Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-28
BETTER CONDITIONS
IN THIS DISTRICT
Federal Reserve Board Com
ments on Credit-Local
Stocks Were Active.

The Federal Reserve Board in the
September number of the Federal Re
serve Bulletin says: Conditions both
in public and private finance are be-
ginning to give unmistakable evidence
Of a return to normal conditions.
Reviewing conditions since the ar
mistice of November II, 1918. it is
found that as compared with peak
of $1,s6S,576.0 900 on May 16. 1919, in
the total volume of paper collater-
aled by war obligations and held by
federal reserve banks. and as COM
pared by peak of s1,43S,204 600 of
June 20. representing paper of the
same class under discount at member
banks Excluding amounts rediscount-
high points today are S1,314,S30. 900
and $693.930.000.
'The reaction against the further
extension of credit and the tendency
toward the reduction of prices APP
pears clearly to be promoting the
process of liquidation, and is result
ing in decrease in speculation.
whether in securities. commodities or
land.
"These and other facts and indica
tions warrant the belief that the
process of financial recovery and i'm
provement is well under way in the
, domestic situation"
Information available to the board
indicates that IS per cent of the re-
cent sales of Treasury certificates
have been taken by public investors.
which is even a larger percentage
than claimed by bankers, although
there is small question of the popu-
larity of 6 per cent government Sc
curities.
Referring to business conditions in
this regional district, the fifth. the
: Bulletin says:
Condition reports received from
eighty-two member banks show an
increase in outsta nding loans and in
vestments of S7,311.000 in five weeks
This would certainly prove that
there has been no sudden and disas-
trous calling of loans by members
: banks, as is sometimes charged. Dur
ing the five weeks. deposits increased
s15,0S7,000 in the same eighty-two
banks. Railway conditions have not
improved sufficiently to release much
frozen credit, now tied up in finished
products and raw material. for which
transportation cannot be secured
:. Norway Gets Loan.
An American syndicate made ,its
first offerings of kingdom of Norway
bonds. s2o,ooO.Ooo percent sinking
fund bonds, with 100000 to be re-
tired annually in quarterly payments
of $250.000 each.
Washington took a number of the
bonds. There is retirement clause
at ITO in open market if they cannot
be bought for sinking fund at 107 y
This is the first loan placed in this
country by Norway since the opening
of the war. and it is predicted that
the high credit of that nation will
give the bonds a ready market.
!. Local Securities.
Relatively speaking. the local mar
ket was very active-that is, as COM
pared with the intense dizziness of the
last few days. Railway preferred and
Mergenthaler were the two stocks
that attracted most attention.
In all los shares of Railway pre-
ferred were traded in, with several
quotation lots and a number of small
lots making up the total. The price.
al y at the opening, eased to 81 Y, and
the final sale was at 81 y. This in
itself is an indication of strength.
as 1t would be a difficult matter just
at present to dispose of 100 shares
of any utility except at concession.
That it was taken at such slight
fractional decline was also satisfying
to sellers.
In all eighty-seven shares of Mer-
genthaler were sold from 1229 the
opening to 121N the closing.
Capital Traction IS figured In the
sales record at s3A, while Railway
A were q little firmer at 54.