The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-08-28
FROM EDITORIAL COLUMNS
American Finance On Its Last Legs
Record Lows and Highs in Money Mart

that u get actively into war; the art
cia stimulus to the national economy would certainly be fol-
lowed by critical chaos than anything far in
America However, it is apparent that large segments of
Business prefer that future risk to the creeping
ays of business and finance and the imminent collapse OF
structure plainly written America
few weeks ago. fupage Stop Hitler Now" advertise
apparently calculated to get America Immediately into war;
undersigned by the Committee to Defend America by
Aiding the Allies of which William Allen White famed Kan
editor chairman But last month the o. Senate heard
Senator Holt read list of donors to the COMMITTEE The
list included host of others j. P Morgan Co. Inc,
Kuhn Loeb & Co., Lehman Brothers, Thomas w Lamont,
Cornelius Whitney, Friedrich Warburg Daniel Guggen-
Avere Hartman and directors of STEEL manga
nese OIL steamship aircraft and equipment companies"
only plain to this committee America
that the stimulus of the defense will insuffi
cent to revive the economic system For example it
mated that the steel industry easily produce in two
months the total Army and Navy steel requirements for
the next two years.
Sick Finance
American Finance is in bad way as illustrated by
last month:
The volume trading Exchange struck
IL 22year low with only 22e5sO day This
averaged only 65 shares for each of the Exchanges 1875
members who plan to reduce their membership Another %
year marked up when only 1920 $50
traded during the twohour Saturday the
9th
secondquart bank showed highs of idle
hand The Chase National Bank largest in the world
record for deposits $3,19O823 000an increase
year of almost 500 Millions 16 percent Loans
and discounts outstanding equaed less than fifth of deposits
Cash amounted to 467 Millions than FL percent
ago. equal 46 of deposits and equal to 242
percent Of almost 2 times loans and discountsl The
composite figures for fifteen largest Wall Street banks, in
their myear statements of condition. showed record deposits
of than 6 billions 2a billions almost 10 percent
over last year Cash percent deposits
equal than ~ times the total loans and discounts and
26 percent ago Loans and discounts fell
than percent since the first quarter Holdings of u
S. Government securities sharply.
Borrowing collateral by members of the New York
Stock Exchange mdyear dropped to the lowest ratio to
of listed stocks in the history of the institution These
brokers' loans amounted to only O86 percent In normal
times around to 10 percent only
before (ecenty) has the ratio fallen below
Disasrousy low rates of interest involved
mental and private financing which included large refundng
operations Chesapeake Ohio onetotenyear equipment
certificates $2500000) went for OBS to Its
record low for this type of issue Bethlehem Steel
assist in retiring half of its 3 percent debentures sold
600 worth of 12525 percent serial notes. bringing
Bethlehem refundngs this year 126 million! Wool
sold 100000 worth of 15year debentures of 2
IA percent above the rate on the
exempt Treasury bonds foated week prior Two other dis
turbng factors in this deal CD than half of the
money raised for retiring old debt carrying higher interest
(2) the sold direct insurance
pany going completely around investment bankers have
than third of total sales far this The Treas
ry behalf the Commodity Credit Corporation oated
loan consisting of 2yr emo notes bear
075% Even this low rate of interest the
lions offered California last month sold state warrants total
ng almost 52 Million and bearing interest rate of per-
But the subscribed paid premium of $2918 for the
warrants making the real net interest O94 percent Govern
subdivisions the whole u S. undertook fnanc
relief money for refunng and other at rates
interest low 009 percent and Ol3 percent for short
ERIN paper.
Repercusons from the fatal trends heard many
The Aetna Life Insurance Company among
,hers announced increases in its premium life and
policies because of declining returns from invest
Stanford University students confronted with
addition the quarterly tuition fee this fall increase
necessary by conditions which the university has
CONTROL such defaults bonds and decrease in the
interest endowment funds The University of Chi
that 40 percent its endowment has
disappeared for the In the Wall Street district
New York. office vacancies approximately quarter
greater the bleak year 1892 with quarter of
million fewer workers employed than in 1929 hi
attending the Stanford business conference last
heard Harvard Economist Dr. j. Franklin Ebersoe tell
hem that the isn't likely to bring interest BOOM that
expect percent percent
interest after referring to $28000 100000 of funds
valuable and business financing The bank
advised to cooperate freely with the government
could conscrp the whole
v plants and manpower-f necessary-The Technocrat al
:,
respassing ssr's '''.s
g. Legal action started last week by pr