Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-25
PRICES HOLD FIRM
ON D. c. EXCHANGE
Bonds, Bank Stocks and
Other Issues in Good
Demand Today.
BY EDWARD C. STONE.


prices remaining close to recent levels.
Bonds once more drew more thar
usual attention and fair sized transac-
tions were registered in nearly all the
leading issues. Quotations were little
changed
Bank stocks attracted some attention
Riggs National being the first one to
appear on the board. single share
sold at COOS and 20 shares at 500 nat
other bank stocks out were American
Security e. Trust, selling at $50, and
National Bank of Washington, which
moved at 800.
Ianston Monotype sold at 1877 and
Mergenthaler came out at l03 and clos
ed at 1921. Among many other stocks
traded in were Woodward 81 Lothrop
preferred at l06 and Norfolk & WASH
ington Steamboat Co. at $50.
Boardroom Comments on Stocks.
1.-THE Treasury announcement yester-
day that business conditions did not
warrant a downward trend in the stock
market no doubt did much to help
check the throwing overheard OF many
stocks" said a broker today. In my
opinion, however, the statement should
have come before the market had gone
so far It might have saved host of
small investors from heavy losses.
1.-THE market was broken by group
of very wealthy traders in New YORK,
who threw enormous selling orders into
the ring at time when they acceler-
ated the collapse. These men sold
short so fast that no buying orders
could offset the weakness. In weak
market it is always the short sellers
who do the most damage"
There was great interest in the effect
the break on the exchange would have
on New York bank stocks. First Ma
tional closed yesterday over the counter
at 1900, a loss of 500 ON the DAY;
tional City, IS; Bankers Trust, Z;
Central Hanover. Is, and Chase Ma
tional, f. The Corn Exchange showed
a gain of 10 points on the day. Nearly
ali the bank stocks closed up from the
days lows.
The selling in bank stocks was said
to be largely by holders who had to
have the money to protect commitments
in stocks. Traders cannot sell bank
stocks short as they cannot borrow on
them This factor prevents any such
wild fluctuations as occur so often in
stocks.
Local bankers were greatly pleased
with the manner in which the New
York bankers came to the rescue OF the
market. Bankers always act at the
right time" one bank oficial here
proudly commented to0ay.
Reasons for Stock Advances.
In his address before the District
Bankers Association, Prof. Irving Fisher
gave IL main reasons for the great ad-
vance from pre-war levels. He con-
cluded:
I'VE may summarize by saying that
the stock market rose after the war
above the pre-war level by from so to
100 per cent because of war imitation,
and that since then it was doubled,
because of % increasing prosperity;
from (2) less unstable money; 90 new
mergers; a. new scientific manage
ment; (5) the new labor policy of
waste saving: (6) new inventions; CD
prohibitions; go the magniflcation of
effects Of all the preceding causes to
the extent that bonds and other senior
securities do not share in the increased
earnings; (9) investment trusts, invest
ment managers and mergers: 00) the
investors recent loss Of confidence in
bonds, because, being in terms of dol
lars, they impose on the investor a
risk OF loss in the purchasing power
OF the dollar; I'D an income tax which
has been perverted into a capital tax,
and (l2) public speculative mania"
At one point in his address DR.. Fisher
turned to taxation and said:
There remains factor which Chair
man Mitchell of the National City Bank
and Frederick Delano, formerly of the
Federal Reserve Board have emphasized
and which is an extraneous and really
improper interference with natural sup
ply and demand. This is the silly taxa
ton system which counts realized CAPT.
tai gain as income. A holder of Allied
Chemical & Dye stock told me he ac-
quired it at 35 and now would like to
sell it at more than 800, but avoids do
ing so because he would be soaked" in
his income tax If he shifted the invest
ment to something else. This means
that the stocks which advance the most
will not be sold or sold the most reluc-
family, or only on a still greater ad-
vance: that It, the more they advance
the more they tend to advance still
farther"
Junior Bankers Plan Party.
Washington Chapter, American Insti-
tute of Banking, will have its annual
Halloween party on october 80, at
L'Aiglon. An elaborate costume affair
is being arranged.
The women's committee in charge is
composed of Miss Mildred c. Woodcock,
American Security & Trust Co, chair
man; Miss Mary Craven, District Ma
tional Bank, secretary; Miss Lois A.
Miss Mabel v. Royce, Washington Loan
81 Trust Co.. Miss Catherine M. Krieg
Riggs National Bank; Miss Winifred
BurWeli. National Metropolitan Bank;
Miss Eleanor Dankmeyer, Security Saw
ings g. Commercial Bank; Miss Ellen
Crawford, American Security & Trust
Co.; Miss Anne Crawford, McLachlen
Banking Corporation; Miss Helen Good
in. National Savings 81 Trust Co.; Mrs
Eunice Dampier, Departmental Bank;
Miss Alice Whitton, First National Bank
of Alexandria; Mrs. Marjorie Tucker,
Continental Trust Co.; Miss Hattie Pot
ter, Second National Bank; Mrs. Edna
Lunsford, American Security & Trust
Co.
Other Financial Notes.
The Pennsylvania Railroad has de-
clared the regular quarterly dividend OF
81 per share, payable November 80 to
stock of record November /.
Brokers loans decreased $4,000, 600
in week ended October %, to 1864, 000,-
0OO Federal Reserve System ratio 74.5
ago and 90 per cent year ago; New
York Bank ratio 857 per cent, against
80 per cent and TIA per cent. respec--
lively; no announcement on New YORK
rediscount rate of per cent.
Pennsylvania Railroad September net
operating income, SIS, l3o, 5Z3. against
Sl1,93l,115 in September, 1928: nine
months, $l03,733,713, against $685.
$50.
Orcar A. Thorup connected with the
Remington Rand Business Service, has
returned from alb usiness trip to New
York and Philadelphia.
WESTERN MARYLAND RWY.