Evening star., 1936-09-12

-
got under way, he asserts.
DR.. Friday, in addressing MasSa-
chusetts bankers the other day, said
that the rise now under way is due
to the drought and will doubtless go
further. 1t will be stimulated by the
increased demand for raw materials,
which will come from Europe, to
carry out the rearmament program
which all nations of that continent
have under way Further explaining
his building boom prediction, he
added:
Nothing which can be called in
flation prices will result this year
Interest rates are low. They will be
lower for long-term investments, and
especially for good real estate mort
cages.
This will stimulate building and
construction and give us such a
building boom in the next three to
five years as we have never seen
before. England has experienced this
development in the last four years,
and we are just entering it. With it
production and business will reach
new high levels, unemployment will
be fully absorbed, prices will regain
their 1926 levels and bank assets will
expand to volume well beyond that
Of 1929"
Fogarty and Healy Differ.
Conflicting views on the value of
holding companies in the develop
ment of the electric utility industry
were placed before the Third World
Power Conference here yesterday.
J. F. Fogarty, president of the
North American Co., in paper sub
mitted to the conference, declared
that the sound holding company has
played and will continue to play an
important part in furthering the de-
velopment of the electric and power
industry in the United States.
A paper prepared by Robert E.
Healy. member of the Securities and
Exchange Commission, concluded that
the holding companies have been of
little or no value to the utility in
dustry. Mr.. Healy took the position
that holding companies which are
not in the first tier above the op-
Grating companies, or which are not
necessary to hold together an ef-
ficient integrated system, do more
harm than good"
Booker Aids Investment Move.
Y. E. Booker, head of an investment
house bearing his name and also
president of the Washington Stock
Exchange, is one of the leaders in the
Capital who is helping in the estab-
lishment of a permanent national or
ganization of investment banking and
over-the- counter securities dealers, to
be known as the Investment Bankers
Conference. Inc.
Representing an outgrowth of a
temporary organization formed last
year, the new association will be the
largest of its kind in the country, with
nearly 5000 bankers and dealers ell
eible for membership in view of their
registration with the Securities and
Exchange Commission under the Sc
curities exchange act of 1884. Ole of
the chief aims of the organization
is to give the public better investment
protection.
The organization is entirely sepa-
rate from the Investment Bankers
Association because the latter has a
limited membership.
Crowley, SteagalI to Speak.
Leo T. Crowley, chairman of the
Federal Deposit Insurance Corp. and
Representative Henry B. Steagall are
on the program to address the thirty
fifth annual convention of the Ma
tional Association of Supervisors Of
Banks, which will be held in Detroit
September 14-16. The other speakers
include Midwest bankers and officials
Of the Chicago Federal Reserve Bank.
Details from the monthly report of
Peoples Drug Stores, Inc. shows that
August sales totaled $1,738,271 as
compared with $1,652,045 in August,
1885, an increase of $86,226 or So
per cent. The record for the first
eight months of this year i; even bet
ter, sales reaching $13, ,614 in COM
parison with $12,272, ,422 il. the like
1885 period, an increase of 81, ,080, 1872
or 88 per cent. Sales in July showed
an increase of more than II per cent
over July of last year.
Washington bankers report a con-
stant increase in deposits, some hav-
ing enjoyed an all-time peak in de-
posits sincJ the last Controllers call.
Another call is expected in October,
when the figures will show the amount
OF the increases now being reported
unofdcially. Further requests for
housing loans have been received by
the banks here during the past week,
but credit still remains far more abun-
dant than many bank officials wish it
were.
The national bank division of the
American Bankers Association has
Just issued Manual of Laws Re-
1ating to Loans and Investment by
National Banks" 1t will fill "a need
which has been felt keenly for years
for full and readily accessible infor-
nation with reference to the powers,
restrictions, limitations, ETC., of ma
tional banks in making loans and in
vestments," C. w. Allendoerfer, presi-
dent of the division says in foreword.
The manual has been prepared eSpe-
cially for the smaller banks, which
obviously have greater difficulties in
answering legal questions, the preface
says.
Heard in Financial District.
The Washington Stock Exchange
opened the season of Saturday Fall
and Winter sessions today.
Thomas r. Preston, former head of
the =. B. A., is recovering from an
attack of appendicitis at his Chatta-
nooga home.
Controller j. F. T. O'Connor has
appointed Frank W. Shandley chief
national bank examiner in the San
Francisco district. He has been act
ing chief.
The Richmond Reserve Bank re-
ports that Virginia factory employ
meAt in August was estimated at IS
per cent above the Ike month last
mar.