Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-12
CASH STOCK SALES
HAVE BEEN LARGE
- Outright Purchases of Secllr-
tiles Have Passed Mark
of $500, 100000.
By EDWARD c. STONE.


estimated as in excess of 81 900 ,000, 900.
All evidence available points to the
same conclusion--that outright invest
ment buying has been going ON in all
most unprecedented volume, absorbing
speculative and forced selling.
Brokers loans declined $Te8,000000
between September ~ and November 5.
body had to sell stocks, and every seller
had to fino q buyer. The oVerwhelm-
ing majority of the stock purchased was
fully paid for in cash, the Wall Street
Journal said today. Al small part was
purchased with funds borrowed from
banks Best available figures indicate
purchases through bank borrowed funds
in this period totaled Sl25, 000,00n IN
New York City and around S15O,OOO,OUO
in 10l leading cities of the country.
Bearing out these figures are the ac-
tual reports by two leading brokerage
houses of the purchase in the past four
weeks of nearly 100000 shares OF
stock by outright purchasers who gave
instructions to have the stock trans-
ferred to their names ard delivered
Washington brokers said today that
there is considerable outright invest
ment buying in this city. Bankers note
the same situation, adding that sound
securities are making a strong appeal
among their customers who are not tied
up with investments made before the
Wall Street break.
Plan to Boost Savings Clubs.
The Advertising Committee of the
District Bankers Association. Eliot II.
& Thomson chairman, will hold lunch
con at the Raleigh tomorrow, at which
time plans for pushing next year
Christmas Savings Clubs through ex-
tensive newspaper advertising viii pc
perfected
The last two campaigns attracted
Nationwide attention and no doubt
much the same material will be en-
ployed again this year. When the clubs
were started in 1926 there were AZ $50
members in the various local banks
This years savings clubs enrolled g.
1877. although some Of the members
were unable TO keep up their subscrlp-
tons throughout the year.
The new clubs will be started in this
city on November 81, which is Satur-
day and a Government pay day. This
will furnish a host of the members
with funds for opening their accounts
About that time something like ST.
600, 900 in this years clubs will be paid
out to the members, and certain
percentage of this money always finds
its way back into the new accounts.
Selling Puzzles Local Bankers.
Local bankers today expressed con-
siderable doubt as tot the sources OF the
recent heavy selling of securities on the
New York Stock Exchange Brokers
have also been puzzled by the same
situation. Some New York dispatches
have indicated that. the selling might
be emanating from New York banks,
representing the liquidCtaen OF coll
lateral loans.
Local financiers doubt these reports.
Brokers and bankers have obtained over
the telephone and otherwise some very
direct statements from Gotham bank
oficials that such is not the case. New
York bankers declare that they are pro-
tecting their depositors to the greatest
extent possible. These statements 1ndi-
cate that bankers in New York are fol-
lowing the same course that has been
maintained by washington banks ever
since the break, the aim being to pro-
tect their customers as far as possible.
1t is known that some Of the largest.
commission houses in New York have
had too much stock on hand for some
time. issues which different firms were
especially interested in distributing As
the market dropped, large blocks of
these stocks have been sold, apparently
enough to keep the market at extreme
lows. OF course there is forced selling,
also, as margin accounts have slumped,
and other selling on account of disap-
pointing earnings. as well as much
short selling.
Price Index Hits New Low.
The wholesale price index of the Ma
tional Fertilizer Association, comprised
OF 476 EQUATIONS. declined frac-
tional points during the week ended
November 8. During the past two
weeks the general index number has
declined exactly / full point. The
index number now stands at 6l.9, COM
pared with 82.2 for the previous week
and 95.3 year ago.
OF the Il groups in the index, >
declined only one !, metals advanced
and 3 showed no change during the
latest week Included in the list of
80 commodities that declined were cot
ton, silk. wool. butter, cottonseed oil,
dried beans, potatoes, -four, apples, can
ned tomatoes, practically all grains, tin,
melting steel, turpentine, petroleum,
rubber, coffee, hides and leather.
Among the ii commodities that adj
vanced were eggs, pork, cattle, lambs,
zinc and coal.
Today's Trading on ID. c. Exchange.
On the washington stick Exchange
today there was another 1O0-share
turnover IN Capital Traction. Eight To-
share lots and one 20-share block sold
at so, u from yesterdays close. The
final quotation was so bid and 50A
asked.
Lanston Monotype was stronger to-
day, five shares selling at 1922 after
Yesterdays sale of 100 shares at 100.
Potomac Electric Power 6 per cent
preferred moved at Ill and lily
Mergenthaler sold in very small lots
at S9l2, 90 and 8934.
Potomac Electric Power s per cent
DC onfA 4nAo af I'M WNghtnQtnn
Gas SIS changed hands at 1857, while
Washington Gas AS sold at los and the
BIS at 1903. Potomac Electric Consolidat-
ed SIS came out at 1881.
The October report of the Capital
Traction Co. is due in a few days and
Is being awaited with great interest.
1t is understood in the financial district
that the statement will show a further
upturn in earnings.
Heard in Financial District.
Theodore M Richie, associate man.
ager OF the Equitable Society OF the
United States, viii be the guest speaker
at tomorrow's luncheon of the District
of Columbia Life Underwriters AsSo-
citation, of which John II. Snyder is
president. MIR. Reihle is q life inSur-
ance and annuity expert and a MEM
Der of the New York State Bar.
Red Cross representatives have been
located In the Hobbies Of all the banks
in the city and report an excellent
response to the annual campaign for
memberships. A host Of bank deposit
ors emerged from the local institutions
today with Red Gross membership but
tons on their coats.
H. L, Otfutt, vice president and CASH
fer OF the District National Bank, Is in
one OF the local hospitals where he had
his tonsils removed. He expects to be
back at the bank in a few days