Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-16
BANK INVESTMENTS
SHOW LARGE GA|NS|
Recent Advances in Bond
Market Have Strength
ened Many Portfolios.

Local banks and insurance companies,
especially savings banks, are benehtlng
substantially from the gains registered
recently in the bond market. The
matter has been a subject for consid-
cradle discussion in financial circles.
Statistics show that the average in
crease in bonds has been about Sl5
in the past few months, especially since
support was given the market through
the bond pool in June. The more re-
cent strength shown in the stock mar
ket also has reflected favorably on
bonds it is pointed out, and this has
had a beneficial result on the bond in
vestments of banks and insurance COM
panies.
One local banker. in discussing the
situation today, said that during the
past month the appreciation in bonds
mad cleared up one-third of the de-
probation of his banks holdings, with
every indication that the situation will
continue to improve. With continued
confidence, he said, the bond market
should show steady demand for
further investment
From another local source came the
comment that the increase in railroad
bonds had been especially helpful to
the banks and insurance companies, as
this type of investment has been large
ly held.
Public More Confident.
Another local banker suggested that
a factor of large influence in the gen.
eral upswing for both bonds and stocks
is the changed point of view of the
public, due to the cumulative effect OF
reconstruction measures for lighting
the depression. With Congress having
finished the job temporarily at least,
he said, there are no prospects fer a
change III legislation affecting business
for a time at least, and the various
means evolved for fighting the depres-
sion are now beginning to have telling
effect.
Col. Leonard p. Ayres, the nationally
known vice president of the Cleveland
Trust Co. voices sentiments even more
optimistic along this line. There
has been a sweeping change in the pre-
vailing attitude of mind of the people OF
this country in recent weeks" he said.
TT amounts to something like a reversal
in business sentiment Gloom and doubt
and apprehension have been displaced
by hope and feelings akin to confidence.
These alterations in mental attitude
have accompanied changes in the prices
of goods and securities. The wholesale
quotations of commodities, and especially
those of farm and food products, have
been advancing
Treasury Issue Oversubscribed.
Another offering of Treasury securities
has been largely oversubscribed, 1t was
announced by Acting Secretary OF the
Treasury Ballantine. In response to
the offering ofsabout 100000 OF 81
day Treasury bills dated August IT, the
total amount applied for was $685.
747,000. The highest bid made was
interest
about 0.47 per cent on an annual basis. |
The lowest bid accepted was 99.869, |
equivalent to an interest rate of about |
O52 per cent on an annual basis. The |
total amount of bids accepted was |
S75,O16,000 The average price of Treas |
ury bills to be issued is 99.878 and the |
average rate on a bank discount basis |
is about 0.48 per cent.
ID. c. Exchange
The local stock exchange was only
moderately active today, with trading
centering mostly on local utility bonds.
Washington Gas SIS changed hands at
10l. with the 6S of the same COM
pany going at 102. Anacostia & Po-
tomac Railroad SIS sold at 80. Stock
trading was confined to two shares OF
Washington Railway & Electric pre-
ferred at &c.
Wholesale prices showed the largest
gain of the year during the past week,
according to the price index OF the Ma
tional Fertilizer Association. The in
dex number advanced from 61.3 to 62.3.
During the preceding week the index
declined slightly The latest index
number is almost 8 full points higher
than the record low of 500 reached on
June II, 1882 A month ago the index
number stood 6l.4, and year ago 1t
was 677 The index number 100 is
based on the average for the three
years 1926-l928.
Firms in Liquid Condition.
Leading corporations of basic Ameri-
can industries have adjusted their imam
cial positions so that they Are in much
more liquid condition and strategic
position to meet recovery than in 1921,
according to the Administrative and
Research Corporation OF New YORK
which has Just completed a COMPARE
son of the condition of 80 companies
on December 81. 1921, and at the be-
ginning of this year.
Financial District Notes.
John NJ. Riordan, executive vice
president of the Bank OF Commerce
& Savings. is on vacation OF tnree
weeks at MarthaS Vineyard, Mass.
John Poole, president Oh lie reuel al
American National Bank & Trust Co,
is on vacation at Atlantic City. L. E.
Meany. in charge of real estate for the
Federal American, is taking his va
cation
Joseph R. Fitzpatrick, vice president
of Second National Bank, is on va
cation.
Harry G. Meem, president of Wash
ington Loan g. Trust Co. is spending
his vacation at Atlantic City. Charles
r. Grant, vice president and treasurer
OF the company, has returned from
vacation at Atlantic City.