Evening star., 1921-11-14
LOAN VAL0EOF ALL
3. LIBERTIES HIGHER
Bonds 95, Notes Par-Re-
serve System Bullying With
Cash-Mergy Higher.
BY 1. A. FLEMING.

The Federal Reserve Bank of Rich
mond has notified member banks that
advances will henceforth be made on
liberty bonds at 95 and on victory
notes at 100. An,
with a cash reserve of 32.sS0, 5000
in the reserve system officials OF the
regional institutions are somewhat
anxious to stimulate loans. Ihe ad;h caS'l
reserve 10 the largest ever held: indi-
eating the slackness OF borrowing IN
the big centers where the large loans
are usually made.
Moreover cash is constantly IN
creasing through the steady redue. ;.
legal requirements is $1.400.0O0. 0oo,
with potential possibilities for credit
expansion, should business increase
warrant. Of billions Of dollars
This is more impressive Wneh IL ~, Is
recalled that the total bills In the
reserve banks and their branches Is
but $1,335,s52.ooe. In the last year
there has been q contraction OF w.
736,952, 900. and the chances seem IA.
vorable for a further shrinkage
ia per cent.
The pilins up Of the stock Of gold.
now $3.453 ,00S,914, is one Of the
causes OF the plethora Of cash in the
federal reserve system.
The new loaning rates of the Rich
mend bank on liberties are not far
from the actual value Of the bonds.
The first, second and fourth loans
are slightly under 95 and the other
issues are above that limit.
Victory notes are but few points
under par and the entire issue of both
notes and bonds seems to be working
10 higher levels.
Rheims is an applicant for a loan
fror. a New York group OF bankers.
scissors has about completed nego-
Asnn I,oS SlSn fnr q
$1o.000.000 loan to be advanced in In
stallments. the final advance to be
made within eight years.
Potomac Bonds Active.
On today's session of the local stock
exchange, trading in the bonds of the
Potomac Electric Power Company
monopolized a large part OF the at
tention. The general mortgage IS
were favored. being helped by the
$1,000 of the bonds named changed
ownership between s7H and 50. a
moderate improvement from the pre-
vaiiing prices Of last week.
The refunding Is were steady with
sales at 103.
Washington Gas 11s per cent Ave
year notes scored a new high at 104
for a quotation lot. $1,000.
Capital Traction IS firm at 9OA.
Railway preferred sold at 81 to 631s.
the latter for a quotation lot.
Traction shares were firm with a
fair trade.
While there were no transactions in
Mergenthaler. the bid and asked price
quotations showed that the stock
was wanted and at higher prices.
Some months ago the purchase of a
block of stock of an indefinite amount
was responsible for an advance to 121.
after which there was reduction and
slow sagging to 119 or a little below.
OF late the price has steadily ad-
vanced on a very small accumulation
Of stock until today 1928 was bid, with
none offered under 130. Even high
er prices are predicted.
New York Telephone Bonds.
A block OF New York telephone
twenty-year 6 per cent bonds was
brought out this morning and report
ed to have met with instant favor.
The company is owned by the Ameri-
can Telephone and Telegraph. Com
pany. The bonds were marketed at
971a.
Tomorrow, the 18th. the Treasury
will pay out about $70,000.000 as In
terest on the second liberty loan. On
Wednesday $7,000,000 of interest will
be paid as nine months interest on
Treasury certificates issued May 16.
1921. Coupons may be cashed at your
bank or sent to the coupon-paying
division Of the Richmond Reserve
Bank.