Evening star., 1921-10-19
lower LOAN RATES
ARE PREDICTED
honey Supply Increasing.
Federal Financing and
Mortgage Cash Cheaper.
By I. A. FLEMING.

Money Is gradually working to
ower rates. with fast increasing sup
Iy seeking temporary and more per-
3nanent employment, with debts fast
ecreasing AMI he use OF the ex-
|hange commodity in the investment
cid as in business and manufactur-
|ng generally, being curtailed by the
prevailing duliness. and this accen-
uated by the uncertainty surround
|ng the Industrial situation.
over S1.O21 100000 Of obligations
|vere Hquidated in the last year and
100. .O0O. 900 in gold has been imported
from various sections of the worlo.
30 that we now hold 43 per cent OF
he known gold stock of the world.
While il is true that collections are
bot what merchants would like while
here are millions of employed. more
|han for many years. 1t is a fact that
| he American people haze more cash
|han ever before in their history.
The $4,000. .0U0,0U0 loaned our allies
has expended in this country, and
he greater part of the proceeds of
he $4,000. 100000 liberty loan bonds
nd the victory notes as we'll were paid
ut in the United States.
1t is probable that. in the extrava-
ant era that followed these disburse-
.entS many people saved much money.
nd this great war outpourins with
he big trade balances since then have
reated a plethora of money.
Thus with payments of millions OF
|ollars made Saturday TO the Treasury.
nd again Tuesday. and more called
br tomorrow. rates are lower than be-
pre- these calls were made.
Moreover crop money will be NOV
|hg back in short order. and with the
|srge disbursements of January-less
Han for many years however, owing
b the cutting and passing of dividends
|he supply will be greatly increased.
Call loans were made yesterday at
per cent on Wall street. Time
u.
Time money in Washington varies.
mortgage loan for 100000 went on
Fecord today at Z per cent.
This would seem to indicate that the
lays of the high interest rates are
IA pidly drawing to a close.
The United States government. the
reatest borrower in the nation, will
be very materially benefited by the
bundance of money seeking tempo
larry and permanent employment.
temporary because many investors
|,ho would ordinarily select list of
|tocks and bonds in which to make
|ong time investments are not long
IN confidence in security values at the
present time.
The Secretary Of the Treasury will
Probably test the money market with
certificate issue November and
he response will probably convince
i'm that any large financing that he
hay have in contemplation will be
fasy of accomplishment.
Good Business in Marks.
Local banks did a large business in
German marks today.
The closing yesterday, under slim
Illus of ratification of the peace treaty,
Eras .006lla. At noon today the quota
ion direct from New York was .0063
o .00635
The great activity today was not in
he purchase Of exchange bills to send
10 Germany. but was very largely the
|uying of spectators who looked for
Fontinued higher prices and a chance
10 make a profitable turn.
Short selling by SPECTATORS has
Practically ceased to be a factor. as
Iibitive to these operations.
Nor do banks anticipate any ma
erial advance in the German mark.
wing to the unsettled condition of
fairs in that country.
Government More Economical
Ordinary expenditures of the gov
fell off by nearly $25.000. 900
Turing September as compared with
august. according to the monthly
statement issued last night by the
Treasury. while payments on the
'ublic debt increased by more than
500. 100000.
During September ordinary eXpen-
litures totaled s2S6.5o3.9:2. as against
291, ,157.S41 in August, while public
Iebt disbursements aggregated ST.
i3,S&2.143, compared with with S237.-
1928 in the previous month. Re-
emption of certificates of indebted
less amounting to S1.05l.903,95O ac-
ounted for the bulk of the public
lebt disbursements.
Some Journey:
The New York bankers special
rain to the A. b. A. convention in
.os Angeles carried $50 guests.
raveled 5000 miles. passed through
nineteen states, three provinces of
'anada and touched the edge of the
epublic of Mexico. THE prear-
anged itinerary was carried out
Without a slip and the entire excur-
ion was most enjoyable" said George
Y. White.
Local Securities.
A few sales Of stock were reported
m the local exchange at S7ls for
'apital Traction 5s, 1927 for Mergen-
haler, while one sale of Railway As
vas recorded at o91s.