Salt Lake Telegram | 1933-05-25 | Page 3 | Wall Street Scans Morgan Balance Sheet

WALL HALL STREET STR r ET I SCANS SCANS' MORGAN SHEET I I BALANCE HERTELL nv d p Press ess F Financial na Writer l. l 25 For u-For For the first NEW YORK May idaY time Wall street treet has been able to a the sheet heet of the 31 mighty study of Morgan and Howe Ouse 0 discussion Revoked keen ked has bas cv evo too lost money in m recent Morgan organ I th the figures res show v. ars r J spread upon the records at M statement state state- the Consolidated n W mn Sent ment contained disclosures ot of widespread wide wide- spread RigorouslY d interest maintaining af a a. a highly condition during the six years liquid l f 4 the firm revered vered bY bythe the heavy holdings holdin s of U US U.S. reports S g government securities State Slate dwindled al al- al bonds municipal most Sort to to negligible i proportions from S to the end of 1932 Corporate 1927 and bonds owned were relative relatively rela rela- stocks contrary to previous belie belief belief be be- tive lew V lief lie In security Insecurity circles FEW COMMON 01 STOCKS discloses that only The he statement of ot common stocks were I held ld at atthe the end of ot last year as contrasted con con- In govern- govern bonds in cash or on deit deposit deSin de- de posit Sin it in other banks and andl stood in m call loans ans Corporate n 3 at Sort about but state sUte and municipal mu mu- liens amounted to only 6 56 from having declined WO held on December 31 1927 of 1929 Even in the halcyon days when equities were as popular as beer Snow holdings of government se se- the is now stocks Ses far exceeded common s The he figures stood respectively at and eyed Eagle Served statisticians were quick to ascertain that liquidity was more than 78 per ner cent as of December 31 1932 Sg counting only cash call loans loan and government bonds as liquid A proportion of liquid assets to deposIts deposit of almost 85 per cent is indicated however i if and corporate corporate cor- cor bonds are counted as liquid consider which many authorities Soper proper in ta view of the fact that such securities involve cut but limited amounts and are all carried at market prices DROP IN DEPOSITS t A sharp rp drop in de deposits was shown n from the of December De ce cember 31 the the 1927 the peak for the six six- year period period to to as of De Dc- December f cember 31 1932 The volume of dec de de- c I posits as well eU as the total resources of were generally smaller small small- er than the financial community ex ex- ex Jt Jr P P. P Morgan Co has no stated capital but carries this item as net Unet worth This represents money the partners have in the firm after losses and expenses The net worth stood at at the end of ot 1920 but by December 31 1932 it had been reduced to 53 indicating losses of more than 55 per cent In this connection analysts pointed point point- ed cd out that all investments are carried car car- ried red at market and that provision for possible losses on outstanding loans is made by writing down the net worth as carried on the balance sheet