Evening star., 1939-04-15
D. T.. Brokers Pleased
By Easier Exchange
Advertising Rules
Capital Leaders Felt
That New Policy
Was Inevitable
BY EDWARD C. STONE.

BY EDWARD c. STONE.
Early launching of a new deal in
newspaper advertising by member
firms of the New York Stock Ex-
change meets with the full ap-
proval of many Washington brokers
who have predicted for several
weeks that such changes were bound
to come
The traditional policy of extreme
conservatism is to be abandoned and
liberal realistic policy" adopted.
The April Stock Exchange Bulletin
announces the move to stimulate in
terest in advertising by member
firms.
The Committee on Public Rela-
tions has found that members may
have lost business to other institu-
tions due to the competitive disad-
vantages in their advertising.'
Brokers IN the Capital say this is
a very mild statement of the case.
They have been allowed to put lit
tie in an lad" but the name of the
firm and the kind of business in
which it is engaged.
Dealers in over the counter Sc
curities have had great deal more
latitude. in fact have had practi-
cally no limitations in their adver-
tising. They have had much bet
ter chance to build up their busi-
ness and increase volume. Now tn.
exchange firms are to be allowed
to advertise superior facilities for
investing and trading in the Sc
curities of American industries"
The committee states that eX-
changes are essentially useful to
security owners and prospective
owners, that the facilities and serv-
ices should be made available to
the greatest number of people, and
that advertising lis an efficient and
legitimate means of enlarging the
use of recognized economic and So
cial value
The Public Relations Committee
will continue to pass on exchange
advertising but will welcome inno-
vations, allow the use of photo
graphs or other illustrations and
the use of attractive or striking
Typography that is in good taste"
To brokers in the financial dis
trict the latest advertising philoso-
ply is expected to be an important
factor in building up the much
needed volume In the future the
ads will carry lot more than the
name of the firm, names of exc
changes to which it belongs and
other facts that are considered more
or less routine. Brokers are al
ready trying to think out advertis-
ing lines that will prove real busi-
ness getters.'
"Stale Check Bill" Signed.
Washington bankers are much
pleased that President Roosevelt has
signed the so-called "sSale check
bill' which will protect local banks
from unreasonable claims and OBJ
legations in actual handling of
checks between depositors and the
banks.
Among other things the principal
provisions of the new law allow
banks to refuse payment on check
outstanding a year or more, unless
directed by the depositor to honor it.
Limit damages awarded deposi-
tor when a check has been errC-
neously turned down to the dam
ages actually proved.
Relieve banks of liability for err
roneous payment of a forged check
unless notified within six months.
Empower banks not to recognize
an adverse claimant to a deposit of
another person, unless the claimant
obtains court order or offers to in
demnify the bank against loss for
dishonoring checks against the ac-
count.
The other provisions are of more
interest to the management Of the
banks than to depositors. The bill,
pending for long time. was closely
followed by the Law and Legisla-
ton Committee of the District
Bankers Association, of which
Francis G. Addison, jr, president of
the Security Savings & Commercial
Bank, is chairman.
Boards Money Views Lauded.
A cure for business fluctuations or
business cycles cannot be found in
an dUJeHlpJ W llldllltdIl Prices dt
fixed levels by managing" or ma
nipulating the Nations currency
supply, in the opinion of IS of the
leading monetary economists of this
country, who, as members of the
Economists National Committee on
Monetary Policy, indorse the posi-
ton on this issue taken by the
Board Of Governors of the Federal
Reserve System.
In the words of the board: 'Expe-
rience has shown that: Cd Prices
cannot be controlled by changes in
the amount and cost of money.
"(2) The boards control of the
amount of money is not complete
and cannot be made complete.
"(3) A steady average of prices
does not necessarily result in last
ing prosperity; and
90 A steady level of average
prices is not nearly as important to
the people as a fair relationship
between the prices of the commodi-
ties which they produce and those
u,hieh tIev must h,1v"