Evening star., 1926-12-12
ROSPERITY OF NATION IS REAL
EXCEPT FOR SOME FARMERS
Capital to Draw Large Share of Disburse-
ments January 1-Crime Insurance
Profits Prove to Be Heavy.

signals shown hy the President in his
annual message are unquestlonably
warranted more through a desire
to prevent overexpansion with the
threat of disa ster and to prevent mer.
chants from making the mistake of
stocking up far ahead after the 1919
pattern.
All Insurance Pays.
Despite the riot Of crime, mail rob
berry, bank hold.ups. inside stealings
and breaches Of trust on the part of
the higher bank officials. that have
caused some uneasiness among the
insured against hold-ups forged
checks and dishonesty generally, it
has been demonstrated. through in
Vestigation, that this class of insur-
ance pays and pays heavily, that the
rates for insurance have been placed
so high that the returns have been
more than ample.
Bonding corporations have one
great desire in their relations with
the faithless bank clerk or the thiev-
ing bank official and that is to com
promise. to get back just as large
percentage of the loss as possible.
caring nothing for the punishment
of the criminal. They delay settle
ment with the banks unduly while
these negotiations are going on
friends and relatives of the dishon.
est aiding in proportion as the
chances of punishment are lessened
and the proportion of losses recovered
is therefore very large.
This disposition on the part of the
bonding company to let UP for cash
may he one Of the reasons why some
bank employees are so lax In their
hOneGfV To
the daily handling OF money 8 a com
modify Is a serious one and vet If
prosecution was vigorous 1t might
not be As eadily Yielded to.
Investigation has developed that
many local banks have been victims
or employees within the last few years.
but even with this record the ins,,r
ance compan MES have made too large
percentage of profits.
Local Securities.
For months the local security mar.
ket has been more or less neglected.
Capital Traction, Potomac preferred.
Railway preferred and Washington
Gas have been the only utilities in
winch there has been much trading,
with the typesetters moving slowly
and the bank shares after their spurt
and in volume of trading.
Railway common has pra ctically
disappeared from the daily record
sheet to appear rarely and at much
ioWef range OF quotations than were
current back in October.
mere is no special inducement TO
investors to acquire per cent bonds
at par, which makes the return to the
nuyer here but Az per cent and our
bond market is now on that basis.
What the traction compa nies NAV
nnally do in the matter Of a merger
is far from indicated by any action
so rar taken. Some of the most con.
serVauve among the investors of the
city have little faith In the success
ful operation of street cars on
higher fare basis than now in effect.
They fear increased competition of
the used automobiles.
The certainty of the appointment
OF a separate utility commission and
the possibilities of the personnel all
tend to restrict trade and make un-
certain any investment in these
shares. The bonds are all held
strongly.
Millions Seeking Investment.
There are millions of dollars seek.
ing investment in Washineton.
When the small issue of $1,50O, 900 Of
the Washington Gas Light Co per
cents of 1896 We're advertised they
brought bids Of over $4,000, 900.
Cash in tho banks to the credit of
depositors Is abundant despite the
Withdrawals of $500. 900 on account
of the Christmas sa avers, money that
is already finding it's way back to the
banks.
The call OF December 81 may show
loss, but the first call of the new
year will show largely increased
deposits.
There are some signs Of a revival
Of interest In bank stocks. but it has
developed nothing OF the activity and
ef rNnGth of this TINA a, vaar aUo