Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-07

the plan which n. Parker wills.
calls for the estab- -.
Ishnent of a national credit corpora,
ton seems to me to have Gone gooo
- induced to work together and COL
laborate, instead of weakening one an
ether. It's success will depend upon the
extent of the participation and the ap-
sence of undue or hampering restrlc-
tions upon the making Of loans.
80. That part of the plan which cans
for the establishment possibly OF
SBomething like the war FINANCE wi
Fporation Is needless.
"a THAT part of the project which
rails for the discounting OF notes at
Reserve banks based upon ponoS I'm
,riuStrial or railroad, or BOTH Is hazard
IoIIs to the last degree and in violation
of every principle of liquid banking IalQ
down during the struggles OF the past
40 wears. It is not to be Thought OF.
It Is, besides, Sneedless, since the pankS
have ample eligible paper to get from
the Reserve banks all the credit the
latter can grant. All that is needed is
a nooling of this paper, and that might
be accomplished through the new creolt
corporation" concluded the former
Treasury expert.
Ouinion Resuming Normal Tone.
This weeks review of financial and
market conditions by Henry CleWs d
Co. declares that whatever may De
thought OF the slowness OF the price
advance, the fact remains that Sucn
movement as occurs seems 10 pc gen
orally in the right direction. This is
particularly true with respect to bonds,
which for the first time in weeks are
now beginning to find a more stable
market. The best opinion is to the
effect that slow, steady climb upward
Is starting in securities generally, ana
that the fear and hysteria that nave
prevailed for SO long are on the decnne
and in q fair way to disappear. In this
Improvement Of feeling the advance in
wheat has furnished no small part OF
the motive power. Many issues are now
recognized as remarkably cheap, and
the picking up of stocks around current
quotations is obviously to be recon-
Iitended to all who have any faith what
ever in the stability Of American buSi-
ness" the review concludes.
Mail Swindling Methods Exposed.
The average investor who buys worth
less stock by mail pays at least two
thirds of his money for postage and
lurid literature, says William Leavitt
Stoddard in his book. Financial Rack
eteering," published by Harper g. Bros.
In one such scheme analysed by the
writer Al letters, 80 sensational circu-
lars and 50 faxed newspapers, total
of IL pounds of mail, were sent to one
perspective customer. In this case
800 transaction, the sale of 200 shares,
meant a selling cost of $3l.24, and the
promoters pocketed $66.76 for every
block Of shares sold.
DR.. Stoddard states that racketeertng
activities, far from being totally checked
by the depression, have merely been
directed into new channels.
In obtaining data for the book he re-
ceived much valuable information from
several better business bureaus.
Booker Attending Convention.
Y. E. Booker, head Of the local in
Vestment house of Y. E. Booker 81 Co.,
has gone to White Sulphur Springs, w.
va, to attend the annual convention of
the Investment Bankers Association
which opened today. Paul v. Keyser
of this city is the associations counsel.
The association plans an unusually i'm
portant meeting. One of the leading
features of the program will be COM
plete discussion of the status Of foreign
bonds, which are so widely held in this
country. About 38 committees are to
make important reports.
Rapid Transit Income Lower.
According to the September state
ment Of the Washington Rapid Transit
Co. filed with the Public Utilities Com
mission, net income for the month
showed a deficit of $8,522.50 against
one of $4,63713 in September a year
ago, a difference of $3,S8537.
For the first nine months of 1891
net income revealed a deficit of $28,-
4l072 as compared with one of $2l,-
37625 for the like period in 1880, an
increase of $7,034.47. Company Of
ficials lay the falling of in earnings
to the cut-rate taxicab service. which
has also hit the street car lines hard.
Financial District Notes.
Secretary Mellon announces that
tenders for the SIS 100000 91-day
Treasury bills, dated November and
maturing February 8, totaled about
1901 ,633, 900, according to reports from
the Federal Reserve Banks. The low
est bid accepted was 99.458, equivalent
to an interest rate of about 2.14 per
cent on an annual basis. The total
amount of bids accepted was $75, 49,
600. The average price Of Treasury
bills to be issued is 99.492. Ihe average
rate on a bank discount basis is about
per cent.