| Show INSIDE STUFF ON POLITICS FINANCE Banks Talking About Price lUin to II Help p Customers NEW YORK By JAMES Ic 1 McMULLIN Security markets are still suffering from institutional liquidation Banks are arc still sUU closing out collateral loans in m considerable volume There has been some talk among banks of at establishing minimum prices for tor leading securities as was done for a short time in 10 1929 For Instance In stance the banks might say they would accept U U. S. S Steel as worth 28 and American Telephone and Telegraph Telegraph Tele Tele- graph as worth 95 regardless of the actual current market This would undoubtedly save some of their hard pressed customers and might constitute constitute constitute tute a rallying point The only trouble is that this proposal proposal proposal pro pro- requires concerted and uniform action by the banks to make it ef cr ef- ef There is practically no chance of any such action Regardless of cooperation cooperation cooperation co co- co- co operation talk there has never been beena a time when the banks have been more Individualistic Every man for himself is the underlying attitude Electric Bond and Share has been buying in the securities of or its own subsidiaries to strengthen its tion It has been liquidating its other other other oth oth- er holdings on a large scale to do this Threat of further liquidation from this source has been a depressing depress depress- ing ins factor in the market but the selling stopped short on May 26 I A partner in a large brokerage house had a new scheme for restoring confidence but didn't get very far with it He figured that the Young committee wasn't going to do anything anything any any- thing about a bond pool so he got the Idea that if iC the stock market could be made to go o up for about three weeks through the efforts of a concentrated concentrated concentrated con con- stock buying pool it would help the psychological situation a l lot lotHe t. t He got lots of moral support for the plan but no financial participation Everyone thought It was a swell idea for tor somebody else to carry out At a recent board meeting of a large corporation one of or the directors made madea a strong talk about what bargains stocks arc are at present prices and urged the company to get back into the market market mar mar- ket on the buying side When he got through one of the other directors remarked remarked remarked re re- re- re marked I see that our colleague e ehas has been listening to the birdies again The suspension of D. D M. M McKeon as asa asa a bear raider is getting a lot of laughs on the inside McKeon has never been an Important trader Apparent- Apparent Borah Upsets tle Hoover Apple Cart on Wet We Plank WASHINGTON By PAUL MALLON The dry bulk of Senator Borah caused the president to halt his plans for a referendum plank Everything was set for lor indorsement indorsement indorsement indorse indorse- ment of a referendum on application of a majority of states Ultra drys were not satisfied but the moderates were Then the president read that Borah did not intend to go to the Chicago convention Doubt seized the White While House Borah was called in The Idaho orator made it very clear in that conference he would not alter his opposition to any kind of a referendum ref unless it carried an alternative tive plan for handling the liquor probe lem The doubt of the White House in in- creased 0 w 0 a aThis This inside maneuver furnished a rose-colored rose background for the meeting now being held here It might ultimately cause the referendum referendum referendum dum plank to be modified Administration Administration Administration Adminis Adminis- senators doubt that They see no hope of pleasing Borah and the radical drys without sacrificing their chances of carrying powerful eastern states in the coming election They would rather lose Borah The president president dent is paying entirely too much atten atten- I ly the authorities decided the exchange ex cx- change needed some publicity about enforcing the rules The governors are tightening up requirements in other directions Hereafter companies listed on the big board will have to be more prompt in filing Wing their annual statements Besides cutting down their staffs most brokerage firms are employing stagger systems of vacations Em Em- who remain are being invited to take one months month's leave without any pay this summer The new ten point margin ruling on short sales has been interpreted with plenty of leeway It has applied to new business but traders who had short commitments when the rule was adopted have been given ample time to readjust their positions e a a aThe a The proposition of three Insull operating operating op op- crating companies to float loat worth of bonds is characterized here as a prize gesture of 01 optimism Nobody No body seems teems to want it However the issue is handled Halsey Stuart will not get as much of the cream as it has on similar Issues in the past tion to him hEra they contend a a e a Bishop Cannons Cannon's third party threat was a tardy appeal for publicity for tor forthe forthe the bishop and nothing more He isa isa is isa a good newspaper name but his political poll poli power is gone Most 1 of the sensible dry leaders think he has become become become be be- come a R hindrance to their cause I If 11 they try a third party he may sit on the tailboard of the wa wagon on but they will vill not let him get up front The bishop might like to train with Borah Bora but Borah will not train with him a Democratic Insiders have heard about plans to stampede the Chicago convention for lor the bishops bishop's old friend Al Smith Nothing definite is known about Smiths Smith's Intentions His friends are hoping that when the platform comes before the convention he will arise and offer a substitute contain ing not more than 50 words They believe be be- lieve it would do the trick Dispassionate party leaders do not think Smith could get away with it His enemies will be too alert and too strong a a a aThe The Democratic presidential situa tion right now Is too tight for tor anyone to make predictions Party moguls themselves do not know how it will come out Latest of the see-saw see rumors now has Garner shying away from the Roosevelt opposition They say he lie would never permit one of his delegates dele gates to vote for lor Smith i if he could stop it The opposition will have a hard time blocking Roosevelt without Garners Garners Garner's Gar Car ners ner's cooperation Q 4 4 a MacDonald's secret telephone call caU to Stimson was about the proposed round table conference at Tokio It brought no results result They agreed it H would be better to wait walt until later The Japs Jap Chinese and Russians are too upset today to listen to reason A round table conference may be held sometime In the future if it developments developments develop develop- ments warrant This balancing the budget business is now in about the same condition as the Democratic presidential nomina nomina- tion Uon You can prove almost anything you desire by using a selected set of facts The underlying truth of the matter is that the budget cannot be balanced morally with the relief program now planned It may be balanced on paper for or the next year and probably will be That will be accomplished by postponing the day of reckoning on |
