Evening star., 1922-08-03
LANSTON A LEADER
IN LOCAL MARKET
Liberal Sales at 79 3-4 and
70 7-8-PubIic Utilities
Slow on Discounts.
BY I. A. FLEMING.


Lanston Monotype took the lead in
trading on the local stock exchange
this morning, several quotation lots
sales being recorded at 79& to 7sb.
with an especially firm closing.
Mergenthaler moved up on very
limited transactions to 1921 from an
opening at 1852.
Public utility stocks had a dull. un
interesting day in the trading, few
shares of Capital Traction at l01 and
sale of Railway preferred at 7S
completing the record. Bid and asked
prices showed relative strength about
on par with previous days.
Railway As were the active leaders
in the bond section, quite large pur-
chases being made at 741z to 75
Potomac refunding and improve
ment Is again sold at 10S.
Clinton Bank Notes.
At a recent meeting of the board OF
directors of the Clinton Bank, Prince
Georges county, Md, semi-annual
dividend of 3 per cent, payable De-
cember next was declared.
The Clinton Bank was organized and
opened for business about two years
ago. On the opening day the depos-
its were less than $2,6o0, and the ac-
counts numbered about twenty; today
the bank has deposits of around
SIPS 900 and about 500 accounts. about
two thirds of which are savings ac-
counts.
The resignation OF Guy T. Helvering
as chairman of the board of directors
was accepted. Mr.. Helvering has re-
Gently acquired controlling interest in
the Planters State Bank of Salina,
Kan.
Lee Manning of Accokeek. Md. was
elected a member of the board.
w. Gilbert Dent of the real estate
firm of Gardiner & Dent. Inc, is the
president of the Clinton Bank.
Amendment to Reserve Act.
The Federal Reserve Board has
notified member banks of an amend
ment to the reserve act regulating
the rediscount privilege to non-mem-
Der banks which is, as matter or
fact. accomplished only through
national institution enjoying full
m membership in the system.
Amendment provides that no mem
Der bank may discount for any state
bank or trust company bills OF eN-
change. drafts. etc, for any one DOT
| rover who is liable to such state pam
or trust company in an amount greater
than 10 per cent of the capital and
surplus of the state bank, but the
discount of bills of exchange drawn
against actually existing value ano
the discount of actual commercial
owned by the person negotiating the
same shall not be considered as bor-
rowed money within the meaning OF
the section.
Under the law 1t is now possible Tor
a bank to loan up to 10 per cent OF a
banks capital or surplus on accom-
mediation or one-name paper; without
limit on commercial or business paper
(of other makers) actually owned by
the person. firm or corporation nego.
-, nd n
on.the capital and surplus OF bank.
in addition to the previous amounts,
If the full amount under the other
privileges is not made, then the amount
NAV be increased by the unused por-
ton, on notes secured by warehouse
receipts, notes secured by shipping
documents, or other such documents
conveying or securing title covering
readily marketable. non-perishable,
staples. including live stock;
mo bank may make a loan unoer
this clause unless the actual market
value of the property securing the
obligation is not less than 10 per
cent of the face value OF the amount
Of the note.
Also unless the property is fully
covered by insurance: nor for more
than six months by one customer; on
government paper there Is no iiinlt
| to loans. if secured to the amount OF
los per cent of face value, although
! the controller of the currency. VIII
expire with the current year"
"A federal reserve member bank
may not, of course, rediscount paper
other than that which is eligible un-
der the terms Of the reserve act.
Promissory Notes.
Recently" says reserve board
circular Just issued. I'VE have been
offered for rediscount notes contain
ing literally or substantially the fol-
lowing: The subscribers hereof shall
continue to remain and continue
| bound for the payment of this note,
Notwithstanding any extension or ex-
tensions of time of payment of 1t or
any part of it,
1.-THE supreme courts of several
states have recently declared notes OF
this character non-negotiable, and
| while this particular form has not
been passed upon, we are advised by
counsel that the instertion OF such
provision renders the negotiability
of said note doubtful We therefore
notify members that we can not ac-
cept notes, drafts, etc, containing
said provision