Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-04-20
BROKERS' OFFICES
TANNED TO DOORS
Public Rush to Purchase
Stocks Recalls Days
of 1929.
BY EDWARD C. STONE.

local offices OF the New York Stock
Exchange firms today until there was
standing room only long before the
ticker quotations began to flash across
the translux and the board boys started
their wild rush to keep up with the
Nothing like today's buying STAN
node" has been witnessed since the
exciting days of 1929, when spectators
closed their eyes and bought the frst
stock that came within range wnen
they opened them again. The oroef
clerks got a taste of business pressure
that they have not known for many
q dav customers men were kept on
their toes and broker house partners
and managers were swamped with ques-
tions on the merits Of different stocks
and the probable time that the rise
might continue. l..
An overnight rise of 3A points In
American Telephone & Telegraph stock
and a startling advance IN Unlteo
states Steel caused many EXPLANATIONS
when the quotations first appeared
The ticker soon got Is minutes penino
the market and the old way OF giving
only the last figure and the 1ractions
in quoting the leaders was aoopteo
announced that more than 1,750,000
shares had been traded in, very mucn
larger figure than the total for many
complete sessions only a short time
ago.
The gold standard, rising commodity
prices. initiation, the probabilities OF q
business turn the coming economic
conference. silver and hundred other
matters relating to finance were Freely
discussed by spectators and investors
as they watched the rapid changes IN
quotations Opinions differed as mucn
as the variety Of subjects discussed.
while early, in the day buyers ex-
ceeded sellers, yet many traders thought
II a good time to take some pronts
one fact stood out, brokers said, and
that is that there appears to be plenty
Of money all over the country Tor IN
vestment and trading.
Limited Bank Openings Urged.
officials in some Of Washington
closed banks are anxious for Treasury
authorization to reopen, even II tney
have to operate on a restricted basis
The opinion is expressed that the
Treasury might fix the restrictions. say
ing lust what part of his deposits any
deoositor might draw out. In this way
# would be impossible for the customers
of any bank to draw out all their de-
posits at one time and In that way
drain the bank of working funds.
Deposits might be limited to so per
cent. or even less, bank officials say
Such a Treasury rule would protect the
bank permitted to reopen and at tne
same time business could be resumed
without undue pressure on depoSltorS,
who have loans, these loans couio
gradually be liquidated: The onclals
see in this way road back to 100 per
cent operations without the necessity
of raising a lot Of new capital at time
when such a move is difficult.
So far as can be learned, however,
the Treasury attitude is that the closed
banks everywhere must be In a position
to open 100 per cent and MAINTAIN
operations on that basis before they Will
be granted the right to resume business
at all. The Treasury officials believe
any other way of reopening the banks
would be unwise and unsuccessful. :,
From the depositors' point OF view, 1t
is frequently stated that II 1t Is founo
that some of the closed banks are not
to be reopened IN the near future ~
would be better for the controller OF
the currency to order their liquidation
SO that payments to depositors could
be started as soon as saleable assets
had been converted into cash.
The local situation was reported as
unchanged again today, except that the
advance in securities had increased the
value of collateral the banks are holding
In connection with loans.
Ayres Favors Unified Banking.
In order to construct banking sys-
tenn that would eliminate the banking
crisis which this country underwent IN
March it must be constructed In sucn
a wav as "the simultaneous desire to
withdraw deposits will never again
occur" says Col. Leonard P. Ayres, vice
president of the Cleveland Trust Co.,
in the banks current business bulletin
1.-The reform that would most directly
strengthen our banking system, ana
do it with a minimum of difficulty and
disturbance, would probably be the
simple measure of bringing all banks
into membership in the Federal Re-
serve System" he states. Two rea-
sons for doing this have special weight.
The first is that in recent weeks 1t
has been found necessary to amend our
Federal banking legislation so as 10
permit non- member State banks TO Dor
row from Federal Reserve banks during
the period of the present emergency.
pency has reinforced the principle that
the safest place for the deposit Of bank
reserves Is In the custody of the Fed
eral Reserve banks When we add to
these two reason for bringing all banks
into the Reserve System the further
considerations that this change would
insure greater uniformity Of bank ex-
aminations. and closer supervision over
banking standards and practices, the
cumulative argument in support OF the
proposed change becomes impressively
strong.
B. & o. Reports 1882 Deficit
The Baltimore g. Ohio Railroad
$6,334,978 in 1892, compared with a
net income of $3,427,66 in 1881, the
annual report showed today. Current
assets at the end of 1882 were $34 $3.50,
eI3 and current liabilities $40, 635, 489.
During the year, the B. q o. lent
$3,565,314 to the Railroad Credit
CORPORATION and borrowed $4,000. 900
from the agency, the report Of Daniel
Willard, president, showed.
These members of the District Life
Underwriters Association were placed
in nomination yesterday for directors,
to be voted on at the May meeting:
F. George Clendaniel, Northwestern
Mutual Life Insurance Co.; George T
Black. Sun Life Assurance Co. OF
Canada; P. L. Rodgers, Acacia Mutual
Life Insurance Co.; Herbert o. Mclean
Provident Mutual Life Insurance Co.;
Joseph A. Mari, Penn Mutual Lie In.
surance Co.; E. D. Krewson, New York
Life Insurance Co.
Six members of the board continu-
ing in office are David S. Bethune
Equitable Life Assurance Society Of the
United States. Carl Smith, Dow, Pa
cific Mutual Life Insurance Co.; Alton
q. Grinnell, New England Mutual Lille
Insurance Co.; Dan ]. Harrison, Mas
sachusetts Mutual Life Insurance GO:
Thomas P. Morgan, jr., Mutual Life
Insurance Co. of New York, and Horace
Winter, Travellers Life Insurance co.
rox,v,~ n r Exchau1e Tradin1