Evening star., 1923-11-02
RESERVE
. PLANS FOR BANKS.
Building Bids viii Again Be
Considered-LocaI Stock
Trading-NeW Survey.

The Federal Reserve Board has in
formed the San Francisco and st.
Louis Federal Reserve Banks that 1t
will consider new bids for construc-
ton of branches at Salt Lake City
and Little Rock, respectively.
Both projects were ordered held in
abeyance by the board last March,
when it pronounceds building costs
too high.
Treasury figures indicate that q
slight decrease had taken place in
prices, although the level still is re-
garded as high. Board members held
that the need for larger housing ca
pacity by both branch banks war
rants resumption of operations.
Both buildings fall below the limi-
tatlon which requires consent OF Con-
gress on operations in excess of $3.50
oou. Sites have been obtained, and it
Is expected both the banks will. spend
nearly the full amount allowed
Local Bank Issues Survey.
"A monthly survey of business con-
dftlons, issued by the Federal-Ameri-
can National Bank, is making it's de-
but in. local financial and trade cir
cles. The issue dwens at length on
the various elements which contrib
ute to the worlds business. and dis
cusses the economic problems of the
world at large and severally.
review of the security markets
that bond. prices are likely to advance
materially, during the coming year"
the initial number says. This con-
clusion is derived from the probable
ity of slackening business activity,
which will reduce the demand for
short-time bank. funds.
\ Surplus money as business slackens
is shifted into bonds and the price of
bonds consequently rises. 1t will not
require pronounced business de-
the b ond market. 1t is probable that
nothing more than a continuance of
the conditions of the last five months
is necessary"
New Offerings ON Increase.
The oS,tput of new issues of state
and municipal bonds in October shows
an increase over the unusually small
fiotations recorded in July, August
and September, but the borrowings of
the states an d municipalities are still
far below the volume of borrowings
in June and earlier months of the
year.
The most interesting feature of the
municipal bond market during Octo-
Der was the greatly improved demand
from investors in response to the re-
duced prices at which bonds were of
fered to the public by investment
dealers.
In addition to approximately $95,-
o45,S9S of state and municipal bonds
which were rapidly absorbed during
October, an offering of $4,000, 900
tax-free Federal Land Bank 4A per
cent bonds at par met with imme-
diate success.
Railroad Doing Well.
In the first nine months of 1923
the Western Maryland railway made
remarkable showing in surplus
after charges, which totaled S1246.-
OS0, and was the best record for any
other similar period
The results were encouraging be-
cause of the large increases in main
tenance expenditures. particularly on
equipment. Maintenance expenses
aggregated s6.S05.237, compared with
S4.4S4,567 last year, an. increase of
S2,320,67O. of which $1,965.0 OBJ was
equipment maintenance.
With earnings running at the an
nual rate of S10.06 a first preferred
share for the nine months, indica-
tions are that the road will this year
show the best earning power since
1917. ...-..=
Trading on Local Exchange.
Common stock of the Washington
Railway and Electric Company was
again relatively active on the local
board this morning, 68 shares chang
ing hands at 6S and IS Is the former
the prevailing figure. The preferred
issue held steady at 72.
Riggs National Bank stock sold at
295 and 294, and Capital Traction was
unchanged at 99A. Railway As
brought 6915.