Evening star., 1933-06-03
SECURITY RISE AIDS.
BANKS AND CLIENTS.
Sharp Gains in Bonds and
Stocks Great Help to Closed
Institutions.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
Recent surprising advances in both
bonds and stocks are proving of tre-
mendous value to the local banks now
seeking Government licenses to resume
banking operations without restrictions.
Bonds got some OF these banks into
their greatest trouble. The shrlnkage IN
bond values forced their reserves to a
lower figure than was permitted unoer
Treasury regulations.
Now these bonds are coming BACK
rapidly. Some have gained 20 per cent
or more in value in few days. They
are still gaining. Bank officials are
happy as every point in the rise I'M
proves the banks position. The larger
the bond reserve, the more striking the
benefit but the smaller banks are re-
hording proportionate gains In thelr
bond values.
The gains in stocks perhaps mean
more to the banks clients than to the
banks. Hosts of common and preferred
stocks are Up as collateral on ioatls, Il,o
An amazing improvement IN the VaIue
nf all this collateral has taken place IN
the mast few days. In many instances
the collateral has climbed to ngure
where the loans were paid OH.
Others are near that point; while IN
rnanv cases. borrowers could meet theT
loans and have a profit left over. MOI
all borrowers are SO lucky, however, an
inward trend for severaf months longer
being necessary TO get-them out ot the
woods.
Stocks Highest Since October, 1881.
In connection with the gains in Sc
c,lrity values it is interesting TO note
that the market value OF 100 repLessn-
tatiye common stocks now Is nlenel
than at any time since the end OF Oc-
tober, 1881, according TO FRAZER JeiAu IA',
g. Co. The leo issues at the end OF May
were appraised at $13,209, ,754000, or at
sra ner cent more than at the eno OF
Anril. 73 per cent more than in the maj
session before the bank holiday, ana
about 1877 per cent more than at tne
lows of the bear market IN June
year ago. -,a,
$1 e96. .448. 900. compared with S5,3us,-
5o3 900 in April and 1888, 4o90o0 IN
March. The gain since the oank noA-
day amounts to $500, ,778 600 ana SINCE
the end of June, 1892, values nave Oeeh
marked up $7,64i ,207,OOO.
Each one of the 13 Subgroups consul
tutinp the 100 issues advanced In May.
The largest gain in dollars was $4O2,-
O8q 600 in the rails. On percenI9se
basis the 1876 per cent rise in building
shares was greatest.
Rails advanced 3o.8 per cent, equip
ments 264 per cent, motors Zl.o per
cent mines 20 per cent, utilities 17.S
per cent, electrical equipments 15.3 per
cent miscellaneous industrials 15.l per
cent, chemicals 1876 per cent, OILS, l3.1
per cent, steels 1877 per cent, retall Is
sues 1913 per cent and foods 1l.4 per
cent.
Delegates to A. /. B. Convention.
washington delegates to the thirty
first annual convention .of the Amer
ican Institute of Banking, which opens
in Chicago on June 13, will leave here
June IL aboard g. special train that will
carry many other delegates from the
East. The following have been named
to represent Washington Chapter and
are now making every effort to arrange
for the trip:
s. Winifred Burwell, William A. Cady.
John NJ Christie, Anne P. Crawford,
George Dagenais, James C. Dulin, j. r.
Fitzpatrick. G. Elmer Flather, Constance
d. Fogle, B. Bruce Frantz. H. F. KIM
ball, Robert H. Lacey, William Laugh
lin. T. Hunton Leith, C. w. Mccormack,
j. E. McGeary, Donald Mowbray, Stuart
Ogilvie, Frank M. Perley, r. E. Phelps,
r. Nj. Poole, Veda Richards, I. j. Rob-
erts, Mabel Royce, Rose Royce, w. F.
Russ, W. L. Sanderson, e. w. Schreiner,
Paul j. Seltzer, A. w Sherman, v. w.
Alice Whitton, Robert Whitton and
Gertrude Wick.
Bond Club Elects Officers.
Frank P. Morse was elected presi-
dent of the Washington Bond Club at
the annual meeting held last night at
the Manor Country Club. He succeeds
T. Baker Robinson, is manager of the
local Office of Charles D. Barney & Co.
and is one Of the charter members of
the club.
James p Nolan was elected vice
president; James H. Lemon. secretary
and treasurer; Carl r. Kurtz and T. c.
Montgomery. members of the board of
governors. Mr.. Robinson presided at
the meeting.
Election of officers was held in con-
nection with the clubs annual outing,
which was one of the most successful
yet held More than 80 members and
guests were present, including bond men
from Baltimore, Philadelphia and New
York.
President Morse will name his COM
mittee chairmen for the coming year
at an early dete and the clubs monthly
1uncheons will be resumed in the Fall.
Rapid Transit Report Filed.
The April statement Of operations
of Washington Rapid Transit Co. has
been filed with the Public Utilities
Commission. 1t presents a deficit of
$2,216 in the item of net income for
the month. as contrasted with deficit
of $3,145 for the same month a year
ago, reduction in deficit of 1929. For
the four months of 1888, the net income
item presents a net loss Of $17,788, as
against one Of $26,654 for the cor
responding period last year, d reduction
of 1886.