Evening star., 1932-08-05
BROKERAGE HOUSES
CROWDED TO DOORS.
Great Local Interest ir
Causes of Sharp Gain
in Security Prices.
BY EDWARD C. STONE.


Exchange quotations pictured another
exciting session in Wall Street.
Who is pushing up the marketP'
was the question heard in every office
If only knew" was the most fire.
quent answer.
Both brokers and bankers say the
trade figures warrant no such an ad-
vance as has taken place in the past
10 days. The market is "overSold,
brokers say, and warn of a reaction.
Yet prices we're still climbing during
the forenoon, the usual week end profit
taking not being in evidence. There
is a certain amount of public buying
for investment, but nowhere near
enough to bring about the present sharp
gains, brokers say.
An immense amount Of money Is
needed to start a move of the present
magnitude. The reopening of many small
manufacturing plants all over the coun-
try has helped sentiment, but could
hardly account for the present buying
wave, in the opinion of local bankers.
Much foreign buying has been reported
in the past few days, this furnishing
a real reason for the rise in certain is
sues.
Discounting Business Pickup.
Local bankers believe the market is
NOW bllN boAoA PASAA W 49,
Fau business. Wall Street leaders
claim the market is always three
months ahead of business and some
times nine months ahead But the
gains of the past few days have more
than discounted any ordinary Fall
business improvement.
The idea that it will be possible to
mark up commodity prices to any great
extent Is questioned by washington
fiuanciers There is still tremendous
oversupply of wheat, of cotton, OF
copper, of oil and many other important
, commodities. 1t will be hard to get
buyers to pay higher prices for COM
modities when they know all about the
Hosts Of other explanations were
offered, but none explained the
350O,000-Share turnover of yesterday.
Brokers said today that two courses are
omen to the market. Either there will
be a sharp reaction soon, or enough
public buying will come into securities
to hold prices up and establish new
levels.
Which will happen?
Today's Trading on Exchange.
Capital Traction SIS again opened
trading on the Washington Stock Ex-
change today with large blocks chang
ing hands The market opened with
$4,000 selling at Al, $4,000, $4,000 and
$4,000 more Of the same bonds selling
at the same price.
Potomac Electric Consolidated SIS
figured in a 81 900 sale at 1922 and
$500 washington Gas Light IS sold at
1917. Washington Gas 6s series B,
recorded a baby bond sale at 1001s.
Stocks were neglected, but one sale
being recorded Five shares OF Potomac
Electric Power per cent preferred ap-
peared on the board at the strong price
of 108%.
Washington & Suburban, 512 bonds,
1941, were quoted in the unlisted depart
ment at 81. Other unlisted issues were
called of and no changes made in quo
tations.
Commodity Price Index Better.
Bradstreet's Commodity Index of
wholesale prices scored its second con-
secutive monthly advance on August !.
It increased 10 per cent from $6.7266
en- July I to $6.7950 on August ]. This
is the first time since August, 1881, that
this index has continued an upward
trend for more than one month.
In all previous business cycles, Brad
streets finds, that the first commodity
price improvements occurred In the very
sensitive raw materials and that grad
ually, the betterment became more gen
eral, affecting semi-fntshed and then
finished articles. This seems to be the
present course of commodity prices.
The finished commodities are drop
ping at apparently the same rate as in
the past several months This is having
the tendency to correct the maladjust-
nent between prices Of raw and finished
goods, which has existed for the past
three years.
Local Bank CIearings Improve.
Bank clearings in Washington for the
week ended August 3 showed improve
ment over the previous week, being $l6,-
$4,000, against $14 239, 900 in the week
ended July q, but "a per cent lower
than in the corresponding week a
year ago.
Baltimore clearings also jumped, be-
ing S73,414000, against $48,200,0 900 in
the previous week, and 29 per cent under
last year. Richmond reported total
clearings of $22 2,426,000, against $19,-
$4,000 in the week of July q, and a
drop of 81 per cent from last year.
Clearings from Al leading cities of the
streets, totaled s5,O77 .s12,o 900 for the
past week, gain Of 377 per cent over
the previous week, but drop OF 3O.l
per cent from the corresponding week
a year ago. This large gain over last
week was mainly due to the increased
activity on the New York Stock Ex-
change. Clearings outside OF New York
City amounted to Sl,62e, $50 900, los
per cent more than the week before
but 37.2 per cent below year ago
Cleaned in Financial District.
HIlleary G. Hoskinson, one Of the vice
presidents of the Riggs National Bank
is ON his vacation.
Maurice Otterback, president OF TIE
Anacostia Bank, has gone to Atlantic
City for a vacation, following recovery
from his recent illness.
Charles r. Grant, vice president OF
the Washington Loan & Trust Co., has
gone to Atlantic City; Herbert w
Primm, assistant real estate of1cer, Is
also on a vacation in New Jersey, while
Eliot H. Thomson of the same bank re-
turned recently from trip to Norfolk
and Virginia Beach.
Robert G. Whitton, assistant cashier
Of the First National Bank, Alexandra
has been appointed associate execu-
tive councilman for Virginia of the
American Institute of Banking. The
honor was conferred by President
Frank N. Hall of st. Louis.
Sales of G. C. Murphy Co. totaled
SI,394,l15, off SIS per cent from July
1881. For the first seven months OF the
present year sales were of only 81 pei
cent, totaling $9,679,479 against So
937,40l.
Fifth District Bank Deposits.
Time deposits in 49 regularly report
ing member banks and aggregate de-
posits in IL mutual savings banks IL
Baltimore totaled SAP, ,7l7,3l8 at tht
end of June, 1882, an increase ovel
time and savings deposits totaling S439,'
403,447 at the end of May this year
but materially less than SAT-, ,l33,547 u
deposits at the end of June last year
the Richmond Bank reports.