Evening star., 1933-01-30
BRANCH BANK VOTE
.-3AROUSES INTEREST
90
Local Financiers Discuss Re.
bort of Chamber of Conn.,
HerCe on Referendum.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
Members of the District Bankers As
sociation manifested great interest to-
day in the report of the United states
Chamber of Commerce on 16 proposals
to strengthen the country's banking
system, which were submitted TO re1er-
endum. At their last meeting the local
bankers voted on IA of the points at
issue. the result being forwarded 10 the
Chamber of Commerce.
The report states that the referen-
dun lacked the two-thirds vote neceS-
sarv TO take a definite stand on branch
banking. neither advocating nor oppoS-
ING such banking. The regulation that
Federal Reserve Banks should be au-
thorized to deny rediscountS to banks
whose lending operations are un-
sound" was strongly approved. Inc
matter of loans for others was lett
to the action of the banks themselves.
The proposal to give the Federal he
serve Bank directors the right 10 re-
move bank officers using unSound prac-
ticeS was approved; bankers belleVe
every bank asking admission to the
Federal Reserve System should have at
least $4,000 capitalization, and permls-
sion should be continued allowing men,
beV banks to have affiliations with non
member banks. Security affihates were
favored under regulations"
The vote showed strong support OF
the plan to have Government llqul-
dating corporation which would make
possible early dividends to deposltors
in member banks that have closed, and
to liquidate the assets.
The system Of guarantee OF deposl-
tors was opposed. Development OF
agencies of the Reserve System Tor the
conduct of open-market operations
should be left to administration deter
Ininination. rather than to any leg1S-
lative action, the vote indicated.
The vote was strongly in favor OF
leaving the Secretary of the Treasury
as. member of the Federal Reserve
Beard. Extension of the Glass-Teagall
act for another year was favored. The
vote showed opposition to Reserve
enterprises. The referendum was
favorable to legislation requiring early
retirement of national bank currency
based upon Government bonds to which,
as an emergency measure, the clrcula-
ton privilege was given in July, 1882.
Today's Trading on Exchange.
o. Bonds led trading on the Washington
Stock Exchange today when the weeks
business opened. Anacostia & Potomac
Railroad 5s were the first to appear on
the board, ST ,000 selling at At. After
caI. two more $1,000 sales were re-
corded at 49,
Washington Gas Light IS, series B,
figured in small sales at 1039s. In the
seek division there vas small sale OF
Washington Railway G. Electric pre-
ferred at 88
National Savings & Trust Co. and
Washington Loan & Trust Co. stocks
haSs been added to the list now quoted
ex-dividends. Both banks have re-
Gently declared dividends. Washington
Gas stock is also eX-dividend. following
the usual quarterly dividend voted few
days ago.
Bank Stocks Hold Steady.
New York City bank stocks were
slightly firmer during the past week,
the increase in the aggregate value
amounting to Sl0883 000 The aggre-
gate value of the 16 leading issues, ac-
coruing to records compiled by Holt,
Rose & TrOster, amounted at the close
Of the week to Sl,80427l 900. which
compares with a total of 1.793, ,389, 900
and at With the eo5e fafa Of Of tss
reported on May 81, 1882, the low
point of the depression. The average
yield Of the Is stocks is now $50 per
cent.
Money VS.. Market Success.
Much money is a handicap rather
than a help to the man who would
learn to become successful stock mar
ket operator according to the current
number of Stock Market Technique,
edited by Richard D. Wyckof, which
declares that the past three years have
demonstrated that regardless of how
much capital man has he will lose
most or all of it if his judgement is
inaccurate
After pointing to outstanding ex-
arnples OF how large fortunes were re-
duced and leading operators on the
bull side were hopelessly sunk" on the
way down, the magazine points out
that on the ether hand the most far
sighted fnanciers liquidated their hold
1ngS at boom prices. The profits thus
received grew not out of money, but
knowing how, which is the biggest fac
tor in the success of trader or in
veStor."
Original Allotment Plan Urged.
The Board of Governors of the Mort
gage Bankers Association of America,
whose membership is approximately 80
per cent engaged in the city mortgage
business and 20 per- cent in the farm
mortgage business, at their regular
Midwinter meeting held in Chicago, in
dorsed the voluntary domestic allot-
ment plan for farm relief as originally
=, proposed by Prof M L. Wilson of the
!, department of economics, State Col
. lege of Montana, which plan applied to
: the five major farm commodities: Hogs.
: wheat, cotton, tobacco and rice. The
+. bill as amended and passed by the
House Of Representatives is imprac-
ticable and unworkable, the mortgage
bankers claim, and it is recommended
that this bill be amended in the Sen
ate to its original form.
Heard in Financial District.
--Fhe members of the Washington
Ticker Club will hold their annual din
HT-at the Chevy Chase Club this eve
ming, beginning at 7:30. President
Lockwood will preside.
Trustees Of Century Shares Trust an
ncunce that Charles Francis Adams has
been appointed trustee. Mr. Adams
will fill the vacancy caused By the
death of Ellery S. James, late partner
Of Brown Bros. Hartman & Co.
Evidence that investors. here and
Abroad. are slowly but surely regaining
confidence in the stability Of business
and future earning power of industrial
corporations is to be found in the for
ward movement OF bond values over
recent months, according to a state
fnent today by j. r. Kraus, chairman
Cleveland.