The Washington times., 1928-06-16
MARKET SHOWS
MOOD FOR
WAITING
By RICHARD HATTON

stock market continues. It is evl
dent that the operating public is
Just now in a waiting mood This
is possibly due to tightening money
rates, to a BIT of overplaying on
the public's part and to interest IL
the present doings at Kansas City
and what is about to be done at
Houston.
In connection, with the prevalence
of political factors at the present
moment it is characteristic OF q
presidential election year, in which
the issue Is really in doubt, tnat pc
ginning about this time We get
season Of alarms OF one kind or an
other.
Campaign Effect
In any well-balanced contest the
advantage appears to sway first in
one direction, then in another.
This has disturbing effect on mems
minds, and is probably the real
cause OF whatever business urcer-
tainty is sometimes produced by a
national political campaign.
But we should not let ourselves
be unduly impressed by alarmist
utterances. Business in general,
according to the United Business
Service of Boston, is on SOUND
basis. Al downward correction in
the stock market and a reduction
OF security loans will strengthen
the credit structure. which is the
only department that can be con-
sfdered oyerextended Business viii
90 on much as usual after this
election as it has after other cleo.
tfons. There is no radical Bol.
sl1evistic party in the field that
threatens property rights with con-
fiscation or our monetary system
with revolution.
Soldering Influences
Every business man should con.
slider himself director In the
management of the nations af-
fairs and not fail to exercise his
vote and influence. An attitude
OF nonchalant disregard is not only
unpatriotic but dangerous.
While efforts on the part OF
conservative banking. interests TO
check speculative excesses is hav.
ing 8 SOLDERING influence on cur.
rent speculative enthusiasm, it does
not necessarily follow that all
stocks should be liquidated. How.
ever. if stocks are being carried
whose current prices are supported
solely by the buying enthusiasm OF
the moment rather than by a
soundIy established earning power,
it il high time they were dis
posed Of.
Good Stock Demand
There Is q good demand at all
times for stocks having favorable
earnings and dividend Backgrounds
and 1t Is stocks Of this type that
will hold the strongest or recover
the quickest in event Of a gen.
eral setback. Insurance companies,
investment trust organizations and
institutions OF such nature are
always on the lookout for oppor-
tunities TO buy good sound stocks
at concessions and buying from
these sources will prevent sound
stocks from declining seriously along
with the weak sisters.
Some industries are coming while
others are going, and the same holds
true in the case of individul con-
Germs Although strong individual
situations frequently appear in in
dustrial groups that, on the whole
are in a depressed state, we believe
# wise policy to give first consid-
Grafton to those stocks that are not
only individually well secured but
are also backed by a strong or
Strengthening Industrial situation.
The situation at present is one
which calls for strict discrimination
in stock purchases and intelligent
elimination in respect to stocks now
held.
Dividend Declared
The board Of directors of the Ana.
costa Bank has declared the regu.
lar quarterly dividend of 5 per cent.
The regular quarterly dividend OF
So per share has been declared oy
the board Of directors of the Farm
ers and Mechanics National Bank.
The board of directors of the Sc
curity Savings and Commercial
Bank has declared the regular quar-
terly dividend Of per cent payable
June 80 to stockholders OF record
June %.
Aggregate gains OF more than
$3O0, 900 900 were madazby 100 stocks
during May, according to the month.
ly compilation OF Frazier Jelke and
Company. Although more than hall
of the stocks registered losses for
the month, the net gain in market
value was IL per cent.
Plans for the outing OF the
Washington Bond Club, which vii
take place at the Burning Tree on
June %, are maturing rapidly
under the direction OF Carroll Nor
gan and Sidney 7. Thomas
Gov. Rc-y A wang OF the Fed
three weeks vacation in Michigan
Check Payments
Measured by check payments. the
dollar volume of trade during the
week ended June 3 was greater
than in either the preceding wcel
or the corresponding period of las
year. according to the weekly state
ment Of the Department of Com
merce. Operating activity in stee
plants, although showing no change
from the preceding week, wa!
higher than year ago. The vol
ume of new building contracts
awarded during the week averaged
higher than in either the precedIn:
week or the corresponding pcrioC
of last year. Wholesale prices wer
generally lower than in the pre-
Vtoue week and higher than yea
ago. Prices for cotton, 3ithougl
showing no change from the pre-
Vious week. averaged niGheI thai
q year ago, while iron and stee