Evening star., 1922-10-20
BONDS IN DEMAND;
STOCKS ARE QUIET
Unlisted Securities Depart
ment Likely on Local
Exchange.
BY !. \. FLEMING.

BY !. 4. FLEMING.
It was bond day on the local ex-
change. with Georgetown Gas So SELL
ing at 30. Washington Gas 5s at 95 n.
Gas ~. per cent notes at L04S. Poto-
mac first IS and General 6s at 100.
The first sale of Wardman Park 6s
since their listing was reported at
l01A
chance was of Graphophone preferred.
once a. leader. at 1Oh.
Stocks were slow at 55 u for Rail-
way common and TIN for Railway
preferred.
Unlisted Securities.
The governors Of the washington
Stock Exchange have given consider
able consideration to the question OF
trading in unlisted securities, and
make recommendations along the line
Indicated.
1t is probable that report will
he made within few days.
Southern Building Dividend.
Directors of the Southern Building
Company met yesterday afternoon
and declared the regular dividend on
the, preferred stock and so cents
share on the common shares.
Allan E. Walker, president of the
corporation. reported the affairs OF the
company to be in excellent condition.
Dinner to F. NJ. Savage.
The directors of the Northwest Say
ings Bank are to give a dinner at 240O
18th street Monday, October %. in
honor of their president, Francis NJ
Savage. who has just returned from
an extensive South American and Eu-
ropean trip.
After the welcome to the traveller
the following addresses will be made:
"A Wandering President. Welcome.
overland Motorist." w. B, Follmer:
..Auricular Effect of the European
Garden F. Warner: California or
Washington Which," w. T. F1tz-
gerald: THE Realtor and the Renter"
Jesse II. Hedges: "Altruism in Bank
ing" Frank S. Bright: pills or Golf,
DIR. Gregg c. Birdsall: Scotch vs..
American Humor." Judge George II.
Macdonald; Morality and Fairness
Essential in Bank Administration,
Francis NJ. Savage.
New Bond House.
The Henderson-W -Winder Company is
the title of a new bond firm that has
opened offices at 9l7 Southern build
{. NJ. Henderson and r. B. Winder
are the members of the firm, whlch
has for some years been active IN the
south.
Both of the Young men are practi-
cal. trained bond men. and VIII De
participating distributors of many OF
the future bond issues of quality
The Henderson-Winder Company
is the authorized correspondent OF Lee
Higginson & Co., the great Boston, New
York and Chicago investment security
house, one of the leading bond houses
of the country.
VIII Open Branch.
The National Bank of Commerce of
Detroit is preparing to open the nrst
branch of a national bank in the
great automobile city The control
Ter of the currency has given permis-
sion
Coming at this time when there is
so much agitation against branch
banking. when measure is before
Congress to forbid it, when the
condemned it. the reasons advanced
by Richard z. JOY, president of the
Detroit institution. for the opening OF
the branch are interesting.
1T is manifestly much safer as
we'll as more convenient for an in
dividual to do his banking with one
strong bank having a capital and
surplus of say s8,0O0.0O0. which main
rains twenty-five branches or agen-
eies than to bank with any one OF
each having d capital and surplus of
s320,0OO. 1t would indeed be dis
tracting for a merchant or manu-
facturer to endeavor to split his bank
account among twenty-five 1ndlVid-
uaf banks to obtain adequate lines OF
credit, whereas at present the large
state banks are we'll able to care for
the requirements of the city 8 larger
industries and the borrower is obiig-
ed to negotiate with but one bank
% tor
Lines of credit in excess of $1.00O:0O0
can now be granted by some of De-
troit's banks.
Competition between state banks
having branches and national banks
having no branches has become so keen
in Michigan that there are today but
three national banks in Detroit, with its
population in excess of 100000. 1t is
therefore. apparent that state banks are
gradually superseding national banks
largely for the reason that the Michigan
banking law is more liberal than the
national banking law. Not only can
state banks maintain branches or agen-
cies, but they can grant loans up to 20
per cent of their capital and surplus by
a two-thirds vote of their directors. while
national banks are restricted to 10 per
cent State banks may also invest a
much larger proportion Of their deposits
in mortgage loans. which, while not as
liquid as other assets. are probably the
safest form OF investment.
"Cnouestionably sentiment alone
and the hope that there will be relief
in the near future is the inducement
to many national banks to hold their
charters. If, however, the national
government proposes to prohibit ma
tional banks from establishing G
branches in states where state banks
are permitted to operate branches, 1T
would seem that the only alternative
is for the national banks to convert
into state. banks to compete on an
equal basis
THE fear of the country banker
that the city banker will invade his
territory with branch should be al
layed. Congress can restrict branch
banks to cities having popula ton
in excess say of $4,000. To restrict
the banking development in large
cities because the country banker
fears the extension of branch bank
ing to his territory is indeed mar