Evening star., 1935-05-03
E.B.A. CODE GROUP
TO HOLD SESSION
Many New Problems Faced
Due to Increase in Re.
funding Issues.
BY EDWARD C. STONE.


increase in refunding issues has
brought the investment market back
into the limelight, the Investment
Bankers Regional Code Committee for
District No. 13 will meet in Washing
ton next Tuesday, in the Office of
Y. z. Booker g. Co., in the American
Security Building. Mr. Booker Is
chairman of the committee, which
covers this city. Maryland, Virginia,
West Virginia and the CarolinaS.
During the long period in which
practically no issues of any kind were
brought out, there was little for the
Code Committees of the Investment
Bankers Association to adjust. Re-
Gently, refunding issues as large as
$73,000,000 have been placed on the
market. These issues have been
greeted with acclaim by dealers in in
vestments, and there has been a
scramble to get share of all the new
bonds for clients.
Methods used in some instances
have caused complaints. Those COM
ing from this territory will be dis
cussed freely at the special meeting
next week and corrective measures
taken. The code already has proved
very helpful in many ways.
The members of the Code Commit
tee for District 13 include, beside
Chairman Booker, Wylie r. Cooke,
Lynchburg, Va; Walter S. Robert
son. Richmond; James S. Wheelbee,
Baltimore; Ellicott H. Worthington,
Baltimore, with Myles H. Quail, act
ing secretary.
Investment dealers in Virginia will
meet in Richmond on Friday. May "a,
when Wallace Fulton, compliance di-
rector of the National Code Commit
tee of the I. B. A., will speak, as will
Y. E. Booker. This meeting will be
similar to those just held in Balti-
more and Raleigh. N. c.
Business Picture Brighter.
Favorable changes outnumbered the
unfavorable in the business picture
during the latter half of March and
the first half of April, though such
changes can scarcely be said to have
materially modified the fundamental
situation" says Banking published by
the American Bankers Association in
its May issue.
Developments of the month classed
as favorable by the review include:
D distinct improvement in resi-
dental building, 90 improvement. in
industrial production, particularly in
automobiles, 80 a continuance of
brisk retail trade in the rural areas,
(D cessation Of the declining ten
dency in prices that had been a fea-
ture Of the February recession in
business. 90 spectacular increase
In the rate of security refunding, un-
4 der the leadership of the United States
Treasury and 90 on the foreign front,
the orderly devaluation of the Belgian
currency.
Against these changes there have
been certain Offsets" the review adds,
''the principal ones being Cd a pro-
nounced failure on the part of retail
business in the urban centers to keep
pace with its performance in the rural
areas, CD severe duststorms over large
part Of the Middle and South West,
with accompanying threats of a re-
newal of last years drought, 80 a
disturbingly rapid advance in retail
food prices and 90 a renewed business
unsettlement as result of fresh silver
legislation.
I'm the banking situation, as dis
tinct from that of business generally,
the principal tendencies revealed in
cluded sudden expansion in time
deposits at juncture when demand
deposits were showing a recession; a
drop of substantial proportion in loans
against securities and the rapid growth
Of new tendency in corporate financ-
ing whereby bank loans are being en-
ployed to replace long-term loans and
even preferred stocks.
THE rise In time deposits among
the reporting member banks in the
leading cities amounted. between March
6 and April 10. to S28.O00.000, and
brought this item to the highest level
In many months. Presumably the
change reflects the steady decline in
the rates obtainable on high-grade
investments, which rates tend to
make the rates paid by many banks
look more and more attractive. The
fact that no interest is now paid on
demand deposits undoubtedly has
helped to stimulate the movement.
Safe Deposit Program Ready.
- More efficient and profitable safe
deposit management will be the slogan
of the annual convention of the Ma
tional Safe Deposit Advisory Council
at Asbury Park June Z and s, which
will be attended by three bankers from
Washington. They are Richard E.
Harris, American Security & Trust
Co.; John F. Hillyard, National Bank
of Washington, and Albert E. Foster,
Riggs National Bank, all active men,
bers of the safe deposit section of the
District Bankers Association.
The program will stress the legal
problems confronting vault custodians
in connection with the use and rental
of safe deposit boxes to individuals.
estates and corporations. About 400
safe deposit managers and executives
will be present. DR.. Thomas. father
OF Lowell Thomas, will welcome the
visitors to the New Jersey resort and
Walter P. Duvall of the Mercantile
Trust Co. of Baltimore will preside
at the opening session.
Robert B. Hansen. president of the
New Jersey State Safe Deposit Asso-
citation. will be host to the national
gathering Forum discussions and the
annual banquet will be features. The
i've chief speakers will be William
Kreiger, New York. an advertising spe-
cialist: d. E. Nook, Cleveland Trust
Co.: Edward S. Lubbers, Bank of
Manhattan; Louise S. Vogt. Chicago,
and Ralph d. Slaymaker, Kansas City.
Heard In Financial District.
Frank ]. F. Thiel, manager of the
Washington office of J. S. Bache 81
Co.. In the Washington Hotel, an
nounces that the New York Stock Ex-
change firm has opened new branch
Office in New Orleans, making the
thirty-ninth city in this country and
Canada in which the company main
tains offices.
Ralph Saffell, executive clerk of
the washington Stock Exchange. has
returned to duty after recovery from
q sprained ankle. Mr.. Saffell has been
connected with the exchange for more