Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-22
Washington Gas and Peoples
Drug Store Stocks Strong
in Saturday Trading.
STEADY BUSINESS GAINS
SEEN DURING REST OF 1881
Economist Predicts Normal Times
Early Next Year-Comment
in Financial District.
BY EDWARD C. STONE.

ton Stock Exchange attracted attention
by the fact that two local issues
established new high marks for the
present year. One was Washington
Gas Light Co. stock and the Other
Peoples Drug Stores preferred.
Two small sales in Washington Gas
were recorded at 127, against previou:
high for the year of 125 and a low OF
1872. The last previous sale was at
las. This stock has recently been In
the limelight owing to the announce
nent that "a per cent of the outstand-
ing issue is to be put up for collateral
back of the $6,500,000 bond issue being
offered by washington &c Suburban
Co.'S, the concern that has recently
taken the place of the Seaboard In
vestment Trust which held a majority
of the stock after control of the gas
company left Washington hands.
Preferred Stock Strong.
1t took only one small sale in Peoples
Drug Stores preferred yesterday t.
push the stock up 70 1929. The last
sale in this stock was at 1904, the pre-
viouS high for the year. The stock has
fiuctuated very little during 1881, the
low mark being SO. While the recent
annual report showed a drop in net
earnings, the company did an excellent
business and expanded steadily by the
addition of several new stores.
Washington Railway g. Electric pre-
ferred lea the market in volume OF
trading. the largest sale being a block
of so shares. AS usual, on Saturday,
the unlisted securities we're called of
few changes being made in quotations.
The asked price on MunSey Trust Co.
stock was advanced from l56 to $50.
quotations we're lowered slightly on
National Press Building bonds to SO
bid and "a asked, while the bid on
Metropolitan Club bonds was raised
Washington Gas IS "A'-$l00 at
1919.
Washington Gas Lisht-lo at l27,
washington Railway & Electric pre-
ferred-l0 at sSs4, 10 at 9s34, 20 at
9s94.
Mereenthaler Linotype-lo at s63t.
Peoples Drug Stores preferred-l0
ct 1921.
washington Gas IS Al 900 at
1O2.
washington Railway a. Electric pre-
1erred-50 at 9834.
Washington Gas SSH 900 at 1854.
Washington Gas IS "B"-S200 at 104.
Normal Business Seen by 1882.
According to DR.. Warren M. IIlrsons,
formerly professor Of economics at Har-
ward University, and now a consulting
economist in New York, business viii
recover this Spring and, barring un-
practicable events, the recovery viii
continue for year or more without i'm
portant interruption.
DR.. Persons has outlinsd his views in
. new book, just published by John
Wiley g. Sons, Of New York, called
''Forecasting Business Cycles" His ex-
pectation Of an upward trend of busi-
ness in 1881 is based upon careful
study Of the six major business de-
preSsions which have occurred in this
country during the last SIS years.
The deep depression which has grip
ped this country during the past year
is not a novel experience, the author
states, but rather repeats TO a large
degree, the experiences of 18S4-85,
I907-08 and 192O-2l. These depressions,
being nearly parallel to the present one,
give DR.. Persons the basis for the fol-
lowing conclusions:
The beginning of recovery will be
probably in February-April, 1881; re-
coveRy thereafter without important in
teruGption until normal business is
reached. not later than the middle of
1882 and probably earlier in that year. "
Recovery May Be Spectacular.
Naturally these arr not iron-clad
prophesies, but rather statements of
business during the rest Of 1881 will be
effected by all the variations and up
sets which occur Whenever the weather
and human element entsr. The predic-
tons which the author makes, are based
upon the assumption that there will be
no pronounced credit restrictions, no
wide spread strike to retard recovery,
and that there viii be roughly normal
crops and normal meteoric conditions.
Or. Persons has listed the following
external events which have delayed re-
soyery in the present cycle: The drought
in July August, the Hitler agitation and
war talk in September October, and
the collapse of security prices, bank
failures and loss Of confidence in No
vember- December In previous depres-
sions, 20 per cent to IS per cent under
estimated normal for the time was the
bed rock below which business did not
60. The index for Dec mber. 1880. was
below 10, the lowest relative point
since 1875.
Recovery may be v shaped, how.
ever. and as spectacular as was the
decline of 1880. This will depend or
favorable credit developments, inaugu-
ration Of a real bond market, and the
action taken the leading central banks
particularly by the Bank Of France anc
the Federal Reserve Bank. Elements
which may retard the present business
recovery are the international debt sit
uation which may discourage inter
national lending and borrowing, anc
governmental attempts to control prices
and production, the author concludes.
Comment in Banking District.
Claude H. Woodward, president o.
the Mount Vernon Savings Bank anC
chairman Of the Program COMMITTEES
for the coming convention of the Dis
trict Bankers Association, held the frs
committee meeting Friday The mem.
bers have some excellent ideas for al
unusually fine program for the Ho
Springs sessions.
The proceedings at the recent Cen
trail State Bank Management Confer
ence held in this city have just beer
printed by the American Bankers AS
ISOLATION. AS Chairman Robert v
Fleming said at the conference, 9TH
addresses will take high rank in tn
banking literature Of today"
The Southern Bank Management
Conference Is to take place at Atlant
on March IS and 26. Robert v. Mad
dox. former president Of the America
bankers Association, win preside an
A.shr speakers include Harry J. Haal
IF