Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-17

Treasury ofncialS
that it is not pos
sible to stop Specu-
lation. It Is held
that speculation in JOHN W. poLE.
stocks can only be
leSSoned.
Local bankers pointed to some un.
easiness noted recently among small In.
veStors. These investors have made
purchases through their banks of what
they consider to be sound stocks. They
have put up the stocks as collateral fol
the loans. Hundreds Of such loans are
made daily in washington and every
other city in the country. The holders
Of these securities are now wondering
If they will be forced to sell these stocks
ct q loss because Of Reserve Board
action.
Bankers here take the view that
there Is no occasion for selling sound
securities on which the holders may
have made loans through their banks
These financiers do not believe that the
Reserve Board is aiming at any such
legitimate investing, and call attention,
to the fact that the Reserve Board con-
stantly uses the word speculation. -
Attention was called to the fact that the
Reserve Board has made no clear state
being that any such statement Is no
doubt considered unnecessary. The
board has no intention Of disturbing
sound investing in any way, it was as
serted.
AS one bank president said, "It has
come to be considered desirable that the
securities Of large corporations be as
widely distributed as possible" AS long
as the Reserve Board confines Its state
ments to speculation and the huge sums
of money involved In the New York call
loan market, local bankers expect to
take care of their customers and make
loans on sound securities. They VIII.
however, continue to urge caution, as
they have for months: They will re-
fuse loans on issues they consider far
overvalued. Such advice Is always at
hand, regardless of any agitation caused
BY the Federal Reserve Board.
"More Banks Than Bankers"
n discussing the demand for profess
eional bank management, Controller
John w. Pole said to the Ohio Bankers
Association:
I'm general it must be said that old
fashioned business practices in banking
must give way to scientific methods in
the acquisition and the formulation OF
information and in the application OF
the banking policies based thereon BY
men who have acquired what might be
called professional knowledge OF
banking technical equipment to deal
with method and policy.
81 may, however say In closing that
the large number of bank failures OUT
side of the metropolitan centers during
the past few years Is an indication
1&As
The scarcity of trained executives
that is to say, executives with that
degree Of managerial ability required by
modern conditions-1nay be one OF the
underlying reasons for the rapid spleAd
Of branch banking and group or chain
banking ideas among bankers and BUSH
ness men in this country.
''As the business of banking is grow
ing at more rapid pace than execu-
Hives are being developed to operate
each unit bank as separate institu-
ton, it would seem to be an almost
natural and logical outcome that this
scarcity Of talent will lead to more
centralized form Of banking control"
Local Stocks End Week Firm.
Local stocks ended the week with
prices firm and trading moderate, Po-
tomac Electric 512 per cent preferred
and Mergenthaler Linotype leading the
market. Sixty-fiye shares Of the power
stock sold ex dividend at 1882. Mer-
genthaler sold to the extent OF 90
shares at Io4k.
Capital Traction came out at 10e3k
and 10 shares of Washington Railway
g. Electric preferred moved at 9e5s
ex dividend. Ten shares of Chestnut
Farms common changed hands at 220
10 shares Of Columbia Sand g. Gravel
sold at 96la, and $50 shares OF National
Mortgage q Investment preferred
moved at So.
In the bond department Potomac
Electric Power 6s sold at 1083z, Capital
Traction SIS at lOO1a and washington
Gas IS, Series A, 1T 1854. There were
very few changes in the unlisted Sc
curities when the list was read.
Bank ClearIngs Ahead Of 1928.
Bank clearings in Washington during
~ week ending February II, amounted
e 2I'b72,o0o against the previous weeks
total Of Just over 3OO0O.O0O but at tbs
same time were an increase Of l2.2 pei
cent Of the corresponding week year
ago.
In some sections Of the country Lin.
coins birthday cut one business day Oh
for the week Baltimore reported &
sharp falling on and clearings in Rich.
nnond were also considerably under
those Of the previous week. Both
cities were also behind the cores.
ponding week in 1923.
Bank clearings in the United State.
as telegraphed to Bradstreet's Journal
aggregated $12, 1855, 800 900 against $i4.-
9Il.O47,000 in the preceding week ans
f,a AmA .
This weeks total shows decrease D.
10 per cent from the preceding week
but gain Of 284 per cent over tn
Like week year ago.
Bankers on Special Committee.
Chairman T. Hunton Leith of tn,
American Institute of Banking's ban
quet committee, has asked the follow
ing bankers to assist In receiving tn
guests at the annual dinner next Satur
day evening ut the willard:
Francis @. Addison, jr., Security Saw
ing d Commercial Bank; Charles :
Bell, American Security 81 Trust Co.
Charles D. Boyer, Federal-Americal
National: r. Jesse CLANCY, Commerce.
National; Victor B. Deyber, Secon
National; Charles H. Doing, Washing
ton Loan a. 6zTrust Co.; James G. Dulir
American Security & Trust Co.; Joshu
Evans, jr., District National: Lanier
McLachlen, McLachlen Banking Cor
poration; Edward j. McQuade, Libert
National; Howard Moran, American Sc
urity q Trust Co.; A. M. Nevius, Rigg
National; John Poole, Federal-Ameri
can National; L. A. Slaughter, Com
mercial National; w. w. Spaid, w.
Hibbs g. Co.; George D. Walsol
Liberty National; George w. Whit.
National Metropolitan, and w. NICE
Stowell, Lincoln National.
Common Stocks I'm Trusts.
Bankers found much food fc
thought In the address Of G. Also
Scully, vice president Of the Nation;
Bank of Commerce, New York, at tn
trust conference in that city. Regard
ing common stocks as trust invest
ments," he said in conclusion:
- -