Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-16
.FENNER B BEANIE
ABOL|SHES CREDITS
Exchange Firm Will Require
Deposit of Margins on
All Commodities.
BY EDWARD C. STONE.


today was effective August 20, Fenner
e. Beane, New York Stock Exchange
firm, will require the deposit of mar
gins on transactions in all commodi-
ties, disseminating the extension Of
credit lines regardless of whether the
exchanges on which the commodities
are dealt in permit such credits
This move follows the recent deci-
sion of leading commodity exchanges
to prohibit or restrict credit extensions
by their members. Margins have
usually been required of customers who
purchase for speculative account.
However, when purchasers of COM
modities were recognized members of a
trade, and used such staples in their
regular course of business, it hereto
fore had been the custom for COM
modify exchange members to advance
to such buyers credit, instead of re-
quiring margin deposits, the commits
sion firm thus being banker as we'll as
broker.
Fenner g Beane is the first large
commodity house to adopt the policy
of disseminating credits. In some
quarters, it is felt that most of the
other large houses may fall in line.
Lauds Investing Companies.
A study of investment companies.
often called investment trusts has
just been completed by Donald j.
Smith of Mackubin Legg & Co. ano is
being distributed among clients here
Much space is devoted to a COM
parison of British and American
methods of operation. In conclusion,
the writer says:
Based on sound investment prin-
ciples, the investing company appe ars
destined to occupy an increasingly
important position in the fielo of
American finance. In addition to
making substantial investments IL the
securities of successful corporations,
the closed-end financial company will
assume progressive importance Ia the
underwriting of new security issues
for established companies, the reor-
ganization and financing of those cor
porations in financial difficulties and
the supplying of capital to promising
new industries.
From the standpoint of ultra
conservative investment in equities,
the open-end, mutual-type- of man
agement company, investing only in
limited amounts of readily marketable
securities and with the unalterable
right to receive not less than net
liquidating value during the life Of the
trust agreement, will become even
more popular with the investing pub
lie. AS in Great Britain, the sound
general management investment trust
will undoubtedly rank among leading
financial institutions and its securi-
ties will ultimately be considered in
the same select class as the best bank
and insurance stocks.
Capital Transit Stock Firmer.
Capital Transit stock was much
f1rmer on the Washington Stock Ex-
change today. following yesterdays
sales of more than $50 shares at Is
Only two shares we're sold during to-
days session, at 1914, a real gain, but
hardly enough to make a market.
The market closed with 1514 bid, but
none offered at less than II.
Market observers said today that
yesterdays break in the stock and the
heavy selling were probably due to
forced sales by holders vino needed or
wanted the money at once for other
investments. Members of the ex-
change do not consider that the ad-
ditional wages which the company
must pay employees warrants letting
the stock go at a figure as low as it
sold yesterday. Traffic on the street
car lines continues to be very heavy,
and earnings are holding up we'll. The
July report is expected to show net
earnings of substantial proportions.
Capital Traction bonds sold in a
$4,000 volume on the exchange today
at SO, unchanged from other recent
transactions. Five shares of Wash
1ngton Loan & Trust Co. stock came
out today at 1879, against sale of 10
shares yesterday at zoo. National
Savings & Trust Co. stock, which sold
yesterday at par. was quiet today. The
hrst sale this year in Bank of Be-
thesda stock took place 1t 25. Bid
and asked prices on other issues were
practically unchanged.
Col. Ayres More Optimistic.
Bankers in the Capitals financial
district today were commenting on the
monthly review of Col Ayres of the
Cleveland Trust Co., in which he ex-
presses far more optimism over the
business outlook than he has for many
months. He has come around to the
views expressed by Charles G. Dawes
many weeks ago.
After an advance of five successive
months in the stock market. Col, Ayres
declares there is a more solid basis
for the present prevailing cheerfulness
IN business sentiment. He considers
the Federal Reserve Boards index on
the volume of industrial production as
the most reliable indicator of an i'm.
proving situation Since 1882 this
index has pictured four recovery moves.
The others have fallen back, but this
one is holding up
Col. Ayres speaks of the recent heavy
bond f1otations. Most of them were
reflnancing rather than new financing.
However, he considers the refunding
of old issues helpful to business be-
cause it reduces fixed charges and
postpones maturity dates.
The present prospects are" ne con-
cludes, that we shall be able to hold
most of the recent gains during the
rest of this year and even add some
thing more before its close"
Another $4,000, 900 Issue.
Announcement today from the Rich
mond Reserve Bank states that Secre-
tary Morgenthau has invited tenders
on another $5O,0O0,0OO 273-day Treas
ury bills. to be dated August 81, ma
turing May 20, 1896.
The I. c. c. has authorized William
H. T. Loyal. general solicitor of the
Virginian Railway, to serve as vice
president of that line, in addition to
positions already held with other
carriers.
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