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Velvet Tones were recorded and pressed by Columbia as a budget label. They used the same masters as Harmony or Diva and were simply numbered 1000 higher with a "V" suffix substituted.
Columbia had just built a new acoustic recording studio in 1924 when the electric microphone swept the industry the following year. To recover this investment, that studio continued to be used for Columbia's budget and client labels at least into late 1929. However, pressing quality was very good for the era, on par with Columbia's name-brand releases.
Due to the global economic crisis the label closed 1932.