Evening star., 1939-04-04
Investment Bankers
Show Vital Concern
In Ma|oney Act
Big D. c. Delegation
To Attend Conference
In Baltimore Tomorrow
BY EDWARD c. STONE.

Baltimore tomorrow to consider the
proposed Maloney Act organization
and the rules and regulations under
which this organization will operate
1t will be recalled that the Maloney
Act was passed about year ago and
is the most recent of a series of
laws which regulate the investment
banking industry While this par
ticular law applies to the so-called
over-the-counter business, a large
number of stock exchange houses
are affected, since they do business
in this field as we'll as on the ex-
changes.
For many weeks a committee rep
resenting the banking interests has
been working with officials of the
Securities and Exchange Commits
sion in the preparation Of pro-
posed set of rules which would have
a far-reachlng influence in the
banking world. Henry H. Egly. a
former partner of Dillon, Read &
Co., has headed a division in the
Securities and Exchange Commission
which is actively studying the prob
lem. Consideration Of these rules
is now in its final stages and all
registered brokers and dealers are
Vltally concerned. 1t is expected
that nearly every firm in Washing
ton and in the States of Maryland,
North Carolina, Virginia and West
Virginia will be represented in the
Baltimore meeting.
Many Points at Issue.
Benjamin H. Griswold, jr, will
preside. A number of the national
officers of the Investment Bankers
Association and of the Investment
Bankers Conference will be present.
Not since the passage of the Sc
curites and Exchange Act and the
consideration of the code has there
been such widespread interest in
the legislative matters affecting the
investment banking world.
The question Of sclf-rcgulation
which is involved in the Maloney
Act Association presents an inter-
estlng problem. The idea was de-
veloped to a considerable extent
under the investment bankers code.
If the new association is perfected,
SOllAlllllCCS dllp UlllCelS 1IUIl tllt
trade will be active in the handling
of disputes, complaints and misun-
derstandings. One Of the important
matters under consideration is
whether there shall be a paid presi-
dent of. the new association.
Slump in Exchange Trading.
Total trading on the Washington
Stock Exchange in February was
slightly below the volume in Feb
ruary year ago and far under
January of this year the Securi-
ties and Exchange Commission re-
ported today. The dollar value of
all sales on the exchange in Fe5ru-
ary mounted to s62667, against
$l21,710 in January, s64, ,440 in Feb
ruary a year ago and Sl73343 in
February, 1887.
The dollar value of stock sales
totaled $46,566, against s86,659 in
January. $51, 1,225 in February year
ago and s86,585 in February two
years ago. The number of shares
traded during February was 1,035,
compared with 983 in January. 816
in February, 1888, and 1929 in Feb
ruary, 1887.
The dollar value of bond trading
in February amounted to S16O99,
compared with $35,05l in January,
$l3,2l5 in February year ago and
S86.763 in February, 1887.
The slump in business on the
Washington Exchange in February
was in line with decreases on the
biggest exchanges in the country.
Total stock sales were off 1.6 per
cent from year ago. Bond sales
were also lower. the commission
compilation disclosed.
Essay Subjects Selected.
Subjects of the annual essay con-
test sponsored by Washington Chap
ter, American Institute of Banking,
were announced today by Frank NJ
Perley, chairman of the committee
and trust investment officer of the
American Security & Trust Co.
In order to encourage greater in
terest and make it possible for more
people to participate in the con-
test this year the committee select
ed the following subjects, any of
which contestants may choose:
THE Bankers Place in Meeting
Present Day Credit Needs" ," Present
Day Trends in Banking as They
Affect Loans and Investments"
''Undeveloped Fields for Bank
Loans" and "Supervision of
Banks Investment Portfolio Under
Present Conditions
The contest is open to all mem
bers of Washington Chapter in good
standing on April /, 1889, who are
employees of banks which are men,
bers of the District of Columbia
Bankers Association, except senior
executive officers and those men,
bers who have been winners in any
two previous contests.
First prize will be a trip to the
bankers convention, to be held June
Bill at Hot Springs; second prize
will be SIS in cash, and third prize
will be $50 in cash.
Members of the institute who
helped select the subjects include
Ralph Endicott, Robert H. Lacey,
I. j. Roberts and William T. VAN
doren, while members from the Dis
trict Bankers Association we're
Lanier p McLachlen. Charles H.
Doing and James A. Soper
Financial District Comment.
The average bid price for $50 real
estate bond issues was slightly high
er on April than at the beginning
of the year, according to the Burr 6,
Co. index. The average stood at
$410 per $1,000, against S405 three
months ago, an increase of IL per
cent. Transient hotel issues have
shown the best advances.
The voters of 78 communities in
20 States during March authorized
a total of only $5,945, ,951 in State and
municipal bond f1otations. This is
about one-half the normal level for
this time of year and included