Evening star., 1933-02-20
HOUSTON BANKING
VIEWS ARE STUDIED
Local Financiers Interested
| in Former Treasury
Heads Testimony.
BY EDWARD C. STONE.

former Secretary of the Treasury, be-
fore the Senate Finance Committee,
giving his views on the best ways out
Of the depression, has aroused unusual
interest among his many friends in
local banking circles. He presented
ideas that had received little mention.
Mr. Houston stated that some attempt
should be made to break up the tend
ency to have trade only in little ma
tional, water-tight compartments. He
said he thought there should be uni
fled banking system as the only way
to protect the small depositor. He re-
viewed past depressions and stated that
the country is now in some respects
better eff than in other depressions
and generally is no worse off.
While this country has 6 per cent
of the worlds population, it spends
more money than all the rest of the
world put together. While Mr.. Hous-
ton would not like to see opportunity
closed for educating people, he thought
that door should be closed to those
unable or unwilling to be educated.
One thing which Mr.. Houston thought
was striking was that people have
been induced to look to the Federal
Treasury for salvation They have
been taught to believe that prosperity
can be brought about from Washing
ton, and that in some mysterious way
this can be done without going broke"
He said that if this tendency is not
stopped it will wreck the Government.
Mr.. Houston praised the ReconStruc-
ton Corporation, strongly opposed any
tampering with the monetary system,
and urged the strengthening of the
banking system for the better protec-
tion of depositors. While he demands
better banks, he does not favor the
- I.
OF this line were of particular interest
locally, where this proposal has been
debated good deal both in and out
of the District Bankers Association
ANY guarantee of bank deposits" he
told the committee, "is premium on
bad banking at the expense Of good
banking"
Bromo- Settlers Annual Report.
Report of Emerson's Bromo- Seltzer,
Inc. (holding company, for year ended
December 81, 1882. certified by indie
pendent auditors, shows net income of
S1,554,ll5 after expenses, taxes, ETC.,
equivalent after dividends on the per
cent preferred stock, to S2.01 share
on 675, SAL combined shares of class A
and B common stocks. This compares
with $2,069,875 or $277 share on
combined class A and B shares in 1881.
Emerson's Bromo-Seltzer class A stock
has been listed on the Washington
Stock Exchange for several years. At
present 1t is paying a dividend OF 81
year.
Senator Couzens has drafted a Joint
resolution extending broad powers to
the controller of the currency in rela-
ton to the national banking situation.
The measure is aimed especially to help
matters in Michigan, the idea being
to give the controller much the same
powers in handling national banks that
the State authorities have toward State
banks.
Bank Stocks Again Go Lower.
The trend of New York City bank
stocks was again lower during the past
week. the decrease in the aggregate
value amounting to $55, ,379 COO, or 80
per cent. The aggregate value of the
l6 leading issues, according to records
compiled by Holt, Rose g. TroSter,
amounted at the close of the week to
81 1881 $4,000, which compares with a
total of S1,746867. 600 reported at the
close of the previous week, and with
total Of 1929, 1895, 900 reported on May
81, 1882, the low point of the depres-
sion. The average yield of the 16
stocks is now 5.93 per cent.
Today's Trading on Exchange.
Trading on the first day of the b,lsi-
ness week on the Washington Stock
Exchange was confined wholly to one
bond issue. Five 1000 transactions
IN Washington Gas Light IS. series "a, -
ngton Gas Light IS, 1858, were quoted
today at Ola bid and 81 asked. no
sales being recorded. The exchange
viii be closed Wednesday, Washington's
birthday, the local banks and the New
York Stock Exchange also being closed
on that date
The Federal Advisory Council of the
Federal Reserve Board is to hold its
regular meeting with the Federal Re
serve Board tomorrow. John Poole,
president of the Federal l-American
National Bank & Trust Co., is the
member of the council from the fifth
district.
The right to extend its mortgages for
q period not exceeding five years from
the present maturity dates and accep-
tance by holders of reduction in in
terest of | per cent is sought by Mort
gage Guarantee Co. of Baltimore in
letter to holders of sig per cent guar
a1teed first mortgages and guaranteed
first mortgage certificates.
Heard in Financial District.
Statement of Norfolk & Western Rail-
way as of December 81. 1882, shows
total assets of $544,667692 comparing
with S546, 800 on December 81, 1881.
Profit and loss surplus was S152045,-
B79 against $151 857455.
The Interstate Commerce Commits
sion has authorized Frank NJ Whitaker
and George d. Brooks. vice presidents
OF the Chesapeake & Ohio Railway, to
serve in similar capacity on the Nickel
Plate Railroad.