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I SEP
"
9
1949
*
ESTABLISHED 1S39 ^
^
the Commercial
Beg. U. 8, Pat. Offloe
Volume 168
Number 4732
•
New York, N. Y.,
Thursday, September 9, 1948
J ;
The
FieeEnteiptise
By
i
t t '
J ; \ \
Price 30 Cents
Copy
Oil Shares Again
H i i *
Crystal Ball
PRESIDENT1 TRUMAN *4'"
a
Under-Priced
(Third Reading)
v
-g'YZY
By SCHROEDER BOULTON
President declares democratic in¬
stitutions at
stake in November
Elections. Asserts free and strong
labor movement is best
bulwark;
against Communism. < Condemns
"anti-labor policies" of GOP and
predicts <4bust" for labor if Repnblican Administration returns
to power. In Labor Day statement
®
:
President 1 demands Taft-Hartley
y ig."
repeal.
■
v
This, in my opmion, is a great
day for laborgg This a great day
,y.
I"i.• Jg::,. •..gg..g.;,v.for., .the count-•
try.
When I
jj dan stand on
the same platform in "City
,
-
Hall
•
:
in
•
De-
..troit;with the
Mayor
Walter
.
v
t h
e
and
Reu-
~
r-
i^d
a*
Frank
•
Mar-
tell, .1
kntiw
that the
coun¬
try is pn the
road to recove
I
am
th an
happy to join
.
:g'gg-'Vy
g
President
r-
Truman
-
--
r
y.
more
•
\
—in
this
Labor
t)ay celebration,
I
am
present
more
!
than
happy to be
when .the. CIO
AFL are marching
the
and
together side
l>y side ;ih the interest ?©f the-wel'
<Continued
♦Labor Day
on page
27)
;
address by Presi¬
Detroit, Sept. 6,
dent Truman in
1948.
State and
'k
>'•
Due June 1, 1961-1963
f, >,/•>/ «'11 • {optional)\2 .:!■
Prices to
In
yield 2,50 %
franklin custodian
K
Federal
i
g;
O-...-,*. '*''
y.
■*
SiCURiTiiS
A Mutual Fund
opinion of Bond Counsel in¬
these bonds is exempt
•
SlBonds
CANADIAN
;t
terest oh
from
•*: f.
g||g funds,
,
'
Municipal
Tumpike Revenue. Bonds
COMMON STOCK FUND
Taxes
Income
PREFERRED STOCK FUND
*
Bond Department
BOND FUND
IKE WTKXUl CITV BANK
UTILITIES FUND
INCOME (BALANCED) FUND
Members New York Stock Exchange
OF NOT YORK
*
Prospectus on request
40 WaU Street, New
Boston Chicago Philadelphia
London
Amsterdam
;V.:--W?li-'i
York 5
Providence
Buenos Aires
1 FRANKLIN DISTRIBUTORS,
64 Wall Street, New
J
Inc.
■
York S
v
::•'
'
' r
V
THE CHASE
52 WILLIAM ST., N. Y. 5
'
r>.;,
Bell
'-f V''•
'V.
| Bond Dept. Teletypes NY 1-708
For
Banks, Brokers and
New
Dealers
Wires Connect
Montreal
colombian
:
Coupon 2.40, July 1, 1966
Underwriters
Distributors of
and
to
yield 2.45%
;
Corporate
;
,'g
INVESTMENTS
30 Broad Street, New York 4, N, Y.
Tel. WHitehall 3-2840
Tele. NY 1-80S
Dominion Securities
,
,
;U:g:g' CLEVELAND.•
Chicago
Columbus Toledo
New York
Cincinnati
1896
^
■
Established 1899
;
Eat.
Members New.York Stock Exchange
igafcroadway, New York
yy.
.
Buffalo
Yi ^telephone REctor
2-7340
5
•
•'
'
Bell
System Teletype NY 1-702-3
available
upon
request
Members New York Stock Exchange
and other Principal Exchangee
New York 5, N. Y.
gg
Hampshire
IRA HAUPT & CO.
g; g ©RPORATICMi
40 Exchange Place,
g
COMMON
Prospectus
Securities
(Incorporated)
New
stocks|
Bought—-Sold—Quoted
.
THE CITY OF NEW YORK
Public Service
g .ggg
sutro bros. & co.
Gordon Graves & Co.
INSTITUTIONAL
Municipal
gy ••/g
-bonds &
dollar bonds
and^ g
OF
Toronto
CANADIAN
$30,000
Town of Tenawanda, N. Y
NATIONAL BANK
Teletype NY 1-395
Private
York
BAnover 2-9980
.
lit Broadway, N. Y. 0
Teletype NY 1-2708
WOrth 4-6000
Boston
Telephone* Enterprise 1820 ;
«
•>
2
Our Greatly
Federal Water & Gas
>
;
Southern Prod. W. D.
Fed. Water & Gas Stubs
BOUGHT—SOLD—QUOTED
I
who
did
not
level
e
t
n
the
difficult
160-170
Lonsdale Company
March, 1 9 4 8,
of the 1948
of
primary
technical
be
W.
Edmund
Tabell
resumed;
shortly.
it
it will
and
start
"
New York Stock Exchange
r
>
New York Curb Exchange
Tel.
REctor
will
market since
of
be
to
necessary
in
July 19 has consisted
series of
a
short, rapid swings
relatively narrow range as
in the accompanying table.
a
noted
The industrials
trated
day
Joseph McManus & Co.
the
and
decisively
nene-
Aug. 5 high on Tues¬
confirmed the uptrend
,
signal given by the rail ayerage
week.
The
Sept. 7 highs
last
;Members
-
and
with
184.54
New York Stock Exchange
pared
New York Curb Exchange
Aug. 5.
have
Chicago Stock Exchange
28
63.25
185.64
were
,
as
and
com¬
62.14
on
The industrials, however,
the July
not yet penetrated
high of 187.00.
The rail
aver¬
penetrated the July 28 high
on both Aug.; 5
at 62.14
and on Sept. 7 at 63.25.
age
" Tele. NY 1-1610
Dlgby 4-3122
62.07
of
39 Broadway, New York 6
•
a
vast segment of tmr
of
LAMBORN & CO.,Inc.
99
WALL
action
ket
They led every
May, 1942, to early
was
than
mar¬
a
early part of this
v
the
year
rails
again assumed their market lead¬
ership. In my opinion, the betterthan-average action of the rails
SUGAR
indicates
near-term
a
break-out from
Raw—Refined—Liquid
.
worse
warning of the
1946, break.
In the
September,
NEW YORK 5, N. Y.
advance
1942.
when their
1946
STREET
market
every
since
advance from
the
upside
trad¬
narrow
ing of the last few weeks.
Exports—Imports—Futures
>
Regardless
of
the
reaction
■:
■
Vy"
■'>;
believe the rails,
As for indi¬
suggest the list in
issues,
Aug.
of
the
If
a
'-j!-
regarding a slump in
a depression. These
predictions by economists, news¬
paper columnists and Washington
writers, are not new. They started
and
the
in
Autumn
President
of
1945
Truman's
*
board warned of
d
a
v
when
i
s o r
V
coming drop in
a
the business index that would re¬
sult in seven or eight million un¬
employed by early 1946.
As
a re¬
sult," the President attempted the
obviously
impossible
procedure
of
trying^ to raise wages while
holding down prices.
No predic¬
tion could have been
The
more
the next
1948
Ashland Oil &
step is
completed
a
and
testing of the
highs of 194.49 and 65.23.: If
reaching
high territory, the major up¬
trend, which is now in effect, will
new
Stock
Bought and Sold
be
confirmed.
Failure
to
pene¬
trate the 1948
highs by both aver¬
ages, followed by a downside pen¬
etration of the August lows of
Standard Oil Ky.
Bought and Sold
177.40 and 58.25 would indicate
decline
into
or
close
to
160 basic accumulation
would
broaden
the
the
area.
a
170-
This
base
pattern,
but would be disappointing from
a timing viewpoint.
W BANKERS BOND ^
Now the
1948 have not occurred.
has
recession
late
dire
1949.
been
As
postponed
of
result
a
to
these
prophecies, the investing and
speculating public has become
so
fearful of the coming catastrophe
that stocks are selling at an ab¬
surdly low price-to-earnings-ratio,
to
yield,
5
%
innumerable cases,
while
high
grade
bond
ar6 still hovering around
yields
the 3%
in
level.
'J- ::r-'
I do not pretend to be an econ¬
I don't
when busi¬
know
will start to fall off
Obviously,
our
boom
ness
sharply.
tremendous
cannot
busi¬
fofever.
last
However, the inevitable ending is
not necessarily a bust.
It is pos¬
sible
that there will be piece¬
meal adjustments as each sector of
-
industry,
and
by
one
returns to
This
a
readjusts
one,
normal pattern.
has
already happened in
industries.
Certainly, the
shortages and demands built up
by four years of war and by ten
years of depression ate not going
many
be
to
satisfied
Floor, Kentucky Home Life Bldg.
LOUISVILLE
2,
tion
It
KENTUCKY
Long Distance 238-9
is the opinion of this writer
that the major uptrend will be
by the last three
years of peak production, large as
that production may be. This be¬
comes even more unlikely when
we consider the growth in popula¬
confirmed
Incorporated
1st
Bell Tele. LS 186
and
that
we
Low
Established
July 19
180.04
1856
Date'
179.58
are
July 30
Aug. 11
177.40
now
187.00-
last
20
years,
7.42
Aug. 5
Sept. 7
185.64
and
Points Advance
Date
July 28
:
184.54
iv,
the
over
Rally High
-
only
some
York
Stock
Mobile, Ala.
Direct
drastic slump in
a
New
NdwOrleims.lJi.^Birailngtiani. Ala
for
cause
wires
effect; to
great extent,
top-heavy
any
ket that has
lative
no
positions, is
borrowed
on
risen
in
a
to
branch offices
our
marj
specu¬
not operating
and has not
money,
'to- discount * the
price
greatly increased earnings,
Nation's
The
f
j
:
i
Psychology
HODSON &
4.50
8.20
COMPANY,
possibly
are
has
held
forgetting the
psychological "sta'tO of mind" of
the nation. This certainly has been
true for the past two years when,
despite the huge earnings and
dividends, a mass fear psychosis
back
the
stock
165 Broadway^ New
market
despite price) rises in everything
A mood Of pessimism or of
optimism,
however,
cannot
be
else/
sustained
over
long
a
period
of
time.
Nothing - changes
faster
than public sentiment, and, after
two
years of fearful forebodings
dip in business, the mass psy¬
chology is about ripe for change
despite even a possible temporary
33 Mj to 50% drop in earnings.
Precision
of
by statistics
It
only
can
or
of
the
Hession
Microsol Machine—(One Billion;
Mass thinking cannot be meas¬
ured
Corporation
Manufacturers
insecticidal bullets per second)—
fundamentals^
be measured
Data
by the
on
request
technical action of the market it-.
self, by the demand for and
ply of securities:
.
The stock
sup¬
mar¬
HEIMERDINGER & STRAUS
ket has been
Members
strong
50 Broad St., New York 4, N.
slowly building up a
pattern for a number df
With the many uncertain-,
years.
-
New
York
Security
Tel.: Dlgby 8-0460
Dealers
York
New
ties of the present day, it is a haz¬
task
to
attempt a long
forecast.
range
today
years
The predictions of
look awfully bad two
may
from
now.
•
BUY
However, while
this article may have many
faults,
it is always willing to state a defi¬
U.
graphs of the various market
ages and individual
mit the
The
"BONDS
aver¬
stocks, I sub¬
following long
diction.
SAVINGS
S.
price
range pre¬
ranges
are
definite but the
timing is only ap¬
proximate and largely guesswork.
NATIONAL BANE
Upward War Cycle Started in 1942
I believe that the stock market
in May,
ward
1942, started
war
a
long'up-;
of INDIA. LIMITED
:
price cycle, similar to
decline.
The
first phase was
the advance from 93 in the DowJones industrials in
..
...
to
v..
•;
"..i;.,. the Government in
Kenya Colony and Uganda
price cycles' usually have five
phases—three of advance and two
of
—
...
Bankers
that of 1914-1929. Such long-term
Head
Office:
v.
,
.
Branches
In
Colony,
v
New
.
Curb
York
New
York
Chicago
Exchange
Cotton
Commodity
Exchange
Exchange,
Board
of
New Orleans Cotton
And other
N.
Y. Cotton
NEW
Canadian
Exchange
1
213 in
May, 1946.
declining
phase,
from 213 to 160 in
area
The second, or
was
the
drop
.
Subscribed Capital
May, 1947. This
again tested in February
of this year.
We are now in the
third phase—a period of advance.
recent
decline
was
only
(Continued
£2,500,000
The
a
normal intermediate correbtibn in
the major upmove.
This third, or
;
£2,000,000
Reserve
was
The
£4,000,000
Paid-Up Capital
Fund
description
banking and exchange business
conducts
Bank
every
Trusteeships and Executarshipi
also undertaken
.
on page 35)— :
Exchange
N.
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
NEW
and
African
115
Kaiser
_
Exchange and Other Principal Exchanges
Telephone BArclay 7-0100
NEW YORK 6, N.
.
/
Teletype NY
Co.
fi.
members
20
BROADWAY
YORK, SAN FRANCISCO and LOS ANGELES
Securities
Goodbody & Co.
Y.
Members A. Y. Stock
CHICAGO
Securities
South
Exchange Bldg.
4,
PRIVATE WIRES
BETWEEN
Inc.
Exchanges
YORK
DIRECT
Banks
Trade
British
Y.
1-672
j
May, 1942 to
Mining
Canadian
j
India, Burma, Ceylon, Kenji
Kericho, Kenya, and Aden
.
and Zanzibar
.
:
Industrials
Canadian
I
•
Bishopsgata,
London, E. C.
26,
We Maintain American Markets For:
•'
Stock
Y.
Tele.: NY 1-1872."
H. Hentz & Co.
vVMembers
Assn.
ardous
nite opinion. Based purely on the
action of some 1,500 charts and
Bust Not Inevitable
of
both averages succeed in
Refining Co.
Common
been
had
market
be
about
concern
wrong.
ensuing
ness
has
might
day
decided increase in bearish prog¬
omist.
194
stock
boom of the last three years,
ness
there
Mehioers
Exchange
2SBrowfl St., New York 4.
R. v
HAnwar 2-9790
NY 1-1557
The stock market sceptics of to¬
'•
nostications
business
Steiner, Rouse & Co.
.
f
partially discounted the vast busi¬
entitled
11,
-In recent weeks there has been
February-June advance from 164
to
old—Q uoted
falling off in business should not
:
patterns.
Patterns."
Wednesday, Sept. 8, I believe that
the secondary correction of the
Dlgby 4-2727
;
power.
.
ners
people, thus
greatly enlarging the mass buying
expect a penetration
predictions
have
The action of the rails is very
been equally fallacious.
The pre¬
important. As mentioned before, dicted slumps in business in late
the rails have been the forerun¬
1946
and
early 1947 and early
ever
i
B ought—S
the greatly increased incomes of
"Stocks With Favorable Technical
test the
177-175 support
level is not yet quite clear/
The
2-7815
Securities
the market, but even a temporary
highs.
letter
my
again
BROADWAY, NEW YORK 5
120
vidual
,
When
whether
Members
level.
steels, automobiles and machinery
equipment issues show the best
up¬
will
trend
advance
the
technical
As for groups,
I believe the
jflC PONNELL & CO.
Louisiana
correc¬
minor
a
tion, would
cumulation.
Request
be
After
ac¬
to
met at the >188-190
will
period
ob¬
the exact
figure
resistance
First
buy¬
ing zone dur-"
ing the Octo¬
ber,
1 9 4 6 -
Bought—-Sold—Quoted
on
to
average.
jective except in individual issues.
repeated
-
1
While the rails point higher, it is
my
r
market in
Oft
industrial
the
ad¬
205-215
the
reach
to
two
The
duration.
should
in
of
upswing
months'
four
vance
e
Prospectus
broad
a
oppor¬
tunity to those
Teletype NY 1-583
BArclay 7-5660
presents
buying
York 5
fear psychosis is holding hack
mass
a
uptrend.
mary
It
120 Broadway, New
Alabama &
stock market which now presents buying
opportunity to those who remained out of market during 1946-1948 accumulation period. Maintains mar¬
ket in May, 1942, started long upward war price cycle, similar to 1914-'29, which will ultimately carry
\
Dow-Jones Average through the former boom peak of 386. v
I continue to believe that the market is definitely pointed higher tor the longer term.
believe that the recent decline from the June-July tops is a secondary decline in the pri-
Southern Nat. Gas W. D.
Corporation
Under-Priced Stock Market
By YEDMUND W. TABELL, Shields & Co.
Mr. Tabell asserts
New York Hanseatic
Thursday, September 9,
1943
FINANCIAL CHRONICLE
COMMERCIAL ,&
THE
* (998)
PINE
NEW
„
STREET
YORK
tel. wh 3-9cu
5
san francisco stock
los
exchange
angeles stock exchange
russ
1500
SAN
building
FRANCISCO *•
tel.
do
2-0773
^
j
f
<A
♦
;
Number
168
Volume
473£*>y
THE
COMMERCIAL
INDEX
Articles and
.
News
Under-Priced—Schroeder BoultonJ
Look Through the Crystal
Ball—Jacques Coe
Another
Free Labor and Free
Enterprise
\
Harry S,' Tiuman_.____-,._._
—President
Cover
£
_A
Apportionment
Market-dSdmund W. Tabell
Intra-European Clearing
and
|
GilbertHV
Stassen...!
Money?—Philip M. McKenna.__:.'.I._._.._^i
Financial Problems of the ERP—M. S.
SzymczakAi
In
5;
What Is Sound
result
•Dealers have met
|
12
to
Peak
Le v e Is ! _:.
_
Paul Hoffman, EGA
_i.
_ _
Fall
y
__
.6 #.••••
<
._
_
Business
Hoids
to
'
v
-
11 V
the
xAd)iidgek
^
:;;
any
Merrill Foundation Financing. Three-Year Study—19
j,on tHe pending enmpiaint
•
pSTASD alone, yet
How do
'
'
**
'
*
/"
•'"*
■'
:-v
'
'■
* v*
"*
-
* *
I
'
,.v,
-•
1*
■'
■
" ■'
^
•l\y
."l*1'
■
■
-jRegular Features7-
;
As We .See "Tt-iE^itorial)
■
^
}
-
Man's
V
r
''"ii
;
''4.' j"1
J' *
Bookshelf
Coming Evehts in the Investment
^
Trading
;
Indications' of' Business Activity ^
•'
Fa«iiil^s?i^JL^; ;4
—
»■:
VNSTA' Notes''
8
News About Banks and Bankers...!——
|
21
Piir Reporter
^Governments- 4
on
-—w -
22
-4-
Public
4.
...••!
42 ^In¬
Securities
Salesman's Corner
securities
!. 4--48 r. S
I The State
—
efcTptdeju^indiistry^nite^
||
^Washington and You-T—40.
V.
'
'
"'VV'
"
f. K K
'*
4
? Not-available this week.
'M ;x'
+*
r
ty:*
!
•
Twice Weekly
Pablished
l
Since the
'
>
'
Utah Southern Oil
BOUGHT
t
SOLD
-
-
QUOTED
Orvis Brothers
hkve contended that the SEC
we
{
engaged in
the retarding of either one is:
bodies
are
REctor
a
setback
2-4930
both.
common to
New
York
Leonard
ad¬
iany;
N.
Y.,
1-1434
part of the attorney and client relationship
.
v
.
.
;|§y
Refineries, Inc.
dressed to/"the -disclosure of 'confidential communications
are
& (p.
14 Wall SI., New York
5,
power over the NASD. When
a joint venture, therefore,
):!y.!:l>Tfto{Court temporarily; restrained
"
Capital Stock
attempted violation of a sacred relationship old in the law
.a cause, for
indignation although no cause for surprise.
Selling 2 %
;
/
y
y :
Circular
■■k<>
and knavish resourcefulness in the invasion of the
the securities industry;
*
-
*
on
^
record.
•
request
George Birkins Company
privacy
:>;
;
times earnings.
10-year dividend
is
40
Exchange Place, New York
WHitehall
•
4-8957
"
5
Tele. NY 1-1404
< •';
•■•Via tricky questionnairesi spot checks/ registration ,of
salesmen,' nefarious and un-American trials- by District
happy;
Trading Specialists
jy the
j
NASD
go
nor
the
means
to
SECURITIES
;
fight.* Findings and
the Order based on these defaults are then cited as://
I
|/precedent.
k
All
NEW YORK
by default because the respondents have)
neither the will
in
UPSTATE
un-
kMatiy' disciplinary proce|edings before the SEC
' .•
' ///;' /. j ■/;-;/*:k-:;:.'/;■
k Fortunately in Otis & Company, the SEC and the NASD
.
encountering
are
means to
Edwards
c/o
passage
SEC the life and death
v
GROOY & CO.
Members Natl. Assn. of Securities
entity which has both the will and the
an
40
fight, the result of wnich may- be /a crystallization
Dealers, Iw.
Exchange Place, New York
DIgby 4-3280
5
Tele. NY 1-2698
'
(Continued
jbrapers' Gardens, London, fi. Ci, Eng-
and,
of Se¬
Equity Oil
'
a
j
J k these
v
-
1
Mackinnie Oil & Drilling
'
3d;.
Tomorrow's Markets (Walter Whyte Says)—-—!
-
Broadway
!
•
Registration-
Securities Now in
-
[
have made the lot of those in the securities field most
-'r~~
iSeeuflties-j.----——rr--rrrU
Utility
Railroad
Offeringsi4 —"!! —!!-^—!-
2-4500—120
System Teletype N. Y, 1-714
Empire State Oil
•.
Committees, the shibboleths of "protecting
public interest,"/"fair and equitable principles of trade"
artfully applied, and other questionable media, these bodies
---39
—-
Bell
the
'
Prospective Security
1908
Business Conduct
Observations—A. 'Wilfred" May!—«■—*
—- - - -
*
-
Established
•
_
REctor
temporary judicial frustration."
for that? j: r k" Vk
:
account
of.those engaged in
14
——
Our Reporter's -Beport!—r
.
Members N. Y. Security Dealers Assn.
indicates jthat these, institutionsj have. dd:1teri)diruk, ^'Jcbe.ek
Bargeroh^U;' 7
^nA
Mutual Funds
.
8< \
-
From Washington Ahead of the News—^Carlisle
.!
J.K.Ricc,Jr.&Co
,T-.f ;v:
continuing attempted extension and usurpation
df.powe;r bv administrative agencies and their satellites, the
;Canadian/;Seeurttlee'V;ii-^^&>'44^KTf^-:i4-^^
Einzig-r-"Abuse of Sterling Area •
Pfd.
k. -In the,
12'
—
______—25
pe aler - Bio k er-^-Investmen t Recbmmendations
&
Finishing Com. & Pfd.
y■
y.
are addressed to the
of the Maloney Amend-
which
1
Com.
J | and the NASD are auxiliary policemen
operating out of
the same precinct. This statute virtually gives to the
'
if
Bank and Insurance.Stocksi.i.Ii^2Jzj.-i.:j'Xi
Business
'
"
-
United Piece Dye Works
U. S.
have said that "both the Securities and
we
ij existence of the NASD,
.
y
making
or
|ykment to theySecmrities . Act'which made possible the
Banks^
Plan for Enlarged Mid-West Exchange in Discussion Stage.-r 23
Australia Wheat Exports Top Record-ty-£*4
-/fe y/?r-y -1 /;•: ^
Newspaper Controllers to Hold Annual Meeting.i.i.b.;j.^J1.j.y 34.
Record Funds Going Into: Home i Construction.....39
''
we
Simple!
y
19||
yf Rising- Costs,-ABA Survey
*
Texas Gas Trans.
Corp.
.
Official-
\
part
iwy similar
or
■'/ •" ^:l vi "
curities Dealers have met
National .City Bank__y .___;;!___L!!Ly.^_!__!_y___;j:__!_l- 20 !y
Agriculture Maintalning Sound Financial Status Despite'
4».»
are
{Exchange Commission and the National Association
•>.s.
"■*'
!•:
;•
j. ^; -^P^; t^ ajt the, inj unctive. provisions
;';?<•
Government's Manipulation of Credit Base Scored by
■'
k:k:4:r;;kV.:;v4\ lI'kk k'k:
complaint
Group Insurance Provisions in 18%% of New Union Agree-.
ments, Says National Industrial Conference Board _L_»-!_-- 19 ^
1 C. Thomson, President of
Mtgp. Bankers Association, Sees ,.; v >
Federal Government Receding from Mortgage Business—- 19 ; >
!•■'•■
".
now.
Dept.
Federal Water & Gas
Corp.
any -steps whatsoever
sanctions whatever against
eluding requiring answer,t;holding hearings,
j ;•
/1
Large Oil Reserves Seen from "Depleted"
Fields^-^y^,!-!/ 18 y
Renegotiation of Defense Contracts Scored 1..^ _!_.__!_ 18 :
*/
copy
Phoenix Fire Insurance
Cyrus S. Eaton and any,of their
•
'•*
free
Securities
intervenors for failure to comply with the NASD's request to disclose such confidential communications, in-
<
,
j
r
CMty ^R^selrve-
for
compel the dis-
communications - which
Otis & Co. and
-.4/directed to applying
!
Expenses, Says E. E.:VvV.\//y
^yhdicate^I^iJiU.^-;LI.l^A;'l$ F
£»>*'.'
k
/•-/^••/;
U. S. Fire Insurance
,
||^attorneys,vand (b) from taking
Faster Than
Implications
British Export Gains Reported by Neville Blond, British
a
air¬
WALL STREET, NEW YORK
Telephone: WHitehall 4-6551
and Decreed:' ^ ",1
final decision of this Court to
Lj-'.s venors
•
Earnings Decline Seen by Nv
99
f'r/'
-
k-vk.of the attorney and .client relationship between inter-
L_t:!LLuLiyy!;yL!~!-..___-_,_^_^:-;_-.<-13 /y
Secretary Snyder Says Tax Cuts Prevent Government Debt
Ky
/'•• Reduction
Trade
Write
wherein
;
Labor_^_
of
small
interesting
,
Obsolete
Court for
on
AIRWAYS
Securities
about in the United States District
reprints
article
on
temporary judicial frustration.
tfilt lS' Heteby Ordered,
9
Material
Crabb, President of Investors
of
a period of ten days from the date hereof,
Ilk- the NASD; is enjoined frond (a) taking any "action prior
!/_! i. L!:!_1
Administrator, Commends
Buying Power Rising
Association
k^kl Jl). Jhat for
May to Give Course on Investment Techniqiles.. I3!
Nebraska Securities Bureau Lauds Wiesenberger Dealer
True—With
a
National
prepared
Week
including especia:iy
trans-carribean
-
A. Wilfred
Advertising
data
*(3) That the National Association of Securities Dealk:; ers4.Inc.4 is hereby made a
party to this cause for pur^
poses -of this order •onlyy-• -^;-:k
lk<-
'Lower Meat Prices in Offing, Reports Northern Trust Co.
?
of Chicago
,
lines,
•
Patrolling Partners Stymied (Editorial)
"Irredeemable Notes Worthless," Says Edward
Henry Neary
William Witherspoon to Lecture at Washington
University
Close
came
the
;proyi?ipns:
j*
—Barrett Griffith and Bruce!Ellsworth..
.. _
Lave
Judge Keech entered a
^"Temporary Restraining Order" containing the following
Green__Li__.*_.____:u_.-.j:__"_ 13Retail Salesman—Leon Abbett_____
14
What About School
Discipline?—Roger W. Babson^..15
Is Gold More Than a Deflation Hedge?
,
• < y <
>
_
;..This
v.
and
■the District of Columbia
ll
a
_ _
of
8
Tobin/ Secretary of Labor..11
Coilege i
t-——/'!'ii—! _—ii
La Salle Extension Institute Reports
We
Butinrss
attempt to bring Otis & Company to heel as a
the alleged repudiation of the Kaiser-Frazer un¬
(Commission
Labor and Inflation—William
•
SPECULATION
act in camera.
an
1-
Nationalization in Norway—John
Labor's Goals—Philip Murray-.w.............-.........^...
COMPANY
ENLIGHTENED
> Incon-
derwriting agreement,- both the Securities and-Exchange
6
.
What the Bankers Are Doing About Inflation—A. G.
Brown
A Pro-Public Labor Program V
If I Were
sistency of prying bodies which
4
The Investor Must Have Tax Relief!—Robert
A.
A Reply to the President—Harold E.
—Maurice
powers.
2
—J. H. Richter.
AND
,
Cover
Our Greatly Under-Priced Stock
LCA
llCHTfnSTEifl
-
Kaiser-Frazer underwriting.
Criticizes SEC and NASD activities
in pursuit of confidential information
between attorney and client.
Welcomes opportunity to delimit SEC and NASD
re
•
.
CHRONICLE
Discusses restraining order obtained
by Otis & Co. against NASD
.Cover
_
FINANCIAL
Patrolling Partners Stymied
F**c
Again
Shares
Oil
&
32)
on page
& Smith.
'
The
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COMMERCIAL
THE
4 "11000)
ECA Apportionment
Thursday, September 9, 1943
FINANCIAL, CHRONICLE
&
Abuse of
and Intra-Eutopean Clearing
Sterling Area
By J. H. RICHTER*
no system of infra-European clearing suited to accomplish the purposes of the European
Act, Dr. Richter describes a plan for a Clearing Pool, which, he contends, definitely helps
>'L the
purposes oudined in the legislation.
Furnishes data of estimated balance of payments of ECA nav-tions with western hemisphere and within European Clearing Pool as well as ERP funds allocation.
Stating there is
By PAUL EINZIG
^Cooperation
ex-<»
thatt are
ciusively
or
pred o m ir.antly due to
payment
dif¬
ficulties.
The
following dis¬
cussion places
this
problem
into
set-
the
ting of the
subject
devising a
wider
yardstick for
the apportion¬
ECA
ment" of
funds
f;
-
j. H.
r
partici-
t h e
< ;
Richter
among
natine
coun¬
tries. The problem is under con¬
OEEC in
tinued consideration by
Paris, but no final anu generally
acceptable solution has yet been
(c) balances with non-participat¬
assumed that such
Western
nemisphere,
and
(d)
balances
among the participating countries.
set up,
ing countries outside the
these
Since
balances
net
are
could be used
minants
,o
funds
of
amount
the
of
deter¬
as
country would
appropriate if the gross
be' allocated to a
only
seem
and
debit
credit
of
items
these
partial balances of payments are
either all being settled in dollars,
or
mutually cleared one against
condition is only
This
other.
die
for International Settlements.
3.
Realized in
the case of the partial
oaiances of
payments of eacn par¬
ticipating country with (b) the
Western
Hemisphere which in¬
.
cludes <a) the United States bal¬
ances.
It would also be realized
balances of payments
If
to
are
Used
in
factors
as
the
deter¬
mination of the allocation of ECA
funds
'
the
participating
it is necessary to use
among
countries,
-
European
co u nt r i e s
advance estimates of the prospec¬
"
Which hope to
derive unilat-
tive
magnitudes of such balances.
Clearly, the United States could
not generally commit itself to the
^eraT
of the
sources
Paul
Dr.
A
Einzig
*,
:
Which
naturally
are:
the
ensure
Plan.
eric
m
an
qua rters
anxious
to
of the Marshall
success
Yet there is another side to the
It f is
question.
British
the * legitimate
fear /that
the
Western
,
of
the
estimates
ments
of
balance
can
be
pay¬
made in
fashion, based upon the
routine
G
which
>
—
•
Basic Principles
1.
| Tjiere
outlined.
here
rocedure
is obviously no method by
completely equitable or
economically optimal apportion¬
a
ment of ERP funds
among the
participating countries can be ef¬
fected,
Yet a procedure must be
devised which
greatly reduce
arbitrary judg¬
ment and would give a promi¬
nent place to objective criteria,
thus presenting an attempt at im¬
partial fairness of treatment which
would help cooperation among the
participating countries\and pro¬
mote the psychological and eco¬
nomic purposes of the Recovery
Program.
^"ry ■'^ V /•>■.
the
influence
can
of
Apportionment
according
to
a
formula that is based upon objec¬
tive criteria could then be modifield by a consideration of factors
that cannot be expressed in pre¬
cise
quantitative terms, or can¬
expressed in an equation
be
not
consideration
of
balances"
"net
with this group is devoid
realistic meaning. A net
of any
deficit,
say, equivalent to $100 million of
participating country A with all
non-participating countries { out¬
side the Western Hemisphere may
oe
made up, for example, of a
deficit .of
20
with, country
with country
settlement
debit
for
A» of its
non-partic¬
country
accounts
with
tions of equity and economic com¬
part of which is the
sense,
desideratum of facilitating intra¬
-European trade and payments.
in¬
deed
be $200 million instead of
$100 million, as erroneously im¬
plied in the statement of a net
deficit for the group as a whole.
It would thus be impossible for
the European Recovery Program
to
contemplate
consideration
of
the payments position of the
par¬
ticipating countries vis-a-vis
the
the
it
Balances
of
need
to be
derived from the estimated pros¬
pective balances of payments. The
estimates that have been made or
{revised by the Executive
refer
to
United
all
j
of
(a)
balances
States,
with
the
balances with
Western
Richter
Hemisphere,
is Chief
of
the
European Division of the Office
of Foreign Agricultural
Relations,
Department of Agriculture. Dur¬
ing the war he served as a U. S.
representative1 in
London
on
a
| number of international Working
^Parties which dealt with the
prospects
of
relief
and
reconstruction
pro-
1 grams.
In 1946 and 1947 he was
economic advisor to the U. S. Ele¬
ment of the Allied Commission for
Austria.
| no
The present article is in
way intended to reflect Gov¬
ernment
policy, but merely
repre¬
sents the writer's
personal views.
as
of balancing
way
with
have
off-shore
de¬
own
that
been
group.
appor¬
purchases
non-participating .* countries
(or part-settlement) of these bal¬
they will actually arise.
Forf ifj such a provision were
made, these countries would lose
ances
as
ECA
funds;
this
is
in
entirely
an
different matter and has nothing
to do with the determination of a
basis on which ECA funds can be
allocated.
'
-
ERP
the
Western
net
balances
with
Hemisphere
and
among the participating countries
themselves, and ignore the esti¬
mated net balances with the
non-
oarticipating countries outside the
Western Hemisphere, we can re¬
duce
the problem
ageable
to
proportions.
more
It
include
in
the
other,, it
that, to
guiding bases the
countries
is
participating
a
with1 each
necessary
countries
that
exports
intra-
To
would
additional : do¬
for'home use;.
:
:
mestic" resources
Again ^
avoided
the
establish
multilateral Clearing Pool. It is
this ' situation
by
be
can
allocation
firm
a
ERP funds based
of
net deficits—
on
Western
Hemisphere and partic¬
ipating countries taken togetherestimated
in
advance.
Such firm
allocations would then operate, in
the case of the countries having
surplus
balances
intra-Euro¬
on
clearing account, to make it
pean
Governments
would
their trading facilities with
European
abuse
the
Sterling Area, in order to se¬
additional dollars at the
cure
pense
ex¬
of Britain and the Sterling
Area.
This
suspicion is based
on
bitter and costly experience. Even
in the absence of unlimited trad¬
ing facilities there has been much
trickery and deceit on the part of
continental
governments during
the
last
two
In
years.
many
known
and
proved
instances,
goods imported by Western Euro¬
countries from the Sterling
pean
Area
to
the
meant
that
re-exported
were
United
This
States.
since American demand for such
goods
by no means unlimited,
gain of the continental
was
the dollar
countries
the
was
loss
of Britain
and the Sterling Area.
^
/ The Netherlands has. been
the/worst/'offenders.
of
one
Having
purchased large quantities of Ma¬
laya rubber she has re-sold it to
the United
States, thereby depriv¬
of many millions of
practice continued
long time in spite of re¬
ing Britain
dollars.
for
a
This
peated British protests. The Neth¬
erlands
Government
promised
to
repeatedly
it, but such is
stop
the deterioration of
dollar
morality that
even
a
nation of such high in¬
tegrity as the Dutch could not
resist the temptation of dishon¬
oring its promises for the sake of
earning extra dollars.
The Neth¬
that, to adopt a
system of administration for ERP
erlands continued to import rub¬
ber under the false pretense that
funds that would make such
it
possible
for
them to earn addi¬
dollars by increasing ex¬
ports to participating countries—
tional
just
as
it is possible for them to
add
to
their
increasing
sult
dollar
to
the
true
feasible, it would be
at
by
resources
exports
is
It
area.
a
re¬
neces¬
point to break with
the principle of "firm allocation"
sary
in the
one
that no country could
the dollar amount, em¬
ployed for its benefit, by increas¬
ing its trading deficit. However,
sense
force
such
up
leniency would
was
for
needed
domestic
re¬
quirement, and, in violation of all
undertakings, she continued to re¬
export it to the American market.
;
More recently another instance
of
wholesale
Area
It
abuse
facilities has
concerns
the
of
Sterling
light.
to
come
systematic
re-ex-
apply only
port of wool and other Australian
limited scale—set by a pro¬
products to the United States. The
portion of the intra-European net
clearing balances—and would be
protected, as far as United States
European countries taking part in
this traffic include France, Italy,
commitments go, by an adequate
reserve to be set aside by ECA for
Belgium.
a
precisely
this
purpose.
The
me¬
chanics of such procedure will be
explained below.
4.
be
balances of payments of the par
ticipating
reducing
retaining
mean
man¬
must
remembered at this point
on
dollars at their disposal.
them,
on
estimated
balances
European account, they would al¬
have the same amount of
.
If, then, we take as preliminary
guiding bases in this connection
the
surplus
ways
out¬
side the Western Hemisphere
may
be authorized out of apportioned
postwar
European
;[■ economic conditions and prepared
v
funds
to their
,
the
•' *Dr.
(fa)
Branch
a
payments
tioned,
On the basis of these premises,
is clear that: criteria may be
left
vices to find
their
Payments"
Western
determinant for the apportion¬
ment of funds. The countries will
a
After
2.
t
would
by the amount of
they receive in settlement
dollars
the
Hemisphere
mon
funds
.
ipating 'countries
outside
Western Hemisphere would
side
turn,
ERP
their
mutually
clearable one against the other,
so that in actual
fact, unless the
credits happened to be payable in
dollars, the dollar need for a
fThe
in
of
reduced
and credits would not be
countriesout¬
criteria,
allocations
interest
in
promoting or even
maintaining their exports to other
participating countries since, no
matter how large or how small
non-participating
objective
clearing account, firm basic
pean
be
intra-Euro¬
on
R, a
deficit of 60
S, a
deficit of 120 with country T, and
credits of 70 with country U and
30 with country V. These deficits
jrigidly applicable to all countries.
Would take account of considera¬
balances
surplus
Basic
The
principle
tions of funds,
of
Quotas
firm
alloca¬
to be modified
to
limited extent with respect to
provisions for the intra-European
clearing, may be anchored in the
of
basic
allocation
quotas for each country related to.
the
estimated
net
(Continued
Netherlands
This
quired
deficits, for
on page
24)
a
re¬
With the aid of devices that
would have put the notorious Dr.
serve..
Schacht vto
shame,
the
Belgium
Government
gold ' from
,
managed to
London almost
secure
every
payments .agreement with Britain
in-'Sept.1 1947J ~£$$$?:§>
with
-
latter
and,, of
course,
'
j
country
has
■
unenviable
ac¬
dollars
loss thus incurred.
decided to send
the v resale:;
special investi¬
a
proof of
secure
ofAustralian
t
wool
United States from Australia.
tion
liable
is
the
export
form of
to
be
taken
control
in
laws,
embargoes
on
Ac¬
under
the
exports to
the offending countries. The Aus¬
tralian Government has already
informed several countries which
have
been :
re-exporting
Austra¬
lian wool to the United States that
in
future
their
purchases will
have to be restricted by the Ex¬
change
Control
branch of the
Commonwealth's Bank to quanti¬
ties that
considered sufficient
are
for domestic requirements.
The effective application of this
would close one of the
measure
loopholes.
There
however,
are,
innumerable others through which
Britain stands to lose dollars, even
under the existing limited Ster¬
ling Area trading facilities enjoyed
by Western European countries.
If, as a result of an agreement in
Paris, these facilities should be
extended
dollar
Britain's
considerably,
losses
would
increased
be
accordingly. Judging by past ex¬
perience, undertakings given by
the governments concerned to
the
serve
rules
not worth
which
the
they
the
of
scrap
game
are
of paper on
Such is
do
written.
are
ob¬
their need of dollars that they
not hesitate to resort to any con¬
ceivable
underhand
methods
to
satisfy their need at Britain's ex¬
pense.
i
...
%
The worst of it is that, owing to
the existence of loopholes in the
British
exchange
countries
control
these
position to se¬
cure
sterling in unofficial mar¬
kets. This means that Britain does
are
in
a
by the receipt
corresponding to the
continental purchase in the Ster¬
ling Area. It also means that, since
sterling is obtainable in the free
market at a discount, the conti¬
not
of.
even
goods
nental
to
benefit
-
countries
in
are
a
position
re-exported goods at
prices with which legitimate ex¬
porters in Sterling Area- coun¬
offer the
shall
aid
that,
under
experiment of sterling
convertibility in 1947 Belgium was
easily the worst offender among
x
which has recently resulted in the
loss of direct wool sales to the
method of de¬
disastrous
Sterling
-
-
gator to Europe to
trickery at the expense
Britain.
During the brief and
securing dollars by
the
The Australian Government has
tries
an
of
out
Area dollar pool, in ultimate end
she has to bear a large part of the
reputation
means of
for
of
a
establishment
the
every conceivable
ceit and
Allocation
her
fair share of the British gold
v Cr:---
•
■
revisions
than
more
"
of
case
rather
secure
In ; the .4 instance i referred r toSterling t Area above, Belgium and other West¬
y with
those of ern European countries have se¬
.Westernr E y-: cured dollars
primarily at the ex¬
ropeV but also pense
of
Australia Vbuti since
r on the part of
Britain has to .supply Australia
of time. Such unlimited commit-:
ments, for the .whole of the pro¬
gram, would
obviously .be; in¬
compatible with the provisions of
the
Economic' Cooperation Act;
,
the
in
pool-
fing of the re-
;
come
—*
to
benefit month since the conclusion of the
from the
c
payment of deficits; as they would
actually arise over a given period
But it is not only for this reason
(c)—-.balances of that such
commitments could not
payments among the participating
and should not be made. Such
The present discussion presup¬ countries, ? provided there
is a
procedure,
it
must . be : noted,
poses a broad familiarity with the multilateral clearing among them,
would also tend to make the re¬
so-called
ERP
Brown * Books it cannot be realized in the partial
ceiving countries
expand
their
published by the Executive oaiances of payments of each par¬
Branch, on whose estimates and ticipating country with the non- imports unduly and neglect their
exports.
Firm ' allocations
will
pomputations the quantitative ex¬ participating countries outside the
avoid this effect.
amples here given are based. The Western Hemisphere since there
estimates were adjusted to cur¬ is no possibility of a multilateral
By the same token, however, it
rent'
prices.
Adjustments
to clearing with all countries in this would be undesirable to provide
changes in funds available and residual group. - If this is so, a that, for those countries that have
' ■:
found.
not
only On the
pdr^t of * the
"
The British attitude has
much<S>
for
criticism,
,
be
countries.
disposal of the Marshall aid
Allocations
Firm
LONDON, ENGLAND—One of the main obstacles in the Paris
negotiations for a Western European currency clearing is Britain's
reluctance to place the resources of the Sterling Area at the free
in
country
oaiances
for example, with the Bank
of
with groups of
countries, the idea that such net
each
order to obtain dollars at expense of Sterling.
yield to obtain Marshall Plan aid, but feeling
persists problem could be worked out within Sterling Area.
Holds Britain may
be
Pool will
a
on
ing privileges in
method of dealing with
intra-European trade
Program can get under way effectively is the development of a
intra-European balances of payments to eliminate impediments to
ery
of
based
important problems that must be solved before the European Recov¬
One of the most
V-
pooling resources of Sterling Area with
countries, Dr. Einzig points out this action is
British fear other countries will abuse Sterling Area trad¬
Noting British objections to
those of European
are
unable
compete.
to
Such is Britain's need
Sir
that
Stafford
ally agree to
it
is
conceivable
American
Cripps will
an
pressure.
eventu¬
arrangement re¬
facilities, thereby con¬
tributing to the breakdown of the
sulting in heavy dollar l°sses\
so, the number of those who
lieve that,
instead of accepting
Marshall aid Britain ought to ha
worked out her salvation throug
arrangement.
closer
the
countries
which
abused
the
conversion
Even after the
sus¬
pension of convertibility Belgium
has always found
ways by which
co-operation
within
increas
Sterling Area is likely to
considerably.
Volume 168
Number 4732
THE
COMMERCIAL &
CHRONICLE
FINANCIAL
(1001)
The Investor Must Have Tax Relief! Lloyd Hatcher Heads
Steel Production
Electric Output
Stave of Trade
-r
^
.
and
Industry
:
Mr. Gilbert maintains it is feasible
Business Failures
spect to claims for unemployment insurance, it was noted that
they
reflected no appreciable rise and that
payrolls in general were steady.
\ Discussing existing inflationary conditions in the United
States,
the September issue of "Business
Conditions," published by National
City Bank of New York, points out that Congress in its
special session
rejected price controls, rationing, ?nd, the corporate excess
profits tax
as unnecessary, impracticable and
positively harmful.. It adopted the
restoration
of
controls
over
consumer
credit,, and it gave the Board of Governors o£ the Federal Reserve
System power, effective until June 30, 1949, to increase member bank
reserve requirements
by a limited amount. On the other hand, states
the business
tees of
ban
letter, it renewed and liberalized government guaran¬
housing loans, which will encourage further expansion of ur¬
mortgage loans which
many
single factor in the inflation;
people consider the most influential
-
The new powers
affecting ^credit can add nothing to" the supply
of goods, and while they are
designed to reduce demand by limiting
the ability of people to borrow and banks to
lend, their effect in the
great, it observes. Consumer
overall situation is not likely to be
very
credit has expanded since the end of the
instalment terms have been eased—in
war not primarily because
fact, the fixed terms prescribed
by the Federal Reserve Board's Regulation W were in effect until
November, 1947—but because the items sold on deferred payment
became
Increasingly available,; because needs were acute, and because
people, having jqbs 'and owning liquid assets, could command credit,
states the letter.
still present.
terms on
In most
The trend
these influences toward expansion are
cases
unlikely to be reversed by stiffening
payments, although it niay be slowed down and inflationary
seems
pressures to that extent abated.
It concludes by saying, the special session added
to, rather than
subtracted from, government
spending—lending—guaranteeing; -it
encouraged
a
further growth in mortgage credit; and it adopted two
credit control measures which cannot be expected to dormuch as
long
as other policies of the Administration favor credit
expansion. This
is not getting at the causes of inflation.
'
t
w
!"■
,■>,
■
.•«,/'
•
' f.
T » * '
,fA comparison of prices
**♦ \
1
\
^■*'
$
^;
double
taxation
thereof
can
As
v
those
advertised
for
the
same
cars
enter
we
the fourth
after World War II Federal
year
contrast to the trend of taxation
year atter the
/
;
been
tional
expense
their
peak to
m
war
of 3.6% of na-'
tional income.
attitude
ernmental
lections
erty investment averaged 3.79%, compared with a rate of return of
3.69% for the 12 mopths ended July 31, 1947.
Total operating revenues. in the first seven months of 1948
amounted to $5,448,712,802 as against $4,858,577,843 in the like period
of 1947, or an increase of
12.1%, while operating expenses totaled
$4,275,076,138 compared with $3,805,390,575 in the corresponding
period of 1947, or an increase of 12.3%.
-
(Federal,
state
local)
and
are
timated to
The unfavorable effect of hot weather in most areas on retail
-
alleviated last week.
Retail volume,
(Continued
on page
there
ceed
$50
lion
role
of
about
or
much
($51
as
Robert A. Gilbert
as
we
billion
income
tax
spent on food in 1947
estimate). Personal
receipts in the fiscal
year
just ended
times 1939 levels.
The
burden
of
about
were
19
the
restrictive
upon
increased
our
particularly heavily
investor, and is more
the
upon
securities
business than upon most other in¬
dustries. Without in the present
article going into the reasons why
a restoration of the investor to his
rightful position and a revival of
the capital markets are essential
to the maintenance of the Ameri¬
standard of living,
a
it can be
prerequisite to such
overlook
such
fine
points, so let us examine the re¬
cent budget figures for possible
prone
to
economies and let
other
to
72 WALL STREET,
DIgby 4-5700
„
Morris Stein & Co.
replace the lost revenues. The
of
the
The
some
cost
;VJ, Dome Mines, Ltd.
possible
econ¬
general
gov¬
of
Hollinger Cons. Gold Mines, Ltd^
Kerr-Addison Gold
a substantial percentage of
expenditures which in 1948
$39.3 billion. Shrinking all
departments to prewar size might
maximum
a
saving
Lake Shore
of
the
of
dollar.
Of
efficient
course
introduce
can
Mining Corp. of Canada, Ltd.
economies of operation. For
example the New Jersey Chamber,
Commerce
has
that
estimated
the various Federal bureaus have
about
3.6 typewriters per typist
employed. For really substantial
savings however, we must look to.
other parts of the budget. Trans¬
portation ahd: communication ex¬
penditures in fiscal 1948. .were
about
$1.5 billion compared to
$500 million in
1939. Included
here were some $200 million for
the
Maritime
Commission, $300
million ; for roads, and a" postal
deficit of over $300 million: With
reference to the road expendi¬
tures we urge that the'govern¬
ment give immediate considera¬
tion
to
the
possibility of toll
&ghwa$£; Traffic: cdngestioii fn
many' areas can be relieved by
the construction of such highways
which
be
can
amortized
Noranda Mines, Ltd.
t
!
More
*;
Wright-Hargreaves Mines, Ltd.
HART SMITH A CO.
52 WILLIAM ST.,
of
Private
New York
or
on • a
coup
ORHTKI"
CQfAMOH^0^
an
op¬
With
reference
deficit there is
term
solution to
(Continued
budget is some-
the
to
apparently
postal
no
near!
comfort the
on page
in-
35)
his usual column in next"
*
•
.<
,
Royal Bank of Scotland
Incorporated by. Royal Charter
Time Inc.
V
-
Kingan & Co.
49
•-P''V
j \
r
; v. V'*
y '
'V
v".'\
Bought-^-Sold-PQuoted
.
OFFICES
:
.
Smithfieid,
E.C.'I J
Charing Cross, & W, ,1 T
Burlington Gardens,
S
f'v" V.
.
-
64 New Bond Street, W, 1 '
TOTAL ASSETS
:: £153,656,759
'
FREDERIC H. HATCH « CO., IRC.
'
„
-
t
C.',:
i
>
< .if
Established
1888
^
Ol
Teletype,,Nx.1.-2813
>
sv*y
Bishdpsgate, E. C. 2^ >
8 West
American Maize Products Co.
h'f
throughout Scotland
LONDON
3
McGraw (F. H.) & Co.
l
i72t
HEAD OFFICE—Edinburgh
Dealers, Inc.
c
shack
hovel but cour¬
ageous economy in 'F e d e r a 1
spending.
"
;
A. Wilfred May will resume
CO.
.•>
'
p\prp-
Toronto*'
Montreal
300,W°
Branches
NEW YORK 5, N. Y.
i
Htnover 2-0980
Connect
portunity ?for
week's issue.
V
-
Wires
substan¬
a
Here there is
tial burden.
N. Y. 5
C'BeU Teletype ny 1.395 ;
roads would
toll
taxpayers
*
Ventures, Ltd.;
,
.
Pennsylvania Turnpike is an out¬
standing example of a successful
toll road. Its self-sunporting fea¬
tures have attracted private in¬
vestment.
''UriS-v-V■■MEMBBRS N.
.4-;; -rv-cf
l4'Z-■ Associated
Glyn
Y. security DEALERS ASSOCIATION;
fe63?Wall Street, New York S, N. Y.
.A.
Bell Teletype
m:
'
.
' :
:
NY 1-897.;.*
•
v
Pioneer Gold Mines, Ltd.
.
sound basis at moderate tolls. The
relieve
•';
McIntyre Porcupine Mines, Ltd.
many
of
Ltd.
Mines, Ltd. 1
Macassa Mines, Ltd. PPP
perhaps $500 million, after ad¬
justments for the changed value
administration
Mines, Ltd.
Kirkland Lake Gold Mines,
were
produce
h
;'
P'r Mines, Ltd.
prob¬
ably about $1.5 billion, compared
to $556 million in 1939. This item
is not
,
Giant Yeliowknife Gold
6% Preferred
h-
formerly manager
trading department for
the
of
securities busihess.
"OBSERVATIONS"
'•"'X-ii-u
Telephone:
engage in the
Stein was
Mr.
ernment last fiscal year was
also consider
us
possible sources of income
situation
omies:
total
'
tax load rests
Corp.
of Securities
637
at
(but unsound) spend¬
may be needed.
To mention
Roosevelt Oil & Refining Corp.
Association
David
forming
offices
gov¬
~
Nat'l
is
with
Manida Street, New York City, to
Possible Economies
bil¬
annually,
Magee Oil Industries, Inc.
'MERCER HICKS
Stein
Co.
ex¬
Common
Members
Stein
31)
Roosevelt Oil & Refining
Forming
Own Investment Co.
spending will have to
ing methods
Halliburton Oil Well Cementing Company
Convertible
David Stein
dropped slightly below
TRADING MARKETS MAINTAINED
Kerr
the
toward
Deal novel
es¬
.
"
bank.
evolved. Economy methods as
novel
(yet;-i sound) as the New
now
,
<
f
In the first seven months of 1948 net after interest arid rentals is
estimated at $334 000,000 compared with a net income of $247,000,000
in the corresponding period
a year ago.
In the 12 months ended July 31, 1948, the rate of return on
prop¬
the
be
can
1947.
addition
other items of Federal
other than general gov¬
many
Total tax col¬
in
.
the fourth
ernment, the reduction of which
may require considerable courage.
It is quite possible that a different
total
a
In
defense.
37%
o
for
tive
David
are
r
In
Georgia
ATLANTA, GA. — Lloyd B.
Hatcher, Vice-President, has been
appointed head of the investment
department of the Trust Company
of
Georgia.
Mr.
Hatcher
was
formerly New York representa¬
rev¬
complicated by European re¬
lief needs and the program of na¬
re¬
stated that
,
*
what
duced about
f
I,
War
Dept. of
;;
<£—
'
latter, Federal
tax collections
had
World
after
Inv.
Trust Go. of
average
>
was
to afford
of dividends,' demonstrating $2.5 billion cost
easily compensated for by reducing expenditures.
—
trade
necessary
have decreased only about 3% from the war peak total, and
about 21% of national income. The situation is a decided
enues
,
of 34 automobiles
be
as of September, 1948,
a restoration and revival is a more
1941, according to the
reasonable tax policy for the in¬
Sept. 6 issue of "Steel" magazine, shows that during this period the
vestor
specifically a limitation
average price increase per car—unweighted for production volume—
on total taxes on large incomes to
is $942, or 87.7 %. In 1941;. 18 of the 34 makes
were/priced under
50% and the elimination of double
$1,000. Today the; lowest figure is $1,371.
•
taxation * of dividends. •
V
In view of the sharp increase in;
price; which on some models
exceeds 100%, one would think that after several
years of high pro¬
The Cost
duction signs of customer, resistance to high prices would be discern^
How much would
these tax
ible, states this trade paper. Such resistance that may exist is more
changes cost and; what is the
than offset by unsatisfied demand, the magazine adds.
r
Unfilled orders for passenger cars on the books of new car deal¬ feasibility of their > achievement
now? At the outset: of this dis¬
ers are estimated by the National Automobile Dealers Association at
cussion it should be noted that
7,300,000 on July 1; a gam of 11% over the backlog of Jan. 1.; *
!
basically the revenue loss is really
o
today's prices 7,300,000 cars WOtild, Cost eager 'customers. &bout
insignificant compared to the re¬
$12,000,000-,000. At • the present rate!. Of production, the papeir, con¬
sumption of Sound economic pro¬
cludes, 26 months would be required to fill the orders.
gress. For example, the revenue
lost; by limiting certain income
Net railway operating income of Class I railroads for July, 1948,
taxes
to
50%
and
eliminating
was
$105,256,808, according to the Association of American Railroads. double taxation on dividends
may
The corresponding figure for July, 1947, was $61,197,828.
be estimated at about $2.5 billion,
Net railway operating income for the first seven months of 1948.
compared to an annual deficiency
before interest and rentals, totaled $516,189,527 compared with $430,in plant investment, due largely
603,569 in the same period of 1947.
to
onerous
taxes, amounting to
Estimated net income, after interest and rentals, totaled $76,700,about $8 billion.
; 000 for July, 1948, compared with
$34,800,000 in the same month of
Politicians, however,
may
be
with
as
now.
Shows great growth of present tax:
load in contrast with period after First World War; asserting burden is discriminatorily
imposed on investor and securities business.
Pleads for 50% maximum levy on large incomes and elimination of ■*
Auto Production
m
to .; permit
well
as
investors material tax relief
Food Price Index
The pace of industrial production for the
country at large last
week snowed no important variation from its
high operating rate
of previous weeks.
Minor strikes coupled with,)
shortages of farm
workers in some parts of the
country were annoying, but their imme¬
diate effects were not too significant in the overall
picture. With re¬
recommendation
v\" -.}
By ROBERT A. GILBERT
Carloadings
Retail Trade
Commodity Price-Index
^
5
Williams
Banks: J;
Mills
Deacon's
&
Co.
^
Bank, Ltd.
•
6
THE
(1002)
A
COMMERCIAL
What Is Sound
Reply to the President
By HAROLD E.
STASSEN*
7
77
Republican spokesman charges Mr. Truman's Labor Day talk was that of a candidate pleading for labor | A i
vote.
Dishonoring labor with extreme demagogic appeal to set class against class. Asserts infta- f:l
tionary spiral was launched by President in 1945 in following Wallace postwar depression philosophy; 7
Yesterday in Detroit the American people were given an additional reason why there
a
change in the White House and Gov. Thomas E. Dewey should be: elected ip
November as the next President of our country.^ It was clear that
your special visitor of
77( .—:—TT
in office and had with
national Congress a
clear majority of both the Senate
:
yesterday?not
,
as',
the
President
to
commend
American
bor
on
perb
rather
c o m
laining
p
candidate
election
i
n
1
g
for
seekfb
a
r's
o
vote.
j
t h
atening,
laining
r e
c o m
indi¬
cations
fact
he
that
essential
make
cannot
of
home and abroad.
He "traveled
the
vital
the
furnish
leadership
of
record
a
without
failures
7
international
for
used
on
the
meh.;
by
law,
new
as
a
what
the
representative of
Republican
vitally need¬
party even though the bipartisan
foreign policy had been well es¬
tablished.
Long before that date
honor
to
cans
American
labor,
extreme
an
been
c an
Union
/// /7'.
ress
toward better living, better
housing and better health.
They
want
united
a
America
solid
united
want
successful
They know that
united
America
parent attempt to create
to benefit
of
labor.
I
am
misconceived
lace.
date
or
Working
they
cannot
people
be
the
•? a vv.or
that
it
that
wife) must
leave
in
wages at the corLabor knows that
standard of living in
grocery.
the
high
America is the result of
high
duction
from
which
their
comes
skill
own
not
and
but also from the
genius of
agement,
the
ability
pro¬
of
only
work,
man¬
the
in¬
ventor and the
use of
capital.
|
1 have great faith in the
future
OfAmenca and of freedom if the
SS.
J
7yeS
progi ess. and
and
■
•
and
At
he
set
off
the
enthusiasm of its youth in
a
of
tion which he
:
now
One
on
the
result
his
of strikes
This
pages.
116,009,000
man
-
through strikes in
of
over
work
the
high
stop-
loss
of
days of - labor
1946; the loss
one
billion; dollars in
workers; the loss of
crucial v production
in
steel,
in
food, in machinery and in coal;
wages to the
the
and
was
loss
to
come
of
substantial
investors.
country,
~
ability of management,
severance and
the
toil of the
per¬
farmers,
in¬
as
to
great,
™r "
and
the
resilience
and
stout
hearts of the veterans are
to be
highly
commended.
among
the
which
cannot
be
produced.
When
■
These
products
World
War
of
are
libertv
synthetically
II
ended—
first V-E Day and then
V-J Day
the now President of
the United
~~~
■
■
'
■
••
'•
speeches of
His
is
still
yesterday show that
following' such advice.
miscalculations
consistently based
on
have
a
been
pessimis¬
tic view of the future of America.
With a record of little
judgment
and
less
himself
faith
up
as
he
a
once
again sets
prophet and at¬
an
an
average
•
a year
,
The plain facts
arc
average
•_
of
over
,
under the
//
i
that«under
short-sighted policy for labor
advocated by the President beand August, 1947,
cost of
living. Their
^
~
in
wages
duction
loss
by heavy
UP
due
to
and
chaos if he is not retained in
i office.
"
7 In
?*
a ■
(.-■/
•*
•'
pror
strikes
«
*
-
/
7
7'
7.
"The
The
and
Gold
of
Clause
it
did
grains of
gold
consisting of 25.3
0.9 fine, shall: be
the standard unit of
Second, ib.
Botji
under the President's post¬
sion/, not
below
value,,
.
than :}k
more
the
of/1%
weight pre¬
standard
scribed by law, after
circulation
a
of 20 years, as shown
by the date
of coinage, and at a ratable
pro¬
portion for
period- less than
any
Treasury/-.-"
7
;
The two
,
;/
foregoing fix ". 7. the
vweight rand :s limit
of
standard
labor policy,
"
*■:
j
tion:"'of
June
copied in
the
Truman
Complaints?
In the face of these
the
complaints about
the law—a law which Was
"passed
his veto by a two-third ma^
over
the
members
by
of
Con¬
majority / vote
a
among the members of his own
party in Congress?
•
777*7
Why does he complain about a
law
which
provides for eighty
days to settle a dispute affecting
the
whole
strike?
about
a
V ? (Continued on page 34)
7"' :
,7
*
-
'/
l7
.
*•
.'/T
.
v ;
,
...
Art.
I,
Sec. 8:
the
money, regulate
.
/ ;
240
ss.,
out
arose
events
of
gold
In circulation, properly
of gold sold at a
was
certified
bars
premum over coin
because it was
necessary to melt and assay
in order to detect abrasion
counterfeiting.,
In
t
Case
Justice
Hughes
Court:
"Moreover
and
y
•
/
the Norman
coin
Chief
Mr.
the
for
wrote
virtue of
by
this national power, there attached
to the
ownership pf gold and
silver
those
which
limitations
public policy require by reason of
their quality ^as legal tehder and
as a
medium of exchange. Ling
Su
U.
Fan
S.
United
v.
302,
arise
310.
from
the
'gives
to
which
does
fact
such
218
States
limitations
Those
the
that
coinage
country
without
a
Why does he complain
law which
by
Mr.
-
requires finan¬
"•
- -
■
-
*
•
law
value
a
tender is
legal
as
attributed by the law, aside from
their
bullion value.
Hence the
power to coin
power to
money
includes the
jEorbid mutilation, melt-*
.
.
be legal tender in all
payments at
their nominal value when
not be¬
low the standard
weight and limit
of
tolerance provided
the
single
duced
piece,
in /
standard
~
7
by law for
and,
weight
when
below
and
tolerance, shall' be
at valuation in
pro¬
portion to their actual
weight."
/Note that there is no such
material
thing,
substance,
as
value;
value
or
can not be
fixed by any law
regulation. The
foregoing show
the
as
weight
the
of
repository of
value
weight.
the
which
varies
That
is.
gold is "the
criterion of value.
Therefore while
does
attach
not
of
consequence
as
mere
a
value;
intrinsic
they ; are intrinsically, i-e »
wardly, of themselves, worthless;
their
re¬
such
legal tender
directly
32)
- -
-
Their/quality
mere
value'.
.
prevent successful bargaining for
tair contracts?" Clearly/ it is bepage
opinion of
Chief/Justice
a
intrinsic,
of
consequence
as
ing and exportation" of gold ana.
Third, ib. sec. 372: "The value
silver coin,, "to prevent its out¬
of foreign coin
shall be that of
flow '* from; the
country : of its
the pure metal of such coin of
>origin.' Id.,
standard value,!.
p..311.?^7/77l7|/ ' '
'
The quality of legal tender gives
/ Fourth, ib. sec. 457: "The
gold
to/ irredeemable
notes
a
value
coins of the United States
shall
that the gold is the
value and that the
on
is
Hughes, in the Norman Case (294
U. S. 240) and in sec.
457, copied
unions, but which does not take
away the authority to strike, nor
(Continued
which
attach
not
.
make
extreme
of
Deal,
prohibiting
enacted
was
•
plain
President
5/ 1933,
note to the
a
Court
below,
and
that/phrase since)
of
foreigners 1
advice
.
broad public interest
of this legislation thah
gress
1934,
(where
in to advise the New
law
.
318:
sec.
"Any gold
coins of the United
States, if re¬
duced in weight by. natural abra¬
before.
the
jority
?
ing four statutes were in force.
First, U. S. Code, title 31, sec.
anti
/In short, labor has fared better
does
a'
the
on
in
emergency"
heard
I
Called
foreign coin,
Cases, 294 U. S.
v .'preferred to in the
prices have increased tolerance
approximately 7% Under the laW. last paragraph of the Joint Resolu¬
why
and
an
which occurred while the follow <i>-
and
Why
meet
have
.
value thereof
August, 1947, labor has
has at least kept abreast.
/
system.'
"sound/money"/ because
"to
Constitution; of the United States provides
Congress shall have power
To coin
States
it did
check
<:The
/
.
in
war narrow
trunk
•
Editor,:The Commercial and Financial Chronicle:
better
approach
sound
' 7; 7"
fared
under
passengers get
At present,- we citizens don't
have
'
*•'-
•*
''
effect
It
trunks and
"pie in the sky, bye. and bye," ifs
/
20 years, shall be received at
their
nominal
value
by the United
wages
the
not/a
,
other inflationary pressures.
777
7 Since the new labor law took
than
(a
trunk
your
letter-to-the-editor, Edward Henry Neary cites statutes to show
that the weight of gold is the only true criterion of value.
314: "The dollar
tempts to arouse in America an cial reports of union
officials,
unreasoning, nameless fear of fu¬ which opposes
secondary boycotts,
ture
depression,
unemployment which reduces clashes between
Prepared text of an address
One of your visitor's
principal
by Gov. Stassen at Masonic Terncomplaints in his address yesterple, Detroit, Sept. 7, 1948.
' 1 day
was the Taft-Hartley Labor
•
to
neivulaw;
ly
v7-n
•
hour in
these
After these initial fateful follies
he
$1.18
get
your
on
"Irrc deemable Fotes Worthless"
June,!.'1941
in
earned
/Uncertainty
spawned in the minds of Eu-
free
LETTER TO EDITOR:
Taft-Hartley law
24%! sPurred
action' and
and
caused
the
tries
now
his speeches was an all-time
record
specific,
This
laments.
.
thq ingenuity and
'Y 7
need them
a
great benefit
labor and to thp
average hour¬
manufacturing em¬
ployment, including overtime, in¬
creased 20%, but prices increased
Republican party.
of
in
-
bv
/inflationary
is the inflation which he
to blame
be
before
30
1
the
n°n ? Wln
1 bad begun to reap their harvest,
■1#7a
and accomplishment he persisted in following this erTifnCan ?. r. durlnS and roneous economic advice.; His
since the
war,
of
initia-!
own
lan^. ^eep r°Pe and of the Kremlin
iLa vision of the economic future of this
w
join with the spirit
v 1-7-
their eyes for seeing will
later for weeping."
.
use
give up;
baggage. man
you
the
labor leaders
whole increased from
a
77*7
decrease
his
some
they have increased from $1.50 to
$1.65 average per hour. Labor as
President DrGdict-«
on
by
an
average, hourly
$1.50 under their contract.
Today in the new contracts ne¬
gotiated under the new labor law.
Wal¬
spiral from which this country is
still suffering.
This is the infla-
man. are no benefit
man s
the increase
iter
live
V 1
realize
thG
not
arbitrary, quick tempr
on
resulted
tors,
post¬
predicted
unemployed.
r
controls,
candi-
separated from
the
consuming public in the economy of America.
Wage increases
of
Secretary
1945
that wages would
I
wage of
$20 billion.
On Aug. 18, 1945, he
abruptly released major wartime
men.
any one party.
Philip M. McKenna
or
coins, you'll have to learn
again, as they are in England and
have/ been
to
only about 2G trunks out of
35 sent, or if you can
get your
;trunk hack some other /time, like
gold
effect,' automobile workers,
including Ford and General Mo¬
He followed
in
which
the. ranks of
To
Followed
Wallace,
timo
samo
ed
Labor
on
of
to
gold
own
checks?
back
*, 4V
wages
took
faith in America.
no
Commerce
vote
free
of
consuming public of the nation.!
Wallace followed those who
Henry
disunity
Labor will not be the tail
political kite of any one
^
had
confident that laas
to
>*
appraisal
America."
war
trans-
h%™]} *£ be.itself
deceived.
uili think for
have
se¬
Henry Wallace, then
his Secretary of Commerce, were
in
agreement, on the erroneous
re-
the
sccuro.
whole
and
politically by de-i 7,000.000
ceiving lsbor to
a
just
depression.
a
He
Deceit to Effect Disunity
and
He took
Wallace
a
between labor
business and agriculture and
every walk of life.
!
a
loss
1946 without the law.
curhs
placed
inflationary steps upon
mistaken concept, that Amer¬
be
quires cooperation
brought
minimum
ered action
ica's problem after the war would
and
But your visitor
The
assistants
been repudiated
of :
the
united
ahead.
the
year
the
of
advice
record.
ries
America with op¬
portunities / and
freedom
/ for
young men and
women
in the
years
since
have
war
America
a
:
by the unfolding economic post¬
striving; firmly,
wisely for world peace. They
and
followed
President
who
stand
against dicta¬
torship and suffering in other
parts of the world.
They want a
a
the
time
misleading
present-
.
ing
Americans
through strikes. The official gov¬
or a meal
"sound" system
It's a system
a
back when you present the trunk
check at the station to which it
Is
sent.
If the railroad steals some
re-;
,
The people of our country want
united America
making...prog¬
a
with
trunk
y
check,
What is
railroad,/you'll;
quiring : the
prohibition of
the ( right / of/
.
trunk
a
trunk
statistics show that there
policy by Michigan's own distinn
has been less than one-third the
guished
citizen,
the
Honorable
ther countries where the freedom
under the new
law
Arthur H. Vandenberg. Yet even strike .loss
to 'own- real money 1 was taken
than there was in 1946.
No fair
he was left behind by the Presiaway, that it leads to Government
went, and Potsdam was a colossal minded, thoughtful union /(mem'- control of
your life, waste, denial
ber in America would
exchange
failure for the United States.
/ i
Of \ncentive to earn and
the year 1948 under the law for
save,^ and
Here at home at this pivotal
eventual slavery./ <uThose who do
the
an
audience built up with labor boss
threats of a $3 fine for non-at¬
tendance.
today has negotiated the bes<t
contracts in history. Fur¬
thermore," these contracts/werp
negotiated under the new .-law
ernment
demagogic appeal to
set class against class made to
of
Gov¬
currency,
like
where/ after
ernment man-1
knows
mean, exactly?;.It's easier
consider that paper money
ticket.
ou1d
c
by coming out in its plat¬
"sound money."
What
they
is
com¬
namely,
CIO, ihp
American foreign
to
made
do
stomach,
contribution ; had
remarkable
a
and instead dishonored labor with
our
and
est
every
wage
ed in these next crucial years. He
used a day set apart for all Ameri¬
Teamsters
Harvard man,
you are a
for
if you
petent Ameri-
labor
so
form
hon¬
no
start
a
in
called
;
cluding the United Auto Workers/ aged
/pa per
and
But if
going to say.
the New
Deal to justify!1
:
this
species of robbery,
as
a
was
casions to bring about settlements
threatened
strikes in crucial
in affairs at
home and abroad
I
/,/>
■ /
which, he . himself
seven
different 1 Oc¬
member of the AFL and
single
a
Taft-Hartley
Law
law
a
Under
conference
taking with him
is
has
'
Potsdam
to
It
>.
to
at
'7;
About
'•
■
industries, thus i preventing dam
age to public and loss of wage
\
>",/
Truth
cur,
professor with a foreign accent, you'll find it harder to under¬
stand
And finally if you have been educated at Cambridge,
England,
1 i k e
J. M.
! "
The Republican party has
Keynes, who
made
'
:;v
by New Deal
system set up
ent monetary
or
of
President has -had
any
for a half century.
to
were
further
Harold E. Staasen
than
At. this crucial point he begap
p
speeches
The
of
to receive for it a definite weight in gold coin, just as trunk
check issued by railroad gives right to claim a trunk. Attacks pres.
to understand what I am
iiji
7 4".7
party
own
Congress.
ma¬
service he
had a more complete attitude of
support and of good feeling and
of well wishing and of coopera¬
tion
His scolding,
a
was
the members of his
initial months of
his
,
He had
of fifteen in the Senate
fifty-one in the House.
In
and of
as
party."
own
jority
record,
but
of Representatives
the House
his
of
v
This law
whick permits holder
Defining "sound money'7 as system
/affecting adversely the thrifty as well as workers and great middle
7 class. Says restoration of gold standard will obviate need of price
••■777'7- ^■777 7;' 7V controls.; 7
■/// 7/;/:/7/7
77 If you are a plain American citizen, you'll have the common sense
:
' 7*-7
passed with
the support, not only of Republir
cans,
but also of a majority of
Law.
the
Pa.
rency
v
:
.
was
in
and
la¬
su¬
a
States
him
President, Kennametal, Inc., Latrobe,
'
'
should be
came
Money?
By PHILIP M. McKENNA
/
■
Thursday, September 9,
1943
CHRONICLE
FINANCIAL
&
value
the
redeemable
cause
are
added by
is intrinsic,
fiat, the
they are fiat
of the statute;
money. The value or
sayso,
notes /
of the gold
redeemed,
attaches
be¬
with which they
paid.
History abounds with examples
of
the
effects
of
irredeemable,
/
legal
tender,
China,
e.g., at
7
currency,
paper,
present.
EDWARD HENRY
■Sept. 2, 1948. '
273 Main St.,
Port Washington,
NEARY
•'
N. Y.
•'
~
Number 4732
168
Volume
THE
COMMERCIAL
'>i
of the News
Reserve
hous^
/
the
in¬
vestment
Commies
.H
e
n
r
would be
-
n
/
leave him
return:'
-It
is
ATou
,•
Tru
that
ma n
standing alone.-
have
1
p
his
e
t
the
Carlisle
„
Bargeron
*
-
,
bluff."
,
despise the "word, but
if? is unquestionably a- program of
appeasement that is being- fol¬
lowed. no w*. *.
.The
most
man
responsible' for
this is- Henry.
It is* what he has
been preaching.
"We - must urn
derstand Russia" is what he has
said.
i
*Welh, we' are "getting around to
"understanding^ ,-her. It seems
that
we
thing-,
were
for
wrong,
one
"setting- up
separate
currency
in
zone
Germany.
Russian currency is to
place.
Parenthetically,
ta^ke
m
its
a
the -Allied
of
tQUgh."
!
bluff,"
*
■
were
-
|Taking their
:
"acting
r,-:S»v "'./—
.
from Wash^
ir>g;ton, American occupation offi¬
cers began talking about
running
cue
armored trains
through the block¬
ade. It looked.--a#. ...though.1 war*
might come arly day-. In' this aU
mosphere, probably just an
amaz¬
ing coiricidehcet the military4 got
more.appropriationa and; the,buys
were
again, ordered up for the
draft,
">
,
cirfcumstarices,' Clay,
o.fficers must have
been quite surprised when-he
called
weeks
toj
Washingtom
ago,J and told;
among- other
on the" ar¬
stuff - and
I am
prepared to
his
such
for
William With-
publicarig
e
siastic about World War II.
Hemy
flung the epithets along with' the
rest;; of - ^them.") Hut
he is: nowpreaching his true thinking.. He
a
rage.
fact,;: he got'} deferment
sential
\
?hi^
men
who
s
r
p
o
O;
economist
Nt
w
e
Coo.k
1
the
American
•
-
*.
-
"
'■
.'"
or.
time
of
subject to approval
tive
influence
upon
cial/situations.
The
local
currency
termined
their
finan¬
of these
use
funds is to be de¬
in accordance
with
the
'•
,
and. Co.
course
be
given /
evenings
day
quirements
heroes
sixteem
.
Aiherican assistance,
tended
to
year: in
war- and who,, because" of
disillusionment; •? they expert
-
-
is, not in¬
;
enable
In
the
spending and trade resfrictipns;r"The aVoidance of ;inflatlonary practices in government
budgets arid the self-financing of
internal costs of production and
irivestments are regarded as prOrepuisite to the stabilization of
currencies and the adoption of
multilateralism in foreign trade.
tion
are1
the
-
chances
■
of
coming back? /Left to/him,
bis
the
a
possible
European trade.
the
the
war
Since the end of
\
of such
financing
trade has been carried out
largely
through
bilateral
agreements,
stipulating the kinds and amounts
WiHianvWitherspoon J/
on
Str omherg - Cartson
from twp to^
mines
H. M. Byllesby & Company
References exchanged. Engineering
supervision. if desired. Write,
>
this
PHILADELPHIA OFFICE
| • American
Denver 2, Colo.
Rlttenhouse 6-3717 /
Carborundum Co, Noie
..
st. louis
J
'•
i
'
.
'i
.
Furnitiire Co,
Bassett Furniture Ind*
I
Dan: River Mills
"C'/'/v..: /
INVESTMENT
'
/
/'/
;
adopted at
Scott, Horner &
Mason, Inc.
'
!
St. Louts l,Mo,
Lynchburg, Va.
.
Members St. Louis Stock
.
II
PHILADELPHIA
SPOKANE. WASH
-
.NORTHWEST MINING
Puget Souad Pewer & Light Co|
riounced Sept. 8 that
.it
in
Cerp.;f?an'
ents
nlaeed
requiring
-/"//
coun-
■■
(Repqcta,
on Rqaue§t>
//::/
Lecture by; Mr,. Szymczak
;before School, of Banking, Univer¬
/,
promissory note, due AriS'- lvW5.
sity of Wisconsin,. Sept,
I, 1948;.
v/'?/;
BUCKLEY SECURITIES
/
New York 5 /■,
WHitehall 3-7253
Wire System
between
Philadelphia, JYey? York and,
AhOfte*
on
Floor
Exchange from 10:45 to 11:3Q
Pac.. Std. T»ff>e» Sp-82 |t
other hours,*
■•'/(/■^?.'■////'/.
A.M.,
STANDARD SECURITIES
\
44 Wall Street
'
|/;i;
Execution of Orders
Quotes call TWX Sp-43
:
/
CORPORATION
Members Standard Stock
1420 Walnut St.
Private
Immediate
of
[
CORPORATION
PEnnypacker 5-5d76
rjhasiri g it for investment,, „«! $ 1
0)00,000 Carborundum Co. %}k
or
(Prospectus Available)
Philadelphia 2
privately with an institution pur-
For
/
,
securities
:.
Kent-Moore Organization, Inc.
agree
recipient
Maryland Dry jaclt
:
Of
The^^ first; Boston
Exchange
LD 33
fillllllllllllUIIIUHIIIIIIIHItinilUllli
-
special; significance/
Placd3Privalely!llI|l pjrovision the European is
I
SECURITIES
.
sod ouvt,stRcet
~) ^-r'-Local Currcncy/Fnnds
■
PH 73
'"
Char¬
International Trade Orwas.
v
Stock Exchange BIdg ., Phila. 2
!
Telephone
!
Teletype
basic principles of the
garii^ation, which
Warner Co.
/■ /;/// •
M
^./.:/,':/?./.>;/;:/:/:////'/:
Trading Markets
Havana last March by 53 nations.
.
owners
forty acres with, past production,
records ranging to $4,000,000.00;
persons
^ ^ they
.What
Western /European ;
among
LYNCHBURG
personallyr.; .he- -would give of investment,: and discussions or access" to their natural resources
anything for Henry to come back current developments affecting •by American "investors arid to put
to the
fold,7 not only Henry but s^cufity prices.at trie disposal of the United States
-s ^hble, entourage. Recause
scarce .strategic materials in rea^
they
are
essential/ tot,/ his ^having
sonable quantities and m>. reasona
chanqe -for. victory., - -.
hle.-terms,
£ ■ ^
Y - ft
Truman
of
coopera¬
use of these'
local currency funds
might be for
the purpose of financing
intra-
.
his.: crowd,'
Trade
application
liiiiiiililiiiiiiiiiiiiiiiiliiiiiilliiiiilil
statements) ^enect/
llnmiihg" access' to jpoaf kets Pr' |osNow he is back in his real con^itiohs^ aftct the la^oi Supply tefing monopolistic control of na¬
tural resources,'/Iri particular, rev
r<?^*. Welcome him,; back, ^ say.; ahd .demand uponsecpnty
V. As*rnuchW.as; ^Truman
\despises; kets; investor psychology, theories J Ciplerit countries agree to? permit
fenyy and
•
principle of mutual
-
315 Colorado Bldgl
^reat.
tliat wiifi
•'
'
Intra-European
practical
a
run.
/
■■
countries,
Joe Dandy Mining Company
deficit
Brgnkluv^/PelariQi/IteQsev^^
were ip come, back
u;would create a problem for the
•republicans; i Make, no mistake
about that////:
* 'v///'?::/;/<7:-s|
.»
Financing
well-locatedCripple
properties, will grant long*
several
Creek
term; leases
,
European goverhniefits to- "cdtttihue; practices' of
ter of the
is
doL
a
all' recipient.' countries have un¬
dertaken very substantial obliga¬
tions.. These agreements embody
29-Dec.
Tuition
than
of
;
advapce must be very, uncertain.
the
>t.
more
company,
.
lars. The course is planqed, for, Recipient countries/agree to redesiring a knowledge of duce trade barriers, to eliminate
|uce, were against World Wer 11, investing f6r" themselves, estates, restrictive business practices,, and
But he
was acting, Out of char.aC-i trusty . or? ^odqv^ent^ppt^d
to avoid arrangements restraining
ter theri;
He. was performin g for will
be r analyses.of ; corporate competition in international trade,
it.
•«'
and stabilize the
in the long
economy
,
JJV that
the
and
considerable portion of the coun¬
try's total money supply.
Thus,
in these European countries the
Administrator will be in a posi¬
tion to exercise a great construc¬
connection, the AdminisIrOtor ?of the program has conr
eluded
agreements under which
as/ari es^
were
are
,
by the Administrator of the pro¬
gram.
In a number of cases the
amount in question will be a very
might; amoun,t to $17 billion, but
it i^ :;clear that estimates of re¬
In
'Wednes¬
op
In
/
li,)
hard,
The
will
stayer ^ hon^e,.
•/l:/:
did not deter,; him-from
smearing
uses
revenue
-
oiNew Dealers
applied to the Re-
whatnot in World War I at
when he was of draft
government,
and would contribute to
raise production
The Communists
:! ST.: LOUIS —r The Universiiy
College of Washington University
like.
pacifist,
part of the gen¬
as
In such
of these funds would
manpower.
use
inflationary effect in the
and* wasteful methods. of/afc
principles and aims? of the ERP; of eoods, to be traded and pro¬
tempting to deal with short-term namely, for:. retirement of I cur¬
viding for the extension of recip-1
problems of individual countries rency pr public debt as an antirocal lines of credit.
The restric¬
just pass the orders down.
The on a piecemeal basis.
To those inflationary measure, for supple¬
tive nature of these agreements is
others
would
undoubtedly de^ ends, self-help arid mutual cooper- menting existing savings in new
obvious, as they tend to limit the
nounce the Communists
for hav¬ atiotr on, the part Of' the European investments of productive charac¬
volume of trade to the level of
ing taken over their American countries are the necessary coun¬ ter, and perhaps for financing net
those countries which are least in
movement and give this as the terparts
to. American assistance, exports
to ? other
participating a
position to export.
reason for their
Moreover,
quitting.' With a and. the United States, has a right countries.
the gradual exhaustion of the lines
great show of patriotism, they to expect that the very large sums
The withdrawal of such local of credit has led creditor coun¬
would renounce their movement of money made available
by Con¬
quttericy fuods: from'the markets tries (such as Belgium) to insist
and
sa.y
they were supporting gress will be used in the most ef¬
arid their use to rejjay public
on, payments in gold; or dollars
Truman -as offering the greatest fective :
possible manner. '.
debts have an automatic anti-in¬ for
their surpluses or to balance
promise) fop what they are trying / A
;program;^^pf ,fplhand<$^
flationary effect. With the lessen¬ trade on bilateral bases. Toward
to accomplish.
There
would be ter
years
is contemplated and
ing of inflationary pressure and the latter part of 1947, this factor
great rejoicing in what is known
[cpngresa has autboriied approxl-* the gradual development of defla¬ was apparently
as the Democratic camp.
threatening
a
mately $5, billion of aid to West¬ tionary trends in certain coun¬
0jn$ has heard frequently that ern
intraEurope for,, the first year of tries,/ however, conditionSs may complete breakdown of
.this? is/:just what / the crowd ? in¬ !
the- recovery p^dgtam.- ThrA hu-? arise under which the release of European tradev An attempt to
tends to do, after they do their
'thorizatioh was based upon care¬
;■ (Continued on page 26) ; \
job of softening up Harry , and
ful and exhaustive.studies.'by the
denver
letting: him,: know? just how pp* technical/"staffs
.of) the^tjnited
tept- they nre? Frankly, I've seen States1 Government
American La France
,of essential
/ /Atlantic
screwier things ip^Amefican?poli-s European/requirements and avail¬
City Electric
CRIPPLE
CREEK
tics,than - tins.: Iri the meantime, abilities in
the Western. Hemi¬
Botany Mills Com. & Pfds.
they are -certainly. doing J a, good
sphere and elsewhere. It has been
Dayton Malleable Iron
COLD
MINES
job' in 'mouIdingiTrumah's cam¬ tentatively
estimated
that
the
;
/ Gisholt Machine
■■
paign, character..
r--L
total amount of aid needed oyer
Kearney ^ Trecker
LEASE
the entire period of the program
;
Parker Appliance
Long-established
give the devd 'ahnqudces-'/ft-
a
run
to be raised
in the form
ures
rough
people to take.
due
isolationist,
among
r'
short
States
wouldn't openly do it. They would
and credit Henry ;
100,% ten week s' /
bringing\alf ,this about/As a course -/"In-3
matter of iacfy
for
Henry is essential-: vestment
ly an isolationist iand a pacific the Layman,"
the two
epithetsiwhich his crowd to be given by
an
trade
their
be^ too-
for
was
expand
Szymczak
to
themselves.
and with the rest of the- wprld.
These long-range aims.. represent,
a great
progress over relief measr
Course at University H
things,: to /pipe ' down
mored train
S.
M.
coun¬
no
their
with¬
and
have
are
/to
tated the showdown. -You * might/ say that/for these
fellows- now to switch back would
Wilherspoon lo Give /
wes
several
-
pating
tries
of
eral
es¬
partici¬
the
FOR
<
'Under* the
and his fellow
in the
and
sources
cases
grants. These local currency funds
of
maximize pro¬
duction
new investments
put to work available re¬
would
,
"calling
were
we
•
services
these funds for
the .United
and
sential
Truman -made
he en¬
precipi¬
r
ac¬
amount
the dollar value of
goods and services received from
of
costs
p o r t s
goods,
policy
Henry who
was
m
special
in
.
Clay opposed the sepa¬
rate currency in the first
place.
But at that time we
resign
,
General
Russia's
words, it
nary a* move,
Indeed,dorsed the speech which
-
■
i
Henry intended to
until he forced a break?
forced the break.
one
I
r
foreign
the
fire
a
currency
equivalent to
in¬
tended to meet
that
on
In other
"call -his
or
•
famous
to
is
local
count
under the program
-
in mind
really
him
-
If he didn't succeed; that tirnO,' he *
was planning totry and try again.,
of'"gefrtorigh'*
*
-
■
his
keep
longer- is
slogan
He asked
known
e
with' Stalin.
didn't
;
:
tries to set aside iri
assistance
can
speech, of course^/But itwas well
in
dealings
No
after
a
about-face
got to keep
Truman
Henry,
is
!
making
com
that
pretty
now
/
Eu-^-
?
Ameri¬
rope.
a?
'
clear
Western
:
Ryt the
none,
decision would not be his.
a
y
success of
foreign program depends on our own future general policies
.We must avoid prohibitive tariffs and increase
imports. Cautions we keep our own
to nvoi4 booms and depressions which cause drastic fluctuations in our
foreign purchases
European Recovery Program
He is
captive. SA1£ the crowd around
is i Mm has? to do is to pull put arid
i
bringing
100%
answer
f
o
ov<|er
w
The
maintains
at home.
can be distinguished from other types of
postwar
Assistance because o{ its maiu purpose-^to
bring about a, balanced econ6my in Europe and
foreign policy, throughout the world. It represents a unified
approach to the overall economic problems of
this lat-'S/
.
official
abroad, and
It is becoming, increasingly, apparent that
th.ere is a method tc
Henry Wallace's madness. - His crusade is proving not to be in vain
This isr to feay that he is having
profound effect upon the shaping
of Truman's campaign, and particularly his so-called
On
7
Member, Board of Governors of Federal Reserve System,
*
By CARLISLE BARGERON
ter,
(1003)
By M. S. SZYMCZAK*
,
i
head
CHRONICLE
Financial Problems of the ERP
Washington
m
&, FINANCIAL
■;■■//,
Brokers
i
j"
-
of Spokane
Dealers
»
v./oV;.//!/
Peyton Building, Spokane
Branohes
,
Exchange
Underwriters
at
SeHogg, Idaho anU Yakima, Wn.
;
What the Bankers Are
'
NSTA Notes
of Agricultural Commission, American Bankers Association
Deputy Manager, in Charge
ABA official dascribss constructive
with actions
Doing About Inflation
By A. G. BROWN*
,
and outlines
of bankers to curb inflation and contrasts this movement
of Federal agencies in encouraging use of Government credit.
Cites situation in Georgia
information banks should have in granting sound agricultural loans.
Warns banks may
lend themselves to political attacks.
v
program
this Bank Study Conference is one of the most encouraging aspects of
banking. All over the United States, throughout the year, bankers are attending conferences,
going to school, and keeping informed about the developments which affect the business
Your presence at
and
the
of
^
wel-
fare
our
because
to
tinue
time.
PRODUCTION
private
management.
We want to
make
our
business safe,
Requires cash and Production
for
the
Buying
Livestock,
Georgia Bankers Association to
keep bankers, farmers, and busi¬
Fertilizer,
s o
flation in farm real estate prices.
We have consistently urged our
For Farm Credit in Frederick
provide better
p p ortunity,
at good wages,
County
:,y
informed about the in¬
men
ness
m
farm customers to keep in
ASSOCIATION OF NEW YORK
Bowling starts at 8 p.m. sharp on Thursday, Sept. 9! at the City
Hall Bowling Center, 23 Park Row (2nd floor). All members interested are urged to be there on time.
NSTA
CONVENTION—HEADING THATAWAY, PODNER
Most any night of the week the
Dance caller can be heard somewhere
sing-song voice of the Square
in Texas keeping in time with
music of the fiddlers:
the whirling
"Do-si-do and a little more dough
A little more heel and a little more toe
high; the deuce is low
'
change and on you go."
November the Dallas Bond Club will have the best
The
And
ace
One
by the Agri¬
ican Bankers Association and the
Labor and other farm expenses.
will
it
needed by its
Producing Crops,
Members
and
profitable
avoid
cultural Commission of the Amer¬
cash
the
Has
,
secure,
to
the past seven years
Credit
\
Georgia farmers
SECURITY TRADERS
period of inflation is due in no
small part to the national educa¬
tional program carried on during
con¬
under
that
dangers Of
excessive debt during this current
bankers
yet you can pay it off at any
we
fact
heeded this advice of their
have
Never comes due all at one time
banking
that
The
LAND BANK LOAN
country. We do
these
things
want
Thursday, September 9,1948
FINANCIAL CHRONICLE
&
COMMERCIAL
THE
(1004)
8
more
come
is
rip-roaring fiddlers and barker in the State of. Texas on hand to re¬
store a touch of the Old South's culture which has been revived and
is
spreading over the State like an epidemic.
Twelve lovely Texas models will be on hand to
now
assist Mr. Stanley
Marcus, of Neiman-Marcus, display the newest fashions for Dallas
Fashion shows are always a popular feature with both Dallas
men and women and Mr. Marcus has assured us that the Monday
women.
by our banks so as <o
justify their continued growth as
essential community institutions.
©bring the war, by their serv¬
ices to the government and to the
people,
banks: reached a High
pofet in public esteem.
We can
maintain this good will only by an
sound evening show at the Dallas Country Club will surpass any thus far.
condition, to pay down
Golf in Texas on a November afternoon is comparable perhaps
their debts during these years of to
sailing on Cape Cod in June, swimming in Lake Michigan in July
PRODUCTION CREDIT
prosperity, and have urged them or to sitting in the California sun any time of the year. Judging from
YY':,;./V
ASSOCIATIONy^Y not to make speculative invest¬ some of the scores from our recent field
day, the Dallas Club will
v1-'."
see
'':,:YvvYy;Y Y
ments in farm lands, but instead have some keen competition on hand for the convention tournament
WALTER D. BROMLEY."
to invest their surplus funds in
:
"Big D" has been witnessing a building boom unprecedented in
United States Savings Bonds in the
When the privately owned and
history of the Southwest with such landmarks as the Cotton Bowl,
order to make their own future Southern Methodist
University, Love Field and the Texas State Fair
operated banks of this nation em¬
secure
and to help the govern¬ Grounds
barked on a national campaign to
being subject to a considerable "face lifting."
ment manage the enormous debt
NSTA members are urged to send in their reservations now to
curb inflationary. uses of credit,
resulting from the war. We have Carrol Bennett, Chairman Registration Committee, c/o Dallas Rupe
they did not intend that there
even gone further than that.
We & Son, Kirby Building, Dallas 1, Texas.
would be any relaxing of essential
^
honest and sincere effort to con¬
credit
O
through the
A.
G.
forpeoplewho
their lifetime to
devote
financial
NATIONAL FARM LOAN AND
Brown
banking,
Wc want to increase the services
rendered
tinue to provide unselfish public
It goes without saying,
that we are doing just that as is
service.
.
or
credit which would
in¬
production and have con¬
uses.
However, banks in
crease
structive
everybody was talking ftloans even though each bink has
ters *
seeking , investment. The
inflation, but the bankers15 funds seeking, investment
are
doing something ' about it, government agencies, which by
their very nature should do their
Early this year the leading bank¬
utmost to curb inflation, are in¬
ers in the United States, through
the American Bankers Associa* stead
fanning
the
inflationary
tion, launched a campaign which fires by advertising farm loans
has been carried on in every state "Long-Term—Low Interest."
case,
servative spending. How success¬
ful this campaign has been, espe¬
cially as it applies to the wellbeing of agriculture, is shown by
a recent
survey on agricultural
credit conducted by the Agricul¬
tural Commission of the American
Bankers Association.
'
Bank Advertising
Before quoting figures from this
survey,
yoar
however, I want to call
attention
to
dating the past
their advertising
their
toe
face
to
the
that
fact
banks,
year
in
messages and in
face contacts with
public, have urged all people
to:
&"v
f
;
'
• ■ •
„
j
f
y
' •'
\
•
"Y
^
J
.
Y*' Y.
/
The Record of Georgia
Y
banks, through their credit
have
tion,
encouraged
opera-
inflation.
However, let us examine the pur¬
poses for which bank loans have
been made.
During the last full year—1947
loans made to
Georgia farmers aggregated $60,037,000, and of this amount, only
$19,475,000 remained outstanding
at
the beginning of 1948.
The
high percentage of pay offs, es¬
pecially in this state, have indi¬
you
need now
Borrow only for essential pur''
poses
-
• •
Spend carefully
Y;• Save' regularly
-Y>Y''IK;
•
Invest
cated
the
sound
and
prosperous
regularly
in
United condition of Georgia
agriculture.
States Savings Bonds."
During the
also, the banks
Commodity Credit Corpora¬
year
This message has been repeated
thousands of times by the banks
of Georgia as well as
by the banks
made
tion
loans
farm
jncome by
varied
to
Dealer-Broker
balanced and
a
production.
Recommendations and Literature
It does not set well with us as
bankers to sincerely and conscien¬
tiously
It is understood that the
on a constructive
for the welfare of our
carry
program
to
firms mentioned will be pleased
the following literature:
<■
send interested parties
nation, v^hile agencies of our gov-
erpmen^ hse the'money we
pay in
v Financial
Analysis of Thirty
urging our customers to
Oil Companies for 1947—Broch¬
borrow money "long term —low
ure—Chase
National
Bank
of
interest."
rY;
the City of New York, Petroleum
The 31 Production Credit Asso¬
Department, New York 15, N. Y.
ciations in Georgia had a consol¬
;Y'yy
y/''C;VY;'.;:""FARM
idated
net worth
the end of 1947.
at
$5,000,181 at
Fire
Of this amount,
Hirsch
Insurance
was
capital stock.
Administration
was
doing its duty,
Analysis —
Broad Street,
—
&
Co., 25
government-owned New York
4, N. Y.
If the Farm Credit
;
tect the future of
your
financing with
Pro-
farm by
a
*An address by Mr. Brown be¬
fore the Bank Study
Conference,
Emory University,
Sept. 3, 1948.
Atlanta,
y
Ga.,
During 1947, loans made by banks
in Georgia secured by farm real
estate totaled $22,662,000, but the
total mortgage debt of Georgia
banks at the beginning of 1948
the
in
United
States
the
as
Black Hills Power & Light Co.
Table of related
Market
New
Outlook
York
—Cohu &
and
Outlook
—
London
for
markets
Co., 1 Wall Street, New
York 5, N. Y.
Also available is
a
prices for rights
stock—First Boston
Corporation, 100 Broadway, New
and
York
memorandum
on
Chicago, Rock Island &
cific, and on Rayonier.
Pa¬
-»
capital
YyY'yY^y
5, N. Y.
Boston
Insurance
Company
—
Detailed
analysis—Geyer & Co.,
Inc., 67 Wall Street, New York 5,
N. Y.
—
—
.
Y
•
-.-•••••
•
.
*
"
(3) The value of the production
all
of
farm
products,
including
(4)
the
be
The
*
-
available markets for
things that
What
are
is
produced.
the
potential
of the farm people?
increased
by the
in¬
Y Can it
proper
(Continued on page 29)
co-
*
&
Co.,
115
Broadway, New York 6, N. Y.
Also available are an
analysis
of Pittsburgh &
West Virginia
mortgage bonds; a comparison of
Chicago
and
Great
Western, Chicago
Northwestern, and Erie; and
leaflets
N. Y.
'
t
Also
on
available
Central
&
Interlake Iron
Electric Power & Light
on
Corp.
and
are
memoranda
Southwest
Corp.*
Indianapolis Power & Light
and Portland General
OY-VY'vy'"
Amerada Petroleum Corp.—Dis¬
cussion—Goodbody
livestock.
come
farms.
1 Wall Street, New York 5,
.
small amount compared with
of Georgia
Corp.—
&
Kidder
M.
a
very
in value
Manufacturing
Natural Gas—Study of the in¬
result, the American com¬
Brooklyn Union Gas Company
dustry—William R.Staats Co., 640
munity and the average American
South Spring Street, Los Angeles
Memorandum
Zuckerman,
citizen have been recognized as
Smith & Co., 61 Broadway, New
14, Calif.
Yv v YY' Y ; •••'v'
the most progressive and enter¬
York 6, N. Y.
?
prising among the peoples of the
Railroad Developments—Leaf¬
world.
For the banker to do his
Bulolo Gold Dredging Limited
let—Vilas
&
Hickey, 49 Wall
job, he needs to know the needs
^-Analyisis—Bacon, Stevenson &
of his trading area.. He should Street, New York 5, N. Y. y;:; y
Co., 39 Broadway, New York 6,
know the possibilities for increas¬
Y:;'<• Y\YY1; /
N. Y.
•
- ' «
Small Airlines—Reprints of ar¬
ing the incomes of the people.
Here are some of the things a ticle from "Business Week" in¬
Central Illinois Public Service
banker should know about his cluding interesting data onTranscommunity and the relationships Carribean Airways—B. S. Lich- Co.—Memorandum—Josephthal &
between banks and the commun¬ tenstein and Company, 99 Wall Co., 120 Broadway, New York 5,
As
(5)
increase
Co.,
Invest¬
credit
community
are handled mainly by the com¬
mercial banks, which gather the
savings and surplus funds from
the people of the community and
lends them to those who can prof¬
itably use them.
Thus, natural
utilization* is made by the com¬
munity of its own credit resources.
a
the
Avco
Memorandum—A.
are
of the average
needs
only $15,932,000.
is
—
ment Insurance^-Analysis-^-Carter
-^-Analysis—Eastman,
Dillon &
extremely in¬ H. Harrison &
Co.; The Rookery, Co., 15 Broad Street, New York 5,
flationary and which could be said
Chicago, 111. y,!Y;Y.''^'\
'-v.' NYYYY •'•;,Y. :Y' Y:Y\ :yY'Y;Y:
to be subversive and against the
Also available is an analysis of
national interest.
yi How to Invest—Brochure—Mer¬ Savage Arms Corporation and a
rill
Lynch,
Pierce, Fenner
& leaflet of Railroad News.
What Banker Should Know V
Beane,'70 Pine Street, New York
It is worthwhile to consider that
5, NY.
Boston Insurance Company —
agencies which
was
This
Co.
Memorandum—Piper, Jaffray &
Hopwood,
115
South v Seventh
Street, Minneapolis. 2, Minn.
N.
Fire Insurance Stocks
it would curb the activities of its
banks in the farm real estate field
LOANS
Long Term—Low Interest
other,
Archer-Daniels-Midland
taxes
farmers, on cotton
crops
in
storage,
amounting
to
$12,596,000.
The
in every other state.
Contrasted loans made for
production and to ity:
'
Street, New York 5, N. Y.
to the constructive
advice, let me insure the orderly marketing of
(1) The number of farms.
quote from a typical message from farm products will in no way be
Stocks for Appreciation—List(2) The physical condition of
a
government-subsidized agency judged to be inflationary.
the farms, including their average Stanley Heller &
Co., 30 Pine
I ■ Now, let us consider lending by
in the agricultural field:
Street, New York 5, N. Y.
yield per acre.
and
.
customers
soil
$2,342,500
Now, what is the record during
the past year for Georgia?
The
agricultural loans made by Geor¬
gia banks during
1947 totaled
$95,295,000.
These loans met the
credit
requirements
of
103,695
farmers in your state.
At the
same time, all of the governmentsubsidized agencies made loans to
only 28,914 farmers, in a total
amount of $28,008,000.
The ex¬
ponents of government-subsidized,
easy credit have taken occasioh to
use
these figures to show that
—farm production
"Buy only what
farmer
our
production is by following
conservation practices
sources of
crease
sound
as
about
by the state bankers associations,
and at the community level by
local banks, to educate the public
as to the dangers of inflation and
the advantages of thrift, and con¬
told
well as in other states
and by increasing the
refused to make loans to
Georgia
evidenced by the national cam¬ have
paign in which every bank in the farmers and would-be borrowers
country is participating to fight of farms for speculative purposes,
inflation. ;
*-•' the same type of loan that'these
It has been said that "everybody government agencies apparently
The banks
talks about the weather but no-r are advertising for.
body does anything about it.'' \ In •have desisted from advertising for
this
have
that the best way for them to in¬
Cumberland
Apartments—Mem¬
orandum—The Bankers
Bond Co.,
Inc., Kentucky Home Life
ing, Louisville 2, Ky.
Elk
Horn
Co.,
Electric Co.
Coal
Bund¬
Corporation-
Analysis — Mitchell-Hoffman
Co., Inc., 1424 K Street, N.
Washington 5, D. C.
(Continued
on
page
35)
»
w*
Number 4732
Volume 168
(1005)
considerable period unless buyers
are
willing and able to pay the
§ Fall Business Holds Close to Peak Levels
1
.
Industrial production and business volume
Diverging trends become
prominent.
more
steady.
Commodity prices rising
Opposing factors in the business outlook.
a
new
been successfully met not
because they added some¬
what
to "purchasing
power
but
slowly.
also because current incomes
Crop produc-
Commodity price trends and the best methods of dealing with them have continued
the main center of attention in the current business situation.
They have over¬
shadowed the fact that industrial production and business volume have remained remark¬
to be
is about level.
For
two years
monthly output of all
factories and mines has varied less
than
10%.
Although variations
among different lines have been
marked, the general average has
shown greater stability at a high
level than in any previous period.
production. New orders have been
total
the
coming in faster than they were a
Only a marked change
in? consumer attitudes 'and dif¬
year ago.
ferent
buying policies in
connec¬
by large amounts
savings which had been built
during the war years. /
Although
with
business
spending and
greatly modify the
current rate of
activity.
exports
Price
Large
will
Trends
Most
demand
for
Prominent
goods
and
services is reflected most promi¬
nently in the price level. Not
even
the most powerful forces in boost¬
ing costs,
materials,
either
can
of
labor
of
or
be effective for any
of
up
which
include
number of
commodities, especial¬
ly industrial ones, have been ris¬
ing steadily and are higher than
ever
before.
During
the
last
month, the comprehensive index
prepared by the United States
Bureau
o
*
»
%-i
above
was
of
t
V
i
Labor
VA iTv-
the
%
Statistics
1939,
reached in
peak
rose
which
May, 1920 at the
of
the
boom
.
transactions
increase
has
slowed
what
the
last
in
1%
a
cost
1920
of
peak
consumer
Prospects for Fall business
high point.
retail
prices has been
same
and
ward.
the
.Up
trend
until
is
last
what
are
ac¬
the
tions
are that activity has reached
ceiling established by current
productive capacity, the number
a
workers,: and the' supplies of
material that
The
from
available.
are
major uncertainties, apart
disturbed
the
international
situation, are the possibility that
prices may, be rising beyond the
ability of buyers to pay, that costs
are becoming so high that busi¬
ness cannot meet them,
that the
enormous quantities of goods be¬
ing turned out in many lines at
high prices ^ nd costs may soon run
ahead of demand.
The readjust¬
ment to more, nearly pormal rates
of output after wartime shortages
have been filled is likely to take
place at some time, but the pre¬
cise
cannot
date
be
determined
with any high degree of accuracy.
Already it has been deferred long¬
er than in previous postwar periods
and longer than was generally ex¬
pected.
When
it
need not be serious
tinued
but
a
does
nor
better balance
Buses instead of Bombers
it
come
long
con¬
be¬
AT THE
CLOSE of the war, the huge modern plant
prices, incomes and costs
will
provide
conditions for
a
and sustained prosperity.
sound
TV of The Nashville Corporation (formerly
X^-ville plant Of Consolidated-Vultee) was
The
from the manufacture of aircraft to the
tween
achevements
so
far
in
the
postwar period have demonstrated
durable
consumer
delivered in March, 1947.
converted
production methods of aircraft and buses,
goods and transit buses.
even
drastic-
^
adjustments
to
rapidly changing conditions.
Fourfold
Basis
for
veyors
is devoted to production of buses for ACF-Brill Motors
assembly
Company; the remainder is utilized for manufacture
and electric ranges and frozen food storage
for the Crosley Division of AVCO
High-level
poration.
of
units
Manufacturing Cor¬
;
Predominant
continue
supporting influ¬
to be the
same
as
have kept business good in recent
years.
They are: (1) extraordi¬
nary demands by domestic con¬
sumers who have both the money
The 1,000,000-sq.
enameling ovens and^other special equipment to
to
which
craft
moved
are
being
lines
production
presses,
formerly
now
methods
for
buses.
used
are
now
with
along
the
its products
manufacture
in
large
enable
quantities at
The
Nashville
hundred
as
helping
to
produce
business
for
concerns
additional
for
Corporation
persons,
and
hopes
currently
to
employs
increase
this
fifteen
number
readily available.
This Is another advertisement in the series
published for more than to
years
by Equi*
new
table Securities Corporation featuring
equipment
in the Southern states.
and
machinery;
(3)
enormous
shipments abroad, greatly in ex¬
cess of the
imports received in re¬
turn; and (4) large volume of
economic
outstanding industrial and commercial concerns
Equitable will welcome opportunities to contribute ,to the further
development of the South by supplying capital funds to
sound enterprises.
construction
of all kinds, which,
spite of high costs, is scheduled
surpass that of last year by 30%
and
probably establish a new
Peacetime peak.
in
to
While not all these: forces can
be
ent
N ASH V IL L
D
A
L
LA
NEW
HARTFORD
KNOX VI LLE
ORLEANS
MEMPHIS
considered permanent at pres¬
levels, they do not show
any
some
should
'would
with
few
still
most
ductions
Jin
months.
decline,'
Even
the
rate
fields may be
Securities
Corporation
QH ATTANOOG A
GREENSBORO
AND
JACKSON. MISS.
if
be high as compared
previous periods. Re¬
some
P9^|B]||
BROWNLEE O. CURREY, President.
parked signs of falling off within
the
next
YORK
E
S
BIRMINGHAM
NEW
body
materials for the manufacture of its products become
more
competitive costs.
buy in large
volume; (2) hear-record spending
by
huge
which formed air¬
and the inclination to
plants,
the
mass-
new
Similarly,
shears and drop hammers
components
Overhead con¬
airplanes
ft. plant, established in 1940, has been
equipped with up-to-date automatic machinery, presses,
It
large part
a
parts, windows and doors for buses,
Business
ences
the present manufacturing program.
Almost two-thirds of the available manufacturing space
gas
Because of the similarity in
of the war-time equipment at Nashco is being utilized
in
the
strength and vitality of the
economic system.
They also indi¬
cate the ability and competence of
the managers of industry to make
The first bus to be produced at the Nashville plant was
the Nash-
production of
322 UNION STREET,
NASHVILLE 3, TENN.
retail
Oh page 28)
volume,
physical vol¬
ume of goods produced, transport¬
ed and sold, as welt as the prices
at which goods and services are
exchanged, is currently around
10% higher than it was a year
ago.
Rising prices will push it
even higher, although the indica¬
of
the
up¬
rapidly but recent in-
more
continued
after
Business
year.
includes
still
recently,
tivity around 5% higher than it
was during the corresponding pe¬
which
about
food prices were advancing some¬
the usual seasonal expansion will
riod
or
higher than that
It is 75% higher than
in 1939 and has recently been ris¬
ing at a rate of about two-thirds
of 1% per month. The change in
now
good in most lines and only
Toe needed to keep the rate of
prices
surpassed its
years ago and is
Supporting Forces Still. Strong
very
some¬
it is still
living
two
15%
about
down
year,
month.
The index of
the
take
It is 115% higher than in
and although the rate of
.••••*
previous
high. point
business
place.
be consid¬
can
widely representative of
major part
as
around
large
a
markets, and
ered
price
changes have
been somewhat divergent during
the last few months, nearly all
;
indexes
tion
have been increasing faster than
over
were
reinforced
record.
ably stable at very close to the^
postwar peak which was reached offset by increases in others as
earlier this year.
The plateau on they have been in recent years.
which all activity is taking place Even > though the
quantities of
is still high—over 90% above the goods produced have been
large,
average of the prewar years—and in some lines the unfilled orders
of
whole¬
the level at which the
only
more
sale
have
remain
^0B establishes
This index includes
about 900 commodities in
higher price required.
Increased
costs during the last three years
(From the September «Business Bulletin" of the LaSalle Extension
University, a Correspondence Institution, Chicago, 111.)
,
World War I.
9
TWO WALL STREET, NEW YORK
5, N. Y.
'
10
(1006)
THE
Joins Hess & Co. Staff
60.,
Illinois Brevities
Inc., 123 South Broad Street,
Exchange,
of Horace Hanson
Michener in their
tion.
In
Fitch,
and
the
sales organiza¬
he
past
Crossman
&
was
Co., and Patterson, Copeland &
Kendall, Inc., also of Chicago.
On the same date,
Halsey, Stuart
with
Henry,
Inc.,
McMillen, Rapp & Co.
'■ .i'
Lumber Company
(A Missouri Corporation Chartered in 1884)
& Co. Inc.
offered
(the sole underwriter)
issue of $5,250,000 first
3Vs% bonds due Aug.
an
Increased
Earnings
indicate
serves
and Timber
more
liberal
Re¬
dividend
by Halsey, Stuart & Co.
Inc., and including, among others,
Mullaney, Wells & Co., on Aug.
25, offered to the public $7,500,000
Arkansas
Aug.
ended June
share $3.31
per
for the
1,
Full
detailed
with
compares
1947 period.'
upon
30, 1948, net
•>
'
*
$3.00
ferred stock
940
shares
stock
Approximate Price 19^4
of
class
Commercial
unit.
per
Dearborn 1501
Teletype CG 955
the
one
/
Income 5%—-1952
business
Milwaukee Railway
net
Common
mortgages
*
,
*
S. La Salle Street
208
Tel.
State
'
>;1
9868
\%
*
CG
95
of
for
Robert W.
nounced.
fi¬
period
The
Philip Carey
•
Manufacturing Company
*
V
;
an¬
1948
$81,505
as
com¬
common
Tele. CG 146
underwriting
inois
specialize exclusively in under¬
writing and distribution of securities,
providing investment dealers with at¬
tractive issues for their clients.
taining
own,
retail
no
we
dealers,
department
in
compete
but
Main¬
serve
no
them
of
way
our
with
exclusively.
Correspondence invited.
included,
Co., Julien
of
preferred
stock
(without
value) of Northern States
Power Co. (Minn.) at $102
per
share
and
proceeds
general
dividends.
will
be
The
added
capital
stockholders
company and
for
of
last
Oak
Mfg. Co.,
Chicago-Spring
Winters &
Common
This
current
assets
were
six
31,
high
11
a.m.
on
of
*
"
-
system
13
for
National
issued
the
certifi¬
revenue
to
be
v;, *
2% %
V,v *
per annum.
;
Tea
Co., Chicago, has
subscription
entitling its
common
transferable
warrants
stockholders
of
record
to
purchase
15,
next,
additional
on
common
or
the
ratio
one
common
30,
before
shares
of
stock (par $10
share) at $20.50
of
Aug.
128,230
per
per
new
share
for
shares held. No
net proceeds has been made.
Quoted
Curb
South La Salle
St., Chicago 3, III.
Tel. ANDover 5700
Tele. CG 650-651
t i
♦
*»*i i i i;
•
i 5 i i *•'» So
COMPANY
Specialists in Foreign Securities
208 S. La Salle St., Chicago
4, Illinois
135
s*4*
-
v
&
Telephone Randolph 4696
••
,
at $39 per share.
quickly oversubscribed.
The
a
A A; A: A-
shareholders
5t is i 5>
*.-»■
it-
Teletype CG 451
#155
Sept.
24
consider
(Continued
*
Keystone
a
proposal to
on page
38)
They
Offing!
or
consumers -appears
the
Trust
ern
beef
to be in
Company.
Surveying current record prices of hogs and
the bulletin points'^
7"
during August, the latter became available than in the first
steers,
out that
averaged almost $36 per hundred
pounds at Chicago, compared with
quarter, the Bank states.
"The
decline
in
livestock
$29 in August of 1947. Hogs aver¬
aged over $29, in comparison with
$26 a year.ago.
'
For beef
far
cattle, these prices
slaughter in the past year," ac¬
cording to the article, is asso¬
ciated with the cyclical
cattle
are
above any
previously paid in
this country,
including the 1919
peak. For hogs, prices are also, at
a 7
record
level,
though
only
moderately above 1919, the Bank
by changes in the relationship be¬
livestock and feed prices.
cycle
from
livestock
is ma
the hign
number
feet
in
grain prices in recent weeks tm>
have come with the outlook io
abundant crops, including a
ord
have
chang-1
the
livestock-f^
price ratios, which are indicauv
corn
crop,
significantly
of
the
profitability
relative
1947, the ef¬
fective demand
products is
for
breeding and fattening livestoc
meat
for;; market,"
probably
seasonal
at
and
an
factors
its
all-
"The
report.
Bank
the
that the supp'.
of corn per animal unit will
larger this year than in at least <
at least 2
con¬
prospect is
•
..
.
the
a
of
reached in early 1945.
"The
sharp declines
prices, according to the article,
lies in the factors
w^ich have af¬
fected demand and
supply. With
personal income
payments at a
peak annual rate of
about $210
billion during the first
half of
1948, compared with $190 billion
in ,the
first-half of
from
present, this
phase
downward
level
The explanation of
these record
high,
swings in
hog numbers, induced
tween
At
states.
time
and
same
has
year
total
time,
livestock
actually
ago.
It
is
commercial
years.
meat
of
livestock
and
total
of re
supply
feeds
es
anj
by-product
the year beginning Oct. 1 is
mated to be 16% larger per
mal unit than the last year
pro¬
duction was 7% less in
the firsthalf of 1948 than
during the same
period a year
ago. Tn addition,
marketings
The
grains
declined
estimated
the
largest
on
Summing,
are
record."
the artic
f
up,
,
eludes that "somewhat larger
seasonally lower in the
spring and
plies
summer
than in the fail and
win¬
ter, with the result that
in the
current quarter
10% less meat
of
livestock,
and
quently meat products,
come
not
appear until
«*♦ m*
•
i:
r
.iVJ-
clin
.
v
co
couia
available next year
■
»i
of
Steel & Wire Co., Peoria, will on
J
*■
It
'b-:7
*
...
year after, according to an article in the
September issue of "Business
Comment," the bulletin of The North¬
that
Members New York Stock
Exchange
Members Chicago Stock
Exchange
Associate Member New York
5 -iii
the offing next year
slaughter
ZiPPIN
Chicago,
was
•
Company of Chicago reports present effective
demand for meat and its products at
all-time; peak with \deciines of
livestock slaughter.
Anticipates larger supplies of livestock, and
consequently meat products, will be available in next two years.
At
Common
straus & blosser
■
*
Trust
sidered.
—
v
*
stock of Victor Chemical Works,
Lower Meat Prices in
Northern
share in
fractional shares will be issued or
sold. No special allocation of
the
Sold
1
*
shares of $5 par value common
re¬
Meat at more;reasonable
prices for
Sept. 15, 1948. Interest is
■■
A:
stock.
F, Eberstadt & Co., Inc., New
York, N. Ym on Aug. 12 made .a
secondary distribution of 71,103
Slayton & Co. of Quincy, 111.,
and Keokuk, la.,
recently offer¬
•
water
indebtedness
not to exceed
1948,
Sept.
Sept
$3,500,000
of
j\\
#
preferred
.
sub¬
'
.
i A;: *
*
"
Common
«Mr**
taxes,
to $469,456 on
against $353,860
as
May 31, 1947.
purchase
and
in connec¬
& Co. and The Illinois Co.
,
\
*
States
used
redemption of the
convertible
man
port for the 12 months ended June
a net profit of
$13,891,3.88,
after provision for Federal income
BONDS-SHARES
Disintegrating
15,000
30, 1948
rose
SOUTH AFRICAN
—
*
Chicago,
the
following Illinois bankers will
participate in the offering: A. G.
Becker & Co., Inc., Central
Hepublic Co. (Inc.), Harris, Hall &
Co., (Inc.), Bacon, Whipple & Co.,
William Blair & Co., H. M. Bylles¬
by & Co. (Inc.), Farwell, Chap¬
The offering was for
account of selling stock¬
*
equivalent
to 26 cents per share for the six
months ended May 31,. ,1948. Net
.
Bought
which
with
5%
share.
Co.,
was
Common
...V-"':
of
wkich will be
with
BRITISH
Portsmouth Steel
Metals
per
;
May
Crampton
Detroit Harvester
re¬
The
New York Stock Exchange
Aug. 19 at $29 per share,
plus a commission of 75 cents
Crane
new
Common
Texas Eastern Transmission
stock
same
year.
each five
Lake, producers of parts for elec¬
1937.
the
$130,period last year.
Net profit, after
taxes, was $116,027, as compared with $78,253
;*■
its subsidiaries.
common
underwriting
syndicate at
per share, the net proceeds
AAAAA'AA-i tion
placed
privately
18,334 shares were sold on
under¬
~
Chicago
$
sidiaries in the United
compared
253 for the
>
of
As
472,,
through
an
and
on
the
'
period ended
Sales reached a
dated
the
Co.,
without
an
profit records
broken'
during' the
cates
the
program
of
to
&nd
works
the
required
14
were
$1,148,212, compared with $827,-
til
net
to
offered
cago will receive sealed bids un¬
funds
construction
120 South La Salle Street
Sales
$203,527,
;
stock.
were
The unconverted
common stock
be publicly offered
stock of International Har¬
and
the
con¬
389 last year.
Profits before Fed¬
eral and State income taxes were
2
par
new
being
are
1948.
Co.
&
*
"
shares
debentures, the proceeds
help defray the cost
months'
among
Collins
14,' April
*
vester
'
The City Comptroller of Chi¬
Farwell, Chapman & Co.,
on
Aug.
12
publicly
offered
200,000 shares of $4.80 cumula¬
tive
*
have authorized
$150,000 10-year 5%
;v
of the company
and used to provide
part of the
FLOYD D. CEKIF CO.
-
headed by Smith, Barney & Co.,
which
year and
Inc.,
of
again
and
We
*.
,
syndicate
common
will
were
holders.
V
may be con¬
before Sept. 16
into
served for such conversions.
White,
Weld * &
Co.,
New
York, N. Y., recently completed
the sale of 33,334 shares of com¬
outlay
the
on
and
total
a
$1,500,000 this
intervention
writer.
>
others, Harris, Hall & Co. (Inc.),
II. M. Byllesby
& Co.
(Inc.),
William JBlair & Co., the Ill¬
Serving Investment Dealers
for
May 31, 1948,
year.
Ait
each
the common since
on
A;A-v;'A'A
tures
gain
share, after $83,300 preferred divi¬
dends, in the same period last
Street'Chicago 4
v
of
preferred dividends,
pared with 37 cents per
Members of Chicago Stock
Exchange
;
Cyclohm plant and increase
working capital. These deben¬
sales
Spring,
for
Williain A. Fuller & Co.
Tel. Dearborn 5600
calls
vertible
the total of $35,-
for
The
Jan.
on
mon
tries,
sale
amounted to 63 cents per common
(Analysis Available)
209 S. La Salle
profits
York.
The directors of Howard Indus¬
thecorresponding
share, after deduction
Common Stock
New
*
in
Net
com¬
"
1947, while the 1948
January-June net profit of $303,643 was $90,680 over the
figure
for the first half of
1947.
—
of
next.
59-year-old firm,
over
for
cents
shares of
shares
of
Co.
of the
a
the
on
share
or
Aug. 14, 1948 there
954
time, George A.
Chairman, announced.
Payments of 30
to be used to
Jackson, President,
dividend
a
of
it inadvisable
stock at this
Eastwood,
.
Armour & Co.
Sept. 2 deemed
idends
which
;
This represented
$1,721,877
752,814
TRADING MARKETS
the
The directors of
on
tele¬
through
cf
stool
$26.25
of about
and
season
facilities.
made
company's
of
—
privately'
share"?
preferred
of Illinois
,
■
than 200,000
more
the
record
CHICAGO 4
$50)
Power C„
have been called for
H, due Aug. 1, 1978, at 101 and
redemption
on
Sept. 17, next, at $52.50 2
interest
with
seven
insurance
-companies.
The
net
proceeds' share, plus, .accrued dividends of
32% cents per share, at The
wiU be used to help meet costs
Chase
National Bank of the
of
improving
and
expanding
City of New
net proceeds will be used to pay
for
a
construction
program
*
spring
(par
3% bonds, series
outstanding
convertible
July 15, this year, .the first div¬
lish
new
5%
3lA% first mortgage bonds due
Sales of Aldens, Inc. for the
a
first mortgage
Tele¬
independent
placed
semi-annual period ended, July 2,
1948 totaled
$37,474,691 to estab¬
Brailsford & Go.
All of the
& Co., New York,
issue of $20,000,000
an
in 1975 with the Mutual Life In¬
receivable,
instalment
contracts,
warehouse
receipt
miscellaneous loans..
Stock
Y.,
to declare
surance
Its
concerns.
chattel
N.
Central Republic Co. $500,000 of
cor¬
operations
Consolidated
Co.,
thZ
n ine
1946.
year
last
Co.
Kuhn, Loeb
current liabilities
mon
has
pro -
nancing activities fall into five
principal
classifications:
Ac¬
loans,
•' $3,885,157,
Steel
Inland
placed privately through
phone operating firm serving a
counts
Chicago, North Shore &
The
month
population of
manufacturers, distributors and
other
Corp.
current
,S
in
15,
May 31,
of
vari
clothes it
a net profit
after taxes 'a,
charges of $29,411 for
thc
1947, against $27,226
in the
pre
ceding year and $16,317
Each
Illinois
line
had
last
on
capital and used for general
porate purposes.
lor
a
„
&
overalls, work shirts
and
types of work
verted
phone
0r&
ous
two
pre¬
The corporation is engaged in
busines of providing funds
Utility
June
as well as special
parts made to
specifications.
the
Central Public
period
tie
Irwin-Phili
was
purchased. The
manufactures and sells
$123,-
against
same
Co.
year.
button switches, vibrators, record
Schangers, tuners and condensers,
ceeds will be added to working
CHICAGO 4, ILL.
holders from
whom
stock of
common
deben¬
at
to
the
in
698 045
operation of $910,129.
The principal products of the
company include rotary and push
Discount
The
with
$ib4,3b2,lU8,
to
eu
from
share of prior perferred and two
shares of class A common at
$50.25
$500s wui°h0' wit!ian
$90,590 note" due
to'the^w®
common
A
Corp., Chicago, in units of
Comstock & Co.
general
and 11,-
(par $50)
of
amounted
on
assets
issii*TH?"
an
The offering has
York.
5,970 shares of $3.50 prior
available
Current
compared
in¬
and
redeemed
were
1948
Light Co.
bonds due
*
•
convertible
1948.
Julien Collins & Co., Chicago,
on Aug. 17 offered to the
public
request.
231 So. LaSalle St.
3%%
tures
fund
1948
5% cumm 4-°'"
participating preferred
stort V«
National Tea Co. reported sales
sinking
,
"
information
&
1978 at 101.07%
; •
■"'.v Vv"';
„
months
Power
mortgage
terest.
payments.
Six
for
597, or $2.77 per share for the
preceding year. • The remaining
$232,000 outstanding 10-year 5%
headed
first
„
and will partially
heretofore expended
industry, for the year ended
of $20,415,006 for the four weeks
31, 1948 reported sales of
$10,738,885, and net profits after ended Aug. 14, 1948, as compared
with $15,720,008 for the corres¬
taxes and charges of $1,136,760, or
$2.52 per share,; as against sales ponding period in 1947. For the
of $12,138,279 and net of $1,247,- current year to date, sales amount-
ice Corp. at 102% and interest.
Another group of bankers, also
of
COMMON STOCK
ed to the
public
000
shares of
May
~
4
funds
cash
the
to
of the company
tronic
mortgage
I, 1978 of Wisconsin Public Serv¬
The Long-Bell
added
be
corporate purposes.
been underwrit¬
mortgage 3% bonds, series B, due Aug." 15, 1973, at 100.526% and ten by Hemphill, Noyes & Co. and
interest.
Included among the participants were Dempsey & Co.; Merrill Lynch, Pierce, Fenner &
Detmer & Co., Alfred O'Gara
Beane, both of New York City.
the associa¬
announce
Thursday, September
restore cash
Halsey, Stuart & Co. Inc. and associates on Aug. 19 publicly of¬
fered $25,000,000 Southern California Edison Co. first and
refunding
Philadelphia Stock
tion with them
CHRONICLE
FINANCIAL
&
will
PHILADELPHIA, PA.—Hess &
members of the
COMMERCIAL
but,
early 19oU.
.
A
Pio-pnblic Labor Program ||
Nationalization in | Norway
'
V V'
By MAURICE J. TOBIN*
:
'
By JOHN BRUNAES*
Secretary of Labor
_
Mr. Tobin affirms
policy of developing free collective bargaining and
working condiiions, benefiting farmers and businessmen as
better
well
Norwegian industrialist reports his country's industries face widespread nationalization.
; Claims that while labor governmeht has no such mandate, such socialization will be
gradually accom¬
plished. Scores two-sided trade > agreements in Europe, and calls for their replacement by mtilti-
the
and
men
whose labor has made
women
mighty nation.
a
us
It
certainly is a great 'honor and an extreme favor, on an occasion like this and before
an
assembly of so prominent representatives of the economic life of the United States of
America, to be given the privilege to say a few words.
May I therefore start with ex-
We have been
—
looking both
living in the world and
ways''today—
omy which, if relieved of the in¬
flationary
pressures. that
have
friend
Mr.
Schell
my
forced
most
backward
t
determine
o
our
can
progress over
the years, and
ahead to
and
United
healthy
lieved
pros¬
t
e s
a
tion
lished 66 years
ago in
York
New
City
upon the sug¬
gestion k of a
great
Maurice
trade
•
unionist,
Maguire. /•"
After
the
first
celebration
it
spread rapidly to other cities.
Soon it became
day:
Today,
States
have
v
that 'there- is
what he called,
dustrial
spirit,
it
Ma¬
as
I quote: "The in¬
the
-
vital
great
Organized Labor
'
|
•a
is
influence
national
[place
have
taken
Our ;'i industrial
has been shaped by the
together.
the will of American workers.
of
nomic
1 :-*"r4' •' "■"
tion
to
potent
a
lasting world
the
As
the
*Labor
.
of
sys¬
in
supreme
war
{skilled
\
<
their
radio
trained
c
make
workers
occupations."
\
\ s
for
'
The. skilly energy and devotion
;
of American workers helped make
the
•
efforts,
highest standard of
Day
available
for total and
peace.
result
have
we
us
power
•
devo¬
duty under this free
tem have made
and
•
of
speech
forces of democracy unbeat¬
able on the battlefield.
I
This
skill,
same
-
energy
and
patriotism has played a major
ipart in the successful manner in
'
Secretary Tobin; Sept. 6, 1948.
(Continued
34)
on page
to
'• ' Pacity
from
[
to
standstill
a
find
but
themselves
complete
less
destruction.
faced
than
The
not
made
confusion
nothing
picture
for
with
and
a
later
so
should
be
drawn
Might it only be
decision, taken early 'in
1940, to resist and to fight against
the foes, of every nation believing
(in real democracy and complete
Imediate
Specialize...
in
| There
European Recovery Program.
nomic life which
On
the
casion
bor
oc¬
of
La¬
Day,
again
the part labor,
at home
and
abroad, '
1
a
b
a
part
Pro¬
es¬
tablishment
in
of
recognized
and
fore the
Paul
G.
Hoffman
offices of ECA
„
.
.
believe, the impor¬
we
tancetasklabor in the present
of
cial
aiding
in
Cru¬
European
recovery.
We
struck
likely,
f
Norway
more
which
the third
and
modern
biggest in
undebatably the
and
specialized
during Hhe
this
2.5
However,
War;
important
even
and
?An address
European
economic
life
forbidden
to
million
negotiations
during 1 the
'contracts
Havana, when all delegates for
in
the
were
hands
can
be
improved..
United
group in the
worked
has
support,
whole¬
more
harder
for it,
or
understood it
oetter than labor
organizations of
America. What we have to do now
.
set
higher. We
must join in the mutual
objective
°t
,recovery—not just recovery to
old
our
standard,
movement,
*+u°i
V1th
JL
a
but
a'
forward
revitalization of the
*ree Pe°Pies °f Europe
higher objectives than
electrometallurgic; industry,
;
Time does not permit
into
detail
on
industries in
all
the
my
interfere with
all
enterprise
—
v
of
their restrictions—
have
for 1TO.
Failure of European Trade
different
'ex¬
they have been re¬
would be most
vived. However, I
The lines by which the
trade of '
Europe is practiced today, leading
critical point to another
questions
from
one
might have on either Nor¬
way^ export or home consump¬
have
already proved to be a com¬
to
answer,
any
you
tion^
(
:
i
.;'
i
'
Norway has—as might, be well
known
joined in all the «endeavors of the leading democra;
plete failure. These so-called bi¬
lateral
agreements mean the op¬
posite
of
prosperity
and
—
matter-of record only. This Ifote 'has been placed privately through the
an
institution
purchasing it for investment.
undersigned
:
$10,0(10,000
Promissory Note.
due
August lj 1965
unification
of
the
coun-
Europe for. mutual help¬
peaceful and a stable world, but
back :of il all.c.omes the recogni¬
there
cannot
peace
here
source
of
we
prosoerity
be
unless: there
strengthening
which*
part of
and
that
a
in
the
Europe
great
is a
of the
tradition
have inherited—of free¬
dom, liberty and
common man.
Th e Fi rst Bosto n Co r no rati o n
and
the dignity of the
September 8, 1948
sound
(Continued on page 30)
piahity and the. desire to have,a
we
are
all
Civilization
,
against
term. Among the American
'motives for the support of this
program, are the elements of hu-
that
*
free-private
changed the
picture. I was one of these eco¬
nomic delegates in London, and
though many an unexpected de¬
bate took place there, I still kept
the hope of success. I regret to
aiming
,
to get out of
extraordinary outside
assistance at the end of the four-
Western
with
single interest to resist and
destroy paragraphs which would
The Carborundum Company
America.has offered aid under
a four-year program. The time is
short. The urgency is great. Our
tion
*
going
Norwayf and the
tent to which
.
of great
I
ever.
® American people hope for a
greater
ies
sights
say,
the
year
say
given it
to
to
so
and
the
left entirely in
officials laden
of
living cohditipnk pf Labor caii 'be
program, no
states has
ls
were,
appear,
were
recovery
extending
hearted
prominent
steps. The deplorable happenings
placed wherever possible, mostly
with
Swedish
shipyards. These
ships are being [delivered at a
Speed which will make it possible
jdurihg t^e ;year of T952 tc) reach
A higher figure in 'tonnage "for
bur 'merchiitile naby than in 1940.
with
your search for
in which the standards and
ways
that since the; be¬
ginning of the European Recovery
-
peace,
leaders of Norway's economic life
did their utmost to support this
valuable organization on its first
—
Losses
tons.
the only solution to "
as
prosperity
one-
half- million.
to
•enterprise
.
the total tonnage was 5 and
happy
heavily,
than any of the smaller
aim is for America
can
war t
being whole- *
believers in free, private
tion to step across state and coun-
Paris
of
be expected of the fu¬
This announcement appears as a
{ry boundaries in
Washing¬
ton
signifies,
comes
hearted
assistance. It has been your tradi¬
-
both
the
in the
labor- movement
divi¬
o r
sions
;
*
in all countries. And
for all individuals with
Of our export: industries, the
mentality of' responsibility, t£T wood-group; is far the most im¬
Ithink, to speak, to believe, and portant, including pulp and paper announce that after Havana I can
to
do
what everyone considers manufacturers on a bigger scale.
see no solution other than a com¬
is
the
right
and
appealing,
involved. Another
hydroelectric,
plete reconstruction of the Charter
Norway in a very heavy burden chemical; and still another is the
program — farmers, businessmen,
Scientists and; educators. .In all
these "groups,
the international
Re-
covery
group
Then
and. industry.
| All organizations can play a great
c a n
gram. The
1
Services, and people,
yin the
European
The second- big
it he.world
coming from the many-sided in¬
of officials, so to say,
terference
a
appropriate to
P
fundamental
are
of
best. be. Puilt on
greater amount of intra-European trade, greater removal of re¬
strictions to the flow v of goods,
us
state
life
of Europe.. can
it
to
appears
the
London, that here was an op¬
portunity, a chance to get rid of
quite a lot of problems forth-'
eco-
'a
by Mr. Bruriaes at
lunchepn of New York indus¬
fulness. They feel that the future trialists, Sept. 1,1948.
The text of the memorandum follows:
three groups of
are
freedom
ture, the extensive losses,
Hoffman, Administrator .of; the Economic Cooperation
Administration, in a memorandum to his labor advisers on Sept. 6,
strongly, stressed the national and intematiohal role" of labor in ' the
organiza¬
Norway sent delegates to
ion was, after having studied tho
first drafting which was discussed
how
war. reduced
(considered that the clean and im-
ever may
G.
much
Organization.;
economic
these
limited
Our
fno^t
kbly for generations ahead; "What¬
European Recovery" Program.
Paul
a
NorwAy'S mercantile fleet be¬
complete
.
Trade
leading
groups can be extended in spite of
endeavors to modernize and
of
main
a
figures showing
clearly and
today.
The
tions of
London in 1946, to Geneva in 1947,
and finally to Havana. The opin¬
fishing.
occupation have been
which
you
races.
took
be
population
not above 3,000,000 it will re¬
ing
Only
them
repeatedly
they niay be. left outside the
bo
time it should
same
{exported.
the ? result of 'the five years
so
the
js shipping, combined with whal¬
population for years er most prob-
greatly Assist
tan
At
quite clear that with
py government and carried by the
Declares international labor movement
.
distinct
Norway. First is
agriculture, Of which not much is
important'
every,
iwhich will have to he
Hoffman Commends Labor
and
goodwill between all nations and
ca-
of economic life
group
{production, and helped to
'
and
its
.
racy.
work
and
modernize,
thei time before an; invading ag¬
to
gressor 3 ruthlessly ibroughft • the;
to the luster of American democ¬
to
stand-¬
rebuild its
Brunaes
ditions, brought about more stable
conditions
of
employment ' and
political, has added much
will
' eco¬
endeavors
John
well
Their
■
way,
'stated
♦
n
in g of Nor¬
improved
>
o
be*the:
present
and more of
as
i
t
n
would
[collective; bargaining., They1- have
wages and working con¬
way
ternational
e
m
Their will for the blessings and
benefits of freedom, economic as
;
also
to
extend, to
to invest, is so clear,
within all groups ,of
confidence
importance for the economic life
,was
processes
but
re-establish
'of my country.
jlhe direct monetary loss which
the
rebuild
revival, which is the only
a
to
feo
|influence" winch^ Unions have exthrough
overcome
through sacrifices
and. sufferings, particularly be¬
cause
the intention not only to
J
_
For
that
reason
Norway
part, and wholeheartediy, in
the
proceeding leading to the
drafting of a charter for the In¬
,
terted
really
ibe
,—;
cies of the world to bring to trade
lar interest to
Sending within
Jtise Of
1_.—
bound to
are
'
might
be of particu¬
't
What
of
system
force of every nation."
The industrial spirit
grateful-
ness!,
strength in
■; ) 3.
■> :
The rise of industrial America
guire suggested, paying tribute to jand'the rise of organized labor as
observe
we
heartily
jtban 15 Vz million, workers,. the jwell-fqunded . and Consolidated
(highest" in^htstory.'
.;
jprogrampf modernizing and ex-
national holi¬
a
felt
always .be¬
Independence, they have
put their, faith into practice by.
forming and joining unions' to.
raise the Wages and improve their
working conditions,
J. Tobin
f From these early and sfnalLbe?
ginnings have borne the organized
Peter J. strength of today's labor move¬
ment with a membership of more
y
b-
a
hori¬
I /
x*
:
Since the time of the Declara>
i
D
peaks,
to meW
unity.
.1
Labor
was:
a
all-time
to
forward
pressing Ur*>—
——^-*4my honored
countries of Europe,
•
econ¬
prosperity and stability. ;
Working people " bf, the
The
progress
perity.
prices
move
zons of
plan
continued
for
;
an
lateral
j v'.';"
Today .is the fourth Labor Day since the victorious end of World
War II. '.The American people have gathered in their communities
throughout the country to pay tribute again to the accomplishments
of
*
Prominent
workers. Cites labor's active part in ECA, thus contributing
to World peace and prosperity.
as
Former President, Norwegian Federation of Industries
:
12
(1008)
THE
COMMERCIAL
Labor's Goals
Bank and Insurance Stocks
By H. E.
Thursday, September 9,
1943
CHRONICLE
FINANCIAL
&
MURRAY*
By PHILIP
President, Congress of Industrial Organizations
JOHNSON
3
'
are
■
One of the principal reasons mentioned in
recommending the
purchase of insurance stocks at this time is that prices for the shares
low in relation to the general market.
are
/''aC/V,
on
staged
ance
midst
the
of many companies.
sources
In
a
number of instances
to be obtained through the sale of stock.
•
new
capital have
payments.
As
result
a
that
factors, insurance stocks did not fully par¬
ticipate in the general rise in stock prices between 1942 and 1946
lagged behind other industry groups.- At the present time fire
insurance stocks are only about 42% above the low
prices established
in 1942.
At the same time the Dow Jones Industrial
Average has
rise of
a
100%.-
over
i/i/'/p'''.
Furthermore,; insurance
33
discounts from
their
stocks
estimated
are
now
selling at substantial
liquidating values.,* While it is not
unusual for these shares to sell at modest discounts from their exist¬
ing liquidatingVvalues, the present discounts, averaging
and ranging up to 48%, are abnormal. -
30%
over
The following tabulation for a
group of selected insurance com¬
panies shows current market price, liquidating values as of Dec. 31,
1947, market price as a percentage of liquidating value, 1947 net
operating earnings, present annual dividend, and current yield.
v::..
■
Market
A
:/./ /V'/ •::
•
.
Market
Liquidating
P-ice
Value
!:
• ■;
9-3-48
12-31-47
'
of
/
:
1947
%
as
Current
Net oper.
liquidating
value
dividend
/
i:; $
Agricultural
%
2.13
1.80
62.3
-4.52
3.00
Our
67.91
82.2
5.50
2.00
5.86
2.20
5.42
2.50
61
75.46
55;: 3
__
84.93
Fire Association
Fireman
(Newark) 13%
Falls.
_
_
64.8
21.16
43 y4
_
i
80.8
/
65.6
/Hanover
Fire
Hartford
Fire
30
43.89
/ 4.44
2
28%
____
Home Insurance
41.40
27%
Ins. Co. of N. Amer.
0.50
3.60
3.70
National Fire
New Hampshire
1.54
1.20
2.29
71.9
3.48
1.30
4.77
87.4
7.71
3.00
3.14
Ins.
Providence
|st.
29,94
"
82.2
-
-2.14
H; A
built
We
soil
our
2.00
4.88
We
have
1.0QV;
4.44
3.00
3.87
have
1.71
1.40
4.38
built
placed
2.65
Insurance 25%
45.75
55.7
1.39
1.40
5.49
of
75.0
74.15
67.4
f
2.55
;
1.90
4.55
2.00
3.98
reports
as
subsidiaries of certain companies are not issued and
rate per share data cannot be
presented.
on
accu¬
However, liquidating values
estimated to be between 8-10% higher than
December 31st
with part of the gain
coming from undistributed earnings and the
rest from gains in
portfolio values as a result of a generally
higher
are
now
stock
ancy
market.
This additional
gain in assets increases the discrep¬
market prices and
liquidating values.
between current
( ..From the above figures it
can
be
seen
there is considerable
on
badly-treated
educational system falls far short
4.00
of Dec. 31, 1947 were used because interim
meeting the needs of the
have
built
a
this
country—a la¬
bor movement that has
the working and
improved
living standards
of
millions
and
has
served
bulwark of democracy.
Legal Shackles
But today
as
\,
are
Continental,
St.
Paul
somewhat higher.
have in the past few years acted as de¬
insurance stock prices are now in the
process of being
corrected.
With a more favorable outlook for
earnings and the
prospect of larger dividends, an appreciation of insurance
stocks is
possible which will restore a more normal
pressants
on
relationship
market prices and asset values.
v;
;••
Labor
on
the labor movement
(Special
Insurance Co.
to
L.
M.
added
Request
Helen
Ralph
Bulletin Sent On
The
BEVERLY
-
We
to
Waddell
have
cine and
*
Stock
HILLS,
Diehl, and
Hutcheson
&
staff
have
of
been
Herrick,
Reed, Inc., 8943 Wil"
1 ■'
•
-
■
Telephone:
BArclay
Exchanre
7-8500
•
(Special
Bell Teletype—NY 1-1248-40
(L. A. Glbbs, Manager
Trading Dept.)
.FOOT
E.
to
The
Financial
WAYNE,
Chronicle)
IND.—Harold
Sheffer has been added to the
staff
of
Foelber-Patterson,
Lincoln Bank Tower.
Inc.,
i
We
can
remedy them.
We
can
We
make
can
what
the
United
;
States
want it to be—what the
States should be.
-^
we
Unted
vember 2.
We must vote into of¬
fice
men
and
women
who will
seek to make the American dream
of peace,
prosperity and equality
true.
come
today a large portion of our
population lacks adequate health
and
medical
services
they cannot
cause
simply be¬
for them.
pay
are
envied
of our own people
adequately housed, or ade¬
quately fed, or adequately clothed.
many
Please
me.
I
do
am
ferring—that
has
not
ord
of
such
tion
misunderstand
made
the
a
United
short
has
States
magnificent
achievement.
nation
a
not
not saying—or even in¬
has
gone
time.
provided
It
No
so
rec¬
has!
so
No
far
other
many
in
na¬
one
man¬
in which the committees
have
abrogated the civil rights of the
accused and have engaged in
char¬
acter assassination on the
basis of
rilmor
and
evidence - which
no
self-respecting court of law would
accept.
My
1.
,,
,
complaint, too, is. against
this
investigation as a
.
using
smokescreen
behind
which
some
political leaders hope to hide their
"do-nothing" record on pressing
domestic problems.
J y. K
Perhaps
Labor Day I
this
on
should have been content to talk
about the many achievements of
our
organization—the CIO—
own
and the other trade union groups
of the country, for these achieve¬
ments have been many. /
But
so
country's problems are
and so great that I felt
to speak about them
our
many
compelled
instead.
And the things we have
achieved—human
dignity for the
worker, a higher standard of liv¬
ing, a greater measure of security,
an
appreciation and an under¬
standing of democracy—will
tions imposed by the poll tax. We
can give real
meaning to the civil
rights provisions written into
Constitution.
solve
economic
the
accept
a
mistake to
sooth¬
grave
of
words
the
who prattle about
sayers
entered
a
period
our
prosperity, and those who
all
we
educational services.
is
to1 let
and
power,
,://
the
intelligent
however, are two
tirely different
use
that
say
have to do to achieve peace
have
Russia
her
way
abroad/'
High
en¬
things.
hav¬
lasting
of
ing problem, to provide all our
people with decent medical and
of
van¬
failure to
bankruptcy.
It would be
ing
our
pressing problems eventu¬
hurls us into political and
ally
our
We have the power to curb in¬
flation, to solve our vexing hous¬
been drying
prices have
purchasing power at
up consumer
alarming rate—and that's what
happened before our last great
an
Concentrated in the hands of
the few, power is
dangerous. Dis¬
tributed among the
many, it is de¬
sirable.
depression,
Russia
will
of
ture
me
of
The
deep
our
gaged
monopolists
are
on
the
in
•
■
'/J:
been
imposing her
conquered people of
Europe and is now en¬
a "cold war" with the
Western allies.
Two
concern for the fu¬
country.
1
v
has
the
on
much
-
political parties have
new
sprung up in this country.
of them follows closely the
One
line
about it!
laid down by the Kremlin and
other is built on. opposition
up
civil rights.
march,
1
and
make
no
mistake
They have been gobbling
independent factories and bus¬
iness houses at
an
alarming rate
during the past eight
years.
Their spokesmen dominated the
Congress—the Congress that
no real
attempt to curb in¬
flation, to increase the minimum
wage, to broaden social
to provide for slum
security,
clearance and
low-cost housing.
This is the
Congress which at¬
tempted to cut the heart out of
a pretty picture—but
necessarily a picture of a
hopeless situation.
It
Taft-Hartley Law.
This is the law
that tipped the scales
strongly in
favor of
management and is im¬
posing
"government
by
The
relief,
earner.
I
I
to
the
some
have
American citizen
c.a^ attention today
sensational
Congressional
been
staging.
investigation
committees
wise
of
the
in
rights and
privileges I mentioned earlier.
In
little less than two
a
from
now
will have
an
months
of the nation
the people
opportunity to
to office those who
elect
represent the
best there is in America and re¬
move
from office those who
fallen down
I
on
have
their jobs.
take
opportunity.
hope, sincerely, that they
full advantage of this
With Merrill
-average
wage&■:&'
:
V/''-.
believe I would be
remiss in
if there is one--
use
the
■
remedy,
the
wealthy and little
for
not
surely must be—lies
injunc¬
tion" upon the
nation's workers.
This Congress
changed our tax
structure so as to
provide much
relief for the
is
and there
real
the labor movement
by passing a
monstrosity called the
the
to
it is not
80th
my duties as an
casting System from Wheeling.
West Virginia, Sept. 6, 1948.
objective be¬
commendable
ish into thin air if
good
"♦Labor Day speech delivered by
Mr. Murray over Columbia Broad¬
a
and other forms of discrimination.
We can remove the
voting limita¬
legalistic
not
stated
is
/r: We must stamp out segregation
made
Yet
routing dis-
ner
,
We have the right and
duty to
go to the ballot boxes next No¬
of
My complaint is against the
.
em¬
make the needed repairs on our
political and economic machines.
we
and surgeons.
are
CALIF.—
Craig, Elise
the
Chronicle)
With Foelber-Patterson
1*0 BROADWAY, NEW YORK 5, N. Y.
great advances
have produced many
world's leading physicians
other
Member* New York
made
in the fields of science and medi¬
But
Financial
shire Boulevard.
Laird, Bissell & Meeds
....
by the rest of the world.
Herrick, Waddell
Fireman's Fund
.
veloped technical skills
Three With
.!•
We—the American people—are
largely to blame for these wrongs.
gives
Our great natural resources, our
great factories and our highly-de¬
<s>
-
1
It is the concentration of
power
in the hands of the
few which
is burdened by
legal shackles that
threaten to make it ineffective—
between
V
,
it
a
„
of the
America,
Hampshire
which
'a-.
•-
peo¬
labor
great
Fire & Marine and New
factors
1
Concentration of Power
We
that threaten its eventual destruc¬
tion/1
The
•'
their
cause
:
ple.
variation in the figures for different
companies.
All are selling
below their respective asset values with
the largest discounts shown
by National Fire and Security Insurance.
Most of the companies
sell between 65 and 75% ; of their
liquidating values.
Others such
as
Insurance Company of North
::
'
and too few for the great masses
of our people.
A
Power
our
movement in
Liquidating values
schoolhouses
high premium
a
2.00
55.69
sorely
are
throughout the nation. We have
established colleges and universi¬
ties
and
technical schools.)/We
9.07
■
people
our
99.7
50
>
pressed in their struggle to obtain
the bare necessities of life.
75.70
1.
great quantities
fiber.
75%
Springfield F. & M. 413/4
from
nation to the other.
produce
knowledge.
But
today
U. S. Fire
stretched
concrete
We have outstripped the world
production.
And yet: today
4.55
2.00
/
1.72
have
on
6.03
70.0
are
we <
great industrial
of
our
of food and
1,52
45.72
democracy.
like
Wtf have sent out airplanes hur¬
tling around the world, and made
;
67.5
Wash.. 32
/
ribbons
side of
75.2..
114.86
feel
us
millions of
51.9
i
49.85
22%.:
77%
Paul F. & M.'
Security
84.74
.
R\ver Ins.—
I
109.24
of
have
4.21
2.50
41
Phoenix
4.00
.
11.87
44
North
1.20
37.91
95%
do not have peace,
we
have too little
enterprises.
one
68.8
;
democracy
throughout the world
today
we
4.55
;
79.0
•
to establish
peace
great
137.92
109
wars
but
3.61
1.60
,
: 2.89
68.4
Day celebration in 1882. Each has
deep scars on us. We fought
these
Most
'
Great American
gone> through
that first Labor
left
We
2.25
82.3
•/
52.58
has
since
wars
3.56
0.67
^Fidelity-Phenix
nation
three
4.52
70.6
.
Too many of our office-seekers
now work for the vested interests
0.70
/
21.96
■
-
ployees like machines instead of
like human beings. •' "
•; !
lighted.
15%
-
about
much
too
favor
in
.
^
n,
live.
we
I'm
royal people from government.
;
I have no complaint to make
;a
as
too often have.treated their
4.92
.
Our
•
things—and about what the fu¬
ture may hold for us—that I want
to speak on this Labor
Day, 1948.
%
4.02
;
-Our giant: industrial enterprises
Philip Murray
sitting on a powder keg and that,
perhaps, the fuse has already been
Ins.__. 56V4
J Continental
Glens
-
:
i
for
More
People!
It is about these
Yield
$
68.7
i 97.93
Ins.__ 61
American Insur.™
'&
•/:$
alter
this
nation
and
65.14
Aetna Insurance™ 443/4
'
o c-
to
which
and
"
■
i-
then
Annual
earns.
a v e
we
nation, have often
- emphasis
on
property rights and too little em¬
phasis on human rights.
;
Too frequently- we have per¬
mitted the wealthy and the power¬
ful to trample on the poor r and
the weak. - \';-V
-1""-V
w e r e
greatly
,
rv.-;■
We,
placed
curred since
■
but
Much
Do
.'
%
many things
that were bad
—h
—
and
Can
We
good—and'
of these
and
shown
fields
many
v
Disloyalty Issue
They say their "investigations"
have not pre designed to rout
disloyal peo¬
ple from governmental
agencies—
done enough.
eight-
The
•
made great strides in
fight to estab¬
industry.
■' 3.
people.
so many
We have
a
Many things
generally restricted increases in
: •
things for
tne
of
construction
While investment income has been increasing because of larger
dividend payments on securities held, the unfavorable underwriting
for
was
in
the
icies.
figures and need
It
hdur*.day* in
building
,
.
tion.
lish the
funds had
These considerations have also been reflected in dividend pol¬
^
property rights,
on
Sixty-six years ago today a comparatively small group of trade unionists paraded up
Broadway to Union Square in New York City.
They then weirt to Elm Park for a picnic,
musical entertainment and speech-making.
(That was Americas first Labor Day celebra¬
In recent years a number of unfavorable factors have combined
to influence the market for insurance stocks.
Since 1944, fire insur¬
underwriting operations have been generally unprofitable. . Also,
large growth in premium volume has strained the capital re¬
too much
with concentration in the hands of the few. Alleges "the monopolies
the march," with their spokesmen dominating the 80th Congress, which tried to cut the heart
out of the labor movement by passing "a legal monstrosity called the Taft-Hartley Law."
emphasis
With the first half year figures of fire and casualty companies
generally showing favorable results, an increasing amount of atten¬
tion is being given to the investment status of insurance stocks.
'
has made unprecedented progress, it has placed
Union leader states that although nation
This Week—Insurance Stocks
(Special
to
The
Lynch Co.
Financial
Chronici*)
ORLEANS,1 LA.—George
Dorsey has become affiliated
NEW
P.
with Merrill Lynch,
&
ner
He
iana
Pierce, Fen-
Beane, 818 Gravier
previously South
was
Street.
Lou;r"
sales
representative
Kingsbury & Alvis,
Volume
168
Number 4732
Graham, Lasser and Silverson will participate
New School ••Vv--
THE COMMERCIAL & • FINANCIAL CHRONICLE
(1009)
'
Labor and Inflation
as
*
guest speakers at
'V/..
The New School for Social
Research, 66 West 12th Street, New
York, announces a 15-weeks' course, "Investment Today: Its Princi-
This
announcement
is neither an
offer
to
NOT A NEW ISSUE
*
-
nor. a solicitation of an offer to buy
made only by the Prospectus.
sell
The offering is
any
of these shares,
■
.
•
,
„
100,000 Shares
|
Verney Corporation
Common Stock
.1
,
(Par
i
J
^
^
iK;
.
•
7
'
1
V*
'
*
*
:
h:-ii
''
Jvlf* •^t.
>;
tV*
'■
V ^
ih; 4
V1"
v
fl
V-
'VV^'f "•
•
i;£v
,
•
•
Vafue $2.50 Per Share)
"
>4
.»
.
•*
h'-:"
^
$ :l
^ /.'V^
r
'
<t
>
fc,
'
r
'
'' /
'
'
#.
'
'
I
Price $14.50 Per
Share
Copies of the Prospectus may be obtained in any State from only such of the underwriters, including the undersigned, as may legally offer these securities in such State.
White, Weld & Co.
•!
*
*" ff
K
F. S.
1 <p' *
'
'}l
v
•
,~?s
i
*
Moseley & Co.
September 9,1948
•;\ •
.
v*. -'V'V.
" '
,
'
''
?'}}'& *%V
i
*
I 1V
'"v* '!
*
h .*
v
'V
Paine, Webber, Jackson & Curtis
v.A.vvi;->■
•
•
>r'.4
.4,;;4
-..
.TV'4;;
13
the
commercial
Thursday, September 9, 1943
chronicle
financial
&
® UIII Were
»'
•
{"
~
.
V
By HENRY HUNT:'
Prospectus
upon
National
research
"If I Were
request from
inyestment dealer,
your
or
The eleventh article in this series was
written by Leon Abbett,
President of Lord, Abbett & Company, national distributors
of Affiliated Fund, American Business
Shares and Union Trusteed Funds
&
corporation
120 BROADWAY, NEW YORK 5. N.
with combined assets in excess of
Y.
On overseas veteran of
..
of
firm
been
"Lon"
wines.
One
identified
RUSSELL BERG FUND
■
v.
;
a
,,:
.
an,
the
mutual
fund
business
r
something of a gourmet and a connoisseur
He enjo.vs a foursome at golf and collects
stamps as
of. the. best
dressed
men
W;:!' '
;•*
"At least
Wall
in
Street,
he
•
-
a
:
%
hobby}
Therefore, let
years
tion
*
.
MANAGER
AND
Investment Counsel
.
majority
are
worthless.
^
Street, Boston
TELEPHONE LIBERTV
2-953°
j.
"We found
"We
no
found
.
record of the
no,
•
i issued."
-
'
1
'"InvestmentCompaniesaxe npi
1
t
,
4-
>
Proipectui from your Investment Oeoler or
-
"Upward the
progressively less
Mrs. Consumer.
real
of
r
1
prices have taken their way—leaving:
income in the hands of Mr.
andj
a
good investment
IHhHESMt
stress the factor of capital appreciation—do
for much
or
for little?
In
your .case,
we
I believe
soundly elect Jo go lor more-than-ayoi'age apprecW
'i
-
average
market
investment company yyhich
senior securities ahead of the common
stock, can and do pay
In recent years, the money which
the in¬
company borrows could be invested • at a much
higher income, return than the interest rate paid, on this
^borrowed money.
Hence, a very good income return would
be yours.
-A second importantadvantage is
vestment
.
flexibility. An
investment company-holding leading common stocks of this
kind can liquidate, them
quickly in almost any kind ot stock
.market and is in a position, therefore,- to
pay off its" borrowed
pnoney, or leverage* quite rapidly.
:
*■ With an, 9penrendf investment
companyj using leverage
above average appreciation
possibilities together
good return.That is the kind of investment I would
make if I were you."
get
a
spendable
'
.
"This
HUGH W. LONG & CO.
course
you can.
you
1
How Fat Is Yottr Pocketbook?
:i
,
want to
with
•
-
of
good< dividends.
Gravfeyard^In^^
,
<
diversification than
ought to do is to. select
conservative 'high-grade* common stocks of: large and
well-established companies and then borrows
money itself at
a,low interest cost'to provide the
leverage. • Here you have
the advantage of owning an interest in a
portfolio of stocks in
s e a s o n e d
companies -whichy because of their financial
strength, established earning power and small amount of
"How Big is 800,000?—-The first six volumes of
Fisher's Manual
list approximately 750,000 different
companies. At least 75,000 more
have been added in the
following five volumes.
The magnitude of
this can be fully realized when
compared with Standard-Poor's)
Manuals which list about 6,000 companies and New York Stock Ex¬
change which has around 1,400 stocks listed.
-
panies buy the securities of- vigorous,
healthy companies and watch
them carefully.
The managements are human and'like all
investors,
they make mistakes. Not all of their purchases are
profitable.^ But
they do not hold securities until -they end
up in Fisher's Manual,";
V—The above is reprinted
fj:om "items."" published
by Broad Street!
Sales Corporation.
\
■
* - *
~
we
holds
I
"The stock never had
any value."
"The stock has a problematical value."
"The stock is worthless."
I could sit down and
five good .stocks.
But I
"One method pf: obtaining faster than
action is-to buy; the sharesf,of; ah
certificates the syndicate may have
"Became insolvent in 1929.".*
stock issues.
the shares
tion.
company's operations."
value ta any
what
«H|
and
you
want to go,
The Epitaphs. Read—^
"*
W£.
Up
which holds a large,number of
;•••*
- .. -•
common stocks;" 'ln~that wayyou will
.••••> Leon Abbett
get much broader diversification, and >•»'
;aiso you will have less. to worry about because the
manage;v ment will be looking after the investments,
y;
"There are* many good investment
companies, and, in
picking one, the. first thing we want to decide is hoy; much
r
,
so
instead
we
'
«
,
75 Federal
.{.
company
somq
;
common
out,'say,
that,
have been merged with other
companies. • But they are a collection
of over
800,000 obsolete, and obscure investments and the vast
Russell, Berg & Company
•
concentrate-our atten-
us
think you. want more
.
UNDERWRITER
on
"Now,
pick
once
;
INVHSTMENT
\
.
everyday.
'
1
'
1
■'
*
J "Fisher's Manual is a
graveyard of investment and speculative
hopes.
Not all, of the companies listed in the current volume or its
predecessors are worthless as some have liquidation values and
Request
;
"Capital appreciation opportunities at
this time are mainly in common stocks.
it
on
the best way for
these objectives, I would
investor
an
proceed along these lines:
a year
every investor should spend a few minutes
thumbing through Robert D. Fisher's 'Manual i of Valuable and
Worthless Securities.'
Every investment dealer should place it in a
prominent position in his office so that his organization would see
Prospectus
such
with
him to achieve
j
<
opportunity for capital apprecjaa good reon his money,; -- If I were discussing
turn
good
looks ten
i
Investment Epitaphs
of
Times and* conditions have seen many changes
then, but I believe the interests of the sophisticated in¬
are fundamentally the same.
He :
and, meanwhile, he wants
f; tion
1932J
Business Shares.
is
By LEON ABBETT
wants
j
,
Com-j
since
f
'
vestor
graduate)
officer of Lord. Abbett &
Series)
When I entered the investment business- 28. years
ago, I
a retail salesman, and I continued in that
capacity for
since
.
been
with
youpger than his age of 54.
-
,
a
several years.
j'
since its inception shortly after the market crash in- '29^
Ths;
has
when it organized American
I
/
World; War I in the "77th" and
Princeton, Mr.: Abbett has
pany
$100,000,000.
Retail Salesman''
President, Lord/Abbetf & Co., Inc.
Retail Salesman"
a
a
(11th of
\
>
j
was
from
securities
1•,
'
e
.
the picture painted
by labor
leaders,
,
,
many
politicians!
INCd»»0#AtfD
48 WAU
STREET, NEW YORK 5, N,Y.
IOSANGIH5
•
CHICA66
American Business
SharesrInc.
Prospectus
upon request
XX'.v.'.vvv.X.v
ustodian
INCORPORATED,
Chicago
/
—
New Orleans
Los Angeles
SHARES OF CAPITAL STOCK OF
in
BONDS
(Series B1-B2-B3-B4)
PREFERRED 5TOCK5
(Series K1-K2)
COMMON 5TOCK5
Hill Richards Co*, Adds
(Series S1-S2-S3tS4)
(Speqlal
LOS
Prospectus from
pour
Le
local investment dealer or
JVeystone Company
of Boston
50
Congress Street
Prospectus
your
to
The
Pinancial
Chronicle)
ANGELAS,
Join J* Eftrle. May & Co*
;
(Special
to
The
Financial
Chronicle;
CALIF.
-U.
PALO ALTO, CALIF.—Norman
Philip M. Benton has been
addedj F..-, Godbe and
George G. Watson
to the staff of Hill
Richards-& are now with J.
Earle May & Co.,
Co.,
621
South
Spring Street, 156
University Avenue. Mr. -Watj
members of the Los
Angeles Stock son was
previously with First
Exchange.
r
California Co. and Brush, SlocumO
.
t
may
be obtained from
local investment dealer,
& Co.
or
Boston 9„ Massachusetts
THE
PARKER
CORPORATION
ONE COURT STREET. BOSTON 8, MASS. V
:
With First California Co.
(Special
to
The
Financial
T'^onicle)
PASADENA, CAL.—Walter M.
Wilkinson is with First Californl
Co., 337 East Green Street.
Volume 168
Number 4732
THE
COMMERCIAL & FINANCIAL
Blame
;
CHRONICLE
attached
to RepublicanCongress.
Savings
Drive Agricultural Com¬
controlled
Bond
mittee named.
Speaking in Washington Sept. 7
before
a
meeting of farm leaders
at the start of
the
sale
of
a
drive to increase
Savings
Bonds
a
g r
tural
tion
John w. Snyder
■
the
to
in
cut
taxes
which
enacted
by
the
trolled Eightieth
in
i c; u 1 districts,
was
Republican-con¬
Congress.
Names Agricultural Committee
Secretary
S n y de
also
r
an¬
nounced the formation of a group
of volunteer advisers Whose ef¬
forts, will be devoted to the sale
of U. S.
The
Savings Bonds to farmers.
group,
which
held
its
first
meeting at the Treasury, will be
known as the National Agricul¬
tural
Bonds
Committee.
Members of the committee in¬
clude representatives of leading
national farm
organizations, vari¬
agencies,
ous
other : agricultural
the
agricultural
press
and
the
radio
industry.
They will assist
Savings Bonds Division
of the Treasury in
mapping plans
the U. S.
to
farmers throughout
to build financial re¬
in Savings Bonds*
*
encourage
the
nation
serves
Secretary Snyder welcomed the
group
and
expressed
the
Treas¬
ury's appreciation of this further
volunteer aid in its continuing
campaign for greater bond sales.
TOOav
He pointed out that this has been
another good crop year and that
therefore it is a good time to re-
emphasize
the
Savings
Bonds
benefits to the farmer., He noted
that
farmers
sponded
well
always
had
to the bond
re¬
cam¬
paign.
Vernon L. Clark, National Di¬
scontinued
bn page 35)
inCO^I
This advertisement is neither
securities.
offer to sell
an
nor
a
solicitation
of offers
to buy any of these
The offering is made only by the Prospectus.
CANADIAN BONDS
"Heal income" is the
59,700 Shares
relationship
of revenue to living costs.
GOVERNMENT
Although total costs for the typ¬
10% higher than
year'ago, the average family's
Super Electric Products
ical family are
PRdVlNCrAL
a
income
is
increase
MUNICIPAL
the
Corporation
1%
shows.
survey
several
CORPORATION
11%, leaving a net
in buying power,
up
of
For
there
months
the
has
past
been
(A New Jersey Corporation)
a
gradual; increase of this sort in
purchasing power;
.
CANADIAN STOCKS
is
v
"We
*
•
:
■«
1NCORPOBATMS
.;/■
^ i
i.VV;-
,
(Par ValUfi $100)
level
(
record-breaking
productien.
Continued
are
of
at
a
Copies of the Prospectus
istered
member
of
the
are
obtainable
National
from
Association
the
of
undersigned
Securities
or
any
Dealers,
reg¬
Inc,
maintenance of that level seems to
<
YORK 5, N. Y.
indicated," stated E. E. Crabb,
be
\
TWO WALL STREET .i
ff NEW
J
likely soon, Investors Syndicate
said.
A. E. AMES & CO
Common Stock
Although shifts in various
phasesof theeconomy * arb ^evi¬
dent; therb is nothing in the eco¬
nomic picture to justify a predic¬
tion that a drop in buying power
S
President
a
of
leading
Investors
distributor
ment securities.
Syndicate,
of
invest¬
."The demands of
buying public are still great
and the ability to buy is increas¬
The First Guardian Securities
the
WORTH 4-240d
ing.
be
High economic levels should
for a long time to
assured
come."
20: Piiie
Corporation
Street, ^ew York 5, N. Y.
16
(1012)
THE
COMMERCIAL
FINANCIAL
&
Is Gold More Than
CHRONICLE
Thursday, September
9,1943
Deflation Hedge?
a
By BARRET GRIFFITH and BRUCE ELLSWORTH
B. Barret
Griffith
&
Co., Inc., Investment Counsellors, Colorado
The lesson learned by investors 3>since the mid-1920's and particu¬ sion
Springs, Colo.
■0
larly during the 1929-1932 depres¬
sion was that investments in gold
as a commodity or in the form of
stocks
common
in
the
industry
tion
higher-than ever be¬ tures the continual
depreciation of
in history
and
$80,- currency in England from
the 13th
000,000 added to the public century to the end of the
17th cen
debt.
.;■■■>
■y'-V-vxv ;:/s
tury, when currency reforms
one
reaches from the chart
age was debased and prices
rose.
showing interest rates, gold pro¬
duction,
and
commodity prices 1601-1612—Irish Wars.
England
since
1911.
The
chart
indicates
that actual depression and
profitable.
It
is
V".'-1'
richer, but
James 1
at rates of 8%
to maintain his
becoming
was
threat
Threat of invasion caused
the Crown poorer.
of currency
devaluation, with ac¬
companying low commodity prices
and
subnormal
operating costs,
make gold investments
generally
fore
borrowed
and
run
so
1665—Great
Plague
in
London
170,000, destroyed
commerce
and crippled fi¬
nances.
Lack
of
funds
time.
killed
two
•
It
for
,
the-
at
stood
first
for
par
years.
generally accepted
1803-1815—Second phase of the
theory that gold investments are
war. French successful un¬
only during periods of
forced English to lay up
business depression.
til 1812. Financial strain in
The writers
their fleet.
Great
constructed Chart II (see facing
Britain.
Paper
1666—The Great Fire in London
page) showing the price of gold in
money at a discount which
destroyed most of the city.
pounds sterling from 1343 to the
I v,£&;■. rose to 25% in 1815.
War
present time.
financed
Although there is 1667—The Dutch burned the fleet
by
loans.
Na:
in the Thames, War inade¬
some evidence from the chart that
poleon's Continental Block¬
attractive
;
quately
the
Barret
offer
Griffith
a
times
Donald
unfavorable
tends
times
Ellsworth
satisfactory hedge during
of
Chart I shows
tion
B.
to
when
that
business.
gold produc¬
remain
low
interest
during
rates
and
price of gold advances during
times of business strain,
much
more
important is the fact that
the price of gold during the last
600
years
has advanced during
periods of violent,. political and
ernment
struggles. By comparing
the
following list of historical
events with the chart, one can see
the relationship between the price
of gold in pounds sterling and
various
gold increases when interest rates
history,
and
commodity prices are rela¬
tively low. In times of good busi¬
general
prosperity gold
10%.
who hold either gold shares
commodity
receive
pensation.
Such
Gold
is
small
the
or
the
at
Debt Y established.
England
of
ping.
;
milled
for
Restored faith in the
currency.
and
*
on
Napoleon's
;
^
Britain
English
the
won
sea,
Italian
but
cam¬
those
Similarly,
are
not
and
Stalin.
be¬
tween the growing lack of confi¬
in
currency ;' and
fiscal
ain.
the
France
'
cal
Commerce
rupted,
prices
high,
inter-
taxa¬
1680-1695
of
faith
and
by
world
Chart III
in
the
current
to
be
currencies.
national
results may
the same
before
were-
debts
if
are
be
ex¬
as
currency
they
reforms
carried out.
investments
in
gold
appear to be most profitable dur¬
ing times when commodity
prices,
interest rates, operating costs
and
business activity
are
depressed,
history
that
rather
during
uncertain
of
pected
world
like
a
habit of
the
doing, the
gold might not be
to
is
peace
times
If history repeats itself;
which it has
price
definitely teaches
stake in gold is worthwhile
a
decline
until
definitely
currencies
throughout revalued
peoples
most
lack
in
government fiscal
poli¬
policies,
pected
un¬
exists
ceased
relationship
losing faith in their nation's fis¬
be¬
comparison
faith
Although
clipping.
In
ether
words,
peoples throughout the world
and present.
policies existing in England from
war.
were
and the outlawed practice
of coin
conflict
Hitler
of
Coins
of the present
un¬
handling
France,
By 1797 there
suffering and disap¬
pointment in Great Brit¬
..
in
the
paign forced her allies out
The
cies
and
Napoleon's ambitions
like
some
orthodox
dence
was
ruined, coin¬
like
Britain
of the
VIII
currency was
somewhat
tween
between
France.
t victories
fought an in¬
decisive but costly war with
;
gold standard.
the
on
with the interval, 1680-1-395. The
present
East-West
struggle
is
reforms
Coins
"
1459-1485—Wars of the Roses.
Scotland.
Britain went
the
first time to eliminate clip¬
out.
between
Although
carried
1696—Currency
Crecy.
and
1816—Great
char-
out.
clipping of coins
1696, there may be a
were
J
1
Compare the period since 1934
with the period
1800-1815 and
1793-1802—War
,
commerce.
were
carried
the
-
tered.
England's
t
1544—Henry
com¬
conclu-
in
5
greatly injured English
1813—Napoleon abdicated.
1692—National
1694—Bank
1346—English defeated the French
producers find little profit in in¬
creasing production, and investors
upheavals
ade
-
1337—Hundred Years' War began.
and
by gov¬
borrowings at 8-
economic
commodity prices are relatively
high; and that the production of
ness
financed
finally
money in currency was restored.
paper
issued
was
a
Bank of
milled for the first time
to elimi
nearly ' ex¬ nate clipping and the public's
was
hausted,
more
England
court.
the
the banks.
on
to
established,
are
allow
ex¬
world
realistically
trade to
exist
and orthodox governmental fiscal
(on facing page) pic¬
policies
are
revived.
*Int.
Prod#
Rates
♦♦Coram#
Price
Thousands
Index
of
Dollars
219265100
^
CHART
I
1,600
x-x-x-
1,500
____
;
Interest Rates
World Gold Production
Commodity Prices t
1,400
1,100
1,000
1931
♦Macaulay's Adjusted Index
of
American Railroad Bonds
•Barron's
1943
1947
,
Number
of the Yields
1911-1931.
Average Yield ofTen
Best
Grade
Corporate Bonds 1932-1948.
♦♦Bureau
of
Labor Statistics
Wholesale Price Index.
ar
V^liimr163' Number 4752
*!.
'
MmU
-
;.
v.':; :v;:;.: ';— "'■
IS
(1014)
THE
COMMERCIAL
&
FINANCIAL
Thursday, September 9,
1943
CHRONICLE
f—
True—and With
Securities Salesman's Corner
In
the
securities
"have
and
and
been
never
business
rules
delineated
Exchange Commission
"the sale of securities has
'
we
that
in
came
into
been
twilight zone between
day to day and that
Ever since the Securities
a
from
defined.
or
ever
live
change
existence
no
one
in
engaged
able to find out what
were
the
rules of the game.
There have been interpretations of the laws
there have been decisions that back-tracked and reversed themselves
'—there have been attempts upon the part of the Commission to
that under
limit markups, yet no one has ever defined what is reasonable.
<There have been references made by the commission
regarding viola¬
tions of the Securities Acts which, it is
claimed, dealt with a failure
of the
seller
to
disclose
all material facts and
ance
serve
•">
from
of all segments of the
Steel
-
dealers feel
make
to
so
strongly
they do
j^tl^ their
so
on
the
In
Those who would
telephone
made
run
wholesale raids
^affairs in
honorable
an
'jfloubt that
the entire
while
speaking
shoulders
through voluntary action.
Approximately
This reserve of five billion bar¬
rels amounts to almost one-fourth
as
much
as
the entire
proved
these
of the
those
But
Commission
who
ent
Who,are
children
the other hand there is
on
Few Feel
decent, honorable American business men
We are.not fools, neither are we
engaged in this industry.
WHEN IT
IS
THE
SAFEST POLICY NOT EVEN TO
WRITE A LETTER ABOUT MATTERS
CONCERNING THE PUR¬
CHASE
AND SALE OF THE COMMODITIES
IN WHICH WE DEAL
FROM DAY TO DAY IT IS TIME FOR A
HOUSECLEANING UP¬
STAIRS. If capitalism is to survive—and that
means
freedom
as
have known it under
we
our
liberty and
Constitution—then a revi¬
sion of thfe Securities Acts must be
accomplished during the next
session of
Congress.
the
can
by destroying
free
a
destroy private enterprise.
industry such
capital for private business, they
lead
to
a
complete breakdown
door to totalitarian statism here.
;
.
mission
has
done
country than
j
more
to
in
are
as
ours,
which furnishes
taking the
our
They know
one
step that
and
economy
the
open
The Securities and
Exchange Comoff the flow of
investment in this
other agency of the government, with the
exception
of oppressive income taxation which has practically completed the
job.
The two greatest allies of the Communists
in this country are
the
SEC
and
any
the
tax
eaters
having 600,000-share days
j time when the
,
kill
000,000
per
in
on
Washington.;
the
New York
This is why
Stock
you
Exchange
national income is running at the rate
Common
@
15
of
Board
9
that controls
sure a
A
materials
Common
Analytical Descriptions
on
Opposition to Renegotiation
Renegotiation
in
peacetime is
opposed on the ground that it is
unnecessary and that "it is im¬
practical to expend great sums to
establish a renegotiation staff."
Executives are. "not
$213,000,-
MACKINNIE OIL
Incorporated
53 State
LAfayette
St., Boston 9, Mass.
3-8344
.
Tel. BS 189
•
,-*l
"'v
>]
an
■
whdre it
is
picked
up
by pumps.
&
]':'■!
the idea that renegotia¬
tion penalizes the
person who cuts
down his normal business in order
express
to
supply
law
of
defense
supply
material.
and
The
demand,
say
of the executives, will
give
government the best price.
Peacetime i renegotiation
some
"keep costs high and
incentive
an
to
might
provide
even
avoid
defense work contracts."
10%
accepting
'
:
.
Condone Peacetime
Renegotiation
The 10% r who condone
peace¬
time renegotiation -feel that it is
Some
others think
must
be
used
"to
the
controls
lessen
bottle¬
necks and the
worsening of short¬
ages.";; A good many of these ex¬
ecutives also agree that
they must
be judiciously handled to
sustain
maximum efficiency and
coopera¬
tion; between government and
in¬
dustry.
,
Effect
i
Slightly
,
Civilian
on,
ecutives
Output
more than half the
indicate
that
& M.
can
cur¬
market.
About 10% of
these executives
say that they can
handle defense Work without
any
difficulty since current civilian
demand is below
dertaken would depend
curate
cost quotations."
Opposition
to Renegotiation
During Wartime
Many of the executives
ing renegotiation
during wartime
express
who
the
do
views
same
not
peacetime.
agree
Although
-,
during
they feel
about
six
out
of
ten
industrialists accept
renegotiation
ln
wartime, they do not like it
and have
reconciled themselves to
the
necessity of such a practice.
The
majority agree that it is jus¬
tified on new
projects where there
are
likely to be high fixed
prices
evolving
out of the
inability to
make accurate
cost
estimates, and
where they are
likely to be con¬
stant
time
thus
of
engineering changes. Also,
operations
studies
and
warranting
cost
the
renegotiation.
such
Skv'!
Bell Td«t»« DN 151
as
equitable,
well
thought out, and
rigidly controlled.
to
one
executive,
it
accompanied by. ^effec¬
tive and
universal control of
should be
the
un¬
on one or
The most important
an
adequate supply of
materials,
Other executives state that
any
substantial
amount
of r defense
work
would
necks
of
bring about bottle¬
labor, capital, tools and
plant space.
Labor is
indicators
being the most serious bottleneck.
Slightly fewer than half; the
ecutives
assert
difficult
to
that
accept
ex¬
it would
be
work
defense
without seriously curtailing civil¬
ian production. "We
ating with
are now
oper¬
huge batklog of or¬
ders,'^ says one of them, "the
factory is working at capacity*
only limited headway is being
a
toward
backlog.
contracts
would
bottlenecks
in the
reduction
a
Acceptance
of
of
defense
create
serious
plant
and
space
equipment and also of labor and
materials." A few point out that
a
scrap
shortage makes it difficult
accept
defense
work
while
others mention that civilian pro¬
to
duction
is
still
insufficient
to
meet the present need. Still others
"could not do defense work since
it would
require complete con¬
version, which would result insevere
disruption of civilian pro¬
duction."
1
^
.
Wall St. Riders Have
New Ride
G.
H.
Manhattan,
Street
Headqiariers
Struckmann,
Riding
that the
Bank
of
President of the Wall
Club
Club,
announces
its
has transferred
headquarters to the Spin
application
Rock Riding Academy, 46 West
Street, Felham Manor, N. Y.»
of
renegotiation for
contracts is
frequentlv
qualified by the
statement that its
operation should
allow a fair re¬
turn after taxes
and that
proce¬
dures should be
According
raw
be
analyses," ride
wartime
Simpson 6- Company
..;.
it
Generally,
Acceptance
*
those
that renegotiation
is not
necessary
and that
properly established and
equitable tax laws should be
re¬
lied upon instead.
preliminary
DRILLING COMPANY
i"'.' Vy«V,"71.,
to
as
factors.
would
made
oppos¬
speed of modern war
"neces¬
sitates the
elimination of certain
CO.
ex¬
they
defense work without
on
more
ac¬
the
OIL COMPANY
' '*• '•
i
companies
capacity levels.
limited to noncompetitive
prod¬
and
nonstandard
products
where it is difficult to make
the
California Building, Denver 2, Colorado
T*M»m KEjstone 310!
small
have difficulty in
obtaining."
may
in
many
cases,
amount of defense work to be
ucts
of
power" in the
administrator.
Many
Established 1929
B. E.
favor
much
so
hands of
in
PRIMARY TRADING MARKETS
V'
j.
well
to the bottom of
De
The
a
request
A.G.WOGLOM&C0.
the
or
problems
KUTZ CANON OIL & GAS
CO.
22»/,
@
8 7s
surface,
of industrial remobilization.
Only four out of ten oppose renegotia¬
tion of .wartime contracts and the$~
u
,,,0mm',.;
~r '•!■-.
—
others six - tend to j qualify their
necessary to lalleviate public re¬
endorsement, the x Association an¬ sentment toward
possible profit¬
nounced on Sept Ds
a; • ■' eering, and that the device "should
/
at
which
as¬
raw
civilian
the
peacetime," according to approximately nine out of ten
executives
surveyed by the National Industrial Conference
Board on
KINNEY-COASTAL
IW
the
necessary "to
tailing regular production for the
.
15'/,
Keyes Fibre
Class
and
are
continuity of supply of
recovery, the oil flows either to
mandatory order powers criticized by majority.
Renegotiation of defense contracts is
"definitely undesirable in
CRESSON CONS. GOLD M.
68
by pri¬
Necessary
have produced oil. Under
primary
survey
Maine Central R.R.
$5 Preferred
Common
<d>
will
are
annum.
Verney Corporation
reserves
Controls
A few of these executives
feel
;;
take
of executives shows renegotiation is
regarded definitely undesirable in peacetime. Steel allocation
and
placing
The Communists want to
that
oil
pres¬
program.
rally to the bottom df wells that
Renegotiation of Defense Contracts Scored
Conference
no
that FEAR OF PERSECUTION will
be eliminated from
—
oil
seep natu¬
accomplish¬
objectives of the
national defense
However,
investment business in this
country lives in
and hearts of
the
reported to the
have, conducted their
Before
so
crude
mary recovery methods
five billion barrels
those
are
we can ever
establish the securities business
upon a
basis where it will grow and prosper the
Securities Acts must be
tlie minds
all
be taken from the
ground
feiror and in fear.
rewritten
the
ever,
We will grant that the Commission has
manner.
in
reserves
or
would' insure
ment of the
bottom of wells in the field after
it has ceased to flow
They would say that the only
"afoul
upon
oil
reconcile
necessity of such
controls, because they feel that
■/.Mi i
crude
13%
themselves to the
York.
fields in the United States. How¬
directly
wild and used its great
powers
run
manner.
that have
that' have deser ved to do so;
not
matter of fact, some
disagree with these statements point to the
vindictive
or
securities firms
a
business IT IS SELLER BEWARE.
our
fsfet that the Commission has not
in^V punitive
As
this point that if they have any comments
over
customers.
",l
bureaucrat and used
These
that
the
letters that deal with
unnecessary
in peace¬
executives believe
industry should take the
problem on its own
time.
the
—
no
a majority of
exec¬
participating in the survey
being
as
Large Oil Reserves Seen From 'Depleted' Fields
some
are
criticized by
utives
of buying and selling securAll of which is, of
course, true enough — and all
wiped out—have his name,'smeared and his reputation
of which again
emphasizes the necessity of refornti
possibly lose all his surplus savings acquired after a
^lifetime of toil and sweat—and all this can happen
which would put an end to this
overnight upon
''support" business!
the whim and caprice of some bureaucrat who has the
power to
-swoop down upon him and charge him with countless violations of a
set of laws that are so ambiguous that no one
(even the most com-;
Ipetent attorneys who specialize in securities law) have ever; been
Five billion barrels of crude oil
able- to set up a definite area in which an investment dealer ;can V
may be obtained, in the next
few years, from
"depleted" oil fields in five states when secondary
operate his business.
\
C'% S recovery methods are developed and put into practice in those
:Cia1-One thing you can do, however, and that is to be mighty care¬
fields,
the Secondary Recovery
Advisory Committee of the Interstate Oil
ful about what you say to a customer.- As
long as we have a Secur¬ Compact Commission
revealed on^
ities and Exchange Commission operating as it does
today, in our Sept. 1 at their
meeting in the Compact
Commission
must
be
business we cannot write letters the same as is done in
any other Hotel
Roosevelt, New York City, brought out by secondary recov¬
'business.
Make no promises about the future- market
price of any
\
security—always refrain from market predictions. If you write f " The five states where "authori¬ ery methods.
tative estimators"
about a certain security be sure of your facts.
have
studied
Under secondary recovery, some
Check every figure
the possibilities of
as to accuracy.
The less you use figures the better.
recovery from method of adding pressure to the
If possible al¬
fields
are
ways use reprints from magazines or financial publications instead "depleted''
J Illinois, underground oil sands
either
tif giving your own opinions.
Oklahoma, Arkansas, New York, water, gas or sometimes air—is
Use statistical reports and include
them in your letters.
What you have said in sincerity;; and in all Pennsylvania and West Texas. \
used to force the crude oil to
good faith may some day be picked up by
hang you.
The best things is to write
SPECIFIC OFFERINGS OF SECURITIES.
Mandatory
Criticized
mandatory
embodied in the
Service Act
Selective
new
ruined—and
to
population."
and
Order Powers
be
can
Allocation
Steel allocation and
order powers as
"Everyone engaged in the business
i+i^
industry an3
(3) definite limitation and
freez
ing of wages, salaries and
income
insur-
an
on
profits to
take all
profits out of
war, for both
and
civilian
excess
war
standpoint of inflationary
credit expansion, whether a
given loan is granted
by a commercial bank or by some other type of
lending agency."—The National City Bank of New
ity unless he spent weeks and months digging into, every situation.
If all material facts ipust be disclosed
every time a security is sold
by brokers and dealers this law is violated tetl thddsand times a day.
t*
limitation
■.
company has as ready access to Federal Re¬
credit as any bank, it makes little practical
difference,
yet it is doubtful if
this particular phase of the Acts themselves could ever be
complied
No one could disclose all the material facts about
any secur¬
•
prevailing conditions, where
"
with.
*
Implications
"By this 'solution' (increased member bank reserve
requirements) the Federal Reserve presum¬
ably would continue to inflate their Government
bond holdings without predetermined limit, and in
so
doing facilitate increased lending by non-bank
lenders. The reaction of the practical bankers
if
one had been called
upon to testify — might well
have been: 'Why crack down on us so that our
competitors can take the business?' And it is true
By JOHN BUTTON
.interpretations
productive facilities of
industry
agriculture and commerce
inch
ing transportation;
(2) definite
(1)
where the Club will commence
its
14th consecutive
riding season
on
Oct. 1, 1948.
Weekly
special
drill
events,
rides
and
other
formerly held
in
the ring on West 67th Street,
will
be. continued
ride
headquarters.*
at
the
;
new
irv:
?A-H;
.......
..
;
"V.,.
.. •
*'
,
*•
'*.
Number 4732
Volume 168
v-
.
THE
COMMERCIAL &
FINANCIAL
CHRONICLE
j Merrill Foundation ill
Public
m
Receding From
llllllli Mortgage Business
Securities
ptility
psychology that underlies
businessmen r make
The
Mortgage Bankers Association notes decline in Federal
mortgage
financing in face of increasing mortgage debt.
decisions
and the effect that their attitudes
Utility Prospects Improved
have on future business develop¬
will
ments
the
be
subject
of
a
three-year study to be undertaken
by the University of Illinois and
the National
Opinion Research
Center of the University of Chi¬
is announced.
The study
YLlU Merrill Foundation for from
£? fl"an^d by a grant Ad¬
the
Financial
vancement-; of
Knowl¬
edge, an endowment fund estab¬
lished by the partners of Merrill
Lynch, Pierce, Fenner & Beane
The
will
study
be
the
under
direction of Howard R
Dean of the College of
Commerce of the University' of
Illinois, and Clyde W. Hart, direc¬
tor of the National Opinion Re¬
search Center. Preliminary work
will be started immediately on a
general
Bowen,
grant of 15,000 from the Merrill
An additional
Foundation.
has
$65,000
been
and will
when the prelim¬
be transferred
inary
of
by
earmarked
Foundation
the Merrill
sum
has been satisfac¬
survey
torily
completed, according to
Winthrop H. Smith, President of
the Foundation.
'&■
Uncle Sam, who went into the
mortgage business more than 30
is now turning the field back to private
enterprise more
rapidly than he is in almost any other field he has
entered, accord¬
ing to data compiled by the Mortgage Bankers
Association of America.
Earnings prospects for the utilities industry afford considerable
basis for encouragement,
according to the weekly Report of United
Business Service, Boston,
Mass., issued
Sept. 7.
Year-to-year profit comparisons
.
cago,-"
the
better
<
1
'
likely to show
are
years ago,
turn for
a
At the end of
this
Fall, the Serviced
feels. Revenues are running about been granted. This is another fair¬
11% higher than last year, but ly
promising source of earnings
rising costs more than offset this improvement
v':.P4
gain the first half. Chief item of
Finally, the industry probably
expense was fuel, which was up
will fare somewhat better under
more than 40%
during this period. a Republican administration than
However, other operating costs are it has in the past decade or so.
coming under better control, and Since enactment of the Utility
last
with
further
fuel costs
major
increases
in
now
appearing unlikely,
cost comparisons should soon be¬
gin to, improve. 1
The industry is spending up¬
wards of $5 billion for expansion
and improvement of plant, and
eaarnings should reflect the bene¬
-
fits of these
cient facilities
into
and
new
they
as
operation.
more
Until
recently,
utility management has hesitated
to apply for rate boosts, but rising
costs
have
induced
a
growing
number of companies to petition
for increases,
and several have
Company
the
of
some
Act
in
Deal
at
in
u
is
relate what
businessman thinks
a
today with what he does tomor¬
The
row.
state
of businessmen's
psychology has long been consid¬
ered an important element deter¬
mining the course of business ac¬
tivity, but few systematic efforts
Have been made to find out what
1946
businessmen think about the eco¬
It is hoped that it
nomic outlook.
will be
possible to develop a con¬
tinuing index of business expec¬
tation.
Questions that the survey will
try to answer, according to Dean
Bowen, will include the following:
"Does what a businessman think
the future actually
today about
have
How
business?
of
course
the future
influence on
an
are
pessimism and optimism
generated?
What is the role of
leadership? Who are the leaders
and who are the followers?
By
waves
of
pessimistic and
what methods do
optimistic ideas travel from one
to another?"
group
Under the terms of the
Merrill
tion in the market prices of such
improve
stocks.
Many Group Insurance Programs
Not Part of Union Contract
pendents and medical benefits for
Earlier this year, for example, the
Board found that wage earners in
mation
on
business attitudes. The
ctudy will theh be developed
through extensive interviewing of
businessmen
according to tech¬
.
employees.
71.2% of 455 companies were pro¬
vided
with
disability
benefits
nies provided group
accident and
Life Insurance
insurance
death
from
is
cause.
any
is
flat
a
sum
death
berment benefits
to
and
Hart, possible products of the
3Mr.
study include:
(1)
data
New psychological
regarding current business con¬
ditions, ^
contribution
A
ations and business
forecasting,
which
those
simply state that
present plan will be continued
and "any changes to be made must
be mutually agreeable to the com¬
the
Thirty-four
of
contracts
that have
those
(49.1%)
group
insur¬
provisions merely indicate
existing plan shall be
the
that
continued.
Which require the company to as¬
sume the total cost of the group
,
(3) New light on the process
by which business decisions are
made
and
on
the influence of
the
which businessmen's
(4) New information on
process
by
formed and
tions.
are
changed.
*
*
the
thirty-four con¬
70% of the cost, in another
50%, and in the third
was
*.■
of
provide for joint distribu¬
In one case, the employer
tracts
pays
©pinions about the future are
covering union
members.
Three
Psychological factors, and
•
insurance program
the amount
not specified.
Amherst Col¬
lege to support a study of the
factors producing inflation in the
ments
tures
of
United States since 1939. The Am¬
Of this number,
herst study will be
the
der the
America
voted
grant of $5,000 to
conducted un¬
supervision of Professor
Lester V. Chandler of the Amherst
v
Among the
76%, are
the
plan,
nineteen, or
affiliated with the CIO.
thirteen are with
Textile
Workers
(CIO).
AFL unions,
Union
of
Four are with
and two- are with
independent unions.
'iirJr '",
'V'
''
f''' \VV'" j 0
■
Accident Benefits
and
benefits
are
included
in
provide uniform benefits
five graduate the
amount on the basis of earnings.
Hospital and
Surgical Benefits
of the
Seventeen
25
plans
use
hospitalization plans
by insurance com¬
panies. Three of the 17 provide
benefits for dependents also. The
amount of the daily benefit in
these cases ranges from $4 to $8
a day.
group
underwritten
Some
unions, however, are not
in favor of the insured type of
hospital benefits because, under
present conditions, they do not
believe that the amounts provided
cover
Cross, which provides
rather
Three
Blue
than
cash
agreements
Surgical benefits
of
serv¬
benefits.
provide
Cross coverage.
under 19
two
v
for
/ ;
are
provided
plans for employees and
these *
cover
employees'
dependents'- as- well. :;i S;;
they represent
E.
Handford,
Company, - Des
Moines; Wallace Moir, President,
Belmont Company,
Beverly HiJJs,
Calif.;
Edgar N. Greenetiaum,
President, Greenebaum Invqsfcment Company,
Chicago; and Don¬
ald W. Campbell,
Treasurer, State
Mutual Life Assurance
Company,
Mass. ' L.
Worcester,
Douglas
Meredith, Executive Vice-Presi¬
dent,
National
Life
Insurance
Company,
Montpelier," Vt., will
the session assisted
by
Paul P.
—
*
Swett, Jr., Treasurer, Balu i., x i caaui Ci, JDcU-
•
timore
w»v.n,
Life
Insurance
Company.
on
far this
will last until 1952.
reserves
Great
success in already
increasing exports, as well as confidence
future, was vigorously voiced by Neville Blond, the British
Government's Trade adviser in the United States, in a
press confer¬
ence held in New York
City, Sept. 1. Mr. Blond, a British textile
h
;
n
Mr. Blond denied the
e'
thereby
material
re-
home *
be
possibilty
British
on
He
confidence
raw
expressed
"'that,
his
country with a continuance of her
rigid austerity* will be able to
en¬
tire
year
in
furthering his
country's
trade building
husband
effort.
however,
Mr.
laid
imports.
complete
have
an
mi
advisability of devaluation of
the4 pound,
emphasizing the in¬
creased
burden
which
would
last
n
y
or
States
his
■
here, as against one-fifth a few
months, Mr. Blond asserted.
throught ;Jt
u
Blond
her
exchange
reserves
until 1952, when the international
balance of payments should be re¬
stored.
A sine
particu¬
enthusiastic over the suc¬
already achieved in market¬
ing automobiles and farm machin¬
ery.
He expressed complete
confidence
that
shipments will
continue
increasing, even after
current post-war shortages in the
to this is,
qua non
continued
extension
Marshall Plan help,
Neville Blond
„
was
of
of the right
quantity and kind.
larly
No U. S. Slump
cess
United States have been made up.
A tractor selling for
£280. has
met
with
Asked
farm
States
with
particular
whether
success.
British
sales
of
machinery to the United
might not be in conflict
ERP demands
on
this
coun¬
try for identical merchandise, Mr.
Blond expressed complete confi¬
dence that such conflict would be
resolved
of
the
the cost of hospitaliza¬
pital benefit provided under the
ice
Life
for the
by the central direction
Marshall
Plan
countries.
Automobiles and farm machin¬
have replaced Scotch whis¬
key as the chief export items, while
chemicals, textiles, toys, china,
pottery
and
ship-building,
are
also rising in absolute and relative
importance.
The rise in Britain's exports to
United
States
is
reflected
his opinion concerning
impact on his country of- a
possible
depression
here,
Mr.
the
Blond denied the
possibility,
or at
of an American
slump, because of: (1) unsatisfied
least probability,
consumer
high
demand, (2) continuing
profit levels, and (3).,sus*
tained production levels.
,
New York Stock
Exchang
Weekly Firm Changes
The
New
York
Ex|
Stock
change has announced the follows
ing firm changes:
i r
.
Howe
ery
the
Asked
.
Interest of the late George
Autos And Tractors Replace
Scotch Whiskey
They prefer the type of hos¬
Blue
Bankers
,
nonoccupational
for all covered;
tion.
Details of Plans
that
,
all but two of the 25 agreements.
will
twenty-five agree¬
which include all the fea¬
the Merrill Foundation had
faculty. "'M,
accident
.
Mr. Smith also announced
a
1
Sickness
the
agreements have clauses
Nine
~i'f
,1
Sickness and
so
dence exchange
spent
(eight agreements) to
$1,000 (five agreements).
:
special trade mission, estimates his country's
year at 50% increase over entire 1947 ,;
year.
Automobiles and agricultural machinery most important
items.
Scores pound revaluation
proposals, and expresses confi-exports to U. S.
will
$500
Fifteen
and the union."
pany
ance
to the
knowledge of business fluctu¬
(2)
Neville Blond, here
tur
The amount of the benefits varies
to
gain of
Harvey
,
conduct
a
whom
be
fore
provided in
from
'
a
will
June, and be¬
ordinarily the same
provided for life insurance.
is
as
—
v.
British Export Gains Reported
by Trade Official
United
of benefits is
Types of Provisions
as
-
whole, however, showed
o
fourteen agreements. The schedule
health benefits.
In its latest study, the Board
used by
Roper sur¬ finds that the types of provisions
vary from those in which all the
in combination with other
features of the plan are included
According to Dean Bowen
-
wide
dismem¬
and
are
$190,128,000.
mortgage debt
since
$500 (tens agreements)
$2,000 (three agreements).
niques similar to those
veys,
S.
elling far and
which ranges
from
Accidental
4.5 % gain, or
has been trav¬
for
The
amount of life insurance in most
cases
de¬
a
23.6%.
investors
manufacturer,
payable
the famous Gallop and
methods of research.
The U.
hospital
Life
of
Administration
a
to $198,710,174 from
and surgical bene¬
Only a few give hos¬
pital and surgical benefits for de¬
pro¬
year
Home
fits (80%).
insurance
$486,000,000
last
which registered
memberment
benefits (56%)
weekly disability benefits (92%),
group
Today
ings at the end of 1947 except the
tracts
Many
time.
one
agencies had smaller hold¬
Farmers
plans incorporated in union agree¬
In
a
similar study, made in ments provide for life insurance
April, 1947, the Board found that (88%), accidental death and dis¬
grams, the Board points out, are
not a part of the union contract.
Federal mortgage
recent
years.
The
Fed¬
eral
.
and
in
Federal Land Banks are down to
less than $900,000,000.
All
provisions are an integral part of nearly a
fifth (69 or 18.5) of 373 post-Taft-Hartley union agreements which
have been studied by the National Industrial Conference Board.
It
was found that group insurance
benefits occur more frequently in
CIO agreements, while paid sick<^
leave provisions are more preva¬
Most of the group Insurance
approximately 15% of the con¬
analyzed contained group
insurance provisions.
J. C. Thomson
of
from
crease
Association's
the
Among those who will talk :on
various aspects of the
relationship
between the mortgage correspon¬
dent and the large institutional
re¬
gages alone at
it owns only
"break-up" values of holding
ex¬
35th
convention in
President, said^
con¬
decline
the
New York,
Sept. 22 to 24, John C. Thompson,
holdings in
HOLC, one of the six agencies, held
more than
$3,000,000,000 in mort¬
insurance
lent in AFL contracts.
a
.
at
annual
of
tinuation
the
more
part of
through group insurance. In an
the study will include a complete
earlier report
(1946), the Board
survey of all the existing infor¬ found that
63.6% of 3,498 compa¬
Foundation grant, the first
and
in
exhaqstiyely
plored
7
•
of 7.3% v 1
end
creating
operations
struction will be
de--
a
the
flects
frequent in CIO contracts, with paid
sick leave provisions more prevalent in AFL agreements.
Group
is>
the.
Group Insurance Provisions in I8Y2% of New
Union Agreements, Conference Board Finds
Study reports benefits
among
agencies.
$1>968,099,550 at
operating utility
profits should find quick reflec¬
company
d
e
of
means
mortgage lending business today
large loan
anticipated con¬
tinued high level of new con¬
mort¬
from
in
turn
t
and
efficient
in view of the present
volume and the
distrib-
crease
the
The Service states that any im¬
in
Ways
more
and
This
structive.
the
t
six
mitted that results of the Act in
some instances have proved con¬
equities—and
n
cause
only
urban
farm
punitive, although it must be ad¬
provement
m
gages
1935,
on
n
$1,833,565,454
Government regula¬
least—bordered
r
owned
tory steps have—under tlie New
effi¬
brought
are
Holding
e
nearly 27% at the end of 1947 be¬
of increased private
activity.
Gov-
e
■
®
year, ; the
Federal
The basic objective of
the study
to find out if it is possible to
19
Sees Federal Government
Financing 3-Yr. Study
the
Iff**
(1015)
•
-
,
in
the fact that they are now paying
for one-third of her imports from
ceased
in
Elmer
H.
E|
Bright & Co*
Aug. 26.
Interest of the late Thomas
in
Lough
Aug.-16.
Faroll
.
-
&
Co.
"
,
^
Fi
ceased"
'
•.
George E. Howe Dead
George
Elmer
H.
E.
Howe,
Bright &
Mass., died
on
partner
if
in
Co", * Boston,
Aug. 26.
•
//,: ;.v,
20
THE
(1016)
COMMERCIAL
which
FINANCIAL
gain
in
$13
million,
j.
New
mainder
York.
the
of
the
In
Second
U.
first
six
of
months
1948
Service
-
on
deposit
their
of
banks, but the gain was especially
large at the central reserve New
groups
groups of banks also was
in
27%
between 11 and
largest size
rose
11 l/z% + in the
the
and
groups
loans
three
smallest size
The
banks.
accumulation
of
banks and
side
on
smallest
size
banks
smaller
volume
charges..
of
debt
held
that
to
creased
creases
sioned
the bank sampled,-equalling 6.0%
re¬
the
by
virtual
a
theupward
trend
.
operating
other banks.
in
banking profits
arising from losses on loans, by
enabling banks to accumulate taxfree
est size
for
years
actual
(in excess of actual
losses) in prosperous
losses,may be large. Such
Percentage
Changes
in
banks
(with deposits un¬
million), and for every
group of banks it attained a new
der
in lean years when
use
$2
semi-annual postwar peak.
Earnings and Expenses of
Selected
In all
the First Six Months of 1947/X ;/| '| :|(~./|
1
;
_N.Y.C. Sample banks located
,
•
*
J
Item"
f'
( Central
/•
-
(in
(
Over 20
reserve
—
.
35
35
/
,
;
outside N.Y.C.
..
Interest
U.
on
S.
Govt,
Inlcr&at and dividends
Interest and
fiervice
discount
Trust
charges on
department
Other
currerit
Total
and
Interest
Total
current
Recoveries
Net
Retained
before
inc.
,
38.6
+
it.4
+14.4
+
63.6*
paid
0.9
Q-3
+
+
8.5
+.14.1
+10.3
+
13.0
+10.5
(•'+70''
+
11.2
1.1
9.4
8.6
+
7.6
+
'0.4
+
+
-
+10.2
7.2
+
9.2
7.6
2.4/: +
+10.9
+
6.3
+
M.8
+
18.5
16.9
—87.4
20.8
+ 54.3
4-113.5
+ 97.0
+ 191.1
+
23.6
—26.8
—
26.2
—27.0
—
+
5.9
—
19.4
before
—
income
passed only
banks.
representative
because
of
Various
of
—
small
40.6
4.8
—
21,7
82.0
—
11.0
v,
4.
—37.0
number
X'
-
8.4
+
45.5
—
-74 ■•'(+■' -■/(■ (
Deposit
9.3
+
48.0
—
not
.••;../
1.0
+
——
9.0
+ 11.5
of
4.4
banks
+
28.0
16.2
—
4
*£6
having
trust
// (y-X
"
•
"
X
,,
.'4
ALL CENTRAL
RESERVE
NEW
YORK
-
all
of
groups
flected
New York
reserve
City banks,
security. profits .realized
first half
of
1948
in
the
$7& mil¬
were
lion,
or one-fifth, the peak volume
established in the first six months
of 1945.
X
;
v
(Recoveries
charged-off
than
a
of
assets
previously
were
ago. in
year
smallest size banks.
all
greater
but the
-
In many
stances the expansion in total
coveries arose from the
because
of
CITY'BANKS} |
each
group
.bad
setting
up
also .the
four-fifths
of the
cated in
the
side
SAMPL_E BANKS
v
OUT*>IDE NEW
v
YORK
/.
•(-
-
•
■
•'
V
Second District out¬
York City had set
up
(X-
5.0
' •'
;• •'
,
| (.|
•
■
X; |
'((:■' 'X
v/
77*'.. ■( V./
;
.
!■'*:
i
deposits
over
t
(/;+:• (•+
«•'
■
1; (,v
'
Uli
#20 milli on.".:/
1 ■'
.("/
2*0
fy
:
,
with
•
v:
!
than in
with
deposits of
#5-20
1 -0
v';/
•,
;>
( •>
ri 7
deposits
•
•
1
'
.
•
'*
\
y
;
the
millio n
'*»••
--
...
,T- [•
■/,. •'/.
•(
;
provide
tection
thus
levels in
..
,
'(•05
1945
1946
■
4
%
'.-,1
•
'
.
r
v.l'
1947
-•4
£ Plotted
on
ratio scale to show proportionate changes.
are
usually oh a
Despite the gener¬
increased
substantially
-
.
in¬
banks,
of payments which has been
in
effect since 1943.
The volume of
net profits retained as
capital to
0.1
-
1947
tinuing the steady upward trend
with deposits under #2 millic
v.
on
smallest
,
•
/«*'•■.
«.i
#2-5
of
ally lower level of net (profits,
dividend
payments
again
were
higher in all groups of banks, con¬
^
,(/
0.2
of
payments, based
comes,
"cash basis."
'
0.5
with
j
whose .books
milli on
:
1 h
..
the
first half of 1947, in
line with the!
currently reduced
taxable
income; in
the
larger
banks and the lower actual income
tax
|
///
jj
Reserves set: aside for taxes oh
net income were
generally lower
-
,;;i;
'C.h
the
1948
was
depositor
reduced
from
where
pro¬
rather
last (year's
all groups of banks
smallest,
8.6%. "
The
power.
the
inducement
are
;
nonbank
ing
sell
of
the
the
the
ten
bank
federal. Reserve System,. In¬
deed,
the
restricted
enable
tem to
•
•
premium—running
many
ment
to one and
one-quarter points—over the orig¬
inal purchase
pegs
up
price.
established
as
the.
in
lic
placing
debt
as
these
to
is
;
for
>
their
to
maintain
the
way,
such
by
could
be
System
absorbed
multiple
credit
expan¬
;
'•
"By this 'solution' the Federal
Reserve
presumably
would
con¬
tinue to inflate their- government
•
bond
bliy'
savings
created'
able for
sion.1'-.
-
holdings
without
predeter¬
mined limit, and in so doing facili¬
tate
increased lending
securities, except for limited
purchases
Sys¬
through increases in reserve re¬
quirements and thus be unavail¬
s
forbidden
'to
was
Reserve
acquire more—if necessary
more—long-term govern¬
securities
serves
much of the pub¬
possible outside the
were
Federal
purchases
The upshot is an
undoing of the work of the War
Loan drive committees
during the
war
the
au¬
reserve
Chairman McCabe of the Federal
Reserve Board stated,- 'new re¬
In short, the
invite sell-*
invitation
for
reason
long-term yield level.' In this
ing • and, with -the "record-shatter-,
ing demands'.for funds, it is not
surprising that
being accepted.
stated
thorizing increases in the
requirements at this time
the; nonbank lender caii
get out at par; on the other eight
issues the. Federal Reserve pays a
issues
Presi¬
reserve
requirements of member banks of
lender
out
the
on
-
dent's proposal to increase
price
investing opportunities. Qn
or-
two
to
Committees
rency
increasing
by
de¬
partments.
bank lenders.
buying them up and in so
doing
creating problems of credit ex¬
non-
have
The
reaction of the
(Now^ from ^alL the
evidence,, .the (Reserve Banks are practical banker—if one had been
pansion
cials
which the
themselves
Reserve
view
with
called upon to testify—might well
been: 'Why crack down on
us
offi¬
that
so
our
competitors
take the business?"
mis¬
can
And it is true
that, under prevailing conditions,
givings.
where an• insurance ^company has
;
"Redemptions of Treasury- bills
as
ready
credit
to Federal Reserve
access
as
any bank it makes
practical
difference,
little
from
the
standpoint of inflationary credit
part of the Federal Reserve's
pur-'
chase- of long-terms.
The recent, expansion, whether a given loan
is granted by. a commercial bank
rise in yields on
Treasury bills
or by some other
and certificates'has
helped the au¬
type|ot lending
thorities -distribute in the
agency.,
• •r.
<
r
;
(
•
.Dividend Payments* Higher
£ '• >--
'
of
-
constantly in the background dur¬
ing the brief hearings before the
Congressional Banking and Cur¬
held
by
the
Federal
Reserve
the city banks
Banks; at a rate of $100 million a
sample banks lo¬ week since
July 1, have offset a
.|':;(:-X J
10.0
(v
New
As of June
such reserves.
CltY
excessive
of
and half
£0.0
in losses and
assets.-
on
means
banks
The Bank
was
in
this
re¬
19.47
for
loans.
using
fixed values, and at the
time curb tendencies toward:
credit expansion, was
same
.
other "nonbank" lenders who
^problem (of how} to (keep
trarily
banks
eligible to buy. The sell¬
ing has originated with insurance
companies, mutual savings banks,savings and loan associations, and
banking system. (The commercial
.large
deductions
reserves on
further found that the
of bad debt reserves
30
(
which; commercial
not
are
in¬
recovery
date of part
the March 15 tax
charge-offs
"V »-
issues
(vrhd
government, bond pricees at arbi¬
War Loans in favor of other lend¬
attained in the first half of
either 1945 or 1946.
For the cen¬
rise
,
the latest phase—since June 23
has. beep concentrated on the
W4*
Loan, drive 2Y4 and 2% per
cents,
-re¬
primary factor in the substantial
; '•
"Letter"
and
umes
policies for the, alleged
market ir <$>
an
the
..
.
ago
in the various groups of banks
shoWn in the table are from 7% to
39% of the peak semi-annual vol¬
tral
.
Terms "blunderbuss- raising of bank+
requirements.
I
par.
year
banks
half-year
banking system, are
Suggests restrictions on sales, or
pressures.;
"Support of the bond
offer
a
to bad
loans in the last
periods.- ;
/
on
says:--
pegs
lower than
were
debt
,
300..0
200
"
securities sold
purpose
are strongly assailed in the
Sep¬
tember /'Lette?" of the National City-Bank^ (After
citingvthe Sharply
accelerated; rate of sales, to the Federal Reserve-Banks, the
lending
..
r777-:-7::\.7^ 77ri
V
'
sur¬
/'
((-.'"
of the tax reserves set
up in
and later found oto be too
Size
•
OF DOLLARS
gain
a
two
The -Administration's;
monetary
of curtailing inflationary pressures
their
on
Groups of Second District
Member Banks by Semiannual Periods*/;
MILLIONS
taxes,
by the smallest size
•
'
—
control
on
charge-offs
debt reserves
reserve
Additions to net current oper¬
ating income, before income taxes,
arising from profits on securities
.'
—196
—
the'
operating expenses enabled the
city banks to show a 9.2% rise
in net current
operating income
+17.1
9.6
+
6.1
+ 201.5
41.1
—
7.9
5.2
+
+108.6
'
+
+
+
+220.0
.-—4
0
7.4
2.4
—
18.0,
8.2
+':.
5.1
+
earnings
is
8.8
C 7.9
—-
Profits
v
+
25.3
+i2.4
__r..4
departments.-7
Net
+.23.9
+
+
taxes
—
.♦Change
+
421.5
+
expenses.---
sold——
_.
6.2
+
22.9
—
•
charge-offs—
profits
6.1
•—
2.8
+•
22.6
employees
+
2.9
savings deposits—_—-+. 2.7
net income
on
6.3
—
1.2
+
24.4
and
————
and
Dividends
.
—1
earns.,
9.4
—
46.6
Hr
y;
earnings———
operating
oper.
19.1
+
expenses
securities
orr
8.0
1.8
+
+
Income-,—.:——
and
10.1
—
securities—
accounts
Income—,
current
Net current
Profits
Taxes
deposit
wages—officers
time
on
other
Losses
other
loans
current; operating
Salaries
All
obligations--^—-T
on
on
did
Their close
eries and profits
and the initial
Manipulation of; Credit Base
by;National City Bank I ;
| price-lowering below
bank
of
in
Deposit, size
,
'
than
expenses
current
profits, offsetting to some extent
the
declining volume of recov¬
year
in
generally lower level
millions of dollars).
\ / of Government security prices in
5 to 20
2 to 5
Under 2
1948.
Currently, security profits
+ •25
25
,c
15
banks
Humber of banks—
city
steadily rising
net
net
of the small¬
case
a
increasing inflationary
sold
Second
District Member Banks First Six Months of 1948 Compared with
,•/(. ((/ (/; ((>(((
•.
of.
of
Declares price pegs, in attracting bonds into
r
..
gains compared with ■ a year ago
ranging from 5.1% in the case of
the
central: reserve
New/York
City banks to 14.1% for. the small¬
fluctuations
banks,
|||(/Scored
i. the
current operating income showed
reserves
cessation
the
,
and in the
Government's
largely from smaller in¬
in payroll totals,
occa¬
$5-20 million group, 4.8% employment,; as contrasted with
$2+5 miRion group, and continued sizable; gains
r in,
em¬
only 1.3 % in the- smallest size ployment in the banks outside
group of banks,/with deposits New York City.
The city banks
under $2 million. ' (■
also appear to have kept a closer
..f
! Tho Review reported that total check
upon
"all other" current
extent that the provision for bad
debt reserves is utilized, it will
tend to smooth out the cyclical
current loan
ex¬
considerably less than in the
other Second District
groups. The
smaller
rise
in
the
city banks
stemmed
Volume
the
over
was
the' largest banks out¬
the-remalning groups de¬
steadily, with the size of
in
operating
operat
decline"
occurred
months
following/six
4
last year's level, but
the rise in New York
City (2.4%)
the
in
'/((Xll;
The'Review
current
outside
later. Ex^
cept in the smallest banks, where
the growth of operating income
was
the
dominant
factor,
the
highs in the various groups coin¬
for all groups of banks in¬
penses
of total
aside in
resulted
bad
Such addi¬
,
7.4% ;
clined
mainly from a larger increase in
gross
income and a relatively
serve
to
city. (The proportion of
total current operating income set
loans, as authorized
by the Treasury ruling of Dec. 8,
1947, while the better showing of
the
amounted
current operating income in both
the central reserve New York City
for
reserves
Operating Expenses Rise
.Total
the
a
operating
city the earnings has exercised a
stabiliz¬
established six months, ing influence on the level
of
were
size
est
of
1948, ad¬
for bad debts on
in
while in the three larger
groups
City banks.,; Total current? high;
operating income in most of- the later
greatest in the" larger
were
tions
ing New York City) was caused
maiply by charges to earnings for
bad debts
months
banks of the District.
decline
in the largest size groups (includ¬
the
six
ditions to reserves
profits declined
•
the war,
size
York
first
other
$5-20: million
groun
reduction in
the
profits in the city banks-; year as the
sustaining- influence
reached a high in the six months
of
security -', profits ( evaporated
immediately following the end of Subsequently;: the
and
:
in
which
that net
con¬
trend
upward
substantially in. all
than
col+. groups of banks. It will bo noted
charges
accounts
such in the past by many banks
which have regularly set up re¬
net
Consequently,
ing earnings extended the
the drop from the
peaks
tinued
as
in the
securities./
accompanying chart,
*3
previously, charged-off
age
changes and(thus facilitate
comparison; between the various
the
shown
coveries of
in
the
banks,
volumes of
,
securities sold and
which is drawn to. show percent¬
between the first half of 1947 and
member
on
shown in the
enlarged
by gains in trust department in¬
come and larger income from nonserves for possible loan losses out
of net profits after taxes.
During Government securities.
of
with' the. Peak
profits
se¬
rose
in
policy is undoubtedly conserv¬
ative, and it has'been recognized
accompanying table, indicate that
cided
re¬
S.
a
Federal
York
for the
and
September^,. 1948
interest
lected
re-3>
Reserve District the consolidated
returns of representative groups
New
reserve
banks
Thursday,
Government
on
securities.
"Monthly Review" for September- of the Federal ReserVe
of
City
V
:
curities—a decline resulting from
the reduction ii>
holdings of such
or
I The 35 member banks of the Federal Reserve
System in New
York City showed a decline of $13 million in net profits as compared
with the corresponding 1947 period, according to information con¬
tained in
decline
ceived
19%, from 1947 level reported.
(' Smallest size banks had better showing because of smaller
bad-,/
X/|, /.:./. "II
*(.} .(debt reserve charges. /(|:|;'|
Bank
central
the
income,
accrued! from
generally
"
•
both
offset the
of
Decline
loan
CHRONICLE
sample
greater volumes and higher, member banks in the Second Dis¬
rates, was more than sufficient to trict; outside New; York City is
J
%
Reserve Banks
the
cases
Earnings Decline Shown by N. Y. City
&
it
but
increased
|X||.
( The
trend of semi-annual net
profits from the-first half of 1945
through the first half of 1948 for
,
open
market
some
of their
"Equally. important
.holdings of-
inconsist¬
short-terms. |« Also,(the
.Federal
withdrawn
fixed
encies of policy; became apparent
in the: discussion of bank lending
supports from bonds held
mainly
oy commercial banks. (.
volumes.) It
Reserve -.has
"Nevertheless,"
" t h q
"Letter"
continues, "the unmistakable tend¬
has been for the
Reserve's total portfolio
ency
Federal
of
gov*
ernment.securities to rise.. This is
tendency which, in the circum?
,???» is,; undesirable and un~
healthful.
The-crux.of the prob¬
lem
obviously lies in the pega
levels for the War
Loan 2y4
jVz per (cents.
4There
are
direct ways out of
this
One would be to
place
on
and
(two
dilemma.
restrictions
sales.
The other
would be to
price to decline
below
that a holder of
the War
allow the
par
so
Loans
J?.e
first
would
suffer
solution
trolled
that of
some
loss
out Prior to maturity.
is
that
-economy. > ;The
a
price
of
a
The
con!
second
economy.
if
is
was
brought out that
the bank loan classification show¬
ing the major increase this year
was
mortgage' loans,
backed/b(y
government guarantees.
of ( the
principal
And one
.(purposes for
which the Congress had been con¬
vened
to
further to
was
reduce,, the
and
enlarge,+not
amount
of money
credit available for building.
.."Higher member bank reserve
requirements not only would con¬
flict
with
government policy
and cheap
borrowing rates for the Govern¬
ment
itself, but also would in¬
volve risks of shutting off credits
of
the
easy mortgage credit
for essential business purposes.
a
letter
Banking
to
the
and
chairman
Currency
of
In
the
Commit¬
tees, Joseph M. Dodge, President
of the American Bankers Associa¬
tion, stated:
-•
v;,
-((IM
COMMERCE
168Number<4732
Volume
Credit has two ^aspects. One' used, the ratio of expansion of:
member bank credit based on
to' consumption, . and the
other to production.
The use Qf given volume? of / reserve- bank
FINANCIAL CHRONICLE
(1017)
?i
7~most recently
in
relates
"edit
business
volume.
Someone has to ask for
credit before it, is v. granted, : - Its
use is based on ihe need for it.
If business activity is to be con¬
tinued at the present volume and
at present high price levels, there
will be a continuing need for a
correspondingly - large . use, of
follows prices and
,■' ;/ ■<' /■' y$ / / X. / //-x/X// %
must he careful not to
credit.
m
«We
contribute to an economic reversal
so freely
prophesied and wished
the Soviets*
by
lor
-
We must be
that the cure proposed does
sure
somewhat/
possibility of its Use will
introduce another factor of
NEW BRANCHES
tion.
NEW OFFICERS, ETC.
of
base, and at the
New.* York announced
expense
of public
1
Colonial
iueeman, President^
Company
of tral city branch office at Chestnut
Trust
In
lombo"; Was
Fund
formerly
on
with
the
Continental Bank and Trust Com¬
.
.
.
.
.,
.
.
i
.
time deposits, respectively, X in-, eral Reserve Board to its power
stead of 10 .and .4 points as the to suspend the reserve require¬
President had suggested.
Even ments qf the Federal Reserve
,
figures adopted, if put into ef¬ Banks, and on the basis of the
fect, would require a conversion current gold reserve, the Federal
of at Jeast^$3^:>billion oftbank; Reserve System has a potential ca¬
pacity to< inflate its government
earning assets; into idle cash."5 v
the
The raising of bank reserve re¬
quirements/ is, % criticised; by v the
National City Bank's analysis as
follows:
:-
"From
some
ket
»
.,
quite another, .standpoint,
students of the money mar*
have ? minimized. the effec¬
increases in- reserve
tiveness- of
under the
thatthe > Federal
requirements
assump¬
tion
Reserve
Banks would
simply take over the
necessary amount of government
securities -from the banks,
and
thus nullify the effectiveness of
their action.
"The
serve
two-point advances in
requirements ;of
re¬
the -New
security
This is
holdings to $67 billion.
more
than three times the
cash; the Federal Reserve Banks
!
bought them. The upshot was a
vast churning: arojund of funds to.
little evident,
purpose,'
1 /"It is" difficult tolighten 4tp
credit of the authorities undo with
pup: hand; what: they set 'out to
accomplish with the other," the
Bank ' continues. " "Nevertheless,
qve^rif the Federal Reserve freely
buys all government securities of¬
fered, increases in reserve/ re¬
quirements. can ..have vital, 'un¬
planned' effects.
They can im¬
■
'
Absorption
of
the
Manufac¬
August 16, was reported
by the Board of Governors of the
Federal Reserve System on Aug.
N. Y., on
Title
established at Cohoe$.
*
office
at
a
margin of 12% billion
over
would not interfere with the
current, policy: of
pegging > thje
-prices of government bonds. Nevr
erthelesfc* proponents of 4he-pro¬
posal 4elt* that there; was /some¬
thing to* be gmoed; by, calling -at¬
tention' to /the reserve ■? require¬
ment and credit policies of the Re¬
serve Ranks and Board which, lie
at ^hp, very; base of the /credit
pyramid.
ages
Conclusions
not find, If
anyone had hoped that it would,
any new patent remedies for- in¬
flation, any easy out from the di¬
_
"The Congress did
effective Aug. 16,
of $25,000 of new
000 to $125,000,
by the
stock.
sale
t
Directors of the Industrial Trust
Co. of Providence, R. I., on Aug. 30
appointed Albin E. Pilblad as As¬
sistant Treasurer of the company,
it is learned from the Prgvidence"
Journal" of Aug. 31. Mr. Pilblad, it
is. stated, has been affiliated with
the trust company .since 1922.
■
H<
Hi
;
Owen
Morgan,
Hi
Vice-President
and Secretary of the
Society for
Savings, of Hartford, Conn., died
the
Land Title, the others being
Jenkintown, Germantown,
Upper Darby, Norristown, West
Philadelphia, Frankford and West
Chqstgr,®Z:X:x;M
in
phia National Bank of Philadel¬
phia, Pa., died on Sept. 1. Accord¬
ing to the Philadelphia "Inquirer"
Mr. Reinhold began his banking
career»/with the xFirstX National
Bank pf Lebanon, Pa., in 1906. He
later joined the Franklin National
Bank, Philadelphia, and was ap¬
pointed Assistant Cashier in 1919.
of
merger
Franklin National with the Phila¬
delphia National in 1928, he be¬
an
officer
of the
latter
in¬
stitution and in 1940
was
Vice-President,
Vlqe-Presi-s
-
and
elected
dent and Cashier two years
later,
Mr.
State
Reinhold
served
Vice-President
as
of .the
in
and
1944
Regional Vice-President in 1945He
46.
was
also active in Phila¬
health; and
■
$
welfarq
;
.
*
Hs
•
*
The directors of Union National
will
for
open
to
the
facilities
quarters necessitated
by increased business.
':
Charles L/LeSourd has retired
the
Seattle-First National
from
Bank
of
Seattle,
service of
Wash., after a
than 42 years with
This is learned from/
more
the
bank.
the
Seattle
"Times"
the date of his retirement on Aug..
31 was Vice-President and
visor of trust department opera¬
tions in the bank.
The "Times"
likewise states that Reno P. Ran¬
som, Vice-President and a mem¬
ber of the trust department
sii^ce
1943, has been named to succeed
Mr. LeSourd.
///XX/xx://.' *
*
election of two
officers
of the
Commerce
staff members
of Seattle* Wash., ef¬
Aug. 27 by Andrew Price, Chair¬
and Maxwell Carlson, Pres¬
man,
office in Seattle, Sheridan P. Gal¬
ant Cashier and Robert W, Jeff-?
Assistant Auditor, it was
stated in the Pittsburgh "Post Ga¬
zette" of Sept. 3, which further
said:
f/Emerson StiUey was appointed
Secretary; H. Mason Reed
and George K. Leitch, Assistant
Secretaries; N. Paul Jones, Assist¬
ant Real Estate officer, and Rus¬
sell K. Zeiler, Assistant Auditor,
all in the trust department. In the
corporate trust division, William
lagher
In/the decision
pf the
T^asuryani
Federal Reserve authorities, once
consideration
nouncement
was
was
$250,000. The an¬
made by P. Blair
sameXtime/ there/is/a-- Congress had adjourned, to_<jraw Lee* President of the 101-year-old
on their existing arsenal of powers
forced
bank.
After settlement, the bank
liquidation of
government bonds by the banks to bring pressure to bear on the will continue to occupy the prop¬
cost and availability of short-term
cause
contagious unsettleerty until its new main office at
jjent in the government security credits; One has only to look the southeast corner of Broad and
back to the vigorous effect, on Chestnut Streets becomes avail¬
jnnrket. with entirely unpredicta!?effects. As President Sproul the whole credit situation last able upon completion of exten¬
the,
risk
that
.
t
the New York
Federal Reserve
»ank
testified:'
when
Winter,
the
Reserve
.
System: lowered its suppork levels
long as we continued to
for
government securities artcf
nJe*our ^PPort to the Governsecurity market, the initia¬ raised the discount rate, for a
te
will -remain with the' eom- demonstration of the effectiveness
'So
thSciai banks
thmr
^
tft fW
be
and
the
market
; of
powers
banks,,as to whether sparingly
wake use of
cre4it;o,r not.
more
re-
To be sure,
extent that the authority is
there for
straint
on
now
held even~ when
used.- -The
tools- arq
everting an orderly re*
credit expansion." /
sive
alterations.
The new
loca¬
tion, which the bank purchased in
1945, and the adjacent Hallowell
Building on South Broad Street,
acquired by the bank early this
year, will be known as the West¬
ern Saving Fund Building. Trans¬
fer of the bank's main office to
Broad and Chestnut is expected to
take
place
next year,
about the middle of
at which time the cen¬
At the head
promoted to Assistant
was
Cashier, and assigned to loan ad¬
ministration
Shannon
duties.
was
Edward
elected
C.
to succeed
,
Trust
E. Pensom
was
named Assistant
Secretary."
him
as
Manager of the credit de¬
partment; Mr. Gallagher joined
the N. B. of C., organization last,
March after three years with the
Reconstruction
where he
Finance
banking experience, beginning in
Port
Angeles.
Mr. Shannon
Latrobe
office
of
Mellon.
will $erve as an advisory commit¬
Mr.
tee to the new Mellon office.
will be Chairman of the
committee."
Rogers
.....
four years in thexArmy. Prior io
that he had been associated for 10,
with the Central f Hanovet
years
Bank and Trust Company in New
Bert L. Sellin
Cone
becomes
asso¬
ciated with the La Salle National
Bank.
Chicago, as Vice-President
and manager of its personal credit
department. ; John
C,
Wright,
President,
in
announcing
Mr.
Cone's appointment on Sept. 7 in¬
dicated
that he
of
bank's
the
would
all
lend¬
was
promoted to
Assistant Manager of the Ellens-
burg Branch. He began his bank¬
ing
career
ip l935
as a messenger
at the Yakima Branch of N* B»
he
C.;
elected
was
qf
Assistant
-an
John M. Schutt
promoted to; Assistant Maq-
sger
of the Vancouver
(Wash,)
Branch, where he has been Assist¬
Cashier since
ant
Mr. Schutt
G,
came
to the bank in October, 1946, after
York.
Fred J. Metz and Martin G. Skav-
Keith
rp„
of the Seattle loan application di¬
"Richard K. Mellon,
the
o,
vision/He has had 20 years of
Pittsburgh. The "Post-Gazette" of
of
C
had been Assistant Chief
Cashier in 1944.
-5
as
fective Sept. 1, was announced on
was
'/
Xx;;;..:XrX////X:
National Bank of
X "Directors of the Latrobe bank
deposit with
* '
Promotion of three officers and
pointed Benjamin F. Kuhn Assist¬
27, added:
An
cheap money
Qf Sept. 1,
LeSourd at
which notes that Mr.
ish will be Assistant Managers.
on
Federal Reserve Banks.
of wanting
Jalock south
one
new
Jdle cash to place
lemma
at
Sept. 20, C. C. Pearson, Assistant
Vice-President and Manager of
the branch, has announced.
The
bank, which has been at Holly¬
wood and Vine since 1932, will
Chairman
of the Mellon Bank, and James R.
Rogers, President of the Latrobe
bank, announced Thursday that
Paul H. Miller, Executive VicePresident, will serve as Manager
serious
business
ident of the bank.
director of the First that city, from which the fore¬
National Bank of Hertford.
going ig quoted, in its issue of Aug.
>!«
H:
Bank of Pittsburgh on Sept. 2 ap¬
a
*
*
Hollywood office/ of
California Bank of Log An¬
new
Vine Street and Selma Avenue on
American
Subject to the approval of the
#
H«
The
Super-
The "Inquirer" added in part;
stockholders, the First National
Bank in Latrobe, Pa., will become
the Latrobe office of the Mellon
National Bank and Trust Co. of
Savings and
Aug. 30, issued by the Office of
Comptroller of the Currency.
mbve its
Milton D. Reinhold, Vice-Presi¬
dent and Cashier of the Philadel¬
the
to the Lincoln National
the
the
"Following
Security National
Chicago, 111., has changed
name
geles
Street, in charge of John
It will be
the eighth branch title office of
Steele as Manager.
Aug* 51. He was. 65 years of
Morgan was a member of the
board of trustees and the Execu¬
tive Committee of the Society for
Lincoln
title
age,, reports the Hartford "Daily
Courant" which also said that Mr.
qd
its
South
2302
reys
<s
4
The
Bank of
F.
$
capital of the Barnstable
County National Bank of Hyannis,
Mass., was increased from $100,-
member of national committees.
*
* Xx:- 'X::.^.x/.;;/
Broad
groups.'?
%
will
Philadelphia
The
low
and
*
Trust
and
South Philadelphia
a.
insurance
a
XX-X: 'X/XX'
Bank, effective Sept, 1, it waS in¬
dicated in the weekly bulletin,
X';XV:XX''
*
Bank
of
Company
open
*
delphia
a margin of $13' billion for ad¬
ditions to the current portfolio,
in
ther
of
Mr. Cone ha&
active in civic and banking
agreement of sale has been
hardships on partic¬
entered into by the Western Sav¬
ular localities where the" banks
and dear: inoney at one and; the ing Fund Society of Philadelphia,
nave been faced with
heavy loan same time."
The "Letter" conh covering the sale of 1000 Walnut
remands, da not-have enough gov¬ eludes: "Expressions of confidence Street, site of the bank's home of¬
ernment securities left, and have in the efficacy of legislative measr
fice since 1855, to an undisclosed
Jttle other recourse than to cut ures taken were notable for their purchaser. The sale was nego¬
dpwn their loans in order to raise absence./ The clearest
gain was tiated by Samuel Beck and the
pose
'
Land
came
turers Bank; of Cohoes, N. Y., by
the National (City i Bank/of; Troy,
have six branch offi¬
throughout the city.
:*
the
required gold cover, now 25%
of combined; note and deposit lia¬
bilities, were restored tq the 191445 figures of 35% against deposits
and 40% against notes, the calcu¬
lated ceiling on Federal Reserve
holdings ' of government: securi¬
ties would be brought down to
36% billion. This would still al¬
director
as
dent of its Detroit Chapter and aa
main office.
new
Bankers Association
Chicago banks, in Feb¬
banks put government securities
on the market to raise additional
will
present $21% billion, and $43 bil¬
lion above the peak holdings of
,21. As. a result of the absorption a
$24 billion at the end of 1943. If branch of the Troy bank has been
the 1945fpeak holdirigs, ,
■ / -fx f>
ruary and again in June/ worked v • "II is; thus quite clear, that the
out" in very much this way.. The restoration, of the former percent¬
York and
with the
com¬
addition, the Western Savings
ces
Tube
Works* Ltd. of Pittsburgh,
and the Carnegie Steel Company,
of which he was a junior partner.
Juniper Streets will be
bined
Reserve
pany, where he had been active
a reaction worse than
over the past 15 years in corpo¬
disease. Credit on a national power
ments isn't going to bring down rate
reorganization and manage¬
basisis a delicate mechanism. Rude
handling can produce disastrous the price of meat or the cost of ment.
housing:/-; ;;xv;/;X/;/-:;/x/ J//;/*/..
.x;/.•/.//■ *
*
*
/; ///x^/;
chain reactions.'
. •: :v;x/ /
: •
i
"The- problem is to find « the kQ 'Oh; athird proposdl| to restord; v Hampden Evans. Tener, Honor¬
right middle rood, /ppttingj ithe the/old/andi higher /irei$erve/:rq-/ ary; Chairinari of the Board and
former President of ; the Irving
qiiirementsXfbrx/the/^
proper /degree; x6f/^
lenders without precipitating an serve Banks, no: action was takep. Savings Bank, New York, died on
undesired curtailment bf ] produce This was understandable .since August 27, at his home in Monttion and employment. In this rer there had been little advance dis¬ clair, N. J. ( Mr. Tener who was
82 -years of age, was onp of the
?
spect, increasing reserve requirer cussion of it/"The: proposal to apply higher organizers in 1907. of. the old Fi^
$ents/is/a; blunt ^ instrument,..a
blunderbuss ; that / hits
member ; reserve requirements; to the Fech delity Trust. Company, now the
banks and borrowers from mem¬ eral Reserve Banks,, as well as to Marine Midland Trust Cox of New
ber banks but; leaves other credit member banks, originated in Con¬ York* He was also a director of
gress. | It had the evident pur¬ the Montclair Trust Co. and had
channels wide open.. #. V1 .
1 .
^Appreciation pf .these, risks and, poses Qf reminding the Federal been a director of the Irving Na¬
In 1907 Mr. Tene?
inequities,, together with the fact Reserve authorities .of, the infla¬ tional Bank.
that no 'one' "seemedXanxious ftp tionary potentialities in their own became, a trustee of the Irving
take the responsibility for a gen-' operations, and of .shifting/some Savings Bank, and in 1910 was
era! crackdown on credit; doubt¬ of the - emphasis of Federal Re¬ elected; to ( the
Presidency ; He
less explained the decision to, per¬ serve policy from protection of served as President from 1910 un¬
Before becoming asso¬
mit Increases ;/in/ member /bank* the bond market to protection of til; 1937.
the purchasing power of the < dol¬ ciated yidth the banking field Mr.
reserve requirements of 4 points
Without resort by the Fed¬ Tener was with the Continental
and 1% points, on demand and lar.
not bring
and
System or in the sincere desire of
the Government to do something
the
Foreign,
affairs and has served the Ameri¬
Institute of Banking as Presi¬
o.',
Sept. 7
appointment of Theodore Co¬
lombo, as Trust Officer. Mr. Co¬
Giving the Fed¬
System additional
to increase reserve require¬
the
can
Artnur
the
about inflation.
with
Administration
Cinchona section.
been
X CAPITALIZATIONS
confidence in the Federal Reserve
eral
served
Washington
Bankers
and
But these gains may well be
at the expense of an extended
period of vfurther yunsettlement in
the Government security
market,
involving our support and a con¬
sequent increase -; of the credit
!
he
war
a
Economic
"/X
tainty and, doubt into the. situa¬
REVISED
as Vice-President
the loan servicing
of
and
member of the
senior loan committee. During the
CONSOLIDATIONS
uncer*
charge
division
News About Banks
credit will be reduced
and the
21
reer
in
as
main office
a
messenger
Richard L, Hunter was
1936.
elected
January,; 1946.
began his banking ca¬
Assistant
Centralia
Branch;
Cashier
he
at
has
the
been
with the Centralia bank since 193$.
direct
installment
ing activities. Mr. Cone comes to
Chicago from Detroit where he
has served for the past 22 years
with the Industrial National Bank
John J.
John
J.
Whipple Dies
Whipple,
partner
-
in
Wood, Walker & Co., New York
City/died on Sept. 2.
22
(1018)
,
THE- COMMERCIAL
FINANCIAL
&
CHRONICLE
Thursday, September
9, 1943
has
long been held in many quar¬
that, whenever justified by
earnings, a dividend should be es¬
ters
tablished
that
would
afford
Our
old
bondholders who got the stock in
'
.
4
Reporter
Erie common stock has been finding its
way into the most active
stock group in recent weeks.
A number of years ago, when the road
first emerged from
bankruptcy, these shares had quite a loyal specu¬
lative following.
As earnings
old
amount
bonds.
to
compared
with
from
rate
of
maintained
was
the
1946
a
low
stock
dropped
high of 23% to
8Vs.
The
1947
a
it
-
sold
at
9%,
above the
V
val
-
of
only
or
1947 low.
point
a
Recent revi-
interest pushed
last week to above
•'
the
stock
16.
The improved sentiment toward
Erie
/
warranted
appears
the
on
basis of the sharp
earnings im¬
provement registered so far in the
current
Despite the severe
weather,
which so
ad¬
year.
winter
versely
affected
eastern
quent
coal
of, the
many
carriers,
tors
and
seems
investors
bility of
dend,], or
on
the possi¬
increase in the divi¬
an extra dividend.
It
to be
ported
the
and
strike,
the
subse¬
road
re¬
substantial
increase
during
first
a
revenues
the
in
Moreover, the manage¬
has been highly successful
in
*
terials.
v
that
It
for
is
particularly notable
the
first
half
transportation ratio
the
year
down 1.8
was
points from
a
year earlier.
This
the best relative show-
was one of
in
the
industry
and comincrease of 0.9
■
pared
with
an
points for the Class I carriers
group. 7
This
7;,7/77 V'
yy
efficiency trend
erated
in
the
month
of
tio,- for
July,. 1947. At
there has been
•drop
in
even
though the
actual > dollar
was higher this year.
For
■
outlay
y
the
seven
the
success
maintenance
months'
ratio
period
there
gain of $14,592,000 (17.1%)
in gross revenues.
Nearly 28% of
increase
revenue
great cost inflation.
.r
totaled
operated
banks
were
AGRICULTURAL CREDIT
a
only $0.54
share
Farm loans
outstanding
in banks at
beginning
in 1947
of 1948
ter
of
fact, I the.
earnings this year
of
full
each
not
12
of
were
months'
the
much
seven
months'
in
excess
earnings
$4,838,000
.
5,716,000
13,457,000
3,675,000
1,458,000
_
1947
'higher rates
month.
Alabama
now
in
results
for
Louisiana
:
60,187,000
42,182,000
86,190,000
48,145,000
effect, how¬
pear excellent for maintenance of
high level of traffic throughout
basis
that
it
of
the year.
seems
entirely
earnings
available
On
this
possible
for
the
common stock
(that is, after allowance for sinking and other re¬
•
serve
more
funds)
a
second
may
share.
best
reach $4.00
or
This would be the
year
since
the
com¬
Illinois
Indiana
Iowa
>$257,584,000 "$114,299,000
136,133,000
84,295,000
350,391,000
153,138,000
„
..
.
.
Kansas
.
Kentucky
Michigan
Minnesota
Missouri .7.
Nebraska
259,538,000 11
95,583,000
118,029,000
171,067,000
top earnings of $5.04
realized in 1942.
a
North Dakota
Ohio
.
Wisconsin
West Virginia
The
sharp
improvement
in-
There
into
.
.
support
prices
would
-
*
<
-
18,990,000
108,278,000
80,758,000
13,931,000
Arkansas
___
.$124,503,000
'
New Mexico
Oklahoma
Texas
...—..
—...
9,024,000
58,467,000.
151,397,000
456,377,000! *'
to
seems
is
slowed
be
rather
.
is
,
.
anyone's
.
t
general
.
agreement
that
if
present
.
.
believed
^777 .7777
in
would
sufficiently,
quarters
some
that
if
"pegs"
should be
to
go
99% and then, if liquidation is not
indefinite support policy would be
an
adopted until
the 98 level would be
reached.
About two
points under 100 is the lowest that
has been forecast by any of
the informed
money market followers, should there
be need to
change current supports because of the
large-scale
.
of government
,
,
liquidation
holdings by insurance companies.
...
BUSINESS TREND IMPORTANT
FACTOR
Business conditions, the loan trend
and
commodity prices are
going to be very important to the
government bond market in the
some
.
economic
be taken
i If the inflation spiral is
running its course, as
advisors
believe, then considerable pressure will
.
off the
money markets.
any immediate change in
However, there will probably
plans of the monetary authorities
requirements, which are \ expected in the near
future.
It could,
nonetheless, result in a more gradual upping
of
requirements, instead of an all-out increase at one
time.
not
beginning
of 1947
(approximate)
be
for
-
higher
.
.
.
reserve
.
.
$4,000,000
4,000,000
24,500,000
3,000,000
:
1,600,000
21,500,000
.
.
the
business picture, should show
signs
as some think it may in theL not; distant
|
of
.
.
of
deteriorating,
future, then the selling
holders should not be so
government
bonds by non-bank
a problem for the authorities.
Liquidation might be
eliminated entirely and these
institutions might swing over to
the buy side of the
market.
There are very few things that
are more
indigestible than sour loans.
*
\
INSIDE THE MARKET
mpch of
.
.
.
Uncertainty
$10,000,000
market,
57,900,000
52,000,000
with
is
the
and future
support
still
very
,
,
.
.
prominent
.
in
the
big question marks
prices of long
bond
requirements
government
being reserve
Treasury obligations.
Commer¬
by and large are
continuing to hold or to build up their
in short-term
obligations.
Some prefer to keep cash
until they know how
hard they will be hit
cial banks
.
.
.
positions
$28,000,000
in
reserve
5,000,000
requirements.
According
37,500,000
to
.
.
by the expected change
.
,:
.
.
reports,
liquidation
of
taps
by insurance
companies has slowed in the
last few days, which
may be attrib¬
uted to the lull in
corporate financing which
usually takes place
at this time of
the year.
Savings banks have been buyers of
shorts and some of the
intermediate-term 2s with an occasional
purchase being noted
in the longer
eligibles.
.
.
.
.
.7
HIGHLY FAVORED
The
partially-exempts, particularly the last four maturities, hav<
going out of the market in
fairly sizable amounts.
The ae
mand has been rather
general, doming from the larger banks in mos
sections of the
country. .
The
been
.
»
$95,000,000
72,000,000
153,600,000
91,000,000
59,000,000
; 57,000,000
77,000,000
93,000,000
76,500,000
18,500,000
88.800,000
64,000,000
7 11,200,000
16,300,000
more
are
over
considered
172,000,000
as
large as it used to be and amortization of tni
the next few
years brings prices down to levels tna
attractive.
...
.
due 1960/65 is still the most favored obligation
although good
buying is also going on in the other three issues.
14.
■>
!,
Montana
Nevada
Oregon
49,000,000
"*182,475,000
AJS'
premium is not
premium
19,000,000
' 64,674,000
.
being pointed
$27,000,000
25,374,000
17,789,000
.
floating supply of these
.
security
limited every time the
banks purchase them; . • •
\
out by buyers of
the last four partially-exempt
wiat the tax-free
return is
substantially better than that available 11
comparable or
longer maturities of taxable
the
obligations. . . •
becomes
is
Wyoming
777 $30,958,000
'
be
some
lowered, they
standing in banks
13,000,000
16,500,000
18,000,000
28,000,000
23,000,000
19,000,000
46,000,000
36,000,000
I
.
new
,
It
Farm loans out
at
these
♦
1947
Southwestern
Arizona
earnings this year,, coupled with
103,662,000
69,682,000
69,197,000
87,494,000
113,341,000
89,501,000
.
244,416,000
268,332,000
52,401,000
144,364,000
133,447,000
11,090.000
pany was reorganized and would
compare with
..
months ahead.
—
.
supports should be altered they will be
reestablished at lower levels
and not done
away with entirely.
An orderly government
bond
market is still
very important to the economic
well-being of the
nation, which would rule out a
completely unprotected one.
What many observers are
trying to do now is to pick the new hot-1
torn level at which
supports will be finally held, after the
plug has |
been pulled.
United
North Central
a
balance
'7,175,000
41,484,000
15,855,000
18,576,000
24,303,000
27,331,000
26,437,000
10,018,000
54,743,000
46,563,000
95,295,000
28,978,000
44',224,000
26,518,000
53,952,000
....
With v the
ap¬
the
$33,429,000
7 4,900,000
.u
Florida
ever, it is probable that gross ran
from 20% to 25% ahead of
last
year. Moreover, the prospects
the
Selling j,y
heavy again
.
was
$200,000,000 of
"Federal" was from one
large insur¬
Fear that support levels of
long governments
continues
to
bring liquidation
.
7777'-7 $87,543,000
,
Delaware
and
,
.
.
Southeastern
—...
.
$12,252,000
70,872,000
67,861,000
91,498,000
89,743,000
.
It appears vir¬
Maryland
tually certain, then, that 1948 will
Mississippi
be one of the road's best
earnings North Carolina
years in recent history.
South Carolina
August car loadings were pre¬ Tennessee ;■
sumably somewhat lower .than, in Virginia
the' like
19,653,000
$16,327,000
Pennsylvania
years
below; the
above
HOW FAR DOWN?
Middle Atlantic
New York
Georgia
the full year 1944.
just
.
for
past three
intervals
.:-VV«
.,
Where
If
J
.
guess,
observers feel that when, as and if a
change is
made, it will carry prices below the 100 level in
order to penal¬
ize sellers of these
obligations.
,
•
New England
before funds and
$0.20 a
after the funds. As a mat-
share
y;
earn-
of
IN SOME TYPICAL
STATES
by banks
.
changed
although
Attached is a tabulation
by states of farm loans made by banks, in
1947 and loans
outstanding at the beginning of 1948
compared with
outstandings at the beginning of 1947.
7
7,],7A:
reserve
the
to
at
.
;
operations of all of the government-subsidized
used by only
467,499 farmers, who borrowed a total of
W
" 1
...
$1,020,301,000.
.
.
-
amount
were
funds and $1.67 after
allowing for
such requirements.
In
the first New Jersey
1947
appeared
.
——
of
*
.
outstanding in these longonly $793,371,000. Commodity Credit
Corporation
loans, secured by farm products in
storage, amounted to $140,504,000.
Fifty-one per cent of the nation's
,v Increased
Federal" intaxes had absorbed close to
$2,700,000 of the revenue gain,
ings had amounted
»
be
.
to
come
seven. months
f
Loans secured by farm real estate
year.
$620,358,000, advancing the
credits
Connecticut 7———; $10,324,000
Massachusetts
11,612,000
Maine
fey
24,324,000
:
New Hampshire
Earnings on the com,mon stock
3,520,000
Rhode Island
]77 tor the seven months
1,781,000
through
July amounted to $2.18 a share Vermont
13,722,000
i
/,
1947, farm production
$4,208,734,000, of which $1,544,357,000 was outstand¬
term
.
The fuhrfe trend of prices of government
bonds, in the opinion
of many money market
experts, will be determined by the
amount
of Treasury obligations that are sold in
the future
by the insurance
companies.
If there, should be continued
heavy liquidation of
government securities by these non-bank
investors, it is believed
i;hat support prices of the
tap bonds will be lowered by the
mone¬
tary authorities.
On the other hand, a sizable
drop in sales of
: ong Treasuries
by insurance companies would eliminate
the threat
of lower "pegged" levels for the
ineligible obligations.
Of the total amount
loaned to farmers in
loans aggregated
Total farm
sinking and other
will
securities.
increase of
ing at the beginning of this
the
the $208,000,000 bought by
less than
$300,000,000 from the beginning of the pre¬
ceding .year. In some states, loans
outstanding actually dropped dur¬
ing the year.
This high percentage of
pay offs is considered an
indication of the prosperous Condition of
the nation's agriculture.
The over-all increase is
accounted for
principally by«the greater
availability of materials and equipment for
capital improvements.
loans made
before
have
ance company.
During 1947, the banks of the United States loaned
$4,969,596,000
At the beginning of
1948, the total agricul¬
outstanding in the banks aggregated only
$2,403,022,000,
interval.
•
on
about
to their farm customers.
tural loans
carried
•
still
are
non-bank investors of the ineligible obligations
last week, with reports to the effect that
tural Commission of the
American Bankers Association.
The survey,
an annual
analysis of bank lending, shows that the American farmer
is being
generally successful in- avoiding the dangers of excessive debt
in spite of current
inflated costs.
>
through to income available for
charges
after
taxes,
which
amounted to
$10,683,000 compared
y with $6,648,000 in the like 1947
was
markets
the "pegged"
prices for the longer tap bonds, but they have been
hit or dis¬
appeared about as fast as they have appeared.
Although the costs of things the farmer buys are
continuing to
rise, American agriculture is
maintaining a sound financial position,
according to a national survey recently completed
by the Agricul¬
agencies
same
was a
this
Bids
of American farmer in■
-
VV
...
the in¬
meeting the financial requirements of
2,977,492 farmers,
the combined credit
modest
a
securities
government
•
time,
the
possibility
termediate term.
Analysis of liank lending shows
•'iK.';? • 'ffc\\ravoiding debt despite
States
•
\•'
.
5,859,169 farmers were served by
their community
banking institutions with credit during the
year.
While'the privately. owned and
accel¬
was
opening
as a
7.
-7... the second half of the year, with a
tcansportatfmi ratio
of
39.5%,
more than 5 points below
the ra¬
.
The
Agriculture Maintaining Sound Financial Status
Despite Rising Costs, ABA Survey Shows
an
controlling operating costs in
the face of higher wages and the
increase in prices for fuel and ma-
;■
V
7/
;
.
7
seven
months.
ment
distinct
a
A
uncertai.
side, despite the firmer tone that has been in evidence
recently
The improved demand for the longer
bank-eligibles is
attribute!
.argely to short-covering especially in the 2y4s due
1956/59.
nj
nartially-exempts continued to act better than the
general
market
Decause they are again under accumulation
by the deposit banks
investors have been switching from some of the
longer taxable
eligL I
bles into the partially-exempts due to the more
favorable tax-free'
yield that is obtainable in the latter obligations.
share
$1.00 rate in
of some such action over
an
.
77
the
would
a
sluggishness of
the
stock's
recovery
is evident
from the fact that even this
year
-
:
$1.60
'.r.
1
I
dividend
"throughout,
•
i7;7;i
This
about
7
By JOHN T. CHIPPENDALE, JR.
plumeted sharply in the postwar effect since reorganization. Aside
period, however, and the eastern^
from earnings, the
company would
roads
generally came into dis¬ the ^ road's conservative scaledappear well able
financially to
repute,
this
enthusiasm
pretty down debt structure, has naturally
adopt a more liberal policy. There
well dried up. Although the $1.00 focused the
attention of specula¬
v
-
their
Governments
on
/
reorganization an income return
equivalent to the interest rate on
U. S. Totals
;
Rocky Mountain
$81,601,000
69,825,000
7,110,000
48,560,000
V
r
"
$22,769,000
24,809,000
6,093,000
'
77
16,191,000
$20,000,000
18,000,000
5,000,000
14,000,000
Pacific Coast
$68,734,000
-—.$4,969,596,000
7
$25,087,000
$21,000,000
$2,403,022,000
$2,100,000,000
1
vVVV
Number 4732
Volume 168
weight
in
size for the
are
K
or
own
housewife, required to pay fantastic
prices for potatoes, is naturally not placated when she
learns that the Federal Government is laying out many
millions to make certain that these potatoes do not
come
into the market at lower prices. She hears or reads sim¬
ilar tales about eggs and a dozen other items which go
to make up
of the unionists.
her distressingly enlarged budget.
Labor and the Cost of
f
took
It
a
become
to
seems
so
to
This realization is
us.
more
pro¬
nounced in rural and agricultural areas, perhaps, than in
highly concentrated centers of population where what are
now politely termed
"production workers" predominate. It
has become something of a question as to whether the socalled farm vote can be won easily by any candidate who
is willing to continue to pamper labor as in the
past. The
farmer
the
is, after all, both entrepreneur and laborer.
is true of the so-called
same
How then is the poor
farmer, the unionist and the housewife, all in
election
—
possible to
one
thing (in public, at
rate) in in¬
dustrial centers and another in rural areas, and some¬
thing else again for consumption in the home without
all factions hearing all that is said? President Roosevelt,
say
one
confronted with
some
any
such situation, met it in
a typical
which, we should certainly hope, would
be political suicide this year. He, pleading spurious war
arguments, merely arranged to borrow money—largely
way
—
a way
from the banks through sale of Treasury obligations to
them,r-?-with which to pay the farmer (and some others,
for that matter)'prices*
saifte
satisfactory to him and at the
'time,* tb enable
housewife to obtain what she
desired at prices which did not reflect what the farmer
actually received for his product. If the American peopleare
ready again to sanction such tomfoolery at this time,
then there is not much hope of saving them from them¬
selves for a long time to come. Some other method must
be sought and found for attacking this situation.
*
Is
.
Facts About the Farmer
The first element in
any sound approach to this problem
plain, simple,
everyday frankness
honesty. The
straightforward way that he
as a
reasonable man cannot expect, and should never have
expected, to continue to get absurdly high prices for his
products. He needs to be reminded that he will have large
farmer needs
to
be
tofd
in
and
a
quantities to sell, and- that he can do very well without
such prices. He needs further to realize that it is
simply
out of the
question for him to continue to receive largesse
running into hundreds of millions not to say billions of
dollars
a
year
reason and self-respect as not to be able to see the
truth of such statements
But such doctrines
as
these.
hardly be successfully ad¬
vanced by a
political regime which does not talk the
same
language to the labor unions. Of course, it is no
Part
of
the
functions
can
of government to
decide what
Wages should be.
By the same token, neither is it any
Part of the
duty of government to say how many hours
a
man shall work
for this or that pay. Not only has
government from time to time in recent years given
father direct
encouragement to unions
aild more
aws
pay
for less and
upon the statute books
^
demanding more
less work, feut.it has placed
of the nation and, in general,
Govern¬
surplus organ¬
be revised. That is what
production
—
reduces
the
of
we
these
For the present there
be
question
no
but
lows
that
the
once
stock
market
by its increased momentum and
higher prices begins to generate
confidence—the
entire
reason
would go a
—
It
may
this
long,
year
be that
we
have occasion
that it would be political suicide to
suggest such
obvious facts?
that is four months away.
reason
.J.
It will be of
more
-'V
.•
*
p.-'-'Ji
Y:;-;
%{Jv>j-
TV'*- '.v..
:
than
ordinary interest to observe how
the candidates this
year approach and deal with these cur¬
rent dilemmas.
"
!
'
<
,
look
into
the
not
or
Through
The Crystal Ball
enumerated
of
The
possibilities and probabilities
temporarily could make the
and
some
inveterate "Bull" miserable. Prac¬
tically all of the
to
scarecrows
came
life—particularly the break in
commodity prices—a decline in
the bond market, and
increasing
tension with
The
subsequent reaction from
179, or a little over 50% of
193 to
the
Soviet Russia.
previous advance,
what
we
tion in
a
term
normal interrup¬
market, sometimes
a
bull
designated
completed
as a
"secondary."
question, of
course, is "why,"
the immediate answer is
(a)
fear
of
For
Upswing
Npw we are ready for another
upswing right through the Presi¬
dential elections.
It is
ion
our
that
well considered
European
velopments,
which
opin¬
political de¬
so
largely
have dominated the stock market,
future,
(b)
inability
to see through the
maze,
of confidence in the
(c) lack
past Admin
istration
(4)
fear
of
punitive
against capital and the
capitalistic system and other de¬
terrents too
It
is
that
well
the
worth
stock
praises
to mention.
numerous
remembering
market
earnings
never
and
ap¬
prospects
with any degree of exactitude. In
fact, security markets
for
ous
are
notori¬
over-emphasizing
or mini¬
set of conditions. That
any
is
why, .there is po sucfe thing .as aj
fair .appraisal., '
>,•!.' V-.,, •.
'
..
*
•'
•'
V
,
1
:
{»'
will
probably
place if and when we
change in administration.
take
have
a
The Market
The stock
Underpriced
market, in terms of
relationship. It is well recognized
by technicians, analysts, statis¬
ticians, economists, business men
and the general run of investors,
that
the
relationships
between
earnings,
dividends and prices
completely have been out of line.
Many securities have been sell¬
ing on a basis of four to five times
earnings, when the recognized and
accepted yardstick over a period
of a great many years is at least
eight to ten times earnings.
Many securities also have been
selling on an income yield basis
of 7% to 10% when the normal
accepted expectancy is nearer 6%.
Minor
major
and
minor
security
cycles. There seems to have been
confusion by some readers of
my*
last article as to whether I was
bullish
bearish.
or
The
answer
specifically
is as follows:
The
long-term major cycle, according
to our studies, started downward
ruptions) for
and
a
one-half
words,
1951.
into
However, there
temporary counter
substantial
cycle.
to
in
years;
sometime
other
1950"
are
cr
always
movements of
duration
within
that
From the Summer of 1946
the
minor
pring
of
1948,
both
the
and
major cycle were in
Again
according
to
our
studies, the minor cycle is sup¬
gear.
posed to be in
tion
from
upward direc¬
an
the
Spring of 1948 to
the Fall of 1949, so that for the
next ;twelve
to
reason
months
disturb
we
see
or
*
(2) -We can believe and hope
that the peak of commodity prices
.
has been
passed, so that the cost
living index (which cumula¬
tively had been going higher and
higher), now should turn around
of
and
go
down.
this
If
is
correct,
that in turn could bring about an
entirely different labor picture.
(3) Hence we can bring our¬
selves
next
to believe
few
years,
that
of
labor
expensive
costs
during the
there
minimum rather than
troubles
a
with
strikes.
will be
a
maximum
portfolios.^; Of
Plan for Midwest Exch.
In Discussion
CHICAGO, ILL.
Stage
While plans
—
for the formation of
large Stock
Exchange in the Mid-West which
would
be
a
consolidation
a
of
ex¬
be a meeting early this Fall of
committees from all the exchanges
for further discussions.
The con-;
servations up to date have em¬
bodied the possibility of merging:
exchanges into one central
these
exchange,
with
a
the
at
market
the
of
corporations
listed
be
on
that
place
stocks
central
one
idea
the
the
point,
through such
markets
great
for
Midwest
that
these
are
currently
Exchanges would
improved and broadened. The
plan
does
that
this
not
propose or Jntend
market
place
should
resultant
compete with the Eastern markets
Industrial
to any greater extent than the in¬
evenually
should become
stabilized and once again margins
of profit reasonably estimated.
(4) If one is willing to make a
bet oh the election—that is to say,
we will have a Re¬
believe that
-
no-
course
Psychology
World War within the next two
*
minimum of four
changes
now
in
existence
in
Chicago,
Cincinnati, Cleveland,
Detroit, Minneapolis, New Or¬
leans
and
St.
Louis,
have
been discussed, they are in a con¬
are a few instances:
versational stage only according to
(1) "Venture" capital can be the heads of the Chicago and
persuaded to believe that we are Detroit Stock Exchanges, v
not going headlong into a Third
It is understood that there will
three years.
>
in the Summer of 1946 and should
continue down (with usual inter¬
-.1
7
Cycles
during the past few weeks,
v/e
have been adding to
port¬
Economics and statistics make
folios—largely replacing securities
up 40% of any bull or bear mar¬
sold during last May and June.
ket, the other 60% is made up of
mass psychology.
Most people do
their thinking in terms of what
Mass
gradually are losing their depress¬
ing influence on our security mar¬ the market has done in the im¬
ket.
We seem to be immunizing mediate past.
ourselves against possibilities of
Factors For Higher Prices
further unfavorable news, while
From the standpoint of rational¬
good
news
from
that
quarter
quickly could bring in consider¬ ization—what can put the market
up? Why should we have rising
able buying.
From the standpoint of our own prices ■ for the next four or five
months? :i How can you get the
political affairs, certainly the se¬
curity markets have not adequate¬ speculative and investing public,
ly reflected possibilities of the both large and small, in a better
frame of mind? Well here, at least,
many important changes in fiscal
affairs which could and
and
closing, just few words about
measures
mizing
Ready
the
but
After
.
Another Look
the
developed
all, this rise is only beginning:
here; to be exact, we detected
"buying spots" between Aug. 20
and Aug. 26.
the
which
for "market
a case
i'ndigestion" "has
In
We
"Crystall
BaR""
again in order to determine
whether
The Major
;
<l
by the end of
may
once
to
list
V
long way toward making present or even higher
wages
possible without giving rise to crushing increases in the
<!
cost of living. Is the American
wage earner so lost to
-
main¬
high level of busi¬
activity will continue. It fol¬
ness
in enlarging
earner
to
seems
the
tenance of the
some
all quite within
Halloween Pump¬
scary
kins.
will broaden out.
Full cooperation by the
wage
in perpetuity. He, as a self-respecting man of
earnings and dividends, has been
the
world, must be prepared to return to a fully self-sus¬ underpriced for such a long time
taining status, likeall the rest of us. -We-cap not bring that the rank and file have be¬
ourselves to believe that the farmers of this country are so come accustomed to this unusual
Jjsf# to
condition which
or
(Continued from first page)
and all under conditions in which it is not
liqui¬
a
of
excess
izations, then the relationship of
earnings and dividends to prices
by merely demanding higher wages. The limits are
more severe when
higher wages are. accompanied by
Much
appease
par¬
a
"independent", vote.
political candidate to
our
ment Bureaus and
very
June.
the
of
all,
a reorganiza¬
funded debt,
our
dation
status
the
at least it
fair treatment for
tion of
be uttered
by these leaders or would-be leaders. One of
them is the self evident but often
forgotten fact that there
insistence of the unions upon higher and higher
wages Abr
fewer and fewer hours of work each week; even more to
or
with
ticularly in taxation,
may
today who does not find this fact obvious
should consult a psychiatrist without delay. The repeated
point, their persistent unwillingness in many instances
to do a day's work for several days' pay; and their demand
for all sorts of silly restrictions and featherbedding arrange¬
ments, have; however, finally brought the facts of the situa¬
tion home to many in much greater degree than ever before,
coopera¬
practical world in which we live and in expect.
which the politician
(5) All we need to send this
plies his trade. There may be, and
market up is a fairly decent con¬
doubtless are, definite limits to what a candidate
for office fidence in the future.
All
we
may say about such issues as these and still
hope to be need to change the stock market
elected, but there are some truths which could and should picture, is a liquidation of some
woman
or
intelligent
tion by this Administration with
business both large and
small,
"
really convinced that the tactics of the labor unions were in still
large measure responsible for the prices they must pay when any sort of arrangement
they enter the market for almost any sort of goods. Any output of the worker.
man
23
Administration, and tha€
there will be
definite limits to the extent that the
wage earner
can, in the very nature of things,
improve his economic
Living
long time for the rank and file
publican
Practical Truths
Now this is
are
*
.:
cost
of living high. The
;
to be of inestimable
immeasurably to the
intruding itself upon
longer do for the practical politicians to arrange for
the vote of the
wage earners and disregard other votes
which may well he lost in the
process of buying those
cause,
business of keeping the farmer fat and their
way as
a
no
if they can help it.
Taxpayers are becoming acutely conscious of the fact
that they are being required to finance the expensive
:
(1019)
the consciousness of both housewife and
farmer.- It will
often being careful
not to let the farmer's pocketbook suffer any reduction
:
CHRONICLE
assistance to the unions in
adding
cost of living. All this is
gradually
(Continued from first page)
living, these same politicians
FINANCIAL
&
conducted itself in such
As We See It
'
c'. t
COMMERCIAL'
THE
dividual
past,
exchanges have in the
but
rather
to
create
a
vehicle
that
can
better
serve
the
public, according to James E. Day,"
President of the Chicago Stock
Exchange.
,
(i-*.
24
THE
(1020)
COMMERCIAL
CHRONICLE,
FINANCIAL
&
Thursday,.September 9,1940
furtherance of
most effectively;in
jthe purposes Of {he Economic Co¬
operation-Act if they 'were to
benefit countries expanding their
ECA Apportionment and Intra-Enropean Clearing
other
participating countries
would be paid a 75% share bf the
actual net 'surpluses that would
(Continued from page 4)
12-
15-month period, in their
of payments with the
or
balances
Western
Hemisphere
themselves.
and
with
deficit
mated
Hemisphere (less old loans and
credits) plus, say 75% Of the es¬
timated deficit with the Clearing
Pool
minus
or
mated
surplus
Pool.
The
75%
for
related
to
allocation
available
funds
bases
6.
(diminished by a
clearing and
allocation
explained below) and the
proportion
of
coverage
would
special
tion
Hemisphere, as envis¬
by the Executive Branch.
ioned
million
possible, un¬
visions
assumed at , 90%.
Basic
for each country
would then be determined at 90%
be
quotas
nating from ECA funds, in excess
of their payments in trade with
the Western Hemisphere, special
provisions would be called for to
of the allocation bases. (Table 2.)
Clearing Pool Operations
the
imports, the
countries
deserving
sideration
of
the
If,
who
countries
prospective
are
ments, for later disposition in ac¬
cordance with arrangements to be
agreed upon between the United
States and the respective coun¬
tries. All
Clearing Pool
amount of the
tion that they would pay any net
deficits, in dollars, Swiss Francs,
gold, that might arise for them
Pool, or would extend long-
or
Clearing; Pool
would not change the dollar bal¬
ances
in
the
Clearing Pool in
term
to
ing P6ol
12-
or
15-
over
month
out
to
accommodation to
smaller
than
the
vance,
estimated
country
additional
an
will
dollar
from ECA's Special
Allocation Reserve
in
they
the
result
a
of
the
12- or
receive
of
ment
ing
among
tries
is
to
of
result
a
would set aside
the
special
a
reserve.
obligation
undertaken by ECA, to pay 75%
of the Clearing Pool
deficits, the
This
countries having
within
surpluses
amounts
tions
with
is
deliberately assumed that ECA
pay
these deficits, that will ac¬
should
crue
lated
receipts
to
the
intrasurplus countries, at the rate
although
only
90%
of
this
sbart (as above) would be
collected, by
ECA, for the Pool. The difference would
2 With
European
of
75%,
"of
Out
come
allocation
the
reserve
special
clearing
discussed below.
100%
ing
safeguards
importing
against
-
andi
T6
the
deficit
For
full
with
the
Switzerland
»
of
clearing
Portugal.
and
paragraph 6.) >
3 With+dowhward
and
full
payment
knd
additional
these
for
States
has
a
fealafttetr
of
for
the
balances by
Switzerland
i
Hemisphere
Austria
2'j.
encies)
Dependencies) and Sear
>—
171.6
—K.:.
(including Dependencies)
—^
(including
136.2
175.0
—
2.18L7
Bizone,
Germany
—
French
Zone,
—?
Germany.
1,175 9
132.5
one
—
174.4
i
remedial action in
ing (or
any
abused
or
—
^-
'
«
—
425.9
178.5
5 Except, for
.
from
ECA
are
recommend
case
to
the clear¬
other) provisions
"Special AllocaUons
(see preceding footonly. 'These
the
Reserve"
hote)
which are illustrative
the special, allocations
that should
by. cdhsiderations no) sus¬
or uniform
application
countries.Even in this respect,
voverhed
all
Of -rigid
hbwever, \he estimates
a
are
at
exer-
measure
the
of
realism
Brown
countries
Book
where
that
•'* „>''
'
for
those
States has a
the United
Special interest.'
here have
they aimed
given
in
results
'
'
—
est,
encles)
bases' '' ll
/
-'(deficits
'
.
(90% of
i
allocation
only)
-
*
—
—
16.2
+
835.9
,."
285.2
216.4
70 O
19.5
63.1
138.8
Dependencies)
Germany^4.ti-ui
353.9
,659.1
693.2
,
«»132.5
'•
•+
70.0
177.6
/••'trVa.-'.fV.*;.
131.4*
5.7.
17.4
-
-
-
131.4
as.7
344.8
5.4
10.6
1,719.2
-1.910.2
9.1
103.2
99.8
122.0
1,597.2
;;
161.5
310.3
145.3
'9.2
"2q~i
10.0
•
—6,707.9
>y
~~6,806'9
6'126-2
436.2
494.6
f340.0
r
6,524.65
407.0
822.0
38.7
tlSIf''
>
-
549.5
129.2
^30.0
.
(excl.
Portugal
and Dependencies and
Switzerland)
744.2
103.2
29.0
■
16.3
840.8
692.8
tL2
>
154.4
144.3
*
769.8
—
^-135.5
+
1,314.8
5.5
+ 130.8
—
160.6
55.8
"
>+
51.2
—
383.3
,
'
217.5
154.2
-
*1.7
—1,774.7
244.8
.
74.2.
16.3
—-
—
30.0
70 4"
;
+102.6
136.2
+
ECA
1,334.3
-
98.4
—
<•
'
+ 176.8
+
"
'.'457.fc.
241.7
5.8
tEstimated
ultimate
ClearingPool receipts from
tSpecial
"(90% of.--Clearing Pool allocations* ■'f. dollar
receipts
three-foufths ' (75% of est. - .ftoYn
••
of deficits' ■ surpluses with through'
ECA. ?
.
* til-
<-^•1,482.6
70.1
.+
bases)
500.3
240.5
—
'21.7
159.7
-
quota
-
vA
Depend:■ ;v
....
-
'peduStioA for 'tfestr dollar"
-
basic
■
■
,
62.0
90%
•
Allocation 4
-^-316.8
82.4
—
Period (1948-49)
Million Dollars
'78.2
—
57.7
—
7.6-;'' '
—
impor¬
TABLEt
-
j
—
■—"821/0
Sweden?
Switzerland
8.2
12.1
the
prevented, from
De-
-V;
~(fncK~
Portugal
■
unci.
pendencies)
6 3D
+
nori-ERP finance.-
Table 3 computes estimates of
total receipts of funds under EftP
fcisingbeneficent ^effect upon
15.3
^
I
Totals
180.6
com-
include
that
Moreover,
-
of
<
79.8
+
such
Act.
pro¬
European trade and to
European•
Clearing Pool
171 .B
_•_!
^
French Zone, Germany..
68.2
parison >of"V quotas
ceptible
v With lntra-
•^-i,46919 ;
'
•
Netherlands
••'—•"'1.8
—1^7
Dependencies
Dependen¬
ahd SRar-.*
i
U. K. (incl.
136.8
be
r.
—
Bizone,
+
•
mitob^onsideratipn^s?^^Ihe
-
be
* 75 % Of
—^38.6
^—
112.0
+
.
-
Hefnisphefe
Turkev
.
7.4
133.0-
+
185.0
.
235.7
98 4
'
—
Kingdom
21.6
>
93.5
4+
137.5
will
(incl.
Italy
r
62.0
—
996.0
—
——
Turkey
82.7
28.9
+
—
D3pendencies)___
—
Switzerland
211.0
159.7
—
(including
Sweden
>
15.3
—
NorWay
Portugal
*'"<+«•'
109.9
Cooperation-
the
(incl.
^fhTWHV
;■ 4
947,9 ?
i
.i.
—
1,645.9 -v
—
Netherlands
$20.0
•
—
240.5
—
Iceland
United
636.9-;
——
Ireland
Italy
and Credits
—$104.3
;
—
Prance (including
Greece
>
Depend¬
Denmark
•Old Loans
r
the countries with respect to intra-
:
old loans)
Austria
Belgium-Luxembg.
Iceland
Clearing Pool
$258.6
—
Belgium-Luxembourg- (including
1
'
l»L -of
.
Ireland
European
directioruy
tant functions of the ECA
country
missions to watch the policies of
are
(mihus
Country—
Gireectf
With intra-
Of
payments with
balances
the Western
of payments
cies)
-Balances of Paymehts-
parison Of quotas excluding ftonERP,loans.and credits is given as
shortfall, / should
no system
ideally suit¬
accomplishing fully the pur¬
ed to
it
where
areas
that
to
help these purposes.
special interest.
V■■,
France
Million Dollars
Western
comparison-of dollar? finanee for
the^iirst; ERR ^riod^he. com¬
■v?.
Pen)ttai>k.'>'
i
Payments; 15-mohth period (1948-49)
With
concerned^ 0n theiqthei^ hand, it
fs
Taiif • if—inJci Tpef capita
■
deficit by
(See
also
adjustment
Mayvbe avail^
coum
Apportionment of ERP Funds, 15-Month
Dependencies)
Table
Tables
see
allocations
spe¬
Portugal,
of
Western
the Western Hemi¬
calculations
estimates
United
antoUhts, of -non^ERP finance (old
other loans and Credits) that
•or
the
visions such as those tentativelyas the direct dollar allocation less
suggested for ECA assistance to
.deduction, if any; fOr the Clearing
the Clearing Pool Will
definitely
of
amount
the
original^ Brown Book illustrative ob¬
ligation
in
-
^
the
deficits
However, it is believed that
be
to
brake upon
running up deficits for" supplies
sion that- if actual
;;balahees.;Mf
goes 'without Saying that the deli--;
cits5 to, be^covered by -ERP
finance,
Must «>be^i diminished^: py - the
-ibng-term
as a
pot urgently needed, fThe provi¬
poses
considered, not as suggestions, but
as
examples for the mechanics of the
process. They are, howevter, based upon
*
Estimated
tin1
To
These
bt-.
There is
bring* allocation up'to the level-of
previous relief grants. Bizone and French
Zone:
To cover the. full amount of the
2.
extend
triesCmiist
credit, should act
also tend in the same
and in consideration of the
low per capita finance for
Italy. Austria:
sphere.
•uponrtfade^of£isui^ cohsidefatjoa
-sooner
and-the fact that
'25% the expoTting coun-
for these
tionate
Hemispheie
and
countries
these
later must pay,
reckless
exporting,
cover
estimated
Which
cation of these countries, propor¬
fact, the provisions would operate
Italy:
the 25% of the deficits
advance there will be, some
addition to the direct dollar allo¬
calcu¬
expansion cf both imports and ex¬
ports, at the same time establish¬
upward adjustment of share for
payments
relative
assistance as
outside
basis*: Should be taken account of.
The prospective, favorable effect
which is On a deficit baSi&'iAt the
same time
alloca¬
deserving
—
Draft
cn
U.
S.
Clearing Resefve
"
lO.Ot
:
46,4t
Totals:-
Total
Minus
"
PlUS
—$8,943.1
—$656.2
$136.2
+ $656.2
—
+
Totals
(excluding
Portugal
and
Dependencies and Switzerland):
Minus
Plus
tries
—$646.2
+ $656.2
•v
bv
all
over
.-..iSee
2,136.8
Switzerland
for the
.
coverage of part of the Western Hemisphere
H4b2.2
Net
funds
and
clearing
Portugal
if
dollar
turn
their
of
10 0
and
Dependencies
payments
reccicf" from
(6,514.6 +187.9==)
clearing
'
-
Portugal
494.6
* <
......
•-out.'as estimated
claimants.
text.
^Includes
—>«
•deficit in the first ERP period.
Ihto Clearing Pool_
.
ment
—$8,844.7
dollar payment
•See Table.1.
'
;'\.T
tAsssuming Clehring PooV balances
«
5
sat
the
.
:
incentives to the
to
provide
additional
for
countries
for
outlined
completely
in
therefore,
•,
dollar
as
to
also
no
velopment, of varying types of
ofganizatibft;^<arid"of;»inedmmeiK
trieq fall short of those estimated
the
are,
afford
cial consideration and the amount
of $200 million for the Bizone of
1 It
should
reserve
needs
long-term accommodation
of these surpluses1 (and
Clearing Pool"of the deficit
the participating coun¬
facilitate and expand
provisions
4
unappropriated funds as
of its Operations in the
European
Clearing
Pool,
ECA
extent
than
among societies in varying
stages
of historical
and. economic de¬
for 25%
effective multilateral clear¬
an
the
To protect
the United
States
Government against the commit¬
be
can
isfactory criteria for
however, that they would have to
extend
more
quantitative
There
ex¬
The fact,
effect.
are
countries
Pool
15-month period.
this
to
efforts
made
content for the method
increase their dollar
can
pating countries should stimulate
Clearing
estimated deficit with
of the coverage proportion
(90%)
of a 75% share of the shortfall.
As
any
1 Special Reserve
allocation
the
of
may come to hold in the Pool
ad¬
Clearing and
to
amount
the
merely an example; rather,
thev
are
suggestions of a
considerations,
surpluses
be
during the
period turns
the
intra-European clearing. Yet
ports (surpluses) to other partici¬
in the
existence prior to such changes.)
If a country's deficit in the Clear¬
some
surate
Social
that this 25% will eventually have
propensities. It js
deserving
special to be
paid by the deficit coun¬ nevertheless believed that there is
seventy- million
tries) should act as a desirable de¬ reasonable fairness in the objCcdollars would go to Italy, $30 mil¬
tlvfe^ bases on which the
terrent to forcing iipoh Other par¬
relative
lion to Austria $30 million to the
ticipating 'countries supplies that amdtints of funds for each country
Bizone, Germany, and $10 million
r— plus
are not badly needed there,
>>
adjustments -p have been
to the French Zone,' Germany—or
calculated in the tables.
Thus, it
a total of $140 million4 aft amount
is considered-a fair
"proposition
of $236 million would be left for through the Clearing Pool, will
that} Ain. a • determination of•• the
Clearing Pool * protection.
This pay fully 75 % of the deficits ac¬
relative 'financing heeds 'of the
amount would probably suffice to tually arising;, for countries that
cover a
40% to. 30% increase .in have 'a deficit position In the Pool;
mated^ balances of payments, jiot
the Clearing Pool balances over should
operate ;! to" maintain
or
only - With'" the-; Western Hemi¬
even
increase -their trade "with
their how estimated size.
other
participating {countries,, sphere, but also Oh aft ihtra-gtoup
to
trade
exchange at time of commit¬
Subsequent changes in the
the
'
•
,
ment.
in
respective Clearing
Switzerland and Portugal (in¬
cluding Dependencies) who would
not be eligible for the receipt of
ECA funds, -should be asked to
join the Clearing PUol on condi¬
accounts
Valuations of the currencies par¬
ticipating
the' equivalent
to
Pftdl currencies.
Would be kept in local currency
and in dollars at the official rates
Of
title
*
estimates
the Pool
''
countries
t0
the application of the
suggested
method of apportionment
of ECA
funds and of operations
in the
would
earnings by increasing their
rectify Suqh a situation. Thus, any
country that would accumulate
dollar balances
(6ther than
debtors of the Clearing Pool will
be deducted
the coverage pro¬ through new credit operations or
from dealings with'noh-partici¬
portion (90%) of the 75% share
countries
outside
the
of their estimated
net
deficits pating
with other participating countries Western Hemisphere) lb its trad¬
—the Clearing Pool—and placed; ing; relations- with" the' Western
by ECA, into the Clearing Pool Hemisphere or its relations with
the Clearing Pool., would be ob¬
for United States disposition.; In
ligated to repay ECA to the e*>- It Aspects 'Of •
return for this deduction, ECA
would assume the obligation 6f jtent of such accumulation up to
y'
•'
.Provisions
.■■
::'0
the' sum of any grants received
paying 75% of all net deficits
The advantages of a multilateral
from ECA plus the dollar amounts
that will actually arise, for par¬
clearing among the participating
received from the Clearing Pool
ticipating countries, in the Clear-.
countries as such need no elabo¬
originated
from * ECA
ing Ttool during the 12- or, 15- (which
ration.
The main purpose and%s^
month period, no matter what that funds) iTTd the extent that refunds sence
of the various' provisions
are made for dollar receipts from
amount will turn out to be.1 (ECA
under which ECA Would assist in
Wbuld acquire title to the local the Clearing Bool; ECA would be
the establishment and operation
obligated to * transfer to > those
currency equivalents of these pay¬
Prom the basic quotas of those
portray
1
illustrate
effects of
provision that countries having
basic surplus positions vis-a-vis
additional allocations
as
ECA
which
under
to
operate in the Clearing Pool. The
coverage
in
and
suggested standards and regu¬
lations
>,
appended Tables
been compiled to
have
of promoting
purpose
Estimates
^
The
This is the basic philosophy for
the
con¬
the
"overdrafts"
Pool.
special
for
and
^VTcsting the Quantitative
it
trade would be served best.
«
other,infractions of the^*
Recovery Program.
pro¬
feel
would
countries
imSgS
of the
equally to their advantage either
to increase exports or to increase
which
of
Reserve
any.
neutral in this respect
are
m
or expansion
of
unnecessary l.nPOrts
luxury items?
Unnerpsnflrv
in
in
in¬
if the
in imports;
the
and
Bizone and $376 million would re¬
main for additional allocations to
a system of funds alloca¬
that—depending upon the
of
intra-European
development
trade—some countries might ac¬
cumulate dollar
balances, orgi-
tion,
This propor¬
in
without;; benefitting
The missions
will not
exports
in exports any more than
increases
$200 million Would go into the
separate allocation for the German
der such
may
5.
the
Special Provisions
Since it would be
reserve
thus be determined.
trade,?
creases
Western
countries.
ECA
the
of
be
then
would
total
the
the
of
amount
countries
all
esti¬
the
the Clearing
with
total
calculated
thus
of
in
countries
these
Germany for payment to non-par¬
ticipating countries outside the
Clearing Pool 2 during the 12- or
As an example, it may be as¬
15-month period, no matter what sumed
that
the
total
available
this amount may turn out to be. funds for
a 15-month period would
Conversely, these countries would amount to $6,702.5 million, as esti¬
undertake to extend long-term ac¬
mated in the Brown Books.
A
commodation to the Clearing Pool
90% coverage proportion for the
for the remaining 25% of the sur¬ "allocation
bases"
as
defined
plus balances not paid by ECA above would amount to 90% of
through the Clearing Pool 3, un¬ $6,807 million
(see Table 2) or
der
terms
of
repayment to be
$6,126
million
dollars
for
15
agreed
upon
with
the
debtor months.
This would leave $576
Western
the
for
arise
among
allocation
basis for the basic quota might be,
for each country, the total esti¬
the
Thus,
trade.
and
into_ Pool by
FCA-
6,702.5.
-
therefore"
.
.
Switzerland
-
Brown
*'-•
thrS ®
through eq"uitable"d^
deficits'
deficits;
*
Portugal
in
Sfed25%r forthSf two
coun-
/»'
Included
(including
de/i£,'ts6ylV.6^"*rtmTihlnBiSE^APrl^Mr?nLeS,
Switzerland to cover:, their °^n. ,UV gcA
remaining ECA clearing reserve: (236.3—48,4=) 187.9, see text; total r.
Dependencies)
their
own.
.
Volume, 168
Number 4732
THE
Pool, plus the intra-clearing defi¬
cit, if any, or less 25% of the
intra-clearing surplus, if any—for
each country. The theory of this
computation is that the
that
funds
total
COMMERCIAL &
capita receipts of funds (Table 4).
The per capita
receipts are par¬
ticularly high for
the
mark; but these
and
at
are
finance
same
be
each
country
can time among the countries with
the
properly be said to receive under highest per capita trade before
ERP — including the effective the war.
(Table 4.) The estimated
clearing made possible by ERP— per
capita
receipts
(including
is the dollar value thef country non-ERP
finance) of France—and
obtains without giving anything the Saar—are
only little above
currently in return. Thus, the average;
however, France's
countries with both a ;Western
Hemisphere deficit and an intraclearing deficit actually receive
a
value equivalent to the net
full
amount
of
their
deficits
above
clearing account. On the other
hand, the countries that have a
deficit with the Western Hemi¬
but a surplus in intraEuropean clearing,
actually re¬
value
equivalent
to
surpluses which they are
required to lend, long-term, to the
Clearing Pool in favor of the
the
tional
is
There
*
is
full,
Bizone
Zone
Germany.
countries
the
tion
France
United
(including
Netherlands,
bourg,
B
u
would
fall
have' above
them
Yet
as
goes
deficits
>vith
the
with
4,
in
sphere. (It is with
probably,
no way
location after
for
the
that
deductions, if
It
appear
these
under ERP to the
is
to
the
employed,
tional
possible
the
help
given
Within
fundamental' physical
the
European
European
the
situation.
Recovery
the United States, un¬
provisions
of
the
as
can-
less
Economic
the
matter of interpretation
a
of
receive
can
to
country
corresponding
largely
that could be taken
country
no
another
that
ex¬
makes
sacrifice.
The
a
settlement
of
clearing
ances
may—to
to the
basic
tifuth
Act.
desir¬
bal¬
could not make it less true.
The
it
more
appears
this
some—make
less
apparent,
but
Receipts
funds
of
(excluding
Clearing
Est. total receipts
of funds
'i
■■;
and thus
under
finance
represent
ERP.
hence
a
are
nega¬
contribution to
v;
Prewar
(Est. total receipts
of funds under ERP
'
under ERP plus
(1937) Trade
non-ERP finance
Imports Exports
Million
Country
Austria
receipts of funds under ERP, 15-month period
(1948-49)
*
$49.9
$369.1
$52.7
58.0
704.2
82.8
106
243.3
57.9
305.3
72.7
France
and
Saar_
1,343.7
_
Greece
247.9
Iceland
Norway
Portugal
.
$33
+
Net
ited by or
ceipts of
Basic
Country
Austria
'' 3^
Alloca¬
$285.2
Belgium-Luxbgv
Denmark
France and
Alloca¬
tions for
Alloca¬
contributed
funds under
tions
-
457.5
$315.2
-"•/
to
$244.8
457.5
74.2
217.5
63.1
—5.3-
82.7
1,314.8
1,343.7
154.4
93.5
247.9
5.3
—
u_ju.
T
•
Norway
.138.1
138.8
593.2
.
Netherlands ;ZZ~"""*
~~70
138.8
*
—
—
v
663.2
692.8
663.2
'
692.8
•
:•»*»•*.<*-
1.9
J5.3
_
58.1
16.8
33.6
-
15.7
5.1
10.6
7.6
18~2
122.0
1,597.2
180.6
1.777.8
540.3
2.9
38.7
540.3
145.3
10
155.3
~26.1
129.2
$6,126.2
$340
$6,466.2
$436.2
$6,030.0
1
'V;
\
v'""Z
—40.7
»
'
!Rrated
in
IFunds
as
537.4'
167.9
+ fl$646.2
+§$6,596.5
—'»«161.fr?.:*■*
"fa-European
deficit
the
surpluses of the intra-European surplus countries with adjustments
l0T Presumed payment by Switzerland and Portugal of then clearing deficit ,
proportionate distribution of 25% of the deficites of these 2 countries
^ough
0,11
clfictrjngp claimants
tinnc.Tl?ega^Ve
tes to
an8
an«
example, assumes clearing balances to turn out exactly as
theory of calculation see footnote 2 to Table 4.
Clearing Pool are 100% of the clearing deficits of the
countries.
Funds contributed to the Clearing Pool are 25
^
For
by
,clearinS
it-en
+tt$6,514.6
$484.6
+
•
an
advance.
credited
receipts
Clearing
«0tal of clearing
Portugal.
or
net
z■
,
of
as
s
•
a
deficits
funds
of
under
deficit clearing
w,
ERP
by
net
countries,
Nations
340.0;
result of contribu¬
excepting Switzerland
v
-
receiving countries.
contribution, direct and via clearing:
payment-to
Pool
out
of
clearing
Basic quotas 6,126.2; special
48.4, total 6,514.6.
reserve
car
to 60
seconds
by concentrating a series
rotating
watersprayed brushes against the front,
the top and the sides. The wheels
of
continually
of the
car
cleaned by a rotat¬
are
series
is then draw*i
car
system into
a conveyor
a
of
especially designed air
ducts, which assist in the quick
drying of the entire exterior of
the car. Ifv
^ "'/• ■'■
Since
the
announcement, early
in 1946, that the Minit-Man, Inc.,
a
division of Commerce Pattern
97
•••
the
110
.
in
position to
a
Minit-Man
and
69
81
tion and.
46.2
14.4
:
20.0
109
there
86
2.8
'
■
*•«.„
,
•«.'
1.0
18.2
35.8
l.o
v
2,184,8
1,359.4
99
31.41
30.0J
'r
.
54
1132
-
received
86
are
volume
machines in
200
over
pub¬
opera¬
machines
sold
throughout the United States. The
purchase price of a Minit-Man is
$16,000 f.o.b Detroit, and terms
of sale provide a 10-year terri¬
torial protection.
6
44.0
167.9
has
accept
Car
Washers,
revolutionary equip¬
and
new
licity in general periodicals and
the business press. At this time,
1135
The purpose
$8,656.7
open
'
•'
of this issue is to
and operate Minit-Man Au¬
tomatic Car
"81.9
tt$6,514.5
'
Washing Stations.
$8,651.4
j——:
——
——.--f
tt$6,514.8
;
allocations
if
less
any,
Australia Wheat
,,
'
'
'
■>
deductions,
if
for Clearing Pool, plus intrasurpluses, if any.
The theory
each country can
be said to
receive
under
ERP—including the clearing arrangement made possible by ERP—
is the dollar value the country obtains without giving anything in return
currently.
Thus, the countries with both a Western Hemisphere and an intra-clearing deficit
actually receive a value equivalent to the direct dollar assistance from ECA plus
deficits,
clearing
of
this
the
full
amount
European
from
if
ECA
that
that
is
of
have
less
any,
computation
their
a
less
the
25%
of
of
total
deficits
deficit
clearing actually
25%
the
with
receive
any,
intrti-clearing
of
funds
that
on
clearing
account.
the
Western
Hemishpere,
a
value
equivalent
to
On
'
the
but
a
direct
the
other
hand,
surplus
in
dollar
the
assistance
intra-European surpluses which they are required
to lend, long-term, to the Clearing Pool in favor of
the deficit countries..
Their
receipts of dollars from the Clearing Pool in payment of 75% of their surpluses are
not
counted
as
values
received
without
current
compensation
because
these receipts
in
payment for goods and services supplied by these countries; it is the deficit
countries, in whose behalf the surplus countries would credit 25% and ECA, through
the
Clearing Pool, would pay 75% of the deficits, that are the real recipients of
are
dollars
those
and
are
counted
such
as
in
the
above
calculation.
See
this
is carried through.
Small
take account of presumed full
Switzerland and Portugal.
>
process
to
adjustments
payment
of
.
JSee footnote
t
liGermany
..
required,
are
their
have been
deficits by
and
clearing
own
where
3
'.
Table 3.
\
.
?
1
••"T"
ttFinanced by ECA directly or via Clearing Pool. *
itNon-ERP loans and credits.
"
'
"
'
"
ing
.
„
;
*
•
Sweden,
f
' "
flour
exports froiri
during the 1947-48 sell¬
reached
season
total of
the
000,000
record
105,000,000 bushels
Aug. 31. Previous high
bushels
in
of
carryover
up
was
1939-40,
because of transport
and,
difficulties,
about
to
69,-
a
4,000,000
bushels is expected. No change at
present
in
export
price,
follow¬
ing the downward trend of prices
Norway
'
-
\
and
of wheat tax,
will
receive
''
,
and
will be sanctioned. After payment
(1937) boundaries.
~
gTotal receipts of ERP finance by receiving coutries.
"■'Share of above total financed by contributing countries
Iceland.
Wheat
Australia
in the United States and Canada,
prewar
in
to
Table
Exports Top Record f
intra-
their
,
t+S,a!s of contributions by surplus clearing countries.
c,,rnius
clearing
Countries
°f negative receipts -or net contributions under ERP by surplus clearing
ECA
.{
(Direct
made,
ft
receipts
.
to ERP finance,
contributions
..
sTotal
,y,z.
.•.
55
ment
l *$$2,136.8
countries
t
in
12
•See footnote 2 to Table 2.
1,719.2
230
automatic
car
73
12.4
Finance
1,719.2
310.3
a
37
30.0
$33.6
15.7
'Calculation,
washes
14
v-
$43.0
-
ZZ!
Totals
Minit-Man
SL,
,
676.0
43.0
Zone
The
Wall
-
20
—5.3
* &?&■
37
99 ;.+
§$6,596.5
!'r, 'X':
of
Foundry and Machine Company,
Switzerland)
i"
\
Co.
86.8
167.9
Z*
Rosenfeld
New York.
851.0
1
605.1
—
—
Eizond Kingd01^
.
P.
17
Finance
.
136.9
—
Portugal
French
-
*':
-
A stock issue of 300,000 shares
Minit-Man
Operating Corp.
common
stock, at $1 per share,
was announced Sept. 8
by Henry
>
of
deliver
Portugal
(exol.
s
and
,rZ '
■
.
Auto Washer Stock
■
692.8
Sweden
Switzerland
Turkey
Totals
243.3
.
v73
537.4
-
.
■
.
15.3
—6.1::
1,777.8
_
—paper.
45.6
18.2
Germany
ity 1 Reference" — The Economic*
Reference, Inc., Ridgewood, N. J.
717.1
•
Zone, Germany+«
Taxation of Regulated Enter¬
prises—Selections from "The Util¬
was
493.2
1
'28.9
_
Ireland
Italy
Kingdom
Bizone,
French
109.9
160.6
19.5
United
ERP
$349.1
clearing
$104.3
383.3
55.8
1,334.3
1,334.3
217.5
Greece
Iceland
tions
Clearing
$70.4 ;
216.4
____
216.4
,
Saar„
tions
$30
Quotas
^ZZZZiZZ1:
Private
23
-
.
A
41
''
Deduc¬
by
F. Logan—Wil¬
liam-Frederick Press,
313 West
35th Street, New York
1, N. Y.~-.
paper—$1.00.
99
S'v
Turkey
Direct
Special
Letters
'••I 136.9
cv;
—10.5
—$43.0
i
Public
Citizen—George
90
—,
Switzerland
Total Re¬
Germany,
69.0
;
--$33.6
——
Postwar
12.9
45.6
676.0
of
36.5
!
247.9
—40.7
136.9
605.1
Dilemma
32.6
1,528,7
33.6
—15.3
__
Currency—
96 ?:?•
^
32.1s
.
(Funds cred¬
$ per
Capita
$40
493.2
Sweden
Total
$ per
Capita
Capita
$349.1
'
—
Netherlands
Dollars
$ per
Dollar
Belgium-Luxembourg
Ireland
v1';
Capita
Denmark
Italy
TABLE 3! ;•
$ per
Dollar
the
The—Compiled by Julia E. Johnsen—The H. W. Wilson Company,
950 University Avenue, New York.
52, N. Y.—cloth—$1.50.
through
and
including non-ERP finance), total and
(15-month period, 1948-49), and prewar trade per capita.
>■
capita
of
—
ing brush. The
Table 4
•Estimated
Comptroller
Eighty-fifth * annual
report
for
1947
Superintendent of Doci*ments, U. S. Government Printing
Office,, Washington 25, D. C.—
paper—400,
;;v.U
use
equivalents for
currency
by legislative amendments
care
.,
washer
of local
or one
railway
America**,
—
trick of
no
additional
ent
of
use
no
Million
tive
Million
and
of
Cooperation Act. This is, however,
intra-European surpluses.6 If, in
for these three countries
per
dollar
shortcut to heaven and
facts
Clearing
and
(25th 'edition
financial jugglery could alter the
6f; their substantial
—
countries
the
tended by
European
would
Receipts
under ERP = Direct allo¬
cations
(O) — deductions for clearing
pool
(O)
+
intra-clearing deficits (O)
25% of intra-clearing surpluses (here;
$81.9 million, see Table 3).
Receipts
Ireland.
if they were addi¬
as
to
funds could be
Europe by EiCA. But there is
any,
that
such
assistance
6
the
equivalents of ECA dol¬
with which
Conclusion
quite
per
accommodation
Pool for 25%
a
::
Program,
Hemi¬
extent of their
out of
certainly
be fascinated by the elegance
may
Clearing
contributors to finance
as
is
the
"repayment
countries
the
indirect allotment of aid through
has
outlined
and
hard
11.
view to this
a
the
that
repair
cars
European clearing balances. One
con¬
exceed, in ab¬
intra-European
ing,
Railway Car Institute, 19 Rector
Street, New York 6, N. Y.
not
currency
would
one
*
commend
Pool.
been
suggested
in
paragraph 6. Special Provisions,
above.) Under the method here
the
m-Luxem-
nated total
turn
solute amount, the net direct al¬
their
alloca¬
Western
—
from
than
more
could
direction
basic quota for any one coun¬
a
try will in
the help
result of
a
all
acceptable
method of liberalist design.
sidered compatible with the
pres¬
situation
average
in
assistance, as indicated,
beyond coverage of their net
clause"
Kingdom,
these
funds.
possible at
be
that. In particular,
.of itself create eco¬
equilibrium in Europe, al¬
though it might be a step in this
envisioned above may not be
the
Denmark,: and
However,
to
direct
Table
per
Car Building and Car Repairing
—Yearbook of statistics on build¬
nomic
operations in the Clearing
Pool is considerable; in
fact, this
per
Saar),
1 g i
e
do
indirect
There would be only about 90%
coverage for the remaining deficit
the
ECA
are
desired, be easily covered
the Special Reserve. ; •
a
(Table 2). Hence
no
is
;
lar assistance in payment of intra-
ECA
could, if
—
of
extended
•; ;
in
deficits
this
it
also conclude that the loan share
surpluses in the intra-
they would get
deficit
shortfalls
net
even
relatively
these
Hemisphere,
stantial margins
coverage of the estimated deficits
for Greece and
Turkey
countries
have
Western
sug¬
Finally, in a negative way, the
method has perhaps something to
itself in that it does
not contemplate the use of local
as
ECA funds to the countries
Sweden, Nor¬
While
have
point of view of any country com¬
mitted to European economic co¬
operation. The method could not
larger share of loans
was very
represents
outline
same
should
currency
would seem to suggest a
clearing—even at the
share payable in dollars —
exceed those net deficits
by sub¬
capita receipts of funds (Italy, the
zones), or which repre¬
sent a special United States in¬
Small
capita trade
single prob¬
a
as
against
grants in the direct allocation of
estimated
75%
German
terest.
total
category.
low
have
.
local
of
pay¬
been
as
5
European
reason¬
These
which
the
Iceland
and
estimated
for Austria,
Germany, and the French
coverage
the
to
parts of
and
reasonably fair conditions—so far
provision
cerned. Most
countries
near-full,
Italy, the
or
ap¬
funds,
and
separate
nance—as can be done
by a com¬
parison of Table 1 with Table 3,
there
the
suggested in paragraph
above). High per capita quotas
of estimated
total
receipts of
way,
are
tries—their balances
of.payments
with the Western
Hemisphere and
the (clearing,
less non-ERP fi¬
that
(subject
would
fully
remaining estimated net
The position of
such in the calcula¬
coverage for all net
countries concerned. •; -
allocation
the
small.
tions of Table 3.
When
these
"real"
receipts
under ECA are compared with
the "net balances" of the coun¬
appears
second, it appears that
prewar per
25% and ECA would, through the
Clearing Pool, pay 75% ^of the
deficits, that are the real recip¬
able
in
light ; on conditions that
have a bearing upon it.
Thus, con¬
sideration bf the Clearing Pool
provisions and operations would
lead to the conclusion that ECA
despite
the
low
per
capita quota, fully cover her esti¬
mated net requirements balance.
It may also be noted that
Italy's
plied by these countries; it is the
it
condensed
trade
fundamental identity of the two
parts of the problem and it offers
considerations, the statis¬
data
the
facilitation
however,
tional
of
receipts,
deficit countries, in whose behalf
the surplus countries would
credit
and
tical
the
appor¬
among
better results. This much,
may be said in favor of
the above outline: it realizes the
problem has partly
settled, or will at any rate
largely decided on the basis
be
this
or
this
been
of other
and
are
the
funds
gested and may lead to the
gested,
services sup¬
dollars
'While
relatively
in
,
Grants Versus Loans
balance of requirements. For
Italy
a special allocation has
been sug¬
pay¬
as
,
of
indi¬
obvious
lem. Methods of apportionment of
funds and of facilitating European
trade other than those envisioned
ern
Hemisphere from their intraEuropean surpluses.
quotas
cover
be
counted
as
values
received
without current compensation be¬
cause
these receipts are in
those
ments
Clearing Pool, of financing their
for
more
that
appear
intra-European
net dollar deficits with the
West¬
comparison
it
against
as
programs
countries, the
countries
are
particularly low
Turkey, and Italy. Turkey contributions through the Clear¬
clearly is a special case; more¬ ing Pool would probability be ex¬
over, a very small absolute addi¬ clusively in the nature of grants
countries, Their own re¬
ceipts of dollars fi;om the Clear¬
ing Pool in payment of 75% of
their
clearing surpluses cannot
of
does
for
deficit
ients
vidual
pendix tables should throw addi¬
the
Program,
sectionalized
tionment
10.
25
emphasize the all-Euro¬
covery
the results of
pre¬
estimated per capita receipts
(Table 4) first, and at other rele¬
vant data
to
even
forded by ECA operations in the
the
pean
considered
at
to
countries
:■
.
Looking
would.
rela¬
was
are
contribution
ERP
greater. Again,
able
(1021)
pean aspects of the Economic Re¬
well, since they stand to gain
much from
the
possibility, af¬
The
average,
trade.
the
direct dollar assistance from ECA
less the 25%, of thefir intra-Euro-
ment for goods and
trade
their
under
the
become
as
modest, especially if measured
against the vague subsidiary in¬
dex of a high prewar
per capita
sphere,
a
small.
countries,
should
CHRONICLE
the method outlined would be fair
and reasonable for these
estimated per
capita receipts of funds (including
non-ERP finance) of the United
Kingdom and Ireland, while well
on
ceive
capita
per
tively
assistance from ECA plus
direct
the
war
these
clause
effective,
Den¬
the
of
case
repayment
Netherlands,
Belgium-Luxembourg,
of
the
FINANCIAL
,
.
-
,
.
freight.
Australian growers
$2.00
a
bushel, less
\
■
■'
■
■;
■.;
','1,'v: r
"
■''' ■.('r, .'/..frl !»f,r '
\
■
"V:".'!.
;\
c.
jx'~l'.''"
26
(1022)
THE
COMMERCIAL
&
FINANCIAL
(Continued from
solve
this
problem
7)
page
problem of initial parities and
agreed with the Fund's view that
i,
;
at
made
was
values
established
that
par
multilateral clearing system
operated by the Bank for Inter¬
national Settlements.
This mech¬
could
only be tentative. It recog¬
nized also that prevailing rates of
exchange may in some instances
anism proved to be
workable, but
its results were limited
be out of line with relative
time, when a group of Western
European countries agreed to set
up
by
t
f
ately
a
fact
that
settlement
European
made
balances
of
be
with
cording
also
considered
such
not
of
they
in
indicate
now
countries
that
Eu¬
the recovery program have
agreed
principle to a new system of
settlement,
of
•set
aside
ex¬
local
currency funds
counterparts of the
as
to¬
financial situations
that
of
the
Europe
procedure
dollars
double function:
rect
to
(1)
assistance
to
will
en¬
perform
Provide
the
a
di¬
recipient
countries for purchases in the dol¬
lar area
(primarily the Western
Hemisphere);
and
(2) make
pos¬
sible the continuation and
expan¬
sion of exports from creditor
to
debtor countries within
Europe.
Exchange
Rates
and
the
The
i
I i
ERP
h
clauses
(r
agreements
obligating
countries
to
contain
the
recipient
orderly do¬
pursue
countries,
namely,
rates and the Fund agreed to de¬
fer
determination
of
lira.
the
par
Subsequently,
November, 1947, Italy pro¬
posed modifications in her ex¬
change system, limiting" spreads
and
fluctuations
Fund
of
rates.
regarded' this
The
proposal
as
step in the right direction, but
could not give its approval be¬
a
the
cause
made
new
in
system
accordance
was
with
not
the
long-range objective of the Fund,
the establishment of a
single and
stable exchange rate.
In
system,
stabilizing the currency
establishing or maintaining a
the par value of the
had
been
agreed
franc, which
with
upon
rate
of
exchange.. -These
,
ernment
to
impose
policies
on
other
#1
countries. ;
Moreover, the
Government has expressed its in¬
tention
to
make
International
full
of
use
the
Monetary Ftmd
in
dealing with exchange rate prob¬
lems in connection with the
Euro¬
pean
Recovery Program.
At the
time, the United States re¬
same
serves
the
right to
initiate
dis¬
cussions respecting
exchange rates.
The Articles of
Agreement
the
Fund
require
country to
for its
tain
agree
each
on
a
member
par
currency before it
assistance
from
of
at
approximately 119
and to modify the
value
can
the
ob¬
Fund;
official rate of 214 francs per
dollar (or the equivalent) was
proposed
for
the
for
all
dollar
actually
was soon
pegged at about
dollar. Exporters
305
francs per
to the dollar area could sell half
their
exchange at the free rate,*
which gave an effective
export rate
of 260 francs. The most essential
imports from the dollar
to enter at the 214
area
were
rate, but other
imports would enter at the free
rate.. There was no intention to
maintain cross rates in line with
the new dollar rate. While the
Fund
recognized the special difficulties
France, it
unable to agree
to a system which seemed
unlikely
to avoid
was
uncertainty and insta¬
bility in exchanges.
Despite the
Fund's
objection, France put the
System
par values need not be
permanent
disqualified France from using the
Fund's resources, but did not re¬
and provide a procedure for or¬
derly changes through consulta¬
tion
with
•
the
Fund.
Before
ginning exchange transactions
be¬
the
values
par
members
and
nation
the
bers;
par
in
of
thirty-two
deferred
determi¬
of nine mem¬
case
subsequently it
values
bers
of
seven
agreed
other
(including five
bers).
At
initial
par
lished,
both
the
time
values
the
new
when
were
Fund
on
mem¬
mem¬
these
estab¬
and
the
member countries
recognized that
the acceptance of
such par values
was
the
tentative
rates
and
would
tion from time
need
through
its
some
of
modifica¬
to time,
The United States
gave
that
v
Government,
interested
agencies,
careful consideration to
the
quire
into
effect.
France
to
membership.
This
action
withdraw from
1
has
exchange system, as well as the
exchange systems of other coun¬
tries, under close] and continual
Study.
It believes that the
pat¬
tern of
and
exchange rates—in Europe
elsewhere—is by no means
satisfactory for
is
'
check
realm
of
t
or e n
expenditures,
including
those
on foreign aid and national
defense, be covered within a bal¬
fully
in
the
all
establishing
which
countries, but
of the
aware
difficulties
exchange
be maintained
can
rates
by the
member countries without
undue
recourse
to the Fund under
the
circumstances
prevailing
in
International
the
world today.
loan-grant ratios,
other
financial
aspects
It has been
program.
of
concern
the
ters
pertaining
on
to
financial
the
of
a
Council
all
primary
to
make
States
in
a
are
effectively coordinated
manner
designed not only to
insure the attainment of
that
actions
our
hot threaten
in
this
field
the stability of
economic system.
The
American
do
our
,
Economy and«
Foreign Aid
our
budget
and
mat«
European
in the
program
financial burden upon
the proper combination of
budget¬
monetary policies requires
the close cooperation of the United
States
Treasury and the Federal
System. This I shall de¬
velop further this evening.
Reserve
The cost of the foreign economic
program
pressures
our
pared to the
tive.
assistance
in
upon
to
people, who are called
export to foreign coun¬
run
economic
If
nomic
important, though
not
provided assistance to
occupied by United States
forces,
such
as
Germany and
areas
Japan, and to other countries such
as
China, Greece and the Philip¬
pines, while the Export-Import
and
the
International Bank
Reconstruction and Develop¬
(the latter thus far making
ment
little
except dollar loans)
con¬
finance sound economic
to
projects in Europe, Latin
America,
and other parts of the
world.
predominant
character
The
of
the
European Recovery Program
may
be
gauged
by the fact that the
amount authorized and
appropri¬
ated on its
account—$5 billion—
represents about four-fifths of the
total appropriations
by Congress
for foreign aid for the
current
Because of the
large
dependence of Europe
trade, the role of the
on
made available to
tries
will
European
be
European
spent
in
coun¬
Canada,
America, and countries
side the
out¬
Western
Hemisphere. In
this way our aid to
Europe will
also serve to provide
Canada and
Latin America with
dollars, which
they in
turn
can
use
to
pay
for
goods they need from this coun¬
try, and will help to alleviate bal-
problems
in
a
wide area.
;
The
alterna¬
to
foreign
need,
of
ex¬
coun¬
would
we
precipitating for¬
with
and
revolutionary
political
would
be
gone.
eco¬
changes
All hope
order
War-wrecked
•
countries in Europe and the Far
East, deprived of the hope of a
return
to
tolerable living stand¬
ards, would become the easy prey
of
regimes
nomic
which
security
promise
eco¬
in
exchange for
political free¬
Confronted with a world
largely made up of dictatorships
the
surrender
of
dom;
of
the
left
States
in
would
cold
a
or
maintain
curity
and
right, the United
find .itself isolated
hostile world. To
even
a
pretense of
these: conditions
Would require a level of
expendi¬
tures for defense
vastly
present
spent
greater
contemplated. The
now
and
prospective
for
foreign
aid
measured
against
these
tives. ?
v
V
',
-
'
.
-
sums
should
be
alterna¬
"]
.
Conclusion
.
:
.
.
There is, of
course, no certainty
that opr foreign
recovery program
will achieve
it.
all that
Difficulties
seen
may
thwart
at
of
if
In this
us
to the certain¬
we
shrink
from
connection, there
is
grave danger that
too
much
store
by
,
we
the
shall
set
results
achieved in the first
year and, if
these
results
it
was
activity
was
restored to
the pre-war level.
To a very large
degree, the suc¬
foreign economic pro¬
cess of our
will depend upon
gram
until
after the de¬
that European
Germany,
economic
not
years
our
own
actions.
future
only to
This applies
not
actions directly relat¬
our
ing to
the program itself but
to
decisions in the broader
field
economic policy as a
whole
our
of
For example, we cannot
expecteither the recovery of
world trade:
or the
recovery of
Europe if, after,
short
a
breathing
to
tariffs
and
speii,
at->
we
reinstate
prohibitivethereby prevent Eu-.
selling the exports it
rope
from
must
sell- if it
is to pay for the
imports it needs and thus become
self-supporting again. For Europe
to pay its
way, it is not enoughthat European countries are
able
to
produee
the
of exports;
to
volume
necessary
they must also be ablei
them.
sell
This
that
means
other
countries, including our own
country, must be prepared to in¬
imports.
crease
the
In
tl,
»
second
place, we can¬
not
expect
Europe
to
achieve
economic and political
stability- if
our own
economy, which is such
an
important
segment
of
the
world
economy, is characterized
by severe booms and depressions
accompanied by equally drastic
fluctuations
in
our
purchases
from
abroad.
Much
ability to keep
our
in
order
depends
particularly
—
on
house
our own
on
our
ability to avoid the evils of in¬
flation and deflation.
Inflation is
the immediate problem, and this
must
we
fight at the source, which
maintaniing maximum pro¬
means
duction and
reducing
restraining
e x c e § s
well
as
as
purchasing'
•
power.
To a degree which is almost im¬
possible to exaggerate, the future
depends on the type of leadership
shown by this
country.
Of the'
major countries which were en¬
gaged in the recent conflict, our]
country was almost alone in being;
able .to
keep its productive
capaIt has been estimated'
city intact.
that
the
United
States at present
roughly half of the
production.'
Thus, without asking for the role,
we find ourselves
catapulted into'
a position of
great power and in¬
accounts
for
world's
fluence
great
industrial
which
carries
responsibility
and at home.
lems
which
lie
ahead
but
that the
in
the
prob¬
and
us
a
straight
remember
action are
our
Civilization itself may
balance.
We
cannot afford
we
abroad
it will be
us,
must
we
stakes of
very great.
be
of
difficult to steer
very
course,
and
beset
now
it a
with
both
In the sea of
which
Joins Maxwell,
Marshall Staff
(Special, to
S
LOS
The
need not,
to fail.
:,
.
Chkonicle)
Financial
ANGELES, CALIF.—Alex.
T. Robinson has become
associated
with
Maxwell, Marshall & Co.,
647 South Spring Street, members,
of
the
Los Angeles
Stock Ex¬
change. In the past he was with
Bankamerica Company and prior
thereto was an officer of Floyd A. Allen & Co.
•
-s
.
hope for
arise to disappoint and
but spch possibilities
disaster
the task.
of
.
.
•
present unfore¬
us,
should not blind
ty
we
feat
se¬
under
than any
disruptive than the
or seven
are
take the
Francis B; Manchester With
First California Company
(Special
LOS
to
The
CALIF.
ANGELES,
•
Chronicle)
Financial
—
Francis B. Manchester has become
associated
with, First
disappointing, Company, 510
So.
California •
Street.,
officer of
Spring
short-sighted step of dis¬ In the past he was an
continuing or greatly "
curtailing Nelson Douglass & Co.
program.
In
fact, the objec¬
the
Administration's
mendations
com¬
world
Recovery Program goes far be¬
yond any geographical limitations
—in fact, it is intended
that a
substantial
part
of the
dollars
Latin
to
secur¬
item of our foreign aid. throughout the world.
Congressional appropria¬ of a democratic international
tions have
tinue
the
refuse
to
critical
fronted
for
econ¬
goods and services eign developments of the most sin¬
ister character. We would be con¬
is the most
Bank
of
should
we
the risk
they receive in exchange.
The European
Recovery Program
Other
a
in order
run
cost
Federal
tries
the sole,
domestic
aid seems to be small indeed
burden
more
represents
ity and economic stabilization in
the long run.
The cost of foreign
our
than
the
on
in the short
omy
upon
tries far
whole
a
substantial measure of genuine
sacrifice and subj ects the Ameri¬
can people to further
inflationary
tend
an
as
contribute to international
It must be recognized that
;?
market
ary and
for¬
our
eign objectives, but to insure also
the
¬
the
certain that the domestic and in¬
ternational policies of the United
.
Cooperation
and
from
portant to carry out a monetary
policy designed to restrain the ex
pansion of bank credit. To achieve
gram on matters of local
currency
funds,
withdrawn
through taxation.
At the same
time, in view of the inflationary
pressure arising from domestic as
well as foreign
sources, it is im¬
Bank, and has
given advice to the Administrator
of the European
Recovery Pro¬
ance-of-payments
The Role of the National
Advisory
Council
be
1925,
tempt
by appropriate domestic
budgetary policies; it is
supremely important that govern¬
the United States Directors of the
International Monetary Fund and
fiscal year.
.
Thd United, States
Government
kept the Italian and French
on
March 1, 1947, the Fund
approved
de¬
or
The most important of
these domestic measures is in the
ment
aggregate imposes a very real bur¬
den upon the United
States^-a
they recognize, however, that such
e
expenditures
in
measures.
consistency of
part of all govern¬
the
on
per
new
of
action
foreign economic
agreements provide
course, exchange rates. Of
course,
it is not the
desire of this Gov¬
in
creation, the Council
the
currencies; but
(and the Portu¬
also for con¬
guese escuda, which is also a free¬
sultation 7with ithe United
-States- ly convertible currency) a "free
on
all
market
was
matters,
established
which
including,
of
valid
its
has played an active
part in the
determination of the foreign fi¬
nancial policy of the United States
and in
insuring
1948, the French
proposed to change
dollar,
ex¬
change system to include mul¬
tiple. and fluctuating rates.
A
and
< Since
in
there
increase
taxation, and that the
inflationary impact would be held
European Recovery Program.
January,
Government
cies, by balancing the government
creating or maintaining
monetary
Export-Import Bank, and,
also the Administrator of the
that
overall
no
as¬
agencies dealing with for¬
already arisen eign financial matters. In par¬ anced budget. If this practice is
the exchange ticular,, the
Council has main¬ followed, the purchasing power
important European tained constant consultations with created by these expenditures will
Fund
budget,
the
mainly
be
certain
on
have
mestic ecnomic and financial
poli¬
internal financial
stability, restor¬
ing confidence in the
sumptions,
the
based
were
connection with
rates of two
International Monetary Fund
people and the stability of the
economy.
These con¬
clusions
crease
Ob¬
of the Ameri¬
American
of
in
new
ERP
standard of living
can
government
large scale
as
that this drain
unduly
affect
the
not
Chairman of the Board of Trustees
now,
occurred^ during
and
years,
would
would
is being provided.
Problems
in
i
past
Sec¬
Woods
:
than
States
United
long
as
aid
that the
able
under
Bretton
System,
exchange rates
proper
value of the
appears
1945
the
for
misunderstand
first World
vastly iess de
was
and
recent;; conflict,
drain upon American
any greater
resources
of the Board of Governors of the
Federal
Reserve
It
direct interest in the. main¬
a
the present time to outline
the
exact way in which it will
operate.
In general,
it
of
contemplated
aid
is
countries.
Italy
and
France.
At the time Italy was
under study both in Paris
(by the ]
European governments) and in I admitted Jto the Fund (March,
Washington (by the United States 1947) she had an exchange sys¬
Government). It is impossible at tem based on multiple fluctuating
however,
4
foreign
which
structive
that the amount
were
the current year would not impose
The Council con¬
sists of the Secretary of the Treas¬
viously, however, the adjustment
exchange
rates
cannot
be
made simultaneously for all coun¬
tries, since the requisite degree
of internal
stability is attained at
different periods,
v
dollar
grants received from the
United States.
The application of
this new system continues to be
Congress in
tion
.
countries]
the
by
of
under
which creditor countries will
tend grants to debtor
and
clear
dollar
participating in
in
multilateral
me¬
War,
war¬
The general,
declining.
were
time
at
9, 1943
the nature of the
problem and of
the remedy.
It should be
remem
bered that after the
and defense expend!-r
conclusions
is the
National Advisory Council on In¬
ternational Monetary and Finan¬
cial Problems, which was create
wage
to the steps taken
member
tenance
Reports
out
the
has
compensations
desirable.
ropean
tures
of
remained
taxation
for¬
dium for such coordination
internal stabilization of the
economic
or
States
with
eign financial activities. The
ury, the Secretary of State, the
Secretary of Commerce, Chairman
related
compensations made by the Bank
International Settlements ac¬
whether
concerned
when
time levels
Agreement Act.
ward
for
to
Government
war
be
exceptions, most
the right to
reject propositions for
reserved
or
the
in
few
countries
accept
of
general agreement that any action
Europe on exchange rates must
automatic and universal. In
fact,
end
price levels, and that some
adjustments in
exchange rates
•may
prove
necessary.
There is
the
not
the
and agencies of the United
and
intra-
could
after
immedi¬
the second half of 1947, at a
is;:; required
departments
various
„
^
These studies were undertaken in
ihe
September
covery would be to
capacity to bear this burden.
our
Recovery i-Program
among
Thursday,
ful and- comprehensive
Financial Problems of the ERP
;
is
CHRONICLE
on
foreign
recom¬
tives sought
by the program
not
aid
decided upon in the
light of
were
possibly
year.
care¬
sound
To
be
expect
beginning
Herbert
can¬
achieved in
more
one
than
of the desired
a
re¬
with
has
G.
also
H.
Foster,
Brashears
become
First California.
&
previously
Company*1
connected
with
*
Number 4732
168
Volume
THE
•
COMMERCIAL
&
FINANCIAL
CHRONICLE
country to cooperate with intelli¬
homes from foreclosure,
(Continued from first page)
brought
of the country's citizens. In the average wage irorn 45 cents to
unity there is strength.. Work¬ $1,33 an hour.
ing people need every ounce of
Democratic Boom
strength they possess to meet to¬
You all remember how a Demo¬
day's problems.
Forces in the
.
world and our Government would
cratic
free labor.
Therefore I
am
urging you with) everything
I have to send Frank Hook to the
Senate of the United States and
to
send
a
Congressman
from
Michigan that will go along with
me on this
program. V
V
; As you know, I speak plainly
sometimes—in fact, I speak blunt¬
ly sometimes and I am going to
speak plainly and bluntly today.
greatest depression in history into
destroy
These
critical
are
for
and
labor,
all
times
who
for
work.
| There's great danger ahead. Right
whole future of labor is
Administration
tne most
try's
prosperous era the
expense of the rest of
Labor
gains
nessmen
in
lore
But
are
the
these gains
Congress, and an Administra¬
friendly to labor, you have
much tfrhope for. - If you .get;an
tion
,
Administration
unfriendly
and
■
Congress
a
to
labor, you have
jnuch to fear; and iyou had better
*
look Out.
Labor
•
7'
1
Versus
I believe that
tre¬
a
mendous force for preserving our
form of government. A free and
strong labor movement is our
best bulwark against communism,
f
To-remain strong and free you
a friendly Administra¬
must have
tion and
He is
man.
about how to get his way by ob¬
serving demogogues and reaction¬
he
other countries.
in
has
And
able allies
and in the radio.
now
in
many
the
by
under heavy
are
adopted that destroy the powers,
the spokesmen
of
re¬
prestige and earning power of la¬
'/•
bor?
1 tell you that labor must
Two years ago the people of
fight now harder than ever before
this country—and many
working to make sure that its rights are
men
among them—seemed to feel
kept intact.
that
a
gress—and they got taeir change.
must-culminate Li
That
Congress promptly fell into
In
all-out vote
an
election day.
Anything short
all-out vote would be a be¬
of
an
big business and attack on trayal by labor of its own interests.
The Republicans promptly
themselves a- cut in taxes Family Living Standard at Stake
and voted you a cut in freedom,
It is not only the rights of the
he
80th
Republican Congress unions which are at
abor.
voted
stake, but the
of your fam¬
,
failed
to
crack
down
prices
on
standard
of living
If prices are permitted to
right!
rise unchecked, it is your wives
The Republicans failed to give and your children who will suffer.
But it cracked down
of
consumers
labor all
on
America
pro-
ilies,
As real wages decline in the face
There's only one test of friend¬
ship: the test of the heart.
You
tection
know without
weapon into the and clothe her family, while her
big corporations in buying power is steadily whittled
the shape of the Taft-Hartley Law, away
being, told who is
yotir
your friend and who is not
I friend.
Glance
back
years.
Between 1900 and 1933, labor
dealt_three major blows.
these
case
blows
was
In each
coincided
depressions, which occurred
Republican
with
under
Administrations
and
In the depression years; of 1907
and
1908, sweeping injunctions
used
Send
its
to
weaken
trusted
labor and
leaders
to
jail.
of
passed
.
I
the
vetoed, but which
over my
The
union
veto.
men
have talked tell
came
|n 1921, when the
Republican depression put nearly
whom
I
that labor is
me
will get if the Republican
action
grow.
is
allowed
to
re-
continue
to
•
Important Republican
have
pers
already
newspa¬
announced
language: the Republicans
Congress are preparing fur¬
in
ther and stronger measures against
labor.
v;.V
The. strength of labor organizaI tions dropped off. A vicious camI;
anti-labor
swept the country.
of the open
propaganda
It
was
an
era
shop and the yellow-
dog contract.
A few years passed
3nd, you all remember, came the
workers of the country
blow.
was
no
terrible
a
unemployment
compensation under the Republi¬
cans.
There was no floor under
wages
under
the
Republicans.
Average hourly earnings in 1932
were
only 45 cents—under the Re¬
publicans.
'
From
workers
*12,000,000
were
to
out
work
the
and
Reoubli-
cans.
Then, in 1933,
.
the Admin¬
Franklin
Delano
istration
of
Roosevelt.
For, the
.
came
cewedi, the
time,
•
;
labor
recognition
couragement that it
25riH*
'
•
first
allowed
are
if
and
to
remain
these elements
in
are
power,
further
encouraged by the ' election of
a
fu
and
re-
eri_
needs—that i
...
constructive legislation
•
^onSress
abuses
tendingW^^Ch '
and a symcorrected many
against
'
passed
the
labor-
had boon, con
1-That Democratic
1Qil of which I was
Administra
part from
Wagner Act.' tc
a
aKs^e, fnir collective bargaining
vir?ed
!?
the sweat shop, pro
a
?'
Act,
if you stay at
home,
you
get.
.
Sees Threat to Unorganized
; Not only the labor
all men and women
unions, but
who work
How she
does
it
I
don'
I tried to
help her out in
this terrible price situation but
got absolutely no help from that
do-nothing 80th Republican Con¬
gress.
C:
Make
mistake,
no
■ C
.
face
are
you
with a struggle to pre¬
the Very foundations of your
rights and your standards of liv¬
to
face
the
on
in danger. And the danger is
greatest for those who do not be¬
will
blows
fall
If anything, the
severely on
most
the white-collar workers; and the
unoiganizecl workers.
And that's not all.
If this Taft-
Hartley Law remains in effect, la-'
But suppose,
while that law is in
a reactionary k Republican
Administration
were
to
bring
effect,
upon
us
another
boom-and-bust
cycle similar to that which struck
us during the last Republican Ad¬
ministration.
defensive, fighting
a
losing
fight.
don't
If you produce a
smashing vic¬
tory at the polls you have much
to hope for. Given such a victory,
I forsee the time, and not far off,
when it will be possible to de¬
velop a new and sounder program
trol
of
this
The
full
follows:
text
of the statement
The fourth Labor Day since the
affords us an opportunity to
public wants
a
tribute to the achievements of
pay
American labor in the tremendous
task of reconverting our
economy
to a peace-time basis.
an
total economy.
our
Nevertheless, I must point out
there are too many short¬
sighted and unthinking Americans
wno have adopted a "damn labor'
that
attitude
which
does
become
not
any citizen of this country. It is
time that every American recog¬
nized
what
it
is
fathers
out
knew
honorable
an
Our
basic
be traced
social
freedoms
can
largely to the fact that
United States of America.
is
why
America
—
where the
his hands
was
to
came
country
who worked with
man
'•>
man.
fathers
to find the
our
good
as
the next
as
The skill and energy of Ameri¬
workers have played a major
can
has
resulted in today's all-time
high records in achievement, pro¬
duction, income and profits.
Despite
strains,
great
in
stresses
general
suc¬
working as a team. La¬
bor, agriculture and business have
all
worked
to
production
boost
and
national
our
standard
our
of
living.
Free
collective
bargaining and
free enterprise economy have
our
proved their strength during those
trying
American
to
make
production
workers
has
nation
our
in
stone
the
and
years
of
helped
the
international
corner¬
efforts
to
bring about world recovery and
prosperity and a lasting peace.
American labor has never wav¬
in
ered
its
support of our bipar¬
tisan effort to win
;
and
have
we
ceeded in
—
thing to
labor had its birth of real freedom
the
by aid¬
peace
Today too mahy Americans in ing other nations in their effort
dining cars 'and country clubs
fashionable resorts are re¬
toward industrial recovery.
and
Production Must Be Raised
peating
like parrots the phrase
"Labor must be kept in its place.'1'
It
is
time
that .all Americans
Our goal now is to
increase pur
continue to
production and our
realized that the place of labor is
side by side with the businessman
standard
and with the
fairness of the distribution of the
farmer; and not
one
Labor
living.
we
portant
must
Must
labor.
our
way of life is
the best way of life in the world.
Unite
attitude
Equally im¬
improve
the
American
Our
of this Taft-
Hartley agitation that has been
most shocking to me has been the
Republican
of
fruits of
degree lower.
One of the aspects
But
we
and must improve it.
can
workers
Some
their
see
actual
earnings reduced despite pay in¬
creases by the rising tide of infla¬
expressed
in the pious speeches of some of tion.
We must act to end this eco¬
their leaders in government and nomic dislocation.
We must curb
business. They seem to think that inflation before it leads us to eco¬
labor is some kind of a spoiled
nomic disaster.
as
child, that needs to be spanked.
They lift their eyes sympatheti¬
cally and say, "It hurts me worse
than it hurts
It
does
you."
hurt
not
needs
bit,
one
to unite
in common
They must unite, and it
great Say for labor and
a great day for the country when
that happens.
causes.
will be
a
All of labor stands at the
roads
today; You can elect
Administration,
cross¬
Congress and
a
ministration
which
stand
re?
a
an
of
hope.
The
decent minimum
must
and
increase
relieve
such
the
wage.
injustice
minimum-wage,
an hour to at
level from 40* cents
least
75
Too
cents
hour.
an
.
workers lack theof adequate social se¬
many
protection
curity and a national health in¬
surance
vide
We must
program.
pro¬
this security for them.
All American workers lack the
services
be provided by an
ready
choice
which
and
could
.
situation
This
funds.
is remedied.
the Taft-
should
integrated De¬
partment of Labor provided with
adequate
staff
and
adequate-
yours.
Do you want to carry
a
We
Ad¬
to play fair with every element
in American life and enter a new
period
Some workers lack the protec¬
You
actionary
elect
Higher Minimum-Wage Needed
tion of
them
certainly does hurt you.
In practical terms, it means that
labor
must
be
•
Finally, there is at present on.
the statute books
a
law which un¬
for its
nation's
As
a
has had.
basis for such
of
gram
increased produc¬
ever
labor
a
new
relations,
1
pro?
think
closely with
that of the farmer and the small
businessman.
I
know
from
my
own
experience with labor lead¬
unions
and
that
the
ability
discipline itself and
cooperation with other
groups in the country in steadily
ers
of
labor
to
to achieve
growing.
During the war, when I was
surveying; American industry as
of
chairman
gating
the
Senate
Committee,
I
Hartley
Labor has always
had to fight
gains. Now you are fight¬
ing for the whole future of the
labor movement. We* are; in a
hard, tough fight against shrewd
and rich opponents. They know
they* can't count on your votes,
Their only hope is that you won't
and
to
improve
standard of
This
our
national
living.
labor, always inter¬
government, is mak¬
ing great efforts to get out the
vote in November*
It is to be:
year
ested in good
■
eligible voter
vote at all.
■r-not just the customary minor¬
They have misjudged you
ity of those eligible-^will go tct
know that we're going to win this
the polls and register an opinion
crusade for the right!:
hoped
that
every
.
on
Investi¬
came
to
what course The United States.
Repeal of Taft-Hartley Law
Then,
in
take
should
the
the
days
ahead.
will be the
outcome
.
You
I
leaders.
saw
them, and talked
to them, and visited their homes
in
scores
of
communities.
I
has begun lor you.
watched
already see signs of it; The
them. And the bust
them
at
dreds of plants.
I
know
willing
that
as any
work
in
hun¬
is
just
as
other group in the
by President
decision of all America.
Labor
The
Taft-Hartley
law
was
its repeal asked
in- a so-called Labor Day
was
in the forefront when
democracy was challenged on
excoriated by and
our
for,
the battlefield and in the
statement made
by President Tru¬
September 1. The Presi¬
man
on
dent
>
labor
Demanded
declared
the
>
part in the national effort which
I said a moment ago that the
public is full of good feeling and
good sense. That is certainly true
of the great majority.
4
That
>
war
Administration
of
that
,
:
link its position more
of the
tivity than it
boom is on for
can
mini¬
cents per
curity and health insurance.
be
will
gram
in
to 75
hour,
together with increased social se¬
sense
people
gains
ress
raising of the
a
wage
play fair with labor.
will support a pro¬
under which labor makes
consistent with the prog¬
that
The
international peace and
Mr.
Truman
further
it is clear that labor will need to
when, it will be possible for labor
to obtain a more equitable share
to tell
country again.
American
to
27
law to its full implica¬
fairly restricts labor unions and
tion and totally enslave the work¬
their members. It should be re¬
ing man, white-collar and union
pealed
man alike, or do you want to go
Better
legislation ' on labors
forward with an Administration
whose interest is the welfare of management relations is an abso¬
lute necessity in the program tc*
the common man?
increase
our
economic strength
know the conditions under which
have
The
Congress and
can
you;that labor works and: lives. I came to
that is an exceedingly real possi¬ know and respect the minds and
bility, if the Republicans get con¬ spirits of the workers and union
I
good
feeling of the American
It is my prediction thai
but it
serve
gre
If you let the Republican reac¬
unemployment compensa
Passed the Social Security tionaries get complete control of
saved millions of workers
this Government, the position of
prices.
know.
did in
1946, and keep these reactionaries
in power, you deserve every blow
of labor relations for the nation;
you
as
bor's position will be bad enough.
'(;sl^cnt Roosevelt
nf
pay en-
the
15,000,000 long to unions.
of
unemployed—under
Think
ing,
If we are to have a reac¬
Congressional elements tionary j Administration
in
the
that made the Taft-Hartley Law
years ahead, labor could be only
If
Republican President, 5 you. men
Republican panic of 1930, and the of labor can expect to be hit by a
great
depression, which dealt the. steady barrage of body blows. And
There
bow they have made the
in
plain
ment.
of
wives
the
managers,
and mothers of this nation.
Taft-Hartley j • > Now mother has to outfit the
Law is only a foretaste, of what children for school at outrageous
you
6,000,000 workers out of employ-
I paign
business
of
with
just beginning to feel the effects S velopes stretch with each rise in
of the Taft-Hartley Law, And you prices.
But another blow to the heart
Iof l?bor
I
My sympathy is with those best
was
Republican Anti-Labor Campaign
1921 Blow to Labor
I
dangerous
a
bands
and I know that the
Republican Congresses.
were
put
Which
the
over
against the rising cost of Of rising prices, it is the housewife
same time they who must try desperately to feed
But at the
lving.
GOP
;he Republican reaction will
rejected.
practical
terms, this means
powerful political effort which
on
Defeat
work with your hands.
they wanted a change. They
elected the Republican 80th Con-
the
friendly Congress.
a
shrewd
a
aid for
a'strong and free
labor movement constitutes
today is
action.
he familiar Republican pattern of
Communism
of
mum
Will
fundamental
people.
those who hate labor, who can you
blame if measures are thereafter
fact
the
in
interest of
of those who believe
one
free labor and free enterprise. ;
Remember that the reactionary
aries
busi¬
am
and good
is
The plain
years.
attack
a
the
the gains that we've made in the
| wrapped up in one. simple propo¬
If in this next election you get
to
Sense
lor
higher than ever be- press
history of the world.
If you place the Government of
fight to keep this country under the control of
16
;
and living standards of tne
American working man, but even
our democratic institutions of
I
wages
still have to
we
Good
only for the
in
many
ways
much
shrewder
than the reactionaries of the 1920's,
are He is a man witn a calculating
nation's general piosperity.
Incomes of farmers and
Last
■
not
coun¬
the nation.
contributed
recovery;
called for
greatly weakened
mat 1 would iear
Sixty-one million people
employed today. The gains of la¬ machine where his heart
ought to
bor were not
accomplisned at the be.
He has learned a great deal
that
v■
the
ever seem.
! now, the
sition. 7
turned
labor will be so
bution
gent programs in the
the nation as a whole.
free Labor and Free Enterprise
fare
(1023)
legislation im
pose$t unfair curbs on workers,
and highly lauded, labor's contri¬
We
in
all
the
know
that
forefront
challenge
of
factory.
labor will
be
meeting
the
in
today's
peace-time^
problems to that same democracy*
•
28
(1024)
THE
COMMERCIAL
Thursday, September 9,
1943
CHRONICLE
FINANCIAL
&
Agricultural
approaching an annual
$212,000,000,000, an increase
viduals is
Fall Business Holds Close To Peak Levels
(Continued from page 9)
} deeply in debt that at any pretoward a possible vious time as is indicated by the
slowing down and the probability figures reported by the Federal
that they will decline before
The total
con¬
long, Reserve Board.
that
'
dications point
due
primarily to the exceptionally
good crops this year.
While
the
of
price level has been upward, the
prices of some commodities have
those
for
feeds.
Also
well
as
lower
sugar, eggs, and cotton.
of other commodities
000.
has
last
cant
three
rise
from the
slightly
because
war
been
of
one
the
sumer
offset
are
tional
con¬
into
penditures
both
On the
income is very low, however, and
much further expansion can take
represent the
which
a
Statistics
place before the prewar ratio will
lation
will have to spend to pur¬
the goods that are being
commodities
of
and
28
sensitive
the
Dun
and
Bradstreet index of 30 basic
modities
peak.
The
have
most
been
trends
in
downward,
The
com¬
about 10% below the
are
be reached.
each
although
the
both
by
of
use
business
and
is
sumers
and
chase
reasonable
normally a
policy in pro¬
and
maintaining
good
moting
business
conditions.
for the future
however,
it
they are occur¬
ring in those prices which have in
and
the
must
the
past
often
moved
ahead
general price level.
of
credit
Although
combined
of
have
to
produce the present
high price level, the basic one has
been the great increase in the
sup¬
ply of money which accompanied
the financing of the war and the
continued heavy spending
by the
These
liquid assets held by individuals
chases.
or
sales
and
is
The
a
than
tem¬
important
an
must
which cannot
indefinitely,
can
it is
a
be
temporary influ¬
however,
continued
is
consumer pur¬
increase
as
though it
times
debt
financing
considered
ence,
all
administered.
stimulates
that
means
factors
many
credit
times,
undesirable
at
soundly
porarily
Causing High
•
At
be
policies
be
trend
Factors
may
Expanding
'
by con¬
significant
constructive
changes have not been great.
These changes may be
significant
as
credit
go
be
even
much further
before the danger
As the amount
now
number
the
institutions, cash in people's
pockets, and cashable government
bonds, are more than three times
greater than they were before the
war. These liquid assets have
been
supplemented by widespread
tension
of
credit
ex¬
in
many forms
and the borrowed funds have
fur¬
ther
increased
the
competition
for the limited
supplies of goods.
As compared with this
great in¬
crease
in the amount of
money the
total output of factories has
risen
only 90%. As long as public
psy¬
chology
remains
favorable
buying, the result of
dition will
inevitably
such
mean
prices.
a
per
higher
This
tion
basic
inflationary
situa¬
been further stimulated
h#s
during; the last three
years
by the
policies whiph have been followed
in
many fields. The expansion of
credit has given
consumers and
business
lars
concerns many more
with
which
to
buy
dol¬
goods.
Bank loans to business are
three
times greater than
they were in
1939 and
at
a
they are still increasing
rate of 2%; a month.
Other
financial
institutions,
especially
insurance companies, have also in¬
creased. their
loans
to
lending. Many of the
business
have
been
for
the purpose of
building new plants
and adding to productive
capacity.
Others, especially those for short
periods, have been used to build
up
inventories.
In
the
long run,
the increases in
productive capacit y will be a factor in
prices
as
turned
out
the
is
supply
made
reducing
of, goods
greater.
The
first
effect, however, has been to
increase
prices V through
using
more
of the
materials. Cur¬
scarce
rent
surveys indicate that much
of the capital
expansion program
will be completed this
year.
*
Another field
has expanded
tended
gage debt
since
on
1941.
the rate
a
year.
which
credit
homes has risen $20,more than doubled
or
It
has
of close
been
to
rising
at
$5,000,000,000
The need for
more
hous¬
ing is still urgent and the increase
in debt may be well
justified but
it has been a factor in
pushing
prices higher.
High
consumer
large amounts of
v-
;
1
of
the
management
tions that
Even
with
restric¬
are
being imposed now,
the use of .credit is
likely to con¬
tinue to be a stimulating influ¬
ence
during the next few months.
Consumer Spending Boosts Prices
Consumer expenditures are de¬
mainly by the volume
employment and the level of
termined
of
and
Employment
in civilian jobs is
higher than ever
before and with 61,600,000
persons
at work the goal* of full
employ¬
ment
has
wages.
been
reached.
ployment has been reduced
than
ered
low
Unem¬
to less
2,000,000. which is consid¬
close to the minimum to al¬
for work
interruptions, the
changing of jobs, and other tem¬
porary factors.
Not
work
only
are
more
persons
at
have
but also their rates of
pay
been
increased.
Weekly,
wages
in factories have risen to
average of $52.81, as
with the 1929 average
an
compared
of $23.86.
The increase in the last
year has
been about 7% which is
only half
the increase that was made in the
preceding
Total
weekly
wages are higher than at the war¬
time peak When many more hours
were
year.
worked.
The
increase
in
wages has been greater than the
increase in production and is one
of the major factors in the rise of
industrial prices. The increase of
over-100% is also greater than
the rise in the cost of
living, and
indicates that real earnings of the
workers have gained
considerably
during the last ten years,
are
reflected in the
ness
abnormal
or
extremely
of
conditions, such as
liquid assets, a
may, be hidden
large
balance
considerable period and may
a
become
even
In
worse.
time, how¬
ever, it will become prominent
and may lead in the, future as it
has in the past to serious diffi¬
and
Another
is
that
involve
considerable
important comparison
between
the
number
of
corresponding
previous
period.
Sales are currently running close
to 10% higher than they were a
incomes
savings
and
have
been supplemented by the
steady
and rapid expansion in consumer
credit.
Consumers are now more
goods
year
sold
may
the total amount of
in
retail
reach
stores
this
$125,000,000,000.
The increase in the dollar volume
is about the same as the; rise in
retail
prices but it does, indicate
Prices
given
in
recent
months
of the
to
•
but will
year
comparison with the
numbers of
livestock on farms, the
total supplies of feed grains per.
animal
will be larger than in
any preced¬
.
Considerable attention has been
sideration
smaller
last
be
large
enough to meet the demand.
In
High
the
a con¬
ing year.,This large amount
will
best methods to
the
One method is that of restrictions
feeding
will
encourage
stock and
in order to keep prices down.
on
result
:i'rOl'ui .1'*'
I.l
live-
larger
strictions
effective
are
slightly
more
than, the. increase in production
which may indicate that produc¬
tivity
is
should
not
increasing
normally
must be
do.
as
it
Allowance
crop is also
to
employment.
part-time
These changes have
shown wide variations
among dif¬
ferent
industries, but in some lines
manufacturing a larger number
of workers has,
-freen., .needed $ to
of
.
turn out each unit of product than
in
the
prewar
A
years.
problem for
labor
and
major
for
man¬
agement is to find ways by which
productivity can be increased and
more
goods turned out for each
hour of labor.
That method is the
only
constructive way to
deal
with the problem of
rising prices
in the long run.
' i
Increased
way
made
productivity
is
the
in which progress has been
in the past.
Output per
worker has risen to over three
times that of 70 years
ago, 'with
the
average
annual
rate
of
The
minor factor.
upon
dom with
are
factors
in
which these
managed.
will
be
more
significant
stand¬
living in this country than
many oL the more
spectacular
items which are
prominently dis¬
played in current headlines. For
that reason
they deserve the care¬
ful attention and
consideration of
A
labor, and government.
understanding • of basic
broad
principles of economics is
ing
a
an
es¬
permanently high level of
production and trade.
These
need
long-run
to
when
be
any
considerations
taken
into
appraisal
is
account
made
of
the
current
situation
with
large national income and
a
the
stead¬
ily rising
price level
duction is
increasing only slowly.
while
pro¬
Total income received
by all indi¬
L
J'.V
primarily
per acre.
cotton
is
crop
of 15,000,000
only about 3,000,000
larger
not
than
last
and
ten-
averge, but also the largest
since 1937.
It will be somewhat
year
and thus lower demand for
goods.
in
which has been
running somewhat
lower than last year.
Exports of
loans
ness
and
the
Working
direction is the policy
same
more expen¬
While the tendency of these
measures is definitely in the di¬
Variations among prices of dif¬
sive.
ferent farm products reflect the
changing conditions in production.
rection of reduced demand and
lower prices the net effect on the
economic system is not certain.
other
and
in
the
likely
other
to
possibly
still
are
direction
Prices of grains and of cotton
have been declining and are lower
than at any time in the
past year.
On the other hand,
prices of live¬
more
working
and
stock and many livestock
to rise.
They
are
continue
control
until the bal¬
ance of these forces
changes. Eco¬
nomic changes are always deter¬
mined by. a complex combination
of influences and
modifying
ago, but also
Some
of
work
the
have
in
other
been
the
opposite
terest rates.
Among them
average price of all farm
js about 10% higher thai}
it Was .'a year ago and very close
to the peak which was established
will
easier
credit
rental
housing and broader
antees
for
for
construction
building loans.
though the
need
for
of
guar¬
Even
housing
great, the effect of these
is
measures
will be to increase the
pressure to¬
ward
higher prices in
areas
where it is
Much of the
some
of the
already strongest.
difficulty in deal¬
ing with the problem of infla¬
tion is due to an
inadequate un¬
greater
tivity. Every price is
to
some
one
one
and
a
else. If prices
$2,000,000,000
over
compared with less
$700,000,000 in the prewar
as
years.
Declining
prices due to large
indicate that the
peak of farm income was reached
production
may
last
year, : although government
and price support policies
will tend to prevent as rapid de¬
loans
clines
have taken
as
place in the
past under similar conditions. De¬
for
will
farm
help
products is large
keep agricultural
conditions favorable.
income
to
(Special
are
more
must
inevitably also
having other people pay
Joins
■
Akin-Lambert
some¬
reduced so
that people as
consumers will be
able to get goods
by paying less,
then people as
producers will re¬
ceive less.
A policy which
results
in
enabling some people to receive
in
to
produc¬
an
cost
to
The
Financial
LOS ANGELES,
of
dealing
with
ley E. Seaton, Jr., has joined tn*
staff of Akin-Lambert Co., m
629 South Spring Street, members
of the Los Angeles and San Fran¬
result
cisco Stock Exchanges. He *
,
formerly with Gross, Van tou
more.
& Co.
price
;;
Geffeney With Lester Co.
problems
tive
or
are
likely to be ineffecharmful in that
they will
prevent
the
attainment
anced conditions
vide
and
ices.
for
the
of
(Special
bal¬
greatest
to
The
Financial
liam L. Geffeney has become
sociated with Lester & Co.,
the Los
serv¬
V
At)
if.vt-
:,? (
c:»
{
c
~
Spring Street, membeis
Angeles Stock Exchang®
He was previously with Bing
Walter. & Hurry,
South
production
and
Chronicle)
ANGELES, CALIF.-"
LOS
which will pro¬
exchange of goods
Chronicle)
CALIF,—Hun-
Until this fact is
clearly realized,
methods
in¬
output has boosted farm
monthly,
than
mand
closely interrelated and always
change together unless they are
by
creased
income
and
are
accompanied
early this year.
It is close to
200% above the perwar level. The
combination of high prices and
the
are
not
a year
The
direction
from that caused by the
restriction
on
credit and the
raising of in¬
are
establishing new
products
methods
adopted
are
peaks.
of them may.not be effective.
which
products
only higher than they were
few
a
consumption
put.
making borrowing
Many
of current
excess
cotton are likely to be
increased,
however, and a market will prob¬
ably be found for this large out¬
expansion of
borrowing of all kinds.
derstanding of what is involved
in it.
Incomes, prices, and costs
increases
These fundamental
also
They will be particularly effec¬
tive in tending to hold down busi¬
the wis¬
determining the future
ard of
addi¬
upon
are
The potato
large, due
yield
bales
Financial measures, such as re¬
quiring larger bank reserves, are
designed to reduce credit
rice
average.
bales
also
in¬
crease at about 3 per-cent. Future
progress will depend
tional increases and
record
a
and
rye
which price rises
have been greater are those in
which installment credit is
only a
of the lines in
made, of course, for the, powerful forces
reduced number of hours worked
each week and for some
of
crops
larger than
of raising interest rates and thus
rise has been
1,242,000,000 bushels is the sec¬
largest ever raised and the
many
put of goods and services. Em¬
ployment has risen in the last
year and has reached a new peak.
The
crop
of
they will
demand, but
year.
ond
,
yd
of
in
The harvest of food
grains has
been large. The wheat
many
in the
.
year ago and
With
persons at work and the total out¬
sential requirement for maintain¬
more
Dealing
tend to reduce
ing power. When either gets out
line, industry will eventually
tion and trade.
spending
plan¬
be slowed down and general busi¬
will decline.
Under unusual
proper
business,
stores and for services than in
any
barley. These crops
are
considerably above average
<The
hay crop is somewhat
of
the
enormous demands for
goods and
services which in turn have main¬
tained a large volume of
produc¬
People have been
money
in retail
of
grains, especially
and
than
Methods
feed
a£
is
than last
year
the
crops of
also
find
readjustment.
significant.
business
record'
3 3?q
are
types of products, especially
durable goods, which are still not
plentiful.
In so far as the re¬
to
balance between wage rates as
costs and total wages as, purchas¬
turning out currently. This con¬
dition may not be the
controlling
factor in affecting trends
during
the next few months but at some
time in the future it may become
all
more
good
other
the
which
supplies of meat next
culties
greatly is that ex¬
y These gains
housing. The mort¬
for
000,000,000
in
off
smaller
cent will be available for pur¬
goods factories are
salaries
^
pay
a
One
1,000,000,000
as
is
amounting to
bushels
Almost
oats
<•1
installment credit in order to
reduce the pressure of demand for
is
chasing \the
for
con¬
to
they work. On
wages
indicate
hand,
labor
and
past
used
hours
in
use
cial
be
pro¬
account
corn
000,000
the
v
-
significant
of
crop
ning.;-
operating expenses.
major problems of
for
must
the
\ Most
a!'
some vera
good years/
quantities
The per¬
problem of inflation and to
of
debt
grows,
an
increasingly
larger percentage of current in¬
indebtedness and
of
other
and
comes
considering
in
thi!
for
28% greater than the
ten yea,
which included
high degree of accuracy, but the
possibility of it should be kept
popu¬
ascer¬
maximum
the
of
goods and services.
responsible
erage,
versal cannot be forecast with any
dollars
be
can
read¬
conditions
labor costs which for most compa¬
nies represent the major item in
lack
corporations, which include
deposits in banks and other finan¬
by
,
of
duct of the wage rates, the num¬
ber of people working, and the
point is reached.
Federal Government since.
The total
produced.
tained
number
large section of the
drastic
been
outstanding achievement.
Out™,
of major
crops is estimated
tn u
deflation
policy may
be quite different from the tem¬
porary ones.
The date of the re¬
of
aspects
involve
until
Luu
record. It will
^5"
have
manent effects of any
hand, they do
one
the United States Bureau of Labor
index
tion
of
to the wisdom of wage
at any time must take
account
*,
later
a
new
boRf
pro¬
again
become favorable for the produc¬
as
wages.
consumer
will
justments
accurate ap¬
An
expenses.
praisal
policies
by
production will
a
by a substantial
margin
peak years of 1942 and
1946
acreage and hiah
xrioi•-^rge
acreage and high yields
per S
temporary inflationary period
a
which
produc¬
must be raised to cover the addi¬
re¬
been the major one. The ratio of
consumer
credit to current ex¬
to current
increased
tivity, the selling prices of goods
demand, although it has not
or
by
ESLPlS™^Previous year ^
crop
prices
income and
than
faster
followed
try must operate. Unless the raises
wartime
factors
be
to the costs under which indus¬
as
total
duction, as they have been doing
for a long time, the result will
indicate something
they
Weather conditions
this seas*'
more
favorable for the
S1
hsh
rise
only for their effect on
and sales volume but also
Most
are
e
the total income was a little under
$90,000,000,000.v Whenever
Prospects
Favorable
$140,000,000,000 of that amount. In
the previous boom year of 1929,
not
prices
$5,000,000,000
over
sponsible for the high level of
are
A number
higher
than they were a year
ago, but
still below the high point which
was reached early this
year. Both
The
low of
as
are
the
the last year. Wages
salaries constitute close to
in
10%
and
willing
able to buy the goods that
being produced.
Changes in the rates of pay and
in consumer incomes are signifi¬
was
$9,899,000,000 in 1941, and
the prewar average of
$6,400,000,-
were a year
ago.
Among the most
significant of them are the grains,
including those for food
within
still
are
are
now
The peak before the
years.
lower than they
are
180%
of
and
outstanding is
$14,000,000,000, an increase
over
general trend in the
dropped and
credit
sumer
consumers
rate of
1
-<
3 «
i
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YNumberY4732
168
Volume
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THEY COMMERCIAL
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FINANCIAL ..'CHRONICLE
a
&
-
"
■
first.
Inventory withdrawals
will
another 25-cent rise probably be required in the com¬
in the price of crude was prac¬ ing winter, but in the summer of
1949 proration restrictions
tically a "foregone conclusion."
might
well need to be tightened if undue
This increase has been avoided
increases are to
be
because the industry has devel¬ inventory
oped the desired rise in the sup¬ avoided. The levels of production
and of demand that far ahead are
plies of crude and end products
hard to forecast
during the summer period when
accurately.
All but a small percent of the
consumption normally runs below
movement of refined oil
winter levels. ;
;
products
is
•*
The "Deflation Fear
might be thought that inves¬
tors would be happy, now that the
oil industry has achieved stability
and has averted the loss of public
It
good will and the political threat
which might have accompanied
sky-rocketing 7 prices.
Instead,
.investors now fear that the
many
industry may be entering a period
at
contract
prices through
es¬
tablished channels. In recent
years
contract supplies have not
always
been adequate, to take care of the
full needs of regular clients. Pur¬
chasers
have
frequently gotten
the
small
additional
.
spot
contract
^
Weakening, a recheck of various
affecting oil, domestically
and internationally, suggests that
oil basically Is still a short com¬
modity
rather than
a
surplus
commodity. There is little that is
tangible to indicate that this basic
position will change
dium
over
the
me¬
amounts
Long-term trends will be much
needed for rounding out
require¬ affected by policies and practices
ments from inefficient
marginal of major petroleum interests in
sources.
These have stayed in exploiting recently
developed
business by charging extravagant Near East
fields, which will pro¬
spot prices to offset uneconomic vide increasing supplies for
methods of oil
procurement, re¬ Europe and also for the United
fining, or shipment. For their States.
Near East fields are the
part, the majors also have been richest in the world, but their
forced to iise uneconomic Expe¬ ownership is concentrated,
and
additional
factor
investors
but
this
121% above the
in
which
not
only in
industries is:
other
widespread obsession with the
"business cycle."
Sophisticated
ate
premiums on distillate
heavy fuel oils. Now these
mium^ have been sharply reduced
or eliminated.
It is natural that,
as the industry reaches a balanced
investors generally are thinking
in terms of the undependable
of
reaching
plateau
a
which might be maintained for
significant
a
period
near
or
moderately below current levels
is not being
the
given
industry
inventories
have
| crease has been solely in refined
products,
particularly
residual
heavy fuel oils. The decline in
world trade has affected shipping,
been
has
increase in residual
only
a
fuel
oil
con¬
Consumption of
lighter fuel oils and
or
kerosene has been ..large, but in¬
ventories have risen sufficiently
to
indicate;; that
last
In
all, the
crease
in
average rate of in¬
refined product inven-
Residual fuel oi]__
oiL^r_.^r
period of 1946.
I The aggregate inventory accumuI lation amounts to
only six days'
I additional
supply at current rate
rof
consumption.
Statistics
the
of
industry
variations, and in dis¬
with investors we have
noticed
that
the
sophis¬
ticated investor still has a concept
of the industry hitting its peak
months.
summer
rise
the
However, the
oil usage quietly
in fuel
shifted
average
seasonal
decline
and
peak of all oil products from the
summer
to the winter.
Peak
uary,
declining
95.4
to
lesser
and a
the
recent
advanced.
average
Hari2?s deity
the
1946—January 3
February
106.4
95.0
.
December,
<>15,275,000.
f*
T?
1947, daily average
overcome
neias
have
5,500,000
shortages
been
currently
many
pro¬
ving above
the output rates
"jost desirable for maximum eco
nomic
recovery.* (M.E.R.).
er» state boards
and
7fte Oil Compact
ontinue
to
function.
How
the Inter
Commission
They may
piexPected to cut down on mar
output whenever any defte
April
3
3
July
August
September
——
—
—~
October
the
producers
—,
November 3
to
seasonal
a
600,000
fluctuation
barrels
in
of
ultimate
Net earnings for the oil indus¬
try this year are expected to be
about
50%
higher than those
union?
107.2
95.4
1947—January
February
March
3
April
101.7
——
_
May
October
November
.—*104.8
118.5
particularly dis¬
turbing.
Mpch depends on the
trend of general business, but the
December, 1947, increase in crude
oil price, 50 cents per barrel, ad¬
mittedly was a large one, and the
industry could well prosper on a
somewhat lower price basis. An
easing of supply-demarfd pres¬
sures would probably result in a
stretching out of the industry's
tremendous
expansion program,
making a larger proportion of
earnings available for
Stock
.
Market
dividends.
Conclusions
The current decline
in prices of
far on a price
Grange,
What is
the Farm
membership
or
the
December
basis, and in time has: occupied
three
months.
Around
current
for their usually
ratios,
other features
Atlantic
as
low-
and
fcr
well, include
Refining,
Pure
Oil,
Cities Service and Sinclair,
,
Doing
8)
page
his
farm prices
age
over
a
period of
years.
to the farm
their cost.
income, rather than
.
on
.
3 Loans should be supported
Council
adequate records
of
Farm
Cooperatives?
What is the program of these farm
can
organizations? .33.
sary,
be
made
to
the
confirm the
Information
Supporting Loans to
Farmers
7.77:
officers
available, if
bank
by-
that
neces¬
examiners
to
judgment of the bank
and
the loan.
records
—
directors
who
made
'
1
All
of
these
things will help
bank to do a better job, but
your
for any
busy banker to carry on
the banking business and to keep
is
almost
impossible,
the point that
this
brings up
country bank needs to have
some
member
as
a
other
words,
desig¬
a
farm department.
big
a
staff
its agriculture represen¬
In
needs
its
of
agricultural
there
is
need
bank
If you
business,
for
trained
stitutes
sufficient
information
to
support loans to farmers?
Here
are
a
few
points that
are
worthwhile to keep in mind: 3
nual
analysis sheet; real estate
praisal;
photographs;
ap¬
inspector's
report; community survey, chattel
mortgage; credit reports; public
records
abstract;
tax
record;
aerial maps; correspondence; clip¬
The
a
loan
a
should
be amortized
plan
amount
that
can
be
on
as
land
fact
every
factor
arid
s to do with the
productiv¬
ity of the farm and the ability of
the farmer.
It's something that
the ABA is concerned about.
Our
Agricultural Commission will de¬
velop a manual for bankers to fol¬
low in the
making of farm loans,
giving particular emphasis to the
proper
The
appraisal of the farm.
future for agriculture
in
Georgia is bright.
The growth in
population
andthe increase
in
the purchasing power of the
peo¬
ple in
state opens many pos¬
your
for increasing farm in¬
Among them is the grow¬
ing importance of dairying. With
the long pasture season, southern
comes.
farmers
will
be able' to produce
cheaply than those in
the snow areas, s: The
change in
dairying however, involves E com¬
plete transition of the type of
agriculture that maintains mainly
milk
more
the
in
south.
the advice
classifi¬
levels, selected oil shares appear cation
maps, soil maps, and aerial
to offer the conservative investor
photographs should be used to
sound attraction on several im¬
help determine the quality and
portant counts, not least of which
productivity of the land in the
is
the
inadequate present ap¬
territory and of the farm, offered
praisal of the seasonal lift the in¬ as
security.
dustry is to experience.
Apart
Farm property
offered as se¬
from this, oil stocks are attrac¬
tively priced in relation to con¬ curity should be appraised by a
servatively stated earnings, also qualified person, familiar with lo¬
to probable future earnings, even cal farniing practices and values.
if projected on a considerably re¬ His report should show descrip¬
duced basis. In many cases large tion of the land as to is produc¬
soil,
and
its
yields are available apart from tivity/ types • of
The
farmer
needs
and
cooperation of his
banker, for it's going to take a lot
of credit to effect the
change. The
cattle,
grasses, and markets; he needs to
know more about the dairy farm¬
ing business' than he ever knew
needs
to
about
cotton.
sents
industrial
one
must stand
know
Each
farm
repre¬
endeavor;
on
each
its own.
In conclusion, let me urge you
keep closely in touch with your
state college of agriculture.
Its
to
program for
tive
Georgia is construc¬
planned to meet local
We need also to know!
legislation that will affect
and
conditions.
about
our business
and to use our in¬
fluence toward the enactment of i
sound laws:
Banking is vulnerable in that it
deals with such intrinsic qualities
as
such
paper
that
carried
with much lower farm income.
Records
proper appraiser recognizes
importance of putting down
the
banker
good farm mort¬
gage loan is one where the farm
offered as security will produce
sufficient income to pay operating
expenses, including taxes and in¬
surance; provide a living for an
average family; and leave enough
margin to pay interest and prin¬
cipal on the loan.
oh
A
sibilities
adapted to the bor¬
rower's ability to repay, and the
94.9
loan contract should permit ad¬
93.5
vance
payments
on
principal.
96.7
104.1 Loans made during the periods of
103.6 high income should provide for
121.0 rapid repayment until reduced to
92.8
98.1
95.4
33
94.5
95.5
teresting
price-earnings
of the local group in the National
The test of
July
August
September
nor
the
reau,
of pings, reports, etc.
equals 100)
in¬
,,
an
surprising
,/■;
Application; history of the ap¬
Currently;. with crude production plicant; memb, of loan conditions;
aVeraging 'Over 5,500,000 barrels financial y statement;
inventory;
per day, this difference is equiva¬ budget; operating statement; an¬
—
mselves do not take such steps oil shares has gone
It is
10% to 15% above the average of
the summer months' consumption.
June
-33! 89.8
3—100.5
December
signs of over-production are
Provided
121.0.
of
are
73./ 77333 37,; -V;
7,3
(8)7 What, farm organizations 7 Farm buildings should be ap¬
are represented in your commun¬
praised according to their useful-!
ity ?7 What7 percentage of your ness to the business of the farm,
farmers belong to the Farm Bu¬ on the basis of their contribution
then
95.4
*
;377; 37-373
a
December high of
101.7
-
the purchase of proper
equipment?
do
apparent that the average of the
winter
months'
consumption is
96.4
May
June
ini+
thJi
a
98.6
pro- 19473 If 1919 witnesses moderate
high- declines in crude oil prices, in
is only 4.3% above
credit for
late crest of 118.5
in December. The pattern in 1947 leadership because credit is more
sound
when
it is extended on
was similar, with a January peak
complete information.
What con¬
of 107.2, a June low of 92.8, and
average for each year
March
-
ex-
However,
of
69
Oils
.
tative.
.
Major Products 3
Price of crude with a 20% in¬ refined
products prices and in net
case in drilling activity, oil pro¬ earnings this would neither be
duction has
*
Refined Products Demand Index
(Monthly
also reflects rising domes¬
tic
production plus a small in¬
crease in net
imports. Responding
,°f? l?osening of production
in June,
Four
| tent it
rationing restrictions,
60.
(U. S. Bureau of Mines)
consumption,
apparently little
€r
43
Shell.
county agent and officers of soil his property; and his experience
conservation services.
and ability as a manager.
In making an appraisal of tbe
(7) Is your county organized for
soil
conservation
and
reforesta¬ farm,
first consideration should
tion? How many farmers are par¬ be given to the income
which the
ticipating? Do the farmers need farm is expected to yield at aver¬
nated
% Increase
daily demand.
by our seasonal index number,
peaked out early at 106.4 in Jan¬
men
every
102.5
rising to
lent
jn January
Oil demand in 1946, as indicated
Normal
a
and
some
The
in
recognized factor. To
has
consumption
same
important
are
to seasonal
cussions
inven¬
tories largely reflects the normal
an
-
California,
and
Jer¬
Vacuum,
Standard
family; his character and in¬
dustry; his attitude toward con¬
(6) The banker should know his serving the soil, and building up
informed
298.3
•
.
.
60.5
-—
complicated. In the form reported
by the press, they give little clue
The current increase, in
seasonal
33
Kerosene 3v-33-33.-33333-
period of 1947 and 1.9 times
Increase
rise
from
518.4
323.5
[has been 2.8 times that of the
Inventory
The
749.9
135.0
-
that of the
pace.
1947
-
555.5
Distillate fuel,
I tories during the past four months
same
lesser
other
Standard
Socony
•
-
29
in town?
sharply,
gasoline
1939
a
I averted.
I
a
of
consumption
1939 to 1947 was 43%.
Motor Fuel —-..33.3
repetition of
shortages
will
be
year's
at
risen
has
Oil,
Indiana
y
; y,
-—•
(1025)
reasonable quality which
(Continued from
operation from the business
and
small in
sumption in 1948.
distillate
albeit
in
consumption
consid¬
been increasing, although the in-
iand there
and
products
(In millions of barrels, U. S, Bureau of Mines)
eration which it may deserve.
Oil
level,
end
Domestic Demand for Refined Products
sand irregular prewar pattern of
"boom" and "bust."
The pos¬
sibility
and
pre¬
1939
prewar
in¬
Gulf
"3
About Inflation
term, or even necessarily
longer term, barring a
the
ever
par¬
'■
'
t
Texas,
sey,
of
v:''
What the Bankers Are
radical slump in general business.
,
An
Leading oil stocks which
ticularly. deserve mention
factors
,
affects
Standard
The/leadership exerted by
prices recede to major companies and the indus¬
try's low labor costs alike make
prices (and in some cases
below)., but the effect of this for the sort of stability which in¬
change is constructive, rather than vestors desire. Finally, the oil in¬
dustry
continues
to
display
a
otherwise, for the majors.
Although
spot
markets
are superior growth element.
position,
awkward deflation. Fears are
I heightened by the 3 same ;;; news
sources whichearlier this summer
were
editorializing on how de¬
mand was continuing to, outrun
supply. •: Such sources how ; ems; dients for the top part; of their exploitation is expected to be
phasize that production has been sales and such operations have orderly.
outrunning consumption, and that often resulted in losses.
;
Wartime
economic
develop¬
I spot market price premiums have,
The industry has been
operat¬ ments, particularly in ;the -United
been lessening.
As a result of ing its
refinery capacity at about States, caused a large jump in the
| more comfortable supplies, cer¬ 97% as against a normal well be¬ demand for oil products, both as
tain price developments favorable low
90%, indicating the degree to related to oil reserves and to the
to consumers and to major oil which all
facilities, high-cost or. interrelated
capacities
of
the
interests, and unfavorable to the low, have been
pressed into serv¬ world's oil wells and oil refineries.
I marginal
companies, already have ice. Last spring cash premiums Consumption
of
distillate
fuel
occurred,, and further changes are ran above 30 per gallon on
gaso¬ oils in the United States in 1947
in prospect;
3 7 ; f
line, with even larger proportion¬ was
of
clude
den, v
(Continued from first page)
v
•
status is sound; oil assets may be
exploited without undue tax bur¬
reports that
•»■>'
v-'
Vi".::;..:337,rv,3;'.'''31
savings, and therefore, lends it¬
to
political
consideration.
self
Thomas
Norman
in
most
of
his
appeals for support of the social¬
ist ticket, puts banks as the num¬
ber
one
come
business institution to be¬
socialized^ Mr. Wallace does
not
go as far as Mr. Thomas as
saying that all business and indus¬
try should be socialized, but sim¬
ply some of the main ones; he
doesn't put all banks in this cate¬
gory but lists the 100 largest.
_
dividend increases.. relative values with other farms
Oils give the inflation protection in the community. 7
provided by strategic assets in and 3' The ' appraiser's report, which
above the ground, valued in to¬ becomes a permanent record of
day's stock market well below the bank, should include full in¬
current replacement costs.
Tax formation as to the borrower and
any
further
Charles L. Andrews Dies
Charles
Lee
Andrews,
limited
partner in De Coppet & Doremus,
died
at
his
home
at
89 after a long illness.
the
age
of
;
30
(1026)
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
Thursday, September
9
1948
in
agreeing with him and any¬ given. It is flatly a specula¬
way he thought of it first. If tion. Armco buy at 29-30, stop
it's
any
satisfaction to the at 27; Burlington Mills 21-22,
gentleman, I hasten to assure stop at 20; Inspiration Cons.
him I hadn't read his market
Copper, 19MS-20V&, stop at 18.
letter. :.X^VC,vYInterlake Iron, buy at 14-15.
stop at 13; buy Loew's 16-17,
But to get back to the mar- stop at 15, and Paramount 23-
Tomorrow's
Markets
WalterWhyte
SctyS
's—
V
ket.
By WALTER WHYTE=
Buying time
to
at
recommended
but
stops
think
it's
about
get in if you
time
haven't al-
not to be neglected,
Up
are
and
now
so. I don't know
if the market will start with a
whoop and a holler from here
period about on, but I do know the signs
down
propitious.
are
over#
So
here
are
•
--
If I had
write
shut
the
good
column
one
mouth,
my
keep
the
-
sense
and
to
then
be
least,
at
or
stocks I suggest and the
prices at which they should
be
-
* :
;
*
I
know
am:
a
know
and
there
is
p0SitiVe
my
unless
the
agreements
can
of
trade,
article
do
expressed
this
In
is
left
a
handed
myself for
that
clear
be
that,
two-sided
replaced
not
by
only
Eu¬
and
^advice
specific
should b.
important
that
*
■
sion t0 find
SfSSw tooTmtrr.
quent
columns
cnmnlptelv
warned
I
*ar to explain to
what
wnat
I
i
of
that
';?■
me on
*
Oh yes,
t
the
No
*
j-j
i.
i
even
few
a
restrictions. However,
the political party
sitUation, which
js explained by
stating that the
Labor Party holds absolute plur¬
ality, means that many of these
restrictions, temporarily drawn,
wiJ1 exits as long as the Labor
it.
❖
you
these
ii
1 did get one letter.
Party,
A market
which
is
social
a
demo-
wnat
is
Ana
me
me
c*v-' munlsts
say-
20
Aug.
zu
are represented m our
national assembly,
"Stortinget" by
"I sincerely enjoyed your
article under date of
Aug. 19."
mg
#
$
just
_
_
I
as
started
votes
out
of
150,
which
to
striction
which
has
been
made
glow with justifiable pride I j law temporarily until July,
Which
he
added,
teresting to
a
it
v
in" j
IS
of
course in special cases gives the
labor government an extra
support. Coming back just to one re-
*
-
.
Then
io
in-
humble market
1949,
tS
state or the municipalities, is sufficiently extensive to allow the
student to be confirmed
in
had
infant
by a government to interfere
columnist, especially when he
week to think it
*
T
't
*
couldn't
over.
be instructed to transfer its
| can
*
heln
j raw materials, its machines, and
wondprino* oven personnel to othei factories
iuC0U1CV?t neip .wonaermg^or
was
if the writer
cause
every
peeved be-
he agreed with
me, or
peeved because I took
so
?
to close down
to
extend,
The only happening which
is that
open
is left
enterprise which
an
long has *?een. destroyed completely—
!
for instance, by fire,
say,
tural
happenings
ordered rebuilt
Pacific Coast
No
Securities
on
Pacific Coast Exchanges
i
or
by
na-
cannot
—
be
reconstructed.
Authority for Nationalization
Our
Orders Executed
or
present
labor
governmen
does not from its election
program
hold an authority to nationalize
enterprises
of
any
description
and
the
Labor
Party has not
drawn its line for the future so
far as this question is concerned
However, it is beyond
Schwabacher & Co.
New
York
Sto^k Exchange
V
£
Exchange (Associate)
San Francisco Stock
Exchange
Chicago Board of Trade
New
14
York Curb
Wall
Street
New York 5. N. Y.
COrtlandt 7-4150
Teletype NY 1-928
Private Wires to
Principal Offices
San Francisro—Santa
Barbara
Monterey—Oakland—Sacramento
•
Fresno
any doubt
that the theoretical conviction of
the Labor Party is
definitely in
favor
of
nationalizing
certain
croups of private enterprise, and
if the party is able to hold its
nresent
in
majority after the election
1949,
we
perience
a
will
in
Norway
gradually
ex¬
increasing
nationalization. What the dangers
will
be
one
side
though
for
an
of
our
the
economic
life
problem
extremely serious
is
have to
we
for
that
Let
your
country.
Federation
of
The American
Labor
has
been
temptation
from
the
slaught
Our
situation
to
the
east
on
to
and
that
make
an
on¬
has
in any shape
in
the
Communists
Labor Government
and
our
national freedom.
our
of
case
has
big
us.
•
very
Com¬
to be
a
form
or
munists, who
are
Big business,
voters
enemies
same
as
dictature
a
Nazism and Fas-
that
the
Communism's
bloody
hand would
mean
only of
national freedom
our
destruction not
but
also freedom of all individual
life,
we consider being culture
of what
and
happiness of all mankind.
We Norwegians are well known
over
the world just because
all
of
our
This
strong
is
due
national feelings.
to our ships, our
sailors, holding
a
sublime reputa¬
Amundsen,
laving
every
Eriksson,
R
them
of
one
represented
aid
o
free,
flag from the
Artie to the Antartic, and round
three-colored
the
the
our
cross
waist
of
the United
globe.
Here
States of America
in
are
living, and for generations, Nor¬
wegians and of Norwegian descent,
of
whom
we
at
home
are
ex¬
tremely proud, and not only that,
we
are
grateful for their keeping
of their national
feelings and the
connections at home, whilst they
are
rendering to their
new
coun¬
try, and to the nation which has
accepted them, all their services
and
their
wholehearted support
embracement.
Therefore, I
and
consider
myself
entitled
to
con¬
firm my
country's and its oopula-
tion's
Convincing obligation;
against
dictation
in
whatever
shape it might appear, for demo¬
national
and
individual
freedom. This is our belief for
which we will live or die.
When
you
consider
cracy,
Norway's
geograDhical position, holding an
extensive coastline of some
3,600
kilometers fronting the
North. Sea
and the Atlantic
Ocean, keeping
in mind
the importance of
our
mercantile
an
easy
that
navy, it ought
task to convince,
Norway
minded
and
is
has
to
entirely
been
be
anyone
west-
since
ever
the
Vikings started their sailings.
Our mentality is the
same as the
of
one
more
am
good
Gr«??t
Britain,
and
even
probably of the U. S. A.
desirous
of
exoressing
feelings between
tries and t.« brine
a
our
«=neoial
the
coun¬
erect¬
ing from Norway's Federation
Industries
only
ciation
one
United
of
to
the
National
Manufacturers
States of America.
I
of
Asso¬
of
the
in
The
all
our
this
clear
a
Let
Labor
our
Day of
"Use Your Vote!"
Congress
when
:
present
This
progress.
for
80th
nation
it
inadequate
law
failed the
adopted
the
housing law.
lead
to
additional
housing for families in
*
the upper
it cannot
income
during thb past
and
forced
and
work
of
for
keynote
year, workers smarting against a
sense
of
injustice
have
been
because
If
Congress and give it
mandate
fears have been fully
Time and again
to
America.
make certain to
register
and vote this year, we
can elect
a
confirmed.
minimum
security im¬
social
people
1948 be
.
housing,
and
provements, was elected in 1946
by only one-third of the qualified
-
important i position
in
Norway
today, the reason
undoubtedly
being that the general conviction
is that Communism is
.prices,
wages
Congress to adopt the Taft-Hart¬
ley Act over the President's veto.
our
passed
as
high
a new
year,
as
Taft-Hartley
Despite all our warnings, the
National Association of Manufac¬
turers prevailed
upon - the
80th
a
duty
Act,
which
property rights above
human needs, and
which failed
the people on such
vital issues
in
as
your
placed
"Slave Labor Bill" and now that
it has been in operation more
than
just the
discharge
the'
offering
measure
earners i»
tions.
recogni¬
the resistance will be extended to
the utmost of strength and
ability.
Communism does not hold any
wage
All you have
to do
': The 80th Congress, which
the ground
sworn
of
citizens by
registering
voting in the November
elec¬
and
free enterprise
system, has played
right into the hands of the Com¬
of free enterprise.
to
that
American
un¬
business
cut
now
onslaught ■P We branded that
an
is
remitting fight against their phi¬
losophy and in defense of the free
enterprise system. ' ■
>
out from under
threatening is
as
stronglv
remedy lie*
hands—the hands of
millions
up.
ri
injustices
emphasize
the
give
*5
offset
complete
oppressive law
outright
repeal.
that
can
our
never
wl
case
that
its
is
me
I
within
which depends for its
very exist¬
ence on
the maintenance of the
/.'*
•
more
analyst for a stock cratic one, maintains its majority. tion; our
explorers Leif
exchange house. The gentle- Besides the Labor Party, the Corn- Trithjof Nansen, and
wrnfp
wrote
and
as
necessarily at any
time coincide with those of the
Chronicle. They are presented as
Instead
of
according
those of the author
only.]
>• •
; tion to our efforts and
Norway restricted in cism. And because of our
expert
out economic life much more than i,ence of the Nazi regime we know
necessary to assure the welfare of
the population. It would lead too
subse-
buy wasn't ripe.
called
J
in
are
which
iorgot
and
time to
in
fnrant
completely
wrote
we
'
■
came
solution, then the
a
sirable step in the right direction,
As everywhere else in
Europe,
zig-zag.
-v.;--
along
con-
I
der of the month the market
Then
to
up
a
gave
storied.
would do little but
problem
sideration with the distinct deci-
also said that for the remain-
a
this
not
lead to unknown dan- democracy
may
Aug.){»U5?U3d,U5'lS0mS
the
one
buvine of stocks —I
list
man
man
in
but the rest of the world will
.distinctly confirmed that
shortly be faced with difficulties, munism is not considered
having, which
fMotWm, column ol
one
Whyte
rope
swipe at
was
opinion
form
remedy
'
thing
one
and
suiting from the
Taft-Hartlev Act
with piece-meal
defenses. There k
only one certain and
then seize control
forced to wage a ceaseless and
views
geographical
prophet who doesn t
enough to come in out
more-sided
All
is
single
multitudinous
give the Communists credit for—
Thursday.
—Walter
(Continued from page 11)
over
the
a
counteract
they
[The
deveiopme^ 0f all trade all
I
of the rain.
19.
-More next
cannot
the labor
over
of the government.
forever.
Nationalization in Ntrway
something
that
changes everything that I've
before,
movement and
can't
we
porary relief in
as¬
impene¬
an
slovakia—first take
But
these
same
strategy
in
they did in Czecho¬
as
encouragement,
written'
written'
the
use
,
America
I've'
it
to
If
things that don't matter
before
form
America
it.
eight
against any and
every attempt of the Communists
you'll get them
prices
recom¬
you do I probably
like
never
barrier
There
*
Buy
Alleghany
Ludlum
reputation for myself as being Steel, 29-30,
stop at 27. Amerquite wonderful.
Instead I ^ican
Airlines, 7stop isn't
keep writing week after week
about
won't
wait
against
the
mended.
wreck
up
unflinchingly
They
doubt if
at
and
million members of the American
Federation of Labor have stood
trable
.
the typewriter, I could build quite a
and
I
all
invade
to
sums
movement, they have
gained any headway. The
/'.*
*
...
bought, plus the stops to
applied. •
'*
from
away
large
our
saults.
£
Inflation
(Continued from page 13)
24, stop at 21.
j ready done
hand,
Stocks
I
Labor and
injunctions issued
brackets.
will
homes
aginst their will
may
not
for
his
But
provide
the
worker
the
average
family
veteran
low-cost
average
or
and
his family. A re¬
survey
by the American
Federation of Labor shows that we
need 10 million more homes to
by
the courts under the
Taft-Hartley
Act. * What choice did
cent
they have?
They could either continue on the
job under conditions which
they meet the current housing shortresented or defy the courts and
age and a total of 15 million homes
risk being sentenced to
jail. This in the next ten years.
Congress
alternative of "work or
jail" does refused to act to meet these acute
not square with the
principles of
American freedom.
It constitutes
involuntary servitude.
A generation
ago, the abuse of
the writ of injunction
became so
acute that a storm of
public protest
aroused
was
and
Congress in
Norris-LaGuardia
1932 passed the
needs.
'present
is
Federal Government to set
our
•
minimum
ing, which enabled
alone
mit
bargain¬
achieve
conditions
and
raising the
standards of the nation's
work¬
ers. 1
Then, a year ago, the TaftHartley Act was passed
restoring
the evils of
government
now
pending before the
Courts in
Indiana.
attorneys for
the
In
Federal
that
case,
National Labor
Relations Board,
acting in behalf
of the
Government of the United
States, have asked the court
for
a
super-injunction,
forbid
which
would
the
union to
pay
strike
benefits to thousands of
men who
quit their jobs in
Chicago. This
means an
ment
to
attempt by
our
Govern¬
break
a
strike by starv¬
and children of
strikers. Such cruel and
in¬
human tactics are hot
ing out the wives
the
only
per¬
mitted but
required by the Taft-
Hartley Act, according
Government lawyers.
I
any
don't think
further
to
the
I
have to go into
details
about
the
suffering under the TaftHartley Act, after
citing that one
and
how
Flowing
your
hearts
minds, I proclaim here
that workers in
munity in
to the
every1
and
com¬
our land will respond
challenge and gladly con¬
sum
40-hour
$16. Can you
individual, let
keep body and
that kind of in¬
any
can
on
prices? Yet the
Congress at its regular and
spepial sessions ignored all appeals
present
to raise the minimum wage.
American
The
Federation of Labor is
convinced that the minimum wage,
should be lifted immediately to
one
dollar
that
kind
an
But to obtain
hour.
of
progressive, socialjustice legislation, we will have to,
elect
a
which
are
new
Congress,
thinks
that
a
Congress
needs
human
paramount.
Another desperate need of
American people, consistently
the
}&m
nored by the 80th Congress,
im¬
system.
More
is
Social Security
provement of the
million
20
than
Americans are still deprived oi,
the protections of this law. Those
who are covered and who hav
already retired from active wor
because of old age are receiving
the pitiful sum of $21.90 a montn,
on
the average.
And remembe ,
those
years
few
ago
dollars
a
mon^j.,wlii
half what they did
when the Social
curity Act went into effect.
'
What did the 80th Congress
is
example.
at
buy only
abuses and
oppressions which la¬
bor
together
of va
end
80th
A
shocking example of the
sweeping terms of some of these
injunctions is provided in a case
the
paltry
family,
a
come
by in¬
junction.
at
me' how
soul
work¬
hour. That would per¬
an
family breadwinner to bring
a
tell
a
standard of only
wage
week the
ing
With
the cost of living at record heights,
home
to
It
law.
wage
j it is nothing short Of cruel for
putes.
For the next fifteen
years
labor enjoyed freedom
of con¬
tract and free collective
it
the
moment
a
obviously out of date..
40 cents
improving
.
for
ininimum
Act, forbidding the Federal Courts
to issue injunctions in
labor dis¬
great progress in
f
v
;
Consider
about
The
this
Senate
appointed
made
and
up
an
>
with
do
situati•
Committee
advisory
of business, farm.
Government
together
to
emergency
Finance
gr
J
representative.
technical
exp
»
investigate the need^.c
This
own
wages to
strengthening
the
law.
the strikers'
families ifithe court
flatly
Vgroup;~ after careful study
tribute from their
Number 4732
168
Volume
unanimously recommended
that Social Security coverage be
broadened and that its benefits be
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
(1027)
31
and
doubled.
It
was
highly
a
structive and nonpartisan report.
What happened to it? Why, it was
filed
in
away
Congressional
a
pigeon-hole and left to die.
Let me refer briefly to another
vitally necessary improvement in
our
social V, security ■>} programhealth insurance..
medical care are
that
in
cannot
groups
costs
high
families
many
income
The
so
of
today
the
low-
afford
to
call a doctor in when they need
have to postpone
sary operation until they
one, or
the
to
money
for
pay
a
neces¬
can save
it.
I
am
talking about sturdy, hard-work¬
ing people who don't want to ask
charity
for
yet
can't
There
are
millions
there
are
fnillions
whom illness is
cause
their
a
of
savings of
a
them.
of
And
others
to
catastrophe be¬
it wipes out in
Through
.
the
spare
to pay huge medical bills.
money
few weeks
a
lifetime.
Federally-operated
a
The State of Trade and
con¬
American
citizens against the ca¬
lamities of illness.
Legislation to
out such a program has been
introduced time and again in Con¬
gress. It is known as the Wagnercarry
Murray-Dingell Bill.
This
last
Congress didn't even given
a hearing. I have outlined here
only a few major needs of the
American people, a simple pro¬
gram of social justice and social
welfare legislation to safeguard
the physical and economic
health
of our people. It constitutes social
security not only for the Ameri¬
80th
it
can people but for the free enter¬
prise system as well.
For unless
Trojan horse.
From
immediate
an
as
well
as a
standpoint, the peace
of the world depends upon the
power of America to guarantee
peace.
To prevent war, America
must remain strong.
I charge that
the policies instituted by the 80th
Congress are sapping the strength
of
America
•
and
For
As I
,
said
bility rests
and
the
re¬
earlier, the responsiupon you, the workers
voters
of
America.
You
have the precious political power
to vote
the
80th
office and to elect
with
a
new
Congress out of
a new Congress
and more
Except for
'
'•
duty to register and vote in the
November elections,
with
date
third
of
expected
to
to
The
Financial
Chronicler
\... SAN ; FRANCISCO,
\
CALIF.—
John J. Stack has been added to
.
.
the staff of
Harris, Upham & Co.,
232
Montgomery Street. He was
Previously with E. F. Hutton &
Co. 'f - : '
,<r■
'
■
,
flat-rolled products, the
voluntary allocations
consumers much as
yet. Sales officials
voluntary allocations should be made only to groups whose
(Special
to
The
Financial
Chronicler
COCONUT GROVE, FLA.
Mrs.
Linnie
L.<
-
has
Hillbom
Joined the staff of Coffin &
Burr,
Inc.
The
CHICAGO,
Shirley is
Financial
ILL.
now
—
with
vestment Co., 39
^treet. He was
Mullaney, Wells
David
W.
Barclay In¬
South
La
Salle
previously with
& Co.
with
277.12
the
on
corresponding
were
very
over
a
irregular last week with the prices
rather wide
lows for all
deliveries
range.
An
grain
and
of
early dip
buying
on a
broad
Trading in
essential to industrial strength for
defense, but pressure
is constantly put
upon their advisory groups from various
sources,
many in Washington, to add to the program.
If it keeps growing at
its present rate it will
nullify all efforts to assure fair distribution of
are
t
that pressure for steel from automakers will
diminish in months to
It is a
come.
certainty that it will increase, "The Iron Age"
cludes.
having
94% of the steel-making capacity of the industry will be
94.5%
of capacity for the week
beginning
0.7 point, or 0.7%, from last week.
rate was 94.9%.
week's
1,710,500
tons
capacity one
1940, highest
year ago
prewar
Sept. 7, 1948, a decrease of
A month ago the indicated
as
.
ELECTRIC OUTPUT A TRIFLE BELOW ALL-TIME HIGH
PEAK
748,880,000 kwh.,
the
week
o£
excess
ended
the
preceding week, but an increase
higher than the figure reported for
15.9%
6, 1947.
reported
or
Sept.
output
It
was
for
the
also
1,285,135,000
corresponding
kwh.
period
in
two
years ago.
CARLOADINGS
AND
OF
REVENUE
FREIGHT LOWER
FOR WEEK
OUTPUT
LOOK
OFF
IN
LATEST
WEEK—SEPTEMBER
OUT¬
UNCERTAIN
Production of
cars
and trucks in
the United
and
range
ports
indicated that a considerable volume of cotton was being made
eligible for the government loan.
Cotton ginnings reported through
August 15 totaled 544,000 bales, or about two-thirds larger than the
324,000 bales ginned to this date, last season.
AND WHOLESALE TRADE
CHANGE FOR LATEST WEEK
The heat
volume
for
the
SHOWS
NO
SIGNIFICANT
in many parts of the
wave
curtailment
some
of
country Jast week caused
purchasing.
Although total retail
fractionally below the level of the
consumer
week
declined
preceding week, retail dollar volume continued to be slightly above
that of the corresponding period a
year ago, Dun & Bradstreet, Inc.,
reports in its current summary of trade.
Response to
Fajl
tional sales continued to be favorable and
merchandise sold well.
spite
demand
revenue
1.9%.
AUTO
this
prospect for
narrow
shipment.
Sales in the 10 spot markets last
sharply to 143,700 bales, from 92,500 bales in the
previous week, and 89,200 for the same week a year ago.
Inquiries
were fairly numerous but farmers
were not offering
freely and re¬
In
freight for the week ended Aug. 28, 1948,
totaled 891,495 cars, according to the Association of American Rail¬
roads.
This was a decrease of 9,077 cars, or 1% below the
preceding
week and 34,217 cars, or 3.7% below the
corresponding week in 1947.
For the similar week in 1946 it represents a decrease of
16,945 cars,
or
crop
extremely
increased
YEAR AGO
Loadings of
large
an
RETAIL
The amount of electrical
energy distributed by the electric light
and power
industry for the week ended Sept. 4, was 5,469,539,000
kwh., according to the Edison Electric Institute. This was a decrease
of 8,202,000 kwh. below output in the
of
the
prompt and forward
week
ago,
year.
of
situation abroad.
tons
against 1,716,000 tons last week,
1,4?5,200 tons, or 84.3% (if the old
and 1,281,210 tons for the average week in
month
a
influence
uncertainty over the pos¬
crop controls for next season and the disturbed political
Mill demand was somewhat more active for both
sibility of
operating rate is equivalent to 1,703,300
ingots and castings
the
cotton prices moved in
season,
held around the season's lows
during the past week.
Other unsettling influences included
The American Iron and Steel Institute announced on
Mon¬
day of this week the operating rate of steel companies
steel
Under
con¬
' t1
-
of
for
hot weather
most
apparel
lit many
items
promo¬
moderately priced quality
localities
remained
near
the
consumer
the
preceding
week's high level,
<
The
tinued
suits
demand
to
be
were
for
boys' and
substantial.
well
Fall
attended
girls' back-to-school
apparel
con¬
promotions of women's dresses and
after
the
week-end.
Woolen
and
cordu¬
roy suits and dresses in plaids and tweeds sold well and promotions
of velveteen and suede trimmed suits received a favorable
response.
Zip-in lined coats continued to attract much attention.
The demand
for hats, handbags and blouses increased in some
localities.
States and
Canada
declined
Food
volume
dropped
slightly in the week and
was
a
trifle
slightly to 100,573 units from 100,699 (revised) units the
previous week, according to "Ward's Automotive Reports."
Output in the similar period a year ago was 83,444 units and, in
below that of the similar 1947 week.
The demand for most meats
rose
to
the like week of 1941, a model changeover period, production totaled
demand.
32,940 units.
This
week's
consisted
of
72,488 cars and 22,865 trucks
3,415 cafs and 1,805 trucks made in
two
serious
foundry strikes, one at Campbell,
Wyant & Cannon which began 80 days ago and the other at
New
Haven, down since July 22, helped to relieve a tight supply situa¬
tion.
The general production picture was aided by improved Ford
and Chrysler volumes which offset in part the slump at General
be
vegetables at the end of the week, total consumer demand for
items remained almost
unchanged from the level of a week
these
"
ago.
'•
of
fractionally, although it continued
generally low. Lowpriced meat cuts and meat and butter substitutes remained in large
Although there was some increased demand for fresh fruits
and
output
made in the United States and
The
many
large
'
parts
of
demand,
consumer
'
in furniture increased
moderately
th e i country.
Household appliances remained
but there was considerable instalment. buying
.
durables.
The
also sustained at
was
-
interest
consumer
a
consumer
offlast week
September's outlook is still uncertain, said Ward's. Full pro¬
duction on all fronts can only come as low stocks of essential items
in
in
of
demand for building materials
high level.
Retail volume for the country in the
period ended
Motors last week.
on
Wednesday
ago.
are
progressively built-up.*
in the
week
of $5,000 or
remained
more
.
the.
corresponding 1947 week.
Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's index for the week
ended Aug. 28, 1948,
decreased by 8% from the like period of last
year.
with an increase of 12% (revised) in the
four weeks ended
year
This compared
For the
Aug. 28, 1948, sales increased by 8%, and for the
preceding week.
to date by 7%.
Retail trade in New York the past week reacted
favorably to
at
79,
Six
unchanged from last week, but above 49 reported a year ago.
of the failures in this category involved liabilities above $100,000 each.
Retail failures accounted for almost one-half the week's total,
being two and one-half times as many as a year ago.
Mortality con¬
tinued low in other industry and trade groups.
,v
;
:
<
r
Both the Middle Atlantic and Pacific States accounting for over
total.
a year
While wholesale order volume was almost
unchanged in many
during the week* total dollar volume remained slightly
above that of
SHOW MODEST DECLINE
ending Sept. 2, from 96 in the preceding week, Dun & Bradstreet, Inc.,
reports.
The number of concerns failing was considerably above the
60 which occurred in the comparable week of 1947 and almost seven
times the 14 in 1946.
Total casualties, however, were less than onehalf as numerous as the 1939 total of 209 for the corresponding week
one-half the week's
was estimated to be from 2 to 6% above that of
localities
Commercial and industrial failures dipped to 94
Failures involving liabilities
Chronicle)
seasonal
new
and
entering the government loan
as rapidly as
storage space becomes available.
Corn rallied sharply
toward the close of the week as the result of
reports of damage to
the crop in Iowa and Nebraska.
Cash corn at Chicago finished
with a net gain of 16 cents
per bushel for the week.
.
to
earlier
Strength in cash wheat reflected government
scale and light offerings in spot
markets.
New crop wheat was said to be
of that prewar year.
With Barclay Inv. Co.
(Special
TO
grain futures expanded sharply last week.
Sales of all grain futures
on the
Chicago Board of Trade reached a total of 268,739,000 bushels
for the week ended last Friday.
This was equivalent to a daily
average of about 45,000,000 bushels,
as, compared with 30,000,000<
the previous week, and 43,000,000 a
year ago.
tight steel products, states the magazine.
Responding to price concessions, demand for Spring patent
Steel for military needs is
apparently not being ordered at any¬ and gluten flours improved considerably with mill bookings
report¬
thing like the rate set up recently in Washington. A canvass of sev¬ ed the
largest for many months.
Livestock prices were irregular
eral large steel
companies this week disclosed only a light booking of with choice steers in the
Chicago market up to a new record high
military steel orders. Over and above normal steel
shortages a post- of $41.40 per hundredweight. Hog prices fluctuated unevenly and
Labor Day increase in steel demand has
closed unchanged from a week ago.
developed. Steel fabricators
Lamb prices trended steadily
who shut down or curtailed
operations due to vacations now find downward during the week. Cash lard was
in fair demand with
their own backlogs heavier than a few
months ago. Over the next prices holding steady but liquidation in lard
futures sent all deliv¬
month or so cry for steel will be at a
higher pitch with no chance eries to new low levels for the season.
products
BUSINESS FAILURES
With Coffin & Burr, Inc.
RESPONDS
soybeans,
except September and December wheat, was followed
by a sub¬
stantial recovery movement in the latter
part of the period.
tankers,
cars,
pinched most
Termination
(Special
INDEX
GRAINS
ago.
Grain markets
steel plate production
freight
week
a
year
fluctuating nervously
Canada.
Harris, Upham & Co. Adds
274.65
a
a
some
program hasn't
feel that
progressive
I hope
you will go out from
here inspired and determined not
tcrlet anything interfere with your
a
PRICE
LEADING
Dun & Bradstreet
daily wholesale commodity price index
silghtly higher the past week, largely due to advances in
leading grains.
The index closed at 279.46 on Aug.
31, compared
comes
instance, almost
COMMODITY
The
equipment and military
needs. This is material over which steel sales
departments no longer
have any control.
Plate is the tightest product on the
program with
structural shapes down for more than
20% of output, states this trade
paper.
outlook.
You must use that power
for your own sake and for the
future welfare of our country.
;
WHOLESALE
RECOVERY IN
toying with
The hitch
Aug. 31, a drop of
0.6% from $6.95 last week.
It represented the lowest index
fig¬
since May 4 when it stood at
$6.88.
Compared with last year's
$6.71, the current level now shows a rise of only 2.8%.
ure
trended
during the>; fourth quarter is earmarked for
barges, atomic energy, oil field tanks and
American
the
people. Those policies must be
versed,
continued
in the two preceding
weeks,
the wholesale food price
index, compiled b,y Dun & Bradstreet, Inc.,
moderately last week to stand at $6.90 as of
fell
when this voluntary allocations
pro¬
by product, according to "The Iron Age,"
national
metalworking weekly.
This
long-range
LATEST WEEK
Following sharp declines recorded
gram is considered product
of
coun¬
was a
Anyone who
join with labor in
reactionary elements in our
try-have been in power.
moderately
thinks that the program of steel
industry-government cooperation to direct steel
to certain consumers is harmless be¬
cause it amounts to less
than 10% of current
output is
Social Improvements Needed
seeing the need for such social
improvements. But since the 80th
Congress was elected in 1946, the
There
near
was
LABOR DAY HOLIDAY
Progressive and intelligent
men
remained
large demand for building materials and
hardware supplies.
STEEL PRODUCTION OFF
FRACTIONALLY DUE TO
may well begin to won¬
whether the free enterprise
business
interest in Fall merchandise
year ago.
system is the best for them.
v
consumer
the level of the
preceding week. Total dollar volume
above that of the comparable week a
tion, they
der
ably the New England States.
WHOLESALE FOOD PRICE INDEX
RECEDES FURTHER IN
^
5)
large. Con¬
sumers continued to seek
moderate priced goods of
high quality.
While the buyer demand for Fall
merchandise increased a trifle
during the week, total wholesale order volume
continued to be
modern civiliza¬
our
page
number
while
the American people obtain these
basic protections against the haz¬
ards of life in
(Continued from
'
the level of the
previous week; but remained
fractionally above the
corresponding level of 1947. Promotional sales increased in
insurance program, it is possible to
protect these people and all other
Industry
*
:
in each of these
areas, while several other regions had
increases, not¬
.
Declines from the previous week prevailed
cooler weather
by recording
| ahead
of last
According
following the extreme heat of the week preceding
an
advance in department store sales of about 7%
year.
to
the
-
.
.
'
Federal
-
Reserve
.
Board's
index, department
weekly period to Aug. 28, 1948,
period last year.
This compared with
increase of 5% in the preceding week.
For the four weeks ended
store sales in New York City for the
decrea^d 16% below the
an
same
Aug. 28, 1948, sales increased by 2% and for the
year to
date by 5%.
32
(1028)
THE
COMMERCIAL
&
Patrolling Partneis Stymied
A
(Continued from page 3)
•of the duties owed
and the
the duties and
powers
the NASD with respect
The
thereto.
»
persistent efforts to force
a
activities.
disclosure of confi¬
through these columns
fixed
tinct
been
most
speech
the peril which
labor
hopes
are
to
secure
big
a
both
management.
It
has
labor's
leadership
to
we
entire
ca
econ¬
if
any.
held
were
which
Iboth bodies
were
met with
-were
co-sponsors
Kaiser-Frazer and
confer?
Is it
a
that
to
field
fact that
Otis
of the idea? All these inquiries
these men?
were
of Otis &
case
From
the
stituted by the NASD
in
prosecutors both bodies
as
degree of justice
For
a
>
in
ing
As
particularly in their efforts to elicit
confidential communications
given by a client to his attor¬
neys. With this further attempt to invade
we are
watching this case closely because in it we
possibility of delimitation of SEC and NASD
powers
we have
long advocated. ' ' * :
the
see
which
I
and
the
I
dresses,
it
clear
in
his
will
seek
the
terests of the people as
Under
York
Governor
has
ard
Year
round
so
improved
state's
Stock Placed
on
par value common stock of
Super
has
dian
its
Guar¬
Securities
Corp.
Price
the public is $5
per share.
to
Y. — Stone &
Securities
Corporation
that Robert T. McGurk
announce
joined the firm in charge of
new
central
office in
New
York
Syracuse, which
Proceeds of the
offering will be
^ised by the
company to provide
.additional
working
capital
for
expansion
York
State
is being
opened today.
?
sales
of
of
the
com¬
pany's
products;
expansion
of
production of the electronics and
jradio television divisions and to
provide additional capital for the
sale and
marketing of
new
ucts
prod¬
which, on test, have received
public acceptance, the prospectus
states.
The
company was organized in
to
manufacture
ignition
1938
-transformers
panded
its
tion.
and
It
and
has
products
since
and
is
well
and
known
upper
New
State, having had his own
securities firm, R. T.
investment
McGurk & Co., in
Syracuse for the
past 11 years. The
opening of the
Syracuse office will make avail¬
able in this
territory the invest¬
ment services of Stone
& Webster
Securities Corporation
through its
principal offices in New
York,
Boston, Chicago and Philadelphia.
The main office of the
firm is at
90 Broad
Street, New York City.
produc¬
manufactures gas
burner
ignition
trans¬
transfers
industry,
vision
central
for
the
lighting
transformers
neon
industry, radio
for
and tele¬
transformers for the radio
industry,
coils
and
chokes
apprentice training
has
been
expanded
gram
of
industrial
has
been
With Stern, Frank &
Meyer
(8pecial
LOS
D.
to
The
Financial
Chronicle)
ANGELES, CALIF.—Fred
Blake
Frank
is
now
with
&
t
Stern,
Meyer, 325 West Eighth
Street, members of the New York
Angeles Stock Exchanges.
and Los
for
and
labor
to
the
aids,
formers
and
formers
on
antennae
and test
The
iaries
step-down
other
trans¬
type
trans¬
special order, loading
units,
oscillator
units
had
and
(Special
LOS
are
its
consolidated
subsid¬
net
sales
for the year ended June
30,
to
A.
and
Financial
Chronicle)
CALIF.
—
Morrison, Robert M.
Harry F. Wagner, Jr.,
with
now
Company,
vard.'-
The
ANGELES,
Lester
Vacca
equipment.
company
C. E. Abbett Adds Three
C.
3277
E.
Abbett
Wilshire
&
present
the
war
National
under
of
$2,399,840.
Consolidated back¬
log of orders at July 1, for deliv¬
ery
during the first four months
-of the fiscal year
ending June 30,
1949, stood at $1,264,200.
the
Administration.
If you do, I believe
that you will
conclude
that
Governor
should
be
Dewey
elected
to
the
White
House.
Governor Dewey has
clear, in his acceptance
made
it
message,
that he will
carry out the Repub¬
lican
platform in the
spirit in
which it was written
forward
.
.
as
chairmanship
through the
sistence of millions of the
younger
and more liberal
members of
the
Republican party.
In
With Ellis, Holyoke
(Special
to
The
Financial
Chronicle)
LINCOLN, NEB. — Charles K.
Clem is with
Ellis, Holyoke & Co.,
Stuart Building.
addition
of the
manner.
Governor Dewey,
exercise
prevent
to
of
to
White Collar
the
preservation
white-collar
will
be
workers,
given
to
teachers,
clerks, firemen, policemen, book¬
keepers, pensioners and others
have
through
the
should
pointed
out
be
of the government.
At least we are now
building
houses at a higher rate than ever
before in our history. But I will
be
the
first
houses
to
that
say
these
are
being constructed at
price beyond the reach of the
a
average purchaser and the rate
of construction is still too slow.
action in the
lies is
to
forthright
the
ability to
as
bubble
a
I
The
will
the
advance in the well-being of
all its
people, avoiding booms antf
depressions. These next years will
be decisive in the
grave question
of whether we find the
way to
strengthen and develop the United
without the tragedy ot
Nations
a
third world
Presidency to
boom
and
also
bust
Detroit
The
your
major
of
the
Republicans are
pulling
herring across his trail. Let
assure
are
him
that
the
not
of
that
red
me
Republicans
President
P
ha?
critical
Republican
with.
when
Congress
he
wor.i
had a
to
Congress
failed
work
to
.
It is
high time to elect
who
can
as
Presi¬
a
successfully
work
an
American
His complaints remind one of tn
out-of-step marcher who protest
that he is not out of step; all tn
rest
of
the
marchers
are
out oi
step with him.
A
pulling hed-herring across
Republican
Administration
trail—they are driving the under the leadership of Governo
herring out of the official Dewey and Governor Warre ,
waters of the
Potomac.
This is
long overdue. Too
many
red
herring have been in Wash¬
ington for too
long a time. The
red
He
with others
complaint
yesterday is
in
reasons
the
Administration
these
Democratic
of
Red-Herring Charge
third
visitor
silhouetted
post-war
He failed when he had &
with.
dent
The
war.
The President's address here
years.
sickening
ahead
America
whether
can
penalized.
economic
this
on
immediately
years
determine
in
it, will
testimony
a
forward
move
this
see
and
Dewey's desire anct
vital problem.
why
essential
new
tribute
a
Governor
failed
sudden deflation.
his
rights of union
labor, deep
consideration
avoid
red
Workers
it
combated.
Hoarding should be
Profiteering should be
a
of
in¬
and
years
compounded
at the time
the President and his
party were
in complete control of all
branches
carefully.
Purchasing for Euro¬
countries should be admin¬
istered in a
sound
should
herring
nets
help
man
instead
of
the
com-
aining against the
fishermen.
ioi?e spok®
*?Tor
yesterday
constituted
a
as-
though
separate, dis¬
a
and
must
ing situation occurred
pean
looking document devel¬
oped under the
Senator Lodge
Protection
V':
The credit and
financial regula¬
are now on the
stat¬
utes should be
used
wisely and
tions which
management in the
Boule¬
1948,
economic
freedom,
basically caused by the
world-wide shortage of
goods.
rec¬
Dewey. I urge you to
carefully what has hap¬
.
hearing
individual
problems
addresses
of Governor
since
govern¬
the extreme powers of
cen¬
control requested
But this does not
mean that we
should then ignore
the inflation¬
ary problems that do
come with
excellent
to examine the
listen
We
.
I do look forward to
our
inseparable. The choice is obvi¬
have
live.
that the immediate
post-war con¬
fusion and bungling in the hous¬
un¬
to
gave
ous.
;
consider
we
are
in
settling industrial dis¬
Both have the
respect and
confidence of employes and em¬
and
clearly
to
to provide decent homes for 160000 members of low-income fami¬
if
Centralized control
destroys
initiative. High production
and
individual economic freedom
putes.
ords
be
find
themselves
through this housing jam.
But
by the
trol.
Dewey administra¬
Board
you
should
the vet¬
progress
under this kind of
economic con¬
records
urge
this
of
cannot
war.
agree¬
and
war
for
back, many
go
of
by the
President. No economy in all his¬
tory has shown steady
relations
New
York's
Independent
Mediation Board and State Labor
I
the
war
Republican Ad¬
ministration to close the gap of
this housing
shortage. New York
State's $435,000,000 low-rent-hous¬
ing and slum-clearance program
ment
tion,
ployers.
international
own
after
this
families
been
a
our
problem in
unthinkable that
million
a
suffering
we
worth
sorry
tralized
and
increased.
Relations
billion
economy, the
health and in
much
should
be
said:
Neither political
party is blame¬
less in the picture. Neither
is en¬
tirely responsible. The conditions
with which we are now
;
derstood: We would not solve
established
the
$18
a
This
people
that
the
our
in
is
place
break
living of the entire world.
problems
pro¬
at
Cornell
and both the mini¬
mum pay and the
average pay of
state employees has been
greatly
Under
their
tragedy that this essen¬
rebuilding of other nations
But
University,
.
decent
destructive and aggressive tactics
of the Soviet Union
of Russia.
ex¬
multiplied, as has ^ on the job
training. The nation's first school
pened
now
oil
the sign
McGurk
ex¬
formers for the
heating industry,
fluorescent ballasts and cold ca¬
thode
Mr.
through
The
ers.
SYRACUSE, N.
Webster
Electric Products Corp. was. of¬
fered Sept. 8 by The First
and
minimum
wage
Market Stone & Webster
59,700 shares of $2
of
ments
laws have been extended to
protect 500,000 additional work¬
of
of
price
a
of
erans
their peoples has been made
difficult by the unsound nature
of
Board has been
block
millions
is
by
Housing Jam
It
than
more
and
panded.
A
than
It is
>.
tial
benefits.
America.
further
clothing and materials for
others since V-J
Day and yet con¬
been
has
The
tinue to enjoy the
highest stand¬
employment has been encouraged.
The
Workmen's
Compensation
The
to
our
furnish
the decision
labor,
balance of
Housing is
American family
an
This
believe that
party
will
leadership
housing.
part of the price for America's
to provide for
program
increased
the
of
Republican party
ap¬
cooperation, not for class
improvements
food,
-
New
unemployment
broadly liberalized
fair
an
more
the first law
against discrimination in employ¬
insurance
Fer¬
Only a great, free productive
nation, humanitarian in its im¬
pulses,
could
possibly
provide
adopted
The state's
and
war,
sake
advantage.
of the people next
November. We
will
make progress
in the in¬
creased real
wages of
i
should be proud to
pay.
in¬
whole.
a
Dewey,
the
abroad.
ad¬
best
Homer
;
prS
white-collar work,
ani
Let us
beware of
and hatred. I
such
American housewife pays a
high price for food she is paying
a
as
and
"j
*
assistance
he has in his record in
New York, that he will be fair to
labor
to
capably headed by
junior
Senator
from
Every time
?
or
in
campaign proceeds, I
that Governor Dewey
make
;
orfiani7Pr?
of
farm.
peal for
war
urgent necessity of sending quan¬
tities of American
goods abroad
to help the peoples of other na¬
tions to regain their feet.
confident that
am
Super Elec. Products j R. T. McGurk Joins
■
after
will
unfair
oppose
grain
investigating
.
of
business,
We of the
Clearly the primary causes of
high prices are; the world-wide
shortages of goods in the wake of
war,
coupled with the unsound
policies
of
the
Administration
provisions,
this
ment.
We shall be
in
ahead,
.years
to
anticipate
employed by
privacy,
and
that
you
,
opportunity
fleeting political
so*
able
-
guson.
I
*
the majority of the members
Congress will take this course.
against Otis & Com¬
entirely out of sympathy.
to
in
brought
Michigan, the Hon.
a
••1
in America.
rotten abuse?
pany. We do, however, condemn the methods
the joint prosecutors
the
the
Ee"
our AmerU
the politician
who would
sow the
seeds of
disunity in the minds of
American youth for
the
sure-shot
a
were
before
Hi.
wi h
does the
ranks
Republican
facts
committee
dynamic people's capitalism
a
will
case
light
I have
first day
the
on
the
the
on
official
own
gambling
were
These
to seek a
fair balance between
capital and
labor, and to insist on maintain¬
|| just.
We express no
opinion in the
from
of his
commodities
as
fthat
land of
sional and
inside basis.
it
pledge
anti-labor
starts grinding,
it takes considerable
means, plus fortitude, to get out of
the toils even when a
respondent's cause is absolutely
:
family
Dynamic People's Capitalism
I
proceeding jointly, what
an
appeal?
Doesn't the whole system
appear to be
When this upper and nether
millstone
study.
members
and
its repeal; but that
required
some
believed
months
are
that
the
dealing with a
shifting,
dy¬
amendments.
be expected in such
can
clear
continue
disciplinary proceedings in-
in
passage, that taken as
I favored this
law; that
would oppose
I
appeal lies to the SEC. Where
an
it
its
whole
Were the punitive
proceed¬
Company?
decision
is
changing,
change and
made
of
ings taken against Otis & Company the result of joint
planned action? Will the SEC and the NASD, who seek the
disclosure of confidential
communications, publicize the
-memoranda in their respective files
concerning their actions
in the
labor
of
tion,
Did representatives of both SEC and the NASD
Who
legislation
namic problem in our
economy.
Laws concerning labor and man¬
agement require constant atten¬
underwriting agreement between
Company, we now ask similar
&
All
rapidly
significant silence.
a
In connection with the
questions.
rise
gave
"philosophy." Who participated in these?
studied.
believes,
is
labor, of small
thorough, more fair, more con¬
the nature of its scientious in their
bargaining and
inter-related activities with the NASD in the latter's
factors causing high prices, it was
negotiations without strikes.
adop¬
thereafter proved and confessed
tion cf the "5*0
The law should be
spread yard stick." We asked what conconstantly
Terences,
society
variance
as
campaign complaint
yesterday was to seek to
high prices.
This tactic was sharply exposed
last year when, after he had listed
gambling in grain as one of the
persistently challenged the SEC to disclose
our
m
Many American
families have
my family has,
members who
are
;v\:/ f-i
made
more
in
was
L il'Th.
the
this lack of bal¬
our
class
lea still
for
shift the blame for
required
be
and
The second
members and with
own
sake
own
presents to
omic system.
has done is to require a few
labor officials to be less arbitrary
with their
for their
ance
realizing that what the
law
-
It will be remembered that
/
with
But every day additional thou¬
sands of members of organized
of the SEC and
tionship strikes us as asinine, particularly when prac¬
ticed by regulatory bodies which
periodically indulge in
camera
Reply to the President
political dividend by a cheap, po¬
litical complaint.
:
;
dential communications in the
attorney and client rela¬
in
Thursday, September
9, 1943
incomes, who have
seriously pinched by
the postwar inflation. Their plight
will
receive
prompt
attention,
he
cause
i
.
CHRONICLE
(Continued from page 6)
by underwriters to the investing public,
of
extent
FINANCIAL
carried
sound
on
in
keeping with
principles of
philosophy, carried
a
on
with a hu
manitarian emphasis in
est
best
of
American
serve
all
the
the hig1
traditions,
people of
land of the free and home
brave.
the
truly libeia
of
wi
Number 4732
Volume 168
THE
COMMERCIAL
FINANCIAL
&
CHRONICLE
(1029)
33
Indications of Current Business Activity § ||
Jhe following statistical tabulations
shown
first column
in
are
cover
production and other figures for the latest week
either for the week
or
month ended
on
Latest
Previous
Month
Week
american IRON AND STEEL INSTITUTE;
Indicated steel operations (percent of capacity).
Week
that date,
Ago
Year
of
94.5
—Sept. 12
95.2
1,703,300
94.9
1,716,000.
84.3
Month
Latest
<M
gas
Mixed
Yea*
Month
Aro
'
!
2,012,096
2,245,092
1,945,809*
therms).
1,804,368
2,007,558
1,722,007
147,343
167,263
146,037
60,385
70,271
77,605
therms)
((M
sales
sales
gas
:
Previous
Month
gas
sales
Manufactured gas
1,475,200
1,710,500
For
—
(dates
of that date)
are as
July:
Total
Natural
Equivalent to—
gteel ingots and castings produced (net tons)
month available
or
of quotations,
cases
AMERICAN GAS ASSOCIATION
Ago
'
—Sept. 12
in
or,
(M therms)
therms)
<M
'•
american PETROLEUM INSTITUTE:
AMERICAN
Crude oil output—dally average (bbls. of 42 gallons each)
Crude runs to stills—daily average (bbls.)__
Gasoline output (bbls.)
Kerosine output (bbls.)
Gas oil and distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)..:
fitocks at refineries, at bulk terminals, in transit
unfinished gasoline
(bbls.) at
Finished and
Kerosine
(bbls.)
Aug. 28
........
Gas oil and
5,521,300
5,682,000
17,722,000
5,591,000
5,718,000
5,255,000
17,742,000
17,646,000
17,043,000
Aug. 28
2,165,000
"1,988,000
2,213,000
1,920,000
Domestic
Natural
::
5,156,850
5,455,450
Aug. 28
7,491,000
7,338,000
6,823,000
'.'8,818,000
8,642,000
9,080,000
.Aug. 28
at
95,504,000
95,132,000
99,116,000
86,300,000
freight loaded
V;
Total U. S.
atlZZI
(bbls.)
■
ENGINEERING
20,736,000
54,075,000
65,713,000
56,283,000
Increase
900,572
894,381
925,712
696,421
700,970
701,060
East
2
$146,801,000
2
65,466,000
$95,191,000
39,974,000
2
81,335,000
55,217,000
2
74,557,000
6,778,000
Sept.
2 U;
ftnns)
$122,766,000
65,811,000
90,272,000
"Aug
32,494,000
65,684,000
22,099,000
3,610,000
12,315,000
28
12,470,000
1,231,000
*146,800
12,015,000
1,204,000
132,100
1,170,000
135,000
'
(in
000
kwh.)_
.Sept. 4
INC.
INDUSTRIAL)—DUN
..-.
&
............
90,427,295
64,528,798
42,904,263
37,877,828
August:
5,477,741
5,469,539
4,720,659
5,319,409
$345,405,349
35,561,273
309,844,076
$381,863,119
44,196,207
337,666,912
$282,246,130
$713,719,000
$413,494,000
357,495,000
222,772,000
356,224,000
281,338,000
v 74,886,000
190,722,000
624,765
714,249
450,969
'
States
2
116
96
421,343
365,452
3.75833c
3.75833c
—
EN¬
3.18925c
.Aug. 31
$44.61
$44.52
$43.94
$37.08
.Aug. 31
$43.16
$43.16
$43.16
$37.83
$560,292,000
229,515,000
330,777,000
—-—^
construction
and
Municipal
253,217,000
77,560,000
EXPORTS
North
and
Central
23.150c
23.425c
23.425c
22.175c
21.425c
.Sept.
103.000c
103.000c
103.000c
80.000c
ZLZ.-Z1"^""^"""^Sent'
19.500c
19.500c
19.500c
15.000c
Sept'
Zsept.
19.300c
19.300c
19.300c
14.800c
15.000c
15.000c
15.000c
10.500c
at
~
•
Lead
(New York)" at-.......;
Louis) at
Zinc (East St. Louis) at
(St.
_
1
(net tons)
PRICE
INDEX
FAMILIES
/
.v-
1
.
■'v
.
LARGE
July
CITIES
15:
173.7
Meats
214.1
171.0
171.2
155.0
261.8
255.1
220.2.
Dairy
'
209.0
products
Eggs '
—
204.3
—
Fruits
and
111.62
117.00
Rent
Sept.
116.22
116.22
116.22 I
121.67
Fuel, electricity and ice
_Sept.
114.46
114.46
114.27
120.02
.Sept.
110.70
110.34
111.07
116.80
Sept.
105.17
105.00
105.69
109.79
Clothing*'
107.44
111.81
111.81V
112.19
115.43
115.43
120.22
Govt^ Bonds—.__yr.
.
Aaa
7
7
2.93
Sept.
71
3.09
2.84
Sept.
3.13
Baa.
...Sept.
7
Railroad Group
Public Utilities
Group
Industrials
3.09
7
Sept.
H
r-———
'
c2.45-.V-.
2.45
—Sept.
_~_T—
a-—inzzrrzr"^
7
.Sept.
_
>
and
-
2.24
V
COMMODITY
"
v
3.15
3.11
3.45
3.41
3.32
3.44
3.29
3.05
2.74
2.88
2.64
429.2
426.$
3.31
3.07'
Sept.
7
2.88
,3.07
2.88
7
422.1
424.2
'
3.18
/
3.04
1
Cotton
Grains
-
■•■■y
..
-y-
PRICES
yVy
•
■
-v-v-
;
242.7
245.6
245.9
222.2
209.4
221.6
267.3
269.5
270.9
261.0
292.6
305.4
303.2
219.7
222.0
277.9
4
294.2
i.£ 222.9
sept.
Juels..._._—
Sept.
jjpscellaneous commodities..-.....-.-.
V-_^---t%r._w—--y-^-Sept.
Textiles—...
■
Sept.
.Metals—y,
:
:. sept.
Building materials...................
__
...*Sept.Chemicals and drugs
Sept.
Fertilizer materials
Sept.
Fertilizers
Sept.
.
„
.
'
........
machinery
Sept.
groups combined
Sept.
-
'
i-
paperboard association:
Orders.received
Production
Percentage
""ns)
(tons)__
' V'
•
of
289.3
288.1
256.1
4
4
233.8
233.8
233.8
191.6
Platinum,
172.0
164.2
4
197.4
195.0
198.6
210.9
*aint
drug
Reporter
187.4
187.4
184.4
159.1
-4'
235.3
233.3
233.4
231.3
155.3
155.3
156.6
149.7
4
140.8
140.9
138.4
129.1
4
147.5
4
144.5
144.5
143.1
127.1
225.3
226.4
227.4
•\
f1 V^^
Y';.i, 't'-
x> •<. '
,
wholesale prices—u.
s.
dept.
of
Sept.
*■"' V'. 1'
v.
4
145.4
147.5
II.
:
.....
,
and metal products
materials '
■■
■
and
MHed
gousefurnishfngs
Miscellaneous
—
1
,*,
-
-—
——
commodities other than
farm
144.6
144.3
144.6
v.
V
Hevised figure,
33.000®
35.500c
33.500®
Nominal
Nominal
Nominal
$89,154
$55.61#
1
168.3
'169.2 \i
191.0,
187.8
189.5
187.7
189.6
189.6
^
'
189.9
147.7
137.4
'
171.7
V
Aug. 28
Aug. 28
ratio
Aug. 28
after charges
(Interstate
Net
available
Income
Income
fixed
after
for
149.8
179.3
117.6
Depreciation
(way &
146.8
146.8
146.0
131.9
Amortization
of
118.4
118.7
118.6
115.9
Federal
"v Other
on
Aug. 28
•
164.3
163.8
'
% W M'
156.9
$838,105,949
$705,996,51®
626,079,812
'74.70
555,703,11a-
$72,690,939
$74,978,26*
105,256,808
76,700,000
124,979,063
61,197,820
94,000,000
34,800,00#
$90,178,066
15,331,899
$53,104,074
$76,818,501
16,065,108
15,220,24#
69,169,182
92,038,741
3,663,872
65,505,310
89,194,85#
30,160,439
52,588,886
78.71
income
147.9
152.1
137.3
charges—
income
3,210,407
—
structures
&
2,843,883
3,244,194
3,157,772
—
63,714,515
26,916,245
49,431,114-
—
31,090,411
30,773,529
29.437,17#
...
——
equip.)
1,362,078
1,357,840
20,205,989
24,862,68®
26,700,522
projects
taxes
1,366,669
28,136,690
defense
2,956,177
1,204,088
21,454,5731
12,053,517
2.95
1.85
2.44
appropriations:
stock
common
On
148.9
fixed
income
preferred stock
;
--
9,935.467
149.9
162.9
ca
253:1.*
153.2
167.9
163.5
164.9
183.4
from
deductions
Net
Dividend
164.2;
$841,993,545
626,159,046
Vt
74.37
CLASS I
charges
133.1
V
10.500®
Not aval*
66,924,922
S.
Income—.——___
deductions
167.3
159.3
12.462c
35.913c
Commission)
income
Miscellaneous
'
OF U.
income
Total
200.7
159.0
20.500®
101,260,244
(est.)
Commerce
131.7
;
20.500c
May):
railway operating
Other
.
of
202.0
182.8
15.000®
4,249,721
cent——,..——
income
132.2
181.7
$1.80#
16.000c
'
'
per
—
202.3
,
$1.77®
r;
$96,398,698
:
railway operating Income before charges
140.1
114.2
1
$1.75#
<
15.000c
____.
:
(Month
183.3
148.3
Z
20.500c
$1,800
(ASSOC.
ROADS
I
Net
172.1
136.8
171.5
•>
$1,775
40.000c
expenses
C
S
-
137.3
,
V'C C;
.vV
148.0
,
16.000c
/
140.0
{V 181.7
T-
: v
:
105,509,965
CLASS
—
Taxes
154.0
192.2
-
■
$1,750
$1,900
$1,950
RRS.)—Month of July:
SELECTED INCOME ITEMS
*'■
189.3
Aug. 28
products and foods
35.940®
35.000c
-
$2,000
operating
Operating
425,412
;
v
168.4
Aug- 28
products
38.170c
35.000c
—
revenues—
99
358,955
EARNINGS
On
ManiifTlai1Ufactured articles
AU^.
d Products
All pa"}modHies other than farm
$35.00#
$84.00#
35.500c
.
pound)
operating
176,588
92
(per
Total
167,268
93 %
(per
OF AMER.
V
-
78.900®
$35,000
$75,423
c
38.170c
Laredo
Spot
per ounce
pound)
pound)—_—
(per
Total
groups—■
materials
102.400c
$35,000
$75,000
—
RYS.
Aug- ^
products
SO.OOOe
39.97JM
$93,000
Chinese,
•♦Nickel,
.
.Aug. 28
:
103.000c
102.400c
plus, ingot (per pound)—_
Magnesium, ingot (per pound)—__r
Zinc (per pound)—East St. Louis
•V'-V
178,892
,
362,761
344,469
.-Aug. 28
AuS- 28
goods
commodities
Haw
V.
Q3
.—..Aug. 28
lighting materials
"Uilding
Special
183,835
185,537
Aug. 28
Aug. 28
-Au&-
Textile products
and
.
$4.02512
103.000c
Aluminum, 99%
135.5
176,753
175,762
)v ■ V;i
H
,;
and leather
products
uel
166.039
Aug. 28
commodities
Farm products
Foodgiiil:
3
labor—1926=100:
Ml
65.655#
:;t
45.000d
$4.02750
210.2
169.3
169.0
index—1926-30
'
15.000®
74.625c
73.835C
(Check)-—
pound),
Ratio
of
income
•Revised
of
tons
or
f
,.
**F.O.B.
fixed
charges—
tBased on the producers' quotation.
tBasedI on the averaga
and platers' quotations.
§Based on platers' quotations.
UDomestie,
but less than carload lot, packed in cases, I. 0. b. New York./
figure,
the producers'
five
to
more
Port
Colborne,
•
14,800#
.
44.667d
Refined,
§Cadmium
4
(per
tCadmium
——..-—Aug. 28
Aug. 28
price
17.800c
17.608c
i'
21.326®
$4.02750
Net
and
19.500c
; I-
21.225#
"
21.668c
19.3000
pound), in cases,
(per
tCadmium
4
,-
average—100
21.375c.
•
,
(per pound)/bulk, Laredo
Antimony
;
....
v
23.085c
!
Exchange
Antimony,
283.4
"nZ, .ny-Z-ytZ.AHfr28;
...
265,000
23.425c
(per pound)—
New: York ■Straits_l__'________—
4
Aug. 28
activity.
unfilled orders (tons) at
0il»
^"
526,000
QUOTATIONS)— V
New York (per ounce)
London (pence per ounce)
Antimony
RR.
national
139.3
212,000
,
J.
M.
&
New York, Chinese or 99%
Gold (per ounce U. S. price)
i
Quicksilver (per flask of 76 pounds)
HAntimony (per pound) (E. & M. J.)________
187.6
4
-vv-y.y'
...........
(E.
St., Louis
and Sterling Exchange—
Silver,
226.1
4
4:
Sept.. 4
-
•
147.5
Tin
sept.
■.:■■■: Sept.
v
146.0,
184.3
:•
July:
York
New
•'
V;
Sept.
Livestock
All
:.
of
Silver
commod¬
v
Fats and. oils
Farm products
Farm
r"
Month
—
(in pounds)—
Sterling
Poods
91.1
.
'
2.81
7
fertilizer association—wholesale
ity index BY
groups—1935-39=100:
'
(DEPT.
Average for month of August: 1 vi*v
Copper (per > pound)—•;>
Electrolytic,
domestic refineryi_i._l
Electrolytic,
export refinery
Lead (per pound)—
-r;"v^
2.57
2.65
7
national
110.0
119.0
170.1
■
195.9
COMMERCE)
METAL
2.80
2.94
—.—.—.Sept.
INDEX—
184.7
'
194.8
174.2
Miscellaneous
Silver,
MOODY'S
179.7"
v c
150.8
ice
and
MAGNESIUM WROUGHT PRODUCTS
■
2.84
Sept.
■
2.45
3.08
:c
2.84
:2.93 :':4 c
Isept.
Group
117.0
132.6
94.2-..- "
94.4
electricity
fuels
Other
134.8
Housefurnishings
Shipments
..
Average corporate...
# .V"
117.3
118.20
115.43
^
'
Gas
112.37
107.80
107.27
Sept
~Sept,
Isept,
~
MOODY'S BOND YIELD DAILY AVERAGES:
V, 8.
'
i—
111.44
OF
!
170.6
111.44
u"7""~~
182.0
202.#
196.9
.Sept.
Railroad Group
Public Utilities
Group
Industrials Group
200.5
170.9
104.00
Baa
V180.#
197.1
100.76
:
205.1
sweets
and
100.71
Aa
203#
214.9
200.8
oils
100.72
a
194.2
c c
205.2
and
Sugar
—.11-.
178.®
.
213.4
vegetables
——Sept.
Aaa
205.9
.
'
DAILY AVERAGES:
Average corporate
193.*
'
Fats
U. 6. Govt. Bonds
Z
216.8
bakery products
i_.-_-__-_-i-.--.__-_—
:
158.41
j
MODERATE
______
and
171.7
2,859
'/
v,
foods
Cereals
..
of
344,57>
280
v
FOR
IN
3,940
203,421
158,080
Beverages
|MOODY'S BOND PRICES
44,398,000
•
tons)
items
All
21.225C
.Sept.
(net
(net tons)
1935-1939=100—As
23.200c
anthracite (net
v
All
23.200c
146,324,000
MINES)—
America
To Asia (net tons)
i
To Africa (net tons)
••;•
V'As'
copper-
at
OF
_
PRICES (E. & M. J. QUOTATIONS);
(New York)
(BUREAU
-.tons)'To
INCOME
.Sept.
'
'
construction
construction
26,952,35(9
255,293,772
Month of June:
i
60
3.75833C
7,143,160
51,132,59»
Month of
—
Federal
COAL
17,122,351
7,881,189
75,908,258
.
S.
Public
277
22,299,254
72,308,991
City—.:
To Europe
'
52,935,815
;• 611,908
United
York
GINEERING NEWS RECORD
:
.Aug. 31
$17,729,123k,
10,965,371
U. S. exports of Pennsylvania
BRAD-.
v
.Sept.
(per lb.).
Export refinery
Lead
33,776,460
78,546,812
47,886,574
19,731,192
•
To South America
Domestic refinery at
tin
43,790,880
K
CONSUMER
Btraits
$23,549,648
75,102,332
32,744,718
CIVIL ENGINEERING CONSTRUCTION
COMPOSITE PRICES:
Electrolytic
64,550,181
wi——^
—
INSTITUTE:
Pig iron (per gross ton).
Bcrap steel (per gross ton)
[METAL
CITIES
;
Private
Aug 28
,
5,557,00®
&
Central
Total
RESERVE SYS-
AVERAGE=1flfl
FAILURE^JCOMMERCIAL AND
Finished steel
169,265,000
*13,722,000
28,884,000
6,759,000
West
.
[IRON AGE
215
—
DUN
—
Pacific
28
■
,
*183,736,000
Mountain
87,783,000
State
STREET,
VALUATION
Central
48,458,000
Auk 28
t
output
180,995,000
10,645,000
I—II
50,000
I
Atlantic
Total U,
Electric
I
Outside of New York City__
STORE SALES INDEX—FEDERAL
3,711,000
July:
Central
New
|
(bbls.)"
stock
PERMIT
$153,594,000
OF MINES):
•
4,519,000
■
'
.Sept.
y y-
all
—
Month of
South
.Sept.
Sept.
• ■■/
7,628,000
4,011,000
New England
——.
Middle • Atlantic.:—-i—.......1'..^..,.
'
'-1
■'<
(tons)
28,000
10,293,000
$18,671,510
21,051,000
56,661,000
.Sept.
Bituminous coal and lignite
10,455,000
28,000
9,749,000
22,497,000
South
[COAL OUTPUT (U. S. BUREAU
152,978,000
12,044,000
(bbls.)
imports (bbls.)
products imports
63,524,000
692,459
*"
163,483,000
170,574,000
11,522,000
output
Refined
NEWS-
:
182,646,000
166,330,000
-
69,379,000
municipal
[EDISON ELECTRIC
(bbls.)
70,853,000
891,495
Federal
IEM—1935-39
gal¬
—.I.
23,281,000
......Aug. 28
construction.
[DEPARTMENT
output
BRADSTREET, INC.
•
Beehive...coke:. ftonslW..:-
42
66,321,000
Aug. 28
(number~ofcarsI__I
CONSTRUCTION,
Pennsylvania anthracite
of
(bbls.)
oil
BUILDING
construction
State and
gasoline
output
Aug. 28
•
Private construction
Public
oil
(bbls.)— .111-111
Indicated consumption—domestic and
export
(bbls.)
(number of cars)
„
(bbls.
177,880,000
crude
' Aug. 28
at
Revenue freight rec'd from connections
I CIVIL ENGINEERING
RECORDS:
production
each)
Benzol
Crude
[ASSOCIATION OF AMERICAN RAILROADS;
Revenue
domestic
lons
8,879,000
"
J]
.Aug.
ancfin pipelFnesZT"
June:
Total
6,019,000
28
of
INSTITUTE—Month
.Aug. 28
distillate fuel oil
(bbls.)
5,528,850
Aug. 28
•Aug. 28
_
Residual fuel oil
PETROLEUM
N. S.,
U. S. duty included.
-
34
(1030)
THE
A
COMMERCIAL
kind
of
which this nation has solved most
cooperation and under¬
standing that is necessary 4f this
of
is to be
problems of reconversion.
real
a
recovery program,
Furthermore,
Mr.
and policies
As a result, employment, wages,
production and profits are now at
program
their
worked
v
highest levels in history.
Because
volume
is able to take a. position of
leadership in the international ef¬
fort for world
Make
goods
and
United
close
been
recovery and
about
services
States
is
in
it, the
to
;
last¬
which
able
('American
our
and
the
-
is
of
another
ness-
disrupted economies is an
important force for democracy and
out
peace.
«
can
mocracy
,
7-
,
?
hope to buy de¬
peace,
either with
never
or
Day
importance
or with concessions, but we
help those who want to live
relations
during
two
wars—World Wars I and II—and
goods
can
in
freedom
their
own
The
and
rebuild
peace
lives.
labor
*
,
movements
this
country
have led in advocating
supporting the European Re¬
covery
Plan to' implement our
hopes for democracy and peace.
today, Administrator Paul
G. Hoffman of the Economic Coo¬
peration
Administration issued a
Labor Day statement
emphasizing
the importance of labor in the
present crucial task. *1 would like
to
quote
a few paragraphs from
Hoffman's statement:
"Since the beginning of the Eu¬
Mr.
ropean
group
Recovery Program,
no
in the United States has
given it more whole-hearted sup*
port, has worked harder for it,
or understood it
better than labor
organizations a of
have to do
we
America.
What
is to set
now
In both of these
bargaining
our
ers'
ever
before.
positions
ment boards and
were
raised
and
tions improved.
sons,
aside
past
on
more
given
put
substituted
Labor sacrificed possi¬
The
years
and to the public as well
as to
The Department's
past pol¬
forced
were
paper money
at
piece
for
•
peo-
containing pie are just too damn dumb."
very close to an ounce of
gold. .( .Andrew Jackson wanted to
have
Afier the gold money was col¬ no paper
money below S20.
Per¬
lected, the Treasury declared gold haps we'd better make it
$50 to-*
to
be worth $35 an ounce, and day. • He said
"If, by this
policy,
bought lots of it from foreigners we can
$20 -gold
every
.
ultimately
$35
witness
the
an ounce. At present, there suppression of all bank
bills below
$23.6 billions value of gold at $20, it is apparent that
gold
are
mines, that
as
history-of
be
our
dwelt
in
country which*i
upon
with
delight
earned it. That is, by eVery true friend of
liberty and
the world, as well independence. It Will
lighten the;,
in America, bought the things
great tax which, our paper system
made which gave value to the has so; long
collected from the
people all
we
era
the
will
we
over
American dollar.
read what
another; P*afh
,
sition
Produc¬
tion rose to
of
of
our
economic
prosperity.
new heights and con¬
tinued into the postwar period.
these.
present po¬
freedom
and
Now
characteristic of a currency of
which the precious metals are not
the chief ingredient, or which can
We need more of both
Economic freedom and be
expanded
contracted
or
modern times, we can
-whera it is con*u
venient only if it is
redeemable-in
gold money on demand. This
Open Shop and Depression
American
After World War I, when.this
lesson
workers
and
the
em¬
as
with¬
will
insure, better than- any" legislation i
controlling prices, that prices will
ployers have established the high¬
qf the world." In the
est wage and
living standards in sage he also said:
was
put
aside
and
an
"open shop" drive was undertaken
same mes-_
the world.
to
liquidate unions' gains, the
country wound up in one off the
worst depressions in the
history of
This is not a program to
benefit
labor at the expense of
anybody
else. -I do not need to
remind you
that the farmers and the
small
world.
or
"The progress of an expansion,
rather depreciation of the cur¬
rency
by excessive bank issues, i§
always attended by a loss to the
laboring classes.
This portion of
workers and, the big businessmen the community have neither the
benefit and
prosper only when time por the opportunity, to- watch
labor produces more and con¬ the ebbs and flows of the money
businessman
not get out of
standard in the general trade
a
and the professional
in
use paper money
prosperity are the foundation of out
regard to the principles that
the voluntary methods
whereby regulate the value of these metals
hand and
try be plagued wjththe evils of a
deteriorating currency, The New
Deal's boast. of what is has
saved '
tM(d^ROsitorby:';msiirihgb^hk
accounts under $5,000 looks
very
hollow when 'one realizes that
the
buying power of these savings-in
*
banks, life''irisurance $nd other
forms of indebtedness payable in
more
:
nearly a hundred dentists on
nominally the same, or even total losses l?y
tries of Europe for mutual
^i^escin the
help¬ the relief rolls, hundreds of other
somewhat higher, they are greatly previous '140 years,
H
fulness. They feel that the
future professional men and
reduced in fact by spurious cur¬ ; ' The
thousands
of Europe can best be
citizen7isvmot so dum^ es
built on a of
college trained men. This was
rency,
which, as it appears to the. prof essiionat planners
greater amount of
in;gov*
intra-European in the early 30's prior to the estab¬
make money abound, they are at ernment
An
trade, greater removal of restric¬
thinkriritake0ome l:om*
underwriting group headed first inclined; to consider a bless¬
lishment of the FERA, when the
rnqn sense, arid, soma courage
tions to the flow of
goods, serv¬ back-breaking financial burden of by White, Weld & Co., F. S.
ing";
ices and people.
get. America back to sound
;
money.
caring for the needy unemployed Mosetey & Co; and Paine, Webber;
■Z "All organizations
When. Sherman was Secretary M
can
play-a was carried by the local commu- Jackson & Curtis offered to in¬ 7v Jn,; modern; America, it is ; the
great part in the; European recov¬
vestors Sept. 8
great middle class, the frugal sav¬ the Treasury he said, "The way to
100,000 shares of
ers of earnings in
ery
savings accounts, resume is to resume.'* He saict this
program—farmers, business¬
The nation made a great come¬ Verney Corp. $2.50 par value com¬
men, scientists and educators. In back
bonds, and
mon. stock.
preferred whenlhe proportion of gold; was
The stock, priced at insurance
from that depression.
That
all these
stocks (the ordinary financial pro¬ ^very much less in the
$14.50 per share, was
groups, the international comeback was
based on a great
purchased
TredS^
Labor movement can be
tection of the honest and thrifty than today.
To the credit ofl'pur
of great program of
social reform, insti¬ by the underwriters from Gilbert
assistance. It has been
Verney, President of the com¬ citizen) who are chiefly defrauded representatives;; fa vgayerimPnt-at
your tra¬
tuted
when
President Franklin
dition- to step across
State and Roosevelt took office in
irredeemable paper that time, we did resume specie
pany.
The company will not re¬ today by
coun¬
were
White, Weld Group
Offers Verney Common
are
1
■
•
1933.
country boundaries in
for
your search
iq which the standards
ways
and
living conditions of Labor
be improved.
<
'
can
As
rights
four-year
The time is
program.
short.
The urgency is
great. Our
aim is for America to
get out of
extending
extraordinary outside
assistance at the end of the
four-
:
part of that program labor
and collective
bargaining
were
recognized by law as
by tradition.
Now, three years after the end
well
"America has offered aid under
a
a
unions
of
as
World
War II,
,
textile
organization
located
in
enable
us
to repeal the laws pro¬
'.
question to day is, does the
ay£i>
age American have the
same courprincipally en¬ hibiting the 'use of real money.
high stand¬ gaged in the spinning,, weaving We'd have over 51 % gold cover¬ ageJaijd: the wiU to. preserve; his
year term. Among the American ards of
and
living. -■
'
finishing of rayon fabrics at age for our Federal Reserve Notes financial: liberty? Or does he
motives for the
support of this
V777 f (A '7:7.7 V
one
Canadian and five New En¬ and other paper money—30% was crave (dictatorship and being told
program are the elements of hu-?
Impact of Inflation
what's good for him, as in Ger¬
gland plants.
Products are mar¬ deemed
sufficient
during
the
manity and the desire to have a
Inflationary prices in recent keted through sales subsidiaries. 1920's. Representative How a rd many, and- in Russia?.
peaceful and a stable
world, but months have cut down the
back of it all comes
ability ; For the 1947 calendar; year, Buffett has^ viixtroducedriaiihill
the
Boston,
Mass.,
is
,
recogni-.
tion that we are all
a-part of
Western Civilization and that
there
cannot be
prosperity and
here unless there is
peace
a
ing in Europe of the
strengthen
source
great tradition which
of the
have in¬
herited—of freedom,
liberty and
the dignity of the
common man;"
V
Mr.
than
Hoffman
has
just words in
his ideas.
we
gone
further
carryings,out
He has established la¬
bor divisions: in his
Administra¬
tion's offices here and
in Paris
staffed by experienced and
high-
ranking labor people, to carry out
labor functions and to aid
in the
development of useful cooperation
and
understanding
among
the
the noneom-
of all people who work for
a
liv¬
ing or who live on a small or
moderate income to
buy the ne¬
cessities of life. This is
especially
true of food and shelter.: This
sit¬
uation strikes hardest at
Our vet
erans and our
young
people.
In
addition, Federal
legislation has
been
and
'
State
enacted
posing serious restrictions
on
im¬
la
bor's hard won
rights. Laws have
passed which hamper free
been
collective
bargaining. L abor's
power
and - labor's
prestige, and
labor's authority to seek a better
distribution
of
t h i
s
country's
goods and wealth have been im¬
paired.
Furthermore, anti-labor forces
have made successful
attempts to
munist countries covered
by this weaken labor's voice in the
Gov
program.
The
missions.; to
be
ernment, The appropriations for
established in each of the 16 coun¬
the U. S. Department of
tries affected, will
Labor, of
include labor which I am
the head, have been
advisers from the
American labor cut to a
point where its functions
movement
to
help develop the' have been reduced
in their effecworking
people
of
•
payments and our paper
money
from money of which there is now 51
billions compeared .td 6 hUlions. in was- made redeemable
after
a
Upon con¬
the U. S. A. in 1930 before the short 'emergency
summation of this sale
occasioned; by
Mr, Verney
the Civil "Wari The effect will be
will own,
New* Deal calledin the
ceive any of the
proceeds
the sale of this
stock.
directly or indirectly,
"money
167,302 shares, or 26.2%, of the managers." Fortunately, we have to establish confidence and invest*
earned the real money, now in the .ment qf; savings fon: worthwhile
outstanding common stock,.
new
dangers,
U. S. Treasury, $23.6
Verney Corp.,
ThS
arisen affect¬
an
billions, to emerprises in iho U- S« A.
integrated
new problems
have
ing the industrial spirit, the
great
vital
force of labor,
even
the
maintenance of our
consolidated net sales and oper¬ HR. 5031, calling for the repeal of
ating revenues amounted to $30,- the laws denying ~ the
right of
219,464 with a net income after American citizens to awn
gold and
all charges and reserves of
coins,'' and
$2,r gold
reestablishing
$07,32^, equal to .$4.40 per com* sound money, namely money re¬
mon
share
after
allowing rior deemable on demand in gold coins.
-
preferred
weeks
dividends.
ended^ June
.
For the
19,
24
1948,
con¬
solidated sales and revenues
were
$19,594,621 with
$2,5*35,956,
or
a
net
$3.94v
We cannot undo the
wrong done
were required to
accept
$20 for an ounce, which was there¬
those who
income of after: valued at; $35 by the Govern¬
per
common
ment.:
But
we
Newspaper Controllers t£; '
Hold Annual
.The
Institute
Controllers; and
:i
Meeting
of ( Newspaper '
Finance Officers,
^;Matiohali mrganization i)of
mews»
papermenv and
;;bpsin6ssihen^;tji^l
hold its first annual
meeting
on
Sept. 27, 1948 at the HoteF Stevens
Chicago.
Electibn of officers
in
stabilize the will be held at
this meeting.
share.
Common dividends in 1947 value: at
$35 an ounce;i Thusr we •7 Officers'
nomination^ have; al¬
totaled 85 cents per share.
On may. enjoy rthe blessings .of 7free»
ready been made which; include
Septc 1, 1948, the quarterly divi¬ dorm and control of the
power of Mr.- Edward H.
Hoffman nomi¬
dend rate was increased to 40 the
purse in the people
through
cents per share.
Thus far in 1948
can
their duly elected
representatives.
distributions have totaled 90 cents When
we
nated for the post of
President, and Mr.
First
Vice-
Harold Fergu¬
.regain this freedom, son nominated forthe office of
there';'; heed ; be pa more tailc; M Treasurer. Mri. Hoffman; is Assis¬
per common share.
1
■
our coun-
terms Cdf dollars
almost twb'-thirds^::
y. ;7 ■ T 7-:
industrial goods and market. Engaged from day to day
farm products.
in useful toils, they da not per¬ : ' Smce'1934,. the;totaJ sum sq
v
;
los|
ceive that-although- their wages already has fbeeii greater than the
sumes
.
greater unification of the
a
have advanced to
sights higher. We must join in the t\ For most
of my listeners tonight
mutual objective of
recovery—not it is not
necessary for me to re¬
just recovery to an old
standard, call the grim and sordid details
but a forward
movement, a re- of that depression, the
soup kit¬
vitalization of the life of the free
chens, the unemployed war vet¬
peoples of Europe with higher erans
selling apples on the street
objectives than ever.
Qorners, In my own City of Bos¬
"The American
people hope for ton, I remember a time when
there
a
they
in
esinings of labor, and d° more, to
and courageous- revive and perpetuate those habits
American thought about: paper of econprpyand.
icy and my policy is to preserve
simplicity which
money.
Andrew Jackson said in are so congenial to the
and develop free
collective bar¬
character
the eighth annual message to Con-, Oi
Republicans* than all the legis- >
gaining and better working condi¬
gress, Dec. 5, 1336:
tions.
As a these
latiQR, which7has yet been at¬
principles have
been followed in the
VVariableness must ever be the tempted."
past,, we
ers
ble gains and
pledged itself not to
strike during the war.
the
is
labor.
Wages
were
was
has administered the laws
strictly
a basis of fairness to
employ¬
working condi¬
differences
which
on
For patriotic rea¬
and cooperation
for them.
the useful¬
pro-public program.
Department for all of its 35
govern¬
agencies.
expand
department
noria pro-labor
program.
It
Work-^
were
which
for
,7
when we have "doubts
about the
fiscal policies proposed
by a gov¬
ernment that does
hot recognize
that the people rule.
A
Harry
Hopkins can't say then, "The
or
advance
their
opportunities
for work and think
up new ways of
profitable employment.",
7:77*
production in factories, farms and
This is
J
Collective
enjoyed by
was
representatives *
important
wars.
conflicts, labor
made substantial gains.
workers than
of
and
Just
aftermath of both
a
gold
Money?
6)
of
by the history of labor-man¬
in the
pro¬
owning
page
and
created* in the language of an Act $35 an ounce in the U. S. Treas¬ silver will
take 'their place
and '
Congress passed in 1913, "to
ury, because Americans were so
become the principal
foster, promote and develop the
circulating
capable and industrious, and un¬ medium in the common
welfare of the wage earners of
business 7
der the protection of the Constitu¬ of the farmers and
mechanics of
the; United .States, to improve
tion had
acquired the habit of the country. * The
their working
attainment'of
conditions, and to thinking it paid to get
busy and such a result will form an
Labor
agement
We
Secretary of Labor, I
of
turn
to accept $20
to do all in my power to re¬
and
from
gold coin and requiring them to
turn it in to the Treasury in re¬
-
trends must
establish
that I would like to discuss. That
is the outstanding lesson brought
their
Americans
be reversed
Nation is to get back on the
to
progress and "improve¬
our
pose
'
outstanding
if
As
is vitally involved
planning for world peace
prosperity.
topic
These
,
labor
There
make
available to less fortunate nations
which are struggling v to rebuild
,
labor
(Continued from
use¬
manpower
ment of Labor.
consultation
Thursday, .September 9, 1943
What Is Sound
public
and
in¬
dustrial relations functions have
been removed from the
Depart¬
road
Thus,
mistake
general
ment.
from
unions.
peace.
no
in
and
Important
officials
try
ing world
CHRONICLE
fulness.
Department of Labor and
with an advisory committee that
includes among its members high
our
unprecedented
production, this coun¬
of
out
Hoffman's
have
tiveness
with the
of
FINANCIAL
Pro-public Labor Program
(Continued from page 11)
the
&
■
The
company at June 19, 1948, "managed;
currency"
With this tant Comptroller of the New Yolk
outstanding long-term debt freedom will come
responsibility Post Corporation and a Director
of $2,645,064;
19,000 shares of $5 for the average citizen and the
Of the
Brooklyn Chapter of the
preferred stock and 639,625 shares
barks to insist upon the circula¬ National
Association; of Cost 'Ace
of $2.50 par value
had
common stock.
The Canadian
standing
tion, of
subsidiary had out¬ gold
19,840
shares <of
preferred stock, $50 par
4%%
value'*
have
a
reasonable proportion of
money,:
a
just to
sound
ensure
system and
Our money; when
we
countants/; Mr. Ferguson is Con¬
thai we
troller
can
also
want it,
get
or
of
an
Newsday, Inc., and is
.
active
member
of
Brooklyn Chapter of NA.C.A,
the
:
*
Number-4732
Volume 168 ■
THE
COMMERCIAL
The Investor Must Have Tax Relief!
(Coiitiriu^d from
«
recent estimate expects ; son of the importance to the counthe $300 million loss to soon reach iry of the two courses of action,
a
billioii. Reorgariizatioh may j Some tax authorities warn against
a
"sumptuary" view of
fee difficult* and take considerable taking
what constitutes
time.- w9"':9? !;!;;9'
luxuries, but we
must
vestor. A
point out that Congress has
Agricultural Expenses 9
,
in effect taken
an
arbitrary view
expenditures j in of wnat constitutes "excessive"
fiscal 1948 seem to have
been income in establishing the piesent
above $1 billion plus transactions pheuomenally r. high
tax
rates.
with the Commodity Credit Corp. Surely luxuries cannot be exempt
rtrti'wrf
/linAnnm/vvi
rl
-Pv»r\w%
Without going into a discussion of ed from criticism while economic
Agricultural
>■
IVI4A
Ttriik
<•>£
n
advisability of continued
the
*
incentive
sup¬
port of farm prices at the tax¬
payer's expense, there are several
otner economies
in -.the depart¬
which
ment
feasible
seem
goes
begging.
investor, to obtain tax relief
ft
■
is
hoped
now.
needs
will
the department spent $251
million on rural electrification.
This is a function "which should
tional
that
the
now.
investor's
needs
In 1941
the
vate utilities.
.
be" recognized as na¬
as
well because in
the American stand¬
run
ard of
living cannot be maintained
without a healthy market for
pri¬
vate capital
.9 *
9
immediately
be
long
restored to (pri-x
In 1948 the Farm
.
Home Administration
spent; $114
million and its expense ratio 011
some
At
far&
the
present
Capital; available
to
seems
be
need
no
-
Prevent Government 99
Debt Reduction
;there
for
this
It is only adding to in¬
agency.
(Continued from
;;
the
better-grade,
well-managed
companies leading the advance.
The
ultimate
objective, inter¬
by intermediate correc¬
tions, will be around 250 in the
Dow-Jones: industrials
tive
on
should
The
phase
be
fourth
into
5%
in
the
an
in
200-180
final
or
f
seems'
possible due to the statu-'
tor^ rate^ established;'
aid
seem to
expenditures
to
large
of
the
committer, he
rioted,- r e p r e s e n t organizations
arid agencies which are in daily
contact with farmers and exercise
a
profound influence upon- their
in
have been about $4.8
19?9 high
Carl-
are;
Calvin,
should
as
sell
above
the
386. A prelimihary
The
objectives
of
250
for
country is still in a long-term up¬
ward growth channel. My predic¬
ihgton9 Roger^ierning, Phrector,
It -is not clear
if
now
we
are
to
meet
honorable obligations, so
no suggestion to
make.
the
on
debt
took
fiscal 1948.
$5.2
we
our
have
Interest
billion
99
in
<
One item in .the
budget should
particular interest to those
willing to try; courageous econ¬
omy .-The RFC received $437 mil¬
lion in 1948.
This
item highlights
tne-cost to. the
taxpayer of main?
taming
mental
large number of
a
corporations
their Original
govern¬
no
longer
functions).
RhC original functions of the RFC
cultural
those of
rescuing distressed sit¬
uations in periods of
emergency—
nave
long since been outmoded by
banking conditions. It seems
unnecessary and unjust to use the
such
to provide
culture,
easy financing when private
financing,is being hurt by exces-
there,
are a
governmental
onsolidated
corporations.
The
sheet
-
of
pertain governmental
and
corporations
iin?W x,? total equity
of $28.5 bil-
agencies,
as
of
"* ..We. suggest
:
Mar. 31,
an
1948,
needs for any
£these vcorporationa
!,♦ J,?®
' Ibhger needed could be
trwi *ed and
funds applied
nmi16 lncTreased national defense
L*r«hy shouldn't we avail
tavf yes of these assets instead of
wj-
v"°g ourselves excessively.
hAn0t^e,r
P°ssibility which
Ja,consideratiomis
tional
H.
immediate
'arrr^» 1 r»a^10n
of
CBS,
Radio
the search for
Investment Field
William
Washington;
tn
'
H.
Union,
Farmers
Rathbun,
exoise
tn
*
on
certain
pertainly if
durable
we
cannot
reductions necessary
Pr°Perfy values of
sefw!0I\the
holders
any
other ,way
On-by increasing
luxury taxes,
,
e should not hesitate
6caus? fere can be no
to
do
so,
compari-
Security Traders Association oi
Outing at
New York;; Summer
Travers Island.
Am ericah9 Bankers
Association
74th annual convention.
Fireman's Fund Insurance Co.—
Security
&
Haloid Company
John B. Dunbar &
Spring
Co., 634 South
Los Angeles 14
Street,
Also
available is
circular
a
Company—
Homer O'Connell
—
Co., Inc., 25 Broad Street, New-
York 4, N.Y.
Circular 9-
—-
Banknote
Memorandum
Silver
Creek
Precision
Corp.—
Data—Heimerdinger & Straus, 50
Broad Street, New York 4, N. Y,
on
Southern Production Company,
Inc.—Analysis—Kalb, Voorhis
Laboratories, Inc.—
Special report—Loewi & Co., 225
East Mason Street, Milwaukee 2,
Wis.
N. Y.
i
;
Also
■
available
are
memoranda
Delaware Power and Interstate
on
:?9;9! ! (
Power Co.
Leonard Refineries, Ine,—Circu¬
description—A. G. Woglom & Co.,
Inc., 53 State Street, Boston 9,
Mass.
Long Bell Lumber Companyanalysis—Comstock & Co.y
Salle
<
<
Also available
New
La
^
Yerney Corporation—Analytical
..
lar—George Birkins Company, 40
Exchange Place, New York 5, N. Y.
South
&
Co., 25 Broad Street, New York 4,
Lakeside
are
Main Central
Railroad and Keyes Fibre.
Street, Chi,
4, 111.
Winters & Crampton Corp.—
Analysis—C. E. Unterberg & Co.,
Maxson Food
—Schwamm &
•
61 Broadway,
New York 6, N, Y.
Also available is an.analysis of
Systems—Survey
Co., 50 Broadway,
New York 4, N, Y. ;
Miles Shoes, Inc.
Now J. Allen
Augenblick & Kohn
McMeen & Co.
"
NEWARK, N. J.—Effective with
FT.
WAYNE,
the death of Harry A. Augenblick
IND.—The
firm
L. Lewis
has
fice 9 at
108
opened his
West
own
of¬
s
Rathbern & Co. Formed
securities; business.
previously
send
an
';
Mr.
Town-
did 'business
as
individual dealer.
'v;> "•>!
?
1
1
.
11
1'
1
Geo. P. Smith Dead
George Plume? Smith, Sr., died
PROVIDENCE, R. I.--Rothbern at his. home at the age of 68 after
vYork? ^(Glty;
•
Sanders, President, Americar
Agricultural ■ Editors. Association
Richmond, R Va.; Glenn Talbott
Chairman, Executive Committee,
the National F aimer s-1-Union,
Charles O
Worcester,
President,;
Association
of
Radio
Bond
Traders Club of
Chicago
Nar Luncheon for members of NSTA
passing through Chicago on way
Paul ;tb the Convention •
RonaPlCouhcii
tiyes^
& Co. has been formed with of¬
Denver;
President,
National
Di¬
Farm
Dealer-Broker Addressing
(Pallas, Tex,)*
National Security? Traders Asso¬
5
As
ciation Convention.
ica,"
bank
(Hollywood, Fla.
Dec. 5-10, 1948
1948
than jrou can,
Convention at the Hollywooo
Beach; Hotel.
members
of
the
'There
-
other
that
John
>
Lea G; Griffith Joins
PITTSBURGH,
PA.— Leo
G.
Griffith
has
becorne
associated
15 with Kay, Richards & Co., Union
City? Trust Building, members of the
Stock
exchanges,
Miller,
market analyst, has joined its
at the firm's main office.
'
approximately 6.600 names In the United
900 in Canada, all arranged alphabetically
Addressing" charge $5.00 per
thousand.
(main offices only) arranged
just as they appeared In "Security Dealers."
Cost
for addressing N. >A. S, D. List, $8 per thousand.
Special N. A. S. D; list
Co.,
York
E.
up-to-the-minute list
obtain elsewhere.
are
States and
Kqy% Richards & Co«
New York
Exchange -and
announce
&
publishers of "Security Dealeri .of North Amer¬
we have
a metal stencil for every firm and
listed in this publication,
which puts us in
position to offer you a more
a
Investment Bankers Association
Newburger, Loeb & Co.
Newburger, jLoeb
Broad
Street, New
Service
Nov. 14-18,1946
by States and Cities.
»,lncrease in the excise taxes
♦John E. Miller Joins
f, uxur*os'9 (We
do not refer
hav?«
New
■Mi-
Sept. 10, 1948 (New York City)
I;
means of reducing the rectors, Cedar Haplds, Iowa.
s ^ax ^urden immediately
nn
Avenue,
4
-
National
Sept. 23, 1948 (Des Moines, Iowa)
Di¬
kvolar!d
»
Madison
17, N. Y.
Straus Tq Be. Partner in
In
Earm,
J am estown, N. D.; and
mer-
285
Airways—Mem¬
M. Rosenbaum &
Philip Carey Manufacturing Co.
—Analysis—William A. Fuller &
Co., 209 South La Salle Street,
Chicago 4, II. 1
Bulletin—Laird, Bissell & Meeds,
120 Broadway, New York 5, N. Y.
COMING
E|/:EN:is
American
a long illness.
Mr. Smith was a
Oct. 11,194$ (St* Louis, Mo.),
fices at 15 Westminster Street. senior partner and a founder fn
University,^ Ithaca, N. Y.; Charles
Tentative date for annual; elec¬
T. O'Neill, Chairman, Agricultural
1901 of the New York Stock Ex¬
tion
party of Security Traders Mr. Rothbern was previously with
Commission, • American Bankers Club of St. Louis.
change firm of Smith & Gallatin.
Gifford & Co.
Association, Charlottesville, Va.;
James Patton^ President, The Na? Nov! 13, 1948 (Chicago, 111.)
number of other
balanced
-
Myers, Dean, New York State
College of Agriculture, Cornell
addition to the
"
w C
Co.,
Washington
Iowa Investmerit Bankers Asso¬
Street to engage in the securities
rectors, Washington; C. L. Mast.
ciation annual field day at Hype¬
business.
He was formerly local
Secretary, American Agricultural
rion Club,, with breakfast af Hotel manager for Courts & Co. •
Editor? Assoc iat i on, Chicago;
Savery.
9
W. A. Minor, Assistant to Secreof Agri¬ Sept. 26-29 (Detroit, Mich,)
changes for the better in business
now
Director
Association
and
taxpayers money
Pan
orandum—Wm.
name of McMeen-Merillat & Co.,
Washington: O f fi ce, American
on
Aug. 30, the former partner¬
Farm Bureau* Federation,. Wash-^
Ft. Wayne Bank Building, has
ship of Augenblick & Kohn, 31
Sept. 17, 1948 (Chicago, 111.)
ington; Albert S. • Goss, Master,
Clinton Street, was dissolved.
A been changed to J. Allen McMeen
The National Grange, Washington;
new
partnership
consisting
of & Co.
cago annual field day at KnollMr. McMeen is now sole
Edward F.-Holter,.Lecturer; The
wood Country Club (cocktails and Richard E. Kohn and Ferdinand
NationalGrange,
Middletown, dinner at the Kenilworth Club A. Straus, member of the New proprietor.
Md.; Van B. Hart, Professor oi
York Stock Exchange, was formed
Sept. 16).
Farm
Management, New York
effective Sept:-2. Mr. Straus was
Sept. 17, 1948 (Philadelphia, Pa.)
Tpwnsend, Weston & Co.
State "College, of Agriculture, Cor¬
formerly active as an individual
Investment Traders Association
nell
9 CHARLESTON, S. C.—William
floor broker in New York City
University, .Ithaca, N. Y.;
election
and. dinner ( at and
Allan B. Kline," President, Amer¬ annual
prior thereto was a partner L.
W.
Weston
and
Joiin C.
Palumbo's Cafe.
ican
Farm
Bureau
in Freehling, Meyerhoff & Co.
Federation,
Town send have formed Townservd,
Chicago; William R. Kuhns, Sec¬ Sept. 20, 1948 (New York City)
Weston & Co. with offices at 114
;
retary; Savings* Bdnds Committee,
Charles Hayden Memorial Tro¬
Thomas L. Lewis Opens
East Bay. Street to engage in the
American
Bankers
Association, phy Gold Tournament at Baltusrol
GREENVILLE, S. C.—Thomas
New ? York City; Ron Lerch, Agri¬ Golf Club, Springfield, N. J.
whether any economy is
possible
here
H. Lewis & Co., 63
Street, New York 5, N. Y.
York
cago
tration^
$6,4 billion.
Analysis for dealers only—Straus
&
Blosser,' 135 South La Salle
Street, Chicago 3, 111.
231
loans
were
Wall
Ero Manufacturing Company-—
tion
may^ventually turn out to be
quite conservative.
Street,
National Delta Merger—Discus¬
the
the market over the past 60 years,
ft must be remembered that this
Pine
and
the Pfaudler Co.
;
Co.,
sion—John
about 45(1 iri the averages!
Deputy
would '.not be
particularly Governor, Farm Credit Adminis¬
burdensome to many
recipients of
Washingto^^ John Davis,
•our foreign
largess. Veterans Ad-; Executive,Secretary, National
Council Farm Cooperatives: Wash*
ministration expenditures in 1948
mem¬
Motors,
Calif.
practice of bond buying.
Members- of the National Agri¬
out that long-term
cultural Savings Bonds- Commit¬
course, preferable to grants from
iheiaxpayei's standpoint and that; tee, appointed by Secretary Sny¬
der
brief
are
General
objective,
calculated^ from; the
longr-term base patterns, suggests
would point
loans are, of
amortization^9-Qri'-;:Very^ long-term
on.
This
upswing with
over-speculation and heavy public
participation. The pattern is not
complete as regards the ultimate
price objective for this final ad¬
.and
hence
are
well
to; entourage the thrifty
placed
seems* pos¬
available
Dow Chemical.
will be the dynamic
thinking
expenditures
here and no reduction
sible.. Howevery we
ii;g^9Bohd$ program;
Members
billion, including $3 billion. ear¬
marked for use th ;1949.
We are
committed
Also
oranda
&
Inc., 70
New York 5, N. Y.
tion—Analysis—Brush,
Slocumb
& Co., 1 Montgomery
Street, San
Francisco 4, Calif.
.
Foreign
ton
Street, New York 5, N. Y.
area.
carry¬
Company
—Card memorandum—G. A. Sax-
Wail
Federal Water & Gas Corpora¬
1950's.
Engineering
—Memorandum—Bache & Co., 36
the
advancing
upsurge
middle
late
8)
page
Morgan
declining
or
in the
1950s
fifth,
phase will be
ing
reached
should: culminate
early
The
with
either side. This objec¬
flation. Thesetwosuggestedsavr
present; phase:; arid^SO-forthe
ultimate advance, seem fantastic
; (Continued from page 15)
ings^'add' up to $365 million: ' 9<rector
but' only because of the
v of
the ; Sayings
Bonds now,
•Sbcial Security, • paymentSV ihdudihg vthe : railroad Retirement" Divison, also addressed the new present depressed mental state.
funct i were ; aboht" $1:7' billrott "in committee.^ He -stressed the^need Percentagewise, the advances are
for.
fiscal .1948. V No
;.VOlunteers-'.to'carry forward quite in line with the moves of
decrease
here"
1948
(Continued from
Emerson Electric Manufacturing
rupted
leaway
35
(1031)
Dealer-Broker Recommendations
|
2)
page
advancing phase, will be compara¬
tively moderate and selective with
industrials
Snyder Says Tax Cuts
levels9of
prosperity . and with - ample
private
/
CHRONICLE
vancing phase, but the Dow-Jones
rjdans; was; apparently ^aboitit
30%;
Greatly Under;
1949.
.9
Thus it is quite feasible for the
.
FINANCIAL
Priced Stock Market
£
5)
page
Our
&
staff
New; York and Pittsburgh Stock
Exchanges.
resident
Co., Inc.
,
He
manager
formerly
for Stroud &
was
9 v
-
Herbert D. Seibert & Co., Inc.
Publishers
of
-25 Park Place
"Security Qealers of North
—
REctor 2*9570
—
America"
New York City
36
(1032)
THE
COMMERCIAL
Securities
•
&
FINANCIAL
Now
in
INDICATES ADDITIONS
CHRONICLE
Thursday, September
9,1943
Registration
SINCE
PREVIOUS
ISSUE
Air
Commuting, Inc., White Plains, N. Y.
? ;'
(letter of notification) 1,060 shares of capital
(no par value), of which 600 shares will be sold
publicly at $100 per share.
Underwriter
Burnham &
Co.
Proceeds—To be used to engage in limited
helicop¬
ter operation over routes which the
company is
June
Century Electric Co., St. Louis, Mo.
August 23 (letter of notification) 25-,000 shares ($10 par)
common stock.
Offering—Common'stockholders of rec¬
ord Sept. 7 will be
given right to (subscribe on or before
17
stock
—
Oct.
presently
certificated
on
basis
of
at
$12 per
working capital.
to fly or in limited
helicopter commercial
Postponed indefinitely. J
^
work.
29
held
one
share
new
share.
No
each
underwriter.
'7
,
for
J
*
21
To
increase
Arizona
■
Edison
(letter of notification) 24,000 shares ($5 par)
Price—$12.50 per share. Underwriter—
Refsnes, Ely, Beck & Co., Phoenix, Ariz.
To partially
repay bank loans and to provide funds for the construc¬
common
1
•
•
*
'
'
-
share and
of
improvements to, the company's
■
'
*
•
;
'
.-i\
4
.
■
.
\
—
•
-
30
■
•
,
•
i
•
.
y
.
15,000
V/z warrants), at $2.75
common
■>
New York.
•
{
f
s
Underwriter—Dunne
&
Fuller
Co.,
cumulative
2,000 shares of class A
common
stock.
Clarostat Mfg. Co., Inc.,
Brooklyn, N. Y. (10/1)
26' (letter of; notification) 37,400 shares of
500 ;■
cumulative convertible preferred
stock., Underwriter—
To be sold at $44
and
$11.75, respectively; This stock is being sold by
James A. Walsh, President of
the Company. Underwriter
—F. Eberstadt &
Co., Inc., New York.
*
lative convertible preferred stock
($50 par).
$44 each for Frederick
at
To be sold
and
Secretary of the company.
F. Eberstadt &
Co., Inc., New York.
;>**
t;yy-j.
yt-yy
- y^y-
'
.
'
s
15.
shares of
common
•
Blackstone Press, Inc.,
Somerville, N. J.
Sept. 1 (letter of notification) 600 shares of
capital stock
(par $50).
Offered in units of • six shares at
$50 per
share. Underwriting—None.
Expansion of present busi¬
ness, purchase of additional
printing
Mountain
7
Coal: Co.,
New" York
one
Underwriting—None.
Hall
(C« M.)
General
Rights expire Oct
improvements,
etc.
Lamp Co., Detroit
August 2 (letter of notification) 53,770 shares of common
stock (par $5). Offered for subscription to
stockholders
of record Aug. 30 on basis of one new share
for each
five shares held.
Rights expire Oct. 1. Price—$5 pe
►
~
Coleraine Asbestos Co.
Hartford, Conn.
share for each five shares held.
K
Price—$1 per share. Uiiderwriter-^-Charles W.
Warshoff & Co.,'
Newark, N.J. To meet obligations.
'
-
Effective May 5,
underwriting.
Gauley
new
;
stock.
Underwriter—
v
Co.,
.
.
Corp., Newark, N. J.
July 26 (letter of notification) 290,000
Machlin, Executive Vice-Presi¬
dent
■
.
Cobalt Mines
Brush
Aug. 13 (letter of notification) 6,093 shares of
capital
Price—$8 per Tstock (par $10).
Price, par. 7- Stockholders of
record
y Sept. 1 will foe given right to subscribe at rate
of
Cantor, Fitzgerald & Co., Inc., New York;
share. Working
capital, etc.
Armstrong Rubber Co., West Haven, Conn.
/
July 8 (letter of notification) 1,000 shares of
4%% cumu¬
250000
125,000 preferred
sharei
Company's proceeds will b«
company
July 12 (letter of notification) 3,000 shares of ($100
par)
preferred stock.
Price—par.
To raise working
capital
and retire existing indebtedness.
No
Aug.
'
and
used for general corporate purposes.
exercise
•
shares
and 75,000 common shares.
per
reserved for
purposes.
>
(letter of notification) 1,000 shares of 4%%
convertible preferred stock, ($50
par) and
—
unit, the balance
of 15,000
the right for
to purchase shares at $2.75 per share.
Gen¬
shares being
four years
eral corporate
f.
,
(par $1). Underwriter — Floyd D. Cerf Co.,
Chicago
Price—preferred $10; common $6.
Proceeds
Stock'
holders will sell 260,000 preferred shares and
(9/14-17)
warrants, purchasers of which will have
Armstrong Rubber Co., West Haven, Conn.
June
Inc., Brooklyn
Aug. 3 (letter of notification) 25,000 shares of common
stock and 20,000 warrants.
Offering—10,000 shares and
15,000 warrants to be offered in units (one common
stock.
tion of, additions and
properties.
common stock
Chieftain Products,
Company,; Inc., Phoenix, Ariz.
Products, Inc., Stockton, Calif.
March 6 filed 385,000 shares of 60 cent
convertible pre.
ferred stock (par $5) and 325,000 shares of
-
:
Aug. 25
Ltd., Toronto, Canada
shar^
Flotill
shares
•-
i
(
Fission Mines
April 16 filed 200,000 shares of treasury stock.
Under
writer—Mark Daniels & Co., Toronto.
Price—$1 a
Ltd., Montreal, Canada
Aug. 16 filed 200,000 shares of capital $tock.
Price—
Currency.
Underwriter i share. For advances to a
subsidiary, Indiana Die Cast
Proceeds—^For drilling operations.
ings, Inc„ and to improve shipping and Storing facilities.
-No underwriting.
equipment,-/etc.
J
Consumers Cooperative
Assoc., Kansas City,
V
7 Missouri
Borderminster Exploration Co./
^^^:^ KJ
Ltd., Ottawa,;
Heidelberg Sports Enterprises, Inc.,
Canada
1
Oct; 16 filed $3,000,000 non-dividend
common stock ($25
Pittsburgh,; Pa.
June 2 filed 500,000 common
par); $6,000,000 of 3J/2% five-year and 4J/2% 10-year
shares ($1 par). Under¬
June 25 filed 2,041 shares of class A common stock and
writer—Mark Daniels & Co.. Price—40c
cumulative certificates of
per share Cana- V
indebtedness; and $2,000,000 of
<
50 cents per share in Canadian
—P. E. Frechette.,
'
«
%
dian funds.
Proceeds—For exploration
of
properties,
jv
•
Boysen (Walter N.) Co.,1 Oakland, Calif.
Aug. 31 (letter of notification) 1,250 shares of
6%
ticipating preferred stock (par $100).
Price—Par.
;
J
amount.
par¬
i
underwriter.
5,000 shares of class B common stock (par $100). Price
1%% demand and 2J/2% 6 months cumulative loan cer¬
—Par ($100 per share).
tificates.; No underwriting.
Underwriter—None. Proceeds
Offering—Offered only to
*—$600,000 to be used, for spectator grandstand and bal¬
stockholders and patrons and members.
Price—At face
•
,
-
Corp.; Kidder,/
Peabody & Co.; Coffin & Burr. Proceeds—To
pay $2,-?
625,000 of promissory notes and to finance
additional
construction costs and
corporate needs.
iyyi '■■v-'''.
7
■:
-"
■
($1 par)
iyjyi.
;•
Capital Securities Fund,
Inc., Chicago
Aug. 30 filed 300,000 shares of common
stock
Underwriter—Capital
t
•
be
v
obtained
Price, by amendment,5
Proceeds—For additional
.;
Underwriting—None.
working capital.,
^
^
| 1947 and only
5
y
by- amendment. i Proceeds—For
repyament of bank loans.
1
"
■
-
:
yy-yy ■::::yv
■■•-n-yyy ■j;--
Central
Power &
Light Co.
Nov. 21 filed
40,000 shares
■
share held.
construction and
common
shares
($1 par)
:
&
Co.; Dewar, Robertson
chase contract in April,
1948, concluded that
share of preferred for each 20
held.? Price—By amendment
»yyyyy
< (9/15-16)
August 19 filed 185,000 shares ($30 par) cumulative
pre¬
ferred
stock, convertible into common stock. Underwriters-Central Republic Co., Inc. Proceeds—To reduce
>
short-term
purpose of
;1i
•.
bank loans of
$16,900,000 incurred for
producing and carrying inventories.
Household Service, Inc., Clinton, N, Y-
(9/131
'
($10 par)
-
stock.
Proceeds—
common
August 16 (letter of; notification) $50,000 first mortgag
5% 20-year (closed) bond issue. ■ Underwriter—E. «
Hughes & Co. For new plant construction and improve¬
ment of
s
y; >-J ;<
t
t
\t
?
■>.
Hygenic Service Co., Boulder, Colo.
Bloomington, III.
Aug. 9 (letter of notification) 4,700 shares
($5 par) com¬
stock.
Price—$6.25 'per share.
No underwriter.
For working capital.
^
';.
Sept. ;3 (letter of notification) $10,000 ,5% sinking fund
10-year serial debenture^,' series C, due Jan. 1, 1958.
Underwriter—Mohawk Valley Investing Co., Inc., Utica,
N. Y. Price, par. Expansion of
gas distribution system.
''vv.:-br*\'y
mon
■
'
]
-'y.
T
.j-
y
- ^
^
e.W
,
T>
-
Vy
existing plant.
•
Family Finance Corp., Wilmington, Del.
Sep. 2 filed 25,000 shares of 4%% cumulative
preference
to
be
reserved
for
conversion
Underwriter—E. H. Rollins
&
;y reduce outstanding bank loans
7
.
First Guardian
of
the
and
including
common
preferred
Son, Inc.
^
stock
($100 par) and 500,000 shares ($10
Underwriter
Tom G. Taylor &
Mont.
Price—$300 per unit, consisting of
preferred and 10 shares of common stock.
stock
stock.
stock.
Proceeds—To
and commercial
paper.
y;
a
—
preferred
par) common
Co., Missoula,
two shares oi
Proceeds—Tol
erect and
operate a bleached sulphate pulp mill
200-ton per day capacity, v
'
Securities Corp., NeW York
City
preferred.)
Price—$25
mon,
Idaho-Montana Pulp & Paper Co., Poison, Mont
May 17 filed 100,000 shares of 4% cumulative
cumulative pre¬
June 4 filed 36,000 shares
of 5% cumulative
convertible
Brothers; Glore, Forgan
y preferred stock ($25 par) and 172,000 shares
($1 par)*
a purcommon stock.
?(72,000 shares of common to be reserved
1948, but the SEC on July
for conversion of the
27,
proposed preferred
one
stock
Kolly Sugar Corp.
v
from
Eureka Williams
Corp.,
;
($100 par)
financing by the
common
and. expansion; of manufacturing facilities,
Offering postponed. !
'
-i
& Pancoast
negotiated
stock issue is not
necessary.
of
; provement
ferred. Underwriters—Lehman
5
\
|
Underwriter—A. G. Becker & Co. will
acquire the unsubscribed shares. Proceeds—To be used in part for im-
Kendall & Co. For working capital.
Offering—To be offered to 6%
preferred and common
stockholders; for subscription on the
basis of one-half
stock, series A (par $50) (convertible to
share of new common
for each preferred share
and one-/ y Aug. 1, 1956.) and 97,580 shares
($1 par)
tenth share of new common for each
Price
holders in the ratio of
-
Underwriter—Carl M. Loeb, Rhoades & Co.
To selling stockholders.
' *
/
8,
one bid, that of Blyth &
Co., Inc. and
Kidder, Peabody & Co. was submitted and was
rejected
by the company.
They bid $13.75, less $1.75 under¬
writing commission.- Now expected on
negotiated basis
through Blyth & Co., Inc. and
Kidder, Peabody & Co.
stock
Corp.y New York, N. Y.
29
filed -59,579 shares of cumulative convertible
preferred stock (no par) to be offered common stock¬
Portland,
debentures, and 10,000 shares
August' 26" filed 25,000 shares
77v;v^,--r:
Dec.
Inc.,
June
Eastern Corp., Brewer,' 'Me;:'/
Central
Under-
%
'
„
Maine Power Co. I
Nov. 10 filed 160,000 shares
($10 par) common.
writing—Company called for competitive bids
Co.,
Hey den Chemical
Is7
i
.i
preferred and common stocks and to
the extent
by them, to certain key
employees and
unsubscribed
officers
•
the sale of franchises
(estimated at
$100,000 H will be added to company's
general funds.
About $239,000 would.be used to
purchase equipment
apd $t$5,000 for .working capital.
Carpenter Paper Co.,
Omaha, Neb.
August 19 filed 6*177 shares of 4%
convertible preferred
stock i($100
par).v-«Offering-i-To be offered to present
holders of
'
'
Dynacycle Manufacturing Co., St.
Louis, Mo.
Sept. 3 filed 100,000 shares (80c par)
common-stock.
Underwriter—White & /Co.,. St. Louis.
Price—$5 pershare.
Proceeds, plus an additional amount which
may
!
investment,
related purposes.
•
(par $1).
Distributors Corp; Price—Market
(about $10.43 per
share). Proceeds—For
'
1
•
common stock reserved for exercise of
warrants.
Underwriter—Minot,
*
7';,vV
■
;
■
common
reserved for conversion of
;
.
'
•-
»
$100,000 of 5-year 5%
convertible debentures, with
non-detachable stock; pur¬
chase warrants; 10,000 shares of
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston
"
-
for
^y':' '*'■
-
.
.
Brockton
7 mined
-
*
J
%
j
;v,•.* '
" ",r
For; factory and office expansion.,
Douglass Manufacturing
Edison Co.,
Brockton, Mass. -a" .• >i'/
:v
Sept. 3 filed $4,000,000 first mortgage and
Maine;
collateral
trust bonds, due 1978.
.Underwriters—Names to be deter-^ .Aug. 16"(letter of notification)
•
ance
Proceeds^-Fo^ acquisition of additional office
and plant facilities.
No
Underwriter—None.
share for the preferred and
$10 for the com- *
'yyyy^y^■
~
Indiana &
Michigan Electric Co.
with a|
(9/14)
July 14 filed $25,000,000 first mortgage bonds, due 1978.
Underwriters—To~ be determined by competitive bla¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Lehman
Brothers; Dillon, Read & Co-
COMMERCIAL & FINANCIAL CHRONICLE'
Number 4732
168
Volume
acquired and offered for sale during the fiscal year
ending May 31, 1949, will not exceed 100 employees'
so
0
.
'
•'
4... i:
Lithium Corp., of America,
r.*
Chemical Co.:.
Chieftain Products, Inc
—Common
~
Electric Co.
•
Preferred
Corp.—
.....
National Bond & Share Corp
Capital Stock
j# /•
Associated Telephone Co—Preferred;
Southwestern
Toledo Edison
record
Sept. 15, in ratio of one new share for each three
Rights expire Sept. 30. Price—$4 per share.
Proceeds—For working capital.
shares held.
To be offered in units
preferred shares and one common share at $100
Pacific
(9/21) 4
filed $75,000,000 35-year debentures, due 1983.
Xjnderwriters—Names to be determined through com¬
petitive bidding. Probable bidders/Morgan Stanley &
Co.; Halsey, Stuart & Co. Inc. Proceeds—To reimburse
•; ■
; 'yyy.:
-y
y.;; -.:yy^y^yy/y-y-yyy/.. treasury for costs of improving and enlarging telephone
plaht; to repay advances from American Telephone &
Metropolitan Edison Co.
(9/28)
f,
• :» ,
Telegraph Co., parent, and its bank borrowings; and bal¬
August 19 filed $3,500,000 first mortgage bonds, due 1978,
ance to meet the costs of its own construction as well as
,and 40,000 shares^($100 par) cumulative preferred stock,that of its subsidiary, Bell Telephone Co.-of Nevada*
Underwriters—Names to be determined through comExpected Sept. 21.:.:y: \ '/ 4'. yy'4,,4'4•
"petitive bidders. Probable bidders for bonds include
The First Boston Corp.; Drexel & Co,; Glore, Forgan &
4444 Pennsylvania Power & Light Co.444y .•i.4* /;
Co.; Halsey,:Stuart & Co. Inc.; Harriman Ripley & Co.; •
Aug. .17 filed 316,863 shares (no par) common stock.
Inc.; Kidder, Peabody & Co.; Salomon Bros. & Hutzler.
Bidders for preferred stock probably will include Drexel * Underwriters—The First Boston Corp. a and Drexel > '
! & Co.; Glore, Forgan & Co.; Harriman Ripley & Co.; Kid- y Co/, Offering—Offered to common stockholders of rec-f
J3rd Sept. 8 at fate of one new share for each eight shares
der, Peabody & Co.; Salomon Bros. & Hutzler; Smith, y.
of common stock held.
Rights will/expire at 3 p.m.
Barney & Co., and Goldman, Sachs & Co. (jointly).
(EDT) Sept. 23.'Price—$16.25 per share. Proceeds—To
Proceeds—To the proceeds company will add a $1,500,000
finance company's construction program.
capital contribution from parent, General Public Utili¬
ties Corp. and use the money as follows: $3,500,000 will
/Powers Oil & Drilling, Inc., Casper, Wyo. ;
go for construction and improvements; $1,500,000 will be
July 14 (letter of notification) 800,000 shares (250 par)
used as a partial payment to subsidiary, Edison Light &
common stock, y Price—25 cents per share.
Underwriter
Power Co., for purchased power, and $950,000 of this
—John G. Perry & Co.
For drilling operations.$1,500,000 will be for Edison Light's construction activi¬
capital stock of Paragon Testing Labo¬
of
ratories, etc.-"
•
Telephone & Telegraph Co.
August 30
unit/ Replenish working capital funds for payments
account
on
Inc.———Pref. and Common,
Co
—Bonds
Official Films,
N. i.
■
1948
September 20,
Rutherford,
Investing Co., Inc., Utica,*N. Y.
of five
per
4 'V
East
44;;y44;-:;44.44'-^
Aug. 20 filed 184,245 shares of common stock ($5 par).
Underwriters—Blyth & Co., Inc., and Schwabacher &
Co.
Offering—To be offered to common stockholders of
Sept. 7 (letter of notification) 5,000 shares of 6% cumu¬
lative preferred stock
(par $20) and 1,000 shares of
common stock (no par).
Underwriter—Mohawk Valley
1948
17,
Inc.,
Co.,
,4,
Co.
Aggregates, Inc., San Francisco,
;4/444;4 California
(9/14)
Holly Sugar
September
Matheson
:
Insurance
,
Pacific Coast
working capital. /
write^—No
-
1948
15,
September
^
•
Price—$15 per share. Stockholders of record Aug.
20 have the right to subscribe on basis of one new share
for each 15 shares held. Rights expire Sept. 20.
Under¬
$1).
(EDT)—Bonds ;
11:30 a.m.
New York
Aug. 11 (letter of notification) 4,871 common shares (par
1948
14,
September
& Michigan
share. No underwriting. Proceeds—For additional
working capital, y' ■ #'VsV'/#• -;;
Maitine Co.,
State
filed
24
initially offered on a "when, as and if issued" basis;
13,333 shares will be purchased by underwriter for pub¬
lic or private offerings; and the remaining 40,000 shares
will be publicly, offered on a "best efforts basis" oo
completion of the subscription of the first 40,000 shares
and the company's receipt of a license to do business in
North Carolina.
Proceeds—For general business purP°ses'
44-44
:4;4:"4
per
--Equip. Trust Ctfs.
—Preference
York Central RR..
Inc., Minneapolis
Aug. 13 filed 100,000 shares of common stock ($1 par).
Stock will be sold to present warrant holders for $3
1948
13,
September
Indiana
,
Co.————.—Debentures
Household Service
Trenton
••• \
194S
September 9,
New
;
._
North
37
100,000 shares of capital stock (par $5).
Price—$15
per
share., Underwriter—First Securities
Corp., Durham, N. C.
Offering—26,667 shares will be
shares and interim shares and 400 participating shares/
NEW ISSUE CALENDAR
Old
June
(1033)
-.
.
'•
y
-
'
"
*
4 4
-
-
y
.
/4#^#44-'/ September 21, 1948
.
,
#
Co.—I—Bonds and Common
Ohio Edison
Co.——S-~2
Pacific Tel.; & Tel.
•
.Debentures
//September. *22, 4194S44 4444 #4)4 :v
(Alan) Steel Co.—J..—::..—ri—Bonds
Wood
i-
;'-'v-v J
/w,'/ 4 4 A
•>%
.
.v0#^S:'-:^':;:'l'Septeiiiber 23, 1948
United Utilities &
Specialty Corp...u.^.--iPreferred
September 28,
.4" September 29,
Southern Ry
^
1948
,
Bonds and Preferred
Metropolitan Edison Co
1948
—Equip. Trust Ctfs.
—:
.
October
1948
1,
.———.....Preferred
Clarostat Mfg. Co—
applied to improvements on
ties; and $3,450,000 will be
the
tive
as¬
sumed by the company under a merger, and for treasury
funds.
Bids—Bids for the purchase of the bonds will
be received at office of American Gas & Electric Service,
•
International
Aug. 9 filed 15,000 shares of preferred stock ,D, noncumulative
($100 par).
Underwriting—None.
Shares
are to be sold at par, plus a premium of $1, $2, and $3
for the second, third and fourth quarters, respectively,
in which they are sold, representing an allowance for
dividends.
Proceeds for additions and improvements.
(EDT)
'v.';.'•
i:-
Asbestos
Ltd.,
Co.,
Sherbrooke.
Inventory and accounts
Quebec
Jan.' 30
filed
($1
par)
Ivey
•
Sept. 3 filed 100,000 shares ($5 par)
derwriter—R. S. Dickson & Co.
of the
y
,
purchase price of all the
common
*:
stock.
outstanding shares of
Aug. 13 filed 31,600
;
of notification)
of class B -stock.
Sickle,
common
stock.
Lansing,
shares
($1
debenture
bonds,
Buckley Securities Corp.
„•
4
;>•
'•>
,
.
*
.•
4 V
•' " t
one
Shares will be issued to H. B. Johnson
and J. J. McQuaid on conversion of $55,000 of 5%
vertible
'
'"i*
due
1955.
'
7 4>44-4>4 f'y
44
„
yr'-yy' ''
Co.*
petitive bidding.
Underwriter
•
constructior|' of ijs
*
^ay be acquired by them from the holders from time
time.
The
0
trustees estimate that the number of shares
1
for
"prepayment
notes.
1 *
'4*
\
1
Expected Sept. 21.
,
/
1
\
j
.
T
■* •.«'
z1'
40 cents per
,
>
4 '
y
».
:
,
Mines Ltd., Toronto, Can.
shares (par $1).
Price,
Underwriter—Old Colony Securities
Proceeds for gold mining operations/
share.
:::'4
Shoe Corp.
.Mor¬
and its subsidiaries, and
of $3,125,000 of outstanding instalment
'
•
Development of air-condi-
agents.
Aug. 6 filed 1,088,843 common
of America,
June 28 filed 25,000
first mortgage bonds, due
own
at $1.50 per
notification) 5,620 shares of common
stock (par $5). Price—$7.25 per share. UnderwritersEastman & Co. and Grabau-Buchman, Syracuse, N.- Y,,
Akron, Ohio (9/21);
Probable bidders for the bonds;
Sept. 1, 1950,
Proceeds—For drilling operations.
Ltd, of Toronto.
::':
Stanley & Co.; Glore, Forgan
Co., for
as
of stock sold, the company will' de¬
Remington Corp., Cortland, N. Y.
general
Aetna Securities
y4-'-4/444
capital stock, ($1 par
underwriter stock purchase warrants* en¬
the
will act as selling
-
plan to offer for sale such other stock trust shares
<h
,
Aug. 31 (letter of
(9/20)
& Co.; Shields & Co.
curities Corp.
For working capital and the payment
and White, Weld & Co. (jointly); Halsey, Stuart & Co.
of bills.
S Inc. Offering—Stock will be offered for subscription by
•
Leeds & Northrup Co., Philadelphia, Pa.
common stockholders at rate of one share of each seven
shares held of record Sept. 22. Commonwealth & South¬
Sept. 2 filed 1,500 employees' shares at $111.63 per share
ern Corp. owns 90% of the outstanding common.
and 2,000
Price—
participating shares at $100 per share plus ac¬
crued dividends.
$27.50 per share. Proceeds—To make an additional $900,Offering will be made by the Trustees
000 investment!:. in/ itll -subsidiary, Pennsylvania Power
under the deed of trust dated Oct.
20, 1916.
Trustees
gan
to
share,
Columbus,
shares of cumulative
preferred stock;
share purchase warrants
attached and 25,000 shares of common stock reserved for
warrants.
Underwriter—Lee Higginson Corp. Proceed®
(no par), with class A common
shares of common stock. Underwriters
—Underwriters of bonds will be determined through com¬
Underwriter—Mallory Se¬
■
1,000 shares of capital stock of the company
1978, and 285,713
»e
'
that the
'i
titling the holder to purchase, on or before
(Philippines)
Inc.
hardwares, etc.
August 20 filed $12,000,000
j>% sold in units of 25,000 shares (100 par) and one share
preferred and one share of common common. To
,
liver
':y;*y y 4?#
Working capital and other
Ohio Edison Co.,
Aug. 23 (letter of notification) 25,000 shares ($5 par)
•'
■ *
so
1
^
•
Price, $1 per share (United States funds). For
each 20,000 shares
Price—$6 per unit, consisting of
stock (par 100).
purposes.
>
Underwriter—Hiscox, Van Meter &
funds).
St. Anthony
share of each.
bidding rule
4 :
r
4 tioning units, etc.
corporate
Lamex Chemical Corp., Birmingham, Ala.
preferred at $5 per unit.
Co., Inc.
con¬
,
4 7
' t
*
w >
Canadian
Underwriting—None. Proceeds
and equipment, purchase of
Corp., New York.
Underwriter— ;''4-4N;4y:4-':'444
j.
4/'-*'
,
49,000 shares 350 cumula¬
preferred stock (par $5) and 49,000 shares of com¬
mon
par)
prepared to bid on July 7.
were
Aug. 4 filed 2,000,000 shares of
July 16 (letter of notification)
Mich.
stock, the
$4.50 dividend
for
100.55
sale will be negotiated.
(9/15)
Inc., New York
Official Films,
•
bid
terms as they
posed sale from' the competitive
of class A stock and 1,500 shares
Price—Class A, $102,50 per share and
class B $100 per share.
Inc.
which this group
Morgan Stanley & Co.
Underwriting—The SEC on Aug. 23 exempted the pro¬
deceased persons.
.y-.
Enterprises
general merchandise and
Van
36,666
associates
same
shares (no par) capital stock. Un¬
Proceeds—Stock is to be
y/Zyy:4/ y"
Northern
tive
(letter
prepared to submit July 7.
Sept. 2 filed 500 shares
(letter of notification) 78,000 shares (25c par)
stock and 1,925 shares of $5 cumulative pre¬
Aug. 6
was
4 4"V
L—For sawmill machinery
Kansas Soya Products Co., Inc.
Kold-Hold Manufacturing Co.,
" ['
Quebec Oil Development Ltd/ Montreal, Can.
sold from the estates of two
•
Industries, Inc., Clearfield, Pa.
ferred stock.
Underwriter—Kenneth
For additional working capital.
;
•
derwriter—Blyth & Co., Inc.
Aug. 31 (letter of notification) $10,000 common stock
and $20,000 preferred stock. Price—$100 per unit. -Un-;
derwriting—None. Expansion of production facilities.#
common
^
for
$4.50 dividend, which compared with the
and
"4# '
.<
National Bond & Share Corp.
y/4
Aug. 2
!•:
a
bid of 101.65 for $4.40 dividend stock
Un¬
Proceeds—To pay part
Ivey & Co.
J-D
stock with
receivable,
' '*.V-O* ?}-
A group headed by the Union Securities
Corp. and White, Weld & Co. on Aug. 4 bid 100.90
Temporarily deferred.
the Yowell Drew-Ivey Co.'s common stock, the remain¬
der of the purchase price to be paid from the cash funds
of J. B.
u
for sale, but the management declined to
up
accept the bids.
July 14 filed 65,000 shares ($50 par) • convertible pre¬
ferred stock. Price and dividend, by amendment. Un¬
derwriters—Goldman^ Sachs 8c Co., New Vork; Piper,
Jaffray & Hopwood, Minneapolis, Proceeds—TO retire
$3,000,000 of bank loans and general corpora^ purposes.
& Co., Charlotte, N. C.
(J. B.)
vc—
put
was
National Battery Co.
Frechette, Hartford, Conn., is the '
IJ. S. authorized agent and principal underwriter. Price
—$1 each. Proceeds—To construct milling plant and
purchase equipment; 4 4';- 1<"
v4 *
^
,-v.>T
•
stock.
common
Underwriter—Paul E.
•
!*:
i
1,500,000 shares
par) cumulative pre¬
Proceeds—For property additions and im¬
provements. Bids—Company, Aug. 4, received two bida
on
the proposed issue of 200,000 shares of preferred
stock, but rejected both. On July 7, last, the same issue
Cooperative Wholesale,
Minneapolis, Minn.
Midland
^10,000,000 borrowed by Indiana Service Corp. and
a.m.
June 11 filed 200,000 shares ($100
ferred stock.
Inc.; Harriman Ripley & Co. Proceeds—To prepay $6,BOO,000 of bank notes borrowed for construction and
Corp., 30 Church St., New York, before 11:30
Sept. 14.
:
*'
'
Public Service Electric & Gas Co.
company's facilities. Registration statement effec¬
Sept. 7. Expected Sept.- 28,
4
general corporate purposes.
—For
.
Silver
Ridge
Indefinite.
Mining Co., Ltd., Nelson,
B. C.,
Canada
Aug. 24 filed 1,106,600
shares of common
Underwriters—Harry P. Pearson,
stock (500 par).
managing director of
Fudge and Victor Semenza, co-.
Co. Price—300 per share U. S.
Proceeds—For exploration and other develop¬
company,
and Richard K.
partners of Pennaluna &
funds.
ment work,
4;4;.;y.:
tc pay off loans and for
other purposes.
(Continued on page 38) - " j
^
*
38f
(1034)
THE
COMMERCIAL &
FINANCIAL
CHRONICLE
-
(Continued from page 37)
^
•
ilege of conversion at any time before
redemption on a
share-for-share basis for common stock
($10 par). To be
offered at $25 per share without
Southwest
Airways Co., San Francisco, Calif.
Aug. 31 (letter of notification) 23,750 shares Of common
stock.
Price—$1.26 per share.
No underwriter.
For
working capital.
crease
;
,
(9/17)
Aug. 24 filed 22,000 shares of $2.60 cumulative (no par)
preferred stock.
Underwriters — Paine, Webber, Jack-
& Curtis; Stone & Webster Securities
Corp.; Rauscher, Pierce & Co.
Price by amendment.
Proceeds—
underwriting.
).
<
Sept.
To in¬
Proceeds—For general corporate
To pay,
in part,
bank loans used for construction pur¬
poses:
y^.;,
Pioneer
/
•
Underwriting—None,
for
Engage in automobile insurance.^
Squankum Feed Supply Co., Inc.,
Farmingdale,
New Jersey'
share.
(par $10).
Wisconsin
(letter of notification) $150,000 20-year 5%%
sinking fund debentures.
Price—102.
Working capi¬
tal, etc. Underwriter—Fidelity Securities & Investment
Co., Inc., Asbury Park, N. J.
Tabor
April 2
Lake
filed
Gold
300,000
Underwriter—Mark
Price—60
cents
ments.
.
•
Tennessee
Gas
&
Co.,
preferred
v
Transmission
Wheelock
&
ing—The
offered
Cummins, Inc.;'Glore, Forgan & Co. and
additional
to
shares
common
of
7
filed
400,000
Underwriters—Stone
shares
&
($5
par)
stockholders
Webster
Securities
subscription at $13.50
stock.
common
Corp.
tional
and
White, Weld & Co.
Price by amendment.
Proceeds—
For expansion of the
company's pipe line system.
Tide
Water
of
Power
2% serial
ihe
notes.'V):)
held.
'
The
for
I
y*
1
filed
25
Co,
$6,300,000
Trenton.
Chemical
■y
Detroit,
first
•
preference stock ($2 par).
Underwriter-Carr & Co., Detroit.
Offering—To be Offered at $2.25
per share.
Proceeds—To build and
equip a plant and
replace working capital..
,y
i
;
:
;
vertible cumulative preferred stock
($10
3Wnch hot-rolled i
10,000 shares of
outstanding
stock from 625,000 shares to
1,875,000
shares
by" the issuance v to
stockholders
f of
two
additional
shares for each share now held.
The authorized number of shares
will be increased from
840,000 to
to 2,500,000. It is planned to
increased
nual
stock
on
place
$1 an¬
share:
per
Proceeds—
Lehman
Bros.
a
dividend
basis, payable 25
quarterly, which would be
equivalent to 75 cents per share
standing stock
extra
and
been
paid
Reuben
50
the
cents
every
E.
present out¬
which 25 cents
on
Brothers
be
President,
to
time
:'y[
■■
*
as
North
stock
common
Corp.
-
Fansteel
100%
Vascoloy-Ramet
This
ownership
which
will
Among those participating in
public offering on Aug. 19
of
300,000
stock,
by
A.
G.
shares
of
$1,
cumulative
red stock
convertible
(without
Oil
&
Continental
Other
participating
in
Kebbon,
this
div-
offering
&
the fol¬
II.
Davis
$4.37
stock,
*
1
The Burson
*
share
with
for
of
the
ft
letter
net
a
per
with
Exchange
Williams
be
be
added
to
*
Knitting Co., Rock-
Ero
)
stock
,
12
taxes,
per
.
1
net
$700,219,
'
ft-
ft
•.;
of
after
income,
equal to
Halsey, Stuart
nounces
•
that
ft
'
;;
Co. Lie.
the
*
first
1, 1967, of (he Cudaliy
Packing
Co.) are
now
ready
and
ex¬
changeable for the' temporal-y
"
*
jA; Ei Staley
Federal!
// *
-r
■
■
Decatur, reports a net profit of
$1,779,235; -or $2.05 per common
share, for the second quarter of
1948, compared to $1,113,166, or
$1.26 per common share', for the
first
three
the
months: of
six
30, i943
'year-l
this
June
months -ended
net
profit- Was $2,892,401,
equal to $3.31 per common share,
compared with
per
$6,281,786, or $7-31
share, for the first
common
half of
1947
wheli earnings
affected
by a
ventory gain; •
M
'u
'•
'
■-
wen)
in¬
non-recurring
iv
^
•
•
•
Vd
Record sales of $18,920,909 were
reported by Thor
Corp., Chicago,
a major
producer of home laundry
ended June
higher
period
than
in
the
30, 1948.
in
any
six
months
These were
comparable
the
company's 41-ye3r
history and reflected a i6% gain
over that of
$16,246,724 in the first
six months of 1947. Net
profit for
the first half' of the current year
bonds originally issued.
The ex--; was
$1,428,052, or-$3.24 a share,
may be made at the of¬
compared with $1,607,909, or $361
fice of the bankers at
35 Wall
a-share,- in the six months ended
St., New York, N. Y. •,"> .)June 30, 1947.
This decline m
changes
•..
.•
y
Cory
turers
•;
•,
ft
Corp.,
of
.ft
..ft
,
Chicago
glass
coffee
,
.
'
.
manufac¬
brewing
equipment, Fresh'nd-Aire electric
I
Manufacturiiig Co-]
appliances,' for
an¬
permanent
1948
income taxes totaled
$330,456, or
51 cents
per common"share.",
"i
For
.
in¬
ended / June I 30,"
■
&
mortgage « sinking
fund
2%% bonds, series C, due May
/
$739,167, equal to $2.11
share, as compared with net
sales of $7,426,881 and
het
after taxes, of
share, for
ended July
31,
months
;
:
to
of
-
as
{
$6.25
sales
income,
per
against $247,112, or $1.18
per share, for the
corresponding
period last year.
: V
Bloomington,
July
ft
„
par
working capital.
net
six
1948,
was
proceeds
men ?
.
Eureka
offered at
net
reported
and
*
,
the
of
con¬
Earnings of Harrison Wholesale
Co., Chicago, after charges and
income taxes; amounted to
$298,-
Manufacturing Co., Chicago,
$7,735,923
Rockford
Sewing" Machine
Co.,
Belvidere, for a 'reported price
of $5,000,000.
ft'
for the eleven months
ended
31, -1948
Development
organized
by
369, equal to $1.42
Corp.,
will
Harmon
hfk 1/;;■*$
-lional
of
the
Securities and
Commission Aug. 9
share,. the
annual
sewing machine industry,
Aug. 31. purchased the Na-
on
tome
that" sales,
arnounted:to $4^^437;
profit after provisionTor
even
vacation
in the
$4 preferred
notification
common
period
July,, 1948*
ft ;v-::ft
recently
headed
cern
and
covering 4,700 shares of $5
value
J
a
share
stock
announced
ap¬
1948,
preceding
ft
of
12-day
■
months' period.
A
for
proximately $900,000.
preference
per
current liabili¬
sub¬
$13.86
or
fiers,\
shutdown,
Co.,
'
cluding its subsidiary, Cory Corp.
(Canada) Ltd., for the six months'
per
; V The
^
Halsey, Stuart'& Co; Ine^"iSaldmon
Bros;
The]
First Boston
Corp.; Kuhn, Loeb & Co., and Blyth &
rail-
&
proceeds will be used to
pay off
bank loans.
bankers
McCormick
prior
which
were
Co.,
First
Securities Co. of Chicago, Straus
& Blosser,
Betts, Borland & Co.
and Dempsey & Co. The
offer-)
ing was oversubscribed. The net
prefer¬
accrued
$6,491,647,
of
per
Paul
value) of
Refining Co. at
Illinois
of
lowing Illinois investment firms:
$1.20
par
$24 per share and
par
common
compares
1
is'expected,"will
and
30,
:-,-v
(9/J29)
bidding on or about Sept 29. Probable bidders:
Harriman Ripley & Co.
and Lehman Brothers
(jointly);
share, for the fiscal year
Aug. 31, .1947. Current
asT
July 31, 1948 amounted to
the
'
for
up
street
.
which
•
■
August- -26" reported:
compaii'y has 'under consideratioi)
approximately $8,700,000 in equipment
trust certificates'.
'The offering it
Net' profit,
with
$2.86 per share of
$4 cumulative
preferred
stock, " for
the - 12
months ended
June
Motors Corp., Muskegon,
Mich.,
publicly
of
*
J
was $70,923, or 20 cents
share. Sales for the
monthrof
August, 1948 are estimated at
Co.
other
7
.
ties of $1,100,042.
and
at $7.50 per share
Becker &
Co., Inc., on Aug. 10
offered 350,000 shares
were:
Co.
by
Rys.
and
.
$3,094,055,: against
income taxes, amounted
to $5,343,141 equal to $11.41 per share
of prior
preference stock -
filed
of investment bank¬
headed
idends.
held
the
*
sets at
"
■
.
per
v
•
plans for sale of
-y
>
ended
subsidiaries of Philadel¬
phia. Co.), after
charges and Fed.
equity in
unit,
Waukegan, contains 80,-
*
Ashland
-
share for the year ended
■,
>
equipJ
y Southern Railway
(Inc.);
,
$2
Way
000 square feet of floor
space.
30,
1948,
compared
with
$9.47 per share for the preceding
A group
sidiaries
Metallurgical
Corp.,
Chicago, on Sept. 1 acquired
located in
June
*
Pittsburgh
'
*
continue to be operated under its
own
name
as a division of Fansteel. The plant of the new
and subsidiaries will approximate
*
;
)
..
Co.ynd
Co. and
:
Fansteel-
gives
earnings justify.
Total in¬
dicated earnings for the
company
year.
;
..
company plans sale of
$11,000,000
m.ent trust certificates the end
of this month.',
Probable
bidders:
Halsey,- Stuart & Co; Inc.; Harriman
Ripley
&
Lehman Brothers (joiptly); Salomon'Bros, k
Hutzler; Harris, Hall & Co. (Inc.); *- -> 'i •> c
v
gondola
&
The. consolidated net:
income
of Standard Gas &
Electric Co.
and its
subsidiaries (excluding
funds.
in
the
per
added
Vanadium-Alloys Steel
stated that it will be the
manage¬
time
(jointly).
division, Chicago.
The net proceeds will •:
to Ashland's general
Vascoloy-Ramet
ment's policy to recommend such
additional extra payments on the
shares from
Harriman Ripley
manufacturers
of
elastic
stockings, has been sold to the
Kendall Co. and will be
operated
by the latter's Bauer- & Black
Blair
&
Co., Bacon,
Whipple & Co., A. C, Allyn &.
Co., Inc., H. M. Byllesby & Co.
(Inc.), Straius & Blosser, Far-:
well, Chapman & Co., The Ill¬
inois Co., and Carter H. Harri¬
the entire
regular have
three months.
Sommer,
Hutzler:
William
cents
each quarter on
&
v-V,
v'r;
Co.
Salomon
con¬
/b./;;.
Sept. 3 reported
/
550
par), with priv¬
& Co.
.
Southern: Pacific Co.
the total cost of which is
expected to be $6,672,340.
Certificates are to be dated Nov.
1, 1948. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Harris, Hall &
Co., Central Republic Co. (Inc.),
son
y
!
;(par; $10L
ford,
capital
on
Sept.; 6 reported company
planning a lar-ge offering o{
preferred stock,
probably in neighborhood of
$50,000°00fl;
Traditional
underwriters,, Dillon, Read & Co. Inc. and
Reynolds & Co.
cars,
("Continued from page 10)
the
Colorado
::V.V
cpnunon
Chicago & North Western Ry.
11 inois
increase
of
vote
Reynolds. (R. J.) .Tobacco Co.:-,
Sept. 4 company asked the ICC for
authority to issue
$5,325,000 equipment trust Certificates to
help finance
the purchase of 20 Diesel
locomotives and
f
10,000 shares of
Public Service Co.
,.
Prospective Offerings
Mich.
Casualty Co., Cedar Rapids
re
I
equipment trust
certifi
15, 1948 and
Corp/'
of/accessory equipment.
Price—$10
Mainly for development; ~ r
Aug. 23 filed 175,000 shares of 6% cumulative convert¬
(letter of notification)
(9/13)
has issued invitations for
bids to be
Sept. 13 for $13,800,000
creating a new series
3pf 414 % cumulative preferred
stock, the initial series to
consist of 75,000 shares(par $100-).
Probable bidders
include The Fir£t Boston
(7/22
Underwriting—None.
ible Class B
August 18
company
j#
\
;
Yeakley Oil Co.,' Alamosa, Colo,
(9/13-17)
United
cn»h
instalments from
used, together with treasury funds, to
complete
purchase and installation 1 nif
April 30 filed
Proceeds—For construc¬
Co.,
to
Sent.
|15, 1949 to Sept. 15, 1958.-Probable'bidders: Halsev
(Stuart <k Co.
Inc.; The First Boston
Corp.; Salofnon Bros!
j& Hutzler; Harriman Ripley & Co.- and
Lehman Brothers
](jointly).
I
Expected Sept. 20.
v
autnority
The certificates will be
dated Sept.
iare to mature in 10
equal annual
outstanding
,:y
Co*, Tulsa, Okla.
icates.
Rights expire
amount of
a;
(jointly); Lehman Brothers and Bear, Stearns
(jointly); W. C. Langley & Co.; Kidder,
Peabody
& Co., and White, Weld &
Co.; Union Securities Corp.,
ers
like
y:-'
*
Strip mill and the construction
& Co.
$9.44
shares
v.
Will be
Stuart & Co. Inc.; The First Boston
Corp. and Glore, For-
new
Sept. 3
r////
Kansas Gas & Electric
Co.
Reived
record
,)
New York Central RR.
be
mortgage sinking fund
bonds, due 1963. Underwriter—Drexel & Co.
Proceeds-
gan & Co.
the
four
Wood.. (Alan) Steel
Aug.
August 19 filed $5,000,000 first mortgage
bonds, due 1978.
Underwriters—Names to-be determined
through com¬
petitive bidding.
Probable bidders include:;!
Halsey,
tion.
each
Utilities Commit
to. $16,468,705
-ire-stock* *2
applied to FPC for
pet. 19 stockholders Will
I;
(9/20)
Salomon Bros. & Hutzler.
to
are
-
Ohio
?
per share at the rate of one addi¬
000 will be used to
prepay a
•
and
for
the
J
Sept) 28. Pro6efed$—To reimburse company for
construe?
lion expenditures made or to be
made; except that $494, ^
Co., Wilmington, N. C.
July 30 filed-80,000 shares (no par) common stock. Un¬
derwriters—Union Securities Corp. and W. C.
Langley &
Co.
Price by amendment.
Proceeds—For construction.
Indefinitely postponed.
..;
v.
vr:*';
Toledo Edison Co*
share
stock
common
v
a
Aug. 25 stockholders Voted to
increase authorized
mm I
mon
from 600,000 shares to
2,500,000 shares (no
narll
Only 100,000 shares of the stock is to
be
sold, probably
early next year.; Probable
underwriter, Union Securhi .1
Corp.-/. fy ryf
'
Ripley & Co., Inc.
^
Sept.
;•
(jointly); Shields & Co.;
White, Wqld & Co. and Kidder,
Peabody & Co. (jointly);
Harris, Hall & Co. (Inc.); The First Boston
Corp. Offer¬
Co., Houston,
Texas
Light
Harriman
stock.
Toronto,
Canada.
Proceeds—For mine developV)'
share.
a
(par $1)
Daniels
obtained
1,184 miles of transmission
system 1
transport natural gas from Texas to
Chicago area "'tad
bf project estimated at
$119,000,000, to be financed hJ
issuance of bonds,
preferred stock and
common stock
1
Aug. 17 filed $5,000,000 first
mortgage bonds, series C,
due 1978, and
320,232 shares ($10 par) common stock.
Underwriting—Bonds will be sold at
competitive bidding.
Probable bidders:
Halsey, Stuart & Co: Inc.; Lehman
Brothers; Salomon Bros. & Hutzler; Blyth &
Co., Inc.;
Mines, Ltd., Toronto, Canada
shares
Power &
194.
'
Co.
recently
Gulfcoast Northern Gas
r
Aug. 31 company
Struct and operate
Proceeds—
y.
Aug. 4
asked
company
permission, to issue up
' / v
;-:
//v .
Co.,
•
per
9
.
ong~te^
bonds.-
Insurance
of common stock
Price—$20
company
Dayton Power & Light Co/
Sept. 3
y v..,;
Aug. 25 filed 18,000 shares
':V-v
although
"v-s
debt, it is reported.
purposes.
Automobile
Oakland, Calif,
3
Illuminating
"
of $25,000,000, this
temporary expedient win?
replaced later this year or
early in 1949 with
a n
be
balance of preferred and
common stock
and lrm??per
son
Western
"
.
credit
United
»
.
Clevetand Electric
Utilities & Specialty
Corp. (9/23)
July 29 filed 41,000 shares of 5% cumulative convertible
preferred stock ($10 par).
Underwriters—Herrick, Waddell & Reed,
Inc., and George R. Cooley & Co.,; Inc.
Southwestern Associated
Telephone Co.
'
capital and surplus.
Thursday, September
profit, it
to
was
announced, was due
the
pany
stepping up by the com¬
of its selling and .advertis¬
ing expenditures.
-
THE
Number 4732
168
Volume
looks
the harbinger of the fall
new issue field.
as
in the
season
Indications
-
COMMERCIAL
than
five
that
are
less
no
banking houses will
be in the running for the bonds,
suggesting that competition for
the
sizable
offering
keen. Offerings of the
will
be
foregoing
dimensions invariably bring out
the largest number of bids. '
4
FINANCIAL
&
the State of New York.
The
CHRONICLE
com¬
conducts a general invest¬
ment business specializing in se¬
pany
curities
of
American
Mr. Davis has been
the
New
York
the solution Of the
housing ills of
the
majority of Americans ,to¬
$10,000.
As
monthly
total
day." y-/-:
construction
insurance
companies and in their markets.
member of
a
Stock
Exchange
since 1941.
(1035)
Ever
has
•*':
r
since
been
•
spring
urging
lending
new
on
between $4,000 and
be
The underwriting industry
activity
good order..-;.
of increased
season
with its house in
to
had
opportunity to
work off
in
thinking.
The New York Stock
firm
Co.,
the "jumping off" line
shelves
their
pretty
of
well
Shelby
William
110
Davis
Street,
bers
New
the
presumably reflected
the
past
traders
has
served
Vice
4
dent in
as
Presi¬
-
charge of the investment
department of the Trust Company
of
Georgia,
now
of
business
30,
the" expected
at
Kenneth
buyers.
latter, apparently,/ ihfe
But the
not
of
mind to
a
be
and
rushed
York City, annbunced the open¬
ing of a municipal bond depart¬
close
business
of
C.
LANOLEY.
Treasurer.
METALS
COMPANY
THE
TEXAS
COMPANY
Reynolds Metals Building
Richmond 19, Virginia
>
PREFERRED DIVIDEND
7:
regular dividend of one dollar
thirty-seven
-and
one-half
cents
($1,375) a share on the outstanding
A dividend of 75^ per
share or three pet
value of the shares
Company has been declared
day, payable on October 1, 1948,
cent
(3%)
5Va% cumulative convertible pre¬
ferred stock has been declared for the
par
on
September 30, 1948,
payable October 1, 1948, to holders
quarter ending
of The Texas
this
stockholders of record
to
record
of
shown
ly
share
i
of
issue
an
cumulative
sale
of
temporarily
unsecured
pre¬
Edmund C. Stanton Dead
Edmund
senior
Courtlandt
firm
died at his
of
Stanton
summer
At the
to
tors
Co.,
cents per
home at the
held
1948 to
clared
of 57.
age
today,
a
September 30, 1948,
but
over
'"
decided
'
7!
to
forego
construction
de¬
was
been
approved.
j temporary;
current!
of j
The
,
V.-
'*
■'
'
\}\!-t"v
•*;
*
*•>'
to
-
condi-1
tibns before attempting
the senior equity.v
r
4; Trade
the
[
financing, will,,
course, permit the company
await more satisfactory
to
sell
4.
-
\
x
j
*
organization
Another
,
Colorado
hive
been
meeting
on
next.
>
...
called
to
October
'a
19,
4...>..
cooperative
League reported
financing.
more
that
115,000
30. 4
shares, with
dividend.
associations
1947.
a
of
new
75,000
cumulative 4»4%
company
funds
for
standing
an
has
out¬
issue of 160,000 shares
cumulative 44% preferred.
«
,
.Breaking The Ice
7
.
.
4/,
.
.444
.
year
for
of
new
&
scheduled
30-
Michigan Electric Co.,
for next
Tuesday,
Treasurer
York, N. Y„ September 3, 1948
flowing
now
into
institutions
of
stream
a
new
more and more
be¬
able
declared payable October
the
of the
so
a
credit
Total
-
,
by
home-ownership
30
this
$1,852,000,000
year
as
purposes
for
the
a
held
one
on
meeting of the Board of Directors
Mutual,
Inc.
dividend
of
payable
on
holders
on
Directors
has
declared
of
refinancing and
Ralph
.
M.
Smith, West
Mass.,:. President
League,
pointed
to
on
par
the outstanding
of the
stock
value
of
Company,
$1.00 per
October 6,
common
stock
September
1, 1948
1948.
H. A. WAY
iil
i_
..
f
n
hi
M
^
Secretary
Company,
payable November 1, 1948, to stock*
holders of record at the close of business
October 5, 1948.
•
'
At the same meeting a dividend of
ninety-three and three-fourths cents
($.9375) per share was declared on the
Cumulative Preferred Stock 3.75%
Series B of the
Company, payable Nov.
1.1948, to stockholders of record at
close of business Oct. 5,1948.
the
Checks will be mailed.
August 30,1948.
RICHARD ROLLINS
Secretary
CELANESE
CORPORATION OF AMERICA
;
180 MsdUoh
Aranun, New York 14, N. T.
declared
THE Boardthe Directors has this day
of following dividends:
The Board of Directors
a
quarterly
thirty-four cents per share
September 29. 1948, to share¬
record as of. September 16,
FIRST PREFERRED STOCK
,84.75 SERIES
quarterly dividend of
per share on the $4.25
Cumulative Preferred Stock and
dividend of $0.15 per share on
Common
,
Principal Underwriter and
1
.
Investment Manager
ness
September 17, 1948.
Stock; both pay¬
7% SECOND PREFERRED
holders of record at the
on
record at the close
Transfer
closed.
books
will
not
be
Checks will be mailed.
of business Sep¬
tember 17, 1948.
COMMON STOCK
close of
September 15, 1948.
STOCK
regular quarterly dividend for
the current quarter of $1.75 per share,
payable October 1, 1948 to holders of
The
1, 1948 to stock¬
the
business
'
holders of record at the close of busi¬
meeting thereof held
August 31, 1948 declared the
$1.0625
a
regular quarterly dividend fof
the current quarter of $1.18)4 pw
share, payable October 1, 1948 to
a
able October
E. E. Crabb, President
re¬
of Can¬
Dry Ginger Ale, Incorpo¬
regularInvestors
I
.<
pe¬
60
tember
at
"
share, payable Sep¬
30, 1948 to holders of record
cents
per
the close of business
September 17,
1948.
conditioning of homes.
ville,
of
Board
This over-all figure includes
loans for the
share
the Cumulative Preferred Stock Con*
vertible 4% Series A of the
rated, at
Dividend No. 32
$1,751,1947
1948,
August 30, 1948, a dividend of
dollar ($1) per share was declared
on
to
similar
per
of record at the close of business
on
PREFERRED DIVIDENDS
At
ada
INC.
to
against
50tf
share, to holders of
THE ATLANTIC REFINING CO.
DIVIDEND NOTICE
INVESTORS MUTUAL,
the
amounted
of
The
savings and loan associations for
June
the
of
CANADA DRY
*
extended
pre¬
October 6, 1948.
on
dividend
ber 15,
purpose
year,
decrease of 8% from 1947's first
.
Company to holders of
ferred stock of record at the close
common
—
financing ^existing
that only 271,000 rnorLmade for that
15, 1948
outstanding preferred stock
essential tb
funds for
gages were
account of the
on
quarterly dividend period
ending October 31,1948, has been
of business
ATLANTIC
funds
buHding
share,
per
has been declared payable Octo¬
struction loans trimmed the availr
riod.
comnetitive
financing
keeping
existing..dwellings, continued to
comes
below last year. The greaterthan-ever emphasis on new con¬
000,000
first mortgage bonds of the
Indiana
home
and
'
Offering for sale at
bidding of $25,000,000
4"
existing units helps
during the first half "Therefore, the program of thrift
1948.
•
than
rather
units
new
for transfer of
The
now
larger percen¬
available mortgage
the
of
run
all
The
of
a
create
issue
larger and
tages
represented a ' sharp
the only effective cure for the
upward climb of 40% from the
82,000 new units financed by the high prices of homes," he said.
six months.
to
$ 1.75
current
on
September 13, 1948.
homes
This
^corporation
stock
of
use
durihg the first half Of this
preferred
I
asso¬
banks,
will ask approval of
its pro¬
posal to amend the certificate of
I
1,
;
new
loans,f totalling; $524,- attack the problem of high prices
000,000 were made for new homes on homes, at. the source.
from the. first of the year, to June
"Availability of more houses is
homes
At that time the management
.
for
j -Conversely, the numbers of
public Utility preferred loans made- for the financing of
~} issue came into prospect with the
| announcement that shareholders
t of the Public Service Co. of
sptecia;
October
A. B. TUTTLE,
New
mortgage
of
•
and
4Another. Utility. Preferred
J
Stock, payable
A dividend of l3/4%, amounting to
A
ciations
or per¬
mission to negotiate the sale of
the stock, 200,000
shares, has
j
the $3.50 Cumulative First
the first half of 1948
than 3,650 savings and loan
.
.,
Since then application
4
on
of business
by the nation's savings associations than in
With the approval, of the Se^
any Corresponding period on record, the United States Savings and
j
purities and Exchange Commis- j Loan
League reported on Sept. 4. It was indicated, moreover, that
•j sion the company 4s borrowing
the
average
size 4of
the
loans.S—:—
;
~
$50,000,000 on 2 and 2*4% notes,;
$4,560, witnesses to the prevalence that the shift of savings and loan
!
due not later than April 15 next.
of low-priced home construction association
financing to more and
.The company first rejected bids financing, such as the League has more new construction has helped
ij for its stock without even opening been urging its member associa¬ keep the nation's home building
? the
two tenders received, and on tions, by; 3. special campaign, to machine at top speed.
He said>
the second
occasion looked ;the concentrate upon during 1948.
jj: also, that the over-all effect of the
the sale.
Company,
DILLARD, Secretary
August 31, 1948.
Ciwli,
dividend of 87 V2
share, for the period July 1,
1948, to holders of record at the close
low-priced
on
More money was channeled into the construction of
in
bids
be
by
PM WMM
'
a
' J
group of commercial banks.
not
mailed
.
meeting of the Board of Direc¬
Ex¬
&
on
First Preferred Stock
Stanton,
partner in the Stock
change
Savings associations' lending has been concentrated
through
notes
be
will
Manhattan
AMERICA
Dividend
Record Funds Going into Home Construction
stock, has arranged to fi¬
itself
nance
the
>
of
Dated
CORPORATION j
OF
Floating Debt
ferred
the
will
books
Checks
Bank
Preferred
Pubjic Service. Electric & Gas
Co., which twice turned down bids
for
been
transfer
closed.
.
■
the
on
has
stock
sole
RADIO
business
twenty-five cents (25^)
outstanding common
declared
payable
October 1, 1948, to holders of record
at the
close of business September
24,1948
a
Treasurer
from the firm*
of
close
A dividend of
transfer books will remain open.
a
•
1
the
at
September 24, 1948,
by
the books of the company at the close
of business on September 3, 1948. The
as
COMMON DIVIDEND
The
,
ment.
Kenneth C. Ebbitt, former¬
partner of Campbell, Phelps
& Co., New York, and later of
back
in
stride.
Meantime
ob"Ryan, Moss & Co., Newark, N. J.,
servers report the Treasury maris manager of the new department.
•ket steady to firm though, as the
;
The
firm
was
organized
in
"keystone" of the general situa¬
April of 1947 following the resig¬
tion, subject to the closest kind
nation
of Mr. Davis as
Deputy
of scrutiny.
'
'
*
Superintendent of Insurance of
evidently it will require the pass¬
age of a few days for them to. get
not
REYNOLDS
,
W.
August 6, 1948
having retired
payablp
will
September
on
1948.
15,
Street, New York City,
James J. McLean
1948,
books
BONNYMAN, Treasurer.
ALLYN
125 Cedar
C. Ebbitt
15,
Transfer
stock
of
this
Company,
payable
25,
1948.
to
stockholders
of
the
proprietor of S. R. Melven & Co.,
on
reappearance^of
September
1048.
P. L.
'
-
98
closed.
The
Sydney R. Melven is
iu
the
Cents
capital
record
L. H. Lindeman
Melven Sole Proprietor
!
up
No.
September
on
stock
by^
choicer issues
the hope of a quick resale
of
some
.
!
seven
years
j. W. Means
DIVIDEND
the
Mr.
little fn i
a
of "sliarpshooting"
who were picking
way
be
Means for the
|
recess
Company, at
declared an Interim
by The Texas Company and its
'■/.: predecessor.
-
Day
this
September
184th Consecutive Dividend paid
change.
pick-tip whic¥ pre- 1
Labor
.
close
Ex¬
Stock
'
The slight
the
1948.
York
j
ing, if anything, a bit slower than
•immediately preceding the sum¬
mer-end holiday.
'» - * " ^r J
STOCK
has declared a dividend of
pet share on the Common Stock of
Company to stockholders of record at the
this day,
third
quarter
of
1948,
Of
($.70) a share, on the outstand¬
fov
NOTICES
cents
the
of
New
Currently dealers reported >,the
remains;' prptty^
ceded
ing
of
Directors
part¬
Street,
W., mem¬
N.
&
much in the doldrums., with trad-
.
Seventy
COMMON
50
384
held
meeting
dividend
of
.
The above Company
N. Y.
ietta
seasonaL market
;
be¬
Board
,
Louis, Rocky Mountain & Pacific Co.
Raton, New Mexico, August 27, 1948
Courts
x
cleared of such accumulations,
The
No.
June,
over
,','v
& Co., 11 Mar¬
,
Exchange
Cullom
in
ner
Shslby Cullom Davis
the j
took full advantage
of the situation and are coming
with
Trust
a
come
5,
September 8,
will
and
York
New
DIVIDEND
a
the
of
Kenneth Ebbttt With
trade they
down to
W.
_
Vice-
a
Company
Georgia
X-Z-Cx'i
reports
current
From
as
Honduras Rosario
&
Broadway,
$100,000,000
42.3%
DIVIDEND
Mining Company
120
President
instances, carried over from
earlier undertakings,! ; '
&-'f
resigned
of
the
ends, rather large in a
odds and
,
bankers'
on
has
-
.
and the Federal Reserve have
ury
-GA.—i James
ATLANTA,
Means
of the Treas¬
moves
New York
.
bankers and dealers had
of August,
few
customary ; interest' in. the
that it will give a clear cue
what, if any, effect, recent
anti-inflation
During the summer lull, par¬
ticularly through the latter part
an
Partner in Courts Co. ;
than
of
'
1947.
St.
the opening Up of the hope
proaches
fall'
ap¬
increase
an
DIVIDEND NOTICES
James W. Means to Be
reached
the
The
investment fraternity will
watching this one with more
result, in June the
of loans for home
a
League for the first time in the history of
its members to the business and this represented
concentrate their
homes priced
39
INVESTORS SYNDICATE
Somerof
the
the certainty
\
a
:
%
WM.
J. Williams,
V. Pres. & Secretary
.
.7H'^ vO,
R.O. GILBERT
Secretary
Minneapolis. Minnesota
September 7, 1948
M-%
40
THE
(1036)
COMMERCIAL
CHRONICLE
FINANCIAL
&
Thursday, September
9, 194
industry
BUSINESS BUZZ
•
bring
few
a
but
^
client^
more
^
connections
•
The
government is not
excite
the new
about
Behind-the-Scene Interpretations
Iron the Nation's
generally,
in
especially firms with
tablished financing
nn?
insurance i1 for
manufacturers,
Capital
provS
section
housing
originated
since
with
than with the
this
rain
Congress
Administration
On the other
hand, the govern
mentis enthusiastic
,
WASHINGTON, D. C.— If any one wants to see what a beguiling
Federal agency does when it bids for more power, more influ¬
Job
providing
and more promotions, he should pick up and
glance through a copy of the Federal Security Agency's latest bro¬
chure, "The Nation's. Health,1 a^—
Ten Year Program, a report to the rancors — all of these —must be
.President
by
Oscar
R.
Ewing, ameliorated if we ultimately are
.Federal Security Administrator,"
to achieve, for every one, a full
measure of abundant and physical
The commas in this title were
supplied by this writer. Commas, health," expounded Mr. Ewing.v
ence,
more
money,
units
He
however, were not in the title. By
meat, varied typography, the use
•of
commas
eliminated
was
way which
in
the
Since
artistically
cannot be
shown at private expense.;:
-
It is
not
wonderful
a
looking book.
its eye-appealing
!
-Just to
|
at
is
it
anyway,
fair
to
;
believes? in
Ewing
probably
impute
ing to hold
the
}' -of this dull Government Printing
j Office style in this document, and
it
is freely
made available in
individual's
tension
at least
alarm
p: v;'
*•
! Now
|
•'.
* •
* -
•:
1
*
it is different with
.
vivors'
Trust
printed
in
columns
Fund.
dull
of
figures
io
is
This
out; what
One
mean.
stand
tell
;
■>
be
■,
Nevertheless, they'
story
of
oper-j
,ated under the eye of Mr. Oscar
by
,
is
the
unable
lionary
degree to
to
which
persuade
Congress
to
he;
heaven
he
could
eat
*
*
anarch: cf
the
statistics
toward
a
non-government person
would call the
insolvency of the
social security "trust fund." What
well-
a
German
of
"Listen, Stupid!
You
right there when the broker told
were
to
me
Now
promised.
:
Then,
sit
on
shortage
v
white
over-simple
j
explains what happens
when more money will be
going
out than comes
in, even assum¬
ing
\
■
the
"trust
vested."
*
.
Mr.
;
-
'
■
j
charts,
/
■■
and
spaces
..
fund"
was
;
•clear that
ing
and
/this
the
in
a
some
part of the
,
pay
for
manner, /is
national health
;
.
coal
;•
fundamental,
With this
$4
billion
but
Ewing
to
our
many
important
success."
brush off of the
paltry
a
gets
year
to
program,! Mr.
the
meat
of
the
Jhealth problem.
;
"Our
standard iof living,
/conditions
under
which
the
people
/ live and work, the food they eat—
all
*.
affect
health.
the
strains
sense,
may
to.
final
cost
The
revision of
has
Financial
been
r
Donald J.
added/to the
are
to the
it
vestors
to rise
revival
of
he
modify
handle
be
loan
a
his
compelled
to
attract
on
a
enlarge
factory
so
as
{or
to
war.
contract, the cost of reconvert¬
ing to civilian production would
be
disallowed.
The
Armed
Services would allow as a de¬
ductible
cost
advertising
in
"trade
,
papers,"/ not
otherwise
defined, but all other advertis¬
ing would have to come out of
profits.
i
'■v,'':.
•
,
*
*
.
*
Although belittled by President
Truman, the new housing law
U. S.
the bait.
for
Nevertheless, when
is
a
Lonsdale Co.
•
Seatex Oil
:
The
;
unworkable,
on
ance
with
was
last
40
for,
pre-fab
supplicants
: 1
so
; {
Trading Markets:
;
for
Oregon Portland Cement
this
Riverside Cement A &
one
-walked off with the money. The
chief problem was the lack of
pre-fab
it
was
financing
who
house
said.
on
Congress provided
the
this
i
aid
erected
the
Hence
Ralston Steel Car
-
pre-fab ;
accommodation, only
; government
the
retailer
HA. 2-8780
Teletype N. t. 1-1397
housing manufacture. Out of 25
;
Exchange PI., N. Y. 5
"
special insur¬
year:
1919
will' be
pake it pbie .workable!
So it
ESTABLISHED
Membert N. Y. Security Dealers Asf*
third
agitatioh-to broad^ the^beri^iti
io
;
V
govern¬
it has,
speak, got its man
base.-Next year there
M. S. Wien & Co.
of
has got a power on
books, even if the
to
Corp.
Finishing
rental !
substantial volume
a
Linus F,
Dorset Fabrics
j
business.:;.;■ ;<!. • 'v <v" v-'
to
order, While the;
cost; of altering - the
factory !
would itself be allowed in the
,
to
Chronicle)
—
Jersey Gas
Belle Isle
in
housing projects is expected to
familiar with
disallowed the inter¬
would
on
Financial
Reiter Foster Oil
>
minority
insurance
power
pay
The
South
as
or
too many airings
government aid for in-
ment agency
the
statute
est
to
Co., Inc., 53^ West Turon Street.
agreed by all,
a
;
Belanger is with King Merritt &
are
would be
some
Chronicle)
4
& Co.',
Building;; members of
level
fish. There
principles is
after
perhaps
accounting practices used by industry. Thus, a manufacturer
rela- ?
/
•
Forces.
seen
avail
provisions.
new
staff
be
of the housing
bureaucracy, that the scheme of
insuring a yield of 2%% on
rental projects will catch few
set
these cost principles very often
little resemblance to cost
oil heat¬
shifting to oil from
the
bear
So,
the industry
thinks, the
bright consumer will think twice
before
"uniform
announced
who
to
investors
It is generally
except
bit of ire
a
given the final once¬
by the munitions board.
;;
;
other fuel.;;
be
Those
the
applecart,
up
Armed
near
and
ignore the
accounting practices assert that
note materially
upset the
the
remains
builders
been
over
optimistic
at
The
the
';
LERNER &
site—so
this
some
Spokane Portland Cement
for
{year
aid for;
dealer
in pre-fabs.
Even
hasn't excited the pre-fab
J:;
,
;
'
C0.|
Investment Securities
>
.
t.'
h
10 Post Office
Telephone
Square, Boston 9, Mass.
Hubbard 1990 Teletype BS 69
ample health and
other factors will make
contributions
has
consump¬
the
used,
polit¬
* ^ ;■
proposed
proposed
about
other acci¬
new
All
all
these
be¬
of restraints
a
principles" to be instituted
fourth and
•
higher than last winter's levels.
The rush to substitute
oil for;
."medical services
everywhere is of
course
away
maintained
more
obscure
problem.
J "Provision of
y
to
of
the
over
hap¬
is
« "
likely to work
of cost
appraisals of
the
outlook
have
been
pred¬
icated upon the assumption that
consumption : of
oil
will
be
so-
laboratories,
wherewithal
It
however*, is
equipment.
tively
press
merely providing
hospitals,
level
more,-
throwing
supposed medical phases.
Mr. Ewing makes it
crystal
'doctors,
is
supply
now
frontiers of government sup¬
port for housing finance. How ex¬
tensively these new aids will be
"■
.v;:'■/..\'v-v #•■•/
turn¬
are
the
or
the installation of
health program"
widely reported in the
and
the
In the very near future business
bring about shortages. What is
feared
•:{ >■ .'
v.;
a
ical bUSt.
tion being expected to run close
to supply, these accidents would
its
:But
but
/
;
♦
the
by the-special session of
July-August adds substantially to
their mouths. So the trust-bust¬
ing session proved to be
interrupt transpor¬
production, including
or
strikes,
,
"in-
Ewing's latest bid for
{ called "national
ior
is
L'j:
t*
local
threatened
winter.
storms
are
tation
of the rethe trustees. And nobody
large type and abundant
with
'•
except
and
dents which
around to get a copy
<
that
ginning to fear this optimism. If
look
J. 3»ort of
1
Stoetzer, Faulkner
(Special
passed
ing the floor, the little fellows
hardly got a chance to open
to
industry
of
mittees of Congress monopoliz¬
sources
next
that
pens
ago
to
Pills,
;!
PONTIAC, MICH.
com¬
tempor¬
industry
as
the small business
industry
any
various
staff member
a
oil
outlook,
and
predicting
that
there; will be no heating oil
there
have
you
W.
With King Merritt Co.
securities!"
my
ran
by
ing optimistic
'—I,
too,
avert
of
one
'•»
semi-official
vide the pensions which the Con¬
generation
to
shortages.
today,
a
lawyers and
Taft
winter
hence, will consent
heavily to pro¬
half
Leon
Itroit Stock Exchange.
some com-r
occasional
to
icot^
voluntary
allocations
plan, the industry has worked out
a
system whereby local oil sup¬
plies can be pooled legally next
to tax themselves
gress
government
with K. H.
John¬
some¬
of the situation. It did. Under
the'
ithe future of social
security pen¬
sions will lay
in the question
"whether the youngsters of
generation
and
now
Co/-
(Special
shortages, it would be able to take
figures show is,that the time
inexorably approaching' when
a
these
care
"the
is
new
:
{ DETROIT, MICH.
•
What you can read in the
report
the trustees is the inevitable
what
where in
cases
supply
arily put. Then the
was
saying quietly
for
*
first
Stoetzer, Faulkner Adds
the
..'j
munities the
the
wave
earth.
on
.v
.
In
of
'
a
broader
competitive
living, of financial insecurity and
conditions, of discrim¬
inatory practices and community
economic
»>•■. "1
fighting
:
isolated
reac-i
a
statutory wand and thus bring
<"
of
the
R.
*•
are
&
son
or
j the
Congress and the Administra4
Ewing, who is only limited [.
tion were all steamed up over the
In his power to end all men's
j heating oil shortage, based on
ills
I/I
j";
ury
There is a curious paradox to
the problem of the oil supply for
domestic consumers. Last winter
great,
social; experiment being
•
another
any
l^cNamara
thing besides substandard housing-
slightly;
literate to under¬
them.
a
for ;*
rounded diet and live in
figures;
those
has :to
economically
tension
that
so
unreadable. Nobody attempts to;
{ ^peil
million
the
With R. H.
Johnson
o
competitive i
purpose of holding down a job
almost
are
the
elements
Its i
GPO; style.
too cold
or
industry
the
for
,
too rainy to work, for otherwise
he would be subjecting himself
report of the trustees for the ;
Old Age Insurance
and Sur-
,1
days too hot
or
the>
year
of
kinds
'ORTLAND, MAINE—John M.
days too good to work
on
by
pass
.
all
probably would be
achieved
and
clock away and relax in
his bed
of
•
should throw the
man
a
to
this
homes.
volume
financial props/
contribute to his ill health. But
«very newspaper reporter's office,
expected
without
job would increase
a
the
case,
an5
insur¬
time in history—and this W
*
]
now
ord
is ;
to him the
the sake of competitively work-
•
any
higher loan
individual
on
n
con
and less
housing units
mark
with.
away
-
-
sources
-
suggestion that for an alcoholic
to ' interrupt
his drinking ' for
cover, its superb type, its wonderful layout, its ingenious charts,
is to invite reading. There is none
i
f
look
Mr.
health
:
/
'
done
Ip
,,,
new
apparently believes that;
of competitive life;
be
limits
ance
Titla
builders
costing $6,000
also providing
tension
should
a
to' FHA's
for
insurancelof
ioans to
struction
,
(
the^ew
over
modifications
a
What Tom
mind
Clark really
had in
in
bringing his regional
trust-busting attorneys into Wash¬
ington a couple of weeks ago was
to
provide
a
scores of small
HAnover 2-0050
forum,: whereby
businessmen could
freely all their gripes against
"big
business."
Attending
the
Markets and Situations
:
: r.Ani
mms 4 ro. ae
.
120 Broadway,
v
Actually what happened was
that between
government"
v
FOREIGN SECURITIES
"
.
season.
for
were
representatives
of
small
business. This was to be one of
the Administration's
election bids
to small business
during the cur¬
political
Hill, Thompsons Co., Inc.
All Issues
those
rent
Trading Markets
FOREIGN SECURITIES
air
meeting of the trust-busters
Teletype—NY 1-971
Firm
50 Broad Street
:
c
;
SPECIALISTS
Tel. REctor 2-2020
New York 4, N. Y.
AFFILIATE: CARL MARKS & CO. Inc. CHICAGO
New
Dealers
York 5
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