Evening star., 1932-08-08
BROKERAGE HOUSES.
FILLED TO DOORS.
Public Returns to Watch
| Tape as Prices Con-
tinue Advance.
BY EDWARD c. STONE.

It looked like "the good old days" il
the local brokerage houses again today
as the week. S trading opened on The
New York Stock Exchange Every seat
was taken standing room was at 6
premium, Just as were certain stocks.
Familiar faces. not seen in broker
Offices in long time, were once more
in evidence, faces which some people
said never would be seen in broker of
fees again. All were enthusiastically
watching the tape and wondering why
the market has made such astonishing
advances in the past few days.
Old traders said stocks have gone UP
too fast that there is sure to be a set
back soon. "Overbought' was a word
frequently heard. At the same time
that these investors we're urging eau
ton. heavy buying in New York was
pushing prices still higher
That the public is going into the
market again is reported by local
brokers. So far. only in a modest way,
they say. 1t was also stated in the To-
cal banks today that they have been
having many requests for loans on
stocks in the past few days Where the
collateral was satisfactory, such loans
have been made.
Where our customers simply wanted
us to go into the brokerage business
with them. such loans have been re-
fused, one bank official explained.
Yields Drop As Stocks Climb
The average yield on all cash divi-
dend paying stocks on the New York
Stock Exchange was 1041 per cent on
July 30, a drop of almost one quarter
from the average on July |, according
to the monthly compilation prepared
bV MOOdy'S Investors Service
This decline in the average yield is
reflection of the sharp upward move
ment of share prices during the month
The present figure compares with the
all-time peak figure of 1887 per cent
reached on May 81 of this year.
Although practically all of the 80
groups involved had lower yields on
July 80 than on July L. says Moody'S,
relatively the greatest Improvement
was shown in the theater. automobile
and railroad groups. The decline in
the case of the rails was particularly
noteworthy, as the average yield on
July 80 was 1899 per cent against 1871
per cent on July l."
In a separate compilation of the divi-
dend rate per share, based on 600 iden-
tical stocks. the survey indicates that
the dividend index declined only 3 cents
during July, from 81 "a to Sl3l. This
decline compares with an average de-.
cline of 10 cents a month in the first
half of this year.
The New York stock market evidently
got most of the attention today, to the
detriment of the local board. The Wash
ington Stock Exchange opened with q
small sale in Potomac Electric 5l2 PEI
cent preferred stock at 1882. Later
there was another small lot sale in the
same stock at an advance to 104. Bonds,
which were in such good demand during
several sessions last week, figured in out
two sales today Both were $1,000
transfers in Washington Gas Light IS,
series A, at SO, Maturing next year,
these bonds are being sold and the
money placed in bond issues which have
mere chance Of advancing over long
period.
Local holders of New York bank
stocks are elated over the action of
their investments during the past few
days. The bank stock market staged
another sharp rally last week, based
upon records compiled by Holt, Rose
& Troster The aggregate value of
IS leading Issues at the close of the
week of August was $1.514,537 900,
which total represented a gain of Sl7O,-
10000, or 1877 per cent. for the week,
and S584 ,642 600, or IS per cent, from
the total of 1925, 1895, 600 reported on
May 81, which was the lowest total
recorded since the 1929 decline started.
Based upon the August 6 figures. Is
issues now are selling at II times their
known current earnings, against 9.3
times on July 80 and SO times on May
81, the record low.
Fifth District Prices Higher.
The Federal Reserve Bank of Rich
mond reports that farm prices in the
district now average about 10 per cent
higher than they cid month ago. This
is taken as an indication that farm
prices may have hit bottom and are
now starting an upward trend
Retailers report business as holding
up well Summer goods are being
cleared from shelves and the carry
over will be comparatively light.
Wholesalers report little activity yet,
but hopes that hand-to-mouth buying
will soon cease are expressed.
The net change in employment dur
ing the week has been slight, but the
preponderance has been on the bright
side. There has besn a slight pickup
in building operations. which are at the
lowest ebb in years, except in Washing
ton, where the Governments cOnStruc-
ton program continues without abate-
msnt
The other II Federal Reserve districts
report signs Of improvement, but the
main factor in the past few days has
been the advance in commodity and
security prices. Actual advances in
business figures are expected to result
from the uptrend.
Atlanta is one of the few places in
the country which reports the volume of
department store trade as larger than
year ago. Wholesale trade in the
South also registers Improvement.
Heard in Financial District.
William D. Hoover. president of the
National Savings & Trust Co. IS spend
ing his vacation at Pen Mar and other
places in the Blue Ridge
Harry NJ. Wheeler, member of the
staff Of w. B. HibbS &; Co. has returned
from two weeks vacation passed at
Ocean Grove n J.
Robert H. Whitton, Just made asso-
clate national councilman for Virginia.
OF the American Institute OF Banking
has been a member Of WASHINGTON
Chapter since 1924 and twice member
OF the board Of governors. He is as
sIstant cashier OF the First National
Bank Of Alexandria.
Net earnings of Kelvinator CORPORA
tion for the quarter ended June 80
1882, were S750002 after all charges.
Including Federal income tax. it was
announced today by George w. Mason.
president. This compares with $500
632 for the corresponding period of 1881
SILVER QUOTATIONS.