Indianapolis Times, Indianapolis, Marion County, 9 October 1944 — Page 6
lity of Finance for
Small Business Is Urged In Federal Credit Plan
By MAURY
Qu
MAVERICK
Chairman, Smaller War Plants Corp.
Written for the Scripps-Howard Newspapers WASHINGTON, Oct. 9—Small business wants no favors and no doles. All it wants is equal rights. As against big business, it hasn't
got equality of opportunity.
And specifically, little business hasn't equal financial rights. For the last half century the pools of money have been concentrating and getting bigger in the big cities. Areund these pools the sheiks of big
business get money cheap. But the bedouins of little business roam the sands where the pools are small, and the desert chiefs of the pools demand high ransom for their liquid funds. Now, this drying up of credit out in the country has got to be stopped, and can be stopped. A plan must be worked out where the littles get equality of finance. This I will talk about as a solution after I have told of the plight of the little man in money. It will include insured loans for business, like the FHA loans, In the first place, small business men, with the securities doors pretty near closed to them, or open only at Arabian Nights prices, turn to their banks out in the country. The littles are compelled to do so because they can’t get long-term finance, which costs too much, is strictly undesirable, and is often just borrowing from Peter, not knowing who the next Paul will be. Banks can't be entirely blamed; it's part of the times. There has been a natural biggening of busi- * ness, industry, and finance. On top, the bank examiners have required the loans to be liquid. So banks have felt they couldn't tie up their funds for the long-term or inter-mediate-term loans. This is the very money little business. positively needs, and doesn’t get.
Bank Rates are High
But even when little business does get a loan, it is at much higher rates. The federal reserve system found that in the spring of 1942 some 60% of small borrowers paid an interest rate of 6% or more, whereas 75% of the large borrowers paid an interest rate of only 2% or less. Unable to obtain money from wealthy individuals, from securities, markets, or from banks, small busi-|% nessmen have frequently turned to their suppliers of goods and equipment for trade credit. The small businessman who relies on trade credit is bound and gagged; he can't shop around for price and other advantages. A government field survey of a few years ago disclosed the fact that small businesses which used trade credit extensively not only paid heavily for it, “but were found to exist virtually on the suf-
ferarice of their creditors,” having|M
ceased “to be free and independent
The little business really finds itself facing heavy odds that will break its back or will keep it an undernourished, sick little runt, who will never grow. As for the
giant industrial firms, even before a
the war they had built up their own reserves. And these inside pools of finance have grown into private oceans during the war, It is a fact that by 1943 the internal reserves, excluding depreciation | 7 and depletion reserves, of 249 large
manufacturing and mining com-|<°
panies increased by 20 times over what they were in 1940. Such big concerns, therefore, pay nothing for their money—all they have to do is to reach in their pockets. And-even where the big] firm makes use of the capital markets or the banks, it can oo-
The top remained at
PRICES ON HOGS REMAIN STEADY
Top Holds at $14.80 Here; 8500 Porkers Arrive At Stockyards.
Hog prices were unchanged at the Indianapolis stockyards today, the war food administration reported.
$14.80 for
good to choice 120 to 240-pounders.
120- 140 pounds‘. 140- 180 pounds 1%. 180 pounds .
300- 330 pounds ... .330- 360 pounds Medium— 160- 200 pounds
a0. 550 pounds 350- 650 pounds ........
Slaughter Pigs
CATTLE (1600) Choice Steers
700- 900 po!
00- 900 pounds .... 900-1100 pounds .
1 1390. 1500 pounds .. fresecsese
700-1100 pounds . 1100-1300 pounds . Common
700-1100 pounds
Chole 600- 800 pounds 800-1000 pounds Good—
600- 800 pounds 800-1000 pounds ... Medium 500- 900 POUNAS sonessnsosons Common 500- 200 pounds
Beef nat { (all weights) Good
Yetlum and common .. ve CALVES (9500)
Good to choice
Culls Feeder and Stocker Cattle
Steers Cholce— 800- 800 pounds 800-1050 pounds ..... conan
500 "800 pounds ..... 800-1000 pounds -. Medium— 300-1000 pounds «ee... mmon—— :
sensnsne wes
seve. sssnnene
500- 900 pounds Calves (steers) Good and Choice— 500 pounds down . Medium— 500 pounds dow: Calves (heifers) Good and Choice— 500 pounds down Medium 500 pounds down
Ewes (shorn)
tain all the finds it wants at a cost of only 27%, ,-0r even less.! Compare these il ‘with the! costs borne by small business—in | those cases where it can get money —of 6% for bank loans and 10% and 16% and above for securities. Figures of the federal. reserve board show that during the war the bigs got the greatest part of Government financial help, at much lower rates, For instance, at the beginning of the war, just one big business organization had its credit guaranteed up to a billion dollars. The total capital stock for the Smaller War Plants Corp. for all little business in America was 150 million dollars,
80% of Loans Big
Eighty per cent of all loans made up to the end of October of last
Good to choice
400- 450 pounds ..cccesceesve
“ess senscassee
wsssavcannete seevssnsssene
ees, 13.75 vee 13.75
*esssaces
Receipts included 1600 cattle, 900 calves, 8500 hogs and 2500 sheep,
GOOD TO CHOICE HOGS (8500)
. 14.08
13.50014.30
[email protected]: . 14208
14.90 14.00014.05 [email protected] +» 12.50013.7
16. a). 25 16.50
16.50 14.25
17.78 16,50
14.50916.50
[email protected] [email protected]
15.25@ 18.35 » [email protected]
15.25 15.50
[email protected] [email protected]
10.50@ 8
INDIANA STONE | FUTURE STUDIED,
-merly engaged in the industry, is
LU. Economist | Believes a Comeback Can Be Made By Industry.
Times Special : BLOOMINGTON, Ind, Oct. 9.— The Indiana oolitic limestone industry which has provided the material for many of America’s finest and largest buildings and problems for a number of the country’s
financial centers can make a comeback under certain conditions, in
lor, Indiana university. economist, whose five-year study of the industry’s economic history was published
business. Return of prosperous days in the Indiana limestone belt is held by Prof. Batchelor to be contingent upon enlargement of the market for the product by cutting of costs through technological changes, promotion of stone for residential building use, architects, contractors, and homeowners. Given the enlarged market the industry’s profits, the university economist asserts, will depend on development of improved marketing methods, intelligent labor-manage-ment relations, and fairer and more equitable competition among the operators. The study of the Indiana limestone industry made by Dr. Batchelor has been brought out by the Indiana university school of business in a 380-page volume entitled, “An 5 | Economic History of the Indiana 8 | Oolitic Limestone Industry,” published as an “Indiana Business Study,” because it “will be helpful both to the student of economics and to those who have as their responsibility the shaping of the policies of businesses and industries whose problems of the past have been not unlike those of the Indiana building limestone industry.”
History Is Colorful
The history of the industry, which Dr. Batchelor has written on the basis of industry, railroad, banking institution and court and other governmental records and of interviews with many individuals now or for-
a history of a portion of Indiana, but, as its author says, reveals “in miniature many of the fost characteristic features of American industrial enterprise.” The record, he adds, is filled with “such features as financial manipulations, railway rebates, the impact of technological innovations, struggles to achieve
6.00¢
5.00@ 6.00
"Bulls (all weights)
« [email protected] In 8.50 7.7%
Vealers (all weights)
and Calves
. 1L.50Q12.75 . [email protected]
[email protected] « [email protected]
8.75@10.%
[email protected] [email protected]
[email protected] [email protected]
SHEEP AND LAMBS (2500)
LAMBS
Good and choice Weare and good (4)
oe 13 [email protected]
0.5040 13.50 18.30 [email protected]
U.S. STATEMENT
WASHINGTON, Oct.
9 (U. P.).—Gov-
ernment expenses and receipts for the
current fiscal year through Oct.
pared with a your ago:
his Yea Expenses $25 743, IT, 302 War Spend’ 2 23,229,313,656 Receipts .... 11,029,367,702 Net Deficit. 14,714,009,5993 Cash Balance 13,900, 815, 672 Working Bal. 13,137,938,718 Public Debt 211,028,949, 130 Gold Reserve 20,804,172,627
7, com-
Last Year
$23,852,813,108
22,086,142,313 10,669,572,704 13,183,240,493 18,946,681,903 18,183,978,648
164,360,920,274
22,175,546,212
INDIANAPOLIS CLEARING HOUSE
Clearings Debits
12,877,000
N. Y. Stocks
Hish Low 90
90
Net Last Change 80 ve a
unionization and the development of collective bargaining, and company unions.” The industry had'its birth in 1827 when Richard Gilbert opened the first quarry of record near Stinesville, Monroe county, to produce stone for chimneys, monument bases and bridge piers, From that beginning developed the industry which provided the building material for many of Washington's largest governmental structures, Rockefeller Center in New York, and churches, schools, libraries and oth-} er structures throughout country. Decline Noted
The rise and recent recession of the industry is divided by Prof. Batchelor into five periods: the pioneer era prior to 1870; the quarry industry comes of age, 1871-1896; period of integration of quarries and cut stone mills, 1897-1918; the period of boom, merger and overcapacity, 1919-1933, and the period of frustration, 1834-1941. The final period, in the opinion of the author, resulted from development of overcapacity in the “Roaring Twenties,” external competition, price cutting, decline in building construction, increasing freight and wage rates, and disintegration of the local cut stone industry in the consuming centers due to the building up of stone cutting mills in quarry districts, thereby leaving the industry without means of local promotion for its product,
Changes Needed
“If, at the expiration of the war, a revival in building occurs without any change in the productive technique, the distributive system, or the promotional efforts of the In. diana limestone industry, the industry may have difficulty in re-
the opinion of Dr, Joseph A. Batche-|
and education of}
the|
today by the university's school of |
- THE INDIANAPOLIS TIMES __ — Adams Employees Awarded Pins
William F. Gilbrech, 434 S. Warman ave., oldest employee of the J. D. Adams Manufacturing Co., is presented with a service pin » Roy E. Adams, president of the firm.
Approximately 190 employees and officers of the J. D. Adams Manufacturing ‘Co. attended the recent dinner and organization meeting of the Adams Service club, an organization sponsored by the company to give recognition to the service and loyalty of employees who have been with the firm for 10 years or more. The club has a membership of 225, including men in the armed
forces and in the company’s field organization. The length of serv ice of the members covers a range of 10 years to 42 years. Twenty-two officers and employees have served continuously with the company for 25 years or more. y Service pins were awarded to each ' employee individually by y E. Adams, president cf the firm,
STATE FARM PRICE INDEX OFF 6 PONITS!!
LAFAYETTE, Ind., Qct. 9 (U. P.). —Indiana farm prices dropped six index points to 164 from Aug. 15 to Sept. 15, based on September prices during the 1935-39 period, Purdue university -and federal agricultural statisticians reported today. i According to the report, the index
25 Years that Created
of wholesale prices in the nation and prices paid by American farmers remained steady, but both the national farm price and farm purchasing power indices dropped a point.
MASONITE HEAD NAM%D CHICAGO, .Oct. 9 (U.P). ~— Matthew P. McCullough, for many years treasurer and a director of the Masonite Corp. has been elected president,
{while
OE IFINANGING RISES
Investment Report Shows
‘Increase of 1 9.5% AYear.
: Times Special WASHINGTON, -Oct. 9 Indiana
| public investments in the custody of oa = savings and loan associaabout 10.5 per cent a year, accord|ing to a recent report from state
tions are increasing at the rate of
home financing institutions. During the fiscal year ended June
| 130, combined assets of the state's
insured associations increased by
| [17 per cent to a total of $198,354,000, savings invested in gtheir
shares rose from $146,159900 to 5174,664,000, William H. Husband, general manager of the Federal Savings and Loan Insurance Corp. stated in announcing the report. Because of current restrictions on new-home building, except housing for war workers, loans made by these associotions since 1942 have largely been to finance the purchase of existing houses, for refinancing or for reconditioning.
SWEENEY NAMED BY
INSURANCE GROUP
Robert E. Sweeney, president of the State Life Insurance Co. of Indianapolis, was elected a member of the executive committee of the American Life convention, which met in Chicago last week, Mr, Sweeney served the convention for several years as vice president for Indiana. He entered the employ of the State Life Co. in 1903 ang, following a series of promotions in executive posts, he became president. of the company in January, 1932. Mr. Sweeney has also served two terms as president of the Associa-
tion of Indiana Legal Reserve Life
Designer Predicts Lowry:
Aboard Post-War Airliner
By Science Service
108 ANGELES, Oct. recede. 2iiphies. tay Eval becan.> lifiers in luxurious appointments and passenger comfort, Henry Dreyfuss, industrial designer of New York, predicted at the national ScIOnaVg meeting of the Society of Automotive Engineers here Saturday, In the post-war world you will be able to take a leisurely cruise : around the world in 14 days, with side excursions by helicopter into
obscure places previously 'off the beaten track, Mr. Dreyfuss pointed out.
Insisting that passengers should not necessarily be packed into airplanes, and that plane interiors should be designed to meet differing requirements, Mr. Dreyfuss urged that plane operators learn
LOCAL ISSUES ol seri hairy 0 7 ate
LE
from the experience of land car- [Circle Theater
riers that passenger comfort pays. Comfortable accommodations, not only for sitting or sleeping, but for walking about, should be provided, he stated. Dining saloons, private state rooms, suites, as well as card, television and radio rooms, might be the features of post-war planes, he development of a compromise plan providing sufficient comfort to satisfy the mass public, and of planes
simultaneously offering regular and I
deluxe accommodations. Current needs, he commented, are for the design of a chair which would be comfortable for a tiny, thin little person as well as for a fat man, and for co-operation between airlines and luggage manufacturers in shapes and sizes of bags which could be stowed . aboard planes without wasting space. Mr. Dreyfuss is the designer of the giant skyliner built by Consolidated Vultee Aircraft Corp. known as Model 39, and based upon the Liberator bomber. It is designed to carry 48 passengers in the daytime, and it will sleep 24.
HARDWARE MEN TO MEET
“The Indianapolis Retail Hardware Dealers’ association will hold its October meeting at Risk’s Hardware, 3047 E. 30th st, at 8 p. m. Wednesday.
L ‘pid; fasenen
BR 46% ee 200 »
Leone 5 } 10.....108
a } 1s 08YY breed bems, 1. Leghora hens, Brotia, Xm, snd gov oa
wa, te, Arete HE 50s. Buttartat-Na, ®
year went to concerns with assets 40 5 of over $5,000,000. Companies with | Am assets of less than $50,000 received 4" less than 17 of these V-loans.! 4m : Companies with assets from $50,000 JA Water W . to $500,000 received only 47 of the! Armour & Co. | at Refining
total. {Bald C to. All of this was necessary to win |Betn Steel |
the war, Just the same, it shows | Bore- Warmer «s 40 that big business and not little|Chids . .. .... business has gotten the greatest Douglas Airs o amount of financial help from the|Du Pont . government, as well as private {Goodrich vive 49 ree, Little business is out on a! a bd 4 ch. % Ind Rayon ....
Int Harvester .
FHA—“Success” Johns-Man .... Kennecott .... 353%
. Obviously something has to be | Kroger g& B.. 35% 7. 52%, done. What? Well, it has BOL 10! ckna Aircraft 2394 be £0 the 15,000 little banks of the Martin (Glenn) jiu country can and will lend out|Nei per, 3 money. The federal housing admin. | Nal Distillers... 36% istration was a great success—it Er oral. vs 3 had out seven billion dollars In| Packard 5% housing, and not a bank lost alpen, AR Ar. 31% dime! The FHA was and is a suc- Pheips Dodge. , cess, and must be continued after pune, &:
. B. 12% i Mill . 15'2 T&T ... 163% Tob B . 68
21% "8 | gaining the prosperity of the. early 1920's,” says Prof. Batchelor in * summarizing the history and fore- % | casting the future. “In July, 1942 | (the date to which he carried his study), there still was greater pro'v,| ductive capacity in the industry s|than seems likely to be needed un|less some drastic improvement in % the past marketing methods and 2 | productive technique permits oper- %, | ators to improve their position with ja|respect to competitive products. “|The events of the wartime years— 's especially the conversion of many {mills to war work—will probably reduce this excess capacity to man‘v,|ageable proportions by the time + | peace arrives.”
New Methods Urged
) Provided ‘the wartime converalsions have reduced capacity, Dr. Batchelor believes that other facs | tors may assist the industry to come + | backs Among these he enumerates 's|the improved quarrying and cutting methods of some operators , {which ‘may be adopted by the industry, decreases in the price of 2 | stone for residential building by reducing the size of the quarry s| block, employment of portable | equipment developed during the war, and use of salvaged stone, utilization of group methods of +|sales promotion, “and development of standardized sizes, new market ing channels, and an information and technical ' service adapted to servicing small and medium orders as well as large ones. These helpful factors, however, may be: entirely frustrated by a
throat the &
+:
191919
of achievement and progress... RCA is a monogram of quality in radio-electronic instruments and dependability in communi. cations throughout the world.
a New World of Radio
-
9%, L277
(ree:
® From 1919 to 1944... RCA has pioneered in the science of radio and electronics. . . from world-wide wireless to national network and international short-wave broadcasting . . . from electron tubes to electron microscopes and radiothermics . . . from the hand-wound Victrola to the automatic radio“phonograph . . . from television to radar.
FFLILI TL:
11+;
From the First World War to the Second, RCA developed and expanded its “knowhow” in skilled engineering and production so vitally needed to meet’the demands of war . . . these qualities will be reflected in the peacetime products of RCA.
AEE
11
241, Pullm :
i the war as a part of the free-en-| Pure: re Ol ¥ ferprise system—for the banks, for! Repu Tob B the contractors and builders, for Rv Boi He Batacts Ssuerally, ant wo yeope £57 22 . 31 can have homes. {Sa rands PPE «35% In the same way a federal credit Std Su ut
BEESREE
: Twenty-five years of service to the nation and the public have made RCA a symbol
. .
36% . 5514 insurance plan for small business 200 cont Fox. ie will do the same for rew free en- U 3 Judher ... S004 terprises, new business. Other things warner Bros |. a have to be done—among them, | 701k nn relief to the little businessman, | PLAN COW TESTER SCHOOL — ite the thing for the]
4. Times Special 1 get more loans, and
rien:
RADIO CORPORATION OF AMERICA
30 ROCKEFELLER PLAZA, NEW YORK CITY _
LAFAYETTE, Oct. 9. — Training money: Money will stay| schools for prospective cow testers Eo air will be held at Purdue university, e more I EE b fact, an ul iiiaina, sutetsion
RCA LEADS THE WAY. .1n Rade. Tavis...