Evening star., 1921-07-29
BIG RESERVE RATES
I0F' FEDERAL BANKS
Hold so to 77.8 Per Cent.
n Good Local Inquiry
for Bonds.
BY I. A. FLEMING.

most casual observer that the long
period Of dullness, declining values
and depression has not been due in
the slightest. for the last years at
least, to the condition of the money
market. At times there may have
appeared to be stringency, but 1t
was not real, and at all times banks
have been in possession of ample
funds, which they did not care to tie
up at price valuations on securities.
other than on call loans. real estate
or merchandise.
1t certainly wasn't the reduction of
the four federal reserve regional
banks rate of discount from to
bh per cent, that made money as
easy as it is today in New York.
Several local banks, having call
money placed in New York We're
surprised to receive notice that, find
ing it impossible to employ the funds
in the open call market, they had
been invested in acceptances at "
per cent.
November 5, 1919. a freak" call
loan was made at per cent.
1t is evident that the discount rates
of the reserve banks are not in line
with the open market rate, although
1T Is impossible to get time money
from banks for less than 6 per cent;
All the federal reserve regional
banks are fat in reserve ratio except
Richmond. Dallas, Minneapolis and
st. Louis, and these banks are strain
ing themselves to finance cotton and
grain. although at least part of the
burden they are carrying should De
shared by, other reserve banks. -
Boston has reserve ratio of !7e
per cent; New York 72.2; Philadei-
phia, ga; Cleveland. 65; Richmond,
43.7; Atlanta. AT; Chicago, 59.5; st.
Louis, $50; Minneapolis, 39.1; Dallas,
40.4, and San Francisco. 62.3.
The average is 63.4 per cent COM
pared with 44.2 in January. 1920.
1t may be that the ease of money.
the inability to employ 1t to good
advantage in New York, may help
business. Indeed there are many signs
in the news of the day favorable to
Ahe outlook for the future, although
there are admittedly some problems
to be solved before the era of pros
perity will return.
The people and business interests
believe that the administration Will
solve these problems and are prepar-
ing for the better times coming.
The bureau of labor statistical de-
partment declares that the commod-
ity market today makes the dollar
worth 40 per cent more than a lew
years ago.
Philippine One-Year Certificate.
The Treasury yesterday received
bids for s1O.000,000 per cent certifi-
Gates of Indebtedness of the Philip
pine Islands dated August 1, 1921,
with one year to maturity.
The highest bidder was the Guar
apty Trust Company of New York and
associates and their bid was 97.51.
100 Per Cent Stock Dividend.
1t sounds like the prosperous days
of 1919-20. early in the latter
year, to hear of dividend of 100 per
cent in stock. Delaware. Lackawanna
and Western Railroad Company is the
holders of record August . Will get
the juicy dividend.
Baltimore Branch once.
Smith. Andrews & Marston of Balti-
more announce that they are to take
over the Washington office of Thomp-
son & Mckinnon. one of the Leading
private wire houses of New York city,
and that it will, after August l. be
operated as a branch of the Baltimore
establishment.
Personal Mention.
W. ]. Flather of the Riggs National
Bank left today for Poland Springs.
Ne.
A. v. Nevius of the same institu-
in northern New York.
r v. Fleming. vice president and
cashier of the Riggs National Bank.
will spend the month of August at
Cape May.
Local Bonds Active.
Bonds to the face value of S23,500
were traded in on today's session of
the Washington Stock Exchange, this
being one effect of the decidedly easier
conditions in the money market. 1t
is proba BILE that some of the orders
came from local banks, investing
money that they have heretofore car
fied on call loans in New York city.
Washington Gas 5s were quite ac-
tive at 651a Capital Traction IS opened
at S6& and advanced to ST. and later
to S7A. Railway general 6s brought
92A and eased to 92k. Riggs Realty
5s. long term maturity. sold at SS
In the stock list there was scarcely
anything doing. A sale of Capital
Traction was made at S71a, and more
offered at the same price. A few odd
lots of Mergenthaler brought 1.1Sk.