Evening star., 1918-11-03
FINANCE LOCAL AND OTHERWISE
BY I. A. FLEMING.

BY ]. A. FLEMING.
New York stockholders are groan-
ing under the impost of 80 per cent
margins on stock trading. CONNIE nc
ing tomorrow. The decline for the
last few days has been due to the de-
sire of many traders to get out of
the market rather than meet the in
creased calls for margins
While brokers have had small trou-
BILE over margin accounts recently.
the very serious fluctuations of Mexi-
can Petroleum. Marines. Texas Oil,
Royal Dutch Oil and even in Steel
common have caused uneasiness on
the part of conservative interests,
who have been responsible. with the
federal reserve bank of the second
district, committee of banker and
the governors of the New York Stock
Exchange, for checking activity and
seeing to it that accounts were amply
protected.
The 80 per cent margin rule is ef
fective tomorrow and it practically
wipes off from the trading map an
army of traders unable to meet this
demand.
1t is possible and even probable that
the action of the United States Steel
Corporations board of directors in
reducing it's dividend on the common
stock, as it did last week, sounded
has not been without its effect on
| bankers. and that it has also been
heard in security circles is keenly
evidenced by the reactionary trend
| in values.
One of the reasons that Influenced
| the federal reserve bank of New
York to take action toward restric-
t1on of loans may have been the
| rapid expansion Of loans in the re-
serve system. The. twelve federal
| and discounts as S1,0S6,0 ,023,O00 on
June 81. and s1.944, 1877 900 on October
rs. The consolidated cash reserve
| against note and deposit liability had
decreased from 61.7 per cent June 21
| to 4s.6 per cent October 25.
Both bonds and stocks made large
advances during the fourth liberty
loan campaign, trade broadening to
proportions where, curb was deemed
necessary, and it was applied.
Brokers Criticise Action.
Wall street stock brokers criticize
the action of the money committee
VII eAS StooHo Ihdl TIE
recommendations prevent investors
from exercising their judgment in
making investments at a time when
| peace prosperity seems just at hand
Many other brokerage concerns are
| forced to hold their loans down to
| low level by reason of the fact thai
| they had but light accounts on their
1 books when the money committee
! took action against extension. This
ruling was made by a stock exchange
1
loans to their levels of September 16,
| while the further request for a state
! ment OF borrowings with each day
has kept many firms out of the mar
| ket as borrowers.
| Whether right or unjust to brokers,
| the rulings have brought shares to
| lower levels and stopped the advanc.
| ing turned-in bonds. The justice Of
| the action may develop in after days
| to the satisfaction Of all.
Bankers Association Meeting.
| The meeting tomorrow night of the
District Bankers Association will be
! called upon to. elect a president. frs
| vice president, second vice presiden.
and all other officers.
1t is the first time that a vacancy
! in the first vice presidency has oc,
| CURED, Ashton G. Clapham, former vice
| president, automatically falling in sue
| ceSSlOn 10 the presidency, as ne QlQ not
qualify as director of the Commercial
National Bank.
| The report of the fourth liberty loan
campaign, expenditures. ETC., will
probably be presented.
| A resolution to be proposed by the
| Union Savings Bank for o'clock
closing will unquestionably bring out
strong support and may encounter
some opposition, although the bank
clerks of Washington are back of it
in a body.
Bank Call About Due.
August 81 the controller of the cur
| rency called for statement from
national banks. Under the customary
six calls year it is time for another
| call, but bank clerks. overworked by
the rush of ordinary business and the
liberty loan campaign, hope that 1t
may be delayed another month at
| least.
| Local Securities.
Lanston Monotype shares and Capt.
tai Traction stock have featured the
daily sessions of the local stock ex-
change during the past week. while
Potomac Electric. General mortgage Is
have featured the bond section. with
Railway As a good second.
| The two leading stocks acted re-