Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-02
CAPITAL TRACTION
S. STOCK SELLS AT s.
Gain in Business Shown or
i D. C. Exchange as
Month Opens.
BY EDWARD C. STONE.

improve on the local board during the
remainder of the month.
Mergenthaler Linotype was active to-
day, with a turnover Of rs shares. The
stock opened at 965s, dropped to II
and closed with As shares selling at
the opening price.
Washington Railway g. Electric pre-
ferred figured in a 30-share transac-
ton at 9734, practically the same price
that had prevailed for some time. Ten
shares of Riggs National Bank stock
appeared on the board at ats.
Capital Traction led the market with
Q single transaction OF 100 shares,
which changed hands at So. This was
one of the largest blacks of stock in
this issue that has been recorded for
many weeks.
Two other sales were recorded, 40
shares of Real Estate Mortgage q
Guaranty preferred coming out at 6l2
and II of Federal American Co. COM
mon at SOFA. Bonds were neglected.
High Spots in Banks Review.
In his monthly review of business and
agricultural conditions in the fifth Fed
eral Reserve district, William M. Hox-
ton, chairman and Federal Reserve
agent, says that the drought has struck
a blow at almost every business activity
and it is possible that its full effects are
yet to be felt.
Unless there is q marked change for
the better, the larger cotton and to-
bacco Yields this year will not nearly
compensate for the drop In prices since
last Fall. and signs Of such change are
not yet apparent.
Business developments during early
August were largely seasonal. Member
banks in rural sections Slightly increased
their borrowings at the Reserve bank,
due chiefly to the opening OF tobacco
markets in South Carolina and border
counties in North Carolina.
Between July 9 and August Is TINS
year, loans of member banks on stocks
and bonds decreased $4,681 900, while
all other loans increased by 81, 600.
These changes resulted in net decline
in outstanding loans amounting 10
S537 900. or tenth of / per cent,
during the month.
Loans Compared With Year Ago.
Comparison of the August 10, 1880,
figures of reporting member banks with
those for August IA, 1929, showed rela-
lively large changes in nearly all items.
Total loans and discounts dropped $46,-
783 900 during the period, loans on
stocks and bonds decreased $40 600,
and all other loans declined $25 1880, O0U.
On the other hand, aggregate deposits
in the reporting banks increased py
Sl9B69 900, an unusual occurrence In
the face of material reductions In loans.
The figures tend to show that re-
norting member banks are lending con-
siderably less than at the middle OF
August last year, but they have In
creased their investments in securities,
their deposits are higher ana their re-
discounts at the Reserve Bank are mucn
lower this year.
hOIarqS
showed the influence OF lower price
levels and generally depressed business
this year. running about 10 per cent
lower than last year. A decline at this
time is seasonal, the report explained
hit II is rarely that the seasonal de-
cline is shown in every city on the ISL
Durham, NJ c., and Portsmouth, va,
reported the smallest decreases IN the
district.
Time deposits in Sc regularly report
ing member banks rose during the last
month to a figure higher than at the
correspondents time year ago, UoLal
time deposits on August IS, 1880,
amounting to S253, 002, 900, comparing
with S247 $4,000 on July this year
and s23S, 875, 900 on August IL, 1923.
Investment Bankers Program Out.
washington members received the
call today for the nineteenth annual
convention of the Investment Bankers
Association of America, TO De nelo az
New orleans october IL to is. The
program has been cut from six 10 Iour
DAYS, the pre-convention meetings are
to be open to all delegates and one ses.
sion is to be closed, with no pIlnSso
report to be made later, either 1or Clie
press or the members.
Among the speakers will be e. n.
ralacr Governor of the Federal Reserve
Bank of Atlanta, who Will speak Oh
ernie Soalth-an Investment F1elo.
Silas n Strawn Of Chicago will be an
other speaker, on Problems OF Muhlcl-
pal Credit in the Future. a,,r.
Another innovation in the proceour,e,
of the associations 1880 convention VIII
he that of the 80 members OF It's poaro
Of governors will convene in New Or-
leans two DAYS before the opening 70
consider the reports to be made TO the
Convention by some 20-odd committees
The 200 members of committees VIZ
arrive with the delegates October IL ano
will convene Immediately Inc assos
citation maintains especlany seiecS -,
groups, or committees, OF experts IoL
every important division and problem OF
investment banking and 1t is TO give
the entire membership closer contact
with the research work of these groups
that committee meetings this year VIII
be open to all delegates.
Most of the committee reports VIII DC
summarized on the floor OF the conven-
ton. by the respective chairman, lnSteao
of reading an entire report as at pre-.
vious conventions. Complete copies OF
the reports will be distributed at the
beginning of the sessions.
The 1880 convention will vote on the
election of a president, six vice presi,
dents, a treasurer, secretary ano
twelve members of the board OF gov
ernorS.
Notes in Financial District.
The Monthly Bulletin published by
the District Bankers Association wa;
being distributed today. 1t covers the
uuistest time of the year in the loca
associations affairs. The only tmpor'
tant meeting this week is that OF TIT
council of administration on THURSDAY
afternoon.
The officers, Educational and Mem
bership Committees of the American
Institute of Banking will meet Thurs
day night TO make further plans for thu
opening of the Fall semester.
Roy A. Young, former governor o
the Federal Reserve System, was to be-
gin his new duties as governor OF tn
Boston Federal Reserve Bank today. HI
will be much missed by local banker
as he had such wide acquaintanc
here.
It was announced today tina
Thomas j. Groom, cashier of the Banl
of Commerce g. Savings, who was badl
injured in an automobile accident,
showing steady improvement. An X-ra
indicated that his skull was not frac
tured and his early recovery Is now ex
Yapfed