Indianapolis Times, Indianapolis, Marion County, 31 December 1941 — Page 4

10 WAR PATTERN

Industry to Increase Production 20 Per Cent in 1942; National Income, Employment at New Peak; Civilian Consumption Curtailed.

By MAX L. BROWN United Press Staff Correspondent

NEW YORK, Dec. 31.—America embarked on an allout war economy in 1941, broke all records in national income, employment and production, and planned for at least a 20 per cent gain in output in 1942. Transition to a war economy involved dislocations in civilian industry and more were anticipated. It accelerated when the United States was plunged into war and industry voluntarily adopted the 24- Solan, parts anil engines Prohour day, 7-day week. GOV-|gyceq in 1941 was set at $1,500,000,ernment regulations became 000, against $544,000,000 in 1940. At

Bonds of the United States Government, Is Territories and insular Possessions

Municipal and Corporate Securities Real Estate and Preferred Stocks

. Indianapolis Bond and Share Corp.

3 ; I 1 of year, ai makers more stringent and real price the end of the year, airplane

controls were anticipated. Next year's prospect for further livery before the end of 1943. expansion was based on anticipa- | tion of $50,000,000,000 Federal spending for armament This demand, it was predicted, would close many non-war industries, diverting the men and materials to war output. During 1941, the Federal Reserve Board’s production index hit} an all-time high as the year closed | at 165 per cent of the 1935-1939 average. Next year it is estimated this index will reach 200, level off and eventually drop when the emergency is over. National income

established records. A sketch of these showed:

records

and some 34,000,000 above 1917

corresponding gain. Shipbuilding Stepped Up

over 1940 and about $15.000,000,000 America’s Navy

had offers on hand totaling more than $8,000,000,000 scheduled for de-

Most other lines of industry also thumbnail

STEEL — Production reached 84,-| 000.000 and capacity was 88,000,000 net tons. The 1941 output broke all and was about 17,000,000 {tons over 1940, the previous peak,

There was talk that next year’s capacity would rise to 100,000,000 tons | and that production would make a

approximated| SHIPBUILDING — Strides were)

$07.500.000,000, nearly $19,000,000,000 made in production of tonnage fort : and mercantile

The arsenal of democracy makes its own war testing grounds to before it is sent into battle. Here a 60 per cent grade was built on Dodge given the opportunity of driving trucks over rough terrain, through thé swamp, loose sand and the “mud puddle.”

Present War's Price Advance Dwarfed by 1917 Inflation

| NEW YORK, Dec. 31 (U. P.).—Price advances in the United States

over the previous record set In 1920. marine, but the total was well be- | cince World War No. 2 began in September, 1939, are small compared Next year's is estimated at $120,000,- {low the record set in the last war. with the rise that took place from the start of World War No. 1 umtil

000,000. The

Government hopes Total for non-naval construction the United States entered the war in 1917, according to a tabulation

to syphon off a vast amount of this was 900,000 gross tons. The naval compiled for the United Press by Dun & Bradstreet on the basis of cash

in the form of taxes

finance the war Plane Output Rises | that mark, experts say.

Employment was estimated around |

|believed well

to help figure was not divulged but was|market prices. below the 3,000,000)

[tons of 1917. Next year, it will beat! j500 of $297 in 1917. Rubber now sells at 25 cents a pound. In 1917 it

The high for wheat in 1941 was

was 81 cents a pound. Hogs at. the

$1.287% a bushel, contrasted with a

1941 top were $11.38 per hundred-

CONSTRUCTION — Government weight and in 1917 they were $19.50. And the gains were very sharp

52,000,000, a record, and an increase activity for camps and plants sent|from the time the war started on July 31, 1914, until the United States

of almost 5,000,000 over 1940. Back the total to more than $6,100,000,in 1917, first year of World War No.000 during 1940, according to the 1 for United States, employment was|F. W. Dodge Corp. That was $242,600,000. The total labor force is! 000,000,000 better than 194¢ but estimated at 55,000,000 and it is be- $500,000,000 below the record set in lieved a labor shortage will develop 1928. The 1942 outlook is for a drop before the end of 1942 because of of more than 3 per cent in view of manpower diverted to the military. Government restrictions, notably on The aircraft industry strove for residential buildings. an annual output of 50,000 planes, MACHINE TOOLS—This indusand actually got up to 2500 planes try had its most sensational rise monthly as the year ended. Double in history and it turned out a recthat output is seen for next year ord total of $770,000,000 for the year, or a rate of 60,000 annually. Value more than $300.000000 above 1940.

MANAGEMENT end LEASING: Office Spece Retail Locations Commercial Properties Warehouses SELLING: Business Properties APPRAISING: All types of income producing property

INVESTMENT SERVICE

Ws OFFER government, land bank, home owners loan corporation, federal farm mortgage corporation and high grade, general obligation municipal bonds. We also execute buying or selling orders for customers in other types of securities. May we be of service by advising you in regard to your present investments or

supplying your additional requirements?

Fletcher Trust Company

HAROLD B. THARP Manager Bond Devartment

H. F. CLIPPINGER Vice President

i —

71 YEARS SERVICE WITH ACCURACY

Abstracts of Title Title Insurance Escrow

UNION TITLE COMPANY

CAPITAL STOCK - « « - $1,000,000 Officers Willis N. Coval, President Albert M. Bristor, Vice-President and Treasurer H. E. Stonecipher, Secretary 4 .

DIRECTORS George C. Forrey, Jr. Frank P. Huse John K. Parry Timothy P. Sexton George W. Snyder H. E. Stonecipher Leo F. Welch George B. Elliott

UNION TITLE BUILDING

Edward Adolay Albert M. Bristor Albert F. Bromley Arthur V. Brown Vern E. Bundredge Willis N. Coval Linton H. Cox

entry on April 6, 1917.

The following table gives comparisons for the two periods:

—World War No. 2—

1911

Wheat, bu. Flour, Db. ...... 0 00000 EAP. Ib. ......C..Galule I Coffee Rio 7<) ....... Sugar, 1b. Batter, Ib. .... 00000000 | Hogs, cwt. Hides, 1b. ‘Wool, Tb. Cotton, 1b. Silk, Th. Rabber, Ib. .......0 0 . Copper, Tb. Steel Scrap, ton Pig Iron, ton Coke, ton

FOUR BILLIONS IN | DIVIDENDS SHARED

AO . / oA NEW YORK, Dec. 31 (U.P)— | American business shouldered the heaviest tax load in history during | 1940, but still retained enough of |its defense profits to pass along a {boom total of about $4400,000,000 |in cash dividends to stockholders. | The 1041 distribution, probably {the last “big” year that American stockholders will enjoy for the duration of the war, represented a cash harvest that has been bettered only twicé in the past decade —in 136 and 1937—when corporations paid out more than $4500,.-| [000.000 in dividends to reduce their | liability under the now-defunct un- | distributed profits tax. | The list of dividends distributed for 1941 included scores of big companies that were giving ‘common stockholders their first share of the profits since the start of the depression and many more making their first payment on record. High up on the roster of companies paying bigger dividends

Jehem, Republic Steel, United Aircraft, Curtiss-Wright. Consolidated Aircraft and U. S. Rubber. In general, increased payments went out to holders of railroad, oil, bank, insurance company, chain store, copper, food and packaging, automobile and automobile equipment, and steel shares, while stockholders in the tobacco, railroad | equipment, mail order, department |store, and public utility firms found {smaller checks in their dividend) jenvelopes than in 1940.

U. S. HAS 79 PER CENT, OF WORLD'S GOLD

NEW YORK, Dec. 81 (U. P) — [Gold stock of the United States {swelled to nearly $23,000,000000 during 1941, representing about 79 per cent of the worlds total known supply of approximately $2000 000,000. The gain of $800.000000 over the 1940 total was one of the smallest year-to-year rises since devaluation of the dollar in 1934 and compared with a rise of more than $4000,000,000 in the preceding vear. Slowing down of the rate of rise in 1941 reflected a virtwal halt in shipments from Europe as result of the Axis powers’ conquests.

OLDSTERS RETURN TO JOBS

1941. Many plants, unable thelr skilled help quotas i younger brackets, turned to

—World War No. 1—

191% Aug. 1, High 1914 $ 2.97 $ 82 12.95 4.50 2650 0985 J0Y% 07% 0730 0328 S52 29 19.50 8.385 34% 20 Je 28 3215 1250 7.00 4.05 8100 7700 36% A3 36.50 9.75 52.11 12.92 15.50 1.380

Aung. 31, 1939 $s N2y 5.275 0575 05% 029% 24814 5.95 1034 291% 0891 2.58 1662 Jd014 1388 20.61 3.75

Exchange Seats At 44-Year Low NEW YORK, Dec. 31 (U.P). —New York Stock ®xchange memberships dropped nearly 50 ver cent in value during 1941 to the lowest level in 44 years. From a high of $35,000 on Jan. 3, values dwindled progressively, reaching a low of $19,000 on Dec. 10. The latter was the Jowest since 1897, when the low was $15,500. In 1940 memberships ranged between a high of $59,000 and a low of $32,000. The all-time peak was made in 1929 at $625,000. Seventy - three memberships were sold in 1981, compared with 42 in 1940, and 33 in 1939.

PORK-BEEF RATIOS CHANGE IN YEAR

CHICAGO, Dec. 31 (U. P).—Di-

than in years past were the arma-|vergent price tremds that wiped out ment markers—U. S. Steel, Beth-| the long-established differential between pork and beef costs, featured [the 1941 livestock market,

While ‘cattle prices dropped slightly from the 3-year peaks of late 1940, hogs rose sharply to nearly double the 1940 average. Sheep prices advanced moderately. Federal lend-lease purchases of approximately 250000000 pounds of pork provided a stimulus to hog prices that lifted quotations on live animals from a late 1940 top of $6.25 to around $11.00. Beef, not favored

{In lend-lease buying, fell from a

peak of $15.25 to about $13.50. Lamb rose to $12.25 from $9.50. The start of hostilities In the Pacific area checked a slump in the prices of all livestock. At the end of the year cattle sold at the best levels since early spring, while hog and sheep prices stood within

striking distance of the vear's peaks.

aN A li i ab RTE

WAR ECONOMY

HELPS GRAINS:

Wheat at Four-Year Highs; Soybeans Set Record As Oils Boom.

CHICAGO, Dec. 31 (U. P)— Grain futures, under the impact of a war-stimulated national economy, surged upward this year to peaks since 1937. Soybeans boomed to record highs. : Federal legislation, inflation talk, war and increased costs of production all played a part in creating the 1941 bull market.

Washington predictions of a long war, with its implications of in-

flation, laid the basis for much buying of grain futures, but the market drew most strength from Federal farm legislation.

While parity prices for wheat rose from $1.13 a bushel at the first of the year to $122 in December, Congress lifted loan levels from a discretionary 52 to 75 per cent of parity to a fiat 85 per cent.

Wheat poured into loan at a record rate. Late in the year indications pointed toward a severely restricted supply of commercial grain, while nearly 500,000,000 bushels of pledge wheat jammed elevators. From around 90 cents a bushel during January, wheat prices rose steadily. On May 14, $1 wheat made its appearance on the Board of Trade for the first time in more than a year. The start of the Russo-German war in the following month gave prices an additional boost, and, when it became obvious that Russian resistance would not be shattered quickly, traders took courage to bid prices up to four-year peaks on September. Wheat futures stopped only fraetionally short of $1.30.

War needs for vegetable oils started the boom in soybeans. Prices rose to $202 a bushel at the best, more than double the January quota« tions. From all appearances the country hed been drained of old crop beans, so traders placed little emphasis on estimates for the Jargest crop in history, about 112+« 000,000 bushels,

Washington news far outweighed other mar k et developments throughout the year, and it was the threat of price-control legislation that knocked prices down from their September peaks. With the start of hostilities between the U. S. and Japan, however, prices again turmed upward and at the end of the year stood within striking distance of their highs.

REAL INCOME RISES

MINNEAPOLIS, Dee. 31 (U.P) Nr. and Mrs. American Public 1941, according to preliminary estimates, had a “cash income” of $1.27 for every $1 in 1980 BE E Crabb, President of I'mvestors Syndicate, reported here today. Their “cash outgo” or living expenses was $104 compared with $1 in 1040, leaving a “real income” or pur chasing power of $1.22 for every $1 in 1940.

Here's To Your Better

Living in 1942 . .

In a New Home of Your Own or In Your Present Home Modernived!

WE TARE THIE OPPORTUNITY TO THANK

OUR MANY FRIENDS

AND CUSTOMERS OF

PAST YEARS AND TO PLEDGE OURSELVES TO FUTURE SERVICE!

will not compete with the Government in its sale of defense bonds.

year when prices steadily declined. Prices of stock made their highs on January 10 when the Dow-Jjones industrial average closed at 133.59 and their lows on December 10,

when the average was at 19901, a

new low since mid-1038. Meanwhile, bonds had their best turnover since 1937 and enjoyed an irregular ade vance and commodities rose sharp.

1y. The United Press-Dun & Bradstreet index of 30 basic commodities made a new high since 1937 on the basis of spot quotations. The DowJones commodity index, based on futures prices, made a new high since the average was started in 1938. Stocks fluctuated with changes in the war developments and In war economy. The first shock of our entry inte the war sent prices down

made a new low since the figure was first published In 1828. Ofls were the best performers. Out of a group of 15 petroleum shares, 12 showed advances with Standard Oil (New Jersey) the best gainer. About half of the rails showed geins although the other half had some sharp losses, Avte Stocks Slump

1942 CHRISTMAS SAVINGS CLUBS

Be assured of a Merry Christmas in 1942. Join ome of these convenient Savings Clubs NOW.

INDIANA TRUST COMPANY 117 Bast Washington Street

MERCHANTS NATIONAL BANK 11 Sowih Mevidion Street

3: Woe So Se 0

AVENUE Avenns

FOUNTAIN SQUARE

STATE BANK

1059 Virginia Avewwe MEMBERS FEDERAL DEPOSIT INSURANCE CORPORATION

Open Your Accownt with Owe of the Above ALLIED INSTITUTIONS

Years of Progress in Investment Banking

ITY Securities Corporation was founded for the purpose of providing a complete service for investors in the State of Indiana. As a result of the con. tinvous search for satisfactory investment securities, a vital function has been per formed by providing financing for Indiana corporations, municipalities and institutions.

The company was incorporated on Septem. ber 10, 1924, ond the organization and its predecessors have been in the business of underwriting and distributing investment securities in I continuously since 19086.

Cory Secomrries ConroraTion

—————— LD UA A Uh . oe or ’ ca es 4 " hhh». _

New Home of Fleteher Avenue Saving & Loan Assn. 150 EAST MARKET STREET

Jennary Ist

ary 1st? Loan

Are you reinvesting a part of your funds JanuThen buy Meteher

loss than seseNNNy

INVESTORS wat it

Avenue Saving &

All Accounts Opened by January 10th Will Earn Dividends From January ist.

“Fietcher Avenue” is authorized to sell Defense Bonds Buy: them on installments it you wish,