Full text of Statements and Speeches of Raymond E. Hengren : Investments : Washington Meeting of Supervising Examiners

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Delivered by Mr. Hengren at the
Washington Meeting of Supervising
Examiners on April 7, 19^7

29»

growt& o f the i i r s s t a l . portfolio h #li by

« w e i a l bacio» both ia dalla*

« â relatival?, lo i&o

outstanding âorolepaacife ors* tbs period meorspso&ing tits too « r i s i xmm*

M illiisitr&tod by tìm aooce&paBying chart* %ìmm investments im mssg
year i&rim
g World lav XI Bìt rou^ly 10 tteso il# assom
t raportad for
■to- mrmmÿm&âîx^ ym? la "to first w r ÿorlod*

üorsoraf* the

portfolio aeoomteà fo r abcxxfc oao*fiftk o f total
I&r X, ifeiSM« by in# ® à o f t&a

tooogh World

m r ttoo portfolio insâ grows

to laoìuda allgM&y m m %hm tir#©«fifth s o f t o total*
Däf&rfiag a il o f tfe* other ¿tono la the

fo rtfo llo ,

m w æ ltim tamaâ by t o fadoseal Ctera&BMnt «o o M ftsi fo r also** f*#
of t o total aaouat o f bmfc iaroota«ato e® tba m&ûfusion o f World
iter XI# During to firat mi period* M a l oaoarätlaa aarar oamndod
for aa*s U m 4$^ o f the iOTostsamt portfolio*

fis s s d f M i m o to *

angl*» it is interest lag to asta t o t the fir s t World War lo ft t o

m &mmimk beaks M È k m m z i t i m «ritakcdag «beat ouM&rtli of t o
totem ! lobt as oostparad i&th apfpostaatsly oæ«M&ârd o f the total at
toi prosarti timo*

f t e

r l a

l l t t l « of or tao*>flft&s o f t o fatem i

Wobt asy bo fmmà ite the oo&blaod holdings of t o MtaeaX Haaarra and
t o ooroaroiid. teki*
lotwith#tmding the orasaibalBiag pr^pmdarmo# of fadorn!
«aottfltia» ite tbs portfolio of b m k toostemts* t o total dollar asmaet
of m m m & i & m ite tha other investami categoria« has laaraasod
apprasiablgr*




8 ü % the rotea» of obligation® Ismed by States and minor

mìM.rl%k&m of gcMtvmmt halá «s t e

reM&Irely fow

iarMtarefco ass paren

tkrongtarfe ska « t i r e jmgüe® »a# taUt«r

^©nsidlarebioíu Jor tbe gm m isaodlstiely precedi»® Voa&S ¥ «r X*
ma&iàlpaX « r e s i t i « iotalod in Üt© B#l#b©:itíO©á o f $450 iaiiliaas* lay
iks iato X?S0%
# tk»

kaâ dâabed to |i billion; inring tax#

IlpA§ it gr&
w artttttâliy t# * total of lÄSglilf m
are ite #3 billion*

« 4 5a 1$4$ i t «

just «

o f $4 b illion *

Sb* p re p o s ti« o f a ll

outstanding awicàpeL « r e s i t i « In feiste p^rUtoXim hm imxwtmA to it
mütptïiMMg m&m% si»»© lâio M

i S$j0*ft* JtoMoiinft to tà# best

w a i l a M a «fclnst«f t e k ta§lÄii®® of tb#n© « o a z l t l « «peaâed txm

€mm& 1 0 to ©XS#iiXy warn than J 0 botre« 1937 « 4 1946» frob<§ki^
ik© ©renerei»! banks now ooaartiiute

..■ largest Min#© d are o f

iw ostors ia usmisipal rerestblre*
MXlm-ê teán, reitfe. prior to- teM W
ayXlocami gs one of
ik© « J a r isp®# o f mmi*&tim bold by ©renerei»! banks, now in r e la t if*
Ism st bar#

In tàe jm m tmmûlately prior to tfe©

fire t rerM m i, r a il Inyregnrei* «nomi to m m é ^ ^ 0 sdLUloe^ or

«boot m®*tmurth ©f tire « t ir © zoom iti as portfolio*

.during World M r 1,

t b « o holdings dferenk doilarwiis« m that by 191$ ttay -stool at i# f# item
billion Colloro mâ aocQUöiöd for appreaiaatoXy # of bask
iim¿te®afca*

9h*reaft*r the drereetsd trend m s rearreeed, and in the post

« r yrere bosâc boMiag# of nil bonis grtóially so#a to a peak in X
3
'J1
of 1 » tdPU
dU
m
* At tbcct iim# ©test 1# of th© portfolio' ©revotai of
W
ÄÜ Irei** â «reota&it& ü'^ktdation of tlmm «emetti« oceurrel




4«^ * ^ t o mmúMkg ttas© yttfepa* t e ilm t e U y oa M b a r m lir a Ä li® f i »
OSOMI ih©» th© h©idtll$S

I &t ©feOilS H l û l t o f® f ©aro®®!

1m 1941* t o i&toi year t e abl«b a t o l s t o a * æ symltotto*
#t$rtey m m

thm #ÖQÖ s U U » of raUroaâ bottâa ^^mlaaâ lu t o

paîtfolio» or ©ppreatoiely ^ 9 total batt fey

t e

la t o

year# isa&ollaieìy pr©o#Üiig tfeo fir s t «o rlé » *
©eta «itlL vrn&fmt to eategùsioo of « o v a t t o # hold fey

ùmm®m&®X teto* © U t e tote M a t e * «aaieipai «ait r©Ura&4 feoa&s»
bare aet

ra ^ U o d a t o oonsd&tQ&oy erar t o 19Q9-194& paœiod*

t o s a sdseoXlmooa© teeote*ifc% to e fa r * im'^mmü fwm #I§ to
#5 billion # t e lu g M

i War 1 mû m m oilaËbaâ to a mmwû M # o f

Ü fl fe&UUte&a la 1929*

MMWÿôaBtly t&a total daoüsod çxdte rapidly to

tout U

bilUaa is 19341 it mmtlmmà at t o t lorel t e m t v a i a t o

#f t o to a d a , and t ô ü M

pæaoiioaUy aao tosg© t e i s g lo rld la r IX»

H o e rila g to t o oottaolidatad data t e a il aosaoroial te to *
it avoid appaar t o t t o m iy m m S M ^ tmmtmrn p ro tto » aro too®
ablate olgut s g A # Is © » i t o i m M

Inorai tato*

$M**%

to

atatl&tias oosooal the trasustoiü dirm&tgr is the 3<aBpQ#ltio& o f tlo
aaeaxitioa portfolios Sold fey in â iY ito l b a to » as M X as t o regional
d iffe r«© © »*

Sogaatisaa t e t o aS& only s p in a l

o f 1* S*

OmowMK&a p ro s it iimataataet proto®# aH<dt *r© ©apo^lally troaHaaeea
to tba miporrisory ®&ttertiiaa-«-a»d tot ISO *
to »

op* f t o m i Qmvsuamt ooooritloa so# pradsetoato Is

t o SaotoMK* p arate lo o f t o te to a g s y s t«*

In M a t t o m m ài

m atete© %mm®§ they -torf ail. other typos of oaoaritioa» Hoaoror,




4M: & .tip

it e W a t m on te mf wmtékmmmmà. i s m
O r « Ite oisriM twfemR tlt*

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t o t e Ìmmi
Ite

Stufe

la ralteaad

Ite £Mlri<toi tote*

As a

ope&
$4 &M

ite $«*©&

Ormi!*. tteti«t££% t e m « ® * m t e t ò Ite

|m tte oen^totlon of

f«$£§ljte

?te*e U l t i M m iter«? U f i to m g r to»MQr

■$mUkmm miofo tastassi to lc mqpmUmsj m tìm ritim *




t M tote

Biscia g i m j of mnaiol^ai bernó t e M m »

«I atei! ite ss«*» Ite***«
t m t e i

$te m & m é of mad^tpckl

mù&tmiiéllj*

m r ^¡gpid to B

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