Evening star., 1933-04-23
Purchases of Securities Show
No Lack of Funds Among
Investors.
SECURITY & TRUST co.
JOINS FEDERAL RESERVE
Agents Here Write $13,1S5, 900
New Insurance During "Finan-
cial Independence Week"
BY EDWARD C. STONE.


In whirlwind finish yesterday
Washington brokers wound up one OF
the busiest weeks since the record
smashing days just before the Wall
Street crash in 1929. Almost out OF a
clear sky brokerage business here and
all over the country assumed amazing
proportions as stock quotations started
wild advances.
The advance in commodity prices,
which had been going on for several
days, caused the sudden swing back
to stock trading Then came the talk
of initiation and the announcement
regarding the gold standard. Almost
instantly the local broker offices, in
which there had been many vacant
seats every day. were so jammed that
1t was difficult even to obtain standing
room in the board rooms.
While there was a mad rush to buy
stocks and very heavy transactions
In bonds, brokers reported that many
OF their clients took profits toward the
end of the week. Caution Is now the
watchword. brokers assert, the lessons
of 1929 not yet having been forgotten
The amount of funds available for in
vestment and speculation proved q
surprise, since it had been frequently
claimed that the market could not
stage an advance because Of practi-
cally no buying power.
the coming economic conferences Is
the subject of greatest conjecture
Time alone will tell In regard to
possibilities it is interesting to note
that after Great Britain went of the
gold standard in 1881, British common
stocks on the London Stock Exchange
advanced 26 per cent to April 90
1888, while in the same period Ameri-
can common stocks dropped As per
cent.
Joins Federal Reserve System
Announcement was made at the
Treasury yesterday that the American
Security l. Trust Co. of this city had
been admitted to membership in the
Federal Reserve System.
1t is the first bank in Washington
TO join the Federal Reserve since the
present campaign was started to get
banks all over the country to take out
such membership. However, the local
trust company had decided to enter
the Federal Reserve before the Nation
wide drive was started.
All national banks are compelled to
be members of the Federal Reserve
System, but membership is optional
with trust companies and State banks.
These banks may join by qualifying
for such membership by depositing the
required reserves, etc.
The American Security Trust Co.
will enjoy all the benefits Of Federal
Reserve membership, such as borrow
ing directly from the Federal Reserve
Bank of Richmond and being granted
other wide banking powers.
Corcoran Thorn is president of the
trust company. which has capitalila-
ton of s3,40O ,0oo Deposits on the
controllers last bank call on Deem
Der 81, 1882, totaled s3l, ,480 ,00264.
Insurance Boom in District.
John L. McElfresh. chairman of the
District Life Underwriters Association
Committee on Financial Independence
Week" yesterday announced the results
OF the drive during the past six days by
all the insurance men in Washington.
During the period 453 applications for
life insurance were written by the va
riouS offices. The total amount in
volved in these applications was s13.-
1856 900. the chairman stated. This IS
considered a remarkably satisfactory
return for a city the size of the Ma
tional Capital 1t far exceeded expec-
tations, agents freely admit. They also
uous efforts on their part
Insurance men here also consider
that Washington made good showing
in new business during March reports
this week showing total of S3.407 900
in policies being written, 80 per cent
under the same month a year ago.
Washington's percentage figure was the
same as the average for the whole
United States.
Junior Bankers Announce Debates.
The annual public speaking contest
OF Washington Chapter, American In
stltute Of Banking. will be held in the
chapter rooms. Bond Building, Four
teenth street and New York avenue
northwest. tomorrow at 8 pm.
The winner of the local contest will
be awarded the Bank Presidents S
Trophy for one year, and will represent
Washington Chapter in the A. P.
Giannini District Contest to be held in
Washington on May 6. In the District
contest on May 6 institute members
from chapters in Delaware. District of
Columbia, Maryland New Jersey, North
Carolina. Pennsylvania, Virginia and
West Virginia will compete for the
honor Of representing this district in
the finals at the Chicago convention in
June
The judges of the local contest will be
Maurice Rosenberg. president of the
Bank of Commerce g. Savings; Elmer
Louis Kayser, director, division of uni
versity and extension students. George
Washington University. and Raymond
B. Dickey, Washington attorney, dean
of the faculty of Washington Chapter
Aubrey o. Dooley. chairman of the
Public SpeakingDebate Committee,
will preside.
Would Guarantee Deposits.
Another bill favoring quick payments
of deposits in full in all cases of banks
which have suspended business has
been introduced in Congress by Repre-
sentative Carter of California.
The Government would make no con-
tributions, fund being established by
contributions from Federal Reserve and
Federal Reserve member banks.
II a bank is closed, up to $50 would
be paid to depoSitors at the end of the
first week, the same the second and
third weeks, and the full deposit paid
at the end Of the fourth week If the
bank is still closed.
The Federal Reserve Board would be
empowered to borrow up to $500 .000. 900
from the r. F. c.. from member banks
or from the Federal Treasury.
Rapid Transit Earnings Improve.
The Washington Rapid Transit Co.
has filed its March financial statement
with the Public Utilities Commission
revealing a deficit in net income of
S3,860.66 for March in comparison with
D deficit Of $6.463.19 in the correspond
Ing month year ago. The bus COM
pany also made q GOOD deal better