Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-11-16
RED|SCOlNT RATE
CUT NOW EXPECTED
Federal Reserve Governors
Spring Surprise-LocaI ''e
Exchange Busy. Q

A general lowering of the redfs-
count rates now in effect as a resul.
of the increasing volume of credit .,
expected to be authorized sbortIy
after the holidays, it was Indicated
here this morning
me rates now In effect have been
one OF the principal topics of discus
sion at the present conference of gov
erncrs of the various reserve banks
with members of the Federal Reserve
Board, and every indication Is said
TO point to reduction in the near
future. Such rumor comes as a dis
| tlnct surprise to the banking. world
winch was expecting action of a di-
rectly opposite tenor.
After careful review of the bank
| ing situation officials of the hoard
| nave found that the banks of the
| .ouh.Iy are more prosperous than at
s,i.o enlle IN their history. They have
successfully met the call for credit
! eAtension in all lines of industry and
i asrIculture, and these funds are nov
h mahlng their way back into the
| 1870, tnus materially swelling the
reserve funds. 1t also ia found 49,
| Ioans are being paid readily at M;
| turity. a. hi'<>
Freight Bill Cut to s431 ,OOO.O0e.
Due almost entirely to reductions
| IN freight rates. made both yolur~
! tarily and by order of the Jntersta,S
commerce It,1 Commission. the freigH
piI OF the people of this country wa
approximately $431 100000 less durt
| ing the first eight months this yeas
| IMAM IL would have been if the rates
existing during the corresponding De
rI4d in 1921 had remained in effect;
IT'S estimation is made by the bu..
\ A
| ports filed by the carriers with the
| interstate Commerce Commission
| compared with the rates in effect
| during the first eight months of 1922
.ne Irelght bill this year represents
| TO the shippers of the country re.
duction of approximately S2s2' ESQ 900
| Que to the voluntary reduction on
| asricultural products that became eff
1eetive on January 1. 1922, and to
I In freight rates.
Made Roll Call Treasurer.
| William c. Johnson. assistant to the
| president of the Federal
National Bank. has been named treas
| urer of the seventh annual roll call
OF the district chapter American Red
J cross, and is already "swamped" with
deluge of funds forwarded in every
/ known manner.
| From early indications Mr.. johnson
| declares the chapters goal will be at
| tanned.
| Stock Exchange Trading.
A good volume of well-diversifed
| trade, at unchanged to lower prices
prevailed on the Washington Stock
| Exchange this morning. Practically
all favorite issues figured in the
| transactions.
| Washington Gas Light stock was
in good demand. though easier at as
and 4IA. fffty-five shares changing
hands. Merchants Bank and Trust
, Company was unchanged at 1919.
and Railway preferred was off to
7oA, and Capital Traction sold at sS.
On the investment side of the mar
; ket, Gas 6s brought 100 and 1901
| and Railway As changed hands at
69A. Pepco consolidated IS sold at
/ 97a, and Traction IS held at 931s.
Form Business Partnership.
| Judah H. Sears and John Dewey,
formerly of Morgan, Livermore & Co.
announce the formation of partner
ship for the transaction Of a general
banking and investment business un-
der the firm name of Sears & Co., at
S23 15tr street northwest.
MOOdy's Weekly Review.
Moody's Weekly Review of financial
conditions, in it's current issue, says in
part:
| THE new tax-cutting proposals imply
, conservatism on the part of the Presi-
i dent and his cabinet, but the real gain
\
! election returns, appears to be that the
| progress of radicalism is now meeting
| opposition.
I'm view of the slump in stocks and
| bonds following the 1922 congressional
f, elections, the recent election returns
should be regarded as a proper invest
ment subject. When properly analyZed.
| these returns disclose trend of senti-
ment back toward conservatism in the
great manufacturing states. a continued
! movement toward radicalism in the
grain states and growth of the
strength of the opposition party in the
\ South.
Political history, ancient and mod
ern. shows that prosperity makes votes
in favor of the status quo. and adver-
| sity against it. 1t shows, too. that the
! percentage of swing from one party
| to the other is practically uniform
| wherever business conditions are uni
! form. Utilizing this scientific principle.
| the political sentiment of the whole
country has often been accurately es-
! timated from special elections in
single state or locality.
! Thus it is indicated that if a presi-
| Dental election had been held last
week it would have been decided by
| a plurality of only fifteen to thirty
live votes in the electoral college.
However, the slow agricultural recov-
cry is tending to restore conservative