Evening star., 1921-08-14
LOOK FOR CUT IN.
R|CHMOND'S RATE
Predict Early Reduction to
5 1-2 Per Cent-Mr. Mel
lon Wants SIS, 600, 900:
BY 1. A. FLEMING.

their rates some four weeks ago
Because of rather heavy borrowing
visable at that time to follow the
lead of the more important federal
Institutions.
1t will be recalled that efforts were
made at that time to0ecure the cut
ting of the Richmond rate. but Gov.
Seay would not consent thereto.
1t is within the possibilities that
this announcement may be a little
premature, but there is excellent
will not long be delayed.
Local banks will appreciate the re-
duction- and it is possible that gen.
erals business will share to an extent
in the easier tone to money that-win
result. -
Call. for $75.OOO.OOO.
Secretary Mellon this morning made
his first call on the credit established
through the sale of Treasury certifi-
Gates dated August 1.
The amount will be approximately
$75,o00,000 and will be paid into the
Treasury through the usual sources
on Tuesday of this week. At the same
time there will be payable a small
balance on. account of the issue
June 15.
1t is not expected that the with
drawal of these millions from the
banks will have any particular effect
on the money markets, although 1T
may cause some little temporary
stringency in New York city.
issue of certificates maturing on
Tuesday. but these have been pro-
vided for.
Seek Old Austrian Money.
The Department of State is max
ing inquiries among banks all over
the country to uncover holdings of
money issued by the Austro-Hun-
garian Bank. at Vienna, and holders
of securities issued by the govern
nfent of Austria. the government of
Hungary and the government of the
former Austro- Hungarian empire.
Provisions of the treaty of peace
with Austria stipulate that notes of
the Austro-Hungarian Bank issued
on or prior to october %, 1918. which
on June is. 1919. were held outside
of the limits of the Austro-Hun-
garian monarchy as it existed July
IS; 1914. shall be presented to the
liuuidators of the bank by the gov
ernment of the countries in which
the notes are held in order that the
notes may share in certain assets of
the bank.
Forms have been prepared by the
be given for any securities entitled
to share in the assets of the old bank.
Notes must be forwarded to the
State Department. Sworn statements
regarding the notes held must be
made to show that they are exactly
what they claim to be-
The McFadden Bill.
Representative McFadden. chair
man of the House banking and cur
rency committee. is allowing the
pressing business of the republican
program to proceed on its way be
fore calling up his measure for the
abolition of the Office of controller
of the currency.
1t will be recalled that the Ameri-
can Bankers Association. the Cham
Der Of Commerce and other organl-
cations interested in financial meas
ureS have given unquallned approval
of this measure.
In due time it will probably be en-
acted.
There is no feeling whatever an
tagonistic to the present controller
of the currency, but belief. that
the banks may best be served
through closer relationship with the
federal reserve regional banks OF
which they are members
This. the McFadden bill. II enacteo,
will accomplish. Bank examinations
would. then he under the super
vision of the federal reserve agents
of each of the twelve banks. with
the governor and directors of the
banks in the position to review any
recommend tions and the Federal Re-
serve Board as the final court of re-
view when such a review is neces-
sary. nm
odd member banks in even closer
touch with their regional heads than
they are today.
Improvement Ii Slow.
During the past week we have wit
messed decline after decline in the
industrial list of the New York Stock
Exchange, and many new low prices
for the year have been established
Here and there a iVidend has been
PASSED or sadly cut and daily evi-
dences are being offered that this or
that big industrial corporation has
not come clean; has not taken It's
losses as 1t should have. or has not
been able to make bank loan pay
ments as per schedule, and further
credit arrangements must be made, with
the hope that eventually the corporation
may work itself out of the hole:
Yet one finds the shares OF the lead
ing steel companies taking any
liouidation of shares with indiffer-
ence and holding relatively steady. =
Railroad shares, too. present an al
most impregnable- front to any bear
ish attacks, despite the growing be-
lief that Congress will recess before
the measure of relief for the rail-
roads will be decided finally.
The whole business world is favor
ably impressed with the desire of the
administration to go ahead with the
solution of it's problems and get them
out of the way, but those who expect
to turn in a few months the unfor-
tunate conditions brought about by
years must bide with patience.
And this is August-between hay
and grass and the closing days of the
play season.
Another thirty days and men will
be coming back to business, refreshed
-fn ylxIf
newed energy. Crops will be moving
to their respective centers, the coun-
try will be in funds and be factor of
some import in buying again, al
though debts may burden for a time
and force economies.
Burdens of taxation of direct appli-
cation have been materially eased
from taxpayers. Every ones desire
to get a little the best of it-nothing
but humans delaying legislation.
but it will go over before long, and.
our lawmakers believe, for the public
good.
Money is in ample supply; the po-
sition of the federal reserve banks in
dicates that they are ready for a con-
sefvative recovery. fully recuperated
from overextended loans in many di-
rections.
The federal reserve system has
served the nation well; it has able de-
tenders before congressional COM
mittees to uphold it's position in the
trying times Of def1ation, and few
stronger than its member banks.