Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-22
WASH|NGTONBANKS.
ENDING GOOD YEAR.
Dividend and Bonus DecIara-
tons Show Prosperous
Condition.
BY EDWARD C. STONE.


Few days, including several extras and
Bonuses, indicate that washington banks
are winding up q particularly good
year. For the first 10 months bank
profits reached record proportions and
indicated the l2-month earnings would
establish a new peak. Local bankers
say that the stock smash and the de-
cline In business in November and De-
cember have prevented q new high rec
ORD in earnings, but that profits will
almost equal those of 1928. And 1928
was considered the best year the banks
In washington have ever enjoyed.
One Of the most important dividend
announcements of the past week came
yesterday, when the directors of the
Lanston Monotype Co. met and declared
q regularly quarterly dividend Of SITS
share instead of $50, and then voted
ascent extra disbursement. This ac-
ton raised the dividend rate from
per cent to 8 per cent, provided the
IS extra is declared each quarter. Lans-
ton stock is very widely held in WASH
ington and the advance In the dividend
rate caused great satisfaction. Both
dividends are payable February 2S on
stock of record on February 18
The higher dividend will make Lans-
ton stock yield about 7.3 per cent. Listed
on the local exchange, 1908 shares have
already changed hands this year. The
stock opened the year at 100, went to
1875, dropped to los and sold last at
ITO.
The latest Christmas bonus for bank
employees Is announced by the Columbia
National. The president. Frank j.
Stryker, delighted the hearts Of his
faithful staff when he gave away the
secret yesterday, stating that on top
OF q good year, the directors Of the
Matt
f11 months salary to all the employees
. Of the bank"
As David Friday Sees 1880.
what may we expect in 1890? That
depends" says David Friday of Wash
ington. in the Bankers Magazine. first
of all upon the extent and duration Of
the decline in industrial production.
The Harvard Economic Service in its
November 16 issue sums up its view to
the effect that, "a severe depression like
that of 1920-21 is outside the range Of
probability" But, something more than
a mild recession such as that which
occurred at the end of 1927 is already
certain. This means that the only
forecasts worth considering are ~ q
severe recession lasting a few months
longer and followed by recovery; and
cd a mild depression lasting at least six
months and not so promptly followed
by q return to prosperity. Precedent
favors the first Of the alternatives and
makes 1t premature to forecast q
depression.
IF these two groups Of predictions
come true we will experience a depres-
sion more severe than in 1927 but less
serious than in 1924. It win probably
carry the index of industrial production
down from .126. its highest point, in
June. 1929. to los. The average level
far foll
that Of 1928, which was ITO. This was
the highest for any full year up to that
time. In 1929 it viii average 120 even
with the recession which we are ex-
periencing at its close.
'sUnder these conditions the profits Of
all corporations will fall. But even II
they decline by the same per cent as
in 1924, they viii sti1l be well above
the total dividends paid in 1929. The
corporations will, therefore, be able to
maintain their dividends on the high
level Of the current year If they choose
to do so. In the depressions Of the
last eight years they have never allowed
them to recede."
Saturday Trading on Exchange.
Trading was dull on the Washington
Stock Exchange yesterday. The only
bond transfer was q S., 1000 sale In Ana
costa q Potomac Guaranteed So at
twenty shares OF Liberty National
Bank stock changed hands at ais, same
as the last sale. Fifteen shares Of
Munsey Trust Co., q stock that appears
only rarely On the exchange, sold yes
terday at 155, while two shares of Park
Savings Bank stock moved at IS.
There were three 10-share sales in
Mergenthaler Linotype at 1864. ex
dividend; 70 shares of National Mort
gage & Investment preferred brought
AZ and 140 shares Of Real Estate Mort
gage e. Investment preferred registered z.
The stock sheet shows that nearly
all the bank stocks in washington and
many of the miscellaneous issues are
now selling ex dividend. The reduction
Capital Traction, to per cent, caused
that stock to sell OF about a point.
POles Recommendation Grip Attention.
Local bankers were intensely In
terested in Controller Poles annual
report made public yesterday. The most
important general Recommendation
favors the extension Of branch banking
which he advocated at the last meeting
of the American Bankers Association.
The controllers case for extension
of branch banking is based upon the
apparent strength Of large system bank
ing in the postwar period against weak
ness
diversified service.
banking" he says, els following in
the wake of the trend of business In
general toward larger operating units
with stronger capital funds and more
experience and highly trained manage
ment. The natural result has been that
the larger cities are being favored with
banking organization of great financial
stability with the capacity to render q
better and more diversified TYNE of eerV-
ice.
I'm the principal cities. therefore. In
various parts of the country, there have
grown up through mergers and through
increases in the variety and volume OF
business banking institutions which for
strength Of capital and management
technique were unknown in the pre-war
period. There have been no failures Of
any Of these types OF metropolitan
banks. These banks comprise both unit
and branch banking systems.
1.-The aggregate Of all banking re-
sources in the United States Is $12,0OO,-
O00, 900, held by little more than $4,000
banks as Of June 20. 1929. but $50 banks
hold resources to the aggregate amount
OF about $33,400, 100000.
January Advance Held Likely.
No drastic decline in actual consump-
ton has taken place nor Is 1t expected,
say Hornblower g. Weeks in their De-
cember Investment Review. While there
seems to be much uncertainty generally
as to the business outlook for the early
months of 1890, fundamental conditions
remain sound and we are inclined to
feel that the market will experience its
usual January advance. but sustained
improvement is not likely to occur until
late Spring.
Regarding the bond market, Horn
r. hat