The Washington herald., 1922-08-11
fINANcIAL
LOCAL SECURITIES
DISPLAY STRENGTH
INACTIVE SESSION
Unfiiled Steel Tonnage,
Nc Rule Prohibits Par
,tial Payment Plan.

Securities listed on the Washing
ton: Stock Exchange ruled strong
in relatively active trading yester-
day. District National Bank stock.
afterya long period Of Inactivity.
broke int the sale column. a total
.of seventy-six shares changing
hands at ITO. its recent level "A
small lot of American Security and
Trust stock was sold at go. while
odd sales of Lanston Monotype was
recorded at 79E and 80. Mergen>
thaler held at ISL.
In the utility list, Railway COM
mon moved within a narrow range.
from SIX to 57h. fifty shares
changing hands Railway Is sold
at rs, with Capital Traction SIS SELL
ing at ssH. Washington Gas IN
per cent bonds were disposed Of at
105k, and a small lot of Metro
politan Railroad IS sold at s7%.
UnaIled steel Tonnage.
A gain of 140.63o tons in the un-
filled steel tonnage of the United
States Steel Corporation during
July indicates that the demand Is
holding up in spite of the curtail-
ment Of output due to the lack OF
fueL The increase for the past
month. however, falls below that
or either May or June. the gains
for these two months being respec-
lively 157.sI5 and ss1.3O3 tons.
with steel production declining
from week to week, the mills are
finding themselves. IL is said. booked
up-'mHch farther ahead than they
had expected early in July. While
the steel operators in the Chicago
district complain of a shortage OF
cars. there appears to be little difh-
Guilty in this respect among the
mills of the Pittsburgh district.
where the transportation problem is
affecting the iron and steel industry
only at the point of coal supply.
though IL is impossible there, as
elsewhere to separate the effects OF
the miners and shopmen's strikes.
With an uninterrupted movement
of coal from the non-union mines
the steel mills would be able to
makesa much better showing.
Have Drastic Rules.
Many references have been made
Of late to the rules of the New
YORK. Stock Exchange governing
so-called partial payment houses,
the enforcement of which Is re-
sponsihle for the recent failure of
two houses and the suspension OF
two more Baltimore houses.
Contrary to a belief prevailing in
some quarters. there is no rule pro-
hibitins the purchase of securities
Under a partial payment plan. but
h.. har
impractical to operate a partial
payment plan. which offers to pur-
chasers of securities on margin. the
balance TO be paid for in monthly
instalments upon the payment OF
additional commission over and
above the regular New York Stock
Exchange commissions. insurance
against additional margin calls
other than those provided for in the
partial payment plan.
The Baltimore Stock Exchange
has recently passed resolutions COW
ering the same points. 1t may be OF
interest to quote several of the res
olutions. in part. adopted by the
New York Stock Exchange.
Resolution of February Is. 1913:
That the acceptance and carrying
of an account for a customer, either
n member or a nonmember. withou.
proper and adequate margin. may
constitute an act detrimental to the
interest and welfare of the ex-
change. and the offending member
may be proceeded against under
Section of Article XVII of the
constitution.
That the improper use of a Gus
TONER'S securities by a member OF
= E-TFa Of -, 10.
with just and equitable principles
shall be subject to the penalties
provided in Section of Article
NVLT of the constitution.
Resolution of July 81. 1921:
Resolved. That an agreement be-
tween a stock exchange house and
a customer. authorizing the stock
exchange house to pledge secur-
titles carried for the account OF the
customer. either alone or with other
securities. either for the amount due
thereon or for greater amount. or
to Herd such securities. does not
justify the stock exchange house in
pledgins or loaning more of such
securities than is fair and reason
able in view of the obligations of
the customer to the broker.
Resolved, That no form OF gen.
eral agreement between a stock ex-
change house and a customer war
rants the stock exchange in using
securities carried for the customer
for delivery on sales made by the
stock exchange house for its own
account, or for any account inwhich
the house or any general or specias
partner therein is directly or indi-
rectly interested.
Anyone failing to understand the
full putport Of the above resolutions
may receive clear explanation of
their meaning from any member Of
the New York Stock Exchange.
II is safe to assume that these
resolutions were passed by the gov
erning committee of the New York
Stock Exchange after a most care
full consideration. and they are de-
signed to further protect both the
members of the exchange and their
clients The principles upon which
they are founded are sound. ana
nonmember houses that attempt to
operate contrary to these principles
cannot he expected to receive any
service originating In the New York
stock Exchange IL IL is possible for
its governors to prevent it,