Evening star., 1942-06-15
Investment Dealers
Asked 10 Determine
Minimum Capital
National Association
Presents n New Rules
To D. G. Members
BY EDWARD c. STONE.

By EDWARD c. STONE.
An amendment to the fair practice
rules of the Natioral Association of
Securities Dealers, submitted to
Washington members today. calls
for minimum capital requirements
for membership in the organization,
the first time such a step has been
taken.
Members clearing" their own
transactions must maintain net
capital of $4,000 in the business,
while members clearing through an
other member, and not handling
customers funds or securities, must
maintain net capital of S2,500.
Washington members received q
proposed amendments today in the
self-regulation campaign. Among
other proposed changes is one re-
during strict supervision of sales
tnen by association members.
All amendments have been ap-
proved by the Board of Governors.
the members to ballot between now
and July Is. Adoption of the amend
ments requires majority of the
2,700 investment dealers Investment
dealers here have been particularly
active in urging the more rigid
rules.
Huge Bond Purchases Made.
American life insurance COM
panies have purchased $500, ,0000 900
of United States Government bonds
since Pearl Harbor," an amount
Equal to twice the total holdings of
Government bonds at the close of
World War I, it was reported today
by the Institute of Life Insurance.
! Since the first of the year Govern
pnent bond purchases by the life
companies have totaled $1,200,000-
600, more than four times the pur-
thases in the same period of last
year.
Today, the life insurance COM
panies are putting we'll over half
Of all funds available for investment
into Government bonds.
- Peace Stocks" Gain Favor.
Brokers in the financial district
report good deal of buying in
peace stocks" outstanding. indus
trial issues which are enjoying
steady earnings during the war and
will have good earnings after the
war.
Many brokers feel that the peace
stocks" are more likely to go for
ward than the war stocks which
have been favored for so many
months.
The better action of the market
In recent sessions has caused mod
crate optimism in the brokerage
houses here. A good many brokers
believe the war will not last as long
as had been thought probable some
weeks ago. Brokers add that the
war and taxes continue to over
shadow business news as chief
market factors.
Bankers Back From Conclave,
The address of Francis M. Law.
former president of the American
Bankers Association, on The
Banker Goes to War was the high
light of the American Institute of
Banking convention in New Or
leans, Washington bankers said to-
day on their return. He gave a
brilliant and stirring address on
what bankers have done voluntarily
In the war effort. The Capital
delegates were also greatly pleased
with the election of Walton L. San
derson to the National Council.
Payne on League Committee.
William N. Payne, jr., president
OF the Eastern Building and Loan
Association, has been appointed a
member of the Insured Section
Committee of the United States
Building and Loan League. The
committee will have special concern
in matters pertaining to State char
tered associations which are insured
with the Federal Savings and Loan
Corp. The war is causing many
new problems.
ID. c. Bankers Enter School.
Entering the Graduate School Of
Banking at Rutgers University to-
day in a new class of 189, are
Thomas J. Norris, Bank of Com
merce & Savings; Colin MacLennan,
of R. G. Rankin & Co.; Robert M.
Lyon, Citizens Bank, Takoma Park,
and Richard G.. Macgill, First Ma
tional Bank of Southern Maryland,
Upper Marlboro. The Washington
upper classmen have already been
listed.
Brig. Gen. Leonard P. Ayres, noted
economist and statistician; the Rev.
Edmund A. Walsh, Georgetown
University; Paul F. Cadman, A. B.
A. economist, and Kenneth R.
Cravens. advisor to the War Loan
Committee of the Federal Reserve
Board, will be the seminar speak
ers for the resident session at New
Brunswick, it was announced today.