Evening star., 1921-11-03
CUTTING OF RATES
Il HELPS SECURITIES
Means Passing of Era of Big
Investment Returns.
Local News.
BY L A. FLEMING.

serve banks. an action that was clear
ly foreshadowed the first of the month
in the Offering of Treasury certlh-
Gates at Az and Az per cent. All
that time the prediction was made
that reserve rates would imm ediately
be cut, and that the effect of the low
rates for the offering of certificates
would result in easier money gen
, orally.
\ The low-rate Treasury certificate
fOtation was a complete success. as
anticipated. The total subscriptions
were $500. 100000, for an offering OF
but S2OU.00O.000.
This in itself indicates that the
long-term financing of the govern
ment that will come in December
will probably be on a 4a4 or. at the
most. d ) per cent basis.
The reserve banks of New York and
Philadelphia have reduced their rates
of discount to Az per cent: Chicago
st. Louis, Kansas City, San Francisco
I:ichmond and Atlanta to 5la per
cent. Dallas joined the 81, per
cent rate banks this morning. Bos-
ton is still per cent and Cleveland
and minneapolis per cent. Reduc-
lions in these rates are expected to-
day or tomorrow.
Where rates We're lowered to 41a
per cent the reserves OF the banks
were given at so per cent 5 per cent
rate banks showed so to 10 per cent
reserves. while the banks at higher
rates of discount have to rediscoun,
with each other to maintain the re-
quired 40 per cent reserve. They
are in the frozen credit area
The immediate effect of the reluc-
ton in rates is to further cheaper
money. Not that every borrower viii
be able to take advantage of the re-
duction. as credit is largely based
~ or LIMO
per cent will be the going rate for
most loans.
That the cuts will have any ma
terial effect on business in the i'm
mediate future is doubtful, but they
will help.
The effect on the bond markets or
, the country was sharp and marked
higher prices Immediately following
the opening of the markets
Local Bonds Move Up.
On the Washington Stock Exchange
the lower discount rates brought re-
newed tirmness. Investors are taking
hold with more confidence as they
note the evident trend of money ,tc
lower rates.
The days of the and even s per
cent opportunities in the investment
field going at and below par seem to be
over. for the present at least.
The new Potomac Electric general
II
strong at new high, 100&s, with this
price bid at the close and 10O7s asked
Capital Traction SIS crossed 80 and
touched 9OA, d sharp Improvement.
Potomac Electric debenture 6s sold at
1853.
Washington Railway general ss
brought 941a and Washington Gas 712
per cent notes sold at l03.
Stocks were also strong. Gas moved
up to 40, Railway common. % to 261.,
and Railway preferred sold at 5Sas.
Lincoln Nationals Extra Dividend.
With the first of the month share
holders of the Lincoln National Bank
were made glad by the receipt OF an
extra dividend of per cent on their
stock, with Il letter from Floyd T..
Davis, president of the bank, in
which he called attention to the sue
cess of the institution, the mutually
pleasant relations between share
holders and bank officials. and ex-
pressed the hope of continued pros
perity. with the stockholders as the
chief advertisement of the bank.
LanstOn Dividend.
Directors of the Lanston Monotype
Company have declared the usual
I " per cent quarterly dividend, pay
able November 80. to shareholders of
record November 10.
Some stockholders rather expected
an extra distribution at this time,
but the directors are evidently i'm
pressed with the economy and policy
of having good working capital. A
corporation paying dividends in these
days, when SO many corporations are
I falling down in their payments, is at
least holding the good will of its
shareholders.
Bids for the new bank building of
the Farmers and Mechanics Ma
tional Bank are being opened this
10 hnr q
on the northeast corner of Wisconsin
avenue and VI street northwest have
been agreed upon and when completed
the new structure will be one of the
handsomest banks of Washington.
National Bank of Washington.
After months of turmoil. tearing ont
and building up. the National Bank of
chaotic condition. from it's former
dark and unventilated, crowded self,
into an institution that takes rank
with any of the many handsome bank
ing institutions of Washington.
The last of the work of rejuvenating
and rehabilitating of this old and
strong fiscal institution was COM
pleted today. the washing of the outer
walls. SO that in place of dusty old
bank it is as clean throughout as the
proverbial whistle.
At an expense of 100000, the new
eastern addition, fronting on Louisi-
ana avenue and &C street, has been
erected. fine vault with safety de-
post added, with coupon rooms, and
overhead rest room. lockers and a
directors room, done in cherry and
mahogany.
The bookkeepers have been moved
back on the c street side of the new
addition.
In the main banking room much
foyer space has been added through
the removal of hte bookkeepers
On the south of the foyer the re-
ceivlng tellers' cages are located; in
the center to the east of the foyer are
the paying tellers, while note, draft
and collection tellers are on the north
Of the foyer
Vice President and Cashier Trimbl
has an office to the left of the en-
france.
Clarence F. ,Norment occupies the
Office formerly used by the late Daniel
Fraser and George L. Starkey vice
president. Mr.. Starkey now has an
office in the main banking room.
The metamorphoss of the old bank
is cOmplete-it has lost it's dark
ness; its poor ventilatiOn; it's crowd
cd appearance and for every loss it
has gained, and gained much.
Vice President Starkey. in announc-
ing the opening of the bank on Sat-
Trday evenings hereafter, said that
it was case of yielding to the de-
1nands of customers.
Clarence +. Norment, who has been
Ill for some days, is rapidly recover
dng.
CHICAGO LIVE STOCK MARKET.