Evening star., 1920-11-01
firm TONE shown
IN LOCAL SHARES
Banking Profits-Be|ieve
Period of Initiation Is Over.
B. & o. Earnings.
BY ]. A. FLEMING.

sion in Washington Gas was about
the only evidence of softness in the
list. This stock sold at 44%.
Railway preferred was steady at
s5h. Traction quite firm but en-
tirely nominal.
Lanston moved up 4 to S2L with
the stock held at 81 on the closing
asked price. Mergenthaler steady
at I29.
District of Columbia Paper shares
brought 95 and Union Trust Com
rany stock sold sparinely at 11S1E
Potomac general IS brought 93 and
Capital Traction IS Sc.
Baltimore & Ohio Earnings.
September earnings of the Balti-
more and Ohio system. compared with
the earnings for the same month of
1919 show the following changes:
rTilvay operating revenue. S24.510.-
3:<.3": an increase of s3,l63. .o6o.3l.
Freight earnings increased over
s..lS0.00o: passenger traffic. about
100000 Operating expenses in
creased s4.s61.475.57: net operating
revenue from railroad operation in
creased s994.SS4.15. and the net in
The increased rates were largely
hut not wholly operating during Sep
tember. and the company was forced
to complete contracts for considerable
hauling at old rates.
To Close Subtreasuries.
Federal reserve banks will. on and
after the Goth instant. replace the
subtreasuries. or rather undertake
the work that they have heretofore
cared for Boston subtreaSury was
y; nofn n
close November 3.
Deposits of national banks to the
credit of the per cent fund will be
made with federal'reserve banks.
Bank EarninGs.
The controller of the currency calls
attention to the fact that the nation
al banks of the country made. during
tic last fiscal year ended June 80.
about 25 per cent gross on their
capital
He also cites the fact that the
same banks lost $31.200.000 in loans.
vestments and So. 100000 on miscel-
laneous losses. Very many banks
have not brought down their book
values on all bonds. including liberty
issues. or the loss from tbis source
would have been much more severe
The controller calls attention to
the fact that but five banks went into
receivers hands. out of a total of
SlJt. record only exceeded by the
record of the previous year. when
there were no failures. and expresses
the belief that these facts must give
the people increased confidence in the
banks"
For the first six months of the
calendar year the twelve regional
banks of the federal reserve system
showed profits of $50 per cent of their.
capital. The banks were supplying
the wants of the public and lending
their credit to an unprecedented ex-
tent Had the rates been lower their
profits would have been greater. as
their loans would have been. larger"
Savings Bank Representatives..
It is understood that there will be
meeting of representatives of savings
banks on Wednesday night to discuss
the proposed uniform hours.
r. n. Harper expressed the opinion
this morning that the savings banks
to keep open on SaturdaySnights.
Chapter Activities.
Adjournment of the elementary
class in banking has been taken from
Tuesday night until Wednesday even
ing, on account of the election.
On Wednesday evening Harry V.
Haynes. president of the Farmers and
before the class on Drafts and Ac-'
ceptanceS.
Studebaker Corporation.
The earnings of the Studebaker
Corpora ton for the third quarter of
1929 permitted a net profit. after fed
eral taxes. equal to the preferred div
idend and SS.51 share on the 100000
900 common stock. against s4.71 per
share for the common stock for the
previous quarter
For ten months of the calander
year. net profits after federal taxes
equaled s15.3S a share on the common
stock. as compared with SeI.53 for the
same period last year.
The directors of the corporation de-
ciared the regular quarterly divid ends
OF la per cent both preferred and
common stock
Inhation Period Hn. eliminated.
The National City Bank Of New
York. in it's November circular Just
rsued. has this to say regarding in
fation:
1T is safe to say that the danger
OF further imitation is over for the
pesent- The decline of prices wilt
Int an end to the appeals for more
c"edit for the purpose of buying
thiHgs and starting things. People
a" not care to borrow money to buy
land, speculate. enlarge their opera
tions or go into new enterprises when
prices are falling. They will pro
ceed now to earn and save and apply
the proceeds on their debts. There
iore 1t may be expected that as
liquidation proceeds money will tend
10 become easier. until the strain
which has been felt since 1917 is
quite removed
IL is significant fact that for the
hrst time in the history of this coun-
try a period of expansion has cul-
minated and prices have turned de-
c.ively downward without a bank
ing panic. Heretofore the turn has
icen always accompanied and tn
downward pace accelerated by a COL
lapse of bank credit. This time in
stead or the situation being asgra-
waited by the efforts of thousands oI
banks to reduce their loans and in
crease their cash reserves the situ-
aton VIII be supported by an ade-
quate banking system.
Credit Where Needed.
Business houses which are entitled
10 credit will continue TO receive il
valuations will necessarily have to
undergo revision, but the whole finan-
cial situation is altogether different
from that which has existed at anv
other time of business reaction The
BUSINESS community is protected from
general contraction of credit Nor
only has there been none I'D to this
Tune, but there will be none; Houida-
ton will follow its natural course as
SNAPPED by conditions in the markets
II is principle of modern banking
mat the time to restrict credits is
when prices are rising and credit ex-
panslon ls under way. and that after
the turn has been definitely made
when business is known to be reced-
ing, II is sound policy to grant credit
Freely to concerns of assured strength
to maintain stability and the orderly
processes of trade