Evening star., 1921-07-25
FEWER EMPLOYEES,
LIGHTER DEPOSITS
Expect Reduction to August ]
to 10000 Federal Workers.
Borrowing Regionals.

It is expected that by the 1st of
August 1000 more government en-
ployes will have been dropped from
the rolls in the last few months With
the 1st of May there were $4,000 gov
ernment employees in Washington.
contrasted with 117,760 carried NO.
vember l, 1918, when the peak OF
employment was reached.
The reduction of expenses Is under
full swing now and will be carried on
sharply, with the wedding out process
continuing for some time to come, as
efficiency and the elimination of the
inefficient are carried into effect.
Wherever possible breadwinners
were given the preference in con-
sidering eliminationS and many So
called war workers have been re-
turned to their homes.
The reductions in personnel does not
make ratio reduction in the salary
list. but the saving to the government
also comes from indirect sources.
through the concentration of working
forces and the releasing of rented
space, 174 leases having recently been
cancelled by the government with the
result that there is office and down.
town property available for business.
1t is on this decreasing government
employment that bankers are basing
their views as to decreasing deposits in
the next few months. Indeed, they go
even further and make their predictions
extend over a period of years.
1t is but natural that the effect should
be felt. OF late the employe of the gov
ernment, mindful of the temporary
character of his or her job. where con-
ditions warranted this feeling, has been
cumulative in habits. preparing for the
rainy day." and when it comes the
savings are quickly used.
Then, too, there is considerable work
reductions and unemployment generally,
which has some effect on bank deposits.
Capital Traction Lower.
Either Capital Traction shares were
slightly lower today or there was a
selling order pressing, and it was ex-
ecuted one-half point below the closing
price of Friday last, when the stock
was firm at IS.
Aside from this twenty-five-share SALE
the only other transaction made was in
Washington Gas stock an odd lot at 43.
Quotations, if indicative of any change,
suggested an absence of support to any
thing.
Not only are many brokers absent
from the city at this time. but their
clientele are also "out of town." hence
the dullness is nothfag more than
usual at this season. while re-
stricted inquiry for stocks is always
the signal for marking down quota
tionS On the local exchange.
Money was offered today at 62 on
call. but the best bid was the going
rate in New York. 6 per cent.
Borrowing Regionals.
The regional federal reserve banks
of Richmond. Dallas and Minneapolis
are the borrowers among the twelve
regional reserve banks, with Rich
mond the heaviest borrower. having
loans payable aggregating $50. 900 900
Dallas, with much the same kind of
clientele. is second with $16.445. 600.
and Minneapolis has borrowed S1O.-
4S5,000. These loans have been made
so that the banks might be of assist
ance to agricultural interests.
This is the chief reason why thOy
have not followed the lead of other
reserve banks and reduced rates.
Predict Lower Exchange.
Bankers predict that exchange rate
will be lower in the near future,
basing their estimates on the ma
turity OF large number of cotton
and grain bills. Germany also has
another maturity of reparation money
100000 gold marks.
Liberty Bonds Retired.
Secretary Mellon announces the re-
bonds during the last fiscal year. In
cluded in this amount were $685.
second ANS. S10.371,900 third ANS
and s27.427,s60 Of the fourth AIS
were taken over from the War FL
nance Corporation out of liberty bond
purchases at par by the corporation
from the United States Railroad Ad-
ministration, as required by law, ap-
proved May 8, 1920
The bonds were retired from repay
ment on account of principal of loans
paid by foreign governments.