Evening star., 1921-04-19
RULES TO. GOVERN
| LOCAL C;ALLLOANS
To Be Effective May I.
Treasury Calls for $780,
| $50, Money Easy.
BY 1. A. FLEMING.


Washington is to have call loan
n oney market. 1t may not be a very
big affair at the start. but its Spon-
Sors believe that in time it may be-
come a factor of Importance and fur
nish an added source of employment
for funds in the hands of the banks.
George q. Watson. president of the
Liberty National Bank. formulated
the plan that will be put into effect
May /, and which received the ap-
proval of the District Bankers Asso-
citation at it's regular meeting last
evening-the most largely attended
and harmonious meeting that the as
Sociation ever held.
Plans for the call money mark c t
are as follows:
Banks having funds to loan will
Eotify the secretary of the Stock E.x-
change by IL o'clock in the morning.
specifying amount, the minimum rate
acceptable and the maximum amount
rover.
The minimum amount offered is to
he $4,000.
Brokers will bid for funds offered
the bid and asked prices to be re-
corded on exchange board and ohi-
cial sheet.
At the close of the session. or not
later than 12.15 pm, the secretary
will inform the bank regarding the
placing of loans for it. giving name
of borrower. amount and interest
The transaction between borrower
and lender is to be completed before
the close of the business day
Calls for payment of loans are to be
made direct on the borrower before
IL o'clock am, the borrower having
of king the
same day, or before tn" close of husl-
ness the day following the call II
is understood that loans will not be
called on Saturdays or on days when
the stock exchange is not in session.
Notice of A change in the interest
rate on loan must be given the bor-
rover before IL O'Clock am. the day
when the increase goes into effect
These rules have been adopted gov
crning the making of call loans on
the stock exchange for the purpose
of expediting business. 1t is under
stood that all funds offered and ac-
Cepted are subject to the approval OF
the lending bank as to the security
Friends of the scheme helleFe there
Is a field for a good business here
Indeed. there are times when two
million dollars or more could readily
be used with New York Stock Ex-
change collateral for the loan:
w. b. Hihhs and john l. Edwards
q Co, pOtn We" i q! n StoIh I-ASiitiiAS'
members. might finance large per
cent of their operations here II the
money were available When in good
working order bankers could use the
money here as well as IN New York
city.
Calls for $s3.56O,O00.
National banks have been requested
to forward 1850, 900 to their regional
banks on or before Thursday of this
week, the same being 20 per cent of
the proceeds from the sale of March
Is certificates, still remaining in
banks.
Yesterday they remitted ss4,3Ss,o0o,
and a few days ago 100000, 900, while
today's call still further reduces the
remaining credits to S156.oo0.0O0.
If there was the slightest trend to-
ward stringency in the money market
these heavy drafts would certainly
have advanced rates.
Money. on the contrary. is very
plentiful. but rates are not easy.
bankers keeping the figures high and
waiting for IA lowering of the federal
reserve bank discount rates before
making any cut
A local bank wired New York on
placing a call loan there this morn
ing and was informed that it might
be difficult, as there was but little
demand for call loans.
When a local institution places a
call loan on Wall street, the New
York correspondent takes all the
FISK as to security, etc
Compliment to Capt. Oyster.
In announcing the election OF a di-
rector representing group No. 3. for
the Federal Reserve Bank Of Rich
mond. the official circulars of that
institution call attention to the fact
MT a ~t.. L
director of this bank. never missed
meeting of the board of directors"
May Il will be election day. with
only banks having $4,000 and un-
der of capital and surplus being al
lowed to vote.
Banks in this district have recon-
mended w F. Guide as successor of
Capt Oyster. 1t is expected that the
interior institutions will give him their
support.
No Washington bank has vote in
the election.
Annual Convention.
The annual convention OF the Dis
trict Bankers Association promises to
be most successful. White Sui
phur SPRINGS has been chosen as the
location. A special train viii leave
here June ! ! at bout noon or iitIe
later, for AN afternoon ride to White
sulphur. Plans Will give ,h- u.Irsa ,,s
$500 eAeSto iiit beItNt OF one 1Uil
hay before the convention. The Parry
VIII remain there four evenings, Sat
urdaE, Sunday, Monday and TUESDAY
until midnight, when the return trip
will be started.
With q. q. Watson and Charles J.
BeIi heading the committee on conven-
lion, as Chairman and vice chairman,
respectively. and with every bank
president on the committee L great
program should be arranged.
Joshua Evans. Jr.. Is chairman of
the press committee. and he VIII b..
assisted b. the financial writers Of
the city
LanstOn Again Active.
After d few ays of neglect. Ian
ston Monotype shares aga.n attracted
considerab!e attention ON me local ex-
ChanSe. Tney started at - l.. below
the previous closing on the last trad
ing spurt. and advanced 10 11ir
Railway preferred WAS active 4,
81 4 TO 81 y Capital Traction steady
at sI's
A sale Of Capital Traction SIS was
reported a ssH
Approve Measure.
The District Bankers Association
mas given lis approval 10 the cora
missions blue SKY bill"
MONEY AND ENtIIA\G;..
NJ" YORK, April ls-Prime mer-
cdhtiie paper. haas exchange