Evening star., 1923-07-19
RESERVE
MAKESNEW RULES
U. S. Treasury Reports
Years Expenditure-Trad-
ing on Exchange.

Several important notifications of
the regulations under which fhc
Federal Reserve system is governed
were announced yesterday by the
board. Most important OF these, 10
cally. is the new ruling permttint
any bank, under the farm credits law,
having a paid-up, unimpaired capital
| of $4,000. to become a member of
| the system, providing it agrees to III
crease its paid-up capital to 5000 Goa
within five years from approval of APP
plication. This applies to state
banks operating here.
/ IE enforcing provisions OF Inc
Clayton act prohibiting interlcckln2
directorates the term national bank
/ in the new regulation is construed
| to apply not only to national banking
association but also to banks, bank
| ing associations, and trust companies
organized or operating under the
+, laws of the United States. including
all banks and trust companies doing
| business in the District of Columbia
regardless of the sources of their
charters"
| Notes covering real estate loans
no longer will be required arbitrarily
| to be cancelled at maturity. but may
be renewed and extended.
| Under the heading purchase oe
! warrants" the prohibition against
| buying of more than 10 per cent %
the warrants issued by d municipality
| has been removed
The so-cailed par clearance Sc
| tions also have been revised SO that
Ehile member banks are prohibited
| from receiving on deposit or for col
| lection any check drawn on q non
member (which refuses to remit A.
| par" the member bank may ACCEPT
the check and shall make charge for
the service of collecting" amounting
to one-tenth of ] per cent, with 4
minimum charge of 10 cents.
Southern Building Dividends.
The regular quarterly dividend o.
SO per share on the preferred sto"h
of the Southern Building Compauy
Inc. and in addition d cash disbursc-
ment of SO cents per share on Tie
payable on August l to all stock
holders of record July 2s.
1t was the regular meeting OF tie
| board, presided over by Allen L
Walker, president of the company.
Trading ON Local Exchange.
Local utility stocks, at firm prices
Featured trading on the Washington
Stock Exchange this morning. Rail-
way preferred was the real leader Of
the session, total of ninety shares
d
of common sold at 65I2. Washing
ton Gas was stronger at ~, and
Capital Traction gained fractionaly
to 1908
Capital Traction IS sold at 81.
Information on Loan.
The new loan Of $3.50 900 being float,
ed by the f. II. Smith Company Is
secured by property estimated by the
underwriters as having a valuation
of S150.000. This sum includes first
tect's fee. interest reserve, fixtures
and deposit put up by the bor-
rover.
u. :. Government Expenditures.
Expenditures of the federal govern
ment 'chargeable against ordinary
ed June 80, 1923. totaled s3.697.47S,-
02O.26. the Treasury Department has
officially announced.
Public debt expenditures were
given as 7963.79s.1SO.17 Of which
$4o2. 100000 was credited to debt re-
tirement.
The Veterans Bureau led all gov
eminent departments in dishurse
mentS during the year with S46I1i9,-
GOO. The War Department accounted
for S3S2,733.0O0: Interior for $35+-
$4,000. and the Navy for S3S3,2Gl 600.
An, An ANALYSIS is1;n OF the nearly light
. showed that it was comprised almost
! wholly of redemption of various
| Short-term issues and of maturitieS
under the sinking fund. one such item
alone being s1.911.000,0 600 of the vic
tory loan. Other large items under
the public debt disbursements in
Cluded s5.095, 600, 600 in certificates OF
| indebted edness, s143,000.0On in Treas
ury notes and s52S. 100000 in war
| savings stamps.
Capital Incrcnsc Approved.
As noted in yesterdays go Star
stockholders of Riggs National Bank
have adopted a resolution approving
the contemplated increase in capitali-
! zation from $l.e00.000 TO s2.JhU. .0oN
with the provision that the rights TO
subscribe to the $500 600 additional
new stock would become null and
void unless availed to and paid in fun
on or before September 80, 1928. 1t
! is understood that the rights to sub
| scribe to the new stock will be is
sued to the stockholders within the
next few days.
1t is also understood that the stock
dividend of s1.000.000, to be declared
under the plan, will probably be dis
! bursed on October 15. 1923. at which
time the regular semi-annual divi-
dend is paid.
: The plan, as suggested by direstors
to stockholders about a month ago.
| contemplates the transfer of $1,000.
600 from surplus to undivided profits.
thus enabling the bank to declare out
of undivided profits stock dividend
! of $1.00G.00o. thereby giving the cX-
isting stockholders twice the number
of shares they originally held with
out additional cost: also the sale Of
! 100000 in new stock at Sl00 per
share, thereby increasing the capital
of the Riggs National Bank from