The Washington times., 1928-01-28

eral Reserve Board sanctioned
the change must be interpreted
as a very plain warming to stock
market spectators that their.
mounting borrowing is condemned
by the powers that be. OF course.
action by Chicago Is much less
serious matter to stock market
operators than were similar action
taken in New York.
My guess is that several other
Federal Reserve banks, notably in
the South and Middle Vest will
follow suit, and that action will be
deferred in New York until 1T be.
comes clear whether loan expan-
sion is to continue or cease.
No Reason for Change
The writer sees no reason to
change his advice to deal eau.
tiously in stocks which have been
spectacularly doomed. 1t is pro.
verbally better to buy stocks
when they are low than when
they are high.
w. G. Durant III out with
statement to Durant Motor stock
holders in the form OF an Illus
trated booklet, Back on the
Job. The front page says,
This printing, one million copies.
Mr.. Durant declares that since
April z he has divided his time,
Eighteen hours day, between
Durant dealers in the field and
the Durant factory at Elizabeth,
NJ. j.
Mr.. Durant complains that
worthless securities that have
no market value" are being traded
for Durant stock, and that as a
result his stock lis selling far
below its real value" and that
IL this activity ceases. the situa-
ton marketwise will be greatly
improved"
Mr.. Durant should very plainly
understand that many of his
stockholders have utterly lost
faith in his statements and that
what they want now is not words,
but action. He should be aware
that the sensational statement"
which he widely advertised long
ago has thus far proved dud
in the eyes of his own stock
4 QOlu6IS anu HERS.
For the sake of the hundreds
Of thousands who were induced
to buy Durant motor stock-a
policy which was warned against
repeatedly in this column-it is
earnestly to be hoped that Du.
rant will succeed in achieving
something of comeback.
/ have Just had q very en-
couraging interview on conci-
tons with one of Americas
foremost industriaIists and hope
to give the gist of it in this
column. within day or two.
Another Carnegie Here
Another Carnegie has arisen
in America-another man who.
at least, shares Andrew Car
negie's determination not to die
disgracefully rich.
This man is A. r. Giannini,
the once penniless California lad
who is today head OF the fourth
largest bank in America. the
Bank of Italy, which he founded.
Years ago Mr.. Giannini said to
me:
IT am not a millionaire and
1 don't want ever to be a mil.
lionaire." But the various finan-
cial institutions he has organ.
lied have been making so much
money during recent years that
1t has become quite a job for
Mr.. Giannini to keep his pos
sessions under the 81 900, 900 mark.
His share of the profits of
one of his enterprises, the Banc-
italy Corporation. for last year
was $1,500,000, representing one
twentieth of the total. Mr..
Giannini promptly turned the
whole sum over to the Univer-
sity of California for agricultural
research and similar work. He
is particularly interested in agri.
culture because his first job was
in the fruit and vegetable selling
business. job which called him
every morning while he was
still a tiny schoolboy.
Some of Gianninis go.getting
financial methods have been crit
iciZed by certain conservative
bankers. Certainly nobody can
criticize his generosity. his atti.
tude toward personal money.mak-
ing
May this species of millionaire
increase!
Candidate Hoover's stock is
rising notably. So is Governor
Smiths. Vice President Dawes,
it is whispered in e. influential
circles, will come prominently
to the front by and by. All
others are regarded as out of
the running at present. Finance
and business view the cam.
paign calmly.
Copyright. 1928 by B. c. Forbea)