Evening star., 1934-04-14
SHARP BOND GAINS
CAUSE Joy IN D. c.
Investment Dealers and
Banks Greatly Helped by
Market Action.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
Bond experts in Washington
financial district expressed keenest
satisfaction today over the amazing
strength displayed by the bond mar
ket during the first quarter Of 1884,
as we'll as during the first two weeks
of April.
The pickup has been sensational.
A year ago at this time an immense
amount Of investment money was
hidden in the vaults of countless
banks. Hardly anybody would invest
In anything
How different today! A generous
part of those funds has already been
placed in sound securities. A vast
amount more is waiting to be invested
in so-called senior issues. Two main
reasons are assigned by local flnan-
ciers as accounting for the astonish-
ing investment turnabout-the return
of confidence and the clearing up of
the banking situation.
The steady advances in both first
and second grade bonds during the
first quarter. which got well started
during the latter part of 1888, drew
special attention to the investment
market. Investors, who bought bonds
at the beginning of the year, have
enjoyed some very satisfactory yields,
and better STILL sharp advances in
quotations.
Individuals, banks, other corpora
tions and the Federal Government
have all had a part in the increased
investment which has caused the rise
In many issues. Long-term issues
are now in greater demand than at
any time during the past two years,
according to investment dealers in the
Capital. The bond market is back to
normal, they say, activity in some
securities even being above normalcy.
Buying of long-term bonds by in
Surance companies is said to have
been an important reason for the
continued strength. AS every one
knows, long~term Governments have
been particularly active. The new
deal joy, so evident in investment
houses, is being shared by Capital
bankers. The value of bond port
folios in the banks has climbed
steadily, while the value of bonds
held as loan collateral has added a
tower Of strength to all such loans.
F. A. A. to Meet in Buffalo.
Directors of the Financial Adver-
tiSerS' Association have voted to hold
the 1884 convention of the associa-
tion in Buffalo September 10 to 10,
inclusive
In making this announcement, Alva
G. Maxwell, president of the associa-
tion, stated that reports rendered at
the meeting by various directors and
committee chairmen reflected a de-
cidedly optimistic outlook. with a
majority of banks taking the great
est interest in several years in adver-
tising and public relations activities.
Replies to recent QUESTIONABLE
sent out by the association, Mr. Max
well revealed, showed that most banks
made increased advertising appropria-
tions for 1884
Preston E. Reed, executive secretary,
reported that based upon personal in
terviews with bankers over a wide sec
tion Of the country, banking and busi-
ness conditions over the country are
showing decided improvement.
Junior Bankers to Debate.
Members of Washington chapter Sc
lected to participate in the district
Giannin1 public speaking contest will
meet in competition with representa-
tives from chapters in New Jersey,
Pennsylvania, Delaware, Maryland,
Virginia, West Virginia and North Car
olina. Similar contests will be held in
eight other districts throughout the
country.
The winners of the nine district con-
tests will compete in the finals on the
evening of June II. The final contest
will be the first feature on the program
of the A. l. B. national convention to
be held in this city from June IL to IA.
Through the A. P. Giannini Educa-
tional Endowment, established to en-
courage public speaking among insti-
tute members, $1,100 in cash prizes will
be awarded the four best speakers in
the final contest.
The rules for the contest require
original speeches which each speaker
must deliver in not more than six min
utes. In addition to the prepared
speech each contestant is required to
deliver three-minute extemporane-
Gus talk on subject to be assigned
after the prepared talk is delivered.
U. S. Banking Competition.
For some time it has been evident
that the Government, says the
Bankers Magazine, is gradually as
Stunning number Of functions hereto
fore performed by the banks of the
country and it is becoming matter
of no little concern as to how far this
competition may extend.
The number of financial and semi
banking organizations set up wholly
or partly with Government support in
recent years is astonishing. They are
difficult to enumerate from memory.
Quite lately we have the export and
import banks, designed to foster for
eign trade.
1t is hardly conceivable that the
tendency under consideration will go
so far as completely to absorb the
ordinary banking business of the
country by the Government, or even
to leave to the banks only the local
business of their immediate neighbor-
hoods. The socialization of the bank
ing systems of the United States
would be development of such far
reaching significance as not to be
entered on without due consideration
of its consequences, not to the banks
alone but to the people who deal with
them, the magazine concludes.
Heard in Financial District.
The Washington Association Of
Credit Men announces that the 39th
annual convention will be held in Los
Angeles, beginning June II. About
$500 credit experts are expected to
attend.
H. H. Mckee, president of the Ma
tional Capital Bank and chairman of
the Washington Clearing House Asso-
citation, has been asked to serve on
the Program Committee making plans
for the coming convention of the Dis
trict Bankers Association.
The banks here have been busy dur
ing the past few days exchanging