The Washington herald., 1922-08-12
RESERVE
RATIO ADVANCES
T0NA% IN WEEK
National Mortgage Firm
Declares Dividend; Platt
Acting Governor.


sf the Federal Reserve banks is re-
ported for. the current week. This
ratio now stands at 500 per cent.
the highest point In the present up
yard movement. The increase this
'kveek 30 not due to any further
gain in gold. but to a decline in
deposit liabilities.
Total deposits were less by s4s.-
100000. while the circulation Of
Federal. Reserve notes incrasd by
s7.1eo.o0e. Bill holdings showd a
further decline of s21.30o,ooo. and
the total earnings assets were less
BY $4,000. 900. No increase in the
demand for commercial credit is IN
dicatsd In these figures. but a con-
tinuation of easy money conditions
is suggested
The weekly statement of the
Bank of England. delayed in trans
mission to this country by inter-
ruption Of the cable service. shows
a reserve rati, this week of 1874
per cent. compared with 1928
per cent for the week preceding.
Circulation decreased f232.oeo- The
statement for the Bank Of France
shows an incresse in circulation Of
so.5s4.ooo francs while the State
repaid to the bank 1oo.ooo.ooo francs
of its debt.
Dividend Declared.
The National Mortgage and Invest
nent Company has declared and
paid It's semi-annual dividend Of 4
per cent on the preferred stock of
the company. covering the period
up. to- July 1. The first dividend,
carrying the same disbursement.
was declared after only five a:-d
ope-hslf months of operation, put
ting the preferred stock on an per
cent annual basis. Both dividends
have been paid only after thor
ough audit of the books by the
American Audit Company.
In addition to the preferred stock
disbursement. IL Is announced that
a large surplus Is being accumulat-
ed behind the common stock
The company have taken up new
quarters on the ground floor at
S11 Vermont avenue northwest.
Local Securities.
The advance of Lanston Monotype
to above so provided the only fea-
ture on the Washington Stock Ex-
change yesterday. Railway common
sold to the extent of fifty shares at
=.
sold at esA. and Gas SIS at 81
Federal Reserve without Head.
Edmund Platt is acting governor
of Federal Reserve Board in place
of W. p. G. Harding. through fail
ure of President Harding to make
an appointment. Governor Hard
ing's term OF ONCE expired Thurs
day.
There Is nothing in the Federal
Reserve act making il mandatory
for the President to appoint a gov
srnor within any specified time,
The situation has been made doubIy
interesting from the fact that Vice
Governor Platt was appointed to
serve for the period from July %,
1880. to August 10. 1922, or until
further Instructions
The fact that President Harding
has permitted the governors term
to expire without reappointing him
has led to expectation of a purely
political nomination. Secretary
Mellon is said to have little patience
with any proposal to make a DO.
litical asset out of the office OF
governor Of Federal Reserve Board.
Federal Reserve act makes no pro-
vision for the vice governor to sue
ceed the governor and the fact that
Platt has assumed the duties of
the governor may raise a point of
law In the future. However. this
point was gone over with high off,
eials and it was decided as the only
logical thing to do. Failure of the
law to provide for a successor to
the governor under existing cir
cumstances. strengthens belief that
the President will appoint a new
head of the Federal Reserve Board
with reasonable promptness.
IL Is rumored that COMPTROLLER
Crissinger may be appointed gov
ernor OF Federal Reserve Board.