Evening star., 1922-06-15
new YORK BANKS.
REDUCE INTEREST
New Figure Based on Re-
serve Rates Effective July
1-Draws $500, 900, 900.
BY i. A. FLEMING.


Two things have occurred that are
in plain recognition of the easier con-
ditions in the money market: ono the
announcement Of the New York clear
ing house and affiliated banks of In
tent to reduce the rate of interest
paid on balances an a sliding scale
based on the going bank discount
rate of the Federal Reserve Bank
of New York city; the second the for
NAL request of the Federal Reserve
Bank of San Francisco for permis-
sion to reduce its rate of discount
This may mean the first break In
the ranks of the reserve banks in
their reduction below the AZ per cert
rate that has been current for some
months even while the market rate
was lower and the government bor-
rowing money as low as 3h per cent.
The New York interest reductions
on balances effective July ! are as
follows:
To banks and trust companies and
private bankers: When the bank rate
is less than 2i2 per cent. ] per cent;
when less than ; per cent, lk per
SS''N' Idlt lS per cent,
per cent; when rate is per cent, Ia
per cent; when AZ per cent, per
cent; when per cent, 2il per cent,
Nhlch Is the maximum rate paid re-
gardless OF the bank rate.
To mutual savings banks: Interest
On demand deposits payable within
lnlriy DAYS, three-quarters of ! per
cent additional interest on all the
above rat tes will be paid
Deposits accredited to others than
bankers. interest will be paid at tho
rate Of one-quarter OF / per cent
above bank Rates. save when the dis
count rate Of the Federal Reserve
Bank of New York is 5E per cent
or over. when one-half per cent more
VIII be paid.
On time deposits the schedule of in
terest rates are as follows: On -,
per cent Reserve Bank rate, ~ per
cent; per cent rate, per cent in
terest; 3iz rate, 2L interest: per
cent rate. 2H per cent interest; on a
-: per cent rate. 2@ interest; Oh
per cent rate, per cent interest; on
5ie per cent rate, 3L and over 81,
per cent rate. 3I1 per cent interest
interest not exceeding 3 per cent
may be paid on nom checking accounts
with credit balances of $4,000 or less.
Pass books must be presented when
Withdrawals are made from such ac-
counts, and the bank retains the right
TO require thirty days NOTICE of with
drawals
A change of bank rate will not affect
interest rates payabl on certificates
of fixed maturity or balances payable
at fixed date until such date of
maturity has been reached
Interest rates will be brought within
limits of above schedule within
thirty days of a change in the bank
rate.
With bank rates remaining at pres
n lou
with banks. trust companies and pri-
Vdte bankers. remain unchanged at
"a per cent; interest paid on savings
bank deposits is likewise unchanged
at 3 per cent. Other deposits will re-
ceive Il maximum of pig per cent
after July l, instead Of per cent,
while rates on time deposits will be
reduced TO 3 per cent
Secretary Calling for Millions.
Secretary Mellon has called for pay
ment today the balance of the cred
its arising from the purchase OF
Treasury certificates dated April 10
and 90 per cent of the issue of June
l, 1922.
Depositories holding certificates
series T-J-1922 and T-J 2-1922. ma
turing June -. 1922. or of 80. per
cent victory notes in coupon form
with unmatured coupons due De-
cember Is, 1922. and May 20, 1929,
dIldCneu may MAKE part OF All lne
payment now called for in such GER
tificates or notes. They will be ac-
cepted at par and the accrued in
terest remitted to qualified deposi-
tory making payment in this man
ner.
The two payments will call for
Reunion.
At the convention at Hot Springs on
II NaL ~
the National Capital Bank: George O
Watson. president of the Liberty Ma
itional Bank: Maurice Otterback, head
of the Anacostia Bank; John NJ Rior-
dan. cashier and manager of the Bank
of Commerce and Savings, and Ernest
E. Herrell. vice president of the Mer-
chants Bank and Trust Company. held
a reunion and were photographed TO-
gether. All are graduates of the Ma
tional Capital Bank. working to-
gether as young men there many
years ago. They were photographed
together-all products of Washington
and a credit TO the banking business.
Extra Dividends Declar ed.
The Columbia Title and the Real
Estate Title have each declared the
regular 3 per cent semi-annual dir-
dends and each per cent extra, pay
able July !.
Railway Common so.
On the stock exchange this morn
ing Railway common touched so. the
highest point reached for many day
and a 10-point advance in a few days.
Just what ii means remains TO be
seen. The street confidently looks FOR
a decision favorable to the Potomac
Electric Company in the matter OF
impounded cash representing the dif-
ference between the per cent rate
and the 10 per cent rate. The ruling
Of Console
dated Gas case is believed to assure
victory to the Potomac Electric Com
pany. The amount now impounded is
s3.O00.0 .000.
1t is believed that a very comfort
able dividend will be declared on tho
common stock of the washington
Railway and Electric Company, i'm
mediately following action in this
matter. provided that it be favorable.
as shares advanced to 5S11.
Bends were generally strong at e4ss
for Gas 5s. 105h for Gas notes =
10 AZ ocl,