Evening star., 1932-11-02

Irving Trust. 12i,+ 23@s
Manhattan ........ 3Jt2 o.
Manufacturers Trust 2514 2812
New York Trust. 80 "
Public National. .... 25A oo
Weighted average. $3.50 57.o1
Sharp Drop in Failures Noted.
Local bankers commented enthusi-
astically today over the sharp drop IN
failures in the week ending Octoper
27. The total, as compiled by Brad
streets Weekly, was only 462, as COM
nared with sci defaults in the previous
week. This drop, coming at time
when a seasonal rise of 7.3 per cent Is
usual brought the adjusted index down
precipitously to 1926 per cent OF the
1928-3O average, from figure OF 1868
the week before. This is also suoStan-
tally below the level OF 1888 where II
stood at this time last year.
The Improvement, however, was en-
tirelv confined to smaller companies,
those having capitalization OF over
$4,000 showing a small upward tend
ency. The adjusted index for this group
moved up from 1900 PEI cent OF the
1926-30 average to 1926. but Is sun
so far below last years figure OF 3l5.o
as to give little concern.
A reduction in the number OF retail
failures was the outstanding occur
renee among the different trade groups
the number of defaults being 63 fewer
at 3O3. Manufacturing showed only
slicht Improvement, while wholesalers
lust held their own with the previous
week. Both the commercial service and
the banking and financial groups rose
Slightly.
Knappen Lauds Life Insurance.
Theodore NJ. Knappen Of Washington
presents a most interesting resume OF
The life insurance situation, in the lat
est Magazine of Wall Street. He
touches the big problems the companies
have had to meet during the economic
hurricane of the past three years. The
officials have had to use the greatest
care, conservatism and patience to meet
the ever new demands and conditions.
After all these difficulties, here is what
Mr. Knappen says they have accom-
plished: ooo
IN the three years of 1929, 1880
and 1881 the life insurance companies
paid out in loans to pollcy-holderS,
including premium notes, the great sum
of 81 $40, ,000.0 900. At a time when banks
were failing by the thousands and
ClIlGT SOuIC6S VI 1IlSoAAo W AAAS~N N@-
abnormal requirements for personal
credit were enormously curtailed, If not
entirely stopped the insurance COM
panies promptly met all demands for
emergency relief without the slightest
hesitation. The records of the COM
panies show that a large proportion
of these loans went to support and
salvage investments which would other
wise have been lost pending business
recovery. An enormous amount OF what
is ordinarily bank credit was taken over
by the insurance companies, frequently
at the direct suggestion OF banks to
patrons.
AS result, it is predicted by insur-
ance authorities, that life insurance will
come into new popularity as an lnSur-
ance Of investments as well as an in
surance Of life. Moreover, the eco
nomic value of the normal death pay
ments of more than S2,500,000,000 dur
ing the same three-year period is in
calcuable."
Branch for BrightwOod Assured.
It was stated in the financial district
today that two or three local banks are
quietly carrying forward their investi-
cations into the deSirability of taking
over the Bank of BrightWood and op-
Grating it as q branch office. 1t was
further said today that it is now certain
that the Brightwood section of Wash
ington will not be without banking
facilities.
No action can be taken toward alb
sorption of the Bank of BrlghJWood
by any downtown institution until the
receivership proceedings have been prac-
ward, former president of the Mount
Vernon Savings Bank, is the receiver
and he has been working for many
weeks in efforts to clear up the bank S
tangled affairs Some weeks ago de-
positorS were given instructions to make
all claims against the bank within 90
DAYS. These claims are now being pre-
sented to the receiver.
The BrightWood section is fast
growing neighbOrhood. 1t is consld-
cred a good location for branch bank,
as Brightwood will continue to grow in
a business and residential way. The
building in which the bank is located
is considered ample for present banking
needs That some definite announce
ment regarding the future of Bright
woods banking prospects will be forth
coming before the turn of this year. Is
believed probable.
Trading on ID. c. Exchange.
Washington Gas Light bondS got tne
lions share of attention in the trading
on the Washington Stock Exchange to-
day. The market opened with 81 600
Washington Gas SIS selling at lO1. the
bid was raised and $4,000 moved at
1O11s. After $500 sold at 1914, two
$1,000 sales were recorded back at
1O11s. Washington Gas IS, series B,
then appeared. S10O selling at 102. The
days bond trading closed with $1,000
Anacostia & Potomac R. R. Guarn-
teed SIS changing hands at 90.
The Treasury is inviting tenders fol
$75 100000 of Treasury bills to run fol
81 days from November 9. The bids
will close Friday, November f. The
issue will be used to pay off maturing
issue of like amount.
Robert P. Lamont. president Of Amer
ican Iron and Steel Institute, says
American railroads will be obliged tt
place orders for $2,000,0 100000 worth O.
steel as soon as they recover sufficient
earning power to justify the ex
penditure.
Standard Oil Co. New Jersey de.
clared the usual extra dividend of 2.
cents and the regular quarterly DIVIDEND
of 25 cents, both payable December l!
to stock of record November is.
The Railroad Credit Corporation OF
November l had either actually mad'
or authorized loans to railroads to NEE
their fixed interest obligations totalinl
S35,500,719 according to the MONTH!
reptN of that corporation filed toda.