Evening star., 1921-05-11
.CR|SS|NGER GIVES
VIEWS ON INTEREST
Is in Favor of Lower Rates
as Aid to Business
Restoration.
BY I. A. FLEMING.

BY I. A. FLEMING.
n. r. Crissinger, controller of th'
currency. has gone on record, in a let
ter written to the editor of the Manu-
facturers' Record of Baltimore, in ia
vor of more liberal policy in the
matter of discount rates by the fed
eral reserve banks.
The letter, which will be published
on the 18th instant in the next issue
OF the publication mentioned. is evi
IDENTIFY in reply to one from the editor
thereof, in connection with a recen
address by the controller.
incidentally. rates have dropped ma
terially in the last few days.
In discussing deflation Of credit:
and it's influence on the business in,
tereSts of the country, Mr.. Crissngel
has this to say:
Il quite agree with you that tho
discussion about profiteering ha.
probably been overdone. There are
though, very many high peaks which
are retarding the ultimate settlement
of things. and my little talk was no
so much a criticism Of those things az
1t was to bring to the people the
thought that before we can have rea
prosperity we must have a return &c
conditions whereby everybody will
have an equal opportunity.
30 lar as L am concerned L nave
at all times been for low rate OF
interest. and in that respect 1 might
call your attention to the fact that
the bank of which | was president
during the whole time covered by
your letter has been loaning money
to its depoSitors at per cent, and it
has done that at times when it has
had to borrow money from the fed
eral reserve system for which it paid
per cent | have always taken the
position that the bank owed some
thing to the people and that duty was
so impelling that il was unethical to
compel depositors of a bank and eli
ents Of the bank to pay hi igh rate
of interest when they were in need
of money badly; that the relation be-
tween banker and client was recipro-
call, that when depositorS di d not
need their money they trusted it to
the banks safekeeping. and that it
was the banks duty when they did
need money to see that they got it at
a reasonable and fair rate.
No Secret Of Position.
Il make no secret about my pos: =
tion on the question of discount rates
OF the federal reserve bank. | have
heen and still am very desirous of
seeing the rate of discount lowered
and / trust that it may come about in
a very short time. ] feel that il will
do very much toward the restoration
of business. and it will be helpful
psychologically in starting new
spirit which must ultimately put cour
age in the people of the country.
I want to advise you that l COM
menced as laborer at SO cents a
day on the highway. 1 have been a
clerk for several years in a grocery
a sawmill and at all other kinds of
work that young men usually do.
am. in a small way, connected with
a packing plant, of which I was a
director; a director in manufacturing
enterprises, stock yards. and intimate
that l feel that I have some under
standing Of what really is needed
Il want to assure you that l want
TO have my view at all times looking
forward with the hope and purpose
of using my energies to build up and
improve the business conditions. In
this great task / want the support of
everybody who is interested. and j
feel that we all ought to be interest
ed in that way"
Local Stock Market. .--
Capital Traction shares and the 5
per cent bonds of the same company
sold at a parity today, S7Z. Railway
common moved sparingly at 80 and
the preferred showed fair tone at
611x.
Continental Trust Company shares
brought los.
nor did there seem to be any special
interest in anything 2t the going
prices.
Call money was offered at Z. with
6A bid. Until there is lowering OF
the asking rates the chances are not
favorable for business. Money in New
York on call loaned yesterday at 6k
to { per cent.
1t may be possible to make some
loans tomorrow. as the heavy drafts
on account Of Treasury calls for GER
1ificate proceeds may make the New
York rate temporarily higher.
Cut Rates General.
Only Dallas still retains the per
cent discount rate. Minneapolis hav-
ing followed the other regional
banks into line. but with a Sa per
cent rate. which is now maintained
only by Minneapolis and New York
also Dallas on the Z per cent basis,
have a nat per cent rate on COM
mercial paper and agricultural paper
rediscounts.
Bank C1earings Decrease.
Yesterdays bank clearings showed
a loss of $218,342,SS1 in New York
S1s.s35.654 in Chicago, S32,S41.26S in
philadelphia, $32}332.224 in Boston
SIS.VSV,StS IN hdTSttS lily anu
3Ss.1s7 in Baltimore.
Acquires Desirable Site.
The Farmers and Mechanics Ma
tional Bank has acquired the prop
erty on the northeast corner of NJ
street and Wisconsin avenue. and will
soon commence the erection Of a
modern bank building.
The site owned by the bank
is $50 feet on Wisconsin avenue by
12 feet on NJ street.
For 100 years and more the Farm
ers and Mechanics Bank has been
housed in its presen- building.
Selling IL Per Cent Debenture.
Standard Oil Company has sold. "a
group of Investment bankers. SEQ
600. 900 twelve-year 6iz per cent sink
ing debenture bonds, which are being
Teoffered at par.
New York Consolidation.
The National City Bank of New
York has absorbed the Commercial
Exchange National Bank and with il
three branch banks uptown. estab,
1ished while the Commercial Ex.
change was a state bank. With the
International Corporation. which the
National City now owns. it has
eighty-two foreign branch banks.
|.'-j Personal Mention.
Hoicombe q. Johnson of this city
has been elected a member of tn.
board of directors Of the Continenta
Casualty Company OF Chicago. II is
stated that this is the first instance
OF such recognition being accorded
TO = field man.
France W. Savage ot the Northwes
Savings Bank is in Gary on his annua
visit looking after his interests there
Peter A. Drury Of the Merchants
Bank is at his desk after a week:
vacation.