Evening star., 1922-09-01
BILL
-~ ~
0NBRANCH BANKS
Measure as Drafted Is Re-
troactive to July I, 1922.
Local Securities.
BY 1. A. FLEMING.

Local bankers were very much in
terested in the Millspaugh banking
measure introduced in the House yes
terday afternoon. but not made pub
lie through the press.
Interest centered more closely on
the question as to whether the bill
possessed retroactive features or not
The measure provides as a penalty
Tor the violation of it's privileges, eX-
pulsion from the federal reserve sys-
TEN.
The measure is worded as follows:
That new section of the federal
reserve act be added. to be known as
section "a, to read as follows:
NO member bank shall own. estab-
lish, maintain or operate any branch
oank. branch office or branch place of
business in conducting any other busi-
ness.
Any member bank violating the
provisions of this section shall there
by forfeit it's membership in the fed
eral reserve bank in which it holds
membership, provided that any men,
Der bank which maintained branch
banks or branch offices prior to July
!. 1922, shall be exempt from the
provisions OF this section as to those
branch banks or branch Offices which
were established prior TO July |, 1922"
Brokers' Loans.
New York banks report an increase
IN loans to stock brokers sufficient to
bring the totals to the $4,000. 100000
mark. There is Still a difference of
$3.50 100000 between this and the high
mark of loans in July. 1919, preced-
ing the deflation period.
While the. loans to brokers are
reasonably heavy, bankers declare
that they are not excessive.
One must take into consideration
the wonderful unemployed lending
power of the federal reserve system,
which today has earnings assets of
81 ,074 ,065. 900 and total resources of
S4.S4S.6i2. 900. Its total bills. part of
the earning assets, are but S576,074.-
900. The banks have reserve ration
of 19.2 to deposit and note liability.
RediSCountS of the Federal Reserve
Bank of New York are but S46.S5O.236,
as compared with s360,650.000 a year
ago.
1t is a fact that the reserve sys-
tenn has been able to keep but a
small part of its assets working dur
ing the currency year.
Commercial loans. commercial paper
In all forms furnish business for re-
serve banks. and commercial interests
have not been borrowers to any great
extent.
Local Securities slow.
Another dull season of the local
stock exchange was held today the
last until next Tuesday. as the eX-
change stands adjourned over SatuT-
day and Labor day.
Sales were greatly restricted and
price changes were unimportant.
Federal National Bank featured in
an advance to IFS and later to 1870.
Real Estate Title Insurance repeat
ed its high of 120.
Railway As sold at IS and Anacos-
tia and Potomac SIS at S.
One small sale of Capital Traction
was made at 10i.
The manner in which business be-
comes used to trouble. so that con-
ditions that at one time would be
very alarming are eventually ac-
cepted almost as a matter of course.
has been illustrated this summer in
It's attitude toward the coal and
railroad strikes. OF course, business
cannot get along Indefinitely with
out coal and railroad service, but the
situation is as serious for the whole
community, including the strikers
and their families and sympathizers.
as il is for business. for the latter
is nothing but supplying community
wants. Business throughout the
summer has manifested confidence
that common sense would rule and
that coal and railroad service would
be forthcoming.
Doubtless this view will prove
situation over the world at the mo-
ment is not such as to inspire con-
fdence in the aScendancy tof COM
mon sense among any of the branches
or classes of The human family. In
Europe, from Ireland to Russia. the
people are embroiled in bitter con-
tentions. The faculty of composing
differences and of finding common
ground upon which to work for
common interests, by means of which
society has made fairly orderly ad-
vance in civilization, seems to have
broken down under the weight of
present problems, or to be tempo
rarily incapacitated.
I'm this country the situation is
not so desperate. but it affords
abundant evidence of how the peo-
pie. confused by suspicion and agita-
ton, waste their energies at cross
purposes Most Of our troubles are
due to hallucinations of one kind or
another but fortunately their serious
character is sometimes relieved by a
streak of humor. as when MIR. Henry
Ford varies the charges against
Wall street with his theory that the
street controls the labor organiza-
tions."
Merger Bill Passed.
The Senate this morning passed a
measure for voluntary merger of the
Capital Traction Company and the
Washington Railway and Electric Com
pany and what is more to the point,
the merger of the latter corporation and
the Potomac Electric Company.
This latter part of the program will!
be a completed fact long before the
street car corporations will merge.