The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-05-24
BANKERS
| HERE LURED
BY FARLEY
BY RICHARD HATrON

! Every indication points to more
Ehan fulfillment Of predictions By
rsaident spaid. Of the D. c. Bankers
Association and General Chairman
McQpade Of the Convention Commit.
tee that the coming gathering 81
Washington bankers at Montauk
Beach. II. 4. would be the largest
annual convention IN the history Of
the organization. According to the
number Of requests for transp0rta-
ton and reservations coming to
chairman Slaughter every day now
the attendance ot last year win be
Stderably surpassed. With the
first session ct M0ntauk Beach only
about TWO weeks away. every mail IS
bringing increasing demands for &C
cumn1odatiOns and the list IS well
ahead Of the number registered ct
the same period last year.
It Is especially noticed this year
that larger number OF bank direc-
tors than usual are making reserva-
tons. This ID particularly pleasing
to officers Of the association who
fully realize the Importance Of the
discussions 70 directors as wen as
hank officers. Baltimore, also. seems
interested In the d. @. bankers gath
ering and It is understood that
number Of the leading bank officials
of the Monumental City will accom-
pany the local financiers.
Arrive For Breakfast
The special train to the convention.
which viii BE- operated BY the Penn-
sylvanis railroad. viii leave Washing
tim June 8. 1T : b. M. reaching Nom
tauix Beach in time for breakfast
Thursday morning. a special ar
rangemenk has been made also by
which stopover privileges will per-
nit those who care to to spend q
few DAYS Iii New York at the close
of the convention.
Lanksn1en are polishing MP their
clubs ana practicing the latest stance
81 anticipation OF playing over some
of the finest goIf courses I'll the coun-
try ana, taking It alI-in-all, there has
sprung up within the last few days
d tremendous wave OF enthusiasm
for the trip ia the cool shore resort
It the upper end Of Long Island.
According to the Business Bulletin
Of the Cleveland Trust Company It
now takes six hours for the stock
tickers to print record Of the trad
tng done III five hours. 1t takes SIX
days for the clerks In brokerage Of
tees to DO the bookkeeping relating
to the transactions Of five days, so
the stock exchange IS forced to slls-
nend trading on Saturday. Brokers
loans are increasing at the rate OK
about d hundred million dollars q
week. The Federal Reserve authOri-
I Ties make attempts to curb the spec
ulaffye use Of credit, and these at
fempts prove to be futile gestures.
Al prominent business economist
end leading Investors service ex-
press the opinion that the advances
IN security prices during the next
tive years win be as notable as have
been those OF the past five years.
This Is not quite the same as pre-
dieting that the present bull market
viii rum for five more years. but
n does express the general thought
OF the trader who recently stood
watching the advances being chaIked
MP on the stock board i'm 4 New
York brokerage room and made the
IUNlAAtsGAAbss NAAU& SNNAS AMAAS - S0AAAS
to 500.
This wava OF speculation has ex-
tended to all parts OF the country,
and drawn In all classes OF popula-
ton. Increasing thousands Of first.
time specula tors are watching their
PAPER profits mount, and are con.
Guiding that anyone who works for
= living is a boob. 1t is almost lit
orally true that great waves OF spec
Hlation like the present one cannot
be killed off: they have to commit
suicide. They do it by generating
the belief that speculation is the
quick and easy road to riches.
How much longer this market may
run il az impossible to predict as
was the duration OF the Florida
boom, and for similar reasons. The
leading stock I'm this market, taken
~ group. now yield I'm dividends
about half as much as it costs to
carry them on margin. Spectators
think they are discounting the fu.
4iire earnin Is of the prosperous COM
panies. In the bull markets of the
past 80 years the prices OF groups
If stocks have repeatedly been car.
ried up TO levels quite out of reIa-
TiOnahip to their earnings or their
dividends This has happened with
the express companies, the rails the
coppers, the oils, and the eu1in.
ments. The records show that these
extreme price advances have always
turned out to be based on belated
recognition OF past performances
rather than ON prophetic apprecia.
ffNFE rP future x1nN@flnilf%in-