Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-11
BANKERS VIEWS ON
HIGH MONEY RATE
Holds Stringency Urge of De-
flati0n and Conservation
Are Responsible.
HY 7. 4. FLEMING.

The chief subject of conversation in
local banking circles this morning
was the open statement of the con
troiler of the currency. in connection
with the recent high rates of inter
est on call money on Wall street. he
declaring the rates ''usurious.
One prominent banker made this
statement:
Wall street as it is commonly un-
derstood is the great security mar
ket of the United States 1t is es-
Sential that il be maintained and
conducted as an open market from
Gay TO day to furnish a market for
securities
No one would consider making in
vestments in securities. stocks or
bonds, into the millions and millions,
IN the aggregate. needed to furnish
the capital for our great industries
and railroads, unless such a market
was Immediately available OF which
to make sales, when it is necessary
TO convert securities into cash.
Conditions Vary Loans.
TN times Of plenty loans are larger
and rates lower than in times of
stringency. in time of easy conditions
banks are compelled to make less
profitable investments than when
conditions are strained and there IS
an urgent demand for funds II is also
necessary that we have large per
centage of our funds quickly avail
'h'4c- dII W all street loans are the
most liquid that can he mace.
Few people in Washington have
ever had loan called They are not
used to it,
Wall street is that is the way
they do business. In the case Of a
stringency. with speculation extended,
as existed here a few months ago.
pressure for defiatlon is urged as
witness the action of the Federal Re
serve Board in its plea for restriction
or credit to essential interests and
dehations as speedily as possible
without serious results.
When the Bank of England wishes
TO check speculation or overexpan-
SION it applies the brakes by raising
its discount rates: the federal reserve
banks did the same thing.
'FThe urging of the reserve board
for deffation warranted. in my opinion
the liquidation in Wall street securi-
tles and natural reaction from in
Hated values" ...-..
Personal Mention.
Albert S. Galley. cashier of the
Lincoln National Bank is recovering
from a spell of illness at Mountain Lake
Park Md
Victor B. Deyber. cashier of the Sec
ond National Bank. has returned from
a vacation at Cape May. y. J.
Certificates Nearly Ready.
The new stock certifica ties of the
Eank OF Commerce and Savings are
nearly ready for delivery They are
being issued in lieu of the original
stock. par value $40 share, the
new stock being 800 par value
Recent report of the capital of the
institution shows 100000 capiIal
$4,000 surplus and $4,000 undivided
profits.
John b. Larner at His Desk
John B. Larner. president of the
= h int T
is at his desk after one of his periodi-
cal visits to his country home
Mr.. Larner reports that his institu-
tion has been fairly successful in
holding deposits in commercial ac-
counts and materially increasing saw
lngs deposits. So far he has not been
punched in accommodating customers
but admits that he could readily lend
much more cash. in loans of a more
or less permanent character.
Bankers Meeting.
This afternoon at o'clock the Dis
trict Bankers Associations executive
committee will meet with the various
committees charged with arrange
mentS for the 4. 3. a. convention at
headquarters in the New Willard.
Capital Traction Strong.
On today's session of the local
Stock Exchange Capital Traction
shares were active in small wav.
forty shares selling at 85A to s5%.
with the market firm at the closing,
District National Bank shares sold
at IFS.