Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-28

Ihey are nSte0 Henry IT. Mckee
on the Washington
Stock Exchange and have always been
popular here. They have not been as
active this year as formerly because of
their early maturing date and partly
because of the temporary lack of in
terest displayed In nearly all bond
issues They opened 1929 at par, their
high for the year is also 100 with the
low 99X and the last sale the same.
At s9a4 they yield $50.
The Washington Railway g. Electric
Co.'S general and refunding IS of 1888
form the other issue soon to pass. The
bonds have been called at 102 on May
l. These bonds are also listed on the
local exchange and have experienced
wide trading since they were placed on
the market. They opened the year at
1921 later dropped to 102 and the last
sale was recorded at 10l. At l0l the
yield is $40.
Holders of both bond issues should
bear in mind the expiration dates. In
connection with calling or maturing Of
every bond issue there are always in
vestors who delay acting only to find
out later that interest has stopped.
Further time is then lost in making
sound Refreshments. Notices have
already been published in the press and
forwarded to the stock exchange in
regard to both issues.
Mckee Made Convention Speaker.
Henry H. Mckee, president of the Ma
tional Capital Bank, has accepted an
invitation to address the District of
Columbia Bankers Association at the
coming annual convention at Montauk
Beach, Long Island.
He will Sneak IN the fret dau ~ the
convention, June 20, his subject being
The Value of Secondary Reserves. /"
Mr.. Mckee Is one of the best speakers
In the association. as well as one of
the best informed bankers in the city.
His subject is one in which local
bankers are particularly interested, and
discussion will follow his remarks. II
Is the aim of the committee to have
other local speakers, who will devote
themselves especially to local problems
In addition to the out-of-town speak
ers. 1t is hoped in this way to round out
an unusually helpful program.
Railway Preferred Leads Market.
Washington Railway g. Electric pre-
ferred led trading on the Stock Ex-
change yesterday. the days turnover
reaching go shares. The stock opened
az 971s. but all but 10 shares sold at
% fiat.
Two odd-lot sales In Capital Traction
were recorded at 90, Potomac Electric
Power 51s per cent preferred came out
at 1914, while Washington Gas Light
stock sold ex dividend at 1864.
Merchants Bank & Trust Co. was
strong and active, So shares changing
hands at l54. National Bank of WASH
ington sold at SIS. Other issues ap-
pearing on the board were Mergenthaier
Linotype at 1919 and Federal-Amer-
lean common at So.
In the bond division Washington Gas
IS, Series B, sold at i04la and l043z.
Washington Gas IS figured In q fair
sized turnover at 1907, and $4,000 Rail-
way g. Electric As registered 8634.
Member Bank Loans Decline.
Regarding the bank credit situation,
the Federal Reserve Boards latest re-
view, issued yesterday, says:
Between March 20 and April II there
vas considerable decline in the volume
OF member bank loans to brokers and
in the banks holdings of investments
Loans chiefly for commercial and agri-
cultural purposes showed a rapid in
crease. and at the end OF the period
we're near the high level Of last Autumn
During the same period the volume
OF Reserve Bank credit In use declined
further as consequence of additions
TO the country's stock of monetary gold
A continued rapid reduction in holdings
OF acceptances carried the total to the
lowest point since the Autumn of 1924
Security holdings also decreased some
what, while discounts for member banks
increased.
Open market rates on bankers ac-
ceptances and commercial paper In
creased further. Rates on collateral
loans increased sharply In the latter
part Of March, but declined in April.
WuI Bonds Come Back?
After the great bond market Of 1927,
the fashion In securities changed. and
common stocks grew rapidly in favor.
Today, according to Barron's Financial
weekly, NEARLY all the leading security
selling houses are directing much OF
their attention to stock issues. Conser-
vative security selling organizations
that never handled more than modi-
cum of the better class of preferred
stocks have now revamped their buying
departments in order to keep In step
with the times. These houses are just
as strict in their investment require
nents, allowing for the difference in
standards involved, but they are plac-
ing more emphasis on earning power
than on security. More attention Is
paid to the management of the cor
poration seeking capital than 70 the
brick and mortar of the plants"
Is this preference for common stocks
permanent? The only answer that can
be made TO this question is that finan-
cial history has witnessed similar spec
ulative periods before, when unusual
uroguerity in this country turned the
interest of investors largely 10 common
stocks, as In 1919 and 1T the beginning
of the present century. Each time the
rhat has avAntuallv Come hack