The Washington times., 1927-12-06
LOANS
SET RECORD
By RICHARD HATTON

Brokers loans scared to a new
high record in November although
the stock market decline in October
produced very little defiation in
this class Of loans. According to
an analysis and forecast of business
conditions published by the Alexan-
der Hamilton Institute this was
expected. The analysis continues:
'When bankers have a large surplus
of loanable funds they are eager to
make loans. They are not desirous
of seeing loans decreased by de-
cline in the stock market. During
the last three weeks a new record
Of nearly 3.5 billion dollars has been
reached in the loans to brokers by
the New York banks which report
to the Reserve Board.
This simply means that a new
high record in brokers' loans does
not indicate a vulnerable position in
the stock market unless the general
banking position is unfavorable.
There can be temporary market re-
actions in the face of easy money
conditions merely because active
stocks reach a technically weak
position, but a considerable deple-
ton of loanable funds is necessary
to cause. q prolonged reaction. The
stock market reactions in March
and October of 1926 were preceded
by a period OF decline in the net
reserves of the member banks. The
stock market reaction six weeks
ago, however. developed in the face
of a rising tendency in the net
reserves and could not last long"
All the financial world of Wash
ington and his wife and many of
his friends We're in the audience
at the National Theater last night
when the Washington Chapter,
American Institute of Banking,
gave it's annual theater party. The
auditorium was filled to capacity
with one of the most brilliant audi
ences Of the season and members
of the cast of Vanities caught the
spirit of the occasion and pre-
sented their offering with more
than the usual verve and spirit.
The affair last evening was un-
doubtedly the best and most sue
cessful theater party ever held
by the local organization, and con-
gratulations were freely extended
to President /. ]. Roberts. of the
Washington chapter. and to the
theater party committee in charge
of the event.
The directors Of the Bank of
Commerce and Savings have de.
clared the regular semiannual divi-
dend of per cent payable on
January 1 to stockholders of rec
ord on December 20. according to
announcement by the president.
Maurice D. Rosenberg. The stock
has been on an annual 10 per
cent basis for a long time. 1t
is shown in the records of the
local stock exchange that the last
sale Of Commerce and Savings
stock was made at 326. the issue
being so closely held that only
two shares have changed hands
this year.
Southern's gross revenues for the
month of October show a decline
of 2.7 per cent. as compared with
October. 1925. The loss in gross
for the month, as has been the
case throughout the year, is due
ldTR0ly " Tic Stcduy uSShhO III
passenger traffic. Passenger reve'
nues are off 1914 per cent for
the month and about IL per cent
for the year to date.
A statement issued through Case,
Pomeroy and Company says. how.
ever: "On the other hand. freight
revenues show an increase of .06
per cent for October and a loss
of only 1.75 per cent for the first
10 months of 1927. Southern's
freight traffic Is holding up well
in comparison with declines from
the peak levels of 1926, which
are being shown by many of the
leading railroads. The small loss
in freight traffic in the face Of
a somewhat general decline sub.
stantiates the confidence which we
have expressed in the economic
stability Of the territory which
the road serves. Numerous thriv-
ing industries have located in this
territory and offer a volume of
traffic which has gone far to-
offset the losses in the transpor.
tation of coal. lumber and build.
ing materials during 1897. Thus
the diversity of Southern's's freight
business continues to broaden
through the backlog Of new in
dustries. Southern holds some ad.
vantage over other roads in the
Southeast in that its main lines
run directly through the most
highly industrialized sections Of
the South
An interesting article describing
the school bank maintained by the
National Park Seminary to handle
the money of it's students ana to
instruct them in practical banking
methods is contributed to the cur.
rent issue of the Burroughs Clear.
ing House by Frederick p. H. Sid.
dons. secretary Of the American
Security and Trust Company,
One hundred active stocks made
a net gain of $1.4S6,017, 900 last
month for a total market value Of
$22, ,251 ,06S,00 on December ]. This
is $140,676,000 above the previous
high, made September 80, according
to an analysis by Frazier, Jelke
e Co