Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-20
PROSPEROUS YEAR
|SSEEN BY S|SSON
Guaranty Trust Official Deliv.
ers Address Before LARGE
Audience Here.

That the present widespread pros
perity In this country will continue
throughout the remainder of the pres
ent year was the forecast made by
Francis H. SissOn, vice president of the
Guaranty Trust Co. of New York, be-
fore the Washington Advertising Club,
many local bankers and members of
the Washington Bond Club at the Ma
tional Press Club yesterday afternoon.
There have been many predictions re-
gardng business in the second quarter
but this was one Of the first TO cover
the third and fourth quarters. In fact
the New York banker added, the Brit
ish empire had 40 years of prosperity
after the Napoleonic Wars and America
may now be facing similar period.
although there will of course be minor
f! reactions.
The automobile industry Is moving
at record rate of speed, the steel
| industry is reaching new peaks, ear
| loadings indicate tremendous prosperity
and most of the other bar0meters by
which business conditions are judged
are unusually favorable.
There are few unfavorable spots,
the speaker noted, the chief Of which
right now is the building industry.
Latest reports show falling of In the
number of permits issued and a de-
cline In building generally, This re-
action is, of course, due to high money.
Credit Situation.
| The present credit situation over
shadows everything else in the business
and financial worlds, the banker as
serted, and stock speculation Is at
| present out of bounds But so far
business has not suffered for lack oil
needed credit. 1t is possible, but not
probable, that high money will cause
a slump in business Bankers and the
Federal Reserve Board are cooperating
to prevent any serious depression, hi
said
The financial community seems i'm.
pressed with the fact that the UMPIRE
cedented flow of bank credit into thu
stock market must eventually submit u
correction, declared MIR. Sisson. ShoulG
the situation bring about slump iI
| business, such depression would no.
be of long duration, he believes. Tit
speed with which he recited the present
favorable conditions in business was re-
markable. his brilliant banking mine
shining to splendid advantage.
He does not believe prosperity viii
continue indefinitely on the slogan
help live" He is sure the time will
come when bonds will be in increasing
demand at advancing prices. The bone
salesman, he said, seems to have evapo-
rated but that is not true. He ha!
become general securities salesman
and Is filling the public demand fol
stocks as well as for bonds. Regarding
bonds, he added:
with reasonable assurance of q les,
stringent credit market in the future
and certainly there is more reason u
| ctInr0vt fnia xriaxv than fharo ft1x
close of 1928-the demand for fixed.
Understanding securities will undoubt'
eddy be stimulated. 1t would be idle tt
deny that the tremendous and wide.
spread speculation in stocks has com,
pletely overshadowed the bond market
There has been a tendency on the par
OF large number of investors TO over.
look entirely the enduring merits Of
bonds as an investment medium. Thi.
neglect of bond values Is illustrated b.
the fact that convertible bond issues. O
those carrying warrants, have accounted
Tor any substantial activity In listet
bonds during the last few months
From the long-range point of viey
the outlook for bonds Is clearly favor
able. High corporate earnings, the &C
emulation Of large volume of savings
satisfactory production records. tn
sound condition of industry and tn
high amount of domestic financing Civ
undeniable evidence of the accumula
ton of wealth In this country"
French Officials Attend.
Ernest johnson. president of the Al
Club, presented the speaker. Notable
among those present were Yves Guerir
and Robert Ruosseau, inspectors of tn,
Bank of France, who are studying
United States Federal Reserve Boart
laws, and Grosvenor Jones, chief of thu
financial and investment division of thu
Department Of Justice.
An interesting program Of entertain
naent was offered. through the courtes!
of Jack Mullane and Frank w. Young