Evening star., 1934-08-19
BANKERS PLEASED.
ON EXCHANGE VOTE.
FOR REGISTRATION.
Action Expected to Increase
Strength of Securities
Held as Collateral.
MARKET HEADS BELIEVE
TRADING MAY EXPAND
Some Corporation officials Also
See Favorable Effect on Their
Companies Ratings.
BY EDWARD C. STONE.

Leading bankers in the financial
district expressed satisfaction yester-
day over the action taken by the
Board of Governors of the Washing
ton Stock Exchange in voting to
apply for registration with the Sc
curities g. Exchange Control Com
mission.
Many of the securities now listed
on the Washington Exchange are
widely held as collateral for loans in
all the banks in the city. RegiStra-
ton of the exchange with the Ma
tional Control Commission will give
every one Of these issues added
strength. That means a higher rat
ing for them as collateral.
The Governments new commission,
of which Joseph P. Kennedy is chair
man, will require certain periodic
reports from all corporations listed
on the local exchange. The more re-
ports corporation issues regarding
its financial condition, the better 1t
is for the shareholders, as well as
for banks and other institutions hav-
ing these stocks or bonds.
Some corporation officials also have
signifled pleasure over the registration
move by the District Of Columbia
Exchange. 1t was hinted that some
companies might not care to have
their securities listed on an exchange
that was not registered. 1t would be
looked down upon by security holders
and by exchanges in other cities. The
reaction might not be at all favorable.
Oficials of the exchange, of which
G. H. Goekeler is president, de-
clared yesterday the registration ac-
ton ought to result in added trading
in both bonds and stocks. "Registra-
ton will give sound investments q
still better rating" President Gockeler
said. "The members believe that the
exchange would not have been COM
pelled to register The voluntary ac-
ton seems to have greatly pleased
investors in the Capital" Mr.. Cock
eler added, with no little pride.
Talks Of Runaway" Markets.
The potentials of q runaway" stock
market are now present, according to
II. Parker willis, economist, banking
authority and former resident of
Washington while connected with the
Treasurts He now writes for the
Fitch Investment Service, his views on
fundamentals being received in the
financial district yesterday.
Dr. Willis contends that such a
market could develop either from the
recovery of business and the restora-
ton of confidence or from further
aggravation of the current lack of
confidence which might lead to hasty
purchases of securities in an attempt
to escape the consequences of ex-
pected imitation
In view of the abundance of bank
credit available, a very moderate
growth of confidence might bring
about a runaway market" in such
securities as were believed likely to
be supported by successful business,
DR. Willis believes, whereas further
lowering of public confidence, due to
such a factor as unwise management
of industrial policies or excessive
adoption of new imitation measures,
might result in hasty buying of Sc
curities at rising prices; but this would
not be the Improvement" which the
market looks for-founded upon be-
lief in the future of securities.
More Housing Applications.
More applications for renovating
loans were received by Washington
banks yesterday. While no totals have
been reported to the District Bankers
Association by the individual banks,
requests for this kind of credit are
received daily. AS soon as the blanks
are properly filled out, the applica-
tions are given careful consideration.
Checking of all statements in the
applications requires considerable time
so that ruling on each loan cannot
be made at once. 1t is a matter Of a
few days in most cases.
Bankers here were glad to get all
the preliminary details out of the way
during the week and actually start
granting this type of credit. Every
dollar loaned is expected to help the
building industry and reduce unem-
ployment.
Building and loan associations here
are cooperating in every way to make
the campaign a success.
FINANCIAL DIstr1ct Gossip.
The regular quarterly dividend of Is
cents share on Peoples Drug Stores
common stock will be paid on October
] to stock OF record September g.
The quarterly Sl62 on the preferred
Is payable September Is to stock of
record September l.
The Pennsylvania railroad reports
for six months ended June 80, 1884,
net income of S9,972 ,008 after taxes
and charges. equal to 76 cents a share
(par $50 on l3.167,696 shares of
capital stock. This compares with
S4,298,483 or 80 cents a share in first
half Of 1888.
The Atlantic Coast Line Railroad
reports for six months ended June 80,
1884, net income of S1,l72,047 after
taxes and charges, equivalent after
dividend requirements on 5 per cent
preferred stock, to $142 share on
1884 shares of common stock. This
compares with S2l3.776 or 26 cents
q common share in first half Of 1888.