TREASURY DEPARTMENT APPROPRIATION BILL, 1947 WEDNESDAY, APRIL 10, 1946 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D. C. The subcommittee met at 10:30 a. m., pursuant to notice, Hon. Kenneth McKellar presiding. Present: Senators McKellar, Hayden, Green, and Reed. Also present: Senators Johnson of Colorado, and Gossett. TREASURY DEPARTMENT BUREAU OF THE MINT We have with us today Mr. Albert R. Erskine, president of George T. Brodnax, Inc., of Memphis, Tenn., and I am going to ask the committee to allow him to testify first. Mr. Erskine, you may proceed. STATEMENT OF ALBERT R. ERSKINE, PRESIDENT OF GEORGE T. BRODNAX, INC., MEMPHIS, TENN. Mr. ERSKINE. My name is Albert R. Erskine. I am president of George T. Brodnax, Inc., retail jewelers, Memphis, Tenn. STOCKS OF SILVER IN HANDS OF MANUFACTURERS AND RETAILERS I have been asked about the stocks of silver in the hands of manufacturers and retailers. I am a retailer and have made a survey of many prominent retail dealers with reference to their stocks of silver goods on January 31, 1946. PERCENTAGE OF OWN SUPPLY ON HAND Senator MCKELLAR. Wait one moment, please. I believe I understood you to say at the present time your stocks on hand are about 75 percent less than you had in 1942. Mr. ERSKINE. That is correct. Senator MCKELLAR. You may proceed. Mr. ERSKINE. That is silver flat ware and hollow ware, silver-plated flat ware and silver-plated hollow ware. 83376-46- -16 239 Senator GREEN. Why do you include the silverware in your computation? That is only a small part of the silver uses. Mr. ERSKINE. I am just trying to give the full picture. Senator GREEN. Before you give the figures, I want to know what your theory is. What are you trying to show? SUPPLY ON HAND INSUFFICIENT TO MEET DEMAND Mr. ERSKINE. I am trying to show that as a retailer and representing other retailers here, that they have far less on hand than needed to adequately supply the public demand. Senator GREEN. That is just for that particular industry, the silverwar industry? Mr. ERSKINE. Yes. Senator GREEN. I thought you were testifying on the use of silver generally. REASON FOR REDUCTION OF SILVERWARE QUOTAS TO RETAILERS Mr. ERSKINE. Being in constant contact with our manufacturing sources seeking more goods I have definitely determined that because of over-normal drawings from the Treasury under the Green Act in the last 2 months of 1945 they started 1946 with an inventory of silver to last them about 3 months. Shipments to them in January were only 20 percent of what they received in 1945 and in February only 5 percent of 1945 while in March they have received nothing. Consequently, their quotas to retailers have been reduced and they advise that they can make no promises beyond April. In other words, we have no hope held out to us beyond April of receiving any silverware unless some is relinquished. PRESENT SILVERWARE STOCK OF CERTAIN RETAILERS In support of my statement about retail stocks I attach statements from Marshall Field & Co., of Chicago, whose present stock is 25. percent of the silver goods they had in 1942. The stock of Arthur A. Everts Co., of Dallas, Tex., is 17.2 percent of what they had in 1942, and on plated ware, 16.3 percent. J. J. Sweeney Jewelry Co., of Houston, Tex., their stock is only 20 percent of what they had in 1942. Maier & Berkele, of Atlanta, have a stock of 37 percent of their 1942 stock. Schwanke-Kasten Co., of Milwaukee, Wis., has 34 percent of their 1942 stock. Spaulding & Co., of Chicago, have 32 percent of their 1942 stock. George T. Brodnax, Inc., whom I represent, have 17.19 percent of what they had in 1942. Black, Starr & Gorham, Inc., of New York, have 23.68 percent of their 1942 stock. I have statements here attached from these different firms, showing their situation. Senator MCKELLAR. Do you want them to go in the record? Senator MCKELLAR. Without objection, they will be put in the record. (The statements referred to are as follows:) COMMUNICATIONS FROM RETAILERS RELATING TO SILVERWARE STOCK ON HAND MARSHALL FIELD & Co., Mr. A. R. ERSKINE, GEORGE T. B.ODNAX, Memphis, Tenn. DEAR MR. ERSKINE: I am glad to advise in reference to your question in your letter of April 3. The comparison in our stock as of January 1, 1946, versus the same period in 1942 is a sad one, as we only had on hand 25 percent of the merchandise that we did formerly. This figure covers only domestic hollow ware and flat ware, both plated and sterling, from manufacturers in this country. Our over-all picture as I wrote you before, was not quite as drastic due to the fact that we have been able to get a fair percentage of antique silver from England to keep us going through the war years. Our present situation is quite pitiful in view of the fact that customers are clamoring for the silver they have been waiting for during the past few years. Every effort that you are now making is helping our industry immensely and if I can be of further help, please let me know. Sincerely, J. C. RALEIGH, Section 78. ALBERT R. ERSKINE, DALLAS, TEX., March 27, 1946. President, George T. Brodnax, Inc.: Our present sterling inventory is 17 percent of 1942 inventory. Our platedsilver inventory is 16 percent of 1942. We normally carry a large stock of silverware and we and our customers are both in bad shape because we are unable to purchase silverware at the present time. Mr. ALBERT R. ERSKINE, ARTHUR A. EVERTS Co. J. J. SWEENEY JEWELRY CO., Houston 2, Tex., March 29, 1946. President, George T. Bronax, Inc., Memphis, Tenn. DEAR MR. ERSKINE: We are glad to have your letter of the 26th and hasten to reply to same, but first let us thank you for the interest you have taken in sterling silver, and hope that your activity will succeed in relieving the very tense demand for sterling silver throughout our land. An analysis of our silver inventory at the present proves to be only 20 percent of the inventory carried in 1942, and due to the large backlog of orders and the great demand, we cannot expect any improvement in this ratio until production again gets back in full swing. It is too bad that a small section of our country should want to penalize the greater portion in making silver higher and to their profit. In plain words, the minority are profiting and the majority would be penalized. Do not hesitate to call on us whenever necessary for the benefit of the jewelry industry. Of couse, that means silver, diamonds, etc. Sincerely yours, GEO. J. MELLINGER, President. MAIER & BERKELE, Atlanta 3, Ga., April 3, 1946. MR. A. R. ERSKINE, George T. Brodnax, Inc., Memphis, Tenn. DEAR MR. ERSKINE: In reply to your letter of April 2, I don't see how it would be possible for anyone to seriously contend that there are large stocks of silver in the hands of either the manufacturers or retailers. As far as we are per sonally concerned, I do not believe our stocks have been so low in our 59 years of business as they have been in the last couple of years. Our silver inventory in the Atlanta and Savannah stores combined in January 1946 was about 37 percent of January 1942 figures, and about 29 percent of January 1943 figures. Our stock in January 1942 was a little under normal. This is the primary reason for this difference in the 1942 and 1943 percentages. I trust that this information will be of some assistance in exposing the fallaciousness of the silver interest's testimony. If there is anything further we can do, please let us know. Very truly yours, Mr. ALBERT R. ERSKINE, FRANK H. MAIER, President. SCHWANKE-KASTEN CO., Milwaukee, Wis., March 29, 1946. Care of George T. Brodnax, Inc., Memphis, Tenn. DEAR MR. ERSKINE: In accordance with your request of March 26, we are giving you our situation as regards silverware. Our 1945 total inventory in silverware was 34 percent of our 1942 inventory. We can consider our 1942 inventory our normal stock. Our 1945 sterling hollow ware inventory was 31 percent of our 1942 sterling inventory and our plated hollow ware 1945 inventory was 18 percent of our 1942 plated inventory. You can see from these figures that we are very much in need of silverware and we most certainly are not hoarding any of these silverware products. We want to thank you for your interest in the silver situation. If there is anything further that we can do to help in your effort to get silver to the manufacturers, please do not hesitate to call on us. Yours very truly, Wм. H. SCHWANKE. SPAULDING & Co., Mr. ALBERT R. ERSKINE, Chicago, Ill., March 28, 1946. President, George T. Brodnax, Memphis, Tenn. DEAR MR. ERSKINE: In reply to your letter of March 26, our silver inventory,. both sterling and plated ware, on January 31, 1946, was 32 percent of the sterling and plated ware inventory we had on January 31, 1942. Mr. WILLIAM F. MCCHESNEY, Hotel Statler, Washington, D. C. BLACK, STARR & GORHAM, INC., DEAR MR. MCCHESNEY: Here is the requested information showing the relationship of our inventories as of January 31, 1946, and January 31, 1942. Our inventory of domestically produced sterling flatware, hollow ware, and novelties on January 31, 1946, was $67,764, or 25.29 percent of the inventory on January 31, 1942, which was $267,933. Our inventory of domestically produced plated ware on January 31, 1946, was $1,599, or 6.39 percent of the inventory on hand January 31, 1942, which stood at -$25,040. The total of the above sterling and plated ware inventories on January 31, 1946, was equivalent to 23.68 percent of the inventories we had on January 31, 1942. Very truly yours, EDWARD KREHBIEL, General Manager. Mr. ERSKINE. I have also a catalog, Senator McKellar, and I have indicated on the silver hollow-ware items the stocks that we did not have. Senator MCKELLAR. Senator Hayden says we cannot put that in the record. Senator Hayden is our expert on printing and whatever he says is our policy. PETITIONS ON NEED FOR SILVER AT PRESENT PRICE Mr. ERSKINE. I have a petition here signed by recent purchasers of silver who hope to get what they have ordered. Senator GREEN. Could you elaborate a little bit as to where they are? Mr. ERSKINE. Ninety percent of these people live in Memphis. They are young brides and their families who are trying to buy silver to use in their newly established homes. Due to the fact that the demand has exceeded the production for the last few years, we have been taking orders for later delivery. These people here have signed this petition asking that silver be supplied to the manufacturers at the present price of 71.11 cents. Senator GREEN. How many are they in number? Mr. ERSKINE. I have not counted them, but I think they number in the neighborhood of 300. It is a computation of March 12. Senator GREEN. Do you offer that as typical of the rest of the country? Mr. ERSKINE. I do. Senator GREEN. Do you know of other cases where they make these waiting lists? Mr. ERSKINE. Yes; I think it is standard practice, Senator; all around the country they are endeavoring to help out these returned GI's and their brides by taking orders for future delivery because when they get married they can get presents that they could not possibly hope to receive later. Senator MCKELLAR. I think a number of five names might be all right, and then add that you have so many more. I do not believe the whole list of names need to be put in the record, because it would make a list too large. Turn it over to the stenographer and he will enter it in the record as I have indicated. (The document referred to is as follows:) |