Evening star., 1925-08-16
BY /. A. FLEMING.

Bank shares in Washington have
been quite active during the past year,
epecially the national list and some
g.. the trust companies as well. There
a"e also some firm spots in the saw
j Ks bank section, with special refer
, ICE to the bank shares listed on the
/ cal stock exchange.
The class of investors who trade in
these securities are rarely sellers.
they keep on accommodating. Nor do
they buy for immediate returns, which
IN many instances are not much bet
ter than on Government bond issues,
Usually taken only by the most eau
Gus investor and by banks desiring
them for borrowing through Federal
I-eserve banks.
Who buys stocks?"
This question, interesting to the lay
man. was asked of five Fifteenth
..treet men familiar with every phase
If the stock business.
Some OF the Answers.
Men who wish TO curry favor with
ne banks and thus take full advan-
tAge of any concession obtainable in
making loans" said the first party,
lding, 'and rich men who have no
ytres as 10 the immediate present and
can afford to wait for advances which
Ire practically sure TO occur"
The second considered a moment
md answered: Trustees of estates
hat are rich frequently put women
into bank stocks, but women usually
want more return on their money and
more action as well.
insiders in banks are frequently
responsible for advances in stocks of
!anks. They know what is going on;
hey know the profits of the bank from
llvestmentS, something the general
lubic knows little about; they know
that the examination of the bank eX-
miner has disclosed and when an
institution is free from troubles. A
Hght for control is sure to raise stock
~ a bank to higher figures, but it
may not last. l buy bank shares for
heir future"
Keep Eyes on the Future.
The third person asked said: ''Peo-
pie buying bank shares have their eyes
on the future rather than on the i'm
mediate present. There are scores of
better-paying investments in the gen.
eral stock market, but the record here,
md especially in great financial CEN
ters, shows that fortunes have been
made in these investments"
Wise men buy bank shares, men
who can afford 10 wait for their re-
turns" said No. 4; men who are
looking for rights as well as divi-
dends. Sometimes the rights are
worth big money, and sometimes they
may have small value. Extra divi-
Qends are also anticipated, and these
melons form an attractive factor in
inducing buying. One has a perfect
right to anticipate steady improve
ment in values of bank shareS-no
great advance, but a slow, steady bet
terment, especially in these days of
large resources and general pros
perity"
The fifth response was short.
Il haven't got a share of bank
stocks. 1 am not director in any
bank or other corporation. l DO not
ike the double liability that attaches
to the ownership of bank stocks. l
suppose the people who buy stocks are
generally on the inside or want to
get there. Directors receive a. fee
for attendance on meetings and this
may be something of an inducement,
coupled with the feeling that they
are pretty sure to make the invest
ment profitable through ultimate
price gains"
Investors who haye to make both ends
meet from their annual dividends and
interest rarely consider the purchase
Of bank shares unless there is a boom
on and the evidence seems to favor
an immediate rise. There are ex-
ceptions to all rules. In the forma-
ton of a new bank with outstanding