Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-18

zaN4
it was. What seems
to be quite possible,
and even probable, Edward I. steIIwaxen
is that people are
transferring their profits in stocks into
bonds. Dear money won't last forever
within the next few years you will
see per cent money market when
nobody will want the money. And
when that happens you will see COM
modify prices lower and the cost of
living will come down and therefore
YOU will see prices of bonds advance
because the gold flow will be more
Mr.. Hamilton devoted most of his
time talking about Wall Street as the
financial center of America and of its
importance to the rest of the country
through the stock markets, the banks
and other financial institutions.
Calls Stock Market Necessity.
every great nation must have a
financial center, just as every wheel
must have a hub" he said. THAT is
the reason Wall Street really is the
great reservoir for the collection of
capital. All the little trickling streams
of springs gradually accumulate there,
where they can be effectively used. Wall
0GIGSG pILlSlpdA JOb ClACACAoAS 40 hoS
carrying on the stock exchange, run
ming sort of gambling hell, which the
stock exchange certainly isn't.
Its job is to handle the financial
resources of this country to the best
advantage. incidentally, the stock ex-
change has the function Of creating a
free market for securities and your
experience will tell you that the stocks
for which there is a ready market are
more valuable than those for which no
market has been created. That is
essentially the service of the stock
market and speculation may be carried
too far, but better too much speculation
than too little.
There is a great distinction between
gambling and speculation and it is this.
In speculation there is a genuine con-
sideratiCn. In wager there is none.
If you bet on a horse or at your hand
at the card table, no one is benefited by
that transaction. 1t is purely the ex-
preston of opinion backed by what
money you choose to put up, but if you
buy hundred shares of stock in the
stock market you must take that stock
It is a genuine transfer.
Business Contracts With Market.
Another point which people do net
seem to get straight in this matter Of
brokers loans, the implication being
that all those brokers loans are Sc
cured by marginal stock But brokers
loans mean great deal more than that.
Wall Street does not necessarily sell
all its new securities across the counter.
1t takes quite little time to distribute
them, but IN the meantime they have
been created and they are carried in
brokers loans, where they form most
substantial part of that total.
They are continually being renewed.
They are continuously being passed out
to the investing public, investment
trusts and various things of that kind;
public utilities companies and other
different forms of investment.
Nov prediction has been called the
most gratuitous form of human folly,
so that you can take it from me that
will not predict what is going to hap
pen on the stock market. If I did
know I wouldn't tell There is one
thing I can say, if activity in Wall
Street greatly contracts then you can
bet that within few months the bust
nesses of the country will contract also.
The stock market is still the barometer
Of business" Mr.. Hamilton asserted.
Stock Exchange Session Lively.
The Washington Stock Exchange
registered one of the busiest markets
today for many weeks. Bonds were in
good demand, several bank stocks ap-
peared on the board and a broad list
Of other stocks were dealt in.
e. J. SteIlwagen Has Birthday.
Edward j.. Stellwagen, president OF
the Union Trust Co., received a host
of congratulations on his birthday to-
day. He refused to say which one it
was, but porter in the bank stated
that the banker is just As. Mr.. Stell-
wagon received beautiful basket OF
flowers from the officers and among the
messages was radiogram from friend
now on the ocean. He has been one OF
the leaders in the banking District for
many years and is enjoying excellent
health.
Insuranshares in New Move.
Insuranshares Certificates, Inc, has
been formed in New York with l 100 000
no par capital shares to consolidate the
five separate trust funds now operated
by the Insuranshares group. The di-
rectors of the new company have voted
to holders Of the existing trust certif1-
Gates the right to exchange their GER
tiflcates for shares of the new company
at the same time receiving cash pay
mentS in each case approXimating the
proposed distribution for the balance OF
this year on both the class A and class
B shares of each trust fund. The new
shares are being offered the public ir
Washington by Colster, Head 81 Trail
Shareholders in the new company are
also to be offered subscription rights
soon.
Security Club Elects officers.
Tha Security Club of the American
Security & Trust Co. elected the follow
ing officers at the annual meeting
Henry F. Kimball, president; William
French, vice president; Frances Carrick
second vice president; Mary Krogmann
secretary, and Clara L. Gainor, treas
urer For board observation-disclosures
D. Lewis, main office; Mae Gordon
central branch; King Irwin, northeas
branch, and j. p. Balster, southwes
branch.
Mr. Kimball, the new president, ha
been II years with the bank and
now chief clerk in the central branch
He is a graduate of the American In
stitute of Banking and member c
the board Of governors Of Washingto
Chapter.
District Bank Starts Club.
The District National Bank Official
and employees had a meeting at tn
Mayflower last evening for the purpos
of forming a social club among the EN-
ployes Raymond P. Lochte was ar
pointed temporary chairman with In
structions to form slate for the on
GERS and also name committee o
bylaws.
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