Evening star., 1922-06-23
|RATE REDUCTION
CAUSES NO STIR
Local Bankers Say 1t Was
Logical Sequence After
London Action.

Action Of directors Of the New York
Federal Reserve Bank in reducing
rediscount rate to per cent caused
little surprise among local bankers
1t was felt that after the Bank of
England reduced its rate to 312 per
cent last week it was almost IN
evitable that the New York banks
should follow in it's steps.
Reduction of bank rate Is merely
recognition of existing conditions.
said one banker today. ."Redscount
rate is now close to the actual mar
ket rate for money-that is. the rate
large commercial borrower would
pay his bank. l think this is as 1t
should be. | see no reason why
bank should be penalized for redis-
counting its paper.
Under the stimulus of the reduction
all issues of liberty bonds advanced
to a premium in the New York mar
ket
Present quotations are up Is to Is
points above record lows. most OF
which were established just about two
years ago.
of the active issues greatest ad-
vance has been effected by the second
ii.s. with the fourth issue close
second. Fourth loan was the largest
and most widely distributed. cons"-
quently there is a greater interest in
this than in any other issue.
New Treasury Note Exchanges.
Preliminary reports to the Treasury
indicate that the total exchanges of
the new ias per cent notes Tor "a
per cent victory notes aggregate
about 1926, 900, 600. it was announced
last night by Secretary Mellon.
The new Treasury notes were Of
fered in exchange for the victory
notes as part of the payment for fund
ing the short dated debt. ON May 81
victory notes outstanding aggregated
s2.311 0o0. 600. which. being reduced by
S325.0O0,o00 through the new ex-
change. leaves less than $1,000. 100000
as compared with the original amount
issued of s4.495. 100000.
Liberty Bank Dividend.
At regular meeting of the board
CT directors of the Liberty National
Bank. held yesterday. a dividend of
50 per share on capital stock OF the
bank was declared. payable July l.
1922. to shareholders of record, June
-. 1922
Directors also voted to add $4,000
to the banks surplus.
To Pay Preferred Dividends.
Cities Service has announced plan
Tor payment of dividends in cash on
preferred stock beginning September
!. and on preference Il October | and
for redemption of scrip issued for
these stocks.
1t is proposed to give holders of the
preferred preference stocks and hold
crs of scrip either cash or. optional!y,
a special per cent debenture bond
convertible into s. per cent Of pref
stock and nor cspt Of
mon stock. with the cumulative fea-
ture of the common stock as in pre-
vious issues of debentures. and to
carry redeemable feature at ll5
The regular monthly dividends an
nounced were l. of l per cent on
common. preferred and preference Z
shares. payable in scrip: IL per cent
on the common stock. in common
stock scrip. all dividends payable
August l to stock of record July 10.
Dividend Declared.
The board of directors of the Wash
inSt"n Mechanics Savings Bank have
declared the regular quarterly divi-
dend of per cent and l per cent ex-
ira. payable July l to stockholders of
record June 80.
At the meeting of the board held
Wednesday. A. $ Offutt was elected
assistant cashier of the District Ma
tional Bank.
Lincoln bank Dividend.
S"ni-anual dividend of 4 per cent.
paSapie July To shareholders OF
record June %. was declared by the
board of directors of the Lincoln Ma
tIoiiai Bank. at meeting held yes
terdaE. Books for the transfer of
stock VIII be closed from June 25 to
July = This puts the bank on a reg
ular annual dividend basis of 8 pcr
cent.
Extra Dividend Declared.
The board of directors of the Ma
uonal Capital Rank of Washington AT
It's regular meeting yesterday declared
the usual Semi-annual dividend of ;
per cent and an extra dividend of =
per cent. payable June 80. Books for
the transfer Of stock will close June
20 ana remain closed until July l.
Capital Stock Tax Forms.
Collector TAFT has mailed to all cor
porationS of record in Maryland and
District of Columbia, the 1923 federal
capital stock tax forms. Every cor
poratlon must file returns, regardless
OF whether it is taxable or not
on or before July 81. 1922. Payment
should accompany the return for the
amount Of tax disclosed by same
"imcrican NatiOnal- Dividend.
AT the regular meeting of the
board of directors. held today. the
usual quarterly dividend of ? per
cent was declared on the capital
stock, payable to stockholders of
record July l, 1922, books for trans
fer of stock to be closed from June
&c and 30, inclusive.