Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-02
BANKERS EXPECT
RATE REDUCTION
Believe Reserve Board Is
Ready to Give Approval
to Lower Discounts.
BY ]. 4. FLEMING.

VIII NC an announcement or cut II
the discount rates of the federal re,
soerve banks in the near future.
The urge of business men, of sena.
tors and representatives, of exporter,
and manufacturers has been decidedly
pressing on the Federal Reserve Board
1t is believed that the period of In.
nation has ended, that defation has
been carried far enough and that II
is time now to again extend the help
ing hand to merchants and manufac.
tuferS and to business generally.
Gov. Harding of the Federal Reserve
board. in the columns OF the press,
expressed the opinion that defiation
mad gone for enough, that prices were
low and that it was about time for
the public to loosen up and buy"
from which II may at least be inferred
that the entire reserve board may
give the order to the twelve regional
banks to loosen up" on rates or at
least express a Willingness to approve
SUCH action on the part of the govern
ors of the twelve regional banks.
Local bank officials admit that they
Know OF much pressure being brought
to bear on the board. and also that
they are expecting il to have speedy
effect.
Local Securities Active.
There was a decided improvement in
III NohuN Vi DuSiliSS aceteG on the
local stock exchange today. The feature
of the market was the sale of a block
$4,000 Capital Traction SIS. in lots. Aft
or a $500 bond had sold at S5Is. tho
market improved to Sc and the $4,000
sold at that price.
Capital Traction shares also showed
firmer tone opening at S5Is, quickly
recovering to Sc.
Railway common brought twenty-one
and the preferred shares again sold at
SO, u little flrmer than for some days
past.
Washington Gas'at 4ola was frac-
tionally better
Continental Trust Co sold at 10 and
few shares of Commercial National
Bank at 269.
The Security Club.
The Security Club. made up of en-
ploys of the American Security ana
Trust Company, is making excellent
progress and working steadily along
educational lines, while not entirely
! neglecting the social features.
Practically the entire membership,
| eligible to membership in Washing
| ton Chapter. A. I. b.. has Joined that
organization and is in attendance on
the weekly classes. In addition. they
are taking up a home lecture course.
which opened last week with a talk
/ by Charles j.. Bell, on Trust Com
panies." in which he set forth the
trust imposed and the duties exacted
of trust companies.
The Dakota Situation.
Financial conditions in North
Dakota are being watched with in
terest because of law. which goes
into effect today, removing the obliga-
ton for county treasurers and other
custodians of public funds to deposit
the public moneys in the Bank OF
North Dakota, which has In turn
loaned the funds to state banks.
/. Against the efforts of the Non
Partisan League, which created the
Bank of North Dakota as state in
stitution the public funds may now
lbe deposited in the smaller banks
direct. and this has led to the larger
bank calling in a number of its loans.
causing a number of banks to close
their doors.
None of the banks affected is MEM
j Der of the federal reserve system, but
officials here are keeping in touch with
the situation. Telegraphic advices re-
ceiyed by the Federel Reserve Board
from North Dakota are to the eject
that the eighteen state banks which
have closed their doors to date have
"a combined capital of but S27f.000. and
their total deposits are only $2.531.0 600.
The largest bank involved is capi-
liked at $4,000 and most of the
eighteen are capitalized at from $4,000
to $4,000.
The North Dakota Bankers Associa-
ton has appointed committee to CO.
operate with the state Industrial COM
mission. which controls the Bank of
North Dakota and wo-t o"t plan
for the shift of public funds from the
Bank of North Dakota to local institu-
lions.
Reports from federal reserve ofii-
Gals in North Dakota are that general
banking conditions there are sound.
and no apprehension is felt except as
to special cases where banks are over
extended. or where they are suffering
from the effects of previous bad man.