Evening star., 1932-10-25
BANKERS PLANNING.
TO AID INVESTORS.
Efforts Will Be Made to
Safeguard Funds in Ameri-
can Markets.
BY EDWARD c. STONE.

Dispatches from White Sulphur
Springs, w. Va, state that the Invest
ment Bankers Association, in session
there, is paying particular attention to
an effort to bring about better protec-
ton for American investors.
President Allan M. Pope, in his an
nual address, stressed the statement
that investment banking. more than
any other business, is dependent upon
public opinion He recognized the fact,
he said that public opinion is at pres
ent critical of the profession. explain
ing that this resulted more from mis-
understanding of the function OF IN
vestment banking than from any serl-
Gus deficiency in the conduct OF the
business.
Mr.. Pope predicted that mass produc-
ton methods and installmcnt buying of
bonds as well as sales on commission,
are things of the past. Bonds are not
merchandise. he declared, and cannot
be merchandiSed i'll manner only ap-
plicable to commodities.
Of particular interest were the an
nual reports on foreign bonds, real es-
tate securities and farm loan bonds. A
special forum on foreign bonds was ad-
dressed by Garrard Winston of New
York, former Undersecretary of the
Treasury, who told of efforts which are
under way to form an American bond
holders council along the lines Of SIM
liar groups in England and France. One
of its functions would be to represent
American holders Of defau!ted foreign
bonds in a unified and cooperative way.
Lawrence Sees Trade Concessions.
Ever since the stock market crash
and the beginning Of the present depreS-
sion there have been two schools OF
thought On the best ways of bringing
back so-called normal times, David
Lawrence told the Conference of Bank
Auditors and Controllers at their con-
vention dinner One school might be
called the natural law school and the
other the control school, Mr.. Lawrence
said The natural law school favored
cutting wages. letting the millions OF
unemployed shift for themselves. the
aim being to get things down to bed
rock at once The other school favored
making immense loans, putting cut bond
issues and doing everything possible to
bolster things up until demand and
supply would again take care of the
economic balance. Throughout the de-
preston these two schools have been
arguing against each other.
At another point in his address Mr..
Lawrence declared that trade barriers
must be revised and mutual conces-
sions made in trade relations all over
the world Another vital problem that
will demand special attention just as
soon as the presidential voting is over,
is the matter Of war debts. 1t is not
a matter of cancellation, but matter
of revision, the speaker declared. While
the political candidates say little On
the subject now, yet this question must
be definitely settled in the near future.
After election the United States Will
again begin to see its duty in the
wcrld and take its necessary place in
world affairs. The vote-getting period
always makes a nation Self-centered
and more or less iSloated.
Mr.. Lawrence stressed the fact that
no matter which candidate is elected,
the economic recovery will go on. After
election the economies universally de-
manded can be organized. The nation
has passed through an unprecedented
epoch and it may require years to
emerge from it. One of the most I'M
portant results of the depression may
be a change in the individual. For
10 years before the depression started
nearly everybody was out to make
money wholly selfish motive. Since
the depression people have seen their
neighbors suffer and have seen suffer-
ing everywhere else. 1t seems to be
changing men from a selfish Individual
ism to a responsible indiviaualEm pos
sibly the most valuable lesson the de-
preston has taught, he declared.
Fifth District Trade Improves.
Latest reports from the Federal Re
serve Bank OF Richmond lndlcate that
retail and wholesale trade are still I'M
proving in the fifth district. Building
operations outside of Government work
still
below normal with no early pickup IN
sight. There was slump OF 40 per
cent in the number of building permits
issued in September, 1882, compared
with 1881 Ending of the textile strike
in North Carolina is the most lmpor-
tant industrial development in the past
10 days.
In the Atlanta district in the past
few days there has been improvement
in industrial activity. employment and
paw rolls. Retail trade has slowed up
Somewhat but wholesale business is
gaining ground Reports from most OF
the other 10 Reserve districts are en-
couraging. Philadelphia reports retail
trade gains and Boston makes a similar
report.
Employment is showing improvement
in Chicago. Business is rather Spotty
in the ST. Louis district and business is
slower in Minneapolis, although the
coal trade is better. Cleveland reports
better steel operations, but decline in
automobile business Kansas City re-
ports some Improvement, while Dallas,
Tex. notes substantial trade gains. In
all the Reserve districts reports 1t IS
evident that the approaching election Is
holding back business expansion.
Financial District News Briefs.
On the Washington Stock Exchange
today $1,000 Washington Gas Light 5S
sold at 1915 and $1,000 Washington
Gas IS, series B, changed hands at
cent sessions about the most popular
local issue has been washington Rail-
way & Electric preferred, which has
been selling around 80.
Net income of the Washington Rapid
Transit Co. in September showed
deficit of S7.492.29. compared with one
of S8,522.50 in September. 1881. accord
ing to the monthly statement just filed
with the Public Utilities Commission.
Net income for the first nine months OF
the present year revealed deficit of
S51.305.20, in comparison with deficit
of S28,410.72 in the like period in 1881,
a difference of $22,894 49,
Robert c. Jones is receiving con-
gratulations in the financial district
over the bridge-playing ability OF Mrs.
Jones. Mrs. Jones and Mrs. Martin
r. West, also of this city, playing as
partners for three days in Baltimore
last week, won the Maryland State
duplicate contract championship. They
have also won many trophies in local
tournaments.
Thomas NJ Cahill. financial editor
of the Washington Post. has returned
from a short vacation, most of which
he spent in Ohio.
The Pittsburgh & West Virginia
Railway has been authorized by the
Interstate Commerce Commission to
issue S601 900 of its general mortgage
per cent gold bonds.