Evening star., 1921-08-24
LOCAL SECURITIES
ARE FAIRLY FIRM
New Lows Made on GRAPHIC
,phone on Wall street-Re-
serve Board Criticised.
BY I. A. FLEMING.

Business in local securities quieted
the stock exchange. but the bid and
asked prices indicated fair degree OF
strength in the bond section. and some
little inquiry for the favorise pubic
utility issues. while other bonds were
entirely neglected.
Potomac General Mortgage Is brought
96. and the ~. per cent notes OF the
Washington Gas Company. 1021a.
A few shares of Capital Traction sold
AT Sc, with S51s the bid for quotation
Railway preferred was held at 5s.
with the best bid 5314. indicating the
widely different views of buyers ana
sellers.
The common shares were held at 2S'
with % bid. Washington Gas. asa hd.
New Los. on GraphOphone.
New low records were made on the
New York Stock Exchange this morn
ing on the common and preferred
shares of the Columbia Graphophone
tomIAny.
pared with the high around 1o. and
the preferred shares at 10, as COM
pared with the f1otation price of $so.
No news is available at this time to
indicate what action. if any. is con-
templated by the directors and ofn-
Cials. The plan of the company IL SAID
to be operating in the production OF
records.
Yesterdays transactions included
. 500 shares of the common stock ana
200 shares of the preferred
At no time on the drop from 30 70
10 has the liquidation of the preferred
stock been heavy. seeming to indi-
cate that most of the original buyers
tl,a hor n hang.
ing on, waiting for the rebound.
Time for Caution.
More than ever these are the days
when the intending investor should
make a practice OF consulting his
banker.
If not affiliated with bank make it
point to ask any banker. and his ad-
vice on the wisdom OF an investment
will be worth having.
So many corporations are cutting
their dividends, or passing the usuai
distribution entirely. that it is dlf-
ficult matter for one not in touch with
market conditions daily 10 give ad-
vice: indeed, it is not an easy task
for the man familiar with all outside
influences and some inside factors to
give advice that is worth-wh1le-so
much so, that many brokers will give
other brokers' opinions and tell one to
act for himself.
1t is not the time for margin trad
ing. not the time to realize on large
promises. which are far from profits.
Proposed Amendment to Reserve Act.
Senator Mclean. chairman of the
banking and currency committee of
the Senate, has introduced bill to
extend for one year the authority of
khe Federal Reserve Board to permit
federal reserve banks to discount for
member banks any notes. drafts or
bills of exchange bearing Endorsement
Df any one borrower up to 20 per
.ent Of the member banks capital
and surplus. secured by bonds or
notes of the United States.
October 81 the added authority will
expire, unless extended.
Criticism Of Reserve Board.
The Federal Reserve Board is just
low the target for criticism from the
southern section of the country. The
atest to pay his respects to the board
american Cotton Association. appear
ng before the joint congressional
rommittee of agricultural inquiry. :.
He urged an increase in the board
o twelve. and the present personnel
etired. insisting that men who view
I'd conditions with the eye of bank
er should not serve on the board. He
Also laid much of the responsibility
Tor the decline in liberty bonds at the
boor of the reserve board and main
kecurities should not exceed 81 per
lent.
He also charged the Federal Re-
|erve Board. and especially Gov.
Harding, with being responsible.
without excuse or reason. for action
which cost a loss to agriculture and
commerce of s25.00O.O 100000. He held
hat deliberately planning deflation
IN a colossal and unreasonable scale
vas monumental crime
You cannot and ought not to be
xpected to pay an inflated debt with
Debated dollar" he urged.
"lt looked to me-" he added, that
he Federal Reserve Board was faith
ully serving the interests of Wall
trcet in squeezing the value out of
herty bonds by making them un-
yailable. except at ruinous terms to
he debtor, for rediscount-'
The witness urged 4 per cent as a
ust rate for agricultural paper.