Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-10-19


No action has been taken by Congress
| on amendments that would permit ma
tional banks to establish branch banks,
| nor is it likely that the matter will
be acted upon.
1t would seem as if national banks
should have the same right that state
banks and trust companies have in this
matter. A few years ago, when a
local trust company inaugurated the
branch bank plan, much concern was ex-
pressed, but two of our important COM
panles now feature branch banking.
There are arguments for and against
the granting of the branch bank privi-
lege to national banks. The American
Bankers Association has held against
the measure for years, although not in
the saddle against branch banking gen.
crallE.
Branch banking should be encourag-
ed. according to some bankers views,
only in localities where the local bank
is especially weak or incapa BILE by rea-
son of limited resources from function
ing properly as the needs of COM
munity demand.
We have had one income tax market
before and we have another now.
traders on Wall street are holding to
their securities and pyramiding profits
right along. They would like to cash
in. but the income tax threatens TO
take large share of their gains away
the spectators are patriotic enough.
they are hanging on, hoping that a
stock dividend decision may come down
from the United States Supreme Court
the big combinations to cut fat melon
In the way of stock dividend that will
enable them to hold on to large part
of their profits.
This case, as stated yesterday, is
before the court and will be con-
~1t ,I1I e.
ment go Monday. The general opinion
is that the opinion Of the lower court
will be sustained-that stock dividends
are not income.
Here is what one operator says of
the market:
people realize to what great extent
securities are held out of the market
by reason of the fact that holders are
to take the enormous profits
they have realized in the advance of
the last eight months because they
have to give so large a share to the
government. In this very Office there
is one account, in single transact
ton. which shows a profit of over
$1,00O,OOO. The operator won't even
think of taking his profit now On
the other hand, he will not consider
buying stocks at the present level.
This same situation applies to scores
of large operators and to many thou
sands of shares of stock. The result
is that the supply of stocks is very
limited. At the same time the de-
mand is limited. too. Professional
traders are watching like hawks the
lew big successful operators, and
when one of the latter starts buying
they all follow him so that the mar
ket becomes exceedingly strong all of
a sudden: When he begins to sell
the crowd sells, too. The net result
he orly
fairly even keel. barring sensations
In few specialties, in which the
supply of stock is exceedingly short.
1t Is likely to continue on this course
until we get some very important
and unexpected news, either good or
bad
Local Securities.
Action in local securities during the
week has been rather active. The
weight of Washington RAILWAYS
troubles has been more or less OF
brake on the market for many days.
So many people have these securities
and their experience has been such that
they hesitate about buying other
securities on the local list. There are
numerous bonds on the local list today
that are in line with higf-grade issues
in other markets.
This is not a time for per cent
returns for money. Six per cent is
available readily. and in many cases
much better figures are offered
investors.
Capital Traction shares should be
better and the chances for the preferred
dividend on Railway and Electric being
earned have greatly improved.
The squirt in Lanston and Grapho-
phone seems over for the present, with
both stocks at materially higher levels
and no pressure Of offerings Of either
on the market.
Changes in bank shares during the
week were the advance in Liberty
Savings to 100 and the first sale since
listing on the exchange of United
States Savings, at 200 a share
The position Of Commercial National
Bank shares should be benefited
through the acquisition of control by
local interests.
In the year to date practically 5000
shares of Capital Traction, 274 shares
of Railway common and 2,405 shares
Of Railway preferred have changed
hands.