Evening star., 1920-06-01
richmond NOT TO.
INCREASE RATES
Action of New York and Chi
cago Banks Caused Sur
priSe-LocaI Stocks.
BY 1. A. FLEMING.

i i. ~
New York and Chicago federal re-
serve banks Jared financial interests
with an announcement late Saturday
Of Z per cent discount rates on COM
mercial paper. thereby casting the
question of a doubt on the better
ment in general conditions as very
generally admitted and believed. Had
this announcement been forthcoming
a few days ago, it would not nave
caused much comment, but 1T is now
generally considered that liquidation
was proceeding as fast as possible IN
a well ordered and satisfactory man
ner that pleased the Federal Reserve
Board
The increase in the rate to per
cent by the two largest federal re-
serve banks may be followed by like
action by the ten other banks. else
they are likely to be deluged by oner-
ings of paper. The per cent brings
the rate much nearer the open mar
ket interest rate.
| This morning local banks were Of
fered some very choice paper at the
rather high rate of IN per cent. in
dicating that it's the money that busi-
ness demands and that the rate Is
| secondary in Importance.
| Richmond Stands Pat.
| The Richmond Federal Reserve Bank
j
/ morning with s per cent the ruling rate
on all discounts and rediscounts. except
on members and customers notes Sc
cured by certificates issued by the Treas
ury, where the rate is the same as that
Of the certificates themselves, 5h per
cent.
Gov. Seay Of the Richmond institution
states that because of the fact that the
! legal rate of interest in per cent In
! Maryland, Virginia and North Carolina.
| I'VE shall be reluctant to increase the
rate"
| Some local bankers believe it would
be better to raise the rate now before
| the flood of paper from other cities
makes it obligatory.
They believe that it will be inevitable
| in the near future.
| 1t would not be surprising II there was
some marking up of rates on loans in
the District, with the discount and re-
| Richmond bank, and with money worth
more in most Of the markets.
Notification of advance in the rate In
| the two great cities of the country Is
accepted as notice to the merchants gen
| orally that they must continue credit
| defation.
| Want More Information.
The Richmond Federal Reserve Bank
! this morning addressed all member
! TeEdIulnS their
| of liberty bonds or victory notes OF
| the various issues, also making in
Quiry as to whether the bonds or
notes held were recently acquired or
on original subscriptions at the time
of issue, whether belonging to the
bank itself or held for customers.
This Information is probably want
ed for compilation Of the total hold
ings Of liberty bonds and victory
notes. and to check future borrowing
on bonds for customers or banks, with
| collateral acquired in the<market at
| subsequent date.
District Bankers' Conventfon.
Arrangements have been completed
| for the District of Columbia bankers
| convention on the Potomac river and
Chesapeake bay on the 9Th and 7th in
slant. leaving Washington on the
steamer Midland next Sunday after
noon.
There are accommodations for few
applications are being received freely
from bankers, stock exchange mem
! bers and bank directors
/ While the convention itself will be
purely business affair. the social
features of the program contemplate a
sufficient time and opportunity for the
lenJoyment OF the possibilities of the
occasion. on the steamer and on land
The guests will be entertained by
bankers of Portsmouth and Norfolk
on Monday evening. will visit York
town under guidance on Monday, and
be entertained at cards and an in
formal entertainment with banking
talent on board the Midland, while the
dinners on the boat will be the occa-
sion OF much good fellowship.
Harry v. Haynes, president Of the
Farmers and Mechanics National
Bank. has charge of assignment of
accommodations. George o. Watson
president of the Liberty National
ment committee and r. G. Addison,
jr, chairman of the program commit
tee. Between them they will make it
a success.
Local Securities.
Bid prices on local securities were
shaded a bit again today but the
asking prices showed no particular
change.
stricted, with sales of Lanston at TN.
Merchants Bank shares at 1855 and
lSecurity Savings and Commerce Bank
at 305. Potomac sold at 2.
Repl0gle Shares Strong.
An exception to the general rule Of
weakness was shown in the Replogle
Steel shares. which actually advanced
1
S6h on Saturday.
United Fruit. Chandler Motor. Motor
jSpecialties and Sumatra Tobacco re-
acted from 2 to points. Studebaker
of sA GhalmsTs pests Aeasan Saiawin
Locomotive, 2 points: Vanadium Steel,
2: Republic, 2N, and Lackawanna.
1H. Mexican Petroleum lost IN, Pan
American, 1h; Royal Shell, 2, and
Royal Dutch, " point.
| Steel common was low for the
morning at 91h. being ex-dividend
IL points. a net decline of 1 " points.
Call Money. o Per Cent.
Despite the apparent stringency in
time money and the high going rates
call loans were made at per cent.
Rails met some support in the aft
ernoon and some other stocks recov-
cred much of their earlier loss.
| -