Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-25
ECONOMIST SEES
GOOD 1928 TRADE
Edmund Brown, Jr., Does Not
Expect Year to Match
1926 Record.
BY EDWARD c. STONE.

L Business during 1923 should be it'll
better than In 1927. but not up to tn
abnormal year of 1926. Edmund Brown
jr., editor Of the Brookmire Analyst
and former member of the Fedora
Trade Commission. predicted at tn
monthly forum of Washington Chapter
A. I. B., at the Lafayette Hotel las
with no credit Stringency. There will
however. be sharp breaks In the stool
market and rapid recoveries, he as
serted.
Mr.. Brown bases his predictions upol
seven factors, trend of commodit,
prices. credit outlook with particula
reference to the supply of gold. stock
Of goods shown by inventories. buildin!
and other construction, motor industr,
output, foreign and the railroad ca
supply. The present director of com
modify prices is favorable: there !
nothing alarming at present in thu
large shipments of gold to other coun
tries. much of this being used to sta
Billie foreign currencies; stocks o
goods are in such state that norma
output. probably increasing, will be re-
Quired: the motor industry is conser'
vatively predicting an output OF 4,
100000 cars; the foreign trade situation
| SllUNS llU uklkdNOi SAeAAo NAAN A'Ns"
future. and no car shortage Is expected
until late in the year.
The economist declared that the cycle
method of business forecasting ha:
been largely supplanted. In the past
few years there have been no such
major swings as formerly. This Is
partly because the stock market has
come to move more by groups than as
a whole While a great many cities
are heavily overbuilt in apartment
houses and Office buildings, forcing a
letdown. road construction and the
erection of many utility plants are en-
pected to keep the building industry ur
| to or ahead of last years record
Eventually there must be a change in
foreign trade and exports exceed I'M
ports. but that turn is not looked fol
this year. the speaker said
The discussion which followed DR.
Browns remarks was one OF the best
yet held Harold W. Burnside, forum
chairman. presided and I. J. Roberts
president of the institute. outlined the
courses for the second semester. Many
prominent bankers were among the
guests.
White Urges Greater Cooperation.
Georse w. White, president of the
National Metropolitan Bank. has writ
writer's Association. urging the i'm
association and the banks of Washing
ton in protecting and conserving the
vast capital being daily created in this
city through life insurance.
Insurance upon lives grows steadily
says Mr.. White. as the people realize
that the capacity to earn is a valuable
asset which should be protected; that
cash which an insurance company pays
upon a policy Is so much capital with
all the virtues and potential values
which other forms of capital possess. but
with all the infirmities and hazards to
which such capital Is likewise subject
Unless the proceeds OF life insurance
by sane and safe investment replace the
earning power Of the head of the family
and provide a steady income for the
beneficiaries Of the policy. the insur-
ance fails to accomplish Its primary
| purpose.
In the bankers opinion such failure
Is wholly unnecessary, the properly
handled insurance trust furnishing pro-
lection to this form Of capital from
wastefuiness and loss.
Bankstocks Corporation Offering.
Offering is made today OF zoo, 900
shares Of Bankstocks Corporation OF
Maryland. class 3D." common stock by
Harris. Mooney & Co. The stock is
priced at $i2 SO per share
The purpose OF the present financing
is to reduce the outstanding bank loans
OF Bankstocks Corporation of Mary
land, amounting to about 81 200. 900,
and to provide additional working
capital
The corporation invests its funds In
the capital stocks OF the more promi-
nent banks. trust and insurance COM
panies OF the United States and Canada.
Years Income Makes Record.
The total business transacted by Col
lateral Bankers. Inc, for the month of
December amounted 70 s2o7s.sao. as
compared with $l.272, 7s9 for the corre-
spending month Of 1925. The cumula-
tive total for 1927 was 3d. $780, as
against S7.753.0l6 for the IL months OF
1925. representing an increase OF II per
cent.
The company has quite q number OF
bondholders in this city. The latest
report shows that the firm now has Ga
branches In operation In 20 States.
Chicago Bank Rate Advanced.
The Federal Reserve Board had no
explanation TO make here today over
the raising OF the Chicago Federal Re-
serve Banks rediscount from 3h To
4 per cent. which became effective
this forenoon. The increase Is regard
ed In financial circles az the first
specific move by the Federal Reserve
fE sfsht IA at.
The result at Chicago is being watched
closely In the East as the change may
reduce funds sent 10 New York TO be
placed on call. A change in rates else
where may not follow at present since
| the board no longer feels that dis
count rates throughout the system must
be uniform.
Large Earnings Reported.
Net income Of the r. w. W0olworth
Co. for 1927 amounted 10 $35. 350,47
equivalent 10 &906 share. the total
included a proportion OF surplus earn
ings Of foreign companies for the year
| Of t4,042. 7SI. but In the report for 1926
no mention WAS made of this item
Net income for 1925 was $28. 204 928
| or si0E5 share on a smaller num-
Der Of shares outstanding.
iteCNUiIJtI fhIiiUiSB Dl HHir1Hhh az
| Co before Federal taxes and depre'
citation were si00.083, compared with q
loss Of &7i.2 05 In December the yea'
| before.
President Charles c. Small says thai
| the Washington ONCE made an excel
! lent record He says that December
I usually shows small operating losses
/ Mid weather this year and increased
efficiency IN production and sales ars
| the main facbors in making the month
| q profitable one.
Local Market Strong To-day.
| National Metropolitan Bank stock APP
| pesred on the Washington stock III
! change board today for the first tint
! IN many weeks. IL opened al 400 and
closed at 403 on 30-shaTe turnover
-Four shares VI Washington Railway N
Electric common were picked up mt 4e0
| The PoLymae Electric Power Issues sold
al ye%t<fday'E lfiGFS CAPITAL Traction