Evening star., 1923-03-05
SPECULATION RIFE
ON INTEREST RATE
Keen Interest in New Treas.
ury Issue-Credit Situation
Considered Healthy.

Speculation is rife in local financial
circles as to what the rates of inter-
est on the next issue of Treasury
certificates of Indebtedness will be.
This issue, which undoubtedly will be
announced about March 15, it is
thought. will be for an amount OF
something like $3O0,o00,o0o, as the
two Treasury certificate issues which
mature on that date total approx
mately s379,s99.Oo0, the amount of
which taken up by the government is
not yet known.
Should the new issue be of short
term duration, Az per cent will prob
ably be the rate. while IL for the full
year. it is thought the rate will go to
4 y per cent as the present market
values of long-term liberty bonds
are quoted at that, and, in order to
make the sale of certificates attract
i've. 1t is predicted the government
will have to offer the greater rate.
The two issues falling due March
IS include one AZ per. cent. dated
100000. and one 31s per cent. dated
December Is, 1922, amounting to
$113.743.000. =
Credit Indicates Prosperity.
Credit expansion in commerce and
industry fail to show unhealthy evil
dence of speculation, but rather are
indicative of a generally healthy and
prosperous condition. according to a
statement by the Federal Reserve
Board
states. that while there has been
some speculation, as is always true
in a period of advancing prices, there
IS every evidence that the great vol
1ime Of production in recent months
has been moving through regular
channels and is being absorbed in
consumers buying. The larger mar
keting of manufactured products is
shown, the board declared. through
the records of rail transportation
taken in conjunction with the fact
that first-of-the-year inventories of
retail stores disclosed only moderate
stocks on hand.
Board Very Optimistic.
The board viewed the general con-
dition with extreme optimism, and
declared that 1t represented a vastly
increased or, rather. restored buying
buying. 1t was explained. resulted
from fuller employment and larger
pay rolls 'tand from some inrease in
the net proceeds to the farmer in
the sale of his products"
Further. the board said. it is known
that in years when production is
large, both consumption and saving
are also greatest and. from available
Treasury records, II was shown that
aside from the increase in savings
deposits resulting from a redeposit-
ing of funds derived from the retire.
ment of war saving certificates and
victory notes there had been a pro-
nounced increase in general savings.
Mason Tire Bond Issue.
Brooke, Stokes & Co., Washington,
and Hyney. Emerson & Co., Chicago.
are offering a new issue of $2,000.000
the Mason Tire and Rubber Company
first mortgage twenty-year per cent
gold bonds, series A, due March /,
1913, at 100 and interest. The bonds
are convertible into series B, non-vot-
ing common stock of the company of
no par value at $40 a share at any
time prior to January 1, 1928, there
after at 81 more per share during
each calendar year. The company's
record of sales since 1918 to the close
of 1922 shows an average yearly in
crease of 52.1 per cent and total in
crease of 36S per cent
The company manufactures a COM
plete line of cord and solid tires, and
also makes fabric tires in Ford sizes.
The plant at Kent, Ohio. has capac-
ity of $500 cord and solid tires a day,
and the one at Bedford, Ohio, a capac-
ity of $500 tires a day. At Kent is
also a textile mill, which produces
every pound of cord going into pres
ent production of Mason tires.