Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-19

that they can with
sufficient safety and
with much more
profit invest their
funds in common n. Golden Donaldson
stocks. This ma
turally has very materially changed the
method of corporate financing and has
adversely influenced the demand for
and the price of corporate obligations
and the bonds and notes of governments
and their taxing subdivisions.
I'm the shifting of public demand
during the year 1t was inevitable that
the business of our members should sui
fer, especially of those whose activities
were largely concerned with the orig
mating and distributing of senior Sc
curitieS There is no reason to doubt
that henceforth common stocks Will oc-
cupy a much more important position
in the investment field than they did
four or five years ago, or previously
when investment was so intensely COM
mitted to senior securities There is,
however, reason to believe that COM
mon stocks as a whole, in their swift
rush to wide recognition and public
popularity have overrun their mark,
lust as the ebb in the bond business
has carried senior securities below their
proper level.
Sees Better Bond Market.
at is common to all great movements
that they often gain a greater mo-
mentum than was foreSeen and that
this momentum carries them for time
beyond the predicted boundaries. The
question is not to restore the DID, but
to recognize the proper place of Junior
financing and senior securities in
more stable economic scheme. Greater
demand for senior securities, in my per-
sonal opinion, seems to be near" Mr..
Wilbur said.
After discussing the money question,
Federal Reserve Board policies and the
control of credit, the investment banker
added:
Speculation in its proper sense is
laudable and necessary function. 1t is
a creative force that aids in producing
and distributing wealth, in creating,
maintaining and stabilizing real values.
That is its purpose and its justification.
It. like anything else, however, can be
carried too far. I venture to say that
much of the whole difficulty in SO far as
credit demand for financing security
operations is concerned lies in a funda-
mentally uneconomic and unwiSe atti-
tuoe on the part of many individuals;
namely. speculation on borrowed money
by the average individual.
by this l do not mean that it is
uneconomic or unwiSe for any individual
to buy stocks of, merit with his owa
money or with his credit for sound well
considered investment However, / do
mean that it is uneconomic and unwise
for the average individual. uninformed
as to security values and wholly I'M
skilled in interpreting security prices
and their fluctuations, to engage in
speculation, especially with borrowed
money Is it not really an excess of
this type of speculative activity which
Is at the root of our credit difhculties?'
Commercial IS Years Old Today.
The Commercial National Bank is
Is years old today, President r. Golden
Donaldson and his staff receiving many
hearty congratulations from patrons.
The Commercial opened its doors on
october 19. 1904, in the old banking
rooms which then occupied its present
site at the corner of Fourteenth and
q streets northwest. In course of
few years the banks expansion war
rented the erection of the modern up
to-date building it now owns and &C.
cupies at the same location.
Mr.. Donaldson expressed keen salts
faction today with the patronage the
bank has received in the past quarter
century. There has been a continued
growth in assets to the present total of
over S20,000,000," he said. New de-
partments have been constantly added
until the bank renders most complete
banking service" In addition to PreSi-
dent Donaldson the officers include:
James B. Reynolds, vice president;
James H. Baden vice president; Lau-
renee A. Slaughter, vice president; WAL
ter j. Harrison, vice president Fred
erick H. Cox, cashier; Hayden johnson,
general counsel: Ralph D. Quinter, trust
officer; Robert A. Cissel controller;
assistant cashiers, Herbert v. Hunt, T.
Blackwell Smith, Alexander R. Varela,
M. F. Showalter and r. Jesse CLANCY.
The directors are James H. Baden.
Robert A. Cissel, Charles Conard, F. H.
Cox. H. Bradley Davidson, E c. Davi-
son, r. Golden Donaldson. w. j. Harri-
son. Hayden johnson, Holcombe G..
johnson, James B. Reynolds, A. M. Ri
xix, Percy H. Russell, James Sharp. Lau-
renee A. Slaughter Emmons S. Smith,
Jr- and George Tully Vaughan.
Heard in Financial District.
Lanier p. McLachIen, president of the
McLachlen Banking Corporation. is
spending few days at Atlantic City.
He is expected back on Monday
Wilmer J. Waller, vice president of
the Federal-American National Bank is
expected back from two-week vaca-
ton on Monday.
Thomas E. FARRELL president of the
Washington Savings Bank, is on a visit
to his old home at Greensboro Md.
A. E. Henze CT W. B. Hibbs 81 Co.
and president of the Washington Chap
ter, American Institute of Banking is
back at his Office after a short illness.
HIleary l.. OffUtt, vice president and
cashier OF the District National Bank
d. Will have been connected with that in
stltution just II years next Tuesday.