Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-02
POOR PSYCHOLOGY
LAID TO BROKERS
Technique of Wall Street
Blamed for Keeping Public
Out of Market.
BY JOHN F. SINCLAIR.

through the whole list The distress
came In the last 40 minutes. with stocks
dropping anywhere from ! to Is points
In that short time.
wonder how Wall Street operators
EXPECT the public to buy stocks wnen
the averages are forced up or points
IN one day, only to drop 5 or points
w Wall Street has much to learn In the
terhniolle of psychology. For IL mas
shown little conception OF II IN the IaSV
six months. rr.t,
The public is not in the stock n1arket!
That much is certain: NOT WIZ Stie i,ntiI
.s,,itv and common sense come more
Among a certain group, stock accu-
...,,iations m a rather wide scale, are
taking place. But that more PAD news
ts exnected, can easily be read py any
one who studies the market sltuaUloll
for q moment. ,L S..+a.i
r,,t the stock market figures on wan
street and largely influences the ouSi-
ness outlook of the country. Prooaoy
aitooether too much. That's the un-
fortunate part OF 1t.
George w. Davidson. president OF tne
Central Hanover Bank q TruSt 20 VI
New York. which is now adding large
edition to its main banking premises
on lower Broadway to take care Oh iCS
Sast-orovinQ business Is maintaining
st-cnC 1,osition of leadership IN the
present depression. a. r>.+
THE Central Hanover Bank q 1IueV
Co. has q capital Of $21 600, OOO, sunpiuss
~ 16n 200 600 and undivided prontS OF
S2s,208,000. This gives 1t total capiVai
funds of $109 100000.
Ts This New York bank about to DE-
clare a stock dividend-say OF sewn
Matchmaking the capital SIS. OoO'OoOE
This New York bank in 1900 poor
earning year-made $lo,51l ,OOO, or
5000 q share-paying 81 IN dlVloenoss:.
The first three months OF this year II
earned $2.39 a share. a.
with two branches about 10 open, ~
will coon have total Of is branches IN
New York City. The stock Is $40 par
stock and Is selling around 1925 snare
EFT don't believe that commercial
banks should carry savings accounts
said this New York banker to me re-
Gently "They are two different KINDS
IF blisinesses require entirely dlnerent
Kinds of investment, and should be nam
Tiled nv separate kinds of banks. inns
a. one banking reform urgently neeoeo.
Mr.. Davidson, after graduating from
WESLEYAN University CONNECTICUT. WIN
Phi Beta Kappa honors, took ms law
course at New York University from
T9,,rinv that time he was assistant dis
frict attorney and later district attorney
Of Queens County. Thirty-one years
ago he was also a member and score.
tarv Of the committee which was formed
to revise the charter Of the City OF New
York. -,.. =.
the Central Trust Co. OF New YORK ana
has been growing hgure IN Amerlca1
president when the Central Trust Co;
merged with the Hanover National
Jsank on MAY IS, 1929, to be called the
Central Hanover Bank & Trust Co.
The vaults Of the Federal Reserve are
bulging with gold-$3, 174, 709, 900 OF it
the largest amount in the history OF
the United States. 1t presents VIVID
picture Of the abnormal concentration
81 gold in this country and the drain
ing Of foreign treasures.
II "a evident, from the large ship
ments received during April, tnaC tne
action of the Federal Reserve In lower
ing the bill rate has been ineffective IN
danning the inflow Of yellow metal
S4e8 600 was received from Japan, ST.
600 600 from Argentina and $3,492 900
from France. On the last day OF April
a steamer arrived with SIS $500, 900 more
from France. This is the particular
shipment which the Feoefal NeSehNe
tried to thwart!
This unnatural accumulation OF gold
has turned the balance Of world trade
into a see-saw that won't see-SaW! In
other words, all the gold Is at enc enc,
leaving the rest Of the world percneo
up in the air unable to get down ana
60 to work The world Is seeing DOM
q gold feast and gold famine az tne
same time.
The United States, on the other hand
might be compared to the old example
of a man on a desert island, his pock-
ets bullying with useless gold. The pres
emit fscal policies Of the world-par-
ticularly the United States and France
are rapidly turning the international
market place into barren trading
square And still the do-nothing policy
continues.
Canada is close to becoming the sec
ond largest producer Of gold In the
world. It Is already third in the mining
Of silver and fourth in platinum
This great development in the wrest-
ing Of precious metals from deep hiding
places In the earth has brought into
DGlI1K a IlOuI loAAA4S bAolAACCS 10 AAAIOOl
tewelry making. The silverware and
silver jewelry production Of Canada
last year is estimated at about $4,000
o00
The Canadian sweet tooth Is sweeter
than that Of the United States, too.
The average Canadian, according TO re-
recent statistics, reaches for sweet just
q little more often, consuming 1874
pounds Of candy annually, as compared
.nF4R
1898 pounds.
But they have a theory all ready for
this difference-it's this. Canadians
live farther north and need more heat
ing foods. Sugar is one of these foods
and so they eat more candy. or, may
be the vigorous Canadians just like
candy little better than Americans.
Is Texas about TO tax cigarettes?
Faced with the necessity Of finding
additional monies for support Of public
schools, the Texas Legislature, upon
the suggestion Of Gov. Sterling, avoided
increase taxation on local industries
by passing a Scent cigarette tax.
This measure has Just been passed
In the present session. after a hard
fight. 1t Is expected TO yield anywhere
from $4,000. 900 to sIl. 900 600 Halt of
this amount goes into the general fund
and the balance to school appropria-
lions.
Whether this is sound financial policy
time will show However, It must be
admitted that cents Is an unusually
high levy on a single commodity which
retails, relatively speaking, at so Low
q price.
(copyright, 1881, By North American News.
paper Alliance)
REICHsBANK STATEMENT.
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