Evening star., 1933-03-05
Measure Designed to Put All
Institutions Under Re-
serve Board.
LOCAL TRADERS EXPECT
EXCHANGE OPENING SOON
Prompt Adjustment of Situation in
New York Money Center
Is Predicted.
BY EDWARD c. STONE.

Bankers are studying the purposes Of
the Joint resolution introduced in Con-
Ercss by Senator Gore which is intended
to strengthen the bank situation. The
bill provides that any bank may qualify,
with the approval Of the controller Of
the currency. as an associate member
for a period OF two years OF the Federal
Reserve bank in the district in which
1t is located without subscribing to the
capital stock Of the Reserve bank. The
bill was referred to the Banking and
Currency Committee.
1t also provides that the bank must
agree to comply with the rules and
regulations under the Federal Reserve
act unless the controller of the cur
rency, with the approval of the Secre-
fary of the Treasury, relieves the bank
C such compliance.
The Reconstruction Finance Corpora
tion could be called upon to aid in the
carrying out of any rules or regulations
prescribed by the controller
Under the bill the government would
Immediately indemnify the deposits of
any bank against any losses which
would be directly caused by compliance
with the provisions Of the act
Among other results the bill is aimed
TO bring all banks into the Federal Re-
eerve System at least temporarily. Once
ul, the author of the bill thinks, many
would remain.
made to Order" Bull Markets.
Answering the question so often
Asked Of What will put the market
up?' Richard D. Wyckoff suggests, in
an editorial in the current issue Of
Stock Market Technique. that every
person who is now a holder of any
stock listed on the New York Stock Ex-
change buy five additional shares. more
Or less, of the same or any other ccm-
mon stock according to his or her re-
sources.
IF 2O,O00,O 900 stockholders thus buy
an average of five shares each. their
aggregate purchases would be 100 ,00O,-
600 shares, or at the rate Of 1000, 900
shares for the next 100 Stt ck Exchange
sessions" writes Mr. Nyckoff, "a made
to-order bull market should result. The
average prices of stocks should thus be
advanced so per cent over the prices
ruling March l. This would mean a
rise of some S25 a share in stock selling
from $50 to Sl00 and increase the euui-
tics of all stockholders by some 80 bill
Lions of dollars.
Here is an acorn from which q very
tall cak can be made to grow
American Ice Co. Report.
The annual report of the American
ice Company and subsidiaries for the
year ended December 81. 1882, certified
By Independent auditors, shows net
profit of 81 ,4243l3. after depreciation,
interest and Federal taxes. equivalent
after dividend requirements on the s
per cent preferred stock to $I.04 a
Share on $4,000 no par shares Of COM
mon STOCK. excluding 40,800 shares in
the treasury. This compares with s2.-
S31 .858 or 1885 on the common stock
in 1881.
The financial statement also shows
that current assets as Of December 81
1882 including s38O422 in cash.
liabilities were Sl.742,257. This COM
pares with cash of s430.83l, current
ASsets Of s2,o62.719 and current liabili-
ties Of Sl,68l,376 at the close of the
previous year.
In the current assets statement. the
company gives no consideration to in
vestments in its own stocks and bonds
amounting at average cost to S1,739,-
78O at the close of 1882, compared with
Sl,828,469 at the end of 1881. The
report is Of special interest to Wash
tngton as the company has maintained
large plart here for rleny years and
q good deal Of the stock is owned here
Exchange Action Startles Traders.
Market followers in the Washington
brokerage offices just before opening time
e* 10 O'Clock Yesterday were given
surprise when 1t was announced that
the New York Stock Exchange would
ne closed as lcng as the bank holiday
lasted in New York Following the
substantial gains made in the market
yesterday, both traders ard inye 5tors
thronged local board rooms to sec what
stocks would do on Inauguration day.
many opinions being expressed that the
gains would be held and further ad-
vanceS scored.
Those who knew of the bank holiday
In New York were doubtful that the
Exchange would open. They could not
picture the big mart in operation with
out the necessary banking facilities
Yet morning testing on the ticker tape
was over and it was just a question of
minutes before the quotations would be
flashing across the translux. before the
final announcement arrived.
1t was a disappointing hating OF
Fridays sudden Outburst Of enthusiasm
and increase IN volume. Further flashes
Oftl lIe tape dllu IlcWS tlCktIS QuOyeU
leading New York financiers as stating
that the bank situation in the money
center of the United States would have
to be promptly adjusted and that the
Exchange would soon be open again.
Heard in Financial District.
Richmond was one Of the cities that
reported higher bank clearings during
the week ending March l. gain of
per cent over the same week last year
being noted. Total clearings for the
country were higher than any week 50
far this year, substantial improvement
being noted.
The president of Safeway Stores Inc,
D. M. Skaggs. states that the company
will anro2Hce payment of the regular
dividend en- its common stock WITHIN
the next few days.
New State and municipal bond issues
approved by the voters of six munich
palties in six States during the month
OF February totaled only $3.50. 600. new
all-time low figure. according to the
Daily Bond Buyer of New York. Fig
ures for February of previous years
were s2,427. 300 in 1882, 48.300,9o0 IN
1881 and sl7.772,500 IN 1880.
National Tea Co. has declared the
regular quarterly dividend OF Is cents
on the common stock. PAYABLE April
10 of I