Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-11

strength yesterday, E&z-Sa =
was quiet today. 1t Aubrey O. DooIey.
opened at 93A and
closed at e39s on a total turnover Of
only IS shares. Investors are main
tanning waiting attitude in this issue
pending the next meeting of the di-
rectorS for dividend action.
Merchants Bank & Trust was the
most active bank stock today, opening
at 1905 and closing at 1914 after q
70-Share turnover. Riggs National
figured in very smallssal at SIS and
four shares of National Metropolitan
came out at Az.
Fifty shares~of Merchants Transfer
& Storage preferred moved at 1882
Mergenthaler sold ex-dividend at 1851
Federal Co. preferred APP
peared on the board at 100 and Rail
way g. Electric preferred registered
95I2. Real Estate Mortgage 81 Guar
anty preferred recorded a 100-share
sale at 734.
Bonds were neglected, trading being
confined to Washington Gas issues at
recent levels.
Business Still Going Forward.
American business has made an ex-
cellent record the first half year and
the almost unprecedented rate of activ-
ity In major industries is being carried
into the Summer season, says the
American Bankers Association Journal
In It's current issue. The review says ::
Steel mill operations have shown
no Iet-doWn from capacity rate auto
mobile production has broken all rec
ordS and building construction, after a
considerable slump, has apparently re-
covered to a. level not far below last
year. Employment is general at high
wages and all indexes of activity make
q favorable showing
distribution of merchandise seems
to have kept pace with production,
despite the late Spring weather, which
has retarded trade somewhat. This
widespread pace-making of business in
most of its branches has been accom-
panied by very satisfactory earnings, a
tabulation of 700 corporation reports
for the first quarter of the year, making
gain of Is per cent over 1928. In
dustr1al and trading companies were 80
per cent ahead, railroads, 10 per cent,
and utilities, about Is per cent ahead
Money rates continue to be abb
normally high, and as yet there has
been found no solution to the problem
OF overeXpanded credit. Certainly the
banking system does not hold enough
gold to warrant any deliberate policy of
easy money at this season of the year,
in view of the usual seasonal increases
which come in the Fall and Winter and
which last year drew down the reserve
ratio into the go per cent level, which
is as low as it should be allowed to GO
If any reserve strength is to be main
tanned for emergencies.
Some liquidation is taking place in
the stock market which If carried far
enough would result in more normal
rates for money, but meanwhile the
tight rates prevailing have killed the
mortgage and industrial bond market
for both domestic and foreign issues,
the latter constituting threat to Amer
lean export trade that to date does not
appear to have received the attention
that it deserves"
Retail Trade Comparisons.
Total sales of department stores in
May were 2 per cent larger than in the
corresponding month year ago, ac-
cording to preliminary reports made to
Federal reserve system by 461 stores.
Increase in sales was reported by ZIG
stores and decreases by 245 stores. The
month had the same number of bust
ness days this year and last.
Retail sales in New York district were
3.8 per cent higher than last May; in
Boston they were 81 per cent higher,
In Richmond 10 per cent higher, Chi
cago As per cent higher, st. Louis GA
per cent higher, Kansas City so per
cent higher and San Franciso SO per
cent higher. Decreases were shown of
1.3 per cent in Philadelphia, is per
cent in Cleveland, ST. per cent in At
lanta, 3.9 per cent in Minneapolis and
81 per cent in Dallas.
Assumes New Trust Duties.
Aubrey o. Dooley has assumed his
new duties as assistant trust officer of
the Federal American National Bank.
Mr. Dooley became associated with this
bank last February, after long service
with the Commercial National He
holds law degrees from Georgetown and
National Universities and is second vice
president of Washington Chapter
American Institute of Banking.
Merger Interests Local Bankers.
Local bankers were deeply interested
in reports from New York today that a
Chase National and the National
Park Bank is being negotiated.
If successful such merger would
link resources of nearly 81 500, 600 600
capital funds of 100000, 900 and de-
posts in excess of 81 200, 600, 900. on
Gals have no statement to make as yet
other than to admit that the merger
has been talked over.
Completion of the merger would place
the Chase Bank about on a parity
from the standpoint of resources, with
the Guaranty Trust Co., which recently
absorbed the National Bank of Com
merce, although the Guaranty, in &C
cordance with plan announced last
week for increasing its capital funds to
$3.50, 100000, will rank as the largest In
the country from the standpoint of cap
ital funds. The new merger proposed
would place the Chase only step be-
hind the National City Bank, now rated
as the Nations largest financial institu-
ton. with total resources of $4,000
100000.
Local Financial District Notes.
The Improvements in the Franklin
National Banks Connecticut avenue
branch are nearly completed, according
to President John B. Cochran. Tit
Office win have 50-foot frontage, worl
on the facade now being pushed
rapidly.
The Treasury announces that sub
scriptions to the new SIS per cen
Treasury certificates of indebtedness
dated June Is have been closed. Tn
high interest offered is still causing
wide comment in the financial press al
over the country.
General Motors common and pre-
ferred stockholders set a new recor,
for the second quarter Of 1929 at 125,
.65, compared with 104, 202 in the frs
quarter of 1929.
Ahra sive Firms in MERGER.