Evening star., 1933-05-17


of new securities, to secure adequate
publicity on security offerings and to
protect investors from fraudulent vend-
ing, especially the small investor who
is presumed to have fewer facilities for
seli-protection.
In case the Government assumes
supervisory powers over all exchange
securities, the policy Of quoting unlisted
issues comes out into the open at once.
An exchange might be asked for in
formation on some security which 1t
had never requested and did not have
on hand. Indirectly the exchanges
suffered by investors who bought un-
listed securities on the supposition that
they had been fully investigated before
being quoted.
Governors of the Washington Stock
Exchange have voted to discontinue
quoting unlisted stocks and bonds on
the local board This action is not
intended as any reflection on these
issues. Members Of the exchange mere
ly take the view that 1t IS unwise to
quote securities about which they do
not have full information.
At the same time various local cor
porations have been asked to make
applications for listing these issues,
furnish the required financial state
ments, pay the listing fee, and IN this
way obtain daily quotations. 1t Is a
significant move and CT unusual con-
Germ to local investors.
C. J. Gockeler Is president OF the
local exchange; Y. E. Booker. vice
president; Karl w. Corby, secretary.
and James M. Johnston, treasurer.
Clearing House Supports Merger.
As noted elsewhere in to days Star,
the Washington Clearing House Asso-
ciation has given hearty support to
the move to merge four or more OF
the local closed banks into one new
national bank.
The Clearing House Association met
passed resolutions highly favorable to
the plan. The resolutions state that
the plan as announced by the conserva-
tors and organizers should receive the
support of the stockholders and de-
positors in the banks involved and OF
any other banks that may 2sire or
be permitted to participate IN the plan;
The resolutions mention the Federal
American, District National. Potomac
Savings and Washington Savings as the
banks so far active In the consolidaton
campaign.
The Clearing House Association also
expresses its approval OF any souno ano
constructive effort that may be maoe
by capable and experienced bankers to
make available for business and bank
ing purposes all or any part OF funds
that are new tied up tn banks IN this
city in the hands of conservators as the
release of all or any part OF SAID de-
posts for business and banking purposes
will be helpful to business and con-
tribute to the welfare of thousands OF
our citizens" -.
This statement from the Clearing
H-use Association was hailed with de-
light by the organizers OF the proposed
rev central bank and by the con-
servators of other closed banks. H. H.
Mckee. president of the Clearing House,
presided at the meeting and the secre-
tary Victor B. Deyber, made the action
public.
Bank Deposit Insurance Scored.
Bank deposit insurance plans pro-
posed in the Glass and SteagaH bank
reform bills now before Congress. are
not different in fundamental principles
from the guaranty OF deposits plans
that have been tried by eight Western
States and proved disastrous failures
in every instance, Francis H. Sisson.
president American Bankers Associa-
ton, declared today. He said the asso-
citation is in favor Of the aims and most
of the provisions Of the Glass BILL but
is opposed to the new insurance feature
that has been incorporated in 1t. Mr..
Sisson added:
1T is fundamental that the only real
guaranty for bank deposits is good
banking. Deposit guaranty is not good
banking. 1t is an attempted substitute
for good banking. The guaranty of de-
posits cannot be made to take the
place of sound public banking policies.
Good banking, like good health, can
not be created by post-mortem measures
to make good for the ravages Of previous
bad habits or conditions. The time aid
way to guard against banking troubles
Is by applying sound habits, principles,
safeguards and forehanded methods as
an inherent part of banking operations
themselves.
ut is fundamentally wrong ap-
proach to the banking problem to set
banking apart as financial activity
that is normally liable to cause losses
and business confusion that must be
Unidentified against. This, in effect,
would be to recognize that there must
be tolerated and carried in the banking
structure types of banking and classes
of bankers whose methods and short
comings are bound to cause disasters
and that the resulting damage must be
paid for by assessments on the legid-
mate earnings Of good bapNng."
Today's Trading on Exchange.
Washington Railway & Electric
preferred appeared IA times on the
board during today's trading on the
Washington Stock Exchange and closed
higher than it opened.
All the sales were In small lots. The
market opened at 81 and climbed to
84ls 84H and 84112. The days transfers
in this stock totaled lib shares, the
largest business in railway preferred in
many weeks.
Mergenthaler Linotype stock was also
in popular demand today in small lots.
The stock opened at Is, went to 25ss
and closed at 25A. six 10-share lots
moving to new owners. The market
closed with 254 bid and 2612 asked.
Bonds were neglected in today's trans
actions. The days only sale came after
call, when 5000 Chesapeake & Potomac
Telephone of Virginia SIS came out at
1929 The last previous sale was made
at l03.
Heard in Financial District.
George L. Starkey, president of the
National Bank of washington, left the
city today by motor for 10 days visit
to Atlantic City.
The Advisory Council of the Federal
Reserve Board held its regular quar-
terIy meeting at the Treasury yester-
day, .eonferring with Eugene Black,
governor Of the board and other board
members.
United Stores Corporation has de-
clared q quarterly dividend of 81A
cents on the preferred stock. payable
June is to stock of record May 26. In
the previous four quarters similar
auoJfs1tzf uere maid