Evening star., 1935-08-28

most OF MS Time M pr.,.o.. ,-..I.v
in London, talk
ing with many British flnanciers dur
ing his short stay.
He found confidence and optimism
growing rapidly. His observations
confirmed the many favorable business
reports that have been coming from
London in recent weeks. Substantial
recovery progress has already been
made and that improvement promises
to continue. Mr.. Galley was much
pleased with what he saw and heard
on the trip.
He left London before a good deal
Of the intense feeling over the Italian
African situation had developed.
Block Of Pepco Bonds Called.
The City Bank Farmers Trust Co..
New York, as successor trustee. Is
notifying holders of Potomac Electric
Power Co. general and retunding
bonds, series B, 6 per cent. due in
1853. that there has been drawn by
lot for redemption out OF sinking
fund monies on october /, 1885, at
los, s3450o principal amount of these
bonds.
The bonds, which have been drawn
for redemption, include q $1,000
bonds, two of the $500 denomination
and five 500 bonds. Holders of the
bonds which have been drawn have
been notified that same must be pre-
sented at the head Office Of the bank
IN New York on October l, the desig-
mated redemption date. and that after
that date interest on these 35 differ
tnt bonds will cease.
These Potomac Power bonds have
been gradually reduced by lot for
several years. There are S5,093,70o
listed on the Washington Stock Ex-
change, the last sale being made at
1o7. They have sold this year as
high as l10l2; low, 1861. At present
levels the yield on the bonds is about
$40, the issue being one of the strong
est and most popular on the board.
It should, of course, be borne in mind
that only a few of the bonds are
being redeemed at this time.
Brokerage Houses Crowded.
Brokerage houses in this city were
crowded today as the New York Stock
Market opened. the extra concern
being aroused by the sell-off in the
late trading yesterday. Stocks opened
lower.
There has been a lot Of interest
and comment on the recent remarks
of Secretary Morgenthau on the action
of Government bonds. If the in
vesting public thinks that 99i2 is all
right for a 27s issue, that's all right
with u.s." he is quoted as observing.
Always in advance of financing
We let the bond market seek its
own level" the Secretary added. IF
we have any buying to do for Postal
Savings we don't do it in advance Of
such financing"
There has been so much talk about
the Government holding UP the bond
market that Mr.. Morgenthau's re-
marks are unusually timely.
Trade Gets Early Fall Start.
The Guaranty Trust Co.'S review,
out today, says that recent develop
ments have made it increasingly clear
that the business recession of the
late Spring and early Summer was
of comparatively moderate proper
tions, in contrast to the wide down.
ward swings that followed the brief
period of revival in 1888 and 1884.
The decline seems to have given way
10 an irregular upward movement
suggesting that some branches of
business are feeling the effects of
ArIff efi -1,11t r11af
earlier in the season than usual.
The bank says the security mar
ketS continue to indicate an improve
ment in business sentiment, despite
numerous political uncertainties at
home and the dubious outlook for
peace abroad. New security fiotations
have continued to increase, reaching
a total of S644, ,452,155 in July, the
highest figure reported since March,
1881, while the amount of corporate
securities alone is the largest since
January of that year.
Basic commodity prices have shown
few marked changes since termination
OF the N. R. A. codes, although the
general trend has been slightly down.
ward. A highly encouraging feature
of the business expansion in the last
few weeks is that in the durable goods
industries. In distributive lines, the
current advance has not shown its
effect too clearly, the review states.
ID. c. Exchange Trading Lively.
An unusually large number of diff
ferent issues appeared on the board
IN today's Washington Stock Ex-
change trading. The market opened
with a lively demand for Washing
ton Gas SIS, 1858. Eight sales took
place, all at 1864, unchanged. Sales
totaled s15,5OO.
Washington Gas IS, series B, came
out at 104 and closed at l03 for two
baby bonds. Potomac Electric Power
Consolidated SIS figured in a $4,000
sale at 1882, 4 from the last trans
fer.
Riggs National Bank comman
moved at 215 and 2141a today, Fire
mems Insurance stock sold at 80 and
Potomac Electric Power 515 per cent
preferred registered 113. Mergen-
thaler Linotype came to life, 81
shares selling at q against the last
pIeFlOuS sale db <072s ENOPAC IL d6
preferred has been added to the list
Of stocks soon to pay the regular
dividend.
Heard in Financial District.
Member banks in the Federal De-
post Insurance Corp. will receive
credit against their Federal assess
ments for all money paid by them
into. the temporary insurance fund
Leo Crowley, chairman of the corpo-
ration, states in a letter to the banks
outlining provisions of the permanent
insurance plans incorporated in the
banking act of 1885. Stating that
some banks had previously charged
OF assessments paid, the corporation
suggests that such amounts may be
ge-estahlished on their books.
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