Evening star., 1932-04-06
EFFECTS OF TRADE
o. STIMULUS NOTED
Bankers Journal Comments
50
ION Recent Work of Pub
lie Agencies.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
In summing up the business situa-
ton, the American Bankers AsSocia-
ton Journal, out today, states that
clear signals were visible during March
that important results were following
from the co-ordinated plans OF public
agencies and private finance to bring
about basic improvement in the condi-
ton of business AS for some time
past, immediate Stimulations in cur
rent commercial and industrial actlvl-
ty were lacking and favorable trends
in standard trade indexes were not ap-
parent The growth in financial con-
ffdence and the decrease in public fear,
however, we're too definite to be based
ON anything but solid facts and carried
greater weight than formal statistics.
A concrete expression OF return OF
financial confidence was given IN the
course of events in the bond market.
Here for the period of the % business
DAYS between February 10 and March
IL there was an unbroken daily ad-
vance. with one minor exception, in
the average price for 40 representative
issues This was followed by an inter-
val of some irregularity and slight re-
action in prices. but apparently. as late
as March II. this did not reflect a
this period of rising prices, the volume
of trading was materially greater than
in the period of reaction that pre-
ceded it.
-" Investors Active.
A third significant feature was that,
whereas during the previous weeks the
initiative for market activity had come
from sales by eager or forced sellers, in
recent weeks it has come from discriml-
mating purchasers convinced that the
time for investment opportunity was at
hand. These developments in the bond !
market, therefore, represented more |
than merely technical record OF deal |
ings in this particular field. In the |
special nature of current conditions, |
they evidenced a relaxation in the pres
sure of financial distress and fear, and |
turn in the direction Of safety and |
confidence.
Looking beyond this technical record |
into the Nations actual working scenes, |
the most important aspect Of business !
betterment revealed was the widespread |
return of the banks to more normal |
operating conditions. The cooperative |
arrangements developed for the orderly |
marketing of the securities CT closed |
banks, the functioning of the Recon- |
struction Finance Corporation in re- |
lieving by means of loans both closed |
and operating banks from the necessity |
of forcing securities on the market, and |
the enabling of the Federal Reserve |
banks to extend broader rediScount CO. |
operation to member banks as a result |
of the Glass -Steagall BILL were clearly |
having the desired effects.
Two-Fold Effects Evident
These effects were two-fold On the |
one hand, by assuring banks of facili- |
ties for supplementary credit if needed, |
they hghtened the pressure on them |
of maintaining an abnormally liquid |
position by the curtailment Of loans to |
customers or by sacrifice sales of Sc |
curitieS-and this latter was a ma !
terial factor in the stability noted In |
the depositing public was assured that |
effective means had been found for |
protecting the banks against the here |
tofore uncomfortable influences that |
were in some cases paralyzing- their |
ability to function normally, and the
resulting subsidence in public fear was
manifested by a sharp drop in with
drawals of deposits and bank runs. |
Concrete evidence of the various bet |
terments in the banking situation were |
seen in the great reduction in bank |
GQSpCIlSAOtlS dl4d Al bllC 4CbAAAA "a PoD
lie confidence by subsistence in hoard |
ing, the josrnal adds.
Corcoran Insurance Officers.
Reelection of all officers and directors |
of Corcoran Fire Insurance Co. was I
announced yesterday following the an
nual meeting. They are: Frank McClel-
land, president; Robert D. Weaver, /
vice president; F. H. Ridgeway. Secre-
tary: j. Clarence WEIGH. assistant sec
Albert T. Coumbe Watson T.
Marsh William L. Miller, Walter s.
Pratt, jr. F. H. Ridgevay, Robert D. |
Weaver, Frank McClelland, directors.
New York City bank stock market |
again reacted in sympathy with the |
securities markets in general last week. |
The aggregate market value of the 16 |
leading issues was Sl,578. .525,000 as Of |
April 2, against 81 66l ,033 900 on March |
26, decline of per cent for the week. |
Capital Traction Active Today.
Capital Traction stock figured in IL |
transactions on the Washington Stock |
Exchange today, involving turnover
of l48 shares. The stock opened at
a812, also sold at 1872 1885 and closed
at 18 fat.
Potomac Electric 51a per cent pre-
ferred came out at los and 25 shares
of Mergenthaler Linotype sold at 1914
The most important bond trading
was In Washington Railway g. Electric
IS, three $1,000 sales being made at
Sl12.
Heard in Financial District.
Richard Whitney president of the
New York Stock Exchange, will be an
early witness when the Senate Finance
Committee takes up the proposed tax
of one-fourth of / per cent on stock
transfers. Mr. Whitney is strongly OPP
posed to the tax.
The Great Atlantic & Pacific Tea Co.
earned $3.50 a share on the common
stock for the year ended February 81,
compared with Sl3.86 share in 1880.
officials consider this a remarkable
showing considering business conditions
during 1881.
Peoples Drug Stores preferred sold in
small lot on the New York Stock Ex-
change yesterday at 90I2. The market
closed with 80 bid and "a asked.
Books have been closed on the offer
ing of S25 200 600 Az per cent collateral
debentures of the Federal intermediate
Credit Bank which were offered Mon
day All the bonds were sold publicly.
S. S. Kresge Co. reported March sales
of per cent from March 1881 and a
decrease so far this year Of rs per cent.
The company is now operating CTS
american stores and 80 in Canada.