Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
Summary by Economists
Points to Factors Which
Should Speed Recovery.
TRADING is IMPROVING
ON DISTRICT EXCHANGE
High Spots in Federal Reserve Re-
port-Further Upturn in
Banking Situation.
BY EDWARD C. STONE.

Although most indicators of indus
try and trade are still declining says
the United Business Service, there are
10 reasons why improvement should be
seen shortly:
l. The aid of the Reconstruction Fl
nance Corporation to railroads and
banking institutions.
2. The increased flexibility of the
Federal Reserve System.
3. The voluntary wage cuts of rail-
road employees.
4. The decline in bank suspensions
and the increase in the number Of re-
openings.
5. The decrease in boarding and sta
bility in bank deposits.
6. The rise in bond prices since the
middle of December.
Z. Greater stability in commodity
prices now evident.
models
9. Progress being made in balancing
the national budget.
10. Better conditions being reported
In England.
Yesterdays Exchange Trading.
On the Washington Stock Exchange
yesterday the following sales were re-
corded, Capital Traction and Mergen-
Anacostia & Potomac r. r. 5s-S1 900
at 5112.
Washington Gas IS "B"-S1oO at 101,
500 at 101
Capital Traction Cot at 49,
Georgetown Gas 5s-$1, 900 at 100A.
Mergenthaler Linotype-9 at AZ.
Chaplin Sacks go pfd-10 at 102, 10 at
102, 10 at 102. 10 at 102, 10 at 102,
10 at 102, 10 at 102.
During the past two weeks trading has
been more active on the local board
One reason given by members of the
Exchange is that the withdrawing
campaign turned attention toward in
vestments of all kinds, as well as to the
"baby bonds" Another reason is the
investment merit possessed by many Of
the local issues.
Fifth District Reserve Report.
The weekly report of Gov. George J.
Seay of the Federal Reserve Bank of
ticular interest under present condi-
tions. The banks resources of gold
held exclusively against Federal Reserve
notes total $78 10000. Total reserves
are over SOL ,000. 900. total bills dis
counted over $31 900 900, total bills and
securities, $55, 1888 900, making total re-
sources of $204, 769, 900.
Under liabilities, the bank reports
Federal Reserve notes in actual circu-
lation as $l00, 597, 900. Deposits. mem
Der bank, reserve account, $50, 467 600;
total deposits. 4,3o8, 900. Deferred
availability items now total over $780,
900 900. capital paid in, $5,306,000, and
surplus, $11 ,483 600.
Total amount of bills discounted and
bought for week ending March l6, 1882,
SIS, 289 900; ratio of total reserves to
deposit and Federal Reserve note liabili-
ties combined, 65.57; contingent liability
on bills purchased for foreign CORE
spondents. $13,456,0 900.
Recent Dividend Declarations.
Directors of the Security Storage Co.
have declared the regular quarterly
dividend of $125 share on the out
standing stock, payable April II to
stockholders of record April 7.
Directors of the Life Insurance Co.
of Virginia have authorized payment
of the regular quarterly dividend of rs
cents a share on April l to stock OF
record March 81. The payment amounts
to S187, 500, and is the largest made by
any Richmond financial or insurance
company.
Sears, Roebuck & Co. directors have
declared the regular quarterly dividend
of 621a cents share on the common
stock payable May to stock of record
April 8.
Bank Stocks at 1907-1921 Lows.
Shares of leading New York City
banks are now selling in ratio TO book
values at approximately the same level
as at the extreme low of 1907 and 1921,
according to Hornblower & Weeks. The
average of the market to book-value
ratios in 1907 was liz times; at the
low of the 1921 bear market it was lib
times; on March Is, 1882, the ratio was
10 times. The average yield on these
10 stocks at the lows of 1907 was 40 per
cent; at the lows of 1921, 65 per cent;
current average yield is 81 per cent.
Five Banks Resume Business.
The low rate of bank suspensions
continued in the week just passed, the
American Banker of New York reports,
listing only 10 closings. This is re-
duction of one over the previous week.
March has now had "a failures, and
1882 to date, 524. tying up total de-
post liabilities estimated at 1898 $780,
600 for eventual liquidation back to de-
positors. Five banks reopened in the
week
NnIAMIuN TnAnr