The Washington times., 1919-11-20
LOCAL FINANCIAL
and BUSINESS
GOSSIP


ed September 80, 1919. exclusive of
allowances for depreciation and taxes
was 81, ,663, 1854, according to a state
n,nnt submitted by the officers OF the
company at the annual meeting of the
stockholders yesterday in New YORK.
To meet the increasing demand for
linotype machines and supplies, the
officers apnounced that the company
would Immediately begin the-erection
dition to the present factory facilities
in Brooklyn.
The financial statement as submit
ted by the treasurer Of the company
showed a surplus Of $7,417. 7.OO7.S9 for
he fiscal year ended September 80,
1919. The surplus of previous years
were as follows: 1918. $7,O93.S6o15;
1917, 1880, ,323.9S; 1916. $7.O61, ,164.9S.
At the annual election OF members
to the board of directors, Edward j.
McQuade and Frederick d. McKen-
ney, of this city. were rejected to
serve until the next meeting OF the
stockholders in November, 1920.
That resources obtained from the
Federal reserve banks should not be
used tor speculative purposes, and
that the Federal reserve system was
intended for the benefit of commerce
and industry and not for the stimula-
ton of the investment market or OF
speculative movements are empha-
sized in letter from Governor Hard
ing. Of the Federal Reserve Board, to
Senator Robert l.. Owen.
Governor Harding pointed out that
repeated warnings have been issued
by the Federal Reserve Board against
the practice of Withholding credits de-
manded by industry and commerce for
the purpose of enabling member
banks to furnish cheap money for
speculative purposes. Despite the ex-
hortations of Federal Reserve Board
officials, the speculative movement
continued, it was stated, and the de-
mands for credit coming on top OF
commercial requirements, caused a
decline in the reserves of the Federal
reserve banks. In the case of the
reserve bank of New York, the re-
serves dropped to such an extent that
it was necessary to increase the dis
count rates of that institution. aver
aging about one-haf of 1 per cent.
During the week ended November
Is, Governor Harding stated. "the
Federal Reserve Board sold to other
Federal reserve banks $9O.000,00O Of
acecptances for account of the Fed
eral Reserve Bank of New York.
but in spite of this action the
reserves of the New York bank
fell to 40 per cent. In order to pre-
vent further expansion. 1t became
necessary to cal 1.-The attention of the
large rediscounting banks to the sit
uation.
"The high rates for call money
the past two weeks and Internationally
for several months past. were in
themselves very clear indication of
the strained position into which the
unbridled speculation had thrown
the stock market and rendered a re-
adjustment inevitable unless the re-
sources of the Federal Reserve Banks
were to be indirectly drawn upon for
stock market purposes"
Governor Harding called attention
to the fact that the events Of the past
10 days had no effect upon the market
for commercial paper and that the
public is beginning to realize that
there no longer exists a connection
between call money rates and the
commercial paper market.
Trading on the local stock exchange
continued moderately active today,
with Washingtop-Gas and Capital
Traction stock selling steady with
yesterdays transactions. Twenty-Five
shares of Capital Traction sold at
s1h.
Fifty shares = Union Trust were
recorded today at 11S. Eight shares
of Lanston sold at 83H. Washington
Gas bonds changed hands at 95.
Eugene Thompson, newly elected
president of the exchange, was pre-
| sented with boquet of flowers by
William and Adolph GUIDE, as an ex-
preston of congratulation upon Mr..
Thompson's election to the presidency.
Eugene Thompson, former secre-
tary-treasurer of the Washington
Stock Exchange, has been elected
president Of the Exchange at the an
nual meeting of the executive com
mittee in the exchange rooms
Other officers elected are r. E.
Claughton, vice president; Allen E.
Walker, secretary; c. H. p. Johnson,
| treasurer. Charles Bell. and w. B.
Hibbs were elected members of the
rI 1f 4 g.