Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-10


These brokers have sent letters to all
firms in the Capital which are members
of the New York Stock Exchange, Sug-
costing the ACCESSIBILITY of such an or
ganization, and expressing belief that
"the active and frank cooperation of
the member firms in Washington would
result in mutual benefit to all con-
'cerned."
At TIT" meeting late today 1t is hoped
that details can be worked out pre-
liminary to affecting a permanent or
in existence in several other cities and
have proved highly beneficial, George
A. Garrett said today that some of
the matters that such an association
could well consider would be minimum
commissions, fixing the size Of odd lots
to be dealt in and protection from I'M
desirable customers.
Each firm usually fixes its own mar
gin requirements. The aims of the
association are such that it is con-
sidered essential that all the Stock Ex-
change member houses In the city join
so that whatever action Is taken will
be taken as a unit. The originators of
the plan expect that all the local
brokerage ofices will be represented at
the meeting.
It was announced today by w. j.
Waller, president Of the District Bank
ers' Association, that Frederick p. H.
Siddons, secretary of the American Sc
curity & Trust Co., has been appointed
vice chairman of the general conven-
ton committee, which will arrange for
the June gathering of the association
to be held at Asheville, N. C. The
chairman of this committee Is George
o. VaSS, vice president and cashier OF
the Riggs National Bank.
Mr.. Siddons has already done a large
amount Of work in interest OF the as
ISOLATION. He was chairman of the
program committee last year when the
bankers met at Montauk Point He had
previously served on other special COM
mitteeS, including that Of publicity.
which involved a lot Of effort on the
associations monthly bulletin. Last
year Mr.. Siddons was appointed chair
man of the fiduciarieS section of the as
ISOLATION by Robert v. Fleming and
performed notable service In getting the
new division on solid foundation.
Better Bond Buying Noted.
j. A. w. Iglehart & Co., investment
bankers and members. of the New York
Stock Exchange, have published in
booklet form the article by Earl Willis
on Bonds as q Secondary Reserve for
Banks" which attracted wide attention
when 1t recently appeared in Barron's
Financial Weekly.
According to the Iglehart firm, banks
in the District of Columbia, Maryland,
Virginia and West Virginia have begun
again in recent weeks to become active
buyers of bonds after having been out
of the market to a large extent during
the period of stock market imitation and
declining bond prices. Much Of the
improved tone Of the bond market, both
in the absorption Of new issues and the
strengthening Of prices, Is attributed to
institutional buying.
After making a comparison Of bond
yields and short term money rates from
1916 to 1880, the booklet just sent to
banks in this area states that in gen.
eral 1t can be said that during the time
short-term money rates are declining or
are below long-term bond yields, bond
prices tend to rise.
Ability to guage correctly the credit
situation and the trend of short-term
money, rates Is held to be almost en-
tirely the governing, factor in a banks
success in realizing bond profits from
price appreciation.
MergenthaIer Linotype Strong.
Mergenthaler Linotype stock was
change again today, opening at tl08%
and closing at 10D. Railway g. Electric
preferred sold at 9714, and four shares
OF Capital Traction moved at SO. Carpet
Corporation sold at "a.
In the bond division, Washington
Railway & Electric As came out at So,
Washington Market Cold Storage SIS
at IS and Washington Gas 6s, series B,
at 10513.
Fifth District Building Permits.
Building permits issued in 80 leading
cities of the fifth reserve district In
and the estimated valuation was less
than in December, 1928. Permits issued
In December for new construction total
ed only 772, with estimated valuation OF
$685. SOB, compared with 942 permits
and valuation of $11 ,524,7 issued In
December, 1928.
Alteration and repair permits totalec
1895, compared with 1873 in the cor
responding month a year ago, but valu-
alton figures for this class Of work
amounted to only $904,797, compared
Combined valuation figures for al
classes Of work totaled $7,754,4O5 ir
December, 1929, a decline of $5,269, 178
or 40.5 per cent under the total O,
| $13,O23, 583 for December, 1928. ONLY
II OF the 80 reporting cities showed
higher figures for December, 1929, thar
Tor the corresponding month Of the
preceding year.
Among the larger centers, Baltimor
and Richmond reported larger figures
tnan In the same month in 1928, bu,
Washington, Norfolk, winston salem
and Charlotte reported smaller figures
the decline in washington being nearly
SIS, SOC, 600.
Total building permit figures for tn
entire year 1929 show q decrease in tn
number of permits issued for new worI
| in comparison with 1928, and valuation
| figures also showed a marked declin
last year. The 80 cities issued 1885
! permits for new construction in 1925
compared with 1896 permits issuet
l for similar work in 1928, and the 1922
valuation Of &104, 480. 1858 compares evel
more unfavorably with a total valuation
Of $14S, 208,266 In 1928.
Heard in Financial District.
Removal Of the safe deposit vault
J, from the Continental Trust Co. to tn
| Commercial National Bank is progress
| ing steadily. 1t Is q decidedly dificul
| job as bank vaults are installed to sta
| where tl.ey are put without taking int
1 account possible future mergers.
st. Louis Is the only Federal Reserv
Bank that now has the per cent re
discount rate and q reduction there
held probable soon. While New Yor
and Chicago have 4 per cent rates,
Is not considered that Richmond an
other districts will lower their rate