Evening star., 1932-03-09
EXPANDED CREDIT
BASE IS DEFENDED
National City Bank Letter
Discusses Provisions of
GIass-SteagalI Bill.
BY EDWARD c. STONE.

to the Glass-Steagall bill for nberaliz-
ing credit, and states that those who
criticize the provisions relating to the
use of Government securities as col
lateral for Federal Reserve notes on
the ground that it is inf1ationary should
take into consideration the fact that
condition now exists with respect to
currency which was not contemplated
by the authors Of the Federal Reserve
Act.
The normal f1uc.uaGlon Of the de-
mand for currency with the volume Of
eligible commercial paper outstanding,
has been interfered with by the extern
stve boarding of currency at time
when the supply of commercial paper
Is at its lowest point on account of the
business depression.
With the usual basis for currency
expansion so reduced and currency
demand unusually heavy, the review
states, it seems clear that some tenn
porary provision for broadening that
basis is not only justified but neces-
sary.
Bond Liquidation Controlled.
A source of considerable stability can
be communicated to the bond market
by the newly established bureau, under
the supervision of Controller Of the
Currency Pole, through which the hold
ings of closed banks can be liquidated
For one thing, it will prevent the forced
selling of bonds, which has directly re-
suited in putting prices down to un-
usually low levels. 1t will also do away,
says the Financial World, with duplica-
ton of offerings, since in order to
realize cash, receivers of failed institu-
tions have frequently attempted to effect
sales through a number of different
houses at the same time, thus giving an
exaggerated impression of the amount
of securities actually overhanging the
market
BY eliminating such duplication it Is
expected that this central bureau can
contribute to a better underlying tone
to the bond market in general. Thus II
will help out the bond price situation as
well as enable distressed banks to realize
more cash than would otherwise be
possible.
In bond circles, this central bureau
Is regarded as one of the most construc-
tive steps yet adopted to dry up forced
liquidation. and wholesome influences
having Widespread effects should
emanate therefrom.
Safeway Stores Net Higher.
The report of Safeway Stores, Inc
(Maryland), and subsidiaries (including
MacMarr Stores, Inc, from July - for
year ended December 81, 1881, shows
net income of $5,415,59 after depre-
citation, interest, Federal taxes. ETC.,
equivalent after preferred dividends to
1894 a share on 717,503 average no.
par shares of common stock outstand-
ing during the year and $3.50 a share
on S00,350 common shares outstanding
OF af TI1ic xxyif \,
net income in 1880 of S3,749, ,90l, equal
to $4.82 share on 634,s20 average
common shares outstanding during that
year and $4.8i a share on 635,655 COM
mon shares outstanding at end of year.
Average number of stores in opera
tion during 1881 totaled 1924, Of which
1854 had meat markets, as compared
with 2.675 and 1,489, respectively, in
1880.
Union Trust Declares Dividend.
Directors of the Union Trust Co. at
a meeting held yesterday afternoon de-
clared the regular quarterly dividend OF
2 per cent. The disbursement is pay
able April Is to shareholders Of record
March 81.
Western Union Telegraph Co. has
declared dividend of 81, payable April
Is to stock of record March 18. Three
months ago a dividend Of S1.50 was
paid, prior to which the stock was on
an So annual basis.
Emerson's Bromo-Seltzer, Inc, de-
clared the regular quarterly dividends
of so cents each on the class A, listed /
on the Washington Stock Exchange,
and B common stocks and the pre-
ferred, all payable April to stock Of
record March Is.
IT o.
day that the Central Public Service
Corporation has omitted the quarterly
dividends due at this time on the per
cent preferred, per cent preferred
and per cent preferred stocks.
Today's Trading on Exchange.
Capital Traction stock opened trading
day. a small lot changing hands at
1873.
The next sale was in Washington
Railway & Electric preferred, which on
a small turnover registered 80.
The remaining trading was in bonds.
Washington Gas IS, series A, came out
at 9934, while baby Gas IS, series B,
appeared on the board at 101A.
The largest bond sale for the day
was in Anacostia g. Potomac r. r. SIS,
81 900 selling at 511a.
Loft Sales Reveal Increase.
Loft, Inc, reported February sales to-
day as $2,083, ,805.74, an increase of
1872 per cent. The company reported
that while prices of many items had
been reduced early this year, sales were
increased by the addition of 396,99s
new customers in the first two months
of 1882.
Mail order sales of Sears, Roebuck 8x
Co. have of late shown a slight improve
ment, which is ascribed to the earlier
cate OF Easter this year and the fact
that, with an extra day in February,
the Midwinter flyer remained in effect
one day longer than normally.
At Wards annual meeting on March 4
s. L. Avery, chairman stated that
within the previous 10 days there had
been noticeable improvement in both
mail order and chain store business
which would aid Wards February
showing
Heard in Financial District.
Paul V. Keyser Of this city, counsel
Of the Investment Bankers Association,
has written most exhaustive analysis
of the Glass-Steagall bill. 1t has Just
been published in the associations
organ. Investment Banking.
B. P. Schulberg has been elected q
member of the board of Paramount
Publix Corporation to fill a vacancy.
Mr. Schulberg first became associated
with Famous Players Film Co., a prede-
cessor Of Paramount Publix Corporation,
90 years ago, and has been general man.
ager of production at Paramount's West
Coast studios since 1925
Harvey D. Gibson Of New York presi-
dent of the Manufacturers Trust Co.,
Is TO receive, on March Is, the second
gold medal awarded by the Hundred
done most for the civic and industrial
development of the city" 1t is award
ed in recognition of his work as chair
man Of the Emergency Unemployment
Committee
On Tuesday, the Dow Jones average
Of 40 corporation bonds again set a new
high for the year at 81 65 a days ad-