Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-08
BANK STOCKS HERE
G|VEF|NE RETURNS
Riggs Latest Advance Draws
Attention to Profits in
Many Issues.
BY EDWARD C. STONE.

At $500 per share Riggs stock yields
but rs per cent, which seems rather
small at first glance. But the low for
the year in the issue was $50, 50 that
the. gain of 40 points puts the yield
in an entirely different light.
Local bank presidents will tell you
that many bank stocks in this city, as
we'll as in New York and most every
where else, are too high. The yield Is
far too low, they say. But they shake
their heads when you call their atten-
ton to the gain in points which these
investments have scored In the past
few months.
While Riggs furnishes the latest
"shining example" yet there are several
other local bank stocks which have
shown handsome returns during the
present year and for several years back.
Riggs Is the highest-priced bank stock
in the city. with the single exception
of United States Savings Bank, which
is now selling at 600, yielding exactly
8 per cent.
Profits Surprisingly Large.
Third in the list of high-priced local
stocks Is National Savings g. Trust,
which last changed hands at $50, AL
though at one time this year it moved
to $40. The yield at $50 is 81 per cent.
Next to this stock comes Washington
Loan & Trust. which last sold at s35,
giving yield Of 2.6 per cent, and SELL
ing once this year at 545.
The low for the present year In Ma
Sional Savings & Trust was 507, so the
purchaser Of the stock at that figure
has q profit Of So points compared
with present quotations, IN addition to
his dividends. Stockholders in WASH
ington Loan & Trust can add Is points
since the low Of the year. not so start
ling, perhaps, but the stock has also
been climbing steadily for several years
In the 500 class also is to be found
Security Savings g. Commercial, which
recently changed hands at SIT. This
Is 4 points under the high for the year
and means a yield of 80 per cent =.
In the 400 class are to be found
American Security & Trust, with q
yield of 80 per cent at its present
price of 456; National Metropolitan SELL
ing at 410 and yielding "a per cent
and Columbia National quoted at 4021a,
giving yield of 3 per cent. To this
list might be added several other lower
priced local bank stocks which have
advanced In recent months, giving their
holders an excellent profit in addition
to the moderate dividends.
In this era of bank stock investing,
banks in the National Capital are play
ing an active part and making q show
ing which Is highly favorable when
compared with most other banks in the
country.
New York Bank Stock.
Guaranty Trust, Bank Of Manhattan
and National City were the leaders
from the standpoint Of advance and
activity in the New York bank stocks
market during the month Of August,
these three issues recording gains
ranging from is to "a points net
among the II active leaders. The
range of the average of these issues
shows some interesting changes for the
month with rapid recovery from the
break which followed, the advance in
the rediscount rate of the New York
Federal Reserve Bank. Il
The average price of IA leading bank
stocks on August l was 1863, according
to records compiled by Holt, Rose &
Troster. Between that date and Au-
gust stocks held firm, with little gen.
eral change, the. average on the latter
date being 361. On August 9, however,
due to the advance in the rediscount
rate, the average dropped to 346, but
recovered sharply after that level was
reached, closing at 375 on August 80,
which was the high for the month.
Guaranty Trust was the leader from
the standpoint Of total recovery and
net gain for the month. It opened at
COS, dropped to q low of $50 on August
8. rallied to 997 and closed at 989, a
net gain of "a points for the month.
Bank of Manhattan opened at $50, re-
acted to $40, then advanced 95 points |
to 935, and at its close of $40 was up
SO points for the month. National City |
reacted IL points to 1888, then recovered |
~ points from its low, and at AIS on |
August 80 was up is points net for the |
day.
An Amazing 1O-Year Record.
A 10-year growth of IS representa- |
tive bank stock investments, prepared |
by Clinton Gilbert, reveals some inter- |
estfng facts concerning the progress OF |
small initial investments made in these |
institutions. The statistics are based |
upon the cost Of 10 shares Of stock as !
Of September 6, 1919, of each of the |
following banks: Bank of New York & !
Trust, Bankers Trust, Chase National, |
Chatham Phenix, Chemical Bank & |
Trust, City National, Central Hanover, |
Continental Bank, Guaranty Trust |
Manhattan Co., Manufacturers Trust !
New York Trust, Public National, Title |
Guaranty & Trust, and the Bank of |
United States.
An individual investment comprised |
of $50 shares, representing part owner |
ship In each of the listed institutions, |
would now contain in the aggregate |
1904 shares through capital increases |
and par value reductions. A total orig !
inal Investment of $55,950 for 10 shares
each of the Is banks would be $126,403 |
as Of September 5, 1929, by the addi- |
ton of $70,453 in the form Of sub |
present holdings Of 2,O84 shares. which |
cost in all $126, 4oS, have an aggregate |
market value now of $504,120
Cash dividends received during the |
period totaled $47,722, which. along |
with an appreciation of $377717, gives |
q net profit of $425, 439, resulting from |
the purchase Of the $50 original shares |
and subsequent exercise of subscription |
privileges.
Rapid Progress in Trusts.
National banks are registering re-
markable progress in the development |
and accumulation of both individual
and corporate trust business. There
appears no further ground for COM
plant, says Trust Companies Magazne,
on the score of lacking competitive
latitude in the hduciary field when 1t Is
noted that within less than decade
the national banks conducting trust DE.
partmentS have acquired '1ndlvloual
trust assets aggregating $4,237, 638, 663,
whereas it has taken the trust com.
panies practically century 70 puno
individual trust and estate funds now
under administration.
Considering their late entry into trust
operations and the fact that trust de-
partments of national banks have con-
tended with novitiate problems in de-
veIoping equipment and personnel,
total of over four billions trust business
in less than 10 years Is tribute 70 tnen
progressiveness as well as their adapt
ability.
+. Banker Buys Virginia Estate.
L. ..~a.iAav.f NJ