Evening star., 1934-11-07
ELECTIONS EFFECT
0NSTOCKSSTUD|ED
Attendance in D. C. Brokers'
g., Offices Larger Than in
Several Weeks.
BY EDWARD C. STONE.


BY EDWARD C. STONE.
Investors. traders and spectators
swarmed into Washingtons brokerage
houses today to learn the effects of
election results on New York Ex-
change prices on stocks and bonds.
The attendance in the board rooms
was larger than it has been for sew
eral weeks when the tickers started
at 10 o'clock.
Rail stocks opened higher while
most quotations on other issues were
about where they LETT off Monday.
Brokers said they did not expect any
very sharp moves in either direction.
The election outcome was SO near to
what had been anticipated that the
markets found little cause for any
sudden moves.
With the election settled and
passed, however, it was believed in
financial circles that interest in the
markets will expand. Elections are
always an unsettling influence. When
they are over, people interested in
finance turn back to studying earn
lngS, reports, trade conditions and
trends and the general economic out
look
Brokers in the local financial dis
trict today quoted from the recent re-
views put out by the Guaranty Trust
Co. and the National City Bank Both
say business conditions are improving
slowly. Both these reviews said that
trends are more likely to be upward
than downward during the rest of the
year, and stressed the new and more
cordial relationship between the ad-
ministration and the American Bank
ers' Association.
Bankers here also feel that this
new accord" will be helpful. They
say, however, that better business re-
ports from the heavy industries,
rather than better sentiment, are
what is most needed just now.
Banking Reforms Held Unlikely.
Senator Fletcher, chairman of the
Senate Banking and Currency Com
mittee, predicts that any move toward
drastic banking reforms will be un-
successful during the next session of
Congress. Many predictions have
been made. His statement is conSid-
cred significant.
This months issue of the magazine
Sphere discusses this same question
of future legislation. In making some
highly interesting suggestions, Sphere
says:
The banking profession would be
wise to recommend to Congress its own
program of revisionary legislation. AS
against the proposal for a central
bank, it should urge fuctuating re-
quirements as to reserves and the
Strengthening of the Federal Reserve
System, which is already more than
half satisfactory, let it be said, and
can gradually. in the light of expert
ence, be made fully satisfactory.
1T should urge new Setup as to
correspondent banks and, it may be,
recommend that all banks be required
to carry their reserves in the Federal
Reserve Banks wiping out the system
Of correspondent banks. 1t should in
sist on unifcation of examinations
and urge that they be centered in the
Federal Reserve Board, with elimina-
ton of the office of Controller of the
Currency. which has become an an
achroniSm.
mitment alone to keep physically safe
the depositors' dollars in their vaults.
but likewise to protect those dollars
against attrition in value by political
attack.
1T is up to the bankers to find the
safe road and veto detours," the maga-
zine asserts.
Junior Bankers Plan Forums.
Washington Chapter, American In
stitute of Banking will have three
forum meetings during the coming
year, according to announcement by
Stuart Ogilvie, Second National Bank,
who is chairman of the Forum Com
mittee. Leaders in business and bank
ing will conduct the discussions on
current events. Last year these
forums proved both instructive and
entertaining. The date of the first
meeting will be announced shortly.
James C. Dulin, jr., treasurer Of the
American Security & Trust Co., who
is chairman of the Institutes Public
Affairs and Public Education Com
mittee, is arranging several enlighten-
ing talks to be presented before civic
groups in the city.
Depositors in closed banks all over
the United States stand to lose total
of about So 900 900 out of the Sc ,500.-
000. 900 in such institutions when they
closed, Chairman Jesse H. Jones of
the r. F. c. estimates. He said the
funds are lost, not frozen" adding
that there is a prospect for greater
recovery, due to improved conditions
N
not been made, the losses would have
been more than S2,000,000
ID. c. Exchange Active.
The Washington Stock Exchange
got away 10 good start on the first
session after the elections. The first
sale was ia Potomac Electric Power
5'2 per cent preferred stock. which
changed ownership at the high price
Of 1924. Railway g. Electric pre-
ferred moved at 1003s.
Lanston Monotype stock was ac-
tive today, recording six sales involv-
ing So shares, all make, at 49,, up
half point. Capital Transit opened
at G634 and after five l0-share sales
closed at 26I2.
The first bond sale was in WASH
ington Railway g. Electric As, $1,000
changing hands at 99l2. Capital
Traction SIS came out at 9l1s on a
$500 sale and closed with 81 900 sale
at 81 fiat. Bid and asked prices on
other issues were little changed.
Extension of credit on unregistered,
non-eXempted securities for limited
periods, subject to specifications in
section 6 of regulation T, may be per-
mitted when such loans are incident
to bona flde cash transactions, the
Federal Reserve Board rules. This de-
cision reverses a previous one in which
such loans we're limited to registered
non exempted securities. The board
consequently revokes rulings numbered
1E and 81