Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-21
GROWING INTEREST
IN BONDS IS NOTED
Local FinanClerS Report
Good Demand for Leading
/ Senior Securities.
BY EDWARD C. STONE.

BY EDWARD c. STONE
Bankers and investment bond house
officials in washington report strong
demand for high class bonds. Not only
here but in New York and all over the
country the demand for first class bonds
is said to have been growing rapidly
in the past few days, in fact, ever since
the first Of the year.
The huge issues of New York Central,
Pennsylvania Railroad, New York Port
bonds and others recently put out were
all sold in a few hours. or at last by
the second day after the issues were
announced and placed on the market.
Allotments of the bonds to local invest
ment houses were promptly sold. More
of some of these bonds were requested
but New York reported none to be had
1t is the opinion in the local hnanclaI
district that a great deal of money mas
been held back awaiting investment
when conditions should improve IL
seems to be the belief Of cautious IN
Vestors that the business depression
has reached bottom and business
definitely turned the corner. although
no rapid advances are expected But
the funds awaiting re-investment are
now being brought out in liberal
amounts and placed in bonds.
Whsn new bond issues are oHereo IN
New York various outside financial
houses are expected to take certain
amounts even If they do not sell them
at once. In the case of these recent
issues, however, f1nanciers insist that
the bonds have been fully digested,"
that is. actually sold to investors and
not laid on the shelves for future sale.
It is reported in New York that the
success of recent sales means that a
large number of other new bond issues
will appear soon, although probably not
enough TO swamp the bond market, as
was the case before the stock market
break.
Firms Pay Enormous Taxes.
CORPORATIONS in which Washington
investors hold large interests are among
the IA largest taxpayers in New York
City. The interesting list follows:
New York Central, S9,092,6l7; New
York Edison Co, United Electric Light
co. and Brooklyn Edison Co, S8,499,-
IT'S; New York Telephone Co., S6,204,-
e47; Consolidated Gas Co., New Amster-
dam Gas Co. and Standard Gas Co.,
B. M. r, s2,1ss,47 I. r. T., s1,71o.-
S22; Pennsylvania Terminal Real Estate
Co, S1,645,134: Brooklyn Union Gas
Co, Sl,47O.550; Tishman Construction
Co, s1,254,755; Manhattan Railway,
sl.O3s,216.
BUSH Terminal 20, 81 ,uoU,ooo, FTSnCIl
Investment Co., $1,0l8,661; Goelet Es-
tate, 1898 1854 Manhattan only, and
Vincent Aston and Aston Estate, $685.
SOC Manhattan only.
Local Banks Vote Dividends.
The directors of Continental Trust Co.
have declared a dividend of IL per
cent, payable March 81, to shareholders
Of record at close of business March 25.
Directors of the Federal-American
National Bank 81 Trust Co. have de-
clared the regular quarterly dividend
of so cents a share on the $50 par
value stock, payable April /. to stock
holders of record March 81. This is
equivalent to the former dividend of
$3.50 on the 500 per value stock of
the Federal-American National Bank,
and 81 per share on the 500 par value
stock of the former Merchants Bank q
Trust Co.
A resolution urging the suspension
of postal savings repositories in COM
munities served by banks has been
adopted by the Executive Committee of
the State bank division, American
Bankers Association. The resolution
recalls the original purpose of the
Federal Government in establishing the
postal savings system and expresses the
belief that all major considerations
leu u bIlC AOl AldJtOAl Va tllC
tenn have been substantially removed by
changes In the Nations immigration
policy.
Bankers 10 Get Certificates.
Certificates covering their work dur
ing the first semester of the l930-3l
school wear will be presented TO stu
dents of Washington Chapter, Ameri-
can Institute Of Banking at the Spring
meeting at the Wardman Park Hotel
Theater on Thursday night, March 20.
President Frank M. Perley of the
chapter will present certificates 70
those who have qualified by attend
ance at classes and passing final ex-
aminations in the several flrst-term
courses. Standard and pre-standard
certificates will be given TO go and
credit cards to 40 students.
InstaIIment Selling Defended.
In the current American Bankers
Association journal, Milan V. Ayres
tells how installment selling survived
its first great test, the depression Of
1880. He says that so far as the
finance companies we're concerned the
year was one of reduced business, not
stress or strain. BY a liberal use OF
curves, statistics and percentages, he
aims to prove that the iTlStallment idea
is panicproof and that sudden SLOW
ing down OF the business machinery OF
the country does not result in excessive
volume Of defaults or repossessions.
Among the conclusions set forth in this
comprehensive analysis is that there
Is no evidence that installment selling
is an important factor either in bring
ing on a depression or in bringing a
depression to an end"
Many bankers in Washington how
ever, differ with the conclusions
reached. Many local financiers believe
that too much installment selling, or
perhaps installment buying, was one OF
the leading factors in bringing about
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