Evening star., 1921-12-14
G00DDEMANDF0R
LOCAL SECURITIES
Investors Favor Shares.
Heavy Liquidation of Bank
Loans Proceeding.
BY I. A. FLEMING.

There was good investment de-
mand for local stocks on today's ses-
sion of the Washington Stock Ex-
change. Traction shares sold at 81
ex-dividend. Railway preferred at
6sk to 631s. Mergenthaler at 12s1a
and Lanston at 11h to 72.
Federal National Bank shares
brought 174.
Bonds were rather glow, b"t %r,n
Washington Gas 5s, s11s; Railway
4s. bS; chesapeake ana roto.nit. os,
81. Potomac Is were held at 1O41a,
and 104 was bid.
Liquidation Of Loans.
Reports filed by leading banks max
Ing weekly returns to the Federal
Reserve Board show that liquidation
is progressing a little more slowly
than earlier in the fall. Comparing
total loans and discounts on Novem-
ber 30 with October 2S. liquidation for
the five weeks totaled SS6,034 900.
while for the period September 2S to
October 26 liquidation totaled $151.-
100000.
From January to November 80, re-
porting banks reduced their loans by
$1.96S.3 800, and as a result they made
very large increases in their hold
ings of bonds and other investments.
January z, 1921. the reporting banks
had $S69.000.0O0 of loans secured by
government obligations, this being
reduced by November 80 to $521,S55.
November 30, the banks held $911.-
$4,000 of government bonds as In
vestments compared with $S7S.177 the
first Of the year.
War paper as security for loans in
the twelve regional reserve banks de-
creased from $1.104. 900 January I
to 1921 ,SS5 by December Z.
Bankers differ greatly on the proba-
Bile date at which the borrowings of
merchants will start an increase in
the loans, although the great re-
duction in merchants inventories
may start them buying almost any
tfmo IN the near future.
Bankers' Reception.
A reception was rendered by the
District Bankers Association to the
officers and administrative committee
of the American Bankers Association
at the Racquet Club last night
There were no addresses, just an
informal exchange of interviews and
the introductionS had been exchanged.
A buffet supper was served.
Today the visiting bankers con-
tinued their round of visits to gov
ernment officials, heaals of depart
ments and bureaus: Tonight in the
they will entertain officials of the
local association and other guests at
dinner.
Their three days visit will end
with today, and the bankers will
return to their homes, Thomas B.
McAdams, president of the A. B. A.,
to Richmond, and others to points all
over the country.
The visit has marked the rap
prochement between the A B. A. and
the administration.
Long-Term Borrowing.
There is some talk in banking cir
cles over possible long-term financ-
ing that may be undertaken by the
Treasury Department early next year.
If the present ease in money con-
tinues, Secretary Mellon may decide
to refund a big block of Treasury
certificates. It is not believed that
he would undertake anything under
s2,OOo,000, ,000-a loan that would have
an important effect on the investment
market.
william n. Haney was yesterday
elected a director of the Potomac Saw
ings Bank, filing a vacancy caused
by the death of Peter J. Clarke.
The full directory for 1922 was