Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-22

, ANY other matters that may come VI
will be acted upon promptly in order
that no time shall be lost before me IN
PRODUCTION of the distinguished speaker
President Waller will preside. w. w
Spaid is chairman of the program
committee and the meeting will start al
, 3 o'clock and be followed by buffet
lunch. Every seat in the small ballroom
is expected to be taken. The recent
terrific crash in stocks makes the
speakers subject about as timely as
any thing could possibly be.
Bank Loans Up $lsS,OOO,O 600.
The Federal Reserve Boards con-
dition statement of weekly reporting
. member banks in leading cities on Oc-
: tober Is, shows increases for the week
of Sl2l, 100000 in loans and invest.
ments. of 1856, 100000 in net demand
deposits and of $12.000,000 in time de-
nosits and a decline of 0,00o, 900 in
. Government deposits with practically
p. no change in borrowings from Federal
Reserve Banks.
Loans on securities increased $780,
100000 in the New York district. $52,-
. 900 900 in the Chicago district and SlS,-
! 100000 in the Boston district, and de-
/. clined S1O,o00,00o in the Atlanta dis.
. trict all reporting banks showing net
increase of $188,000,000.
IAN other" loans declined $4,000
. 900 in the New York district and $780,
p. o00, 900 at all reporting banks.
Treasury Views on Business
, Financial and economic experts in the
+. Treasury do not believe that national
prosperity is endangered by the drastic
break in stocks. The country's busi-
ness operations are going on as usual
and officials believe the breaks and re-
coverieS in stocks are perfectly natural
fluctuations, which no longer hurt other
industrial or commercial efforts.
Authorities traced the reaction al
most solely to two causes: Withdrawal
to a large extent of foreign buying or
buying for foreign account and Satu-
ration of investment trust portfolios.
!, The absence of these two elements in
the market has created void in the
buying sources, it is asserted, that now
is exemplified, in the Sagging quota
tons, but which has not in any way
affected the intrinsic values of the stock.
In explaining the lack of investment
trust buying, a high official asserted
that there had been no new trusts
created lately and those established
heretofore have placed their money in
securities I'D to the limit of their ca
pacity 1t is the belief, however, that
these trusts soon will be looking for
investments again and can be counted
upon to re-enter the market to meet
their requirements.
Experts maintain that the stocks
whose values had been shrinking under
the drive of the bears have the same
intrinsic value as before, because the
wealth of the country has expanded
along with stock quotations. It was
held, therefore. that the condition was
really only technical, in the sense that
real value was being maintained by the
steady hum of industry and the dis
tributicn of its products. The strongly
financed investment trusts recognize
this condition. and few of their man.
ayers have been disturbed by the re-
cession in quotations. according to the
oficial view.
The views expressed at the Treasury
are of particular interest, in the face OF
fears in business circles that holiday
trade might be seriously curtailed be-
cause OF heavy Wall street losses by
thousands OF people in all parts OF the
country.
Local Securities Remain Firm.
The investment securities on the
Washington Stock Exchange remained
steady today in moderately busy ses-
sion. The New York situation r. been
ignored here SO far as any important
price moves c:S concerned.
Capital traction opened the stock
trading today with small lots selling
at 85l4 and 851s. These sales were fol-
lowed with e more shares changing
hands at IS. Potomac Electric Power
5i2 per cent preferred came out at los
and 1861, Lanston moved at 129A and
1922, while Mergenthaler again regis
tered 104.
Thirty shares of Merchants Transfer
e. Storage common sold at 116, 172
shares of National Mortgage & Invest
ment preferred brought Az, and $50
shares of RacS Estate Mortgage & Guar
anty prefe. VI moved at rs. Peoples
Drug Stores preferred recorded small
sale at lis.
Twenty-three shares of Security Saw
ings g. Commercial Bank stock sold al
SODA. Another transfer was 40 shares
of Commercial National Co. preferred
There were several $4,000, $4,000 and
$1,000 bond transactions, the recent
increase in bond buying being vel
maintained Six or seven different bono
issues appeared on the board. Prices
we're firm.
Other Financial Notes.
The Wall Street Journal announce:
that every share of stock on the New
York Exchange is still owned by some
body. But some stocks have changed
would be hard tG tell who the ina
owner is. Mr.. Strong Hands, perhaps.
William P. Hamilton said here tn
other day that the Pennsylvania Ran
road sold bonds in 1900 on per cen
basis Il don't say those times are com
ing back" he explained, but l thinl
we have seen the worst of what we ma
, call unSafely high money rates. That
merely an opinion and not prediction.
Mr. Hamilton also made reference t
the frequent attacks in Congress o
gambling in Wall Street" Purchas
of 100 shares of stock means it must
paid for and for that reason 1t Is
genuine transfer. II you trade IN
bucket shop you do bet odds on an eve
chance that a stock will go up or dow
and that is gambling, he added.
Financing for German political unit
interrupted for nine months by hig
money rates in this country and by tf
indifference of American investors
straight investment bond issues, wi
be resumed this week with an issue {
S3,500,000 City of Hanover per Ger
bonds is offered to the public by Brow
Brothers 81 Co. and the Continental Ill
nois Co.
"A further decline of one-half of
per cent in commodity prices was rel
istered during the week ended Octob
- In the index of wholesale prices con
piled by the, National Fertilizer ASS
citation. Eight groups showed decline
and only one recorded slight advanc
Thirty-four items declined, and on
Is advanced The largest declines o
Cured in grains, feeds and live stoc
raw materials in the textile group, IA
49, automobiles and miscellaneous cor
" recdities.