Evening star., 1932-03-13
"BABY BOND" SALES
EXCEED S1,OIO,O()|)
IN FIFTH DISTRICT
Federal Reserve Bank of
Richmond Reports on Prog.
ress of Campaign.
PURCHASERS TO OBTAIN
NEW ISSUES ON TUESDAY
Bankers Note Increased Inquiries
for Securities During the
Last Few Days.
BY EDWARD C. STONE.

worth of the new U. S. Government 2
per cent baby bonds" have been re-
ceived by the Federal Reserve Bank OF
Richmond, 1t was announced in the
Virginia Capital yesterday.
The new bonds will be available next
Tuesday, the issue being dated March
is and paying interest from that date.
Application blanks have been placed
with all the banks in Virginia and with
all the chambers Of commerce, the re-
port added.
This drive to bring idle money back
into circulation has been the chief sub
sect OF conversation among Washing
ton bankers during the week They
have been taking applications in in
creasing amounts in the past few days
and their orders are reflected in the
total requests for the bonds already
received at Richmond, as all the orders
for the fifth Federal Reserve district
are being handled through the Reserve
Bank
Figures reported to the District
Bankers Association from the individ-
ual banks have revealed much concern
In the drive. Interest in the campaign
has increased steadily. Not only has
money been brought into the banks
bonds" but revived buying has been
shown in other sound investments
which return larger yields. The saw
tngs departments Of the banks have
also profited by many new deposits.
Reports Please ID. C. Bankers.
The total amount of money placed
In the new bonds indicates to bankers
that boarding has not been practiced
here as extensively as many had sup
posed. Bankers know of many cases,
but the feeling prevails that the total
amount is not very large. Attention Is
called to the fact that money taken
from banks to meet heme expenses by
persons out of work, does not come
under the head of boarded funds. 1t is
also stated that good many Washing
ton people have sent money to help
relatives in other places who were in
: dire need because Of closed factories.
These funds have been kept in very
active circulation.
President c. H Pope of the District
Bankers Association feels sure that
there Is no extensive boarding in
Washington. The banking situation
here for the past 80 years has been
such as 10 preclude such action, he
says.
The reported purchase of $4,000
and more of these bonds in the past
few days indicates to members Of the
District Bankers Association that there
is a marked improvement in confidence.
Many more purchases are expected by
the time the bonds actually begin pay
ing interest. The purchases already
noted will make possible the extension
of over $500,000 new credit in the
Capital.
Ghiselli Takes New Position.
Frank E. Ghiselli, former vice presi-
dent Of the Merchants Bank g. Trust
Co. and later of the Federal American
National Bank & Trust Co., at the
Fifteenth and H street branch, has be-
come affiliated with Robert c. Jones
g. Co., investment bankers with Offices
in the Shoreham Building, according
TO announcement made yesterday Mr.
GhiselE is widely known in the finan-
cial circles Of Washington, having been
engaged in the banking business for
over 80 years.
He started his banking career with
the West End National Bank. and
when that bank was consolidated with
the Citizens National Bank, he re-
mained with the joint institution.
mercial National Bank, remaining in
Its employ for IT years as an officer.
In 1928 he became identified with
the Merchants Bank g. Trust Co. and
IN 1925 he was promoted to vice presi-
dent and director. and was chairman
OF the advisory board of the Twentieth
street and Pennsylvania avenue branch.
Mr.. GhiselH is a thirty d-de-
gree mason, treasurer of National
Looge' NO. II, F. A. A. M, and treas
urer OF AlnaS Temple Shrine A. A. O.
M He ic nlcn
Elks. Washington Board of Trade. the
RACQUET Club, Cosmopolitan Club and
the kenwood Golf g. Country Club.
Two transactions in Potomac Elec-
tric Power IS we're the most impor-
tant deals on the Washington Stock
Exchange yesterday, both 81 900 bonds
selling at 1857.
Washington Gas Light bonds. series
b, IS, appeared on the board at 1901
The only other sale for the day was in
Capital Traction stock, 10 shares chang
ing hands at l9, up half a point from
the last sale The stock closed with
the week with 49, bid, offered at 20.
American Telephone & Telegraph has
been added to the list Of issues now
quoted eX dividend, the others being
Mergenthaler Linotype and Peoples
Drug Stores preferred The exchange
has been notified of the per cen;
quarterly dividend just declared by the
Union Trust Co. and the 7i2 per cent
quarterly dividend voted the United
States Savings Bank
At yesterdays session the unlisted
issues we're called off, but no changes
made in the quotations. AS the playing
season approaches, Washington Base
Ball stock stands at 81 bid and 81
asked
Bankers Push Dinner Plans.
Announcements OF the regular Spring
meeting and preconvention dinner OF
The District Bankers Association have
been sent to all member banks By
Lanier P. McLachlen, president of Nc
Lachlen Banking Corporation, who Is
chairman of the committee in charge
OF the occasion.
The program will contain, beside the
usual reports and business to be trans
acted, announcement of the many fea-
lures OF interest being arranged for thf
18th annual convention, several proni-
nent guest speakers and an unilsua IIy
attractive entertainment
The dinner will be held on April ~
at the Columbia Country Club. Durine
the afternoon golf tournament oner
TO those attending will be held and III,
prizes awarded during the evening.
The annual Spring meeting draw
the largest attendance Of the year o
bank officers and directors and 1t i
expected that the importance of tn
coming conclave of the association a
Hot Springs, Va, this year may dra,