Evening star., 1921-04-25
DISCOUNT RATES
SHOULD Be CUT
Business Entitled to Lower
Discounts-No Evidence
/ of Reduction.
BY L, A. FLEMING.

The heavy oversubscripton Of the
last issue of Treasury certificates was
In itself an announcement that it is past
time for the federal reserve banks to
start the movement for the reduction of
discount rates.
When the public moneys go to the
government in such great quantities at
Il per cent there is small real reason
for holding to per cent rates of dis
count. Commercial paper rate is still
high and in the interest of better busi-
should be lowered, but the member
banks cannot be expected to take the
initiative-that is, for the Reserve
banks.
!; 1t is also fact that first subscribers
to the last issue of certificates received
the full amount of their subscriptions
and that late subscribers were sadly
scaled.
This would warrant the belief that an
Issue of 5L or perhaps of 5 per cent GER
; tificates would be sufficiently attractive
TO induce subscriptions for the desired
= a mount, the more especiai if they were
one-year maturity.
The reserve banks are making more
money than their member banks, their
profits piling up annually by the mil
lions. The system was not inaugural ed
with view of profit making. but the
managers of the various regionals and
thSit III seem " Hpiti " liidl ittd
There is every evidence of easier
money Wall street is enjoying lower
rates, but the various regional banks
show no indications that they even con-
template a reduction.
The initiative in the matter of lower
ing has been left by the board. as
n matter of custom rigidly adhered
to. to the twelve regional banks.
Not single one of these has sounded
the Federal Reserve Board in the mat
ter of lower rates.
1t would look as if it was time
there should be exception to this rule
and that business interests be given
the full advantage of the easier con-
ditions.
Bankers Dinner.
the District Bankers Association at
the New Willard tomorrow night
have been closed with list of 545
guests. Most of the members of
President Hardings cabinet will be
present. also many of the leaders in
Congress.
1t will be one of the most repre-
sentative gatherings of the season.
done that would contribute to the
pleasure and entertainment of the
guests.
The stunts" have received the Off
members of his committee. and the
bankers of Washington will be pres
ent almost to a man to welcome the
guests.
Local Securities Quiet.
Investors owning local securities
seem to be perfectly satisfied to con-
tinue holding them. Perhaps this is
the reason why the local stock ex-
change sessions have lost some of
their interest of late. Offerings are
not sufficient to stimulate a demand.
and the prices are sufficiently high to
check new buying, pending develop
ments.
Today's sales were again on the
odd-lot order. covering transactions
in Mergenthaler at 120; in Lanston
At IS, and Railway preferred at 81.
Washington Gas 712 notes were
arm at 101 Y.
Mints Coming Silver.
Mints of the United States are now
coming 175,000 dollars in silver daily,
with orders going out to the mints in
San Francisco and Denver to join in
the production
Silver bullion holdings are steadily in
e1easing, but it will be long time be-
fore there is replacement of the go
121.554 silver dollars melted under the
Pittman act.