Evening star., 1921-10-03
ONLY LIGHT. .IR)B)H|
IN LOCAL SHOCKS
No Evidences Of 0ctohesi Rta-
bursements Being Bsin-
vested-Prices Steady.
ny I. A. TLEMIN0.

Business In local Investments con-
tinues narrow. So far there have been
no evidences Of reinvestment of the
large October 1 disbursements, al
though brokers have q right to look
Tor these funds coming into the mar
ket within the next few days
Prices hold reasonably we'll on the
restricted daily transactions. In the
bond section Capital Traction 50 are
Of tho Washington Railway and Elsc-
tric are likewise decidedly steady at
Quotation lots Of Capital Traction
:s:rs: :s:rs: s:,iisa s.Snsht - - with few odd
Aergenthaler was . little drmsr to-
day. at l20A to 1909.
American Security and Trust Com
pany shares sold sparingly At 2la.
Farm Lsaa Beads.
Farm loan bonds. 10-sv year ma
TURTLES. bearing s per cent interest,
will be offered by Investment bank
ers all over the country today at par
In all $4,000. 900 Of these bonds
will be marketed IL the demand is
sufficient to absorb this amount.
,. Secretary Mellon in announcing the
"The public faith In farm loan
bonds was clearly manifested by the
sale OF the last issue in a hard mar
ket. In view Of improved conditions
this issue should be quickly ab-
At the request Of the Farm Loan
Board. Alexander Brown & Sons. Har-
ris. Forbes & Co, Brown Brothers &
Co, Lee. Higgenson 4 Co., the Ma
tional City Company and the Guar
anty Company will handle the sale of
One thousand fnvestment bankers
will aid in the hotation.
There are now outstanding $373.-
790,500 federal farm loan bonds. OF
this amount $ls3.o35.ooo are held in
! hands Of investors. banks. etc.
Fix Rates at 81 Per Cent.
War Finance Corporation has fixed
the interest rate Of bK per cent to
banks or trust companies on all six
! months paper. under the agricultural
loan provisions of the corporations
power. Loans cannot be made for
longer than six months and they car
ry no renewal privilege. The same
! rate is effective on cattle ioans.
A. b. A. Convention.
and committees are meeting at Los
Angeles in preparation for the Amer
ican Bankers' Association convention.
the first public session being sched
| uled for tomorrow morning. An in
teresting program has been arranged.
Personal Mention.
o. H. p. Johnson, vice president of
| the National Metropolitan Bank. was
| at his desk this morning after a sum-
| at other places on the continent Mr..
Johnson has nothing but praise for
| the French people working ~ q ma
tion to rehabilitate themselves. bear
! ing the scars Of war without undue
| parade and with no evidence Of idle
| ness or unemployment.
Francis NJ. Savage has returned
from a weeks motor trip to Three
! Hills, Va.
Banks Net Inviting Loans.
The National City Bank in its Oc-
| tober circular has this to say:
Although money Is easier and
eral reserve banks are higher, money
| that banks are eager to lend. Many
of them are still heavily indebted to
the reserve banks and have unIiquid
| assets that they would like to get
clear Of. Some OF them. however. are
the centers weaken. Activity and
rising prices in the bond market are
symptomsti. Of an increase of avail
The review holds that the FEDERAL
reserve system was entirely right in
not attempting to sustain prices when
liquidation began.
| 1.-The federal reserve banks have
rendered enormous service to the
| country in the emergency through
which it has been passing. because
| confidence in their solvency. and abil
| ity to meet a crisis has been sus
:, tanned. II that confidence had been
/. lost chaos would have ensued. and
| the losses of the country would have
been enormously greater. That con-
| idence could not be retained II the
| banks were conducted upon any but
sound banking principles.
Public confidence is the greatest
asset of the systematic asset most
valuable to the country. On no ac-
count should 1t be put at hazard, by
jintrusting managers or even the
| Federal Reserve Board with the task
! Of sustaining markets. Let markets
60 as they may, and let the people
who wish to bet on them do 30 with
their own money or the money they
can borrow elsewhere. but the fed
! eral Reserve banks should be kept
absolutely safe at all times from
market risks"