Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-11-02
PREFERRED STOCK GROWING
IN INVESTORS FAVOR
Has Its Good Points and Its Rights and
Privileees-Buyers Should Ask Dues
tions of Bankers and Brokers'

prosperous year than the one now
nearing Its close. If the next sixty days
produce returns equal to the last ten
months it will be the banner year
They have enjoyed a large demand
for money from their local business
clientele and have had a fine bull
stock market available all year for
their surplus funds at high rates Of
interest. much above the legal rates in
the District.
There have been one or two in
creased bank dividends declared dur
ing the year, but 1t would not be
surprising to see several banks in
crease their payments for the first
quarter of the old year.
1T is rather early in the season
but at least one bank has served
notice that IT will pay months
bonus to all employees with December
Is. Others are likely to meet the
Permanent for Temporary Bonds.
Referring again to receipt which
bond holders leaving temporary is
sues to be changed into permanent
bonds-specifcally referring to the
second As at this time, which are to
be exchanged after November Is. and
with each succeeding six months
other issues-the following facts are
Of interest.
The receipt. made in duplicate
through the use Of carbon paper. con-
tains the signature Of the depositor
of the bonds for exchange: also. in
duplicate. the denomination Of the
manner, the denomination Of the
bonds desired in exchange for the
temporary bonds deposited.
There can be no question Of mis-
understanding or dispute regarding
the matters at issue; no difhculty in
giving the permanent bonds to the
real owner.
w. E. Cadwallader. cashier Of the
Commercial National Bank, prepared
the form and will unquestionably be
glad to give a copy to any bank de-
string it.
Federal Reserve Boards Review.
The federal reserve board in the
October issue of its Bulletin has this
to say:
Great general prosperity through
out the country. with strong demand
for commodities, verging at times
upon recklessness in buying. is the
general business situation as reported
by federal reserve agents in the sew
eral federal reserve districts for the
month of October. Crop returns have
where decline in output has brought
the total yield below the forecasts
prices are reported as the highest on
record, the mon-cy returns being thus
largely augmented. in spite OF the
decreased volume. Staple commod-
market during the month, although
the volume of grain thus shipped is
smaller than last year. while shortage
in some commodities, such as sugar,
has brought about unusual care in
the distribution of existing supplies.
increase, while the demand has been
unusually strong. owing to the fears
of consumers concerning the prospect
of strike to date from November 1.
There has been no decline in gen.
eral manufacturing, while prices con-
tin1e nrm. The upward movement of
trade usually noted in the autumn
has been in evidence during the
month. Speculative activity has been
extensive throughout the country and
is reaching dangerous levels. This
and the prevailing high prices have
ied IN some quarters to a further de-
velopmentt Of the spirit Of conserva-
tism noted in the last issue of the
Federal Reserve Bulletin. and in some
important lines Of business leading
factors forecast the possibility of a
either of prices or of vol
ume of business, or both. A trouble
some factor in the Industrial situa-
tfon is seen in the existence Of a
widespread condition of Industrial
and social unrest. and. while disturb
ances growing out of strikes have
not increased during the month. pros
poets for a growth in this direction
have been such as to cause some
anxiety
In district No. crop returns, ow-
ing to the high prices realised. have
been abundant. business is active and
"unfavorahle factors have had little
deterrent effect" In district No.
general business conditions SHOW no
outstanding change" and fall retail
trade 10 opening up in large volume"
although both corn and cotton crops
are poor. In district No. 7 business
greatly increased buying power
growing out of high wages and agri-
cultura, prosperity for three years.
In the Stock Market.
In the stock market the present
month has been characterized by a
continuance Of the speculative activ-
week in September. and price ad-
vances have occurred. Bond prices
have shown a tendency to rise, the
returning strength Of high grade rail-
road bonds being especially marked
Transactions in liberty bonds have
been heavy, and they have led the
rise in the general investment market.
September issues of new securities
were the heaviest fer any month dur
in: the present year. and October is
sues are reported to show little or no
falling off In volume Speculation was
~t AxyA al txr hA
in call money rates. which accompa-
nied the recent great increase in loans
of the New York clearing house banks
and borrowing from the federal re-
serve bank of New York. After touch
ing Is per cent at the close of Sep
ly high level throughout the early
part of October. again reached Is per
cent on October II and Is. since which
time they have declined sharply with
an increase in available funds and
reached a low figure of per cent. :.
An upward tendency in commercial
paper rates in New York is reported,
as we'll as a limited demand for &C.
ceptances. The customary heavy sea-
sonal demand for funds is generally
noted. Rates in other centers have
been steady and have not rejected
the erratic fluctuations IN TIA new
York market.
The boards figures of-the volume
of check transactions continue at
high level The banking situation con-
tinues to be regarded as sound. though
need of caution in loan expansion is
emphasized in certain quarters. par.
ticularIy in view of heavy seasonal
requirements for funds and the high
nrice levels now prevailing. Credit
and collection conditions are good
and failures. while showing an in
crease for September over those FOR
the two previous months. continue
unprecedentedly small and few.