Evening Star Newspaper, February 13, 1932, Page 13

FINANCIAL, NEW YORK STOCK EXCHANGE Received by Private Wire Direct to The Star Office. BANKERS T0 MEET | AT ANNUAL DINNER Institute Authorities Expect Nearly 600, Including Four National Officers. BY EDWARD C. STONE. Nearly 600 members and guests of Washington Chapter, American Insti- tute of Banking, will attend the annual! banquet tonight at the Willard Hotel, ! this being the largest gathering of the year among financial folks in Wash- ington. Four national officers of the institute are to be present, including ! the president, Henry J. Mergler of Cin- cinnati. Willlam M. Hoxton. chairman of the Federal Reserve Bank of Rich- mond. will also be among the many other invited guests. Aubrey O. Dooley, chapter president, will preside, I. J. Roberts being chair- man of the dinner committee, and Frank M. Perley the entertainment committee. President Mergler is to! make a short address for the national | organization, while Attorney Frank J. Hoganhas agreed to furnish the humor. Some exceptional talent has been se- cured. the entertainment to be fol- lowed by dancing. Considering present conditions in the banking world, number of reservations is most gratify- ing to institute officers. The subcommittees arranging to- night's institute banguet at the Wil- Jard include Mabel V. Royce, .Dance; W. L. Sanderson, Decorations: Richard | A Norris, Dinner; Frank M. Perley, Entertainment; Paul J. Seltzer, Invita- tions: Robert H. Lacey, Publicity: T. Hunton Leith, Reception, and James A. Soper, Seating. Sales Conference Held Here. The fourth annual Spring conven= tion of the National Electrical Supply Co., local distributors of General Elec- tric refrigerators, was in session today at the Mayflower. More than 100 deal- ers, executives and salesmen were pres- ent Reports on sales during the past year were presented during the forenoon ses- sion. Following a special luncheon this noon it was planned to devote the rest of the day to sales problems and a brief outline of merchandising activi- ties designed to aid distributors, deal- ers. utilities and salesmen. This part of the program was to be presented by a group of men brought here from Cleveland to present the ideas through: the medium of a drama. Officers at Credit Conference. J. William Pennell of the Camden. N.'J.. Credit Association, will preside at ! the Columbia Regional Conference of Credit Bureau Executives which opens at the Mayflower Monday for & two- day session. The other officers are| James D. Hays, first vice president.; Harrisburg; Vincent A. Rogerson, sec-| ond vice president, Clarksburg, W. Va.. and William H. Talley, secreur}-trcas-" urer. Wilmington, Del The Washington association. which §s sponsoring the meeting. is headed by Martin M. Wats:n, president: Charles M. Keefer, vice president; Stephen H.' Talkes, secretary-treasurer, and Charles ‘men, assistant secretary. The ry and assistant secretary. to-| with Mi's Eisie M. Lee, have as the committee of arrange- | ments Personal Loans on Increase. s all over the borrowers are | e attention. In, abstract from the | of the Nati"nal City timely interest. It says: e compound interest depart- and the personal loan depart- represent the fields in which we our clients in largest number, and X in these departments | gratifying tectior report - s of met nce the personal loan department was opened in 1928 we have made near- Iy 284000 loans, averaging $345 each, the number for the year past being 88.000. There remain cn our books at the vear end 77.000 loans of this class of an aggregate amount of just over $25.000,000. These loans, which are payable on an instaliment basis show the lowest rate of delinquency since this service was begun, giving us added faith in the smail and deserving bor- rower.” Better Credit Conditions Seen. One of the primary functions of the Reconstruction Finance Corp., states the United Business Service, of Bos- ton, in its report issued today. will be to halt the cumulative snowball of business defaults. When bank and commercial failures are increasing, col- lections are invariably unsatisfactory. The operations of the Finance Cor- poration will do much to improve credit conditions, particularly in those sections of the country which have been affected most severel Heard In Financial District. The Washington Stock Exchange and all the New York Stock Exchange of- fices in Washington were open again today, following the Lincoln birthday anniversary holiday. Intense interest was manifested in today's session of the New York Exchange because of the sharp and sudden advances on Thursday. Bertram Chesterman, president of the Morris Plan Bank of Washington, was one of the principal speakers at the Midwinter conference of executive officers of the Morris Plan Banks in the Atlantic area yesterday in Balti- more. Robert O. Bonnell presided. Commercial men of the gas indus- try are to hold the 1932 Eastern Na- tional Gas Regional Sales Conference in Pittsburgh on February 25 and 26. The District of Columbia is included in_the territor. Dr. Scott Ewing of the Bureau of Standards will address the ninth an- nual conference of the Distribution Committee, technical section, of the American Gas Association at Birming- ham, Ala., at three-day session begin- ning April 6. Many of the Nation's leaders in the gas industry will attend. BANK FAILUR.ES FEWER, WEEKLY RECORD SHOWS Bpecial Dispatch to The Star. NEW YORK. February 13.—Suspen- &ions of banks in the United States dropped to a record low weekly figure for the past 12 months, while reopen- ings continued favorably, the American Banker, daily banking publication issued in New York, reports for the week just passed Bank closings _reported totaled only 17 for the week. Reopenings were seven. No bank closings at all were reported on Tuesday, February 9, which was the first day with no_closings since early in 1930. s Failures since the first of the year at the close of the week reached 402. the list having been swelled by the addition of 24 January faflures, the report of which had been delayed by the Illinois Banking Department. Total estimated deposit liabilities tied up in closings to date this year have been $199.950,000. The total additional closings reported last week affected $20,450,000 in de- posits. January closings total 351. In the first 10 working days of February there have been only 51 suspensions. Reopenings certified through to the American _Banker last week included banks in Johnson City and Hutsonville, Tl.; Warsaw and Syracuse, Ind.; Ara- pahoe, Nebr, and Perryville, Ky. Pays Off Bank Loans. NEW YORK, February 13 (P).— Harry Cohn, president of Columbia Pictures Corporation, says that the company has entirely paid off its bank loans, which at their recent amounted to $900,000. 57, Ty 157y B5% 168 81 T 61y Td4™ 135, 1. Ty 181 L3 151y 657 81y 347y 35 81y 33 108t in 100-share lots exeept those designated by letter “s.” Bal Net. Dividend Rate. 2 Abitibi Pwr & Paper. 5 Abitibl Pwr & Pa pf. Adams Express Adams Millls (2) Affiliated prod 1. Alr Reduction(t4%) Alaska Juneau (50c) Alleghany Corp..... Alleg Cp pf 330 ww Alleg Cp pf $40 ww. Allied Chemical (8). Allis-Chalmers(50e) Amerada Corp (2)... 54 Am Agri Chem(Del). 12's Am Bank Note (2). % Am Beet Sugar..... 12 Am Br Shoe (1.60). 544 Am Can Co (15). Am Car & Foundry.. Am Car & Fdy pf (7) Am Chicle (#3)...... 101 12 ropean Secur. Am & For Power.... Am & For Pwr pf(6). Am & For Pwr pt(7) Am & For Pwr 2d pf. Am Haw St’ship (1). Am Hide & Leather. . Am Home Prod 4.20 Am Jee (2)... Am Ice pf (6) Am International Am La France&Fom. Am Locomotive. . Am Mch & Fdy 1.40 Am Metal Co. Am News (3). Am Pwr & Lt (1) Am Pwr & Lt pt (6) AmP& Ltpf A (5 Am Radiator (40¢). safety Razor (5) 1t & REg(50¢) &1 2 DF (6) . %). Am Solv & Chemica Am Solv & Chem pf. Am Sugar (4) Am Sugar pt (7). Am Tel & Teleg (9 Am Tobacco (16).... Am Tobacco B (16).. Am Water WKs (3) .. Am Wat Wks cfs(3). Am Woolen Co. ‘Am Woolen Co pt Anaconda Copper Anchor Cap (2.40). Arel »aniels (1) Archer-Dan pf (7).. Armour of Il (A). Armour of 111 (B). Armour of 111 pf. Associated Apparel. + Associated Dry Gds. Associated Oil Atch To & San Fe(6) Atlantic Refining (1) 7 Atlas Powder (2)... 723, Atlas Powder pf (5). 911, Auburn Auto (f4)... 1y Autosales. ......... 25, Aviation Corp (Del). Balawin Locomotiv Baldwin Loco pf. Baltimore & Ohio. .. Balto & Ohlo vf (4).. Banz & Aroos (3'%3). Barnsdall Corp..... . Reatrice Cream (4) Belding-Hemingway Rendix Aviation (1). Best & Co (2). RBethlehem Steel. RBlaw Knox (30¢). Bohn Alumn (113 Borden Co (3) Borg Warner ( Briges Mg (1) Bklyn-Man Tran (4) klyn Union Gast5). Brunsw-Halke. .. Bruns Term & Rwy 31, 5 97 Burroughs Add(80c) 50 Rush Term deb (7).. . Butterick Co. anada Dry (1. Canadian Pacific 13§ . Cannon Mills (1.60). Capital Admin (A). Case (J 1) Co. . case (J D) pf (T).. caterpillar Trac (1). Cent R Rof > £ Century Rib Mills. Cerro de P'asco (1). Checker Cab Mfgr. Ches & Ohio (218) . Chesapeake Corp(3). Chi & Eastern Tl pf. ('hi Great Western. . Chi Great West pf. hi Mil §tP & Pac... P & Pac pf thwestern. Northwest pf.. Chi PneuTool...... 2 Chi Rock I & Pacific. ChiR1& Pac 6% pf. hickasha Cotton Oil “hilds Company.... hrysler Corp (1)... olrate-l'al-P (2 “ollins & Alkman. Colo Fuel & Iron. ... Columbia G&EI(b1% PLA (6). Columbia Carbon (3) Comm Credit (1.60). Comel Credit A (3).. Comel Inv Trust (2). Comm Inv ev pf(e6). Comel Solvents (1).. Comwlith & Sou(30¢) Comwlth&Sou pf (6) Congolm Nafrn (1).. Consol Cigars (5)... Consol Cgr prpf 6% Consol Cigars pf (7). Consol Film. ... Consol Film pf (2) Consol GasN Y (4).. (‘onsol Gas NY pf(5) Consol Laundries(1) Consol Textile. Contl Baking (A) Contl Baking (B) Contl Baking pt (8). Contl Can (2%). 31, Cont Diamond Fibre. 18 Cont Insur (2.40) 1 Contl Motors. 5% Contl Ol (Del) % Contl Shares........ 37 Corn Products (3). 2% Coty Inc 5 20 Cream of Wht(2%4) 10% Crex Carpet. 15 icible Steel . - 42 Crucible Steel pf (7). 1 Cuba Cane Products. 7 Cuban-Am Sugar pf. 22 Curtis Publishing(2) 14 Curtiss Wright. ... 17x Curtis Wrizht (A) 372 Davison Chemical. .. Deere & Co pf (1.40). Delaware & Hud (9). 10 or Detroit Edison (8) Diamond Match (1) Diamond Mtch pf 1% Dome Mines (1) Dominion Storest13 Douglas Afrcraft (1) Dresser Mfg A (3%) Dresser Mfg B (2).. Drug Corp (4).. Dupont de Nem (4) .. 98 Dupontde N pf (6).. Fastman Kodak (5 Kastman Kod pf (6). EatonAxle& Spr 50c. 1, Eitington-Schild. ... 5% Eltington-Schild pf. Elec Auto Lite (4). . Elee Auto Lite pf(7) Electric Boat . Elec&Musica ru 10's Elec Pwr & Lt (1)... 47 Elec Pwr& Lt pf(7). 25ty Elec Storage Bat (4) 251 Endicott-Johnson(3) 100% Endicott-John pf (7) A\l 2 398 5 4 1 10 2 1 17 5 808 7 107y 133 110y 14 121 10 10y 7241 0s 73 422 124'2 1 y 41 TameE - 571y 100 T € 36 1 105 2% 3215 105 les— Add 00. High, Low. Close. Chge. + N % % » Bl K % - + + % i i i + + 1 ™ +1% ENING STAR, WASHINGTON, D. C, SATURDAY, FEBRUARY ~Prev. 1933~ High. 23% 10 13% 9l 11% % 5% 14 2% 15 591y 4% % K 1% a1y 19% B 19'2 17 Bt 337y 2410 £ 1 % 19 10415 37 18% 1a 15% 125 31% 8% 64 15 131 4% 36% 284 [ 2 22% 4% 4 22 Stock and Low. Dividend Rate. 18 Eng Pub Sve (1.60).. 5% ErleRR . 7% ErleRR 615 Erie R R 2d pf. 9% Exchange Buf 4% Fairbanks-Morse.... 31 Fed Water Service A 11 Fed Dept Stores (1). 20 Fid Ph Fire In(2.60). 12 Firestone T & R (1). 50% Firestone T&R pf(6) 411, First Natl Strs (2%) 1 Fisk Rubber. . . v Fisk Rubber 1st pf.. 8 Foster-Wheeler 3 Foundation Co. 15% Fourth Nat Inv 1.10. 24, Fox Film (A)....... 15% Freeport-Texas (2). 11 2ty 1 23 13 9 Gamewe!l Co (3). Gen Am Investors Gen Am Tank Car(4) Gen Asphalt (1)..... Gen Baking (2) Gen Bronze. Gen Cable pf Gen Clzar (4 17% Gen Klectric (1.60). 107 Gen Elec spec (60c). 31% Gen Food Corp (3).. 1% Gen G&E A (b6 % stk) Gen Gas&E cv pf(6). Gen Gas & ElecA(7). Gen Mills (3). 1% 28% Gen Outdoor Adv ( Gen Printing Ink(2). Gen Public Service. . Gen Ry Signal (5)... Gen Refractories. . + Gen Theater Equip. Gillette Saf Razor. .. oodrich (BF) pf. .. Goodvear T& R (1). oodyear 1st pf (7). Hoslery Great Northern pf(2) reat North Ore(2). Great Western Sug. . Great Wn Sug p(7). Grigsby Grunow. Harb & Walker(50c). Hartman Corp (B).. Hawailan Pineapple. Hercules Mot (80¢) . % Hershey Choe (6) Hershey Choc pf 15 : Hollander Sons . Houdaille Hershe; Houston Ofl........ Houston Ofl (new). Howe Sound (2).... Hudson & Man (335) Hudson Motor (1)... Hupp Motors. » Illinois Central. 1liinois Central pf. Indian Motor Cycle Indust Rayon (4) . Ingersoll Rand (3). Inland Steel (1) Inspiration Copper. Insur Sh(Md) (28¢). Interboro Rap Trans Intercont] Rubber. .. int Bus Machine(ng) Int Cement (3). Int Combustion Int Combustion pf. Int Harvester (23). Int Hydro E1 A (e2). Int Match pf (4). Int Nickel of Can 20e Int Paper & v Int Salt (3).. Int Shoe (3) Int Stlver... Int Silver pf (7). 3 Int Tel & Teleg (60c) Int Dept Stores (2).. . Investors Equity. ... 30 Jewel Tra (4) 4 157 Johns-Manville (1).. 202 ®l: Kansas City Southn. 5 * Karstadt (Rudolph). K’'mann Dpt Strs(1) . Kayser (1)&Co (1).. 304 vinator Corp 9% Kennecott Copper 50¢ 1'; Kinney (G R) Co.... 1514 Kresge (S S) (1.60). 103 Kresge (SS) pf (7).. 30 Kress (SH) Co (j1). 43, Kreuger & Tall 1.61. 125, Kroger Grocery (1). Tambert Co (8)..... Leh Port Cmt pf (7). Lehigh Val Coal Lehigh Valley RR. . 1 2.40) . 28508 21 Liggett & Myers( Ligg & Myers B (15) Liquia Carbonte (2) Loew'sInec (t4)..... Loew's Inc pf (613). LoftIne........ Loose-Wiles (3} Torillard (P) (1.20). Tin O DE (612) . - Loou Gas&El A (1%). Louisville & Nash(4) 1% Ludlum MeKeespo McKesson & Robhing McKes&Rob pf(3g) MeLellan Stores. Mack Trucks (1) Macy (RH)& Co(n3). Madison Sq Garden. . Magma Copper(30¢) . Mandell Brothers, Manhat Elev mod gtd Marine Midld (1.20). Marlin-Rockwell (2) Marmon Motor Car Marshall Field & Co. Mathieson AlKili (2) May Dept Stores 1.80 Melville Shoe (2) Miami Copper-. ... Mid Continent Petm. Midland Steel (3). 4+ Minn Moline Pow. .. M StP & SSM 1sd (4) Mo Kan & Texas. ... Mo Kan & Texas pf.. Missouri Pacific. Missouri Pacific pf Mohawk Carpet. ... Monsanto Chem 13 . Montgomery Ward. . Motor Meter G & El. Motor Products (2).. Motor Wheel, 5 Mullins Mfe. Mullins Mfz pt Murray Corp. Myer (FE) & Br 16% 15 Nash Motors (2) % Nat Bella Hess 37y Nat Biscuit (2.80). Nat Biscuit pf (7). Nat Cash Reg (A). @), Nat Dist Prod (2). 1 Nat Supply Co. Nat Surety (2) Nat Tea (1)... Nev Con Cop (40c) Newport Industrie; N Y Central... NYChi&StLpf. N Y & Harlem (5)... 17% N Y N H & Hartford. 64 N Y Ont & Western. . 4 N Y Shipbuilding. .. 102 N Y Steam 1st pf(7). 12% Noranda Mines (2).. 111 Norf & Westn (112). 2% North Am Aviation. . 29 Nor Amer(b10%stk) 148 Northern Paeifie (3). B Ohio Ol % 1 Oliver Farm Equip.. 16% Otis Elevator (23%4).. 21 Otis Steel..... 9% Otis Steel pr pf. 20 Owens Ill Glass (2 (Continued on Pagg 14.) H f 24% 6l 106 Bales— Add 00. High, Low. Close. 23 814 10% 8 Net. Chge. 28 + 4 8% +1% 10% +2 8 +1 10% + 14 % + % M+ W 14 4219 24% +1% 124 54 - wu 50% +21y % Y%+ U 50w 423 70 161 5 11 414 21% + w|XN e + % 19 +1 1§ + o+ b 45 423, 129% +11% 101 +1% | February 11, was $573,664.526.53. | State Street Invest 13, 1932, ADVANCE IN STOCK PRIGES RESUMES Market Absorbs Heavy Profit Taking to Score Sub- stantial Gains. BY 'GEORGE T. HUGHES. Special Dispatch to The Star. NEW YORK, February 13.—In spite of heavy profit-taking and its substan- tial advance on Thursday, the stock market today pushed forward under the largest hourly transactions of the year and established gains ranging from 2 to 10 points in prominent speculative and investment shares. The proposed liberalization of the Federal Reserve rediscounting privileges had apparently made a strenger im- pression on the public mind than any event since the moratorium last June. Commission houses reported large buy- ing orders from different parts of the country. These, with short covering, created buoyant market conditions. Advances at Opening. An accumulation of orders at the opening was responsible for many strik- ing advances. Among them were 5 points in American Telephone & Tele- graph, over 5 in Auburn Auto, 2!% in Allied Chemical, 1!, in General Elec- tric and a point in United States Steel. This was followed by the bidding up of nearly every active group of stocks throughout the first hour. The short interest had an uncom- fortable experience in the higher priced railroad stocks, like Atchison and Union Pacific, whose first gains ranged from 5!, to 8 points, as well as in such in- dustrials as Eastman Kodak, Interna- tional Business Machines, du Pont and Coca-Cola, where the initial advances were from 3 to nearly 5 points. In the public utility list Consolidated Gas, Public Service of New Jersey and West- ern Union rose 3 to 4 points. The remarkable feature of the market was its ability to take stocks and to maintain, and even expand, the extent of the early advance. This was proof that not only was the speculative ele- ment of necessity or from preference on the long side of the market, but that the previously indifferent public had at last seen a development of & construc- tive nature to which it was willing to respond in & definite fashion. Late in the second hour prices in nearly all instances were well above those previ- ously made. For instance, added 5 points to its initial 5-point gain and was nearly 18 points above the low of the week. It is expected the regular dividend on this stock will be declared next Wednesday. Auburn Auto went through 120 and was within a point of a 30-point rise from its re- cent low. United States Steel pushed ahead 5 points over its Thursdays closing price. Other Gains. Union Pacific ran up nearly 9 points and was 20 points above the quotation made just prior to declaration of the regular_dividend. Other strong stocks were Westinghouse Electric, Consoli- dated Gas, General Electric, American New York Centr: Du Pont, and Atchisor., with the last named showing a net rise of 8 points. Large blocks of individual stocks appeared on the tape. which was several minutes behind the market at times. The two market sessions since the announcement was made of the new banking legislation have produced the largest average advances for a similar period since those of last June, fol- lowing the moratorium announcement. — SILVER QUOTATIONS. NEW YORK, February 13 () —Bar silver firm and' ' higher at 30’ U. S. TREASURY BALANCE. The United States Treasury balance, announced today as of close of business Cus- toms receipts for the month to date were $9,106.161.46. Total ordinary ex- penditures were $10.481,255.52. CLEARING }iOUSE FIGURES. Washington Clearing House figures for today. $3.323,049.50. INVESTMENT TRUSTS 13 Bid. Asked L4 4 NEW YORK, February >— Over-the-counter market: A B C Tr 8hrs "E Am & Gen Sec “A Am & Gen Sec B ... Gt <, 33t A m Fdrs 7 bl Am Ins Stocks... Assoc Stand Ofl. Sec pf ..... ers Nat clila » Industry h Century Tj Shrs Chein & Gen Eauities G i Cheisea Exch B Cumulative Tr Sh Corporate Trust ... Cornorate Trusi 5 Corporate Trust Accum Ser.. “hi. DINERCEL Del Bk St DWeersifie T Diversified Tr € Diversified Tr D . Fund Tr Shrs B. Granger Trade .. Gude Winmill Trad Ticorp Investors ... Incorp Invest Equit Independ Tr Shrs . Int Sec Corp Am A Int Sec Corp Am B 6 pf . Invest Trustee Sh Leaders of Indusi A Leaders of Indust B Leaders of Indust C Low Priced Shrs Major_Corp Shrs Mass Invest Tr Mutual Inv Tr A Mutual Manage . Wwide_Sec N Y Bk Tr Shrs 3 B 4 8h 1956 Public Serv Tr Repres Tr Shrs Second Int Sec Second Int Sec Sec 87 o en OB 5 - s ¥ GRETERR Fees as -8 3 Stand Am Tr S| Stand Collat Trust BRTFSE oL Trusteed Am B. A Twentieth Cent Pixed Tr. ol aul PVuanueSia®s Two-Year Trust Sh. -:..‘;Ex’:u.uuu‘ux.—_unm-uu:..u.- American Telephone | 1 $7.696.590.000 Can, Chesapeake & Ohio, Wuulwonh.l .| NEW YORK BANK STOCKS WALL STREET IS FINANCIAL. IMPRESSED BY NEW BANKING LEGISLATION Government ably Received in Plan to Aid Credit Is Favo: Financial Center. “Free Gold” Increase Approved. BY CHARLES F. SPEARE. Bpecial Dispatch to The Star. NEW YORK, February 13.—The re- action of Wall Street to the proposed new banking legislation was immediate and favorable. Stocks which had on Wednesday approximated the low av- erages of the depression advanced sharply and there was a firmer market for bonds, especially those issues that will be ‘affected by the new redis- counting privileges. It was recognized that the suggested temporary changes in the banking laws will supplement the efforts of the Reconstruction Finance Corporation and cover a field not included in the pro- visions of the law dealing with this Government agency. “Free Gold” Increased. ‘The chief benefit of the new legis- lation will be that of increasing the amount of so-called “free gold,” now estimated at $465,000,000. Recently the Federal Reserve Banks have again been embarrassed by the steady with- drawals of the yellow metal for French account. In the past six weeks France has taken approximately $128,000,000 gold from its supply in this country, In its weekly statement the Bank of France shows another large increase which will be added to next week by the $12,000,000 that has just gone out. ‘There is sald to be approximately $600,000,000 gold now ‘“ear-marked” here to the credit of France and WI other European countries. Under the provisions of the proposed banking legislation, a greater degree of efficiency will be given to the gold reserves of the Federal Reserve System by releasing gold now segregated as collateral for Federal Reserve notes in excess of the 40 per cent cover Te- quired by law. The actual gold cover- age of Federal Reserve currency has recently been estimated at between 75 and 80 per cent, or nearly twice the NEW YORK BANKS IN FINE POSITION Analysis Shows Extra Large Hold- ings of Cash and Government Securities. _A special analysis of the 16 leading | New York banks, as prepared by Horn- blower & Weeks. shows that these banks had $3.663.741.000 cash and | United States Government securities as | of December 31, 1931, which was equal | to 47 per cent of the total deposits of They state that banks at the close condition of “altogether these of 1931 revealed a liquidity and financial equaled, under similar conditions, in the | history of banking in any other coun- try.” "During the 25 vears since 1906 dividends of these banks have averaged | 6 per cent on capital funds. while dur- | ing this same period an average of only 67 per cent of net earnings per year was distributed in dividends. The average income yield on bank | stocks during those 25 years was 4.15 per | cent, while at current price levels the vield is about 7.2 per cent. “notwith- standing that these institutions are larger, stronger. better managed and have greater potential earning power today than they have ever had before, due to the growth of the trust business and the development of new sources of earnings.” At current levels these bank stocks on the average are selling at 1.03 times | third book value (after write-offs, re- | serves and making no_allowance for | book value of security affiliates), which is the lowest ratio in 25 years. QUI‘i‘S PENNSY BOARD. The Pennsylvania Railroad Co. board {of directors has accepted the resigna- | tion of Charles E. Ingersoll as a direc- tor. Mr. Ingersoll has been compelled in last few months to discontinue a number of his activities owing to the condition of his health. He bas been & director of company for past 25 years, having been elected in 1907 to succeed A. J. Cassatt NEW YORK. February 13 (#).—Over the counter market BANKS. Bid Asked 362 38z 20 Guaranty . Trving Manufacturers w York First Mortgage Loans Lowest Rates of Interest and Commission Thomas J. Fisher & Company. Inc. NVEST —your sa; 6% Tecuritie Safe. Sound, Convenient Denominations Real Estate Mortgage and Guaranty Corp. 1610 K St. Nat. 1403 The COMMERCIAL NATIONAL BANK 14th and G Streets Banking in All of Its Phases COLUMBIA BUILDING ASSOCIATION PAYS 5% New Accounts Solicited No Commissions Charged for Loans | tension strength that has probably never been | || g«y;x.nt exacted as the minimum wnder e law. ‘While the value of the new banking legislation is to place the Fed- eral Reserve Banks in a stronger posi- tion to meet the gold drain from France —which, however, has not reached any- thing like the proportions of that of last October and is not expected to— the benefits to be derived for banks whose assets are in a frozen state will also be important. The major effort of the administration and of the bank- ing authorities of the country at the present time is to provide freer redis- counting privileges for member banks and so strengthen their position and re- establish the confidence of depositors. An anticipated collateral benefit of this is the return of monies that are now being hoarded. It is understood that recently there has been an increase in demand for gold coin by those who have the hoarding complex. Each day the financial district in New York hears remarkable stories of the amounts of gold that are now sequestered in safe deposit vaults. One report today was that the sum of $5,000,000 gold had recently been locked up in the vaults of one local safe deposit company. Amounts hoarded ranging from $25,- 000 to $200,000 have been reported. Some Oppose Plan. The proposed banking legisiation aroused further discussion today re- garding the Federal Reserve policy of moderate inflation. Those who belleve that artificlal measures will not cor- rect the present situation were opposed to the new plan on the theory that there is already an abundance of credit available and that the trouble is not in credit scarcity, but results from the unwillingness of lenders to release funds. The fact that the new banking pro- visions are to extend over a period of only a year is significant in that it suggested the termination of the pres- ent banking credit strain by the early part of 1933, whereas the loans of the reconstruction corporation may extend over a period of three years. ‘The philosophy of those who advo- cate moderate inflation is that there will be no recovery so long as deflation in commodities and in securities con- tinues and that the lesser of the two evils of deflation and inflation is an ex- of rediscounting privileges. These, while they may enlarge the vol- ume of currency, will at the same time put a supporting influence underneath the financial and business structure and prevent it from caving in entirely. It is quite apparent that conditions in banking have arisen that were not an- ticipated by the reconstruction corpo- ration when it was first set up and that the emergency banking measures are to adapt themselves to this fact and in an indirect way strengthen the policies | of the reconstruction corporation. ht. 1932.) FIRST *» A-13 IRAIL PROFIT GAINS HOPED FOR IN 132 Observers Here Believe Groundwork May Be Laid for Better Revenues. BY CHAS. P. SHAEFFER, « Associated Press Business Writer. . Hope is strong in Washington that the present year will see groundwork Iaid for re-establishment of the invest- ment value of rallway securities. Earnings ation of carriers, fust made public the American Railway Association, leave but little doubt in the minds of competent observers that the rail situation is a serious detriment to business recovery, and to this end there are Government officials who feel that hopes of railroaa operators in il:e? may be, at least, partially real- The carriers, the American Railway Association declares, operated at a property investment return of 1.98 per cent during the last year. Decrease in Gross Revenue. Gross rtevenues of class 1 roads during 1931 totaled $4.236,000,000, which marks a decrease of about $1,207,000,000 from the previous year. Yet during this period operating ex- penses were cut $711,000.000 under 1930; effected, for the most part, by & retrenchment in maintenance. It has been brought out at the Interstate Commerce Commission that much of this deferred purchasing has been in directions where the need for new equipment was actually acute. The fact that the carriers Were per- mitted an increase in freight rates last Fall at a time when the entire industry of the country was more or less paralyzed is hailed by railroad officials as recognition on the part of the Gov- ernment that steam carriers are vital to_economic life. Rail officials consider the present situation of the carriers has been brought before the public, so as to mould & very definite opinion favorable to the carriers. This they view as & vital and encouraging factor, on the grounds that regulatory measures for the roads are set up by Congress, and this body is strongly influenced by the dictates of the public. Rallroad Men Optimistic. Be that as it may, the majority of railroad men visiting the Capital have adopted an optimistic attitude towards the future. An additional increase of about $100,000.000 in revenues is in sight for the year through the rate in- crease, while the voluntary wage re- duction promises a saving of $215.000.- 000 additionally for the year. Both the President and the Interstate Commerce Commission have made encouraging recommendations to Congress. and the | Raflway Credit Corporation and the Re- construction Finance Corporation both stand ready to make loans to those roads | which are worthy and in urgent need for credit MORTGAGES FAVORED FOR MANY IMPORTANT REASONS Some of the keenest financial minds choose Fi rst Mortgages as one of their principal investments because of the generous interest paid: its changeless rate throughout the time for which the investment has been made—and for the character of the security. Over a Thir’ of a Century Without a Loss estate. Our 64% FIRST MORTGAGES have back of them conservatively appraised improved Washington real May be purchased in amounts from $250 up. National 2100 Oldest Savings Institution -To Hoard in a bank like this is This sixty OFFICERS: RY 80} W Sot ALY R 3 VERT' O BA Open Until 5:30 Government Pay Days 716 11th St. N.W. Under w‘!m' Cor. 15th and New York Ave. Home “Strong Boxes” —where fire or thieves may reach it, is not rnerely unwise—it s unpatriotic, interest, helps restore business and employment. ix-year-old bank is safeguarding the .cnsh of over 55.000 customers, and will pay you interest on your pay-day or other deposits. Deposits in any amount_invited—Interest Paid on both Checking and Savings Accounts Open Until 5:30 P.M. Monday, February 15 N, 2nd Viee Pres. and Trust Officer RN Tr B. F. SAUL CO. 925 15th St. N.W. in the District of Columbia. Money In un-American. Money not only safe. it draws DIRECTORS: