Evening star., 1943-03-30
Margin Buying Light
In Stocks Under s.,
D. {. Brokers Report
Exchanges New Rule
Finds Most Trading
Here on Gosh Busis
By EDWARD c. STONE.

BY EDWARD C. STONE.
Very few stocks selling at IS {
share, or below that figure, hav
been bought on margin in stock ex
change Offices in the Capital durin
the present bull market, brokers sait
today. Some firms frown on margi,
! trading in stocks under IS and won
permit it at all on stocks unde,
| So. Rules have varied with differen
houses regarding margins on penny
stocks, but survey today indicate
that there has been almost no trad,
ing recently of this kind, although
volume has been heavy.
The text of ruling by the New
York Stock Exchange stopping
further margin trading in these low
priced issues has been received b.
Washington brokers and notice.
placed on their bulletin boards. Tht
new regulation goes into effect aftel
April l, but is really already ir
force. Brokers are pleased with the
action of the exchange officials, a.
it leaves no room for margin argu-
ments.
All transactions in SIS and lower
priced stocks must now be for cash
Brokers reported today that most o1
the recent buying in stocks of al
prices has been for cash. Reports
from the rest of the country indicate
the same situation, the limited
margin trading even in the blue
chips" having caused considerable
comment. Traders prefer to pay
cash and be fully protected
Brent Heads Fisher Co.
Edward H. Brent, vice president
of the Thomas J. Fisher Co., was
elevated to the presidency at {
meeting of the Board of Directors
this afternoon, to succeed the late
William L. Miller. He was also
named a director.
Mr.. Brent has been a vice presi-
dent of the real estate and insur-
ance concern for two years, with
the company about 10 years and fol
a long time was manager OF the
rent department.
Other officers elected at the same
meeting include C. Nelson Bean
vice president and secretary; Lans-
ing Walk, vice president, and Frank
I. Greenwalt, assistant secretary
and assistant treasurer.
The present board of directors is
composed of George E. Hamilton
Ord Preston, George E. Fleming
William Sharon Farr and Mr.
Brent
Home Loan Bank Change Urged.
Return of $62,50O,OO0 to the Gov
ernment, retiring half of the capital
stock which the Treasury invested
in the Federal Home Loan Bank
System when it was created II years
ago. will be proposed shortly by the
United States Savings and Loan
League, according to word received
here today by the District Building
and Loan League from Ralph H.
Cake, national president.
The capital stock in the system
required to be owned by the home
lending institutions would be in
creased to make up for part of the
Government capital retired, Mr.
Cake says. 1t is planned to give the
home loan bank system a minimum
of $125,000, 900 capital, reserves and
surplus, considered adequate for its
needs. The system now has capital,
reserves and surplus of S191 100000
The league members would have the
retirement take place in six months
League members also advocate
broadening of the lending powers
of Federal savings and loan associa-
tions to permit loans up to 80 pei
cent of an oWner-occupied home
valued at $4,000 OF less, provided
such lending is protected by special
addition to reserves equivalent tc
per cent of the face amount of
such loan. v
Provision for Federal associations
to make loans for property main
tenance, repair, modernization OF
improvement UP to S2,500, without
requiring a first lien, is advocated
in the coming legislative program
Reduction is to be urged in the
annual payment by building and
loan associations to the Federal
Savings and Loan Insurance Corp
from Is of l per cent to 1/12 OF
l per cent of insured liabilities, to-
days report said.
War Loan Issues Announced.
The Treasury announced TO-DAY
that offerings to be sold by the Wal
Finance Committee during the Wal
bond drive from April u to May !
will include Treasury 26-year 21s
per cent bonds dated April Is, 1943
and due June Is, 1869, to be Offered
in denominations from $500 to ST.
100000
Treasury 2 per cent bonds datec
April Is, 1943 and due September IS
1852, also in $500 to S1,0O0,000 de.
nominations, with sales to bank.
limited to $2,000,000, 900; Treasury :,
per cent certificates of Indebtedness
limited for commercial banks, bu
open to all classes of investors
Tax savings notes of series C
series E War savings bonds ane
United States bonds series F and G
Fahey Scores Loan Groups.
John F. Fahey, commissioner O.
the Home Loan Bank Administra
ton, told a congressional commit
tee yesterday that liquidation of tht
Home Owners Loan Corp. woule
| 'cost the Government at least S44O,.
100000, some $373,0O0,OOO more thar
the corporations present deficit.
He made a vigorous attack on tn.
United States Savings and Loar
League, which is demanding tn
liquidation action.
This attempt to abolish thu
HOLC can be described as nothing
but a raid on the Treasury in th
midst of war" he declared.
Thomson Returns to Bank.
Eliot H. Thomson of the Wash