Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-09-14
FERGUSON DEFENDS.
US. SECUR|T|ESACT.
Member of Trade Commits
sion Denies Law Stands
in Way of Recovery.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
Garland S. Ferguson, jr, member OF
the Federal Trade Commission, declares
that the new securities act does not
stand in the way of financial recovery.
He asserted in a radio speech that the
act is dangerous only to those VINO
seek to evade responsibility of telling
prospective investors the whole truth
Speakers before the Financial AdVer-
Users Association made the claim yes
terday that the new law Is 100
drastic
From July 20 to September 20 the
commission received registration state
ments involving securities amounting to
S2ll9OO 900. he said, and these state
ments on the whole have SHOWN
very definite intention on the part OF
issuing corporations to meet the re-
uuirements of registration, not mercy
in a technical sense. but fully ana
generously in compliance WITH NS III
tent and purposes.
The success of the act will depend not
only upon the ability and fidelity OF
the commission. but in large, II not
a greater measure, on the support OF
the public the speaker declared. Mr..
Garland continued:
Neither the iSsuer'S right to oifer
nor the publics right to buy a security
nav be limited under this act on &C
count of its speculative. unsound or
hazardous character The securities
acts differs in concept and in plan from
the so-called 'blue-sky' laws OF many
of the States While certain of the
State commissions pass upon the quail
itv of a security to determine whether
or not it may be offered for sale WITHIN
their jurisdiction the Federal act adj
heres to the principle that investors
shall be told the truth. and all OF 1t:
concerning securities publicly offered
for sale
Gains in Sales Encouraging.
The Richmond Reserve bans re-
port on August retail sales contained
many surprises. The best gain IN the
fifth district was scored by Charles
ton, w. Va. 40 per cent. A group
of other cities reported 38 per cent
gain and 10 stores in the CarollnaS
did 81 per cent more business than IN
August, 1882. In fact, these stores
report a slight gain for the first eight
months of the year compared with the
like period of last year
The Washington gain Of III per
cent was exceeded by Baltimore which
had a 80 ger cent gain and Richmond
with % per cent advance in depart
ment store sales Huntington. w Va,
and Lynchburg, Va, also hung. up eX-
ira good records for August. While NTH
district stores are still behind the first
eight months of 1882. these surprising
percentages for August did much to
lower the longer period records.
1t is interesting to note that both
the fifth district and the averages for
the 10 Federal Reserve districts are
10 per cent behind last year tor the
eight month period. In August alone,
the local area made & % per cent gain
against only l6 per cent for the whole
country average.
The Cleveland district led the II
Federal Reserve areas in August with
city and surrounding territory was much
harder hit by the depression than
Washington and vicinity. Hence.
larger comeback must be made. San
Francisco was at the bottom Of the
II districts. being only per cent ahead
of August, 1882, in retail sales.
Franklin Officials Push Work
officials of the Franklin National
stricted basis. are constantly pushing
their efforts to get the bank reopened
under 100 per cent operations. They
report further progress. but no date
for resumption of unrestricted business
can be given at this time.
Important conferences are being held
frequently with United States Treasury
officials assigned to give their special
attention to the reorganizing and re-
opening of Washington banks. Frank
lin officials consider the results of these
recent meetings as favorable. Com
pliance with Treasury rulings. however,
requires an almost endless amount of
detail which involves further delay in
the final application for the charter.
Officials of the Franklin National
state that they are centering their eff
forts toward continuing as a unit bank.
Opposed to any kind of merger. they
express the belief that all requirements
can be met which will permit opera
lions as an Independent institution
This is their one aim. Like many
other closed banks in Washington, they
had hoped to be open many weeks ago
While depoSitors are clamOring for a
release of a part of their funds, Off
Gals insist they are working as fast
as possible to bring this about.
New Life in Broker Offices
There was much more activity in
Washington Offices of New York Stock
Exchange firms today, a lively and
higher opening being recorded Brok-
ers say initiation talk and the Govern
ment efforts to advance commodity
prices seem to account for much of
the expansion in business here and in
New York. Wall Street reports that
public participation has shown a
marked increase during the present
week
The Governments reported determi-
nation to raise commodity prices both
in aprip1ltIrrn OIL &c
tinuing undated, it is said. Further
more, it is estimated that prices must
be raised another so per cent to get
farm returns up to the 1914 level so
far as purchasing power is concerned
This situation means that commodity
prices in their fluctuations are likely
to have special bearing on the stock
market during the remainder of the
year. in the opinion Of Washington
brokers.
AZ Per Cent Insurance Gain Noted.
The E. S. Brashears Agency, Wash
ington branch of the Union Central
Life of Cincinnati, reports a gain of AZ
per cent in August's net-paid for bust
ness over July This is the largest
gain reported in any one month since
the bank moratorium of March APP
plicationS for insurance also showed an
increase in August over July.
The Farm Credit Administration will
set up a regional bank for co-opera-
tlves and production corporation at
Columbia, S. c., next week, and on
September IS similar institutions will
be organized in Baltimore, according
to Henry Morgenthau jr., governor of
the Federal Farm Credit Admnistra-
ton.
AS provided in the farm credit act,
these institutions will be located in
the same cities as the Federal Land
Banks
Today's d. c. Exchange Trading.
On the Washington Stock Exchange
tod