The Washington herald., 1922-06-16
MERCHANTS BANK
: DISPOSE OF ITS G
STREET PROPERTY
Former Bank Site Sells
As Investment-Oth-
er Local Notes.

4ho rTturIlCk SOfpoTdtiOHs pody
of representative business men Of
Frederick. Nd. yesterday purchased
the property at 1913 G street north
west, from the Merchants Bank and
Trust Company. No monetary consid-
Grafton was named.
This property, which formerly
housed the Merchants Bank. is con-
sidered an admirable location. in the
very heart of the uptown business
district. While the Frederick Cor
poration did not state what disposI-
tion would be made of the property.
IT was learned it will be held as an
investment, several firms already
negotiating for the desirable site.
However. it is safe to say 1t will not
be used as a bank.
The deal was tranSacted through
the Offices Of F. II. Smith Company,
local realtors.
Federal Reserve Banks.
Aggregate reductions II $4,000. 900
IN discounted bills and Of $4,000. 900
in purchased acceptances, as against
an increase Of S11.S09 400 in Uni cd
States securities. are shown n the
Federal Reserve Boards weekly bank
statement ISSUED as az close of hUsi-
ness on June II. 1922. Gold holdings
Of the reserve banks declined by S.
500. 900. while other cash reserves, l.
=. silver and Iega!g. show an IN
crease ~ s4.TOO. 600 10. ne week.
Gu" "ernnent deposits are shown S53
100000 larger than the week before.
wGi's n-embeTr reserve aIi other de-
?Osits were S16O0.CA9 less III icral
rcse w, note circulation -eclined by
SIN.9IG. COO. the JUrC IA t",al Cf ST.
1"2 500. 100 constituting n new low
serve banks, except the Cleveland
bau'.. export smaller Cir:u!ation ris
ures than the week before Net liza.
bilities of the reserve n&rkS on Ted-
eral Reserve bank notes in Circula-
ton declined by 50. 100000. the new
total of s6S. OnO. .OOO likewise being the
lowest on record TO" the present year
-'hs reservs ratio shows a further
decline from 77.6 to IA per cent.
Interbank shifting of credits in the
gold settlement fund is largely re-
sponsible for the decreases of $685.
400 900 and of $1,000. 900 in the gold
reserves of the New York and ST.
Louis banks Smaller decreases ag-
gregating SS.10O.OOO are shown in the
gold reserves of the Sap Francisco,
Atlanta and Dallas banks. Chicago
reports the largest increase in gold
reserves for the week. by SIS. 700. 900
followed by Boston with an increase
of over SS.oOO.0O0 and Kansas City
and PhiladelphIa-with an increase OF
$500, 900 each. Smaller increases
aggregating $500, 900 are shown for
the Cleveland. Minneapolis and Rich
mond banks.
Holdings of paper secured by
government obligations show a fur
ther decrease for the week from
s14s.9OO.OO0 to s14O. 500. 900. OF the
total held s116, 100000. or S2.6 per
cent. were secured by Liberty and
other United States bonds; s7.7OO.-
900. or 5-5 per cent. by Victory
notes; S1O,sOO,00O, or IL per cent. by
Treasury notes. and $4,000, 900. or
AZ per cent. by Treasury certif-
icates. compared with s122. 800. 900.
s7.7O0.O00, S11,1OO.OOO and $500, 900
reported the week before.
Bank of England Cats Rate.
A reduction of half of 1 per cent
in the discount rate of the Bank of
England. announced yesterday,
cent and follows a similar reduction
almost exactly two months ago,
The change was not entirely unex-
pected at London, as market rates
have been materially lower than the
official rate. while the present con-
gested condition of the investment
market at that center removes most
of the danger Of the cut having a
stimulating effect on speculation
1t is also pointed out by close OBJ
servers that the great reduction in
the governments floating debt, and
in the outstanding volume of cur
rency notes which has taken place
during the past year. has materially
strengthened the Bank of England's
control over the situation. A re-
covery in reserve ratio of 21-5 per
cent Is shown by this weeks state
ment of the latter institution. At
1913 per cent the ratio is close to
the high Of the year. The improve
ment reflects repayment by the gov
ernment of large part Of the sums
borrowed from the bank in order to
meet June 1 interest payments
Local Securities.
Trading on the Washington Stock
Exchange was relatively active yes
terday, with Railway commons re-
covery to so the outstanding fea-
ture. This issue opened at 49X.
with ninety shares changing hands,
Relatively heavy trading also took
place in Capital Traction SIS at 9SIh,
and in the stock of this company
at 97S and u.