Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-15
OF STOCK
PURCHASING NOTED
Corporation Transfer Offices
Are Busy Listing Names
of New Investors.
BY CHARLES r. sPEARE.


Special Dispatch to The Star.
NEW YORK, November is.--The
shrinkage of $4,000. 900 IN brokers'
loans during the period Of recent heavy
stock market liquidation proves the
fact that securities have steadily been
passing from weak TO strong hands.
The loan-contractioh figure about
duplicates the estimate recently made
of the dollar amount Of investment
buying that has taken place during
the decline in prices.
The eagerness Of the public 10 buy
stocks is reflected In the activity In
the transfer ofices Of all Of the large
corporations, where long lines of mes
transfer windows as they did q year
ago when O similar buying wave was
in progress. Delays In deliveries have
been increasing recently, but they are
prompt relative to the time required
In 1929 between the execution Of g
buying order and the delivery Of the
purchased stock to its owner.
Reduction I'm Loans.
Brokers loans are now on more than
IS per cent from the level Of q year
ago, and are down 81 per cent from
the high point reached on October
last year Then these loans aggfe-
gated $6,eO4, 100000 Today they were
reported as low rs $2.235. 100000. The
steady reduction in the loans for the
account Of Others" Is one Of the signin-
cant trends in the loan movement. II
Is understood that only nominal
books Of the banks for foreign account
and that practically all individual loans
Of this character have been retired.
President T. B. Macauley Of the sun
Life Assurance Co. Of Canada replied
In the Wall Street Journal to the COM
ments on the argument which he made
q month ago for the purchase BY the
Federal Reserve Of $500, 000, 600 OF United
states Government bonds IN order 70
| further ease the money situation, sta
biiize commodity prices and bring about
business revival. Since his original
article appeared there has been ire
mendous depreciation In the value Of
securities, but also the beginning OF o
corrective movement In commodities re-
fiected conspicuously in the advance IN
copper metal and indications Of stahiIi-
cation In other commodities.
Mr.. Macauley believes that lower In
terest rates than now are quoted, ex-
cept those available for call or short
are necessary In order to straighten out
the situation. He cites the fact that
the recent offer of SIS, 000,O Of 4 per
cent tax-free bonds by the City Of New
York brought only one bidder, and that
the city had 10 reduce its issue 70 $50
O0O. 600. Els not this absolute proof
he says, shat there is not an abundance
Of available capital for such invest
ments?
shrinkage in Credit.
One Of the striking statements in the
/, Macauley article Is to the effect that,
according to estimates, there has been
a shiinkage IN the total credit structure
of the country in the past year Of more
than 5000 900 900. The effect Of this,
according TO Mr.. Macauley, Is that the
purchasing price Of the dollar has been
greatly reduced and consequently all
agencies for the manufacture and dis
tribution Of goods have been seriously
affected.
'It has been argued by some critics =
said Mr.. Macauley, that the stock
market has not yet eliminated all Of
| the weak spots which the boom pro-
duced and the claim is made that, IS
further Stock Exchange liquidation Is
perhaps necessary, the reaction must
be allowed to run its course without
interference. Can this mean that there
is any advantage to anybody in pro-
longing the present unemployment and
hardship? / suspect that these friends
for the moment confuse stock price
levels with the commodity price level.
The distinction between the two must
always be borne in mind. A re-
action in stocks prices was necessary
and inevitable. But Is that any reason
why we should not attempt to restore
commodity prices, the drop In which
has brought so much unemployment"
(Cobyright, 1897