The Washington herald., 1922-05-07
FIN A N CIAL
FEDERAL RESERVE
RATIO FALLS OFF
FROM 1873 TO 1919
Loans Increase S34, ,0O0,-
600; Stocks Conspicuous
On Local Exchange.

Reserve ratio for the combined
system stands at 7s.7 per cent COM
pared with 1853 per cent the pre-
vious week and 55.S per cent a year
ago.
This decline in ratio Is seasonaIly
normal and does not indicate un-
favorable developments Demands
from farmers are always heavy in
the spring, which absorb liquid
funds.
There was a slight falling off in
gold holdings during the week un-
der reyiew-the first decline in a
number of weeks The loss, which
was less than S5OO.OOO, was OF no
Importance. Present holdings of
the yellow metal total 81, 1894, ,776, 900.
Total bills on hand increased
s34,O3s.00O for the week. Bills
bought in the open market in
creased about S25,OOO,O0O while bills
secured by commercial paper de-
clined very slightly.
Two interesting items in the
statement indicate that Federal Re
serve officials feel that purchases
in the open market may be neces-
sary to prevent net earnings from
vanishing. First is the heavy in
crease IN investments owned by
reserve banks, and second is the
fact that in the past week the
amount reserved for franchise tax
by the combined system wa5 re-
duced from S2,30S,00O to s1.S39. 900.
Probably the increase in the in
vestments owned. indirectly ac-
counts for the decline in reserve
ratio.
Deposit liabilities increase s5s.-
100000 and amount to s1.S92,332. 900.
A year ago loans exceeded de-
posits by s431.316.OOO. Loans are
now Sl.=i5,5Ts,OU9 smaller IAan de-
posits.
Federal Reserve notes in actual
circulation stand at s2.173,436,0 900
compared with s2.157.56s.O 900 a week
ago. and S2,62S,5S6,OOO a year ago.
strauss New Offering.
s. ". Straus and Company have
underwritten S4,O0O,00O first
mortgage 6Ls per cent serial bond
issue on the land and building of
the Shelton Apartment Hotel, New
York City. The bonds also con-
stitutes first lien on income. The
mortgagOr is the Shelton Holding
Corporation Of which James T. Lee
is president and controlling stock
holder. The bonds mature in three
TO fifteen years
Guaranty Bank to Move.
The Guaranty Savings Bank,
Inc, operating since April at 1921
Fourteenth street northwest. in the
hve-story building recently pur-
chased by the institution. will be-
gin functioning tomorrow in the ad-
joining building, 1119 Fourteenth
street pending the remodeling of
the above mentioned bank build
ing This will be ready about June
/, officials believe.
Floyd A. Compton. formerly note
teller of the Franklin National
Bank. and associated with various
other local banks in different ca
pacities, has been elected cashier
Of the new institution. Mr. Comp
ton began his official duties as
cashier on April l.
Other officers of the institution
are Frederick J. Rice. local attor-
ney. president; Robinson White,
first vice president: Arthur Cope
land, second vice president; ]. Clin-
ton matt. secretary.
The board of directors comprise
the following: DR.. Seneca B. Balm.
Warren W. Biggs. DIR. Charles H
Billiard, James A. Carter, James E.
Colllfiower. Arthur Copeland. Benja-
min Crifase, DR.. ]. Douglas McCue,
]. Frank Ferry, Chester ]. Fitch,
]. Clinton Hiatt. Edward P. Hinkel
Martin W. Hysong. Elmer T. HUNT.
l.nnElar
Thomas A. Moskey. Oscar A. Reed.
Frederick J. Rice. Frank G. Stew
art, A. Schumacher. Robinson
White, Thomas Weldon and Roy a.
Carty.
The firm Of Bell. Marshall and
Rice has been chosen as counsel.
Local Securities.
Heaviest trading in weeks fea-
tUred the closing session on the
Washington Stock Exchange yes
terday. Stock issues were particu-
larly conspicuous under the leader
ship of Railway common. Capital
Traction and Lanston in the order
named.
Railway common had sales ag-
gregating $50 shares at the recent
high figure of 80 with the single
exception of IS shares at 3sb. Cap
ital Traction declined from 9S to
97S on sales aggregating 10 shares.
while Lanston held firm at rs with
% shares changing hands.
American Security and Trust
Company stock was disposed of to
the extent Of IL shares at 233 z and
233.