Evening star., 1936-07-15
AYRES SEES BEST
GAINS SINCE 1880
Banker Reports Unusual Re.
covery in Half Year Over
Broad Front.
BY EDWARD C. STONE.

half of 1886, despite the TACT tnat all
these fine figures are still depression
figures. It seems probable that it will
continue to do well in the second half
of the year, despite the prospective
disputes of the political campaign the
looming possibilities of labor difficult
ties, and the threats of droughtS which
are Widespread and becoming serious.
This promises to be the best business
year since 1890, and possibly since
1929.
The security markets have done
well, Col Ayres adds. Stock prices
rose strongly and steadily during the
first quarter and the volume of trad
ing was large. There followed a
month of decline and two months of
advance in the second quarter, dur
ing which the volume was low, but the
losses we're recovered. Bond prices
have advanced during the half year
and are at record high levels. The
volume of new financing, which has
been mostly refinancing, has so greatly
increased that it has been about five
times as large as in the first half of
last year.
Among the important business ad-
vances during the last six months, Col.
AyreS refers particularly to the auto
mobile industry. which has continued
to hold its leadership throughout the
recovery period. He looks for the
largest motor output since 1929. The
steel industry also seems likely to have
the best years since 1929, he believes.
He finds much better figures for new
construction, factory pay rolls. car
loadings, foreign trade and farm in
come.
1t will probably prove true, he con-
cludes that when the percentage of
durable goods factory workers reaches
a point midway between the so and IS
per cent levels, full industrial recovery
will have developed. 1t reached 40 per
cent in May.
Reserve Boost Expected.
Little surprise was expressed in the
financial district today over the in
creased reserve requirements for
member banks by so per cent, effec-
tive August Is, announced by Gov.
Eccles of the Federal Reserve Board.
Nor was the amount of the increase
considered momentous. Some such
action has been anticipated for sew
eral months.
1t was noted that it came at time
when bonds were especially strong and
when the stock market averages were
entering, or close to new high ground
for the present year. Early in the
day there was no marked reaction
in Wall Street either way to the new
ruling.
The move reduces the chances for
serious credit initiation, about which
many economists have recently writ
ten so much, bankers said today. At
the same time there will remain avail
able in the banks all the funds and
more that may be needed for sound
credit borrowing.
Gov. Eccles says the increased Re-
serve requirements will add to invest
ment confidence" and will not affect
the easy money policy now prevail
ing" This policy will be continued,
he asserted
Bank Liquidations Progress.
Norman r. Hamilton, who has been
succeeded as receiver for the District
National and other closed banks by
Justus S. Wardell, has made an excel
lent record in liquidation of the assets
of these institutions. His final report
for the District National estimates the
value Of the remaining assets at ST.
314,598. More than ST 100000 has been
paid the R. F. C. on total loan Of
S1,193,641 Further dividends to de-
positors are said to be unlikely until
pending legal actions are disposed Of.
Mr.. Wardell has also taken over the
receiverships of the Potomac Savings
Bank, Northeast Savings, Seventh
Street Savings and Washington Saw
lngs Bank, also in liquidation.
The closed Commercial National
Bank is making good progress in pay
ing off its loan of more than $4,00O,-
600 from the Reconstruction Finance
Corp, according to the quarterly re-
port of the receiver, Robert G. Baldwin,
for the period ending June 80. OF the
original loan of s4,316,ooo, the receiver
has repaid $3,465, 900.
Total assets were S14,754,877.56
when the bank closed February 20,
1888. Depositors have received divi-
dends of so per cent of their original
accounts, amounting to 1880, 1875.
Telephone Dividend Paid.
Some 10000 holders of American
Telephone & Telegraph stock received
their quarterly dividend checks of s225
a share today The transmittal notices
also reported substantial increases in
earnings in the second quarter and in
the year ending June go compared
with the similar periods year ago.
James M. Johnston e. Co., Wash
ington, and New York investment
house announced today that orders
were received substantially in excess
Of the total offering yesterday of 10000
shares of Seaboard Finance Corp. 81
cumulative preferred stock, with CON-
mon stock warrants and that the sub
scription books were closed at noon
yesterday.
Wisconsin Michigan Power Co.,
dLIlldJeG Will INOIll1 hIUtTlCdu TO-,
has filed registration statement with
the S. E. G. under the securities act
of 1888 for $10,500,000 3a per cent
first mortgage bonds, due 1861 Pro-
ceeds will be used to redeem $4,000 900
per cent first and refunding mort
gage bonds on September l at 103Ia.
and s5,OOO,000 Az per cent mortgage
bonds at 1854.
Exchange Trading Quiet.
Capital Traction SIS opened trading
on the Washington Stock Exchange
today with $1,000 transfer at 9214,
same as yesterdays close. Five shares
of American Security & Trust stock
appeared on the board at 258, also
unchanged from the last previous sale.
The market closed with single share
of Potomac Electric Power 5la per
cent preferred stock changing owner
ship at 110A. While bid and asked
prices were firm. on other issues, the
Summer heat put a crimp in business.