Evening star., 1932-01-06
BANKERS APPROVE
AYRES' FORECAST
Nofed Economists PrediC'
tions for 1882 Win
Praise in D. c.
BY EDWARD c. STONE.

Local bankers. who have seen the
predictions of Col. Leonard P. Ayres
noted economist Of the Cleveland Trust
Co, for 1882, declare they are worthy
of more than average consideration. He
stresses two points in particular, Whlch
are.
Two principles appear valid as guides
In the formation Of policies, whether
personal or corporate, in 1882. The flrSt
is that operating budgets should be bal
anced. This means that income should
be coaxed up, and outgo should be pared
down, at whatever cost Of thought and
effort, until the two accounts overlap
and leave at least little margin on the
credit side. 1t involves calling a halt to
the plling up debts, and making prog
ress. in paying them down. This policy
is the valid objective for the National
Government the State, the municipal
ty the corporation, the church, the club
and the family.
1T will not do to think that we can
wait until business recovery makes pos
sible. the adoption Of this policy. The
order of events is the other way around.
Prosperity will return when millions OF
indiyidual men and women resolutely
grapple with existing conditions, and
use them as a foundation from which
to build for the future. Business re-
covery cannot be conjured into being by
the enactment of some all-inclusive
legislation. The volume of employment
will increase in proportion as mdivldual
business units so recorder affairs as TO
enable them to operate at protlt.
Business can operate successfully at the
new and lower price levels when once IT
has adjusted its operations to them.
The second guiding principle is that
IN a. time of readiuStment to lowered
price levels hopes for speculative profits
should be relegated to very subordl-
nate positions. This applies alike to
hopes for speculative gains in land, IN
commodities, and in stocks. It Is not
equally true of bonds. Even in periods
of rising commodity prices stock Specu-
lation is the most laborious form Of
acuuSitive enterprise. When general
readjustment to lowered commodity
price levels is under way successful
speculation is rendered doubly difficult.
This country is overequipped with
speculative facilities, and its people are
overimbued with the speculative spirit
both ill-adapted to present conditions"
Local Investment Buying Noted.
It was reported in several Washing
ton banks today, as well as in local
brokerage houses, that considerable
small lot investment buying has de-
veloped in the past few days. 1t is
stated in the brokerage houses that
there is much more outright buying
than selling among Washington in
vestofs. Recent weakness in the New
Yorks stock market has been helped
along very little by selling which orig
mated in Washington. A good deal Of
January reinvestment has been pre-
dicted for some time. Reports show
such investing is taking place, but in a
very modest, cautious way. Bankers
consider the move a favorable factor.
Capital financiers do not attempt to
say whether stocks have hit bottom.
They edo tell their customers, however,
that sound issues are certainly in the
buying zone.
Insurance Conference Planned.
Virgil w. Samms and C. L. Sykes,
field service managers of the Mutual
Benefit Life Insurance Co. of Newark,
N J.,Swill meet a group of the COM
pany's5 general agents and training su-
pervisorS at the Hotel Hamilton tomor-
row and Friday. They will discuss the
new fRld folio, a compilation of COM
pany sales material, to which officers
of the company as well as members of
the agency department have given much
attention during the past year.
In addition to H. Lawrence Choate
of this city, general agents who will at
tend the meeting are L. A. Spalding of
Baltimore, C. T. Thurman of Richmond,
Milton B. Ames Of Norfolk and A. c.
Thurman Of Raleigh.
National Mortgage Directors.
Stockholders Of the National Mort
gage g. Investment Corporation held
their annual meeting yesterday, and
reelected all directors of the corpora
ton. They are as follows DR.. George
M Rufin, Charles w. Norris, James T.
Gibbs, Vernon @. Owen, George w
Offutt, Irving o. Ball, James w. Beller,
Col. NJ C., Buckley, Macpherson Crich-
ton, Clarence F. Donohoe, Harold E
Doyle, John j. Hamilton, Gen. w. A.
Holbrook, Ashton c. Jones, Crandal
Mackey, Mai. J. Garfield Riley, James
p. SchiCk, w. w. Stewart, Hugh A.
Thrift, George E. Walker, William D.
West.
Wins Insurance Club HOnOrs.
Jules E. Kicker of this city, who is
with the Home Life Insurance Co. of
New York, made such an excellent rec
ord in 1881 that he has qualified for
4ltNll4DCAH44AP III t44t JltSluC1lIb SluD
and will attend the convention at Holly
wood -By-the-Sea, Florida, which opens
on January 20 and continues for four
days. The qualification for the Presi-
dents Club during 1881 required him to
write Sl0800 Of new paid for premium
income. For this record he is receiv-
ing hearty congratulations from aSso-
CiateS in his K street Office and others.
Bonds Lead d. C. Exchange
Bonds led trading on the Washing
ton Stock Exchange today, the session
opening with $1,000 Potomac Electric
Consolidated 5s changing hands at par.
This sale was followed by two 81 900
sales and one $500 transfer of Wash
ington Gas Light 5s at 1904. The
final bond sale was a small Washington
Gas Light 6, series A, at 100.
Capital Traction stock figured in one
1O-share sale today at l8l2, up half a
point from yesterdays close.
American Security & Trust Co. stock
and Security Storage have recently been
added TO the list now quoted ex-divi-
dend. There are now six issues SO
quoted.
Heard in Financial District.
Directors of the Firemen's Insurance
~. u " dSI4IIB IOlI ana georgetown
held their annual meeting of organiza-
ton yesterday and reelected the fol-
lowing officers: William N. Hoffman,
president; Albert w Howard. vice pres
ident and secretary; James N. Fitzpat-
rick, jT., assistant secretary.
The outstanding feature of year-end
bank and trust company statements is
the marked trend toward greater
Iquidity; that is, the ratio of quickly
realizable assets to deposit liabilities.
In the reports cash on hand and due
from banks and holdings Of United
States Government bonds show sub
Stantia1 increases over the figures a