Evening star., 1928-04-22
SENATE TO PROBE
LOANS TO BROKERS
Banking Committee of Legis-
Iative Body TO Look Into
Their Growth.
BY EDWARD c. STONE.

The Senate banking committee de-
cideo yesterday to make a thorough
probe and study OF the increase in
loans to brokers on stocks and securities
by member banks of the Federal Re-
serve system, which have reached a
new high level recently, approaching
$4,000 100000.
Chairman Norbeck stated that his
committee had determined to seek
some legislative corrective, but added
that it had not been decided what
steps could be taken to check the
amount of these loans, which to him
appear excessive.
we must remember that what goes
up must come down." Senator Norbeck
said in commenting on the growth of
these loans and the corresponding in
crease In values on the Stock Market.
1t is expected that committee men,
bers will seek to work out some legis-
lation in cooperation with the Federal
Reserve Board, which was represented
at the executive meeting OF the COM
mittee today.
The advance in brokers loans has
been one Of the biggest issues discussed
recently on the New York Stock Ex-
change and the action of the Senate
committee is sure to arouse most pro-
found interest when the market opens
tomorrow after a double holiday.
Gas Light Is Active.
AS the first four months of 1923 are
drawing to a close Washington Gas
Light stock stands out as the most ac-
tive issue on the local exchange. So
far this year 5.l09 shares have changed
hands. having opened 1928 at "a and
closing on Friday at 9l%4
Next in the active list comes Poto-
mac Power 5l2 per cent preferred, which
has figured in turnover OF 2.3l4 shares,
although its range has been very mar
row. selling on the 1st of January al
l08ls and this last week at 108i2.
Sales of 1900 shares of Capital Trac-
ton put this stock third in the list
This issue started the year at 1922
was made at ITO. Next in trading ac-
tivity comes Washington Railway g.
Electric preferred, the turnover being
729 shares. The stock started 1928
at l0l i, with the last sale at 1921.
Lanston Monotype takes fifth place.
1908 shares having been sold so far
this year. The opening 1928 sale was
made at 1922 and the last one at
l09&.. Following Lanstcn comes Column
Dia Sand & Gravel with turnover of
| 006 shares, the price ranging from
l04 on January TO 100 this last week.
The amount of trading in National
Mortgage & Investment preferred has
been greater than in any of the others
but the price makes the volume OF
funds involved much smaller.
Steady Tone Noted in Bank Stocks.
Local bank stocks have displayed a
steady tone through the present year.
no such rapid advances having been
recorded as was the case In 1927.
The most active bank stock on the
Washington Exchange has been Amer
ican Security & Trust. The turnover
In this issue totals 2l2 shares, the price
at the opening of the year and the last
sale being exactly the same-450.
Second place in the list IS taken by
Federal-American National. i85 shares
having changed hands so far this year
The opening of the new year found
the stock selling at 338. while the last
week recorded price of 3s9.
Close 10 Federal-American in point
Of activity presses the stock of the
Union Trust Co, 1t is only one share
behind, l84 having figured In the year S
transactions. Union Trust opened the
year at $40 and is now selling at 3l5.
Riggs stands In fourth place, with a
turnover of 100 shares during the past
four months. Starting 1928 at 493 the
stock has advanced until 1t is now SELL
ing at $40. but point under its high
for the year.
Fifth in point of activity Is Mer-
chants Bank a. Trust, the record to cate
being the sale of I08 shares. Here is
another stock that Is now selling at
the exact figure at which II opened
the year--~i5i.
The highest priced bank stock In
Washington at present is National Saw
ingS {. Trust, with the last sale at sis
riggs Is close second at $40 ana
Washington Loan e. Trust third at S07