Evening star., 1923-02-22
RED|SC0UNT RATE
BOOST GOOD OMEN
Federal Reserve Action De-
cIared to Indicate Sound
Business Conditions.
NEW DEMAND FOR MONEY
Gas Light Companies Report Earn.
ings-Insuranc Firm
Elects Officers.

With the adoption by the Boston
and New York federal reserve banks
yesterday of a rediscount rate of y
per cent, all of the reserve banks
with the exception of San Francisco
now will operate on that basis. The
San Francisco bank has made no ap-
rlication to the Federal Reserve
Board to increase it's rate from the
present per cent, the same charge
which had been carried by the New
York and Boston banks, and officials
declared the western banks position
did not indicate that such an appli-
cation would be made.
Announcement that the two great
eastern reserve banks had voted to
increase their rediscount charge was
accepted in government circles gen
eraiiy as Indicating thoroughly
Souhu, prosperous. industrial and
commercial condition throughout the
territory served by those banks. At
1entlon was called. by way of sup
porting the belief, that only a few
weeks meehs ago the New York bank was
gong into the open market to pur-
'hase paper and keep its earning
a"Sets at work. The Increase in the
Late OF redlscounts, therefore, it was
uecidred. was proof that demand
Aoi money had sprung up again.
Action Called Good Sign.
h!sh oh1cials of the reserve board
brta'cled that the period when no
b"dy wants money" or when the loan
requirements are far below the aver,
age. mad passed and that the holdings
o. redlscounted paper by the reserve
Quantities of such paper held by the
ranks always has served as a barom-
tter of general business. mad reserve
ooafd oflcials regard the situation
win satisfaction. The last statement
U the total earning assets of the
tWeIve reserve banks was $3.50, 900. 900,
winch may be compared with total
earning assets of s3SO.000.O 900 last
July %
Increases in the rates by the New
ork ana Boston banks was not un-
expected. since those two districts
Lave been carrying lower rates for
some time than the others. with the
exception of San Francisco. 1t was
or the two banks had been relatively
too low. inasmuch as open market
paper had been higher in many in
stances and the call money rate was
OH parity with the rediScount rates.
Situation i'm New York.
The situation in New York, par
ticularly. has been Influenced pecu-
Ilarly by world conditions, according
10 Acting Governor Platt of the re-
serve board. who said that vast
quantities Of money had been pour
ing in there from all corners of the
world. The result has been that
whenever loan requirements were to
be met, funds were available in
plenty.
But Mr.. Platt believed that the in
crease in the rediscount rate there
and similarly in Boston-reflected the
l,1-
and commerce. The need for money
has served as an index to the activity
or general business and that in turn
reflects, in the view of officials. the
general spending of the country.
Gns Light Income Gains.
The Washington Gas Light Com
pany was operated at d net corporate
income of ssO,S7O during January,
1928, which represents an appreciable
advance over the S11.S53 reported for
the corresponding month a year ago
and huge jump over last Decem-
oers earnings. which were but s45,-
20l.
Operating revenues Of the company
curing the month in question amounted
to SoOO,551, while operating expenses
totaled S353,65s. Net revenues from
outside operations amounted to S2,929
S149,823.
Deductions totaling s33,499 were
made. classified as follows: Taxes
S2S,osa;, profit and loss $9.176, and un-
ductions amounted to S35,S84, and the
sum of $500 was subtracted account of
amort1zation of debt discount and in
tereSt.
Georgetown Gas Income.
Net corporate income of the George
town Gas Light Company during the
past month amounted to s5225 the
ice
y yesterday. This is about on a par with
The s9.2S5 reported for the same month
of last year. but shows a huge jump
over DEFENDERS earnings whicI,
'otaled but Sl,0ll.
The company has a gross corporate
income of 1915 from which s3,J7O
was deducted, s3.465 for interest. S.
Tor miscellaneous rents, and s1OO for
amortization OF debt discount
Insurance Company Elects.
Al the first annual meeting of stock
holders of the American Standard In
Surance company of the United States,
held yesterday afternoon, at the office
OF the company, 1884 Bond build
ing, the following officers and direc-
tors We're reelected for the ensuing
year: President, A. S. Gardiner: vice
president and medical director. DR. j.
ItozIer Biggs: vice president, Harry
Is. Leary; vice president Harry r.
carroll: secretary and general coun-
sci, John +. Reilly, and treasurer.
William Neuland
Directors reelected follow: A. s.
Gardiner. DIR. j. Rozer Biggs, Harry
u. Leary. Harry r. Carroll. John F.
Reilly. William Neuland. j. Leo Kolb,
John n. Auth. William s. Phillips,
charles Stanley White, NJ. D.; A. e.
ISeitzell. Harry S. Lewis, NJ. D.; NJ.
Frank Rupert and Ernest G. Walker.
The presidents report showed the
financial condition of the company
10 be in fourishing condition. the
losses for the last year being but 2 ga
per cent of the premium receipts
Mr. Gardiner also reported that the
outlook for Il largely increased busi-