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PROGRESS OF AMERICAN ARBITRATION IN BUSINESS. The American Arbitration Association, Inc., with headquarters at 342 Madison Avenue, New York City, was founded in January, 1926, for the purpose of promoting the knowledge and use of arbitration in the settlement of civil and commercial controversies. It is the only national organization devoting its entire resources to this field of business economics. The association is a consolidation of the Arbitration Foundation, Inc., founded by Charles L. Bernheimer in March, 1925, and the Arbitration Society of America, founded by Moses H. Grossman in May, 1922.

their witnesses testify and submit proof witho strict regard to legal rules of evidence. Under t American Arbitration rules attorneys may appe as counsel, but in some trade organizations th are barred from the proceedings. The award the arbitrator is final except in States where appeal is authorized by law, and the award m be set aside only for fraud or impartiality by t arbitrator.

The association's officers are: President, Anson W, Burchard; Vice Presidents, Andrew Adie, Boston, Samuel Rea, Philadelphia; Franklin Simon, New York; William Sproule, San Francisco: Harold E. Emmons, Detroit; Julius Rosenwald, Chicago; Robert Goodwyn Rhett, Charleston; Frances Kellor, New York; Chairman of the Board, Lucius R. Eastman; Vice Chairman of the Board, Felix M. Warburg; Treasurer, Samuel McRoberts; Secretary of the Board, James H. Post. It has a council of seventy-five members. Affillated are more than 200 national, State and local trade, commercial and civic organizations in the United States and twenty-three foreign trade and commercial or ganizations.

The association carries on these activities:

It conducts a tribunal which handled 210 cases during the first seven months of the new organization. In these 96 hearings were held, 79 awards made, and 94 cases were settled without a hearing. A total of $436,113 was involved in the 79 awards. The average cost was $20 in each case formally arbitrated, and the time of each hearing averaged about one hour.

It co-operates with business organizations in the establishment of their own arbitral machinery, drafts rules of procedure, forms and standard clauses for contracts and makes trade analyses and surveys.

It maintains a clearing house for existing arbitral tribunals, and furnishes general information or specific data on any phase of the arbitration movement.

It drafts and presents to interested agencies for their consideration suggestions for arbitration legislation.

It has undertaken to publish a number of standard books on arbitration and has granted fellowships to universities and colleges for the study of various phases of commercial arbitration. Any civil disputes subject to litigation may be submitted to arbitration excepting matters consummated in accordance with specific laws and matters specifically exempt by statutes, such as title to real property. Arbitration is a voluntary proceeding requiring the consent of both parties to a dispute. If they agree to arbitrate, the parties to the action execute a submission, that is, an agreement defining the subject in controversy and binding the disputants to abide by the award of the arbitrator. The arbitrator or aroitrators are named by agreement between the disputants themselves, by the American Arbitration Association or by any trade or commercial organization as the parties to the dispute may decide. The date and place are set for the hearing at which the disputants and

Some 300 national, interstate and State tra commercial and civic organizations in the Unit States actively resort to arbitration in the sett ment of business disputes of their members. Lea ing these is the New York Chamber of Commer which has conducted arbitrations since 1768. Amo the prominent national trade associations whi settle their disputes by arbitration may be me tioned the Grain Dealers National Associatio which has settled over 1,200 disputes since 190 the Motion Picture Producers and Distributors America, which disposed of 11,887 disputes a made 5,450 awards involving $1,351,206 in 192 the Silk Association of America, which has a reco of but five appeals to court from 233 awards; t National-American Wholesale Lumber Associatio that has handled during the last two years disput involving over $500,000, and numerous others. T trend of arbitration development is indicated the use of joint inter-trade boards or arbitral plas established or adopted by various branches of th same trade or between allied trades, such as is no in operation in the cotton industry, the boot an shoe and the leather industry, between grocer canners and food brokers and in many other in dustries.

Statutory arbitration became necessary becau of the difficulties encountered under the comme law interpretation of arbitration agreements. Und the United States Arbitration Act, which has be in effect since January 1, 1926, written agreeme to arbitrate controversies arising out of intersts commerce in which more than $3,000 is involve or out of maritime transactions, are valict a irrevocable, and awards are enforceable by d courts. This is also true under the New Yor New Jersey, Massachusetts and Oregon Arbitrati Laws, which make enforceable agreements to a oitrate controversies arising out of contracts submission to arbitration of existing disput without regard to the amount involved.

The following thirty other States have statut which provide for the arbitration of existing disput only and which regulate the procedure in varie ways: Alabama, Arizona, Arkansas, Californi Connecticut, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Michiga Minnesota, Mississipp, Missouri, Nebraska, Hampshire, Ohio, Pennsylvania, South Caroli Tennessee, Texas, Utah, Virginia, Washingt West Virginia and Wyoming. In a few other Stat such as Colorado, Delaware, the District of Colum Maryland and Oklahoma, arbitrations are ther limited in scope to disputes of a particu kind. Under many of these statutes, submissi agreements are generally revocable at any prior to the filing of the award. An effort to monize these varying State laws with the fundamen principles of the Federal Act will be made during legislative sessions of 1927.

MOTHERS' PENSIONS LAWS IN FORTY-TWO STATES. The Children's Bureau of the United States, per 100.000 of their populations, the figures for Department of Labor reported on Oct. 3, 1926, last three States almost reaching the vanl that forty-two States now have "mothers' pension" point-8.5, 4.4, and 1.4, respectively. laws providing for aid to children in their own homes, and 130,000 children are at any one date receiving such aid, but the total number of children who need such help is probably close to 350,000 or 400,000, the bureau estimates. New York City. which in 1923 spent $28.40 a month to care for a child in an institution, in 1925 spent only a little over $15 a month to care for a dependent child in his own home.

In Maryland (except for two counties) the moth aid legislation has become inoperative becau defects; in several other States practically no has been made of the law and in many States excellent work has been done in some locall the law has been ignored in others.

The first mothers' ald laws were passed Missouri and Illinois in 1911. The early laws te to restrict aid to widows; now some States pe The extent to which available appropriations aid to be granted to any mother with depen meet the need varies greatly from State to State, children and some permit other relatives as is indicated by differences in ratios of children ceive aid if they are caring for needy children, aided to general population. New York, Nevada, Six States give aid to expectant mothers. Cold California, Massachusetts, Wisconsin, Montana, Min- also gives aid to fathers with dependent childre nesota, New Jersey, Delaware, Maine and North The amount of aid allowed per child has tende Dakota were at the top of the list in the order named, increase, though twenty States place a maximus reporting aid given to more than 200 children per 100,- $39 or less a month on the amount that ma 000 of the total population. South Dakota, Oregon, paid to a family with three children. The tend Idaho, Wyoming, Iowa, Colorado, Connecticut, in the most recent laws is to place no specific Michigan, Utah, New Hampshire, Pennsylvania, in the law itself, but to vest in a public child-we Illinois, Arizona and Ohio reported ratios of 100 agency the responsibility for investigating app to 200 per 100,000 of their populations. Oklahoma, tions. for deciding the amount of ald needed, Washington, Nebraska, Kansas, Missouri, Florida, for supervising expenditures. Such agencies us West Virginia and Vermont had ratios ranging adopt a scientifically worked out budget for from 31 to 95. Arkansas, Indiana, Texas, Tennessee family which applies for aid and attempt to and Virginia reported less than 20 children aided whatever the budget calls for.

Financial and Economic Review of 1926.

YEAR OF WELL BALANCED PROSPERITY.

By S. S. Fontaine, Financial Editor of The World.

While trade and commerce of the United States | a year ago, while holdings of acceptances and of have flowed in somewhat irregular channels during United States securities were smaller.

Following the tendency of the latter part of the year 1926, the tide has been toward the flood. It has been a year of well balanced prosperity rather November. October, money rates eased slightly further in The decline, which at first affected than a boom year. Here and there were rather sharp call loan rates chiefly, extendea to time money, recoveries from the moderate reactions that de-commercial paper and bill rates, and yields on veloped in 1925 and there have been some setbacks. short-term Government securities. There was a But as most economists and business observers will firmer tendency toward the end of November acconcede there is a steady tendency toward business companying holiday currency demands. stabilization that makes depression improbable though not impossible and an increasing progress of general industry toward a wholesome ratio with the growth of population and wealth.

The chief influences toward this stabilization bave been the habits of frugality which the American people as a whole formed during the war, for profitering and profligacy were fortunately confined to a very small minority among the citizenry of the

country.

Influences that contributed as much as

any of these war factors toward the thrifty habits and the spirit of prudence that have come to possess the people were the various Liberty Bond campaigns so successfully engineered by former Secre fary of the Treasury William G. McAdoo and his ble assistant, Russell C. Leffingwell, now a member of the firm of J. P. Morgan & Co. As A direct result of these flotations, 20,000,000 in vestors were created in the United States and the Fast majority of these still have the habit of investment which is very largely responsible for the remarkable investment markets that Wall Street has witnessed since the reconstructive movement started in after the post-war depression in 1921. Another very important force making for the #tabilization of business has been the hand-tomouth habit of buying that the public has formed And which has spread from households to the shopkeeper and to the manufacturer. It is even felt in that basic industry, the steel trade, and accounts for the small margin that exists from time to time between the orders on the books of the big Corporations and monthly deliveries. Consumers of ed and other products have learned to shape their Inquiries and specifications to business in sight with the result that the speculative character of enterprise has been greatly curtailed and repressed and the hazards to the same extent eliminated. It Was very largely due to the overproduction of the war period and post-war period and the failure of producers of all classes to realize that overproduction is the handmaiden of inflation and inflation the parent of depression that brought about the long period of reaction that culminated in 1921 and only after the Federal Reserve Bank had been forced to resort to the most drastic repressive measures to bring about deflation. The lessons learned then, both by bankers and business men, we now very largely responsible for the rock ballasted roadbed upon which the present freight train of business is traveling on its leisurely but steady way. And the lessons that the bankers have learned are responsible for the admirable conservatism as well as constructive co-operation with business which the Federal Reserve system is showing in its credit policies. The violent financial disturbances which oldtimers in Wall Street remember were almost certain to occur in the crop movement season when the great harvests began to move toward the primary markets and required the active assistance of the metropolitan banks to finance their distribution are no longer a feature of the financial year. We have harvested an enormous cotton crop this year, a substantial wheat crop and a great com crop. In fact, it has been a year of abundance As far as the agricultural yield has been concerned And yet money rates have been remarkably steady and whatever necessity there may have been on the part of the bankers for using funds for commercial and agricultural requirements has been met by the conversion of liquid assets, such as loans on securities, into actual cash. In fact, money has moved in the direction of New York during this period, at times, instead of uniformly against It as in the days of the antiquated inelastic currency which so frequently caused the money panics of years ago. The course of credits during this season (to Dec. 1, 1926) has been completely traced by the Federal Reserve agent at New York. We are told that at the Reserve Banks the decline in the volume of member bank credit has been reflected in a reduction of the total bills and securities to a level $37,000,000 below Dec. 1, 1925. Discounts for member banks were in about the same volume as

Exchange since their publication was begun early Detailed figures of loans issued by the Stock in February follow:

Demand. Dollars.

Time. Total. Dollars. Dollars. 996,213,555 3,513,174,154

Jan. 30...2,516,960,500
Feb. 27.2,494,840,264 1,040,744,057 3,535,590,321
March 20.2,033,483,760
April 30..1,969,869,852
May 28...1,987,316,403
June 30...2.225,453,833
31...2.282,976,720

July

Aug. 31...2,363,861,382 Sept. 30..2,419,206,724 Oct. 30...2,289,430,450 Nov. 30...2,329,536,550

966,612,407 3,000,096,167 865,848,657 2,835,718,509 780.084,111 2,767,400,514 700,844,512 2,926,298,345 714,782.807 2,997,759,527 778,286,686 3,142,148,068 799,730.286 3,218,937,010 821,746,475 3,111,176,925 799,625,125 3,129,161,675

The Federal Reserve Board announced that total loans made to brokers and dealers on stock and bond collateral by the member banks in New York City stood at $2,646,653,000 on Dec. 1; $1.960,274,000 were demand loans and $686,379,000 were time loans. The highest point reached in the Federal Reserve reports on brokers' loans was on Jan. 6 at $3,141,125,000, and the lowest was May 19 at $2,408,695,000.

An analysis of the factors influencing money conditions indicates that the recent ease in rates reflects in part a very moderate reduction in bank credit throughout the country as indicated oy a decrease between the middle of October and the middle of November of about $100,000,000 in the total loans and investments of reporting member banks. The total amount of Federal Reserve credit which has been currently in use during November has been about $13,000,000 under the October average, although there has in past years frequently been an increase at this time of the year. The seasonal increase in acceptance holdings, which usually occurs in October and November as more acceptances come into the market to flnance the movement of cotton particularly, puts Federal Reserve credit into the market and enables member banks to liquidate part of their indebtedness at the Reserve Banks, and thus puts them in a position to extend credit a little more freely. There has been a marked tendency for interest rates to rise when member banks increased their indebtedness at the Reserve Banks and fall when they decreased their indebtedness. The movement of rates in the past month has conformed to that tendency.

The recent tendency toward easier rates has been accentuated by some movement of funds toward New York, and the great part of the reduction in member bank borrowing has occurred in New York. The effect upon rates has probably been greater than if the decrease had been evenly distributed through the country. movement of funds to New York appears to reflect in part an unusually large but temporary return of currency from circulation about the middle of October and again about the middle of November.

This

Loans on stocks and bonds of all reporting member banks were reduced further in November, and on Nov. 17 were about $275,000,000 less than at the end of September. Most of the reduction was in the loans of New York City banks for their own accounts. The seasonal increase in commercial loans continued later this year than last, and largely offset the reduction in security loans, but the tendency in total loans and investments and in total deposits of reporting member banks has been somewhat downward during the past two months. The decrease in deposits has been sufficient to release about enough reserves to account for the $13,000.000 decrease in total Reserve Bank credit in use referred to above.

As to the index of business activity the Federal Reserve Bank of New York furnishes a remarkably comprehensive summary. The bank's October indices of speculative activity, in which allowances. are made for seasonal changes, year to year growth, and as far as possible for any price changes, are compared in the following table with figures of

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We are told by the Federal Reserve Bank that it is now possible to make a reasonably accurate estimate of the year's business in 1926 in different branches of trade and to measure the result with the results of former years. It will be seen that since 1919 there has been an increase except in two years. One of these was in 1921 and the other in 1924. The following figures show the percentages of changes from the 1925 levels. An unweighted average of 111, according to the system of the bank, of such series, indicates a total volume of production and trade in 1926 about 5% higher than in 1925. This indicated gain for 1926 compares as follows with similar estimates of previous year to year changes. For instance:

1920 over 1919, +6%; 1921, -14% 1922, +16%; 1923, +12%: 1924, -2%: 1925, +6%; and 1926, +5%.

For

Naturally group averages indicate general tendencies roughly, but they do not sufficiently emphasize developments in some individual trades. instance, the textile trade has stood out as the most notable example of inactivity if not of positive stagnation. Prices have been unweighted and demand poor, but the first of December found a marked improvement in this basic trade due very largely to the overproduction of cotton in the South and the consequent low price. So that, what the Southland at first was disposed to regard as a catastrophe may in the end prove somewhat of a blessing, since manufacturers both in the North and the South are beginning to buy the raw product at a price which enables them to make a fair profit

even at the low prices prevailing worldwide for their output. Comparison in groups of industry positions has already been given, but a comparison from another standpoint, of the profit and loss exhibits of 1926, is equally interesting and less impressive. It has been prepared by Sulzbache Granger & Co., members of the New York Stock Exchange. Summarized it is as follows:

"Looking over the reports which are now coming to hand and comparing the results for the first ning months of 1926 with the same period of 1925 business presents the following data:

One hundred and sixty-three industrial co porations exhibit increased profits of 25.3% Sixteen public utilities show 12.5% larger net income.

Fifty-six Class I railroads report 14.2% bette net profits. Fourteen

automobile companies (excludin General Motors) show a decrease of 13.3 Including General Motors, the fifteen companie report an increase of 27% in income.

Ten food companies report better than 18 improvement.

Fifteen mining companies exhibit a 21.59 increase.

Twenty oll companies show 18% betterment Six office equipment companies report 1891 improvement.

Thirteen steel companies (omitting Unite States Steel) show an advance of 36%; including United States Steel, fourteen show 31% im provement.

Twenty-one miscellaneous companies, includ ing such as American International, Columbia Carbon, du Pont, Eureka Vacuum Cleaner International Salt, Owens Bottle, Savage Arms U. S. Hoffman Machinery, Vivaudou, Whit Rock, and Wright Aeroplane, show 43% hanced earnings.

"If the fourth quarter of 1926 is only moderately successful, it looks as if 1926 corporate earning will be better than those reported for any yea since 1918."

We have had a retrospect of business condition for the year, but those who like to look forwar as to what the prospects are for 1927 may wel accept the guidance of the Harvard Economk Service, which makes this forecast:

"Despite indications of a readjustmeat affecting basic industries, business remains active and believe that any readjustment which may appes will prove to be only temporary. We look forwan to a continuation of active business during the nes half year despite irregularities from month to month from section to section and from industry to in dustry.

"It is hardly probable that business will attali higher levels than those of the second half of 192 and because of certain moderating influences including the possibility of a temporary recession in basic industries, it may average somewhat lower

"On the other hand, there is clearly no prospect of tightening in the money market such as would bring to an end the present prosperity phase of this business cycle."

COMMISSION.

commission up to July 1, 1926, 523 were for major projects for power development requiring the full application of the act. Of these 250 have been canceled or withdrawn, leaving 273 in active status. with a capacity in horse power of proposed installa tion of 24,750,000 horse power. The commission has issued a total of 389 permits or licenses. Fo major projects 137 permits and licenses are outstanding with an aggregate of 16,100,000 horse power, leaving 136 major applications with a tota of 14,690,000 horse power still awaiting action.

FEDERAL POWER The Federal Power Commission in its sixth annual | report announced that during the fiscal year 1925was started upon twenty new 26 construction projects which will have when completed an installation of 1,220,000 horse power, or 40 per cent. of the total placed under construction during the preceding five years. Among these new projects are the Lock 18 development of the Alabama Power Company on the Coosa River in Alabama, with 180,000 horse power: the combined power and navigation development at the falls of the Ohio, Louisville, Ky., with 135,000 horse power: the Conowingo development of 473 000 horse power on the Susquehanna River in Maryland and Pennsylvania, and five projects in California aggregating 417,000 horse power. These projects bring the total of plants placed in operation or under construction under license of the commission since July 1, 1920, to 3,900,000 horse power.

Of 636 applications for restoration of lands within power-site reserves to entry the commission has acted upon 612, decisions have been reached in eighty-eight out of ninety-eight of the declarations of intention for proposed developments which have been filed, and 179 out of 203 applications for minor projects have been disposed of.

Of the 726 power applications filed with the

Of the many major applications these are notable. the development at Louisville, on the Ohio River. which involves not only a power installation of 135,000 horse power but also the navigation improvement of one of the most important interna waterways of the United States; the Conowing project on the Susquehanna River which affects the interests of Maryland and Pennsylvania and will cost more than $50,000,000; the series of projects under way by the Southern California Edison Company which will require an expenditure of some $135,000,000: and the St. Lawrence projects which, when undertaken, must be handled by the commission with due regard to the public intereste of the State of New York, of the United States. and of Canada, and with an investment of hundreds of millions of dollars.

UNITED STATES EMPLOYEES COMPENSATION COMMISSION.

(Washington, D. C.)

Commissioners-Bessie P. Brueggeman (Chairman), Charles H. Verrill, Harry Basset. Secretary—

E. V. Parker.

BOND MARKET REVIEW FOR 1926. By John A. Crone.

The financial and economic improvement in most parts of the world, notably in Europe, and the abundance of money here enabled 1926 to witness the greatest amount of new financing-both foreign and domestic-and the highest prices for bonds In history. The assistance furnished by Germany, Austria and Hungary-through stabilization credits to their former enemy, Belgium, to return to a gold basis, and the sale of Berlin subway bonds on Armisce Day by England and Canada, were more signiftant and far-reaching than Britain's ban on the sale of Brazilian bonds in London because of Brazil's action in the League of Nations, or the Franco-Italian controversy.

At the beginning of the year it was predicted Norway and Belgium would return to the gold standard, France would rehabilitate her finances, and Italian utilities would seek large sums here. The latter two were only partially realized.

The United States assumed a greater place in world events as its purse became more internationalized. American capital invested abroad now Dee. 1, 1926) totals $4,607,776,140 for loans offered bere publicly, of which more than a fourth is in Canada.

Of the $1,123,556,000 of foreign bonds sold in New York in the first eleven months of 1926 Canada received $347,511,000, or 31% South America $306,000,000, or 27%, and Germany $284,000,000, or 25%.

Our northern neighbor borrowed $129,250,000. or 36% of the bond issues she floated here for the development of her utilities. Dominion railways Bold $31,658,000 of bonds, or 12% of Canadian financing, while paper mills got $31,658,000, or 9%. German steel companies received $102,$15,000, or 36% of all German bond financing in New York: electrical manufacturers got $48,250,000. or 17% and utilities $23,500,000, or 84% Over half of the total domestic bond issues were for industrial and real estate purposes, while nearly three-quarters of the remainder were sold by public utilities. Cheap money, as illustrated by a buildIng, automobile and stock market boom going on simultaneously, caused records to be shattered in the number of bonds called in advance of maturity, some $816,886,600, against $812,540,200 in 1925, the previous pinnacle. The general improvement In the credit of American business was mirrored Bot only in the vast quantities of bonds refunded with lower interest rates but likewise in the $37,494,250 reduction in the defaulted bonds of rails, utilities and industrials, which, as of Dec. 1, 1926, gregated $582,137,120.

Higher credit rating of American corporations as shown in the sale of $15,000,000 of CommonTealth Edison 4s, the lowest coupon for a utility ence the war, and the oversuoscription of $10,00,000 of Southern Railway common shares. Many foreign borrowings indicated credit betterment, such as the German Consolidated Municipalities, which were able to sell lower coupon bonds at higher prices than in 1925.

The scramble for bonds resulted in the offering of some low-grade investments at high prices. The speculative aspect of domestic new financing was emphasized by the sale of $404,751,000 of privilege bonds in the first ten months, or 11 per cent. Convertible debentures or warrant bonds registered gains of 40 points or more, but they also recorded tosses of the same amount.

The issuance of improperly secured real estate mortgage bonds, collateral trust bonds of utilities backed with common shares only, and increasing sales of open-end mortgage rails and utilities were disquieting trends.

Sales of bonds on the New York Stock Exchange for the eleven months, Jan. 1 to Dec. 1, 1926, totaled $2,796,254,000, as against $3,180,119,000 for the Hse period in 1925. Domestic securities for the like period amounted to $2,565,723,000 in 1926, as against $2.861,597,000 in 1925.

The sale of Treasury 44s 1947-52 at 110, the absence of June financing, and a record low volume of Stock Exchange sales of Treasury and Liberty issues were some outstanding events in United States Government securities. Only high-couponed Civil War loans ever commanded a 10 per cent. premium,

The Texas decision invalidating $100,000,000 of bonds, the Florida hurricane, a record sale of city bonds (the $75,600,000 of New York City 448), the largest State issue of the year ($28,475.000 of New York State 4s), and the paucity of soldier bonus and rural credit bonds were features In the municipal market.

Total tax-exempt securities outstanding Sept. 30, 1926, of $18,172,000,000 compare with $17,$82,000,000 Dec. 31, 1925.

FOREIGN BONDS AND FINANCING. The world poured its surplus funds into the New York money market. Frenchmen seeking safety from the franc and Englishmen fearing radicalism sent their savings here. German banks, unable to employ capital at home because of slackened industrial activities, sent their funds to New York. Holland, Switzerland and other countries followed Germany's example.

Many overseas investors, early in the year, realizing the true values of seasoned foreign dollar bonds, bought them. Later some purchasers, more speculatively inclined, took half of the Rheineble Steel bonds offered here, and bought huge blocks of German General Electric debentures.

The aggregate sale of foreign bonds on the exchange for the first eleven months estaolished a record, and the same feat was performed by foreign bond prices. German industrials, following the skyrocketing of their shares in Berlin, were the most volatile, although at the end of November they averaged only a five-point gain. German municipals had an average advance of 6 points.

French Government bonds averaged a ten-point gain toward the close of the year as capital began to return to France. French municipals and rails were up eleven points each. Belgium Government issues registered a net appreciation of eleven points, while Japanese Government and industrial securities were up two and four points respectively. The range of South American bonds, such as Argentine and Brazilian issues, was less wide.

Oddities in foreign financing included religious loans floated by the Roman Catholic Church of Bavaria, the German Roman Catholic Church, and the German Protestant Welfare Association, a participating bond (the only one now active on the New York Stock Exchange), Siemens & Halske 68, and the first Italian hydro-electric issue to be offered here. Berlin sold bank shares, the Fiat Company, an Italian automobile firm, sold bonds, and the German Steel Trust, the United Steel Works, marketed debentures here.

DOMESTIC BONDS AND FINANCING. The cheapness of money-time rates ranged between 34% to 5% and call rates from 3%% to 6%-lifted the average daily price of forty domestic bonas to the highest level in nine years, while it twirled the average monthly price to a top for all time.

The various copper bonds on the New York Stock Exchange as of Nov. 30, 1926, showed an average gain of eight points. Other advances were: Sugars 7 points, speculative rails 7 points, legal rails 3 points, steel and electric light and power each 3 points, middle-grade rails 2 points, oil and gas companies 24 points each, rubber and telephone securities 2 points each. Tractions closed with a net loss of 6 points.

Speculative rails attracted buyers as carriers reported car loadings and earnings. The sale of the St. Paul in Butte late in November and attempts to revive the Nickel Plate merger, which was disapproved by the Interstate Commerce Commission in March, proved big factors in junior rails. Legal rails, which move closely with money rates, were usually in greater demand than supply.

Steel bonds were bought as bookings and earnings gained. Electric power and light ponds were accumulated on the assumption that the MastickSargent bill, legalizing them for investments for New York State savings banks, would be passed. The defeat of the bill created a slight reaction, which was offset by the Legalization Act of Massachusetts. Rubber issues moved erratically cause of the fluctuations in crude. Oil issues late in the year reflected high inventories.

be

Features of domestic financing included the sale of $120.000.000 of 20 year 5% debentures by the Standard Oil Corporation of New Jersey to retire its preferred stock, and the marketing of $50,000,000 of 4% bonds of the New York Standard Oil Company. The latter gave the investor the lowest yield of any oil bond ever floated in the New York market, while the Jersey issue was the biggest industrial bond sold during 1926.

The United States Government, March 15. offered $494.898,100 Treasury 34s due March 15, 1956, and, Sept. 15, sold $378.669,500 of nine months' certificates of indebtedness, bringing the nine months' financing to $873,567,600, against $1,338,556,700 for all of 1925.

Liberty bonds outstanding Nov. 1, 1926, according to the Treasury, totaled $13,676,334,500, and Treasury issues $2,305,933,900, making a total of $15,982,268,400.

State and municipal flotations for the eleven months ended Nov. 30 totaled $1,211,823,664,

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Following is a compilation of foreign Government loans assumed by American bankers in order of their presentation Jan. 1 to Dec. 1, 1926:

Amount.

Description.

$3,300,000 Hugo Stinnes Indust. deb. 7s '46. 30,000,000 Hugo Stinnes Corp. notes 78 '36. German Prot. Church Welfare 78 '46.. 60,000,000 Berlin Elec. Undergr'd Ry. 6s '56...

20,000,000

Total...

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The Dominion of Canada and its provinces and cities came in for extensive financing as follows

Description.

Province of British Columbia 448 28.

Province of British Columbia 1 yr. 4348 Province of Ontario 4s '55..

Province of Alberta 4s '46

Amount

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$283,820,000

Description.

Baden Con. Municipal 78 '51.

Cauca Valley Colombia 768 '46.

$217,812,000

Amount.

Total.....

Similar data on foreign cities, states and provinces

offered in this country:

Province of Buenos Aires 748 '47.

Province of Buenos Aires 78 52.

Saxon State mortgage 78 '45.

Oslo 528 '46..

Province of Lower Austria 78'50

German Con. Municipalities 7s '47.
City of Leipzig 7s '47

Bavarian Palatinate Cities 7s '45.
Berlin City Electric 68 '29.
State of Sao Paulo 7s '56..
Department of Caldas 7s '46..
Province of Buenos Aires 7s '36.
Dept. of Antioquia 7s '45.
State of Hamburg 1 yr. 5S
City of Porto Alegre 748 '66.
Description.

Province of Syria 7s '46.
Colombia Mtg. Bank 78 '46..
State of Anhalt 7s '46...

Chilean Mtg. Bank 648 61.
State of Bavaria 648 45.

State of Prussia 68 '51.

State of Hamburg 6s '46.
Hungarian Con. Cities 78 '46.
City of Chemnitz 1 yr. 548 notes.
City of Hanover 1 yr. 528 notes '27
Republic of Honduras 7s '29.
Yokohama 6s '61...

Total...

Similar data on foreign corporations: Description.

Rheinelbe Union 7s '46........

Upper Wurtemberg Hydro-Elec. 7s '56

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Dominion of Canada 44s '36. Nova Scotia 448 '28..

40.000.000

7,000,000

Province of Ontario 448 '44.

1,000,000

Province of Ontario 438 28.

25,000,000

Province of Quebec 448 '56..

7,500,000

Province of New Brunswick 448 '36.

2,792,000

$14,472,000

10,600,000

Province of Manitoba 5 mos. 4) Nova Scotia 44s '46..

2,651,000

2,500,000

5,000,000

Alberta Improvement 448 '56.

6,000,000

4,500,000

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