•
*
*

00
36
80

182
65
278

*

67
36

194
64

92

300

.

-

Nondurable
Minerals

•

11

—.

-

-

Residential

^

—

other

All

—.

-

'

Factory employment—

goods

,

•

(

'

v

materials

—

+169.9

229.5
122.4

-r

reports.
The

following

index

shows

table

principal
1943 and
week ago, a

for

numbers

the

199.2 Sept. 19, 1942, and the percentage
123.9 month ago, and a year ago:
•

changes from
• .

a

'

.

.

'

Factory, payroils_

439.5
342.0
194.3
169.5
141
142
141
146 >
144
+138
142
130
+109
98
103
*
110
137
*
99
132.
"Data not yet available.
tPreliminary or estimated. IRevised seasonally adjusted
indexes. 1 Back figures may be obtained from the Division of Research and Statistics.
Note—Production, carloadings, and department store sales indexes based on daily
averages.
To convert durable manufactures, non-durable manufactures and minerals
indexes to points in total index, shown in Federal Reserve Chart Book, multiply dur¬

goods
goods
JFreight-car loadings
Department store sales, value
Department store stocks, value
Durable

able

—-

—

by .379, non-durable by .469, and minerals by .152.
Construction contract indexes based on three-month

moving averages, centered at
second month, of F. W. Dodge data for 37 Eastern States. To convert indexes to value
figures, shown in the Federal Reserve Chart Book, multiply total by $410,269,000,
residential by $184,137,000, and all other by $226,132,000.
x
Employment index, without seasonal adjustment, and payrolls index compiled by
Statistics.

Bureau of Labor

'

■■

,

'

,

>

Aug.

Iron and steel—

July

Aug.

1943

1942

1943

203

197

—

Aug.

1*

210

..203

;

190

202

229

218

235

229

184

180

177

184

180

598

577

507

598;+:■

577

+361

361

299

+361

+634

625

458

+ 634

625 -('-ii

188

191

+ 189

188

124

129

+ 133

130

138

+ 117

114

125

+ 128

123

139

+142

142

136

+ 142

142

136

ajt

134

147

160

.-V

Lumber

—

Furniture

products-

Stone, clay, & glass

tf

54

plate glass
products—-—-

Cotton

deliveries

Wool

textiles

p

109

Tanning

104

kip leathers—

107

:<;p

99

83

118.4

118.6

and

96.9
79.6

*103.8

*103.8

*103.8

103.9

o :

112.5

112.5

112.2

112.1

110.4

0

100.2

100.2

100.2

100.2

104.2

104.2

104.2

104.2

materials

products—

goods

—

92.6

Raw materials

92.6

92.4

92.4

70

110

112

117 1

143

tl56

157

165

118

105

123

116

106

170

132

'

i

183

153

tl56

143

'146

tl56

132

;

*

130

166

Cigarettes

&

*

'-v.

n'v

152

'

V

V'

99

83

ft

134

131

151

143

123

ft

91

108

+ 114

114

,

135
115
160

*112.3

*112.7

89

All

Newsprint production

;—

Printing and publishing

—-

Newsprint consumption
Petroleum and coal products-

1*106

104

108

~———

Coke—,

«

—_

+

'■■■

+

—;

V;i

-

*

+159

109

109

»

145
120

■

-

'

r;;-.'

;

106

110

101

165

+170

162

165

153

155

+^59

153

,

155

The

as

92.8

92.8

92.8

.92.8

*100.0

*100.0

99.4

+ 10.7

0

0
+ 0.1

0

0

*98.5

*98.4

*98.4

97.6

97.4

*97.4

*97.3

*97.3

95.7

+

+

0.9

+

0.1

+ 0.1
'

insurance .in

life

ordinary

1.8

•

:

i

* *

follows:

AUGUST, 1943

•

'

Ratios

Sales

U.

E.

England

-

Iron

E.
W.

Central

134.403

—

—

63,610
67,305

Central———————————

N.

Atlantic
S.

——

————

Central

V:

—:

——

Central—————————

S.

Pacific

——————

-

t——

—

Steel Production

—

24.259
42,319
18,507
63.705

i
'/

■.

'

"Demand for plates, sheets and
dominates

bars

"Steel

mills

are

completing

a

136

126

136

126

155

140

+153

155

140

129

+ 128

129

118

dented total.

v +128

118

103(ft

+ 131

128

121

+131

128

121

are

+ 136

138

152

+177

173

194

256

239

410

398

388

are

tonhage for war purposes not yet
scheduled, but some of which will
be

required in fourth quarter.

booked

next June.
which

sheets until
New military projects,
up

include

on

one

this

accommodate

program

re¬

added

shifting of.
schedules is expected.
The situa¬
tion will be helped ,bj^ entry of
new
mills during fourth quarter,
which
will
provide
additional,
considerable

tonnage

as*; well

steel

as

This is
not expected to be sufficient to.
cope with heavy essential require¬
ments.

"Increased electric furnace pro¬

duction, to which considerable bar

has been diverted from
hearths, has eased the situa-

tonnage
open

tion

in that product and

ies

on

the

same

large sizes
as

on

now

deliver¬

are

about

smaller sections.

"Pig iron output in August es->
a
new all-time high
at
5,315,633 net tons, topping the for¬
■>:

tablished

mer

record made in March

100
101
106

432

tons.

130

137
144
132
129
149*
137

.

135,850
462,081

...

>

108
101
104
117
107

equipment busy and to help meet
"

eight

by 1,months this

period last year. In August blast
furnace capacity was operated at
98%, compared with an average,
of 96.2% for eight months.
In¬
cluded in the August total are 45-.
798 tons of ferromanganese and

sensational month, with average

commitments.

In

pig iron production has ag¬
gregated 40,681,821 tons, compared,
with 39,491,105 tons in the same
year

perhaps the highest on record," "The Iron

reaching an unprece¬
In some cases mills

six"

as

.98

push close to the all-time peak set last March.
"New steel orders are exceeding actual shipments and authentic
backlogs

far

364,013

Age" states in its issue of today (Sept. 30), further going on to say:
"Even though September is a short month, total output promises to

+ 137

with

market,
as

1.243,707
1,055;461
474,869
481,745
189,719
334,688

Again Rises—Dew Orders

weekly production of ingots

170

the

running

141

Exceeding Adual Shipments—Backlogs High

505

ore

follows:

+ 123

.'45,328
151,171

'43-'42 '

All Cos.

$4,742,133

135^

$610,607

——

Volume

in $1,000

'43-'42

All Cos.

Atlantic

N.

W.
S.

—

Total

S.

Middle

r

YEAR TO DATE
Sales
Ratios

>

Volume

,y

,

reported by

-

in $1,000

New

period in

..............

'

220

—.—

of'the iron and steel mar-'
Sept. 27 stated in part as,

on

larger finishing capacity.

States in

United

the

above the amount sold in the same

.

451

„———.

kets,

0.7

+

'•

:

256

Crude petroleum
Metals

—

—

year ago.

"Steel" of Cleveland, in its sum--

4.5

The sales volume and the ratios for all sections are
the Bureau

+ 153

Anthracite

one

1,732,500 tons

and 1,664,500 tons

+

*100.1

;

+533

,

month ago,

+ 0.2

than

1942.

+ 218

+ 137

week ago,

one

one

"To

$4,742,133,000, is 3%

173

'■■■■'

tons

—0.3

by the Life Insurance Sales Research Bureau, Hartford, Conn.
The total sales volume for the first eight months of 1943, aggregating

505

coal

compare

ago,

0.2

sued

227

—

Bituminous

will

week

months, in the face of substantial

92.8

;

of

sales

451

Minerals—
Fuels

with 100.6% V
99.4% one month
ago and 97.3% one year ago. The'
operating rate for the week be¬
ginning Sept. 27 is equivalent to
1,756,900 tons of steel ingots and
castings, j. compared to
1,753,400

This

0.1

August amounted to $610,607,000, a 35% increase over the amount
sold in the same month of 1942, according to the monthly survey is¬

+221

:

at a new high peak.

semi-finished

+533

Beehive-

or

4.2

*100.1

116

»
'

118

Sept. 27,

than

other

beginning

capacity for the week

+

August Life Insurance Sales Advance

130

,

162

V.'

+170

—-

118

operating rate of steel companies'
having 94% of the steel capacity
of the industry will be 100.8% of

+

121

+ 115

117

121
■

-:*

114

ft

109
130

95

91
124

114

109

103

103

93

145

oil

n':;.

121

119

+ 115

Gasoline

Lubricating

105

111

,

that
had

27

Sept.

on

0

o

123

89

1

ft
ft

Fuel .oil

130

143

9 .V-vt;

r

,124

'•

105
•

Petroleum refining—-——

'Kerosene

jfc.-A-

announced
telegraphic reports which it
received indicated that the,

Institute

bookings

0

products and foods_____

•Preliminary.''

Steel

and

Iron

American

The

,

'

,

1.9

+

*98.5

commodities

farm

0.1

—

130

9..

151^-

.---

ment."

0.4 ;+

'

and productsPaperboard —

Paper

could be accepted

.0.1

101.5

articles-

other

products

Mountain
84

88

snuff

; <

175 :

»

'

*

173

153
138

112

95

'

numbers

0

88.6

*112.2

2.5

+

0
+

104.1

*112.4

Miscellaneous commodities

0.4

—0.1

—0.1

96.2,

„

0.2

—

+ 0.1

0

96.9

81.7

allied

commodities

0

0

97.0
81.7

69

112

ft

+ 132

foods

tobacco

118.4

97.0
81.7

100

9

—_

Manufactured

118.4

97.0

134

'

+ 186

packing

_

118.4

120

109

#

'

145

flour

manufactured

2.5

+

81.6

118

95

84
'''

products-

ft;

j

'"H:.

122

products

15.4

+

102.0

products—™ *103.8

metal

Kousefurnishing

169
154

+ 137

■

Cigars

183

4'•■■■ 84

141

85

Goat and kid leathers

Other

169

153

146

«*

117

117

#

food

+

107.1

105.8

•'

Shoes

Meat

154

*

'

4

—

Manufactured

30

:

*l':-\

113

Cattle hide leathers——
Calf and

195

50

fl78

154

—

—

-

147

147

169

146

"'

Tobacco

169
>

a

.

131

■

'%

—.

products

Wheat

54

•*

tl43

183

+ 178

.

Leather

30

154

153

147

consumption

Rayon

50
147

■"L

+ 143

and

jV;

177

114

Cement

Polished
Textiles

145

■:

—0.2

—1.2

*123.8

104.7

:

lighting

Chemicals

191

+ 125

products

0.3

—0.3

*123.3

104.8

products

Building materials

458

+ 189

Lumber and

CMP order without allot¬

no

ment

3.6

177

Transportation equipment

———•—-

leather

and

Metals

507

Non-ferrous metals & products

—

+

*123.2

-

-

products

and

299

361

Machinery

+0.1

218

191

235

Electric—

1943

+0.1

;

190

191

——
—_

Open hearth and Bessemer

and

Textile
Fuel

197

202

Pig iron
Steel

.

Hides

1942

1943

1942

1943

99.3

1S43
*102.8

104.5

products

farm

July

Aug.

1943
210

that

mary
Farm

Adjustment—

—Seasonal

—Seasonal Variation—

Manufactures—

9-19

8-21

9-11

1942

1943

*102.8. *102.8

1943

L—

Pcods

All

Without

1943

Sept. 18, 1943 from—
9-19

*102.9

groups—

commodities

All

."

8-21

9-4

*123.6

Commodity

,

Manufactured products

Adjusted for

9-11

9-18

Semimanufactured

PRODUCTION

INDUSTRIAL

*

Percentage changes.to

*
*
145

-—

—-

Nondurable

'

(1926=100)

^

^

___

___

this tonnage was

before July 1; It is
believed that the WPB by saying
cleared away

one

of commodities for* the nast 3 weeks, for Aug. 21,

groups

157.1

169.6

+230.3
+122.3

155.1
198.5
120.9

Indexes marked (*),

promptly to report changing prices.

attempt

however, must be considered as preliminary, and subject to such
adjustment and revision as required by later and more complete

■

"goods

Nondurable

,

169.7
229.5
122.4

+167.9
+229.7
+119.3

Total

Durable

.

\

s:

following notation is made:
"During the period vof rapid changes caused by price control,
allocation, and rationing the Bureau of Labor Statistics will

'

Construction contracts, valueTotal

lumber."

The

187

..

L
•

...

Durable

205

;

'

Total

Most of

books.

Higher prices for natural gasoline in

region forced the index for petroleum products up
Lumber advanced 0.2% because of increased sales realization

prices for maple flooring and higher quotations for spruce

•'*-,1942

1942

commodity markets con¬

Industrial

—

Oklahoma

0.2%.

Aug.

,

1943

1943

+203

Manufactures—

V

1943

1943

.JL

Total

upon

decrease of 0.3% in the foods group index.

tinued comparatively steady.

-Seasonal Adjustment-

—Seasonal Variation—
Aug.
July
Aug.

a

"Industrial Commodities

Without

Adjusted for

production—•'

Industrial

loadings;

for industrial production and freight-car
1939=100 for factory employment and payrolls;
.,
1923-25 average = 100 for all other series
100

average =

numbers,.- has had little
steel company order *

lotment
effect

Lower might have been aiming at pre-"
prices were also reported for oatmeal and rye flour.
In the past 4 venting the building of neutral¬
ized backlogs for post-war shipweeks, average prices for foods in primary markets have droppd 1.2%.

follow:

1935-39

grains, average prices for farm products, in primary markets rose
during the week.
Oats advanced nearly• 8%; ryeV 4%; barley,
almost 3%; and wheat, over 1%.
Quotations were also higher for
cows and hogs, and for eggs, lemons, flaxseed, and hay. a Prices were
lower for a few important agricultural commodities such as cotton,
wool, apples, onions, and potatoes.
1
.
"A decline of almost 2% for fresh fruits and vegetables was
0.3%

System issued

of Governors of the Federal Reserve

The Board

Thursday, September 30, 1943

CHRONICLE

THE COMMERCIAL & FINANCIAL

,'

"Seeking permission to use elec¬
tric-furnace steel and to obtain

spiegeleisen, of which 439,742 tons
have been made

"Iron
ust

so

far this year.

consumption in Aug¬
third
highest for any

ore

was

month

this year, being exceeded
by the all-time record in January

and also

by March.

Tonnage

con¬

sumed totaled

7,616,801 gross tons,
compared with 7,765,174 tons in
January.
For eight months this'
year 58,865,224 tons were smelted,
compared with 56,271,764 tons in
the corresponding period last year.
Stocks

on

hand

at

furnaces

and

around 130,000 tons of delivery of it quickly, some, war Lake Erie docks increased
during'
contractors 'havegone
through
plates, sheets, bars-and structural,
100)
(1935-39 average=
August to 38,571,668 tons, com¬
must
somehow be wedged into considerable red tape to secure
136
136
146
T45vi i: 146
145
Co al——.
•
changes in old orders which orig¬ pared with 43,236,172 tons at the
175
178
183
182
184
191
producers' books.
same date last year.
Furnaces in
129
172
158
119
143
147
"The flat-rolled steel situation inally called for open-hearth al¬
'Grain
blast Sept. 1 numbered 174, one
97
+ 101
111
106
113
117
"Livestock—-1
loy.
Recent reports indicate that
certainly is tighter now than at
173
150
156
150
148
more than a month previous and
165,
Forest products »—
open hearths in August produced
308
323
312
206
202
208
any time since the war began, as
"Ore
—;—
four more than a year ago.
j *.
152
about
147
69%
of the - alloy steel,
147
152
148
147
the result of heavier requirements
Miscellaneous
57
63
64
57
64
63
whereas a few months earlier they
."Scrap supply in mose cases is
Merchandise, l.c.l.
for
shipbuilding
plates plus a
for
cur r e n t. needs,accounted for 73% to 75 % of total sufficient
"''•Note—To convert coal and miscellaneous indexes to points in total index, shown
gain in steel sheet needs.
Many
in the Federal Reserve Chart Book, multiply coal by .213 and miscellaneous by .548.
though some districts do not re¬
tin plate orders have been pushed alloy steel production.
V
fRevised.
"Revised seasonally adjusted indexes.
Back figures may be obtained
"Meanwhile,
farm - implement ceive enough to prevent inroads
back.
Only about half of the hotfrom the Division of Research and Statistics.
t
'
despite
governmental into reserves. Demand shows some
rolled sheets needed for a large makers,
increase in the principal grades.t
container program for the Gov¬ promises that they would be taken
ernment have been plated so far; care, of 1 on their. - steel require¬ \ "Blastfurnace operations are be-,
"Utilizing all of the nation's ments, are finding it difficult to ing shifted somewhat from i'oun-.
.secure
space on mill hooks 'due
electric-furnace steel: capacity is
dry grades to basic as demand for
to delay in receiving allotments.
as
the former has declined,
great a problem as it was a
while
On top of this, the industry's rat¬
few weeks ago when WPB ap¬
The U. S. Department of Labor announced on Sept. 23 that ad¬
steelmaking needs increase. Many
pealed for wider use of the high ing for CMP class B products has
vancing markets for farm products, particularly grains and live¬
been dropped to AA-2, making it foundries are operating only part
quality steel. A few electric-fur¬
stock, brought the Bureau of Labor Statistics' index of commodity
still more difficult to get com¬
nace units have been idle for lack
time, due to labor shortage and in
prices in primary markets up 0.1% during the week ended Sept. 18. of orders and one electric-furnace ponent parts for tractors, com¬
less degree to lack of demand for
At 102.9% of the 1926 average the all-commodity index is slightly
bines, reapers, etc.
plant has been
melting opencastings.
Some foundry alloca¬
higher than at this time last month and 3.6% above the correspond"WPB's recent letter prohibiting
hearth steel in its units at con¬
in week of last year.
tions have been cut to meet re¬
siderable financial loss per ton of the
acceptance
of steel orders
The Department's announcement further explained:
quirements for basic."
billets produced, just to keep the which have not been granted al¬
"Farm Products and Foods—Led by an increase of 1.8% for
•

-tPreliminary or estimated.

\*Data not yet available.

quiring

REIGHT-CAR LOADINGS

,

*

——

•

'

.

.

—

*

•

.

———

.

—-

..

r

-

Advanced 0.1 %
During Week Ended Sept. 18, Says Labor Dept.

Wholesale Commodity Index




.

...

Volume

* Number

158

THE COMMERCIAL & FINANCIAL CHRONICLE

4216

1335

Daily Average Crude Oil Production For Week Moody's Bond Prices And Bond Yield Averages Asks High Conrt Hisle
Moody's
bond
yield
Ended Sept. 18,1 §43 Increased 21,800 Barrels given in the computed table: prices
On Rent Control
following
and

r

The American Petroleum Institute estimates that the

daily

MOODY'S

aver¬

(Based

age

crude oil production for the week ended Sept.

gross

18, 1943

1943—«

U. S.

EOND

bond

averages

are

The

PRICESt

Average Yields)

on

Avge.

the

barrels

day more than produced

per

corresponding week of 1942.

current figure, however,

The

rate*

Aaa

A

Baa

R. R.

120.59

110.88

118.80

116.41

111.25

98.73

103.13

113.70

120.56

110.88

119.00

116.41

111.25

98.73

103.13

113.70

116.41

120.55

111.07

119.00

116.41

111.25

98.88

103.30

113.89

116.41

120.55

111.07

119.00

116.41

111.25

98.88

103.30

113.89

116.41

23

120.55

110.88

119.20

116.41

111.07

98.73

103.30

113.70

116.41

22

120.55

110.88

119.20

116.41

111.07

98.73/

103.13

113.70

116.41

21

during

Bonds

Sept. 28

increase of 21,800 barrels over the preced¬

an

ing week and 440,000

120.55

110.88

119.00

116.41

111.07

98.73'

103.13

113.70

116.41

120.55

110.88

119.00

116.41

111.07

98.73

103.13

113.70

116.61

120.55

110.88

119.00

116.41

111.07

98.73

103.13

113.70

116.61

of

120.55

111.07

119.20

116.61

111.07

98.73

103.13

113.70

116.61

ers

is

25

.the Petroleum Administration for War for the month of September,

■•'.«

Daily output for the four weeks ended Sept. 18, 1943 aver-

-aged 4,290,350 barrels.

Further details

,

20

——

18

reported by the Institute

as

--I—

24

176,350 barrels less than the daily average figure recommended by

■1943.

'

—

17

follow:

16
'

'

•

Reports
industry

received
whole

as a

from

to stills

ran

companies

refining
on a

indicate

that

120.55

barrels

of

gasoline;

1,464,000

barrels of

kerosine;

116.41

111.07:

119.20

116.61

111.25

98.88

103.13

113.89

116.61

111.07

119.20

116.61

111.25

98.88

103.13

113.89

116.80

"111.07

119.00

116.41

111.25

98.88

103.13

H'2.89

116.80

111.07

119.20

116.61

111.25

98.88

103.13

113.89

117.00

119.20

116.61

111.25

99.04

103.13

113.89

117.00

119.20

116.61

111.25

98.88

103.13

•.-v.:

PRODUCTION

113.89

116.80

116.61

111.44

98.88

103.13

113.89

117.00

the

116.61

111.44

98.88

103.13

113.89

117.00

Court

111.07

119.20

116.61

111.44

98.88

103.13

113.89

117.00

120.33

—

„

Exchange Closed

——

120.30

111.07

119.20

116.61

111.44

98.88

103.13

113.89

117.00

120.30

111.25

119.20

116.80

111.62

98.73

103.30

113.89

117.00

120.29

111.25

119.20

116.80

111.62

98.73

103.30

113.89

117.00

120.29

111.25

119.20

116.80

;-v'V

♦P. A.

'

-J
'•

V :;r

'

y

Kansas

■:•—

_—
'

Nebraska

Panhandle

*

1943

Sept. 1

347,000
300,000
2,000

Ended

7; Week

:

(327,350

+•

(236,900

+

112.89

117.20

'frozen'

103.30

113.89

117.00

economic position in history. They
have been barred from the collec¬

103.13

J

(1,800

Texas

East

Central

"East Texas

+

1,000

306,300

130,250

85,700

Texas

+

+

254,300

5,300

i—i

—

278,500

; ' -v- 7

—

_

Louisiana—

Arkansas

375,000
:1

399,000

80,100

•Mississippi

111.,

103.30

114.08

117.00

120.46

111.25

119.20

116.80

111.44

99.20

103.13

114.08

117.20

274,750

76,750
50,450

119.20

116.61

111.25

98.88

102.80

114.08

117.00

ture,

116.22

111.25

98.25

102.46

113.70

116.61

request of tenants

120.41

110.70

118.80

116.22

111.07

98.09

102.46

113.70

116.61

to provide

110.34

118.20

115.82

110.88

97.78

102.30

131.31

115.82

ers.

118.36

109.79

118.00

115.43

110.34

97.00

101.31

113.12

116.93

109.60

96.23

100.65

113.12

115.63

117.11

109.24

117.60

115.43

110.15

95.47

100.00

112.93

115.43

108.70

117.60

115.04

109.79

94.56

99.04

112.56

115.43

'—10,150

217,000

119.41

117.00

111.81

99.36

103.47

114.27

117.40

107.44

116.80

113.89

108.88

92.35

97.16

111.81

114.46

117.20

114.27

108.88

92.64

97.47

112.19

112.75

107.09

90.63

95.32

109.60

112.75

117.51

107.27

117.00

113.89

108.70

92.20

97.16

111.62

114.27

119.07

107.62

118.00

115,04

108.88

91.19

96.54

111.81

115.43

1942

Yearsiago
27,

1941

14,200

■7 :v-7'

>:-

76,350

+

7

27,500

60,100
<

58,600

2,250

+

5,000

>

U. S.

Averages

.7;:);'/;

57,550

104,350-

23,300
6,500

21,300

•

97,850

5,400

+

50

■

—

•116,600

:

3,717,100

21,350
■

550

+

109,350

r

4,300

3,587,950

835,000

——

Total United States

21,700

+20,300

•

3,509,950

{This

§835,000

787,800

4,552,100

recommendations

is

the

net

shutdowns

includes

+

1,500

780,400

basic
and

which

fields

CRUDE

RUNS

AND

4,375,750
and

state

allowable

exemptions

were

TO

+21,800

allowables

4,290,350

the

represent

production

of

14

A/V-:

of

as

Sept. 1 calculated on a
the entire month.,
With

for

PRODUCTION

GASOLINE.

RESIDUAL

FUEL

OF

GAS

OIL,

OIL

WEEK

30-day

basis

,

plus

.■/!:.

:+

-vy ■:/

GASOLINE;
AND

STOCKS

DISTILLATE

ENDED

SEPT.

18,

OF

FUEL

FINISHED

Capacity
tial
District—-

;.v;

:

Gulf,

L'.

§Gasoline

-

Rate

{Stocks

fineries

Crude

Finished

Includ.

and Un-

Runs to Stills

% Re-

Daily
% Op- Natural finished
porting Average erated Blended Gasoline

2,444

1—

88.7,

130

2,094

-

' 85.7

C

6,070^

111'.;'

of Gas

83.9

109

83.8

320

51

108.5

>4147

Distillate
Fuels

Fuel
'/Oil

30,796 ^18,576

2.70

3.11

3.83

3.56

3.11

3.83

3.56

3.10

3.82

3.56

,2.96

2.96

S.

B.

S.

Bur.

B.

1,357

2.96

of

of

the

771

93.6

2,694

13,935

5.898

and

2.69

—.2.69

2.82
2.82

*

2.97

2.83

3.56

2.97

2.83

3.56

2.97

2.83

2.97

2.82

,

2.97

2.82

2.97

2.82

fuly

2.69.

2.82

3.10

3.82

3.56

2.96

2.81

3.11

2.70!

2.83

3.10

7! 3.82

3.56

2.96

2.81

1,245

6,092

2,255

1,619

8

26.9

8

100.0

28

60

24

29

57.7

112

80.6

356

1,200

403

731

817

89.9

725

88.7

1,876

17,022

12",276

43,106

40,299

39,401

67,011

4.20.9

87.2

4,825

86.4

4,216

87.4

*

12,736

.171,299

-

12,606'

71.928

lines.

3,740

§Not

distillate

the Week ended Sept.

fuel

including

Note—Stocks of

1,464,000

for- War..

refineries,
barrels

79,077

of

at

bulk

kerosine,

45,133

79,722

3.82

3.56

2.96

3.81

3.56

2.96

2.80

3.82

3.56

2.96

2.81

3.11

2.69

2.82

plement

3.09

3.82

3.56

2.96

2.80

3.11

2.69

2.82

3.09

3.82

3.56

Oct.

2.96

2.80

2, 1942, and take

measures to

3.11

2.69

2.82

3.09

3.82

3.56

2.96

2.80

roll

back

living.

2.82

3.09

3.82

3.56

2.96

2.80

3.11

2.80

3.10
}

3.10

week

earlier




and

to

2.80

3.82

3.55

2.96

2.80

Machine

3.83

3.56

2.96

2.80

2.69

2.81 '

3.09

3.82

3.56

2.96

2.79

3.09

3.81

(CIO) at New York City, Mr.
Murray charged that while labor
has "by and large" kept its no-

1.84

3.09

2.68

1.81

3.10

2.69

'•■•■■ 7

1.82

3.10

2.69

9;7///7+:

1.80

3.11

2.69

3.83

3.55

2.96
■

2.96

3.81

3.55

2.96

3.81

3.56

2.95

2.79

2.80

3.08

3.81

3.55

2.95

2.79

2.81

3.09

3.80

3.55

2.95

2.80

2.81
A

3.55

3.08

3.08

3.09

3.80

3.56

2.95

2.79

the

2.82

3.10

3.82

3.58

2.80

Workers

down.

;•'

:i

2.80

7

2.95

v

2.79

1.80

3.13

2.71

2.84

3.10

3.86

3.60

2.97

1.82

-;</ 3.13

2.71

2.84

3.11

3.87

3.60

2.97

2.82

3.12

3.89

strike
has

pledge,

failed

to

of

the

America

Government

observe

its

side

fety

1.88

——

30
26
26

3.15

2.74

2.86

3.61

—

; '

a

\

.

2.88

3.15

3.94

3.67

3.00

2.87

2.88

3.14

3.99

3.71

3.00

•

—

2.77

2.88

3.16

4.04

3.75

3.01

2.77

2.90

3.18

4.10

3.81

3.03

2.88

the

3.31

2.81

2.96

3.23

4.25

3.93

3.07

2.93

necessary

3.09

2.68

2.80

3.07

3.79

3.54

2.94

2.78

Murray
time

1.79

;!

2.14

3.39

2.88

3.02

1.93

3.30

2.79

2.94

28,

27,

3.33

4.37

4.05

3.19

3.02

3.23

>

4.23

3.91

3.05

3.32

2.80

2.96

4.26

3.24

•;

3.93
7

1.92

1941

coupon,
or

the
in

3.30

maturing

2.75

in 25

years)

2.90

and

do

3.23

not

V7:!;/;

4.33

the

purport

2.94

3.07

2.88
'

"typical

one

show

either

the

bond

average

movement-of actual price quotations.
They merely serve to
comprehensive way the relative levels and the relative movement
the latter being the true picture of the bond market.

more

yield averages,
latest
of

complete list of bonds used in computing these indexes
Jan. 14, 1943, page 202,

was

published

of

labor

is

un¬

and un-American," Mr.
charged.
At the
same

he called upon labor to re¬
its no-strike pledge and de¬

manded
tion of

3.97

basis of

to

3.08
A

average
a

issue

conscription

2.92

"These prices are computed from
average yields on

illustrate

2.88

new
■s
'2.04

1942

re¬

.rV;:,

"The Austin-Wadsworth bill for

3.21
3,24

2.08

.

were

ported

2.06

•

1942—

the

13, his further remarks
as follows:

Sept.

2.87

Low

level

2.86

2.75
2.76

High 1942

U1-/4V0

•!

3.18
3.19

'

In the New York "Sun" of

2.06

7/7.

1943—

Sept.

2.99

l!98
2.08

.

of

bargain in not keeping prices

2.82

25

\pr.

' V;

3.08

:

3.08

2.80

the

wholesale renegotia¬
in order,! to

contracts

war

eliminate what he called unsound
and unfairly large profits.
"As
Mr.

to

post-war

Murray urged

ministration call

employment,
that

the

Ad¬

conference of

a

Government, industry and
representatives

Commercial Paper

a

Outstanding

Reports received by the Federal Reserve Bank of New York from

.

ket paper
This

was

outstanding
an

on

advance of

$156*200,000 of

Aug. 31, the Bank announced

open

on

devise

to

a

labor
pro¬

mar¬

Following
A.

Aug 31

are

$6,400,000 from the July 31 total but

the totals for the last two
A

;

g

•!

a

de¬

159,600,000

terminals,

in

Mar 31

4,420,000

transit

barrels

of

18,

1943,

against

Feb

Jan

:

27

30-

——

——

.—!___

.

May 29__
Apr

200,600,000

__

Jun

178,900,000

May 29_

Aug 31—
July 31_

143,300.000

30

Mar 31

—

209,100,000

Feb

28

;

220,400,000

Jan

31———

31

Nov

30—i

Oct

31

Sep

30

297,200,000

_

305,300,000

30——
30

315,200,000
354,200,000

——.

—

—

■
—

„

373,100,000
384,300,000
388,400,000

_

380,600,000

1941—

1942—

Dec

/

1942—

156,200,000
149,800,000

_

——_

*

years:

—_

:

—

—

—

—

229,900,000
260,600,000
271,400,000
281,800,000

Dec

29-

Oct

31—

Sep

30

gram.

Moody's Daily
Commodity Index
Tuesday,

Sept.

Wednesday,

Thursday,
Friday,

374,500,000

—

—-

377,700,000

370,500,000

__

248.3

!__

22—

248.0

23-

248.4

24

248.5

Saturday, Sept. 25
Monday, Sept.
27
Tuesday, Sept. 28—

248.2

s

Two

weeks

Month

1942

High,
Low,

1943

ago,

ago,

ago,

——387,100,000
—

21__

Sept.

Sept.

Sept.

Year

31—..

Nov

employment, assert¬
ing that thus far private industry
has failed to
heed the plea of
labor that it cooperate with labor
in the working out of such a
pro¬

Sept. 20.

cline of $136,000,000 from Aug.
31, 1942.

Apr 30—

11,699,000 barrels at Sept.
barrels a year before.

12,288

of

cost

of

3.08

!:.

2.81

—

the

Act

2.81

2.81

2.69
2.69

;■

Stabilization

2.81

2.69

3.10
•

the

Addressing a mass meeting of
the United Electrical, Radio and

2.69

2.81

60,810,000

8,524,000 barrels of residual fuel oil produced
during
which compares with 1,414,000
barrels, 4,162 000 barrels
in the preceding week and 1,265,000
barrels, 4 barrels, respectively, in the week ended Sept.. 19, 1942.

kerosine amounted

Philip Murray, President of the
Congress of Industrial Organiza¬
tions, called on Congress on Sept.
12 to proceed
immediately to im¬

3.10

2.69

(Finished,

respectively*

bprrelS and 7,094,000

11,095,000 barrels a

11,128

Administration
{At

Murray Urges Cut In
High Living Costs

3.10

2.69

May 28

Jun

and

18, 1943

barrels,

barrels.

.

3.10

2.69

Mar.

an¬

2.82

3.10

July 31—

Mines

10,489,000

be

,

2.82

3.10

1943

of the "Petroleum

,

2.82

2

66.893

86.4-

.Court

will

case

2.69

-

4,825

the

nounced in October.

2.69

3.10

23

Jun

review

r

Supreme

2.69

3.10

-v

will

the

3.11

1.83

16

Whether

measure

unreason¬

3.11

1.84

30

a

3.11
•

1.84

:-7;!"7'

2.82

3.11

6

3,416

81.5

M.

request

8,350,000

3.11

,3.11

13

166

339

M.

unfinished,
pipe

2.83

to

altogether

2.83

320

•'5.837. '522

80.1

.

'

11, 1943-of

thereof

seems

2.83

3.55

17,506

85.2

basis Sept. 19, 1942-,

215,000

3.12

"a 1.83

——

20
:

sidual

139

—

basis Sept.

oil

3.56

commercial paper dealers show a total of
•

—

basis Sept. 18, 1943_

gas

3.88

1.83

Aug/27

of Re

i- Oil and

416

District No.

^nd

3.11

2.83

3.55

2 Years ago

824

District No. 3

,

2.83

1.83

■

1

Sept;

;vv

{Stocks {Stocks

Rocky Mountain—

in

2.70

1.83

2

.

'

'California

ulate and control the renting of
housing accommodations and the

gram for full

.87.2

,47;

Okla., Kans., Mo

and

3.12

1.83

—

3'

.

"■'■/./r;

in

Inland Texas--;

barrels;

3.83

2.83

2.97

3.55
,

2.97

3.56

Exchange Closed

4

(The

District' No. 2—-—''

•

3.83

3.11

3.56
>

■

of

Appalachian— "•••'.:•

5At

3.83

3.11

2.83
-

regulations under

1.83

Q&'&JL

7

!'!,;•

North

District No.

issued

1.82

—

1 Year ago

Arkansas

-

tvy

.•!/'f,r

'.V

at Re-.

are

Coast,
Louisi¬

Gulf,

Louisiana

,

3.11

2.83

2.70

1.81

!: v-6

Low

•Combin'd; East
Texas

has

which his agents and"local admin¬
istrators have undertaken to reg¬

1.82

—

High 1943—

estimate of unreported amounts and
therefore on a Bureau of Mines basis

;

Poten¬

S.

2.83

2.69

3.12

1.81

——

Jan. 29

AND

1943

Production

U.

2.69

3.12

1.81

-iAAAA.;

8

exception'-!of

the

an

*

-

Daily Refining

U.

3.12

1.81

11

and

Figures in this section include reported totals

•

Tot.

3.82

1.80

—•

9

all

(Figures in Thousands of barrels of 42 Gallons Each)

U.

3.82

3.10

,-15.1^ -17 7.1.80

3,935,750

exempted

STILLS;

UNFINISHED

-

Tot.

3.10

2.83

1.80
7

16

738,600

entirely and of certain other fields for which
shutdowns were ordered for from 3 to 7 days, the entire state was ordered shut down
•for 9 days, no definite dates during the month
being specified; operators only being
required to shut down as best suits their operating schedules or -labor needed, to
operate leases, a total equivalent to 9 days shut-down time during the calendar month
!
^Recommendation of Conservation Committee of California Oil Producers.

Inch,

2.83

2.70

1.80

'

17

3,197,150

Michigan, 100; Wyoming, 2,000; Montana, 300; New Mexico, 5,400; California, 46,000.
tOklahoma, Kansas, Nebraska figures are for week ended 7 a.m. Sept. 16, 1943

and

2.70

3.11

1.80

18

97,650

•production of natural gasoline and allied products in June, 1943, as follows: Oklahoma,
•27,000; Kansas, 4,900; Texas,
106,400; Louisiana, 19,300; Arkansas, 4,000; Illinois,
11,500; Eastern (not including Illinois, Indiana or Kentucky), 6,000; Kentucky, 2,200;

ana

3.11

1.80

20

S-. u:

7.000

V

A,7,100

7-106,100

petroleum liquids, including crude oil, condensate and natural gas derivatives recovered
from oil, condensate and gas fields.
Past records of production indicate, however,
that certain wells may be incapable of producing'the allowables
granted, or may-be
limited by pipeline proration.
Actual state production would, under such conditions,
prove to be less than the allowables.
The Bureau of Mines reported the daily average

'

3.83

1.80
—

10

•

3.83

3.10

1.80

—

21

13

v\

3.10

2.83

Indus

"

7,500

116,600

—.

Total East of Calif.

several

P. U.

2.83

1.80

—ij—

22

>•

R. R.

2.71

'

enacted by Congress.
created by the

ever

The administrator

able and unlawful."
Corporate by Groups

Baa

2.70

1.80

23

:

A

3.12

'

94,650

Aa 7.

•

——

P.A.W.

Emergency Price Control

ing law

which

3.12

-

1.80

•

.

24

62,900

AVERAGESt

Closing Prices)

Corporate by Ratings
Aaa

rate

1.80

27

11,900

YIELD

Individual

Corpo¬

Bonds

Sept. 28

85,500

23,350

BOND

on

Avge.

Govt.

Daily

73,350

75,650
•7

500

—

98,800

—

•California

"The

occupancy
(Based

16,750

+

7

necessary
war

Act of 1942 is the most far-reach-

114.66

115.43

28,

and

housing for

work¬
/>■

Act

107.62

>•:—.

'

110.52

106.04

;;v4

Colorado

*

115.43

;

111.44

MOODY'S

253,400

950

14,950

25,500

Wyoming

+

117.80

116.85

1942—

of

use

115.63

117.04

___u—

.

the

equipment provided at the

or

119.82

■

—

1943—

73,500

.

for

118.80

118.41

340,300

700

rent

any

relative

garages, extra rooms, extra furni¬

111.07

240,400

356,900

•

300

+
—

217,300 \

86,600

Mexico

of

worst

110.70

120.87

Sept.

Ind.

:

Montana

tion

their

120.73

—

1943----

Sept.

99,900

*

New

99.20

•'■;■( '25

Ky.)

Kentucky
Michigan

111.44

115.90

,-•■•*

(Not incl.
and

82,150

250

+

48,850

13,800

Eastern—

116.80

Low

1,378,250

777 —__!;

77,350

80,052*

222,800

—7

;

360,850

50,000

Illinois

Indiana

119.20

324,700

:

250

+

111.25

at

'

Coastal Louisiana

Total

82,350

117.20

120.51

1943—

2
:

117.20

114.08

High 1942—

165,150

480,450
1,790,450

2,500

1,837,650

1,909,000 {1,946,153

117.20

114.08

103.30

High
Low

362,400

376,800

,

7+1,300

485,300

North Louisiana

113.89

103.13

99.04

Jan. 29'

212,800

500

■

103.30

99.04

111.62

26

?'eb

136,900

+

263,550

99.04

111.62

117.00

Vfar. 26

3,300
90,600

140,500

380,000

!/'':K;-"V!'7T,7:!!:7

_^..

Texas

Total

1,800

101,850

;

130,700

7

.L—.:

Texas

Coastal

ipr.

333,500

—_

Texas.:-;

111.62

117.00

119.41

30

376,000

:.,

•*;

140,600

West

116.80

119.20

111.44

25

7 301,000

■

;; Vr':.®;

104,000

119.20

111.25

28

May

rigidly

117.00

103.13

99.04

111.25

Jun

1942

;

been

113.89

98.88

111.44

120.75

326,400

6,450

Texas.—

•;

"have

98.73

111.44

116.80

120.18

9

287,050

150

290,000

:

said,

111.62

116.80

120.19

Ended

alone, of the

owners

119.20

120.29

-

Sept. 19,

1943

"Property

whole economic system," his peti¬
tion

119.20

16

Sept. 18,
7

358,000

North Texas

•Southwest

from

Emergency

up to pass
OPA legal controversies.

111.25

■

Previous

Sept. 18,

States

Appeals, set

111.25

30

Week

4 Weeks

Change

¥

<

Ended

Begin.

September

,fj

;•
——

Week

,

ables

dations

V

"/

Recommen¬

r:/•'!

Oklahoma

Allow¬

W.'./

upon

of

120.34

—

20

July

United

120.20

Aug. 27

Actual Production

•State

Washington

119.20

2

V;

BARRELS)

thousands

many

119.2%

23

IN

"representing

of properties and dwelling units."
In Associated Press

111.07

13—

(FIGURES

committee

association of property own¬

an

111.07

6

OIL

advisory

111.07

3

the East Coast.

on

CRUDE

chairman of the

was

rent-control

120.42

4

The above figures apply to the country as a whole, and

AVERAGE

said that he

120.45

40,299,000 barrels of distillate fuel, and 66,893,000 barrels of residual

DAILY

1942.

120.56

——

7

iweek 71,299,000 barrels of gasoline; 11,699,000 barrels of kerosine;

do not reflect conditions

of

by Stanley
W. Taylor of San
Francisco, who

9

,the week ended Sept. 18, 1943; and had in storage at the end of that

•

gency Price Control Act
The ruling was asked

8

6

oils.

Indus.

advices of Sept. 7, it was stated:
His complaint was dismissed by

—

10

barrels

of distillate fuel oil, and 8,524,000 barrels'of residual fuel oil during

fuel

P. U.

120.57111.07

13

12,736,000

4,420,000

Corporate by Groups1

120.58

—

11

mately 4,209,000 barrels of crude oil daily and produced

Aa

120.56

14

Bureau of Mines basis approxi¬

Corporate by Ratings'

120.56

-15

the

Corpo-

Supreme Court was
Sept. 7 by an asso¬

on

ciation of property owners to rule
on the
constitutionality of the rent
control provisions of the Emer¬

27

4,375,750 barrels,

was

S.

,

Daily
Averages

Govt.

U.

petitioned
;

247.6
247.8

Sept.

Aug.
Dec.

Jan.

14——-

247.7

•—

235.1

28

246.8

Sept. 28

—

22—
2

-

;

High, April 1—_!„____
Low, Jan.- 2

239.9
220.0
249.8

240.2

!

•(iV*vJ*i**:••*• i:-•; .''-> 'rSi^'A;.. ">»vV^• •'W'• *V1"

$53,423,000,000, or 36% larger on June 30, 1943, than
T A,-' ■.

were

Outstanding On

Bankers' Belter Acceptances

a

;++:':;; tag. 31 Decline To $ 130,244,000 ,|§|§f
31

total, according to the

■

:

i

The volume of

more

Federal Reserve Bank

f

79,809,000

85,152,000

6,069,000
1,927,000
1,915,000

7,203,000

7,727,000

1,443,000

3,562,000

1,719,000

2,019,000

1,125,000
1,684,000

5,273,000

786,000

687,000

296,000

328,000

273,000

•

Cleveland

Richmond

;

Atlanta

—

Chicago
St.

Louis

Minneapolis
Kansas City

10

—

———

11

—--

Total

Grand

4,385,000
'

549,660

$139,304,000

$138,692,000

$130,244,000

for

Decrease

NATURE

TO

ACCORDING

CREDIT

OF

•'

:

—

+

-

"

Domestic

shipments

-

Domestic

warehouse

credits

:

25,507,000
195,000

244,000

10,551,000

between foreign

-

9,785,000

8,695,000
24,433,000

-

___—.

goods stored in or shipped
countries—

on

11,809,000

'

Total

CURRENT MARKET RATES ON

11,473,000

120
150

-

30-^. JjLw

208,659,000

Nov.

•;+:i+

31—

31-.:

—

30_

Oct.

31-

.118,039,000

211,865,000

Feb.

28-

—'190,010,000

'Feb.

Mar.

31-

July

31-

Aug.

119,682,000

21-1

127,062,000

Mar. 31-

—

"*■.'•!

liabilities

Apr.

30—

29—

—173,906,000

May

29—

212,932,000

162,849,000

Tune

30

209.899,000

July

31.

156,302,000

July

Aug.

31.

139,304,000

Aug.

3131—

.

_

0

'

over

increase of $23,696,000,000, or 30% over the figure
reported a year ago.
The growth in assets was chiefly in United
States Government obligations.
Loans and discounts declined almost

•

and

capital

an

Loans

Federal Reserve District increased

bined sales for January

and

discounts

$2,531,000,000,

amounted to $17,392,000,000, a decline

or

.

.

.

5.

Of the assets held by insured

,

.

commercial banks on June 30,

1943, 25% were cash, reserves, and funds due from banks,
50% were United States Government securities, 6% were

loans and discounts, and 2%
fixed and miscellaneous assets;

other securities,
were

The
a

at the

17%

were

•

$94,582,000,000, an increase of
$23,420,000,000, or 33% since June 30, 1942.
The growth
in deposits reflected chiefly the purchase by the banks
of U. S. Government obligations offset in part by with¬
drawal of currency into circulation. Deposits of the United
States Government amounted to $7,774,000,000 of which
$7,441,00$,000 represented credits by the banks to the Treas¬
ury's war loan account in connection with the payment of
securities purchased.
Expenditures by the Treasury of
funds obtained from the sale of securities to the banks

Total

deposits

amounted

served to increase the
and

corporations.




are

end of August were 23%

A' -I

'

-

to

deposits of individuals, nartnerships,

Their demand deposits with the banks

be

which will come

1

the reconversion period."
•

'AAA

•'

SpirilualValues"

President Roosevelt; in a letter

endorsing Religious Week, Sept.
3, declared on Sept. 8 that
the United States must prove it¬
self "an arsenal of spiritual val¬
ues" if a lasting peace is to be
gained. The President's letter was
addressed- to Dr. Roy G."' Ross of

•

26-Oct

International

the

Council

of

Re¬

close of the month were 2%

hand in depart¬

on

Their stocks

but this

MAJOR LOCALITIES AUGUST,

BY

Federal

Reserve

:

♦Northern

_

-

-

—;

5

—32

1

—22

4

4

—

T—

1

3

2

some

not

0

.

i-

6

+

12

—10

+ 13

—17

—

Schenectady
Central New York State-—

:—

Mohawk River Valley

_

2

+12

Syracuse
•Northern

Southern

Binghamton
Elmira

_

New

_

_

+
_

—

7

+

-

-

—11

_

_

—

Falls
Rochester —J.
Niagara

2

—+ 16

——

AND

STORE

SALES

Reserve

District

average

(average daily), unadjusted—
(average

Stocks,

daily), seasonally adjusted—
unadjusted
—

Stocks,

seasonally

♦Revised.

adjusted

—2

in

these

education

the

have
a.

such
imr

our

and

ideals.

We

re-education

dynamic- concepts
of

made

world.""

new

STOCKS

this
:

which
hemisphere a

.

.

.

.

/■

.

New Cotton Exeh. Member
Eric"Alliot,

=100]
Aug,

Sales

realization -of
need

1

'•

New

1943-

1942

Sales

:

7

-1—23
■

on

experiences, to see the
slow, difficult but constant strug¬
gle of our forebears' toward the

■

—22

8

6

+ 21

need
above

.

DEPARTMENT

[1923-25

.

•

Second Federal

OF

+

+

<; +; i

—

♦Subject to possible revision.
INDEXES

+ 32

—

+

—

department stores—

♦Apparel stores

_

+13

—.

.

3

—12.

+ 13

We
live

to

mediate

■

4

11

+10

p—

—

+

■

'+16
+

_

-

York State——

Buffalo

11

>„

struggle

present

the greed for power of
organized groups, and the
infrequent ; miscarriage * of

occasions

7

—

4

+

.

_

—

_

—

_

-

—

State

York State.

New

_

-

-

York

New

the

assuredly be in vain.

possibilities;-.

+ 11

—

_

of

direction

ical view of human nature and its

+ 12

—

Utica_

2

+

rational

plan£' for human betterment all
tempt us at times to adopt a cyn¬

6

+

Albany

of

viduals,

6

—

Hudson River Valley

prove

faith is not easily come
The selfishness of some indi¬

by.

—28

+

+

—

Bridgeport
Poughkeepsie
—
Upper Hudson River Valley

we

arsenal

an

"This

—34

2

—

must

—25

-

Fairfield Counties

and

the

rifices;; in

Aug. 31, 1943

2

—

—

_

Westchester

,

8

+
—

Jersey__„

New

"Newark

Aug.

—

are

we

life, a faith undismayed by all ob¬
stacles, our labor and our sac¬

Jan. thru Stock on hand.

Aug.

<

in

and

yearearlier
Net Sales

_

strive unless

,

Percentage changes from a

—

we

that

spiritual values. Unless we have
faith in freedom, in brotherhood

1943

District

,

City

is, will not suffice to gain us
just and durable peace for

that

also

.

York

it

already proved that
democracy,
accomplishment, great as

the arsenal of

are

which

.

Western

we

hand at the

on

have

"We

below August, 1942.

below last year.

TRADE

Second

Lower

The com¬

year ago.

a

6% higher than in the

the bank's tabulation:

STORE

DEPARTMENT

New

ligious Education, Chicago, spon¬
sor
of the observance, according
to
Chicago advices to the New
York "Times," which reported the
President as saying:

apparel stores in the New York Reserve District reported

gain of 16% in net sales in August.

♦All

6.

78,709,455.

95,459,111
-i

Stocks of merchandise

period last year.

same

ment stores

1% above

through August

Department Stores—

13% from last June.
The reduction in
loans over the year was chiefly in consumer loans, although business loans also declined;
/
..
'
The banks reported cash, reserves, and funds due from banks
of $25,538,000,000, on June 30, 1943, an increase of $1,156,000,000, or about 5%, since June 30, 1942;
of

.

Of

*7,056,234 " 6,952,820

'

'•

post-war-

should

Says U. S. Must Also
Prov^ Itself:''Arsenal |

.

.

102,405,464

—

—

political subdivisions
on June 30,
1943, amounted to, $3,441,000,000, a reduction
of $53,000,000, or about 2% during the year period.
Investments in other securities declined by 12% and
amounted to $2,907,000,000 on June 30, 1943;

4.

.

■

of department stores in the Second (New York)

that August sales

The following is

ported for June a year ago;
Investments in obligations of States and

'•

accounts;.
•.

obli¬
gations amounted to $51,542,000,000, double the figure re-

3.

!

•

ing significant items:
1.
On June 30, 1943, holdings of United States Government

'7

2,858,709

;
/ '
2,801.594
2,741,404
,
972,042 ' • 935,727
t.. -433,968
r
416,980

-

A The Federal Reserve Bank of New York announced on Sept. 18

comparative statement of assets and liabilities of all insured
commercial banks issued by the Corporation also revealed the follow¬

>

71,756,635

2,848,630

•

•

re¬

"

The

2.

88,402,877

95,176,124

—

the

-

August Department Store Sales In New York
Federal Reserve District I % Above Year Ago

13% from last June.

>;

accounts)—

:

meeting

the post-war era.

138,692.000

Federal Deposit Insurance Corporation announced
Total deposits amounted to $94,582,000,000, an increase
deposits for June 30, 1942.
Total assets amounted to

$lQ2,405,000,000,

1

594,204

11,509

68,844
513,851

130,244,000

deposits and

Sept. 17.

MM

capital

(excluding

liabilities

Revised.

T. Crowley of the

•

582,450

also

laying plans to launch new enter¬
prises and to cross the many new
horizons, that will lie before us in

139,846,000

—

total assets reported by the 13,302 insured
commercial banks were higher on June 30, 1943, than on any other
call date since the inauguration of deposit insurance, Chairman Leo

of 33%

593,666

—

years.

'

the' nation

demands

,

135,815,000

30—

Apr.; 30—

Insured Banks Had Record
Deposits And Assets On June 30,1943

on

—

capital: accounts—;;; 7,229,340

Total

: Total

FDIC Reports
Total

71,162,431

v

—

128,350,000

177,293,000

May
June

197,472,000

30—

?■

129,818,000

215,005,000

30— —219,561.000

31—

—

———

-

30_.

May

June 30—.

87,820,427
9,748
46,478
526,224

"While

notes, and debentures—
2,841,304
in, by stockholders or accumulated
from earnings)
J.,„2,886,829
Undivided profits
;M,039,182
Amounts-set: aside for contingencies, etc.——
^ 462,025

1943—

:

Jan.

Apr.

—

94,582,458
24,470
61,260
Aj, 507,936

ports him as saying:

765,619

Capital stock,
Surplus (paid

118,581.000

_L—' 197,278,000
182,675,000

1,219,141

"Times"

York

New

The

4,337,016

after

Total

116,067,000

Dec.

194,220,000

deposits
money

Capital Accounts—

$

31-

Jan.- 31—

„

1,827,528

/

'

than

entirely" different' methods
were used in the depression

14,889,560

1,132,339

approach to

post-war problems should be with

10,076,427

travelers'-

miscellaneous liabilities

Total

123,494,000

217.312,000

28—

Mar.

record of the

Nov." 30-

•

'1942—

Brown stated that the

39,266,281

11,144,487

10,680,944
~ >"
;

officers'"

and

and

credit

—

Acceptances outstanding—
Other liabilities

close of each

212,777,000

31L_.

Feb.

29-

Dec.
,

Jan.

Total

Sept.

184,806,000
_L_1 193,590,000

.1941—

certified

of

letters

checks outstanding

Borrowed

•

176,801,000

31_

31—

tf-m

of

form

the

cash

checks,

~'

_

With differing conditions to be
met - when" the - war
ends,
Mr.

...

•,

.

—

—

—

Others—in

j

1942—

30_

Nov.

31-

demand

Banks.

-

:

Oct.-

Dec.

-

■

Sept.

186,786,000
196,683,000

Oct.

1

1941—

176,614,000

30—

6ept.

1940:,

Brown declared..

V

,

of

$

,1,678,363

78,709,455

—

1943

A
A

month since Sept. 30,

on

meeting * the unemploy-*
problem, of -the) 1930's, Mh -

in

used

-

1,614,613

;

102,405,464

creating

are

chology^similar 'to the approach
mfent

95,459,111

1,585,570

;

.

.

unjustified fears"

dangerous and misguided phy-

a

•

/ff
72
i'-'-Vc

(

—

1940—

-,$94,417,000

A

following table, compiled by us, furnishes a
bankers' acceptances outstanding at the

The

y

.

107,423
218,855

and corporations, pay-"
^
——53,423,385 47,128,273
Individuals, partnerships, and corporations, deV , v v
posited for periods of time—J__—J:.
—
16,897,124 15,706,335
U. S. Government and postal savings.—
7,774,190
8,228,698
States and political subdivisions—:
4,674,476
14,393,493

Dealers'Selling Rates

180

volume

92,487

—U

-r—

101,911
225,559

and

232,429

T.

--

-

„

tremen¬

a

5

I r*'

• " •
According to Mr.'* Brown "false

1,060,323

198,800

252,0582

assets.

1—

1,047,535 '

164,306

,

in itself will be

dous one."'

•

>

1,022,511
..."

—

1.

miscellaneous

•

:

54,208

.

^

y-.'

assets

A

-ft

■

—-

accept-

——.^.—2

Deposits—
Individuals, partnerships,

'"v *. /'■.;

Vz

•
—,—

90

•*

Total

>/2
»/2

30

60

account of

on

——i

J

,

able

PRIME BANKERS ACCEPTANCES, SEPT. 13,

Dealers'Buying Rates

Days

;

59,333

pay

bank premises,.

Total

BANKS

$7,939,000

moi|th

peace

40,808

to

Total

-

Increase for

19,922,804
52,649,232

3,099,071

Liabilities—

Others—-$35,654,000

of

Bills

$58,763,000

18,905,869
66,251,123

assets
^

accumulated

17,392,157

Investments and other assets indirectly representing bank premises owned or other real estate
i'

huge

(including overdrafts)——_

premises owned and furniture and fixtures—.
real estate, acquired in settlement of debt;

Other

be

will

securities——_L75,282,280

and

—

as

normal domestic markets,

our

there

shortages, that must be supplied,
and
the job of reconverting to

—

used

for

3,4?3,880
3,296,456

2,907,248

r

promises

ances_>

13,249,000
23,228,000
331,000

9,925,000

.

BILLS HELD BY ACCEPTING

Bills—

loans

Customers

not

>

25,936,082

i-

Other securities

Bank

'

<i

.

,

4

.

Own

City, Mr. Brown "said the
problem "will be to prevent a disasterous runaway which could, if
allowed to go uncontrolled, lead
to an eventual collapse and de¬
pression."
He pointed out that, "because
of years of restricted production

12,767

banks—

New

in

York

24,381,860

foreign

,

Aug. 31, '42
$77,952,000
•
8,071,000

July 31, '43

$81,471,000

Dollar exchange

Based

13,255

With

1

.

•V\ A-iTsc- %

Aug. 31, '43

Exports

19,381

Tdtal-xi&sh and funds due from, banks™——
25,537,614 27,593,375
Loans and Securitiear*1
i
'v
•
U< 8.
Government
obligations and obligations
guaranteed by the U. S. Government—.
51,541,848 40,711,697
Obligations of States, political subdivisions, terri¬
torial and insular possessions——
3,441,027
3,533,486

before
the
annual
the American Trade

12,294,505
8,105,338

:

——

on

Association

2,677,505

13,071,533
9,085,022

Other

$9,060,000

year

$76,830,000
' 9,518,000

.

—

-

—

4,116,759

8,436,308

9,793,000

.

Imports

3,539,563

31M00

11,275,000

month—$8,448,000

.'

banks—

other domestic

Corp.,

Executives

13,403

12,092.461

With

de¬

a

Sept. 24.
Speaking
meeting of

(Amounts in thousands of dollars)
1,449,901
1,306,808 ■
1,290,745.

:

In -vault

immediate

an

of Johns-Manville

dent

1942

1S42

*13,347

By Brown

of

pression,
with
unemployment
practically non-existent, was fore¬
cast by Lewis H. Brown, Presi¬

June 30,

Dec. 31,

30,,

13,302

!;•+

V-.'+

Loanp and discounts

575,666
9,149,000

_i

for

Decrease

June

—

——„

Cash and funds due from banks—

"

—.

San Francisco

■;i. Assets—

$25,160,000

—

Dallas

12

banks—

of

danger

post-war boom, rather than

1943, DEC. SI, 1942, ANI) JUNE 30, 1943
1943

Number

102,000

Philadelphia

+

Total

INSURED

OF

LIABILITIES

AND

'''

Aug. 31, '42

7,226,000

3

July 31, '43
$28,442,000

The

'

1

AS OF JUNE 30,

BANKS

process of collection-.—With Federal Reserve banks^-

2,597,000

Boston
New York

1

OF ASSETS

STATEMENT

In

Aug. 31, '43
$23,068,000
76,604,000

Federal Reserve District—
1
2

June 30, 1942.

on

COMMERCIAL

DISTRICTS

RESERVE

FEDERAL

BY

:8.8

i

V

PRELIMINARY

OUTSTANDING—UNITED STATES

ACCEPTANCES

DOLLAR

BANKERS'

_

which

capital accounts amounted to $7,229,000,000 on June 30,
1943. equal to 7.1% of book value of assets, compared with

issued by the

monthly acceptance survey

of New York. As compared with a year ago,
the Aug. 31 total represents a decline of $9,060,000.
In the month-to-month comparison, credits for dollar exchange
and those based on goods stored in or shipped between foreign
countries were higher, while in the year-to-year analysis only ex¬
port credits were higher.
•
viv^uThe Reserve Bank's report follows:

Boom Seen

by $277,000,000 over the year period, reflecting in-

in surplus, undivided profits, and reserves,
than offset retirements of preferred capital.

creases

•

Aug.
July

bankers' dollar acceptances outstanding on
amounted to $130,244,000, a decrease of $8,448,000 from the

31

.

.

capital accounts of the insured commercial banks in-

creased

«

Danger In Post-War

year ago;

Total

7.

Thursday, September 30, 1943

CHRONICLE

THE COMMERCIAL & FINANCIAL

1336

-'i;*y^r;^^c/>.

July

June

*94
123

110
115

*165
*169

104
•109

.

*91
*128
*106
*117

Aug.
95

125

123
127

York

nounces

President of
Exchange,

Cotton

the

election

the
an¬

of

Chessley
Memphis,
Tenn., to membership in the Ex¬
change. Mr, Howard; is a partner

B.

•

Howard,

•

Jr.,

of

of E.-H;'; Sanders Uottoh Co.

;

: '

Volume

THE COMMERCIAL & FINANCIAL

Number 4216

158

estimates

Individuals'

Liquid Saving in Second Quarter

necessarily

Securities

and

Exchange Commission, in its analysis of
saving by individuals in the United States covering the second
quarter of 1943, showed that the rate of liquid saving remained at
about the same level as in the first quarter of the year, in spite
of an increase in income after payment of taxes.
This result, the
SEC said, reflects the normal seasonal decline in the rate of saving
during the second quarter of the year but may also indicate an
increase in the propensity to consume totally apart from seasonal
factors.

therefore,

add

subject

are

to totals,

.

mission

also

Securities

notable

were

changes

mortgages.

the second quarter of 1943 as compared with
in the preceding 12 months.
In contrast to

the pattern established
prior quarters, indivi¬
duals added more to their holdings of U. S. Government securities
than to their cash on hand and in banks, largely as a result of the
Second War Loan Drive in April.
Saving in the form ot u. b.
Government securities during this quarter not only constituted the
largest component sof individuals' current saving but also reached
the highest point on record,
'

hand and in banks continued to be

-

"While additions to eaatr on
of

smaller accumulation of money in the second quarter
compared with prior quarters was, as mentioned above,

1942.

of

the lowest level since the second quarter

they wcxe 'at

substantial

1943

The

largely a result of the Second War Loan Drive in April, but it may
have reflected in part the enactment of the Current Tax Pay¬

also

Act of

ment

hand

one

1943 which

for

freed

other

including

on

the

purchases of Government securities and

increased

on

the

purposes,

increased consumption, funds which had been earmarked for
payment of taxes.

other

importance of saving in the form
compared to cash and deposits, the most
pattern of saving in the second quarter

1943

of

debt.

the

was

substantial

decline

in

the

liquidation of

consumer

Individuals paid off only $200,000,000 in the second quarter
in contrast to $650,000,000 in the first quarter. (This does not include
the

.

reduction

in

consumers'

indebtedness

to

unincorporated busi¬
the second quarter of 1943,
and $150,000,000 in the first quarter.) The decrease in this form
of saving is partly due to seasonal factors and partly to the fact
estimated

ness,

at about $75,000,000 in

that individuals have

.

,

1940

•

,

.'

.

Currency
U.

S.

Government

Federal

"It

will

be

the

above

estimates

include

the

saving

unincorporated businesses, i.e., tradesmen, farmers, etc., as well
the. saving 'of consumers.
There is some evidence that a con¬
siderable part of individuals' liquid saving since the
beginning of
the War has been attributable to such unincorporated businesses
as a result©# greatly-increased prof its.
Such profits have been re¬
as

in

substantial

increases

cash

in

and

deposits.
(Part of the
increase in cash and deposits reflects a liquidation of inventories
and receivables of unincorporated trade (net of retirement of notes
and accounts payable).
Although the amount of this increase is not
known, it is believed to have been less than $200,000,000 in the
second quarter of 1943 and even smaller in the first quarter of the

year).
However, in spite of the large accumulation of cash and
deposits by unincorporated businesses included in the above esti¬
mates, the increase in cash and deposits held by the consuming
public has been greater by far and has been of unprecedented vol¬
ume during the past year.
While there is as yet no reliable measure
of the distribution of total saving or the components of
saving be¬
tween consumers and unincorporated
businesses, an attempt is cur¬
rently being made to obtain such data."
The

following table presents in detail the estimates of saving
by individuals (including unincorporated businesses) on which the
above analysis is based;
• ■
\
1
GROSS

SAVINGS

BY

INDIVIDUALS

(Billions

IN
of

tax

•

-J

'

•••

UNITED

"

'

.

•'

•

.

1

-

,

1943.

Gross

Saving

By

Jan.-

April-

1940

11941

1942

March

June

_________

16.1

24.7

38.7

11.0

11.3

■*—

___

4.3

10.3

29.4

9.1

+11.6

I +

4.0

+

2.9

.4

+

.1

+

.2

,

2.
3.

Insurance and
a.

+
4.

Private

b.
c.

3.0

+

5.3

.3

+

.4

+

insurance

+

1.7

+

2.1

+2.4

+

.8

+

.8

+

insurance

Total

b

U.

1.2

+

1.8

+2.4

+

.7

+

1.0

+

2.9

+

3.8

+

4.9

+

1.5

+

1.7

+

—

S.

and

additional

addition of these

Other U. S. Government

.9

+

2.8

+

8.0

+

2.6

+

3.0

+

.2

.4

+

2.0

0

c.

State and local governments—

—

.1

—

.2

—

.1

0

Corporate and other

—

.5

—

.5

+

.3

e.

5.

a.

b.

^Purchases

Change
Saving

+

.1

+

and

—:

+

—

debt

in

a_.

2.5

+

+10.2

.9

1.7

+

+

————

classified

3.0

+

+

—_

(a.

goods

tGross
durable

saving

9.3

+11.4

—

not

.2

+

+

—

.1

1.3

+

.3

+

.3

7.6

+

1.6

+

2.0

—

+

.7

+

.2

.6

+2.8

Does

not

as

well

as

of

automobiles

and

dealers

financed

four-family nonfarm homes

less

by bank
net

properties by non-individuals.
Based

♦♦Purchases.

on

'

rently being revised.
the United

Department

of

PERCENTAGE

Commerce

The figures shdwn above include

data
all

on

new

States.

and

commodity
passenger

flow

cars

cur-

sold

Note—The
sources.

unincorporated

and

business

are

not

included

in

these

figures.

foregoing data have been compiled by the Commission
from many dif¬
Because

of

the




nature

of

the

figures,

current

data

are

necessarily

$250,000,000
is

program

thi$

peace¬

plant

com¬

expan¬

rapidly nearing
'

Tin

"Grade A" tin, the principal
grade
in this market, continues at

sold
52c.

PREVIOUS

maximum
has

one-quarter cent to

Longhorn 2 Star, having
tin

mum

content

been
51 %c.

mini¬

a

of

99.50%,

carries

a maximum of 51V2C.
This
grade previously was not covered
in the price schedule and sold on

the

Sept. 4

basis

same

ordinary Chi¬

as

tin at 51V8C.

nese

Sept. 11

for

raised

YEAR

Sept. 18

pound.
The
"Grade B"

per

price

Maximum prices on the various

4.7

6.2

5.9

14.4

19.1

19.6

13.9

13.5

15.1

14.3

9.2

9.0

fective Sept. 22, follow:

Southern States

10.3

11.9

Grade

20.0

20.0

Rocky Mountain

23.3

26.1

15.1

A

19.0

18.5

17.7

West Central

Pacific Coast

26.5

Total United States

•

DATA FOR RECENT

Week Ended—

July

4

23.8

22.4

v

18.0

1942

4,110.793

3,424,188

10

3,919,398

4,184,143

•; 18.4

3,565,367

24

99.80%
not

.-■v

1941

1932

51V2

E

1929

99.64%

99.00%

to

99.49 %______

Below 99%

51 Va
51

1,592,075

1,415,704

1,711.625

3,199,105

1,433,993

3,220,526

1,440,386

1,727,225
1,732.031

1,426,986

1,724,728

serve

1,415,122

1.729,667

1,431,910-

load lots from inland warehouses.

3,263,082
3.233,242
3,238,160 <"

A provision has been added to
the order for sales by Metals Re¬

Aug 21

4,264,825

3,673,717

+16.1

Aug 28

3,230,750

1,436,440

4,322,195
4,350,511

1,733,110
1,750,056

3,639,961

v+18.7

3,261,149

1,464,700

1,761,594

in

3.672.921

in +18.4

3,132,954

1,423,977

1,674,588

3,583,408
3.756.922

+ 18.0

3,322,346

1,476,442

lows:

1,806,259

+ 16.0

3.273.375

3,720,254

+ 17.2

3.273.376

4,229,262

18

Sep.

25

4,358,512
4,359,610

:

content

1,341,730

3,178.054

3,637,070

11

tin

2,903,727

4,240.638
4,287,827

Sep

for

51%

20.1

14

Sep.

5iy»

99.79%____________

to

+ 15.7

15.8

+ 16.6

+-;+ 17.-3*
.

.05%. arsenic

to

99.50%

+

4

than

more

99.65%

3,625,645

Sep

52

specifications, and

F

1942

+ 17.4

3-,634,795

specifications

A

D

3,649,146

Aug

meeting

Procurement

C

4.226,705

7

and

higher, not meeting

or

Grade

y

+4,196,357

_____

31

Aug

ef¬
Price

higher,

or

Division

:

pound,

per

+ 14.3

+

3,428,916

17

cents

Treasury

(Thousands of Kilowatt-Hours)
% Change
over

in

99.80%

22.4

16.0

grades,

B

17.2*;':

WEEKS

1943

3

July
July
July
July

1,490,863
1,499,459

Co. covering less than

Straits quality tin for
cents

'

.

v

1,792,131

pound,

per

A

Sept.

fol¬

as

'

Oct,

Sept,. 161+
52.000
Sept. 17—52.000

1,777,854

shipment^

was

,

•

.

car¬

Nov.

,52.000

52.000

52.000

52.000

Sept.

Editors Note—At the direction
tain

of

the

Office of

Censorship

Sept.

52.000

52.000

.52.000

+

52.000

52.000

•+

52.000

Sept.

issued

WPB

in

at

officials

held

in

New

The situation

prohibiting

51,125c.

export of silver
publication further
in part:

to say

on

threaten

to

proved

the

the

mines

some

has ben

area

Though

at

in

labor

has

im¬

districts,

short¬
still exist in various quarters.

Sales
in

departments
on

recent

will

stockpile.

months,

be

fair ton¬

a

into

moved

the

Jhe price situation

was

Division

notified

cf

WPB

sellers

that

business may be accepted as soon
the customer has obtained word

to

the

to

purchase

called

effect

for

that

the
on

he

metal

his

is

entitled

in

shapes

order.

Such

may

allocation

to

pound.

Sept.

11,

sellers

have

ores

been

of

of
au¬

Price

Atlantic

basing points in sales calling for
delivery in the area east of the

Mississippi and north

of the Ohio.
This action is covered in Amend¬

ment 3 to MPR 248.

Quicksilver

be accepted

certificate

Consumption
expected

as

as

use

to

result

a

easing

the

of quicksilver is
improve moderately

of

the

recent

regulations

of the metal.

order

governing

Interest in for¬

ward

meeting held

discuss

lead

tin, continues

by the Office
Administration
to
use

Lead
At the

99%

thorized

heretofore required.

October

on

shipments of quicksilver has
declined, traders report, and more

Sept. 20

allocations

of

metal

lead, some requests for
modified, particularly

is

expected to

go

into the

stockpile.

are

So

concerned,

were

in instances where consumers

the market last week

far

prices

as

are

unchanged. New; York quo-,
inventory. tations continued at
$196 to $198
during per flask..
October—domestic and foreign—
Silver
should hold close to the 65,000ton level, which is accepted as a
During the past week the silver
carrying
Total

a

was

substantial

distribution

highly

of lead

satisfactory

showing

market in London has been

un¬

with

der present conditions.

the

price

23%d.
'

■

Labor
and

Zinc

shortages

smelters

the

at

continue

to

metal

remains

a

'

Daily Prices

unchanged,

The daily prices of electrolytic

with the emergency stockpile

still
increasing. Owing to the fact that
military and Lend-Lease needs
may increase on short notice, the
authorities in Washington are not
expected to do much in the near
future in the way of releasing

copper

metal for civilian consump¬

(domestic and export,

re¬

finery), lead, zinc and Straits tin
were

unchanged

from

those

ap¬

pearing in the "Commercial and
Financial
■

more

'

U. S.
Treasury prices are also
unchanged at 443/4C..and 35c., re¬
spectively.

mines
be

quiet,
unchanged
at

The New York Official and the

+

disturbing factor in the zinc in¬
dustry.
The market situation in
the

Copper

week

actual

active

were

October allocations.

unchanged.
The

information,

foreign

reduce

a

manganese

by the seller in the place of the

the

The

went

or

52.000
52.000

Manganese Ores

Markets," in its issue of Sept. 23

sary

52.000

22—52.000

Effective

appeared

Sept. 20.
was quiet.

52.000

cer¬

August,

on

zinc

f

Chinese,

,C/

price schedule for tin was announced by OPA
during the last week, chiefly to provide for
ceiling prices on minor

as

£2.000

'

war.

"E. & M, J. Metal and Mineral
stated: "An amended

last

20

production and shipment figures and other data have been
omitted

for the duration of the

in

18—

Sept. 21

Non-Ferrous ietats—CPA Announces Intended
Price Schedule For
Tin—Copper Sales Active

in

in

the

The

6.3

As
of

The

capac¬

its

18.4

Central Industrial

nage

attributable to purchases of automobiles and other durable
consumers'
although including some debt arising from purchases of
consumption goods
The other segments of individuals'
debt have been allocated to the assets
to which
they pertain, viz., saving in savings and loan associations,
insurance, securities and
homes.
Changes in the commercial indebtedness of unincorporated
business

ferent

OVER

Sept. 25

Middle Atlantic

loahs.

acquisition

more

completion.

-Week Ended-

other

ttLargely

indebtedness to

INCREASE

Major Geographical DivisionsNew England

situation

goods,

consumers'

sion

1943, was approximately 4,359,610,000 kwh., compared with
3,720,254,000 kwh. in the corresponding week last year, an increase of
17.2%.
The output for the week ended
Sept. 18, 1943, was 16.0% in
excess of the similar
period of 1942.

maintained.

include

of plants with

pany's

the

output,
according to reports from the. Val¬
ley. So far, however, the demand

0

.+
to

stated last week.
Government
has
become

owner

will be 45 times
time peak, he added.

other forms of Saving in subsequent releases

Growing labor shortages at brass

' .2

.3

"+
+

:

soon

surpassing,

or

year

Institute, in its current weekly report, esti¬
production of electricity by the electric light and
industry of the United States for the week ended Sept.
25,
that

power

4.0

+

1.9

industry

producing,

goal of 2,100,000,000 Jb. ol
aluminum annually, Boy A! Hunt,

Co. of America at the end of

to the

■'

regular part of the releases in the future.

a

be

its

ity than all privately-owned com¬
panies in the industry combined.
Forging capacity of the Aluminum

The Edison Electric
mated

mills

^

one-

but not paid

will

aluminum

the document in line with
prevail¬
ing conditions in the industry.

last week

of

13.4
26.2

j/R"-

Aluminum
The

EBestris Gutpyt For Week Ended Sept. 2S, 1243,
Shows ! 7.2% Gain Over Same Week Last Year

ages

include purchases by brokers

"ao l

—

^

-

.

OPA's price schedule for tin
(Maximum Price Regulation No,
17) has been amended to bring

goods.

construction

form®

for copper from that

1.1

excluding purchases of homes

_

§Does

UNew

.6

+C.6

most

,

—x.

♦+

.5

estimates of corporate saving in these

Copper

•

+1.6

+1.1

+

JRevised.
1

+

8.25c., St. Louis..

im¬

.2

—

2.7

+

unincorporated business saving of the types specified.

consumers'

+2.9

+6.0

quarter-

1.2

corporate or government saving.

■

+3.3

+

at

.<

President of the Aluminum Co. of

■+"■'/-

significant components of the saving of all
portant segments of the national economy will be available.

0

.2

+

;-

ftLiquidation of debt, not elsewhere
♦Includes

*

2.4

dwellings:

consumers'
7.

+

—

minus b.)
"♦Automobiles and other durable

c.

6.

—

Total,——

Non-farm

—

___

October, allocations of; zinc
expected next week.
1 " \
-Prime Western zinc continues

America,

of.

6-30-43

will, of course, give a much more adequate picture of the financial
condition of corporations and their liquid
position.
In this way the

volume

pesos."

Savings bonds—

d.

■

next

Advices from
Mexico report that Finance Min¬
ister Suarez has issued an order

gSecurities:
a.

.4

+2.4

.3

(other than banks and insurance companies)

The

and

+

pension reserves:

Government

—

_

June

+5.8
+1.5
.4
— -5
+1.2
+4.5
+4.9
•>*'<£
+ -6
12.5
$500,000,000 of this amount represented Victory taxes with¬

than

held by corporations

York

and

Currency

9.1

Type—

bank deposits—+
Savings and loan associations
+

1.

1942
March
(Billions of dollars)

as

on the market since the
original order
1941.
'Grade A' tin continues at
52£ per
pound.
Copper allocation certificates for next month came
through
in volume, as
expected.
Distri-<t>
bution of foreign lead was deter¬
certification, specifying the allo¬
mined at a meeting of
industry cation number and other neces¬

STATES'*
-

"'I

'Gross saving
tLiquid saving___

^A

April-

liabilities-.,--

less

grades that have

THE

dollars)

•

t

and

—

+1.8

income

♦Somewhat

was

1940-1943.
;

tion.

1943

©f

flected

+2.2

a

securities

*

that

noted

1941

•

-

and bank deposits

already paid off the bulk of their outstanding

installment obligations.

not

Level

as

significant feature of the
-

Department,

Jan.-

•

"In addition to the increased
of Government securities

Treasury
Change

It is planned to make the

composition of saving in

in the

will

'

Treasury Department until the

"There

and

saving by individuals, the Com¬

Exchange Commission,
Department of Commerce data).

The SEC announcement Sept. 16 added;
•

rounded

V-.';,

■

and

of

than

1337
are

public estimates of corporate saving,'excluding
banks and insurance companies, in the form of increases in
cash
and deposits, Government
securities, and inventories, and the off¬
setting increases in Federal income tax liabilities for the second
quarter of 1943 and prior periods.
(These estimates are based on

Inventories

other

Figures

made

months, April through June, individuals added
$2,900,000,000 to their cash and deposits; $4,200,000,000 to their
holdings of U. S, Government bonds; and $800,000,000 to their
equity in private insurance, mostly life insurance.
They also paid
off somewhat less than $50,000,000 of mortgage debt and $200,000,000
indebtedness

revision.-

addition to the estimates of

In the three

consumer

to

are

In

At Same Level As in First Three Months
The

and,

CHRONICLE

Chronicle"

1942, page 380.

of

July

31,

+1

& FINANCIAL CHRONICLE

THE COMMERCIAL

1338

The quantity of coke from
period/-'
*

put for the week ended Sept. 11, 1943.

Trading On Hew York Exchanges

beehive

increased 1,700 tons during the same

ovens

ESTIMATED UNITED STATES

Exchange Commission made public on Sept. 25

The Securities and

WITH

COMPARABLE

DATA

figures showing the volume of total round-lot stock sales on the
New York Stock Exchange and the New York Curb Exchange and

figures.

-

Trading

account

12,100

ESTIMATED

PRODUCTION

United

11,

sales

Except

bers,

Dealers

Lot

"

,

sales

Short

sales

Short

Total

Total

purchases

Short

Total

'

•

purchases

Short

——

—

•tf.'.

of

shares—

235
5

5

;V

:

\

85

106

56

163

114

1

1

•

1,182

142

161

159

138

949

939

894

302

314

221

32

35

33

4

5

^

_

17.080
'

>

*Customers'

other

sales—-

total

sales—-

420,513

————-

13,990,156

3 414

.

41v',ooq

93

t

Customers'

Dollar value

Round-lot Sales by Dealers—

550

Number

59

117

Short

168

...

v-7

207

142

*
,

60

sales——
.—

126,315

—

713

718

1,015

^

Shares:

of

tOther sales

'•

■

248

25

40

5

7

8

99

72

70

48

28

36

32

653

648

2,782
120

sales

>

126,375

.

68

37

Total

,

27

m

Round-Lot Purchases by
Dealers—

and

of

Number
34

j

v

29

o<>21

619

685

417

861

2.575

2,904

1,988

3,585

128

91

119

■.: 21

—

'

124,770

shares—

exempt"

"short

marked

are

re¬

tSales to offset

orders,

odd-lot

customers'

sales

and

to

26

.

■

"

'

)

ported with "other sales."

(v.

■

128

.

■yyrf 43

2,905

35

•Sales

56

26

28
'

Dakoia

and

^

: :

sales

1,587

44

.

Pennsylvania (bituminous)

fiaies

.

short

114

57

(bituminous

'totui

Shares:

of

Customers'

275

455

50

Texas

Customers

Number

806

1,097

483

Tennessee

16,957

s

1 i

43

(lignite)

'

123

sales—

214

1

1

536

South

sales—

other

96

147

1,508

and

short

*Cu*,^,nerB'

3

92

39

North

3.70

y

vv

Sales)

Customers'

/

153

501

(bituminous

416,759
16,305,377

—

of Orders:

Number

406

242

324

5

average,
111923

1937

1941

1942

14.896

...

Sept.

Sep. 11,

Sep. 13,

Sep. 12,

i.

383

5

New Mexico

58,810
528,615

■*...■

sales

Number

._•

Dealers—

84

lignite)

•

"Total
for Week

orders

Odd-Lot Purchases by

131

,

...U,...—

Maryland

673,010

;

—

sales

JOther

1943

*

Ohio

Total

Sep. 4,

1943

\

"

Michigan

129,035

1943

purchases)

of

:

.

Week Ended-

362

Montana

Sept. 18,

Number

§Subject to re¬

COAL, By STATES

Kentucky—Western

5.80

117,435
'

—

available.

not

1,333

11,600

—

—

IComparabu

Thousands of Net Tons)

Iowa

131,890

sales

Ended

Dollar value

Kansas and Missouri

off the floor—

:v

STOCK

Y,

Week

(Customers'

5,638,600
5,926,400
4,004,100
shipped by truck from authorized

onal

ESTIMATED WEEKLY PRODUCTION OF

Illinois

,

ON THE
EXCHANGE

SPECIALISTS

AND

N.

164,300

ana

Kentucky—Eastern

-1

Total-

4.

.

8.38

172,770

—

sales

fOther

'

ERS

-

Georgia and North Carolina—

10,420

—

——

sales

r

Arkansas and Oklahoma

162,350

Other transactions initiated

:

Indiana

-—

—

tExcludes washery fuel.

Alaska

285,620

——

sales

coal,

Ex¬

ACCOUNT

LOT

1,209,600 45,340,900 44,438,500

3 63,100

dredge

HRevised.

Colorado

236,010
—-—

and

Alabama

36,790
248,830

.

——

—-

sales

f Other

V;

-

—-

purchases

Total

3.

J,

—

—-U
transactions initiated on the floor—

Other

washery

State—

<

Stock

York

New

Odd-Lot Sales by Dealers:

total—

Sep. 11,

.

sales

Total

"'2.

^

and

continuing a
figures being

(Customers'

305,110

_—fa———~—

1,242,300

ac¬

dealers

TRANSACTIONS FOR THE ODDOF ODD-LOT DEAL- '

STOCK

;

1.244.100

odd-lot

series of
current
published
by the Commission.
The figures
are based upon reports filed with
Ihe Commission by the odd-lot
dealers and specialists.

(The current weekly estimates are based on railroad carloadings and rive*
ments and are subject to revision on receipt of monthly tonnage reports from district
and State sources or of final annual returns from the operators.)
<
" /

'■■■'' 7 V.::'.:-//'y.

sales

fOther

1Q9Q

1Q49

stock

the

odd-lot

all

the

change,

1,214,000 41,974,000 41,965,000 46,654,000

(In

;■

■

.

Sep. 21,

Sep. 19,

1049

1,142,000

164,800'r

States

'

of

of

volume

for

specialists who handled odd lots
on

1,265,000 43,724,000 43,714,000 50,274,000

—

stocks in which

Sep. 18,

1Q49

1943

1,190,000

1,212,000

total ..ii.

States

tPcr Cent

for Account of Memfor the Odd-Lot Accounts of Oddand Specialists:

Transactions of specialists in
they are registered— ■
Total purchases

1,

Sep. 19,

fiSep.11,

1943

Beehive coke—

Transactions

Round-Lot

B.

COKE

AND

Cal. Year to Date

—

daily

the

ing

transactions

By-product eok«—

vision.

3,526,460

—

—

:V

1,263,000

fuel-

•Includes

for week
82,280
3,444,080

—

sales

Total

coll.

operations.

-

——,

JOther sales

incl.

tCommfcvci^i production

1943

Total Round-Lot Sales: '
Short

anthracite—

Penn.

®T-o*ai

Total
A.

PENNSYLVANIA ANTHRACITE

OF

§Sep. 18,

Round-Lot Stock

WEEK ENDED SEPT.

207,569

226,940

into

(In Net Tons)

United

Stock Sales on the New York Stock Exchange and
Transactions for Account of Members*
(Shares)

239,271

converted

-Week Ended-

that exchange of 784,145

Round-Lot

6,304

6,974

produced during the week

Exchange

a summary for the week ended
Sept. 18 of complete figures show¬

count
7.010

barrels

15.04% of the total
shares; during the Sept. 4 week
trading for the account of Curb members of 176,675 shares was
13.05% of total trading of 673,000 shares.

Total

U 1,951

and

25

■

equivalent coal assuming
6.000,000 B.t.u. per barrel of oil and 13,100 B.t.u. per pound of coal. Note that most
of the supply of petroleum products is not directly competitive with coal. (Minerals
Yearbook, Review of 1940, page 775). tRevised. JSubject to current adjustment. §Labor
Day, Sept. 6, weighted as 0.7 of a normal working day. 1 <
<

11 amounted to 235,895 shares, or

Sept.

11,704

§2,031

output

•Total

with member trading during the week ended Sept. 4 of

volume of

11,575

2,017

average

856,020 shares, or 15.71% of total trading of 2,72d,gio shares.
On
the New York Curb Exchange, member trading during the week
ended

1943

Securities

Commission made public on Sept.

Coal equivalent of

of members

(except odd-lot dealers) during the week ended Sept. 11 (in roundlot transactions) totaled 1,200,435 shares, which amount was 17.88%
of the total transactions on the Exchange of 3,526,460 shares.
This
compares

The

i :

January 1 to Date——
Sep.19, , Sep. 18
1942 &
1937
421,037
413,214
313,371
1,899
1,883
1,428

1942

NYSE Odd-Lot Trading

f

-

petroleum—

weekly

the

A

$Sep.18,

Sep.19,

/

1943

19431

mine fuel-

incl.

Daily
♦Crude

.

for

Exchange

Stock

tho

on

Total,

tSep.11,

Sep. 18,

and lignite—

other sales in these

sales are shown separately from

Short

;

.

PETROLEUM

CRUDE

PRODUCTION .OF

Week EndedBituminous coal

stock transactions for the account of all
members of these exchanges in the week ended Sept. 11, continuing
a series of current figures being published weekly by the Commis¬
sion,,

ON

COAL

PRODUCTION OF

(In Net Tons—000 Omitted.)

of round-lot

volume

the

Thursday, September 30, 1943

154'

liquidate a long position which is less than
a
round
lot
are
reported
with
"other
tales."

■

■■■

lig¬
■

nite)

j. Total sales

Utah

the New York Curb Exchange and Stock
Transactions for Account of Members* (Shares)
WEEK

'-v.:.'":";-v.-

•;

ENDED SEPT.

Short sales

;

——————

-

998

1,035

169

171

l

1

B.

the

for

Transactions

Round-Lot

sales

Short

JOther
Total

Total purchases
Short

•

.

•,

Total

sales

u;..

v-.

sales

the

' ;

Odd-Lot

C.

■)

s

,

••

<

,

;

5.02
<

•The
firms

121,065

term

15.04

'.r■'

other sales

■■

50
35,943

—

35,993
22,279
Includes all regular

and associate Exchange members, their

partners, Including special partners.

sales which are
included with "other sales."

rules

are

ESales marked "short exempt"

are

Mineral,

of

§Data for Pennsylvania anthracite from pub¬
flAverage weekly rate for entire month.

Mines.

Carolina, and South Dakota

1,000

& M.; B. C. & O.;
IRest of State, including
tlncludes Arizona,

Clay counties.

and Tucker counties,

included with

"Other Western

tons.

lace

conference after the

exempted from restriction by the Commission
,

•

-

'

.

-

Included with "other sales."

Weekly Goal And Goke Production Statistics
Fuels Administration for War,

U. S. Department of

report, states that the total production of
coal in the week ended Sept. 18, 1943 is estimated at 12,100,000

the Interior, in its latest

based on the 1935-1939 average as 100.
report went on to say:

The textiles group registered a fractional advance due
slight increase in cotton.
Industrial commodities remained at
the same level as the preceding week.
/
-a

During the week 8 price series included in the index advanced
and

3

6

declined; in the preceding week there were 10 advances and

declines; and in the second preceding week there 6 advances and

3 declines.

v
WHOLESALE COMMODITY

PRICE

con¬

the

United

added

He

States.

should

peace table."
In United Press

,

Week

Group

•

v

Mr.
the

at

-v

Chicago advices

further reported:

was

"throw

out

thought," the Vice

a

President added:
"With peace
is

one

important

approaching, there
is exceedingly
peace
proceedings

who

man

to

above„any other man in the world.
He is a man who by his face-toface
contacts
and
who - by
his
knowledge of language and geog¬
raphy would have an extraordi¬
nary influence on the peace tables

"Obviously
take

place

people

were

leaders

of

plan could not
the American
for it and unless the
my

unless

England,

were

Russia

and

for it."

When asked what he

"

Week

Sep. 25,- Sep. 18,

■Foods

25.3

having
Month

Year
Ago

Ago

Prime

Churchill

thought of

Minister

Winstoq

chairman of the peace

as

conference, Mr. Wallace said:

Aug. 28, Sep. 26,

"Well, I'm

1942

an

American."

Grains

Livestock
Fuels

——

Miscellaneous
Textiles

—

Building

0.2%. The
1943 to date shows an increase of less than 0.1% when
compared with the same period of 1942.
1942, however, there was a decrease of'2,000 tons, or

commodities———

141.2

161.3

153.9

157.4

155.6

142.1

193.5

194.0

178.0

152.3-

147.9

119.0

153.2

151.6

142.0

122.8

122.8

119.3

the idea because the United States

331.4

131.4

131.0

126.7

is

,

150.6

materials.,

150.3

147.2

•104.4

104.4

104.4,

152.5

:

150.5

104.4

—

Metals

145.7

162.4

122.8

-

146.5

162.4

154.3

Cotton,

132.2

150.6

——-

138.6

146.5

—

Oil-—

139.4

194.2

Cottonseed

1943

157.9

Fats and Oils

1943

139.7

—

Farm Products

23.0

'152.5

"I

127.7

126.6

120.7

117.7

117.7

nent

Fertilizers

119.8

119.8

119.8

104.1

104.1

104.1

135.9

135.8

135.3

130.0

•Indexes

26,

1942,

said

he

advanced

looked upon "with less suspi¬
cion by the United Nations" and

—

less

territorial

claims

than

machinery

other countries.

Referring

on

101.3.

groups

combined—

1926;1928 base

were

Sept. 25,

1943,

105.9; Sept. 18, 105.8; and Sept.

to

Italy's

surrender,

Mr. Wallace said that it "indicates
to

All

100.0

Wallace

Mr.

115.3

104.1

-

estimated production

byproduct coke in the United States for the week ended Sept. 18,

peace," he said. "This would
just the first step."

117.9

Farm

not

suggesting that this
table would insure perma¬

am

peace

be

has

152.5

127.7
117.7

Chemicals and drugsmaterials

Fertilizer

calendar year

increase of 1,800 tons when compared with the out¬

be

not

1943

Pennsylvania anthracite for the week ended Sept. 18, 1943 was 1,263,000 tons, an increase of 73,000 tons (6.1%) over the preceding week.
When compared with the production for the corresponding week in

The Bureau of Mines also reported that the

that

unthinkable

"is

it

INDEX

Latest Preceding

Total Index

S. Bureau of Mines estimated that the total output of




press

that Mr. Roose¬
preside at the peace
table and continue to be President
could

velt

China

Each Group
Bears to the

tons, as compared with 11,575,000 tons in the preceding week and
11,704,000 tons in the corresponding period last year. Total estimated
production of soft coal to date exceeded that for the same period in
1942 by 1.9%.

1943 showed an

war.
a

Mr. Wallace said he had not dis¬

foods group.

net

of

told

Wallace

Mr.

it

Fraciionatly

1935-1939—100*

The U.

named

be

ference in Chicago

Compiled by The National Fertilizer Association

soft

Roosevelt

President

A. Wal¬
10 that

Sept.

on

permanent chairman of the peace

of

ago at 130.0,

a year

WEEKLY

The Solid

President Henry

suggested

rising trend in the general level of wholesale commodity' cussed his proposal with anyone
prices continued last week, according to the wholesale price index and that "the President probably
compiled by The National Fertilizer Association, and made public will be tremendously surprised
on Sept.
27.
In the week ended Sept. 25 this index rose to 135.9 when he hears what I say."
from 135.8 in the preceding week.
A month ago the index stood at
Declaring
he would
like to

to

calculating these percentages the total of members' purchases and sales is
compared with twice the total round-lot volume on the Exchange for the reason that
the Exchange volume includes only sales.
short

C. & O.; Virginian; K.

N. & W.;

Grant,

12,528

An

tin

tRound-lot

714

wheat, oats, and rye were not sufficient to offset these price rises.
increase in eggs and fluid milk caused a further upturn in the

•:

"members"

8,480

11,814

Hog and choice cattle prices generally advanced during the week,
causing the livestock group to reach a new high for this year.
Price
quotations for lamb and good cattle declined slightly.
The farm
products group continued to advance as higher quotations were noted
for timothy hay, cotton, eggs, and fluid milk.
Slight declines in

Account of Special-

sales

and their

12,817

V

The

135.3 and

116,505

'

:

,

■';■":' 11,846

Advances

4,560

purchases

.

Total

13,264

and Oregon.

North

Georgia,

ttLess than

-

114,-830
—

..

Total
i

.

617

2.08

34,765

Customers' short sales

§ Customers'

7,863

1,281

National Fertilizer Association Price Index

"

-—

Transactions for the

Ists—

11,536

1,163

-

Roosevelt

■

Total sales

:

10,683

Bureau

The Association's
,

*«4

tt

that

.

—

jother sales

of

43,930

—.—200
—-—
-V: ;
34,565

—

v

,

15,300

'

Short

;

Vice

District and

records

States."

13,900

•,

..

,

Total purchases

v

.'./;■■9

—

i

1,400

—

sales

165

r, -

1,254

the B. & O. in Kanawha, Mason, and

••Alaska,

7.94

initiated off the floor—

Total—

4.

lished

17,325

<„

>

—

sales

fOther

:>

Proposed As
Peace Parley Chairman
By Vice-Pres. Wallace

,

purchases

Short
.

California, Idaho, Nevada

71,000

...

———

sales

Panhandle

the floor—
————

———

sales

Total

Total

,

—————

sales

fOther

Other transactions

3.

.

———

sales"

U

12,010

operations on the

on

the

2,960
68,040

—^—-——

Other transactions initiated on

2.

857

103

167

137

12,765

and

—_

493

888

830

1,190

53,575

——

„*

sales

1,474

11,575

-

•Includes

'

-

1,711

Roosevelt

lig¬

Total all coaL

r"

they are registered—,
Total purchases

V

2,392

of

Account

Transactions of specialists in stocks in which

1.

and

bituminous

Total

§Pennsylvania anthracite

.>

Members:

58

;

'

784,145

——

*245

29

'

?

'

nite

sales

Total

77
267

43

V

35
2,126

■

2,233

tOther Western States

•:

■

,

779,135

:

—

2,272

Wyoming

V;-

tPer Cent

>■:

25

..

fWest Virginia—Northern

Total
for week
5,010

——————

—-—,—

JOther sales

27

•West Virginia—Southern

1943

11,
■■

•

Total Round-Lot Sales:

103

108

428

'

'

409

Washington

8
96

387

.

6

yv/y

'

110
404

93 7

•■'v;

—

.Li.—..—

Virginia

Total Round-Lot Stock Sales on

A.

——i

3 v/y;*;,:
'

17.88

587,425

—

4

all

most

ago."

that

of

us

peace is closer than
thought some months

Volume

158

Number

4216

THE COMMERCIAL & FINANCIAL CHRONICLE

.*

'

,

Loading of

..

•totaled

pounced

on

of

Sept. 24.

1942

This

of 333

1943

1942

346

2,671

2,955

764

690

813

1,053

1,127

11,346

11,158

10,797

9,911

9,947

3,811

4,177

4,586

4,234

345

369

444

1,452

1,662

1,521

1,787

1,807

2,677

2,755

537

412

146

261

—

....

™__™_

410

—

:#

,v

.-.

.

122

201

447

823

657

450

1,782

1,503

35

28

41

114

97

Georgia™—
1,205
Georgia & Florida—
467
Gulf, Mobile & Ohio—4,085

1,366

3,299

2,622

4,226

,.

Illinois Central System
Louisville & Nashville

:

1,450*

Norfolk Southern

.

districts reported

4 weeks of

January

February

4 weeks of March
4 weeks of

April

3,055,640

.

1,396

1,326

suggestion of agricultural officials

9,715

8,143

of

8,323

8,655

23,4.94

26,355

23,940

24,693

465

571

1,031

1,042

plish

144

106

175

990

1,047

to-the

123,741

127,577

114,921

117,640

4,149,708
3,151,146

4 weeks of June

> 4 weeks

Week of

—

of August L™

September 4_.

Week of September
Week of September
Total
•

3,487,905

11.

2,900

2,904

3,061

3,138

3,520

21,650

24,178

10,918

10,970

4,160

4,275

4,333

4,131

4,356

V

18-

902,766

30,597,386

•

™__„

349

Ishpeming
Minneapolis & St. Louis™™—
Minn., St. Paul & S. S. M

1,128

538

10,864

10,363

10,834

484

570

716

86

93

29,263

26,911

5,851

5,829

501

620

1,008

;;

2,325

,/A-

i

1,375

3,348

57

2,232

2,149

2,277

2,370

8,242

8,611

7,873

2,708

3,047

11,957

—

2,575

2,400

-

13,645

12,630

5,341

5,180

275

262

208

486

655

2,862

2,854

2,722

3,157

3,253

148,715

—

.156,061

146,721

65,279

3,982

4,935

574

922

656

101

104

20,161

18,431

13,022

2,945

2,611

2,925

770

14,060

11,878

13,005

2,733

2,934

5,607

4,635

899

1,020

997

2,073

1,870

Western.—4,460

4,767

4,525-

6,568

6,125

-

Missouri-Illinois™

3,581,350
797,791

Nevada Northern—!

914,656

North Western PacificPeoria & Pekin Union-^

907,969

Southern Pacific (Pacific)

:

-

;

■

912

1,053

9

1.512

1,532

1,049

1,863

1,857

1,961

1,896

2,589

;—1,277

1,318

1,175

472

463

2,159

2,234

1,972

153

109

1,191

1,057

1,288

684

630

14
33,722

8

9

0

0

33,356

32,130

.14,352

i

304

421

1,831

16,350

18,162

17,718

621

536

9

17,701
587

16,488
6
"

PacifIc'LL'———'2,113

2,760 ♦;':•>*

~

5,317

3,139

136,607

133,639

101,511

94,959

739

179

214

AND

RECEIVED

FROM

Railroads
,r

1 "7 ^ * V V:'y"

Easteru

v

'•

•. -

'

,

V

.

District—

:•

Ann Arbor

4,952

3,412

3,008

2,934

2,763

2,892

2,336

3,411

2,756

226

26

26

'Detroit & Mackinac

v;

995

1,037

;

10,330

200

:

532

Detroit, Toledo & Ironton_^_L„_™™.i % 2,104
•2,104
.Detroit & Toledo Shore Llne™—.^—.
369

Lehigh & Hudson River

.-j

2,443

Monongahela

6,188
2,355

•.-•

9,170

Maine Central——i——
:

12.879

Montour

1,957

—
—

—

'

New York CentrarLines__i.Vi._-lii.l-C'.

55,355

N. Y., N. H. & Hartford™..—_™

165

:

3,267

A 6,374

8.772

13,117

i

Pittsburgh Si Lake Erie.—.———
Pere Marquette
ii-.___.___—.™--

7,762

7.828

:..,V

5,549

5,564

".

1,034

'

j

Rutland—

:

417

-

•

—

L'1

8,601

6,435

6,419

12,206

12,411

8,407

5,178

4,361

5,390

4,414

4,173

6,699

7,160

118

97

154

45

30

21

13

17

38

169,978

„

A.

6,265

165,695

'184,110

,74,325

,

74,407

3altimore &

45,778

Ohic—i——i.™-™r-,

3essemer & Lake Erie-.

;———.

..

728

We

give herewith latest figures received by

:•

.-4,554

The members of this Association represent 83%

dustry, and its

929

13,001
.

230,596

program

234,968

includes

member of the orders and

5,022

.

the

figures

are

6,949

6,348

2,173

production, and also
on

4

;664

Cumberland & Pennsylvania——.

«

Llgonier Valley™
Long Island?enn-Reading Seashore Lines™..—

225

-140

—

1,894

1,966

6

;L

STATISTICAL

8,020

22,452

20,618

642

58

56

246

304

16

118

29

52

*

1.099

July

'

—i™„™—-

3

July

———




','

3,465

July

2,367

July

24———™—

July

31——™

67,126'

67,652

15,154

17,776

29,497

29,254

21.269

20,494

8,345

7,450

4,282

4,442

13,111

12,666

Aug.
Aug.

7

181,002

174,071

' *'•'

28,131

29,127

22,673

22,765

21,456

7,011

7,683

4,749

4,678

4,690

2,409

56,847

55,574

55,273

23,252

24,511

14,476

•

"

™

'

21
28™™—.

Tons

ills.
—

-

-

580,683

92

93

100,115

573,342

69

93

140,803

587,181

91

93

148,852

572,786

153,646

150,337

571,705

97

loss

war

guaranteed

to

those

assuming

"5.

risk.

Timely provision for skilled

labor,

necessary

plies

and

made.

machinery,

equipment

sup¬

must

be

.

■

,.

"6.

Unification

food

of

the

whole

production,

processing and
distribution program
through the
establishment, by act of Congress,
of

Government agency."

one

The

two-day meeting, attended

by farm organization officials and
farmers, and by representatives of
and

processors

distributors,

ap-"'

proved, according to the Associ¬
ated Press, a preamble to its
pro¬
"A

serious

fronts

food

situation

because

us

of

con-

,

bungling,

complicated and unworkable reg¬
ulations by
bureaucrats, and mis¬
understandings between producers
and

non-producing

consumers.

"Consumers must recognize that
any

attempts to hold down

v

con¬

sumer

prices
which
discourage
production are bound to encourage
black markets and must ultimate¬

ly lead to dangerous shortages and
perhaps actual famine.

^

"To get

adequate production of
food, producer and processor must

declared

essential

an

600,338

94

93

154,747

586,901

98

.

■

.

According to the National
ber

Manufacturers

porting
Trade

to

the

National

Barometer

not

568,361

95

93

570,859

96

93

150,943

598,255

97

93

589,323

83

93

157,082

583,714

98

2.1% be¬
low production for the week ended
new

orders

In the

same

week

these

mills

were

of

unfilled

orders.

less

than

production.

Un¬

mills amounted to 102% of stocks.
For reporting softwood
mills, un¬
filled orders

days'

equivalent to 40
at the current

are

production

rate, and gross stocks are equiva¬
lent to 36 days' production.
For the year to date, shipments
of

reporting

93

of the prior week, plus orders received, less production, do
unfilled orders at the close.
Compensation for delinquent

necessarily equal the
reports, orders made for or filled from stock,

re¬

Lumber

were

identical

mills

ex¬

by 10.0%.

150,012
147,494
"

Lum¬

Association,

lumber shipments of 458 mills

ceeded production

148,381

177,766

in¬

Lumber Movement—Week
Ended Sept. 18, 1943

93

126,427

<

war

v

dustry."

93

146,515

153,708

Notes—Unfilled orders

of

93

177,541

—

Sept. 18™

ments

Current Cumulative

144,232

*

133,446
™

4

Sept. 11

Remaining

143,629

— ™

——

—

Aug.

2,352

13,832

™

14__

Sept.

Tons

136,881

17—

2,939

196,571.

be

filled order files in the
reporting
Percent of Activity

151,993

4,199

191,014

against
such

6.4%

111,912

965

29,425

..

179,835

™

10—

2,223

4,554

orfolk & Western-—

irginian

Orders

Tons'

89,098

15,974

hesapeake & Ohio—-----

Production

Received

1,947

2;,060

District—

V.

10

',127

Period

1943—Week Ended

Ang.
Pocahontas

Vv. '"v

Unfilled

85,238

195,589

These

REPORTS—ORDERS, PRODUCTION, MILL ACTIVITY
Orders

9

7,470

-•">• 651
■

must

Sept. 18, 1943.

1,959

•

operated.

v.V-

^

86,160

—™

Pennsylvania System——-—i,-™Heading Co._
—
-™^_l.
L'nion (Pittsburgh) ™:
Western Maryland—*

figure which indi¬

advanced to equal 100%, so that they represent the total

3

1,826
7-, 335

Central R. R. of New Jersey™"™.—
Cornwall——

a

the time

2,590

306

,291
11912

of the total in¬

statement each week from each

a

activity of the mill based

26,543

«

prices

*

1,336

29,820

279

production
by the Government,

all such commodities to insure

on

''

1,227

43,141

6,980

from the National

us

28

.321

43,589

'*

3uffalo Creek & Gauley„___—
Cambria & Indiana——

67,681

Weekly Statistics Of Paperboard Industry

3,134

13,220

.

and

consumers

When increased

requested

be

industry.
■'.> 790

68,441-

paperboard industry.

1,099; ;

protect

produc¬

to halt in¬

put on an equality with the
manufacturer of munitions of
war,
and to that end
agriculture must

'

761

64,078

year's figures revised.

6,396

.

means

'

be

Allegheny District—
Ikron, Canton & Youngstown_—.—

'

9,234

,

maximum

...

L—

Note—Previous

2,583

2,992

579

5,765

■-'Total———

cates
Total.

1

226

Paperboard Association, Chicago, 111., in relation to activity in the

250

'

"4.

33

>

Weatherford M. W. & N. W

2,446

#

19

391

5,679

.

271

8,864

8,003

• v

676

V..

5.943

5,861

,119

8,556.

1,166
-

21,857

3,521

16,621

1,522 :

8,614

t 6,529
/

19,197

10,663

19,573

16,034

537/

■

18,929

35

2,464

V 7,274-

963

6,290

—

Wheeling & Lake Erie

r: 364

•■•:

372

,-c

Wabash™-—

379

i;205

.

—

.

-

872

;977

—-

377

18,997

V

76

60,566

i <

18,726

-

1,259

9,404
v.,

..

5,044

409

134

656

5,921

3,059

13,936*
2,697

457

56,686

7,623

Pittsburg & Shawmut—.

.

2,209

I'52,672

1,229

Pittsburg, Shawmut & North—™—.
.Pittsburgh & West Virginia

•

2,407

York, Ontario & Western„r__—.

4,972

2,103

14,399
»f 2,642 .1
•

<•51,325

•'?

5,794

S 10,064

3,323

1,702

9,019

.;:•••

6,462

..

,

2,687

1,465
-;•;.•

New York, Chicago & St. Louis.™..™.
N. Y., Susquehanna & Western.

.

8,515

of prices
Government

of

militate against the further
growth ^4

393

161

Wichita Falls & Southern

out

no

the best

flation,

235

411

17,561

7,319

162

2.464

-

v

9,721

New

19,189

5,896

V

2,248
9,214 ?::•

f

1,232

323

199

3,126

Texas & Pacific

2,900

16,128
v.:

1,831

890

193

9,030

—

Texas & New Orleans™

211

1,228

2,625 ; :

365 .;

: .4,769

220

—

Lehigh & New England™..™...
Lehigh Valley—
—C-—

'

/

1,286
'

304

•

:

365

818

St. Louis-San Francisco

10,323
:

133

243

185

•

St. Louis Southwestern

2,790

>

2,021

18,940

Quanah Acme & Pacific

11,684

;:

2,453

1,193
2,974

2,573

835

—

Missouri Pacific—

54

2,601

11,354

'

*"■'

4,003

_™™__—

;

:■ 295

V

1,781 •'

13,622
Grand Trunk Western™

...

11,420

.••

<

7,386

7,695

•

•

1,491

6.364

7,496

...

■

1,024
2,998

2,727

6,516

:

Missouri-Kansas-Texas Lines..

2,050

71

238

2,777

4,038

313
—

Missouri & Arkansas

13,799

2,096

(

329

5,278

3,243

Midland Valley.

152

•

6,207
™__L

1,344
,

14,690 L.

.

633

5,044

Louisiana & Arkansas—
Litchfield & Madison

195

1,506

_™_

^

Kansas, Oklahoma & Gulf
Kansas City Southern

1942

1,471

9,119
1,754

31

Received from

1943

■

632

.'/A 6,156

Central Indiana

Delaware, Lackawanna & Western™.-

;

892

,:'•

817

1,332

Chicago, Indianapolis & Louisville-—.

Delaware & Hudson

330

-.*

7,059

™

Central Vermont

1941

—!

International-Great Northern

Connections

1942

1,017

,

Boston & Maine™..

.?

Freight Loaded

1943

Bangor & Aroostook™

,

Total Revenue

.

Gulf Coast Lines.

Total Loads

.

gram which set forth:

District—

Burlington-Rock Island

18

■.7.■'
•AAAf'-A'

■'

.

CONNECTIONS

(NUMBER OF CARS)—WEEK ENDED SEPT.

to

of black markets.

212

5,447

—

3,119

137,700

356

Total——

tends

rollback

no

Obtain
as

1,706

Union Pacific System
Utah™

Southwestern
LOADED

tion

10,461

295

—

—

———

which

subsidies, either diby subterfuge, be paid.

or

"3.

1,673

1,771

———

1,008

•

FREIGHT

rect

22

814,897

That

financed

funds and

1,031

14,004

4,295,457

subsidies

12,442

Fort Worth & Denver CityIllinois Terminal

During this period 61 roads showed increases when compared with
the corresponding week last year.
1

3,567

13,526

2,785

4,160,060

Western

3,454

13,206

13,302

3,510,057

30,347,955

22,669

21,569

Colorado & Southern

a

24,530

3,358

Bingham & Garfield
Chicago, Burlington & Quincy
Chicago & Illinois Midland™.
Chicago, Rock Island & Pacific
Chicago & Eastern Illinois

summary of the freight carloadings for
the separate railroads and systems for the week ended
Sept. 18, 1943.

REVENUE

"2.
be

floor
24,554

—

Denver & Salt Lake.

of

bution under bureaucratic control.

66,885

District—

Atch., Top. & Santa Fe System

2,793,630

advices

place food production and distri-

is
Western

according

Press

Chicago.

tem

66

the
Central

objectives,

Associated

72*2

Northern Pacific

Alton

these

from

357

1,515

10,164

544

3,066,011

■

22,701

14,258

26,998

Lake Superior &

Denver & Rio Grande

•;,*• 31,342,397

33,265

14,871

1,202

Toledo, Peoria & Western

following table is

23,274

8,576

903,099

'

21,775

29,829 "*

Dodge, Des Moines & South...

Total

16 States, adopted a resolution
calling for legislation to accom¬

"1.
Fair prices at the market
place instead of the present sys¬
23,388

88.7,960

834,671

—-

The

4,185,135

3,554,446
901,075

5 weeks of May

5 weeks of July

4,170,548
3,385,655

4,307,406

___i:

3,174,781
3,350,996

330

District—

Great Northern

1941

3,122,942

578

485

Green Bay & Western

3,454,409
2,866,565

3,073,426
3,136,253

—„

2,265

22,573

■■

.V

3,858,479

4,747

1,641

539

Elgin, Joliet & Eastern.

and South¬
with 1941 ex¬

3,530,849

,

5,062

1,580

10,255

Duluth, Missabe & Iron Range
Duluth, South Shore & Atlantic

increases compared with the correspond¬

1942
5 weeks of
•

3,852

1,501

Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha

1942, except the Southern, Northwestern,

western.
All districts reported increases
compared
cept the Eastern, Allegheny and Southern.
1

484

3,670

conferees, brought together
by Frank Gannett, Rochester (N.
Y.) publisher, in Chicago at the

The

491

Spokane, Portland & Seattle

All

' *

•

,

645

480

Spokane International

ing week in

••

11,933

657

10,512

—

above the preceding week but
responding week in 1942.

7." ; ;•

:

11,880

211
244

23,081

above the corresponding week in 1942.
" Forest products loading totaled 45,631
cars, an increase of 3,843
•cars above the
preceding week but a decrease of 4,386 cars below
the corresponding week in 1942.
t
Ore loading amounted to 86,661
cars, an increase of 3,323 cars

'

distribution
Government

26,317

Chicago & North Western—
Chicago Great Western

:

agency.

and
one

119,612

Northwestern

cars

in

'

462

Total

cor¬

processing

190

Winston-Salem Southbound

_

tion,

program''

237

384

-

Southern System
Tennessee Central

,

maximum agricultural
output, and
to unify "the whole food
produc¬

9,864

.

—

Ft.

Conference

1,031

Piedmont Northern

cars

+

628

Food

3,381

....

—

Richmond, Fred. & Potomac™
Seaboard Air Line_

increase of 3,759 cars above the preceding
week, and an increase of

\ '

18,486

National

Chicago urged Congress on
Sept. 17 to take steps to obtain

240

•

Coke loading amounted to
14,685 cars, an increase of 212
the preceding week, and an increase of 376 cars
above

4,573

16,872

26,155

;

.

The
at

295

.

above

564

4,234

30,009

—

;

—

loading amounted to 179,158 cars, an increase of 9,058 cars
above the preceding week, and an increase of
9,894 cars above the
corresponding week in 1942.
v
; \ :
Grain and grain products loading totaled
54,124 cars, an increase
of 6,356 cars above the preceding week, and an increase of
3,543 cars
above the corresponding week in 1942. In the Western Districts
alone,
grain and grain products loading for the week of Sept. 18, totaled
•38,284 cars, an increase of 3,802 cars above the preceding week and an
•increase of 2,724 cars above the corresponding week in 1942.
:
Live stock loading amounted to 20,950
cars, an increase of 4,449
cars above the
preceding week, and an increase of 1,740 cars above
•the corresponding week in 1942.
In the Western Districts alone,
loading of live stock for the week of Sept. 18, totaled 16,210 cars, an

427

4,561
29,675

25,220

____

Macon, Dublin & Sa vannah

Coal

356

28,721

——.

Mississippi Central
Nashville, Chattanooga & St, L.„

increase of 13,176 cars above the corresponding week in 1942.

decrease of 2,751 cars below the

4,781

LOO

*

.

J

.

1,286

,™__™

Florida East Coast

Gainesville Midland
—

;••;••";-..7'

1942

346

1,001

Durham & Southern

freight loading totaled 399,902 cars, an increase
32,441 cars above the preceding week, but a decrease of 21,925
cars below the
corresponding week in 1942.
Loading of merchandise less than carload lot freight totaled 101,655 cars, an increase of 8,413 cars above the
preceding week, and an

•corresponding week in 1942.

1943

412

703

Columbus & Greenville

Miscellaneous

a

1941

321

Clinchfield

•

of

1,227

Connections

658

Central of Georgia—
Charleston & Western Carolina

or

■

•

•Received from

276

Atlantic Coast Line

was

cars,

District—

Atlanta, Birmingham & Coast—

a decrease below the corresponding
0.4% and a decrease below the same
week in 1941 of 5,203 cars or 0.6%.
~
./' Loading of revenue freight for the week of
Sept. 18, increased
68,095 cars, or 8.2% above the preceding week which included Labor
Day holiday.
'
'

week

'•

Atl. & W. P.—W. R. R. of Ala

freight for the week ended Sept. 13, 1943,
the Association of American Railroads anr

cars,

•-

Freight Loaded

Alabama, Tennessee & Northern—

revenue

902,766

Total Revenue

.

^

Southern

BHVI.v»USI«M

i Wf

>|«u

Total Loads

•rRailroads

vLl

;

1339

Compared

by 8.4%; orders

the average

cor¬

responding week of 1935-39

pro¬

duction'
15.7%

20.1%

and other Items made necessary adjust¬

9.-3%

of

to

reporting

greater;
greater,

greater.

mills

shipments
and

orders

was jv
were
were

Items About

of

$100,270,000 to $121,730,000. Cap¬
ital remains unchanged at $100,-

Grove, Sheboygan, Wis.,

$21,460,000 in the surplus ac¬
count of the bank, raising it from

270,000. This increase in the sur¬
plus reflects an enlarged capital
position made possible as a result
of recoveries, improved earnings,

profits realized on the sale

and

of

table

comparative!

A

admitted

of

the

the end of
last year and as of Sept. 30 after
giving effect to the Sept. 22 action,
(with undivided profits estimated
for Sept. 30), is shown below:

bank's capital funds at

Sept. 30, 1943 Dec. 31,
Capital

Surplus
Undivided profits
Total

District.'..

1942

America National Trust & Savings

anticipated that the reserve
contingencies as of Sept. 30
about $12,300,000,

Dec.

The Na¬
tional City Bank of New York
celebrated his 50th anniversary of
Frederick B. Beach of

employment on
*3 Beach began his
senger

Bank

McClelland

Mr.

through the banking departments
and at 30 was made a Collection
Clerk. In 1930 he became a Per

authorized

officer, and joined National City
when it absorbed Bank of Amer¬

been

well

is

known

California farmers, having
identified with the

among

at the age of 16 with the
of
America.
He rotated

closely

interests since 1931.
he left the State De¬

agricultural
In that year

partment of Public Works to join
the
California
Lands
organiza¬
(now Capital Co.). From 1933
to his current appointment he was
Vice-President in charge of the
tion

firm's farm operations.
He is

Looking back through
the years he recalls the day vyhen
the Bank buildings were in con¬
verted homes; when there were
no
telephones, one adding ma¬
chine, one typewriter, and a single
^"stenographer—male. Those were
employee.

'-flthe days,

says

Mr. Beach, when

that

possible to walk across it,
and the single-decker ferries to

it was

■

The Association

at

Woodbridge,

an

Bank of America in San Francisco.

also

registered

principle that the value of

Sees Small Business

after

of

backbone

legislative relief for char¬
banking from the destruc¬
tive effects of such credit."
The
tered

the

war,

•

Participation

nation

this

DeWitt

Emery,

the

secure

Small business will continue to

in

of

;

Banks

banking is

an

distress.

its

in which this nation may
agree to assist in the stabilization
or reestablishment of foreign cur¬
rencies
should incorporate
the

plan

,

efforts

to

legislative relief for char¬
tered banking from the destruc¬
tive effects of such credit;
2. To seek enactment of Senate
Bill

914,

introduced

Wherry;

•:

.

by

Senator
;y

;\V''L ;;v

3. To seek forthwith and vigor¬

ously support a thorough Congres¬
sional investigation of the Produc¬
Credit System in order that

tion
the

truth

methods

cost

of

of

operations

the

National

Small

tial

part

of

the

Bank

Reserve

of

The Greenville bank,

of

1,000 employees to indicate the

founded 41 years ago,

dividing line between

its assets in-the last five years

"small"

now

has doubled
and
has assets totaling $3,750,000.

George
the

R.

Union

Herzog,
of

Bank

Cashier of
Commerce,

Cleveland, has been advanced to
Vice-President and Cashier, the

time
Assistant

bank announces. At the same

Laurence

A.

Cordrey,

Cashier, was promoted to Assis¬
Vice-President. Mr. Herzog

tant

has been Cashier of

the bank ^ince

its establishment in

graduate

1938.

He is a

of the Wharton School
University of

of Commerce of the

Pennsylvania, and went to Cleve¬
from Philadelphia in 1927.

land

businesses,

"big" and

Mr.

Emery

to accept whatever re¬
sponsibility the cause of victory
may require.

pledge

Financing

pointed out that there were only
810 "big"

business firms in 1939.

"There

are

Mr. Emery,
no

some

people," said

"who believe there is

place for small business in the

post-war picture. If small business
was

important enough and rugged

enough to

occupy

did in 1939, after

of mighty

the position it

nine

or

10 years

tough sledding, you can

it that small business

depend

on

will

be

going strong in the post¬

war

period.

Our Association has

the

War

protect the American system

the maintenance of

centive,

production,

morale and in¬

preservation of the
the estab¬
by industry of adequate

the

economic structure, and
lishment

volume
under

of

production loans

war

guarantees, and a substan¬

tially equivalent volume on its
own resposibility. We now declare
our belief that Government loans

and lastly, from the banks
of the nation, the lending powers
of which should be employed only
to the extent necessary after ex¬
tions;

of loans are not

only unnecessary for the financing
of post-war commercial enterprise,
but are actually contrary to sound
financial policy and the best in¬
terests of the American economy.
Banking

Manpower

-

Banking has thus far met the
demands made upon its personnel

by the armed services. It is our
belief,* however, that any further
depletion of banking manpower
may

cause

a

breakdown in our

endeavors to render the services
regarded as an authority on long been urging small manufac¬
hausting the other two sources. It which are so important to this na¬
methods and last year turers
to work
out production, is in the best tradition of democ¬ tion. We trust that the appropri¬
served as Secretary-Treasurer of
ate officials of Government will
the
Cleveland
Clearing House material and parts schedules now racy that lending by individuals
should be voluntary.
give thoughtful consideration to
Association in addition to his reg- and put their requirements on
We do especially commend and this vital problem.
ular duties. Mr. Cordrey has been order with their supply sources
endorse the efforts of the Treas¬
a banker in Cleveland since 1909.
Dual System of Banking
to assure shipment with the least
ury to secure as wide a distribu¬
He became Credit Manager of the
The dual system of chartered
possible loss of time when the tion of war savings bonds among
Union Bank of Commerce when it
banks, state and national, is a
our people as may be possible.
opened five years ago and was shooting stops."

He is

banking




goal depends primarily upon the
efforts of people everywhere to
help themselves.

to

sent

Roosevelt

President

Sept. .14 a revised
letter of transmittal which accom¬
Congress

on

panied his Aug. 25 lend-lease re¬
port, removing the two sentences
implied that lend-lease aid
would not be repaid as far as
which

possible although not necessarily
in dollars.
The excised part of
the

original text read as follows:

"The

it

made

in passing and
lend-lease
Act
that the United

Congress

extending

the
plain

States wants no new war debts to

jeopardize the coming peace. Vic¬
tory and a secure peace are the
only coin in which we can be re¬

paid."

' :;L--

'

recent

President's

The

press

of this
planned action was noted in our
issue of Sept. 9, page 1004.
The
original text of the letter ap¬
peared in these columns of Sept. 2,
page 927.
'? -LL-'
explanation

conference

Elk Hills Oil Contract
Ended By

President

:

An

agreement terminating the
Navy Department's contract with
the Standard Oil Co. of California
development of the
(Calif.) oil reserve was
approved on Sept. 8 by President

for

mutual

Elk

Hills

Roosevelt.

,

termination

The

agreement,

it

is

post-war reconversion reserves.
Borrowing should be first from
current income; then from the idle
funds of individuals and corpora¬

fully
the

achievement ,of

that

of

chartered banking against its de¬

struction

The cost of the war should be "or the
guarantee
met by taxation to the maximum
extent consistent with

better world, yet we

of the nation; to
appropriate Congres¬
sional action as may be required

..

Federal

a

such

,,

Cleveland.

build

realize

taxpayers

seek

He is also counsel to the Joint 190,000 manufacturing concents can carry whatever responsibili¬ farm organizations which are en¬
Legislative Commissioner of the
to
free
agricultural
listed by the census employed less ties the war may yet impose. This deavoring
State of New York on Reappor¬
they have done in the face of a credit from political control.
than
a
thousand
wage
earners
tionment.
' V '.\L
continuing drain on their person¬
each,
Of the total of almost nel, and nothwithstanding rising
Government Guaranteed Loans
Admission of the Farmers &
War
8,000,000 wage earners employed costs and immense increases in the
production financing in¬
Merchants Trust Co. of Greenville,
demand for normal services.
evitably required certain credit
by all manufacturing concerns in
Pa., to the Federal Reserve Sys¬
We are fully aware that the war devices which cannot be justified
tem, Fourth (Cleveland) District, 1939, 77.6% were employed by is not
yet won.
Heavier duties after the termination of the War
was
announced on Sept. 24 by firms having less than a thousand
and greater sacrifices lie ahead. Procurement Program.
Matthew J. Fleming, President of
employees each. Using the figure Banking is ready. We renew our
Banking has made an impressive
the

ciples.While recognizing that en¬
lightened self-interest calls for
our
participation > in efforts to

members

.

#■.
*

principle that the value of curren¬
be fixed in terms of gold.
Financial and ; commercial
rela¬
tions with other countries should
accord with sound business prin-

cies

be ascertained and given to
of Congress and to

may

the

the soundness

to

as

and

na¬

But any

development.

and

tion

secure

to

essen¬

:■

directed:

continue

To

.'between

commerce

international
capital investment for rehabilita¬

the Committee on Federal Legis¬
1;

there

addition

tions, and encourage

In order to carry out the objec¬

lation is hereby

of

flow

as

21, 1943.;-" 1

In

operation in measures to restore
stability of currencies, broaden the

through : Government
American eco¬
Jersey were held up for hours by Business Men's Association, said nomic order. It is cognizant of its subsidized lending operations. In
order that the principles and is¬
in a nation-wide radio broadcast war-time duties and
the< heavy ice floes.
responsibili¬
on Sept. 10.
He appeared as one ties. By the extension of substan¬ sues involved in the Production
Credit System may not be con¬
William F. Bleakley, of the firm of several business leaders dis¬ tial credit for war
production, by
fused and complicated with those
of "Bleakley, Piatt & Walker, has cussing the post-war responsibil¬
leadership in the sale and distri¬
of other agencies, the Committee
been elected a director of Lawyers ity of business in providing jobs bution of war bonds to the
public,
on Federal Legislation is directed
Trust Company of New York. A on
the
National
Broadcasting
by the liberal purchase of Gov¬
former Judge of the New York
Company's program, "For This ernment securities for its own to seek an investigation of the
Supreme Court, Judge Bleakley We Fight."
Mr. Emery cited fig¬ portfolios, by active participation Production Credit System separate
v: L
is Moreland
Commissioner, ap¬ ures indicating the importance of in the "Food-for-Freedom" pro¬ from all other agencies;
4. To support the purposes of
pointed by Gov Lehman and re¬ small business in the pre-war in¬ gram, by performing the service
appointed by Gov. Dewey, to in¬ dustrial life of our country. The of ration banking, by acting as Senate Concurrent Resolution 8,
vestigate the administration of the 1939 Census of Manufacturers, he depositaries
of withheld taxes, introduced by Senator Butler; and
Workmen's
Compensation Law. said, shows that 99.5% of almost American banks have proved they
5. To support the efforts of those
of

President

gen¬

undoubtedly be need of co¬

will

tives contained in that statement,

the
>

the War Effort

American

Jan.

on

efforts to

continue its

Such

require

may

aid in stricken areas to re¬

expressed in the
statement of the Association made

credit"; among other
things the Association's Commit¬
tee on Federal Legislation was di¬
"to

dealing

in

problems.

erous

Government subsid¬

to

credit

ized

subsidized

resolutions follow in full: '

the

ment and

Government

"to

participation

lieve

the socialization of credit by Gov¬

and

post-war

participation

opposition to the
socialization of credit by Govern¬

opposition of the Association "to
ernment"

other

with

The American Bankers Associa¬

of loans
are not only unnecessary for the
financing of post-war commercial
enterprise," but are "contrary to
sound financial policy."
reasserted

and

countries

with

tion reasserts its

guarantee

resolutions

the

progress

active

our

require

)

,

supports

own

our

well-being, and that of the world,

Subsidized and Socialized Credits

Government

"that

the

or

'

ample.

)■

belief

loans

in¬

Association

that

view

dividuals to make financial sacri¬

The bankers also declared it as
their

activities. In calling upon

fices in support of the war effort,
Government should set the ex-

cur¬

gold."

This

minimum the expense of its non-

war

in terms,

be fixed

should

rencies
of

rected

be

domination of the Federal Govern¬

that Government reduce to

urge
a

its support of

The

native Californian, born

a

agricultural
ica in 1931. He now holds the rec¬ community
in San Joaquin
ord for the longest employment County. He will maintain his of¬
service of any National City Bank fice at the headquarters of the

.Lethe East River froze over so

this

"the view that our
own
progress
and: that of the
world require our active partici¬
pation with other countries in
with
the
various
agricultural dealing with post-war problems."
problems of the State, succeeds However, it maintains that any
Jesse W. Tapp, who was recently
currency
stabilization
plan
in
elected President of Axton-Fisher which this nation
may agree to
Tobacco Co., Inc., Louisville, Ky. assist:% "should
incorporate
the

service as a mes¬

Procuration Signer and

would

safeguard to basic
rights and to independent enter¬
prise."
L vy;/'V/
; /

Francisco, has
been announced by L. M.;Giannini, President of the institution.
Mr.-McClelland, whose chief as¬
signment will be to keep in touch

Mr.

20.

Sept.

Government

Federal

destroy

San

Association,

will amount to

compared with $11,810,000 on
31, 1942.

/

the

bank¬

ing system of chartered banks, State and National, declared it will
ment would destroy this safeguard
support every effort for its preservation.
In its resolution the Asso¬ to basic
rights and to independent
ciation in pointing out that the dual system "has been an important
enterprise. The American Bankers
factor in preserving the principle of States rights," and has "played
Association reaffirms its faith in
a
vital part in maintaining eco-,ft
—
the dual banking system and will
Non-essential Expenditures L
nomic freedom and political econ¬
support every effort for its pres¬
While we recognize that the na¬
omy," declares that "any success¬
ervation.
ful attempt to unify the banking tion must resort to deficit financ¬
system under the domination of ing as long as the war lasts, we
Post-War Economy
';'L a
the

It is
for

Bank, Rock-

successful attempt to unify
banking system under the

Any

reaffirming at its annual

The American Bankers Association, in

meeting in New York earlier this month, its faith in the dual

Appointment of Harry McClel¬
land as Vice-President of Bank of

$265,200,000 $245,589,000

-

^

springs, Tex., has been admitted
to membership in the Federal Re¬
serve
System Eleventh (Dallas)

45,049,000

43,200,000

the

(Chicago) District.

$100,270,000 $100,270,000
121,730,000 100,270,000

—-

in

System Seventh

The Peoples State

Insist Currencies Be Based On

has been

membership

to

Reserve

Federal

Participation In Post-War Plans But
Gold ;:.;L ■'

Endorse

Howards

of

Bank

State

The

important factor in preserving the
principle of States rights and has
played a vital part " in maintain¬
ing economic freedom and polit¬
ical democracy for the individual,
the community, and the nation.

Banking System—Oppose Socialized Credit

promoted to Assistant Cashier; in
May; 1940. He is also Vice-Presi¬
dent of the Cleveland Chapter of
the Robert Morris Associates.

of the
Chase National Bank of New York
authorized on Sept. 22 an increase

product of our form of constitu¬
tional government. It has been an

ABA Rssoltitfoiss Reaffirm Faith In Dual

Banks, Tiust Companies

directors

of

board

The

Thursday, September 30, 1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

1340

reported, does not provide for
a substitute arrangement to gov¬
ern operation of the joint proper¬
Standard

ties

of the

the

Government

Hills

Petroleum

Naval

beyond

ninety-day

a

which efforts
to

come

The

that

a

are

to

Co. and

the

period

be

in

made to

announced

in June

the

contract

would

end

after the Justice Department

ruled that the proposed
ment

Elk

Reserve

permanent agreement.

Navy

it

Oil

within

exceeded

the

had

arrange¬

authority

granted

by

law;

cated in

our

issue of July 8, page

136.

this

was

indi¬