Evening star., 1936-02-03
TRANSACTIONS ON THE NEW YORK STOCK EXCHANGED
FURTHER BUILDING
UPTURN FORECAST
ABA. Magazine Also Points
to Retail Activity and
Low Inventories.
BY EDWARD c. STONE.

Banking, official organ of the Amer
lean Bankers Association. today pre-
diets a new high level in private resi-
Dental construction during the present
year, a continuance of the notable
activity which developed In the latter
part Of 1885. Further improvement in
heavy construction Is also forecast
The comment adds:
Business prospects for the imme-
date future are fairly bright. Retail
trade has shown less post-holiday re-
cession. Merchandise and other in
ventories are low, buying for the Spring
trade having started three weeks ahead
Of usual schedule. The volume of pur-
chases reflects not only scarcity Of
goods on merchants shelves but also a
forecast of retail demand much greater
than year ago.
"Plans for replacement, re-equip-
ment and expansion of railways, steel
companies. oil concerns and thousands
of small business institutions. are grow
ing in number and extent. A steadily
increased demand for machine tools
reflects present industrial activity and
also is evidence of confidence in the
future.
Banking conditions as revealed in
numerous annual reports to stock
holders. appear more or less static.
Condition reports generally showed an
increase in holdings of Government
securities proportional to the rise in
deposits. Bankers are chiefly con-
cerned at present with the low rate
Of return on sound investments, the
continued lack of demand for or
dinary commercial credit, and the
generally unfavorable prospect for
bank earnings
After pointing to the substantial
Improvement along many different
lines, the summary turns cautious,
says much of the present activity
owes its origin to artificial stimuli"
and goes on to ask "how much of the
recovery is built on sand?"
Bankers Laud Rolfe Boiling.
There was universal sadness in the
banking district today over the death
of Rolfe E. Boiling, president of the
Liberty National Bank and brother
Of Mrs. Woodrow Wilson His death
was not unexpected, as he had been
seriously i'll six months and was "a
years old. He partially recovered
from his first illness only to have a
setback which he could not overcome.
Mr.. Boiling was a favorite among
Washington bankers. Quiet and un-
assuming he made friends with every
body who knew him. He succeeded
the late Edward j. McQuade as presi-
dent of Liberty December, 1881, the
Institution having made splendid prog
ress under his guidance. Born in
Abingdon, Va, he was a member of
q very distinguished family Starting
his banking career in Baltimore. he
later organized two banks in Panama,
going to New York when these banks
were bought by financial institutions
there.
Years ago he was president Of the
Commercial National Bank here, later
was president of the Merchants Bank
& Trust Co., when Peter A. Drury
retired, and was vice president and
manager of a branch of the Federal
American National Bank g. Trust Co.,
when called to the Liberty National as
president. An ardent Democrat, he
never cared for any public Office. pre-
ferring to devote all his time to bank
ing. He will be greatly missed in the
financial district and long remem-
bered.
Friday AnalyzeS Imitation.
David Friday. former Washington
resident who has often addressed the
District Bankers Association as an
economist. writes on Imitation and
Prices" in the February Rand Nc
Nally Bankers Monthly. He says in
part:
1T is perfectly clear that the ad-
vance in the price of farm products
and foods is due to causes that have
very little to do with imitation and
devaluat,oE. The factors which op-
Grated upon the prices of these two
groups were of very special nature.
We have had, during these years,
drastic reduction IN the output of
certain farm products. This curtail-
ment first oy the action of the A. A. A.
and later BY the drought, is adequate
to explain the greater part of the
rise.
"The prices which prevailed under
the conditions brought about by NAL
adjustments after 80 years of pros
perity and four years of war were
utterly abnormal and certain to rise
in a marked degree as soon as the
fear and hysteria characteristic of
depression psychology passed. In
creases were also stimulated by higher
production costs-due to higher wages,
shorter hours and processing taxes
and by Abnormal world political con-
ditions.
Mr.. Friday further says IF imitation
had been the actual casual factor in
the price changes which have oc-
Cured, we would have experienced a
rise OF much more general nature, not
merely a rise of 40 per cent in the
farm products group and of so per
cent In the foods group, while all other
commodities rose less than per cent"
Brokerage Houses Crowded.
Expectation of at least one Supreme
Court ruling today caused rush of
customers to the New York Stock Ex-
change board rooms today. The T.
v. A. ruling seemed to be causing the
most interest. In several recent ses-
sions, Commonwealth g. Southern
stock has been the most active issue
on the board. partly because so much
Of the company's business is located
In the heart Of the T. v. A. territory.
The Washington Office of the New
England Mutual Life Insurance Co. is
distributing the annual report. A fea-
ture Of the report is the growing in
terest In retirement income insurance,
more people than ever providing for
old age. The report considers this
move as lone Of the significant lessons
Of the depression"
HY.a nS~k~in% - N~J,,x.ty~ r.