Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-03
HOARDERS return
MONEY TO BANKS
Indications of Restored Con
fidence Seen in D. C.
Financial Circles.
BY EDWARD C. STONE.

Local bankers said today that there
are indications that boarded money /;
being put back into Washington banks
The boarding situation here has never
been anything of importance compared
with other sections of the country But
hnanciers know that a certain amount
OF money has been withdrawn from local
banks and placed in safe deposit boxes
Now 1t is coming back. Restored con-
hdence is the main reason.
An incident is related of bank de-
posltor who drew out his money and
placed 1t in gold certificates. He put
these away in safe deposit box, with
the idea that it would be safe and that
his bank would pay him a premium
Tor each certificate within a month
He waited two months. No premium
offer. Then he decided the savings
department was the place for his money
and redeposited it.
Few people making deposits admit it
Is money they have had in boarding
But that fact leaks out in MANY in
stances. Some are frank to say they
were temporarily scared, but no longer
feel timid. Perhaps the fact there has
been no bank failure here in over 80
years, SO that no depositor has lost q
cent in all that time, is the main rea-
son for local confidence in banks.
Chase National Cuts Dividend.
Local holders of Chase National Bank
stock will get word at once of a cut
in the dividend from ST per quarter to
rs cents on the 100000 shares, pay
able April l, to stock of record March
II. This represents an annual rate of
SO, equivalent to Is per cent on the
$20-par stock
The directors action restores the
rate payable by Chase prior to July
last On that date the bank assumed
the ascent quarterly dividend paid by
the Chase Securities Corporation This
dividend has now been omitted pending
further improvement In the securities
markets which will justify resumption
of dividends by the affiliate.
The action is of particular interest,
as it follows the cut from 81 to So a
year made Tuesday by the National
City Bank.
Local Comments on New Bonds.
Should Washington "hoarders' buy
the new baby bonds which Uncle Sam
Is to issue in a Nationwide drive to
bring hidden money back into useful
circulation?
BY all means" say local bankers.
"Every cent of boarded money should
be put to work. If the hoarders fear
to use it in any other way, they ought
to invest in these bonds"
Bankers insist it is a patriotic duty
to bring this money into service and 1t
is also the businesslike thing to do. If
the holders do not care to put 1t In
sound banks, they can at least obtain
these bonds which have the safety of
the United States Government behind
them. They pay 2 per cent, are re-
deemable in go days, and mature In
one year, so that they should fluctuate
very little.
While urging the purchase of the
call attention to the greater yields
offered by Liberty bonds. They have
the same Government safety, but are
likely to show wider fluctuations.
Brokers, too, favor the purchase of
these withdrawing certificates for those
who are letting their money lie idle In
safe deposit boxes. Yet members Of the
local stock exchange do not let the
opportunity pass to say word for some
OF the local securities which they de-
clare possess as much safety as one
could want.
Stock Up 135 Points in Month.
New York City bank stocks enjoyed
generally higher markets during Feb
ruary Opening February / at IS, the
weighted average of II issues reached a
low CT 81 on February 9, but rallied to
a high Of go on February rs and closed
February 20 at SO for net gain on
the month of 7.3 per cent.
First National featured the list, clos
ing the month with a net gain of 1876
points. Brooklyn Trust showed a net
gain OF IS points, Guaranty 20, New
York Trust 14h, Commercial IA and
City 6. Public, Chemical, Chase, Man
haitian and Manufacturers were also
among the issues that improved in
price.
Trading on ID. C. Exchange.
Washington Railway & Electric pre-
ferred opened trading on the Washing
ton Stock Exchange today, with four
10-share lots selling at 90.
Mergenthaler Linotype appearing on
the exchange with 10 shares selling at
1924, followed after call, with 10 more
shares changing hands at the same
figure. This stock is now being quoted
eX dividend.
There was a small sale in Potomac
Electric Power per cent preferred at
Ill, same as other recent sales, and
the market closed with a small lot of
Washington Gas Light stock selling at
80, same as the last previous sale.
Heard in Financial District.
The Security Finance Corporation
has just mailed to its stockholders
checks covering its thirteenth semi
annual dividend on its preferred stock
This company specializes in the financ-
ing of home improvements in Wash
ington.
J. H. Rand, president of the Reming-
ton-Rand Co., which maintains Wash
ington Office, visited the White House
yesterday and told President Hoover
that economic sentiment throughout the
country Is 10 per cent better. Loring
Hoover. head of the North American
Securities Co., expressed the same view.
Offering Of 100000 Virginia Elec-
trio g. Power 10-year secured convertible
SIS at 9512, to yield about 6.10 per
cent, will be made by a syndicate
headed by Stone g. Webster and Blod-
get. The 512s will be convertible after
one year into first and refunding IS,
1855, at 5-point differential.
The Pennsylvania Railroad Co. has
paid on a maturing issue amounting to
81, 100000 OF its series A equipment trust
certificates.
Local brokerage houses were crowded
when the New York Stock Exchange
opened today. yesterdays sharp ad-
vance at the close arousing keen inter-
est. The action of the market has led
many traders here to think that at
least part Of the recent gains are 60
ing to be held
Norfolk g. Western bituminous coal
loadings in the first % days of Febru-
AIRY showed an improvement of 6 Der
cent over the same period in January,
but decrease of II per cent compared
with the February 1881, period. All
carload traffic also was per cent ahead
OF the January period
Norfolk & Western net earnings in
February will be helped by the 10 Der
cent reduction In wages, savings from
which are estimated at about $3.50, 900
o month.