Indianapolis Times, Indianapolis, Marion County, 7 August 1936 — Page 25
pounds 505,008 oun
plains How Bank
PAGE 24
FRIDAY, “AUGUST 1, 1986
Agriculture. 1985, and 6,028,000 Pounds for 1981-1935.
the Depar of ly pounds less than in under the fveyent average
Deposits Were Increased.
LEARNS TRUSTS
y JOHN T. FLYNN
V YORK, Aug. 7—~How we produce goods, we know fairly But how do we make money? not mean profits, but money, he actual stuff which we spend n we go shopping. * “In March of this year we had 00,000,000 more on deposit in banks than in March of 1835. ys other words in a single year the amount of money in the banks was over four billion dollars greater than at the same time the year before. The point is—
where did this
four billion doliars come from? Afterall, if you have a and dollars in a bank you think of it as money. You feel you ican convert it into ‘cash any time you want. Of course
‘you know that the bank doesn't,
‘keep all the money in the bank, If you deposit a thousand you khow that the bank will presently lend + the thousand to some other person. * But then you feel he will have that thousand—that it will be in exdstence somewhere. If there were $44,000,000,000 in the - banks last year and $48,000,000,000 this year, these new bilions must have been created some way.
» ” » ‘ LEARLY the. government did not create them. That is, it not coin or print that much ey. For in that same 12 bank money was owing from $44,500,000,000 to 48,700,000,000, government coin sod paper money increased only ess than 700 million. How did the ‘other billions get produced? If you will look at another figure, you will see that in that year we imported about a billion and a half foreign gold. This leaves about $2,200,000,000 to be accounted for. * Now if you will look at another nportant and interesting piece of tistics which appears in most large newspapers every day, you will see that the national debt-in-creased in that same time—from March, 1935, to March, 1936—just 2,642,000,000. In other words, it as only a little more than the increase in deposits in the banks. Is there any connection between these two? ” ” HE great Hise in bank deposits § frequently referred to as a sign « our growing business volume and rising prosperity. There seems to be an impression that bank deposits have increased because business has increased -and that the deposits are a sign of rising business. ~ But bank deposits are increased aly two ways. One is to deOf a fresh supply of actual yj — newly issued government y or funds imported from . The other way is’by bank s.. Much the greater part of our bank deposits are created by bank loans, bank credits.
| 2 ” ” AS business created this new money, these new deposits, by greasing its loans from banks, by means of credits? As a matter of t, in that year, business not only not increase its loans, but actually decreased them. Who made the loans at the banks, therefore, which| resulted in this increase of deposits? The government. Our bank deposits have expanded then largely as a result of the government deficit. ‘Some of them, of course, result from an increase of -$700,000,000 in newly issued money and there was “about a billion and a half of gold imports. The remaining two and half billion increase in bank dets, therefore, we owe to the government’s borrowing and spending.
{Copyright, 1936, NEA Service, Inc.) — On Commission Row
tations below, subject to chang rage wholesale prices being pr rs by local commission dealers). FRUITS—Pears—Bartletts’ _ bo. $2.75. erie oat crate, $3.50. Bananas ested, 1b, 5@S5%c. les—Transparta, fancy, Ye $1.75; hos uchess; 2% in. J 1 Virgiuis Winesaps, 2% in. Sos: No 1 Vis 3 $8. Limes—Mexiij, carton
or 209, 2 “phi thie ARR a ue, 4w, 3 Or apes Seedless, NS—Cantaloups--Indiana Jas. on Dome grow: 30agse. 88 ar GeO ib. av.. ioe. ans—Round ate. r, $3. Beets—Home-grown, doz. rots—Ohilo, doz., 4 Cauliflower
12s, crate lery— acado, ashed and trimmed, a 60c.
Sg Tal gf Ba "haz r Kale—HomePhe te ~ZT'0' - re a Louisi
isd a.
on Parsiey—Homeag estorn Tel.. vert potatos New Gob-
90c. Raghu x hite, 3 a thc,
oz, 35c bulk, bu. Te Tatoes oth mesgiovai. 30-1b. Fs s0c.
FRUITS AND ND VEGETABLES (By United Press) . 1. — Apples — Yellow sparents, gan, ot’ Potatoes—Alabama, bu., [email protected]. Olinols, - bunches, 3@3%c.
| Pu [llinois, 75-1b. BO 3.50. Spin+ 2a
X¢ ichigan. by bay Lis a — jon, Crises, a. Peas—Washx ie apg era o sacks) —Culifornia nsin Yellow,
toe | Ark La Gas 4s 81
5’ | Brokly Eat on 3% 66 ro n json s’ BHD, r 49 66
PAID DIVIDENDS FROM CAPITAL
Securities and Exchange Commission Questions Practice.
BY RUTH FINNEY Times Special Writer
WASHINGTON; Aug. 7—The rights and wrongs of paying corporate dividends out of capital surplus may be by the Securities and Exchdnge Commission in its report to Congress on investment trusts. { Its study of that subject today disclosed another corporation which paid out more in dividends durin its lifetime than it received as income. The corporation was Reliance International. The dividends paid to preferred stockholders only, exceeded income by $294,119.
Defends Policy
Morton H. Fry, former president of Reliance International, defended the policy followed by his company in this respect, though withholding unqualified indorsement - of the practice. “In “the old days most of iis thought it wrong,” said Judge Rob-
in charge of the study. "At present the laws of a number of states permit payment of dividends out of capital surplus, although the New York Stock Exchange still frowns on ‘the practice. Record Shows Firms Troubles Frye argued that most of the money put into’ his corporation: was put in by the preferred stockholders, who received it back in. dividend form, and added that they were fully informed of the situation. The SEC had in its records today a story of the difficulties that may beset a corporation whose bonds carry “a touch-off clause.” Reliancs Management, parent company of Reliance International, was incorporated with such a provision, requiring that its $1000 bonds must at all times have back of them securities worth $1250.
FOOD PRICE INDEX HIGHEST SINCE 1930
Times Special NEW YORK, Aug. 7.—The wholesale food prices index rose to $2.84 for the week ended Aug. 4, which was a new high since May, 1930, Dun & Bradstreet reported today. This 7 cent gain over the index of the preceding week continued the upward trend which started during the drought and heéat wave and has proceeded for the past 4 weeks, the report said w Year ago the figure was $2.67. The 2.5 per cent gain recorded in the latest week over the previous one, was over all groups except sugar and steers, which showed decreases for the period, the report said. All grains, lard, flour, butter, eggs, cheese, beans, peas, raisins, prunes, hogs and lambs rose to allow the index to exceed the previous peak of December, 1935.
DROP SHOWN IN NET
Times Special CHICAGO, Aug. 7.—The Graphite Bronze Co. Cleveland, today announced that net income for the quarter ended June 30, after all charges except provisions for the corporate surtax on undistributed profits, amounted to $361,279 compared to $388,573 for the same period last year. Net for the first six months of the year totaled $679,710 against $936,490 during the corresponding period last year, the report said.
New Bond Issues
(By Lyons: & Co.)
§
Bid. Ask. 99% 10634 100 108% 105% 10712
101% 104 101% 102% 105% 102 104 33 107% 100%
AssO Tel is
Cal Ore P Central Maine 4s '60 Central ho 3s '66 C&C * 18 yA Chi West In 4%s Chicago Union 0 Sas *51.. Cleve Tractor '45 Columbus Ri way 4s ’65
101% LB 10 Los A s G & E 48 70. Tontevie. & Nash hs 2003. McCro: Ss '
ert E. Healy, SEC member who is|
MR 8 [Ems sess JAI ii 113%}
RESIDENTIAL BUILDING | IN 16 YEARS
N
ANN
NN
DMI
4
United States during the last 15
dwelling units built in 257 identical cities. graph from information gathered by the Bureau of Labor Statistics.
- -. =
The above chart shows the trend of residential ‘building in the
years, illustrating the number of: The FHA prepared the
EARNINGS HIGH
Petroleum Industry's. First Half Report Found Best ~ Since 1929.
Times Bpecial NEW YORK, Aug. 7.—The petroleum industry was found to have
first half of 1936 for any comparable period since 1929, Standard Statis-
a survey. The report said ‘indication were that this improved level
over the rest of the year. “Consumption is expected to continue at record high levels, while supplies are apparently being sufficiently well controlled to prevent any drastic break in prices after the end of the present heavy consuming season,” the report said.
Stocks Reduced “Despite record high production of [4
of 1936, when the total was estimated
that for 1935, crude oil stocks on barrels. This compared with about 314,000,000 barrels at the beginning of the year. ih interstate contact to ‘keep odyction, . with limits recomont ed by the government has been effective, with only one major producing state—Californfa—exceeding | the ‘advocated allowables. This was chiefly due to the unexpectedly ‘sharp gain in consumption this year. The increase in demand ran well ahead of the amount of new production sources discovered, while several factors which threatened the maintenance of balanced production earlier in the year have been removed. “Louisiana enacted a more adequate oil control law which largely eliminated any danger to crude oil prices from the Rodessa field. The Oklahoma City extension field also has been limited because of water encroachment.”
UTILITY EARNS $4 IN -
Times Special solidated report of the Pacific Light-
12 months ended June 30, - 1936, showed net income equivalent to $4 a share on the outstanding com-
share for the preceding 12 months, executives today revealed. Gross operating revenues for the period totaled $49,941915 versus $47,317,101 for the preceding 12 months. This gain is attributed to the increase in the number of gas and electric customers ‘and con-
dustrial purposes. Additional gas purchases, Fesulie ing from the greater consumption, largely accounted for the increased operating expenses, officials said.
taxes and higher fixed charges, and the voluntary reductions in gas and electric rates resulted in the decrease in net income shown for the | two periods.
i0sse QUARTERLY NET GAINS
Times Special | CHICAGO, Aug. 7—Bristol- -Myers
for the three months ended June 181
10752 | pared ‘with. $1,007,731 for the like | Natio period a year ago, the report said.|
{URGED TO REGISTER,
(ON GRUDE OIL|
enjoyed the best earnings in" the 3 tics Co. said today after completing | 3:
of earning power is to be maintained | 3
crude petroleum during the first half |; m to have been about 10 per cent above | 5 hand July 18, stood at 308,859,000 Bet
YEAR ENDED JUNE 30 iN
SAN FRANCISCO, Aug. 7.—Con-|
mon stock, compared with $4.05 a |goc
Co. and subsidiaries today reported Ba
N.Y. Bonds
(Reprinted From Late Times Yesterday) DAILY BOND INDEX "© (1926 average equal n
20 60 mgs. Fa Ralls vii, Bopds.
5 i% 5.8 0 05.8 = 97.6 1%: 7 89.6 100.7 .68 108. 7.9 36 low 0. 84.7 3.3 de I 1936, by standard Oa tatiet tics) U. 8. GOVERNMENT ‘BONDS (By: Abbott, Proctor & Paine) Treasurys
2%s. 1951-54 ) Home Owners Loan Corp. 21s, 1942-44 3% 8. 1049 ‘Federal Farm Mortgage Corp.
3s. 1949 3s, 1942-47 ...
teel 4s '60 Cees filw & St Pp Bs’ ilw & St P 58 2000 Cleve Un Term 8s "73 Cleve Un Term 4%as *77 May ‘52
our Sora & & so 4s '80 Ind 4s '52 ni & Nor West 4 Container So, 6s ’46 4s 3 S
Gent
Gen er bore Resid “Trans 8 Bs "68. " ec 6s . erntl T & Tel. 43s, 30.
erntl pel ernt]l Tel & Tel ahs 83;
erntl
Nor Pac 6s 2 cu New Orleans Term "ds 55.
ing Corp. and subsidiaries for the|p,
Pern P&L hs '81.. Postal Tel & Cab bs Shell Union 3 as El
Sou Ra '568 ...ceccecancese Sou Rail 65s 156 sareenereee Texas Pac 5s’ ve Texas Pac 55 ' Third Ave Ad] 5s '60 .
tinued expansion of sales for in- {NY NH &
Warner Bos 6s '39 .. Western Mary 5las 77 Western. Union Ss Pe “ig Youngstown 8 & T 4 Youngstown s&T
Argentine A A 6s eh
Australia 4%a.°54
This increase, together with larger | Brazil 8s
sssssve
“ROM : Yokohama 6s nee B3%
Unlisted ted Stocks
(By Blyth & Co) ~NEW YORK STOCKS
ine wds meee ey
30, net income of $519,463, against | Sh for | the gorrespording Continental
seve ernne eV eE Nea
Boston sis Wamesdiis 30%
13 . Medium Wei 22!
4 Heaviwelsnts—~
90 ! 1 " Good and choice ... 9 cu i, common
Most Sales Off 5 Gents; (88
Heavyweights Drop Half Dollar. Hog values were mostly unevenly
lower today at Union Stoc
£,
The bulk of
|sales were on weights from 160. to
250. pounds which were 5 cents helow yesterday's levels, selling at
[$1050 to $11.30.
Although thére was a limited sup-
ply of heavy porkers, prices were
50 cents a hundredweight lower on kinds. weighing above 300 pounds. Undefweights were sisady and pack- | J je sows were weak to 25 cents wer.
Receipts Light For the third consecutive day, re-
the Indianapolis ;
Ser
New York Stocks
ceipts were estimated at 4000, con-| Hudson » siderably below average for a three- | Hup day span. Holdovers numbered 320. | Nash
Arrivals of other livestock also were light with 400 cattle, 500 calves and 1000 sheep on han
Studebaker Yellow Truck
Motor Access—
Swine averaging 250 to 285 pounds Bendix,
brought $10.80 to $11.20; | 2 weighing 285 to 400 were down to $9.50 to $10.95; weights from 130 to 160¢pounds sold for $9.75 to $11.10, and 100 to 130 pounders brought $9.25 to $10. Packing sows were salable for $8.25 to $9
All classes of cattle were generally
steady in a cleanup trade, A load | fiEeR
of 1026 pound steers sold for $8. There was little else attractive in either steer or heifer lines.
Veals Lambs Steady
Beef cows were disposed of at 34 | D
to $4.75, and cutter grades at $3 to $3.75. Most vealers were steady at $8 down. A few late sales were 50 cents higher at $8.50 down. The sheep market was mostly steady, good and choice ewe and wether lambs generally bringing $9 to $10 with $10.25 paid for strictly choice kinds. Fat ewes moved at $2.25 to $2.75 with a top of $3.
Jul
3 y Receipts Au
Bulk "To [email protected] *$11.40 3 2 11.30 ogi: 3 > I ai Fi [email protected] ~ [email protected] Ney, high for 1938. Light L fe od and. um °*
1 3. 4. 8. 6. 1
fle0-1t
Lightweig hts— (160-160) Good 2nd
(200-220) choice.. [email protected] (220-250) Good: and choice. 50-290) Good and
choice. . (290-350) Good. and
choice... [email protected]
9.00G
Slaughter Pi
(100- 140) dood F and choice. . 3% jai
ii. 400— - (550-900) Choire
. C (1100-1300)
od Fou edium ...... (1300) Chiotce’ Oo Good
“100 NTN D-II ND 300
$3833 333B333138333
0009 09899
0993990: WD IWNR-INDD IND
(550-750) Shoe
Comm medium. (750-900) Good od Tan: Common, ~ medium.
© 2300430960 ees
CRN EAR Sern : Common aid medium Low cutter and cutter... Cutter, com. and med. -bulk.. Vealers Reger, 500—
88288 mamma
“tbe nunn Bessanesnu
(350-500) Good and choice. 4 8. Feoser By a a ttle er Cattle (500-800) Common & choice $ 5. Co and medium 4. (800-1050) Good and choice.. § © Com. d medium 4.
82383 838 00 68
cesar
CO INI Red M0
Ge (90-170) Good and shale n um Effective July 1, spring lambs
varsnsep and lamb quotation on - clipped
Other Liv Livestock
ri By 1 United Press) CAGO, A 7.—Hogs—Receipts, 800); inclu ts; markets, ats, goo) day's average: 5@10c le ugher th Thurs Bsc. ae T factical top aif } 1.38: bu 180.2450 ibs @11. tack 350-300 > bas $10.40@11; be: SL ) rox. - . 500; the flop of price.”
$10.43
350 Ib. up. 9
000 Atl BL Lines. .
cre. 8.35@ i 8.00@ 9.00 |
8 3838 28 =
oll .... Timken Det Axle Mining—
Alaska Jun Am ‘Metals 4
Cerro De Pasco. ome Mines Howe Sound. .
Ihe Nickel Int Nickel Kennecott Cop... Park Utah Phelps Dod ok Joe Lea
Smeiters. . Vanadium
Radio Corp .... Paramount ,.
Warner Bros ... Tobaccos— Am Tobacco AA. -10
Lorilla Philip. Pos
Baily
. T . 110501130 KC Sou [email protected] MK & T
950 N ¥Y Cent
No Pacin 3 or | ry ener peti va aes
West Maryland.. Equipments— . Am Brake Hy:
Am Car &
n'R R. Sig on Ine. West Air Westingh Flee. z
Villisled Am &
AT Am Hat, Wks ©. Col
ae leg pH Ea
la Ee ra Lit. 16 Hydro Elec . "3 Ion G Teor 27 Nat Pwr & Lit .. 12 North An ore 34
n Gas Im Western Union. : Rubbers— Firestone Soogter > ea; U 8 Rubber . U8 Rubber pid. (] Miscellaneous— Allis Chalmers .. { Am Can 1
K | Ca
um grate EE | Sart Bi
129
3s Reynolds Tob “B» Sin
8634 3
139% For 1% Am Power & ETLit. na 3%
12%
31%
3 IEF
BEESRILBEREE - SRSRER
28
HN BSERRNNBERES FE EFFEFEF ;
FE SERRE FREE
Chicago Stocks
( By Atkins, Hamill & Gates) Prev. Clase 46%
12% 62%;
Ltt
a353338
wEREEEa FE w ESTES
ni Pub | Service pid....0 rites : mmonwesith ‘Bison .......
Id FN
33
ctric Household rie
Qenelal Jou Great oa Dredge: Jarvis Libby gt
DD hh et oils SR
el
Re »
Jtandard Dredge 2 ifs Internation
rd eg =
er To Curb
(By Atkins, Hamill & Gates)
+
Am Cynanamid ‘B’ Am Gas A Zesitie Ponce
Mead Johnson & Co Molybdenum Corp of Amer.. Nt] Bellas Hess In Nisgara Hudson r Pan-American Airways . Root Des TSienn
St Bale ) ega. : Sonoton: ] ®
Stu
pli Securities
(By Indianapolis Bond and Share Corp.) The following quotations do not re resent actual bids or offerings, but mere y indicate the ABprosimate market level ba: uying a selling inquiries or recent ranrraana
BONDS She Ind Tel (T B 448 '81.. H Tel Tel R
Kokomo 3 | Morr tris 5 & 10 Stores 5s '50_.
i mata WER RSIS
Richmond W W Seymour Water Co Ss ‘49.
‘Trac Terminal Co 5s ‘57 Indpl's Water Co 37s 66 ... ABOCB 12 SoC ORs rew g 0 COM. coon % | Belt Rail 8 ¥
Hook ‘Drugs Inc com Ind & Mith Ties 3% pid 7s..
15 | Bou 13% | Union Title Co TH c Co +Ex-dividend.
1 al Trusts
(By Thomas D. Sheerin & Co.)
Bid Asked Fund 2d. .. 17.92 18. 328
i 32 3. i 29.12
(Mod) . .
or Accum. Acc. (Unmod.). T
Income Amer, Shares. Shares Cumulative
—- D SO CRE 03 1-21-4136 G9 1-4 i Oh BY ad «IAM ONDE PF
Other Livestock
A United Press)
FORT Aug. 7. — Market, steady: fod-136 be ~ $10.90; H 26-200 1bs., 200-225 1 Oo 10; 225-250 1bs., $105; 250-275 Ihe. “flos: 218- 300 lbs, £107 40-160 Ibs. 10.45: 120-140 he ‘$10; osaao, ns ibs. Wu: a5; stgss, | $3;
Brat.
TREND OF COST OF LIVING
investment
BOND FINANCING DUE FOR SLUMP DURING AUGUST
General Motors Acceptance Corp. Issue Expected to Be Largest.
BY CHARLES A. DONNELLY Times Special Writer NEW YORK, Aug. 7.—August bond financing promises to be the smallest in recent months according to all indications. It will drop below the $279,481,000 in July, which was more than $200,000,000 below the $488, 813,455 in June.
One important issue, one of the largest of the year, however, probe ably is to be offered to the publie this month, that of the $100,000,000 General Motors Acceptance Corp, That offering: may prove to be one half of the month's total, registrations thus far being very light. The decline in new financing in July and the expecled drop in August is no larger, than anticipated by ers who were of the fon that most of the reinvestment demand at the half year was met in June.
Anticipate Revival Many bankers, however, look fore ward to a revival of activity in Sep
tember particularly if the public utility corporations receive any en-
Prev. | couragement to go ahead. Holding
company financing, however, may not come until the later months of
% | the year, because it is felt that a
decision on the 1935 Holding Act’ by
% | the courts may not ‘be given until
October. Should the Supreme Court declare the act unconstitutional a large
i amount of financing which has been
‘held back by howling companies will be unloosened. Such a development would boost the total of new financing for that period considere ably. Frisco Issues The ‘sharp increase in loadings of
the St. Louis-San Francisco Railway Co. is attracting attention of
{bond traders to the possibilities for
appreciation in the Kansas City, Fort Scott and Memphis Railway Co. refunding’ morigage 4s and tie Frisco 4s. Present earnings of the Frisco ine dicate, according to many, a paye ment on the Fort Scott issue‘ this fall. This issue matures in October, but in.view of the financial condition of the road cnly an interest payment can be expected. -Any substantial disbursement will react favorably .on the Frisco 4s, for $21,678,000 of the. Fort Scotts are pledged under the 4s. Any interest payment might be passed along to the holders of the latter | issue, it is declared.
Detroit Edison Refunding: Expected
Another major refunding operation which may be expected in the next few weeks is that of the Detroit Edison Corp., which, according to reports, may call $20,000,000 oytstanding 5 per cent bonds, due in 1962. This company does a large part of the electric lighting and power business in the State of Michigan, including the city of Detroit. Its earnings record has been very good over a long sian of time, having covered’ interest charges 2.46
% times last year and during the de-
pression averaged its coverage more than two times.
CIGARET PRODUCTION SHOWS SLIGHT GAIN
Times Special NEW YORK, Aug. 7.—Indications are that cigaret production during the first six months of 1936 totaled 71,000,000,000 cigarets, a Poor's Ifidustry and Investinent survey of the Johaseo products industry showed
This represented an increase of
0 : 2% per cent over the preceding six
month period and was 82 per cent in excess of the output recorded during the similar 1935 period, Manufacturers, the report said, are faced with the possibility of to= bacco price rises. as ‘a resvit of the drought. The survey revealed that the crop July 1 was the poorest in history on that date and consee quently total tobacco production for the current crop year was estimated at 14 per cent lower than at the same time last year.
DIVIDENDS ARE DECLARED Times Special NEW YORK, Aug. 7.—Directors
‘lof Tri-Continental Corp. have dee
clared the regular quarterly divi dend of $1.50 a share on the $6 cumulative preferred stock, and