Evening star., 1934-03-07
D. c. BANK PLANS
DEBENTURES ISSUE
National Savings & Trust
Would Sell 100000
Notes to R. &c.
BY EDWARD C. STONE.

the sale of s1,OO0O00 per cent de-
bentures, or capital notes, to the Re-
construction Finance Corporation. it
was announced by William D. Hoover,
president of the bank, in the financial
district today.
Sale of the capital notes has already
been approved by the directors of the
trust company and will be voted on by
the stockholders at a special meeting
to be held next Monday, March II.
Notices of the meeting have already
been mailed to all shareholders.
The capital expansion move is in
line with the urgent request of Pres
ident Roosevelt, made some time ago,
asking banks all over the United
States to sell preferred stock or de-
bentures to the Reconstruction FL
nance Corporation as one of the best
possible methods of increasing avail
able credit for business and industry,
and at the same time strengthening
the capital structure Of each particl-
pating bank or trust company.
Several weeks ago the Riggs Ma
tional Bank, Of this city. adopted this
form of capital expansion by selling
preferred stock in the amount of
Sl,5OO,OO0 to the r. F. C. The Ma
tional Savings & Trust is selling cap
ital notes, instead of stock, because a
trust company cannot sell preferred
stock to the R. F.. c.
Only a few days ago the Chase Ma
tional Bank of New York announced
the sale of S50,000,00 in preferred
stock to the R. F. c. Many other
New York and Chicago banks. as we'll
as host of similar institutions in all
the larger cities of the country, have
recently added to their available credit
and enlarged their capital in this
way.
The president of the National Saw
ings & Trust, Mr. Hoover has been
at the head Of the institution for
nearly 25 years. Under his leadership
the bank has enjoyed long and steady
growth. The trust company's depos-
its at the time of the controllers De-
cember call were around S13,500,OOO.
The move announced today will dou-
bic the banks capital.
Trade Notes Reveal Upturn.
Late in January and early in
February wholesale trade in the Fifth
Federal Reserve District made the best
showing in more than four years.
Retail trade also showed less than
usual normal decreases in comparison
with similar periods in 1888, the
Richmond Bank reports.
Teytjlo mills NOT only repOrf ed seq.
sonal gains, but secured enough ad-
vance orders to keep them busy for
some weeks.
Cotton prices between the middle Of
January and the middle of February
we're about twice as high as prices in
the like period of the previous year.
c. W. A. and P. w. A. projects
greatly reduced the number of un-
employed persons who could not find
work, although private industrial en-
ployment still lags.
Coal production in February and in
January exceeded production in the
corresponding months of the preced-
ing year. t.. ~ -
Commercial failures declined 48 per
cent and aggregate liabilities involved
a drop of AZ in the comparative
periods.
Circulation Of Federal Reserve notes
continued far above the circulation
figures of year earlier.
The outlook for agriculture this year
Is probably better than it has been
for several years, the printed report
received here yesterday asserts.
Capital Firm Awarded Bonds.
The investment firm of Brown.
Goodwin & Co., in the American Sc
curity Building, was among the sue
cessful bidders in the first sale of
Public Works Administration bonds.
The firm was the successful bidder
for 100000 City of Lynchburg. Va.
Waterworks As. The bid was S203530
and the bonds will be sold to yield
375. Out of several blocks of bonds
awarded yesterday, this was the only
issue taken by Washington in
vestment house.
Municipal bonds involving some So
000,000,000 are to be sold by P. w. A.
Yesterdays sales were held highly
significant in financial circles. More
are to follow soon. The Offices in
the Commerce Department were
crowded with bidders, all anxious to
hear the awards. Some of the bids
were very close, a variation Of so or
60 cents on $1,000.
Trading on d. c. Exchange.
Washington Gas SIS figured in the
opening sale on the Washington Stock
Exchange today, $1,000 moving at
1865.
Capital Traction opened at 261s,
up an eighth from yesterday. Later.
however, three more sales were made
at 26 fat. The stock closed with 26
bid and 26l4 asked, an exceedingly
small spread
The bid on Capital Traction R. R.
IS dropped to n today but the asked
price remained at 81. The bid on
washington Railway G. Electric COM
mon has dropped from 300 to 290.
This stock is quoted ex-dividend on
account of the coming payment OF S20
per share in cash.
President Gockeler referred to the
Senate committees request for in
formation from the local exchange
on possible short selling in airmail
stocks just before the mail contracts
were Cancelled. He stated that there
are none of these stocks listed on the
board here, so that no such sales could
have taken place. Short sales are
barred on this exchange, anyway
Eugene E. Thompson of this city,
president of the Associated Stock Ex-
changes, is arranging to get any avail
able information from the other II
exchanges in the organization, as re-
Quested by the Senate Committee.
Report of American Stores Co. and
subsidiaries for year ended December
81, 1888, certified by independent au-
ditors, shows net income Of $4,197,7 708
after depreciation, Federal taxes,
etc., equivalent to 1922 a share on
1870 no-par shares Of capital
stock outstanding at end of year. This
compares with S4,313,839 or 1881 &
share on 1902 $40 shares in 1882.
FREIGHT LOADINGS,