Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-01

past IL years, Mr..
Meyer asserted
Now that the E
excessive specula- Eugene Mover
ton is over, money
is returning to more normal rates and
in the minds of investors there has
been a return to more normal thinking
Investors may now be approached by
bond houses with arguments and facts
bearing on the safety of the principal
and the rate of return without fear of
being smothered by arguments in favor
of equity ownership or margin specula-
ton. have thought that some of the
bond distributing organizations during
the year 1929 failed to a certain extent
in their duty to their clients and to
their business by failing to maintain, in
spite of adverse conditions, a harder
fight on behalf of bond investments.
Some houses abandoned the bond
business in favor of stocks; others
ceased to work in the face of the diff
f1culties that confronted them. But
now all this is over, and many enter
prises of legitimate character are in
need of capital. Mortgage bonds
among them farm loan bonds, indus
trial and railroad bonds, and many
other classes of issues-may now be
presented with a fair chance to get a
favorable hearing.
AT present the optimistic hope, which
I believe to. be justified has its foun-
dalton in the revival of a sound. broad
investment market in which an ade-
quate supply of capital will be avail
able for good bonds and mortgage
loans In the past, under similar con-
ditions, a general revival in industry
commerce and agriculture has always
followed. There Is no reason to ex-
pect the outcome to be different in the
present situation.
st think the key to success in the
bond business at this time lies in a
thorough knowledge of the economic
situation which makes bond invest
ments logical and advantageous, and a
thorough knowledge of the particular
security which is being offered. The
propagandists against bonds as in
vestmentS are certainly somewhat, if
not very greatly, discredited. This
gives an advantage to the bond dis
tributor, which properly can be used
from the point of view of his business
and also of business in general and the
public interest.
Easier money markets at home and
abroad, signalized by lower bank rates,
indicate that the moment is favorable
to bond investments, as yields are still
attractive, having due regard to safety
Of principal.
need to conduct a campaign against
stocks as investments, but I do be-
lieve they have an opportunity to point
out the wisdom for most people OF keep
ing at least a part of their funds in
the form Of bonds or mortgages as a
part of sound program of diverstf1-
cation in investment.
History proves that the best time
for bond investors to buy Is during a
period or Immediately following a
period of tight money. The present
time is such a period. The bond dis
tributing organizations have an i'm
portant function to fill. Their success
depends upon their response in meet
ing the legitimate economic needs of
both the borrowers and the leaders of
capital through the purchase and sale
of bonds.
"In the past the most successful firms
have proven to be those who best I'M
derstood their business, who we're care
full in buying from issuing corporations,
both public and private, and who we're
thorough in their study Of securities, of
values, and fundamental economics.
The best bond salesman is not the
glibbest talker, but the man who knows
most about the value of his wares, and
who uses his knowledge for the benefit
OF the buyers interests. I believe that
conditions at this time justify investors
in buying bonds which combine safety
OF principal and fair yield.
Dividend Checks in Mail.
The Security Finance Corporation of
this city has mailed checks to its stock
holders covering the ninth consecutive
eemi-annual dividend on its preferred
stock at the rate Of per cent per
annum.
This corporation was organized about
four and one-half years ago for the
purpose of financing permanent home
improvements, alterations and repairs.
The officers and directors are: Claude
w. Owen, president; Merritt o. Chance
and James B. Evans. vice presidents;
William Conradis, secretary; Maj. Gen.
John L. Chamberlain, treasurer; A. H.
Brewood, Edwin E. Elicit, William G.
Hanson, Edgar Morris, Frederick w.
Quinter and Harry M. Keyser.
Notes in Financial District.
Flowers and Fluctuations greeted
Thomas j. Groom when he assumed his
duties today as vice president and
cashier Of the Bank of Commerce &
Savings at Seventh and streets north
west. He Is one of the city's younger
bankers and made an excellent record
with the Washington Mechanics Saw
ings Bank, with which he has been
connected LOT SeVeraI years. Mr. Groom
succeeds Frank Owings, who is retiring
from active banking to give all his time
to his personal business affairs.
John J. Mclean, manager of the local
office of Fenner g. Beane, is passing
the week end in New York on business.
Thomas p. Brown, director of the
Liberty National Bank, returns today
from a two weeks visit in Havana,
Cuba.
Broker Office Greatly Enlarged.
westheimer g. Co. are making extern
sive improvements in their Offices in
the Woodward Building under the di-
rection of Harmer Reside, resident
manager. The board room will be re-
located. occupying the entire rear of
the new addition to the building. Space
occupied by the board room at present
will be rearranged to accommodate a
number of private Offices and an at
tractive ladies' room.