Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-06-24

Local bankers when queried as to
the wisdom of buying bank shares al
most invariable assert that they are
too high and cite the small net return
from dividends to subStantiate their
views. On the face of the returns there
is little doubt that funds may be much
better employed elsewhere in the stock
list. but buyers of bank shares have
usually been fortunate in the advances
in prices rather than increased divi-
6end distribution.
These stocks are not favor,te invest
ments with those who are looking for
the largest returns on their funds, but
ere with those that are counting on the
development of their property and the
sharp advances in the market values OF
their shares.
II is a fact that this class of in
veStors has found bank shares very at
tractive. as witnessed by the current
values of bank stocks on our local mar
ket
II is probable that the apparent
ressimisnl on the part of bankers has
been largely responsible for the limited
volume of this trading so far during the
current wear. Aside from the senSa-
tionai rise in Riggs National and more
moderate advances elsewhere, the list
changes have been unimportant and
trade base been only on limited scale,
Holders Not Uneasy.
Those who are carrying bank shares
show no uneasincSs over the situation,
no 6isnosltion to unload taesr stocks al
concessions in price, but are hoioing
firmly. ,.,s
washington has as yet not developed
any ss.ch values as prevail in New YORK
CITY. nor il is likely that they VIII Tor
decades to come. There are banks there
whnse shares are so strongly held that
they rarely appear on the sales. sheet.
The First National Bank OF New
York is quoted at $3.50 bid ana S4,soU
asked. the Fifth National $2.SO0 olo
and $4,000 asked and the United states
Trust $4,000 bid and $500 asked.
There are numerus shares quoted from
Sam tn 5000 a share and many from
81 900 to $500.
Too Many Banks"
A deputy controller of the currency
was heard to remark the other Gay, IN
conversation with number OF BANKERS
there are too many BANKS III WASH
ington. Granted.
n is equally true that there are too
many bonds offered from door to door
snd sold by mail every day-ponos tnat
have not the real value nor the right
sponsors back of them; STOCKS ana
bonds that do not mean what Is de-
clarcd to be fact on the face OF the
securities and claimed by the statesmen
and in the advertising literature, as
well as too few blue sky laws.
1t is scarcely probable that the con-
troller of the currency would grant
charter for q new bank or banks IN
this city at this time. but the relief, II
it comes. win be in the shape OF
mergers of existing banks. This Is one
of the chief reasons for the great imam
cial institutions that have developed
in Chicago and New York. accom-
piished. in the former city at least, after
the passing Of some of the old-timers
who would never have consented to
eliminate themselves.
Some ASSUMPTIONS
The Commercial National, Bankers
Trust Co, Hibernian National Bank
and the American Trust & Savings
Bank were all absorbed by the Con-
t.nental- Commercial National. In like
manner a number were absorbed by
the illinois, Merchants Trust d Saw
ings. In New York many mergers have
been accomplished
There are opportunities here for ad-
vantageous mergers which would re-
diice expenses and increase the ability
of the banks TO accommodate trade and