Evening star., 1935-04-18
BAbSON STRESSES
BANKS PROGRESS
Holds Splendid Condition
Is a Major Reason
for Optimism.
BY EDWARD C. STONE.

Ga, Roger w. Babson, economist, told
the financiers at the Spring council
meeting of the American Bankers
Association yesterday that the splendid
condition of the Nations banks is one
Of the chief reasons for optimism.
No business has more potential op-
portunities than banking, he added.
II am bullish on the banking business
and on the price of bank stocks" the
economist declared. After tremend-
ously distressing times, you are now on
the verge of very prosperous era
Mr.. Babson insisted that in spite of
good deal of pessimistic talk. condi-
tions are distinctly better, better than
In any Spring during the last five years.
He then cited 10 reasons for his
opinions
Bad conditions are being continually
cleared up with a reduction in private,
corporate and municipals debts, he
said. Inventories are declining; retail
sales are increasing both in dollars
and volume; dividend disbursements,
including back payments on preferred
stocks, are on the increase. and collec-
tions in most cases are running per
cent ahead of last year.
Cites Other Bright Factors.
Backing up his claims further, Mr..
BabScn said failures are at low
figure and foreclosures are declining;
farm income is increasing irrespective
OF Government aid: notwithstanding
attacks on the utilities, electric output
is running higher than it has for sew
eral years; railroad car loadings are
holding up well and the outlook ap-
pears better. At the same time, Su-
preme Court decisions and the general
attitude of the administration Is be-
coming more conservative.
Mr. Babson declared that he still
has faith in the business cycle and
cited 10 reasons why he thinks pusl-
ness should be better for the next two
or three years. The same people who
were the most optimistic in 1929 are
the most gloomy now. They may lie
wroNg again, he said.
The tremendous amount OF idle
money awaiting investment must some
day break through the dam. New
building will surely come back to so
or 70 per cent of the 1929 figures.
The political cycle is moving to the
right, the utilities are bound to nave
q comeback, and the American people
will sooner or later become recovery
crazy" The BabSon chart points TO
prosperous times for two or three
years, he said in conclusion.
A. b. A. Pushes Advertising.
How the American Bankers Asso-
citation is seeking to rebuild public
confidence through advertising was
pictured yesterday at Augusta hy
Gurden Edwards, director Of publicity.
He outlined in detail the advertising
service conducted by the association.
The aim is to show that skill ability
and honesty of the management under
private initiative and leadership have
more to do with safe banking than
banking laws. In concluding his re-
port for the association he said:
"The advertising department is now
serving regularly each month 924 men,
bers of the association with its various
services. including newspaper adver-
tisements, posters, booklets and fold
ers. The total number of advertise
ments sent to subscribers during March
was 4,353. BY classes. the total num-
ber of members receiving trust adver-
tisements each month is 2S9, savings
advertisements, 269; commercial bank
Ing advertisements, 316, and the total
receiving the new informative service
described above is 304.
"On the basis of March operations
of the advertising department, it is
now supplying subscribing member
banks with about $4,000 newspaper
advertisements annually. It is also
supplying 460 banks with one or more
posters monthly. The growth of the
work Of the department is shown by
the following figures: On September
!, 1884, the number of banks being
served regularly each month was 623.
The total number on April l, 1885,
was 924, an increase of 301 regular
subscribers, or 48 per cent in period
of seven months"
The Washington delegation to the
Executive Council meeting is expected
back in the financial district tomor-
row. An invitation was extended to
the association to hold the annual
convention in 1886 at San Francisco.
The 1885 convention takes place in
New Orleans, that decision being made
at the convention here last October.
Lively Trading in Bonds.
There was a lively demand for
bonds on the Washington Stock Ex-
change today. mostly for Capital
Traction SIS. The market opened with
five consecutive $1,000 sales in this
issue, all at 80. After call, $4,000
transfer took place at the same price.
D. c. Paper Co. IS came out
today for the first time in many
sessions One $1,000 sale was recorded
at 1872 and another at 1875, the days
last bond transactions.
Capital Transit stock showed a bit
more strength at the close. The stock
opened with small lot sales at 1884
but closed with a small transfer at
19 fiat. In the recent weakness in
this stock the volume of trading has
been comparatively light. Washing
ton Railway & Electric again moved
ut 104.
At the regular quarterly meeting
Of the Board of Directors of the Lin
coin Service Corp, industrial bankers,
Marcy L. Sperry, president of the
Washington Gas Light Co., was elected
a member of the board of the corpora
ton. Charles Delmar is president of
the company.
Banks Open Good Friday.
All the Washington banks will be
open as usual tomorrow, Good Fri
day, but all the New York Stock
Exchange Offices in this city will be
closed as the holiday is observed in
Wall Street. The Washington ex-
change will be closed.
Three Washington bank officers will
be among the 160 representing 80
States and the District of Colum-
bia at the new Graduate School
Of Banking at Rutgers University, New
Brunswick, N. j., when the Summer
courses open in June. They are Mel
son B. O'Neal assistant vice president,
Riggs National Bank; r. E. Haycock,
auditor, and H. T. Bisselle, assistant
cashier Of the same institution. There